Inside Columbia's CEO Winter 2014 by Inside Columbia's CEO

House Proud

Local Businesses Come Together For The Ronald McDonald House Page 16

Blueprint For Success

Commercial Builders And Architects Meet At The CEO Roundtable Page 37

Columbia by Design Form & Function Merge In Amazing Ways — Page 46 —

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www.ColumbiaCEO.com

como comeback

Columbia’s Real Estate Market Rebounds Page 52

CONTENTS

Inside Columbia’s CEO • www.ColumbiaCEO.com • Volume 5, Issue 2

8 Opening Bell: The Buzz On CoMo Biz

CEO Roundtable: Commercial Construction & Design Pros

Regional Roundup

Up & Coming: The Ladder Report

Columbia’s New Ronald McDonald House Opens Its Doors

Columbia By Design: A Rich Architectural Heritage Bolsters A Vision For The Future

Landmark Bank Unveils Video Teller

52 CoMo Comeback: Columbia’s Real Estate Market Rebounds 71

CEO At Play: Three Questions

Business Unusual: Peggy Jean’s Pies

The Sporting Life: Ski Trip Checklist

Plan Now For Next Year’s Business Needs

Networking

Stephens College Experiences A Turnaround

Publisher’s Note

Closing Quotes

on the cover: PWArchitects Inc. and Walker Parking Consultants designed the 10-story Walnut Street parking garage. The brick, public-use structure was built in 2011 and is accented with glass panels. There are 660 parking spaces throughout the structure and 13,000 square feet of retail space that occupies the ground floor. 4

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SPECIAL ADVERTISING SECTIONS 30 Wealth Management Profiles 60 Commercial Construction & Design

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 Contributing Writers Ren Bishop, Kristen Herhold, Janese Silvey

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

Creative Director Carolyn Preul cpreul@insidecolumbia.net 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

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. I

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Jamill Teter jteter@insidecolumbia.net Marketing Assistant Jessica Card jessica@insidecolumbia.net

Please Recycle This Magazine.

Joe Schmitter joe@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

No Glass Ceiling Here Another Missouri Wine Scores A Designer Nod From Riedel by kathy casteel photo courtesy of missouri wine & grape board

ove over, Norton … you’re not the only wine with its very own glass in the Show-Me State anymore. Missouri wine lovers will want to make room on their shelves for a new wineglass from Riedel next year, designed for Vignoles, Missouri’s most versatile wine. Georg Riedel, CEO of Riedel Glas Austria, flew to Missouri in early December to lead an expert panel in designing a varietal-specific glass for Vignoles wine. The Dec. 6 tasting at Mount Pleasant Estates in Augusta enlisted the skill of 20 elite members of the wine industry — Riedel, experienced sommeliers, Missouri winemakers and

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industry professionals. The panel’s selection came from an array of 15 glasses of different shapes and sizes. The Augusta workshop brought Georg Riedel back to Missouri after he conducted a similar tasting in 2009 to choose a glass specific to Norton, Missouri’s state grape. The 2013 tasting panel went through several elimination rounds of semisweet to sweet-style Vignoles to determine which wineglass best complements the wine. Participating wineries included Les Bourgeois Vineyards, Stone Hill, Adam Puchta, St. James, Chaumette, Augusta, Noboleis, Mount Pleasant Estate, Yellow Farmhouse and Chandler Hill.

Vignoles is the second-most widely grown grape in Missouri. Winemakers can produce a variety of wines from Vignoles grapes, ranging from lateharvest dessert wines to a dry style. The most common styles for this popular white wine are sweet and semisweet. Riedel, headquartered in Kufstein, Austria, is the world’s leading manufacturer of crystal glassware. Georg Riedel is the 10th-generation leader of the family business established in 1756 and is a pioneer in the design of varietal-specific stemware. The tasting was hosted by the Missouri Wine & Grape Board, which will unveil the Vignoles design and production plans for the wineglass at a later date.

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Inside Columbiaâ&#x20AC;&#x2122;s CEO

OPENING BELL

the buzz on como biz

Tigers Lend A Paw

photo by alexis mitchell

The Heart of Missouri United Way and Mizzou Athletics have teamed up to create a new program called Tigers Care. The program is designed to inspire student-athletes to spend time volunteering for community causes. “We are very excited and proud to see the leadership of our student-athletes within the Tigers Care program,” says University of Missouri Athletic Director Mike Alden. “We’re looking forward to great things, and the win-win situation we’ll see as our young men and women further their involvement with the community. The program, which launched on Nov. 11, gives student-athletes access to a wide variety of participating agencies.

➔ Kudos To Kliethermes Columbia’s own Kliethermes Homes & Remodeling landed on Professional Remodeler magazine’s list of America’s Top Remodelers 2013. This year’s list includes 231 highly respected firms from across the country. The magazine polled the remodeling businesses on the list and found a well of optimism in the industry. The survey showed 84 percent of the companies on the list expect revenue to show an increase from 2012 to 2013.

a warm welcome home

eterans United Home Loans is living up to its name. The company recently was recognized as a 2014 Military Friendly Employer by the publisher of G.I. Jobs and Military Spouse magazines. To qualify for this honor, Veterans United had to meet benchmark scores across key programs and policies, including the strength of the company’s military recruiting efforts, the percentage of new hires with prior military service, retention programs and company policies on National Guard and Reserve service. According the Sean Collins, vice president of Victory Media, “Veterans United Home Loans is a company that is actually moving the needle and hiring from the military community. Not only is it hiring veterans, but it is consistently finding new and meaningful ways to show its veteran employees how much they are valued.”

Share your business news with Inside Columbia’s CEO. Email the editor at sandy@insidecolumbia.net. 10

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OPENING BELL

regional roundup

Synergy Unveiled At Central Methodist University

omecoming at Central Methodist University was more than the normal parade, lunch and football game. It also marked the unveiling of the first sculpture outside of The Ashby-Hodge Gallery of American Art in Classic Hall. The bronze piece named Synergy was given by the Ashby-Hodge Gallery Board in gratitude for the longevity and depth of support of the gallery by founders, the Tom Ashby family and the Anna Mae Hodge family, and by former curators Thomas Yancey and Joe Geist. The sculpture is the work of Columbia artist Larry Young, whose creations have won international acclaim. Young has placed more than 50 monumental outdoor sculptures during his 25-year career, usually created in bronze, steel or marble. Young’s notes about Synergy invited people to “move slowly around it, watching as the dynamic forms open and close to create visual energy. Creating movement in an inanimate, three-dimensional object is one of my primary objectives.” In his opening remarks, CMU President Roger Drake pointed out that the location of the sculpture at the south edge of the Fayette campus reflects the joining of town and university in a symbiotic relationship, leading the two entities to be greater together than either could be apart.

St. Mary’s earns top performer distinction

Anna Mae Hodge (left), co-founder of the AshbyHodge Gallery, stands with CMU professor emeritus Tom Yancey, the first curator of the gallery, shortly after the unveiling of Larry Young’s sculpture, Synergy.

t. Mary’s Health Center in Jefferson City has been named a 2012 Top Performer on Key Quality Measures. The Joint Commission recognized the hospital for achieving excellence in performance on its accountability measures for heart attack, heart failure, pneumonia and surgical care. This is the third year in a row St. Mary’s has earned the Top Performer distinction in all four key quality areas. “Safe care for our patients is the most important thing we do here at St. Mary’s,” says Brent VanConia, president of the SSM Mid-Missouri Region. “We are committed to exceptional care and are honored to be added to this distinguished top-quality performers list by The Joint Commission.” To be recognized as a top performer on key quality measures, an organization must meet two 95 percent thresholds. First, it must achieve a composite performance of 95 percent or above after the results of all the accountability measures for which it reports data to The Joint Commission are factored into a single score. Second, the organization must meet or exceed a 95 percent performance benchmark for every accountability measure for which it reports data, excluding any measures with less than 30 eligible cases or patients.

boone county receives $210,000 For sewer Improvements The Missouri Department of Economic Development recently approved $210,000 in Community Development Block Grant funds to assist Boone County Regional Sewer District and the Manchester Heights subdivision with wastewater collection improvements. The Manchester Heights subdivision currently provides collection and treatment for 27 families in the subdivision; however, the lagoon system does not meet effluent limits and the collection lines are not

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in compliance with state standards. The community development funds will be used to replace the collection line, add one property to the system and construct a gravity sewer line to the existing Boone County Regional Sewer District line. The CDBG program, administered by the Missouri Department of Economic Development, provides grants and loans to cities with less than 50,000 residents, and counties with less than 200,000, to assist in a variety of public works and economic development projects.

OPENING BELL

up & coming

The Ladder Report Look Who’s Moving Up In Columbia

➔ Texas A&M University President R. BOWEN LOFTIN has been appointed chancellor of the University of Missouri’s Columbia campus. Loftin succeeds Brady Deaton, who retired Nov. 15. The native Texan earned a bachelor’s degree in physics from Texas A&M in 1970; he also holds master’s and doctorate degrees in physics from Rice University. A professor of industrial and systems engineering, Loftin became president of Texas A&M in 2010. He will begin serving as the 22nd chancellor of the Columbia campus on Feb. 1, 2014.

Lindsey Boudinot, academic adviser and recruiter for Columbia College’s graduate programs, has been named to the Columbia Chamber of Commerce’s Leadership Columbia. The program is designed to “identify, cultivate and motivate future community leaders.” Boudinot, who has been with Columbia College since 2010, is responsible for advising graduate students enrolled in the college’s master’s degrees programs in business, criminal justice and military studies. Boudinot also represents the college in the Columbia business community, cultivating relationships within organizations such as Women’s Network, Business Leaders Forum, EPIC and the Columbia Chamber of Commerce.

Karin Bell has been promoted to Small Business Administration manager at The Bank of Missouri. Bell has been 14

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working with the bank’s SBA Loan program since she joined the organization in 2009. She is originally from Rhode Island and moved to Columbia in 1992. She holds a Certificate of Computer Information Management from Bryant College in Rhode Island and a degree in business administration from Columbia College. She also has completed the diploma program through the National Association of Guaranteed Government Lenders. Karin is active in the community, serving as treasurer of the Downtown Rotary Club of Columbia; she is a member of the Mid-Missouri SCORE Chapter and is a co-founder and board member of the Missouri Revolutions girls softball organization. The Bank of Missouri also announced the promotion of Mary Ropp to senior vice president, director of development. Ropp has served as business development officer for the Columbia

market since 2009. In her new role, she will work closely with the business development officers throughout The Bank of Missouri organization, offering fresh ideas, guidance and consistency.

