MBJ_Aug22_2014

INSIDE — Kemper goes online for natural gas, Page 8 Small Business {P 4}

Jerky in Flowood

YEARS

1979

www.msbusiness.com

SPECIAL REPORT: COMMERCIAL DEVELOPMENT

Incentives are available — if you can find them

» Whatever your craving, Beef Jerky Outlets offers more than 200 flavors of jerky to choose from.

Real Estate {P 2} » Oxford technology firm FNC getting new office complex with ‘campus-like’ atmosphere

» Options are open for creating growth while adding public infrastructure

Finance {P 5} » State’s ‘MAGIC’ finance system living up to billing but has glitches.

» Todd Smith’s Spin Cycle column will tell you.

2014

August 22, 2014 • Vol. 36, No. 34 • $1 • 20 pages

MBJ FOCUS

Do you know the top 6 spokescats?

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By TED CARTER ted.carter@msbusiness.com

Technology can cross many fields — from industry to research to medicine — and many Mississippians have have made impacts. In this Focus Special Report, we select who we believe are the state’s top contributors.

— Pages 9-12

Mississippi let die on July 1 any new sales tax rebates for development of large retail complexes designated as “heritage centers,” a name given for their supposed ability to draw visitors from near and far.

More coverage, The rebates, worth Pages 14-15 a few hundred million dollars to individual projects, went to a handful of retail developments around the state, including the nearly one-year-old Outlets of Mississippi, a more than 300,000square-foot outdoor center on Bass Pro Drive in Pearl.

The 2012 legislation, allowing the rebates, died after two years, killed by legislators unconvinced of their economic development value.

See INCENTIVES, Page 16

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http://msbusiness.com/events/leadership-law-nomination-form/

2 I Mississippi Business Journal I August 22, 2014 FNC expects to build a 68,000-squarefoot complex on 20-25 acres on Highway 7 that will allow room for growth.

Concept drawing courtesy FNC

REAL ESTATE

Oxford’s FNC getting new headquarters » Technology firm’s office complex will offer ‘campus-like’ atmosphere

BY WALLY NORTHWAY wally.northway@msbusiness.com

Mortgage technology firm FNC Inc. is in the middle of the design phase of its new headquarters in Oxford, a complex that will not only give the growing company needed space, but also reflect the city of Oxford’s vision for large, campuslike environments.

“We have been working on our plans for about three years,” said FNC President Glen Evans. “We’re not stacked on top of each other now, but we are looking ahead — looking at our growth rate.”

FNC’s site rests on Highway 7, not far from the firm’s current headquarters on Office Park Drive.

Plans are still being finalized, but FNC expects to build a 68,000-square-foot complex on 20-25 acres that will allow room for future growth.

Evans said the new headquarters would probably cost in the $20-million range.

The contractor on the project is Ridgeland-based White Construction Company.

STG Design and local architectural firm Howorth & Associates are executing the design work.

FNC has already received the first set of drawings, and is expecting a second set by the end of the month. The company hopes to break ground before the end of the year, and construction is expected to take approximately a year.

That time frame is a little soft, Evans said, because FNC is working with a num-

“We have been working on our plans for about three years. We’re not stacked on top of each other now, but we are looking ahead — looking at our growth rate.”

Glen Evans President, FNC

ber of entities on the project. These include the Mississippi Department of Transportation, which is widening Highway 7.

However, FNC is also looking to meet the city of Oxford’s vision for future commercial development of high-tech companies and research firms. On the same day Evans was interviewed by the Mississippi Business Journal, The Oxford Eagle ran a story concerning the city’s push to create a new planning district with campus-like work environments. The newspaper reported a proposal that would limit buildings to a maximum of 45 feet tall and a minimum lot size of 3.5 acres.

The Eagle quoted Oxford City Planner Andrea Correll, who specifically cited FNC. Evans told the Mississippi Business Journal that FNC, indeed, is looking to build a “campus-like atmosphere” at the new headquarters, adding that FNC leaders

looked at other “best-places-to-work-type companies” when formulating plans for the new headquarters.

Jon Maynard, president and CEO of the Oxford-Lafayette County Economic Development Foundation, told the MBJ that the city is looking to grow companies that enhance Oxford’s image as a clean, forward-thinking community.

“The new FNC site will not only be great for the company, but the community as a whole, too,” Maynard said.

FNC has long been a bragging point for the city. The company was founded in the mid-1990s by former University of Mississippi professors and mortgage industry experts Bill Rayburn and Dennis Tosh.

The men were educators and consultants to lenders and state banking organizations, counseling them on conforming to regulatory guidelines by applying the Financial Reform, Recovery and Enforcement Act. Rayburn and Tosh subsequently collab-

orated with fellow professors Bob Dorsey and John D. Johnson as well as Ole Miss Ph.D. student Duncan Chen to develop the real estate collateral management software that would eventually become the firm’s flagship product, the Collateral Management System, or CMS. FNC has been on a steady growth track since then and has garnered numerous headlines. In 2008 when the housing industry imploded, FNC not only survived, it thrived as clients lined up in the new environment for the firm’s products in services.

In 2012, the firm made The FinTech 100, a ranking of fastest-growing tech companies in the world. And, just last year the company unveiled the FNC Clean Room, technology aimed at making loan trading more efficient and transparent by turning the loan file into structured data that can be easily analyzed.

Additionally, the FNC Clean Room streamlines connections between buyers and sellers, which enables both parties to expand their business and increase revenues Today, FNC operates satellite offices in Costa Mesa, California; Dallas; Detroit; New York; and Sao Paulo, Brazil. Additionally, FNC supports technical staff at client locations nationwide and employs telecommuters in Jackson as well as Charlotte, Atlanta, San Francisco, Chicago, Houston, San Antonio and Jacksonville.

For more on FNC, visit www.fncinc.com.

August 22, 2014

Assistant Secretary of Nuclear Energy Peter Lyons was quoted as calling Mississippi one of “the most public of potential hosts to express interest in taking high level waste.”

Presley says he believes that Moniz and Lyons have been misinformed of Mississippi’s wishes.

“I think it is very important for everyone from the White House to our congressional delegation and the bureaucrats in the Energy Department to know that this agency stands unified against any efforts to make Mississippi America’s nuclear waste dump. It is obvious from the statements of Secretary Moniz and Mr. Lyons that there is an effort afoot to at least consider our state for the (nuclear waste site). I want them to know where our agency stands,” Presley said. “I find it strange that the Department of Energy continues to push this idea of Mississippi as an alternative site for Yucca Mountain, Nevada. They need to know that the Public Service Commission is against that harebrained scheme.”

— from staff and MBJ wire services

Both sets of figures — adjusted to cancel out seasonal changes — were released Monday by the U.S. Labor Department.

The report said 101,200 Mississippians were unemployed in July, up by fewer than 1,000 from June but down from 111,200 without jobs in July 2013.

The number of Mississippians looking for a job fell in July, but the number of people saying they had work fell faster, driving up the number of jobless people and the unemployment rate.

Jobless rates rose in 30 states, fell in eight and were unchanged in 12. North Dakota retained the

3

College football’s Bowl Championship Series was retired following the 2013 season, but ESPN’s BCS expert will continue to offer commentary on the sport this fall — in a revamped role.

Jackson native Brad Edwards has signed a new three-year contract with ESPN and said last week that he will continue to fill a variety of roles for the sports broadcasting behemoth.

“I am thrilled to continue with ESPN and be a part of our coverage of the first college football playoff, said Edwards, a Jackson Academy graduate. Edwards “This contract will take me past the 20-year milestone with the company, which is something I never would’ve imagined when I first joined ESPN in 1996.”

Edwards started at ESPN as a research assistant and worked his way into an on-air position by developing a deep understanding of the, at times, confusing and complicated BCS formula used to determine the two teams that would meet each year to play in the major college football championship game.

With a new playoff format beginning this season, Edwards’ BCS analysis is no longer needed. But he will offer analysis on the playoff format and other issues this fall on ESPN’s SportsCenter news shows and on other ESPN platforms. He will continue to write articles for ESPN.com and be a guest on ESPN radio shows. Additionally, he will serve as a guest host on the highly popular “Paul Finebaum Radio Show” on the new SEC Network.

Edwards is scheduled to return to Jackson on Sept. 8 and speak to the Jackson Touchdown Club at River Hills Tennis Club.

— by Rusty Hampton / For the MBJ

BANKING AND FINANCE

nation’s lowest jobless rate at 2.8 percent.

The national unemployment rate rose to 6.2 percent in July from 6.1 percent in June. That’s lower than the 7.3 percent rate in July 2013.

— from staff and MBJ wire services

Venture Technologies merges with ISC, acquires SAT Venture Technologies has announced that its merger with Information Systems Consulting, Inc. (ISC), headquartered in Denver is complete. The newly formed company will continue to operate under the name of Venture Technologies. This transaction creates a leading technology and cloud solutions provider, consistent with the emergence of hybrid technology partners.

The company is differentiated by its technical expertise, commitment to customer service and operational excellence. As a result of the consolidation, Venture will operate three data centers, including Venture’s VTCloud® in Jackson, Miss. Concurrent with the merger, it was also announced that the acquisition of Strategic Allied Technologies (SAT) in Birmingham was complete. SAT is a strong solutions provider that augments Venture’s expertise and capabilities in the Southeast.

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Jackson native Brad Edwards signs new 3-year deal with ESPN

Mississippi’s jobless rate remains highest in America ACROSS MISSISSIPPI — The state’s unemployment rate continued to go in the wrong direction in July, remaining the highest in the nation.

The jobless rate rose to 8 percent in July, the third straight monthly increase, as the number of people reporting they had a job fell faster than the labor force.

Mississippi’s unemployment rate was 7.9 percent in June, but was below the 8.7 percent rate of July 2013.

A separate survey showed employer payrolls rose slightly.

Mississippi Business Journal

SPORTS BUSINESS

Presley calls in-state nuclear waste dump ‘harebrained scheme’ NETTLETON — Public Service Commissioner Brandon Presley has reached out to President Barack Obama, Mississippi’s congressional delegation and other Washington leaders in an attempt to block any federal government attempts to dispose of the nation’s nuclear waste in Mississippi.

In a letter sent this week, Presley shared copies of recent unanimously passed PSC resolutions opposing a permanent nuclear waste disposal site in Mississippi and requesting refunds for the $80 million paid by Mississippi residents for a Presley failed government storage facility in Yucca Mountain, Nevada.

Presley wrote that he encloses the resolutions “…in the hope that they will present you with an accurate account of Mississippi nuclear waste storage policy and correct any impression you may have been given that Mississippi would welcome the nation’s waste.”

Presley’s concern stems from public comments made by federal officials naming Mississippi as a potential site for a waste facility. In July 31, 2013, testimony before the U.S. House of Representatives Subcommittee on the Environment and Energy, Secretary of Energy Ernest Moniz named Mississippi as a top contender to replace Yucca Mountain as the location at which the nation would dispose of its nuclear waste. More recently, in an Associated Press article published May 26 of this year,

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» See more of this story at www.msbusiness.com As a result of the merger and concurrent acquisition, Venture will employ a staff of 205, including 61 account managers, 11 technical architects and 101 engineers producing almost $150 million in annual revenue. Venture Technologies now owns and operates SOC II Type II, data centers in Jackson, Denver and Casper, Wyo., along with additional resilient co-located infrastructure in Dallas, Texas. Headquartered in Ridgeland, the company’s locations include a recently constructed state-of-the-art facility in Denver as well as operations in Alabama, Louisiana, Tennessee and Wyoming.

