MBJ Nov08 2013

INSIDE — C Spire announces announces 9 city finalists for new service

www.msbusiness.com

November 8, 2013 • Vol. 35, No. 45 • $1 • 28 pages

SPECIAL REPORT: INSIDE INDUSTRIAL PARKS Keeping our eye on...

J. Tedrick Ratcliff Jr. As an executive staffer for the Mississippi Forestry Association, Ratcliff is still never far from the woods. Involved with the group since high school, today Ratcliff serves as an ambassador of the forestry profession.

Empty lots?

Opportunity waiting?

— more newsmakers, P 21

Around town {P 12} » Chaney: New flood insurance rates lack adequate data Strictly Biz {P 24} » Outback Steakhouse to open restaurant in Flowood in 2014 Lists {P 17} » Industrial Parks

» Competitive communities have sites Inside Biz {P 10} » Outlets of Mississippi mark Jackson’s arrival as a fashionforward marketplace

prepared and waiting for when business calls — Page 14

MANUFACTURING

New ammo maker, Atlantic Marksmen, to open in Gulfport in early 2014

By LISA MONTI I CONTRIBUTOR mbj@msbusiness.com

GULFPORT — A new international venture based in Gulfport will begin producing ammunition early next year using high-end components from European suppliers. The quality of the components is what will set the Atlantic Marksmen brand ammunition apart, the owners say.

Olivier Scherlofsky and Ricky Bishop plan to sell ammunition to gun shops, sporting goods stores, police departments and others starting early next year.

They’re getting into the market at a time when manufacturers can’t keep up with the unprecedented demand for ammunition.

“We will start at half a million rounds a month and go up,” said Scherlofsky, who is head of the Trade League Mississippi Central Europe Inc. He has 15 years experience in an Austrian military security unit and is guest lecturer at a U.S. special ops school.

Bishop, whose Specialty Machine in Gulfport builds equipment for chemical plants and refineries, said the new company will be able to provide ammunition “at a fair price and the high quality you are not able to get every day.”

He said, “This is where the European and American connection is. We are buying European first class components and assembling them in Mississippi.”

The partners have rented the site of a former steel facility and will soon put up a See AMMO, Page 12

MBJ FOCUS: CONSTRUCTION

FORTIFYING Singing River secures grants Page 18

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4 I Mississippi Business Journal I November 8, 2013 MILITARY

Miss. NG chief bucks Pentagon with refusal to recognize same sex marriages

By TED CARTER I STAFF WRITER ted.carter@msbusiness.com

“We’re still abiding by the state constitution.”

Mississippi’s top Army National Guard officer, Maj. Gen. Augustus “Leon” Collins, is caught between Mississippi’s refusal to recognize gay marriage and the insistence of the Pentagon that Mississippi issue official ID cards to the same-sex spouses of Air and Army National Guard members.

At this point, Mississippi Adjutant General Collins is sticking with the position outlined late Friday by a spokesman for Gov. Phil Bryant which cited the state’s constitutional ban on recognizing same-sex marriages.

Specifically, Bryant spokesman Mick Bullock said, the state constitution “defines marriage as a union between one man and one woman and expressly prohibits the recognition of same-sex marriages performed in other jurisdictions.”

Timothy J. Powell, a spokesman for Collins, said the governor’s statement says all that needs to be said. “Gov. Bryant’s statement speaks for itself,” Powell said.

Powell said Collins reaffirmed his position

Timothy J. Powell Spokesperson for Major General Augustus “Leon” Collins

in a conversation Monday afternoon. “We must continue to abide by the state constitution,” Collins is reported to have told Powell.

Powell said he is unaware of any requests by the same sex spouses of Guard members for identification cards. If it receives a request, “We will refer them to active duty installations.”

The ID cards would allow gay spouses to receive the same benefits as other spouses of Guard personnel.

Defense officials estimate 18,000 samesex couples are in the active-duty military, National Guard and Reserves and among military retirees. It’s unclear how many of those are married, the Associated Press reported. The Pentagon policy on equal access to benefits does not apply to unmarried gay partners of military members.

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Under Pentagon policy that took effect Sept.3, same-sex spouses of military members are eligible for the same health care, housing and other benefits provided opposite-sex spouses. That decision followed the U.S. Supreme Court ruling in June voiding the Defense of Marriage Act. Collins received an official request Friday from the chief of the National Guard Bureau, Gen. Frank Grass, to follow Department of Defense policy and begin issuing the ID cards. Grass made his request to Collins and the commanders of the national guards of seven other states on orders from Secretary of Defense Chuck Hagel.

Grass, Collins spokesman Powell said, has “no authority” to order a change.

“We’re still abiding by the state constitution,” Powell said.

The federal leverage comes from the vast majority of expenditures it covers for National Guard units. “The National Guard Bureau has no authority; however, the governors and their adjutants understand where the allocations of their budgets and personnel come from,” said a spokesman at the Guard Bureau.

For now, Gen. Grass, who represents the National Guard as a member of the Joint Chiefs of Staff, will continue to try persuasion. If that continues to fail, stay tuned, the Bureau spokesman said.

Hagel said in a speech last week the states’ actions reflect prejudice and violate their obligation under federal law. “Their actions have created hardship and inequality by forcing couples to travel long distances to federal military bases to obtain the ID cards they’re entitled to,” he said.

Hagel said the adjutant generals, though they work for their states’ governors, “will be expected to comply” with Pentagon policy on this issue.

In a statement late Friday, Grass’ National Guard Bureau said Grass “will employ all means available to ensure that the National Guard is 100 percent compliant with the DoD policy to extend benefits to same-sex spouses of National Guard members.”

Grass, the statement said, looks forward to the “anticipated compliance” of the National Guard organizations of Mississippi, Texas, Florida, Georgia, Louisiana, Oklahoma, South Carolina, and West Virginia.

“Soldiers, Airmen and their family members who serve their nation deserve the full

www.horne-llp.com I 601.326.1000 See

REFUSAL, Page 11

FLORIDA FORCING ALL NATIONAL GUARD FAMILIES TO GET IDS AT FEDERAL BASES

By TED CARTER I STAFF WRITER ted.carter@msbusiness.com Like Mississippi, Florida has a ban on recognizing gay marriages. But unlike Mississippi, its National Guard has found a way out of the spousal benefits pickle the ban presents.

The rub, however, is that Florida’s solution may get the state off the hook with the Pentagon but is certain to stir anger throughout the ranks. It forces all married couples to travel long distances to federal military bases to obtain the ID cards to which they are entitled.

Mississippi has been steadfast in its refusal to adhere to Department of Defense policy on granting benefits to same-sex spouses of National Guard members and is advising the spouses to go to federal installations for the ID cards.

Florida’s solution: Have all Air and Army National Guard members obtain the IDs at federal military bases.

Beginning Tuesday, all married military couples — gay and straight — must apply for and receive health, death and other benefits at federal facilities located within the state, the Miami Herald’s Steve Rothaus reports.

“In order to meet the state constitution and meet federal intent, we moved the functions from state buildings to federal buildings and we’re in compliance all the way around,” said Lt. Col. James Evans, director of public affairs for Florida National Guard, in Rothaus’ article.

“We want to ensure that everyone is treated equally and all Florida National Guard members get their benefits in the same place.”

After the U.S. Supreme Court ruled in June that the federal government must recognize legally married same-sex couples, the Pentagon adopted a policy that same-sex spouses of military members are eligible for the same health care, housing and other benefits enjoyed by opposite-sex spouses.

Florida, Mississippi and six other states announced they would not implement the Pentagon’s policy, a move that angered Defense Secretary Chuck Hagel.

“This is wrong,” Hagel said in a speech last week.

November 8, 2013

I

Mississippi Business Journal

I

5

ENERGY

Fitch takes no action after Kemper plant cost, schedule changes KEMPER COUNTY — Fitch Ratings is not taking any rating actions following the latest cost revisions and schedule extension for the Kemper integrated gasification combined cycle (IGCC) project.

Last week, Mississippi Power Company (Mississippi Power) announced a revision in the scheduled in-service date for Kemper IGCC. The operational date is delayed to the fourth quarter of 2014, from May 2014, due to weather and slower than expected pace of piping installations. The delay will lead to a loss of Phase I investment tax credits of $133 million for the project. In addition, the company revised Kemper IGCC project’s cost estimates upwards for amounts subject to cost cap by $150 million and took an equivalent amount of pre-tax charge in its recently released third quarter results.

Fitch wrote: “The Kemper IGCC project has faced significant overruns relative to its original project costs estimate. The project is now expected to cost approximately $5 billion, of which $978 million is subject to exemptions and exceptions from the regulatory cost cap. Of the remaining $4.02 billion, Mississippi Power does not intend to seek rate recovery for $1.14 billion of costs incurred above the $2.88 billion cost cap and has taken an equivalent charge to income through its 2012 and year-to-date financial results. The project spend is approximately 72% complete with $3.6 billion of actual costs incurred through the end of September.

“The parent, Southern Company, is planning to inject equity into Mississippi Power to the full extent of the cost overrun so as to maintain the utility’s 50/50 capital structure, which is a key factor underpinning Fitch’s Issuer Default Rating (IDR) of ‘A-’ for Mississippi Power. Management has committed that the parent will continue to underwrite any potential cost overruns that cannot be recoverable from customers by Mississippi Power. Hence, the risk of future cost overruns insulates Mississippi Power’s credit profile to a large extent.

“The Rating Outlook for Mississippi Power is Negative, which reflects the ongoing construction and operational risks associated with the IGCC project and still elevated regulatory risk. The significant risks that still remain with project execution are associated with the gasifier start-up, which is currently targeted for mid to late second quarter of 2014. Any further delay in schedule exposes the utility to greater regulatory risk. The Mississippi Public Service Commission (PSC) has established a revised schedule for prudency hearings on project costs incurred till March 2013; the hearings are expected to be conducted in May, 2014.

Mississippi Power plans to update its seven-year plan for the revised in-service date and other income tax related items and seek approval from the PSC. All these events combined elevate the regulatory risks for the utility.

“Fitch expects the Negative Rating Outlook to persist until there is sufficient clarity regarding the final capital costs and time to completion for the Kemper project as well as successful operational performance of the plant within the parameters established by the Mississippi PSC. “Southern Company is planning to finance the approximately $1.14 billion equity infusion into

Mississippi Power largely through equity.

Management has committed to issue equity of $700 million in 2013 and $600 million in 2014.

Management has further committed to issue additional equity in 2015, if needed, to maintain consolidated equity ratio at the targeted 44% levels.

The funding of Kemper cost overruns primarily by equity is a key factor that underpins Southern

Company’s IDR at ‘A’ and Stable Rating Outlook. It is Fitch’s expectation that any future cost overruns at Kemper will be similarly largely funded through equity such that the consolidated capital structure remains within the targeted range. “

6 I Mississippi Business Journal I November 8, 2013

LAW

Shoes and the law » Firm named to Skechers Plaintiff’s Steering Committee

BY WALLY NORTHWAY I STAFF WRITER wally.northway@msbusiness.com

While the lawsuit against shoemaker Skechers USA Inc. has made headlines nationwide, what is less known is a Mississippi law firm is playing a lead role in the proceedings.

The Davis & Crump law firm of Gulfport and its attorney Trevor Rockstad has been appointed to the Plaintiff’s Steering Committee. Rockstad and the rest of the committee are charged with bringing the lawsuits to a successful end for numerous plaintiffs located in multiple jurisdictions.

Rockstad pointed out that this is not part of the previous class-action lawsuit, but rather the committee is representing individual plaintiffs.

“The Plaintiff ’s Steering Committee looks to save time and money for both sides,” Rockstad said. Rockstad added that the relationship with the Defendant’s Steering Committee is largely non-adversarial. “It’s about compromise.”

An example of this is a website established for applications and other documentation that both the plaintiffs’ and defendant’s attorneys can utilize. The website offers a convenient, time- and money-saving option to mailing multiple parties and disseminating the paperwork.

At the heart of lawsuits is Skechers’ claims that wearing its rocker-bottom shoes would help improve the wearers’ health. The company has denied any

wrongdoing, but the Federal Trade Commission ruled otherwise.

“Skechers’ unfounded claims went beyond stronger and more toned muscles. The company even made claims about weight loss and cardiovascular health,” said Rockstad David Vladeck, director of the FTC’s Bureau of Consumer Protection. “The FTC’s message, for Skechers and other national advertisers, is to shape up your substantiation or tone down your claims.”

In the class-action lawsuit, which wrapped up in May 2012, Skechers agreed to pay $40 million to settle the case.

How long Rockstad and the committee will be at its work is yet to be determined. Meeting in California, Rockstad said the work could take as long as five years to complete.

The judge-appointed position is not new for Davis & Crump. The firm has a long track record of serving on committees for complex, multi-jurisdictional cases.

Other multi-jurisdictional committee work includes cases involving Boston Scientific and hydroxycut.

For Rockstad, though, it is a milestone.

He has served on subcommittees in the past, but the Skechers case represents the first where he is serving on a full committee.

Rockstad grew up in Tupelo, and re-

FTC AND SKECHERS With the class action settlement in May 2012, the Federal Trade Commission said Skechers made several false claims in its advertising for its Shape-ups shoes.

The FTC said:

» A Shape-ups ad telling consumers to “Shape Up While You Walk,” and “Get in Shape without Setting Foot in a Gym,” and claiming that the shoes are designed to promote weight loss and tone muscles. The FTC alleges that Skechers made unsupported claims that Shape-ups would provide more weight loss, and more muscle toning and strengthening than regular fitness shoes. » A Shape-ups ad telling consumers to “Shape Up While You Walk,” and “Get in Shape without Setting Foot in a Gym,” and claiming that the shoes are designed to promote weight loss and tone muscles. The FTC alleges that Skechers made unsupported claims that Shape-ups would provide more weight loss, and more muscle toning and strengthening than regular fitness shoes. » Shape-ups ads with an endorsement from a chiropractor named Dr. Steven Gautreau, who recommended the product based on the results of an “independent” clinical study he conducted that tested the shoes’ benefits compared to those provided by regular fitness shoes. The FTC alleges that this study did not produce the results claimed in the ad, that Skechers failed to disclose that Dr. Gautreau is married to a Skechers marketing executive, and that Skechers paid Dr. Gautreau to conduct the study. » Shape-ups ads featuring celebrities including Kim Kardashian and Brooke Burke. Airing during the 2011 Super Bowl, the Kardashian ad showed her dumping her personal trainer for a pair of Shape-ups. The Burke ad told consumers that the newest way to burn calories and tone and strengthen muscles was to tie their Shape-ups shoe laces. » An ad that claims consumers who wear Resistance Runner shoes will increase “muscle activation” by up to 85 percent for posture-related muscles, 71 percent for one of the muscles in the buttocks, and 68 percent for calf muscles, compared to wearing regular running shoes. The FTC alleges that in citing the study that claimed to back this up, Skechers cherry-picked results and failed to substantiate its ad claims.

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ceived his undergraduate degree in political science and English from the University of Mississippi. During his tenure at the University of Mississippi, Rockstad was a student in the Sally McDonnell Barksdale Honors College and the honor fraternity Phi Kappa Phi. He went on to obtain his law degree from the University of Mississippi in 2010, graduating sixth in his class.