Boone County National Bank announced that Jody Munson has become an Accredited ACH Professional. Munson provides administrative support for the operations division, chief financial officer and vice president of facilities management at BCNB. Obtaining the AAP certification allows her to assist corporate customers with their automated clearing house transactions and other cash management questions. An ACH is an electronic transaction between businesses and consumers, such as automatic debit payments, direct deposit payroll checks, debit or ATM card purchases and electronic checks.

Robert Bynum, D.O., is author of a new book, Streaming Lifestyle: Healthier Living by Choice, now available at Amazon.com. Bynum grew up in Columbia and graduated from Hickman High School. He has been in family practice in the Columbia area for more than 30 years. Founder of ByPro Nutrition, Bynum has formulated the nutritional supplements Dodecin™ to reduce inflammation, and Triargin™ to maximize body chemistry and promote optimum cellular function. Bynum also created the educational networking company, Streaming Lifestyle LLC, which is dedicated to helping people find personalized options for developing healthier habits, making healthy choices, and living a happier, healthier life.

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Inside Columbiaâ&#x20AC;&#x2122;s CEO

fresh starts

House Proud

Columbia’s Ronald McDonald House Moves To Its New Facility by sandy selby photos by l.g. patterson

n Oct. 29, workers were everywhere — touching up paint, vacuuming floors, making beds and seeing to all the details that would make the soon-toarrive guests feel welcome. By the next day, everything would be in place to make this house feel like home. The Ronald McDonald House provides no-cost or low-cost living accommodations for out-of-town families whose children are hospitalized or undergoing treatment that requires close proximity to a hospital. On Oct. 30, the facility relocated to 3501 Lansing Blvd. from its previous building near University Hospital. The new, larger

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house is conveniently situated near the University of Missouri’s Women’s & Children’s Hospital on one side, and a quiet residential neighborhood and park on the other. Terri Gray, executive director of the Ronald McDonald House Charities of Mid-Missouri, was proud to elaborate on the 19,000-square-foot facility’s many features, including an elevator that makes the house ADA-accessible, private bathrooms for each guest family, two large laundry rooms and plenty of quiet nooks and comfortable lounges where families can go for peaceful reflection or some TV and game time.

The new house features 18 guest rooms, more than double the capacity of the previous location. In just its first few weeks of operation, the facility housed as many as 15 families at one time. According to Gray, the goal for any Ronald McDonald House, and particularly this new building, is to “create an environment that is homey, comfortable and relaxing” for families who are dealing with the worry and stress of caring for a sick child. That homey environment was ready to welcome the families it serves, thanks to dozens of businesses that donated goods and services for the facility. v

Ronald McDonald House Charities of Mid-Missouri ‘Building A House To Call Home’ Campaign Contractor

Little Dixie Construction Architect

Simon Associates Interior Designer

Interior Design Associates Campaign Co-Chairs

Mary Ebert, Community Leader Joe Moseley, Shelter Insurance Cos. Steve Ruprecht, McDonald’s Restaurants Businesses that made in-kind donations to construct and/or furnish the house: • American • Lighting Systems Standard • In Black Construction • Armstrong Teasdale • InSinkErator • Baumgartner’s • James Hardy • Benjamin Moore • KMIZ-TV 17 Paint • La-Z-Boy • Boone County • Lumber Liquidators Millwork • Marathon Building • Boone County Environments National Bank • McDonald’s • Bradley Corp. Owner/Operators • Broan Nutone • MFA Oil Co. • CenturyLink • Molly Fund • CertainTeed • Negwer Drywall Insulation • Drew Parker • CertainTeed • Polsinelli P.C. Shingles • Quaker Windows • Circle W Trucking • Rew Materials • Coca-Cola • Schindler Pest • Commerce Bank Control • Culligan Water • Security Lighting • Cumulus • Service Master Broadcasting • Shelter Insurance Cos. • DuPont Home Wrap • Shurtech Brands • DuPont Corian • Socket • E.J. Welch • Tempur-Pedic Beds • Executive Lawncare • TLC Moving • Focal Point • Underground Lighting Storage • Wilsonart LLC • Glazer’s of Columbia • Wingate Pest Control • Guardian Insulation • Wooster Brushes • Hubbell/Security winter 2014

Inside Columbia’s CEO

innovations

Video Teller

Landmark Bank Unveils Missouri’s First Video Teller by morgan mccarty photo by morgan mccarty

andmark Bank has entered revolutionary territory in Columbia. The bank debuted its Video Teller at its Stadium Boulevard location this fall, making banking more accessible to customers with video interface technology. A group of invited guests, customers and bank representatives — including Jennifer and John Landrum, descendants

of Landmark Bank’s founder Marquis Lafayette Landrum — listened Oct. 4 as Andrew Beverley, Landmark Bank senior banking executive–Missouri, lauded the benefits of this new technology. “We’re very proud to be on the front end of this,” Beverley said. “What this [technology] allows customers to do is interact with this machine, with a live teller on the other end. You can do

Marty Wohlgemuth accepts a cash and coin withdrawal during the demo. 18

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almost everything you can do with a traditional teller.” The Video Teller combines ATMlike technology with personal service. The Video Teller looks and works similar to an ATM, except a screen shows a teller based at the bank’s central location. Customers interact with the human teller via webcam and microphone. Transactions may be completed in the same way as transactions with an in-person teller. The Video Teller allows customers to cash checks, make deposits and payments, withdraw cash and coins, and transfer funds — with the remote teller, controlling the machine from the remote location. Customers also have the option of interacting with the machine as they would an ATM; to work with the video teller, they simply press a button and voice their needs. The debut video teller, Payge Kramer, helped demonstrate the interface for guests at the unveiling by completing a live deposit, withdrawal, ID scan and account balance check with Marty Wohlgemuth, operations manager at Landmark Bank. “Where our ATM is really a selfservice channel — the customer can do what they want — the video teller is a full-service channel with all of the customer service that customers have come to expect from a traditional teller,” Wohlgemuth said. “The thing that makes this truly powerful is Payge and the rest of our tellers. They are the link from the bank to our customers.” Landmark plans to install additional units at other bank branches. Customers can enjoy the convenience of longer hours, faster and more efficient service and sameday deposit credits. No ATM card is necessary; customers need only show the teller their driver’s license. Landmark Bank’s Video Teller service uses APTRA Interactive Teller technology from NCR. This is the first of NCR’s machines to be installed in Missouri.

business unusual

Pie Time

Rebecca Miller and Jeanne Wagster

Columbians Hunger For The Return Of Peggy Jean’s Pies by ren bishop photo by l.g. patterson

nce upon a pastry, Peggy Jean’s Pies was the go-to dessert destination in Columbia. From peanut butter delicacies to savory fruit creations, the restaurant and its homemade pies received national recognition in a variety of media outlets, including Southern Living, Midwest Living and Victoria magazines. Peggy Jean’s was a CoMo culinary institution that began in 1994, built from the family recipes of cofounders Jeanne Wagster and Peggy Day. In 2004, after almost a decade of success here in Columbia, the owners decided to close their doors on Chapel Hill Road, stop the business and move forward in their lives. The dust settled, and the families of the famous pie makers enjoyed a few pie-frenzy-free Thanksgivings before an idea took hold. Jeanne wanted to reopen the shop, an idea she often shared with her daughter, Rebecca Miller. Then, everything started falling into place a few months ago. “I don’t really believe in coincidences, and things just kept happening,” Miller says. “We said we would be open to the idea if we found the right space at the right price, and we did. Then, it was just a matter of funding — so I made the Kickstarter.” Miller completed the time-consuming process of launching a Kickstarter campaign on Oct. 5, setting a goal of $10,000. The motherdaughter duo hoped that Peggy Jean’s Pies’ previous success and fans in Columbia would get them the biggest piece of that funding pie. They offered contests, hosted fundraisers and recorded the entire process in a blog in the hope of raising the required $10,000. It was all or nothing — they had to raise 100 percent of their goal, or they wouldn’t get a cent. They made it with change to spare, raising a total of $10,246. The duo recently opened Peggy Jean’s Pies at 3601 Buttonwood Drive, just in time for the holidays.

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“We think people who remember Peggy Jean’s will be elated to find us again,” Miller says. “New customers will be absolutely excited to be a part of our journey. We plan to use the blog, Facebook, Twitter, word-of-mouth, advertising and anything else we can think of without being creepy or annoying to get the word out that we’re back!” Although the new shop features a modern interior and a simplified menu, the heart of Peggy Jean’s Pies and co-founder Peggy Day’s dream for a pie shop remains. Day died in 2005. “Peggy is honored in the very core concept of our return to the marketplace,” Miller says. “She would be so proud of us. She taught both of us to be strong and independent women who follow our dreams, and this adventure would thrill her.” Visit www.InsideColumbia.net to see pictures from a special fundraising Peggy Jean’s Pies class hosted by Inside Columbia’s Culinary Adventures Center.

The Pie Lovers Have Spoken Rebecca Miller recorded her and her mother’s journey to resurrect Peggy Jean’s Pies on an informal blog, where readers were asked a very serious question: Which pies should be featured on the pie shop’s reopening day? Voters were asked to rank their first, second and third choices from apple, cherry, chocolate bourbon pecan, pumpkin, Key lime, pecan, peach praline, lemon, chocolate and coconut. The overall favorite was chocolate bourbon pecan.

business planner

Time For A Checkup Before 2013 fades into the ledger books, business owners have a lot of work to do. Now is the time to take stock of the company’s finances, make adjustments and set goals for next year. This checklist will help keep your business plan on track for 2014. by kathy casteel

Get your books in order.

Records management is a key component of running a successful business. Whether you employ an accountant, use do-it-yourself software or stash everything in a shoebox, an organized record is the crucial first step in business planning. Don’t wait until time to file a tax return to complete this basic step.

Review your budget.

With an orderly record of receipts and deposits in hand, take time to review the fiscal history of the year. Budget software can help create a balance sheet, income statement and cash-flow statement. Chart revenue and expenses in a spreadsheet to track where the money is going. Look for anomalies or patterns of resource drain. Where can you cut costs? Consider switching vendors or service suppliers, or renegotiating with current contractors. Weigh the pros and cons of raising your prices. Although any price increase runs the risk of losing customers to cheaper competition, a change in pricing structure can offset higher production costs and raise your brand profile with the perception of premium quality; a small price increase is often cheaper than expending effort to develop new customers at the old price. 22

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Check your tax situation.

