MBJ_Nov21_2014

INSIDE — Analyst: KiOR Columbus plant may end up sold as scrap, Page 8

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MBJ FOCUS

YEARS

Law & Accounting

1979

www.msbusiness.com

2014

November 21, 2014 • Vol. 36, No. 47 • $1 • 16 pages

ECONOMIC DEVELOPMENT {Section begins P 9}

» Tax professionals need a crystal ball for year end advice.

The List {P 00} » Tax Preparers FINANCE {P 5} » State’s new banking chief, Charlotte Corley has deep roots Politics {P 2} » Gov. Bryant’s budget targets county, city road and bridge repairs

Columbus could be site for $1.2B aluminum plant ning to build a $1.2 billion, aluminum mini-mill “in the Southeastern United States.”

While not naming the exact location in the release, the company has applied with the MissisBy JACK WEATHERLY sippi Department of Environmental Quality for jack.weatherly@msbusiness.com permission to prepare a site on the TennesseeTombigbee Waterway at Columbus.

Pittsburgh-based American Specialty Alloys isThe 1.4 million square foot plant will annusued a news release Monday saying that it is plan-

» Gov. Phil Bryant: This is a very exciting proposition for the state of Mississippi

ally produce 600 tons of flat-rolled aluminum used in the manufacture of vehicle bodies, a trend boosted by the decision to use aluminum in the manufacture of the 2015 Ford F-150 pickup. The switch from rolled steel to aluminum will be done in order to meet moreSee

ALUMINUM, Page 2

AN MBJ FOCUS

ENVIRONMENTAL REGS Rollback might not be best move for Republican Congress — Page 9

» Wally Northway is ending a ‘great ride’ chronicling Mississippi’s business stories

More, P 4

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

2 I Mississippi Business Journal I November 21, 2014 TRANSPORTATION

Bryant’s budget targets county, city road & bridge repairs

By TED CARTER ted.carter@msbusiness.com

Gov. Phil Bryant’s proposed fiscal 2016 budget allocates $52 million to counties and cities for road and bridge maintenance, but leaves it to legislators to hash out an allocation for repairs on state roads and bridges.

Bryant’s budget message proposes the $52 million as a follow-up to last year’s $32 million earmark for the Office of State Aid Road Construction. “With such an appropriation, our local roads and bridges will be better maintained and slowly restored,” Bryant said.

The governor’s budget narrative acknowledges that “improvement of our infrastructure is a long-term issue that we must address.”

Legislators are expected to put off a comprehensive solution to the state’s $1 billion-plus backlog of road and bridge needs until the 2016 session. The Mississippi Economic Council’s Transportation Committee has pledged to present lawmakers a thorough review of transportation needs and how to pay for them. The review will take another year, said Sander-

COLUMBUS

son Farms’ CEO Joe Sanderson, chairman of the MEC committee.

Meanwhile, Senate Transportation Committee Chairman Willie Simmons plans to pursue a bond issue for emergency repairs of deficient bridges, many of which Bryant are in the Delta and used heavily for transporting crops. Legislative leaders appear more attentive to pleas for help this year than in previous years, he said.

“Leadership has a keen and listening ear” going into the 2015 session, Sen. Simmons said.

He said he is encouraged by the Mississippi Department of Transportation’s decision to do emergency shoring up of crumbling bridges along Mississippi highways 6 and 32, though the work that is under way will take two to three years to complete.

Simmons conceded the difficulty of finding tens of millions of dollars for additional bridge work when the state has pressing demands for more spending on health-care, education and corrections.

Continued from Page 1

stringent environmental standards.

The first phase of the plant is expected to be completed in late 2016 and will employ between 650 and 850 when full operations reached six months later.

About 2,000 construction jobs will be created.

The release has a 662 area code, which is primarily

Special to the Mississippi Business Journal

Many of Mississippi’s bridges may look fine from the top, but are in deplorable condition underneath.

He also noted, though, that of the $927 million budgeted last year for MDOT, only a small amount went to new construction and maintenance.

Until two years ago, the Legislature would cover transportation maintenance through bonding. “Now we are appropriating annually,” he said.

Mike Tagert, North District MDOT commissioner, said any support he lends Simmons’ plea to bond bridge maintenance would hinge on the money going to cover long-term needs. He doesn’t want

ever, I can say that this is a very exciting proposition for the state of Mississippi."

The first aluminum F-150 rolled off the assembly line last week at Ford’s Rouge factory at Dearborn, Mich., where Henry Ford began building the Model A nearly 90 years ago.

