Business Journal 20160801

BUSINESS JOURNAL BIZBUZZ.DJOURNAL.COM

FLYING HIGH: TUPELO AVIATION GEARS UP, page 10

FEATURE: What does it take to be a truck driver? Tupelo offers two options to learn from Itawamba Community College to the Truck Driving Institute.

page 4

COLUMN: Jennifer Gregory, CEO of Greater Starkville Development Partnership, looks back at the last 15 years.

page 7 Q&A:

We sat down with Mike Tagert, North District Commissioner with the Mississippi Department of Transportation, to discuss current and future projects.

page 5

CONNECT WITH US

W

hen Aaron Jennings, store manager at Trails and Treads, moved to Tupelo three years ago, he thought the status of walkability and bicycling in the city were “horrible.”

For a solid month, he racked up 400 miles on a bike, running errands and commuting to and from work.

On his travels, he feared being clipped by angry drivers.

“All of my commuting has been out on the white line on the road, getting honked at it,”

he said. “The drivers here absolutely hate you being on their road. I’ve noticed since the bike lanes have come in downtown, there’s more people using them.”

Jennings attended the recent ribbon cutting for the completion of the Elvis Presley Birthplace Trail, an $11.5 million project that connects East Tupelo to downtown with added sidewalks and bike lanes.

Now, he feels differently after riding the “easy and smooth” trail

from the Birthplace to downtown.

“I think it’s awesome you don’t have to worry about getting hit,” he said with a laugh.

Jennings believes in connecting the city, and even met with Mayor Jason Shelton and the city’s Department of Parks and Recreation to let them know about People for Bikes, an organization that helps generate funds and plans to help the city establish better biking and walking options.

“I would love to see

those bike lanes continue all the way to Coley Road to McCullough Boulevard to Gloster Street and back down; a nice big square,” he said.

“That’s all the businesses in town. You could do all your errands and go anywhere if you got them connected.”

According to Sightline Institute, for every 10 minutes a person spends in a daily car commute, time spent in community activities falls by 10 percent.

TURN TO WALK, 3

AUGUST

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THE NORTHEAST MISSISSIPPI

I

AUGUST 2016

Road trips reveal Mississippi road needs

’ve driven about 6,000 miles since June, a combination of commuting to work (I live in the fine community of Pratts, just south of Baldwyn), going to Vicksburg to visit my mother every couple of weeks or so and going on vacation.

In June, I took my son to the Ozarks in northwest Arkansas, where we did a little hiking and sight-seeing. This past week, we were in and around Atlanta.

Thanks to reliable transpiration, my 2014 car – bought new in June 2014 – has racked up more than 84,000 miles since I bought it. I’ve been all over the Southeast. Next year, I may make a road trip out west.

Anyway, I’ve gained a greater appreciation for good roads.

Parts of I-40 around Memphis

and into Arkansas a re among the worst I’ve been on. But at least it seems like DENNIS SEID they’re working on it. Portions of I-22 in Alabama are among the best roads I’ve driven. Going into Atlanta on I-20… it’s hard to tell with so many cars and trucks on the road but most of it seems in decent shape.

In Mississippi, at least where I drive, we have mostly good roads as well.

But there are some that need help. Lots of help.

Maintaining the roads and bridges of the state is what the Mississippi Department of Transportation does. The

agency’s work oversees 30,000 miles of highway, along with bridges, airports and ports.

You can see read MDOT Northern District Commissioner Mike Ta g e r t ’s question-and-answer in this issue to get a little more perspective.

But there’s no question we have to find money to make sure our roads and bridges are in good shape. We’ve been talking about this for a couple of years now, and it’s an issue that’s not going to go away.

And I know Mississippi isn’t the only state facing budgetary constraints.

There have been complaints that MDOT is not efficient with the money it receives. But let’s quote Tagert on this: "Eightyeight percent of our total funding goes toward maintenance

and construction. Over 70 percent of MDOT’s maintenance and construction funding is used on infrastructure repair and maintaining the roads we currently have.”

Meanwhile, costs have skyrocketed for roadwork, but the funding needed isn’t matching up.

Again, from Tagert: “We are spending most of our resources to maintain the system that we have already built. Most of our active projects are related to asphalt overlays, bridge repair and replacement. Unfortunately, we cannot afford to build all of the new road construction projects that are warranted.

"Over the next 20 years, declining revenue coupled with increasing maintenance

WestPark Project on West Main Street in Tupelo

needs and rising construction costs means that MDOT will not be able to maintain the current condition of the system or build new lanes or roadways. By 2040, pavement conditions will decline from 60 percent in fair or better condition down to only 47 percent.”

Good infrastructure is not only good for citizens like you and me, but it’s also necessary to land business and industry.

It’s both a community development issue and economic development issue.

Let’s find a way to keep our roads and bridges in good shape.

Contact DENNIS SEID at (662) 6781578 or dennis.seid@journalinc. com.

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BUSINESS JOURNAL

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BUSINESS JOURNAL

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WALK: Tupelo, Oxford officials talk business benefits of city connectivity FROM 1

ZACK ORSBORN | BUY AT PHOTOS.DJOURNAL.COM

Trails and Tread's Aaron Jennings, far right, attends the Elvis Birthplace Trail ribbon cutting ceremony with fellow bikers.

THE NEXT DECADE

As Tupelo’s city planner, Pat Faulkner connects the dots between walkability and the impact on the local economy.

