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INSIDE — Time running out for Sanderson Farms Pro-Am spots, suites, Page 2

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YEARS

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2014

Construction

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» We have the winners in the ACEC Mississippi awards competition. » PROFILE: Austin Morgan of TL Wallace Construction

August 29, 2014 • Vol. 36, No. 35 • $1 • 32 pages

CLASSIC

Motorcars of Jackson has found its niche

Real Estate

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» Story, Page 9

» In many states, house flipping is popular, but what about Mississippi?

List {P 25} » Commercial developers

Chip Chudy / Motorsports of Jackson

R’evolution simmering

Rates rise, fall on health care exchange

By TED CARTER ted.carter@msbusiness.com

» A SEAFOOD R’EVOLUTION will be on a different scale.

More, P 12

Mississippians on the state’s federally run health insurance exchange will see both increases and decreases in premiums starting Jan. 1.

More on the exchange, Pages 4-5 Humana of Louisville, Ky,, is raising rates; Magnolia Health Plan, a subsidiary of St. Louis-based Centene, is lowering them.

The carriers are the only two insurers on the exchange. Humana covers about 42,000

people and Magnolia about 20,000. The federal government, under the Affordable Care Act, subsidizes a substantial portion of the premiums paid by those insured through See

EXCHANGE, Page 4

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

2 I Mississippi Business Journal I August 29, 2014

The course of business

Courtesy Country Club of Jackson

The Sanderson Farms Championship Nov. 3-9 at the Country Club of Jackson includes two Pro-Am events, one on Monday, Nov. 3, and one on Wednesday, Nov. 5.

» Pro-Am openings, hospitality suites going fast for Sanderson Farms tournament

By JON WIENER mbj@msbusiness.com

Want your corporation and clients to spend an afternoon playing golf with a PGA Tour pro on a championship golf course?

Better hurry. Availabile spots are filling up quickly for the PGA Tour’s Sanderson Farms Championship Wednesday Heritage Bag Pro-Am at the Country Club of Jackson on Nov. 5.

Fewer than seven team spots remain for the tournament’s marquee sponsor event.

The age-old pro-am is always a highlight of the PGA tournament week: local corporations and their clients teaming up with a PGA touring professional for a day of golf and revelry.

For Sanderson’s Wednesday Heritage Bag Pro-Am, $16,000 buys a team of three golfers plus a PGA Tour pro and includes six invite-only Pairing Party VIP invitations (Tuesday night). Players also receive three Pro-Am gift packages, money clips good for weekly event lawn and grounds admission, guest badges, and VIP parking passes and other access.

This year’s event comes with a major change, and a good one for sponsors. The PGA Tour now requires that most pro-ams be “walking only,” meaning every sponsor spot also comes with a caddy invite.

“If I’m a sponsor and buy a Pro-Am team, I can have three of my employees and have them caddy for three customers, and now you’ve got six guys between the ropes with a great experience with a pro,” said tournament director Steve Jent. “As a sponsor I’d rather have

The details What: Sanderson Farms Championship When: Nov. 3-9 Where: Country Club of Jackson Tickets: sandersonfarmschampionship.com /ticket-packages Info: sandersonfarmschampionship.com or email John Lang, Director of Sales, at john@sandersonfarmschampionship.com

six guys when I’m paying that amount of money; with what I’m paying, let me maximize the number of people I get between the ropes. How cool is it for me to take a customer out and be his caddy and play with a Tour pro? It’s gonna be a really cool experience.”

Format for fun The popular “shamble” format for the Pro-Am caters to low handicappers and the hackers who spend more time hunting for balls than hitting them. In a sham-

ble, each player tees off with his own ball, then the group chooses the best tee shot.

Each player plays their next shot from that point.

“The beauty of that format is that it keeps everybody involved. Usually in a pro-am, most amateurs need help off the tee. So when you’re playing a best-ball format, if someone slices off the tee and they’re out of play, they’re pretty much done for the next 15 minutes and that’s not a lot of fun. The shamble keeps everyone involved in the game all the way through,” Jent said.

The Sanderson Farms Championship week also features a Monday Pro-Am for four players instead of three, but without the selection of pros that will be on the JCC grounds for Wednesday’s event. The sponsor price is $10,000 for a team of four that includes the same perks of the Wednesday Heritage Bag Pro-Am. For anyone who’s ever hit a golf ball — or seen a pro do it — the Pro-Am offers an experience rare to sports fans. What other sports can you play and compete with the professionals on their turf the day before the big event?

“And these guys are great guys. The caddies are a lot of fun, the players are a lot of fun, and they’re interactive with the amateurs…it’s just a great time. It adds a lot to the week”

Hospitality for CCJ Hospitality tents make another corporate attraction of PGA tournaments.

A huge factor in moving the Sanderson

Farms Championship from Annandale to the Country Club of Jackson was the cost-effective upgrades to the hospitality venues.

Instead of having to erect each tent from scratch — garish, makeshift structures that quickly total into the hundreds of thousands of dollars — the tournament will access the lavish rooms in the JCC clubhouse as primary hospitality areas, as well as caddy lounges, media rooms, and volunteer pavilions. Two of the three major sponsor rooms used for corporate entertaining are already booked.

“We still have (some venues) available, but we feel pretty good about where everything is right now. We know traditionally a lot of decisions to participate in the tournament are really made within these last couple months, but we’re on a pace to sell some things at a rate we haven’t had here before,” Jent said.

For corporations looking for value in sponsor access, Sanderson is emphasizing its variety. Hospitality doesn’t have to be high-dollar. Packages for the on-course Trophy Club hospitality venue that include a lunch buffet, full service bar and television start at $2,000 for two credentials Thursday-Sunday.

“We’ve got different options available for whatever a company's budget is in terms of how many people they want to entertain, and how much they want to spend. Individual hospitality tents that we call chalets on the 18th green are available for seventy five people a day, all the way down to open air ones on seventeen that you can buy two tickets a day for all four days,” Jent said.

August 29, 2014

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Mississippi Business Journal

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Soybean growers anticipate record yields ACROSS MISSISSIPPI — The state’s soybean growers are on track to harvest a record yield this year despite the cool, wet weather that kept most producers behind schedule by two to three weeks.

Trent Irby, Mississippi State University Extension Service soybean specialist, said growers are optimistic about potential yield this season. The state’s average yield is currently projected to be 48 bushels per acre. The U.S.

Department of Agriculture’s Aug. 12 Crop Production Report estimates Mississippi will harvest 2.2 million acres of soybeans.

“We have a varying range of crop maturity because of the differences in planting dates this year,” Irby said. “But the acres that are approaching maturity look really good.”

Some growers in the Delta are harvesting now, but it will still be the end of August or the beginning of September before harvest is in full

swing, Irby said.

The USDA’s June 30 acreage report estimated soybean farmers would harvest about 84 million acres nationwide. This forecast is pushing prices down, said Brian Williams, Extension agricultural economist.

“Prices hit a high of $13.27 per bushel on May 22 and were comparable to last year’s See

BEANS, Page 11

MANUFACTURING

NEW TO MISSISSIPPI

Keene, former president of Ingalls Shipbuilding, dies at 75

SweetWater Brewing Company to tap into state

PASCAGOULA — Pat Keene, a former president of Ingalls Shipbuilding and leader in the push for the Mississippi Maritime Museum in Pascagoula, has died. He was 75.

Officials at Heritage Funeral Home say Keene died Sunday.

No other details were released.

A list of survivors was not immediately available.

Keene served many roles at the shipyard in a career spanning four decades He was vice president of operations at Keene Ingalls for 17 years. He became president of the shipyard in 1999. He retired in 2001.

Keene started as an engineer in Ingalls nuclear submarine program.

Keene was a graduate of the U.S. Merchant Marine Academy in Kings Point, New York, with a bachelor of science degree in marine engineering.

GAMING

Trop Greenville ahead of schedule on expansion GREENVILLE — Tropicana Entertainment Inc. is ahead of schedule to complete construction of its multi-million dollar expansion at its Trop Greenville property.

The expansion is expected to be completed by Oct. 10.

The development will introduce new table games and 300 more slot machines as well as Max & Erma’s, a full-service casual dining restaurant chain that will open its first Mississippi location at Trop Greenville.

The expansion will also include a new VIP Lounge, live entertainment area open to the casino floor and the construction of a 140-space underground parking garage, which would be a first for the city of Greenville.

Roscoe Greene, general manager of Trop Greenville, said, “This expansion marks our property’s evolution into a complete casino resort experience.

We would also like to thank Mayor Cox and the City of Greenville for supporting the project and allowing Tropicana to develop and create jobs.”

— from staff and MBj wire services

SweetWater Brewing Company continues to make moves westward with the announcement it will open up distribution to the Magnolia State later very soon. Shortly after the brewery’s $19 million expansion, SweetWater will be bringing its lip-smackin’ lineup to the area starting in early September.

Through wholesaler assignments, SweetWater names A&B Distributing covering Oxford; Mitchell Distributing covering Starkville; F.E.B. Distributing covering Gulfport and Biloxi; and Capital City Beverage covering Jackson and surrounding Central Mississippi. With a newly expanded production capacity, the brewery’s current footprint covers the Southeastern United States including Georgia, Florida, Alabama, Tennessee, North Carolina, South Carolina, Kentucky, Louisiana, Virginia and D.C. "I can’t tell you how excited we are to finally begin flowing in Mississippi,” said SweetWater founder and big kahuna, Freddy Bensch. “This one took a little while for us, but with our new fermentation tanks online and the expanded brewhouse rocking and rolling, our tasty beers will hit Mississippi shelves and taps just in time for college football to kick off!”

SweetWater will bring their notoriously hoppy ales to the area starting with its flagship, 420 Extra Pale Ale, IPA, Blue and Take Two Pils on draft alongside bottles, cans and Tackle Box variety packs in off-premise grocery, package and s bottle shops including: » 420 Extra Pale Ale - SweetWater’s 420 is a West Coast style pale ale with big hops and a crisp finish. First brewed on April 20, 1997, 420 is extremely well-balanced which makes it a perfect introduction to a new town – that’s why we say “drink ‘em if you got ‘em!” Rolling out in 6-pack bottles, 12-pack cans and draft. » SweetWater IPA - This mammoth India Pale Ale (IPA) is dry-hopped to the gills delivering a kick-you-in-the-teeth hop chop. The brew is unfiltered to leave all the natural flavors intact. SweetWater IPA won first place in a blind tasting against 15 of the best IPA’s in the country held by The Atlanta Journal-Constitution. Rolling out in 6-pack bottles, 12-pack cans and draft. » SweetWater Blue - SweetWater Blue is a unique, lighter-bodied wheat ale enhanced with blueberries. This ain’t no fruit beer, but it is our breakfast beer, and perfect for hanging on a warm Mississippi day. Rolling out in 6-pack bottles and on draft. » Take Two Pils - A golden blonde German pilsner brewed with spicy floral hops and a head-first trip down the rabbit hole of lagers. Call us in the morning!

Rolling out in 6-pack bottles and draft. » SweetWater Tackle Box - The SweetWater Tackle Box variety pack is a hefty 12-pack collection featuring three of SweetWater’s favorite year round brews, along with a fourth catch and release seasonal specialty in each box.

A crew from SweetWater will taste their way around the area with sampling celebrations and sponsored events kicking off the week of Sept. 8 in Jackson, Gulfport and Biloxi areas, and the week of Sept. 22 for Northern Mississippi. For the full schedule and participating locations, visit SweetWater’s Facebook Page.

Online fans can wet their whistles too by following the brewery’s Mississippi Facebook page for details on how to enter SweetWater’s “Catch a Trout Tap” contest rewarding the first locals to spot their tap handles with free SweetWater Schwag.

To learn more, visit www.sweetwaterbrew.com.

— from staff and MBj wire services

3

4 I Mississippi Business Journal I August 29, 2014 HEALTH CARE EXCHANGE

Marketplace to look much the same in 2015

By TED CARTER ted.carter@msbusiness.com

Humana and Magnolia Health will stay the course in their Mississippi health insurance marketplace exchanges in the coming year.

The only change is Magnolia’s request to add a pair of counties to its coverage area.

Humana has applied to continue coverage in 40 of the state’s 82 counties, including the urban counties of Hinds, Rankin, Madison and DeSoto. Humana initially proposed coverage of the four urban counties but added 36 more after no other carriers showed interest in covering them.

Magnolia Health, which administers a 77,000-member Medicaid network around the state, serves the remaining counties. CEO Jason Dees said last week Magnolia has applied to add two more counties under the federally operated Affordable Care Act marketplace. He declined to identify them, however.

Dees and a spokesman for Humana emphasized their companies went into the exchange business fully aware they would be offering insurance products to people who until the signups had been uninsured or underserved by the health insurance sector.

EXCHANGE

Continued from Page 1

the exchange.

For people insured on the exchange by Magnolia, premiums are expected to go down by 25 percent. Humana’s Mississippi exchange customers can expect to pay 6.5 percent more on premiums.

Mississippians on group plans outside of the exchange can count on higher premiums as well. For instance, Blue Cross Blue Shield of Mississippi is proposing a 9.7 percent increase in premiums, according to Insurance Commissioner Mike Chaney. The commissioner reviews the group rates but has no authority to approve or reject them.

Chaney said several factors led Magnolia to ask for a decrease in rates. The chief cause, he said, was Magnolia’s “Medical Loss Ratio,” which requires that 80 percent to 85 percent of each premium dollar be spent on medical care. “Their (insured) population was relatively healthy,” which limited the portion of premiums spent on care, Chaney said. “They needed to lower their rates.”

Magnolia was not in the penalty range the ACA sets for Medical Loss Ratio, Chaney said. In fact, the insurer was “close” to meeting the federal ratio.

Another reason for the rate drop: Magnolia needs to approximately double its number of insured through the exchange.

Otherwise, according to Chaney, it will continue to have difficulty giving its customers an adequate care network. “They have some real problems in that area,” he said.

Courtesy of Humana

Humana’s “clear trucks” visited 185 locations as part of its Covering Mississippi mobile outreach.

“I would say we are pleased to be where we are at this point,” Dees said in an interview last week. “Our experience has been in line with where we thought we would be,” he added, and noted its exchange customers have

The commissioner said he frequently fielded complaints this year from Magnolia customers over found “they can’t go the doctor they want.”

He said Magnolia has voiced a strong desire to increase the size of its provider network.

Mike Chaney Another cause of Magnolia’s lagging number of insured compared to Humana is the state’s refusal to expand Medicaid to people with incomes from 100 percent to 138 percent of the federal poverty level. About 100,000 Mississippians fall into that category by either making an income too high for current Medicaid edibility but too low to qualify for the health care exchange. They are largely relying on hospital emergency rooms around the state for their health care, according to Chaney.

Magnolia is also counting on the 25 percent decrease to help attract Mississippians who are slightly better off financially – and healthier — than others on the exchange.

This means targeting people who have incomes within 20 percent to 400 percent of the federal poverty rate, according to Chaney. The problem for Magnolia: This demographic must cover more of the premium out of its own pocket. “The tax subsidies (from the ACA) decrease dramatically when you get above 200 percent” of poverty level, he added.

Thus, Humana’s “cheaper rates” put Magnolia at a disadvantage in attracting this category of insured, Chaney noted.

many similarities to the MississippiCAN Medicaid clients it serves.

Humana spokesman Mitch Lubitz said many of the 40,000 Mississippians it signed up for coverage had no health insurance before the ACA. Connecting with uninsured Mississippians who lacked familiarity with the workings of health insurance posed the biggest challenge, Lubitz said.

“That’s why Humana launched its Covering Mississippi mobile outreach campaign in the first year of the Marketplace,” he said.

The insurer dispatched a pair of trucks that towed long trailers with clear windows. The trailers served as mobile sign-up offices across Humana’s Mississippi coverage area, Lubitz said.

The trucks, staffed with sales representatives, visited 185 locations, he said, and added sales reps talked with 3,000 Mississippians at churches, shopping malls and retail centers, medical clinics and hospitals. The trucks also took Humana representatives to ACA forums and community gatherings. to travel its Mississippi territories.

Lubitz said Humana will do the same outreach this year, though it will dispatch one truck. It will launch the campaign on Oct. 4 at the Jackson Medical Mall

“The higher the income level generally speaking the healthier the population and risk goes down,” the commissioner said.

“They have an opportunity to make a little more money.”

But to do that, the increase in the coverage pool to around 41,000 is required, Chaney said.