Robby Wilbur, spokesman for the Mississippi Department of Environmental Quality, said that two air permits were pending for the company, and that con-

Robby Wilbur, spokesman for the Mississippi Department of Environmental Quality, said that two air permits were pending for the company, and that construction could not begin until they are issued. for north Mississippi, and a Columbus prefix. A call to American Speciality Alloys was not returned. According to an Associated Press story, the company incorporated in Mississippi in March and has listed a Columbus address.

The Mississippi Development Authority declined to comment on the project on Tuesday. Gov. Phil Bryant said at a gathering of the Madison County Economic Development Authority that day at the Country Club of Jackson he could not make "any specific comments about an ongoing economic development issue. How-

struction could not begin until they are issued.

The aluminum F-150s are expected to arrive in showrooms in December.

Steve Graham, Internet manager for Gray Daniels Ford in Brandon, said Tuesday that he had just returned from Memphis, where he and other dealer representatives attended a seminar introducing the new F-150.

He said he was impressed with the strength of the new body, which he said is stronger as well as being lighter than rolled steel.

to spend bond money for repairs that would need to be repeated before the bond is paid off, he said.

The need for long-term help is obvious, said Tagert, who added the $52 million Bryant is proposing for local assistance “will have zero impact on our state bridge situation.”

While the cities and counties “certainly need some help,” Bryant’s proposal “does not address the bridges that are injuring our commodities harvest,” he said.

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RETAIL

Can Metrocenter rise from the ashes? Again

By TED CARTER ted.carter@msbusiness.com Jackson's 36-year-old Metrocenter Mall is set for yet another second act.

This one will be stage managed by a group of veteran Kansas retail developers from Colby Capital and Walter Morris Cos. as well as Jackson commercial real estate broker Scott Overby. They have adopted the name Jackson Commons, LLC. The Kansas developers have redone distressed retail centers in nine states and see an opportunity to position the mall and the nearly 90 acres on which it sits as both a local draw with frequent visits from nearby Southwest Jackson residents and periodic visits from shoppers living farther away.

The owners say they are banking on the mall's resurgence through exterior and interior improvements, a strong mix of large and small retail stores, a food court offering an A-list of local restaurateurs, a possible movie theater and other family entertainment draws such as a bowling alley or skating rink.

Representing forecloser First Credit Bank of Los Angeles, Overby had the 548,000-square-foot enclosed mall on the market for $6.5 million for several months starting last fall. By midsummer he had the property under contract — to himself and his Kansas partners.

Overby, referring to his firm The Overby Co., said: “We had such a familiarity with the mall we were able to get a good grasp of it.” The partners' “assessment of it and ours was very similar: an extremely wellbuilt, solid property.”

Before putting the property back on the market after First Credit Bank's 2012 foreclosure on Texas-based owners Jackson Metrocenter Mall, Ltd., Overby had to catch up on a large amount of neglected maintenance and undo the damage from 10 years of flawed decision making by the former owners.

Walking through the mall before agreeing to take on the listing, “My first response was 'no',”Overby said in an October 2013 interview.

The mall's “downfall was bad management from the former owners who bought it in 2002,” he said.

One of their worst mistakes, he said, was failing to step-up marketing after the loss of a couple of anchors, giving the impression the mall was dying a little more than eight years after an extensive renovation. “They should have done a better job advertising what was still in the mall. They were still over 75 percent occupied.”

Today the mall is about 40 percent leased, with around 60 tenants, including anchor Burlington Coat Factory, some national and regional

ENGINEERING

Former airport chief joins Waggoner as consultant The recently retired CEO of the Jackson Municipal Airport Authority has signed on with Waggoner Engineering as a consultant with the firm’s strategic services team.

Dirk Vanderleest, who retired Sept. 30 after 24 years as head of the city agency that oversees Jackson Wiley Medgar Evers International Airport and Hawkins Field, will assist Waggoner in a host of areas.

These include economic development work and multi-modal infrastructure planning and development

retailers, city administration offices, a police precinct headquarters and a Hinds County sheriff's substation.

Getting the mall to today's occupancy levels required removing mildew throughout the lower floor and repairing other damage caused by the former owners shutting down air conditioning on the vacant floor, Overby said.

Over its 10 years of ownership, the Texas group's cutting of corners “erased over half the mall's value,” he added.

Nonetheless, the mall's chiller is in good working order and the roof is in good shape, according to Overby. “The new owners have a mall that is ready to go,” he said.