When he joined the city in 1998, walkability wasn’t an issue discussed until around 2006 when the city rewrote some of its 2025 Comprehensive Plan after hearing citizens concerns about safer streets.

He began looking at the types of businesses to see where walkability could make a positive impact.

In his research, he found that walkability needs to be a multi-disciplinary approach. He also found that property value and commercial lease revenues are higher with a more connected city.

“It’s not just a retail strategy,” he said. “It’s a tourism strategy, a health strategy, and it’s a way of making people feel more connected to their community. If you look at it as solely transportation, you’re not going to catch the whole benefit.”

In the last three years, Faulkner said, there’s been a shift in thinking on residential markets where

people are seeking to live in “semi-urban” places where they can walk somewhere.

In 2010, the city adopted the Complete Streets ordinance which requires developers to build sidewalks in front of their businesses.

Businesses are still driven by vehicle traffic, especially in the Barnes Crossing area, even though a sidewalk was added from North Green Street to the area.

To reduce the use of driving as a means of transportation, Faulkner suggested businesses should think about being connected to residential areas behind them to gain additional customers.

Areas that are pedestrian-oriented, like downtown, keep the money in Tupelo.

“They are the environments that support small, niche-type businesses and locally-owned businesses,” Faulkner said. “If you go up to the mall where the high traffic and high dollar things are, those are all chains. The money goes out of here overnight.”

Faulkner sees a connected Tupelo in the next decade with the West Jackson Street redevelopment in progress and the city’s hopes to connect bike and walking paths down to the Natchez Trace to tie in downtown.

The city also has plans to expand the Music Bend Trail system to the Natchez Trace Trail system and the Ballard Park Trail system.

“I’m not sure if we could connect the entire city,” he said. “I think we could have facilities within a reasonable distance of most of the city in the next ten years.”

THE OXFORD WAY

Oxford’s Pathways Commission – an advisory group trying to improve the ways people get around Oxford, the University of Mississippi and the county – is making the college town even easier to roam.

Kate Kellum, chair of the Pathways Commission, uses her background in behavioral psychology to figure out how and why people move about.

“People who live in a

place that they perceive as safe to move about without a car will choose to go without a car more often,” she said. “Every single person we can get without a car improves the safety of all the people.”

To make Oxford safer, the city has narrowed street lanes and implemented traffic calming infrastructures in high walking or biking areas so drivers are forced to slow down.

Kellum believes developers and planners should start considering looking through the walkability “lense,” which in turn, reduces retrofitting and makes projects less expensive.

By putting a parking lot in the back or the side of a business, walkers or bikers are more likely to enter the business, Kellum said.

“A lot of planners and engineers don’t have the experience of choosing to walk places,” she said.

“There were many years where engineers and planners were trained to think about cars, but we’re getting away from that.” zack.orsborn@journalinc.com

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AUGUST 2016

TRUCKIN' ALONG

AUGUST 2016

ICC, Truck Driving Institute prepare students for success

BY ZACK ORSBORN BUSINESS JOURNAL

TUPELO – At the age of 10, Tony Ferguson, an instructor at Itawamba Community College’s truck driving course, began riding along with his father as he hauled trailers of products across the country during the summer.

He never got bored, despite the hundreds of hours on highways. Like his father, Ferguson received his own Class A commercial driver’s license and began hitting the road when he was 18.

“People do it a lot of times for the money, but I’m here to tell you, if you do something just for the pay, and it’s not what you love to do, you’re not going to do it very long,” Ferguson said. “It takes special people to do it.”

The hours gone away from home, Ferguson said, strain marriages and families even though a career in truck driving can provide well from them.

“You will sacrifice stuff,” he said. “You’re going to be gone.”

Ferguson began instructing at ICC 10 years ago, and since then, the industry has changed tremendously due to more stringent federal guidelines and stricter training requirements.

With new technology like electronic logging books, the Federal Motor Carrier Safety Administration and the Department of Transportation have more rules about how long a driver can stay on the road.

ZACK ORSBORN | BUY AT PHOTOS.DJOURNAL.COM

Tony Ferguson, instructor for ICC's truck driving course, inspects two trucks on the Tupelo campus. Ferguson began driving a truck at the age of 18 and began teaching 10 years ago.

On average, drivers are allowed to work 70 hours in eight days.

For four weeks, Ferguson teaches three students about the regulations and helps students get in at least 1,200 miles behind the wheel on a range or on the road.

Most of the prospective truckers coming in to ICC’s program are either unemployed, recently laid off or seeking a career change.

“It’s good to be able to help those kind of people and see them make a difference,” he said. “I’ve got several people who call me now that thank me a lot. It feels good to get that especially from somebody who’s had a bad road and are now able to purchase a home or vehicles.”

At any time, one can flip nies around here. Our through the newspaper companies that come by and find a trucking job, here, most of the time, Ferguson said. Luckily, they try to get people Northeast Mississippi home every weekend to provides e v e r y multiple o t h e r types of w e e k i n d u s - The truck drivers are the end.” tries from lifeblood of this country.

Withfurniture If it stopped, it wouldn't out the to autot r u c k take long before the mobiles. driving Tr u c k - whole place shut down. industry, ers who Ferguson choose to said, the work in TONY FERGUSON Missisthe area s i p p i have a economy better chance of coming would fade away. home more often.

