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INSIDE — First eClosings in Mississippi touted as a wave of the future, Page 4 RIDGELAND

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Aldermen approve plan for Costco fueling station — Page 2

June 22, 2018 • Vo. 40 No. 25 • 20 pages

The new Northpark » Transformation of mall aims for November completion

Page 17

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Insurance & Employee Beneﬁts {Section begins P10}

» Gulf Coast seeing positive movement regarding hurricane insurance rates » Hurricane season preparations important for home owners and businesses » Where are the millennials in insurance? » VAN LOON: Beneﬁt plan records retention: How long is enough?

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AGRIBUSINESS

Soybeans in slow-motion fall as tariff war with China heats up By JACK WEATHERLY jack.weatherly@msbusiness.com Mississippi farmers can do nothing but wait and see how the futures market plays out as China’s threat to place

a 25 percent tariff on U.S. soybeans on July 6 approaches. It’s been like watching a pickup plunge off a bridge in slow motion for the farmers. Since May 25, a contract for No-

vember delivery of soybeans is down $1.30 a bushel – from $10.49 to $9.29, Dr. Josh Maples, assistant professor for agricultural economics at Mississippi State University, said on Monday. The Chinese tariff threat comes as a result of a 25 percent tariff imposed March 1 by the United States on Chinese steel imports and a 10 percent

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See SOYBEANS, Page 4

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June 22, 2018

Mississippi Business Journal

ECONOMIC DEVELOPMENT

Ridgeland aldermen approve Costco fueling station plan By JACK WEATHERLY jack.weatherly@msbusiness.com

The Ridgeland Board of Aldermen voted 4-3 Tuesday night to move forward with a site plan allowing a Costco Wholesale Store fueling station. But the plan faces a legal obstacle much like the plan for the Costco Wholesale store that was struck down by the Mississippi Supreme Court. That 7-0 vote by the Supreme Court on April 21 said the aldermen’s amendment of a zoning ordinance was illegal and done only to accommodate placing the store on the east side of Highland Colony Parkway as the anchor for the third phase of the Renaissance at Colony Park mall. Nine residents in the vicinity ﬁled a lawsuit in 2016, contending that the building of the wholesale outlet on the 45-acre site with its a fueling station would attract heavy traffic and change the complexion of the area, which includes upscale neighborhoods. The city won a victory in Madison County Circuit Court but lost at the state’s highest court. But the ruling did not preclude the building of the 100,000-square-foot-plus store – only that it could not include a fueling station as part of that plan. So the Issaquah, Wash.-based chain approached the city with a plan for a separate station, which is just south of the 45-acre Phase 3 site and on the west side of Highland Colony Parkway. The developer is Renaissance at Colony Park Phase 3 LLC headed by Jackson-based Andrew Mattiace. The minority of the aldermen argued against the fueling station plan, which was recently passed unanimously by the city Architectural Review Board, because the city has not approved the wholesale store site in the wake of the Supreme Court ruling. Nevertheless, the board approved the station, which would use slightly more than two acres of a nine-acre parcel. A lawsuit was ﬁled May 21 in Madison County Circuit Court alleging that the city has acted “in

Courtesy of Neel-Schaffer/For the MBJ

The approved design for the station.

direct violation of the law” to accommodate the station. Steve Maloney, one of the attorneys for the plaintiffs in the latest case, Beard et al v. City of Ridgeland, said Tuesday night that “this is another end run” by the city. Plaintiffs in the case that went to the Supreme Court said that the city acted surreptitiously in crafting in amending the zoning ordinance for the specific benefit of Costco. The latest lawsuit, which includes six of the nine plaintiffs in the first case, contends that the city decided against allowing a storage facility on the two acres of the nine-acre parcel only after the city fared poorly in oral arguments before a three-justice panel of the Supreme Court on Feb. 5. Previously, the city Zoning Board approved a plan for Storage Park Properties LLC to rezone the nine-acre parcel to C-3 to C-2, and grant it conditional use. But after the unfavorable Supreme Court ruling, the board of aldermen imposed a 90-day moratorium on storage facilities, then changed the zoning ordinance, blocking storage facilities on C-3 property. The suit cites an interview in the Northside Sun on May 10 that said that storage facilities would

FILE/MBJ

The fuel station site, which will occupy about two acres of a 9.5-acre parcel, is just to the west of the 45-acre site for Phase III of of Renaissance at Colony Park, where the Costco Wholesale store is expected to be built, along with other retail outlets.

not be good “ﬁrst impressions of the city.” Maloney, who lives in the Greenwood Plantation neighborhood in the vicinity of the site, told the aldermen that they were taking up the matter of a Costco fueling station before the way was cleared for the Costco store. “You’re putting the cart in front of the horse,” Maloney said. Ward 1 Alderman Ken Heard, who would be one of the three voting against the site plan, asked: “What would we have if Costco doesn’t come?” City Attorney Jerry Mills said: “A fueling station.” Maloney said after the meeting that he sometimes disagrees with what the city considers legal – and so does the Mississippi Supreme Court.

WARREN COUNTY

NEW OWNER OF VICKSBURG LUMBER MILL TO REOPEN, HIRE 125 By JACK WEATHERLY jack.weatherly@msbusiness.com Vicksburg Forest Products is reopening a lumber mill in Vicksburg it purchased from Anderson-Tully Co. in March. After signiﬁcant upgrades and modiﬁcations are complete, the multi-million dollar corporate investment will create 125 jobs and expects to begin operations late next month, according to news re-

lease from the governor’s office. Anderson-Tully, which had operated in Vicksburg since 1889, employed 158 at the time of the sale in March for an undisclosed amount. Anderson-Tully produced hardwood lumber primarily harvested in Mississippi. Vicksburg Forest Products will manufacture southern yellow pine lumber, with a goal of producing up to 100 million board feet per shift. The company plans to purchase timber from a number of landowners in the

surrounding area. “I commend the team at Vicksburg Forest Products for re-purposing the lumber mill and for bringing so many jobs to the people of Vicksburg,” Gov. Phil Bryant said in the release. In March, Anderson-Tully Co. announced the closure of its Vicksburg operations as of May 15. Jackson-based Vicksburg Forest Products purchased the assets. The company is currently accepting applications

for employment at its guard house, which is located at 1725 N. Washington Street. Applications are being accepted between the hours of 9 a.m. and 2 p.m., Monday through Saturday. Applications are also being accepted at the WIN Job Center. The Mississippi Development Authority provided a $400,000 grant for site improvements. The city of Vicksburg also is assisting with $100,000 in matching funds for public infrastructure. “With 66 percent of the state’s geography comprising approximately 20 million acres of forestland in Mississippi, forestry is a strong and growing economic driver throughout the state,” said MDA Executive Director Glenn McCullough Jr.

4 Q Mississippi Business Journal Q June 22, 2018 TECHNOLOGY

First eClosings in Mississippi touted as a wave of the future By BECKY GILLETTE mbj@msbusiness.com

While buying new property can be an exhilarating experience that may come after years of saving and dreaming, the closing process of shuffling and signing dozens of papers with leagues of ﬁne print can be time consuming and annoying. Courtney Robbins, attorney with Luckett Land Title, said her company has championed the idea of making real estate closings faster and more convenient than ever through a concept called eClose. “While buying a new home can be an exciting experience, the long, drawn out closing process can be tedious and time consuming,” Robbins said. “For the past eight months I have advocated for a new more technologically advanced title closing process known as eClosings. With the blessing of Luckett CEO R. Cratin Luckett, Jr., I set off on the adventure to bring eClosings to Mississippi. It takes the closing from 60 minutes to around 15 minutes, and it allows the buyer to digitally sign the majority of the documents.” Luckett Title held an event in April to announce they were ready to eClose and had their ﬁrst two eClosings in May. Robbins said the progress shows the two lenders and

Courtesy of Luckett Land Title

Trevor Lieske and Lauren Jordan, the second homeowners to do a eClosing in Mississippi, are shown above doing e signatures. At the right is their lender Robert Richard.

one title company decided to put the consumer ﬁrst and make it a celebration instead of a dreaded task in the home purchase process. “It shows that we are changing the way we do business in Mississippi for the better,” she said. Robbins recently worked with home buyers from two different lending companies who successfully became the ﬁrst known people in the state to have an eClosing. An eClosing completes the closing process by

electronically executing some or all of the loan closing documents in a virtual closing room. In Mississippi, state law requires that all parties must wet sign all notarized documents. But the hybrid eClosing still cuts down on a lot of paper shuffling. This type of eClose is known as a hybrid closing. Robbins conducted extensive research, attended various conferences, and trained on various new digital platforms. She feels this is a step forward making the home buying process more efficient and streamlined. “I’m am so proud that we just recently achieved our goal of performing the first eClosing in the State of Mississippi,” Robbins said. “The eClosing movement is full-force in our country, and I didn’t want Mississippi to be left out. I championed this because of the convenience, efficiency, and truly modern feel. I love that the clients get to review final closing documents prior to the closing at their own pace and ask questions before they get to the closing table. At the end of the day, we want to celebrate the purchase of a new home. eClosings remove the stress from a long drawn out closing and places the focus back on the exciting milestone of home ownership.” The first two home buyers to have an eClosing were Tiffany and Todd Easterday of Pearl. Their lender, Sean Cornwell, top producing loan originator lender with Red Rock Mortgage, said eClosings are the next progression for the paperless world we have moved into. “The days of hour-long closings will soon be behind us,” Cornwell said. “Shorter closings will allow for more closings to occur