Meet with a financial planner, tax adviser or accountant to check on any last-minute investment moves or tax changes. Self-employed professionals and small-business owners may want to re-evaluate their retirement plan structure. Compare the tax savings in income deferment between a Simplified Employee Pension IRA and a 401K. For some, a defined benefit pension plan may generate more tax savings. Independent contractors, consultants and those who receive compensation for serving on corporate boards should look at establishing a pension plan that allows contributions to offset the additional income. Deadlines for opening retirement accounts vary, though, so seek an informed professional’s advice. The end of the year may be the best time to go shopping so take a look at equipment needs. Federal tax savings are available for businesses that acquire new property before the end of the year. The American Taxpayer Relief Act of 2012 extends through 2013 an increase in the allowable deduction for new and used capital equipment purchases (to $500,000) and raises the bonus depreciation limit on new equipment to $50,000. The act also increases the 2013 limit on capital purchases to $2 million. Find out more about this business tax benefit before it expires at www.Section179.org. If your business has capital assets to dispose of, check with your financial adviser to determine if your tax situation warrants claiming that income for 2013 or 2014. Timing is everything with the buying and selling of assets.

Examine your insurance coverage.

Set your goals for next year.

Sit down with your insurance professional and review current policy costs and coverage limits. Are your assets valued properly? Do you have adequate liability coverage? Identify changes in life, business and finance that may necessitate adjustments in your policies. Although deferred in enactment, the Affordable Care Act will change the way businesses deal with health insurance. Employer mandates will carry steep tax penalties for businesses with insufficient or no health insurance for employees. The law is complex and not easily understood. Businesses should review current employment levels and make informed decisions to plan for insurance changes in the future. Learn how the new law impacts business by visiting the website of the U.S. Small Business Administration, www.sba.gov/healthcare. Additional information on the Small Business Health Options Program (SHOP) is available at www.healthcare. gov or through a human resources professional certified in SHOP.

Armed with a renewed knowledge of what’s working and not working in your business, get ready for 2014. Define your goals, prepare an action plan and start implementing that plan. You’ll be able to hit the ground running when the New Year rolls around.

school report

Head Of The Class

President Dianne Lynch Guides Stephens College To A New Era Of Innovation And Growth by janese silvey, special to inside columbia’s ceo photos courtesy of STEPHENS COLLEGE

tephens College President Dianne Lynch doesn’t like to brag that the college has operated in the black since she arrived. Budgets should be balanced, she’ll tell you. But as most longtime Columbians know, that hasn’t always been the case for the second-oldest women’s college in the country. And longtime employees know that a balanced budget is a big deal. “I think operating with a consistently balanced budget — really for the first time since I came to Stephens in 1991 —

puts us on secure footing in many ways,” English professor Tina Parke-Sutherland says. “It’s the starting point for sustainable growth.” Parke-Sutherland remembers all too well a time when the college was in serious trouble, living on borrowed dollars under a shroud of controversy. It was just 15 years ago that a fire destroyed Gordon Manor, a historic mansion located in Stephens Park, then owned by the college. The November 1998 fire was ruled arson, a crime that was never solved.

Dianne Lynch has been president of Stephens College since 2009. The blaze ushered in a bleak era for the college. Although the mansion, listed in the National Register of Historic Places since 1983, was the oldest brick structure in Boone County, the college winter 2014

Inside Columbia’s CEO

school report had lacked the funds to maintain it and it had long been in poor condition. Damaged beyond repair, the burned-out remnant of Gordon Manor was razed, and the property was sold to the city of Columbia for development as a park. Along with the building, Stephens’ reputation was crumbling. A look through the archives of the student publication Stephens Life shows that over the next five years embattled administrators faced a faculty vote of no confidence, community backlash over the sale of college properties and protests from students who felt they had no say in their own education. Some longtime Stephens staffers remember talk that the college would have to close its doors. Lynch’s predecessor, Wendy Libby, stopped the bleeding when she arrived on campus in 2003. “One of the first steps to turning around any organization is to rebuild trust, and that’s what she did,” Lynch says. “She convinced stakeholders — both locally and nationally — that Stephens was rising from the ashes and would have a future.” Lynch is building on Libby’s legacy as she puts her own stamp on Stephens’ future. Her first step was a return to the past. Since her appointment to the college presidency in 2009, Lynch has studied the tenure of former Stephens President James Madison Wood, who steered the college through significant growth from 1912 through the 1940s. Wood based his decisions on what was best for students, and that model shaped Stephens College. Lynch adopted the student-centered philosophy and expanded it beyond Wood’s credo to base campus decisions on what’s best for the student body, Parke-Sutherland says. Lynch gets to know each student as an individual. “Few people have the opportunity to say they know their college president — not just know their name, but actually know them personally,” senior Angel Mendez says. “Over the past three years, I have had the opportunity to get to know and love President Lynch. Dianne 26

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The 88-year-old President’s Home at Stephens College is open again after more than a decade. has this ability to make all of the huge issues and decisions in your life seem so simple with one change of thought. As I near college graduation, those issues and decisions come far too often, and Dianne has eased those fears of what lies ahead just through simple conversation and understanding.” Offering unprecedented availability to students, Lynch hosts campuswide student forums to hear concerns and makes time when a student just wants to talk. She gives serious consideration to students’ ideas, often providing resources to help them implement those ideas. When a transfer student expressed interest in celebrating Hispanic Heritage Month last fall, Lynch helped her organize a Latin Night. When a freshman mentioned she’d like to meet more classmates, Lynch opened her home to a freshman class dinner. When the soccer team won its first game, she met the team early the next morning at Stephens Lake Park to deliver flowers to every player and the coaches. In September, when students took to Facebook to

Renovated classrooms and laboratories reflect the renewed dynamism at Stephens College.

school report

Vespers, a tradition reborn at Stephens College, is a program of “intentional silence.” Students spend quiet time in Firestone Baars Chapel, where they are free to contemplate and reflect uninterrupted. describe rising stress levels, Lynch had cookies and hot tea delivered to every residence hall. “Her core principle is ‘students first’ and that is evidenced by her open-door policy and the time she takes to go to events and interact with students in ways rarely seen at a presidential level,” says Susan Bartel, dean of the School of Organizational Leadership and Strategic Communication. “She is truly committed to our students and they benefit from her support and trust, making for an amazing experience at Stephens.” Lynch wants to make sure those experiences extend beyond campus boundaries. Several years ago, she started a fund called Magic Moments, soliciting donations to help students seize educational opportunities. That funding has helped pay for expenses such as plane tickets, allowing students to accept internships overseas or attend out-of-state conferences, and for equipment students need to complete projects. As she enters her fifth year at the helm, Lynch’s imprint on Stephens covers more than balanced budgets and happy students. Soon after her arrival in 2009, she launched successful 28

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fundraising campaigns that have allowed the college to renovate classrooms and laboratories, and restore the President’s Home. Built in 1926, the historic property is open and occupied for the first time in more than a decade. Early in her tenure, Lynch eliminated a layer of administration; faculty now report directly to deans. Her management style has given departments the autonomy to begin new programs that reflect job market trends. In 2013, Stephens launched a new Event and Convention Management program to prepare students for a career the U.S. Bureau of Labor Statistics lists as one of the hottest jobs leading into 2020. The degree is one of several three-year programs that allow students to finish college earlier, saving time and money. “She has encouraged and supported innovation in teaching and learning, and challenged us all to think in new ways to deliver the highest-quality learning experience in the classroom,” Bartel says. “She is not reluctant to change things that are not working well and is willing to listen to different perspectives.” On Lynch’s watch, the college has expanded its pet-friendly policies, now offering scholarships to students

who foster animals through Second Chance, an area no-kill shelter. She also reinstated Vespers, a tradition from the 1920s that has been updated to allow today’s students to spend an hour of quiet time without their cellphones, gadgets and other distractions. Both actions garnered national attention. The college has seen a boost in national rankings, as well. This year, Stephens was the only private college in mid-Missouri included in The Princeton Review’s Best 378 Colleges guide. Lynch is continuing her predecessor’s goal to “right-size” the campus. Unlike the protests over previous campus building sales, though, the selling of Hillcrest Hall and the old auditorium/ natatorium complex met with only

Offering unprecedented availability to students, Lynch hosts campuswide student forums to hear concerns and makes time when a student just wants to talk. minimal opposition in 2013. Lynch and the college’s trustees passed up offers from high-rise developers, opting instead to sell the buildings to a foundation that promised to maintain the integrity of the neighborhood. The property’s new owner, Hagan Scholarship Foundation, tore down the buildings last summer to make way for construction of Hagan Scholarship Academy on the site. The academy will serve high-achieving high school juniors and seniors in a residential setting. “Dianne has her vision for a better Stephens,” Bartel says. “Her decisions have led to a strong financial foundation, which opens opportunities for the future.” It’s a future that, just 15 years ago, many weren’t sure was possible. Janese Silvey is a story specialist/strategist in the marketing and communications department at Stephens College.

winter 2014

Inside Columbia’s CEO

Special Advertising Section

The Local Financial Services Professionals With The Know-How You Need

Inside Columbiaâ&#x20AC;&#x2122;s CEO

Wealth Manager Portfolio

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The Blankenship Wealth Management Group of Wells Fargo Advisors, LLC Richard A. Blankenship, First Vice President – Branch Manager 2100 Forum Blvd, Columbia, MO 65203 • 573-445-7088 www.home.wellsfargoadvisors.com/richard.blankenship • richard.blankenship@wfadvisors.com

he Columbia, Mo., office of Wells Fargo Advisors is pleased to announce that financial advisors Richard Blankenship and Alex Perry have joined together to form The Blankenship Wealth Management Group of Wells Fargo Advisors, LLC. The Group is a dedicated team of investment professionals helping investors achieve their financial goals. Blankenship and Perry bring more than 20 years of combined experience in the industry to the group. Blankenship is a graduate of the University of Missouri and holds a Master of Business Administration degree from Washington University. Perry is a graduate of the University of Georgia with a business degree, and holds a law degree from the University of Missouri. Through this combination of experience, education and community presence, Blankenship and Perry are able to connect with their clients. “We feel our competitive advantage is truly being relevant in our clients’ lives and future plans,” Blankenship says. Through Wells Fargo Advisors, The Blankenship Wealth Management Group of Wells Fargo Advisors, LLC, offers a

complete spectrum of financial products and services to individuals and businesses. With more than $175 million of assets under management, Blankenship and Perry provide a high level of professionalism and service. “Trust enables open dialogue with clients and only then can goals and objectives be defined, measured and pursued,” Blankenship says. With a team approach, clients may also benefit from more oneon-one contact with the financial advisors and client associates. Pat Hancock & Ashley Lowery have 22 years of industry experience and Barb Harris is a retiree after 35 years with the UM system. By specializing in customized wealth management for select affluent investors and accredited institutions, the group is able to demonstrate to clients a clear understanding of their personal and financial goals and expectations. According to Blankenship, “Celebrating with clients after we achieve their tangible and intangible aspirations — personally and financially — is the most rewarding aspect of what we accomplish.”