“The truck drivers are “We’re in a good central the lifeblood of this counlocation with the I-44 cor- try,” he said. “If it stopped, ridor through Memphis it wouldn’t take long beand now that I-22 is built fore the whole place shut all the way,” Ferguson down. If the gas haulers said. “It’s good for compa- quit hauling gas, how long

could we go?”

ROLLING SOME MILES

A couple of years ago, Kristi Bell, admissions counselor with the Truck Driving Institute in Tupelo, met a struggling veteran who was living in his car after seven different overseas tours.

After completing the institute’s three-week, 154hour program, the veteran made a healthy living and now has a home and a car.

“He was just in a bad spot,” Bell said. “So talking to him every year, it brings tears to my eyes. I’m so glad we got to help him.”

With a clean driving and criminal record, Bell said a truck driver can easily make $40,000 to $60,000 a year if they are willing to “roll some miles.”

The curriculum changes with the truck driving industry, and the industry has grown, Bell said.

“Everything that’s in this office at one time has been in a truck,” she said.

“As we grow as America, everything we need is growing. You have drivers that retire. There’s a constant need for drivers.

These truck lines are adding fleets all the time.”

After spending time on a range, on highways and driving during nighttime, TDI tests their own students through third-party examiners. Drivers have to hold a permit for 15 days prior to testing.

Fourteen days later, TDI tests them for their CDL. “There’s different routes they have to drive, backing skills, parking skills, so we use our range,” Bell said. “The DOT comes out and watches us test quite often.”

In the last year, TDI graduated 1,600 drivers nationally.

The institute communicates with 17 companies to find placements and to help with tuition costs.

So far, TDI has a 92 percent placement rating.

The students log about 500 miles during training.

“By the time they leave us, they are really comfortable with the truck,” she said. “At first, I think they fear the unknown and going to places they’ve never been before.

You have to learn that lifestyle. It takes them a little bit to get acclimated to their new career.” zack.orsborn@journalinc.com

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BUSINESS JOURNAL

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M

ike Tagert is the Northern District Commissioner for the Mississippi Department of Transportation.

He was elected in 2011, overseeing 33 counties and nearly 1 million residents.

He previously was administrator of the Tennessee-Tombigbee Waterway Development Authority and president of its trade association, the Tennessee-Tombigbee Development Council.

way since the Mississippi State Highway Commission began in 1916. MDOT is responsible for supporting, maintaining and preserving the state-owned transportation system which includes maintaining 30,000 highway miles; inspecting and maintaining approximately 5,775 bridges; supporting 2,600 rail miles, 150 airports, 69 public transit providers and 16 ports; removing approximately 300,000 bags of litter from highways Q. MDOT is celebrating its every year; and supporting 100th year. What should peo- 90 percent of all commerple know about MDOT? cial traffic and over 60 perA. MDOT and Mississip- cent of statewide traffic. pi’s transportation infraEvery one of these comstructure have come a long ponents contribute greatly

BUSINESS JOURNAL

to the economic development potential of our state each and every day. The safety of the traveling public is always MDOT’s number one priority, and by maintaining and improving our current multimodal transportation system, we can improve upon our safety record.

Q. Infrastructure is critically important, and funding for roads and bridges is a hot topic. What are the conditions in the Northern District, as compared to other areas in the state?

A. Making comparisons

is difficult because of the variables created by the vastly different geographic

areas of the state when divided among MDOT’s six districts. We have the Appalachian foothills, the prairie land, the delta and the coastal region. But, if we look at the number of deficient bridges in the 16 counties of Northeast Mississippi that make up District One, 153 (17 percent) of the 878 deficient bridges on the state-owned system maintained by MDOT are in Northeast Mississippi.

When comparing pavement condition ratings, 1,391 or 8 percent of the 11,576 lane miles of pavement needing repair that are maintained by MDOT are here.

Of the deficient bridges

5

in the 17 counties in Northwest Mississippi that make up District two, 268 (29.5 percent) of the 878 deficient bridges on the state-owned system maintained by MDOT are in District Two. When comparing pavement condition ratings, 1,511 or 13 percent of the 11,576 lane miles of pavement needing repair that are maintained

by MDOT are in District Two.

on old U.S. highway routes such as 178 and 145. These routes are vital for the movement of commerce and people in the communities of Northeast Mississippi. These bridges were constructed in the 1930s and 1940s. Through MDOT inspection and maintenance programs, the bridges have exceeded their design life for decades. These bridges generally had a “design life” of 25 to 40 years. Several of Q. Related, what are the these are timber bridges most critical areas/roads/ and have been on the sysbridges that need to be re- tem for more than 75 years paired/replaced in the dis- but have been constantly trict? repaired or shored by A. Many of the deficient MDOT to reach that life. bridges in District one are TURN TO TAGERT, 13

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AUGUST 2016

AUGUST 2016

Waterway opportunities

Tennessee-Tombigbee Waterway Development Authority chief sees untapped potential

BY DENNIS SEID

BUSINESSJOURNAL

COLUMBUS –With a deep background in economic development, Mitch Mays hopes to raise the profile of the Tennessee-Tombigbee Waterway.

As the administrator of the Tenn-Tom Waterway Development Authority who took over three months ago, Mays, oversees the 234-mile waterway that touches Alabama, Kentucky, Mississippi and Tennessee. It’s a unique position, unlike most economic development jobs.