SOYBEANS Continued from, Page 1

add-on on aluminum products from that country. President Trump is acting to correct what he sees as an imbalanced trade picture. The U.S. trade imbalance with China reached a record $375.2 billion last year, according to the Commerce Department. Global oversupply of grains has pushed farm income down by half of what it was in 2013, according to the Reuters News Agency. Soybean prices have reached their lowest point in a year on commodities markets, according to Maples. Some farmers were able to protect themselves to some degree by locking in prices early in the year on some of their harvest, which probably will be complete by November, Maples said. “The U.S. exported 50 percent of its total soybean production last year. Of those exports, approximately half went to China,” Maples said in an email.“This means that about one-quarter of total U.S. soy-

during the day and that will help, especially, at the end of the month when closings pile up. Those that do not get on this train will end up being left behind at some point. We are excited that we were a part of the very ﬁrst eClosing in Mississippi. I have always looked to align our company with what is coming next so that we are always able to offer what is best and most efficient for our borrowers. All aboard for eClosings.” Trevor Lieske and Lauren Jordan were the second home buyers to have an eClosing in Mississippi. Lieske said the closing was super easy and convenient especially since she was working in Jackson and he was in Memphis, Tenn. Liekse said they could review documents and ask questions through the system before the closing. “It made it easier to sign documents,” Lieske said. “The whole process was maybe 15 minutes. We’re excited new homeowners.” “And no hand cramps,” Jordan said. Their lender, Robert Richard, Fairway Independent Mortgage Corp., said he liked the borrower having the opportunity ahead of time to review the closing documents and also having the ability to ask questions through the virtual closing room before the actual closing day from both the lender and the title company. “That way, the closing is a celebration,” Richard said. “It empowered the buyer, increased efficiency and gave my clients a great level of customer satisfaction.” Robbins said she expects three more eClosings this month. “It just shows we are moving in the right direction,” she said.

bean production was exported to China.” Mississippi produced 115 million bushels of soybeans in 2017. The total value of Mississippi soybeans exported was $580 million in 2016 according to the latest available data, Maples said. The nation sold China soybeans valued at $14 billion in 2017, Maples said. “ We don’t have sufficient data to know exactly how many Mississippi soybeans were exported to China – but we know that China is the largest export market for U.S. soybeans so it is likely that a big portion of the Mississippi soybeans exported ended up in China.” Soybeans are the biggest row crop in Mississippi. It was valued at $1.7 billion in 2017. “While soybeans are perhaps the biggest story, given the amount the we export to China and the level of production in Mississippi, there were other commodities listed on the proposed tariff list including cotton, sorghum, wheat, beef, pork, and vegetables,”Maples said.

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MBJPERSPECTIVE June 22 2018 • www.msbusiness.com • Page 5

OTHER VIEWS

#THE OUTSIDE WORLD

Generosity to foreigners, strangers

Website: www.msbusiness.com June 22, 2018 Volume 40, Number 25

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TED CARTER Contributing Writer mbj@msbusiness.com • 364-1018 BECKY GILLETTE Contributing Writer mbj@msbusiness.com • 364-1018 NASH NUNNERY Contributing Writer mbj@msbusiness.com • 364-1018 LISA MONTI Contributing Writer mbj@msbusiness.com • 364-1018 TACY RAYBURN Production Manager tacy.rayburn@msbusiness.com • 364-1019 CHARINA RHODES Circulation Manager charina.rhodes@msbusiness.com • 364-1045 MARCIA THOMPSON-KELLY Business Assistant marcia.kelly@msbusiness.com • 364-1044 SUBSCRIPTION SERVICES (601) 364-1000 subscriptions@msbusiness.com Mississippi Business Journal (USPS 000-222) is published weekly with one annual issue by MSBJ 200 N. Congress St., Suite 400, Jackson, MS 39201. Periodicals postage paid at Jackson, MS. Subscription rates: 1 year $109; 2 years $168; and 3 years $214. To place orders, temporarily stop service, change your address or inquire about billing: Phone: (601) 364-1000, Fax: (601) 364-1035, Email: charina.rhodes@msbusiness.com, Mail: MS Business Journal Subscription Services, 200 N.Congress Street, Suite 400, Jackson, MS 39201 POSTMASTER: Send address changes to Mississippi Business Journal, Circulation Manager, 200 North Congress Street, Suite 400, Jackson, MS 39201 To submit subscription payments: Mail: MS Business Journal Subscriptions Services, 200 North Congress Street, Suite 400, Jackson, MS 39201. No material in this publication may be reproduced in any form without the written consent. Editorial and advertising material contained in this publication is derived from sources considered to be reliable, but the publication cannot guarantee their accuracy. Nothing contained herein should be construed as a solicitation for the sale or purchase of any securities. It is the policy of this newspaper to employ people on the basis of their qualifications and with assurance of equal opportunity and treatment regardless of race, color, creed, sex, age, sexual orientation, religion, national origin or handicap. The Mississippi Business Journal, is an affiliate of Journal Publishing Company (JPC), Inc. Entire contents copyrighted © 2018 by Journal Inc. All rights reserved.

» INSIDE MISSISSIPPI

Other states’ GOP leaders stand up to Trump’s tariffs

rump tariffs and retaliatory tariffs are no big deal for Mississippi say key Republican leaders. “Everything will work out,” is their mantra. Meanwhile, Trump tariffs kicked in June 1st on steel (25 percent) and aluminum (10 percent) imports from the European Union, Canada, and Mexico. Mexico imposed retaliatory tariffs on June 5, Canada will on July 1, and the EU will later in July. Trump also is moving to impose 25 percent tariffs on an array of China exports. China promised quick retaliation. “I do not think there will be a trade war,” Sen. Roger Wicker told the Northeast Mississippi Daily Journal, expressing confidence that “the end result will be better opportunities for Mississippi businesses, farmers and consumers.” Rep. Trent Kelly said, “Now is the time for patience and to let the president do his job and negotiate on behalf of the American people.” Gov. Phil Bryant said, ““President Trump puts American workers and businesses first, and his policies continue to bear that out,” pointing to Mississippi’s low unemployment. Sen. Cindy Hyde-Smith showed some concern. She told the Meridian Star Trump tariffs could hurt the state in the short term, but believed Trump’s

Bill Crawford

efforts could be beneficial in the long term. Business leaders aren’t as sanguine about Trump tariffs. The U.S. Chamber of Commerce expressed concern that 2.6 million American jobs could be at risk. The defense industry expressed concern about increased costs for steel and aluminum and the impact on global supply chains and risks to exports. The U.S. Farm Bureau expressed serious concerns to Congressional committees. Mississippians should be concerned too. The Daily Journal reported $113 million in goods exported from Mississippi to Canada at risk from tariffs, adding those exports come from nearly 2,200 Mississippi-based companies about 77 percent of which were smalland medium-sized enterprises with fewer than 500 employees. Mississippi’s $1.1 billion dollar soybean industry would be affected by retaliatory tariffs. More than 110 million bushels were produced in the state in 2017 from 3,274 farms. About half are exported, mostly to China, the European Union, Japan, Mexico and Taiwan. In general, farmers worry that See CRAWFORD,ũPage ď

or weeks, the White House has acted on the policy of separating foreign parents and children who are caught crossing into the country illegally. The set of laws regarding immigration is referred to as “catch and release.” These laws span numerous presidential administrations, both Democrat and Republican, and allow for quite a bit of wiggle room in dealing with illegal immigrants. In previous years, illegal immigrant families and those seeking asylum were detained (together), then released until their immigration hearing, where they would be charged as unauthorized immigrants and face deportation. Now, those families are being criminally prosecuted, which allows for the families to be sepaPaul speaks from rated. a place of empaAbout 100 large facilities have been set up in 17 thy and love. So states to house these childid Jesus in the dren, the largest one parable of the made from a defunct Walmart in Brownsville, Good Samaritan, Texas, which holds almost which compels us 1,500 young boys. Acto be merciful and cording to the Departgenerous to ment of Health and Human Services, more strangers and than 11,000 migrant chilforeigners. dren are being held by the government while their parents await trial, sometimes several states apart. In April, Attorney General Jeff Sessions urged U.S. attorneys to be more aggressive in prosecuting illegal immigrants in order to deter more from coming. Last week, he cited Paul in Romans 13, which says to obey the law, because God has ordained the government for his purposes. When asked about Sessions’ comments, White House press secretary Sarah Huckabee Sanders said enforcing the law is perfectly biblical. You could tit-for-tat that idea with numerous verses all day, but what’s in your heart? The thought of children being taken from their parents only to be whisked away to a facility is gut-wrenching. If it’s within the law, as the government says it is, and if the parents of these children are powerless to stop this separation, which they are, why the need for secrecy? Some Christians love Paul as much as Jesus, because Paul is almost beyond reproach. He went from being the worst enemy of Christians to one of their greatest leaders. Paul is loved for being harsh, but right. What an appealing idea. But what puts Paul’s feet on God’s good side isn’t that he’s right all the time. Paul speaks from a place of empathy and love. So did Jesus in the parable of the Good Samaritan, which compels us to be merciful and generous to strangers and foreigners. — Northeast Mississippi Business Journal

PERSPECTIVE

6 I Mississippi Business Journal I June 22 2018 » RICKY NOBILE

CRAWFORD

Continued from Page 5

retaliatory tariffs will make the things they grow sell for less and steel and aluminum tariffs will make the things they buy cost more. Mississippi’s growing tire and automobile sector is at risk from steel tariffs and retaliatory auto tariffs. Even Mississippi’s emerging brewery industry would be impacted, according to Lucas Simmons, president of Lucky Town Brewing Company in Jackson. GOP leaders from other states are standing up to Trump on tariffs. Senate Majority Leader Mitch McConnell told fellow Kentuckians, as reported by CNN, “I hope we pull back from the brink here because these tariffs will not be good for the economy.” House Speaker Paul Ryan said, “I disagree with this decision.” Others speaking out include House Ways and Means Chairman Kevin Brady of Texas, Sen. Lamar Alexander of Tennessee, Sen. Ben Sasse, of Nebraska, Sen. Joni Ernst of Iowa, and Sen. Pat Toomey of Pennsylvania. You’d think Mississippi Republican leaders would be standing up too, instead of timidly hoping Trump is just bluffing to gain trade concessions. Bill Crawford (crawfolk@gmail.com) is a syndicated columnist from Meridian.