Tyler Oliver, a Colby Capital principal and managing partner of Jackson Commons, said elements are in place to reverse Metrocenter's fortunes.

“When you have a well-built property, a demand for retail and a community eager to support growth and redevelopment, you have everything you need to correct years of mismanagement and neglect,” Oliver said in a press statement Tuesday.

Work on the roads around the mall and exterior cosmetics will come first, Overby said, and be followed by exterior cosmetic upgrades.

“Then we'll decide on interior changes” based on leasing, he added, though he is certain an overhaul of the food court will be among the changes. “We have some [local] restaurants in mind that we are going to offer lease arrangements that they can't pass up.”

As a bank-owned property, the mall's improvements in the last year or so have largely been aimed at stabilizing the property. Now, with owners able to invest in the structure and its surrounding, extensive upgrades can be made, Overby added.

Meanwhile, Jackson's city government will be a key partner in the Metrocenter's rebound, Overby noted, citing the need to remove city restrictions on signage and new development such as a movie theater and other family entertainment venues on the mall's outside property.

A lot of the restrictions came in what Overby described as hastily made zoning decisions as part of former Mayor Harvey Johnson's Go-80 Initiative, a strategic plan to revitalize Jackson's U.S. 80 corridor.

City officials have indicated a willingness to redo the sign ordinance to allow Metrocenter to advertise its retail and restaurant offerings, according to Overby.

“The zoning needs to be tweaked” and the signage ordinance modified, he said.

Mayor Tony Yarber said in a press statement Tuesday that he is eager to see the Metrocenter development plan. “This is a progressive group of investors,” he said, adding he is encouraged by the new owners' willingness to “clean up the area to make it presentable to the current

with a specialty in aviation and airport infrastructure.

Waggoner said Vanderleest will also be involved in capital improvement planning and strategic planning, especially related to transportation/aviation and airports.

Venderleest The Airport Authority, meanwhile, is awaiting a list of candidates from ADK Executive Search, a Jacksonville, Fl., company that specializes in helping airports, especially medium size ones, fill executive positions.

tenants and enhance efforts to recruit new tenants.”

Overby said Metrocenter's tax bill is nearly $100,000 a year. With the improvements to come, the taxable valuation can be expected to rise. A tax increment district, or TIF, could help the new owners bankroll some of the improvements through rebating some of the tax money derived from the higher valuations .

“We have talked to the City about exploring the possibility of a TIF,” Overby said.

Also, since the mall is situated within a designated redevelopment zone, the new owners may be able to get assistance from the Jackson Redevelopment Authority. “We've talked to the JRA. They're on board,” Overby added.

“The consensus from everybody we speak to is that this one project will have a major impact.”

The name Metrocenter Mall will remain, Overby said, “because it is exactly what we want it to be — the metrocenter.”

He hopes to land a supermarket as well as a health clinic to join a soonto-open pediatric dentistry office on the premises. These would help make the mall a local draw, while a mix of medium and large retail will help to extend its appeal beyond Southwest Jackson, Overby noted.

“We see a place some people will come to two or three times a week and one others will come to every two or three months.”

Electronic counters at doorways into the mall show the Metrocenter has drawn slightly more than one million visitors over the past 12 months, according to Overby. Halloween night drew around 8,500 visitors for a Hinds County Sheriff's Department “trunk or treat” party, he said, citing the turnout as evidence “the community will come.”

For now, added Overby, the task at hand is preparing the mall for Santa's arrival the weekend after Thanksgiving.

HEALTH CARE

FIRE

UMMC renovating facility to serve Ebola isolation

Ag museum to be closed through November

JACKSON — The University of Mississippi Medical Center is renovating a vacant building to serve as an isolation and treatment unit in the event of a confirmed or probable Ebola case in Mississippi.

The stand-alone structure is removed from other patient-care facilities on the Jackson campus.

UMMC officials say patients can be sequestered and physically isolated the case from the rest of campus. The renovations will take two weeks.

JACKSON — The Mississippi Agriculture and Forestry Museum is expected to remain closed to the general public until Dec. 1.

Three buildings — a children’s barnyard, a veterinary educational building and a maintenance shed — were destroyed. Among the burned items were 100-year-old veterinary artifacts, maintenance tools and golf carts.

— from staff and MBJ wire services

4 I Mississippi Business Journal I November 21, 2014 MISSISSIPPI BUSINESS JOURNAL

The next chapter » Wally Northway ending a ‘great ride’ chronicling Mississippi’s business stories

By TED CARTER ted.carter@msbusiness.com

G

reenville native Wally Northway had written a lot of songs but never a news story when he ventured into newspapering at the Mississippi Business Journal in 1997 after a career as a college administrator.

