Missouri Works
Economic Development’s Mike Downing On Bringing Jobs To The Show-Me State Page 50
20 Years Of Beer
Tom Smith Reflects On Two Decades Of Success At Flat Branch Pub & Brewing Page 31
The Century Club spring 2014
www.ColumbiaCEO.com
MFA’s 100-Year Journey From Farm Club To Agribusiness Giant — Page 42 —
CONTENTS
Inside Columbia’s CEO • www.ColumbiaCEO.com • Volume 5, Issue 3
42
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Opening Bell: The Buzz On CoMo Biz
12
Regional Roundup
14
Up & Coming: The Ladder Report
18
Something To Talk About: Water Cooler Chatter
31
Entrepreneur Q&A: Tom Smith Celebrates 20 Years
35 CEO Roundtable: Real Estate Pros Talk Buying & Selling
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42
The Century Club: MFA’s 100-Year Journey From Farm Club To Agribusiness Giant
50
Missouri Works: Economic Development Director Mike Downing Beats The Bushes To Bring Jobs To The Show-Me State
57
CEO At Play: The Swimsuit Edition
59
Shopping: Timepieces That Enhance Your Workday Style
61
Networking
65
Publisher’s Note
66
Closing Quotes
SPECIAL ADVERTISING SECTION Banking & Finance page 22
STAFF
INSIDE COLUMBIA’S CEO
Publisher Fred Parry fred@insidecolumbia.net Associate Publisher Melody Parry melody@insidecolumbia.net Editor-in-Chief Sandy Selby sandy@insidecolumbia.net
Meet Our Editorial Advisory Board
Copy Editor Kathy Casteel kathy@insidecolumbia.net Editorial Assistant Morgan McCarty morgan@insidecolumbia.net Editorial Interns Amanda Becker, Brittany King
Creative Director Carolyn Preul cpreul@insidecolumbia.net
Randy Coil President, Coil Construction
Tom Atkins President, Tom Atkins Investments
Gary Drewing President, Joe Machens Dealerships
JOAN GABEL Dean, Trulaske College of Business, University of Missouri
Graphic Designers Kate Moore kate@insidecolumbia.net Trever Griswold trever@insidecolumbia.net Photo Editor L.G. Patterson lg@insidecolumbia.net
Bob Gerding President, Gerding, Korte & Chitwood CPAs
PAUL LAND Principal/Owner, Plaza Commercial Realty
Dianne Lynch President, Stephens College
George Pfenenger CEO, Socket
Director of Marketing Kevin Magee kevin@insidecolumbia.net Sales Director Deb Valvo deb@insidecolumbia.net Operations Manager Kalie Clennin kalie@insidecolumbia.net Marketing Representatives Rosemarie Peck rosemarie@insidecolumbia.net
Bob Pugh CEO, MBS Textbook Exchange
Greg Steinhoff President of Strategic Operations, Veterans United Home Loans
Jerry Taylor President & CEO, MFA Oil Co.
tim wolfe President, University of Missouri System
Please Recycle This Magazine.
Inside Columbia’s CEO magazine 47 E. Broadway • Columbia, MO 65203 • Office: 573-442-1430 • Web: www.ColumbiaCEO.com Inside Columbia’s CEO is published quarterly by OutFront Communications LLC, 47 E. Broadway, Columbia, Mo. 65203, 573-442-1430. Copyright OutFront Communications, 2014. All rights reserved. Reproduction or use of any editorial or graphic content without the express written permission of the publisher is prohibited. Postage paid at Columbia, Mo. The annual subscription rate is $19.95 for four issues. 8
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Joe Schmitter joe@insidecolumbia.net Jamill Teter jteter@insidecolumbia.net Marketing Assistant Jessica Card jessica@insidecolumbia.net
Director of Customer Retention Gerri Shelton gerri@insidecolumbia.net Office Manager Kent Hudelson kent@insidecolumbia.net Assistant Finance Manager Brenda Brooks brenda@insidecolumbia.net Distribution Manager John Lapsley
OPENING BELL
the buzz on como biz
➔
talk to the trees I think that I shall never see A cellular tower lovely as a tree. With all due apologies to poet Joyce Kilmer, we stand in awe of the new cellular tower in tree disguise that has risen over Providence Road on Columbia’s south side. The aesthetics of the tower are the subject of much debate among commuters who pass the spectacle. Some prefer it to a stark metal tower; others compare it to a giant mascara brush. Photographer L.G. Patterson got up close for this photo and in his opinion (remember, he’s a photographer, not a botanist), it’s meant to be an elm tree, albeit bigger than any elm we’ve seen around these parts lately. Whatever species the new tower is meant to represent, it’s just one of many towers springing up across the country as providers try to make their apparatuses blend in with the local flora. Depending on where you travel across the United States, your cellphone signal may get a boost from a palm tree, a cactus or a pine.
Share your business news with Inside Columbia’s CEO. Email the editor at sandy@insidecolumbia.net.
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OPENING BELL
regional roundup
Lincoln University Nursing Program Eyes Expansion
St. Mary's Hospital Set For Early Completion
T
he $200 million new St. Mary’s Health Center will open ahead of schedule, thanks to steady construction progress and cooperative weather, hospital administrators say. The new hospital, located along Highway 179 in western Jefferson City, will start receiving patients in November, rather than next year as earlier planned. “We’re thrilled to be able to offer advanced, exceptional care at our new hospital even earlier than we anticipated,” says Brent VanConia, SSM MidMissouri president and chief executive officer at St. Mary’s. “This means our patients can experience a whole new level of care even sooner than we thought.” VanConia credits favorable weather conditions and efficient, hardworking construction crews for the earlier opening date. “We have such a great workforce here on this project,” VanConia says. “And with three-quarters of them local, it’s like our community is literally pulling together to make this happen.” Key features of the new St. Mary’s Health Center: ➡ All-private inpatient rooms, including areas for the patient, family and caregivers. The functional design will enhance patient comfort and safety, as well as staff efficiency. ➡ Separate convenient entrances for key service areas, including a dedicated outpatient diagnostic and treatment center, and a medical office building. ➡ New state-of-the art equipment and furnishings, including fully integrated electronic medical record technology. ➡ Noise-reduction elements in rooms and corridors. ➡ An open, airy design that provides a calming mix of natural and soft lighting, along with views to natural landscapes surrounding the facility. ➡ Conveniently located supplies and resources that keep caregivers close to the bedside, rather than at centralized nursing stations.
A
plan by Missouri Gov. Jay Nixon could mean an expansion of the Lincoln University nursing program. Under the plan, announced in January, Nixon will ask the Legislature for funding to purchase the current St. Mary’s Hospital in Jefferson City. The $10 million request will also cover the cost of renovating the facilities. Lincoln University President Kevin Rome says the purchase will bring new opportunities for students. “The simulation labs we have on campus are incredible, but we will be able to expand that even further,” Rome says. “There is no better laboratory than a hospital setting in which our nursing students can perfect their skills.” The Lincoln University program currently offers a two-year associate degree in nursing. Beginning in fall 2014, Lincoln will offer a four-year Bachelor of Nursing Science degree; the final associate degree class will matriculate in fall 2015. The additional space will also allow the university to expand its academic offerings to include a culinary arts program.
wastewater grant goes to huntsville The Missouri Department of Economic Development recently approved $500,000 in Community Development Block Grant funds to assist the Randolph County city of Huntsville with wastewater treatment improvements. The funds will be used for constructing a new treatment system to meet and bring the city up to state standards. Currently, the capacity of the city’s two existing lagoons fails to meet Department of Natural Resources discharge requirements. Huntsville’s wastewater collection system also has significant inflow and infiltration problems. Using CDBG and U.S. Department of Agriculture Rural
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Development funds, the city will eliminate one of the lagoons, add a land application treatment system near the remaining lagoon, and replace and repair collection lines that will bring the city up to DNR standards. The CDBG program, administered by the Missouri Department of Economic Development, provides grants and loan funds to cities with a population of less than 50,000 and counties with less than 200,000 to assist in a variety of public works and economic development projects.
OPENING BELL
The Ladder Report Look Who’s Moving Up In Columbia ➔ Lee Russell, CEO of Columbia Board of Realtors, has announced plans to retire this spring. Russell joined CBOR in 2005 as operations director. She will end her three-year tenure as CEO on May 29.
➔ Jay MacLellan has joined the Columbia regional advisory council of Great Circle, one of Missouri’s largest behavioral health nonprofits. The advisory council is a group of volunteers that works with the board of directors and management to support local fundraising efforts and youth activities. MacLellan has worked at Shelter Insurance Cos. for nearly 20 years; he has assisted Great Circle in fundraising efforts for several years.
➔ The Boone County National Bank board of directors has named Joseph T. Henderson as president. Steve Erdel remains as the bank’s CEO and chairman of the board of directors. As president, Henderson will take on greater responsibility for the overall operations of the bank and its strategic goals. Henderson’s community banking experience spans 36 years. He spent his early career with Commerce Bank, serving in a variety of roles including community bank president in Peoria, Ill. In 2005, he joined Central Illinois Bank as president and chief executive officer and then joined Providence Bank in Jefferson City as its market president in 2011. He joined Boone County National Bank as executive vice president and chief credit officer in 2012.
➔ Teresa Maledy, president of Commerce Bank, Central Missouri region, recently announced the promotion of group operations manager Jennifer Bailey (left) to assistant vice president. Bailey has 15 years’ banking and lending experience. In her position, she is responsible for branch security and audit; fraud training; product rollout; ATM oversight; and teller and group operations for 17 branches in the bank’s Central Missouri region and Hannibal. Noelle Case (right), Commerce Bank trust administrator for the Central Missouri region, has been promoted to assistant vice president. Her responsibilities include client service and administration related to personal trust services including IRAs, investment management, revocable, irrevocable and charitable accounts. She has 12 years’ experience in banking and trust services, and recently earned her designation as a Certified Trust and Financial Advisor.
➔ Rabo AgriFinance has hired Bob Gerke as a relationship manager based in the newly opened Columbia office. Rabo AgriFinance is a provider of capital and financial solutions to U.S. agricultural producers and agribusinesses. Gerke will provide additional financial expertise to the regional team of Rabo AgriFinance experts. Gerke has worked in agriculture for 10 years, working with crop and livestock producers in central Missouri. A native of Pilot Grove, he was raised on a corn, soybean and cattle operation. He joins the Rabo AgriFinance team as a part of the company’s network of relationship managers, crop insurance and risk management specialists. 14
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➔ Deputy Chief Dianne Bernhard has announced her retirement from the Columbia Police Department after serving the city for more than 21 years. Bernhard leaves to accept a position as the executive director of Concerns of Police Survivors, a national organization that provides support for families and coworkers affected by the loss of an officer killed in the line of duty. COPS also provides training for officers and police departments for addressing the needs of agency personnel who experience the traumas associated with the law enforcement profession.