»INSIDE MISSISSIPPI

Guest, Hughes embrace Trump in runoff election

wo candidates in a Republican primary runoff for a congressional race in central Mississippi agree on many big issues, including their overall support for President Donald Trump. Michael Guest and Whit Hughes are both cautious in any criticism of the man in the White House. “His use of social media would be something I would disagree with the president on. I do support his policies,” Guest, the district attorney for Madison and Rankin counties, said during an interview last week in Pearl. During his own campaign event in Natchez, Hughes expressed concern that international trade disputes would affect Mississippi agriculture. “If you’re not careful with tariffs, you can get our farmers and our growers and our producers and our small business owners sideways in the marketplace,” Hughes said. Trump received about 58 percent of the vote in Mississippi in 2016, and many top Republicans in the state — including Gov. Phil Bryant — remain avid supporters. Guest and Hughes emerged from a field of six candidates in the June 5 Republican primary in the 3rd Congressional District, where GOP Rep. Gregg Harper didn’t seek re-election. Guest, who is the district attorney in Madison and Rankin counties, received 45 percent of the vote. Hughes, a former deputy director at the state economic development agency, received 22 percent. The winner of the June 26 runoff will advance to the Nov. 6 general election and face Democratic state Rep. Michael Ted Evans of Preston and the Reform Party’s Michael Holland of Hattiesburg. Both Guest and Hughes praise the Trump administration

for reducing federal regulations. Both say they want to cut federal spending. Guest suggests reducing or eliminating federal funding for the National Endowment for the Arts and public broadcasting. “I currently have hundreds of TV stations that I get through my local cable package — everything from music channels to sports channels to news channels,” Guest said. Hughes suggests reducing foreign aid but says the U.S should continue to provide aid to Israel. Foreign aid was about 1.3 percent of the U.S. budget in 2015, according to the Council on Foreign Relations . Trump has proposed reducing foreign aid and eliminating federal funding for public broadcasting and the arts, which make up even smaller portions of the budget. Hughes said it’s wrong that the federal debt has grown by trillions of dollars and that Congress has been passing 2,200-page spending bills with little debate. “The American people deserve better than that,” Hughes said. Hughes and Guest both say they want tighter security on the U.S.-Mexico border, an idea Trump has pushed since launching his presidential campaign.

Emily Pettus

Guest said he wants a border fence because he believes that even if more law enforcement agents are hired to guard the border, they could later be transferred. “A new administration comes in, border security is no

Hughes and Guest both say they want tighter security on the U.S.-Mexico border ... longer a priority for that administration. Those agents could be reassigned to different parts of the country or different divisions,” Guest said. “So, I do believe it is important that we create some sort of physical barrier on our southwest border.” Hughes said he wants a fence in places where it would work and wants to use technology or other methods to beef up security in places where it would be difficult to build a fence. “We have to keep the bad guys out and make sure the people that are coming to our country are doing it legally,” Hughes said. “From that standpoint, where a wall makes sense, I do believe we need a wall.” Emily Wagster Pettus covers Capitol matters for the Mississippi Associated Press in Jackson.

June 22, 2018

Mississippi Business Journal

ECONOMIC DEVELOPMENT

Mississippi Main Street 2018 award winners By MBJ STAFF The Mississippi Main Street Association celebrated achievements of Mississippi Main Street Communities Thursday at the 29th Annual Awards Luncheon in downtown Jackson. MMSA Board President Ed Gardner, MMSA Past President Allison Beasley, and MMSA staff presented awards to recipients from local Main Street programs throughout the state. The annual awards luncheon honors Main Street directors, board members and volunteers and recognizes the most outstanding downtown development projects from Main Street communities in Mississippi. The 2018 Award Recipients are: Organization Category Âť Premier Partner: Northwest Community College, Senatobia Main Street. Âť Outstanding Creative Fundraising: Cleveland Bites Food Festival, Team Cleveland Main Street. Âť Outstanding Marketing: Que on the Yazoo Marketing Campaign, Main Street Greenwood. Âť Outstanding Community Education Campaign (tie): How Downtown, Main Street Greenwood; Vicksburg Heritage Walking Trails, Vicksburg Main Street. Promotion Category Âť Creative New Event (tie): Mini Wine Downtown and Shopping Tournament Downtown, Tupelo Main Street; Hattiesburlesque, Historic Downtown Hattiesburg. Âť Outstanding Retail Promotion: Sit, Stay, Play, Greenwood, Main Street Greenwood. Âť Outstanding Image Promotion (tie): Meet Me on Main Street, Main Street Clinton; Downtown Greenwood Promo Video, Main Street Greenwood. Design Category Âť Outstanding Historic Rehabilitation Project: Starkville Police Department, Starkville Main Street. Âť Outstanding Public Improvement Project (tie) Russell Street Corridor - Entrance to Downtown Starkville, Starkville Main Street; Crosby Commons, Picayune Main Street. Âť Outstanding Visual Merchandising Project: The Lucky Rabbit, Historic Downtown Hattiesburg. Âť Outstanding New Development Project: Bradyâ&#x20AC;&#x2122;s Steak and Seafood, Pascagoula Main Street. Economic Vitality Âť Outstanding Adaptive Reuse Project: The Burtonâ&#x20AC;&#x2122;s Building, Laurel Main Street. --Outstanding Economic Impact: Cottonwood Public House, Vicksburg Main Street. Âť Outstanding New Business: The Steel Forest Furniture Company, Columbus Main Street. Âť Outstanding Community Transfor-

mation - Medium Size Town: Laurel, Laurel Main Street. Âť Outstanding Community Transformation - Small Town: Water Valley, Water

Valley Main Street. Special Awards Âť Main Street Trailblazer: Dr. David L. Beckley, Holly Springs Main Street Chamber. Âť Merchant of the Year: Lott Furniture Company, Laurel Main Street. Âť Outstanding Director of the Year: Kay Miller, Biloxi Main Street. Âť Main Street Hero: Michelle Jones,

Starkville Main Street; Mayor George Flaggs, Vicksburg Main Street; Jim Luke, Picayune Main Street; Mallorie Rasberry, Laurel Main Street; Penny Frazier, Senatobia Main Street; Dawn Edwards, Hernando Main Street; Becky Nowell, Team Cleveland Main Street; Bob Luke, Meridian Main Street; Doug Pellum, Columbus Main Street; Mayor Dane Maxwell, Pascagoula Main Street. Board Awards Âť Award of Service: Allison Beasley, SMPDD. See MAIN STREET, Page 8