— from staff and MBJ wire services

Southern Bancorp to acquire Bank of Bolivar Southern Bancorp, Inc. (Southern), a rural-focused Community Development Financial Institution (CDFI) and holding company for Southern Bancorp Bank, has signed an agreement to acquire the Bank of Bolivar County, which operates two branches in the Mississippi communities of Shelby and Mound Bayou.

Southern currently operates a branch in Shelby, but Mound Bayou will be a new community for the CDFI. Southern Bancorp, Inc., a bank holding company; Southern Bancorp Community Partners, a tax exempt lending and development organization; and Southern Bancorp Bank, one of America’s largest rural development banks were founded in 1986 by then Gov. Bill Clinton, Wal-Mart Chair Rob Walton, the Winthrop Rockefeller Foundation and others who were concerned about the economic decline of rural Arkansas. All three are U.S. Treasury- certified Community Development Financial Institutions (CDFIs) collectively known as “Southern.”

— from staff and MBJ wire services

4 I Mississippi Business Journal I August 22, 2014 SMALL BUSINESS PROFILE

Courtesy of Beef Jerky Outlet

More than 200 choices of beef jerky are available at the Beef Jerky Outlet that opened recently in Flowood. For more on the Beef Jerky Outlet, visit www.thebeefjerkyoutlet.com..

QUIRKY? NO, JERKY » Whatever your craving, Beef Jerky Outlets likely has the flavor among 200+ choices

BY WALLY NORTHWAY wally.northway@msbusiness.com

Don’t let the sign on the front of the building fool you.

Certainly, the new Beef Jerky Outlet in Flowood offers beef jerky in a mindnumbing, 200-plus variety of flavors — from traditional sweet, hot and teriyaki to Moonshine, Boiled Crawfish and 3 Beer BBQ Rub. However, the Beef Jerky Outlet that opened about a month ago in an outparcel of the Lakeland Commons Shopping Center offers much, much more. In addition to beef, the store’s inventory includes, chicken, bacon, turkey and salmon jerky.

Looking for something a little wilder still?

It also has venison, elk and even bison jerky, to name a few.

There is also food for the vegetarian, including fried green beans and dried fruit chips.

In addition, the Flowood Beef Jerky Outlet offers other non-jerky items such as cheeses, snack sticks, nuts, candies, marinades, seasonings, jams and jellies, sauces, pork rinds and more.

“We have been thrilled with the early response,” said Jennifer Vancor, co-owner of the Beef Jerky Outlet in Flowood along with her husband, William. “We have something for everybody here. The other day, I was serving a dump truck operator and his wife while a guy waited in line who had driven up in a sports car.”

Indeed, corporate leaders of the Beef

Courtesy of Beef Jerky Outlet

Beef Jerky Outlet has opened in Lakeland Commons Shopping Center in Flowood.

Jerky Outlet point to data that show jerky is on the rise as a tasty, yet healthy, option with consumers across the country — Chicagobased IRI found jerky consumption jumped more than 45 percent from 20092013, ringing in at $1.24 billion today.

Beef Jerky Outlet’s success seems to back that up. From its first store in Destin, Florida, there are now six founderowned stores and 25 franchise stores, stretching from Colorado to West Virginia, with 33 more scheduled to open over the next 18 months.

The Vancors are banking on those rising sales. The Flowood location is the culmination of the couple’s dream to start a busi-

ness close to home. William, a retail sales coordinator for a large telecommunication firm and volunteer firefighter, is a native of the Rankin County city of Pelahatchie.

Jennifer, a special agent with the federal government, grew up in the Ross Barnett Reservoir area where the couple resides today with their two daughters.

“We were looking for something else to do — to start a new business,” Jennifer said.

“We had looked and looked and looked.”

Then, an old school chum from Rankin County who had opened a Beef Jerky Outlet in Louisiana contacted Jennifer.

“William looked at it, and said, ‘Wow, we could do this. This could be fun,’” Jen-

nifer remembered.

The Vancors chose Flowood for their franchise because it would make opening and managing the new store easier.

However, they also wanted to be a part of their community.

To that end, the Beef Jerky Outlet is currently offering the Beef Jerky Outlet Treadmill Challenge. Shoppers are asked to walk on an in-store treadmill wearing a firefighter’s turnout jacket and tank. The Vancors are donating $5 for every one who takes the challenge to the 3rd Annual 9/11 Half Marathon, which will be run Sept. 7 and will benefit the state’s burn center in Brandon as well as the Reservoir Fire Department.

In addition, runners are receiving a 10 percent discount on Beef Jerky Outlet purchases through race day, and the store’s staff will hand out free snacks to racers at the finish line.

“We love everything about Flowood and Mississippi, and we want to bring something really special and unique to all of our family and friends who make this area the best place on the planet to grow up and live,” Jennifer said.

While community-minded, the Vancors see the Beef Jerky Outlet as a money-maker.

They have already purchased the Beef Jerky Outlet franchise rights for Pearl, Southaven and Tupelo. The couple is still formulating plans for opening those new stores, but they are buoyed by the response to the Flowood store and the marketing statistics.

“People ask me, ‘Who is your customer,’” Jennifer said. “I answer, ‘Anyone who eats.’”

August 22, 2014

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Mississippi Business Journal

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FINANCE

State’s MAGIC works, albeit with glitches

By TED CARTER ted.carter@msbusiness.com

Mississippi state government’s $100 million accounting system that launched July 1 made nearly 100,000 employee and vendor payments in July, but came in late on slightly more than two dozen contract worker payments.

Human error caused the 26 contract payments to be a few days late, the Department of Finance & Administration said.

In the meantime, though, multiple payrolls have gone out every week, the agency said.

Putting the Mississippi’s Accountability System for Government Information and Collaboration, or MAGIC, into operation “has been a massive undertaking and like any new system there is a learning curve and new problems to be resolved,�

DFA spokeswoman Sherri Hilton said in an email.

The focus has been on ensuring no repeat problems occur, she said.

A Mississippi Business Journal story detailing MAGIC’s debut drew several responses

from readers who identified themselves as either state employees or contract workers.

They claimed to have gotten paid late or not all at. “My contract that started processing on June 23, 2014, is still waiting for the state to give me a vendor ID number,� a writer identified as a Mississippi Department of Health contract worker said in an Aug. 6 correspondence with the MBJ. “I have been working for them almost two months with no pay,� the writer wrote. “It’s still stuck at waiting for a vendor ID number.�

No replies were received to emails to the writers to the MBJ. The emails sought additional details on their complaints.

Hilton said without specific information it’s impossible to say why their payments were delayed. “There could be a multitude of reasons, including input errors, which were not uncommon under the old system.�

State officials have called the launch of MAGIC marked a transition to an ultra modernized way of managing state finances. The planning, procurement, train-

ing and start-up of MAGIC required a dozen years of work, including aroundthe-clock shifts in the weeks leading to the July 1 launch.

The system designed by SAP Public Sector Software integrates and manages state government’s finance, procurement, fleet management, inventory management, grant management and data warehouse control. “MAGIC is like driving a Cadillac versus a tractor,� DFA Executive Director Kevin Upchurch said in response to the complaints received by the MBJ. “It’s a completely different way of operating. Both vehicles have a steering wheel but everything else is in a different place.�

MAGIC has more buttons and gadgets, Upchurch added, using the Cadillac-tractor comparison. “It may take some time to learn what they all do and how to use them, but eventually it is going to be a smooth ride.�

The writers to the MBJ hope he’s right. “I noticed I was supposed to be paid on Friday, July 11. It’s now July 13 and I still haven’t been paid,� a writer identified only as an “anonymous state employee� wrote

on July 13. “All contract workers for the state were notified late Friday that no one could tell when they would be paid.�

The same writer wrote on July 25: “Our paychecks were 10 days late last pay period.

This pay period they are late again.�

Another writer on July 10 wrote: “Anybody noticed that it is 7-10 and MAGIC is still not up and running?�

A writer identified only as “John Doe� wrote on Aug. 13: “I have been waiting for my payments since June. The system services to the high-up folks at state offices.

The state is ruining my patience.�

Upchurch said the new technology and integration of so many functions of state government to a single system is a remarkable achievement. “I’m very proud that the state of Mississippi has made great progress toward transitioning from our outdated accounting and finance system to a unique, state-of-the-art business and financial management system that will serve us all well.�

But, Upchurch conceded, “Even new cars sometimes have problems that must be fixed.�

I need technology that allows me to

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A member of the Mississippi Press Association www.mspress.org

200 North Congress, Suite 400 Jackson, MS 39201-1902 Main: (601) 364-1000 Faxes: Advertising (601) 364-1007; Circulation (601) 364-1035 E-mails: mbj@msbusiness.com, ads@msbusiness.com, photos@msbusiness.com, research@msbusiness.com, events@msbusiness.com

Website: www.msbusiness.com August 22, 2014 Volume 36, Number 34

ALAN TURNER Publisher alan.turner@msbusiness.com • 364-1021 ROSS REILY Editor ross.reily@msbusiness.com • 364-1018 WALLY NORTHWAY Senior Writer wally.northway@msbusiness.com • 364-1016 FRANK BROWN Staff Writer/Special Projects frank.brown@msbusiness.com • 364-1022 TED CARTER Staff Writer ted.carter@msbusiness.com • 364-1017 LISA MONTI Contributing Writer mbj@msbusiness.com • 364-1018

MBJPERSPECTIVE August 22, 2014 • www.msbusiness.com • Page 6

OTHER VIEWS

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Politics drives talk of a state tax cut

ext year is an election year for everyone in state government, which means decisions will skew even more than usual toward what’s politically popular. What’s good politics, however, is not always what’s best for the state.

Consider the current rumblings of a tax cut to be considered in the 2015 legislative session. The state’s top three leaders — Gov. Phil Bryant, Lt. Gov. Tate Reeves and House Speaker Philip Gunn — all appear to be jockeying for position in advocating what Reeves calls “a raise for taxpayers.”

It’s got a good political ring to it, especially if you can hear the footsteps of a Tea Party primary challenger behind you, as both Bryant and Reeves are no doubt contemplating. It’s a surefire way to solidify your conservative bonafides and seize the momentum from anyone coming at you from the right.

But there are many fiscal conservatives who also realize that Mississippi has many unmet and underfunded needs and who know that now is not the time for the state to reduce its revenues.

The state revenue picture finally has begun to improve after several down years follow-

ing the recession, including two years in which revenue not only didn’t grow but actually was less than the previous year, historically an extremely rare occurrence. During these years K-12 education has been underfunded hundreds of millions of dollars in violation of the formula set out in state law.

Universities and community colleges have sustained cuts from which they haven’t yet recovered. The state’s highways, bridges and infrastructure are in dire need of repairs, a See VIEWS, Page 7

BOBBY HARRISON Contributing Writer mbj@msbusiness.com • 364-1018 TAMI JONES Advertising Director tami.jones@msbusiness.com • 364-1011

» THE OUTSIDE WORLD

» INSIDE MISSISSIPPI

No welfare cut for kids whose parents test positive

MELISSA KILLINGSWORTH Sr. Account Executive

melissa.harrison@msbusiness.com • 364-1030 VIRGINIA HODGES Account Executive virginia.hodges@msbusiness.com • 364-1012 TACY RAYBURN Production Manager tacy.rayburn@msbusiness.com • 364-1019

Mississippi children would not lose welfare if a parent's benefits are cut off because of positive tests for illegal drugs, according to rules set by the state Department of Human Services.