Humana spokesman Mitch Lubitz said the insurer exceeded its enrollment projections in Mississippi. Most of the 40,000 it signed up did not have coverage before implantation of the ACA, he said.

New enrollment for the Mississippi exchange begins Nov. 15.

Humana expects to charge its new and current customers premiums 6.5 percent higher than 2014 rates “primarily because of the health conditions of those who enrolled in Mississippi,” Lubitz said.

He also cited an increased use of health care and medical services by its exchange members, along with higher medical claims.

Humana attributed its request for a 6.5 percent premium increase to the health conditions of those who enrolled in Mississippi, as well as their increased use of health care and medical services, along with higher medical claims.

Commissioner Chaney said it is unlikely Mississippi will get new carriers to join the exchange anytime soon. Mississippi’s political leaders will first need to moderate their views on the Affordable Care Act, he said.

Their vows to kill the ACA have made insurers reluctant to enter the exchange marketplace, he added, and noted he has discussed the issue with every major carrier

in the state.

“The cause-and-effect is that carriers are gun-shy,” Chaney said. “The lack of support” from Mississippi’s leaders “is one of the factors.”

Chaney said at one point last year United Health seemed ready to join the exchange.

“I think they perceived the political climate here has not been friendly to insurance carriers,” he added.

Some of that perception stems from Gov. Phil Bryant’s involvement in a contract impasse between Blue Cross Blue Shield of Mississippi and Health Management Associates, a hospital company that at the time owned 10 hospitals in the state, including four in metro Jackson. Tennessee-based Community Health Systems completed its acquisition of Health Management Associates just as the company was settling its contract dispute with Blue Cross Blue Shield of Mississippi, which has an approximately 80 percent share of the state’s health insurance market.

As the impasse dragged on and fears grew that HMA would begin closing hospitals around the state, Bryant gave an executive order requiring the BCBS reinstate the 10 HMA hospitals as in-network providers.

The order demanded the reinstatement for approximately 60 days until an investigation of BCBS’s actions could be done.

Bryant later said he used his executive authority “because negotiations had stalled and patient access to care was threatened.”

Chaney said Bryant made the situation worse, however. “If the governor had left it alone, I would have worked it out sooner.”

August 29, 2014

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Mississippi Business Journal

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HEALTH CARE EXCHANGE

Small businesses have ‘SHOP’ option » Chaney gives large businesses one-year waiver to make coverage ACA compliant

By TED CARTER ted.carter@msbusiness.com

The Mississippi Department of Insurance says it is encouraged by sign-up levels for an Internet-based small business health insurance exchange that has already completed a series of open enrollments.

The federal Affordable Care Act gives states the option of operating a Small Business Health Options Program, or SHOP, marketplace. Mississippi is calling its SHOP One, Mississippi.

To take part, a business must: » Employ 50 or fewer workers. » Attest to offering coverage to all fulltime equivalent employees.

The business can cover its part-time workers through the exchange, as well as dependents of all workers.

Through the digital exchange, employers can select from health-care plans classified as Bronze, Silver, Gold and Platinum. All plans must provide specific essential health benefits, according to One, Mississippi.

The exchange, through a competitive marketplace, is designed to provide businesses coverage at prices below what they would find elsewhere.

The color category has nothing to do with the quality of coverage of a plan, One Mississippi says, though it notes the more the plan pays the higher the premiums.

SHOP coverage brings tax benefits to the employer through the Small Business Health Care Tax Credit. The employer must pay at least 50 percent of full-time employees’ premium costs, or 35 percent of the premiums paid by tax-exempt employees. “The tax credit is highest for companies with fewer than 10 employees who are paid an average of $25,000 or less,” One, Mississippi says.

Insurance Commissioner Mike Chaney said One, Mississippi could help more than 100,000 of Mississippi’s working poor who make too much money to be Medicaid eligible but not enough to qualify for subsidies through the state’s federally operated individual health care insurance exchange.

The workers would have been eligible for Medicaid had the state agreed to ex-

pand Medicaid eligibility under the Affordable Care Act. Instead, the workers are in an insurance limbo. “This is a real problem,” Chaney said in an interview last week.

He said leaving such a large part of the state’s population uninsured eventually will hurt Mississippi’s overall economic prosperity. “If we don’t have insurance for that population, we are going to lose potential employers and not have economic development.That is why we are pushing this SHOP exchange.”

Meanwhile, the one-year reprieve the Obama administration gave large businesses, those with 50 or more workers, to insure their workforce ends on Jan.1. With Republican leaders in the U.S. House of Representatives having sued him for extending the coverage deadline, President Obama is very unlikely to OK grant another extension, Chaney said.

Large employers that decline to insure full-time workers will be assessed a series of financial penalties.

The coverage must comply with the Affordable Care Act, though Chaney said he has told the state’s large businesses he will try to keep their plans “grandfathered” to 2016.

“Then they will have to comply with the federal rules,” unless Congress decides otherwise, Chaney said.

“The grandfathered situation says you can have a non-compliant policy as long as it has essential elements in it…. This applies to the big folks: Nissan, Toyota, Ingalls.”

Chaney said he has found “very little difference” in the range of coverage between plans provided by the state’s largest employers and what the ACA calls the “Qualified Health Plan,” or QHP. But that does not mean the QHP doesn’t carry a much higher sticker price, according to Chaney. “They can expect a significant cost increase. If we went up to a QHP immediately, we are looking at rates going up 65 to 75 percent” For QHP compliance, companies “have a host of things they will have to do,” the commissioner said. “But by giving the waiver, we have allowed them time to get those plans compliant without a lot of expenditure of funds.”

HEALTH HELP OFFICES

HELP Offices have been set up across Mississippi to help small businesses navigate the health insurance exchange marketplace.

‘SHOP’ key dates Open enrollment begins

Open enrollment ends

Coverage starts

Aug. 21 Sept. 20 Oct. 21 Nov. 20

Sept. 3 Oct. 3 Nov. 3 Dec. 3

Oct. 1 Nov. 1 Dec. 1 Jan. 1

Comparing plans Level

Plan pays (average)

Employer pays (average)

Bronze Silver Gold Platinum

60% 70% 80% 90%

40% 30% 20% 10% Source: One, Mississippi

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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 29, 2014 Volume 36, Number 35

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 29, 2014 • www.msbusiness.com • Page 6

OUR VIEW

Common Core becomes the standard in Mississippi

M

ississippi public schools’ test scores, as predicted by education leaders, declined statewide in results released Tuesday, reflecting a transition year in phasing-out one testing system and embracing the Common Core, a more rigorous statewide standard requiring more critical-thinking and writing.

This year, 2014-2015, all state schools are using Common Core and students will be tested based on what they have learned using its regimen next spring, with results released in fall 2015.

In 2013-2014, some schools did not teach

fully to the old system and concentrated more on Common Core, which meant students in some cases were tested on what they had not studied.

As a result, the state Board of Education said school ratings can be retained for another year, so an “A” school can remain an A school even if the 2014 testing shows it did not reach that level.

Regular rankings based on actual performance will return within the next two years, but scores are again expected to drop because the new curriculum core is, in a word, harder, which is an overall positive.

It’s possible individual students, even if they score lower on the Common Core, will have learned as much or more than in the phased-out, less rigorous curriculum.

The scores released Tuesday morning are from year-end tests required in grades three through 12.

The transition year has been difficult for administrators, teachers, students and parents because in some ways teaching was limited by demands of trying to serve two See VIEW, Page 7

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

» THE OUTSIDE WORLD

» PERCOLATIN’ WITH BILL

Recurrent national searches suggest management problems

MELISSA KILLINGSWORTH Sr. Account Executive

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» 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.

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» CORRECTIONS 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.

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rganizations that regularly announce “national searches” to replace CEOs tend to have internal management problems.

High performing organizations tend to promote from within.

Consider our universities. The IHL Board has long been the king of national searches, with mixed results.

Community colleges, on the other hand, are noted for promotion from within, with generally good results.

The major factor that influences CEO hiring is the management approach of the board of directors/trustees. In high perBill Crawford forming organizations, boards tend to focus on both long and short term objectives and continuity of leadership. In organizations experiencing CEO turnover, boards tend to be influenced by subjective issues and allow new CEOs to establish their own agendas.

As an IHL trustee I participated in many searches where the first question asked of some national search candidate was “What is your vision/plan for the university?” In other words, “tell us the agenda you will implement if we give you the reins?” Some of the national search prospects we and future boards hired did well, too many did not.

It’s extremely hard to make good hiring decisions in searches where your interaction with prospects is limited and your opportunity to gain understanding of their character and management style is restricted to a couple of interviews, input from the recruiter, and See CRAWFORD, Page 8

PERSPECTIVE

August 29, 2014 I Mississippi Business Journal

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» RICKY NOBILE » SENATE RACE

State ballot set with Cochran as nominee

»INSIDE MISSISSIPPI

One university system needed

F

ootball season is here and what better time to consider consolidating our public universities in Mississippi as we strive for that coveted spot in the BCS national championship. After all, what is the value of higher education if alums can only brag about Rhodes Scholars.

While school consolidation in many ways has proven detrimental to our primary and secondary school education system and has not demonstrated the anticipated cost savings, consolidating Mississippi’s public universities could actually save us money. It’s all about the costs associated with programming and offerings as each of our institution is obligated to be all things to all people in order to increase enrollment.

Mississippi’s Institutions of Higher Learning office has made enrollment increases paramount and sadly it is less about education of our citizenry and more about bringing dollars into public coffers to pay for everything from over-priced administrators, consultants, and contractors. With the excitement level associated with this year’s football season for both State and Ole Miss, there is no need to bring up other ridiculous expenses, like those coaching salaries.

There are some in IHL whispering about cutting programs, consolidating and even closing one or two of our public universities. They recognize it’s the only way this poorly managed system can survive. IHL has likely been considering a variety of scenarios to strengthen our higher education system and save money. But before they think about closing schools, hopefully, they will consider this.

Okay, no need to really worry, we wouldn’t dream of just one University of Mississippi for the entire state. The title of this column was only an attempt to get you to read it.

Mississippi State is a land grant institution as set for in the Morris Act of 1862, to focus teaching on agriculture, science,

military science and engineering “without excluding classical studies.” All scientist should have an understanding of Latin oriDavid Dallas gins, after all. Alcorn State University was also established as a land grant institution. So these two schools should be united along with Mississippi University for Women based on its proximity to Starkville. In addition, either Mississippi Valley State or Delta State should also be included with this group to strengthen the agricultural component of their Delta Branch Experiment Station in Stoneville. But the focus and the programs beyond agriculture, science and engineering should be given up and handed over to the University of Mississippi.

Now this is exciting stuff. Currently the University of Mississippi already has a medical center in Jackson. One could argue about the science of biology being transferred over to Mississippi State at this point, but let’s not for the sake of this optimistic proposal.

The main campus of the University of Mississippi would be at Jackson State and focused exclusively on liberal arts education, languages, etc. The University of Mississippi at Oxford would focus on business studies, pharmacy, law and literature, particularly for graduate-level work. The University of Mississippi in Hattiesburg would focus on the performance arts.

The University of Mississippi in the Delta would focus on teacher education. To really save money Oxford, Hattiesburg, and either Itta Bena or Cleveland could be branch campuses instead of stand alone institutions. Of course, they could still play football games in Oxford, like the University of Alabama hosting in both Tuscaloosa and Birmingham. Fewer trips to the Grove just makes it all the more special.

See DALLAS, Page 8

Mississippi elections commissioners on Tuesday unanimously approved a November ballot that lists Republican Thad Cochran, Democrat Travis Childers and the Reform Party's Shawn O'Hara as nominees for U.S. Senate.

Approval of the ballot came, as expected, while Chris McDaniel's challenge of his Republican primary loss to Cochran is still awaiting trial. The judge overseeing McDaniel's challenge said last week that he would not block preparations for the general election, including the setting of the ballot.

State law says the ballot must be given to counties by Sept. 10, which is 55 days before the Nov. 4 general election. Secretary of State Delbert Hosemann said Mississippi must make absentee ballots available to overseas military voters starting Sept. 20.

"Unless we're ordered to the contrary, we're going to follow the process," Hosemann said after Tuesday's meeting.

Certified results show Cochran, a six-term incumbent, defeated the tea party-backed state senator by 7,667 votes in the June 24 Republican primary runoff. McDaniel says the runoff was shoddily run and is asking the judge to declare him the winner over Cochran or order a new runoff.

Judge Hollis McGehee has set a Sept. 16 starting date for the trial, and has said it must be finished by Oct. 6. McGehee is scheduled to hear pretrial arguments Thursday in Jones County.

Cochran attorneys are asking McGehee to dismiss the lawsuit, saying McDaniel waited too long to file a challenge. In court papers Tuesday, McDaniel disagreed and said the Cochran argument relies on a 1959 state Supreme Court ruling in a case involving a state election law that has since be rewritten.

McDaniel went a few miles into Tennessee on Monday night to talk about the Mississippi contest. WMC-TV reported that McDaniel spoke during a meeting at a Memphis deli to about 100 people, many of them from DeSoto County, Mississippi. He said he will not concede to Cochran without a court considering his election challenge.

VIEW

Continued from Page 6

curriculums and two standards.

That issue, thankfully, is behind. Common Core is in place and schools are moving forward.

Common Core, it is worthy of note, was developed at the behest of the nation’s governors to make all American public schools more competitive internationally; schools in many other nations outperform American schools in academic achievement.

Former Gov. Haley Barbour was among the advocates for Common Core and remains supportive.

Political opposition has developed before the fact of implementation, but success and progress with the Common Core assessments will silence naysayers.

Common Core is not a federal program, and it was not shoved down states’ throats by a governmental decree. States, more than 40, voluntarily adopted the standards. Mississippi’s public school children, teachers and administrators need strong citizens’ support in mastering Common Core, with the goal of success and high academic achievement to clear the road ahead.

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PERSPECTIVE

»FROM THE GROUND UP WITH PHIL HARDWICK

» WHAT YOU’RE READING

Real estate scams are no fun

Here are the most-read stories on msbusiness.com from Aug. 20 - Aug. 26.

R

1. Officials set hunting dates for birds

eal estate scams come in all sizes and flavors. Victims range from young, first-time homebuyers to elderly homeowners with paid-off mortgages.

Today's out of the ordinary real estate market has provided plenty of opportunity for perpetrators to purvey their schemes on unsuspecting and unknowing victims. In this column we will examine some of the scams past and present.

Loan modification scams are growing at a rapid pace. And it is no wonder. That is where the money is. The three housing programs under TARP, the Troubled Asset Relief Program, have obligations/commitments totaling $38.45 billion as of July 31, 2014, according to the monthly U.S. Treasury, TARP Report to Congress, dated Aug. 11, 2014. Essentially, those programs provide a way for borrowers to reconfigure their loan terms in order to avoid foreclosure or otherwise keep their homes. One program of the U.S. Department of Treasury and the Department of Housing and Urban Development known as the Home Affordable Refinance Program (HARP) seems to be marketed to no end via emails and the Internet.

In these types of scam the perpetrator contacts a struggling homeowner and leads them to believe that the person is part of, or officially connected with, the federal government housing relief program known as HAMP, the Home Affordable Modification Program. The scammer offers a money-back guarantee to lower the homeowner's mortgage payment or interest rate. All the homeowner has to do is pay an advance fee for processing and other charges that “... have to be paid on the front end.” The scammer operates long enough in one area to collect as much as possible before shutting down and moving on to the next town or state.

In a related scheme, homeowners who are “upside down” on their mortgage are often targets of those who carry out cons using the so-called short sale. This term refers to a sale in which the lender agrees to a sale to a buyer at a lower price than the amount owed on the property. It is estimated that 6.3 million homes, or 12.7 percent of mortgaged homes, have a mortgage with negative equity, according to First Quarter 2014 CoreLogic Equity Report. Having negative equity is often referred to as being “upside down” or “underwater.” In a short sale the lender agrees to a sale at a sales price lower than the amount owed on the property. The difference then becomes a deficiency against the seller of the property. In other words, the seller still owes the lender the difference in the sales price and the mortgage amount.

In cases where the lender approves the sale, but forgives the deficiency, the amount is treated as income to the seller. Short sales have many nuances, depending on the state, so the best advice is to deal with a licensed real estate agent who has had extensive experience with short sales.