About the Womenâ&#x20AC;&#x2122;s Foundation of Mississippi Ć&#x201A;Ă&#x192; Ă&#x152;Â&#x2026;i Â&#x153;Â&#x2DC;Â?Ă&#x17E; }Ă&#x20AC;>Â&#x2DC;Ă&#x152; Â&#x201C;>Â&#x17D;Â&#x2C6;Â&#x2DC;} iÂ&#x2DC;Ă&#x152;Â&#x2C6;Ă&#x152;Ă&#x17E; Â&#x2C6;Â&#x2DC; Â&#x2C6;Ă&#x192;Ă&#x192;Â&#x2C6;Ă&#x192;Ă&#x192;Â&#x2C6;ÂŤÂŤÂ&#x2C6; vÂ&#x153;VĂ&#x2022;Ă&#x192;i` iÂ&#x2DC;Ă&#x152;Â&#x2C6;Ă&#x20AC;iÂ?Ă&#x17E; Â&#x153;Â&#x2DC; Ă&#x153;Â&#x153;Â&#x201C;iÂ&#x2DC; >Â&#x2DC;` }Â&#x2C6;Ă&#x20AC;Â?Ă&#x192;] Ă&#x153;i ÂŤĂ&#x20AC;Â&#x153;Ă&#x203A;Â&#x2C6;`i wÂ&#x2DC;>Â&#x2DC;VÂ&#x2C6;>Â? >Â&#x2DC;` Â&#x153;Ă&#x152;Â&#x2026;iĂ&#x20AC; Ă&#x20AC;iĂ&#x192;Â&#x153;Ă&#x2022;Ă&#x20AC;Vi Ă&#x152;Â&#x153; VĂ&#x2022;Â?Ă&#x152;Â&#x2C6;Ă&#x203A;>Ă&#x152;i Ă&#x192;Â&#x153;VÂ&#x2C6;>Â? VÂ&#x2026;>Â&#x2DC;}i Ă&#x152;Â&#x2026;>Ă&#x152; Ă&#x153;Â&#x2C6;Â?Â? VĂ&#x20AC;i>Ă&#x152;i Â?Â&#x153;Â&#x2DC;}Ă&#x152;iĂ&#x20AC;Â&#x201C; Â&#x153;ÂŤÂŤÂ&#x153;Ă&#x20AC;Ă&#x152;Ă&#x2022;Â&#x2DC;Â&#x2C6;Ă&#x152;Ă&#x17E; vÂ&#x153;Ă&#x20AC; ÂŤiĂ&#x20AC;Ă&#x192;Â&#x153;Â&#x2DC;>Â? Ă&#x192;Ă&#x152;>LÂ&#x2C6;Â?Â&#x2C6;Ă&#x152;Ă&#x17E; >Â&#x2DC;` Ă&#x192;Ă&#x152;Ă&#x20AC;Â&#x153;Â&#x2DC;}iĂ&#x20AC; v>Â&#x201C;Â&#x2C6;Â?Â&#x2C6;iĂ&#x192;Â° 7i ÂŤĂ&#x20AC;Â&#x153;Ă&#x203A;Â&#x2C6;`i vĂ&#x2022;Â&#x2DC;`Â&#x2C6;Â&#x2DC;} Ă&#x152;Â&#x153; VÂ&#x153;Â&#x201C;Â&#x201C;Ă&#x2022;Â&#x2DC;Â&#x2C6;Ă&#x152;Ă&#x17E; ÂŤ>Ă&#x20AC;Ă&#x152;Â&#x2DC;iĂ&#x20AC;Ă&#x192;] VÂ&#x153;Â&#x201C;Â&#x201C;Â&#x2C6;Ă&#x192;Ă&#x192;Â&#x2C6;Â&#x153;Â&#x2DC; >Â&#x2DC;` Ă&#x192;Â&#x2026;>Ă&#x20AC;i VĂ&#x20AC;i`Â&#x2C6;LÂ?i Ă&#x20AC;iĂ&#x192;i>Ă&#x20AC;VÂ&#x2026;] >Â&#x2DC;` >`Ă&#x203A;Â&#x153;V>Ă&#x152;i vÂ&#x153;Ă&#x20AC; LĂ&#x20AC;i>Â&#x17D;Â&#x2C6;Â&#x2DC;} Ă&#x192;Ă&#x17E;Ă&#x192;Ă&#x152;iÂ&#x201C;Â&#x2C6;V L>Ă&#x20AC;Ă&#x20AC;Â&#x2C6;iĂ&#x20AC;Ă&#x192; Ă&#x192;Ă&#x152;>Â&#x2DC;`Â&#x2C6;Â&#x2DC;} LiĂ&#x152;Ă&#x153;iiÂ&#x2DC; Ă&#x153;Â&#x153;Â&#x201C;iÂ&#x2DC; >Â&#x2DC;` Ă&#x152;Â&#x2026;iÂ&#x2C6;Ă&#x20AC; iVÂ&#x153;Â&#x2DC;Â&#x153;Â&#x201C;Â&#x2C6;V Ă&#x192;iVĂ&#x2022;Ă&#x20AC;Â&#x2C6;Ă&#x152;Ă&#x17E;Â°

When women thrive, Mississippi thrives.

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8 Q Mississippi Business Journal Q June 22, 2018 GOVERNMENT/POLITICS

Slam dunk beach read from the U.S. Supreme Court

ust in time for that summer trip, the U.S. Supreme Court has released a jackpot beach read: Murphy v NCAA. Justice Samuel Alito - a wannabe baseball commissioner who once suited up at a Phillies Phantasy Camp – lays the cards on the table and upends the long-time federal ban on sports betting. This 49-page page-turner has it all – sports, gambling, an underdog, the Federalist Papers, the Tenth Amendment, a winner-take-all decision, a blistering dissent from the two Justices huddled in left ﬁeld, and an off-the-court matchup pitting a twotime NBA champion turned democratic U.S. Senator against a former U.S. Attorney turned Republican Governor, who unexpectedly spent his high school senior year riding tall on the pine.

The Legislation at Issue Alito leads with a laconic one-line generalization: “Americans have never been of one mind about gambling.” We learn that U.S. Senator Bill Bradley (Knicks-D-NJ) floated, and Congress passed, the Professional and Amateur Sports Protection Act (PASPA) in 1992, which made it “‘unlawful for a State … to sponsor, operate, … license, or authorize … gambling … on’ competitive sporting events.” Congress grandfathered Nevada, as the Silver State was an early fan of sports gaming (and brothels). The law empowered the U.S. Attorney General and private sports organizations to obtain injunctions in federal court to block perceived encroachments. When perennial bookie New Jersey engaged in some pre-season gaming warmups, numerous professional sports leagues and the National Collegiate Athletic Association (NCAA) filed suit to enforce the sports gaming ban. NJ Governor Chris Christie, the bench-warming high school senior, scouted out the opposition and called an audible for a full-court press. The case roster is a Who’s Who of Athletic Politicians. Somehow, Alito omits George H. W. Bush - a Yale baseball team captain in the very first College World Series (1947) - from the program. Bush 41 appointed Alito to the federal bench and later signed PASPA into law. 41 and I boned up on the U.S. Constitution in Houston during the May 19, 2018 matinee of Hamilton. He scored a box and I watched from the Uecker seats. Notice the main players all seem to hail

FORD WILLIAMS

from New Jersey –the U.S. Senator who pressed the legislation, the Governor who challenged it, pertinent judges along the way, and, yes, even the U.S. Supreme Court Justice who wrote the opinion. What are the odds?

The Burning Legal Question The Supremes addressed a simple question: Is PASPA – a federal law prohibiting the States from permitting sports gaming – a constitutional exercise of Congressional power? New Jersey argued PASPA commandeered state sovereignty. The turf-protecting leagues contended PASPA constituted “federal preemption.” The Lower Court Rulings Trial Court. In the luck of the draw, New Jersey born and educated U.S. District Judge Michael Shipp won the toss and presided over the lower court case that had the NCAA, NBA, NFL, NHL, and MLB all cheering for PASPA. NFL aﬁcionados will recall that auspicious Sunday, September 29, 2002, when Arizona Cardinal’s Marcel Shipp (the federal judge’s brother) tallied two touchdowns on 17 carries for 92 yards to topple the New York Giants at Sun Devil Stadium. By the time of his big brother’s 2014 opinion, the running back had long retired as a player and moved on to, well, coaching. In a rousing use of game clock management, Judge Shipp sua sponte granted summary judgment on a motion for preliminary

MAIN STREET Continued from, Page 7

» Award of Service: Ken P’Pool, MDAH. “This is the Mississippi Main Street Association’s most important event of the year,” said Ed Gardner, MMSA Board President. “It gives us an opportunity to meet with and celebrate the local directors and investors throughout the state that are doing the hard work of making our

injunction in favor of PASPA. His logic: “When state law contradicts with federal law, the Supremacy Clause operates to preclude states from following policies different than those set forth by federal law.” Appellate Court. Out of joint with the call, the Garden State hurled a red ﬂag, and the review landed at the U.S. Court of Appeals for the Third Circuit. The appellate zebras sided 9-3 with NCAA. A spirited dissent tossed out by Judge Thomas Vanaskie - who played football at Lycoming College under the legendary Frank Girardi – served as a playbook for the upcoming Supreme Bowl.

The Supreme Refs Rule The deck seemed stacked but the grant of certiorari by the U.S. Supreme Court leveled the playing ﬁeld. The line would change again – also in favor of NJ - after the Justices tipped their collective hand at oral arguments. Suddenly, what had been a slam dunk was now a house of cards. Finally, 89 days after Super Bowl LII, a majority of Supreme Court Justices sounded a decorous Bronx cheer in favor of NEW JERSEY. By a 7-2 vote (or maybe 6-3), the federal ban on sports gaming was deemed unconstitutional! Professor Alito patiently walks the stunned student-athletes through the reasoning, pitching mini-tutorials on commandeering, preemption, States’ rights, and the misapplied Supremacy Clause. Congress, we are reminded, has no “plenary powers,” only “enumerated powers,” and that dogged

downtown districts more competitive, successful and sustainable.” “We are thrilled to honor our economic development and preservation heroes in Mississippi’s downtowns,” Gardner said. Since 1993, Mississippi Main Street Association has generated more than $5 billion in private and public investment (including more than $1.2 billion in public investment).

Tenth Amendment reserves “all other legislative powers … for the Ben Williams States.” As if schooling rookie legislators and bush league judges, Alito sardonically remarks: “[C]onspicuously absent from the list of powers given to Congress is the power to issue direct orders to the governments of the States.” As for that chest-thumping Supremacy Clause, well, it only kicks in if Congress validly exercises a power conferred on Congress by the Constitution. No power, no Supremacy. Not for the ﬁrst time in this country’s history, Congress stepped out of the batter’s box. Near the opinion’s home stretch, Justice Alito hurls a judicial curve ball. Almost as an aside and certainly in dictum, he quietly observes that Congress can “regulate sports gambling directly,” but that having not done so, “each State is free to act on its own.” Do what? This game isn’t over! Congress gets a mulligan.