“It’s a contrast in economic development, community support, political support in some sense with working with four states and how the waterway is funded, and you fold in the Corps of Engineers,” he said. “We don’t work for the Corps and the Corps doesn’t work for us, but we definitely have a symbiotic relationships. Our goal is to work with them in their efforts to operate the Tenn-Tom – the locks, the dams, mitigation efforts, the dredging. If they don’t have the funding to do those things, then there’s no TennTom." He was most recently ex-

ecutive director of the Franklin County ( Alabama) Development Authority, where he served for 10 years.

Before that, he was project manager for Talledega County Economic Development Authority for five years.

He’s a retired veteran of the U.S. Air Force and the Alabama National Guard.

The Tenn-Tom opened in 1985, helping connect the Tennessee and Tombigbee rivers and some 1,300 miles of navigable water.

A study done by the National Strategic Planning and Analysis Research Center at Mississippi State University, along with advisory groups from the University of Alabama, the University of Kentucky, the University of Southern Mississippi and the University of Tennessee said current investment in the Tenn-Tom generates more than 24,000 full-time jobs in the four-state area, resulting in $1.9 billion in annual personal income.

The return on investment is 3.54, which means $3.54 is returned for every $1 invested in the Tenn-Tom. Despite those numbers, Mays said the waterway still has plenty of untapped potential.

“Not just business and industry uses it – which is the most important part because it MAYS provides jobs along it – but it’s also a quality of life issue. You have cities and towns that take water out of it for their water supply, you have companies using it for power,” he said.

“We see the Tenn-Tom Waterway as more than just moving product down it.”

Mays doesn’t necessarily think the waterway is underutilized. Rather, he sees it having many opportunities waiting for others to discover.

The waterway runs into Mobile, and businesses that need to move product along the Gulf Coast can use the Intercoastal Waterway. The role of the Tenn-Tom, Mays said, is to save companies thousands of dollars and thousands of miles, providing an alternative to using the Mississippi River and the Port of New Orleans.

“In essence, we shorten the distance companies need to go and save them

money,” Mays said. “If we can help their bottom line, then companies can expand and hire more employees.

And it keep them in that community they’re vested in by having the capital investment in those communities.”

ROOMFORGROWTH

In 2014, the most recently available and complete figures, some 8.8 million tons of goods went through the locks of the Tenn-Tom. “We’re holding our own,” Mays said. “I think we may have been down a bit in 2015, but from what I’ve seen so far, it’s been very steady.”

Each lock along the waterway averages about 1,000 lockages a year, not counting recreational traffic.

“I’d like to see 10,000 lockages a year, which seems like pie-in-the-sky,” Mays said with a laugh.“But our goal is to maintain funding for the Corps and have growth in the lockages and tonnages every year.

Can I put a realistic number to that? No I can’t because there’s so many factors that go into it. For example, there are ports along the

route. Can they handle the type of industry that needs water access? Do the ports have the infrastructure?

“We have certain limitation, but also we have some advantages in areas along the waterway. It really depends on other factors on whether there’s growth or not.”

Mays said the key is working with the communities in getting infrastructure.

It’s a chicken-or-the-egg argument: prospective industries like to have the infrastructure in place, but many small communities aren’t going to commit to a big capital expense/investment unless they’re assured a company is committed to a site.

“We need to have ports with the infrastructure ready for business and industry,” Mays said. “Most of the ports I’ve seen are relatively small. The challenge is developing a site that business and industry would look at it and consider it if they need waterway access. Also, it’s important to maintain funding for the Corps. Budgets are constrained at every level, but it’s import-

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ant to keep their work going.”

Today’s economic development landscape is fast-moving, and business and industry requires a site that needs little prep. Having infrastructure already in place is critical to successfully land a company.

“Business and industry, if they’re going to spends millions or billions of dollars, they want no uncertainty,” he said.

The Mississippi Department of Transportation is giving some help via its Multi-ModalTransportation Improvement Program. For the upcoming fiscal year, MDOT set aside $10 million, with $3.8 million dedicated to ports.

“Amory gets $400,000 for road improvements, Lowndes County got $80,000 to build a new facility for a business, Aberdeen did a railroad improvement going to its ports … things like that help bring business to a port,” Mays said. “For Amory, that opens up a potential 170 acres that’s on the waterway. Those are the kinds of things we want to encourage communities to TURN TO WATER, 13

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BUSINESS JOURNAL

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GDSP celebrates 15th anniversary of founding

his year marks the15th anniversary since the founding of the Greater Starkville Development Partnership, Starkville’s community development organization that houses the Starkville Area Chamber of Commerce, Starkville Visitors & Convention Council, Oktibbeha County Economic Development Authority and Starkville Main Street Association.

Truly a unique structure, most community and economic development agencies operate separately and autonomously, or in some cases in pairs.

Just since 2010, tourism spending in Oktibbeha County has increased from $65 million annually, to over $93 million in 2015, a 43 percent increase. This is during a time that many of our neighboring communities were rebuilding their tourism industries after a national recession. Several events created and produced by the Starkville Visitors & Convention Council over the last five years are now woven in to the fabric of our community’s character and quality of life. These events include Pumpkinpalooza, our community’s fall festival that has enjoyed exposure within national media and on ESPN, entertaining crowds of nearly 10,000 people each year; the Downtown Block Party; unWINE Downtown; Bulldog Brunch and Browse; the Holiday Bazaa; SOUPer Bowl; Starkville Restaurant Week; and the King Cotton Crawfish Boil, just to name a few.