Misrepresentations to lenders have probably been going on since loans were invented. In the case of real estate loans, appli-

cants have colluded with others to provide false statements of all kinds. One that was Phil Hardwick relatively easy to provide in the past if the applicant knew the right people was the Verification of Employment. Depending on the type of loan, what was required was a form or a letter on employer letterhead. If the applicant had an accomplice in the human resources or payroll department it was not difficult to represent to the lender that the applicant was employed by the employer at a certain salary and that continued employment was good.

Back in the days where it was common for a borrower to assume the seller's mortgage loan, things were a bit different. Although the borrower might have to be approved by the lender, the transaction documentation was simpler. I recall one real estate broker who actively sought listings by telling potential sellers that he had a buyer waiting in the wings, and that if the seller would list with him the sale could be closed in days instead of weeks. This worked especially well if the seller was behind on his mortgage payments and/or had little equity in the property. Once the listing was obtained, the broker would hold a “closing” in his office in which the seller signed a number of documents, included the deed to the property. The seller would turn over the house keys and move out of the property. The broker would then market the property to someone who could assume the loan. Another closing would be held at which time the broker would produce the deed that was signed by the seller and then have the buyer sign as the grantee on the deed. The problem with such a transaction is that it does not meet the legal requirement of conveyance because the seller did not know who he was selling to and there was no delivery of the deed. It is known as a hanging deed. Although this activity was only a small part of the pattern of misrepresentations the broker used, it was the so-called straw that broker the camel's back in the disciplinary hearing in which the state regulatory agency took away his real estate license.

Lenders, of course, are not the only ones who are victims of misrepresentations. Sellers and/or their agents have sometimes failed to disclose such material items of property defects, recent coverup repairs, phony appraisals, etc. Fortunately, in today's market such practices come under the purview of a licensing agency and/or professional association. In Mississippi, those would be the Mississippi Real Estate Commission and the Mississippi Association of Realtors. That is why using a licensed real estate agent who is a member of a local Board of Realtors ® is a good idea. And no real estate transaction should be closed without review and supervision by an attorney.

DALLAS

lack of vision from the leadership at IHL. Their track record for money management and oversight is not good and there is no indication it will improve.

There will never be a enough money to continue operating our pubic universities as we do now. Tuition which is already growing at a much faster pace than the rate of inflation, will sky-rocket. So too will our taxes and other fees associated with higher education.

Course offerings and programs at all our universities will continue to suffer death by a thousand cuts.

So, are you ready for some football?

feedback from interest groups. It’s like judging a book by its cover.

That’s why boards of high performing organizations deliberately grow their own future leaders. They get to train, nurture, and observe performance over time. They get to instill the organization’s culture and objectives. They get a good look beneath the cover.

In recent times among our universities, only the University of Mississippi has successfully prepared future CEOs, e.g.

Dr. Robert Khayat and his successor as Chancellor, Dr. Dan Jones.

These selections occurred despite the IHL Board’s insistence that national searches be held. The IHL Board has spent millions on national searches, a practice with questionable benefits.

Now, it appears the IHL Board could be changing course. This follows the selection of two presidents from the IHL central office staff. First, Dr. Jim Borsig, who served as IHL Associate Commissioner for External Relations and Public Policy, was named president of Mississippi University for Women, but as part of a national search. More recently, Dr. Alfred Rankins, Jr., who served as IHL Deputy Commissioner for Academic and Student Affairs, was named president of Alcorn State University, but without a national search.

Still, as this is written a national search has begun to replace Dr. James Keeton as CEO of the University of Mississippi Medical Center. He and his two predecessors were promoted from within and the center experienced a time of tremendous improvement and growth.

Boards should invest in growing future leaders, not expensive national searches.

» David Dallas is a political writer. He worked for former U.S. Sen. John Stennis and authored Barking Dawgs and A Gentleman from Mississippi.

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

Continued from Page 7

Other benefits include better funding for distance learning classrooms for students unable to live on campus or commute to University for their degree of choice. Instead of having several mediocre programs at three or more of our public Universities, we could have one strong well-funded program that would be highly accredited and draw those much needed out-of-state tuition and research dollars.

A streamlined and efficient higher education system to better educate our citizens and communities will demand Herculean political will and loads of compromise. The real problem is the

Phil Hardwick is coordinator of capacity development at the John C. Stennis Institute of Government. Pease contact Hardwick at phil@philhardwick.com

2. Jackson Prep football player Walker Wilbanks dies 3. Judge moves McDaniel’s lawsuit 4. Oxford’s FNC getting new headquarters 5. TECH 21 — Mississippi’s most wanted in technology

CRAWFORD

Continued from Page 6

» Boards should invest in growing future leaders, not expensive national searches.

August 29, 2014

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Chip Chudy / Motorsports of Jackson

While most of Motorcars of Jackson’s sales have been online, the Chudys are looking to go brick and mortar with their first-ever showroom. It will include vehicles from sports cars to trucks.

REVVING UP » Motorcars of Jackson is preparing to open its first-ever showroom on I-55 “It was an old farm truck, about 24 shades of blue, and nobody would bid on it,” Chip remembered. “I thought, ‘Shoot, I’ll take it.’

The husband-and-wife team of Chip and I got it for $300. I brought it home, detailed Wendy Chudy are living the American it out, parked it in front of our house and we dream. They have parlayed their love for au- sold it about two hours later.” tomobiles and the art of the deal into MoFinding the deal fun and profitable, the torcars of Jackson, offering fine, pre-owned Chudys began buying and selling cars on a vehicles that have found buyers all over the larger scale, eventually growing the business nation and the world. into a small car lot in Columbus.

Now, the couple is looking to launch a The couple exited the automobile industry new chapter in the company’s history. when Chip joined Wendy in her father’s busiWhile the majority of Motorcars of Jack- ness, Dowdle Gas Company. The couple son’s sales have been online, the Chudys are would relocate to Florida when Wendy sold looking to go brick and mortar with their her portion of the Dowdle stores in Tenfirst-ever showroom. nessee and bought stores in Florida. When “We have cars at our home and two differ- her family subsequently decided to sell Dowent warehouses, plus a separate dle, Chip and Wendy found office,” Chip Chudy said. “Our Want more? themselves in their early 30s and inventory is scattered, and few Visit motorcarsofjackson.com retired, and moved back to Mispeople in the Jackson area sissippi to be closer to family. know who we are and what we offer. That’s The car-buying-and-selling-bug folwhy we’re wanting to open a showroom.” lowed them.

“We love selling automobiles that are “We both longed to be back in the car busiunique — ones that you can’t go down the ness, but didn’t want the headache of having road and see at every other car lot,” Wendy to sit at a location all day and wait for foot Chudy added. traffic,” Wendy said. “We decided that if we “We have strictly been an online dealer for were going to get back into the car business, it eight years and kept our vehicles in a warewould be on our terms and it would be fun.” house. Our website is our storefront. We ship With that, Motorcars of Jackson was about 85 percent of our vehicles and have launched. It offered an inventory far rerarely sold to local customers.” moved from that original farm truck — It has been an interesting joy ride into the hand-selected vehicles such as Porsches, automobile business for the Chudys, both of Audis and BMWs with a close eye on condiwhom grew up with a fascination for cars. tion, appearance, features, warranty and Chip is a Cleveland native whose dream of price. The Chudys, who reside in Ridgeland, playing football ended with a knee injury in count customers as far away as California, his senior year of high school. The couple Michigan and Massachusetts, and have met when Wendy, who is from Columbus, shipped vehicles to Canada, Nigeria, Russia was visiting friends in Cleveland. After con- and Kuwait. Practically all of that business ducting a long-distance romance, Chip has been conducted online. moved to Columbus to be near Wendy. They The couple is banking on changing that married in 1997. with the proposed showroom. They have The roots of Motorcars of Jackson began purchased an 8,000-square-foot building at in Columbus with one seemingly inauspi- 6105 I-55 in Jackson as well as an adjacent lot. cious purchase. Chip was working a farm They closed on the purchase in May. auction when a vehicle that was up for bid Now, the Chudys are mulling their next caught his eye. move. They are weighing whether to renoBy WALLY NORTHWAY wally.northway@msbusiness.com

Courtesy of Motorsports of Jackson

Wendy and Chip Chudy are planning an 8,000-square-foot showroom on I-55 in north Jackson. vate the 40-year-old facility or build a brand new building on the lot next door.

“The new showroom has to reflect the quality of our inventory — the expectations of our customers,” Chip said.

“We will continue to sell online, but also hope to appeal to our high-end local shoppers, as well,” Wendy said.

Whatever direction they go, the Chudys are determined to maintain their basic phi-

losophy of keeping it fun.

The showroom will be open to appointment-only customers, leaving them free to spend time with their two young boys, Chad and Reed.

Wendy said, “We buy vehicles that we enjoy driving, meet some of the nicest people when selling them and are able to take time to enjoy our children. This is our idea of fun.”

10 I Mississippi Business Journal I August 29, 2014

TVA retiring coal-fired plant; to build gas-burning facility MEMPHIS, Tenn. — The Tennessee Valley Authority board of directors has approved replacing the Allen Fossil Plant in Memphis, Tennessee, with a natural gas plant.

Following an environmental review that received comments from more than 1,500 people, the board agreed to retire the 55-year-old coal plant and replace it with a 2-on-1, combined-cycle gas plant. The board authorized up to $975 million to build a gas plant with a capacity of approximately 1,000 megawatts, enough to supply about 580,000 homes.

The Allen gas plant will be the seventh combined-cycle gas plant TVA has added to its power portfolio since 2007.

TVA is working under a deadline to either retire or install emission controls at the Allen coal plant by December 2018 under a 2011 clean-air agreement with the U.S. Environmental Protection Agency, three states and four environmental groups.

“We evaluated our options from financial, business and environmental

perspectives and decided this is the best way to help us meet our cleaner air goals and optimize the generation portfolio,” TVA President and CEO Bill Johnson said. “Memphis is our largest customer and we must have a proven source of generation in the city to ensure system-wide reliability while giving us flexibility that allows for future growth.”

Compared with the coal plant, according to TVA, the natural gas plant will reduce carbon emissions by more than 60 percent, nitrogen oxides by 90 percent and sulfur dioxide by nearly 100 percent while taking advantage of environmentally friendly options, such as the use of methane gas and the recycling of gray water from the Memphis Waste Water Treatment Plant rather than using water from McKellar Lake.

“This natural gas plant will improve air quality in Memphis and that is important to the city’s vitality and future economic development,” Johnson said.

The gas plant will be built across Plant Road from the existing coal plant. Memphis Light, Gas and Water will build the pipeline that will

supply natural gas to the plant’s two combustion turbines. The exhaust from the combustion turbines will generate steam to drive a steam turbine, making it one of the most efficient power generation plants.

The recommendation to retire the plant came after the utility completed an environmental assessment and a related “finding of no significant impact” for the preferred alternative of a natural gas plant. TVA hosted a 38-day comment period and an open house so interested citizens could voice their opinions. The comments were included in the final assessment delivered to the board.

Numerous options were considered, including the use of wind, solar, biomass, energy efficiency, a transmission-only solution, various configurations of gas generation and other configurations. The recommended 2-on-1 combined-cycle design provided the highest level of reliable, consistent generation potential at the lowest generation cost, TVA said in a release. Other options were considerably more expensive.

— from staff and MBJ wire services

Scientists seeing more invasive trapjaw ants on Coast MISSISSIPPI GULF COAST — A large, jumping ant has reached large enough numbers that its slow invasion of the Mississippi Gulf Coast is starting to be noticed.

Odontomachus haematodus, which is native to South America and commonly known as the trapjaw ant, was first identified in the state in August 2000.

These large brown ants can reach almost a half-inch long. Trapjaw ants have elongated mandibles for catching prey, and they have a very painful sting.

Joe MacGown, a research technician and scientific illustrator for the Mississippi Agricultural and Forestry Experiment Station, described the ant’s most distinguishing characteristic.

“This species has huge, elongated mandibles that are very powerful,” MacGown said. “These mandibles are attached in the middle of the face, not on the edges as is typical for other ants. They walk around with their mandibles all the way open at 180 degrees, and they can shut them rapidly.

“This movement is supposedly the fastest muscle movement in the animal kingdom, and they can control it very precisely,” he said.

Not surprisingly, trapjaw ants use their mandibles to catch prey, but they also use them for something else entirely, MacGown said.

“Trapjaw ants can snap the tips of their mandibles

against something and bounce away,” he said. “This is a defensive bounce that can move them 2 to 3 inches in the air and 5 to 8 inches backwards.”

Trapjaw ants nest in rotted wood and plant debris, such as leaf litter, that accumulates at the bases of trees. They are beginning to take over certain natural environments.

“A lot of the invasive ants in the state tend to nest in disturbed areas like open roadsides and yards and displace our native ants,” MacGown said. “Most invasive ants don’t do well in native settings, but we’re starting to see high numbers of the trapjaw ants in natural wooded habitats.”

MacGown said chemicals commonly used to

control other ants have been effective on this new pest as well. Unlike fire ants which form mounds in yards, trapjaw ants are not nuisances in most places. They have not been found in buildings and have not become much of a problem because they tend to nest in outof-the-way places.

So far, MacGown has found the ants in Jackson and Greene counties in Mississippi, but he first collected them in Baldwin County, Alabama almost 20 years ago. The earliest record he found of them was from unidentified specimens in the Smithsonian National Collection gathered in the mid-1950s from Mobile, Alabama.

“This ant basically went unnoticed for the next 30 to 40 years until large populations built up,” he said.

“It is common to have an invasive species come into an area and be there in small numbers for 50 or 60 years, then something shifts, and they build a huge population.”

MacGown was instrumental in correctly identifying this species. He has spent his career studying ants in the Southeast and has done extensive work describing various species so they can be correctly categorized.

“These ants were misidentified for a long time, but we were able to give them a definitive name last year,” he said.

— from staff and MBJ wire services

EDUCATION AND REAL ESTATE

JSU apartments to go for up to $1.9M JACKSON — Jackson State University will lease 444-bed apartment complex next to its campus, with hopes of buying it later to accommodate increasing enrollment.

The College Board approved plans for JSU to lease the Palisades apartments, spending as much as $1.9 million.

Because some apartments are leased, only 290 beds would be available immediately. JSU President Carolyn Meyers says JSU could still be as many as 60 beds short of housing this fall, even after leasing the Palisades.

Last year, JSU began leasing a 240-bed motel near the Mississippi State Fairgrounds.

JSU will retain that motel this year, and is pursuing plans to build a new 628-bed housing complex, a 650-seat dining hall and a conference center. That complex was projected to cost $47.3 million when the College Board approved it.

— from staff and MBJ wire services

Diamondhead casino site wins approval A full service commercial mechanical construction and services company, South Central Heating and Plumbing offers all the services you need to keep your commercial, industrial and institutional buildings up and running, without running up your costs. Taking a comprehensive approach to your building’s heating, ventilation and air conditioning needs, we help you implement HVAC projects and maintenance plans that provide for your systems operating at peak efficiency and reliability.

Call us at 601.982.5351

DIAMONDHEAD — A 400-acre tract of land near the Bay of St. Louis just off of Interstate 10 near Diamondhead has been approved as a location for a casino.

The Mississippi Gaming Commission gave site approval to Diamondhead Casino Corporation. The next time the casino will go before regulators is when financing is in place and the project is ready for construction.

Commission Chairman John Hairston says the site is on the Bay of St Louis, within 800 feet of the water's edge and is zoned for a casino by the city.

The site was found legal in the mid-90s, but in

those days the casino had to float, which made the project much more challenging. Now, the project can be built on land.

The project will include a 300-room hotel.

— from staff and MBJ wire services

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BANKING AND FINANCE

BancorpSouth adding to Louisiana footprint with loan production office TUPELO — BancorpSouth Bank, subsidiary of BancorpSouth Inc., has opened a loan production office in Lake Charles, Louisiana, expanding the bank’s footprint in Southwest Louisiana.

BancorpSouth’s Lake Charles office is located at 4660 Lake Street and provides commercial, real estate construction, and residential mortgage lending, together with a range of related banking services.

Russell Pawlowski, president of BancorpSouth’s Lake Charles market, is a veteran commercial banker having served as a commercial loan officer in the Lake Charles office of a national financial services company, and most

BEANS

recently as a commercial banker for a local Lake Charles bank.

Don Morris, first vice president, is a Lake Charles native and a McNeese State University alumnus. He began his banking career in Houston, Texas, and most recently served with a national financial services company in Lake Charles.

Tammy Murchison, senior loan administration assistant, is also a Lake Charles native and a graduate of Sowela Technical Community College, having previously served with two other Southwest Louisiana banks.