Concurrence & Dissent Justice Thomas, who confessed affinity for the Dallas Cowboys during his evocative conﬁrmation hearings, concurs with the opinion. But he disputes any notion that “Congress can prohibit sports gambling that does not cross state lines.” Justice Ginsburg, aka The Notorious R.B.G., raps the majority for “wield[ing] an ax” on PASPA rather than “a scalpel.”

Conclusion The Supreme Court found PASPA constitutionally ﬂawed leaving the States free to engage in sports gaming. That ruling might not restrict Congress from ﬂexing its Commerce Clause muscles with a direct run up the middle (instead of calling plays for the States). Regardless of what Congress and the States do with sports gaming, the clear winner in this case is the Tenth Amendment. You see, the powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people. You can bet on it. Ben Williams is a Mississippi attorney. Email Ben at MBWJ@aol.com. Ford Williams attends the Savannah College of Art & Design.

In 2017, Mississippi Main Street programs generated 325 net new businesses, 95 business expansions to existing businesses, 1,458 net new jobs, 109 façade rehabilitations and 86 downtown residential units. MMSA currently has 48 active Main Street cities throughout the state, six Downtown Network members, and numerous Associate, Allied professional members, and Friends of Main Street.

AN MBJ FOCUS: Insurance & Employee Beneﬁ

Gulf Coast seeing positive regarding hurricane insura By BECKY GILLETTE mbj@msbusiness.com For many years after Hurricane Katrina, the high cost of insurance was a drag on the Mississippi Gulf Coast home sales market. The summer of 2017 was tough for hurricanes, even though only one hit Mississippi. Category one Hurricane Nate caused some water damage, but no lives were lost. But despite this past year’s active hurricane season, there are reports that the cost of hurricane insurance has decreased and more people are able to purchase private insurance rather than from the Mississippi Wind Storm Underwriting Association (known informally as the wind pool). “What has happened, which is a healthy indicator, is the wind pool--which is insurer of the last resort—is being depopulated,” said Mark Cumbest, broker-owner and founder, Cumbest Realty who has been on the Mississippi Wind Storm Underwriting Association Board of Directors since 2007. “What that means is that people are getting out of the wind pool and going to private insurers. They are ﬁnding better prices in the commercial insurance market.” In 2011, there were 46,000 wind pool policies in the six coastal counties. “And now we have 23,100 policies,” he said. “That’s good. It is decreasing at a quick rate. In December of 2016 we had 31,000 in the wind pool, In December 2017 we had 25,000 in the wind pool. And now we are down to 23,100 policies. People are buying in the commercial market, which is the way it should be. It is market driven because people are going from higher premiums in the wind pool to the lower premiums they are ﬁnding in the regular insurance market, which is a good indicator.” Real estate is all about affordability. People look at principal and insurance payments, property payments, and utility bills. Cumbest said that when one of the main components—insurance–decreases, that is a good thing for affordability in housing.

“After the storm there were not that many commercial insurance companie writing policies,” Cumbest said. “But the commercial writers came back a whole [lot] quicker and now only two in the wind pool are commercial properties. Our goal under the wind pool was to depopulate. For many years after Katrina we were the ﬁrst resort for insurance and we are always supposed to be the last resort. But now after 13 years we are getting closer to normal on the insurance market. I’m hoping people will continue to cancel wind pool policies and go out into the market because they can get a better deal in the regular commercial real estate insurance market.” Cumbest said home sales on the Mississippi Gulf Coast have picked up. That has been helped by interest rates remaining fairly low. “A lot of prognosticators said rates w higher now and they are not,” Cumbes is good for the home buyer. We are see more new construction right now. The tionally and locally seems to be improv it easier to remove the cloud of doubt a vest in a home or wait and continue to that cloud dissipates, it is good for the Builders are getting to be busy again.” Cumbest has a couple of developmen of being approved and says he is getting for homes and land. “It is a good thing and I think it will said Cumbest, who is the current chair sissippi Real Estate Commission. “In m this business, I have seen a lot of ups an of ﬂuctuations. Right now, I see a prolo period that I don’t anticipate ending an think we are in an upward swing.” Angelyn Treutel-Zeringue, presiden Insurance—Gulf Coast, agreed that th ance market is very favorable right for h and businesses. “The wind coverage can be included coverage in most cases and that gives yo savings,” Treutel-Zeringue said. “It will structure and the location. An agent ca for you to get the best coverage offerin

June 22, 2018 • MISSISSIPPI BUSINESS JOURNAL • www.msbusiness.com

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individual situation. There was a lot of upward pressure on the wind rates. Now that has come and we are seeing upper pressure on flood rates. We really need in the U.S. some good flood reform. There is some good energy around it but so far we haven’t been able to get Congress to pass it.” She said one good thing going on now is private flood insurance markets. This is providing better options for coastal residents. After Hurricane Katrina there were a lot of disputes about whether wind or flood caused the damage. Treutel-Zeringue said in the hurricane prone area, the distinction about what causes the damage, wind or water, requires so much legal interaction to make that determination that it is more cost effective to include flood coverage in with wind policy. “We are seeing several markets offering an all perils policy, which is really exciting,” she said. “We now have offerings where can get fire, wind, liability, flood and even earthquake coverage all in one policy. You reduce the number of adjusters and the amount of your deductible because you just have one deductible. It is a super win-win situation for consumers.” Treutel-Zeringue said insurance rates are static to decreasing. If one company goes up on rates, usually consumers can move to another company with better rates. One problem she sometimes sees with real estate sales is the lack of flood insurance. The best advice I can give to anyone is to make sure they have a flood insurance policy and they don’t let it lapse,” she said. “Homes are much easier to sell with an existing flood policy. For businesses it is pretty much the same. The reason it is really good to have a policy is that the Coast flood zones were remapped after Katrina. There are certain structures that are grandfathered. If you don’t keep insurance, you can lose it and then have pay much more to get flood insurance again. And of course, commercial insurance is more expensive anyhow.” She also highly recommends business interruption coverage. “It is a very valuable coverage,” she said. “The most difficult thing is calculating how much is needed to keep business operations going if you are displaced or have to keep paying employees depending on how long you are out of you regular location. There are a lot of considerations, but your agent can help you think through all of that.

Preparations important for home owners and businesses By BECKY GILLETTE mbj@msbusiness.com Hurricane season started June 1 and wherever you live in the coastal area, it is important to have a plan, said Earl Ethridge, director of emergency services for Jackson County. Plan where you will go in the event of a hurricane, and what you need to take especially medicine, cash and insurance information. “We don’t recommend anybody stay if we get into a situation when there is a landfall in Jackson County,” Ethridge said. “We have shelters in Jackson County, but they are not comfortable. They are to be used as a last resort. It is better to plan to go inland and stay with

FCCI Insurance Group has been insuring businesses and doing what we say we’ll do for nearly 60 years. Our expertise in underwriting, risk management and claims handling helps businesses thrive and face the future with confidence. Ask your insurance agent about FCCI, or visit www.fcci-group.com to find one. Tiffany Hawkins Vice President Gulf Coast Region FCCI Insurance Group 601-914-2359 ext. 8118

friend or relatives.” For businesses, he recommends making sure you know your inventory before the storm compared to afterward. That makes it easier with insurance claims. And make sure employees know your hurricane business plan. “It is no good if the boss has a plan but no one else in the organization knows about it,” Ethridge said. “Businesses need to understand employees have family responsibilities, so businesses should pull their trigger fast enough to make sure employees have time to take care of their families.” Some people might decide against evacuating when they see the forecast is See PREPARATIONS, Page 16

12 Q Mississippi Business Journal Q June 22, 2018

Insurance & Employee Benefits

Where are the millennials in insurance?

» Ole Miss teams with industry executives to replenish ranks as boomers retire By TED CARTER mbj@msbusiness.com The prospect of calamities has kept insurance executives from sleeping easy since way back in the 1300s when enterprising Genoans began insuring ships and cargo. Nowadays, insurance execs are trying to head off a modern-day calamity of not having new blood to carry the industry forward as baby boomers retire from the ﬁeld in droves. Their efforts are getting much-needed help from several universities around the country that have become critical supply lines for moving millennials into the industry. In the Southeast, the University of Mississippi is a prominent contributor, as are the University of Georgia and Florida State University. Ole Miss didn’t get its lofty insurance industry reputation overnight. It opened the program in 1948, making it one of the oldest in the nation. The University of Mississippi’s Dr. Andre Liebenberg says the industry calls

the personnel shortage a “talent gap,” but the ﬁnance professor and Gwenett & Jack W. Robertson chair of insurance concedes the ﬂat truth is “there are not that many students who enter the universities that say, ‘I want to be an insurance major.’” On the other hand, the university is making strides in efforts to make an education in insurance and risk management a more appealing option, says Liebenberg. “We try to change the students’ minds and perceptions of what insurance is all about.” Too often, incoming students think of insurance as a briefcase-carrying life insurance salesman showing up at your door or Flo on the Progressive Insurance TV commercials, he adds. Particular success, Liebenberg says, has come from showing the students the opportunity work in the industry gives them to tackle problems like cyber risks and major commercial risks. Once in, few leave the industry, according to Libenberg. Meanwhile, industry leaders are seeking to counter stereotypical views of their