➔ Roxanne Herron has been promoted to personal insurance sales manager at The Insurance Group. Herron joined TIG in 2006. She has been successful with direct sales and sales coordination with various types of insurance policies — life, health, disability insurance, long-term care and personal lines insurance.
up & coming
Taylor To Retire As MFA Oil CEO; Fenner Named As Successor ➔ MFA Oil co. announced that Jerry Taylor, president and chief executive officer, will retire effective Aug. 31. Taylor will remain with the company to lead MFA Oil’s investments in MFA Oil Biomass, AgFuel Energy Systems and WasteWater Logic. Mark Fenner, currently chief operating officer, will assume the role of president and CEO as of Sept. 1. Taylor has been the company’s president and CEO since Jan. 1, 2003. He started his relationship with MFA Oil in 1982 as a consultant, having developed a chain of convenience stores. In 1988, Taylor became an MFA Oil employee and was named the director of marketing. In 1991, Taylor became vice president of sales and in 1992 transitioned to vice president of supply and distribution. In 1995, the company named Taylor vice president of retail and in 1998 promoted him to senior vice president of retail and supply before naming him president in 2003. Taylor serves on the boards of the MFA Inc. and MFA Oil foundations, the National Cooperative Refinery Association and Mid America Biodiesel, in which MFA Oil has an ownership stake. On Taylor’s recommendation, MFA Oil’s board of directors elected Mark Fenner to succeed Taylor as CEO and president. Fenner has served as chief operating officer since September 2012, where he has been responsible for overseeing the day-to-day operations of the refined fuel, propane, Petro-Card 24, American Petroleum Marketers, Break Time and Jiffy Lube operations. Since Fenner joined MFA Oil, part of his focus has been on the growth of company operations. During his tenure, MFA Oil has added more than $100 million in sales through acquisitions and has expanded its footprint into the states of Nebraska, North Carolina, Wyoming and Virginia. SPRING 2014
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The ladder Report: College Edition
➔ The University of Missouri recently announced a gift of $6.7 million from Jonathan Murray, an Emmy Award-winning MU alumnus and chairman of Bunim/Murray Productions, to create a documentary journalism program in the MU School of Journalism. The gift creates one of the largest programs in documentary journalism. Credited with inventing the modernday reality television genre, Murray has created and served as executive producer for some of the industry’s most innovative, unscripted entertainment television programs, beginning with “The Real World” in 1992, which — now in its 29th season — has become the longestrunning program on MTV. The new program, which has been named the Jonathan Murray Documentary Journalism Center, will offer Bachelor of Journalism and
Master of Arts degrees, and fund research that advances the field of documentary journalism. It will feature three new faculty positions plus visiting professionals from the documentary journalism community around the world. STACEY WOELFEL, news director at KOMU-TV 8 and associate professor in the MU journalism school, has been named the center’s first director. “Mr. Murray’s gift creates a unique opportunity that adds to a remarkable curriculum that has made the MU School of Journalism the best in the world,” says MU Chancellor R. Bowen Loftin. “It also complements community efforts such as the True/False Film Fest, making Columbia a true force in documentary storytelling.”
➔ Ernest Wren was promoted from assistant dean to associate dean for adult higher education at Columbia College. Wren will continue to work on course development, full-time faculty coordination and will oversee the online campus’ budget. Wren also will work with nationwide campus directors and provide oversight of adjunct faculty review processes. Gretchen Hendrickson has been named assessment coordinator for Columbia College. Hendrickson is an assistant professor of psychology at the college. The assessment coordinator’s
primary objective is to ensure academic departments are in compliance with the academic assessment program. Hendrickson’s duties include educating faculty on assessment, working with faculty to identify assessment already being collected within the department and evaluating the results. Along with her assessment duties, Hendrickson will teach six credit hours of psychology each semester and will maintain her status as a full-time faculty member.
➔ Dean Mills, dean of the MU School of Journalism, will retire effective Aug. 31. Mills, who has served in this position for 25 years, is the longest current serving dean at MU. Following his retirement as dean, Mills will work half time as director of the Reynolds Fellows program at the School’s Donald W. Reynolds Journalism Institute. The Reynolds institute awards both residential and nonresidential fellowships each year to journalists and scholars who work on new approaches to journalism. ➔ Greg Smith, associate professor of English at William Woods University, will publish an article in an upcoming anthology of critical works on early American writer Washington Irving.
MU Professor Named As Finalist For George Washington Book Prize Washington College has announced that Jeffrey L. Pasley, a professor of history at the University of Missouri, is one of three 2014 finalists for the prestigious George Washington Book Prize. The other two finalists are Alan Taylor at the University of Virginia and Andrew Jackson O’Shaughnessy of the Robert H. Smith International Center for Jefferson Studies at Monticello. Created in 2005, the George Washington Book Prize is sponsored by Washington College, the Gilder Lehrman Institute of American History, and George Washington’s Mount Vernon. The $50,000 prize honors its namesake by recognizing the year’s best new books on early American history. Three distinguished historians of the founding era — Gordon S. Wood, Joyce Appleby and Annette Gordon-Reed — selected this year’s finalists from among 40 books published in the past year. The 16
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ultimate winner will be announced May 20 at a gala dinner at Mount Vernon. Pasley is being honored for The First Presidential Contest: 1796 and the Founding of American Democracy (University Press of Kansas), which provides new insight into how the first contested presidential election set the stage for the democratic electoral process. “Pasley captures with verve and wit the frothy politics that emerged unexpectedly at the end of the 18th century,” the prize jury noted. “The First Presidential Contest makes it very unlikely that the 1796 presidential campaign will ever be thrust into the shadows again.” Pasley is also the author of a prize-winning book on the early American press, The Tyranny of Printers: Newspaper Politics in the Early American Republic. Before entering academia, he was a journalist and a speechwriter. He blogs extensively about early American history for Common-Place.
Smith’s article, titled “Supernatural Ambiguity and Possibility in Irving’s ‘The Legend of Sleepy Hollow,’ ” takes a look at Irving’s depiction of the supernatural in his iconic story The Legend of Sleepy Hollow. The anthology, called Washington Irving, is edited by Harold Bloom, Sterling professor of the humanities and English at Yale University, published by Chelsea House in New York.
➔ The Columbia College Board of Trustees has selected Scott Dalrymple as the 17th president of the college. Dalrymple comes to Columbia College from Excelsior College in Albany, N.Y., where he is the current dean of the School of Liberal Arts. Dalrymple holds a Bachelor of Arts in English from State University of New York College at Geneseo; he earned a master’s degree and Ph.D. in English, and an MBA, from the University at Buffalo SUNY. He has held academic positions at Hartwick College in Oneonta, N.Y., and Southwestern College in Winfield, Kan.; he also worked as a senior financial analyst for National Fuel Gas Co. Dalrymple was introduced to the Columbia College community on Jan. 22. He will begin serving as president May 1, succeeding Gerald Brouder who retired last summer after 18 years as Columbia College’s president. ➔ Columbia College’s marketing department, led by Executive Director of Marketing Lana Poole, recently won two Education Digital Marketing Awards. Recognition was based on creativity, marketing execution, message impact, technology application and innovative content. The Higher Education Marketing Report, a publication for collegiate marketing professionals, presented the awards. Columbia College earned a gold award in the blog sites category for its “Marketing Channel,” which aims to educate internal audiences on various marketing initiatives. The college also earned a silver award in the online display ad category, from the college’s “Go for greater” campaign. SPRING 2014
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OPENING BELL
something to talk about
Water Cooler Chatter Topics For In-The-Know Business People
Fueled For Success Spring is springing and that means we’ll be rolling out those lawnmowers and topping off their gas tanks for another busy season. One local company, Columbia Landcare, took a different approach to fueling up a couple of years ago by switching to propane-powered mowers. Columbia Landcare General Manager Tom Boland was so pleased with the new mowers that the company added another five to its fleet in 2013. The local landscaping business benefited from a program sponsored by the Missouri Propane Education and Research Council — or MO-PERC — that helped underwrite some of the cost of the new mowers. In January, Columbia Landcare was selected as a recipient of one of four MO-PERC Community Leadership in Environmental Awareness Now (CLEAN) Awards. The award recognizes Columbia Landcare’s leadership in reducing greenhouse gases and harmful emissions associated with gasoline-powered equipment.
Chicago, Chicago, That Toddling Town …
C
olumbia air travelers may soon start humming Frank Sinatra’s ode to the Windy City in anticipation of more flexible flight plans. On April 2, American Airlines adds a second daily nonstop flight to and from Chicago to the Columbia Regional Airport schedule. Flight 3376 will depart from Columbia at 6 a.m., arriving at Chicago O’Hare International Airport at 7:05 a.m. An evening return flight leaves O’Hare at 6:35 p.m. for a 7:45 p.m. arrival in Columbia. Passengers may prebook these flights through the airport
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widget at www.flymidmo.com or the American Airlines website, www.aa.com. The additional flight gives Columbia travelers options for two daily flights to two cities. American already offers an afternoon flight to and from Chicago, along with morning and evening flights to and from DallasFort Worth. American Airlines began serving Columbia on Feb. 14, 2013. Delta Air Lines, which was providing service to Atlanta, pulled out of the mid-Missouri market Feb. 13, 2013. Frontier Airlines abandoned its
Columbia-to-Orlando, Fla., route in early May, leaving Columbia with one carrier and two destinations. In its first year of service, American carried more than 79,000 of the passengers who used the Columbia Regional Airport. The acquisition of American Airlines service in Columbia was made possible with a $3 million revenue guarantee fund put together by a consortium of local public entities and private businesses. The airline has tapped the fund once — in February 2013 after the first two weeks of service — for a $22,562 payout.
[ $] Millions For Mizzou We know the folks at the University of Missouri are fond of breaking records and here’s one they’re particularly proud of: MU is on pace for a record-setting year of fundraising. The University of Missouri Advancement has raised a record $88.3 million in the first six months of the fiscal year, surpassing the previous record of $82.3 million raised in the same six-month period last year. With a goal of raising $150 million for the entire fiscal year, MU is on track to exceed a record amount of fundraising for a single year at the university. Recent, major gifts include:
$1 million
$1 million
from Molly Bean Phelps for the Missouri School of Journalism
from Betty Francis for scholarships
$1.57 million
from a confidential donor for scholarships for veterans
from Chuck Wall for the MU School of Law
$14 million
in confidential gifts for several schools
$1 million
$6.7 million
from Jon Murray for the Missouri School of Journalism
A Thousand Reasons To Love Mid-Missouri A lot of us talk about drawing more visitors to our region, but The Mid-Missouri Tourism Council put its money where its mouth is when it presented a $1,000 check to Columbia’s Office of Cultural Affairs. J.J. Musgrove, OCA director, says the funds will be used to assist mid-Missouri applicants, such as the Greenhouse Theatre Project and the “We Always Swing” Jazz Series, as they create new programs and services. MMTC also plans to launch a scholarship program to benefit students in the University of Missouri’s Hospitality Management Program.
Three Who Made The List Sports Illustrated has its swimsuit issue, but savvy, money-minded folks prefer to peruse Forbes’ annual review of the nation’s 100 largest financial institutions. Three banks with strong mid-Missouri ties landed in the Top 20 this year, with Commerce Bank checking in at No. 10, UMB at No. 16, and Boone County National Bank’s parent, Central Bancompany, at No. 18. The banks are valuated in eight categories: average equity, net interest margin nonperforming loans, nonperforming assets, reserves, a leverage ratio and two capital ratios. Until Columbia’s bankers get together to publish a swimsuit calendar, this impressive list is the next best thing.