BancorpSouth currently operates 22 full-service Louisiana banking

Continued from Page 3

prices through mid-summer,” Williams said. “We had an extremely low amount of last year’s soybean crop in storage. But now, as we are nearing harvest, we have record acreage and very good crop conditions driving prices back down.”

September soybean futures are trading for $11.24 per bushel. Cash soybeans are trading for about $11.88 per bushel in Greenville, Mississippi, Williams said.

Yields are expected to be high despite the wet weather, which increased fungal disease pressure and made it difficult for some farmers to maintain a timely spray schedule.

MSU specialists keep growers abreast of current crop issues on the Mississippi Crop Situation Blog. On Aug. 16, Tom Allen reported that frogeye leaf spot is the most widely observed disease in fields. Allen is an Extension plant pathologist and a Mississippi Agricultural and Forestry Experiment Station associate research professor.

He has observed frogeye leaf spot as far south as Lamar County and as far north as Tunica and Prentiss counties. Susceptible varieties are heavily infected, and one Lamar County field had a small area of severe blight.

Severely blighted foliage can result in decreased yields, and growers have had a hard time managing the disease in highly susceptible varieties.

“If a fungicide is applied when a tremendous amount of disease is present or when environmental conditions are extremely conducive for disease development, the fungus will overwhelm the ability of the fungicide,” Allen said. “Fungicides have slowed down the disease on sensitive varieties, but that is about all we can hope for in these varieties.”

Allen identified Sudden Death Syndrome in eastern Bolivar County on Aug. 14. He also found a soybean variety infected with stem canker in a strip trial in the Delta on the same day.

As of Aug. 16, soybean rust has not been detected in Mississippi. However, it has been observed as far north as Prattville, Alabama, and in several Louisiana parishes, Allen said.

Angus Catchot, Extension entomology specialist, said insect pressure has been light for the earlyplanted crop. Late-planted beans and double-crop acres have required treatment for bollworm. As the crop gets closer to harvest, farmers will likely see more pests arrive.

“Recently, bean leaf beetles have really picked up and are requiring treatment in many areas of the Delta,” Catchot said. “In coming weeks, we anticipate soybean loopers will show up on the later-planted beans and require treatment.”

— from staff and MBJ wire services

y

locations with approximately $920 million in net loans and $911 million in total deposits. The bank currently serves 14 Louisiana markets, including Shreveport/Bossier City, Monroe/West Monroe/Ruston/Rayville, Lafayette/New Iberia/Broussard, Baton Rouge/Prairieville/Denham Springs and Alexandria/Pineville.

BancorpSouth Insurance Services Inc. has Louisiana offices in Alexandria, Baton Rouge, Hammond, Lafayette, Lake Charles, Metairie and Shreveport.

— from staff and MBJ wire services

12 I Mississippi Business Journal I August 29, 2014

“...our food is coming from Mississippi, our people’s coming from Mississippi, our furniture is coming from Mississippi, our construction is coming from Mississippi. We are a Mississippi place.”

— Chef John Folse

Chef John Folse of New Orleans (left) and Chef Rick Tramonto of Chicago are enjoying the moment as the two are opening A Seafood R’evolution in Ridgeland. The expected opening of the restaurant is November..

It’s all about Mississippi » Chefs John Folse and Rick Tramonto are dotting every ‘i’ and crossing every ‘t’ in the development of Seafood R’evolution, which is set to open in November

By ROSS REILY ross.reily@msbusiness.com Let there be no doubt, chefs John Folse and Rick Tramonto have every intention of opening the finest, nicest and best restaurant Mississippi has ever seen.

The two recently sat down with the Mississippi Business Journal to discuss their vision for the 10,000-square-foot A Seafood R’evolution with seating for 317 which is set to open in November at Ridgeland’s Renaissance at Colony Park.

Their restaurant development company, Home on the Range’s first endeavor, Restaurant R’evolution, opened in the New Orleans Royal Sonesta Hotel in 2012 and instantly won culinary acclaim.

No expense has been spared; every corner has been covered as the worldrenown chefs intend to make their mark and make Mississippi “new culinary epicenter of the South.”

And in taking Mississippi to new culinary heights, they intend to do it with Mississippians, by Mississippians and for Mississippians.

That starts at the top as Folse and Tramonto have moved their corporate headquarters to Mississippi, where they will run their world-wide businesses.

Their corporate offices have moved here out of Louisiana and into Mississippi into Renaissance, because “we want this to be ground zero for us,” as their Mississippi

work will become the staging ground for everything they do after this.

“Rather than moving our office to Louisiana, where I live or to Chicago, where Rick runs (the world-famous Tru Restaurant), we wanted to come to Mississippi to do our business,” Folse said.

Secondly, they didn’t do a nationwide search for chefs. Nearly everyone was hired from Mississippi.

“Everybody is pretty much home grown. We bought one of our sous chefs from New Orleans who became our Chef deCuisine here. We brought our assistant sommelier to become our sommelier here. So, everyone who has been working and helping us in New Orleans the last two years has been given an opportunity to grow,” Tramonto said. “But out of 12 people, only two are from New Orleans and the rest are from Jackson.”

Folse said it is important to make connections with Mississippians.

“We could have brought a whole team of really great culinarians here from across the country, but what we would have missed is the fundamental development of our restaurant companies. And that is about paying homage to region we are in — understanding the region, paying proper respect to the region and cuiSee R’EVOLUTION, Page 13

PHOTOS BY SARAH DILL REILY

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SEAFOOD R’EVOLUTION FACTS AND FIGURES » Executive Chefs: John Folse and Rick Tramonto » Address:1000 Highland Colony Parkway, # 9017 Ridgeland, MS 39157 » Restaurant Phone:601-853-FISH or 601-853-3474 » Website:www.seafoodrevolution.com » Facebook: facebook.com/seafoodrevolution » Twitter Handle:@SeafoodRevJxn » InstaGram:seafoodrevolution Hours of Operation: » Dinner: 5:30 – 10:00 p.m. » Sunday: Jazz Brunch 10:30 am. – 2 p.m.

Dinner 5:00 – 10:00 p.m. » Bar R’evolution:Monday – Wednesday: Open at 5 p.m.

Thursday – Sunday: Open at 11 a.m. » Cuisine: There will be a combination of Folse’s classic Southern approach to seafood with Tramonto’s contemporary new-world style. While paying homage to Mississippi’s heritage, Seafood R’evolution will celebrate a cultural fusion of the foods and flavors that have shaped the culinary landscape of the Gulf Coast.

R’EVOLUTION

Continued from Page 12

sine and how it developed,” he said.

“In order for us to really understand how things work here, it so important that we surround ourselves with the best team we can find locally,” Folse continued That’s what we did in New Orleans and it worked wonderfully.”

They didn’t stop with the staff, either.

While their million-dollar kitchen is still in the production phase, the Revolution staff have been able to step across the street to St. Andrew’s Episcopal School’s upper school campus to use their kitchen over the summer as a test kitchen for menu development.

“The menu is not about Rick (Tramonto) or John Folse.,” Folse said. “The menu is more about what the people of this region expect, while the our chefs enhance the menu with our background, our skills, our interpretation of food.

“So when we first began to journey here, we started off touring the state from the Gulf Coast all the way to Memphis,” he continued. “We looked at the regions of the state. We looked at the agriculture. We looked at the fish farming. We looked at the country hams. We looked at the tamales, everything. We looked at the iconic restaurants. Whether is was Doe’s Eat Place (Greenville) or Ubons BBQ (Yazoo City), it didn’t matter. We had to do our research to understand, first and foremost, what were the roots of the cuisine from blues belt, catfish farming.”

As for the menu itself, Folse and Tramonto say the menu as it will be rolled out will be recognizable for the clientele. Everything will have an order to it.

“You’re going to find a chop steak, but you are going to find it will be done in a ‘Revolutionary’ style,” Folse says. “You’re going to find tamales, but there will be a tryptich of tamales — three or four varieties to showcase the region. You’re certainly going to find all the local fish, and you can get it fried; you can get it broiled; you can get it however you want it..

“Our menu will be participatory. You can decide what you want. It’s not like ‘Here’s our menu, take it or leave it.’ ...”

Bill Johnson of the The Johnson Studio in Atlanta is the lead architect and has designed two main dining rooms inspired by “great Gulf resorts of the past”, a raw bar, three private rooms, outdoor patio dining and Bar R’evolution.

Then, there is the kitchen, which Tramonto touts as “the ultimate kitchen stadium,” for which there are great sight lines from all corners of the dining rooms.

Tramonto says that through the years he has learned more and more,

Chefs Folse and Tramonto are the fun-loving duo opening A Seafood R’evolution in Ridgeland in November.

and this kitchen will reflect that.

“We have beautiful clear walk-in doors to look inside of these beautiful fish coolers and produce coolers. It will be second to none. I am sure the state of Mississippi will not have seen anything like the advances of this restaurant before. From technology to cooking technique.”

“I don’t know if there is a better kitchen in America. I doubt it,” Folse said. “... it’s because we love the best kitchens and that kitchen was needed to deliver the product. Every piece of equipment was designed specifically for a reason as the whole restaurant is.”

And the customers will be on hand for the show.

“They’re watching all the chefs work — pastries being made right in front of everybody. Our raw bar is spectacular. We are going to have a raw bar that is second to none,” Folse said. “I think the restaurant is going to resemble a great community meeting place. It’s so wide open, if you walk in, if you have friends in the restaurant, you are going to see them. They aren’t hidden away somewhere.”

Folse compares the dining area as a great communal eating experience, “the way the South wants to live — an open front porch and a kitchen that is always open to the guests.

“But most important to us, when they look at the menu, they are going to say, ‘Wow, they really studied Mississippi.’ “

Even the construction company is from Mississippi and all of the furniture in the restaurant will be from Mississippi “We were headed to Boston for the furniture until we found out there was a Mississippi furniture building in the Delta. So, we had our designers come in and buy all of our furniture in the Delta,” Folse said.

“So, our food is coming from Mississippi, our people’s coming from Mississippi, our furniture is coming from Mississippi, our construction is coming from Mississippi. We are a Mississippi place.”

It seems no stone has been left unturned.

With the online reservation system, you can choose your table, the date you want to come, the times you can get in. Folse calls the open table reservation system “magnificent.” And all of their online support is coming from, you guessed it, Mississippi in Ridgeland’s maidenish Want wine? The wine list and wine cellar is iPad driven.

“I am sure we missed a few things but I can’t quite figure out what they are,” Folse joked.

So, it doesn’t appear Folse and Tramonto are worried about setting expectations too high. ”If other chefs walk into that restaurant, they are going to say, ‘Wow.’ My God, how did they do this?” Folse said.

14 I Mississippi Business Journal I August 29, 2014

“Obviously, we would love to see a cure. But we want to raise funding so that research continues at least toward an effective early screening.”

“My first thought was this can’t be happening to me — this isn’t real. Then, my next thought was my family. How was I going to tell them?”

Lori Newcomb Wife of Newk’s Eatery co-founder Chris Newcomb

PAYDAY LENDING

Flaggs regrets repayment flaw in lending law » Bill Bynum of Hope Enterprise Credit Union urges legislative to take action to repair glitch

By TED CARTER ted.carter@msbusiness.com

Raising awareness » Newcomb family joins fight against ovarian cancer

By WALLY NORTHWAY wally.northway@msbusiness.com The family of the co-founder one of Mississippi’s most successful restaurants is in a fight against a life-threatening disease, and they are courageously going public with their battle in an effort to raise awareness and save lives.

Early last year, Lori Newcomb, the wife of Newk’s Eatery co-founder Chris Newcomb, began exhibiting symptoms that are common with innocuous women’s health issues — bloating, abdominal pain, difficulty urinating. But, the mother of three initially brushed aside her pains and pushed on with her busy life.

However, the condition persisted, and subsequent tests revealed that Lori had stage IIIC ovarian cancer.

“My first thought was this can’t be happening to me — this isn’t real,” Lori said. “Then, my next thought was my family. How was I going to tell them?”

Indeed, the prognosis was bleak.

More than 15,000 women die each year in the U.S. due to ovarian cancer — more deaths than all other gynecological cancers combined. It is the fifthleading cause of cancer death in American women.

The key to survival is early detection.

“Only 45 percent of women diagnosed with ovarian cancer survive longer than five years,” Lori said. “With early detection and treatment, the rate

increases to greater than 92 percent.”

The problem is that there is no effective early screening test for ovarian cancer; however, tests can help identify women who are at risk for the disease.

To that end, the Newcombs are doing more than just talk about Lori’s health.

The family has launched Newk’s Cares, in conjunction with Ovarian Cancer Awareness Month. Through September, the 70-plus participating Newk’s restaurants will replace their signature black cups with teal cups to raise the spotlight on early detection and continuing research of ovarian cancer. Newk’s will also provide educational information on ovarian cancer signs and symptoms at each restaurant — an ovarian symptoms card — and the story of Lori’s personal journey will also be available to guests in restaurants as well as on the Newk’s Cares website (www. www.newks.com/newkscares).

Newk's will donate a minimum of $15,000 to the Ovarian Cancer Research Fund, or OCRF (www.ocrf.org) as part of its charitable initiative. And on Sept. 25, Lori and Newk's Cares will also raise funds for OCRF through a five-hour Ovarian Cycle indoor cycle event in Jackson, where Newk's is headquartered.

OCRF's Ovarian Cycle Jackson Ready. Set. Ride! will be held at the Country Club of Jackson. Riders pay a registration fee of $50 and set a fundraising goal of at least $250 per

individual rider prior to the event. The fundraising goal for the Jackson event is $50,000.

For more information and/or to register, visit ovariancycle.kintera.org/JACKSON2014.

“Through the courage Lori has shown during her battle with ovarian cancer I know that many women’s lives will be impacted by her story,” said Chris Newcomb, who co-founded McAlister’s Deli in the late 1980s before going on to launch Newk’s 10 years ago. “It is our hope that through her we can improve early diagnosis, positively impact the prognosis for women and keep families together.”

“Obviously, we would love to see a cure,” Lori said. “But we want to raise funding so that research continues at least toward an effective early screening.”

The Newcombs do have hope, and the current news is positive. Lori said she is “feeling good,” is currently in the maintenance phase of her illness and that she hopes other women draw as much inspiration as she has from Newk’s Cares.

“My message to other women is that there is hope,” Lori added. “I urge women to watch for the symptoms.

They might be vague, but if they persist don’t hesitate to go to your doctor.

With early detection and proper treatment, there is no reason why women with ovarian cancer cannot live a long, beautiful life.”

The former chairman of the Mississippi House Banking Committee gave strong support in 2012 to renewal of the state’s payday lending law. The chairman’s enthusiasm even led him to lead the push to remove sunset provisions and make payday lending permanent in Mississippi.

George Flaggs, elected mayor of Vicksburg last year after 26 years in the Legislature, feels differently today. He says he would have fought against the 2012 renewal of the state’s payday lending law had he known it allowed lenders to skirt the 30-day repayment rule.

Flaggs said he saw the 28-30-day repayment period on payday loans as a critical tradeoff to allowing the small-dollar lenders to increase the total amount of a loan and fees from $400 to $500. The new law let the state’s 1,000-plus payday lenders lend the higher amounts but failed to give borrowers the 28 to 30 days to repay the money.

Here is why: The bill as passed allowed for two tiers of loans – those above $250 that would carry a 28-30-day payback period and those below $250 that would set a 14-day repayment. The lower tier loan opened the door, however, for payday lenders to make simultaneous loans at amounts below $250 but totaling nearly $500 in principal and fees and carrying a 14-day payback requirement.

Backed by an opinion from Attorney General Jim Hood, lenders such as All American Check Cashing ceased all tiertwo lending and began limiting their lending to tier one increments, typically four $100 loans. State regulators charge that All American took the additional step of illegally rolling over the tier one loans as a way of getting a tier-two payoff on a tier one loan.

In the time leading to renewal of the Mississippi Check Cashers Act, payday See

PAYDAY, Page 26

August 29, 2014

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Returning life to Fondren After 5 » Sept. 4 event features dog park, music, wall painting

By NASH NUNNERY mbj@msbusiness.com What has four block parties, 30-plus musicians, dog park, skateboard demos, local artists and craftsmen, food, boutique shopping and Ron Chane smiling?

The new and improved Fondren After 5, of course.

Always the first Thursdays of each month, the next Fondren After 5 is Sept. 4 and will feature a dog park and the “live” wall painting with a local DJ pumping out music.