While attending law school, Trevor was a member of the Mississippi Law Journal, the Dean’s Leadership Council and the Environmental Law Society.

Trevor participates in several aspects of the firm’s practice, including the complex litigation practice. He has worked on several different pharmaceutical and medical device litigations, including the Chantix, Gadolinium, Yaz/Yasmin, Depuy hip implant, IVC filter and hormone replacement therapy litigations. He is licensed in California and Mississippi.

A member of the Mississippi Press Association and the Alliance of Area Business Publications www.mspress.org www.bizpubs.org

200 North Congress, Suite 400 Jackson, MS 39201-1902 Main: (601) 364-1000; Toll Free: 1-800-283-4625 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 November 1, 2013 Volume 35, Number 44

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 November 8, 2013 • www.msbusiness.com • Page 7

OTHER VIEWS

TRYING TO MOVE FORWARD

T

hough the details have yet to be worked out, we trust Sun Herald reporters will soon be able to examine records seized in January by the State Auditor’s Office from the Mississippi Department of Marine Resources.

Last week, Chancery Judge Jennifer Schloegel ruled DMR records belong to the public and must be provided to the Sun Herald for inspection.

The auditor’s office had argued the records became exempt from the state Public Records Act after the agency seized them for

an ongoing criminal investigation involving the DMR. The DMR said it was unable to give the Sun Herald the records because the auditor’s office had them.

The Sun Herald sued both. ...

Using language similar or almost identical to the wording in the newspaper’s written records request, the state auditor’s office in early January subpoenaed the records and took them. Schloegel said she considered the timing and similar language in the subpoena when making her ruling.

After Schloegel’s ruling, State Auditor

Stacy Pickering said: “The court has spoken and we will move forward. We are committed to protecting the taxpayers of Mississippi and we will continue to do that as the investigation at the Department of Marine Resources is brought to a conclusion.”

We join Pickering in wanting to move forward. And we hope the point we’re moving toward is a satisfactory conclusion to the investigations of the DMR that began more than a year ago.

— The (Biloxi) Sun Herald

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

» RICKY NOBILE

» FROM THE GROUND UP

Contacts: They are everywhere you turn

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Entire contents copyrighted © 2013 by Journal Inc. All rights reserved.

usinesses enter into contracts with consumers and other businesses every day. If I could wave a magic wand he would require every person to take a course in business law, especially the law as it relates to contracts.

Every year there are thousands of cases filed in local courts, federal courts and through arbitration and mediation services. An extraordinary number relate to contracts.

Many could have been avoided if only the parties understood the agreements that they were entering into and how to resolve disputes regarding the contracts.

It is tempting to say that before entering into any contract one should seek legal advice. While that may be good advice it is radically impractical for the normal Phil Hardwick person in everyday life. We go though every day entering into and completing contracts. For example, this morning I had not been awake more than 15 minutes today before I had been involved in at least five contracts. The first was with the alarm clock on my iPhone, the second was with my cable company, the third was with a cereal company, the fourth was with a newspaper and the fifth was with a utility company. In each case, a company offered a product or service and I accepted the offer.

So, what exactly is a contract anyway?

In general, a contract is classified as unilateral or bilateral. In a unilateral contract one party is making an offer. For example, my local grocery store is offering a pint of blueberries for $3.99 plus tax. I can choose to accept that offer by going to the store and buying those blueberries or reject that offer by doing nothing. A bi-

» HOW TO WRITE Letters to the editor are one of the most widely read features of the Mississippi Business Journal, and they give everyone a chance to voice their opinions about current affairs. We’re interested in what you think and we welcome Letters to the Editor for publication. Here are the guidelines: >> Letters should not exceed 300 words in length as a general rule. >> All letters must bear the writer’s address and telephone number. Street addresses and telephone numbers will not be published, but may be used for verification purposes. Letters may not appear without the author’s name. >> Form letters, thank you letters and letters to third parties generally are not acceptable. >> Letters must be typed or e-mailed. >> Letters must conform to good taste, not be libelous and not involve personal attacks on other persons.

>> All letters are subject to editing, and become the property of the Mississippi Business Journal. >> Letters can be sent to The Editor, The Mississippi Business Journal, 200 North Congress, Suite 400, Jackson, MS 39201, delivered to the newspaper during regular business hours or e-mailed to editor@msbusiness.com. They may also be faxed to Ross Reily at (601)-364-1007.

» 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.

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

See HARDWICK, Page 8

8 I Mississippi Business Journal I November 8, 2013

PERSPECTIVE

»COFFEE WITH BILL

» MBJ COMMENTS ONLINE

Touted colleges getting shortchanged

Solar energy could power more than Kemper at its cost of $5 billion

M

ississippi Speaker of the House Philip Gunn is one of the few Speakers to get out and about to talk with and listen to voters. Last week he showed up in Scooba to keynote East Mississippi Community College’s annual Business and Industry Appreciation Day. The Speaker said he didn’t know much about community colleges when he was first elected to the House 10 years ago.

But since then, he said, he has visited colleges, participated in industry recruitment, and observed the crucial roles community colleges play.

Noting that while 20 percent of jobs in America require university degrees, 60 percent require skills taught by community colleges, the Speaker said, “And Mississippi has one of the best, if not the best, community college systems in America.”

He touted the key role community colleges play in providing Mississippi an educated workforce, emphasizing “that’s the first thing industry asks about.” And he touted EMCC’s success in building a workforce training program that attracts industry, telling WTOK-TV, “This college has done a great job. They're producing top quality graduates. We see that in the number of businesses that are coming to this region.”

What the Speaker didn’t tout, or mention, was how the Legislature shortchanges community colleges when it comes to education funding.

For fiscal year 2014, the Legislature appropriated $2,062.5 million in state funds for support of public schools, $384.6 million in support for universities, and $240.1 million in support for community colleges.

While public schools serve 492,847 students, universities and

HARDWICK

Continued from Page 7

lateral contract is one in which both parties to the contract agree to do something. For example, a typical real estate contract is one in which the seller agrees to sell and the buyer agrees to buy for certain agreed upon conditions.

For there to be a valid contract it must contain certain elements. These are (1) an agreement (2) between competent parties (3) made for a legal purpose (4) supported by consideration. Some contracts must also be in writing to be enforceable. Each of these elements have been the subject of thousands of cases of litigation.

It would seem that both parties would understand what they were agreeing to. Unfortunately, that is not always the case. For example, if I agreed to sell you my car in “as is” condition did that mean that it would be in operating condition?

What if I agreed to sell you the land that I own that “was formerly owned by my grandfather?” What if I agreed to sell financial consulting services that would make you rich?

What is the definition of “rich” anyway? Obviously, agreements can sometimes be vague and disputable.

The subject of whether one or both of the parties was competent at the time the contract was entered into is one that is getting more attention. As the so-called Baby Boomer Generation enters the autumn years of their lives more of its members will be dealing with issues of intent about their wills, trusts, estates, etc. Already, courts are seeing an increase in cases involving competency of older persons.

Valid contracts can be made only for legal purposes. If one party sells another party a bad batch of illegal drugs the buyer

community colleges serve about the same number of students – 80,532 for universities and 77,661 for community colleges.

Bill Crawford Dividing state funding support by the number of students served yields these figures: $4,185 per student for public schools, $4,776 per student for universities, but just $3,092 per student for community colleges.

Why such a gap?

The Legislature also issues bonds for the benefit of universities and community colleges. For this fiscal year, the Legislature provided $96.5 million for all eight universities, but only $25 million for all 15 community colleges.

Why this discrepancy?

The Legislature also sets the rules for what cities and counties can do to support public education.

For public schools, cities and counties must levy a minimum of 28 mills in ad valorem taxes. Additionally, local school boards may dictate that cities and counties levy additional mills up to a cap of 55 mills.

For community colleges, counties must levy only two mills in ad valorem taxes (one for operations and one for capital improvements). Community college boards may ask for additional mills, but counties don’t have to provide it. Also, total local mills for community colleges are capped at six mills and few counties provide all six.

Why so little required for community college support?

Hmmm.

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

RE: “Kemper Power Plant” (Nov. 1) ... Finally, the answer to the billion dollar question is near at hand, The question — What does it cost to build a plant capable of producing “clean coal?” The answer appears to be somewhere around $5 billion.

Unfortunately my calculator cannot handle such a large number, but I think $5 billion is equal to $5,000 million.

Out of curiosity, I ran the numbers for what a $5 billion investment in a solar project would look like.

Here is what I came up with — For $5 billion we could install 15 gigawatts of solar capable of producing roughly 60 gigawatt hours of solar energy each day which in turn could power approximately 150,000 homes indefinitely.

If anyone is interested in reviewing my calculations, which have been done on scrap-paper with a pencil and certainly subject to error, I will be pleased to supply the assumptions I used for these calculations.

I’m vested in a solar business, have used solar since the 1980’s and will be the 1st to admit that solar alone is not going to be the solution to all our energy needs. I personally would not advise Mississippi Power or any other utility to invest $5 Billion in solar, but I will suggest that we should be looking for diversified energy solutions.

Unlike coal & fossil fuels fuels, the energy we use from the sun each day does not deplete availability for tomorrow.

Will Hegman Founder, Mississippi Solar

Every legal expert I have talked to has pointed out that the most important clause in a contract is the remedies for its breach. In other words, what happens when one of the parties does not abide by the contract? may not use the courts to enforce the agreement. Likewise, someone contracting a “hitman” to kill another person cannot enforce the contract if the act did not get carried out.

Consideration is another element that must be present for there to be a valid contract. Most people think of money when it comes to consideration. And while that is certainly consideration, things such as services performed or exchange of goods can be deemed consideration as well.

Every legal expert I have talked to has pointed out that the most important clause in a contract is the remedies for its breach. In other words, what happens when one of the parties does not abide by the contract?

In today’s Internet and digital world there is a form of contract known as an End User License Agreement (EULA). These are those agreements that users of computer programs, applications and various software pop up before downloading. Most users probably never take the time to read what they are agreeing to. I suspect that it is because the agreements tend to be lengthy and that the user

believes the benefits outweigh the risk of such agreements.

Also, many of these agreements contain a clause such as: “(The provider) reserves the right to update and change, from time to time, this Software License and all documents incorporated by reference. (The provider) … may change this Software License by posting a new version without notice to you. Use of the … Software after such change constitutes acceptance of such changes.”

Is there really a contract if one of the parties agrees that the other party can change the agreement without notice?

Finally, in this column I'm not offering legal advice. It is my intent to show the importance and use of contracts in daily life. And even though it is not practical to call an attorney every time a person or business enters into a contract, it is important to know that for certain contracts an attorney should always be contacted. Common sense is a good guide.

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

November 8, 2013

INTERNET AND TECHNOLOGY

C Spire announces announces nine city ďŹ nalists for new service

By FRANK BROWN I STAFF WRITER frank.brown@msbusiness.com

RIDGELAND — Nine Mississippi cities have been selected finalists in C Spire’s “Get Fiber First Challenge,� a project to provide homes with Internet and digital television connections that are 100 times faster than the national average.

During Monday’s announcement at the C Spire headquarters in Ridgeland, officials explained the next step for the finalists, and unveiled the pricing for the service, which will move data at one-gigabit-persecond along a fiber optic network.

Batesville, Clinton, Corinth, Hattiesburg, Horn Lake, McComb, Quitman, Ridgeland and Starkville were selected from 33 cities and towns who submitted applications last month to be the first to obtain the fiber optic technology for their town.

C Spire initially planned to have a smaller list of finalists, but company officials said they increased the number to nine because of the strength, quality and comprehensive nature of submissions. “We are truly impressed with the overwhelming show of support for C Spire’s Fiber to the Home deployment and the tremendous interest and demand for making this service a reality for the residents in these communities,� said Hu Meena, president and CEO of C Spire. “The positive response we’ve received only strengthens our determination to bring 100-timesfaster Internet, and the limitless possibilities that come along with it, to as many people as we can because we know that this service has the power to transform our state into a hub for technology investment and economic growth.�

Instead of having one city be the first to obtain the technology, the next phase of the project could take the finished product to parts of several cities simultaneously.

The next step begins with officials and community leaders rallying their respective communities to quickly pre-register homeowners in designated neighborhoods at percentage levels that will qualify them to be first for service.

When a critical number of neighborhoods reach their percentage goals in an individual city, C Spire plans to begin construction in those areas, said Gregg Logan, senior vice president of C Spire Fiber.

Logan said pre-registration will begin soon after C Spire launches an updated Fiber to the Home website – www.cspire.com/fiberhome – that will show neighborhoods in each community

and the percentage of residents needed to reach their goals.

Residents will need to make a $10 refundable deposit and provide credit card information when they pre-register. Logan said C Spire hopes to start turning up 1 Gig service in the first C Spire Fiber neighborhoods by the middle of next year.

C Spire also announced pricing for its ultra-fast Internet and related digital television and home phone services.

The 1 Gbps Internet access will be available for $80 a month, $100 a month for combined Internet and home phone, $140 a month for Internet and digital TV, and $160 a month for the entire package. C Spire Wireless customers will receive an additional $10 monthly discount on all packages.

The television package will be much like other cable and satellite services. The pricing is for the basic package, but may include HD and DVR in the basic price, said Jared Baumann, C Spire Brand Product manager. “In a few weeks, we’ll have more information about the exact channel counts,� he said after Monday’s announcement. “We’ve actually done television for a number of years.

Telapex, our parent company, has been in the TV business for probably about 30 years. We already have the infrastructure in place, and we’ll be pulling off that infrastructure.�

Gov. Phil Bryant, attended the news conference along with representatives from the Fiber to the Home (FTTH) Council Americas. Bryant issued a proclamation declaring Nov. 4 “Get Fiber First� and “Gimme Fiber� day in Mississippi. “Recently, I proclaimed November as Innovation Month, and I can’t think of any better example than C Spire, which is helping ensure Mississippi is a leader in technology,� Bryant said. “C Spire’s commitment in bringing fiber technology to communities across the state will help us compete in a global market.�

A C Spire review panel selected the finalists, using factors like proximity to the company’s fiber optic infrastructure, community mobilization capabilities and incentives to speed up the construction process and reduce overall costs. Ridgeland-based accounting firm HORNE LLP monitored and tabulated results in the application review process.

Meena said C Spire plans to continue working with the cities that were not selected in the preliminary. “We want to ensure that all of our communities remain actively engaged in the process and keep the demand and excitement alive for upcoming phases,� he said.

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STARKEVILLE’S WISEMAN FINDS WAY TO TAKE HIS CITY FORWARD WITH NEW HIGH-SPEED INTERNET FIBER

By FRANK BROWN I STAFF WRITER frank.brown@msbusiness.com

that’s done this, something special has happened. All of a sudden, doors that you didn’t know existed get unlocked.

Kansas City, Austin and Provo are doing it with help But he had no idea how to get from Google. there quickly. He admits he Chattanooga and Lafayette, La., did it themselves.

Starkville Mayor Parker Wiseman wanted it — he just probably would have considered the Chattanooga model, but that didn’t know how to get it.

Then came Sept. 24, and without warning, Wiseman might have taken years. “The reason Chattanooga took it on Wiseman saw a path to bring ďŹ ber-optic high-speed Internet, when they did was because phone and television to homes in Mississippi. Now, nobody in the private market was willing to take it on.â€? about six weeks later, Starkville and eight other Then came C Spire’s announcement.