The state's welfare drug-testing law was supposed to take effect July 1, but it was delayed after advocates for low-income families said the agency originally proposed administrative rules that were harsher than the law itself.

The agency has revised its rules to line up with what legislators passed and the governor signed, and the law took effect Aug. 1. The updated rules specify children would not lose coverage by Temporary Assistance for Needy Families if a parent has an unfavorable drug test.

About 4,300 adults and 12,900 children in Mississippi received TANF benefits in May. The average monthly payment was $67.94 for an individual and $139.65 for a family, although the family size was not specified.

CHARINA RHODES Circulation Manager charina.rhodes@msbusiness.com • 364-1045 MARCIA THOMPSON-KELLY Business Assistant marcia.kelly@msbusiness.com • 364-1044 SUBSCRIPTION SERVICES (601) 364-1000 subscriptions@msbusiness.com Mississippi Business Journal (USPS 000-222) is published weekly with one annual issue by MSBJ 200 N. Congress St., Suite 400, Jackson, MS 39201. Periodicals postage paid at Jackson, MS. Subscription rates: 1 year $109; 2 years $168; and 3 years $214.

To place orders, temporarily stop service, change your address or inquire about billing: Phone: (601) 3641000, Fax: (601) 364-1035, Email: charina.rhodes@msbusiness.com, Mail: MS Business Journal Subscription Services, 200 N.Congress Street, Suite 400, Jackson, MS 39201 POSTMASTER: Send address changes to Mississippi Business Journal, Circulation Manager, 200 North Congress Street, Suite 400, Jackson, MS 39201 To submit subscription payments: Mail: MS Business Journal Subscriptions Services, 200 North Congress Street, Suite 400, Jackson, MS 39201.

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It is the policy of this newspaper to employ people on the basis of their qualifications and with assurance of equal opportunity and treatment regardless of race, color, creed, sex, age, sexual orientation, religion, national origin or handicap.

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Entire contents copyrighted © 2014 by Journal Inc. All rights reserved.

» HOW TO WRITE Letters to the editor are one of the most widely read features of the Mississippi Business Journal, and they give everyone a chance to voice their opinions about current affairs. We’re interested in what you think and we welcome Letters to the Editor for publication. Here are the guidelines: >> Letters should not exceed 300 words in length as a general rule. >> All letters must bear the writer’s address and telephone number. Street addresses and telephone numbers will not be published, but may be used for verification purposes. Letters may not appear without the author’s name.

>> Form letters, thank you letters and letters to third parties generally are not acceptable. >> Letters must be typed or e-mailed. >> Letters must conform to good taste, not be libelous and not involve personal attacks on other persons. >> All letters are subject to editing, and become the property of the Mississippi Business Journal. >> Letters can be sent to The Editor, The Mississippi Business Journal, 200 North Congress, Suite 400, Jackson, MS 39201, delivered to the newspaper during regular business hours or e-mailed to editor@msbusiness.com. They may also be faxed to Ross Reily at (601)-364-1007.

See WELFARE, Page 7

» CORRECTIONS » An article in the Aug. 8, 2014 issue incorrectly reported the share of the U.S. egg market held by Jackson’s Cal-Maine Foods. The correct share is approximately 23 percent, according to Cal-Maine.

The Mississippi Business Journal takes seriously its responsibility to provide accurate information, and will correct or clarify articles produced by the editorial department if we have made an error or published misleading information. The correction will be placed in the perspective section.

If you see inaccuracies in Mississippi Business Journal news stories, please report the mistake via e-mail at editor@msbusiness.com.

PERSPECTIVE

August 22, 2014 I Mississippi Business Journal

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» WHAT YOU’RE READING

» RICKY NOBILE

Here are the most-read stories on msbusiness.com from Aug. 12 Aug. 19.

1. Mississippi State athletics unveils Dudy Noble Field master plan 2. Officials set hunting dates for birds; expands dove season 20 days 3. TIM MASK: TEDx could be big for Jackson 4. Retired judge to hear McDaniel’s challenge of primary loss 5. Lawmakers write letter to SEC chair over Stanford Ponzi ruling

WELFARE

»PERCOLATING WITH BILL

Hateful ‘aginers’ profane Golden Rule

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kay. The sayings of George Washington, Thomas Jefferson and even Ronald Reagan about civil society mean little to you.

So, hear the words of Jesus, “Do to others as you would have them do to you” (Luke 6:31) and “So in everything, do to others what you would have them do to you, for this sums up the Law and the Prophets” (Matthew 7:31).

Our schools used to teach this concept to children as the “golden rule.” It is the moral law, the rock, upon which civil society and, indeed, civilization are built.

It can be found in all major religions and enlightened philosophies: “What is hateful to you do not to your fellowmen. That is the entire Law: all the rest is commentary. Go and study it.”— Talmud, Shabbat.

“This is the sum of duty (Law): Do naught unto others which would cause you pain if done to you.” —Mahabharata 5:1517.

“Do not unto others what you would not have them do unto you.” —Analects 15:23.

“Hurt not others in ways that you yourself would find hurtful.” —Udana-Varga 5:18.

“We should behave to our friends as we would have our friends behave to us.” —Nicomachaen Ethics.

“Do ye enjoin Right Conduct on the people and forget (to practice it) yourselves. And yet you study the scripture? (Law).

Will ye not understand?” —Al-Qur'an 2:44.

“No one ought to harm another in his life, health, liberty or possessions.” —Second Treatise of Government.

“So act as to treat humanity, whether in thine own person or

in that of any other, in every case as an end withal, never as means only.” —Fundamental Principles of the Metaphysic of Morals.

These quotations span from 1250 BC to 1795 AD. They represent Judaism, Hinduism, Confucius, Buddhism, Aristotle, Islam, John Locke and Immanuel Kant, in that order.

They are timeless, transcendent teachBill Crawford ings all should hear and obey. They apply to each of us individually, to our families and associations, our businesses, and to our politics and government.

Yes, our politics.

Hateful messages spewed by the “aginers” in both parties are uncivil, irreligious, and immoral. To be clear, they are unChristian and profane the golden rule.

They are also unpatriotic.

Even a novice student of our Constitution knows it represents mankind’s best effort, so far, to incorporate moral law into government.

Right after Jesus preached the golden rule to his disciples, he said, “Therefore everyone who hears these words of mine and puts them into practice is like a wise man who built his house on the rock…But everyone who hears these words of mine and does not put them into practice is like a foolish man who built his house on sand.” —Matthew 7:34-36.

Hateful aginers build on sand. Wise patriots build on rock.

Bill Crawford (crawfolk@gmail.com) is a syndicated columnist from Meridian.

Continued from Page 6

The new law says applicants for Temporary Assistance for Needy Families must answer a questionnaire and then take a drug test if their answers suggest possible drug abuse. Those who test positive would undergo treatment before they could receive cash assistance. If a person tests positive for drugs after receiving treatment, the TANF assistance would end.

Benefits also could be taken away from any adult applicant who fails to follow any requirement, such as showing up for drug testing.

Republican Gov. Phil Bryant said drug testing is designed to help people who are "trapped in a dependency lifestyle."

Advocates for the poor say it's not clear how someone with a very low income would pay for drug treatment. They say expenses might be covered by Medicaid for some people, but not all.

The Department of Human Services held a public hearing July 22 to collect people's responses to the proposed administrative rules. The agency revised the rules after the Mississippi Center for Justice and the American Civil Liberties Union, among others, raised concerns about the possibility of children in one of the poorest states in the nation losing welfare coverage.

Some advocates also said poor people could be hurt by false positive drug tests.

VIEWS

Continued from Page 6

situation that will only get worse with time.

These areas are the foundation of any progress the state hopes to make, and it’s time to shore them up, not reduce the state’s ability to make the investments that will pay off in an improved economy for everyone in the future.

If it could be demonstrated that a state tax cut would unleash such a burst of economic activity that it would actually produce more revenue in the long run, there might be an argument for it. But any state tax cut is highly unlikely to have such an impact.

If Mississippians’ overall tax burden were especially burdensome, there might be justification for a tax cut, but it’s not.

What we’re left with is making voters happy, and that’s an easy thing to do by cutting taxes. But easy is not the same thing as prudent and responsible.

Shoring up vital state services in the wake of an improving revenue picture should be the Legislature’s goal in 2015. It might not be the best way for politicians to fend off Republican primary challengers, but it’s clearly in the state’s best long-term interests.

— Northeast Mississippi Daily Journal

8 I Mississippi Business Journal I August 22, 2014

Kemper goes online burning natural gas KEMPER COUNTY — Mississippi Power Co. says a key part of its $5.5 billion Kemper County power plant is operational.

The unit of Atlanta-based Southern Co. announced last week that it has put three power generating turbines into commercial operation burning natural gas piped to the east Mississippi plant. It comes even as Mississippi Power completes the permanent fuel source, a part of the plant that will turn lignite coal into synthetic gas.

Vice President of Generation Development John Huggins said starting the turbines now is required by accounting rules and will allow Mississippi Power to capture tax benefits while providing power to customers.

“It’s ready to serve the customers, it is a low-cost energy source for our customers, we have the summertime peak season demand that it’s supporting, plus we’ll capture its share of the tax benefits,” Huggins said in a phone interview.

Right now, while burning natural gas, the plant will be able to send out about 700 megawatts to the grid. That will fall to 582 megawatts when the company starts using some of the power to gasify coal and extract carbon dioxide.

While it’s burning natural gas, the plant is expected to run often during the hot summer months, but less at times of year when power

SPORTS BUSINESS

GOLF ranks state’s courses; Fallen Oaks, Dancing Rabbit in top 100

Mississippi Power Co. says a key part of its $5.5 billion Kemper County power plant is operational.

demand is lower. What Mississippi Power calls Plant Ratcliffe will displace some of the company’s more expensive generators of power, Huggins said, although he didn’t specify which plants are most likely to be sidelined.

The company built an $11 million, 6-mile natural gas pipeline to the rural site because it always planned to use natural gas to test and start the turbines. Even when the company is making synthetic gas, it plans to use natural gas to start and stop the turbines.

Gasifying coal and extracting chemicals are what’s made the plant so expensive. Critics have said Mississippi Power should have skipped those parts and just built a conventional natural gas plant.

But the company has said using coal is better because it guarantees a low-cost fuel source not subject to market fluctuations like natural gas.

“Kemper was chosen as the best solution to meet customers’ needs because of the company’s need for fuel diversity,” spokesman Jeff Shepard wrote in an email. “Lignite will complement our existing use

of natural gas and coal as power generating sources.”

Mississippi Power estimates bonus depreciation tax rules that allow the company to write down the value of the investment more quickly if it goes into service this year will save customers about $60 million over the life of the plant. It also says plant operators will benefit from more time controlling operations.

The company’s 180,000-plus customers from Meridian to the Gulf Coast are paying 18 percent higher rates to pay for Kemper. Shepard said there will be no further rate impacts from the unit starting service.

The Mississippi Public Service Commission ordered the company on Aug. 5 to file further analysis on the costs and benefits of running the plant now. Shepard said Mississippi Power expects to file those documents by the end of the week.

— from staff and MBJ wire services

AROUND MISSISSIPPI — Fallen Oak and Dancing Rabbit Golf Club/Azaleas have been ranked No. 30 and No. 32 respectively on GOLF Magazine’s “2014 Best Courses You Can Play” in America – a biennial list of 100 public-access courses.