For those unfamiliar with one of Jackson’s most historic neighborhoods, Fondren was once considered the suburbs in the early 1900s. Over the years, it has evolved into a progressive business/residential district and a platform for artists, musicians, entrepreneurs and foodies.

Chane, who owns Studio Chane in Fondren and is a tireless promoter of the iconic neighborhood, remains ecstatic by the enthusiasm generated in 2014 for a monthly event that had become almost passé. He opened Studio Chane in 1996 and has witnessed the growth and transformation within Fondren’s confines, including the rebirth of Fondren After 5.

“Fondren After 5 had become a drink that had lost its fizz,” he said. “The last couple of years, the wheels were beginning to come off.”

Enter Chane, a long-time Fondren businessman and competitive skateboarder. Last February, the south Jackson native offered to revamp the Fondren After 5 format after the event had underperformed in past years.

With the help and blessing of the Fondren Renaissance Foundation, Chane believes he’s on the right track.

“When I approached the Foundation about reviving After 5, I was willing to go at in a rogue fashion,” he said. “We wanted to make this not so much an event but a humble brand.”

In February, the “new” Fondren After 5 debuted on a rainy evening when the temperature dipped to 29 degrees. Despite the inclement weather, Chane was encouraged.

“We actually attracted a huge crowd that evening and it’s picked up steam from there,” he said. “All the ingredients are here

“Fondren After 5 had become a drink that had lost its fizz. The last couple of years, the wheels were beginning to come off.” Ron Chane, Owner, Chane Studio, and Fondren After 5 promoter Ross Reily / The Mississippi Business Journal

Fondren Corner is a recognizable part of the Fondren District, which hosts the “new” Fondren After 5 on the first Thursday of each month. to be successful. Our next step is to take this ‘humble brand’ and turn it into a ‘creative revolution’.”

Preparations for FA5 occupies a lot of his time. Chane estimates that he spends approximately 80 hours a month to put together the Fondren showcase.

“In August, we booked 37 musical acts and we’ll probably have at least 30 or more Sept. 4,” he said. “It’s a lot of work, and that’s not counting the 55 hours a week operating Studio Chane. Jackson deserves this event and it’s certainly worth it.”

The city of Jackson has been “totally cooperative”, added Chane.

“I can’t say enough good things about the Jackson Police Department, specifically Commander McGowan and his officers.

From police to permits, the city has done an outstanding job in helping make Fondren After 5 a success each month.”

Cindy Hatten Smith, manager of Fondren Art Gallery, said the event has only gotten better since Chane took over last winter,

adding that part of the gallery’s contribution to the celebration is giving away mini-prints of owner/artist Richard McKey’s unique watercolor birds. “(Fondren After 5) has always been lots of fun but the event has really ramped up the past few months,” she said. “We’ve seen more music, more people and more participation. For the Fondren merchants, the event is all about making relationships.”

Smith, who grew up on nearby Meadowbrook Road, says the once-a-month celebration attracts an eclectic crowd to the Fondren streets.

“There’s a broad spectrum of people that come here from around the surrounding communities, from families to students to young professionals,” she said.

“Many have only heard about Fondren but then they experience Fondren After 5 and want to return.”

Elise Russell echoes Smith’s sentiments.

“The event has certainly brought out a lot of new people to district,” said Russell, who

serves as general manager of soon-to-beopened wine bar Caet. “Once they get here, they find out how nice it is.”

Using social media has proven invaluable in promoting Fondren After 5. But an oldfashioned flyer campaign in several sister cities surrounding Jackson is equally important, said Chane.

“Word travels fast in the metro area and we’ve flooded the tri-county area with posters and flyers to remind folks from all over about an upcoming Fondren After 5,” he said. “And, on the nights of the event, we leave flyers with redeemable coupons on the cars of people attending that say ‘thank you’ for coming.”

Chane believes the key to FA5’s past and future success is keeping it fresh.

“I like going for the ‘out of box’ experience in Jackson and changing things up each month,” he said. “But we’ll always keep the core element and that’s the charm of Fondren.”

AN MBJ FOCUS:

CONSTRUCTION

Honoring » Engineering council selects 2014 excellence award winners

By LYNN LOFTIN mbj@msbusiness.com

Six Mississippi firms were awarded 2014 top honors for their excellence in engineering by the American Council of Engineering Companies of Mississippi. CEC/MS annually recognizes the year’s most outstanding engineering accomplishments by awarding projects that demonstrate the highest degree of achievement, value, innovation, and integrity.

“We have a lot of engineering talent in Mississippi that people may not realize,” said Judy Adams, executive director of the CEC/MS. “The range of these winning projects is impressive and exciting.”

The Grand Conceptor Award Winner is Compton Engineering Inc., for relocating the Round Island Lighthouse in Pascagoula. Once a navigational beacon for seagoing vessels, the lighthouse was relocated from Round Island to downtown Pascagoula where it was rebuilt to historic standards.

David Compton said, “It is an honor to be recognized by our peers in the engineering community. We are indebted to the various societies devoted to the preservation of lighthouses, the Mississippi Department of Archives and History and local preservationists who listened to our story, responded to our needs, and provided valuable information.”

Compton Engineering, Inc., with offices in Pascagoula, Biloxi and Bay St. Louis, celebrated its 40th anniversary in 2013.

Grand Award Winners were Burns Cooley Dennis, Inc., for the Slope Stabilization Wall for the Southern Portion of Ameristar Casino, and EAI/WEI, LLC, for its innovative work and collaboration with the DeSoto County Regional Utility Authority; Honor Award Winner and People’s Choice Award Winner was Cook Coggin Engineers, Inc., for Corinth Surface Water Facilities Project.

Other Honor Award winners were Neel-Schaffer, Inc., for Columbus Soccer Complex, and Pickering Firm, Inc., for Old U.S. 90 Fishing Pier Reconstruction in Biloxi Bay. ACEC Mississippi is a professional trade association representing the business interests of the consulting engineering profession and offers professional knowledge and services to enhance the quality of life for every citizen in Mississippi. Professional Consulting Engineers design roads and bridges, clean water and waste water systems, structures, mechanical and electrical systems, redevelopment of brown fields, and more.

Photos courtesy of ACEC of Mississippi

Compton Engineering won the Grand Conceptor Award for relocating the Round Island Lighthouse in Pascagoula. .

For more information about the organization, please contact (601) 4202002 or email acecms@comcast.net.

N

August 29, 2014 • MISSISSIPPI BUSINESS JOURNAL • www.msbusiness.com

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EAI/WEI won a Grand Award for its work and collaboration with the DeSoto County Regional Utility Authority.

CONSTRUCTION

18 I Mississippi Business Journal I August 29, 2014

» MISSISSIPPI PROFILE

Targeting goals » COO of TL Wallace Construction keeps eye on revenue growth and profits

By BECKY GILLETTE mbj@msbusiness.com

A

USTIN MORGAN was barely entering the decade of his 30s when he landed a job that was perfect for his skills learned from earlier work experience combined with his construction engineering studies at the University of Southern Mississippi.

Two years ago Morgan was named chief operating officer and secretary/treasurer of TL Wallace Construction Company, one of the state’s largest and most successful construction companies that takes on major commercial, industrial and public works projects throughout Mississippi, Louisiana, Texas, Arkansas, Tennessee, Alabama and Florida.

The 40-year-old construction firm based in Columbia that has about 300 employees has been recognized by the Mississippi Business Journal as one of the top

100 privately owned businesses in Mississippi. The company does all types of construction from asphalt to building bridges, industrial projects and public works projects.

Morgan has been keen on construction since he was a child.

“My family was involved in residential construction as I was growing up, so you might say construction is in my blood,” Morgan said. “As a child, I always gravitated toward building things. Once I decided this was to be my career, I entered the construction engineering technology program at Southern Miss.”

After college Morgan went to work with Southern Tire Mart, learning about real estate and construction. About 2 1/2 years ago the STM owners, Tommy and Jim Duff, purchased TL Wallace ConSee

“My family was involved in residential construction as I was growing up, so you might say construction is in my blood.”

Austin Morgan COO, TL Wallace Construction

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CONSTRUCTION

20 I Mississippi Business Journal I August 29, 2014

Building safely but wisely » Jackson area’s Habitat revises methods to save money for itself and homeowners Special to the MBJ

Ever since Greg Buyan became construction manager of Habitat for Humanity Mississippi Capital Area about a year ago, the organization has been looking at the methods and principles it uses in the homes it builds.

The nonprofit’s first goal is to ensure that its homes are affordable, safe and healthy, sustainable and responsible (less waste, environmentally friendly such as bamboo or stained concrete floors, and energy efficient such as CFL bulbs).

The secondary goal is to use building materials and products that are easily purchased, while utilizing practices that make our houses more efficient — so heating and cooling savings can be passed on to homeowners.

“We’re not trying to reinvent wheel,” said Buyan. “We taking simple processes and using good principles and practices. A lot of the funding is done my grants and to

satisfy those grants, homes must be built to standards, one of which is the Entergy Star 3.0” Among new practices and principles that HFHMCA is utilizing: » Reducing the square footage to 980 (3 bedroom, 1 bath) while max- Buyan imizing the living space.

For example, moving the mechanicals (tankless water heater and furnace) to the attic will save space. Habitat said it wants to make a small house feel as big as possible by having an open living, kitchen and dining area. » Adopting a 40-foot long by 24-foot wide house plan to reduce building material waste. On the sidewalls, it will utilize 10 sheets of 4-foot by 8-foot plywood. On the plywood decking, it will use an 8-foot piece and a 4-foot piece. By designing the house so that few cut as possible are made

on the plywood, it lessens the environmental burden, discarding few pieces. » Decreasing header sizes from 2 by 10 to 2 by 4 and 2 by 6 and using a truss system and a double top plate to strengthen the walls, while still meeting building codes. » Switching to ring shank nails for the sheathing and decking. Unlike a nail with a slick shaft, the ring shank nail has ridges up and down the nail that help to fortify the house. This nail has twice the holding power of a regular nail, HFHMCA said. » Cladding the entire house in OSB (Oriented Strand Board) or plywood to make the structure sturdier and to provide a surface to nail without having to find a stud. » Using 2 by 4 studs 24 inches OC (on center) instead of 16 inches OC. » Wrapping the entire house with ½inch polystyrene or blue board and taping the seams. A donation of materials from Dow Chemical facilitated the adopting of

this practice. This provides an additional R-Value of 3, said Habitat. » Utilizing a .44 vinyl siding and ventilated soffit, eliminating the cost and volunteer labor (usually 3 days) of exterior painting. A group of 12-15 volunteers can now hang the siding in less than a day, said HFHMCA. The siding is cut with either big shears or with a skill saw. The siding does not produce harmful dust and is a certified green rated product. Volunteers nail the siding into place with a roofing tack that is held in place by the blue board, making nailing significantly easier than with siding made from concrete based products.

The homeowner still gets to choose the color of the siding and has 20 colors from which to choose. » Insulating homes with R14-15 blown cellulose (“new wool”) that is insect, roach and fire resistant. This new cellu-

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HABITAT, Page 21

CONSTRUCTION HABITAT

Continued from Page 20

lose also has been endorsed by the EPA as mold resistant, and creates a sound barrier, said Habitat. » Grouping all of the products that use water in order to limit the run of pipes.

Habitat’s goal is to keep the kitchen, bathroom and laundry room all within a 20foot run of the tankless water heater, minimizing the wait time for hot water. » Using programmable thermostats and educating homeowners about their use and the potential energy savings. » Installing bamboo (3/8-inch nailed down bamboo floors with a 30-year warranty) or scored concrete flooring that is environmentally friendly and easy to maintain and using CFL light bulbs. » Installing attic tents on pull down staircases reduce hot air pouring into the house in the summer and cold air in the winter. » Achieving a HERS (Home Energy Rating System — the industry standard by which a home’s energy efficiency is measured) of 67 on an average slab or conventional foundation. The minimum score is 80. The new construction average – using older methods of building – is 100. HFHMCA said it is surpassing that by 33 points and exceeding the minimum rating for a 3.0 Energy Star certified house by 13 points.

August 29, 2014

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MBJ I

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» By using blue board and the R14-15 cellulose insulation, HFHMCA can boost the overall RValue of a house to R17-18. (R-Value is a measure of insulation’s ability to resist heat traveling through it. The higher the RValue the better the thermal performance of the insulation.) This could save a Habitat homeowner up to $35 a month on utility bills, making a difference on a tight budget.

Habitat staff members learned about some of these new principles that have been adopted during a HFHI conference in Florida. They adopted some of the principles referred to as “Miami/Dade County approved” that evolved from the construction challenges posed in Florida by hurricanes. The .44 vinyl siding and ventilated soffit are “green approved” and “Miami/Dade County approved.” They can sustain winds up to 200 miles an hour.

HFHMCA uses products that are easy to come by – that can be purchased at local lumber stores.

Other possible principles to include: » Providing wireless alarm systems accessed through any device with Internet. » Using HVAC systems that comply with Energy Star 3.0 standards. » Installing 3-foot wide door openings and hallways and some ramps and zero curb entrances for easier access for indi-

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22 I MBJ I August 29, 2014

CONGRATULATES

MORGAN Grand Conceptor Award Winner Compton Engineering, Inc. Relocating the Round Island Lighthouse

Grand Award Winners Burns Cooley Dennis. Inc. Slope Stabilization Wall for Southern Portion of Ameristar Casino

EAI/WEI, LLC DeSoto County Regional Wastewater Program

Honor Award Winners Neel-Schaffer, Inc. Columbus Soccer Complex

Pickering Firm, Inc. Old U.S. 90 Fishing Pier Reconstruction

Cook Coggin Engineers, Inc. Corinth Surface Water Facilities

ACEC-MS is the business association of the engineering community. Over 100 member firms design the environmental, transportation, educational and recreational infrastructure that allows the residents of Mississippi to be able to drink clean water, take advantage of new technologies and travel safely.

ACEC “ The Voice of America’s Engineerinng Industry.”

3900 Lakeland Drive, Suite 201, Flowood, MS 39232 Telephone: (601) 420-2002 Facsimile: (601) 420-2315 Website: www.acecms.org Email: acecms@comcast.net

CONSTRUCTION Continued from Page 18

struction and Morgan was given the opportunity to learn that business and become the COO, chief operating officer.

As COO of TL Wallace, he manages the operations — the day-to-day activities — of the company.

“Tommy and Jim Duff are great to work for,” Morgan said. “They are entrepreneurs and I have learned so much from working for them and being given great opportunities to grow and succeed in the construction business. When the Duffs acquired TL Wallace, it became part of a two-billion-dollar company and that strength gives the construction company and me tremendous advantages in the business arena. The Duffs’ challenge was to grow revenue 20 percent per year and achieve a five percent profit before taxes. And, we have more than met that challenge each year.”

Morgan said the key to success in his profession is keeping an open mind and possessing the ability to task outside of your description.

Morgan grew up in Clinton and attended Central Hinds Academy through the sixth grade and then transferred to Terry High School. His first job after college was with Mike Rozier Construc-

tion Company, where he learned a lot about commercial construction.

“I was building everything from dollar stores to tire stores, and that is how I came to know Tommy and Jim Duff,” Morgan said.

Projects the company has been involved with include the Nissan Plant in Canton, the Texas Chenier Plains Visitor Center project, the Hillsdale Water Treatment Plant and a new sanctuary for Woodlawn United Pentecostal Church in Columbia.

The different divisions at TL Wallace include commercial, industrial/plant, disaster response, heavy civil, excavation, asphalt and utilities. Each division has been impacted differently by the economic recession.

“Our heavy civil division is very strong, but funding issues regarding highway projects and state construction are always a concern,” Morgan said. “All our divisions are on the upswing and we are confident we can continue to grow our share of the construction business not only in Mississippi, but the Gulf South.”

Morgan, who is married with two children, loves his work but also puts a major focus on having a healthy balance between work and family time. “I enjoy landscaping, gardening, and building things…just what you’d expect,” he said.

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August 29, 2014 • MISSISSIPPI BUSINESS JOURNAL • www.msbusiness.com

AN MBJ FOCUS:

REAL ESTATE

Flipping out? » Flipping houses is popular in much of the country, but in Mississippi ...

By BECKY GILLETTE mbj@msbusiness.com

Cash purchases of homes in the U.S. have reached an all-time high representing

one in three purchases. And while many of those are people who are buying a personal home or second home, a significant number are purchasing the homes as investments either to offer as rentals or to “flip”.