Mississippi cities are in line to become the ďŹ rst in the “That’s when we said: ‘This is it.’ We’ve got to ďŹ nd a state to receive home internet at speeds of up to 1 way to be part of this.â€? gigabit per second as part of C Spire’s Fiber to the So why let an outside company build his network Home project, which hopes to have the high-speed Internet, phone and digital television operating in some instead of sticking with the Chattanooga plan? “There are intense capital costs associated with areas in 2014. “My ďŹ rst thought as a mayor was that there’s no way building an infrastructure up front, and that’s the risk that C Spire is taking on with this program,â€? Wiseman we’re going to miss this opportunity,â€? Wiseman said said. “I have no doubt they’re going to be successful, Monday after his city was announced as a ďŹ nalist. but it needs to be noted, they are taking a bold “Then I had another thought — that I felt a great business risk.â€? amount of pride as a Mississippian. There hasn’t been With risks come negotiations, and C Spire has asked an entity — public or private — that is taking on a cities to make concessions to expedite the process. whole state like C Spire.â€?

One of those concessions may be a 25-year franchising Joining Starkville are ďŹ nalists Batesville, Clinton, agreement, the maximum length allowed by state law.

Corinth, Hattiesburg, Horn Lake, McComb, Quitman “It’s impossible to know where technology will be in and Ridgeland. City representatives submitted proposals by Oct. 20, hoping to be one of the ďŹ nal two 25 years, but franchise agreements with cable companies and telecommunication companies tend to or three ďŹ nal cities. Instead, C Spire expanded the list. endure changes in technologies,â€? said Wiseman.

The next step is for cities to gain enough subscription “Whatever the changes in technology are, it’s a fair bet commitments in neighborhood groups — or C Spire will still be there and have a relationship with “Fiberhoods� — to get C Spire’s blessings. the city.�

But Wiseman was well aware the impact the ďŹ ber The project also leaves much of the campaigning up optic speeds could have on a residential community. to the cities, with the reward being the prize.

This year, he had twice been to Chattanooga, which “C Spire produced the most innovative marketing built a ďŹ ber optic utility network, they opened it up to program I’ve ever seen, and my hat’s off to them for residential internet and television. that,â€? said Quitman mayor Eddie Fulton. “I’ve been in “Chattanooga was in driving distance, and as a marketing 30 years, and I’ve never seen anything like it. mayor, I’d be doing a disservice to my city if I saw the It was impressive.â€? brink of a technological revolution coming and I didn’t Fulton was afraid his chances would be hurt because seek a way to get us there,â€? said Wiseman. “We were astounded by what we learned, and how his town has only about 2,300 residents. “I wondered if C Spire would look at what we are — it’s changed that community,â€? said Wiseman. “When not the size of our town, but the size of the hearts of you go from 10 megabytes per second service to one gigabit per second, it’s not like you’re just speeding it up the people there and their interest in C Spire’s technology.â€? — it’s like a different service. “I think I’d be short-selling it by simply describing it as an improvement in quality of life. In almost every city See MAYORS, Page 11

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10 I Mississippi Business Journal I November 8, 2013 RETAIL

Outlets of Mississippi mark Jackson’s arrival as ‘fashion-forward’ market

By TED CARTER I STAFF WRITER ted.carter@msbusiness.com

No longer just a place to stop for a break in the monotony of interstate travel, outlet discount centers are shape shifting into destinations onto themselves.

Witness the downtown Jackson Marriott’s offering of a travel package for two days of the grand opening of the Outlets of Mississippi Nov. 15-16 a few miles away in Pearl. “Join in the enthusiasm of the occasion,” Marriott suggests in promotions for the weekend package.

Such a promotion would have drawn surprise as recently as a few years ago. But the 80-store Outlets of Mississippi complex that opens next week near the interchange of interstates 20 and 55 is not your mother’s outlet center, though she is indeed in the demographic developer Spectrum Capital is targeting with its array of designer and brand name shops.

“Our goal was to create a statewide destination,” said Karen Fluharty, a partner

with New Jersey-based Strategy + Style Marketing who has been involved in the Pearl complex since its inception.

At 325,000 square feet, the Outlets of Mississippi is big for a retail outlet center, and will open as the largest of its kind in Mississippi. The complex is fully leased and is expecting an onslaught of shoppers for its grand opening Thursday, Nov. 14, and in the days that follow.

Fluharty said the crowds will be a mix of Mississippians from within a 75-mile radius and interstate travelers whom Spectrum, a developer of such resorts as Turquoise Place in Orange Beach, Ala., expects will stop for more than just a look-see.

“We know how lucrative the visitor market can be,” Fluharty said, noting Spectrum’s experience as both a retail and hospitality developer.

“When you are traveling you feel like you have more time to relax.”

Demographics and shopping patterns and preferences of metro Jackson underwent close examination before the pri-

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RETAILERS INCLUDE: Ann Taylor Factory Store Banana Republic Factory Store Chico's Outlet Cole Haan Corningware Corelle & More Direct Tools Factory Outlet Fossil Gap Outlet J. Crew Factory LOFT Outlet Michael Kors Motherhood® Maternity Nike Factory Store Nine West Outlet OshKosh B'Gosh Reebok Saks Fifth Avenue OFF 5TH Skechers Toys "R" Us Under Armour® FOR FULL LIST OF OUTLETS OF MISSISSIPPI STORES GO TO: www.msbusiness.com vately held Spectrum and the major retail tenants decided to move forward on the center, according to Fluharty.

Representatives of such brands as Ann Factor Store, Chico’s Outlet, J. Crew Factory, Levi’s, Nike, Saks Off-Fifth, Loft Outlet, Under Armor and White House/Black Market came to Jackson two years ago to survey the metro area’s market potential.

“They wanted to understand the geography and understand the market from a competitive standpoint,” Fluharty said.

The developer and retailers saw a need, Fluharty said, to serve a female demographic from ages 25 to 54 that possessed a sense of sophistication and fashion. The “psycho-graphic” they successfully searched for, she added, “was for fashionable women who are seeking brands… but she is also value conscious.”

Not all retailers saw the same potential in metro Jackson, Fluharty said. “There are a couple of brands that shall remain nameless. They looked at the market and for whatever reason decided to pass.”

She stressed that while women are the

prime target, men will find plenty to like – and buy – at the center. The male shopper and his spending power, she said, was an essential part of the marketing analysis.

Retail Evolution Retail development nationwide has moved away from the mammoth enclosed malls to so-called “life-style centers,” a concept that fits well within the outlet category, Fluharty noted.

“The outlet industry is truly the group that is growing fastest,” she said. “Much of that is driven by the consumers’ desire for brands and savings.”

You’ve got to bring the branded component to the consumer who is brand-centric, Fluharty added. “The outlet category brings then those brands at 25 percent to 65 percent off ” compared to prices at the brands’ home stores.

Merchandise is not the irregulars and clearance cast offs that populated outlet centers in their previous incarnation.

Today’s brand items displayed at outlet shops are “manufacturer-direct” or have been moved from home stores, she said.

As with all real estate, location is key as well, Fluharty said. “What makes the business model work is that by and large we are not located in a downtown. We have lower real estate costs and because we are not enclosed we have lower operating costs.”

Longtime Jackson commercial real estate broker Scott Overby, principal of the Overby Company, said he thinks Spectrum Capital made a savvy selection with the crossroads site. “It was a smart move,” he said, and noted the developer helped its cause by moving aggressively to secure sales tax refunds from the Mississippi Development Authority.

“I think the shops will do well there,” he said. “There is strong growth in Rankin and Madison counties.”

He said he also thinks the arrival of the quality brand shops reflects a maturing of Jackson’s retail market. “We have enough people. Our disposable income is good. We like to spend money,” added Overby, whose firm is reviving the ailing Metrocenter Mall in southwest Jackson as a prelude to selling it.

The arrival of the Outlets of Mississippi is a natural progression of a retail category that has seized opportunities in larger markets and is now focusing on more mediumsize ones such as metro Jackson, he said.

“Size-wise this is a large center,” Overby said, adding he will be interested to see how parking capacity holds up in the early days.

What he especially likes about the development, he said, is that it refrained from duplicating stores already here. “They are not just relocating existing tenants. That is a ‘win.’”

Success for the outlet center could help to prove metro Jackson’s potential “as a fashion forward” market to other retailers, Overby predicted.

“It could be a lot like Nissan when they came. They were successful in what they did and then we had Toyota come in.”

November 8, 2013

REFUSAL

Continued from Page 4

complement of benefits they have earned through their service and sacrifice,” the National Guard Bureau statement said. “Nothing less is acceptable. We expect that these eight states will follow the lead of the 46 other states, territories and D.C. and comply with DoD guidance.”

Guard Bureau spokeswoman Rose Richeson acknowledged the Bureau can’t issue direct orders to the National Guard commanders. “We’re here to communicate policy,” she said.

Where the Department of Defense does have leverage is in recommending which installations should be maintained or closed in any new round of base realignments and closings. How well a state partners with the DoD is a key criteria in the selection process.

States with a significant military presence such as Mississippi are bracing for the likelihood of a new round of military installation shutdowns through a Base Realignment & Closure Commission.

Though neither the president nor Congress has fully decided on when the next round of closings will occur, officials in Washington and Mississippi expect a new BRACC in the next couple of years as the nation trims expenditures.

The question for Mississippi and the seven other states is whether they are willing to maintain their stands on same-sex marriage benefits at the risk of receiving a lower BRACC rating in the all-important “compatibility” with military policy category.

Mississippi recognized the stakes in the last legislative session when it included $2 million in the 2013 bond issue to ready Mississippi’s military communities for the likelihood of a BRACC return in 2015.

MAYORS

Continued from Page 9

Meanwhile, Hattiesburg mayor Johnny DuPree developed a marketing strategy of his own.

“We changed it from Fiber to the Home, to Fiber to Every Home,” he said, because he thinks this is something that will change everyone’s life.

“I want to thank C Spire for its forward thinking, because it’s going to change how we’re looked at in Mississippi — because we’re on the cutting edge of being the best state in the nation.”

Tommy Irwin, mayor of Corinth said: “This is just another piece in the growth puzzle of Corinth. This is a major piece.”

And Ridgeland Mayor Gene McGee said his town has already started a campaign to encourage residents to sign-up. “Our residents are already engaged and excited about it.”

Perhaps Eddie Fulton, mayor of the town of Quitman and its 2,300 residents, said it best.

“Most beautiful aspect of this entire project is that a Mississippi company is taking care of Mississippi cities. That means a lot to all of us.”

Under BRACC, a panel appointed by the president and approved by Congress selects bases for closing and submits a list to Congress for an up-or-down vote. No changes can be made to the list after submission.

The DoD recommends installations for realignment or closure to the BRACC panel.

The state’s $2-million allocation is likely to be only a down payment as the intentions of the president, Congress and the Pentagon become clearer.

The state spent a reported $60 million to $65 million in the 2005 round of base closings, an effort that helped to save such Mississippi military mainstays as Keesler Air Force Base, Naval Air Station Meridian,

Camp Shelby and Columbus Air Force Base. The state, however, lost a Navy installation in Pascagoula and Air National Guard Air Wing in Meridian.

Even without a formally appointed BRACC panel, key members of Congress from both parties have acknowledged that significant cuts in defense spending, especially in the military’s domestic infrastructure, are ahead.

Manning McPhillips, chief administrative officer of the Mississippi Development Authority, is coordinating the state’s military current installation defense efforts. In an interview earlier this year, he said the state’s main focus will be to enhance the mission

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of the bases.

In preparation for BRACC, each part of the state that is home to a military installation has a military communities council. Each council sends a representative to a state council chaired by retired Army National Guard Maj. Gen. William “Bill’ Freeman Jr., a Newton County banking executive.

Curt Goldacker, a retired Navy captain and member of the Meridian’s military communities council, said he is certain the state’s refusal to issue the ID cards will not diminish the BRACC survival chances of either Naval Air Station Meridian or the 186th Mississippi Air National Guard Refueling Wing based at Key Field in Meridian.

12 I Mississippi Business Journal I November 8, 2013 INSURANCE

AMMO

Chaney: New flood insurance rates lack adequate data » Insurance commissioner says he wants

rates that are ‘actuarially sound,’ not sweeping increases aimed at erasing FEMA’s red ink

BY TED CARTER I STAFF WRITER ted.carter@msbusiness.com

Hurricane Katrina could continue exacting a price on Mississippi’s gulf coast residents and businesses for generations to come through exorbitant flood insurance premiums, Mississippi Insurance Commissioner Mike Chaney says in explaining his bid to head off such an outcome by suing the federal government in the U.S. District Court for the Southern District of Mississippi.

The new rate structure contained in the Biggert-Waters Flood Insurance Reform Act of 2012 is designed to eventually eliminate federal subsidies and to pay down a deficit some media report to be $24 billion but Chaney puts at $28 billion.

The new rates kicked in on July 1 and will continue to reach increasing numbers of flood-zone property owners in the months and years ahead.

The deficit “was accumulated during Katrina,” Chaney said, when the Corps of Engineers used flood insurance money to cover losses caused by levee breaks.

“They need to wipe out the debt in a logical way,” he said of Congress, starting with getting control of administrative costs the insurance commissioner claimed eats up 40 percent of premium payments.

What isn’t used on administrative costs is swept out of the fund annually to pay off earlier losses instead of building up a reserve, according to Chaney.

He acknowledged fiscal stability must be restored and the program rescued from the series of starts and stops Congress has put it through in recent years. But not through increases of over 3,000 percent in some instances, Chaney said, calling for Congress to revise Biggert-Waters to assess rates that are “actuarially sound” and not sweeping increases that can erase all the red ink in just five years.

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“Today, many consumers face loss of their property due to the increases,” he said.

Specially, according to the 115-page suit, many property owners are unable to cover their premium renewals while others must purchase flood insurance for the first time as new mapping expands flood zones to their locations.

Those who want to be done with all the flood insurance headaches have found themselves unable to sell their property, the suit says.

Current and Future Rate Happenings » Flood zone homes a half-century old or more as of Oct. 1 received a rate hike of 25 percent that applies to homes built before the federal government drew the first flood maps in 1974. The 25 percent yearly increases are to continue until the Federal Emergency Management Agency decides rate levels reflect actual risk, a benchmark the agency terms “actuarially sound.” » Jan. 1, premiums on vacation homes and rental properties within the zones are scheduled to go up 25 percent annually and continue yearly until actuarial soundness is reached. » In the not-too-distant future, all coastal Mississippi homeowners within a flood zone will lose their “grandfather” status, which brings an accompanying loss of the federal subsidy and the likelihood that what now costs around $425 a year will go to $7,000 or higher. When that occurs hinges on the next FEMA flood remapping on the coast, the last of which occurred in 2009-2010.

In the suit filed by attorneys for the Department of Insurance rather than the Mississippi Attorney General’s Office, Chaney argues that the Federal Emergency Management Association – caretaker of the flood insurance program – has failed to deliver on a series of key studies and reports mandated by Biggert-Waters.

“Without this crucial information, FEMA plainly lacked and continues to lack the necessary information to avoid arbitrary and capricious decision making,” the suit says.