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special advertising section
the future is now It could be a scene straight out of “Cheers” — when a loyal customer walks into a Columbia bank and everybody, it seems, knows his name. Those days of personal service and strong relationships are far from over (see Page 28), but now there are new, high-tech banking services that help banks serve their customers from a distance. Here are three of the top tech trends in the banking industry for 2014.
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Digital Deposits
Photo Bill Payment Apps
Electronic Meetings
Digital deposit technology has been available to commercial customers for several years. Now, that service has been expanded to include the individual consumer. With the use of technology called Remote Deposit Capture, banks large and small have begun offering free downloadable applications that enable their customers to take a picture of a paper check with their mobile device and deposit it instantly. Although most people receive fewer paper checks these days, thanks to debit cards, direct deposits and online bill payments, the paper check is not yet obsolete. This technology saves the customer a trip to the bank and enhances productivity for the bank by reducing the workload for tellers and back office staff responsible for balancing the day’s deposits.
This is a trend to watch. Although it’s only available in a few markets now, photo bill payment is likely to catch on quickly. This application for tablets and smartphones allows a customer who receives a paper bill from a vendor to take a digital photo of the bill and pay it electronically. The bank captures the information from the image to gather all necessary data about the payee, due date and amount due. The technology company Mitek Systems is one of the early leaders in this technology and recently developed a new app for U.S. Bank. James DeBello, president and chief executive officer of Mitek Systems, is optimistic about the technology’s potential. “We believe that Mobile Photo Bill Pay is the next killer app for financial services,” he says.
Corporate America has already embraced online meetings in a big way. Faceto-face video conferences cut down on travel expense without losing the interactivity that comes with confusing, often garbled conference calls. Now banks are getting into the game by offering high-definition teleconferencing services for meetings between customers and loan officers or other bank personnel. This could come in particularly handy for customers who are relocating and trying to work through mortgage paperwork before they arrive in their new hometown, or for frequent travelers who find it inconvenient to schedule inperson meetings during their limited time at home.
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special advertising section
money-go-round A Snapshot Of FDIC’s Deposit Market Share Report* Outside of Market
Inside of Market
Institution Name
No. of Offices
Deposits
No. of Offices
Deposits ($000)
Market Share
The Boone County National Bank of Columbia
2
33,793
16
1,164,248
37.46%
Landmark Bank, National Association
32
1,030,479
9
615,662
19.81%
Commerce Bank
191
17,453,335
10
447,162
14.39%
Bank of America, National Association
5,396
1,018,869,784
3
214,216
6.89%
The Bank of Missouri
19
691,851
1
109,782
3.53%
U.S. Bank National Association
3,135
235,230,680
5
108,983
3.51%
The Callaway Bank
5
166,837
3
81,778
2.63%
First State Community Bank
45
1,306,233
3
74,222
2.39%
Regions Bank
1,705
93,462,381
4
52,532
1.69%
UMB Bank, National Association
113
11,733,456
1
46,298
1.49%
Mainstreet Bank
2
14,620
1
37,151
1.20%
Hawthorn Bank
23
958,353
1
30,245
0.97%
Providence Bank
11
533,271
2
30,164
0.97%
Martinsburg Bank and Trust
5
131,438
3
23,396
0.75%
First Midwest Bank of Poplar Bluff
5
223,592
1
21,030
0.68%
Armed Forces Bank, National Association
75
1,120,940
1
15,226
0.49%
The Merchants and Farmers Bank of Salisbury
3
72,115
1
13,422
0.43%
Commercial Trust Company of Fayette
1
100,178
1
9,303
0.30%
The Central Trust Bank
12
1,396,708
1
4,087
0.13%
Central Bank of Missouri
2
69,578
1
3,347
0.11%
Empire Bank
21
908,151
1
1,858
0.06%
First National Bank of St. Louis
15
1,081,833
1
1,167
0.04%
Central Bank of Lake of the Ozarks
8
493,028
1
1,070
0.03%
The Third National Bank of Sedalia
6
368,884
1
648
0.02%
Jefferson Bank of Missouri
4
433,437
1
571
0.02%
ONB Bank and Trust Company
9
472,535
1
257
0.01%
First Central Bank
6
169,629
1
233
0.01%
City Bank and Trust Company of Moberly
3
101,559
1
188
0.01%
The First National Bank of Audrain County
3
123,897
1
59
0.00%
Ozark Mountain Bank
5
281,978
1
34
0.00%
Great Southern Bank
110
3,043,180
1
0
0.00%
TOTALS
10,972
1,392,077,733
79
3,108,339
100.00
Number of Institutions in the Market: 31 *Figures are from June 2013, the most recent FDIC market share report. 24
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special advertising section
how to Get an SBA loan Before you can become the CEO of your own empire, you need to put together some cash to fund your dream. That’s where a small-business loan can help. The U.S. Small Business Administration has put together this primer for financing your business, with a little help from your favorite bank. criteria do banks look for in making 1 What small-business loans? Different banks or lending institutions may have different standards, but in general, in order to consider your application for a smallbusiness loan, banks will require: • The loan must be for a sound business purpose. For SBAguaranteed loans, the business must be eligible based on size, use of loan proceeds and the nature of the business (no lending, speculating, passive investment, pyramid sales, gambling, etc.).
• You and your partner(s) must be of good character, have experience and good personal and/or business credit history. • You must have an ability to pay back the loan, so reasonable-to-strong collateral (personal and business assets) is very important. SBA expects the loan to be fully secured, but we will not decline a request to guarantee a loan if the only unfavorable factor is insufficient collateral. Of course, owners must have personal equity investment in the business so they’ve got some skin in the game.
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3
What information will I need?
Different lenders may require more or fewer documents, but in general, you will need: • Personal and business credit history • Personal and business financial statements for existing and startup businesses, as well as projected financial statements • Strong, detailed business plan (including personal information such as bios, education, etc.) • Cash flow projections for at least a year • Personal guarantees from all principal owners of the business
4
How can I set myself up from the beginning (i.e., accounting systems, etc.) to make the process easier?
• Be prepared, be thorough, be truthful. • Choose your lending institution carefully. Larger banks may shy away from small loans, as they are less profitable and take the same amount of underwriting and servicing. That doesn’t mean large banks do not make small loans; it is just more difficult to get one. • Approach banks or lending institutions you have worked with and already have a good relationship. • Explore community banks and credit unions.
• Talk to a lending officer and find out exactly what documentation the bank requires. • Be thorough and bring everything they ask. Many loan applications are denied or face unnecessary hurdles because of incomplete applications. Even before you start gathering and organizing the information required by lenders to consider your application, you should educate yourself regarding business loans so you can understand and discuss intelligently with the lending officers when the time comes.
What is the typical size of a small-business loan?
Small businesses come in many sizes, from a startup of a one-person company to hundreds of employees; their financial needs vary accordingly, so “typical” also varies. That said, in the banking industry the median small-business loan is about $130,000 to $140,000 with highest around $250,000. SBA small-business loans range from about $5,000 (microloans) to $5 million (largest guaranteed) with the average loan amount around $371,000.
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How can I get financing to start a business since many banks want to fund growth? Startups are probably the most difficult ventures when it comes to securing financing. Many startup businesses seek financing from family, friends and credit cards. If the credit is sound, the business plan strong, and you have enough personal resources to invest and collateral to guarantee, look to smaller, community banks and other community financial institutions and credit unions to consider lending you money. Your best bet may be SBA assistance. Begin by visiting the SBA’s website at www.sba.gov, where you will find a wealth of information not only on how to secure a small-business loan, but also discover other services and training opportunities to help you succeed.
there associations 6 Are that can help? SBA works closely with a large network of partners that leverage SBA resources and are ready to provide help. • SBA district/branch offices: There’s at least one in every state. Columbia is served by the St. Louis District office: 1222 Spruce St., Suite 10, St. Louis, MO 63103, 314-539-6600 • SCORE: There are approximately 300 chapters nationwide, including one in mid-Missouri. Learn more at the SCORE website, www.midmissouri.score.org. • Small Business Development Centers: There are approximately 900 locations nationwide, associated with higher education institutions. Visit the Missouri Small Business and Technology Development Centers’ website at www.missouribusiness.net/sbtdc. SPRING 2014
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special advertising section
pleased to meet you Local Bankers Make Personal Relationships A Priority In A High-Tech Age Last year, the American Bankers Association surveyed 1,000 people to find out how they liked to conduct their banking business. The largest percentage of respondents — 39 percent — preferred Internet transactions. “Digital and mobile banking (which was favored by 8 percent in the survey) is increasingly popular with today’s consumers who want account management tools at their fingertips,” says Nessa Feddis, ABA’s senior vice president and deputy chief counsel for consumer protection and payments. “As consumer banking preferences evolve, banks remain committed to offering a variety of choices that meet the needs of all customers.” It’s not just online banking products that are changing the landscape, says Jeff Jones, senior vice president and chief communications officer with The Callaway Bank. The way customers choose to communicate also has changed.
“It is only in the past five to 10 [years], with the emergence of smartphones, that people have really changed how they communicate,” — Jeff Jones
“It is only in the past five to 10 [years], with the emergence of smartphones, that people have really changed how they communicate with friends and family. We have adapted by working to mirror those preferences, and provide those same options for customers to interact with us. In addition to phone, website and email, we’ll communicate with customers via text, online chat and social media,” Jones says. “The biggest challenge we face is meeting their preference while maintaining strict security and confidential protocols. For instance, customers love using email because it’s easy, however we don’t want them to include any confidential information like account numbers or Social Security numbers through an
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unsecure email. For that level of email, we provide a secure email network they can log into.” Another advantage to having such a connected clientele is that it gives banks frequent opportunities to interact with their customers using resources such as Facebook and Twitter. Although banks aren’t using these tools to transact business, social media helps keep them in front of current and potential customers. It also gives banks a way to share good news about their community outreach initiatives, such as food drives, blood drives and school partnerships. With so many high-tech options for their customers, banks realize it’s more important than ever to make every face-to-face interaction with a customer a pleasant experience. For local banks that have built their reputations on personalized service, this is a challenge they are more than ready to face. Mary Ropp, senior vice president and director of development for The Bank of Missouri in Columbia, says her bank entices customers to come inside by offering them fresh-baked chocolate chip cookies every day. But beyond that sweet treat, the bank has specific strategies for staying in touch. “We reach out to our top-tier clients twice a year for a client review and appreciation-type touch,” Ropp says. In addition, Ropp says, the bank reaches out to clients through various media outlets, makes referrals to that client when appropriate, and helps them network with each other. Jones agrees that providing superior service to customers who come into the bank has to be standard operating procedure. “We strive to greet everyone who comes in the door or through the driveups by name and thank them for coming in,” he says. “We make every effort to answer the phone with a person and not an automated attendant. We often meet with people at their office so it’s convenient for them. Our loan officers will frequently meet with customers after-hours or on weekends to make it easier for the customer. We even give away flowers on Mother’s Day to any mother or person wanting to give a mom a nod on her day. Ultimately we want our customers to know they are sincerely appreciated and that we do not take them for granted.”
entrepreneurial spirit
Something To Celebrate
Flat Branch Pub & Brewing Marks 20 Years Of Unconventional Growth by amanda becker photos by l.g. patterson
In 1994, Tom Smith’s dream of owning and operating a brewery came true when he opened Flat Branch Pub & Brewing. Over the past 20 years, Smith has worked hard to make Flat Branch a CoMo staple. When it opened, the restaurant became Columbia’s first brewery since 1841, and a steady stream of customers coming through the door have kept to the idea that Flat Branch will be around for at least another two decades. We sat down with Smith to learn more about Flat Branch’s journey to the present and its trajectory into the future. ›››
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entrepreneurial spirit
What was your inspiration for opening Flat Branch? When I traveled, I would set out to find brewpubs. I would go to Colorado a lot to ski and every time I went to a brewpub there I’d say, “Columbia needs one of these.”