The idea is to buy low, make some improvements and sell quickly at a good profit. But while there have been fortunes made by flipping, there are also perilous downsides. Just ask Bank of America, which recently agreed to pay nearly

$17 billion to settle claims from the government that it sold risky, mortgagebacked securities to investors before the housing bubble burst in 2007. With many of those mortgages, homes were being flipped so often it ended up with dizzying consequences.

As home prices have retreated significantly across the country, flipping is starting to become popular again. But real estate sources contacted say Mississippi is not quite as “flippant” as states where average real estate values are much higher.

“This is not a flip state,” said Cynthia Joachim, broker associate with Coldwell Banker Alfonso Realty Inc., Gulfport.

“You buy in states like Mississippi, you buy to hold. We don’t see much flipping here because we

don’t have the business climate for it. For a flip market to work, you need a constant flow of buyers moving quickly. Real estate is best as a long-term investment. It was never intended to be a liquid investment.

When it is treated as a liquid investment, that is dangerous for investors and the economy.”

Joachim said there are people on the Coast who thought flipping was the game to play, and they got hurt; they had trouble getting their money back, let alone a profit.

“It is an economic process that can make someone a lot of money, but there are a lot of variables,” Joachim said. “You must not have a huge aversion to risk. And there are significant tax consequences. Sometimes people think they can pay $50,000 for a house, and sell it for $100,000. Then, after fixing it up, they have trouble getting $60,000. We don’t have the kind of mentality that when other areas are booming, we are booming in the same path. People read all these reports about flipping in Southern California and South Florida.

See

FLIPPING, Page 24

REAL ESTATE

24 I Mississippi Business Journal I August 29, 2014

FLIPPING

“It’s important to make good choices and good investments. If purchasing a flipped house, it’s wise to know who the seller is and their reputation.�

Continued from Page 23

These markets have some inherently strong economic qualities about them. They have tremendous international markets. New Orleans is the same. “Flipping is not for everybody and not for every region. As long as property values are appreciating, flipping works.

When property values are falling, you don’t know when to buy and you can’t know when to sell.�

According to RealtyTrac’s most recent report, the rate of flipping is slowing down from the levels seen in 2012 and 2013.

Most home buyers being seen by Ken Austin, broker\owner Mississippi Coast Realty, are people who are buying to thicken their rental pool. “I have not seen a lot of people house flipping,� Austin said. “I saw a lot of foreclosures and 90 percent of the foreclosures we sell are for rental properties.�

Tommy Morgan, owner of Tommy Morgan Inc., Realtors, said the Tupelo and Oxford area are experiencing hot markets which make both purchasing a house for investments or for flipping more attractive to investors. But he has seen more of an increase by investors planning to hold the properties for rentals than people who purchase for house flipping.

Tommy Morgan Owner, Tommy Morgan Inc. Realtors

Flipping usually takes significant cash for the purchase and any repairs or upgrades that are necessary, a willingness to take risks, and an ability to wait if the home doesn’t sell quickly. “It’s important to make good choices and good investments,� Morgan said. “If purchasing a flipped house, it’s wise to know who the seller is and their reputation.�

Kris Davis, broker/owner, Re-Max Partners, Starkville and Columbus, said they have seen some success in the Golden Triangle area with investors flipping houses. “We do have investors in our area who make it a practice to purchase homes that may be in foreclosure or in disrepair with the intention of renovating the home for resale,� Davis said. “These investors are able to purchase the home at a reduced price because the repairs that are needed prevent the home from qualifying for a traditional mortgage. Investors purchase

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by cash or an in-house bank loan that does not have the same requirements for the condition of the home.�

Once purchased, the investor may make cosmetic changes like paint and flooring to update the home or may complete a much more involved renovation with a new roof, new appliances, and extensive repairs to the structure. After these repairs are complete, a traditional buyer is then able to purchase the home with a home mortgage because it will meet the necessary requirements for the condition of the property. “The home is easier to sell because the repairs have updated the home and removed the need for the homeowner to take on the repairs and renovations,� Davis said. “Homebuyers these days have expectations for a home to be in tip-top shape. Investors may stage the home with furnishings to make it even more attractive to potential purchasers.�

Regardless of whether a home has been renovated by an investor or is being sold by the current homeowner, Davis said they always recommend a home inspection. “A prospective home buyer will want to make sure that there aren’t any surprises behind the walls like electrical, plumbing, HVAC or roofing repairs,� she said. “Placing new carpet in a home may appeal to a buyer when they enter a home. However, they will want to make sure that the new carpet isn’t covering a problem like a rotten subfloor below.�

She sees that most investors do their homework before making a purchase: They are familiar with the comparable sales in the area and have an idea of what the property will sell for after renovation. They factor in the repairs that will be needed and a profit for themselves. Renovations can take from a few weeks to several months. The longer the renovation takes, the more it will cost the investor in interest on the loan and in time to oversee the project.

Sometimes there is more at play than just a hunt for profits. “Some investors have a passion for taking a property in disrepair and restoring it to its former glory,� Davis said. “In fact, they may purchase additional properties within the same area to renovate and make an improvement in the overall neighborhood by renovating multiple properties.�

COMMERCIAL DEVELOPERS

August 29, 2014

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Company

Address

Phone

Website

Top Officer

The Chamblee Co. Inc.

4349 Lakeland Dr., Flowood, MS 39232

(601) 939-1281

www.chambleeco.com

Rodney Chamblee

COMVEST Properties, LLC

286 Beauvoir Rd., Ste. 200, Biloxi, MS 39531

(228) 594-3400

www.comvest.net

D. Brooks Holstein

Duckworth Realty Inc.

308 E. Pearl St., Ste. 200, Jackson, MS 39201

(601) 914-0800

www.duckworthrealty.com

Ted Duckworth

H.C. Bailey Companies

1022 Highland Colony Pkwy., Ste. 300, Ridgeland, MS 39157 (601) 853-8000

www.colonypark.org

H.C. “Buster” Bailey Jr.

Kerioth Properties

P.O. Box 16436, Jackson, MS 39236

(601) 368-9950

www.kerioth.com

Clint Herring

London & Stetelman Commercial Realtors

3906 Hardy St., Ste. 20, Hattiesburg, MS 39402

(601) 268-8770

www.londonandstetelman.com

Andy Stetelman

The Mattiace Company

125 S. Congress St., Ste. 1800, Jackson, MS 39201

(601) 352-1818

www.mattiace.com

T. Andrew Mattiace

Peters Real Estate

2306 N. State St., Ste. 201, Jackson, MS 39216

(601) 362-8440

www.petersdev.com

Mike Peters

Ridgway Lane

10 Canebrake Dr., Ste. 110, Flowood, MS 39232

(601) 936-9910

www.ridgwaylane.com

David L. Lane

T.L. Brown Properties

1991 Lakeland Dr., Ste. J, Jackson, MS 39216

(601) 981-1170

www.tlbrownproperties.com

Tim Brown

Tellus Development, LLC

12287 Hwy. 49, Gulfport, MS 39503

(228) 832-8302

www.tellusdevelopment.com

T. Davis Gordon

Watkins Development, LLC

300 W. Capitol St., Ste. 201, Jackson, MS 39203

(601) 354-3660

www.watkinspartners.com/ David Watkins DowntownJackson/dowtownjacksonpage.htm

Source: Mississippi Main Street Association. Please send questions and comments to Wally Northway at research@msbusiness.com.

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26 I Mississippi Business Journal I August 29, 2014

» WAGE & HOUR by Trey C. Dellinger

Employers, get a handle now on compliance U cember, 2010, when DOL began including in the 16(b) letters a toll-free number that employees can call to access a lawyer referral service.

This increased regulatory emphasis on wage and hour enforcement has produced an enormous boom in wage and hour litigation. Between 2001 and 2009, federal court wage and hour litigation filings increased nearly threefold. In recent years, total wage and hour settlements and judgments are estimated to exceed $1 billion annually.

An aggrieved employee may sue on his own behalf, or may sue on behalf of other similarly situated employees in what is known as a “collective action.” Other employees must “opt in” to the suit by filing a written consent with the court. An employee who is successful in bringing a FLSA claim can collect back wages, liquidated damages in an amount equal to the back wages, as well as interest and attorneys’ fees.

The overtime regulations are com-

NDER THE FAIR Labor Standards Act (FLSA), most employees in the United States must be paid the federal minimum wage or greater for all hours worked and overtime pay at time and one-half their regular rate of pay for all hours worked in excess of forty (40) hours in a workweek.

The FLSA provides an exemption from minimum wage and overtime pay requirements for employees that qualify for certain exemptions under the Department of Labor (DOL) regulations.

There are exemptions for bona fide executive, administrative, professional and outside sales employees. There is also an exemption for certain computer employees. However, these exemptions are terms of art and should not be evaluated according to their customary meaning.

Qualifying for the exemptions is not merely a matter of job titles. To qualify for these exemptions, employees generally must meet certain multi-factor tests set forth in DOL regulations related to

their job duties and their salary.

Wage and hour law compliance is an area of increased focus for federal regulators. In 2009 and 2010, DOL hired approximately 300 Trey Dellinger additional investigators. The Wage and Hour Division of DOL collected approximately a quarter of a billion dollars in back wage penalties from employers in fiscal year 2013.

In addition to the threat of DOL Wage and Hour investigations, employers must be concerned with the threat of private lawsuits. When the Wage and Hour division completes an investigation, it may file suit or, if it elects not to file suit, generally sends employees a letter, known as a “16(b) letter,” informing them of their right to file suit. The likelihood of a private lawsuit increased even further in De-

PAYDAY

“I never intended to allow $500 in loans (and fees) in $100 increments. If payday lenders are doing something different, it is incumbent on legislators to tweak the law.”

Continued from Page 14

lenders had argued against setting the longer repayment period, saying it would diminish their cash flow by having loan money out for extended times.

Flaggs said in an interview last Friday “the intent of the law” was not to allow lenders to use the tier one loan to by-pass the longer repayment period.

“I never intended to allow $500 in loans (and fees) in $100 increments,” he said. “If payday lenders are doing something different, it is incumbent on legislators to tweak the law.”

Flaggs’ successor as House banking chairman, Rep. Henry Zuber III, insisted in a recent interview that he sees no point in making a fix. That’s a job for the federal Consumer Financial Protection Bureau, he said, referring to the 3-year-old watchdog agency created through the Dodd-Frank Wall Street Reform and Consumer Protection Act. “I’m waiting to see what they do,” Zuber said, and added he expects the CFPB to take full control of payday lending policies and rules across the country, limiting the states to decide whether to allow the lending.

Zuber’s Senate counterpart, Gary Jackson, agreed. The Bureau “will take a fairly strong stance in the near future, perhaps as early as November,” said Jackson, chairman of the Senate Business & Financial Sector Committee, in a recent interview.

George Flaggs Vicksburg mayor and former legislator

Though it has issued a pair of white papers with disturbing findings on payday lending and levied multi-milliondollar fines for payday lending violations, the CFPB has not signaled that new rules are imminent.

A spring 2013 white paper found twothirds of borrowers in a data sample the agency used took out seven or more loans in a year. “Most of the transactions conducted by consumers with seven or more loans were taken within 14 days of a previous loan being paid back — frequently, the same day as a previous loan was repaid,” authors of the white paper said.

“Similarly, over half of deposit advance users in our sample took out advances totaling over $3,000. This group of deposit advance users tended to be indebted for over 40 percent of the year, with a median break between advance balance episodes of 12 days or less,” the authors said.

A cooling off period between loans is among measures the CFPB is studying.

But it is unclear whether the Bureau is ready to do the rule-setting takeover envisioned by Rep. Zuber and Sen. Jackson.

“The CFPB is considering whether rules

governing these products are warranted under CFPB authorities, and if so what types of rules would be appropriate,” CFPB spokesman Sam Gilford said in an email last week. “Rulemaking might include disclosures or address acts or practices in connection with these products.”

A Mississippi member of the CFPB’s advisory board, Hope Enterprise Credit Union CEO Bill Bynum, said he is confident the Bureau will set some new rules.

But until it does, legislators should fix the payday lending law glitches that he believes have made poor Mississippians even poorer, Bynum said.

“I think it is unfortunate the Legislature is unwilling to fix the flaws in the current legislation,” he said in an interview last week.

That Mississippi has the highest percentage of payday loan borrowers and the highest cost of borrowing should spark urgency among lawmakers, Bynum said, bemoaning what he said is the outsized influence the payday lending lobby exerts on legislators.

“It is frustrating to see this allowed,” he said. “While the Legislature is waiting for the CFPB to act, we have thousands of peo-

plicated and convoluted. President Obama acknowledged this in a March 13, 2014 memorandum to the DOL, ordering the Secretary of Labor to “simplify” and “streamline” the regulations. DOL is currently working on adopting final regulations.

Employers should not to attempt to analyze the overtime regulations on their own to determine whether their employees qualify for an exemption. Nor should employers wait to assess their compliance until after DOL begins an investigation or an employee makes a complaint. Fines, civil penalties and legal fees incurred in defending FLSA litigation can devastate a business. Employers should minimize this exposure by obtaining legal counsel to review their FLSA compliance and to develop a plan for remediating noncompliance.

Trey C. Dellinger, an attorney and Member of Wells, Marble & Hurst, PLLC, lives in Madison.

ple who are getting into debts they can’t afford to pay. So I hope they will reconsider the urgency of this.”

Bynum’s role on the advisory board during his two-year stint has included briefing members on Mississippi’s payday lending practices and their effects. He wants restrictions put in place that go beyond fixing the glitch that allows the 14-day loan periods on loans and fees up to $500.

Whether achieved through the Legislature or the CFPB, limits should e placed on the number of loans a borrower can have at one time from different lenders, he said.

He further wants an “ability to repay” rule. Such a provision would require lenders to check the financial health of the borrower and attest in issuing the loan that it found the borrower had an ability to repay.

Hope Credit, Bynum said, “could not exist if we didn’t have the ability to sit down with the borrower and assess an ability to repay.”

The ability to repay rule could work along the lines of a similar rule the CFPB established for home mortgage loans, according to Bynum.

As a financial sector executive, Bynum said he understands the anxieties lenders have over the CFPB’s stated intentions to closely regulate not only payday lending but also practices involved in activities such as used car loans, student loans and automatic bank drafts.

“You’ve got a lot of issues that are at play here and need attention,” he said. “The Bureau is going to look at all that and try to add some sanity.”

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» MISSISSIPPI LEADERS by Martin Willoughby

Calmness of mind ‘Stress management doesn’t get enough attention as a leadership quality’

O

ne thing I have noticed about truly effective leaders is that they are able to keep good perspective and know how to effectively handle stress. They are “cool” under pressure.

We tend to think in extremes as it relates to stress. The goal is not to eliminate stress from our lives or we will never grow. Sports psychologist and executive coach Dr. James Loehr noted, “Stress pushes us to expend energy emotionally, physically, mentally, and spiritually. Then comes a period of recovery and healing — and growth.”

However, too much stress with no perspective can lead to trouble as well. Author James Allen said: “The more tranquil a man becomes, the greater is his success, his influence, his power for good. Calmness of mind is one of the beautiful jewels of wisdom.”

My interviewee this week, Mike Morgan, is one of the most effective leaders I have ever observed in keeping perspective and remaining calm in the face of uncertainty.

Morgan, a Clinton native, served as CFO, and later as president, of Bomgar Corp. until he recently accepted a position as a profes-

Up Close With ... Mike Morgan Title: Visiting Professor of Practice in the Department of Finance (School of Business), University of Southern Mississippi; Advisor to Bomgar Corporation.

First job: “David Boteler gave me my first job working at the pro shop at Tennis Center South when I was in high school. His management style was like a coach. He was the kind of boss you didn’t want to let down.”

Favorite books: Rising Tide by John Barry; Atlas Shrugged by Ayn Rand.

Proudest moment as a leader: “I’ve had several people that I have managed go on to have great careers. Playing a part in other people’s success is rewarding. And when they call and ask my advice, it’s that much better.”

Hobbies/Interests: Running and watching football and baseball.

sor at the University of Southern Mississippi. Morgan received a bachelor degree in accountancy from Ole Miss and later a MBA from Mississippi College and a Certificate of Professional Accountancy from the University of West Florida.

Morgan, a licensed CPA, began his career as an auditor with Arthur Andersen and later worked for LDDS Communications as a Corporate Development Manager. Prior to joining Bomgar in 2006, Morgan had served as CFO for Touch One Communication, Trinsic and American Healthtech.