The suit notes that FEMA administrator Craig Fugate conceded to the Senate Banking, Housing and Urban Affairs Committee in September that Biggert-Waters “raises affordability issues,” but claimed Congress had tied his hands.

“I need your help,” he told the panel. “Without additional legislative report I cannot address it.”

Fugate further conceded, according to the suit, that an affordability study due to Congress in earlier summer 2013 will likely take another two years to finish “due to the need to obtain data on policyholders and their incomes.”

Another Katrina consequence: Mississippi and Louisiana are the first states to include the post Katrina statistics in their flood rating methodology, the suit says FEMA has conceded.

“This means that Mississippi’s citizens will be among the first in the nation to have these drastic rate increases imposed, and that Mississippi citizens will pay the, for many years before citizens of other states are required to do likewise.”

The coastal states of Louisiana, South Carolina and Florida have joined the suit as friends of the court, Chaney said.

Meanwhile, as Chaney awaits the outcome of the suit, he said he and insurance commissioners from other states are exploring the possibility of persuading private insurers to write flood coverage. “We’re looking at it on a national level,” he said.

“What we’re wanting Washington to do is accept private flood insurance for federally backed mortgages. We’re trying to recruit private insurers to come in and write insurance at a lower cost than the federal insurance.

“We think we’ll be successful.”

Continued from Page 1

building where the ammunition will be manufactured and stored. “It will start out fairly small,” Bishop said, and grow as production increases.

Machines will do everything involved in the ammunition loading. The operation will have eight to 10 employees working a single 8-hour shift when production begins in January. “It will take us a little while to grow into full capacity we want to be. We expect it will be fairly fast paced growth,” Bishop said.

Scherlofsky said the Finish brand Lapua, manufactured in Finland and Germany, will be their flagship brand.

“There is no other foreign ammunition brand that holds more important accuracy world records for rifle shooting than Lapua,” he said. “We will also set up a flagship store in Gulfport, especially for Lapua. There is no other brand that fits better to our positioning as a hub for elite European ammo than Lapua.”

Bishop said four components are used to make a round of ammunition. They include brass casings, powder and the bullet itself, which is a lead projectile. The fourth is the primer on the back end of the casing which the gun hammer strikes to ignite the powder.

The TLMCE has already received the Federal firearms license for firearms and ammo importers. A manufacturing license is in the works. The facility will start out loading 9mm rounds for pistols.

Scherlofsky said the 9mm is the most common pistol caliber in the world, favored in Europe but only recently getting more popular in the U.S. “That’s going to be our primary focus initially,” said Bishop. “That seems to be the round of ammunition that is most difficult getting a decent supply of.”

Scherlofsky said the shortage makes it difficult for smaller police departments to get ammunition supplies. “They have to wait up to six months to get ammunition,” he said. “It becomes critical for training.”

Olivier went to a gun show in New Orleans recently and was approached by a representative of the Louisiana prison system about the ammunition’s availability. That’s a market he hadn’t considered until then.

Scherlofsky’s connection with the Mississippi Coast is through his wife, Dr. Kimberly Cox Scherlofsky, who is from Ocean Springs. They met while she was in Austria working on a doctorate.

He wanted to get into the ammunition business and asked Gulfport Mayor Billy Hewes if he knew anyone who could help him with the manufacturing process. Scherlofsky said Hewes then introduced him to Bishop.

The National Shooting Sports Foundation’s Firearms and Ammunition industry report for 2012 called industry growth in the last two years “unprecedented” and estimated economic impact from sporting arms and ammunition to be $14 billion.

In an online letter to its customers in April, Federal Premium Ammunition said, “The unprecedented demand for commercial ammunition has exceeded the industry ability to service the marketplace in the near term and has resulted in industry wide shortages at most retail outlets.”

Bishop blames hoarding for some shortages.

“People who never have bought 20 boxes in their life are buying 100 rounds of ammunition. Everybody is afraid the government is going to do something.”

November 8, 2013

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CONSTRUCTION

NOT FEELING HAMMERED » Contractors report growing optimism

BY WALLY NORTHWAY I STAFF WRITER wally.northway@msbusiness.com

There are finally some hard signs that the nonresidential construction industry is coming out of the largest decline in decades, though the impact of the recent federal shutdown and a dwindling pool of available construction workers could curb some of that optimism.

The latest Associated Builders and Contractors’ Construction Confidence Index (CCI) finds optimism was up among contractors nationwide during the first half of 2013.

“As the economic recovery enters its fifth year, nonresidential construction prospects continue to brighten,” said ABC chief economist Anirban Basu. “A variety of industries ranging from professional and health services to leisure and retail continue to add jobs, and vacancy rates in many product categories throughout the country are falling, creating new opportunities for developers and their contractors.”

The CCI reflects three aspects of the U.S. nonresidential construction industry: sales prospects, profit margins and staffing levels. CCI

readings above 50 indicate growth, while readings below 50 are unfavorable. For the first half of this year, CCI indices for the first half of 2013 compared to the second half of 2012 were: » Sales expectations rose from 62.3 to 63 » Profit margin expectations slipped from 55.9 to 55.3 » Staffing level expectations rose from 59.6 to 60.

“Several events have impacted the gradual increase in confidence this year, including Detroit’s bankruptcy, rising interest rates, the nation moving closer to another debt ceiling debacle and softening in the housing market.” Basu said. “However, certain aspects of the economic environment have improved, including the availability of capital and the steady healing of state and local government budgets.

“Overall, contractors are saying positive factors will outweigh negative ones, helping create an improved construction spending environment in 2014.”

Optimism is also up when looking at how busy contractors are today. The ABC’s Construction Backlog Indicator (CBI) rose 3.9 percent during the second quarter of 2013 and now stands at 8.2 months, up from 7.9 months the previous quarter.

Construction backlog is up 6.6 percent compared to the same time last year. CBI reflects the amount of commercial and industrial construction work under contract, but not yet completed.

This increased backlog was seen in the South as well as the Northeast and West. However, the South’s backlog growth rate is rather tepid, raising more questions.

“Perhaps the biggest surprise in the data is that backlog in the South has not increased more aggressively,” said Basu. “Most macroeconomic data indicate the South and the West are the fastest expanding regions of the United States, which would seem to suggest a higher backlog.

Perhaps the best news is contractors are hiring and construction spending is up. Construction employment rose by 20,000 in September and the industry’s unemployment rate fell to a six-year low of 8.5 percent, while construction spending increased for the fifth consecutive month in August, according to an analysis of new government data by the Associated General Contractors of America (AGC).

Still, AGC officials say the impact of the federal shutdown that ended last month is yet to be determined.

Association officials cautioned that the data does not address any potential impacts from the recent

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Ken Simonson, the AGC’s chief economist said “the shutdown likely disrupted a wide variety of projects and may have caused private investors and developers to delay decisions about new projects or plant expansions. As a result, future spending and hiring gains may be weaker.”

Construction employment totaled 5.826 million in September, a gain of 20,000 from the August tally, which was revised up by 8,000 from the Labor Department’s initial estimate. The September figure is 3.4 percent higher than in September 2012, while aggregate weekly hours of all construction employees rose 4.2 percent over the year, indicating that companies are adding to existing workers’ hours in addition to hiring new employees.

Employment climbed for the month and year in both residential and nonresidential construction.

However, even here some caution is advised. With hiring up, firms might find it harder and harder to find construction workers who need a job.

Total construction spending, as reported by the Census Bureau, climbed 0.6 percent in August from an upwardly revised July figure and 7.1 percent from August 2012. Private residential spending led the way with a 1.2 percent increase for the month and a 19 percent jump year-over-year. Private nonresidential spending eked out a 0.1 percent gain in August and a 4.3 percent rise over 12 months. Public spending rose 0.4 percent for the month but shrank 1.8 percent from a year earlier.

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AN MBJ FOCUS:

REAL ESTATE INDUSTRIAL PARKS

Empty lots or opportunity waiting? Âť Competitive communities have sites prepared and waiting for when business calls

By BECKY GILLETTE I CONTRIBUTOR mbj@msbusiness.com

It seems that nearly every town of any size in Mississippi has an industrial park, and some lay vacant for years. mainly growing weeds. There are literally thousands of acres that have been developed to attract industry. That can bring into question whether the purchase of land and installation of utilities â&#x20AC;&#x201D; both costly prospects â&#x20AC;&#x201D; are worth the risk that the taxpayer will not get a return on the investment.

Overcapacity is in the eyes of the beholder, said Max D. Hipp, president\CEO, Oxford-Lafayette County Economic Development Foundation.

â&#x20AC;&#x153;Jackson County has a diverse range of industrial parks, each with significant private investment and employment.â&#x20AC;?

George Freeland Executive director, Jackson County Economic Development Foundation

â&#x20AC;&#x153;Communities who aggressively compete for new jobs and investment make sure they are ready with available and developed industrial park properties,â&#x20AC;? Hipp said. â&#x20AC;&#x153;Competitive communities want to have available

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fully developed properties to accommodate larger projects of 50-100 acres, as well as smaller sites of 10-30 acres.â&#x20AC;?

Hipp said from a macro view, the state could be viewed as having an excess of industrial property. But, in many cases, those properties may be in locations considered less desirable by clients. Even in those cases, he asks who is qualified to condemn a community that wishes to compete even if the odds are less than favorable?

Lafayette County industrial parks are currently about 70 percent developed. â&#x20AC;&#x153;We could use more property to compete for larger projects,â&#x20AC;? he said. â&#x20AC;&#x153;There is no doubt that the Lafayette-OxfordUniversity community has been blessed with a variety of quality economic development. The combination of the quality of place, education, culture and the arts, quality healthcare, a pro-business public and private leadership have all contributed to our successes.â&#x20AC;?

Wayne Mansfield, executive director, Warren County Port Commission and Economic Development Foundation, said most communities that desire to attract jobs have invested in development of industrial parks or sites. â&#x20AC;&#x153;These communities wish to have a diverse economy and to have the ability to attract jobs which, if successful, contributes to the overall local and state economy,â&#x20AC;?

Mansfield said. â&#x20AC;&#x153;As far as an over abundance, I donâ&#x20AC;&#x2122;t know. The competition to attract, recruit and successfully locate new industry has become much more competitive over the past ten years. With the reliance on the Internet, social media, etc, having an industrial site or park that is â&#x20AC;&#x2DC;shovel readyâ&#x20AC;&#x2122; certainly gives a community an advantage over another that is not prepared.â&#x20AC;?

Mansfield said many site selection con-

sultants and companies that wish to expand to other areas can determine most information needed from a well-organized and user friendly website and in todayâ&#x20AC;&#x2122;s fast paced economic development recruitment efforts, having every advantage possible can make the difference between locating an industry or being passed by. â&#x20AC;&#x153;Additionally, I think the nature of recruiting industry is much more specific than in years past and therefore, new companies can be more selective in their location requirements,â&#x20AC;? he said. â&#x20AC;&#x153;This is why communities select targeted industries and generally develop their sites accordingly.

For example, Community A may have advantages with rail and interstate access whereas Community B may have an advantage with river access. The two communities would then target industries that fit their advantages.â&#x20AC;?

Mansfield said having a number of welldeveloped industrial parks or sites provides the Mississippi Development Authority with more options for site selectors in order to recruit for Mississippi in general. â&#x20AC;&#x153;As far as Warren County, our location on the Mississippi River provides us with an advantage over some other areas,â&#x20AC;? he said. â&#x20AC;&#x153;Combined with our interstate access and having the only rail crossing over the Mississippi River provides additional advantages. However, our port is at capacity and we are beginning to explore options to expand our port, which could create more opportunities for successful industrial location.â&#x20AC;?

It is also important to keep in mind there are many other factors that go into successful industrial recruitment. Mansfield said the availability of labor and the trainability of the labor are two major factors in site selection, as well as competitive utility rates.

It is critical to have available space with sufficient industrial infrastructure on site in order to compete for new industrial projects, said George Freeland, executive director, Jackson County Economic Development Foundation, Inc., â&#x20AC;&#x153;Our parks are well developed for private investment and are diverse enough to See

INDUSTRIAL, Page 16

REAL ESTATE

November 8, 2013

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Mississippi Business Journal

I

15

INDUSTRIAL PARKS

‘NO SITE, NO PROJECT’ » If you don’t have a product, you aren’t going to win in the industrial park game

By BECKY GILLETTE I CONTRIBUTOR mbj@msbusiness.com

Developing industrial parks can cost a lot of money, and there are certainly never any guarantees of a return on the taxpayer’s investment. What are the pros and cons of deciding to invest in the infrastructure needed to attract industrial and business development?

There is a saying: “No site, no project.”

“Ready-to-go sites separate communities into winners and losers at the beginning of the location process,” said David Rumbarger, president, Community Development Foundation, Tupelo. “The better prepared the community and the site, the more likely a community is to make a candidate list for a prospect visit. And in the current economic development market, the site must be fully prepared.”

Many regional utilities have used versions of certified site programs to motivate and encourage communities to focus on

this aspect of community preparation.

CDF’s supplier, the Tennessee Valley Authority, was one of the first to recognize and put money into sites.

“Lee County has successfully developed five industrial parks with more than 3,000 acres of industrial land since 1948,” Rumbarger said.

“Today, there is more than 22 million square feet of industrial space with less than a six percent vacancy rate. There are 39 industries in Lee County industrial parks that employ more than 8,500 persons.”

When looking at the “pro” side of developing industrial parks, the Golden Triangle Development Link is the poster child for success in Mississippi.

“We have purchased/developed almost 6,000 acres in the last ten years,” said GTD Link CEO Joe Max Higgins, Jr. AICP, CEcD, CES. “We currently have options on another 1,000 acres that are strategically located.

We have installed more than $200 mil-

lion in infrastructure (water/sewer/rail/roads). We have secured investment of $4.5 billion and have created 5,600 jobs. In Lowndes alone we are putting almost $20 million into the school and city/county coffers annually.”

His philosophy is, if you don’t have product, you are not going to win. “But you must have resources other than the product to win, you must have an adequately funded and staffed organization and also the ability to offer a competitive incentive package in addition to what the state might offer,” Higgins said.

Angela Curry, executive director, Greenwood-Leflore Industrial Board, said it is important that parks be strategically located and geared towards the types of industry that you want to attract.

“We are very fortunate to have several industrial parks in our county,” Curry said. “The Greenwood-Leflore Industrial Park, located at the intersection of Highways 82 and 49, is our most prominent

park. It is home to major industry such as Milwaukee Electric Tool Company, HDW, Inc. and The John Richard Company, among others.”

The Airport Industrial Park markets to aviation-related companies and currently houses GE Capital Aviation Services. The Itta Bena Industrial Park located in West Leflore County is geared toward retail and service sector industry.

“This park is strategically located off of Highway 82 West, adjacent to the Leflore County Incubator and Mississippi Valley State University,” Curry said. “The Rising Sun Industrial Park located off Highway 49 South is ideal for ag related industry such as Express Grain that currently sits on about 150 acres.”

Curry said industrial parks are great assets for communities looking to recruit new business and industry, as some projects require green space for new conSee

PARKS, Page 16

REAL ESTATE

16 I Mississippi Business Journal I November 8, 2013

PARKS

Continued from Page 15

struction. Currently, the City of Greenwood and Leflore County have more than 2,000 acres available for commercial construction. Over the past 18 months they have sold acreage to APAC-MS and The Clint Williams Company, a division of Texoma Peanuts.