These events are just part of the package of an aggressive re-branding and marketing campaign the Partnership launched in

2010. Out of this process was born a renewed focus on promotJENNIFER GREGORY i n g Starkville and positively shifting the perception of our beloved hometown.

“Mississippi’s College Town” was Starkville’s new brand, and included a host of tourism-centered campaigns that have helped to further reinvigorate and revitalize D ow n t ow n St a r k v i l l e, promote Starkville’s authentic and local culinary culture, while providing substantial economic impact to our restaurants and retailers city-wide.

In 2010, the Starkville Main Street Association became a reality and became a new entity of the GDSP. Now hailed as one of the top Main Street programs in the state, Starkville Main Street has been honored with numerous awards, and our staff has been invited to speak at regional and national conventions to share our strategies and successes for healthy revitalization and retail promotion of our Downtown.

Food has become a common theme of strategy and promotion in the Starkville community. Analytics confirm that Starkville is a restaurant destination within the Golden Triangle, Winston andWebster counties, and our residents and visitors enjoy a truly authentic culture of locally owned restaurants pushing the envelope with unique menu items, locally sourced ingredients and unusual partnerships. It’s common

to see local restaurateurs shopping with farmers and growers at the Starkville Community Market every week. It’s part of the character of their restaurants and their business plan – to support local. “Farm to table” has become a national trend, but in Starkville, it’s been happening for years.

This community spirit also has a true economic benefit. Restaurant Business magazine’s August 2015 issue ranked Starkville fifth nationally in its “Best Places to Open a Restaurant” market index. Alongside larger beach and resort markets on the list, Starkville is one of two small towns gaining prominence as one of the best markets for restaurant growth. The list is part of the 2015 Restaurant Market Index, an annual ranking of growth by market compiled

by Nielsen, a global provider of data insights.

All it takes is a windshield tour of Starkville to see that the community is truly booming. Commitment to downtown revitalization has encouraged hundreds of millions of dollars of private development within the core of Starkville providing housing, retail, restaurants and even a state-of-the-art convention center on the edge of Mississippi State University.

We look forward to the fall and football season with anticipation and excitement as we hope to continue pushing Mississippi’s College Town to become better and more enjoyable for all.

JENNIFER GREGORY is the CEO of the Greater Starkville Development Partnership.

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AUGUST 2016

AUGUST 2016

THE MARSHALL PLAN Barnes Crossing Volkswagen is the newest member of the automotive dealer's network

BY DENNIS SEID

BUSINESS JOURNAL

TUPELO – A long-held dream is about to become reality with the opening of a new state-of-the-art Volkswagen dealership.

Joe Marshall, who opened his first Mississippi dealership in Tupelo six years ago with his purchase of what is now known as Barnes Crossing Hyundai/ Mazda, has been a busy man. He has since opened Barnes Crossing Chevrolet in New Albany, Barnes Crossing Auto Sales and Service in Saltillo, Barnes Crossing Auto Sales in Starkville and Mazda Ridgeland.

Barnes Crossing Volkwagen already has a presence on Highway 145 in Saltillo, but it’s a temporary spot until the new facility opens.

“We’ve been selling an average of 11 new Volkswagens a month since December, which is better than anticipated,” he said.

Marshall recently returned from a VW dealers meeting in Dallas, where the German automaker unveiled its plans.

“It’s an exciting new di-

rection they want to go,” he said. “They’re going to really focus on quality and bringing out more SUVs.” Volkswagen has been caught up in an scandal involving the manipulation of diesel emissions information from its vehicles, but Marshall said the company is moving ahead while dealing with the issue.

“The company has come out with it’s ‘diesel-gate’ settlement, and it’s very attractive to the owners involved,” he said. “I think they’ll be very pleased with it, and I think the Volkwagen loyalty factor will kick in.”

Meanwhile Volkswagen’s focus on SUVs comes at the right time.

Throughout the industry, truck and SUV sales have jumped as the price of gas has fallen. That helped with record U.S. auto sales last year, and 2016 is shaping up to be as good, if not better.

Marshall, like other auto dealers across the country, has seen a consumer shift.

During and after the Great Recession, with gas in the $4 range, automakers and consumers focused on

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smaller fuel-efficient cars.

But with gas near $2 and with more fuel-efficient trucks and SUVs being produced, consumers are flocking to them again.

“We’re not selling nearly as many cars as we once were, but we’re selling a lot of SUVs across all brands,” Marshall said. “The problem with Hyundai is they have an 80/20 mix (of car sales vs. SUV sales), while Volkwagen is 90/10. So VW is coming out with five or six SUVs so they can get it closer to 60/40. Same with Hyundai.”

Century Construction has been the contractor for the new VW dealership building, and Marshall thinks the opening will be mid-September.

“I think you’ll see more Volkswagens around time once we open here,” he said. “They’ve got a very competitive product, and it’s the only European brand in the area.”

The closest European auto dealerships are in Memphis and Birmingham, which puts Barnes Crossing Volkwagen in a good spot.

“There’s not another Ger-

THOMAS WELLS | BUY AT PHOTOS.DJOURNAL.COM

Joe Marshall looks around the in-progress construction of Barnes Crossing Volkswagen. man franchise around, so we’ll be able to service German makes and models as well as sale used German vehicles,” Marshall said.

Marshall’s expansion plans have been rapid in Mississippi, but he’s also branching out. He’s opening a Hyundai dealership in Colombia, Tennessee soon.

Marshall employs about 300 people in sales and service.