Morgan shared, “Stress management doesn’t get enough attention as a leadership quality. At every level of the organization, you have employees that really care about what they are doing and employees that

don’t care. The ones that care feel stress, because they want to do a good job. Those are the ones that perform and rise up through the organization. They get more responsibility, so they feel more stress. There is a healthy level of stress that keeps us pushing forward. But there is an unhealthy level of stress that kills performance and can consume people. A leader has to recognize the level of stress of his high-performing employees and help them keep it from becoming unhealthy.”

Morgan also emphasized that perspective is also important for a leader. He noted, “Being able to discern what really deserves your time and attention, and helping employees discern what really matters is a big part of leading.”

Morgan shared with me additional wisdom for future leaders. “Employees need to know you believe in them and you have high expectations,” he said.

“They will want to live up to the expectations. Martin Willoughby When its game time, you don’t hear coaches nitpicking every little flaw of the team. The pregame talk is all about believing in the team and setting high expectations. On Monday you review the film and make some corrections, but pretty quickly you are back to building folks up.”

Morgan helped entrepreneurial founder Joel Bomgar lead Bomgar Corp. through eight years of high growth, which led to a successful recapitalization by TA Associates in May. After helping with the transition, Morgan decided to pursue teaching full time. He had previously taught part time as an adjunct professor at Mississippi College and Holmes Junior College.

Morgan shared: “I am very excited about the opportunity at USM to work with students and help prepare them for their future. In my brief tenure so far, I have been very impressed with the institution and the quality of students. They are going to keep me on my toes!”

I am excited that these students will benefit from not only Morgan’s expertise in finance and accounting, but also as an extremely effective and balanced leader.

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.

A fascinating look at historical characters

S » Freud's Mistress

By Karen Mack and Jennifer Kaufman Published by the Penguin Group $16 softback

igmund Freud, an Austrian neurologist who became known as the founding father of psychoanalysis, is one of the most famous names in medicine. His break through research led to major changes in the treatment of psychiatry. Not a lot of information is documented about his relationship with Minna Bernays, his wife's sister, thought to have been Freud's confidante and mistress.

Following the death of her intended husband and a series of unsatisfactory positions as governess and ladies' companion, Minna Bernays took up residence in the Vienna home of her sister and brother-in-law, Martha and Sigmund Freud. It was the late 1890s and there were few avenues open to well-bred, unmarried young women.

Also, it was not easy for a woman to find intellectual stimulation. Bernays was well read, rebellious and independent — traits now admired but not so in turn-of-the-century Vienna.

Many historians and researchers believe Bernays found intellectual stimulation, and perhaps emotional fulfillment as well, with the compelling and controversial Freud. Minna is said to have been very different from her inhibited sister. Freud described Minna as his closest confidante and has been called his muse.

The Bernays sisters were reared in an Orthodox Jewish home, granddaughters of a noted Rabbi. Freud, who was also Jewish, did not allow them to practice Jewish customs in his household. If the physical relationship between Minna and Freud was true, what might have been her feelings of guilt?

And how would it have altered her relationship with her sister?

The book explores all the possibilities of the members of this household. It also reveals Freud as a flawed, egotistical man with eccentric tastes and addictive habits, surprisingly lacking in empathy with the women in his life. Among the most famous quotations attributed to him is this: “The great question that has never been answered, and which I have not yet been able to answer, despite my thirty years of research into the feminine soul, is 'What does a woman want?'”

There is much to ponder in this book, which is a work of fiction supported by numerous academic suppositions about the relationship between Freud and Minna Bernays. One fact cited to support that she was his mistress is a guest register from a Swedish lodge during a time Freud and Bernays were known to be traveling together in which he signed the register as Mr. and Mrs. Sigmund Freud. It's food for thought about two interesting people during an interesting time.

— Lynn Lofton, mbj@msbusiness.com

NEWSMAKERS

28 I Mississippi Business Journal I August 29, 2014

Coats selected as dean Dr. Karen S. Coats, a decorated scholar with nearly 25 years as an educator and administrator, has been named the new dean of the Graduate School at the University of Southern Mississippi. Coats, a native of Springfield, Louisiana, comes to Southern Miss from Mississippi State University in Starkville where she has spent the past three years as associate dean of the Graduate School. A professor in the Department of Biological Sciences, she has served as a member of the university’s faculty since 1990.

Coats received her bachelor of science from Southeastern Louisiana University in 1981; her master’s in biology, with a concentration in microbiology, from Southeastern Louisiana University in 1983; and her doctorate in veterinary medical sciences, with a concentration in virology, from Louisiana State University in 1987.

Named a John Grisham Master Teacher in 1996, Coats has also served as an adjunct instructor in the research program at Mississippi State’s College of Veterinary Medicine since 1992.

Her distinguished career includes numerous awards, including the Outstanding Graduate Student Mentor Award (2011); StatePride Award – Dr. Nino A. Bologna Faculty Award (2010); Research Award for Natural & Physical Sciences and Mathematics & Statistics (2010) and Faculty Recognition Award for Upper Level Undergraduate Teaching (2005).

Coats takes over for Dr. Maureen Ryan, who has served as interim dean of the Graduate School since February when longtime Dean Susan Siltanen passed away.

Hudson goes to Baptist Baptist Memorial Hospital-Golden Triangle welcomes new OB/GYN Clay Hudson, MD, to its medical staff. Hudson received his bachelor’s degree in molecular biology from Millsaps College. He is also a graduate of the University of Tennessee College of Medicine in Memphis. Hudson completed his internship and residency in obstetrics and gynecology at the University of Mississippi Medical Center in Jackson.

He comes to Columbus from Tupelo where he was in private practice.

Hudson is a member of several professional organizations including the Mississippi State Medical Association, the American College of Obstetricians and Gynecologists and the American Board of Obstetricians and Gynecologists. He is board certified by the American Board of Obstetrics and Gynecology.

ABOTA selects Byars Wilton (Trey) V. Byars III of the law firm Daniel Coker Horton & Bell, P.A., has been named a member of the American Board of Trial Attorneys (ABOTA). Byars was a recipient of the 2012 Mississippi Business Leadership in Law Award, and has been recognized by Best Trey Byars Lawyers in America and MidSouth Superlawyers. He is the past president of the Mississippi Defense Lawyers Association and sits on the Mississippi Board of Bar Admissions.

Byars is a director in the Oxford Office of Daniel Coker Horton & Bell.

Broadband Voice names execs Ben Sims has been named vice president of operations at Broadband Voice.

Sims joined the company in 2008 as director of VoIP. Prior to joining Broadband Voice, he worked Harrell Contracting Group and has applied his technical expertise by making a hobby out of installing audio, video and network equipment. Sims is a graduate of the University of Southern Mississippi.

Broadband Voice has also named Michael Fowler vice president of sales. Fowler began with the company as a sales consultant in 2006 before becoming director of sales in 2013.

Before joining Broadband Voice, Fowler worked at Mississippi Ben Sims Diagnostics lab. He is a graduate of the University of Alabama. Active in the community, Fowler has served as a Parish Council member of Holy Trinity St. John Greek Orthodox Church since 2011. He is also heavily involved in Greekfest, serving as the sponsorship chairman since 2012, and he is set to be the chairman in 2015.

Michael Fowler Also, Laura Johns has joined Broadband Voice as vice president of marketing and corporate development. Johns has nearly a decade of experience in the utility and telecommunications industries, serving in various marketing roles at Itron (formerly SmartSynch), based in Spokane, Washington. Johns earned a bachelor of science degree in communication studies from Mississippi College and a master of arts degree in advertising and public relations from the University of Alabama. She is a Leadership Greater Jackson (LGJ) graduate and served on the LGJ board as the marketing chairperson for three years. She also served on the board of the Young Professionals Alliance of Jackson for five years.

Laura Johns

Gunn elected vice chair

MDOT chooses Hailey

Delegates to the 68th Annual Meeting of the Southern Legislative Conference (SLC), the Southern Office of The Council of State Governments, have unanimously elected Speaker Philip Gunn of Mississippi vice chair of the Conference. As vice chair of the SLC, Gunn will assist the chair in executing the activities of the Conference, guide the Conference in policy deliberations and serve as liaison to the House and Senate leaders of the member states.

The Mississippi Department of Transportation recently named Kent Hailey of Macon as area superintendent. In his new role as area superintendent, Kent will provide managerial and supervisory support for all highway maintenance operations within Leake, Noxubee, Neshoba and Kemper counties.

Kent graduated from Mississippi State University with a bachelor of science degree in general business.

He has spent 27 of his 30-year tenure as a county superintendent at MDOT.

Hibbard, Gay recognized The Floor Trader recently congratulated Ed Hibbard and Bill Gay for 10 years of continuous service to the flooring company. Hibbard is the store manager of the Floor Trader of Gautier. Gay is a flooring specialist at the Floor Trader of Gulfport. Both have earned their Million Dollar Club rings for achieving outstanding sales.

Powell makes history Kishia L. Powell, P.E., has been named the city of Jackson’s public works director, making her the first woman to ever hold the position. Powell has 16 years of experience and expertise in sustainable infrastructure management and utility operations. She’s served municipal clients across the U.S. and London, England.

In 2008, Powell was named head of the Bureau of Water and Wastewater for the city of Baltimore, Maryland. During her career, she worked in the United Kingdom, including as lead engineer for detailed design and construction of a flooding alleviation scheme to comply with the Thames Water AMP4 program in London. Powell was most recently with AMEC, serving as business development lead for the Chesapeake Bay region.

Sanchez added to faculty Dr. Rafael Sanchez, a native of Spain and a respected educator of the Spanish language, has joined the faculty of William Carey University as professor of Spanish. Sanchez previously taught Spanish at the University of Southern Mississippi. He began his employment with USM in January 1981 and served as chairman of the Department of Foreign Languages and Literatures from 1995-2004. He has also worked with USM’s Office of International Programs, where he was heavily involved in creating and managing study abroad programs since 1997. He served as both director of international programs and director of the Center for International Education.

Sanchez has worked with the Mississippi Foreign Language Association in various capacities and served as president from 1998-2000. He is the developer of CATPRI (Computer Aided Total Physical Response Instruction), an interactive computer program to enhance foreign language teaching. He has also worked as director of liturgical ministries and director of Hispanic ministry at Sacred Heart Catholic Church in Hattiesburg.

Prior to coming to the United States, Sanchez worked as a missionary in Uganda for 12 years.

He received his Ph.D. in Spanish language and literature from Tulane University in 1992 and his M.A. in liturgy at the Catholic University of America in Washington, D.C., in 1978.

Blackbourn elected Richard L. Blackbourn, who has led the Mississippi State University's College of Education since 2005, is beginning a twoyear term as president of the Mississippi Association of Colleges for Teacher Education.

Blackbourn previously served seven years on MACTE's execuRichard Blackbourn tive board and two years as its president-elect.

A Mississippi State alumnus, Blackbourn has more than 30 years in the profession. In addition to Lowndes County, Natchez and Pascagoula, he held earlier teaching and administrative posts at Northeast Louisiana and Clemson universities. His three degrees from Mississippi State include bachelor's and master's degrees in elementary education in 1974 and 1976, respectively, and a doctorate in educational leadership in 1983.

Beard again accepts chair John B. Beard of Baker Donelson has accepted the chair position for the Governance Affinity Group of the American Health Lawyers Association (AHLA) for the sixth consecutive year. Beard is a shareholder in Baker Donelson's Jackson office. His practice is primarily in the areas of business and health care transactions. John B. Beard A 1990 magna cum laude graduate of the University of Mississippi School of Law and a 1991 graduate of New York University with a masters in taxation, Beard has previously served as the vice chairman of the Tax and Finance Practice Group of AHLA. He is an active member of the Taxation Section and Health Law Section of the Mississippi Bar Association, and has been listed in Mid-South Super Lawyers since 2006, and The Best Lawyers in America since 2009.

Miller honored for service Margaret Miller, executive director of the Ocean Springs Chamber of Commerce-Main Street-Tourism Bureau, was recently honored for more than 25 years of leadership within the community at the Mississippi Main Street Association Awards Luncheon and National Main Margaret Miller Street Conference. During the Mississippi Main Street Association’s Annual Award Luncheon, Miller received a round of applause for serving as a prominent leader of main streets, preservation and economic development in Ocean Springs. At the National Main Street Conference, Miller was one of only a handful of directors honored for her years of hard work and development through the main street program.

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

NEWSMAKERS Gay to get honorary degree Dr. Hannah Gay, professor of pediatrics at the University of Mississippi Medical Center, received an honorary doctor of humane letters degree at William Carey University’s commencement on Aug. 9. Gay will also was the speaker for the graduation ceremony, which honored graduate students on the Hattiesburg campus.

Gay, a Mississippi native, received her bachelor’s degree in biology and chemistry at the University of Mississippi. She earned her M.D. from the University of Mississippi School of Medicine in 1980, where she also completed residency training in pediatrics.

Gay and her husband, Paul, served for six years in Africa as missionaries in Ethiopia before returning to the United States, where she joined the UMMC faculty in 1994 as a pediatric HIV specialist.

Along with colleagues Dr. Katherine Luzuriaga, a University of Massachusetts Medical School immunologist, and Dr. Deborah Persaud, a Johns Hopkins Children’s Center virologist, Gay earned international attention at an infectious diseases conference in 2013 where Persaud presented their case report on the “Mississippi Baby.” The report detailed how Gay administered an early, three-drug treatment regimen to a newborn infected with HIV, which appeared to have prompted remission of the HIV disease in the child.

The report was then published in the New England Journal of Medicine. TIME Magazine later named the three to its 2013 list of the “100 Most Influential People in the World.” In July 2014, after 27 months of remission, the virus was again detected in the child during a routine clinic visit and blood test.

Gay has spoken at UNAIDS, the Joint United Nations Programme on HIV/AIDS special symposium in Durban, South Africa, and at the Oxford Union in the United Kingdom. Among other roles, Gay has served as a member of the American Academy of HIV Medicine and the Ryan White Title IV HIVQUAL Advisory Committee.

Green replaces Shaffett Rita Green, an experienced consumer economics professor, has been named the new family financial management specialist for the Mississippi State University Extension Service. Green most recently has served as an assistant professor of human development and family studies with an emphasis in consumer economics in the MSU School of Human Sciences. She Rita Green has also been an Extension area agent in family resource management in the Northwest Extension District.

An Extension employee since 2008, Green is a NeighborWorks certified housing counselor and serves on the Federal Reserve’s Community Development Advisory Council for the Eighth District. She earned her bachelor’s degree from the University of Tennessee at Martin and an MBA from the University of Memphis. She received her doctorate in adult education from the University of Memphis in 2012.

Green fills a vacancy left by the recent retirement of Bobbie Shaffett, who served as the family financial management specialist since 2004.

August 29, 2014

Snyder becomes youngest NAIFA president Camille Snyder has been elected president of the National Association of Insurance and Financial Advisors (NAIFA) in Jackson for the 20142015 term. At age 29, she is the youngest NAIFA-Jackson president in the organization’s 56-year history. Snyder is a sales manager with Allen Financial Group, the Guardian Life general agency in Mississippi. She successfully completed Guardian Life’s Leadership Camille Snyder Institute in 2013.

Snyder began her career with a technology firm in Washington D.C., but after spending nearly two years unable to work due to a life-threatening illness, she became passionate about individual disability insurance and decided to join the industry in which her father, mother, grandfather and great-grandfather have worked.

Snyder currently is state chair of the Young Advisors Team (YAT) for NAIFA-Mississippi. She is a past vice president and secretary/treasurer of NAIFA-Jackson. Snyder also is a graduate of NAIFA’s Leadership and Life Institute Program (LILI). She recently was honored as 2014 Young Advisor of the Year by NAIFA-Jackson.

In addition to her responsibilities for Allen Fi-

nancial Group and NAIFA, Snyder is an active member of the Junior League of Jackson, where she recently completed the JLJ Leadership Institute. Snyder also serves as a Governing Board member of the Cooperative Baptist Fellowship and as Central Mississippi Alumni Chapter President for Washington & Lee University.

Born and raised in Jackson, Snyder graduated magna cum laude from Washington & Lee University in Virginia, where she was vice president of Omicron Delta Kappa, president of Kappa Kappa Gamma, a member of Order of the Omega, and was recognized as Panhellenic Greek Woman of the Year.

Joining Snyder as elected officers for NAIFAJackson are: Taylor Sledge, Sledge & Company, vice president; Ken Bedi, LUTCF, CLU, FICF, Woodmen of the World, secretary-treasurer; and Tom Welch, Southeastern Financial Advisors, immediate past president.