If a business prospect is not interested in new construction, available buildings are a great community asset and recruitment tool. Curry said while they never want to lose an industry, they have to make the best of that situation by marketing that empty space to companies looking for a home to do business.

“Greenwood-Leflore County has some great spaces available and was fortunate to fill one of those spaces with the recent announcement of Coburns Supply Company, a distribution company that will occupy 180,000 square feet of existing space in our Greenwood-Leflore Industrial Park,” Curry said.

Currently, the City of Greenwood and Leflore County have more than 2,000 acres available for commercial construction. Over the past 18 months they have sold acreage to APAC-MS and The Clint Williams Company.

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meet the needs of a wide range of potential projects, from airport and rail access to interstate highways or proximity to the deep water port,” Freeland said. “Jackson County has a diverse range of industrial parks, each with significant private investment and employment.”

Jackson County’s multi-tenant industrial parks include Sunplex Light Industrial Park, Jackson County Aviation and Technology Park, Moss Point Industrial and Technology Complex, and the Helena Industrial Park.

Sunplex currently houses about 20 light industrial, manufacturing, and distribution businesses, with about 400 total employees.

The park is two-thirds built out, with 30 acres still available for development.

The Jackson County Aviation and Technology Park surrounds Trent Lott International Airport. It is certified Project Ready by Mississippi Power and McCallum Sweeney Consulting, meaning that it contains all requisite site infrastructure and has been master planned and permitted to provide for quick development.

“The park, with its airport runway ac-

cess, is intended for aviation companies,” Freeland said.

“It currently houses Northrop Grumman Aerospace, with about 80 employees, and is actively marketed to aviation and aerospace companies for further expansion.”

The Moss Point Industrial and Technology Complex is the site of a former International Paper mill, which was environmentally remediated and purchased

by Jackson County and the Jackson County Port Authority for development.

The site is approximately 200 acres with rail and water access. It was under option for an energy project for the past few years. Freeland said the site has recently become available and is being marketed for various types of energy and manufacturing projects.

The Helena Industrial Park owned by Mississippi Export Railroad is also certified Project Ready by Mississippi Power and McCallum Sweeney Consulting.

“Helena has the benefit of rail directly through the middle of the park,” Freeland said. “More than 100 people are employed at Helena between Tindall Corporation’s pre-fab, pre-stressed concrete facility and Airgas’s facility. Helena is actively marketed for various manufacturing and energy related projects.”

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INDUSTRIAL PARKS Industrial Park

November xx, 2013

I

Mississippi Business Journal

I

17

City

Zoning

Sale Price

Lease Price

Newport Industrial Complex

Walls

Industrial-heavy

Negotiable

N/A

6,600

Chickasaw Trail Industrial Park

Byhalia

Industrial-light

Negotiable

Negotiable

3,600

Pearlington

Industrial-heavy

30,000/acre

N/A

3,600

Walls

Industrial-heavy

Negotiable

N/A

1,243

Golden Triangle Industrial Park

Columbus

N/A

Negotiable

N/A

1,200

I-55 Industrial Park

Grenada

Industrial-heavy

Negotiable

Negotiable

1,175

Iuka

Industrial-light

$500-$2,500/acre

Negotiable

1,100

Ceres Research and Industrial Interplex

Vicksburg

Industrial-heavy

$15,000/acre

N/A

1,000

Greenwood LeďŹ&#x201A;ore Industrial Park

Greenwood

Industrial-light

Negotiable

N/A

1,000

Tunica

Industrial-heavy

$20,000/acre

N/A

927

Pelahatchie

Industrial-heavy

Negotiable

N/A

650

Meridian I-20/59 Industrial Park

Meridian

Industrial-heavy

$20,000/acre

N/A

643

North Harrison County Industrial Park

Gulfport

Industrial-heavy

Negotiable

Negotiable

632

Port Gibson

N/A

Negotiable

Negotiable

600

Aberdeen

Industrial-heavy

Negotiable

Negotiable

572

J.C. "Sonny" McDonald Industrial Park

Jackson

Industrial-light

Negotiable

N/A

462

Clinton Industrial Park

Clinton

Industrial-light

Negotiable

N/A

450

Greenpointe

Greenville

Industrial-heavy

Negotiable

Negotiable

450

Hattiesburg-Forrest County Industrial Park

Hattiesburg

Industrial-light

$10,000/acre

N/A

450

North Ripley Industrial Park

Ripley

N/A

Negotiable

N/A

400

Walnut Industrial Park

Walnut

N/A

Negotiable

Negotiable

400

Louisville

Industrial-heavy

$3,500/acre

N/A

391

Port Bienville Industrial Complex Brentwood Business & Industrial Park

Yellow Creek Port industrial Park

I-69 Industrial Park 43/20

Claiborne County Industrial Park and Port Prairie Industrial Park South

Stringer Industrial

Available Acres

FO OR R S LE AL AS E E

Source: Mississippi Development Authority. List is ranked by available acres. Please direct questions or comments to Wally Northway at research@msbusdiness.com.

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AN MBJ FOCUS:

CONSTRUCTION

FORTIFYING FOR DISASTER

» Singing River Health System secures grants to make hospitals storm-resistant

By LYNN LOFTON I CONTRIBUTOR mbj@msbusiness.com

Coast residents, businesses and organizations learned many lessons from Hurri-

cane Katrina in 2005, including how to be better prepared for any storms the future may hold.

Singing River Health System is working to make sure its facilities — Ocean

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Springs Hospital and Singing River Hospital — are strengthened against all possible natural disasters.

The not-for-profit health system also operates community medical clinics throughout the area, employs approximately 2,600 people, has 300 physicians on staff and made an economic impact of $271 million in Jackson County for 2012.

Just as homeowners can fortify their structures to better withstand storms, Singing River Health System has secured grants to fortify its hospital facilities.

According to Chief Operating Officer for Operations Kevin Holland, the two hospitals are at different stages of progress with Ocean Springs being further along in the process.

He points out that the system’s hospitals – even though they had challenges – did not have the extensive damage of some Coast hospitals.

“Ocean Springs Hospi- Holland tal had minor damage in Hurricane Katrina, lost power and relied on emergency backup generators, which weren’t big enough,” he said.

“These generators were not sufficient for the air conditioning system, and it was very hot for patients and staff in August.

We were thinking we would have to evacuate the hospital when they power came back on.”

To avoid that problem should the hospital lose electrical power again, two 2.3 megawatt state-of-the-art generators have been installed at the Ocean Springs facility thanks to a Federal Emergency Management Agency grant.

“Each one of these generators cost more

than $1 million,” Holland said. “They can run on natural gas or diesel and can sustain us for eight to 10 days.”

Another grant for $2.5 million from FEMA and the Mississippi Emergency Management Agency was used to replace all windows at the Ocean Springs Hospital. These shatter-proof windows are rated to withstand 165 mile-per-hour winds.

“When you knock on these windows, it feels like you’re knocking on concrete,” Holland said. “It took a year to replace all of them.”

He says construction at a hospital is always a challenge because the facility can not shut down. Windows were replaced in patient rooms by doing two rooms at a time, which was a four-day process, and some areas were done on weekends. “We had to take it in small chunks to have the least amount of disruption,” he added.

Randall Cobb, the system’s facilities support director, said, “A FEMA grant of $2.5 million to replace the Ocean Springs Hospital roof is now in the bid process and will take about four months to complete once we begin – probably after the first of the year.”

The Ocean Springs Hospital has 250,000 square feet while Singing River Hospital has 500,000 square feet. Because of the much larger size of the Pascagoula facility, Holland and Cobb note the increased cost and time that will be required to make similar changes to fortify it against a category five hurricane.

“We applied for a $16.3 million grant to replace all exterior glass and the roof for Singing River Hospital,” Holland said.

“We have received a verbal confirmation See

HOSPITALS, Page 20

CONSTRUCTION

November 8, 2013

I

Mississippi Business Journal

I

19

HOMEBUILDING

New home construction inches upward

By LISA MONTI I CONTRIBUTOR mbj@msbusiness.com

Insiders and observers of the state’s housing market see ever-so-slight growth as the economy continues to shake out after the disastrous recession.

“What I’ve seen so far is not a lot of growth,” said Dr. Darrin Webb, the state’s economist who has tracked building permits for years. “It’s no longer declining like it was back a few years ago but it’s not really growing either.”

Marty Milstead, executive vice president of the Home Builders Association of Mississippi, said, “I think we bottomed out.

Obviously when you are on the bottom you can only move in one direction and that’s up.”

State homebuilding numbers are below the normal 10,000 single-family housing starts annually, Milstead said. “We’re seeing probably around 3,500 this year.”

Builder Randy Bosarge owns Superior Builders and Developers Inc. in Ocean Springs and is president of the state home builders association. “It looks like it’s trying to turn the corner,” Bosarge said.

As tepid as the reports are, there’s hope for housing starts to keeping moving forward, barring a downturn in employment and more political gridlock in Washington.

Milstead is seeing a slight uptick, particularly in the first-time buyer market.

That’s mainly occurring in Jackson, some areas of the Mississippi Gulf Coast and around Southaven. He said there also is some activity in the three major university towns of Hattiesburg, Oxford and Starkville. “We’re expecting another slight uptick next year,” he said.

The activity is the result of normal life events, Milstead said. “People are still getting married, there’s some job growth, folks choose to retire to an area, all those things.”

Milstead said the national association’s economist says there’s pent up demand for new houses and interest rates are still affordable. Another trigger for new homebuilding is when consumers see housing prices and interest rates start to rise.

Webb has tracked building permits for years. He said even though permits aren’t required for construction in unincorporated areas, they’re still a good measure of building activity. “There are housing starts going on that are not part of building permit data,” he said.

What Webb does see in his research is an increase in construction jobs. “Construction employment has done very well in Mississippi. The numbers are up substantially this year over last,” he said.

A large portion of the jobs can be traced to the Mississippi Power’s Kemper

“In Mississippi I don’t think we had any bubble in terms of house prices...the economy was growing and people were building houses but that just fell,” Webb said. “At its worst point we were down 66 percent from the peak. That’s a tremen-

County plant but, Webb said, “The fact that it’s still growing says it’s more than the Kemper plant.”

Until the recession, the homebuilding industry was booming across the country, Webb said.

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HOMES, Page 20

CONSTRUCTION

20 I Mississippi Business Journal I November 8, 2013

HOMES

Continued from Page 18

The looming increase in flood insurance cost is on the minds of everyone, including builders, buyers and sellers.

“We certainly are concerned about what’s happening with the flood insurance program and how that’s going to impact home buyers,” Milstead said.

As to the new year, Milstead said, “The needle is moving in the right direction. Certainly there’s still room for improvement but the fact that we’re talking about it moving in a positive direction is a good sign for us.”

Bosarge sounded optimistic as well. “It looks like it’s trying to turn the corner if Congress will keep it together. “ The recent government shutdown hit homebuilders and buyers almost immediately. Bosarge said the closure of FHA offices and government employee furloughs prevented buyers from closing on homes until they went back to work.

“It scares people,” Bosarge said of the political gridlock. “Hopefully they’ll keep the government going and next time this comes around they won’t falter.”

So is this a good time to be a homebuilder?

“I think so,” Milstead said, “because you still have attractive interest rates, the market is coming back and there are folks out there who want good quality homes. A new home is hard to beat.”

Builders group honors Brunini’s Kelly Special to The MBJ

Sam Kelly of Brunini, Grantham, Grower & Hewes, PLLC has been selected as the Construction Industry Person of the Year by the Mississippi Associated Builders and Contractors.

Kelly was recognized at the annual Mississippi ABC Merit Awards Banquet at the Country Club of Jackson Country Club on Nov. 1 and delivered a speech after the award was presented.

The Associated Builders and Contractors, Inc., is the fastest-growing construction trade association in America,

HOSPITALS

Continued from Page 18

for the grant.”

When all work is complete, the hospitals will be prepared to operate on their own for seven to ten days in a worst case scenario. “If it weren’t for FEMA and MEMA grants, we could not have done these projects,” Holland said. “We are more prepared today than we’ve ever been to withstand any challenges nature

operating through 25,000 nationwide member firms. The Mississippi Chapter of ABC is the largest trade association of its kind in the state, setting standards for the industry in its attempt to promote a fair and Kelly profitable business way of life.

Kelly is an active member of and serves as General Counsel to the Mississippi Associated Builders and Contrac-

tors and the Mississippi Road Builders Association. He is also an active member of the Associated General Contractors of Mississippi.

Kelly’s practice focuses on the construction industry and includes contract preparation and negotiations, bid protests, claim preparation and evaluation and dispute resolution. In the field of Construction Litigation, he has been recognized by Best Lawyers in America, Chambers USA: America’s Leading Lawyers, and MidSouth Super Lawyers. Kelly was named Best Lawyer’s Lawyer of the Year 2012 Jackson, Miss., in Construction Litigation.

“We are more prepared today than we’ve ever been to withstand any challenges nature throws our way.”

Kevin Holland, CEO for Operations, Singing River Health Systems throws our way. Randall Cobb, a mechanical engineer, is the mastermind behind this work.”

Both Singing River officials say the facilities must be able to function as a city within a city by having its own power,

water and food supply in the aftermath of disasters. “The more fortified we are, the more able we are to keep doing what we do,” Holland said. “Our role in disasters is to be self sufficient so we can continue functioning.”

800.688.4003 | RAC.COM OFFICES IN GULFPORT, JACKSON AND NEW ORLEANS

NEWSMAKERS

November 8, 2013

Profiles of growing young professionals in Mississippi

Keeping our eye on... J. TEDRICK RATCLIFF, JR. Growing up on a tree farm in rural Lincoln County, Brookhaven native Tedrick Ratclifflearnedatayoungagehowtoappreciateandcultivatesomeofthestate’s finest timber resources.

“I have always wanted to be a forester. Jokingly, I point back to pictures I created in kindergarten that had trees in them,” Ratcliff says. “(Growing up) watching and learning from my father who has always thoroughly enjoyed being a forester was very influential in my decision.”

Ratcliff earned two degrees from Mississippi State University including a BS in forestry and an MBA. While in college, he worked for the U.S. Forest Service on forest management and public recreation issues and after graduation worked for four years as an admissions coordinator for the College of Forest Resources.

As an executive staffer for the Mississippi Forestry Association, Ratcliff is still never far from the woods. Involved with the group since high school, today Ratcliffservesasanambassadoroftheforestryprofession.Mostofhisdaysarespent working on forest policy and meeting with timberland owners, forest business owners, professional foresters, logging contractors, manufacturers, wood fiber suppliers and county, state and federal agencies.

“The future of forestry is promising,” Ratcliff says. “Our industry has suffered the effects that many others have in a poor economy. Our state has the opportunity to continue to be a leader in manufacturing goods and products that are used all over the world and the best part is that a large number of Mississippians play a direct role in this because they own, manage, and enjoy the raw materials that are vital to making this happen.”

Ratcliff also works with the forestry committee of the Andrew Jackson Council of the Boy Scouts of America, helping assess and manage the district’s timberland resources for recreational use, forest health and sustainability. Ratcliff and his wife Molly live in Brandon and he enjoys canoeing, kayaking, hunting, and fishing.