Using a team of national course raters, GOLF Magazine recognized five Mississippi courses overall in its “2014 Best Courses Near You” by state list. They are: No. 1: Fallen Oak in Biloxi No. 2: Dancing Rabbit Golf Club/Azaleas Course in Choctaw No. 3: Grand Bear Golf Course in Saucier No. 4: Dancing Rabbit Golf Club/Oaks Course in Choctaw No. 5: Shell Landing Golf Club in Gautier Fallen Oak is open exclusively to guests of the Beau Rivage Resort & Casino. The Tom Faziodesigned course sits adjacent to the DeSoto National Forest and each spring plays host to the Mississippi Gulf Resort Classic.

Dancing Rabbit’s Azaleas and Oaks courses are amenities of the Pearl River Resort, which is owned and operated by the Mississippi Band of Choctaw Indians.

Grand Bear Golf Course is an amenity of Harrah’s Gulf Coast Casino, Hotel and Spa. The Jack Nicklaus Signature Course features deep bunkers, secluded fairways and manicured greens.

— from staff and MBJ wire services

An inspiring, instructive look at a value-investing great ne word sprung to mind repeatedly as I read Investing the Templeton Way: courage. Simply put, courage defined the life and times of the renowned global value investor Sir John Templeton, and reading about how he approached investing left me both impressed and inspired.

Born in 1912 in the small town of Winchester, Tennessee, Templeton would go on to pioneer the idea of global investing.

He was exceptional from the word go, managing to attend (and largely pay for) college at Yale. He also became a Rhodes scholar, and traveled extensively in Europe, the Middle East, and Asia.

This insatiable curiosity and drive would lead him to work hard throughout his long career to uncover the best investment bargains worldwide. Well before U.S. investors were willing to look overseas for undervalued companies and markets poised to prosper, Templeton was actively researching and buying shares in foreign countries.

Templeton was focused first and foremost on uncovering

O

» Investing the Templeton Way: The Market-Beating Strategies of Value Investing’s Legendary Bargain Hunter

By Lauren C. Templeton and Scott Phillips Published by McGraw Hill $27.95 hardback

bargains. By allowing himself to look outside the U.S., he was able to profit handsomely when U.S. stocks were overvalued.

He didn’t place needless geographical limits on himself. He simply followed his research into the best places, and as a result, built a fortune by being brave enough to do things most investors would find unthinkable.

For instance, he recognized after World War II that Japan was transforming itself into a global powerhouse. This was not the view held by the majority at the time, given the country’s WWII defeat. But he presciently saw the future for Japan and began investing in the 1950s in the country –

and, just as importantly, he got out after everyone else caught on to the Japanese story in the 1980s, moving his money to bargains elsewhere.

One of the greatest lessons from Templeton can be found in this quote from him: “If you want to have a better performance than the crowd, you must do things differently from the crowd.”

That sounds a lot easier than it is, though. It takes courage to build a career by doing what others are too scared to do.

Written by his great niece, Lauren Templeton, and her husband, Scott Phillips, who are exceptional investors in their own right, Investing the Templeton Way provides actionable advice for ways to unlock your own bargain-hunting tendencies as an investor. As counterintuitive as this sounds, learning about Sir John Templeton’s ability to think independently as an investor can improve your own ability to do so.

— LouAnn Lofton, mbj@msbusiness.com

Templeton was focused first and foremost on uncovering bargains.

August 22, 2014 • MISSISSIPPI BUSINESS JOURNAL • www.msbusiness.com

AN MBJ FOCUS:

TECHNOLOGY » MISSISSIPPI PROFILES

by Alan Turner Alan Turner

The ‘Internet of things’ is focus of Camgian head

TURN THE PAGE TO MEET MORE OF OUR

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recently had the opportunity to meet and get acquainted with Gary Butler, CEO of Camgian Microsystems, based in Starkville.

Gary paints a fascinating picture of the “digital future.”

Camgian has emerged as a leader in developing advanced information technologies and solutions, from ultra-low power processors to advanced sensing platforms and innovations that are enabling a new generation of high performance wireless information technologies and products for the defense, security, industrial and commercial markets.

Born and raised in Pearl, Gary’s journey has taken him to many places and directions. After earning advanced degrees from Tulane and Vanderbilt, he focused on technology, signal processing, sensor networking, and other aspects of the high tech world. Eventually, being an entrepreneur at heart, Gary decided to start his own company, and hasn’t Butler looked back.

Today, he has a staff of 33 people, all of whom are based in Mississippi. He does advanced work for the Department of Defense and other clients, and these days, the company is focused on building a Commercial Division with the dedicated efforts of CMO Ravi Raju, who also carries the title of general manager of commercial programs, and COO John Reece, who served for many years with IBM. Gary is very much focused on the “Internet of things,” which he defines as the “connection of assets,” whether business, home or mobile.

“This is truly the growth market of the next five years and beyond,” he said. “Think about it — so many devices these days are digital. That includes devices in the home such as appliances, lighting and so on. It includes automobiles, trains and aircraft. It includes the increasingly sophisticated mobile devices that we all carry. The Internet of things is all about bringing efficient connectivity to those devices.”

What kind of growth market does he foresee?

“We could be looking at 50 billion connections by 2020,” he said,” and that could be just the beginning.

» MISSISSIPPI LEADERS

by Martin Willoughby Martin Willoughby

State roots key to founder of Edge Theory

M

Just think about this as the effective communication between hardware and software.”

Gary sees this as having the potential of a new “industrial revolution,” a truly effective way to improve management of systems and communications.

He bills his company as one of the “leading upstarts” in this move to the future, and says his objective is to build a “global brand.”

“We’re focused on building a great operation right here in Mississippi,” he said. To him, that means a company that steadily expands and provides more high-paying jobs in the Magnolia State.

“This is going to be a game changer, and we intend to be a part of it,” he said.

What does he like about doing business in Mississippi?

“I’d have to say we have a really great work ethic in this state,” he said. “Certainly the folks who work with us are highly committed and team-oriented. Secondly, the state is very supportive of what we do, and I know that’s not the case in many other states.”

He sees the “Internet of things” as having a major imSee

BUTLER, Page 13

ississippi, the home of literary greats such as Faulkner, Morris and Welty, arguably has had more than its fair share of people talented with the gift of words.

Joe Stradinger, founder and CEO of Edge Theory, and I recently discussed this cultural history. We joked that perhaps the soil is richer here in Mississippi. Joe’s company is tapping into this tradition in a very exciting and unique way. They are marrying innovative technology with the rich Southern tradition of conversation to achieve measurable results for companies in the realm of social media marketing.

Joe grew up in the Mississippi Delta and earned his accounting degree from Mississippi College before traveling the world as a business consultant with Arthur Anderson.

In 1998, he started Musicforce.com, an online Christian music site, which was an instant success and was acquired

by Gaylord Entertainment shortly after Stradinger its launch. After working for Gaylord Entertainment and launching Gaylord Digital, Joe went on to success in real estate projects before returning to his knack for technology innovation.

As social media was just ramping up, Joe saw its potential and was on the leading edge of thinking about how to apply it to help businesses grow.

He consulted with companies like Viking Range and Home Away on how to authentically engage and connect with customers.

Joe’s research and work in this field led him to launch Edge Theory (formerly known as Leadify) in 2012.

Joe noted, “I realized that the true power of social media is not in likes, follows or favorites. Instead, social media has the greatest impact and the greatest return from the indexing of content that occurs daily across hundreds of search engines and content aggregators, effectively raising authority and disseminating content to thousands of people who will never like nor follow a See

STRADINGER, Page 13

10 I Mississippi Business Journal I August 22, 2014

tech·nol·o·gy — noun \tek-’nä-l -je\ : the use of science in industry, en e

Joe Stradinger

Gary Watts

Lakeisha Williams

Founder & CEO Edge Theory

Founder & CEO Broadband Voice

Assistant professor Bagley School of Engineering

Internet browsers provide a search engine, but at Ridgeland’s Edge Theory, formerly Leadify, Mississippi native Joe Stradinger has introduced social media to the “find engine.”

His platform creates conversation for business and deploys messages on social networks, then provides intelligence back to businesses.

When Gary Watts realized the future importance of telephony rooted in hosted VoIP solutions, it led him to start Broadband Voice to provide Voice over IP products and services for small to medium-sized businesses. His company has become one of the fastestgrowing VoIP technology companies in the Southeast.

A biomedical engineer at Mississippi State University, Williams researches ways to protect people from serious injuries and death — such as what happens to soldiers' legs when their vehicles run over explosives, and how to improve football helmets to better prevent concussions and other injuries.

Hartley Peavey

David Palmer

David Moore

Founder & CEO Peavey Electronics Corp.

Owner Synergetics

Founder, president & CEO Navagis

In the last 30 years,Hartley Peavey has expanded his musical empire into the production of keyboards and drum instruments, with manufacturing facilities spread over several continents. His development of guitar amplifiers had a profound impact on the music industry worldwide, and put his hometown Meridian on the musical map.

In addition to operating Synergetics, a nationwide information technology services consulting firm, for the last 22 years, David Palmer also has the largest solar array in the TVA area on the roof of his Starkville headquarters. Synergetics provides a full-range of network support and works with K-12 schools in Mississippi and Alabama.

David Moore knows maps.

While at the Army Corps of Engineers where he created Corpsglobe, one of the largest Google Earth Enterprise installations outside of Google. In 2008 he founded Navagis, which helps create operating maps to visualize critical information. He’s also spent time working with Google.

Joe Lichtenhan President & CEO Hybrid Plastics

Hybrid Plastics operates a chemistry and sales support facility in California, while polymer support and development, bulk production and corporate headquarters are in Hattiesburg. Joe Lichtenhan’s firm has also developed an association with one of the top polymers schools in the nation — the University of Southern Mississippi.

Hu Meena President & CEO C Spire

Meena has served to notice to the telecom sector that Ridgeland-based C Spire intends to be aggressive and innovative in the digital market. He is guiding an effort to build a fiber optic network to deliver ultra highspeed Internet to the home.

Last year, the trade publication Fierce Wireless listed him the 20th most powerful person in the U.S. wireless and wireline.

When examining Mississippi’s contributions to the technology world, there are tech veterans whose works are still being felt, and there are young minds who are bringing new ideas. The Tech 21 is the Mississippi Business Journal’s take on some of the top contributors to technology in Mississippi and the world.

August 22, 2014

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Mississippi Business Journal

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stry, engineering, etc., to invent useful things or to solve problems

ibuare being are he Misome of n Mis-

Cameron Arcemont

Jim Barksdale

Jill Beneke

Joel Bomgar

Gary Butler

Owner Arc Technologies

Chairman & president Barksdale Management

President & CEO Pileum Corp.

Founder & board chairman Bomgar

Chairman and CEO, Camgian Microsystems

Arc Technologies was formed in 2004 in Ridgeland, and Cameron Arcemont is the programming brain behind its signature product “Eight,” a paperless system that incorporates federal requirements in a new-hire software. Forms are submitted electronically, and supervisors and employees can follow their forms throughout the system.

Jim Barksdale’s IBM sales job after college at Ole Miss turned into decades of managing corporations, including being the CEO of Netscape from 1995-1999, when it was acquired by AOL. After Netscape, he founded The Barksdale Group, an investment and advisory group created for the purpose of helping Internet service companies.

After working in the financial services industry for more than 20 years — where, among other responsibilities, she was in charge of strategic planning of technology deployments at Deposit Guaranty Bank — Jill Beneke formed Pileum Corp. in 2001.