industry through rebranding, he says. They also are trying to undo damage the industry caused itself years back through a misguided decision to cut back on training, says Jeffrey Rodriguez, CEO of Brown & Riding Insurance Services, a Los Angeles-based wholesale insurance ﬁrm and largest employer of Ole Miss graduates in risk management and insurance program graduates. “The fundamental problem is that back in the ’70s, ’80s and ’90s the companies had training programs,” he says. “They eliminated those to save on costs. It really did cause some issues with bringing young people in.” Some progress has been achieved on the branding, Rodriguez says. “I would say it has become more fashionable,” he says, and cites the emergence of technology, especially the cyber world, as prominent components of the industry. Risk management and insurance programs like those of the University of Mississippi also have become draws for a certain kind of student. They may not be entirely suited for the academic focus of law schools or other professional schools but can thrive in a program like the one Ole Miss offers, Rodriguez says. These, he says, are “kids who think broadly and can think on their own.” Though Rodriguez sees the university’s program as well suited for C and B students, he says they must work hard to make it to graduation. “I think the program emphasizes the real world rather than the academic world,” the chief executive says. The result: The program has become very inviting to an industry looking to restock its work force, Rodriguez says. The Brown & Riding CEO’s belief in the quality of the Ole Miss grads led him to open a service center in Oxford that employs many of the risk management and insurance program’s students part time. “Based on my experience, they are the best prepared students. That is why we invest heavily in the program,” says Rodriguez, whose company in addition to Los Angeles has offices in Seattle, Chicago, Dallas, Atlanta and other U.S. cities. “They do backroom stuff for us” at the Oxford office, he says. Brown & Riding makes full-time job offers to ones who can “hit the ground running,” Rodriguez adds. Graduates of the University of Mississippi program are also entering the ranks of FCCI Insurance Group, a 59-year-old Sarasota, Fla.-based commercial property and casualty insurance ﬁrm with a regional office in Ridgeland that employs 80 people. FCCI has hired more than a dozen Ole Miss risk management and insurance grads in the last decade, says Thomas Quaka, senior vice president and head of the Ridgeland operation. Retention of the graduates has been over 90 percent, he says.

“Insurance education has become my most worthwhile passion,” Quaka says. “The program is essential to the productive future of the industry.” U.S. job forecasts show just how essential. “The industry will re- Liebenberg quire more than 200,000 additional employees by the end of 2020,” Quaka says. “Attracting the millennials means supporting their source, IRM (Insurance and Risk Management programs).” FCCI starts its recruiting at Ole Miss and Rodriguez other IRM programs no later than the students’ junior year, according to Quaka, a former chairman of the Ole Miss IRM program’s 25-member advisory board. Current Advisory Committee chair Lance J. Ewing is a Texas-based executive vice president of global risk management and client services for Cotton Holdings, a national provider of telecom infrastructure and general business services. Ewing is a believer in getting Ole Miss students to change their majors to risk management and has established a scholarship endowment to help make that happen. “It’s a way to lure them into the world of risk management,” he says. Risk management, he says, is kind of a catchall for the industry and includes compliance, physical security and cyber security. The multi-faceted aspect is part of its appeal, Ewing says. Ewing deepened his involvement with the Ole Miss program about 10 years ago when Dr. Larry Cox, the former head of the university’s IRM program, asked him to help add depth to the risk management curriculum. Ewing says it is common for IRM grads to enter the industry as agents, underwriters or actuaries but eventually go into risk management. “You get to be boss,” he says. “It’s not sexy, but it is stimulating. “ In risk management, the insurance pro identifies the level of risk and can greatly influence whether a company grows, should or should not make a product or whether to self-insure, Ewing says. “I’m very passionate about growing the next generation of risk professionals,” he says. Liebenberg, the head of the Ole Miss IRM program, says 34 IRM students are interning around the country this summer. Many will return with an idea of where they belong in the industry, he says. Regardless of their specific category choice, they most likely will get a foot in the door, Liebenberg says. “There is a home for everyone in the industry.”

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14 Q Mississippi Business Journal Q June 22, 2018

Insurance & Employee Benefits

LAW ELEVATED

Beneﬁt plan records retention: How long is enough?

sk any benefits professional and he or she will likely tell you the question most frequently asked by benefit plan sponsors is: “How long do I have to keep these old plan documents?” The answer to that question depends whether the benefit plan is subject to federal law (the Employee Retirement Income Security Act or “ERISA”). Most benefit plans sponsored by private (non-governmental) employers other than churches are subject to ERISA, including plans sponsored by nonprofit entities. For those plans, some records must be maintained for at least six years, while others must be maintained so long as the plan is in existence and for a period of time after the plan has been terminated. The basic rules. There are two primary records retention rules for private employer benefit plans. The first rule requires the documents needed to complete the annual report (Form 5500) filed with the Department of Labor (as well as the report itself and all attachments) be maintained at least six years from the due date of the return, as extended. The records commonly falling in this category include vouchers, worksheets and resolutions as well as trust statements and certifications; annual accounting and testing reports; and executed plan documents. The obligation is imposed on the plan administrator, which is usually the plan sponsor.

The second rule is much broader, requiring the employer sponsoring the plan to maintain records of all employees sufficient to determine the benefits due or to become due each employee, all in accordance with as of yet unissued Department of Labor final regulations. Proposed DOL regulations specify that individual employee records must be maintained “as long as a possibility exists that they may be relevant to a determination of benefit entitlements.” Proposed regulations are not binding on plan sponsors and administrators but they are strong evidence of the Department of Labor’s interpretation of the statute. The type of plan involved will obviously impact the records to be maintained under this second rule. For medical plans – where a claim for benefits must be made fairly promptly (generally within one year of the date of the medical service) – the retention period for most documents will be much shorter than in plans in which a benefit may not be paid until much later, such as a 401(k) or pension plan, where a benefit may not be paid until the employee attains the normal retirement age or sometimes even later. For medical plans, the documents to be maintained under this second rule generally include records to establish eligibility; election forms; executed plan documents/insurance policies; schedules of benefits; proof of distribution of required notices (e.g., COBRA notices,

etc.); and claims procedures and records of claim denials. Examples of the retirement plan records contemplated under the second rule include participant census information (i.e., dates of hire, termination, and re-hire, compensation, hours of service, etc.); participant election and beneficiary forms; actuarial valuations (if applicable); distribution amounts and dates, completed distribution forms (including, if applicable, spousal consents), and Forms 1099R; annual accounting reports (specifically individual participant account records); trust accountings; and executed plan documents and documents for associated funding arrangements (i.e., trust agreements or annuity contracts). Failure to retain required records. There is no specific monetary penalty for failure to maintain records under the Form 5500 rule and only a modest penalty for a failure under the second rule. Nevertheless, the failure to maintain records could constitute a breach of fiduciary duty and thereby subject the responsible party to personal liability and possible DOL enforcement action. The greater risk, however, is the potential to have to dedicate employer personnel time and resources to defend a claim or lawsuit that may be brought, including having to establish the accuracy of the benefit calculation. There is even case law that the burden of proof can shift from

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the participant to the employer as well as the potential for other procedural disadvantages to the employer where its records are lacking. Isn’t records retention the recordkeeper’s responsibility? It is not Gilbert Van Loon uncommon, especially with 401(k) and other retirement plans, for the plan’s recordkeeper to handle some or all of the records retention duties. Despite any contractual arrangement between a plan sponsor or administrator and the recordkeeper, the employer or plan administrator has the legal obligation to retain those records and therefore remains ultimately liable for any failure to do so. Employers and plan administrators whose recordkeeper is maintaining the plan’s records must exercise oversight to assure the necessary records are in fact being maintained and are accessible, including being available after termination of the contractual relationship; the typical recordkeeping agreement seldom obligates the recordkeeper to provide copies to the plan sponsor or administrator or to even maintain plan records beyond the termination of the agreement. A prudent plan sponsor or plan administrator, therefore, will establish a periodic schedule of downloading documents and reports from its recordkeeper’s website to help it discharge its oversight responsibility. Electronic storage rules. The good news is paper benefit plan records are not required to be maintained, as DOL regs specifically sanction the electronic storage of records. The electronic records must be maintained in reasonable order in a safe and accessible place where they can be easily inspected, examined, and reproduced. In addition, the electronic recordkeeping system must have reasonable controls to assure the integrity, accuracy, authenticity and reliability of the electronic records. In the event of any dispute or claim, the employer’s or plan administrator’s ability to rely on electronic records will be dependent upon its ability to establish satisfaction of the regulatory requirements. Paper records may be destroyed once they are transferred to a compliant electronic recordkeeping system except in the rare instance where the electronic record would not be considered an original under applicable law. Care must be exercised to dispose of old paper records in a confidential manner to assure compliance with applicable fiduciary rules, HIPAA and any applicable state law privacy requirements. Responding to participant requests. It is not unusual for employers to receive requests for information about retirement benefits from either employees who terminated many years earlier or their beneficiaries. When a retirement plan participant terminates from employment and does not receive a distribution of his or her benefit within a short time after termination, the