At the time you opened, the Flat Branch area of downtown was not as desirable as it has become today. Why did you choose to locate there? We were one of the first to come into the area. There was an abandoned lumberyard, a meat packer and a number of dilapidated student rental homes. The park, which came along years later but has since been cleaned up, was effectively a toxic waste dump. We liked the building 32
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as it fit the nature of the pub — basically a beer factory. The first thing we did when we moved in was wash 50 years of car exhaust off the ceiling.
What differentiates Flat Branch from the other restaurants in Columbia? The beer differentiates us, and the menu is good, hearty comfort food.
Other restaurants come and go but you’ve managed to build a loyal clientele and stay in the same location for 20 years. To what do you attribute your success? I think what you need for success is a high-quality product, good value and exceptional service. Flat Branch appeals to just about everyone; you’ll see young professionals next to
older people next to college students.
What have been your greatest challenges in this business, and how did you overcome them? We know what we’re doing now; before, my only experience was delivering pizza in college. It took a few years to find our groove. We made things up as we went along; sometimes it’s tougher, and sometimes it’s easier. Eventually, you find the right people and take care of them.
What advice do you have for any aspiring restaurateurs? You have to have a clear vision of your product and how it fits into the marketplace, a convincing argument of why
someone should spend money at your establishment, and why they should keep going back. Listen and respond to what guests tell you because people need to want to be there.
What is your vision for the next 20 years of Flat Branch? When there’s a line out the door six out of seven days a week, why mess with that? We’re where we want to be. We are trying to get greener; we are working with the University of Missouri to pilot a composting program to move kitchen and restaurant waste out of the landfill. We are also using all-natural ground beef from animals that come from one of the most cruelty-free processing plants in the country.
A Party 20 Years In The Making To celebrate the 20th anniversary of Flat Branch Pub & Brewing, the brewpub is opening its doors for a celebration from 5 to 8 p.m. on Friday, April 18. Afterward, the party continues at The Blue Note, where Flat Branch owner Tom Smith is lining up some great bands to perform. Tickets for the event go on sale mid-March and include entrance to the party, food, giveaways and entry to The Blue Note. All proceeds from the ticket sales will benefit the Blues In The Schools program. Blues In The Schools is a national program with a local presence through the Roots N Blues N BBQ Foundation since 2007. Award-winning musicians and educators teach fourthgrade students about blues music origins, history, traditions and influential blues legends during special assemblies and class workshops. Stay tuned to Flat Branch’s Facebook page and website, and The Blue Note’s website for more information on ticket prices, availability, and party details: www.facebook.com/FlatBranch, www.FlatBranch.com and www.TheBlueNote.com.
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ceo roundtable
Market On The Move Real Estate Pros Talk Buying & Selling At The CEO Roundtable by SANDY SELBY photos by L.G. PATTERSON
Some of Columbia’s most successful real estate agents and residential neighborhood developers met at the CEO Roundtable to discuss the upswing in the market and the challenges that lie ahead, including costly new regulations and fluctuating school district boundaries.
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s Columbia’s real estate market on the rebound? The experts at our recent CEO Roundtable say yes, but their optimism is tempered with concerns about the inventory of available homes, school redistricting and potentially costly government regulations. Gary Meyerpeter, Boone County market president of The Callaway Bank, which sponsors the CEO Roundtables, welcomed the group. Then Inside Columbia’s CEO Publisher Fred Parry took over as moderator and asked the attendees to assess the current real estate market. “Last year was great for a lot of us,” said Sean Moore of RE/MAX Boone Realty. “I think it honestly was fueled by low inventory and I think we’re going to
see similar conditions this year. Maybe not the frenzy … last year in the spring season we had about 60 days of people fighting over houses. But we’re at less than 1,000 single-family homes in all of Boone County on the Multiple Listing Service right now, and the last time that happened was exactly a year ago.” RE/MAX Boone Realty’s Susan Horak says she is fascinated by statistics and keeps careful tabs on her personal sales through the years. “I always track myself and try to beat myself,” she says. “I look at what is under contract, the pendings or the pipeline, how many listings I have and what is closed for the year. I’m already 38 percent over where I was on this same day last year. I think people are thinking banks are loosening up a tiny
bit, so that’s helped. With banks being more agreeable, but interest rates possibly going up, people are jumping in maybe a little quicker and they’re just trying to get the deal done while they can.” The Roundtable discussion took place during a dismal period of cold weather, just days before an anticipated warm-up, and Columbia Board of Realtors CEO Lee Russell predicted potential buyers would welcome some mild, sunny days. “What we think is probably going to happen is that a lot of people have cabin fever and the thaw is going to happen and the frenzy is going to happen.”
School Daze Parry asked the group if school redistricting has affected sales in certain areas SPRING 2014
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ceo roundtable of town. Tracy Arey of Tracy Arey Real Estate didn’t believe redistricting had a huge impact, but noted he did work with some families who wanted to buy in particular districts. “I think Battle [High School] got a bad name for itself originally,” he said. “I guess since it was new, it was something that people were just not used to.” As a mother of four, Horak had a different take. “I have four children who have attended Mill Creek since it opened and I am now in Russell. Across the street from me, children who have gone to Mill Creek are now in Grant. Now every family in my neighborhood has to drive more than 25 minutes against traffic to take their kids to school. For parents who want to drop off their kids,
that’s a big commitment. So you wonder what’s to come.” Horak suggested that the school board bring real estate agents into the redistricting discussions since those professionals could give an accurate assessment of how many children are coming and going from each house that is bought and sold. “And from what I understand, the school board is planning on changing that redistricting every year,” Russell said. “Well, there’s no certainty,” said Shannon O’Brien of House of Brokers Realty. “That’s where I am with my clients. I have to direct them to the newspaper to actually read what has happened to understand that what it is today may not be a year from now or
Roundtable Roll Call
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Tracy Arey Tracy Arey Real Estate
Scott Linnemeyer Beacon Street Properties
Sara Harper House of Brokers Realty
Sean Moore RE/MAX Boone Realty
Susan Horak RE/MAX Boone Realty
Shannon O’Brien House of Brokers Realty
Mike Huggans RE/MAX Boone Realty
Lee Russell Columbia Board of Realtors
June Hurdle Linkside at Old Hawthorne
Sponsor Representative: Gary Meyerpeter Boone County Market President The Callaway Bank
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two years from now. So unless you have the ability to pick up and move — which I don’t know of many people who can move every few years — you’re not going to be able to make your buying decisions based on the schools.” Yet relocations based on school district changes are affecting the housing market, according to Moore. “I would guess almost 10 percent of my transactions last year were because of families buying and selling for schools.” Mike Huggans of RE/MAX Boone Realty has been actively involved with sales in the Old Hawthorne subdivision, and Parry asked him if Old Hawthorne’s transfer into the Battle High School district was an issue for those property owners. “I think we would have had a lot bigger issue had we started as a family community,” Huggans said. “We started as a golf community, even though there’s a lot more to Old Hawthorne than golf, and we have a lot more kids now. We see now — more than when we started — that schools make a difference.”
“Unless you have the ability to pick up and move ... you’re not going to be able to make your buying decisions based on the schools." — Shannon O’Brien As for development around the new Battle High School, Moore predicts it will fill in slowly, as has been the case around other new schools in recent years. “Part of the problem is the school board, making decisions, unilaterally deciding where they are going,” Russell said. “And the board insists that developers will follow and they’re not going to.”
Sticker Shock The sentiment repeated around the room was that developers can’t afford to build modestly priced homes in Columbia anymore, and the culprit, they say, is the burdensome cost of new building codes
ceo roundtable
When moderator Fred Parry asked Realtor Sara Harper (in black) to evaluate the luxury home market in Columbia, she had an optimistic view, particularly about homes in the $600,000-$800,000 range that would appeal to physicians and university professors. “Obviously there are fewer buyers in that price range,” she said, “but there are still plenty of them.” and permit fees. In addition to the more stringent building codes recently put in place by the Columbia City Council, there are other regulations looming that could affect the bottom line. Russell had a list of several looming rules, including a proposed Transportation Equity Fee of $4 to $5 per square foot, “trip charges” and expanded codes that would require passive radon systems in rentals and resales. Huggans reflected on new housing construction from just a few years ago. “When you were building $150,000 or $160,000 homes, your lot budget was $20,000,” he said. “It costs that now to put the infrastructure in, without any land costs. You’re never going to see another land lot in Columbia for $40,000 again. That means there’s never going to be another new home for less than $200,000. Wait until we get the impact fees. I don’t think people realize how serious this is.” Scott Linnemeyer, a developer with Beacon Street Properties, noted: “If you take the sales price of the new construction home that you could get a year, two years, three years ago, to reach that same price point, you’re going to have to get less home for your money. It may be 100 square feet smaller for the same price,
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but that’s what we’re anticipating trying to do. The fees and the ones that are still to come are out of control.” Huggans pointed out one obvious problem with the increasing cost of new homes. “Say that a building permit goes up from $5,000 to $10,000. Does that make that house worth $5,000 more? So, what are we going to do about appraisals? If the appraisals don’t go along with the increase in cost, then we’re going to run into some issues here.” O’Brien believes that many Columbians think these stringent regulations sound good in theory and the fees won’t affect them if they’re not planning to buy a house. “They are all applauding the energy changes and the building codes and they think it’s the greatest thing that’s ever happened.” “There’s a lot of lip service in our community about affordable housing, but is that a reality?” Parry asked. “Is that something that’s even on the table? Is there an opportunity to build affordable housing?” Amid chatter about land prices, Huggans suggested: “I doesn’t matter if they give you the land. You couldn’t build a $130,000 house even on free land.”
Another challenge, Horak said, is the high expectations of today’s firsttime buyers. “No builder would build a basic square house that’s cheap and easy to build with a reasonable pitch on the roofline, with one bathroom and three bedrooms and an unfinished basement that when the family gets a little better off, they can finish out. Is affordable housing what we think of, or can children no longer share bedrooms? We’re spoiled brats as consumers. Could we build an affordable house? Yes, we could if it had one bath and a one-car garage.” “But nobody would buy it,” Parry pointed out. “Because it doesn’t meet today’s buyer’s wants,” Moore added. “Even though it would be brand-new and crisp and perfect, it just wouldn’t be fancy,” Horak said. “Gotta have those granite countertops.”