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UMB Bank Tony Mayfield President, Central Missouri Region 1516 Chapel Hill Road Columbia, MO 65203 573-446-3404 Tony.Mayfield@umb.com

Shelly Addington Vice President, Private Banking 3828 S. Fremont Ave. Springfield, MO 65804 417-891-2105 Shelly.Addington@umb.com

Tracy Barnas Senior Vice President, Wealth Advisor 3828 S. Fremont Ave. Springfield, MO 65804 417-891-2103 Tracy.Barnas@umb.com

MB Bank has a strong commercial and consumer banking presence in Columbia, and as president of UMB Bank’s Central Missouri Region, Tony Mayfield often hears from Columbians wondering whether UMB Bank offers wealth planning services, too. “The answer is, ‘Yes, we certainly do,’” he says. “UMB Private Wealth Management is a full-service advisory, trust and custodial organization. We are able to combine the strength, resources and expertise of a multi-billion dollar asset management firm with the personalized service of a private bank.” The seasoned team at UMB offers wealth planning services such as financial reviews, accumulation strategies, wealth transfer strategies, asset preservation, estate planning, retirement planning and advanced tax strategies.

UMB taps the expertise of team members in Columbia and across the region to provide clients with the people and tools needed to manage their financial lives completely. These financial experts provide the knowledge and resources to determine financial planning strategies, with the ability to customize and tailor solutions to achieve the unique financial goals of clients in any stage of life. “We find out what their needs and priorities are, and we pull a team around the client,” says Tracy Barnas, senior vice president and wealth advisor. “Then we go to work to help them address what’s keeping them up at night and to help them achieve the goals they have for themselves, their families and their communities.” At UMB Bank, Columbians have access to a 100-yearold financial partner with Midwestern attitudes about relationship-banking.

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The Commerce Trust Company Ryan Lovill, CFP®, Commerce Trust Company Market Executive, Central Missouri Region 901 E Broadway Columbia, MO 65201 573-886-5275 www.commercebank.com Ryan.Lovill@commercebank.com

or Ryan Lovill, The Commerce Trust Company’s market executive, success means providing clients with comprehensive and objective wealth management advice to guide them toward achieving their goals. And when he says “comprehensive and objective,” that’s just what he means. “As a member of the Financial Planning Association, I regularly attend educational sessions that help stay abreast of changes occurring with tax law, legislation and the economy, as well as best practices in financial planning,” says Lovill, a Certified Financial Planner™. “At Commerce, we also have the opportunity to meet with analysts, economists and strategists from research firms who provide insight to individual corporations and organizations on broad overall investment trends. These meetings provide us with important insight to the investment world.” Meanwhile, keeping up with periodicals helps Lovill remain current with trends and regulations, and their impacts on Commerce clients.

Since 1906, The Commerce Trust Company, a division of Commerce Bank, has been a leading source of tailored asset management, creative private banking and comprehensive trust services for individuals, families, corporate executives and business owners. In addition, Commerce Trust serves a variety of institutional clients with customized investment programs, as well as sole-source solutions for all their financial needs. Commerce Trust clients can feel good knowing that the 60 professionals comprising their in-house investment team average more than 24 years of experience, while Commerce’s trust administrative staff averages more than 23 years. Commerce Trust clients can also feel good knowing Commerce invests in its communities. “We are only as strong as the communities in which we do business,” Lovill says, “and we give millions to community and charitable programs. In everything we do, we strive to be a good corporate citizen.”

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Central Trust & Investment Company David Stepanek, Executive Vice President, and team

720 E. Broadway, Columbia MO 65203 • 573-874-8490 www.centrustco.com • dave_stepanek@centrustco.com

entral Trust & Investment Company is the wealth management division of Boone County National Bank. The firm has three primary services: investment management, trust and fiduciary services, and retirement plan services. “We currently assist our clients with approximately $4.5 billion in total client assets, of which $1.5 billion is right here in Columbia,” says Executive Vice President David Stepanek. “We manage portfolios for successful individuals, institutions, foundations, endowments, pension plans and government entities.” One of the strengths of Central Trust is the superior experience and credentials of its team, which includes 21 portfolio managers with an average of 25 years of experience, as well as staff attorneys, CFPs, CFAs, CPAs, CTFAs, CIMAs and several other credentialed professionals. In all Central Trust does, it upholds the following values:

• A client focus. “We develop for each client a plan that meets their specific risk tolerance, income and liquidity needs, time horizons, and tax situation,” Stepanek says. • Objective advice. The firm operates on a fee basis and receives no commissions, so it can focus exclusively on building portfolios that best meets the needs and goals of clients. • Local decision-making with national expertise. All clients are assigned a team of three local experts who, together with numerous national research partners, provide clients integrated wealth management through comprehensive planning and world class investment solutions. One more reason clients put their trust in Central Trust: the firm’s financial strength. Central Trust & Investment Company, as part of Central Bancompany, was recognized by Forbes magazine as one of America’s Best Banks for the fourth year in a row in 2013.

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Callaway Investment Services Aaron Rigdon Financial Advisor 3200 W. Broadway Columbia, MO 65203 573-447-5605 aaron.rigdon@ceterais.com PrimeVest © Financial Services, Inc., is an independent registered broker-dealer, member FINRA/SIPC. Securities and insurance products offered by PrimeVest: * Not FDIC insured * May lose value * Not financial institution guaranteed * Not a deposit * Not insured by any federal government agency. Advisory services may only be offered by Investment Advisor Representatives in connection with an appropriate PrimeVest Advisory Services Agreement and disclosure brochure as provided.

aron Rigdon, a financial advisor at Callaway Investment Services, has had a longtime infatuation with numbers, financial markets and investing. “I knew I wanted to be in this role before I could drive,” he says. Rigdon earned a bachelor’s degree in finance from MU and is an Investment Advisor Representative. In working with clients, he prioritizes trust and communication. “Honest and transparent straight talk from both sides is crucial to a successful relationship,” he says. “Your advisor needs to understand your comfort level with risk and have the expertise to maximize the return within your investment criteria.” Callaway Investment Services, housed within The Callaway Bank, is a brokerage firm with a full suite of financial planning and investment options provided through Cetera Investment Services.

Rigdon’s licenses include Series 7 and 66 general securities licenses and licenses for life, long-term care, property and casualty and health insurance. Rigdon notes that keeping up-to-date with investment trends and changing regulations is a daily discipline. “I spend a great deal of time reading, attending conferences and with continuing education,” he says, adding he’s also in regular contact with Cetera Investment Services analysts and researchers. Before becoming a financial advisor, Rigdon was an account manager with about 80 accounts for a company focused on institutional investors, such as investment banks, pensions, hedge funds, etc. “While I found that role to be challenging and interesting, it was not as rewarding as guiding people though their investment planning,” he says. “Helping my clients achieve financial independence brings a much deeper sense of satisfaction.”

ceo roundtable

Building A Better Columbia Commercial Construction And Design Pros Gather At The CEO Roundtable by SANDY SELBY photos by L.G. PATTERSON

The commercial construction and design professionals who attended the recent CEO Roundtable were optimistic about their industry as they head into 2014, but concerned about the effects of increased government regulation.

hese aren’t guys who think small. The men who attended the Winter 2014 CEO Roundtable represent major commercial construction and design firms in the Columbia area, and the projects they take on are transforming the aesthetic and economic landscape of the city. The group sat down to a luncheon sponsored by The Callaway Bank and prepared by Chef Dennis Clay, executive chef of Inside Columbia’s Culinary Adventures. Gary Meyerpeter, Boone County market president for The Callaway Bank, welcomed the guests, then turned the discussion over to Inside Columbia’s CEO Publisher Fred Parry.

Parry started the conversation by asking the builders and architects to assess the current economic climate for their industry. John States, co-owner of Little Dixie Construction, described his business as active. “We’re seeing a lot of work and we have a lot of bid activity coming in,” States said. “Fortunately for Little Dixie, we have work and our guys are busy.” “Prior to 2008, probably everyone in this room would have bragged that Columbia was recession-proof,” said Brian Connell, president of Connell Architecture. But now, “I don’t think we’re bragging that we’re recessionproof. I think everyone here found a way to revisit their business model and

survive. I think if we’re talking about where we are today in relation to the last five years, it’s fantastic. I think we’ve regained our composure. People are now starting to have the courage to come out and get started. We’ve seen a really good resurgence in the amount of work and the quality of work.” Tony Grove of Grove Construction was optimistic. “We have plenty of work,” he said. “I hope it stays like this; we’ll see what this winter does. Material costs and such seem to be on the rise and we have some difficulty getting things right now, but I think that’s a sign that things are moving.” Bill Oswald told the group that his company, Simon Oswald Architecture, stayed busy throughout the economic winter 2014

Inside Columbia’s CEO

ceo roundtable downturn. “The biggest driver is the University of Missouri,” he said. “If it wasn’t for them, I think a lot of us wouldn’t be in business today.” “I have a feeling Columbia is on the cusp of really taking off with some things,” said Erik Miller, vice president of PWArchitects. “The influx of students … is driving a lot of new student housing and that’s driving a lot of service industry. I think it’s going to continue to do so. Maybe it’s a new attitude with the SEC adjustment as well, but I feel really positive.”

One sector is lagging, according to Craig Simon of Simon Associates. “One of the areas we’ve depended upon heavily in the past is the industrial sector. I still see them as extremely cautious. They learned how to maintain their business at far-reduced capacities or personnel. They’re not anxious to build back up and they’re going to do it very slowly.”