Pileum designs technology solutions to help clients achieve their business objectives.

Joel Bomgar’s creation, the Bomgar Box, enables support pros to securely access and control remote computer systems and devices anywhere in the world. At 23, Bomgar founded the company in 2003.

Today, it has more than 8,000 customers and annual sales revenue of more than $50 million.

Bomgar employs more than 200 people, most in Ridgeland.

Since its founding by Butler in 2006, Camgian has achieved multi-million dollar annual revenues and has been recognized for its products in the machine-to-machine networking market. Previously, Butler was at BBN Technologies where he led development programs for low-power sensor networks and advanced signal processing.

Fred Haise

David Goldman

Gerard Gibert

Hannah Gay

Mayo Flynt

Board of directors Infinity Science Center

Founder & president Ideal Software Systems

Founder & CEO Venture Technologies

Associate professor UMMC

President AT&T Mississippi

Any Mississippian who successfully returns a damaged Apollo 13 spacecraft from outer space has earned a spot on the Tech 21 list. After the near-disaster in 1970, Biloxi native Fred Haise has stay in the space program, from commanding test flights of the first Space Shuttle to helping get the Stennis Space Center visitor center off the ground.

David Goldman grew up in the family entertainment center industry in Meridian, then founded Ideal Software Systems in 1984 as part of the family business.

Ideal Software is used in entertainment centers, water parks, zoos, retail stores, museums, laser tag facilities and theme parks. Ideal Financial Software also serves financial markets, most notably rent-to-own.

Gerard Gibert is an entrepreneur and technologist who specializes in the business application of cloud computing.

Venture, which was founded in 1986 and has locations throughout the South, owns and operates a Tier 3 data center in Jackson that provides a comprehensive suite of cloud services for thousands of customers.

Hannah Gay’s revolutionary treatment of HIV in a newborn in 2010 brought national attention to Gay and UMMC when it became public in 2013. While it appeared the child had been cured, the disease resurfaced this summer. Her breakthrough techniques, however, are one more piece to the puzzle of trying to cure HIV.

Flynt became president of AT&T in Mississippi in 2007 and has spent much of his tenure expanding the company. Between 2011 and 2013, more than $1 billion was invested in its wireless and wired networks in the state. He is responsible for AT&T’s operations in Mississippi including external affairs, regulatory affairs and public policy.

Eric A. Hill COO / Sr. System Architect Sportsnax

Eric Hill and his partner, Daniel Payne, developed Sportsnax after watching people using smart phones while standing in concession lines at an MSU game. Hill is responsible for the IT infrastructure.

Previously, he founded HillTech, a web development and management company. He is also entrepreneurship program coordinator at the office of Entrepreneurship and Technology Transfer at MSU.

Tony Jeff President & CEO Innovate Mississippi

Innovate Mississippi is a nonprofit that drives innovation and technology-based economic development for the state. Before becoming president, Tony Jeff was vice president and helped companies that raised more than $130 million in private equity financing. He speaks regularly on emerging trends and strategies in technology and innovation commercialization.

Stephen Johnston VP / Corporate development Itron

While at SmartSynch, Stephen Johnston was named one of the most influential executives in the smart grid industry, and his company was named one of the 10 firms to watch (globally). In 2012, Itron acquired SmartSynch in a deal reportedly valued at $100 million. At purchase time, SmartSynch’s customers included nine of the Top 10 utilities in North America.

11

TECHNOLOGY

12 I Mississippi Business Journal I August 22, 2014

A down-to-earth mission  Mississippi Enterprise for Technology is Stennis’ connection to the business community

By LISA MONTI mbj@msbusiness.com

The Mississippi Enterprise for Technology, now in its 20th year, has a high-tech

address at Stennis Space Center but a down-to-earth mission. “You can bill us as the business connection at Stennis to the business community,� said Charlie Beasley, MSET’s president and CEO. “We focus on

different industries that either are emerging in the region or are already strong but have more opportunities, particularly aerospace, IT and marine science/technology.�

The private, non-profit MSET facili-

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tates economic development by leveraging the resources of the space center, the state and the region to promote business opportunities among public and private entities.

One timely example of how MSET fosters development is Launching Connections, a business to business expo next week in Jackson that’s being put on by the State of Mississippi and NASA. The goal is to have participants find business opportunities at Stennis and the other NASA centers in the Southeast that are involved in major programs including the Space Launch System. “We brought the idea and concept to the Mississippi Development Authority,�

Beasley said. MDA is the host for Launching Connections and MSET is helping recruit companies and sponsors to participate. “We will be there to meet the companies we haven’t met before and offer them our services to help them do business with NASA. That’s what we’re all about,� he said.

The event will give businesses the rare chance to meet face-to-face with NASA representatives and their prime contractors from four NASA centers: Stennis, Kennedy Space Center, Johnson Space Center and Marshall Space Flight Center.

A welcoming reception will be hosted at the Mississippi Museum of Art from 6 p.m. to 7:30 p.m. and the expo at the Jackson Convention Complex is Aug. 27 from 7 a.m. to 4 p.m.

The expo will present business opportunities with NASA that run the gamut of NASA, Beasley said. One NASA employee from Huntsville said “he buys everything from pencils to rockets.�

Beasley got the idea for the event during a similar expo in Mobile hosted by Marshall Space Flight Center in Huntsville and the Mobile Chamber of Commerce. “It brought NASA to a market that doesn’t have a NASA center,� Beasley said. “It was a new audience and a different set of industries and companies that NASA is always looking for.�

As soon as the Mobile networking event ended, MSET started planning a version in Jackson. “Jackson is the main metro area in Mississippi and it is a new market for NASA. We contacted MDA and asked if they wanted to be the local host and they took the ball and ran with it,� Beasley said.

Another upcoming event closer to MSET’s home base is the next general meeting of the Stennis Business Consortium on Sept. 9. The consortium is made up of MSET, the Louisiana Technology See

MSET, Page 13

TECHNOLOGY MSET

Continued from Page 12

Transfer Office, the federal agency procurement specialists at Stennis and the procurement teams who work for the main contractors at the space center. Together they exchange information with small busi-

STRADINGER

Continued from Page 9

business’s social media accounts.”

He continued, “Companies pursuing authentic conversation (beyond the overt repetition of self-promotion) can connect with thousands of people before they ever think about a company or search for a product or service. Every day, a business can connect consumers with their interests.”

He contrasts traditional search engines where people already know what they are looking for with what he does which he describes as a “Find Engine.”

Interestingly, he helps companies connect with customers before they are even customers. Joe calls these “pre-customers.” His company does this by helping clients create and engage in conversations with these pre-customers around their passions and connecting them with his client’s location, features, & unique value.

Former Netscape CEO Jim Barksdale recognized the potential of this new company and now serves on the board of directors. The company is quickly scaling its business and now has offices in Boston, Dallas, Los Angeles and New York in addition to their headquarters in Jackson.

They have clients on three continents which include well-known brands as Neiman Marcus, Match.com, Mayo Clinic and Travelocity as well as Mississippi-based Trinity Apparel, University of Mississippi Medical Center and Mis-

August 22, 2014

nesses about what their requirements are now and in the future.

Beasley said all NASA centers have a point person who makes sure the agency reaches their goals in contracting to small business. “For pretty much every contracting opportunity there’s a requirement that a certain amount of business has to go to

Up Close With ... Joe Stradinger Title: Founder & CEO, Edge Theory Favorite Books: “In recent years, Macomb Gladwell’s David and Goliath and Laura Hillenbrand’s Unbroken” First Job: “Dalhart, Texas, ranch hand (mending fence posts and branding cattle)” Hobbies/Interests: “Fly fishing, running, boating (all with my family!)”

sissippi College.

I am always on the lookout for great companies on the rise in Mississippi, and I was excited to learn of Edge Theory’s aggressive plans for growth. Joe’s energy and passion are contagious.

In addition, I was struck by his pride in his Mississippi roots. As he travels the globe evangelizing for his company and this innovative marketing model, he is often asked how he could create a company like this in Mississippi as opposed to the normal technology centers like San Francisco, Austin or Boston.

When he explains Mississippi’s history and knack for the art of conversation, he is able to say, “There is no place I would rather be.”

small business,” Beasley said.

The consortium helps to spread the word about government funding cycles and forecasts for their needs from small businesses.

It also answers questions small business owners may have about doing business with the government and its contractors.

At the Sept. 9 meeting, there will be an

BUTLER

Continued from Page 9

pact in many sectors, not least of which is the world of health care.

“This can provide real time face to face and diagnostics for doctors and medical personnel,” he said. “That will clearly have the potential to improve the level and effectiveness of health care overall.”

Among the core values he has established at Camgian are the concepts of “teams and peer-to-peer accountability, a no quit mentality, and playing to win.”

“I want our employees to be entrepreneurial in their outlook,” he said.

What are some of the challenges in building a high-tech company in Mississippi? From Gary’s point of view, it can “sometimes be tough to recruit the right people, since we’re in competition with all of the high-tech centers in North

I

Mississippi Business Journal

For more information, contact Laurie Jugan at (228) 688-1192 or email ssc-mset@mail.nasa.gov.

America. The right people are critical to our growth.”

He does see steady growth in technology in Mississippi, and believes there is a bright future for the state in this respect.

“We do have a great quality of life to offer here,” he said. “When people come, they tend to stay.”

Asked his advice for budding entrepreneurs, Gary said “First, you must do what you love, and follow your passion. Second, don’t quit! There will be roadblocks along the way, but you have to keep on point.”

Judging by the growth and success of Camgian, Gary has done just that.

For more information, the company’s website is www.camgian.com.

Contact Mississippi Business Journal publisher Alan Turner at alan.turner@msbusiness.com or (601) 364-1021.

www.fcci-group.com

“EXCITING TECHNOLOGY ISN’T JUST IN SILICON VALLEY. WE ARE BUILDING THE NEXT GENERATION OF THE INTERNET RIGHT HERE IN MISSISSIPPI.”

CUSTOMER FOCUS. PERSONAL SERVICE. “At FCCI, we are here for our agents and our insureds for the long term, and we live by our values: loyalty, integrity, vision, excellence and service. I’m proud to work for a company that believes in ‘doing what we say we’ll do’ and I strive to do that for my agents and their clients.”

Babs Fowler Underwriting Specialist FCCI Insurance Group Gulf Coast Region Ridgeland, Miss.

Now, let’s talk about your business.

Named by Inc. Magazine as one of America’s fastest growing private companies, Starkville, Mississippi based Camgian Microsystems is a rapidly growing leader in the $19 trillion Internet of Things market.

From force protection to business optimization, Camgian’s work is making an impact all over the world. Learn more at www.camgian.com.

General liability t Auto t Property t Crime Workers’ compensation t Umbrella Inland marine t Agribusiness t Surety Coverage available in 18 states. © 2014 FCCI

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update on contract activities at Stennis, programs within the Hancock County Port and Harbor Commission, SAIC’s work for the National Center for Critical Information Processing and Storage, among other topics.

800-226-3224

Martin Willoughby is a business consultant and regular contributing columnist for the Mississippi Business Journal. He serves as Chief Operating Officer of Butler Snow Advisory Services, LLC and can be reached at martin.willoughby@ butlersnow.com.

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14 I Mississippi Business Journal I August 22, 2014

SPECIAL REPORT: ECONOMIC DEVELOPMENT

Cities learn value of partnering for retail

By TED CARTER ted.carter@msbusiness.com

Mississippi’s mayors and county supervisor chairs relish putting on hardhats and grabbing a shovel for groundbreakings on new retail developments.