“Never stop acquiring skills and knowledge related to your expertise,” Ratcliff advises young professionals. “Your professional organizations, associations, and societies are valuable to your ability to network and meet the movers and shakers in your career, so it is important that you aren’t just a member but that you are a participant.”

Johnstone announces retirement

Forbes earns promotion

Hernando's community development director, Shelly Johnstone, has retired. Johnstone is credited with bringing improved development standards to Hernando, with infrastructure for bicycling and walking. She worked with the city's parks chief on promoting health through recreation programs and a farmers market. During her watch, in 2010, Hernando received the first Healthiest Hometown Award to be given in the state, from the Mississippi Blue Cross Blue Shield Foundation.

HORNE LLP has promoted Neil Forbes, CFE, PMP to partner in charge of disaster recovery services. Forbes holds a bachelor of arts degree in English literature from Virginia Wesleyan College. He is a certified fraud examiner and project management professional.

Forbes joined HORNE in 2008 with management and consulting experience overseeing campaign and political operations in 18 different states for both state and federal elections. He served in multiple project leadership roles before making partner in 2012. Forbes spent eight years in the United States Army serving in Korea, the 82nd Airborne Division and the Virginia Army National Guard.

City chooses Johnson Nicky Johnson is now serving as the code enforcement officer for the city of Natchez. Johnson was recently hired by the Natchez Police Department, where she worked several years ago. The 37-year-old Natchez High School graduate said she initially applied for the code enforcement job because she is passionate about keeping Natchez clean.

Johnson replaces former code enforcement officer Willie B. Jones, who pleaded guilty to insurance fraud in September.

Shah added at Memorial Memorial Physician Clinics welcomes Basil Shah, MD, to the practice of diagnostic radiology, neuroradiology, with a subspecialty of diagnostic and interventional neuroradiology as well as image guided pain management and spine restorative procedures. Shah joins the Memorial neurosciences team and will practice in neurosciences and pain management.

Shah received his medical de- Shah gree at Khyber Medical College in Peshawar, Pakistan. He completed his residency in anesthesiology and diagnostic radiology at Shiraz Medical University, Shiraz, Iran. He then pursued his subspecialty training at Henry Ford Hospital in Detroit and University of Virginia. He established two successful endovascular programs at Wayne State University and Tulane Medical Center. He is board certified in radiology, and he is also a senior member of the American Society of Neuroradiology and Neurointerventional Surgery.

Waggonner hires Willis, Brewer Waggoner Engineering has added two new longtime industry leaders. David Willis, PE, joins Waggoner as project manager, bringing with him 25 years of experience in public utilities. Tim Brewer, PLS, joins as a survey manager with 25 years’ experience in surveying and forestry.

Prior to joining Waggoner, Willis served as deputy director of public works for the city of Jackson.

Johnston confirmed by Guirola Chief United States District Judge Louis Guirola has confirmed the court’s selection of Arthur S. Johnston III, currently the Madison County chancery clerk, to serve as clerk of court for the federal court in the Southern District of Mississippi. He will succeed J. T. Noblin, who earlier announced plans to retire from the post in January. Noblin has served in that capacity since 1990.

Johnston will assume the post after serving in his third term as Madison County chancery clerk. In addition to chancery clerk, Johnston also serves as clerk of the Board of Supervisors and as county treasurer and auditor in Madison County. Johnston had been instrumental in the implementation of the federal electronic court filing system in the Mississippi state courts. For these efforts, he received the Chief Justice Award at the annual meeting of the Mississippi Bar Association.

Johnston, a cum laude graduate of Delta State University, is a graduate of the University of Mississippi School of Law where he was the associate editor of

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Age: 28 Executive Vice-President, Mississippi Forestry Association Best thing about Mississippi: The people Best Mississippi event: Neshoba County Fair Favorite Mississippi food: Beef tips & rice Heroes or mentors: “My father has long been and will continue to be a mentor to me, personally and professionally.”

Favorite hangout spots: “Mississippi State or my family’s tree farm.”

Favorite TV show: “Duck Dynasty” Favorite movie: “The Edge” Favorite music: Country Twitter handle: @TedrickRatcliff

— By Stephen McDill the Law Journal. He was in the private practice of law for ten years before his election as the Madison County chancery clerk. He is a native of Cleveland.

Cohen joins Butler Snow David M. Cohen has joined Butler, Snow, O’Mara, Stevens & Cannada, PLLC. Cohen is a member of the firm’s Product Liability, Mass Tort and Environmental Group. He has spent more than 15 consecutive years helping clients defend allegations of disease diagnosis and causation. He has served as lead science counsel in multi-plaintiff mass tort litigations and individual lawsuits alleging claims of personal injury and product liability. During this period, he cross-examined more than 90 different physicians and scientists. Cohen also advises clients on policies and procedures to reduce litigation risk. He has been a speaker at several continuing legal education seminars on expert witnesses and Daubert law.

Cohen earned his bachelor’s degree from Union College before earning his juris doctor from Fordham University School of Law. He also studied at the London School of Economics and Political Science. Following law school, he served as a federal law clerk to the Honorable D. Brook Bartlett of the Western District of Missouri in Kansas City. He has been recommended in The Legal 500 U.S., named a New York Super Lawyer and has been listed in The Best Lawyers in America since 2012.

Baskes coming to MSU Michael I. Baskes, a member of the National Academy of Engineering, is joining the faculty of Mississippi State's Bagley College of Engineering. Baskes is a professor of aerospace engineering who also will be a special assistant to dean Achille Messac.

Baskes was elected to NAE in 2012 for his contributions to materials engineering, including his metal and alloy structures and Baskes property prediction methods. He holds Fellow status with the national lab, as well as with the Minerals, Metals and Materials Society and Institute of Physics. He is credited with development of the Embedded Atom Method, a standard mode of calculation for complex applications in materials sci-

ence. He also created atomistic models to predict the behavior of helium in metals and established a model to explain hydrogen isotope recombination, which is used in work with fusion reactors.

Baskes is the author of more than 235 journal articles, book chapters and conference proceedings that have been cited more than 15,000 times in other scientific works. A report on EAM ranks as his most cited work with 3,300 entries. Three others have 1,500 citations each. He is a member of the U.S. Department of Energy's Basic Energy Sciences Hall of Fame and twice has earned the division's award for sustained outstanding research.

BKD promotes Hill BKD, LLP has promoted Michael D. Hill, CPA, to director. Hill is a member of BKD National Manufacturing & Distribution group, and BKD National Construction & Real Estate group and has more than 17 years of experience in public accounting. He is a member of the American Institute of Certified Public Accountants and Mississippi Society of Certified Public Accountants. He is also a member of the Accounting Advi- Hill sory Board for the University of Southern Mississippi School of Accountancy. He is a Rotarian and a Paul Harris Fellow, and he currently serves as treasurer for Rotary District 6820.

Hill is a 1988 graduate of the University of Southern Mississippi with a B.S. degree in accounting, and in 1994 received an MBA degree.

Center chooses Morse Attorney Reilly Morse has been named president and chief administrative officer of the nonprofit Mississippi Center for Justice. Morse was managing director.

Founding president and CEO Martha Bergmark will maintain a leadership role as senior counsel and member of the board of directors.

NEWSMAKERS

22 I Mississippi Business Journal I November 8, 2013 Engineers chosen for LeadershipITE

University honors Smith

Neel-Schaffer engineers Jonathan Kiser, PE, and Becky Malenke, PE, have been accepted into the inaugural class of LeadershipITE. Kiser and Malenke are among 30 engineers from North America chosen for the first class of this program.

Kiser joined Neel-Schaffer in 2000 and has 20 years of experience as a traffic engineer. He is a vice president of the firm and works out of its headquarters office in Jackson. Kiser is certified as a professional traffic operations engineer and professional transportation planner through ITE. Additionally, he is the past president of the Deep South section of ITE. Malenke joined Neel-Schaffer in 2006 and has 14 years of experience as a transportation engineer and planner. She is a project manager who works out of Neel-Schaffer’s office in Hoover, Ala. She currently serves as president of the Alabama section of ITE.

Dr. Jane McKee Smith, a research hydraulic engineer with the Coastal and Hydraulics Laboratory at the U.S. Army Engineer Research and Development Center (ERDC) in Vicksburg, was recently awarded the Distinguished Alumni Award for Professional Achievement from South Dakota State University.

Smith’s research focuses on coastal hydrodynamics, including nearshore waves and currents, storm surge, wave-current interaction, wave generation and shallow-water wave transformation. Her completed projects include theoretical and numerical studies as well laboratory and field experimentation. She was the wave modeling lead scientist for Hurricane Katrina’s Interagency Performance Evaluation Task Force.

In addition to her official duties at ERDC, Smith is president of the Coasts, Oceans, Ports and Rivers Institute of the American Society of Civil Engineers (ASCE) and serves on ASCE’s Coastal Engineering Research Council. She is a registered professional engineer in the state of Mississippi and an adjunct professor at Mississippi State University. Smith has served on master’s and doctoral committees for Texas A&M University, Louisiana State University and the University of Florida. She also serves on the University of Delaware external advisory council for the Civil and Environmental Engineering Department.

Smith’s accomplishments include being named ASCE’s Government Civil Engineer of the Year for 2010. She is recognized as a diplomate by the Academy of Coastal, Ocean, Port and Navigation Engineers and was named the Waterways Experiment Station’s Woman of the Year in 1987. Smith’s work on numerical wave and surge modeling was recently featured on the “Megastorm Aftermath” episode of the PBS series NOVA, which aired Oct. 9.

Smith resides in Vicksburg, along with her son, Tyler, and her husband, Dr. Ernest Smith.

Carver

Ellzey

Hankins

Hults

Lungu

HORNE promotes five CPA and business advisory firm HORNE LLP recently promoted five team members in office locations across the state. Kelli Carver, Savannah Ellzey, Anca Lungu and Nikki Hults each earned promotions within the firm’s disaster recovery management team located on the Gulf Coast.

Carver was promoted to manager.

Lungu and Hults were named supervisors.

Ellzey was named senior associate.

Julie Hankins in the Grenada office was promoted to associate within the firm’s business advisory and business accounting department.

Rankin, McDill take on new roles John A. Rankin has added CFO to his current roles as an investment officer, commercial lender and member of the board of directors at Peoples Bank. He is a 2000 graduate of the University of Southern Mississippi, where he earned his bachelor of science degree in business administration with emphasis in banking and finance. He subsequently earned his MBA from USM and has completed studies McDill at the Graduate School of Banking, conducted at Louisiana State University, in 2010.

Prior to joining Peoples Bank, Rankin was affiliated with BankPlus in Jackson and the Mississippi Department of Banking and Consumer Finance.

He also worked as a bank examiner under the umbrella of the Missouri Division of Finance, St. Ranking Louis District Office.

Rankin was named a 2009 Best of Jackson for Best Banker by the Jackson Free Press and has been certified as a credit examiner and an operations examiner. While at USM, Rankin earned the Finance Faculty Award and was the recipient of the First Bancshares Scholarship.

He is active in a host of civic and economic development endeavors, including service as a member of the Mendenhall Chamber of Commerce Board of Directors. He is the Simpson County Development Foundation’s president-elect, and is a member of the Mendenhall Community Club.

Rankin serves as a coach in the First Baptist Church Upward Basketball program and as a volunteer for the Mississippi Bankers Association’s Get Smart About Credit program. Additionally, he has worked with Habitat for Humanity and Stewpot Community Services and has been a volunteer instructor with Junior Achievement and the Redeemer Church Tutoring Program.

Rankin is married to Michelle Walters Rankin and they have four children, Mary Margaret (9), Alice Elliot (8), Murray (5) and Will (2).

Also, Daniel E. McDill has joined People’s Bank and will serve as a senior vice president. In his new role, McDill will open and manage the bank’s loan production office in Richland. A native of Jackson, McDill has called Rankin County home for most of his

adult life, working primarily in commercial lending across the tri-county area. He is a graduate of Hinds Community College and Mississippi College, and has completed studies at both the National Commercial Lending School, held at the University of Oklahoma and the Graduate School of Banking, conducted at the University of Colorado.

McDill began his banking career in 1981 at Deposit Guaranty National Bank and served as president and CEO of Bank of the South, prior to its acquisition by Metropolitan BancGoup in 2008. Most recently he served as president of the Rankin Division of Metropolitan.

McDill is a graduate of Leadership Rankin and has a long history of community involvement having been a Sunday school teacher, MYF advisor and youth league coach and having previously served on the board of the Mississippi Chapter of Future Farmers of America and the Leadership Rankin Board of Trustees.

He is a former president of the Brandon Youth Association and the Rankin County Chamber of Commerce.

McDill currently serves on the Advisory Board of Habitat for Humanity and the Community Advisory Counsel of Entergy Mississippi. He is also a strong supporter and active fundraiser for the Andrew Jackson Counsel of Boy Scouts of America.

McDill enjoys golf, tennis and hunting. He is the proud father of two and grandfather of two.

Corley earns promotion Ashton Corley has been promoted to customer sales representative for Community Bank’s office in Madison. Corley joined Community Bank in March and has been serving as a teller. A Magee native, she is a graduate of Mississippi College with a bachelor of science in business administration, majoring in Marketing.

Active in the community, Corley is involved with the City of Corley Madison Chamber of Commerce, Ridgeland’s Zip39 and Jackson Adult Kickball Association. She is the daughter of Joe and Cindy Corley of Magee.

Mad Genius hires Farmer Ryan Farmer is the new interactive creative director at Mad Genius. A magna cum laude graduate of Mississippi College with a B.S. degree in graphic design, Farmer also received many awards in graphic design-related fields while in college. He brings almost a decade’s worth of experience in graphic design and development.

Farmer

Burger named Fellow Loren W. “Wes” Burger Jr., the associate director of two research centers at Mississippi State University, is a new Fellow in The Wildlife Society. A professor in the Department of Wildlife, Fisheries and Aquaculture, Burger was recognized for exceptional service to the wildlife profession at the 2013 annual meeting of The Wildlife Society. He serves as associate director of the MSU Forest and Wildlife Research Burger Center and the Mississippi Agricultural and Forestry Experiment Station.

Burger’s research interests include bobwhite quail and grassland bird ecology and management. He served as project coordinator for the U.S. Department of Agriculture’s Northern Bobwhite Habitat Restoration Project, a research effort to determine wildlife response to Farm Bill conservation practices. On behalf of USDA-Farm Service Agency, Burger designed and coordinated a national monitoring program to measure the response of bobwhite and grassland birds to a new conservation buffer practice. For more than two decades, Burger has led research programs focused on integrating wildlife conservation into agricultural production systems.

Burger is a Grisham Master Teacher and was named the Dale H. Arner Professor of Wildlife Ecology and Management in the College of Forest Resources. He holds bachelor’s degrees in biology and mathematics from Murray State University. He earned his master’s degree and doctorate in wildlife biology from the University of Missouri

McGill gets new title The Columbus Municipal School Board has dropped temporary from Edna McGill's title. The board voted 3-2 to make McGill interim school superintendent. When she was hired in June, McGill had the title of temporary interim school superintendent.

McGill will serve as the district's interim head until June 30, 2015, or until a new superintendent is hired.