Make It Green Parry broached the subject of building regulations in Columbia, and the

Roundtable Roll Call

Randy Coil President Coil Construction

Bill Oswald Architect/Principal Simon Oswald Architecture

Bryan Connell President Connell Architecture

Craig Simon President/CEO PCE (Professional Contractors & Engineers)

Tony Grove President/Owner Grove Construction

John Simon Principal Simon Associates

Jeff Herigon President/Owner Hercon Construction

John States Co-Owner Little Dixie Construction

Wayne Huebert President Huebert Builders

Kurt Wallace Owner/Manager Wallace Architects

Erik Miller Principal/ Vice President PWArchitects

Sponsor Representative: Gary Meyerpeter Boone County Market President The Callaway Bank

Inside Columbia’s CEO

winter 2014

roundtable participants were quick to comment on what has become a sore subject for them. “We do a lot of zoning in a lot of different communities,” said Kurt Wallace of Wallace Architects. “Columbia is as difficult as it gets. And to get a property rezoned … one that almost didn’t happen was Landmark Hospital a few years ago, and in my opinion, there could be no more noncontroversial project than that. It has residents on oxygen and it employs a lot of people and yet it almost didn’t happen.” “The zoning process is just arduous,” John Simon said. “There are two aspects of regulation,” said Wayne Huebert, owner of Huebert Builders. “One is the processes and procedure of enforcing it, which is a whole conundrum of problems that we experience on the front end of projects. But the second thing — and the overriding issue — is that our communities, and it’s not just Columbia,

“Prior to 2008, probably everyone in this room would have bragged that Columbia was recession-proof.” — Brian Connell are adopting a new code. The building codes started out as a safety mechanism; they were designed to make structures safe and inhabitable by people. We are now, with the adoption of the current code we have, starting to want to enforce energy requirements and things like that. They are bringing factors in that we either dealt with voluntarily or we chose to ignore. But it is changing everything and that isn’t just coming from Columbia because the IBC (International Building Code) master document is a national and, well, international group of documents. “But we’ve never felt compelled to adopt 100 percent of the code. Is that correct?” Parry asked. “Columbia has always had a review process and this time around, I think that the people who reviewed it made

winter 2014

Inside Columbiaâ&#x20AC;&#x2122;s CEO

ceo roundtable sustainability, urban sprawl, all sorts of things that are continuing to come up at the council level. There are some segments in the city that are really antigrowth, and anti-business almost, and it makes it even more difficult for many of us who are trying to get through good, well-planned, even sustainable, stormwater efficient projects. There is a certain segment of folks who still think that’s a bad idea and to the point where we’re bad guys — contractors, builders, architects.”

“We live in a community that is a college town and like a lot of college towns, we’re a forward-thinking type of community.” — Randy Coil

At top, Bill Oswald and Randy Coil enjoy a light moment during the discussion. Bottom left, Wayne Huebert expressed concern that there aren’t enough young people training for the construction industry. Below right, Kurt Wallace (in center) believes that Columbia has burdened itself with overly restrictive zoning regulations. some recommendations and decisions,” Huebert said. “The City Council voted to not take either the majority of that into account or all of it into account.” “So the building codes that were just approved by the council went into effect Oct. 1,” Parry said. Miller said that while he understood the factors what went into the push for a stricter code, he didn’t believe the City Council and others involved understand the full impact of it. “What does it

Inside Columbia’s CEO

winter 2014

mean to the construction industry?” he asked. “What does it mean to you as a prospective client? Obviously, from a lifestyle perspective, the client is meant to benefit from this by using less energy. At the same time, the code makes buildings cost more in many instances.” “We live in a community that is a college town and like a lot of college towns, we’re a forward-thinking type of community,” said Randy Coil of Coil Construction. “They are concerned about

John Simon added that even the best, most energy-efficient systems rely on the building’s users for their operation. “I can get 5 miles to the gallon with a Prius if I drive a certain way. Without the education to the owners of the building on how to operate it, most people don’t know how to operate a building efficiently.” “People are getting greener buildings by default anyway,” Coil said. “Most of our materials that we buy today have already changed, whether it’s the insulation we use or the glass we buy or the paints that we use on the walls. People don’t realize that we’re using more and more environmentally green and friendly products all the time.”

Keep It Local Parry pointed out a number of local projects that are using architects and contractors from Kansas City, St. Louis, Springfield — and even other states. “Are you guys just too expensive? Why is that happening?” “Because on bid day, there are 20 bidders,” States said. “And the guy that misses the boat on the bid is the guy that’s doing it.” “With a lot of the development downtown, those major projects, the developer is doing his own project,”

Craig Simon said. “They’re going out and finding the lowest prices they can to get the work done and in some cases, they can’t even find the resources to get it done in town.” “Another side of that is that you get an owner who is going to come in and build a very expensive project — a $30 million-plus range — and he has to spend half a million dollars to get it in front of the City Council and then to get it to go through that whole ordeal,” States said. “He doesn’t care if he brings in his own people at that point. He’s spent a lot of money he shouldn’t be spending to get a project going vertical. He’s fighting to get five votes when it ought to be a slamdunk in any other community. At that point, they don’t care. They’re ready to get the project going and they’re going to do what’s easy for them.”

Clean It Up With all the talk about the obstacles standing in the way of construction in Columbia, it was a welcome departure when the topic of redevelopment came up. Parry brought up the recent change that exempts properties less than 1 acre in size from some of the stormwater regulations that had stifled small projects in Columbia. “With regard to redevelopment, it actually got better,” Coil said. “It was ridiculous before and now it is more proportionate than it used to be with some of the additions of parking lots and things. But I think with regard to new construction, it’s basically the same. We’re in a community that is very concerned with one specific creek here.” “I think sometimes we forget about where those ordinances came from,” Miller said. “It’s not as though they were written by these entities, but the requirement for it came from DNR [Missouri’s Department of Natural Resources] and the EPA [U.S. Environmental Protection Agency]. The changes that have been made did benefit and frankly, the people who are judging the ordinance and reviewing plans have gotten more used to it, too. I think there’s been a level of compromise that’s been positive. I do know the impact that it has

winter 2014

Inside Columbia’s CEO

ceo roundtable on the new construction, dealing with stormwater specifically when we look at any downtown development. It is an important factor that we have to consider but I think there’s been some good adjustments.” The health of Hinkson Creek is improving, according to Coil. “There have been several studies on the creek,” he said. “The last one I heard was it is now one of the cleaner streams in an urban setting anywhere in the state of Missouri.”

“So much of it is the backlog, the detailing, the shop drawings, and labor comes into effect,” Herigon said. “There seems to be a shortage of labor to produce these materials. Nobody keeps anything

Wait For It

in stock to speak of anymore. Just because there is a lot of thought about growth everywhere across the county, not just in Columbia, that doesn’t mean that somebody’s going to jump out there and start stocking a big pile of steel to ship all over the country.” The shortage doesn’t just occur with steel. Craig Simon pointed out that other building components seem to have higher demand than supply right now. “Take light fixtures, for example,” he said. “If you want

Parry turned to Jeff Herigon of Hercon Construction with a question about the cost of building materials. “What do you see happening in terms of lumber? Structure steel?” “Well, as demand goes up, prices have gone up,” Herigon said. “Lead time on materials have gone up.” Several local projects have been hung up recently as they wait for the arrival of structural steel.

Inside Columbia’s CEO

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“There’s this essence that there’s a great shortage coming ... get it while you can.” — Tony Grove

a specific light fixture, you may have to wait until [the manufacturer] gets another order from somewhere in the country to make them.” “And it used to be, too, that if someone changed their mind, a restock wasn’t a big deal,” Miller said. “You try to restock anything now, from what I understand, and you’re stuck with it.” “I seem to be getting the idea that there’s something coming,” Grove said. “There’s this essence that there’s a great shortage coming. Everybody’s got some scare tactics out there — get it while you can.”

Plan For The Future As members of the group offered their parting thoughts, the topic of workforce came up. “I read a great article a few months ago about aging and individuals as far as labor goes,” Grove said. “Today, they’d rather sit behind a computer. The city is growing and the demand for construction is growing and I don’t mind saying that I

Brian Connell said that although the myth that Columbia is recession-proof has been busted, the local construction industry appears to be on the rebound. think the workforce is shrinking. Twenty or 30 years ago, people would get out of high school and go to a trade school and learn how to do something with their hands. There’s a serious lack of that.” “We have no effective trade construction technology program [in Columbia],” Huebert said. “You have to go somewhere, way out-state Missouri, to get something that they will even look at certifying for the construction process. It’s a very sad thing. The Department of Labor and Industrial Relations put out a paper two years ago that said the median age of a construction worker in Missouri is 47 years old — 47 is pretty old to be packing around lumber.” As the builders and designers at the table prepare for a busy 2014, they have a lot on their minds, including an aging workforce, materials shortages, and outside competition, but Wallace concluded that government regulation is the biggest threat to the industry. “I was at a conference this weekend,” Wallace said, “and an economist spoke who was very high on the economy, very high on construction and everything that is going on, but he said that the biggest impediment is that there is no land to develop and when you go to develop land, you can’t get it developed. It’s all those outside forces, whether it’s zoning or sustainability requirements, all the way up. I think that’s the biggest challenge that we have. We need a city that helps you develop rather than stifling that.” winter 2014

Inside Columbia’s CEO

Construction this is major! The participants at the Winter 2014 CEO Roundtable completed some highly visible projects in 2013, and have more big plans in the works for 2014.

[ COIL CONSTRUCTION Major projects completed in 2013: • Machens Mercedes • MOHELA Call Center • Providence Urgent Care II • Lucky’s Market • Camping World • Holiday Inn Executive Center upgrades • MidwayUSA expansion Major projects planned for completion in 2014 and beyond: • Missouri Valley College Student Center • Lake of the Ozarks Scout Reservation Goodwill (St. Louis)

[ CONNELL ARCHITECTURE Major projects completed in 2013: • University of Missouri Hospital: soiled linen storage facility • Fletcher Kia (Jefferson City) • Buckingham Smokehouse BBQ Restaurant (Lake of the Woods, Columbia) • Columbia Parks & Recreation: Waters-Moss Park Activity Center • La Siesta Mexican Restaurant (Range Line Street, Columbia) • Jefferson State Office Building: roof replacement (Jefferson City) Major projects planned for completion in 2014 and beyond: • Hallsville R-IV School additions & renovations • University of Missouri Agricultural Engineering Building: Ag Systems Management labs renovations • Columbia Solid Waste Department: new administration & collection operations facilities • 32-unit townhouse apartment development at Old Hawthorne (Columbia) 44

Inside Columbia’s CEO

winter 2014

[ GROVE CONSTRUCTION Major projects completed in 2013: • NorthLight Development Major projects planned for completion in 2014 and beyond: • Cottage Grove Development

[ HERCON CONSTRUCTION Major projects completed in 2013: • Stadium Shoppes outparcels • Broadway Marketplace outparcel • Veterans United: various renovations • Dermistique tenant finish • Jennings Premium Meats renovation • Multiple custom homes and residential renovations Major projects planned for completion in 2014 and beyond • Multiple projects currently bidding • Multiple custom homes and commercial/residential renovations under construction

[ HUEBERT BUILDERS Major projects completed in 2013: • Alpha Delta Pi addition and renovations • Sigma Kappa renovations Major projects planned for completion in 2014 and beyond: • Wilson’s Fitness North addition • Major private projects