See VAN LOON, Page 18

Insurance & Employee Benefits

June 22, 2018

Mississippi Business Journal

Top 50 Property & Casualty Insurance Companies

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PREPARATIONS Continued from, Page 11

for only a category one or two hurricane. Ethridge said that isn’t a good idea. “It doesn’t have to be a massive category four or ﬁve storm,” Ethridge said. “These small storms can have just as devastating of an impact. You don’t have the surge, but you’ve got the rain. Hurricane Isaac in 2012 delivered 25 inches of rain in eastern Jackson County, and that impacted Chevron and the Bayou Casotte area, not to mention road transportation and everything else. We did 500 water rescue evac-

Insurance & Employee Benefits

uations.” Another example he gives is Hurricane Harvey this past year in Houston, Texas, which deluged that area with 60.5 inches of rain in ﬁve-day period. “A slow-moving storm can have major consequences,” Ethridge said. “Hurricanes are typically just a coastal event, but they can have far reaching impact. Hurricane Katrina went up through the whole state. And just from the business point of view, if Chevron Pascagoula or some of reﬁneries in Texas are not producing gas, it makes cost go up and can affect transportation.” Harrison County Emergency Manage-

ment Agency Director Rupert Lacy highly recommends businesses have a continuity of operations plan. “If we should have to make those recommendations that businesses need to close, we always want to get those businesses up as quickly as possible after the storm,” Lacy said. “But in our business, we have to make sure we have the infrastructure that will support them. We encourage business owners to have a communications plan to have a way to check on the safety of staff, and to verify their insurance. Just as we recommend people have a go bag at home, we encourage people to have a go bag at

work when a disaster happens.” Credit cards might not work after the storm if the power supply is out, so a supply of cash is handy. Medications can be critical, and families need a communication plan and a way to charge electronic devices like cell phones. “One of the things we saw in Irma is that it is a good idea to encourage people to print out their phone directories just in case the cell phone or computer goes down because we have gotten to point don’t use a lot of muscle memory dialing numbers,” Lacy said. “The phone automatically dials numbers. So, we may not be remembering numbers like we used to. And always have a backup plan if you have to evacuate. Know where you are going and let someone know you are going there.” Lacy said that in the past month or so they have been actively campaigning for community preparedness: Get your home ready. Get your business ready. Get your car ready. Be prepared if there should be any type of tropical system. “We had an early practice run with Alberto,” Lacy said. “We weren’t necessarily so worried about wind, but the rainfall was a concern. Off Cuba and the Yucatan, it was a big rain producer. It exited in the north part of the U.S. and there was a lot of rain and some deaths as a result.” Research done by the National Hurricane Center has shown that most deaths from hurricane are water related whether it is storm surge, rainfall, river flooding or flash flooding. “We always take rainfall very seriously,” Lacy said. “Our history has shown us we have had some bad storms and we have seen some high-water marks. Run from the water and hide from the wind. This past year was a little more intense than what we’ve seen most years. This year the Hurricane Center is forecasting an average or above average season. Last year major storms were all around us that didn’t hit us. Even then, we had Nate late in the season.” Lacy said Nate brought some incredible training for them because it was such a fast-moving storm. Nate came up with 48hour notice. It developed off the Yucatan Peninsula, grew quickly and moved fast. “It actually came ashore between Biloxi and Ocean Springs,” Lacy said. “And it was a hurricane. It was an ill-defined hurricane, but it was a hurricane. We did see right at ten feet of storm surge along the beach in Harrison County. The good thing is we lost no life, so that is very rewarding that we did our jobs properly that nobody was harmed.” Lacy said all the coastal counties and the Mississippi Emergency Management Agency have more information about hurricane preparedness on their websites.

June 22, 2018

RIDGELAND

Mississippi Business Journal

Bradshaw named American Red Cross Mississippi, CDO Erica Bradshaw joins the American Red Cross Mississippi Region as the chief development officer. Bradshaw was in the major gifts ﬁeld for eight years with The Salvation Army. She began as a major gifts fundraiser traveling the Mississippi Delta and North Alabama. She quickly advanced to the divisional direc- Bradshaw tor of the major gifts department overseeing the Alabama, Louisiana, and Mississippi Division. Bradshaw has a bachelor’s degree in integrated communications from Spring Hill College in Mobile, Alabama. Her Red Cross office is located in Flowood.

Upchurch new chief of staff at Secretary of State’s Office

Renderings courtesy of Northpark/For the MBJ

Transformation of Northpark Mall aims for November completion By JACK WEATHERLY jack.weatherly@msbusiness.com

A multimillion recasting of Northpark Mall is underway as it aims for a mid-November “grand opening,” according to general manager Kasey Dickson. Work began in early March after El Segundo, Calif.-based Pacific Retail Capital Partners bought for an undisclosed amount the 958,000-square-foot mall in September 2016 from Simon Property Group of Indianapolis, which opened the center in 1984. Pacific Retail is transforming Northpark to reflect the retail climate that has been radically changed by online shopping and more recently, mass third-party retailers such as Amazon. The mall, which last underwent a major upgrade 20 years ago, “is in an evolution where the end point will Renderings courtesy of Northpark/For the MBJ be an entertainment, shopping and dining destination,” said marketing manager Christy Campbell. Top of page: Center court renderThe center court is being opened up by removal of ing; Above: Rendering of Eatery the escalator to another part of the mall, Dickson said. The old food court will be expanded and called the Eatery, “a spacious communal dining area with an intimate cafe-style dining experience,” Najla Kayyem, Pacific Retail senior vice president for marketing, said in an earlier statement. Foot traffic is over what it was a year earlier, Dickson said. JACK WEATHERLY/MBJ Crisp, a men’s casualwear store will be added to the Crisp, a men’s casual clothing store, will be the next lineup next month. retailer at Northpark.

Nathan Upchurch, Secretary of State Delbert Hosemann’s long-time Legislative Director, recently assumed the Agency’s Chief of Staff role. A native of Kosciusko, Upchurch earned a bachelor’s degree in Political Science from Mississippi State University. Since 2013, Upchurch has been the Secretary of State’s Legislative Director. Among other responsibilities, Upchurch developed the policy and legislative agenda for the Agency, assisted in drafting legislation, and served as the primary liaison between the Agency and the State Legislature. Upchurch is an active member of the Phoenix Club of Jackson, serving currently as the organization’s co-fundraising director. He is also a member of the Mississippi State University Central Mississippi Alumni Association. Upchurch lives in Jackson with his wife, Mallory Dickard Upchurch, of Greenwood.

Ohr-O’Keefe Museum among 25 Best For the second consecutive year, the Ohr-O’Keefe Museum of Art has been voted as the best museum or gallery in the state of Mississippi as well as one of the 25 best galleries and museums in the United States by the American Art Awards. Alongside the likes of the Newcomb Art Museum in Louisiana, The Leonardo in Utah, and the Peter Lik Galleries in Florida, OOMA is recognized for its dedication to and elevation of the arts, education, and community.

United Way of Capitol Area names new president, CEO United Way of the Capital Area (UWCA) Board of Trustees is pleased to announce the appointment of Mr. Ira E. Murray as the organization’s new President and CEO, effective July 2, 2018. He is replacing Carol Burger, who is retiring after 34 years of outstanding service to the organization. Ira brings to this position nearly a decade of United Way experience and a passion for ensuring that children and families in under-resourced communities receive the support needed to build pathways to prosperity.

18 Q Mississippi Business Journal Q June 22, 2018 ENTREPRENEURSHIP IN MISSISSIPPI

Supporting startups: Delta I-Fund comes to Jackson

ontemporaneous with my writing of this article, there are 17 teams of startups congregated on the first floor of my State Street building for the kickoff weekend of the Delta I-Fund summer cohort, an annual program funded by grants from the Winrock Foundation and the Delta Regional Authority. The mission of the Delta I-Fund is to positively impact low-to-moderate income communities throughout the Delta Regional Authority territory, which include areas in Mississippi. The program seeks to provide a platform for the creation and launch of high-growth companies, spurring economic development and job creation in the region. The types of ideas and startups targeted by the Delta I-Fund are those based on innovative business models, including patented university research, such as medical, biomedical, science, and engineering applications; software and other IT-based platform solutions; and any other patented or proprietary technology or innovation that provides a competitive advantage. The 17 teams that descended on Jackson over this past weekend hail from the eight-state Delta Region and embarked on a two-day onboarding process into this early-stage, proof of concept accelerator. Each team, which is made up of two or three entrepreneurs, will set out on a 12week rigorous training program focused on customer validation using the lean business canvas model. The teams also receive technical assistance and access to seed stage capital as part of this accelerator program. Teams are also matched with a mentor who has correlating industry experience and skillsets. Mentorship is a tactical component of the Delta I-Fund’s strategy, as each mentor will guide from his or her own experience and serve as a “coach.” I have enjoyed the distinct privilege of serving as a mentor for the Delta I-Fund on two occasions, first mentoring an Arkansas-based consumer food product startup and currently an Arkansas-based ed-tech startup that wants to gamify certain aspects of el-

ementary education. Mississippi is well represented in this summer cohort, with two companies in particular that I am interested in observing through this process. One of these Mississippi startups is EasyKale, a consumer food product business that seeks to provide customers with kale products that are easier-to-use, have a longer shelf life, taste better, and retain the bioactivity of traditional leaf kale without the use of pesticides. EasyKale was founded by Bilal Quizilbash and is being supported by veteran startup junkie Richard Sun, the entrepreneur in residence with Innovate Mississippi, and marketing guru, Todd Stauffer, owner and publisher of the Jackson Free Press and BOOM Jackson. Another Mississippi entrepreneurial venture participating in the Delta I-Fund, and one to keep an eye on, is OutFirm. This company’s goal is to provide startup found-