Elected to NAIFA-Jackson’s board are Lance Davis, LUTCF, Southern Farm Bureau Life; Jeri McKnight, LUTCF, CLTC, Mutual of Omaha; Lee Owen, MassMutual; Perry Paige Jr., Paige Insurance; Cynthia Parhm, Catchings Agency; Chad Stockett, CPA, Stockett & Thomas Agency; Andy Triplett, New York Life; and Taylor Webb, JD, AXA Advisors.

Jeansomme wins award

MHCA selects board

Benny Jeansonne, a partner at the CPA firm Silas Simmons, LLP in Natchez, has been awarded the annual Public Service Award by the Mississippi Society of Certified Public Accountants. Jeansonne has been active in many community associations, causes and events, serving as chairman of the Chamber Benny Jeansomme of Commerce and Natchez Now as well as service clubs and Cathedral School improvement and construction projects. He was recognized in 2013 as one of Mississippi’s Leaders in Finance by the Mississippi Business Journal, and maintains memberships in many trade and industry associations.

The Mississippi Health Care Association has chosen its board members for 2014-2016. They are: president Bobby Rotolo, Briar Hill Management, Ridgeland; first vice president Stan Maynard, Trinity Health Care Center, Columbus; secretary Bobby Beebe, Pathway Management, Ridgeland; treasurer, Johnnie Walters Jr., Consulate Management, Ridgeland; Area I vice president Rob Skelton, Cornerstone Health & Rehab, Corinth; Area II vice president Mark Odom, Gulf Coast Health Care, Pascagoula; Area III vice president Harold Beebe, Delco Inc., Jackson; Area IV vice president Tony Hamrick, Trend Consultants, Meridian; Area V vice president Justin Johnson, Trend Consultants, Natchez; Area VI vice president Steve Worrel, HMP Management Corporation, Hattiesburg; past president Mark Clay, The Windsor Place Nursing and Rehab Center, Columbus; past president Reita Hall, Briar Hill Management, Ridgeland; and past president Eric Holland, Sunshine Health Care Inc., Fulton.

Griffin graduates Demetria Griffin, administrative support and public relations administrative assistant at South Mississippi State Hospital, recently graduated from the State Personnel Board’s Administrative Services Certification Program (ASCP). Griffin has worked at SMSH since November 2010 Demetria Griffin and in her current position since July 2012. She is a native of Bolivar County, and holds an associate’s degree in business administration from Western International University and is working toward her bachelor’s degree at Grantham University.

Before coming to SMSH, Griffin worked with several private sector organizations in addition to serving as personnel actions specialist with the U.S. Army in Mannheim and Schwetzingen, Germany.

Frazier earns promotion Elizabeth Frazier has been promoted to operations manager for Pileum Corporation from her previous role as senior engineering and sales coordinator. Frazier is a native of Biloxi, and is a graduate of the University of Southern Mississippi where she earned a bachelor of arts degree in sociology. While Elizabeth Frazier at USM, Frazier was listed on the President’s List for outstanding performance and for maintaining a 4.0 grade point average.

Frazier has been an employee of Pileum Corporation since 2006.

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Kelly, Morrison appointed The Mississippi Board of Education has appointed

Dr. John R. Kelly to serve as board chairman for a two-year term. Kelly, who since 2007 has served as Gulfport’s chief administrative officer, previously served as the board’s vice chair. Former Gov. Haley Barbour appointed Kelly to the Board of Education in 2011.

A Utica native, Kelly previously served as Gulfport’s municipal court administrator and has worked as regional director for community and family support with Navy Region Southeast in Jacksonville, Florida.

He has held several positions at the Mississippi Cooperative Extension Service at Mississippi State University and was an adjunct professor for 24 years at the University of Southern Mississippi’s Gulf Park campus. Kelly has served as chairman of the national board of directors for the American Cancer Society and was president and chief volunteer officer for the United Way of South Mississippi. He also has served as president of the Gulfport Job Corps Center and chairman of the board of trustees for the Gulf Coast Medical Center.

Kelly received a bachelor’s degree from Alcorn State University, a master’s degree from Wayne State University in Detroit and a doctorate from the University of Southern Mississippi.

The board named as its vice chair Richard Morrison, who is assistant superintendent of the Rankin County School District. Gov. Phil Bryant appointed Morrison to the board in 2012. Morrison began his career as a math teacher and coach at Forest Hill High School and Quitman High School. He has been an administrator in Rankin County for 18 years, including serving as principal of Northwest Rankin High School before being appointed district assistant superintendent.

Morrison’s recognitions include Rankin County Administrator of the Year, Mississippi Principal of the Year, Administrator of the Year for Mississippi’s 3rd Congressional District, Mississippi Administrator of the Year and Mississippi Thespian Principal of the Year. He has been a member of both the National Association of Secondary School Principals and the Mississippi Association of Secondary School Principals.

Morrison is a graduate of Delta State University and earned a master’s degree in educational leadership from Mississippi College.

Outgoing board chairman Dr. Wayne Gann will continue to serve on the board as a member through July 2015.

English joins clinic Lauren M. English, PA-C, recently joined Hattiesburg Clinic Connections as a physician assistant. She received her bachelor of science from Mississippi State University and her master of physician assistant studies from Mississippi College.

English is board certified by the National Commission on Cer- Lauren English tification of Physician Assistants.

Her professional affiliations include the American Academy of Physician Assistants and the Mississippi Academy of Physician Assistants.

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

30 I Mississippi Business Journal I August 29, 2014

» THE SPIN CYCLE

Ice bucket challenge is best cause marketing he ALS Ice Bucket Challenge has thrown water on all the competition when it comes to cause marketing success in the social media era. Nothing has whipped up such a viral tsunami as this innovative, inspiring and impactful initiative. All branding gurus can learn much from this sensation that is taking the world by storm.

The ALS Ice Bucket Challenge demonstrates the power of social media to influence cause marketing on a global scale. The challenge was a perfect storm of social media, celebrity and grass-roots philanthropy, producing hurricane-strength viral social engagement during the dog days of summer. Unlike a hurricane, the challenge showed how social media can be harnessed, directed and managed for a social good.

By any account, the ice-bucket challenge’s success is staggering. As of this writing, The ALS Association had received $53.3 million in donations, up from a mere $2.2 million during the same period last year, and the association attracted more than 630,000 new donors during this period. Celebrities – from George Bush to Ben Affleck – have taken part in it, the media has written hundreds of stories on the topic, and pretty much everyone on the planet has seen at least one – if not dozens – of icy videos on their social media feeds. Those, no doubt, are statistics any charity would envy.

And it’s easy to see why the ice-bucket challenge has been so successful. It both supports a worthy cause – as many as 30,000 Americans at any given time are suffering from ALS, or Lou Gehrig’s Disease, a sometimes deadly disease that leaves many sufferers paralyzed – and entertains people (admit it, it’s hard not to click on videos of people dousing themselves in ice water). Plus, the campaign itself is easy – if chilly – to participate in, and when people participate, they create shareable content that’s fun, or at least funny, for other people to watch and engage in themselves.

According to Facebook, between June 1 and late August, more than 28 million people have joined the conversation about the Ice Bucket Challenge including posting, commenting or liking a challenge post, and 2.4 million videos related to the ice bucket challenge have been shared on the social network.

Even if we don’t see another social storm like this again, the ALS Ice Bucket Challenge holds many important lessons for marketers trying to tap into the secrets of the ALS campaign sensation. Here are the top takeaways from The Spin Cycle’s most trusted sources: » Time It Right – the challenge was launched in June and peaked in August. Its timing was perfect and it was a feelgood counterpoint to the images of violence in the Middle East and in Ferguson, Missouri that have dominated the daily news cycle. Summer is a popular time for vacations and many are able to enjoy a more relaxed work schedule.

School was out and extended hours of sunlight allowed people to participate in the challenge and video their super soaking after work. Plus, the nature of the challenge matched the timing; an ice bucket challenge would not have been as well received in winter. Anyone want pneumonia? » Make It Personal – the idea of pouring ice-cold water on your head to raise awareness for a charity didn’t start out as an ALS dedicated awareness campaign. Yet, former Boston College baseball player Pete Frates, who has ALS, made it personal, leveraging his social network and a dedicated team of friends and family to spread the word.

Todd Smith » Reputation Matters – if your business or charity is planning the next viral marketing campaign, your brand’s reputation will be the key to a successful campaign. The management team needs to be able to handle days or weeks of intense local and national media exposure. Businesses can protect their brand and take advantage of the spotlight with a proactive public relations strategy and a well-defined communications plan that precedes launching any marketing campaign.

Even if you are not able to replicate the next ALS Ice Bucket Challenge, “a shared commitment to charity and community, extending from the board room to the mailroom, can have a powerful positive impact on company reputation inside and outside the company,” explains Todd William, founder and CEO of Reputation Rhino, an online reputation management and marketing consultancy in New York.

The ALS Ice Bucket Challenge shows that everyone in our digital society can make a huge difference in the world through a clever, pithy and creative idea. Granted this was an epic epiphany, but under the right conditions, the perfect social media storm can be duplicated. There are many strategic lessons for branding, PR, marketing and ad professionals looking to create the next social media sensation.

T

Golden Mic: Peter Frates, Ice bucket challenge creator Courtesy of UMMC

Dr. Alexander 300, professor and McCarty Chair of Neurology at UMMC in Jackson, feels the chill of the ice bucket challenge.

» Mix In A Few Celebrities – the promotion became viral after a few local celebrities and sport figures took up the challenge. Their huge following allowed the challenge to explode out of Boston and expand nationally, organically, attracting an eclectic mix of A-list celebrities and famous faces who have risen to the challenge. And having a guy named Gates involved doesn’t hurt, either. » KISS – Keep It Simple Stupid, or KISS, is the well-worn design principle stating that simple designs often perform better than complex ideas. In the ALS Ice Bucket Challenge, the rules are simple. Accept the challenge and get drenched in ice water or donate to ALS. The challenger picks who gets challenged next. The three and four word hashtags (#IceBucketChallenge #ALSIceBucketChallenge) made it easy to remember and share. » Consider Street Credibility – It was the “bet you won’t do that” schoolyard tease that added a playful touch of social stigma and self-consciousness to the cause marketing campaign. Who could possibly turn it down? Now that the challenge has gained national exposure, it’s a point of pride and social standing to be challenged, adding to its widespread appeal. » Focus on the Goal – although there has been some criticism about the tendency for a viral cause marketing campaign like this to encourage self-promotion and “slacktivism,” the charity is the ultimate beneficiary. The ALS Association has attracted hundreds of thousands of new and potential donors, and has received more than $53 million. With global awareness and a sizable war chest fueled by a flood of new donations, the association is able to move one step closer to a cure for Lou Gehrig’s disease.

Peter Frates, the former Boston College baseball star who was diagnosed with the degenerative disease ALS in 2012, reveres Lou Gehrig. But with his Ice Bucket Challenge — the fund-raising stunt that has gone viral on social media sites the world over — Frates is helping replace memories of Gehrig’s classic doomed-hero speech with a more hopeful message about ALS: raise money and awareness and, with a little ingenuity, perhaps society can conquer this most hopeless of diseases.

The Ice Bucket Challenge strikes a different note: people film themselves dumping a bucket of ice water on their heads, and nominate others to do the same. If they comply within 24 hours, they’re encouraged to make a modest donation to an ALS charity. If they don’t comply, they’re encouraged to make a bigger donation. Politicians like Mayor Marty Walsh and New Jersey governor Chris Christie have joined in. Ethel Kennedy, the 86-year-old widow of Robert Kennedy, nominated President Obama, who will be making a donation. So far, Frates has raised a staggering $5 million for the ALS Association since July 29. That, in itself, conveys a sense of hope. For this brilliant cause marketing blockbuster, Frates takes the Golden Mic. 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, marketing and advertising – and those who don’t. Stay tuned – and step-up to the mic! And remember … Amplify Your Brand!

Todd Smith is president and chief communications officer of Deane, Smith & Partners, a full-service branding, PR, marketing and advertising firm with offices in Jackson. The firm — based in Nashville, Tenn. — is also affiliated with Mad Genius. Contact him at todd@deanesmithpartners.com, and follow him @spinsurgeon.

SALES MOVES

August 29, 2014

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» JEFFREY GITOMER

Overlooked power may be your kryptonite I

see, therefore I learn. I see, therefore I think. I learn and I think, therefore I reason and respond.

THE POWER: That is the power of observation.

How are you taking advantage of that power?

How would you rate your power of observation?

What are you looking at?

How does what you see impact your world, your education, your sales, your career, your success, your family, and your life?

HISTORICAL OBSERVATION: In 1939, when Napoleon Hill completed the best sales book ever written, How to Sell Your Way Through Life, he included “The habit of observation,” as one of the 28 qualities all master salespeople must possess. Here are his exact words: Habit of observation. The super-salesman is a close observer of small details.

Every word uttered by the prospective buyer, every change of facial expression, every movement is observed and its significance weighted accurately. The super-salesman not only observes and analyzes accurately all that his prospective buyer does and says, but he also makes deductions from that which he does not do or say. Nothing escapes the supersalesman’s attention!

HISTORICAL OBSERVATION: Ten years ago people looked around and used what they saw to both learn and reason; to think and create experiences; to learn lessons and grow. Life lessons.

PRESENT OBSERVATION: Today everyone has a smartphone and a tablet, and the power of observation is fading into the lure of the electronic siren.

Yes, I look at my iPhone too, but I'm consciously trying my best to limit my “stare time.” I'm only interrupted when my phone rings or if I get a text.

Yes, I use apps as a necessary means to wake me up or help me find my way, and I use my phone as a camera, documenting what I observe and occasionally posting my observations on Instagram (@jeffreygitomer). I get no social media notifications, no email notifications, and none of the other dings, bells, or whistles that are offered on the electronic siren.

REASON: Interruption of thought is where focus

is lost.

REASON: Interruption of thought is where ideas get lost.

If you are focused, observation can trigger a number of powerful mental responses: » An idea » A past experience » A fact you want to convey » A developing strategy » The capture of a thought (voice to text please) » It enables you to deepen the conversation » It helps you make a point » It solidifies your thinking » You can uncover a motive » You can find common ground » You can build rapport » You may even get an AHA! from unfinished thoughts or projects.

Observation is both seeing what's around you and thinking what's about you. When you’re thinking and staring off into space, you may not be looking at anything in particular but your mental observation is being called into play.

REALITY OBSERVATION: I see people get off a plane and walk into a wall while reading or texting, and they think nothing of it.

Smartphone or no smartphone, in my experience I have observed that most people are not observant, let alone paying attention to their surroundings. The smartphone has merely increased that lack of observation, not created it.

Whatever the outcome is from your observations, they have added to your wealth of knowledge.

The reality is I'm writing this article that will get millions of views, be made into a YouTube video, appear in my weekly email magazine, become a power lesson on GitomerVT.com, and later appear in one of my books. All that will occur while most people are staring at their phones. And while I realize that's a general observation, there is no doubt the world has become much less observant in the last five years. Especially the sales world. How observant are you?

The reason I'm writing this is because I just re-

turned from eight days in Paris. Arguably, the most beautiful city in the world and most people there were NOT looking.

“Dude, look at your phone later. YOU’RE IN PARIS!” No matter what I recommend, each of you reading this will justify your own situation and circumstance: whether it’s speed of response, need to communicate with customers, need for immediate information, or the simple desire to be “in the know” and “in the now.” You will remain with your head buried in your phone, not paying attention to the world around you (with the things around you) and cheating yourself out of your competitive advantage. But, that's just my opinion.

QUICK TIPS: » Access your phone when you’re home or in your office ONLY. » Access information when you want to, not when you hear a beep. » Turn off social media notifications during the day.

NOTE WELL: Yes, speed of response is important, but if you must ding, use it as a choice rather than a must.

MENTOR LESSON: “Antennas up!” my mentor and friend, the late, great Earl Pertnoy used to say

Jeffrey Gitomer with a smile. It was one of his early pieces of advice to me. He said, “Pay attention to every detail around you. People and things”. So, I always did. And, I still do today.

That simple, but powerful piece of advice has helped me earn a fortune. And it can do the same for you.

Free GITBIT: Earlier this year I wrote more on the power of observation. If you want more on the value of paying attention to your surroundings, go to Gitomer.com and enter the word OBSERVE in the GitBit box.

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 ChaChing”, “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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