House Beautiful Parry shifted the conversation to the other end of the market: the luxury home. “The thought in town is that if I have a home that’s more than $700,000, it’s probably going to sit on the market for awhile.”
“You’re never going to see another land lot in Columbia for $40,000 again.” — Realtor Mike Huggans “I disagree with that,” said Sara Harper of House of Brokers. “We’ve got plenty of physicians and university people. It depends on the house. It depends on the location. But I think sometimes it can take up to six months, even a year. Obviously there are fewer buyers in that price range, but there are still plenty of them. I would say more than a million, it’s still a pretty tough sale.” Moore points out that when a house price soars above $1 million, many buyers prefer to build. “I’m building my dream house,” he said. “I’m not buying your house.” But that unique home, built
ceo roundtable to satisfy very specific tastes and needs, can be tough to sell down the road. “If you have a beautiful, giant home that’s 10 or 15 years old, you better go in and get rid of that brass,” Horak said. “The people who are purchasing, they do not want to fix those issues of datedness for you because it takes away from the ‘I’m moving to a new house. Now it’s an old house, and I have to go and do all the things I did in my old house to try to get it sold.’ ” “My philosophy is, if it’s $300,000plus, it has to be turnkey,” Moore said. Parry asked the group to define the “sweet spot” in Columbia’s real estate market. “We’re trying to fill that niche right now,” Linnemeyer said. “It’s hard to find homes for less than $300,000 or $325,000 with a finished basement in the southwest part of town. Anywhere in that 300 mark is kind of that sweet spot. It goes back to that whole discussion: The old 250 is the new 300. It’s regulation, it’s land cost, it’s development cost, it’s material cost, it’s construction cost — it’s going up just as quick as permit fees. It’s all that combined.” Parry addressed June Hurdle, who is developing Linkside at Old Hawthorne specifically for active baby boomers. “Going back to 1988, ’89, our Chamber of Commerce has been talking about recruiting seniors to our community. What is your sweet spot, in terms of who you are going after?” Hurdle shared a statistic from the National Association of Home Builders show she had recently attended: Every day in this country between now and 2030, more than 10,000 people will be turning 65. “We are marketing to 50plus,” she said, “but we really think that the people who are going to choose a change of lifestyle and a downsizing type of thing are really going to be 60-plus. They want the opportunity to have less maintenance and lock-and-leave. They don’t want to clean out their gutters anymore. People don’t all move to the warm weather climates as they age anymore. They want to stay near their families, and Columbia has a lot to offer
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Scott Linnemeyer (top, on left) explains that with increasing costs for everything from the land to the materials to the permit fees, a home that would have cost $250,000 just a few years ago will not be priced at $300,000. Susan Horak (bottom left) cites the high expectations of firsttime buyers as one reason it’s difficult for builders to construct affordable new homes. Shannon O’Brien (bottom right) thinks buyers wanting to locate near the heart of the city may start buying old homes they can tear down so they can build in a great location. in those areas. Price range? Probably $275,000 to $375,000 is the range we’re thinking.” Horak wondered aloud if the community is properly preparing for an aging generation when city codes seem to discourage an arrangement where parents come to live with their adult children. “I think there’s a huge push to build with main level or drivable access for an apartment inside the home, like a mother-in-law’s apartment but more expanded. But we have these city ordinances that say it’s a duplex if you have another kitchen. That’s an issue we
need to get over and address before it becomes a problem. You need to be able to say you can have a separate kitchen and not just a glorified, beefed-up wet bar and then we all lie about it and put the stove in afterward.” “This topic was big at the convention,” Hurdle said. “Builders — and this country as a whole — need to be thinking about multigenerational housing. There is a desire for it and a need for it and our builders need to start to think about it.” “It’s sad because I think the multifamily home is more popular on the West Coast and the East Coast,” Moore
said. “Being here in the Midwest, we’re going to be the last ones to see it.”
The Next Big Thing Where are the best opportunities hiding in the local real estate market? According to O’Brien, it may be in that old house next door, especially for buyers interested in being close to the heart of the city. “I think we’re going to start to see a lot of this: ‘I can pay $100,000 for a lot in Old Hawthorne, or I could buy a $130,000 house and just tear the house down.’ ”
“A lot of people think we're in a real estate boom. If you go back to our numbers in 2005 and 2006, they are the same.” — Tracey Arey “It’s huge in St. Louis,” Moore added. Linnemeyer was cautious about the approach, though. “It’ll happen initially,” he said. “And then everyone who lives in these smaller homes in the central area will catch on and then the prices are going to go up.” As the day’s discussion wound down, Arey reflected on the conversation and offered a reality check. “I think a lot of people think we’re in a real estate boom,” he said. “If you go back to our numbers in 2005 and 2006, they are the same. We’re back to normal quicker than most cities because we’re a university city with the hospitals and all the things we’re talking about, so we’re very fortunate that way. “But our appreciation numbers are not what they used to be,” he added. “For 20 years, we’d go on a listing and know typical appreciation of a house that was sitting there for a year — you could almost landmark that at 3 or 4 percent. We’re not back to that either. We’re not seeing a lot of appreciation yet. Home value is flat.” Slow but steady is the watchword for Moore. “Real estate is a commodity,” he said. “Values fluctuate both down and up. But I think the future is going to be good. I think it’ll be slower, but I think there is going to be a steady improvement.”
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The Century Club MFA’s 100-Year Journey From Farm Club To Agribusiness Giant
by KATHY CASTEEL photos courtesy of MFA INC.
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MFA’s Columbia exchange dominated the southeast corner of Broadway and Providence Road, where Monarch Title Co. was the most recent tenant. The exchange’s old loading dock now houses McAdams’ Ltd.
The winds of March blew cold across the fields of Chariton County as seven men made their way on horseback to a one-room schoolhouse near Brunswick. The woodstove provided comfort for the meeting, but the real fire that night burned in the words of a Columbia publisher: “When conditions are such that out of every dollar paid by the consumer, 45 cents — less than half — goes to the producer, the farmer, then evidently something is wrong with the division of the dollar,” wrote William Hirth in a February 1914 issue of The Missouri Farmer. “This is largely the farmer’s fault … because of his independent action, lack of organization, and [lack of ] cooperation. The individual farmer may raise his voice against an injustice … but what does it amount to? Let a million or 10 million protests go up … through a united organization, and something will be done.” ¶ Hirth’s words made sense to Aaron Bachtel, a prominent farmer in the area. “It looked so simple and at the same time so far-reaching, that it appealed to me very forcibly,” he remarked years later. Bachtel rallied his neighbors to meet and discuss Hirth’s editorial urging the formation of farm clubs; six joined him on the night of March 10 to form the first farm club, electing Bachtel as president. The seven-member club enacted 100 years ago marked the beginning of the Missouri Farmers Association — Columbia’s MFA Inc. SPRING 2014
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The Century Club
Americans were living in interesting times in 1914. Henry Ford had just introduced the moving assembly line for production of the Model T; Ford Motor Co. more than doubled autoworker wages to $5 for an eight-hour day. By August, the first electric traffic signal had been installed in Cleveland, Ohio. Babe Ruth made his professional baseball debut in the spring, pitching a six-hit, 6-0 shutout for the Baltimore Orioles. The Panama Canal opened to ship traffic that summer as war erupted in Europe, a conflagration that eventually would envelop the globe in the first world war. The New York Stock Exchange closed for four months; two weeks after bond trading reopened, stock sales resumed with disastrous results, dropping 24.39 percent, the largest one-day percentage drop in the history of the Dow Jones Industrial Average. The prices of real goods — fuel, metal products and building supplies — began to rise, however, at the end of 1914. And by then, the veracity of William Hirth’s arguments for cooperatives had struck home for Aaron Bachtel and his fellow farm club members. In the summer, the Newcomer Schoolhouse Farm Club put in its first group order with Hirth for 1,150 pounds of binder twine. Hirth followed up that fall with a coal contract for the club that locked in prices until the next March. As the war-fueled price of coal began to rise, Bachtel began receiving carloads of coal at the cheaper, contracted price, which he distributed to his fellow farm club members. “One car I got in, I told all the farmers, regardless of whether they were members or not, to come in and get coal just the same, with one provision: when they got their coal, if they thought the farm club was really worthwhile, they were to pay their dues and become members,” Bachtel later recalled. “They did, all but one man. And I’ve never liked him since.” Buying as a group saved the farm club $400 on its first few transactions. News of the club’s newfound strength in numbers
spread like wildfire across the state, Hirth fanning the flames with the pages of his magazine. By the 1920s, 400 farm clubs had formed, all affiliated with the Missouri Farmers Association. From that grassroots beginning in 1914, MFA grew to become the largest business enterprise in the state through the middle of the 20th century. Today, MFA Inc. is the oldest regional farm supply and marketing co-op in the United States, and the 17th largest. Headquartered in Columbia, it serves more than 45,000 members in Missouri and the surrounding states through MFA Agri Services Centers, locally owned affiliates, privately owned enterprises and agribusiness partnerships, delivering about $1.5 billion in sales annually. Nationally, MFA ranks in the top 10 among agricultural cooperatives for retail sales; storefronts; fertilizer, grain, seed and crop protection sales; and custom application and precision agriculture services. About 1,600 work for the cooperative, 205 in Columbia, making it one of the largest employers in Boone County. Two other major local companies — MFA Oil Co. and Shelter Insurance Cos. — are spinoffs from MFA Inc. A century of operation is a milestone that few businesses can claim. In the 1920s, the average lifespan of companies on the S&P 500 Index was 67 years, according to Yale University researcher Richard Foster; today, they last about 15 years. The most important factor for survival is an emphasis on innovation and reinvention, Foster says. MFA CEO Bill Streeter knows his cooperative is no different. “Agriculture is a changing business, and we must change with the times,” Streeter told members at the cooperative’s annual meeting last November as they kicked off the centennial celebration. “We will never lose sight of the fact that this is what we’re about: serving the farmer at reasonable returns.”
Giving Back
“Ask me what I like best about working for MFA,” Streeter prompts, and then obliges with his answer. “I have never been asked to do anything dishonest or irresponsible,” he says. “I’ve never cheated a customer. MFA doesn’t pollute the environment and it doesn’t neglect customer or employee safety.” It comes down to exemplary customer service, he says. “Today’s commercial farmer is well-educated and sophisticated. Our employees have to know more than the customer to help the customer make a good buying decision. We’re not here just to make a dollar today; we have to make that dollar tomorrow and the next day and the next day and the next.” MFA has to satisfy its customers all the time, Streeter adds. “Farmers don’t make a buying decision once a year or once a month when they write a check for seed or feed or supplies. They make a buying decision every time they look at their fields, every time they look at their milk records, every time they look at their livestock. We have to make our customers happy every day.” That’s an apt philosophy coming from one who ascended through MFA’s executive tiers from a sales background. The 65-year-old CEO took the reins in 2009 and created a strategic plan to guide the cooperative back from its worst sales year in the depths of the Great Recession.