“Tupelo and the surrounding area has been a great market for us. … we’ve just tried to sell the

community on us, not just as a brand, but also as individuals. It’s worked very well.”

There’s no doubt about that – Marshall’s goal is to have 1,000 used vehicles available at any given time in Tupelo alone, giving consumers a varied choice.

Plus he wants another 500600 new vehicles.

Marshall also recently opened a location in Fulton, further expanding his footprint.

“If you move to where the people are, it’s more

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convenient for them and they’ll come see you more often,” he said.

His plan six years ago was to sell 125 vehicles a month, a number he reached quickly.

“Six months in, we were selling 200, then after a year, we were selling 300 a month,” he said. “I think at that point Hyundai was really hot at that time, and then we just kept delivering great customer service.

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SKY'S THE LIMIT Tupelo Aviation Unlimited is the fixed-based operator at the airport

BY DENNIS SEID

BUSINESS JOURNAL

TUPELO – An airport is often judged by its commercial air service, but it’s not the only gauge of the overall operations.

The Tupelo Regional Airport, for example, has had its fair share of issues with commercial service the past few years.

The newest service, Contour Airlines, seems to have resolved that problem in its first few months of service.

An integral part of any airport’s operation is the fixed-based operator, or FBO. An FBO is much like a service station for aircraft, providing a multitude of services including fueling, defueling, cleaning, catering, de-icing, towing, hangar space, etc.

According to desert jet.com, “The history behind the term fixed-based operator is interesting in itself. Toward the end of World War I in 1918, civil aviation was virtually unregulated and mostly made up of ‘barnstormers’ or transient pilots operating military surplus aircraft. Flying from city to city and landing in farmer’s fields, pilots set up temporary camps where they would offer airplane rides and flight lessons. With pressure from the Air Commerce Act of 1926 that resulted in licensing of pilots, aircraft maintenance requirements, and training standards, the pilots and mechanics making a living on the road started to develop permanent businesses, which were quickly termed fixed-base operators.”

TURN TO FLIGHT, 14

THOMAS WELLS | BUY AT PHOTOS.DJOURNAL.COM

Shelton Tutor prepares to get a Learjet ready for takeoff at Tupelo Regional Airport.

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AUGUST 2016

AUGUST 2016

Time, deadline is of the essence I

t’s about time.

When I set a meeting with a client or a prospect, I do my best to make sure that I am early for the appointment.

Starting on time is me putting my better foot forward. It shows that I care about my client’s time. It makes for a good start to the project. When making a pitch, I take the time to practice the pitch before giving it. I do not wish to waste the client’s time.

It’s about time.

I’ve listened to friend and fellow Scouter Danny Foster pass along advice to Boy Scouts

a b o u t meetings that he picked up from his MissisTY ROBINSON s i p p i Army National Guard days: “If you’re five minutes early, you’re on time; if you’re on time, you’re late; and if you are late, it is inexcusable.”

The boys are learning that the tone of the meeting and the connections are set at the beginning of the meeting, so anyone coming in late is a disturbance to the group. It is not fair for them to have to restart

for one latecomer. Someone slipping in five minutes after the start can sit down, listen, stay quiet and catch up. Someone coming in 15 minutes late will be too far behind the conversation.

It’s about time.

I work in a business that is full of deadlines.

At the moment, I can’t think of a business that does not work on a timetable or goals. Everything is on a schedule or it is assigned one. I once shared with Phyllis Harper a sarcastic quote about deadlines from author Douglas Adams that she printed in an ar-

ticle: “I love deadlines. I like the whooshing sound they make as they fly by.” It’s humorous, but it can’t happen.

Missed deadlines are missed opportunities. I do my best to plan my work and work my plan.

Yes, sometimes life happens, but life would be really dull without a few challenges. And, I’m not in this race alone.

It’s about time.

Hiring a professional is a way to save time. I know when I run across an issue where I don’t have a lot of experience, I turn to those who do for help. This allows me

to do the things that I do well because I would waste more time when I could hire it done more efficiently and effectively. I know that my clients are happy to enlist my aid in the things I do well and to use the connections I have to get the job done. They’re happy; I’m happy.

It’s about time.

I came across a great piece of advice lately. I’ve been relying more and more on a to-do list to keep up with my tasks.

The advice I read recommended assigning a time to complete tasks that come up on a schedule

rather than a to-do list. I mentioned this to a friend and was given the pop culture quote “Do. Or do not. There is no try.” I guess Yoda will be writing a management handbook now.

It’s about time.

Then there’s downtime. The time where I can stop looking at my watch and enjoy the moment with family and friends. That’s what we’re saving time for, isn’t it.

Isn’t it about time?

TY ROBINSON is president and COO of Robinson and Associates, a marketing agency in Tupelo.

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College savings big investment issue

t’s in the air – that sense of anticipation among recent high school graduates and that sense of foreboding amongst their parents. Among the graduates, there are visions of classes; fall weekends filled with parties and football games; and new friends and experiences. Among the parents, there are thoughts of a fledgling leaving the nest, and one major question, “How do I pay for this?”

College savings is one of the biggest investment issues for most families. Understanding the different savings plans available is a good starting point to preparing for the expense of higher education.

One of the most popular education savings vehicles

is called a 529 plan. These plans have two options: a prepaid tuition plan and a college savings plan.

The prepaid tuition plan allows savers to deposit funds into an account that allows for payment of tuition at present levels vs. future costs. College tuition costs have increased much more rapidly than the rate of inflation over the past several decades and the ability to pay at today’s rate takes that risk off the table.