But to get to that point, communities are learning they must shape partnerships with developers instead of depending on a developer’s determination to walk over hot coals in bare feet to get a project built.

Cities and counties have come realize that developers of retail properties have plenty of choices of where to go, said Monte Luffey, a partner in Southeast Commercial Management’s Biloxi office and state director for the Alabama/Mississippi chapters of the International Council of Shopping Centers.

The incentives the partnerships with developers involve are not “handouts,” Luffey said in an interview. Typically, the incentives cover the cost of road work, signalization, drainage improvements and utilities extensions – all of which enhance community infrastructure, he said.

“Cities, towns and counties by putting in the road work can create value for themselves as well as their communities. They make property that is hard to get to more developable,” he added.

Tax Increment Financing districts, or TIFs, are the most commonly retail development incentives used in Mississippi, Luffey said. “They are also the simplest form for both communities and developers.”

TIFs derive their revenue from increased taxable valuations created by the improvements undertaken by both the community and the developer. Bonds backed by the TIF cover the cost of the improvements.

Business Improvement Districts, or BIDs, are starting to catch on in Mississippi as well, according to Luffey.

With a BID, property owners pay a set percentage of tax that goes exclusively for public improvements in the district, he said.

Luffey said he expects bids to become more prevalent on the Mississippi coast where business owners are still trying to recover from Katrina damage. Jackson has had a BID for its central business district for several years, as has Hattiesburg.

Developer Eric Seitz, principal of the Dallas-based Seitz Group, has done Mississippi commercial projects from Hattiesburg to Olive Branch. TIFs and other incentives that accompany partnerships with cities and counties have been hugely important in the viability of the projects, Seitz said in an interview. ”Without those things the retailers I work with wouldn’t be coming to the market.”

“It is really just infrastructure costs,” he said. “Most of them are set out pretty clearly by the state on what you can be re-

Special to the Mississippi Business Journal

Hattiesburg’s midtown is slated for a multi-year transformation through redevelopment envisioned in the “Midtown Master Plan.”

imbursed for.”

The projects generally are large in scope, Seitz said, because small ones seldom create the bump-up in taxable valuation a TIF must have to cover costs of the improvements.

Projects that build from the ground-up are the easiest when using a TIF, according to Seitz. “It is going to create something out of nothing,” he said.

A redevelopment, on the other hand, often involves rehabbing or demolishing older structures. “It is a lot more difficult and harder to quantify,” he noted, and thus less impressive to the public officials who must be persuaded to participate in the TIF partnership or whatever public-private arrangement is used.

Further, a redevelopment may need several incentive arrangements to succeed, Seitz said.

“You may need help with acquiring parcels and tearing some things down,” he added. “You’ve got to have a lot of different buckets to dip into to make it happen.”

Seitz said he is attempting a project in Madison that involves a large tract of land for which he is looking for TIF and Planned Investment District, or PID, help, “When you have to build these big retention ponds you really have to have some help,” he said.

With a PID, a property owner pays for improvements such as roads and drainage and is later rewarded by selling the property to a developer at a higher price.

What Seitz says he looks for in working with local governments are “very practical

solutions to big problems.” And local governments, he said, are looking “to the private side to create these roads and drainage.”

The only way it can work is to have a project with significant building density and property revenues from a TIF or PID to help with the costs, according to Seitz.

Retailers are following population patterns, he noted. That’s why he is also doing projects in Olive Branch and D’Iberville and remains active in Madison, a place he said retailers “want to be.”

Though a planned Target store for Madison is on hold as the national retailer tries to fix problems relating to hacking of its debit card system, other retailers are looking around the city as well as Rankin County’s Flowood, according to Seitz.

He said he will soon announce a project on a “very prominent” 38-acre parcel in Madison that will involve construction of big box stores for a national sporting goods retailer and a national crafts retailer.

He also has done a couple of projects in Hattiesburg, one of which is anchored by a Target and another by an Academy Sports.

TIF money was key to both, he said.

“Basically, it made money available to provide traffic lights and roads and to defray some of the costs of utilities which had not been extended.”

Hattiesburg has been a pace setter of sorts for the use of tax increment financing and will rely on it to accomplish the ambitious “Midtown Master Plan,” a commercial redevelopment that will cover 15 to 20 city blocks and involve more than 70 property owners. “It is going to be trick,” said

Pattie Brantley, Hattiesburg’s director of Urban Development.

“We have not done a TIF to this level,” she said. “Normally it is a single developer and land that is to be developed.”

The Midtown project takes in the University of Southern Mississippi and the commercial blocks across Highway 49 from it.

Many of the buildings that will come down with the redevelopment are from the 1950s, ‘60s and ‘70s, Brantley said, describing them as “typical baby-boomer stomping grounds, hamburger places and the like.”

Estimates are that the target district anchored by USM, Forest General Hospital and the Hattiesburg Clinic each weekday draws 25,000 students and visitors to doctors’ offices and shoppers. “It is a high-density area,” Brantley said.

The Midtown plan reflects a vision of an earlier American downtown, laid out with wide sidewalks and buildings up to the property lines, she said. Many buildings will be storefronts with residential space on upper floors along with a mix of apartments, cottages and single-family homes.

“It really is a neat plan,” she said. “It has codes and regulations to go with it.”

Brantley said she expects the grandfathering of current uses likely will mean that completing the midtown redevelopment will take 20 to 25 years. In the meantime, Hattiesburg is waiting for developers and owners of existing properties to come and redo the district in accordance with the midtown plan, she said.

When they come, the TIF will be there to help.

August 22, 2014

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SPECIAL REPORT: ECONOMIC DEVELOPMENT Jackson retail sales analysis yearly comparison

Hinds County retail sales analysis yearly comparison

MDA numbers help with cities’ retail pitches

By TED CARTER ted.carter@msbusiness.com Mississippi communities looking to land a big retailer such as Walmart or Target often give the Mississippi Development Authority a call.

That is where they will get the retail sales numbers for their area broken down to nearly a dozen categories. The numbers, through “pull-factor” calculations, also give an idea of whether the buyers live in the community or come from outside it to make the purchase.

The numbers, based on sales tax collections, can show retailers where their opportunities lie. Cities and counties eager for a major retailer to come in are advised to be as thorough as possible in the information they present, said Joy Foy, director of the MDA’s Asset Development Division.

“Communities who are working to recruit retail and build up their retail sector can track their progress by getting the three years comparison report that we also can provide to them – this report allows you to see at a glimpse if sales are improving,” she said.

The yearly comparison analysis covers categories such as apparel & general merchandise, automotive, food & beverage, lumber & building materials, furniture & fixtures, miscellaneous retail, contracting, public utilities and recreation.

It also provides “pull factors” for specific localities and for categories of sales.

For example, a pull factor of “1” for Jackson reflects sales equivalent to all of the population of Jackson purchasing this product or service inside Jackson, Foy said.

“If the number is larger than 1, then the total population plus others are buying inside the city limits. Less than 1 means that people inside the city limits are purchasing those goods and services outside the city limits.”

Pull factors are just one of the things a community is going to have to show a retailer. “You’re going to have to show them your traffic counts and infrastructure,” Foy said.

Through the MDA, communities can find out which re-

Hinds County 2013 retail sales analysis

Charts courtesy of MDA

tailers are looking to expand and whom to pitch. The agency subscribes to a service that identifies the site selector specific retailers have for Mississippi. “This same service gives us daily listings of companies looking to expand – we get the name of the business, the area they are planning to expand into, the requirements needed to consider a site as desirable site,” Foy said.

Helping cities and counties learn the ropes of attracting re-

tail is a major part of the job of Foy’s MDA division. “Our role is more educational and technical than anything else,” Foy said. “Whatever a community is trying to do, we try to find the resources to help them and bring them together” with the resources.

Often, the resource is a commercial real estate professional or consultant, she said. “Those are the people who have the connections with the site selectors.”

16 I Mississippi Business Journal I August 22, 2014

INCENTIVES

Continued from Page 1

However, plenty more incentives remain for developers who want to team up with Mississippi’s city and county governments to bring in commercial growth. Jackson commercial development lawyer Ron Farris has made a mission ferreting out the incentives he says are scattered throughout Mississippi’s law code.

“I read it from cover to cover,” Farris said.

“My sole purpose was to find what exactly is in the tool box that I can use as an attorney to arm city officials and developers with the tools they might not know about.”

Many communities are using the provisions for things such as Tax Increment Districts, Planned Investment Districts and property-tax abatement to spur ground-up commercial development as well as redevelopment of aging commercial corridors. But from representing commercial development clients on projects throughout Mississippi, Farris has concluded many local leaders and their staffs have yet acquaint themselves with options open to them for creating commercial growth while providing needed public infrastructure such as streets, drainage and utilities expansions.

“The real problem I have seen is the absolute lack of understanding by city and county governments to know what tools they have.”

Many of the provisions designed to spur de-

velopment have their origins in Gov. Hugh White’s 1936 Balance Agriculture with Industry initiative.

White made sales tax exemptions one of the key sweeteners to draw economic development, a tradition that Gov. Phil Bryant continues today with his Farris Health Care Incentive Zone initiative.

Mississippi law allows local governments to designate certain industries and sectors as economic development entities “as long as they can make a finding” that the economic development projects are in the public interest, Farris said.

Localities use these to help with everything from hospitals and clinics to office parks, he added, but noted that too often they limit the incentives to getting industrial parks built.

“They don’t realize they could mark other parts of their city for economic development.

The authority is absolutely there.”

Here are some other local government incentive options Farris found in scouring the Mississippi Code: » Cities and counties can float bonds for improvements that assist private development. For instance, a covered downtown garage, Farris said. Or a utilities extension, he added.

“When we built the new Walmart in Hattiesburg we had to have eight-inch water mains installed. We were able to use a TIF

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(Tax Increment Financing) on the Walmart and the Lowes that was built at the same time,” he said, explaining that the increase in taxable valuation the water line brought covered the cost. » Cities and counties can establish economic development districts. Localities originally used these for industrial parks but districts can be extended beyond designated industrial parks, Farris said. » Cities and counties can join to form Rural Economic Districts, entitling them to issue bonds for infrastructure improvements backed by funds a TIF generates. The Mississippi Development Authority must approve establishment of the district. Creation of the district is authorized in the Regional Redevelopment Act. » Cities and counties in limited instances can issue bonds for public improvements without referendum approval. » Localities can use provisions of Mississippi’s Urban Renewal law for blight clearance and making improvements in central business districts, including redevelopment as well creation of off-street parking. » Several code provisions empower cities to deal with specific types of projects. » Cities and counties in some instances can cede certain surplus property, including raw land. An economic development benefit must be shown. » Cities and counties must specify “redevelopment” zones in the comprehensive land-use plans. » Cities and counties can designate areas for TIFs before having a potential developer.

“Just the presence of a TIF is in and of itself an incentive,” Farris said. “The developer doesn’t have to go through the time and expense of getting a TIF created and operated.”

Of the tools to use, none beats the tax increment financing, at least in Farris’ view.

“I don’t know of anything that works better,” he said of the mechanism used for funding public improvements needed for a commercial development.

Typically, as improvements make a designated property more valuable on the tax rolls, a set percentage of the increased tax dollars the property brings in is set aside to pay for the improvements. The developer borrows to pay for the improvements but can pledge revenue from the TIF. Some TIFs are funded through incremental sales tax rebates. Madison funds its TIFs exclusively through the rebates, Farris said.