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he MFA Foundation, a partnership between MFA Inc., MFA Oil Co. and other MFA agencies, provides a scholarship program that has given financial assistance to nearly 11,600 college students since it began in 1965. The $15 million educational fund awards close to $700,000 in scholarships each year to more than 300 high school seniors. The foundation provided seed money for the Bond Life Sciences Center at the University of Missouri, and has contributed to Drury, Stephens, Missouri Valley and Columbia colleges; the University of Missouri Medical School Library and College of Veterinary Medicine; and the new Missouri School of Dentistry &
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Oral Health at A.T Still University in Kirksville. It also supports youth programs such as 4H, FFA, Agricultural Leaders of Tomorrow, Missouri Young Farmers Association and Missouri Young Farm Wives Association. The MFA Inc. Charitable Foundation formed in 2005 to support local agencies such as Woodhaven, Job Point and the Food Bank of Central & Northeast Missouri; other funds have gone to community soccer fields, senior citizens centers and church day care programs. “We strongly believe in giving back to the communities where we operate,” says MFA CEO Bill Streeter. “If it improves the lifestyle of rural America, we’re for it.”
sizing up mfa According to Crop Life magazine, in 2013 MFA Inc. ranked nationally: 5th in precision agriculture 6th in storefronts 8th in seed 9th in retail sales 9th in plant foods 9th in custom application 10th in grain 10th in crop protection The U.S. Department of Agriculture ranks MFA Inc. as No. 17 on the list of the 100 largest cooperatives in SPRING 2014 Columbia’s CEO I 45 I Inside the nation.
The Century Club
“We’ve made it up,” he says. “Agriculture has had four good years. We’re not yet where we want to be, but we have room to take risks.”
Born in Rosedale, Miss., Streeter was the son of a towboat captain on the Mississippi River. His family moved to Lilbourn, Mo., in New Madrid County when he was 2 years old. He earned a bachelor’s degree in agriculture from the University of Missouri in 1970. After a hitch in the Army as a field artilleryman that included a tour of duty in Vietnam, Streeter returned to Columbia in April 1973 and hired on with MFA. He worked in the crop protection division as a technical sales representative. “I actually started in the MFA Oil division,” he says. “It was still a part of MFA Inc. then and that’s where our chemical division was located.” Streeter worked with MFA stores in the eastern half of Missouri, expanding his knowledge of the cooperative’s livestock, animal health and warehousing operations. “If you’d asked me what a CEO was back then, I couldn’t have told you,” he says. But he was a quick study in management, and moved up through the ranks, becoming manager of the farm supply division by 1978. He continued his climb, spending four years as sales manager of the retail division and 12 years as vice president of corporate sales. In 1998, Streeter was named senior vice president of retail operations, where he served until his predecessor, CEO Don Copenhaver, retired. Streeter became CEO on March 1, 2009. When Don Copenhaver announced his plans in 2008 to retire in 2009, MFA had just posted its most profitable year in history — $45 million to the good. But a global financial crisis and capricious weather swept away the black ink as fertilizer stocks, sitting unused in warehouses, plummeted in value. Markets crashed and business floundered; just one year after record gains, MFA posted a historic loss of $64 million in 2009. Streeter knew he had work to do, and he was up for the challenge. “I’m right where I want to be,” he told the managers meeting in August 2009. “I wouldn’t trust anyone else.” Streeter started trimming MFA’s operations — 10 percent of the employees were let go, nonstrategic assets were shut down or sold. New purchases or expansions had to pay for themselves in seven years or less. Facilities are under constant assessment. “We spend $16 to $18 million a year on updating and replacing equipment,” he says. “We are constantly modifying our infrastructure.” When the MFA board of directors hired Streeter as CEO, he told them he had two goals for the organization: develop 46
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a strategic plan and implement a detailed, written employee training program. The executive team drew up a list of 17 corporate strategies covering finance, operations and human resources. A rolling, three-year set of action plans accompanies each strategy. “We go through a process before the beginning of each fiscal year where we analyze our strengths and challenges, identify opportunities in the marketplace, create financial objectives based on strength and market forces, and look at our key competition,” Streeter says. “These strategies form a roadmap for senior management and the board of directors.” Streeter hired a corporate trainer to develop educational programs for employees in all divisions. The LEAD program (Leadership Exploration and Development) cultivates managers and future leaders. A dedicated classroom in the Columbia headquarters hosts on-site sessions; trainers also travel to other MFA facilities. “Bill Streeter is dedicated to an educated workforce,” says MFA Chairman of the Board Don Mills. “Today’s agriculture is a complex enterprise. Farmers and ranchers are responsible for tremendous assets and complex technology. They need to rely on their cooperative to stay ahead of changes in the industry. Only employee education can provide that edge.” Gen. Douglas MacArthur is Streeter’s inspiration for his employee development plans. “While MacArthur was taking the Philippines in World War II, he already had a plan for Japan,” Streeter notes. “And at MFA, once we achieve a goal, we need to be prepared to take the next step.” A self-described “big-picture guy,” Streeter’s already looking where to take those next steps. He sees new markets opening with innovations such as precision agriculture services — GPS-led crop data and specific-site crop management that can deliver pinpoint accuracy for soil tests, chemical analysis and yield projections. His wish list for growth includes an MFA presence in every county in Missouri, and expanded ventures into neighboring states — Kansas, most likely. Sales targets are monitored monthly and reviewed with regional and division managers every six months. The balance sheet is the tool by which MFA will position itself for the future, says board chairman Mills. “MFA’s management and board are dedicated to a strong, healthy balance sheet,” Mills says. “You can have good intentions, but if you’re not fiscally fit, you’ll fail. MFA is on the forefront of today’s agriculture and we are dedicated to staying there. We minimize our weakness, build on our strengths and act on our opportunities.”
“MFA has lasted so long because we have a culture that has
remained sharply focused on doing what we were founded to do,” says Mills. “All of our products, services, facilities and long-range plans are developed with farm families’ best interest in mind. That keeps us relevant.” People trust what they know, Streeter says. “For 100 years, we’ve had the trust and confidence of the owners. We’ve always had an interested membership and an engaged board. We’re small enough that the model works and big enough to provide the resources to make it work.”
Snapshot: MFA At 100 45,000+ members
$1.5
billion
annual sales
205 employees in Columbia 1,600 employees companywide 8 divisions Plant Foods Crop Protection Seeds Farm Supply Feed Animal Health RETAIL DISTRIBUTION & GRAIN MARKETING
4 partnerships • Cache River Valley Seed LLC, Cash, Ark. • Mid-State Seed LLC, Marshall, Mo. • AGRIServices of Brunswick LLC, Brunswick, Mo. • Central Missouri AGRIService LLC, Marshall, Mo.
Transportation & Distribution
180+ facilities & affiliates in Missouri, Kansas, Arkansas, Oklahoma and Iowa
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Game Changers In its 100-year history, MFA has had six leaders. Here’s a look at the men who made a difference.
William Hirth The publisher of The Columbia Statesman and The Missouri Farmer, William Hirth’s passion for organizing farmers was the driving force behind the formation of MFA, although he didn’t hold the title of president until 1928, when he moved to protect MFA from a takeover bid. A loosely federated web of independent associations with often conflicting agendas, MFA was the largest cooperative in the country by the 1930s. Hirth established MFA Oil Co. in 1929 as a tightly structured business within the co-op. Hirth died in 1940; MFA purchased The Missouri Farmer from his estate and renamed it Today’s Farmer, the cooperative’s official publication.
Fred Heinkel William Hirth’s protégé went into farming because he was too young to get a teaching certificate. Inspired by a Hirth speech, Fred Heinkel immediately joined his local MFA farm club. He moved up in the organization, becoming Hirth’s vice president in 1936; the membership elected him president after Hirth died, and every year thereafter for 39 years. Heinkel presided over the cooperative’s greatest membership growth and expansion of enterprises. MFA boasted 100,000 members in 1946; its “gate to plate” vertical integration of products offered everything from farm supplies to groceries. Heinkel formed MFA Insurance Co. in 1945, after MFA lost a court case and its insurance company defaulted. He was the instigator of the successful effort to create a four-year medical school on the University of Missouri campus in Columbia. He lost his re-election bid for the MFA presidency in 1979. Heinkel died in 1990. His obituary ran in The New York Times.
Eric Thompson The MFA personnel director stunned the state when he defeated Fred Heinkel for the MFA presidency in 1979. Eric Thompson promised to stay no more than six years. He took over a cooperative that was financing growth with too much debt as the nation plunged into another farm crisis. Thompson’s changes included reshaping MFA operations into a tighter corporate structure, consolidating operations and placing the selection of president in the hands of the board of directors. MFA Insurance split off and renamed itself Shelter Insurance in 1981. Thompson further streamlined by combining the roles of the president and executive vice president into the CEO. He wrote himself out of a job. Thompson died in 2005.
Bud Frew The first CEO of MFA, Bud Frew was a mechanical engineer who came to MFA from Growmark. He’d quit when Fred Heinkel was president, and was hired back by Eric Thompson. Frew held off merger attempts and bond write-downs in that first lossfilled year. MFA Inc. relinquished membership on the board of MFA Oil, although the cooperatives continue a close working relationship. Frew had a flair for the dramatic: In a confrontation with St. Louis bankers, Frew once threw a set of keys on the table and walked out, telling the bankers they could just run the place themselves if they didn’t let him do it his way. The bankers conceded, to Frew’s relief — the keys he’d thrown down were his car keys. When Frew retired in 1998, he had presided over 12 straight profitable years for MFA. Frew died in 2011.
Don Copenhaver An accountant by training, Don Copenhaver kept an eye on the balance sheet while looking for growth opportunities. During his 11 years as CEO, MFA formed partnerships to create private businesses under the MFA Enterprises name. He insisted growth come in targeted business areas that meet specific objectives.
Bill Streeter When Bill Streeter took over five years ago, he alluded to the difference between the breakfast contributions of the chicken and the pig. “The chicken is involved, but the pig is committed,” he said. “Think of me as the pig.” Despite historic losses in 2009, Streeter refused to retreat, promising no cutbacks in product offerings, employee training or technology adoption. Since then, sales have increased 40 percent and the company’s net worth has nearly doubled.
Proud Past, Bright Future: MFA Incorporated’s First 100 Years By Chuck Lay (Donning, 2013)
A century in business is no mean feat, and MFA is marking the occasion with a book. Written by Chuck Lay, MFA communications director and Today’s Farmer executive editor, Proud Past, Bright Future is a fascinating narrative detailing the tumultuous history and soaring success of the cooperative. Lay takes readers on a journey through commerce from horse and buggy days to world wars, from market crashes to backroom machinations and boardroom revolts. MFA leaders hobnobbed with the most powerful people in the world, and many of those power brokers made pilgrimages to Missouri just to be seen at the cooperative’s gatherings. For Lay, a 25-year MFA employee, writing the 184-page book was a labor of love for a history geek who “believes strongly in what MFA stands for and what the cooperative accomplishes for its members,” he says. “I am fascinated by history and the concept of modern man standing on the shoulders of giants. Over the years, I would periodically stumble across priceless pieces of history and knew they needed to be preserved.” The history, alongside dozens of historic photographs and artifacts, has been preserved in the large, coffeetable book. Priced at $29.99, it’s available online through Today’s Farmer at www.todaysfarmermagazine.com, at Columbia MFA Agri Services on Paris Road and at MFA’s home office on Ray Young Drive.