McGill replaced former superintendent Martha Liddell who was removed from the post after it was revealed that she used district funds to pay for a private party and had continued to do consulting work in violation of her contract.

Pinnacle hires Malone Dacia Malone has joined Pinnacle Trust as an advisor assistant. Malone graduated from the University of Southern Mississippi with a bachelor of science in elementary education. She received her master of education in elementary education from Delta State University. While attending USM, Dacia mentored students at the DuBard School for Language Disorders. Additionally, she participated in an organization that helped tutor underprivileged children in an after school program.

NEWSMAKERS Mall names team The Outlets of Mississippi has appointed a team of retail property, real estate asset and tourism industry professionals to lead property management, operations, leasing and marketing functions.

Bringing nearly 20 years of retail property management experience in arenas including asset management, budget allocation, policy and procedure creation and marketing, general manager Kathy Hackshaw is responsi- Boyd ble for property operations, budget administration, tenant communications and staff management at the Outlets of Mississippi. Hackshaw’s career experience includes executive positions with Tanger Outlets, JTS Realty, O & S Holdings and Chelsea Property Group. She earned her bachelor of arts de- Crawford gree in history from Wake Forest University.

Most recently serving as director of development and public relations at the Jackson Zoo, director of marketing Angela Shepard is responsible for all Outlets of Mississippi marketing initiatives including advertising, public relations, interactive and social communications, special Hackshaw events and tourism marketing with the goal of driving consumer traffic and merchant sales. Shepard earned her MBA and bachelor of business administration degree from Mississippi State University.

As director of operations, Tony Boyd oversees all daily working functions at the Outlets Shepard of Mississippi including security, maintenance, janitorial services and landscaping.

Boyd most recently served as facilities and operations technician at Trademark Properties. Boyd served in the United States Marine Corps for six years.

Director of lease administration Angie Crawford is charged with the execution, processing and management of tenant lease agreements. She comes to the Outlets of Mississippi from Parkway Properties where she was responsible for the review and processing of commercial leases, management of capital improvement efforts and staff training in standard operating procedures for a real estate portfolio consisting of 85 properties. Crawford earned her associates degree in business administration from Hinds Community College.

Acholonu makes ranking Dr. Alex D.W. Acholonu, professor of biology at Alcorn State University, has been included in the “Top 20 Medical and Nursing Professors in Mississippi” for 2013 by onlineschoolsmississippi.com. Acholonu has been a part of the Department of Biological Sciences since 1991 teaching various classes, serving as director of the Ecology Education Program, Ecology Club advisor and conducting research. He is a sought-after authority in the areas of water pollution, parasitology, microbiology and public health. He is a former presi-

dent of Alcorn’s Faculty Senate and chair of the Zoology and Entomology Division of the Mississippi Academy of Sciences (MAS), now serving as MAS’ chair of the Health Care Disparity Committee.

Acholonu is an author of numerous articles published in scientific journals in the U.S. and abroad. His latest publication, “Water Quality Studies of Ground Water in Owerri, Nigeria,” was published in the current issue of the international journal Advances in Science and Technology.

Acholonu is a member of numerous professional organizations including the Nigerian Association of Medical Scientists, Science Association of Nigeria, Nigerian Society of Microbiology, African Union Against Venereal Diseases and Treponematosis, American Society of Parasitologists, Helminthological Society of Washington, American Society of Tropical Medicine and Hygiene, American Association of Veterinary Parasitologists, Ecological Society of America, American Society of Veterinary Parasitologists, and the National Association of African American Studies.

Acholonu has received numerous awards and recognitions, including an award for outstanding contributions to science from the Mississippi Academy of Sciences, Distinguished Service Award from the U.S. Food and Drug Administration Advisory Committee, Life Achievement Award for Leadership and Devotion from the World Owerri People’s Congress, the Life Achievement Award in Parasitology and Microbiology from the Nigerian Academy of Science and Who’s Who Among America’s Teachers. Acholonu was awarded Officer of the Order of the Niger by the president of Nigeria, cited as one of 2000 Outstanding Intellectuals of the 21st Century and Great Mind of the 21st Century by the International Biographical Centre, Cambridge, England, has received the Universal Award of Accomplishment in Microbiology and Parasitology and International Educator of the Year Award by the American Biographical Institute, and has been included in America’s Registry of Outstanding Professionals.

Sweat joins firm Bradley Arant Boult Cummings, LLP recently welcomed Anna Sweat into the firm’s Jackson office as a first-year associate in the Litigation Practice Group and a member of the Financial Services Litigation and Compliance Team. Sweat holds a J.D., summa cum laude, from the University of Mississippi School of Law, where she served as an associate articles editor of the Mississippi Law Journal. She Sweat also has a B.A., summa cum laude, from Millsaps College.

Magazine ranks Bennett University of Southern Mississippi President Rodney D. Bennett joins an illustrious group of honorees named recently to EBONY’s annual Power 100 list of the nation’s most influential African-Americans. The Power 100 list is divided into 14 categories of recognition. Bennett is included among “The Firsts” for becoming the first African-American to lead Southern Miss or any of the state’s historically white institutions of higher learning.

A Tennessee native, Bennett became the 10th president at Southern Miss on April 1 of this year. He came to Southern Miss from the University of Georgia where he served as vice president for student affairs.

November 8, 2013

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Bank elevates Makamson

HORNE promotes staffers

Planters Bank has promoted Chris Makamson to credit administrator. Makamson has worked in banking for 20 years with 10 years at Planters Bank’s Indianola office.

He received his B.P. in accounting from Mississippi State University and is a graduate of the Mississippi School of Banking and the Louisiana State University Graduate School of Banking.

Makamson is serving as president of the Indianola Rotary Makamson Club and has served as president of the Belzoni Rotary Club. He is married to the former Naomi Watson of Corinth.

CPA and business advisory firm HORNE LLP recently announced promotion of six team members in office locations across the state. Rebecca Geiger was promoted to manager. John Newton and Joseph Cieglo were promoted to senior associates.

Geiger, Newton and Cieglo all work in assurance services for SEC registrants and large private companies in the Hattiesburg location.

Jessica Webster, a member of the health care valuation team in Hattiesburg, was promoted to senior associate.

Leslie Barton was named supervisor, and Todd Reindl was promoted to senior associate. Both Barton and Reindl work in business advisory and accounting services for franchises in the Lucedale office.

Educators tapped for program

CNAs earn awards

Two Mississippi State University administrators have been accepted into a two-year leadership development program that will connect them with food systems peers and industry professionals. Peter Ryan, MSU associate provost, and Michael Newman, professor and director of the MSU School of Human Sciences, will join the national Food Systems Leadership Institute’s fall 2013 class.

The institute is an executive-level program designed to prepare participants for greater responsibilities within their organizations and in the broader context of food systems programs, including academia, industry and government. Participants attend three weeklong residential sessions at host institutions, including California Polytechnic University at San Luis Obispo, North Carolina State University and The Ohio State University.

The Mississippi Health Care Association recently presented awards to six certified nursing assistants at the 6th Annual CNA Conference. The Area 1 and overall winner was Doris Davis of Union County Health & Rehab of New Albany. The other winners were: Geneva Jackson of Bolivar Medical Center Long Term Care in Cleveland (Area 2); Gladys Sampson of Hinds County Nursing & Rehabilitation Center in Jackson (Area 3); Elizabeth Callahan of Golden Living Center in Carthage (Area 4); Sharon Morris of Billdora Senior Care in Tylertown (Area 5); and, Pamela Faulkner of River Chase Village in Gautier.

PGA recognizes Adkerson Jeff Adkerson, a Mississippi State University administrator, is the 2013 Gulf States PGA Section's Golf Professional of the Year, the highest recognition paid to Mississippi and Louisiana members.

Adkerson has led the university's professional golf management program since 2007 and was assistant director during the four previous years. He is a 1999 marketing/PGM graduate of MSU's College of Business, where he Adkerson also completed an MBA in 2005.

Currently, Adkerson serves as secretary of Gulf States PGA, with offices located in Metairie, La. Additionally, he is a member of the PGM adjunct faculty for PGA of America and a former president of the Professional Golf Management Education Association.

Adkerson is a four-time selection for the Gulf Section's prestigious Horton Smith Award. He also was named Mississippi Chapter Golf Professional of the Year in 2009 and 2011.

Society recognizes Boutwell Rhonda Boutwell, director of social services at Anderson Regional Medical Center, was recently named Healthcare Social Worker of the Year by the Mississippi Society for Social Work Leadership In Healthcare Inc. Boutwell has been employed at ARMC since 1987. She has grown the social work program from one person to a team of six social workers.

Boutwell participated in the development of the case manage- Boutwell ment program, and is an active participant in various hospital committees and teams including Institutional Review Board, Strategic Planning and Palliative Care. Boutwell is the leader of the readmission team as part of the Partnership for Patients Initiative, and she is also involved in the development of new service lines at ARMC to meet the needs of the community.

Boutwell holds several professional affiliations including the Society for Social Work Leadership in Healthcare, Mississippi Hospital Association Behavioral Health Society and Community Partnership on Mental Health. She has held several administrative positions with the Mississippi Society for Social Work Leadership in Healthcare including Long-term Care Task Force, secretary, board member at large and Nominations Committee.

Boutwell has continued to advance her education by undergoing crisis intervention training at the University of Memphis, obtaining Resolve through Sharing certification, and becoming an adoption specialist with the National Council on Adoption.

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

24 I Mississippi Business Journal I November 8, 2013 METRO AREA

DINING

Gaming executive to build ‘The Lube’ on Gulf Coast BILOXI — Louisiana-based I-10 Hospitality, LLC, a restaurant, hotel and gaming management company founded by former Pinnacle Entertainment Inc. and Caesars Entertainment Inc. executive, Geno M. Lafrate, has signed a deal with Quaker Steak & Lube to develop branded restaurants along the I-10 Corridor from Beaumont, Texas, to Destin, Fla. — including the Biloxi/Gulfport area.

Founded in 1974, Quaker Steak & Lube — commonly referred to as “The Lube” — is a familyfriendly restaurant with a motor-themed atmosphere. It has more than 60 locations throughout the United States and Canada. The restaurant franchise has won the title “Best Wings USA” and has won other awards for its wings and signature sauces.

“We are so excited to expand our brand presence throughout the I-10 corridor and introduce more guests to our unique motorsports-themed dining experience,” said John Longstreet, president and CEO of Quaker Steak & Lube. “Our continued strong growth would not be possible without our dedicated area developers at I-10 Hospitality who are committed to the company’s success.”

In addition to Biloxi/Gulfport, other markets include Beaumont, Lake Charles, La., Lafayette, La., Baton Rouge, New Orleans, Gulfport/Biloxi, and Mobile/Pensacola/Fort Walton with an option to develop additional locations in the Shreveport/Bossier, Alexandria and Monroe markets.

“We are thrilled to bring The Lube concept to the coast,” said I-10 Hospitality president and CEO, Geno M. Lafrate.

I-10 Hospitality, LLC is partnering with Sulphur, LA, based KAP of Louisiana to oversee construction projects. Other key partners include Montgomery Roth Architecture & Interior Design from Houston, Texas, and Shreveport, La.-based Gremillion & Pou Marketing.

— Frank Brown, MBJ staff

AUTOMOTIVE

Nissan sales up 14.2% in October, a company record Nissan Motor Co. sales in the U.S. were up 14.2 percent to 91,018, an October record. (Oct. 2012 total sales were 79,685.)

Here are the full sales numbers with an outline of the Mississippi-built products … » Frontier sales jumped 71.8 percent in October to 5,242 units, thanks in part to the popularity and increased availability of fuel-efficient 4-cylinder models. » Sentra sales rose by 49.3 percent to 8,399 units. » Xterra sales were up 11.4 percent to 1,114 units. » Armada sales increased by 22.2 percent to 1,187 units. » NV sales climbed by 30.6 percent to 1,006 units.

— from staff reports

Outback to open restaurant in Flowood in 2014 FLOWOOD — Outback Steakhouse plans to open a second Jackson-area eatery next summer in Flowood, Steve Grantham, president of J&R Restaurant Group confirmed Tuesday.

“It will be across from Dogwood Festival, on the southeast corner of Market Street,” said Grantham.

“If all goes according to plan, we’ll break ground in mid-January.” He hopes to be open by June 1.

The new Outback, which will cost upwards of $3 million to build, will have a different look from the area’s other restaurant on I-55 North in Jackson.

“This will have a complete new prototypical design, which is the current look Outback is going with now.”

J&R Restaurant Group is based in Jackson and owns eight Outback Steakhouses, six in Mississippi and two in west Tennessee.

— Frank Brown, MBJ staff

Prototype drawing of the front view of the new Outback Steakhouse planned for Flowood. (Courtesy of J&R Restaurant Group)

GULF COAST

GOVERNMENT

Blue Rose Estate Sales opens in Bay St. Louis

Gov. Bryant proclaims November as Innovation Month in Mississippi

BAY ST. LOUIS, Mississippi — Blue Rose Estate Sales is now open at 442 Main St., where Loiacano’s Gym was located. Jul Lee Dedeaux is manager and partner along with Herb Pursley and Philip LaGrange.

Dedeaux said the store carries high end, unique home decor and furniture including light fixtures and chandeliers plus some jewelry. “I do take select consignments as well,” she said.

The 4,200-square-foot store is filled with collectable glassware and china, Carnival glass, china made by Nippon, Noritaki and Havilland, chandeliers, armoires, antique sideboards and library tables. There’s also unique, hand-painted upcycled furniture painted by Herbert Pursley, who is a local artist The Blue Rose Estate Sales partners had three antique stores pre-Katrina that Bay shoppers will remember: Court Street Station, Bay Emporium in the old Ramsey’s building and Magnolia Place mini mall at the corner of Main Street and Beach Boulevard. They opened the Blue Rose in Pass Christian as an antique store and restaurant.

Dedeaux said the merchandise is primarily from the South Florida area around Miami and Fort Lauderdale. “That’s where Phil lives and he scouts everything out,” she said.

Blue Rose also does estate liquidations, she said.

A soft opening Oct. 4 was held to coincide with Cruisin’ the Coast and since then, Dedeaux said, she’s had great response to the store. “I am so floored by the traffic we’re getting in this store. We’re in a great location and local people are buying. We have had great support from the local community,” she said.

The store is open Wednesday through Saturday from 11 a.m. to 5:30 p.m. and Sunday from noon to 5 p.m.

Details: 228-342-6015 or www.BlueRoseEstateSales.com.

— Lisa Monti, MBJ

JACKSON — While speaking today to nearly 2,000 business leaders from around the state at the Mississippi Economic Council’s annual Hobnob event, Gov. Phil Bryant proclaimed November as Innovation Month in Mississippi.

“Mississippi’s economy grew by 2.4 percent in 2012, marking the first time the state’s economy surpassed $100 billion,” Bryant said. “This growth would not be possible without the innovative ideas and approaches that shape a business climate that is conducive to job growth and expansion. Economic development is a dynamic team sport, which means we must collaborate and be adaptable to market changes and industry trends.”