DIXIE [ LITTLE CONSTRUCTION Major projects completed in 2013: • Machens Volkswagen • Machens Toyota • Crosscreek Break Time • Furniture Factory Outlet Major projects planned for completion in 2014 and beyond: • Battenfeld Technologies • Columbia Performing Arts Center

& Design • Emery Sapp & Sons corporate headquarters • Veterans United facilities

[ PCE Major projects completed in 2013: • YMCA (Mexico, Mo.) • Hubble Manufacturing expansion • Family Health Clinics (Marceline) • Alpha Chi Omega renovations • Boone County National Bank: Boonville renovation Major projects planned for completion in 2014 and beyond: • Boone County National Bank: Ashland renovation • William Woods University South Circle • Missouri Conference of the United Methodist Church expansion • Pathways Renovations (multiple locations) • Fr. Tolton High School expansion

[ PWARCHITECTS Major projects completed in 2013: • Columbia Public Schools: NE elementary school • Short Street Parking Garage • Missouri Valley College: Student Activities Center • The Crossing expansion • Jefferson City Fire Station No. 3 • Sedalia Fire Station No. 1 • Audrain Ambulance District: new headquarters • Brookside Apartments • Medical infill at 303 Keene St. and Wingate North and South • Missouri Higher Education Loan Authority (MOHELA) Major projects planned for completion in 2014 and beyond • Columbia Public Schools: SW elementary school and additional • Missouri Conference of the United Methodist Church: Office of Creative Ministries

• Spartan Light Metals (Mexico, Mo.) • Discovery Ridge commercial building

[ SIMON ASSOCIATES Major projects completed in 2013: • NorthLight building • MU Golf Team clubhouse • Columbia Performing Arts addition Major projects planned for completion in 2014 and beyond: • Battenfeld Technologies • Logboat Brewing Co. • Nauser Beverage expansion

OSWALD [ SIMON ARCHITECTURE Major projects completed in 2013: • Columbia College: Brouder Science Center • Columbia Public Schools: Battle High School • Boone County National Bank: main lobby renovation • Columbia Public Schools: Aslin Administration Building Major projects planned for completion in 2014 and beyond: • University of Missouri Health Care: South Providence Medical Building • Capitol Region Medical Center: MOB addition and hospital renovation

[ WALLACE ARCHITECTS Major projects completed in 2013: • More than 30 multifamily and senior living complexes throughout the southeast United States Major projects planned for completion in 2014 and beyond: • Frederick Building historic renovation (Columbia) • Kinney Point complex for Columbia Housing Authority • Renovation of 30 complexes, including 1,000 units throughout Tennessee

winter 2014

Inside Columbia’s CEO

C o l u m b i a Above: Columbiaâ&#x20AC;&#x2122;s City Hall Below: Activity & Recreation Center Opposite Page: Columbia Public Library

by design by MORGAN McCARTY photos by L.G. PATTERSON

➔ Commercial architecture in Columbia runs the gamut. From historic brick buildings to glittering glass structures and converted spaces, the city’s commercial landscape offers examples of form marrying function to achieve harmony, as adaptations accommodate tenants. Some buildings, such as the Columbia Public Library were designed to meet users’ needs and flex with the way in which it is traversed and used as a building. Others, such as the Coca-Cola bottling plant or the MKT Railroad Depot were originally built to house different ventures than they do today; nonetheless, they meet — and maybe even exceed — the demands of today’s tenants. Whether you’re looking to learn more about commercial architecture in Columbia or are thinking of building for a business of your own, read on to learn how architecture is the silent partner to many successful businesses and community resources around town.

“It should go without saying that architecture should affect a business in a positive way,” says Chris Davis, vice president of Columbia-based architectural firm PWArchitects Inc. and member of the American Institute of Architects. The design of a building affects how users go through their days and conduct business. “Architecture supports, enhances and reinforces the business it envelops,” Davis says. “Typically, the spaces created — both interior and exterior — exist for a reason. Some areas may be exciting but many are basic in nature. The form of a building takes shape in relation to a business’s needs.” One building that offers a clear example of this form meeting function is the Columbia Public Library at 100 W. Broadway. Designed for use by the public as an interactive and open learning space, the library reflects openness to its surroundings and an awareness of setting. The library was designed by Hardy Holzman Pfeiffer Associates and was completed in 2002. In 2009, the building won two Columbia Image Awards — awarded by the Columbia Convention and Visitors Bureau to honor exceptional architecture and design in the community. The contemporary, 102,000-square-foot building is an update of the previous one and constructed on the same site. The original library, established in 1959, was in a building that was roughly half the size of the current structure, according to Nestor Bottino of Holzman Moss Bottino Architecture, a principal of Hardy Holzman Pfeiffer Associates at the time. The firm conducted studies to determine the impact of a new building on the surrounding neighborhoods and evaluated the previous structure to determine what could remain. After a complete gut and removal of the exterior skin, a concrete frame remained. Bottino and his team then determined how to integrate parking most effectively onto the site and began to design the building’s footprint. A big circle winter 2014

Inside Columbia’s CEO

was inscribed on the site, allowing green space to remain on the four corners of the property and thus softening the impact of the expansion, Bottino says. Missouri granite was used as an homage to the building’s location and to create continuity from the north side of the building around to the southernmost wall of the parking lot. “We were interested in creating as clear of an organization as possible, but wanted to create the flexibility for the building to adapt and change with the library’s needs,” Bottino says. A spine of terra-cotta blocks runs east to west through the building, dividing it into administrative offices to the south and large public areas to the north. “Library patrons can overlook the first and second floors and enjoy the views from the glassenclosed quiet reading room on the mezzanine,” Bottino says. The building’s lobby is found on the east end in a glass volume that offers visibility into the space at night. The firm conducted day-lighting studies to ensure that the space would adapt to year-round climate needs. Windows cut into the building’s north exterior wall align with book aisles, thus opening the interior to the exterior and giving visitors a constant view to the outdoors. Notches cut into the north face of the building grow bigger as they move east to west, providing natural light through skylights. The pair of metal sculptures called Tree of Knowledge by Joseph Falsetti (a University of Missouri associate professor of housing and interior design at the time) were transplanted from the north face of the previous structure to the garden on the south side of the library. La Colomba by artist Peter Chinni — the silvery sculpture that now sits on the north side of Broadway, also moved across the street. Two new structures, collectively entitled Cypher, were constructed by renowned artist Albert Paley to serve as gatekeepers to the north and south entrances of the library. According to Bottino, the library’s board of directors selected Paley after calling for artists’ submissions to collaborate with HHPA on the entrance artwork. The board chose Paley’s work for its scale and the openness it created, Bottino says. The sculptures contrast with the dark granite of the building’s north face and create dynamism with angles, color and movement. Inside the library, special attention paid to the finishes and details of the building ensure a resolved experience for visitors. Double-height ceilings, wide walkways, visibility from ground level to top and an extra-wide staircase create an open environment. “We wanted this to be a walking library,” Bottino says. “We made the elevator convenient, but wanted to encourage visitors to move through the building on foot.” While the building is open throughout the public spaces, different characteristics demarcate different spaces and one type of carpet runs along the spine of the building. The firm worked to select furniture of an appropriate scale and color scheme so that as it migrated through different spaces — as library furniture tends to do, Bottino says — it would work. The children’s space is a lively space occupying the end of the central spine. It was designed to be visible for parents and

Inside Columbia’s CEO

winter 2014

staff and scaled down for the library’s smallest visitors, Bottino says. Children can be seen interacting with the space by climbing furniture designed for just that, and dragging lounges into the adjacent windows to read. Improvements continue at the library; high traffic forces carpet replacement and furniture updates, and the layout is adjusted as the space evolves according to use. The newbooks area is about to get an update and enhancement as a lounge browsing area. Bottino says the architects designed the building knowing that it is a very heavily used library — compared to other libraries they have worked on — so they want it to be inviting, with good character.

“A community recreation center impacts the city of Columbia far beyond creating a recreational and meeting space for residents. It communicates to the entire community that our town is a people-centered place to live, work, learn and play.” “If the architectural solution does not function well, then a basic goal of the process has not been achieved,” says Davis of PWArchitects. “Other things such as natural lighting and air quality of the spaces affect our demeanor, health and productivity.” Open space, adequate natural light and intuitive blending of mixed-use spaces are integral to a successful space, such as Columbia’s popular Activity & Recreation Center at 1701 W. Ash St. “Places and spaces must be found for youth to feel secure and to go to for activities and learning outside of school other than the mall … for senior citizens to network, and access services unique to their lives … for community groups to cooperate with other community groups in combined efforts for common goals,” wrote the authors of the Columbia 2000 report in 1991. “A community recreation center impacts the city of Columbia far beyond creating a recreational and meeting space for residents. It communicates to the entire community that our town is a people-centered place to live, work, learn and play.” The ARC, designed by Jacobs Facilities Inc. with the help of Peckham & Wright Architects (now known as PWArchitects), is a 73,000-square-foot facility that opened on Dec. 16, 2002. A 6.5-lap-per-mile indoor track connects the building’s separate spaces by running around the upper level of the

columbia By design

facility, open through the gym with two full courts, fitness areas and visible from the pool through floor-to-ceiling glass windows. A family aquatics center is on the southeast side of the building. Multipurpose rooms, a classroom, technology center, youth training rooms and day care inhabit the first floor, among other things such as locker rooms and administrative spaces. The building is open through different activity spaces, and as a result never feels crowded — even during peak hours. Instead, spaces flow from one to another and gym patrons are able to enjoy their workouts while those attending meetings can conduct business in peace and quiet, tucked away on the first floor. The exterior of the building features a mix of brick and glass; the rounded shape of the building’s south end reflects the direction of the indoor track. Individuals driving by the facility on Ash Street or Clinkscales Road can see runners circling the track through the glass walls on the second floor.