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missouri
works Economic Development Director Mike Downing Beats The Bushes To Bring Jobs To The Show-Me State by
KATHY CASTEEL
photo by L.G. Patterson
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Former President Ronald Reagan called them the nine most terrifying words in the English language: “I’m from the government and I’m here to help.” ¶ Mike Downing isn’t afraid to say those words. And he does want to help. ¶ Missouri’s economic development chief is an unabashed cheerleader for government efforts to bring in new business — and new jobs — to the Show-Me State. Sworn in as director of the Department of Economic Development in February, 59-yearold Downing has spent his entire career talking up Missouri’s business climate, its products and its workforce. ¶ “We’ve gone overboard getting these industries to notice us,” Downing says.
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Downing makes a habit of going overboard to achieve a goal. A Bootheel native, he was born in Kennett and grew up on a cotton farm near tiny Bragg City. When he left home for college at Arkansas State University in 1972, Downing went out for football, even though he hadn’t played in high school. Self-taught as a placekicker, he started as a junior. In 1975, the A-State Indians were undefeated, but the Southland Conference team’s 11-0 record still did not secure it an automatic bowl game bid. Arkansas State missed out on postseason play that year. “We are the only undefeated Division 1 team that didn’t go to a bowl game,” Downing recalls. The snub reportedly was the driving force in creation of the Independence Bowl in Shreveport, La., in 1976. Downing “majored in almost everything” in college, he says, finally settling on a degree in physical education, health and recreation. “I thought I was going to be a football coach,” he says. Instead, his career path took him into economic development, coaching businesses instead of athletes. He began graduate work at the University of Missouri, working toward a master’s degree in public administration. After two semesters, Downing’s career detoured back to the Bootheel for some on-the-job experience on the area’s six-county regional planning commission. “We worked up economic development plans for the area, acquired grants and focused on infrastructure,” he says. He remained in the Bootheel for three more years before making his way to Jefferson City and the seat of state government. Downing joined the Department of Economic Development in 1982, where he has served under seven governors. He was hired to administer the Community Development Block Grant program, then moved on to manage the department’s business finance section. “It grew to a larger scope to include incentives and high-tech programs,” Downing says. “We focused on business development — attracting new companies to the state and expanding existing businesses.” Downing spent about a dozen years marketing Missouri to the rest of the world. Along the way, he finished his master’s degree at MU. By 2008, he was ready for a new challenge and became the first executive director of Missouri CORE (Connecting Our Regional Economy), which was then a new regional economic development agency for Boone, Callaway, Cole, Audrain and Cooper counties. CORE works to attract new businesses, promote major projects with a regionwide economic impact and assist communities in the expansion of existing and startup businesses.
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When he returned to the Department of Economic Development in late 2009, Downing was named deputy director and tasked with developing a strategic plan for attracting economic growth to Missouri. It’s a strategy that has endured as Downing moved up in agency leadership to acting director last year and his current position as director. With a three-pronged focus on business attraction and expansion, workforce development and import growth, Downing says Missouri’s economic development plan is a good fit for the Show-Me State. “Missouri workers are very productive and cost-efficient,” Downing says. “They have the skills companies want. Missouri is in a prime location with a low cost of living, low energy costs and low tax rate. “And,” he adds, “Missouri offers good incentives.”
With a three-pronged focus on business attraction and expansion, workforce development and import growth, missouri’s economic development plan is a good fit for the Show-Me State. The state’s incentive programs — what Downing calls “the cost of doing business” — are the reason Missouri has vaulted to the top 10 lists of many economic ranking services. According to the U.S. Bureau of Labor Statistics, Missouri outpaced all eight adjacent neighbor states in employment growth last year. For the past two years, the Show-Me State has led the nation in technology jobs created. To create those jobs, Downing’s department has developed partnerships with agencies such as mid-Missouri’s Regional Economic Development Inc., the University of Missouri, local community colleges and trade schools, the MU Life Science Business Incubator and Missouri Technology Corp. Amped-up export services are creating new international markets for Missouri goods, he adds. And last August, the state rolled out Missouri Works, a revamped incentive program to attract and retain businesses in Missouri. Site certification and a work-ready populace add enticement to the incentive program. “We’ve put together a package of services that is enough to win a project,” Downing says, “but not enough to give away the farm.”
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the como connection So what do the state’s economic development efforts mean for Columbia businesses? “There’s a lot we can do for Columbia,” says Missouri’s economic development chief Mike Downing. “Contact the department before you apply, and we can walk you through any of our programs.” Find out more at the Department of Economic Development website, www.ded.mo.gov.
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Missouri Works www.ded.mo.gov/moworks
The new Missouri Works program consolidated four business incentive programs and three workforce programs to streamline and improve the state’s business development incentives. It features more flexibility and lower thresholds for businesses to meet incentive requirements. The program provides significant tax benefits for new and existing companies that are creating and retaining jobs in Missouri, including retention of state withholding tax for a set number of years. Manufacturers also receive a forever sales tax exemption for new equipment and energy purchases. The bar for minimum job creation has been lowered to 10 new employees; in rural areas (mid-Missouri counties excluding Boone) and enhanced enterprise zones, the hiring minimum is two new employees. Eligible businesses are “primary companies,” which compete outside the local market. Primary companies may be involved in technology, research or manufacturing, or they may maintain an office or headquarters in the community. Local retail, and food and beverage outlets generally do not qualify as primary companies, Downing says.
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certified work ready communities
www.ded.mo.gov/getcertified
ACT Inc., which administers the American College Test, has developed the Work Keys Test that “analyzes and rates what is required for every job imaginable,” Downing says. The three-part test covers math, reading comprehension and information gathering; minimum scores are set to indicate chances of success in various fields, documented by the National Career Readiness Certificate. Downing says 1,200 companies in Missouri are now using the test as a consideration in hiring. “It’s an opportunity for job applicants to demonstrate their skills,” Downing says. “Employers like it because the test leaves them with less risk and lower turnover.” The Certified Work Ready Communities initiative is a voluntary program guided by key community leaders to attract, retain and develop
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export missouri www.ded.mo.gov/exports
an educated and skilled workforce. If a target percentage of the community’s workforce attains the National Career Readiness Certificate, it is designated a Certified Work Ready Community, indicating a superior skill level in the local workforce. Currently, four Missouri counties are Certified Work Ready Communities; another 37 — including Boone — are in the process of becoming certified. Locally, the tests are available at Columbia Area Career Center and Moberly Area Community College.
With 12 trade offices in foreign countries, Missouri has boosted its international presence to raise its level of exports. Targeted markets include Brazil, Canada, China, Germany, United Kingdom, Hong Kong, India, Japan, Mexico, South Korea, Singapore and Taiwan. “Columbia’s exports increased 133.8 percent from 2005 to 2012,” Downing says. “That’s product going out and money coming in. These countries also have companies looking to establish facilities in the United States. If they’re already doing export business with us … well, we’re really pushing flyover country to them as a central location for such facilities.” In 2012, businesses in the Columbia area exported $296 million in goods, including agricultural products, fabricated metal parts, transportation equipment, machinery, electronic components and computer software. The Missouri International Trade & Investment Office offers assistance to Missouri exporters in trade counseling, distributor searches, business protocol, market research, export finance, developing leads, trade and catalog shows, trade missions, directory listings, and documentation and due diligence support.
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Show-Me Motors
ford f-150
ford transit Photos courtesy of Ford Motor Company
we're No. 1
Economic Development Director Mike Downing proudly points to Missouri’s auto industry when showing where the state’s recruitment and incentive efforts are paying off. Feared dead just last decade, production has soared like a phoenix, shaking off its funereal cloak as both Ford and General Motors have reopened and retooled assembly lines for new vehicle models. The 2010 Missouri Manufacturing Jobs Act, which provides tax incentives for companies that invest in plants in the state, enticed Ford Motor Co. to invest $1.1 billion in its Claycomo plant near Kansas City. New assembly lines for the Ford Transit and a new, lighter F-150 truck mean an additional 2,000 automotive jobs in the area, Downing says, softening the blow of Ford’s decision to move Escape production to Louisville, Ky. In eastern Missouri, General Motors began hiring hundreds of auto workers in January to fill needs in its Wentzville plant, where production will begin soon on two redesigned midsize pickups — the Chevrolet Colorado and the GMC Canyon — that were previously produced in Shreveport, La. The truck lines are additions to the Wentzville plant, which currently produces the Chevy Express and GMC Savana vans. Since 2011, General Motors has promised to invest $350 million in the plant. That translates to 1,600 jobs retained and another 1,600 added, Downing says. Another 15 auto-related suppliers have announced plans to set up shop in Missouri to serve those plants. “We’ve had a concentrated focus on the auto industry the past few years,” Downing says. “The governor has attended — and spoken at — the last three auto shows in Detroit. The industry is booming and we’re getting a lot of response — really, more than our share of attention.”
Last December, the California think tank Milken Institute put Columbia at the top of its list of “Best Performing Small Cities.” The Institute’s index measures employment growth in 200 large cities and 179 small metros where wage and salary growth reflect the quality of jobs created and sustained. ¶ Milken noted Columbia’s employment in high-tech industries such as telecommunications had grown by 60 percent between 2007 and 2012. Employment in professional, scientific and technical services increased by 1,450 jobs over the same period. ¶ The city’s increasing student population has helped return construction activity to near prerecession levels, says the Milken report, and has bolstered the local retail sector; food and beverage stores have grown by 150 percent from 2007 to 2012 — a higher growth rate than in any other metro area.
resources
Missouri Technology Corp.
MOSourceLink
Missouri Technology Corp. is a public-private partnership created by the Missouri General Assembly to promote entrepreneurship and foster the growth of new and emerging high-tech companies. It focuses on bioscience industries that build on Missouri’s history in agriculture. Since 2010, MTC has invested in more than 40 companies, says Economic Development Director Mike Downing, dispensing $14 million in seed and venture capital that has leveraged $90 million for those same projects. www.missouritechnology.com
MOSourceLink is a resource clearinghouse that connects small-business owners with a network of business-building services. It maintains a database to facilitate links between resource organizations and established, emerging and startup small businesses throughout Missouri. www.mosourcelink.com SPRING 2014
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With a solid foundation in the Central Missouri commercial construction industry since 1970, Reinhardt Construction discovered another niche in 1984 when the University of Missouri approached the company to build the private living quarters for the president of the university. Since then, Reinhardt Construction has established itself as the premier contractor for custom homes in the Central Missouri area. Their custom homes require unparalleled attention to detail, which is achieved by the quality and longevity of their carpenters and other craftsmen. Reinhardt Construction assures the homeowner a home of utmost quality, completed on time, and at a fair price. President and owner Jerry Daugherty enjoys developing good working relationships with his clients as he carries out their dreams. He describes these homes as “commercial projects that people live in.�
627 N. Rollins St., Centralia 573-682-5505 • ReinhardtConstruction.com
DIVIDENDS
ceo at play
three questions We usually make it a point to ask the tough questions, but this time we gave some business leaders a break by asking them questions that perhaps gave them pause but didn’t make them break a sweat.