VAN LOON Continued from, Page 14

amount of his or her benefit must be reported to the Social Security Administration. When he or she later applies for Social Security (or when his or her surviving spouse or dependents apply for Social Security following his or her death), the Social Security Administration advises the requesting party that he or she may be entitled to a retirement benefit from the specified plan. It is these notices that often trigger inquiries by former employees. Until fairly recently, a retirement plan that reported a terminated participant with a deferred vested benefit was not required to later report to the Social Security Admin-

ers with much-needed legal services from ideation to series A through a ﬁxed-price, affordable subscription services. OutFirm was founded by startup and emerging company lawyer Anne Turner. OutFirm’s product seeks to disrupt the legal service industry, a conservative industry that has resisted change in light of the democratization of legal knowledge through robust search engines such as Google. Where the Delta I-Fund excels for Mississippi is that it is reaching and making an impact in many of our lower income communities. There is great value in this mission, because by exposing these bright minds and their innovative ideas to the appropriate resources and guidance, we are investing in their futures as well as our state’s future. In fact, there are plenty of inspiring stories of highly successful entrepreneurs that came from even abject poverty before ﬁnding success. Jay-Z is one

istration when that person’s beneﬁt was paid to him or her (or his heirs), and many plans did not voluntarily do so – so those plan sponsors now have to deal with inquiries from long ago employees or their heirs. Maintenance of good records of distributions will go a long way to help the employer quickly dispatch inquiries of this nature; having a copy of the participant statements, completed distribution forms, and the IRS Forms 1099-R issued on distributions will often be sufficient to respond. Concluding Thoughts. Records retention is difficult enough, but it is compounded where the employer has been involved in merger and acquisition transactions, changed computer systems, or even where there have been changes in personnel overseeing the beneﬁt plans. As with

of those. He was selling crack in a Brooklyn housing project long before he became one of the most successful – and innovative – music moguls in the United States. For me, it is not only Matthew McLaughlin a privilege, but it is also fascinating to work with these types of entrepreneurial minded individuals and watch as they follow their dreams and often grow their ideas into viable businesses. I have been immeasurably blessed with the good fortune of working with hundreds of entrepreneurs throughout Mississippi and the Southeastern United States over the span of my career as an attorney. Supporting startups through programs such as the Delta I-Fund that offer Mississippians in our Delta region valuable opportunities for personal and professional growth is greatly needed. After all, entrepreneurial success is not – and should not be – dictated exclusively by educational, ﬁnancial, or social status. Instead, it is the exposure to opportunities for learning. It is the culmination of the training and grooming of characteristics, such as vision, passion, adaptability, and resilience. These are the intangible traits that high achieving entrepreneurs possess and what will ultimately set these innovators apart and position them for success.

Matthew P. McLaughlin is an attorney with McLaughlin, PC in Jackson, Mississippi, and serves as the executive director of the Mississippi Brewers Guild. Matthew’s passion is working with creative and entrepreneurial-minded people and organizations, having worked with and advised hundreds of entrepreneurs, startups, and social innovators throughout the Southeastern United States. He may be contacted at matthew@mclaughlinpc.com or 601-487-4550, or you may visit www.mclaughlinpc.com for more information.

so many things involving benefit plans, proper planning on the outset can avoid headaches, angst and considerable expense at a later time. Establishing and following standard procedures and controls for benefit plan records is a prime example of this principle. Plan sponsors and administrators are encouraged to consult their benefits adviser or legal counsel for a better understanding of how these rules apply to their particular circumstances.

Gilbert C. Van Loon is an attorney at Butler Snow’s Ridgeland office whose practice focuses on all aspects of retirement and health and welfare beneﬁt plans.

June 22, 2018

Mississippi Business Journal

THE SPIN CYCLE

The state of digital news with consumers

e live in a digital news world folks. Which is no surprise! A recent study by the Pew Research Center on the state of the news media reveals that more than nine-in-10 adults (93 percent) in the U.S. get at least some news via online, mobile or desktop. And, the online space has become a host for the digital homes of both legacy news outlets and new, “born on the web” news outlets. Digital advertising revenue across all digital entities (beyond just news) continues to grow, with technology companies playing a large role in the ﬂow of both news and revenue, according to the survey.

Audience While online news includes the digital operations of many so-called “legacy” news organizations (those that originated in print or broadcast), this audience section presents data about digital-native news publishers – those originally founded on the web. (Data on the digital operations of legacy media outlets are included in other fact sheets where available.) The digital-native news outlets included in this analysis are those whose primary domain – the outlet’s ﬂagship website – averaged at least 10 million unique visitors per month from October-December of each year analyzed, according to comScore, a cross-platform audience measurement company. There were 35 such outlets in 2017. The average fourth quarter, monthly unique visitors for the primary domains of these outlets decreased 5 percent in 2017 to 22 million, compared with 23 million in 2016, according to comScore data. The average minutes per visit was 2.4 minutes, on par with 2016. Outlets have several options for reaching their consumers, including apps, newsletters, podcasts and aggregation platforms like Apple News. The use of those different tools varies across digital-native news outlets. In a Pew Research Center audit of 35 outlets conducted in early 2018, a majority of these highest-traffic digital-native news outlets (57 percent) have apps for at least one of the two main mobile platforms (iOS and Android). However, compared with 2017 there has been some movement away from offering apps on both platforms: 31 percent of digital-native news outlets offer both in 2018, down from 42 percent in 2017. Instead, more outlets in 2018 (23 percent) have just an iOS app than in 2017 (17 percent), while just one outlet (3 percent) offers only an Android app. Digital-native news outlets are also adopting other outreach and engagement methods. About eight-in-ten (83 percent) of these outlets offer newsletters, and 86 percent have an official presence on Apple

News. A large majority (71 percent) release podcasts, and 63 percent allow comments on their articles. These outlets are also highly likely to use social media as part of their outreach. Similar to 2017, nearly all have official pages or accounts on Facebook (100 percent), Twitter (100 percent), YouTube (94 percent) and Instagram (89 percent). However, only about one-in-ten (14 percent) have an official channel or account on Snapchat, down about 10 percentage points from 2017. Digital Economics Digital advertising continues to grow as a proportion of total advertising revenue, a trend driven in large part by growth in advertising on mobile devices. The estimates below are for all digital advertising revenue, not just for news outlets, and thus are an indicator of the general direction of the economic health of the digital realm rather than the digital news sector specifically. (There is no available economic data specifically for the digital-native news outlets studied above.) In 2017, according to eMarketer estimates, digital advertising grew to $90 billion, an increase from $72 billion in 2016. It was estimated to comprise 44 percent of all advertising revenue, up from 37 percent in 2016. Newsroom Investment Roughly 13,000 employees worked as reporters, editors, photographers or videographers in the newsrooms of digital-native outlets in 2017, according to data from the Bureau of Labor Statistics’ Occupational Employment Statistics. (Digital-native newsroom employment and wage data are based on the “other information services” industry code, whose largest component is “Internet publishing and broadcasting and web search portals.” For details see the methodology.) The median wage for reporters and editors was roughly $60,000 per year in 2017. (Data were not available in 2017 for photographers or videographers.) Golden Mic | North America awarded World Cup 2026 As you have probably heard, North America was awarded the coveted World Cup for 2026, soccer’s biggest championship, and it will focus the world on the U.S., Canada and Mexico. After an intense year of lobbying, FIFA soccer federation leaders from the United States, Mexico and Canada made one final, furious push, visiting more than 50 countries and lobbying more than 150 federations in the last five weeks. That dedicated effort scored with the soccer federation and the governing body

chose the so-called united bid to host the 2026 World Cup. The North American bid was chosen over Morocco with the backing of 134 of the 199 countries that voted, winning support from members of all six FIFA confederations. Even teams from Africa, which had promised to vote in a bloc for Morocco, supported the united bid, turning what was expected to be a tight race into a rout. The 2026 World Cup will be the largest in history, expanding to 48 teams and 80 games — 60 of which will be played in the U.S. Canada and Mexico will get 10 each. It will also be the ﬁrst World Cup hosted by three countries. In its presentation to FIFA, the united bid committee listed three possible venues for the title game: MetLife Stadium in East Rutherford, N.J.; AT&T Stadium in Arlington, Texas; and Los Angeles. The Rose Bowl was the site of the title game in 1994, the only time a World Cup was played in the U.S. It was held in Mexico in 1970 and 1986, and Canada has never hosted. It is yet to be

determined if all three nations will Todd Smith be granted automatic bids into the field, as is customary for the host nation. The united bid committee’s chairmen – U.S. Soccer president Carlos Cordeiro, Canadian Soccer Association president Steven Reed and Mexican federation president Decio de Maria — pulled their winning proposal together at a time of political strain between the countries they represent. The bid lapped its only challenger, Morocco, by a vote of 134 to 65, after which members of the winning delegation leapt out of their seats to embrace one another, pump their fists and celebrate. The bid promises to deliver FIFA $11 billion in income – a championship penalty kick that could mean tens of millions of dollars in development funds for each national association. That’s certainly a Golden Kick for North America! 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.

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