Brick is a common building material for Columbia buildings, seen in older structures downtown or mixed with glass in newer buildings such as the ARC. Davis calls Columbia’s architectural style eclectic. “This isn’t that much different than comparable communities to ours,” he says. “We have buildings that will stand the test of time like our courthouse, City Hall, Jesse Hall and buildings that primarily exist to house shortterm functions like strip malls, some office buildings.” In 2010, an addition to the Daniel Boone Building, designed by St. Louis design firm Chiodini Associates gave Columbia its new city hall at 701 E. Broadway. “They were running out of space,” says Joe Frigerio, senior project director of Chiodini Associates. After some reshuffling of different departments between the Gentry Building and Howard Municipal Building — structures that Chiodini also worked with the city to restore — construction began on the new addition. The LEED-certified building (Leadership in Energy and Environmental Design) now allows most city departments to be housed under one roof and offers evidence of a design with sustainability and durability in mind. “It’s a need that we all have to look at and know that we’re all stewards of our environment,” Frigerio says. “The goal is to build something that will be around for many years to come and adapt to future needs.” To begin the project, Frigerio says, the Chiodini team sat down with each city department to find out the needs of the department and desire for the new space, currently and in the future. The resulting designs for the addition included vacancy spaces to accommodate for growth expected in certain departments over the years. “It’s important for the client and architect to have a lot of conversations up front to know what is needed for a successful business,” Frigerio says. The city commissioned artist Howard Meehan to create the 16-foot-tall by 16-foot-wide Keys to the City sculpture now visible at the corner of Eighth Street and Broadway; landscape architect and urban planner Jeffrey L. Bruce designed the

outdoor plaza. The open, clay brick plaza that bisects the street corner features oversized tree grates to allow for more topsoil exposure and an integrated irrigation system. The sculpture, plaza and curvature of the front of the building form an open and inviting area. “We wanted it to be a cornerstone for Columbia,” Frigerio says.

The Missouri Theatre has stood the test of time. First built in 1928, it was renovated 80 years later by Jefferson City-based architectural firm The Architect’s Alliance Inc. According to Cary Gampher, architect/principal of The Architect’s Alliance, the building at 203 S. Ninth St. was deteriorating and in need of structural and mechanical stabilization as well as an interior renovation. It took close to two years to raise funds, obtain governmental approvals and finish the design work, and another year to complete the construction and renovations. “The exterior envelope and masonry was deteriorating, the elements were coming in, and it was slowly destroying the building,” Gampher says. “It had to be stabilized and the interior meticulously renovated.” With the help of tax credits available for historically significant buildings such as the Missouri Theatre, the building

winter 2014

Inside Columbia’s CEO

Missouri Theatre

underwent a complete update in line with the standards set by the Secretary of the Interior National Parks Service Historic Renovation Guidelines, the Missouri Department of National Resources and the Columbia Code Enforcement. The Architects Alliance also brought the building up to today’s building codes, a challenge faced by historic building renovations. “The city of Columbia code inspectors were extremely helpful with interpreting today’s codes and helping apply them to a historic building,” Gampher says “The codes were written for modern buildings, and we applied modern-day life safety code to a historic building. There’s a certain degree of judgment on how to best do that and maintain the building’s historical integrity.” Over the years, the elements were slowly destroying certain details such as the ornamental decorative plaster on the ceilings. Subcontractor Wulff Brothers Masonry Corp. rebuilt the plaster by hand. “There are limited craftsmen now who know how to install or repair ornamental plaster commonly seen in period theaters and the Missouri State Capitol,” Gampher says. “The decision was made to pursue two, sometimes conflicting goals,” Gampher says. “One was to modernize the facility and make it state-of-the-art, and two was to maintain the historic integrity that warranted the building be on the Historic Register in the first place.” Other major changes include new mechanical equipment on the roof of the adjacent building in order to control vibration and sound transfer. The building was not initially designed to house air conditioning. The lighting, which previously had been manually operated, was updated to an automated control panel. Accessibility mandated by the Americans with Disabilities Act did not exist on all levels, so an elevator was installed. Layers of paint and stucco were peeled back to reveal evidence of the theater’s original color scheme; strips of fabric hidden behind wooden molding showed where red fabric once hung on the walls. The design team used these discoveries to return the theater to its original color scheme and dramatic ambience.

Inside Columbia’s CEO

winter 2014

A new tenant joined the building’s footprint: the Columbia Art League. “At the time, CAL didn’t have a permanent home, and it seemed like a good fit between the theater and CAL for a permanent downtown location,” Gampher says. The original building was designed when society was segregated, Gampher notes. A separate entrance located on the north facade led to the balcony via a separate staircase. The seating area contained benches at the back, a single drinking fountain and toilet. Restrooms were updated and made larger to accommodate the entire crowd the theater draws on a regular basis. The 2008 renovation resulted in a modern, performing arts center housed in historic construction — a solution Gampher thinks necessary for preserving a city’s downtown life. “As far as conserving resources goes, we try to improve existing facilities before we recommend building new,” Gampher says. “Anytime we have the option to renovate, we try that first before we spend resources on new construction. If you don’t do renovations, the heart of your city will decay, so you’ve got to keep dense areas vital to keep the city healthy and people coming into the downtown area.” Gampher points out that it is easier to build new structures on the edge of town, but if the effort is made to improve a building downtown, neighboring structures will follow in a sort of ripple effect. “If you have one building in the middle of the block that’s revitalized, then the other buildings on the block start to follow suit,” Gampher says. The Missouri Theatre requires continual upkeep to maintain its integrity. The key to it, Gampher says, is proactive maintenance and staying on top of roofing, exterior envelope maintenance, and mechanical systems efficiency. “Architects and engineers look for ways to keep a building fine-tuned and anticipate things in advance before they become a problem,” Gampher says. “It was an honor to participate in the renovation of such a significant landmark.”

Another downtown building renovated and repurposed is the Missouri-Kansas-Texas Railroad Depot. The MKT Depot was built in 1901 by the railroad line, and was initially intended to be only temporary, according to the National Register of Historic Places Inventory Nomination form. As an intersection of architecture and technology,

columbia By design

the MKT Depot is an example of how a building originally designed to accommodate the locomotion needs of the time has evolved through the years while maintaining its original details. Today, the building at 402 E. Broadway remains a meeting place for Columbians and offers a look into the past. The first depot was a simple frame structure built in 1901 that was later replaced with a brick design in 1909. The building served as a passenger depot until 1958 and a freight depot until it closed in 1975 due to a decline in train travel and deterioration of the tracks. In 1976, the renovated depot reopened as the Katy Station Restaurant. Many other downtown buildings underwent similar renovations and rehabilitations at the same time, as Columbia experienced an outward growth in construction and population. By renovating and rehabilitating distinct downtown buildings such as the MKT Depot, Columbia was able to maintain its city center. The Katy Station Restaurant closed in 1998 and the Colosseum Bistro took its place until 2007. In 2008, Shiloh Bar & Grill moved into the depot and remains as the current tenant. The building itself exhibits design characteristics common with many of the other MKT railroad stations — red roof tiles, brick and stone, a decorative tower above the roofline and wide, overhanging eaves.

Just a few blocks east, the Coca-Cola Bottling Co. Building houses Ragtag Cinema at 10 Hitt St. In 1932, Ed Robertson purchased the Columbia Coca-Coca Bottling Co. Three years later, Robertson built the Hitt Street facility for the bottling plant. From the 1960s through the early 21st century, the building housed the printing company Kelly Press. In February 2008, Ragtag Cinema, Uprise Bakery and Ninth Street Video moved into the building after raising funds in the community to renovate the building with necessary systems and equipment. Improvements included the waiting area, bathrooms, 35mm and digital projection systems for the twin theaters, sound technology, the box office, ticketing systems, seating and more. The shell of the building was also renovated. A large portion of the design of the multipurpose building is the intersection of art and function. The building houses a bakery and coffee shop, bar, two theaters and a video rental space. The bar, bakery and coffee shop share the open space

on the north end of the building with the theaters on the southeast side and the video store on the southwest wall. The red brick building with Colonial Revival styling, designed by Brian Pape and built by Huebert Builders, retains its initial layout and many of the original details such as gabled front dormers, brick materials, bays on the front façade and a largely open floor plan. Residential aspects, such as the dormers and gabled roof, were implemented to blend in with the residential buildings originally found on Hitt Street. What results from multiple tenants over time is a building that houses more of a community meeting place (known to some affectionately as Hittsville) and facilitator of arts and culture in Columbia — an anchoring factor in the fabric of Columbia’s downtown affinity.

Columbia’s dominant health care industry has brought two new patient towers to the city’s skyline in recent years. The University of Missouri Health Care’s eight-story patient tower opened in 2013 as an addition to University Hospital on the MU campus. Designed by St. Louis architectural firm HOK, the building includes 90 private rooms, a 7,000-square-foot inpatient pharmacy, six operating rooms, 25 pre-procedure rooms, 18 post-procedure recovery rooms and a nearly 1,800-square-foot lounge for families of surgery patients. Across town, Boone Hospital Center unveiled a sevenstory, 128-bed new patient tower on its East Broadway campus in 2011. Designed by HKS Architects from Northville, Mich., the nature-themed tower was designed with the patient’s overall experience in mind, with natural colors as part of the design and natural light found throughout the building.

winter 2014

Inside Columbia’s CEO

tial ounds n e sid t Reb e R a's arke i b um e M Col l Estat Rea

intro

olumbia’s real estate market is back. Real estate agents and brokers in Boone County are enjoying some of the best sales action since the recession, reporting strong sales as 2013 heads into history. “The market is pretty robust right now,” says Columbia Board of Realtors CEO Lee Russell. “It’s not a seller’s market and it’s not a buyer’s market. It just feels like a normal recovery.” In the first 10 months of 2013, sales of single-family homes in Boone County that went through real estate agents totaled 1,862, according to figures reported to the CBOR. That’s a 14 percent increase over sales at the same time in 2012, outpacing annual totals for the past five years. Mid-Missouri’s torrid market reflects the healthy gains made in national and state real estate trends as well. Nationwide, sales of existing single-family homes are at their highest level since the recession began in 2007. Although volume dipped after summer’s end, the National Association of Realtors says U.S. sales for the first 10 months of 2013 increased 6 percent over the same period in 2012; Midwestern home sales grew by 8 percent. In Missouri, residential property sales are up 11.2 percent over last year. The Springfield/Greene County real estate market was as hot as Boone’s, posting a 14.8 percent increase; sales in the Lake of the Ozarks area improved 12.9 percent. In St. Louis, sales were up by 8 percent; the Kansas City market lagged with a 4 percent increase in home sales.

by kathy

Inside Columbia’s CEO

winter 2014

casteel

illustrations by kate

moore

photo by l.g.

patterson

reconfiguration of intermediate schools, which took effect in the fall of 2013, also spurred real estate activity in the past year, Russell says. She adds that the economic recovery has helped. Lower interest rates and a government stimulus program that offered tax credits to first-time homebuyers helped deplete inventory of existing homes and stimulated demand for construction of new housing throughout the city. Nearly 13 percent of single-family home sales in Boone County through October 2013 has been new construction. The 236 new homes sold in the first 10 months of 2013 represent a 3 percent increase over the same period in 2012 and nearly double the new-home sales of 2011. Boone County and the city of Columbia have issued a combined total of 591 building permits for single-family homes in the first 10 months of 2013, up from 363 issued during the entire year in 2008. The value of those new homes begun in 2013 is pegged at $111.5 million, worth about $20 million more than new homes built in 2012.