The college savings plan investment plan allows for investment of funds over a period of time that can be used for most all higher education expenses including tuition, room and board, books, etc.

Both allow for growth of funds tax-deferred and tax-

Rib Shack eyes new location on Highway 72 CORINTH – An owner of Crossroads Rib Shack hopes a new Corinth location can be open in about three months.

“We’re all getting excited,” said Keith Price, one of the owners of the restaurant, which launched in 1996.

free when used, provided that the funds are used for qualified exCHRIS COLE penses.

The college savings option also allows for changing of the beneficiary so if the account is not depleted by one user, the remaining funds can be used for another student. One final benefit is that the control of the account remains with the owner (i.e. parent, grandparent, etc.); therefore the funds are more likely to be used for its intended purpose of paying for education expenses.

The 529 plans allow for contributions of $14,000 a

year per child with some other funding options available that can offer some estate planning options also.

A Coverdell education savings account (CESA) allows for investment of $2,000 a year to be placed into an investment account that grows tax deferred and has tax free distribution provided it is used for qualified education expenses.

The account has some drawbacks in that there are some income limitations and the small allowable amount to be contributed will not make much dent into college expenses. But there is one significant benefit: 529 plans must be used for post-high school education, whereas the CESA allows for funds to be

used for expenses in the K-12 years. Many parents who send their children to private schools have found this benefit to be very helpful in paying for private school tuition.

Probably the most common of savings vehicles for college costs historically has been setting up a custodial account for the child and depositing funds into the account over a period of time. The most attractive aspect of this account is the lack of restrictions on the account, and the fact that the growth of the account is taxed at the child’s rate. Depending on the state you live in, the funds in the account become the property of the child at either age 18 or 21.

Other options for paying

of expenses include savings bonds, Roth IRAs, and educational trusts set up for the benefit of the child. All of these have benefits, but also drawbacks that need to be fully understood before using them. In this day and time, financial aid from different sources also must be considered. Many colleges offer resources to help explain their availability.

No matter what savings instrument is used, the old farmer’s cliche of, “The more hay you put in barn early, the more you have when it comes time to feed” should be remembered.

CHRIS COLE is a Chartered Wealth Advisor and vice president of Hilliard Lyons in Tupelo.

REGIONAL ROUNDUP “I think it’s going to do really well.”

The new restaurant will be built on Highway 72 East, just east of the NAPA Auto Parts store and across from Russell’s Beef House.

There also are plans to add four or five new menu items once the new location opens.

The current Rib Shack location will close once the new one opens. It

will have a similar rustic theme on the inside as the current restaurant.

Uber service begins after 2-year waiting period OXFORD – After a two-year startand-stop process, Uber finally got up and running in Oxford in early July.

Uber started service in Oxford July 1 after House Bill 1381 went into effect.

Uber operates via a smartphone app, making it and other services like it specifically applicable to the new law.

Uber requires background checks, but those are conducted by companies that do not have access

to some of the confidential information that law enforcement does, according to Rep. Jay Hughes of Oxford. Hughes voted against HB 1381. He said it catered specifically to companies like Uber and that it undermines individual municipalities’ rights to determine how taxi

services under their jurisdiction are operated.

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AUGUST 2016

TAGERT: Northern District Commissioner for MDOT talks future of major road, bridge projects FROM 5

Q.Related,whatarethemost critical areas/roads/bridges that need to be repaired/replaced in the district?

A. Many of the deficient

bridges in District one are on old U.S. highway routes such as 178 and 145. These routes are vital for the movement of commerce and people in the communities of Northeast Mississippi. These bridges were constructed in the 1930s and 1940s. Through MDOT inspection and maintenance programs, the bridges have exceeded their design life for decades. These bridges generally had a “design life” of 25 to 40 years. Several of these are timber bridges and have been on the system for more than 75 years but have been constantly repaired or shored by MDOT to reach that life.

Twenty-five percent of the four-lane highways in District One, including highways 45, 82, 72, 25 as well as many other routes, have a “poor” or “very poor” pavement condition rating and are in need of repairs today.

Many of the deficient bridges in District two are on routes such as 6, 178, 32,

49, 51 as well as many other routes. Twenty-five percent of the four -lane highways in District Two, including highways 55, 82, 61, 72 and 6, have a “poor” or “very poor” pavement condition rating and are in need of repairs today.

sions.

We are trying to build and maintain 2016 roads and bridges with a 1987 budget. The nature of these activities are dictated by market forces. We cannot control the market prices of concrete, asphalt, or steel.

Q. How do you respond to those who say MDOT should be more efficient, and that we need to make sure MDOT is working efficiently before more money goes to MDOT? A. Eighty-eight percent of

Q. What are the major road projectsthatyou’reworkingon for North Mississippi?

A. Again, we are spending

our total funding goes toward maintenance and construction. Over 70 percent of MDOT’s maintenance and construction funding is used on infrastructure repair and maintaining the roads we currently have. In 2014, the Performance Evaluation and Expenditure Review (PEER) group was tasked by the Mississippi Legislature to review MDOT and found that we efficiently spend our funding when it comes to highway construction and maintenance. This report is available on the PEER and MDOT websites.

There are also other independent studies that have reached the same conclu-

most of our resources to maintain the system that we have already built. Most of our active projects are related to asphalt overlays, bridge repair and replacement. Unfortunately, we cannot afford to build all of the new road construction projects that are warranted.