“This is an entirely new dynamic to the developer. No money is coming out of the developer’s pocket with the sales tax rebates.”

In whatever form they take, TIFs are preferred by most developers over property tax exemptions, according to Farris. “They want TIFs because they feel it puts more money into their pockets” he said, though he noted TIFs do not always do that.

Redevelopment projects are where TIFs fall short, Farris said. Unlike ground-up projects on which property valuations can increase significantly, redevelopment projects start with a higher established valuation. Thus the increments are a lot smaller, Farris noted.

In a redevelopment, the increment is only

the increase in the value as a result of the project, he explained. “With a ground-up, you get the whole increase from the vacant land.”

For about the last 15 years, developers used TIFs primary for retail centers built from scratch. “It worked just fine,” Farris said, but added developer interest is moving to redevelopment. “They need to look at ways to use TIF financing to do redevelopments,” he said.

Farris said he began concentrating heavily on redevelopment around 2008, having witnessed a slowdown in construction of big box retail while noticing too much vacancy of retail space along commercial corridors.

“I recognized that communities have progressed by moving their business district from downtown,” he said. He cited a migration that today has left huge commercial corridors with vacancies and decay, including in upscale life-style centers.

“This is the new face of retail. Nobody is coming to fill it in,” Hence, the growing desire for making new starts along commercial corridors, Farris said.

Farris has worked with clients who have done seven or eight TIF projects in Hattiesburg. “Last year was my first one that was truly a redevelopment project,” he said, referring to the New Town Market redevelopment that took in re-use of the former University Mall and a large piece of previously owned by William Carey College.

“We ‘TIFfed’ the whole thing,” he said.

The former William Carey property on which a new residential project would go became the key to making the TIF work, according to Farris. “That was the ground-up development” that gave the larger – and much desired – tax increment, he said.

To benefit from the redevelopment era that is setting in, local governments must acquaint themselves with all the tools at their disposal, Farris advised.

Some communities, such as Ridgeland, are well ahead of the others, he said. “Ridgeland is going way past the cutting edge to use an overlay district and unique approaches to repair and upgrade” both commercial and residential areas, Farris added.

Others, such as Jackson, are letting the grandfathered status of deteriorating properties hinder commercial corridor redevelopment. “The city of Jackson is the poster child for letting properties just deteriorate.

You have to use the tools you need. You can force the owners of derelict properties to remove their properties.”

Whether new development or redevelopment, city officials and county administrators must dive into learning about all the options available to make the projects happen, Farris said. Mississippi’s universities could take an active role in educating the officials on public-private opportunities state law provides, he added.

In the meantime, Farris said he’ll keep doing what he’s been doing: Telling out-ofstate developers: “You are looking at starting at square one” with local officials. “I am going to have to go down there and educate every one of them.”

NEWSMAKERS Bryant appoints Henry Gov. Phil Bryant has appointed Kathy Henry of Brandon to serve as the newest member of the Mississippi Parole Board. Effective immediately, Henry replaces retired

Army Master Sgt. Clarence Brown of Yazoo City, who stepped down on June 30 after serving for more than eight years.

Henry holds a bachelor’s degree in English and a master’s degree in counseling psychology.

Kathy Henry She worked for 25 years as a public school English teacher and school counselor and served on the Juvenile Justice Advisory Committee for more than 20 years. She was originally appointed to the committee by Gov. Kirk Fordice. She was also named as Mississippi’s representative on the National Juvenile Justice Advisory Committee by Gov. Haley Barbour. Henry additionally served for eight years on the staff of former Congressman Chip Pickering, where her duties required her to work with the U.S. Department of Justice and the Mississippi Department of Corrections.

Firm adds Burnham, Burger Tammy Burnham has joined Ross & Yerger’s Energy Practice as an account manager.

She comes to the firm with over 30 years of insurance experience in various positions in the industry working for both agencies and insurance companies.

Also, Ross & Yerger has added Marcus Burger as the Tammy Burnham newest sales team member of the Future Partner Group. Having worked for Time Warner/Comcast and most recently Gannett Inc/The ClarionLedger, Burger has a strong background in sales. A graduate of Hampton University with a bachelor of science in mathematics, he also received a mas- Marcus Burger ter of science degree in applied mathematics from Old Dominion University.

Kuczaj elected president Dr. Stan Kuczaj, professor of psychology and director of the Marine Mammal Behavior and Cognition Laboratory at the University of Southern Mississippi, has been elected president of the American Psychological Association’s Division 6. He will become president-elect at the August 2014 APA meeting, take over as president in August 2015 and become past president in August 2016.

Firm hires Triplett Sledge & Company, Financial Strategies has hired

Taylor Triplett as director of planning and investment strategies. Taylor joins the firm after working in the financial services industry as a licensed producer since 2011. Prior to that, he spent time in New Delhi, India, as well as Bangladesh working with the Nobel Prize-winning Grameen Bank.

August 22, 2014

Independent Insurance Agents selects new leaders Scott Gray of Insurance Solutions of Mississippi in Meridian was recently elected chairman of the Independent Insurance Agents of Mississippi (IIAM). Gray’s election as IIAM’s chairman follows an active involvement with the association that includes serving as chairman-elect and vice chairman, as a member of the Executive Committee, as an IIAM board member and as the IIAM Young Agents chairScott Gray man. Gray joined Insurance Solutions of Mississippi (formerly Gray Insurance Services) in 1995 as an agent and now also serves as an owner and personal lines manager. He is very active in his community, serving as coach of the West Lauderdale High School boys soccer team, as Scoutmaster for Boy Scout Troop 2 and as a board member for LOVE’s Kitchen.

Other officers include: Durr Boyles of Boyles Moak Insurance Services in Ridgeland as chairman-elect; Brian Berry of Bi-County Insurance Agency in Centreville as vice chairman; Ray Collins of Collins Insurance Agency in New Al-

bany as treasurer; and Shaw Johnson III of SouthGroup Insurance Services in Clarksdale as national director.

In addition to the association officers, Gray named the following agents to serve on the IIAM Executive Committee for 2014-2015: Dudley Wooley of Ross & Yerger Insurance in Jackson; Cecil Vaughan of Galloway Chandler McKinney Insurance Agency in Columbus; Ray Robertson of Marchetti Robertson & Brickell Insurance and Bond Agency in Ridgeland; Josh Smith of Insurance & Risk Managers in Brookhaven; Pam Wilson of Lemon-Mohler Insurance Agency in Ocean Springs; Tatum Brown of R.L. Brown Insurance Agency in Oxford; Seldon Van Cleve of Van Cleve Insurance Agency in Indianola; and Richard Mattiace of Lemon-Mohler Insurance Agency in Gulfport.

The following agents were also elected to serve a three-year term on the IIAM board of directors: Susan Loflin Johnston of Vicksburg Insurance Agency in Vicksburg; Gray Montgomery of SouthGroup Insurance Services in Hattiesburg; Pam Wilson of Lemon-Mohler Insurance Agency in Ocean Springs; and Cecil Vaughan of Galloway Chandler McKinney Insurance Agency in Columbus.

Waggoner picks Meadows

Police chief Horton retires

Waggoner Engineering has named Amanda Meadows client liaison in the firm’s business development department. She is located in Waggoner’s Hernando office. Meadows most recently served as a senior international account executive for FedEx. She holds a bachelor’s degree in business administration from the University of Memphis and a master’s degree in business administration from Union University.

Jackson Police Chief Lindsey Horton has retired.

In a news release, Mayor Tony Yarber said Assistant Chief of Police Lee Vance will serve as interim police chief. Vance has been in law enforcement since 1987.

Horton served nearly 30 years with the Jackson Police Department.

Courtney named fellow Richard A. Courtney, a certified elder law attorney practicing in Jackson, has been named as one of the 2014 Fellows of the National Academy of Elder Law Attorneys (NAELA). Courtney is the first attorney in Mississippi to be designated a certified elder law attorney by the National Elder Law Foundation. He is a former assistant dean and adjunct professor of law at Mississippi College School of Law and current adjunct professor in elder law at the University of Mississippi School of Law. He is a past director and current member of the Council of Advanced Practitioners and the Trusts and Special Needs Law Section Steering Committees of the National Academy of Elder Law Attorneys; the Trusts and Estates Section of the Mississippi State Bar; the Mississippi Estate Planning Council; and the Mississippi Financial Planning Association. Courtney is an officer and director of the Special Needs Alliance, a national organization of special needs planning attorneys, and he is a Fellow in the American College of Trust and Estate Counsel. He has been designated a Mid-South Super Lawyer annually since 2006 in the field of elder law

by Law & Politics Inc., through professional review and peer recommendation, and has been named among Best Lawyers in America in elder law and trusts and estate planning.

Garraway succeeds Godwin David Garraway of the Mississippi State University Television Center is the unit's director after serving three years as video program manager. Garraway succeeds longtime director Mike Godwin, who is moving to the new post of operations and engineering manager, a position he sought because of David Garraway his years of broadcasting experience and technical expertise.

In the director role, Garraway reports to the university's Chief Communications Officer Sid Salter, who also serves as director of the Office of Public Affairs, consisting of seven units including the TV Center. Prior to joining MSU, Garraway served as producer and operations manager for a television production facility in Hattiesburg, his hometown. He received a bachelor's degree in radio, television, and film production and a master's degree in mass communication, both from the University of Southern Mississippi. Currently, he's pursuing a master of business administration degree from MSU. Two other appointments are part of the TV Center's reorganization. They include Steve Carver moving from part-time associate producer to interim senior producer; and Hal Teasler moving from graphic designer for public affairs to videographic coordinator for the TV Center.

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Ramagos named VP Caroline Ramagos has been named vice president of institutional advancement and institutional relations at Mississippi Gulf Coast Community College. A Soso native, she was previously vice president of institutional advancement at Jones County Junior College and executive director of the JCJC Foundation Caroline Ramagos and Alumni Association. Prior to her employment with JCJC, Ramagos worked in the private sector in sales.

Ramagos received her bachelor’s and master’s degrees from Mississippi State University, and has completed additional graduate coursework at the University of Southern Mississippi and Indiana University.

Zito selected as manager Innovate Mississippi has named Janet Parker Zito as outreach and development manager. Specializing in addressing communication competencies, Zito has trained and coached top-level international executives, supervisors, mid-level managers and support staff. She spent 11 years as an award-win- Janet Parker Zito ning pharmaceutical sales representative, served as host of the Emmy Award-winning and #1 locally produced television show in Mississippi, “Mississippi Outdoors,” and represented products and services for many companies and industries, appearing in numerous television commercials, radio advertisements and print materials.

Zito was named among the Top 10 Business Women in Mississippi in 2012 by the Mississippi Business Journal.

Zito received a bachelor of science degree in business administration with a concentration in marketing from the University of Illinois, Champaign-Urbana.

Trustees honored, appointed Four Mississippi Gulf Coast Community College Board of Trustees members were recently recognized for years of service at the Mississippi Association of Community and Junior College Trustees Conference.

Don Massengale and Harry Roberts, both representing Jackson County, were honored for 25 years of service. Mike Andrews, representing Harrison County, and Jay Fletcher, from Jackson County, were recognized for 10 years of service.

In a related item, two new members named to MGCCC Board of Trustees. David A. Blaine is president and owner of Edgewater Cleaners in Biloxi, and Greg H. English is a property and casualty specialist with MetLife Auto & Home in Ocean Springs.

Blaine will represent Harrison County, and English will represent Jackson County.