t wasn’t always such a rosy picture for local home sales. The economic decline that became known as the Great Recession began in December 2007 after losses on subprime mortgages battered the U.S. housing market. The downturn spread to other American economic sectors and became the longest and deepest slump since the Great Depression of the 1930s. The National Bureau of Economic Research declared the recession officially over in June 2009, but the effects have lingered for several years, especially in real estate. Local home sales here plummeted from a 2004 highwater mark of 2,911 to a paltry 1,514 in 2011. Rebounding sales in 2012 and 2013 have given industry professionals some hope. “Some people who left real estate are coming back to the business,” Russell says. “Several ex-real estate agents have received calls from old clients asking, ‘Can you list my house?’ “Business is picking up.” Several factors have helped fuel the local housing market. Columbia’s population has grown steadily since 2000, its economic anchor of higher education and health care offering some insulation from the fiscal extremes suffered in other parts of the Show-Me State. “Columbia seems to be economically protected, because of the university,” Russell says. “That has helped us here, compared to the rest of Missouri.” New Columbia Public Schools attendance boundaries and

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winter 2014

Inside Columbia’s CEO

Demand is up — and so are prices — but inventory is down, Russell notes, particularly in the affordable housing price range of $150,000. The average sold price of a Boone County home — both existing homes and new construction — through the first 10 months of 2013 was $188,123. Affordability is a problem for the housing market nationwide, says Lawrence Yun, chief economist for the National Association of Realtors. “Affordability has fallen to a five-year low as home price increases easily outpaced income growth,” Yun says. “Expected rising mortgage interest rates will further lower affordability in upcoming months.” Housing prices in mid-Missouri compare well to the rest of the nation and most of Missouri. Nationally, the average sold price of a home in 2013 was $247,200; in Missouri, that average is $157,033. Average sold prices at the Lake of the Ozarks, St. Louis and Kansas City register well above Columbia/Boone County; in Springfield/Greene County, the average sold price is about $18,000 less than it is here.

the american dream Owning a home has long been The American Dream. And now, homeownership rates may be climbing again, according to the U.S. Census Bureau, which reports that 65.3 percent of Americans were homeowners in the third quarter of 2013. That number represents an increase over the 65 percent homeownership rate reported in the first six months of the year, a period notable for having the lowest percentage of U.S. homeowners since the fall of 1995. American homeownership has declined steadily since its peak of 69.2 percent in 2004. Midwesterners enjoy the highest rate of homeownership in the United States — a steady 69.6 percent own their own homes. Missouri’s homeownership rate is a bit higher than that: 71 percent of Missourians were homeowners in the fall of 2013, albeit a slight drop of 1 percentage point since the beginning of 2013. Columbia’s transient population creates a large rental housing market in Boone County. Homeownership rates usually lag behind the rest of the state, due to the high volume of rental housing in this college town. Columbia’s homeownership rate consistently hovers below the 50 percent mark; most recent Census Bureau statistics put it at 48 percent.

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Inside Columbia’s CEO

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winter 2014

Inside Columbiaâ&#x20AC;&#x2122;s CEO

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Inside Columbiaâ&#x20AC;&#x2122;s CEO

winter 2014

ore than two-thirds of single-family home sales in Boone County occurred within the city limits of Columbia during the first 10 months of 2013. Half of Columbia’s home sales were in the southern part of the city. The hot spot was southwest Columbia, where 41.5 percent of home sales occurred; southeast Columbia accounted for 9.5 percent. Prices in these two areas averaged nearly $239,000. Northeast Columbia accounted for 20 percent of home sales; the average sale price was $141,158. Sales in the central city (14 percent) and northwest Columbia (15 percent) made up the rest of the market, with average sale prices of about $159,000. Most sales action in the county was in northeast Boone County, where 41

percent of the home sales occurred in the first 10 months of 2013; average sale price was $133,696. The northwest and southern areas of the county each reported 19 percent of homes sales. Average sale price in the northwest was $156,209, while southern Boone prices averaged $202,319. Southwest Boone County accounted for 11 percent of sales with the highest average price in the market: $270,004. The remaining 10 percent of sales in the county were in the southeast, with an average sale price of $171,801. Russell acknowledges that home sales traditionally drop off during the last quarter of the year, except for a slight boost in activity around the holidays and end-of-the-year moves. The real estate cycle generally picks up again in February and March, she says, in preparation for

the big summer selling season. “If people are going to list a house, they do it in February or March to catch the most activity,” Russell says. Houses sold in the first 10 months of 2013 remained on the local market for an average of 82 days. July 2013 was a very good month for local real estate agents. The 299 homes sold in July accounted for 16 percent of the year’s sales through October. Although mid-summer is a traditional hot-selling time, Russell discounts the sales volume of this past July as an anomaly that won’t be sustained. “That was an abnormal month,” she says. “We’ve seen sales spikes since the recession began in 2007. Sales will probably drop back a bit and normalize. It’s hard to predict, but real estate should be healthy for a few years.”

On The Home Front The Columbia Board of Realtors is the local trade organization for real estate professionals, affiliated with the Missouri Association of Realtors and the 100-year-old National Association of Realtors. The organization strives to enhance opportunities for its members and supports the right to own, transfer and use real property. The group also purports to promote sound land-use practices and policies to create affordable housing in a livable community. As market conditions improve for the 492 members of the CBOR, the group’s staff is keeping tabs on challenges they see for the local real estate industry: • The impact that new energy-efficiency regulations in the building code will have on new construction. Last fall, the Columbia City Council adopted the entire set of 2012 energy-efficiency standards for building, fire, fuel and gas, mechanical, plumbing, sewage disposal, property maintenance and residential codes of the International Code Council. The new standards, which apply to all building permits issued since Oct. 1, could add as much as $5,000 to $8,000 to the cost of a new home, says CBOR Operations Director Brian Toohey. • The specter of “trip charges” for developers, as proposed by 3rd Ward City Councilman Karl Skala. Arguing for developers to shoulder more of the costs of infrastructure maintenance engendered by new construction, Skala proposed last summer that the city adopt a “trip-generator” model for calculating the number of vehicle trips generated during peak traffic hours in a development area — residential or commercial — and charging the developer according to traffic count. Currently, developers pay for infrastructure expansion based on the square footage of the development. Fees would be passed on to consumers, with resulting higher prices, opponents say, which could turn away builders from Columbia in favor of projects outside the city. • Proposals to fund police and fire protection through property taxes. “We don’t think the burden of protection should be borne solely by property owners,” says CBOR CEO Lee Russell. “We are concerned with where the city is going with this.” • Support for countywide rental standards in Boone County. Because Boone County does not have a charter, it must seek permission from the state Legislature for authority to create fire, safety and occupancy standards. Boone County Commissioner Karen Miller and Boone County Sheriff ’s Detective Tom O’Sullivan pushed for the opportunity to write standards in 2012, but the state Senate Jobs, Economic Development and Local Government Committee did not act. The CBOR supports countywide rental standards; the Missouri Association of Realtors does not.

winter 2014

Inside Columbia’s CEO

tes a R ge a g t or M ly

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The Boone County Recorder of Deeds reports a real estate recording volume of 27,289 for the first 10 months of 2013, a volume just slightly ahead of 2012 but little more than half the recording volume of the centuryâ&#x20AC;&#x2122;s high point of 51,003 recordings in 2003.

Source: Freddie Mac

Inside Columbiaâ&#x20AC;&#x2122;s CEO

winter 2014

where the heart is

“

Lee Russell Finds A Home With Columbia’s Board Of Realtors

ome” could mean any number of places for Lee Russell. The self-described “Air Force brat” grew up all over the world as she followed along with her family to every new posting of her Air Force colonel father. The 64-year-old CEO of Columbia Board of Realtors has stayed put in Columbia for the past 27 years. As the leader of the 492 members of the local real estate professional organization, she advocates for the industry that moves Columbians in and out of the places they call home. Born in Tampa, Fla., Russell’s childhood included residential stops in Hawaii and Kwajalein, a South Pacific atoll. She attended elementary school in Japan and high school in Washington, D.C., moving to Montgomery, Ala., for her senior year. An Auburn University alum, she studied education but decided teaching was not for her. “When I became an Air Force wife, I worked at several different types of jobs,” she says, “and moved around to several different places.” Russell’s nomadic lifestyle brought her to Columbia in 1987, apparently for good. She and her first husband, Jay Terry, settled into CoMo life and raised four sons here. Drawn to computers,

she worked in patient accounting at University Hospital and later at Ellis Fischel Cancer Center. Jay died in 2002 and she retired from MU Health Care in 2004. She didn’t stay retired long, though. A short-lived stint with First Consulting Group — a California company that provides information technology and other consulting services to health care organizations in North America and Europe — had her traveling around the world again. “I hated it,” she says. “So I quit. I stayed at home and ironed sheets. I was addicted to watching ‘Dr. Phil.’ ” Friend Betty Tice, a successful Realtor with House of Brokers, told Russell she needed to get a job, and she knew the perfect position for her. Russell joined the Columbia Board of Realtors in 2005 as operations director to run the organization’s Multiple Listing Service and take it online. She became CEO on June 1, 2011, replacing Michael Brown, who served for eight months after longtime CEO Carol Van Gorp left for Palm Beach, Fla. Russell points to her vagabond military life and her varied work history as good preparation for her current position, and she credits lessons learned from Van Gorp. “Carol was a good mentor,” she says.

“She loves mentoring.” Married to Missouri Commissioner of Higher Education David Russell in 2012, she is a graduate of Leadership Columbia and sits on the board of True North, an advocacy organization that offers services to victims of domestic and sexual abuse. Russell keeps a keen eye on local issues, looking out for the best interests of her industry. The CEO’s job, she says, includes everything from meeting with the City Council to changing the toilet paper in the office bathroom and making the coffee. It’s a style she calls “working leader.” “I lead by example,” she says. “I have a dedicated work ethic and I’m persistent, but I like to nurture and build consensus. You get more with honey than with vinegar.” Russell’s most valued leadership lesson was gleaned from a National Association of Realtors conference, which introduced her to the book Maestro by Roger Nierenberg. “It’s about leadership by listening,” she says with a knowing smile. Her favorite part is a quote from Austrian pianist and author Alfred Brendel: “The word ‘silent’ has the same letters as the word ‘listen.’ ”

winter 2014

Inside Columbia’s CEO