Active construction projects include: • Highway 25 from south of Becker to Highway 278 in Monroe County. This project relocates Highway 25 in that section and the funds were earmarked by the Mississippi Legislature.

• A grade and bridge project parallel to the existing lanes of Highway 15 from Highway 6 to the Union County line in Pontotoc County. This capacity improvement was priori-

WATER: FROM 6 encourage communities to do because it helps attract business and industry and therefore increases traffic on the waterway.”

An ongoing container-on-barge program is in its early stages. Many communities are looking at the program, May said, which requires ports to have the

13 ability to loan and unloads large containers on barges.

Some, like Fulton, already have large cranes.

“But the program hasn’t taken off quite the way we thought and hoped it would,” he said.“Part of it is having companies that need that container-on-barge capability. A lot of people know the Tenn-Tom is there, but

don’t know why it’s there.

Bsienss and industry get so focused on on aspect, that instead of thinking about trucking a container on the roads, they can do it on the waterway. A lot of it is about knowing what resources are available.

“That’s the challenge to us – getting the word out, and the best way to do that."

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BUSINESS JOURNAL

AUGUST 2016

AUGUST 2016

FLIGHT: Tupelo Aviation serves variety of clients from small engines to jets FROM 10

THOMAS WELLS | BUY AT PHOTOS.DJOURNAL.COM

Shelton Tutor prepares to remove a Learjet. On the right, he removes a Learjet from a hanger to get ready for takeoff at Tupelo Regional Airport. Tupelo Aviation serves a variety of planes.

Tupelo Aviation Unlimited is the FBO at Tupelo Regional, having formed after the airport’s buyout of two former privately owned businesses, Southernaire and Tupelo Aero.

Airline Maintenance Service, or AMS, of Nashville manages TAU, a deal struck in 2012 with the airport. The entities split the profits of the operations, with 60 percent going to the airport and the rest to AMS. “We took what was a small, barely profitable operation and turned it into a thriving, successful FBO,” said Erik Larson, AMS’ business development director.

“For example, we’ve doubled fuel sales in the four years we’ve been here”.

The principle players behind AMS have been in business together for about a decade. All with aviation experience, they formed AMS. Corey Gillard, the president and owner of the company, is not only a pilot like Larson, but a mechanic, too.

“We’ve both got the aviation bug, for better or worse,” Larson said with a laugh.

AMS is based in Nashville, but its management team saw Tupelo as an opportunity for growth.

“Tupelo is a unique area, and it has a pro-business environment, both in city government and the airport board, and we were able to come in and make some changes in customer service and man-

agement style to help with the profitability of the FBO and to give the service our clients ex-

vice aren’t a big issue with the FBO because its business depends on general aviation. Clients are mostly private, recreational pilots who require services no matter what airline might be flying in and out of the airport.

The FBO does sell fuel to the airlines, but it’s a small portion of its budget. The fuel is sold at the lowest margin possible, so “whether there’s commercial aviation or not, it has little material impact on the FBO,” Larson said.

And he said the airport

We see small planes, large planes and everything in between.

ERIK LARSON pect,” Larson said.

TAU now employs about a dozen full- and part-time employees, having doubled its workforce since 2012.

Tupelo Regional Airport’s recent struggles with commercial air ser-

is an under-appreciated asset.

“Our clients are all the major manufacturers and businesses in the area, plus the businesses they deal with,” Larseon said. “The airport and the FBO are extremely important, helping to facilitate business to the area, Lee County in particular. … I think the airport is often overlooked for the commerce it helps generates. Many companies wouldn’t be here unless there was an airport. We know this because they tell us all the time.”

Tupelo Aviation serves a variety of clients. It’s not uncommon to see small single-engine planes next to multi-million-dollar corporate jets. Large charter air-

craft also fly into Tupelo, carrying college sports teams.

“We see small planes, large planes and everything in between,” Larson said.

TAU also recently signed a military fuel contract, specifically with the Army Aviation Support Facility located on airport property. The AASF is home to several Apache helicopters, which are used by the National Guard.

“We’ve been able to significantly increase our fuel sales to the military, which is our single largest c u s t o m e r,” Larsen said. “We’re proud to serve them, and I think they’ve really been a big help to the FBO and the airport in general.

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BUSINESS JOURNAL

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Hooks Diabetes and Medicine Clinic

Prissy Pistols Boutique

Prissy Pistols Boutique celebrated the grand opening of its second location at 2139 McCullough Blvd. with a ribbon cutting. Prissy Pistols offers fashion-forward clothing for women and young girls, at affordable prices. Shop Prissy Pistols in store, online at prissypistols.com, or on Facebook. For more information, call (662) 397-5250.

Hooks Diabetes and Medicine Clinic celebrated its grand opening at 2625 Traceland Dr., Ste. A with a ribbon cutting. The first nurse practitioner-owned and operated diabetes clinic in the state of Mississippi, Dr. Nancy D. Hooks, DNP and team provide care for diabetes, hypertension, hypercholesterolemia, thyroid disorders, testosterone issues, weight loss and other endocrine disorders. For more information about Hooks Diabetes and Medicine Clinic or to schedule an appointment, call (662) 260-4708 or visit hooksdiabetesandmedicineclinic.com.

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Business Directory COMMERCIAL CLEANING SERVICES

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AUGUST 2016

AUGUST 2016

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