For announcements in Newsmakers; Contact: Wally Northway (601) 364-1016 • wally.northway@msbusiness.com

18 I Mississippi Business Journal I August 22, 2014 » THE SPIN CYCLE

‘Newsjacking’ is latest social media phenom nyone remember this famous tweet from Waffle House – “We don’t believe in Belgium Waffles”?

It happened during Team USA’s run in the World Cup. As you know, Waffle House got a little notoriety from that soccer success as well.

This act of genius coined a new term used frequently by David Meerman Scott, a marketing, PR and ad strategist – called “newsjacking.”

“Newsjacking” is when brands, companies and organizations ride the coattails of breaking news, and become part of the story by leveraging media coverage with social media engagement and stimulating brand awareness. It has become a social media phenomenon that brands and people alike try to leverage for their benefit – with varying degrees of success. It’s like photo bombing an online conversation, and it works well if done properly.

Here are 5 important rules if you are going to leverage your brand through “newsjacking”: 1. Tragedy Doesn’t Sell. From Kenneth Cole trying to sell shoes because people were dying in Cairo to the brands that thought a headline like “This storm blows but free shipping is a breeze” will help sell things during Hurricane Sandy, every social media and PR practitioner across this country should know that there is no place for this in death and destruction. This is a stain of #PRFail that most brands never wipe away because they are inexorably linked with stupidity, callousness and tastelessness. Rule No. 1: “newsjacking” is all about real-time decision making, but more importantly, it’s all about using good judgement.

2. Real Time Means Now. The art of “newsjacking” is the wit to take advantage of a trend or story for your brand. The science of it is timing, as in right before the trend or story saturates the general public. That’s when people lose interest, get tired, or just tune out. When the buzz is initially lifting, that’s the time to move. One of the most repeated examples of quick-witted responses at the ready is Oreo and their little “newsjacking” stunt during the Super Bowl in 2013, known as the #BlackoutBowl. Someone had an idea, so social media and graphic designers got together and did this. The rest is folklore and delicious history. The bottom line went up. Virality was created. And all because someone didn’t hesitate to add humor to a bad situation during the biggest sporting event of the year. Had that happened 15 minutes later? Pass the Chips Ahoy.

3. “Newsjacking” Involves Understanding. The mere idea of “newsjacking” is based on disruption. While everyone is talking about one thing causing the buzz or the trend, you show up, raise a flag, and make people collectively take notice. This can certainly backfire. Take patriotism. Chef Boyardee tried showing his pride and got spanked in the process all because of misunderstanding. It was the D-Day holiday, and while the sentiment was right, the mascot was all wrong. Soldiers dying in the face of a Japanese offensive are not cause for a smiling Spaghettio, as Twitter quickly demonstrated. Be patriotic in times of remembrance; just be absolutely mindful of the context.

4. It’s Not Part of Any Campaign. That’s the thing about “newsjacking” — it involves spontaneous responses. You can’t plan for “newsjacking”; you happen to be a part of it.

How nimble is your PR or social media team? You get to put that flexibility to the test during “newsjacking” strategy.

A great example is Ben & Jerry’s well-timed tweet that no one saw coming. You know the story: Colorado legalizes weed and the state gets a case of the munchies. Someone had an epiphany, took a great picture of a capsized carton of ice cream, and coupled it with “reports of stores selling out

A

of Ben & Jerry’s in Colorado.”

5. “Newsjacking” Cuts Against the Brand’s Grain. If you are known for saying or doing outlandish stuff, it is difficult to trump yourself. If your brand has a somewhat conservative voice, you are poised for a great opportunity in “newsjacking.” Do you understand your audience? Do you relate?

Take the brand loyalty out for a spin and kick the tires.

When you think of Denny’s, you think of branded breakfasts and some cheesy advertising. You wouldn’t typically think about college football, which is why this tweet worked.

Earlier this year, Auburn lost the national championship in heartbreaking fashion. So Denny’s connected a yellow brick road from the Rose Bowl to any one of 47 locations. It worked.

Todd Smith Nut Cheerios, two books, and enough branded merch to fill a shelter – everything from plush toys to key chains.

The truth, however, is that the spokescats prowled long before the coming of Grumpy Cat – and even before the Internet. Garfield was the major attitude cat of the 1980s.

As the pitch-cat for 9Lives, Morris was turning up his nose at competing brands nearly half a century ago.

Catvertising really roars! Here are the Top 6 spokescats, according to Advertising Age: 1. The Fancy Feast Cat – you know her, all right – that white puff of privilege, served by a liveried butler who summons her with a fork tap on her crystal bowl.

2. Morris the Cat – America’s original spokescat, Morris made his screen debut in 1969 for 9Lives cat food.

3. Garfield – when Alpo (founded in 1936 and famous for dog food) decided in 1987 to start selling cat food, it spent part of its $70 million marketing budget to sign Garfield. Cartoonist Jim Davis’ orange cat – said to be inspired by 9Lives’ Morris – appeared in 2,000 newspapers daily, and was already famous.

4. Maru – who lives in Japan – found YouTube fame by jumping in and out of cardboard boxes.

5. Lil Bub - the cat that the Chicago Tribune dubbed “the Angelina Jolie of online cat films” was actually the runt of the litter – which explains her perennially extended tongue.

Somehow, Lil Bub has found time to write her biography, Lil Bub’s Lil Book, which currently enjoys a five-star rating on Amazon.

6. Grumpy Cat – the aforementioned and latest feline sensation.

Golden Mic: Robin Williams was acting comedy gold

Top cat ...or just grumpy?

Robin Williams, who rose to fame on TV as a memorable alien in "Mork & Mindy" and went on to become an Oscar-winning actor, ended a golden age of acting and comedy with his recent apparent suicide. Although he battled demons of addiction and depression, recent news reports also revealed the early onslaught of Parkinson’s disease.

Williams was a larger-than-life actor and was his own brand. Although we may never know the extent of his maladies, one thing is for sure – in a rapidly changing society, he gave us all pause to enjoy great acting and great humor. He made us laugh. He made us cry. He made us think. He made us joyful. And, he gave us a new lens to view the world in a refreshing way. He redefined the Hollywood hero. The Spin Cycle was forever changed by his performance in “Dead Poets Society” – based on life at Montgomery Bell Academy in Nashville, Tenn. – a brilliant film that shined the light on the importance of words, writing, poetry and prose, and changed a generation.

Each week, The Spin Cycle will bestow a Golden Mic Award to the person, group or company in the court of public opinion that best exemplifies the tenets of solid PR, If anyone needed proof that catvertising has come into marketing and advertising – and those who don’t. Stay its own, it was the announcement earlier this summer that tuned – and step-up to the mic! And remember … Amplify Grumpy Cat – the sour-faced feline who happens to have Your Brand!

6.3 million Facebook fans – will be starring in her own Christmas movie. But just in case Grumpy Cat’s screen test isn’t quite up to Garbo standards, one thing is certain: The Todd Smith is president and chief communications officer of cat knows plenty about branding. Then again, lots of cats Deane, Smith & Partners, a full-service branding, PR, marketing and adverdo. Sure, Grumpy Cat has made all the headlines – and tising firm with offices in Jackson. The firm — based in Nashville, Tenn. — pounced on most of the big endorsement deals – in recent is also affiliated with Mad Genius. Contact him at todd@deanesmithpartmonths. These include TV spots for Friskies and Honey ners.com, and follow him @spinsurgeon.

6 greatest spokescats in advertising history

SALES MOVES

August 22, 2014

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» JEFFREY GITOMER

The wise salesperson » ‘Why’ of sales and selling will lead you there

I

sat in a Jim Rohn seminar one day in 1995 and heard him say, “Formal education will earn you a living. Self-education will earn you a fortune. You decide how much of a fortune you want to earn by how willing you are to self-educate.”

I was frozen in my front-row seat.

A stunning piece of “obvious” that created self-awareness that remains with me nearly 20 years later.

INSIGHT TO PERSONAL WISDOM: The toughest educational questions in sales are the ones you have to ask yourself – self-educational questions if you will.

Here’s a set of the toughest question you can be asked: » Why are you having trouble making connections? » Why are you still making cold calls? » Why are you having difficulties setting appointments? » Why are you unable to get to the decision maker? » Why are your presentations boring? » Why is your closing percentage nothing to brag about? » Why are your follow-up calls going unreturned? » Why are your emails getting deleted? » Why are your customers price-oriented? » Why do you lose sales to inferior competitors? » Why do you lose customers to a lower bid? » Why does your competition win? » Why are you unable to get referrals? » Why are you unable to get testimonials? » Why are you unable to build trusted relationships? » Why are you complaining about circumstances you can change? » Why are you unable to achieve your sales plan?

What are the answers to those questions worth? Jim Rohn already told you: A fortune.

I have studied sales for more than 40 years and salespeople for more than 25 years. The difference between their success and failure is found in front of and behind the word “rather.” It’s an educational process that starts with self-evaluation and opens the door to discovering your own answers.

Below is what I have found to be a salesperson’s biggest downfalls and pitfalls (and their biggest opportunities).

Be in a winning position BEFORE the sales call to put yourself in a winning position during the selling process.

The challenge for salespeople of all kinds is to ask yourself “WHY?” and educate yourself in the process… » Why are you trying to be informative, rather than inquisitive? » Why are you trying to be reactive, rather than proactive? » Why are you trying to be defensive, rather than offensive (in a positive way)? » Why are you trying to be aggressive, rather than assertive? » Why are you blaming circumstances, rather than taking responsibility for your actions? » Why are you talking, rather than doing? » Why are you going for the sale, rather than going for the customer? » Why are you “make your quota,” rather than building a relationship? » Why are you manipulating the conversation, rather than harmonizing with the prospect? » Why are you trying to find the prospect’s pain, rather than finding their pleasure? » Why are you trying to overcome their objections, rather than lowering their barriers to purchase by reducing their risk? » Why are you trying to “make the sale,” rather than uncovering their motive to buy? » Why are you focused on price rather than value? » Why are you “numbers-oriented, rather than “relationship-oriented”? » Why is your social presence and on-

line reputation not existent, rather than being number one in your industry? » Why is your online presence lacking, rather than having a dominant Google and social position that your customers and prospects would respect? » Why are you trying to measure customer satisfaction, rather than seek and earn, and then measure customer loyalty? » Why are you asking for referrals and testimonials, rather doing everything you can to earn them?

Take each “rather” and think about it twice: once seriously and once strategically.

Then make notes on where you are in relationship to each process. Rate yourself and make an action plan to improve.

Then ask your peers or partner to evaluate your self-assessed findings. They may (probably will) differ from yours.

THE SECRET TO EACH SALE: Be in a winning position BEFORE the sales call to

Jeffrey Gitomer

put yourself in a winning position during the selling process.

All you have to do to be a TOP 1 percent performer is: do the “rather.”

I have just given you an education, an evaluation, and a set of strategies that will educate you in a way that is both understandable and actionable.

Jeffrey Gitomer is the author of “The Sales Bible”, “Customer Satisfaction is Worthless” “Customer Loyalty is Priceless”, “The Little Red Book of Selling”, “The Little Red Book of Sales Answers”, “The Little Black Book of Connections”, “The Little Gold Book of YES! Attitude”, “The Little Green Book of Getting Your Way”, “The Little Platinum Book of Cha-Ching”, “The Little Teal Book of Trust”, “The Little Book of Leadership”, and “Social BOOM!” His website, www.gitomer.com, will lead you to more information about training and seminars, or email him personally at salesman@gitomer.com.

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