Green thumb or brown thumb? ruebling: Since I wasn’t sure what a “brown thumb” was (maybe a Charmin commercial?) I went to the Urban Dictionary, the provider of all logic and stuff I can’t make up an answer for. So here is the definition and this is the actual quote in the book, “The opposite of a green thumb; a person who doesn’t know his brass from his oboe about taking care of plants.” I loved the musical reference, don’t you? Without a doubt — I’m a brown thumber. powell: I’ve been accused of having a brown nose before, but never a brown
Look Who’s Talking:
Steve Powell President, Delta Systems Group
norm ruebling President, MO-X and Doc & Norm Direct
thumb. Although if you’re good at growing plants then wouldn’t you have a brown thumb from the dirt? But if you’re good at growing carrots then technically having an orange thumb would show you were able to grow carrots that you were able to cut up and eat. Speaking of orange, one year we grew pumpkins in our back and side yard. We ended up with something like 200 pounds of pumpkins. Plus, I didn’t have to mow that part of the yard for several months so that was a bonus. What was the question again? Oh, right, thumbs. Yes, I have a right thumb and a left thumb.
What was the best vacation you ever took? powell: The one where I went to Mo’orea in French Polynesia to a town with
no phones and no Internet. We drank fun drinks out of tiki glasses. We spent a few days making hats and placemats out of palm tree fronds. We helped some locals carve a tree trunk into an outrigger canoe and then used that canoe to go free diving for shellfish we then cooked right on the beach. But then, the alarm went off and I woke up right back in minus-4 degree weather. ruebling: I suggested (wink, wink) to my family that we should take a trip to Disney World, letting them believe the trek was for my kids and my wife, with me to enjoy them soaking up Mickey’s pleasures. Not on your life! I rode Tower of Terror, Rock ‘n Roller Coaster, Space Mountain and Summit Plunge (not recommended while wearing a Speedo) until they kicked me out of the parks. Family was watching “A Bugs Life” and “Honey I Shrunk the Kids” … too Midwestern for me.
How do you get ready for swimsuit season? ruebling: Speaking of Speedo, have you seen these legs? Well, imagine them attached to a Speedo. I am in swimsuit season form 365 days a year, 24/7. Bring it! powell: My wife buys a new swimsuit that ensures I look at least 23 percent less
dorky than all the other dads as I drag in a wagon full of toys and noodles. I then say something like, “What’s wrong with last year’s swimsuit?” And she replies, “Last year? Um, that one is seven years old, is faded and has two holes in it.” SPRING 2014
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Would Like To Thank These Individuals For Their Participation In The Discussion On Columbia’s Real Estate Market: Tracy Arey
Mike Huggans RE/MAX Boone Realty
RE/MAX Boone Realty
Sara Harper
House of Brokers Realty
June Hurdle
Linkside at Old Hawthorne
Shannon O’Brien
Susan Horak
Scott Linnemeyer
Lee Russell
Tracy Arey Real Estate
RE/MAX Boone Realty
Beacon Street Properties
Sean Moore
House of Brokers Realty Columbia Board of Realtors
DIVIDENDS
executive style
Watch Your Work Add some polish to your everyday executive garb with a statement watch. It’s easy to lose track of time while in meetings or working on a big deadline, but with the right watch, you can be up-to-the-minute in up-to-date style. by brittany king photos by l.g. patterson
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2 1. Men’s Datejust Rolex watch, available at Buchroeders ($5,150) 2. Women’s gold 24-karat Rolex watch, available at Buchroeders ($6,500) 3. Women’s Quartz Classic Sport Tissot watch, available at KT Diamond Jewelers ($575) 4. Men’s Tissot T-Race Series watch, available at KT Diamond Jewelers ($725)
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5. Men’s gold-plated Reactor Source watch, available at L.C. Betz ($550) 6. Women’s blue pearl Reactor Quark, available at L.C. Betz ($350)
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DIVIDENDS
networking
Legislative Forum
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The Boone County Chapter and the Mizzou Legislative Network Committee of the Mizzou Alumni Association met on Jan. 30 at Harpo's for the 12th annual Legislative Forum. The forum gave local alumni, faculty, staff and administrators the opportunity to meet local legislators in a relaxed, social setting to discuss the upcoming legislative session. (Photos by Ry Colman) 1. Michael Middleton, Tim Rooney 2. Kip Kendrick and Ben Levin 3. Marc Linit and Derek Coats 4. Caleb Jones and Mike Bradley 5. Nancy Wilson, Debbie Daniels, Barbara Schneider and Liz Schmidt 6. Dick Otto and Gary Smith 7. Eli Yokley and Caleb Rowden 8. Kellie Ann Coats and Niki Harris
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DIVIDENDS
networking
CoMo Christian Men's Conference The CoMo Christian Men's Conference took place on Feb. 22 at Woodcrest Chapel. Four keynote speakers inspired guests with powerful messages that touched on the day's theme: Some Assembly Required. Speakers included author Robert Lewis, actor and comedian Michael Joiner, Kanakuk Institute Founder Keith Chancey and World Series Champion and MVP baseball player Darryl Strawberry. Visit www.CoMoChristian.com for details on the organization and updates on next year's conference, which is scheduled for Feb. 7, 2015, at the Missouri Theatre in downtown Columbia. (Photos By Joe Schmitter) 1. Dr. Robert Lewis 2. Woodcrest's band, Remove the Silence 3. Keith Chancey 4. Darryl Strawberry and Woodcrest Pastor Piet Van Waarde 5. The men's chorus from Second Missionary Baptist Church 6. Jack Joiner 7. Michael Joiner
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he the
ADVERTISING INDEX
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PARTY!
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Commerce Bank.................................................19 Creative Surroundings......................................60 D&M Sound...........................................................3 Downtown Appliance..........................................7 First State Community Bank........................... 27 Hawthorn Bank..................................................68 Houlihan’s............................................................62 Image Technologies.......................................... 37 ICM Custom Publishing Solutions.................21 Inside Columbia magazine.................................41 Landmark Bank...............................................2,23 Les Bourgeois Vineyards................................. 39 Macadoodles.......................................................15 Moresource.........................................................30 Postal & Sign Express.......................................62 Precision Construction....................................... 9 Reinhardt Construction....................................56 Riback/DKB........................................................62 Smart Business Products.................................60 Stifel Nicolaus....................................................60 Straight Line Striping.........................................21 Tech Electronics..................................................15 The Callaway Bank.......................................13,58 The District..........................................................41 The Trust Company..........................................29 Timberlake Engineering.....................................11 UMB Bank........................................................... 25 University of Missouri Health Care.............. 67 Waddell & Reed................................................. 27 Williams-Keepers Inc........................................21
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Inside Columbia’s CEO
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SPRING 2014
PUBLISHER’S NOTE
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Impact Fees Will Minimize Columbia’s Recovery
f you’re a small-business owner leading up to this change, many cities in Columbia, you probably have a have chosen not to adapt the full code keen understanding that our local because of the unjustified costs associated economy is recovering much slower with compliance. This change to a more than anyone expected. While the restrictive city code has added between slow but steady improvement in $5,000 and $10,000 to the average economic conditions is better here than cost of a home in Columbia. Sadly, in most areas of the state or national the increased building costs for these economy, those who became accustomed new homes will have no effect on their to a once-robust environment have found appraised value; appraisers don’t take the pace of recovery is nothing short into account building fees, impact fees of grueling. Columbia’s or energy efficiency when residential real estate and determining the market homebuilding market may value of a home. This be the one local business “negative investment” sector that is the exception ultimately gets passed to the rule. along to you in the form of For that reason, we increased housing costs. invited Columbia’s top If you follow City real estate professionals Council action, you may and homebuilders to join have noticed that building us for our quarterly CEO permit fees have more Roundtable luncheon. In than doubled in the last some respects, we were five years. City Council “Few can argue hoping their enthusiasm members have made it and good luck would rub clear that developers and that home off on the rest of us. On homebuilders need to ownership is the other hand, we wanted “absorb” more of the costs the singular to gain some insight into associated with growth and circumstance that the economic dynamics economic development can break the cycle and market conditions in our community. The of poverty.” that are buoying the local council favors cleverly – Fred Parry industry that took the disguised “impact fees” hardest hit when things that assess an increased went south in 2008. Amid charge every time a shovel the good news and cautious optimism, of dirt is turned in Columbia. While in however, the discussion revealed signs the long run, the people who occupy of frustration with the city’s regulatory these new homes will be paying property environment that seems poised to taxes and sales taxes that fuel our local threaten the full economic recovery in governments and schools, it seems that Columbia’s housing industry. the ultimate objective of our current City Last fall, Columbia’s City Council Council is to quell any form of growth or adopted a more stringent building code development. that is more in line with the current For those of you who care to pay International Building Code. As we attention, keep an eye out for more of discovered in the contentious debate these impact fees to pop up on a City
Council agenda near you. We’re just now starting to hear rumblings of a $4 to $5 per-square-foot “transportation equity fee,” promoted by council member Ian Thomas. We haven’t heard the last of council member Karl Skala’s “trip charges” that assess increased fees based on the number of tenants or customers a given business or housing development serves. We can also expect to see expanded codes dealing with radon gas. I spent eight years as a commissioner for the Columbia Housing Authority. During my tenure, we spent many hours discussing the issue of affordable housing in our community. Few can argue that home ownership is the singular circumstance that can break the cycle of poverty for a family. Yet for thousands of local residents, the dream of home ownership fades every time the city of Columbia increases a building or permit fee. The average home on the market in Columbia today requires an annual household income of more than $50,000. The dream is slipping away for the working poor in our community. It doesn’t seem fair that the person who takes care of our dry cleaning or the chef who cooks our meal in a local restaurant can’t own a home here. The City Council has inadvertently sentenced these important citizens to a stagnant position in the economic rat race. The dogged desire of some community members to quell growth here has inadvertently impacted the lives of thousands of Columbians. Rather than embrace growth and the economic benefits that come with it, city leaders have chosen to embrace a status quo mentality. Unfortunately, the status quo cannot save us. A community either grows or dies; there is no middle ground in this arena. Let us pray that our city fathers figure this out before it’s too late. SPRING 2014
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Inside Columbia’s CEO
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CLOSING QUOTES
What Columbia’s Business People And Community Leaders Are Saying “If you have the word ‘developer’ in front of your name, they’re not going to believe a word you say.” — Mike Huggans on the public’s perception of developers, at the CEO Roundtable
“There’s nothing more powerful than a strong balance sheet.” — MFA CEO Bill Streeter
“Because we are in sales, we have narcissistic qualities that don’t play well to the press. They would eat us alive because we would say what we really think.” — Susan Horak at the CEO Roundtable on why Realtors aren’t great City Council candidates
“The highlight of my first season of college football was getting credited for three tackles on kickoffs in one game, since I jumped on top of the pile and mine was the only number the press box could read. Not bad for the smallest player in the conference.” — Missouri Economic Development Director Mike Downing on grabbing opportunities where you find them
“You’re going to see amazing things coming from the Stephens campus thanks, in part, to transformational gifts such as this one.” — Stephens College President Dianne Lynch when announcing the college’s receipt of a $15 million donation, the largest gift in the school’s history 66
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Inside Columbia’s CEO
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SPRING 2014
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