The proclamation highlights Innovation Month events around the state, including: » Nov. 8-10: Startup Weekend Natchez at the Alcorn State University Natchez campus. » Nov. 12: Mississippi Broadband Connect Coalition’s 3rd Annual Summit in Jackson. Bryant » Nov. 12: Innovate Mississippi’s Annual Company & Investor Spotlight event in Jackson. » Nov. 12-13: Innovate Mississippi’s 14th Annual Conference on Technology Innovation with the theme, “Invent Your Future,” in Jackson. » Nov. 13-14: Pathways to Prosperity Conference for eighth graders to explore career options in Biloxi. » Nov. 17-19: 36th Annual Southeast U.S.-Japan Association (SEUS-Japan) Meeting with the theme “Success through Harmony, Tradition and Innovation” in Biloxi.

For more information about Innovation Month, to view the proclamation, or for a complete list of events, visit www.msinnovationeconomy.com.

— from staff and MBJ wire services

ECONOMIC DEVELOPMENT

Kirklin replacing Thorn as convention center director VICKSBURG — The Vicksburg Convention Center is getting a new executive director.

The Vicksburg Post reports that Annette Kirklin’s hiring was announced last Friday by VenuWorks, an Iowa-based company that manages the convention center under a city contract.

Kirklin has served as director of the Southern Cultural

Heritage Foundation and Center for the past six years.

She is scheduled to start her new job on Dec. 2.

Kirklin will replace Troy Thorn, who is taking another position with VenuWorks. Last Thursday was Thorn’s last day as executive director of the convention center.

Kirklin is a Vicksburg resident who also chairs the Vicksburg Convention and Visitors Bureau’s board of directors.

She will be the third executive director for the convention center since VenuWorks signed its first management contract with the city in 2001.

— from staff and MBJ wire services

November 8, 2013

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Mississippi Business Journal

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25

INSURANCE / HEALTHCARE

Bryant may prefer Legislature instead of courts to face Blue Cross

BY BOBBY HARRISON bobby.harrison@journalinc.com

CHANEY: BRYANT CALL FOR HEARINGS ON BCBS PREMATURE

Gov. Phil Bryant may not be ending his battle with BlueCross & BlueShield, but instead may be moving the contest to a different venue — a political venue where he has more expertise — the Mississippi Legislature.

Bryant, for whatever reason, decided last week he did not want to fight insurance company BlueCross in the courtroom.

The Republican governor rescinded a portion of a controversial executive order that was requiring BlueCross to reinstate 10 privately owned hospitals across the state into its health care network.

With the rescinding of the order, BlueCross dropped its federal lawsuit challenging the authority of Bryant to issue the executive order.

But in rescinding the executive order, the first-term governor hinted the fight might not be over. “If there is no private or administrative solution to this matter, I expect legislative action during the 2014 session,” the governor said.

House and Senate Insurance committees already have had a meeting to discuss BlueCross’ decision to drop from its network the 10 hospitals owned by Florida-based Health Management Associates because of a dispute over how much the insurance company should reimburse the hospitals for treating its policyholders.

At that meeting, legislators seemed ready and willing to get involved.

“I hope they can get their disagreement Bryant solved before the session begins,” House Insurance Chairman Gary Chism, R-Columbus, said in an Associated Press story. “If it’s not solved, we’re going to have to get involved.”

It would not be the first time a fight involving BlueCross and a Mississippi hospital ended up before the Legislature. In 2004, Tupelobased North Mississippi Medical Center was locked in a dispute with BlueCross over reimbursement rates.

At the time, BlueCross contended that North Mississippi Medical Center was asking for better rates than other state hospitals. NMMC denied it was seeking a higher rate.

In 2004, by happenstance, two Lee Countians, Democrat Steve Holland in the House and Republican Alan Nunnelee in the Senate, chaired their respective chamber’s Public Health committees. Both took active interest in solving the issue.

Holland and Nunnelee, to a large extent, placed more pressure on the Tupelo medical center to reach a resolution, even to the point of Holland passing through the House a proposal to allow another hospital to be constructed in Lee County.

After intense lobbying by NMMC officials, Nunnelee eventually blocked the new hospital legislation, but in doing so, said to NMMC, “If we don’t see those signs of improvement by next January, I will be the one to introduce

BY TED CARTER I STAFF WRITER ted.carter@msbusiness.com Mississippi Insurance Commissioner Mike Chaney says in a letter to Gov. Phil Bryant that he thinks Bryant exceeded his authority in directing the Insurance Department to hold hearings on a reimbursement impasse between Health Management Associates and Blue Cross and Blue Shield of Mississippi.

“I am deeply disappointed that you did not rescind Sections 1,2,3 and 6 of this order to the extent to which it directs action by the Mississippi Insurance Department,” Bryant wrote in the Oct. 31 letter.

Bryant waded into the reimbursement dispute last week with an executive order for Blue Cross and Blue Shield to reinstate the Health Management Associates hospitals whose contracts it severed on Sept. 1. With a loss in a court challenge from BCBS, Bryant backed off the reinstatement order. But he kept the part of the order that directed the Insurance Department to investigate Blue Cross’ provider viability and to conduct hearings on the issue.

Chaney said he is investigating the viability of Blue Cross Blue Shields’ provider network on his own volition. But he added that Bryant’s order for the hearings “contradicts certain provisions of the Mississippi Insurance code.”

A hearing can’t be held unless the investigation concludes a violation of the Unfair Trade Act has occurred, according to Chaney the commissioner.

“If violations are proven, we will make all remedial action available,” Chaney said in his letter.

Chaney noted that he wants to know specifically what violations the governor had in mind when he alluded in his executive order to a violation of “other laws.”

“We have requested that you provide us with any evidence of such violation and any evidence of an Unfair Trade Practice violation,” Chaney wrote.

He promised Bryant a copy of the report on his examination of BCBS’s provider network.

He further promised that the investigation will be “an in-depth and vigorous review.”

Health Management Associates sued BCBS in June on a claim the insurer owes it $19 million in additional reimbursements. BCBS reacted by severing its ties with HMA. The hospital group is continuing to treat the tens of thousands of BCBS policyholders at in-network rates but insists it can’t continue do so for much longer.

A crack recently occurred in the impasse when Blue Cross agreed to readmit four HMA hospitals –Gilmore Memorial Medical Center in Amory; Northwest Mississippi Regional Medical Center in Clarksdale; Tri-Lakes Medical Center in Batesville; and Woman’s Hospital in Flowood – to its provider network. HMA initially balked at the reinstatement, saying it did not like the terms under which BCBS made it.

Bryant said he believes he could have prevailed against BCBS’s attempt to invalidate his order had he received a hearing the full court. He noted, though, that he thinks more progress can be made on the issue outside of court.

the bill. It’s OK for you to be big, but it’s not OK for you to act big.

“You need to act like the small-town institution you once were.”

Eventually, BlueCross and NMMC settled their differences and the Legislature dropped the matter.

This time around, the Legislature might be putting more pressure on BlueCross, thanks in part to a massive public relations plan undertaken

by HMA. Plus, there is a perception by some that BlueCross, by far the largest insurer in the state, is acting as the bully. Sen. Hob Bryan, D-Amory, has taken umbrage at BlueCross’ actions of dropping HMA hospitals, including Gilmore Memorial in Amory, after HMA filed a state court lawsuit against BlueCross, claiming the insurance giant was not making a full reimbursement to its hospitals.

Bryan said he was not taking sides over the reimbursement rate issue, but was upset that BlueCross dropped HMA hospitals for pursuing in court grievances against the insurance company.

BlueCross officials have contended that HMA is asking for a better rate than other Mississippi hospitals receive and that politicians should not get

involved in a dispute between two private companies. BlueCross maintains the contract the two sides agreed to gives either the side the right to terminate it.

But Bryant and Democratic Attorney General Jim Hood both argue that state law requires BlueCross to provide adequate health care access to the policyholders in its network. Because of that law, BlueCross has reinstated four primarily rural HMA hospitals, including Gilmore in Amory, in its network at least partially at the behest of Insurance Commissioner Mike Chaney.

Plus, politicians say BlueCross, once a nonprofit but now a mutual company, which means it is owned by its policyholders, has such a large share of the market that it has near-monopoly status and must be treated differently than most private companies.

According to the attorney general’s office, BlueCross insures 81 percent of the large group market, or large employers in the state, 73 percent of the small groups and 57 percent of the individual market.

Those large numbers also guarantee the activities regarding BlueCross catch the attention of politicians.

ECONOMIC DEVELOPMENT

Report offers good news on manufacturing activity A survey of manufacturers across the Southeast is offering some good news.

Manufacturing activity in the Southeast climbed in October, pushing the monthly index to 50.4 and narrowing the gap with the National PMI, according to the Southeast’s

Purchasing Managers Index (PMI) report released by Kennesaw State University’s Econometric Center in the Michael J. Coles College of Business.

According to the report, the 1.9-point increase in the Southeast PMI to 50.4 was based primarily on the strength

of new orders and employment. The National PMI increased by 0.2 points to 56.4 in October.

“The Southeast PMI experienced increases in all of the underlying components of the index, except for a 2.6-point decrease for supplier delivery time,” said Don Sabbarese, di-

rector of the Econometric Center and professor of economics at Kennesaw State. “In comparison, the national index recorded higher readings in new orders, production, employment, finished inventory and supplier delivery time.”

Six Southeastern states — Alabama, Florida, Georgia, Louisiana, Mississippi and Tennessee — are included in the Econometric Center’s monthly regional report.

— Ted Carter, MBJ staff

26 I Mississippi Business Journal I November 8, 2013

» MISSISSIPPI LEADERS by Martin Willoughby

Providing IT and hope Glidewell leads Think Anew to healthy growth

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recently read an article in CNN/Money that Mississippi ranked in the Top 10 of new entrepreneurial activity based on the Kaufman Index of Entrepreneurial Activity. That was an encouraging statistic and a refreshing change from the usual news reports on Mississippi. I have worked with a number of Mississippi entrepreneurs over the years, and I am always encouraged by the vision and passion of these individuals. I recently had the opportunity to learn about another Mississippi entrepreneurial leader – Don Glidewell. Glidewell, CEO and founder of Think Anew, founded his IT managed services company in 2007 and now has over 20 employees and customers in 13 states.

Glidewell grew up Corinth, Miss., and faced some early challenges. His parents both struggled with health issues and his father passed away when Glidewell was a teenager. His career began with Caterpillar Inc., and during his ten year tenure with them, he was nominated by his colleagues to serve as team leader of seven different teams. He shared, “Caterpillar gave me the training, education and support I needed to be a successful leader. They also gave me hope and inspiration.” He moved to the Jackson area in 1999 to work for Magnolia Management – a long-term care company.

During his time with Caterpillar and Mag-

Up Close With ... Don Glidewell Title: CEO, Think Anew Favorite Books: The Bible First Job: ”Cleaning public restrooms at gas stations” Proudest Moment as a Leader: ”Every time our team receives a letter of recommendation from one of our clients” Hobbies/Interests: ”Flying, fishing, hunting, golf, involvement with friends at Pinelake Church, serving on the board of the Better Business Bureau, and spending quality time with my family: Sara, Trevor, Maddie and Roxie”

nolia Management, he honed his technology skills and went on to work for several other companies in the health care field.

Hurricane Katrina, which had landfall on Aug. 29th (Glidewell’s birthday), was a turning point in his life. He immediately volunteered to help rebuild on the Gulf Coast. He said, “When I got to the coast I saw the devastation – and it changed my life forever – both in terms of the tragedy - and the way people united and rallied to care for each other and recover.” During this time, it occurred to Glidewell there had to be a better way to communicate

both during and following a disaster. He leveraged his extensive background in health care IT and began working on a disaster communications telephone system.

Within two years, he had completed it and won contracts with 57 companies across the U.S. to implement it. From this, Think Anew became a leading specialty telecommunications systems provider.

This great start allowed Glidewell to lead his company to become a full service IT managed services provider with a 60 percent growth rate from referrals alone.

Glidewell attributes his company’s success

“It starts with providing them some measure of hope.”

Don Glidewell CEO, Think Anew

to the principles of laser focus, a passion for customer service, and hiring the best home-grown state talent possible.

Glidewell emphasized, “In my opinion, our state has some of Martin Willoughby the best human capital in the world from the standpoint of ‘every day common sense’ and taking pride in caring for and doing what is right for customers – and one another.”

Having risen up from challenging circumstances, Glidewell has thought a great deal about how to elevate others. He shared, “I think a lot about how best to provide someone with hope. There’s no one element as hope stems from a combination of variables. However, a core ingredient is through education – not only ‘book smarts’ – but helping them see it is possible to rise from humbling, challenging positions and be successful and do great things.” He believes that as a business leader it is his duty to lead by example and allow fellow Mississippians to see first-hand that you CAN become more than the labels placed on you by others. He noted, “It starts with providing them some measure of hope!”

I agree with Glidewell’s thoughts. In fact, my goal in writing this column is to share Mississippi success stories that I hope will inform and inspire others. I am personally encouraged by Glidewell’s success, and I appreciate his servant heart and interest in elevating others.

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.

Inside one of India’s slums, there’s hard work and heartache

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» Behind the Beautiful Forevers: Life, Death, and Hope in a Mumbai Undercity

By Katherine Boo Published by Random House $27.00 hardback

ndia, the rising economic superpower still mired in many problems from its past, is home to 1.2 billion of the earth’s human inhabitants and one-third of the world’s impoverished people. Roughly 55 percent of India’s children suffer from malnutrition. In a land where the promise of a brighter economic future beckons, and signs of flashy progress abound, many Indian citizens, both young and old, still struggle to just survive.

Journalist Katherine Boo’s nonfiction National Book Awardwinning Behind the Beautiful Forevers takes us inside an Indian no-man’s-land, providing a real-life account of those struggles. Boo, a staff writer for The New Yorker and former reporter for The Washington Post, lived in India for three years to write this book, getting to know the lives and personalities of those who call home a swampy Mumbai slum near the newly renovated international airport and a row of gleaming, glitzy hotels.

The slum’s name is Annawadi, where 3,000 souls cram

themselves into 300 makeshift hovels next to a lake of sewage.

Many work from before dawn until after dark in dangerous, dirty, temporary jobs. Despite the evidence of the growing economy all around them, permanent work is hard to find for many of the slum-dwellers, thanks in part to India’s notorious caste system and to corruption around every corner.

A smart, driven teenager named Abdul serves as the book’s main character. He works tirelessly sorting garbage to resell to recyclers. It’s filthy, frustrating work, but young Abdul is his family’s primary earner, supporting his mother, father and eight

siblings. His work has managed to improve his family’s standard of living relative to those around them in the slum, both a blessing and an ongoing weight on Abdul’s shoulders.

Boo faithfully tells Abdul’s story, as well as his family’s and his neighbors’ stories, making you forget from time to time that she’s not writing fiction. In fact, in the first few paragraphs of the book, an event happens which shapes the narrative in such a way, you’d swear she made it up. (But she didn’t.)

Boo’s a true journalist here, reporting the facts, and not openly inserting her opinions about India’s wide economic disparity, about the excessive wealth which exists right alongside excessive pain and suffering, about the rampant corruption that infects everything. She lets you draw your own conclusions, through the stories of those living in Annwadi. And while there’s definitely heartbreak, it’s not all bad in the slum. There’s hope in Annawadi, and a striving perseverance that can inspire.

— LouAnn Lofton, mbj@msbusiness.com

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