A few thousand stories later, the soonto-retire business journalist can lay claim to a career well spent. “I always felt like it was important work,” Northway said during a recent break from compiling the newspaper’s early morning web postings and reporting on the activities of some of Mississippi’s most interesting entrepreneurs and business professionals.

“We’re the only statewide paper dedicated to business in Mississippi,” he said of the weekly publication that has been the state’s premier source of business news for 35 years.

“I don’t regret a minute of it. ... It’s been a great ride. I’ll tell you that,” said Northway, who also has devoted a lifetime to playing guitar and writing songs, mostly “love ballads.”

“Growing up in the Delta you pretty much have to like music,” said the 1978 Greenville High School graduate.

“I never was a great guitar player. I felt my end of it was as a songwriter,” added Northway, author of the anthem “God Save the Delta.”

Northway’s entry into journalism came via Joe Jones, former MBJ owner and publisher, who brought the former William Carey University recruiting administrator on to tackle a tough advertising sales job.

“Wally was a friend of my brother’s,” said Jones, now semi-retired as a CPA and entrepreneur. “We had a publication that needed someone to sell it.”

The special pub didn’t have much going for it and after a few months Jones decided to scrap it.

But what would he do with Northway?

“I had gotten pretty impressed with Wally and asked him to stay” on as a news staffer, Jones said. “I put him in the newsroom and he took off. The rest is history.”

Jones said he “liked Northway’s character,” and noted: “I don’t want to let a guy with good character get away just because he lacks experience.”

Jones bought the paper after its former owners hired him to seek out potential

buyers. The more he studied the paper’s operation, the more he became convinced of its business viability and its potential to become the voice for business in Mississippi. He soon presented himself as the best potential buyer.

Jones’ faith in the paper created a loyalty among the MBJ crew that endured for his dozen years of ownership, Northway recalled. “I can’t say enough about Joe Jones and how I was treated. He always treated us like family.”

When Northway shifted from sales to the news reporting, he had some familiarity with the media from a stint years earlier as William Carey’s communications director. He had taken on that job after receiving an MBA there.

In between, though, he had spent a decade at William Carey’s coastal Mississippi campus as director of financial aid and recruiting.

The inheritance of his great-great grandfather’s Civil War diary detailing ROSS REILY / The Mississippi Business Journal

“I put him in the newsroom and he took off. The rest is history.”

— Joe Jones his days as a foot soldier with Robert E. Lee’s Army of Northern Virginia led him to Jackson. Northway planned to write a book on the great-great grandfather’s experiences. The state capital would provide easier access to archival material relating to the war and his ancestor’s participation in it, Northway decided.

The book on the long-ago Rebel awaits completion.

In the meantime, Northway has chronicled a lot of Mississippi’s business growth and some of its human tragedies.

Mississippi Business Journal Senior Writer Wally Northway has spent the better part of 16 years reporting the business happenings in and around Mississippi. Northway is retiring at the end of November.

“Nissan was really big,” he said of the 2002 arrival in Mississippi of the Japanese automaker. In the months and weeks before the official Nissan announcement, “We knew something big was happening but we were not quite sure what.”

Northway said he chanced upon the website of a small Alabama paper that was reporting Nissan had selected Mississippi over Alabama.

“I didn’t break the story but I broke it to the Mississippi Business Journal,” which quickly confirmed the story and broke it to the rest of the Magnolia State, Northway said.

“For once in my life I went in and said, ‘Stop the presses!’ Even though we didn’t have any presses.”

In 2006, the death and destruction of Katrina left Northway and the rest of the MBJ crew dazed and uncertain how to report a tragedy of such immense magnitude. “The most poignant and biggest story easily was Katrina,” Northway said of his more than decade-and-a-half at the business newspaper.

Several days after Katrina, the crew set about working toward yet another press

deadline. At editor Jim Laird’s directions, Northway said, the staff went through the paper and took out any pre-Katrina news about the coast and the people there, “because they may not be with us anymore.”

That “sent a chill,” he recalled.

Northway has worked the last half dozen years under the leadership of MBJ Publisher Alan Turner. “Wally Northway has been a great member of the MBJ team for longer than any other employee,” Turner said.

“He has always shown a willingness to work hard and help us make the MBJ the best publication it can be. But Wally is much more than just a great employee; he’s a great friend to all of us, and he’ll be truly missed.”

If you’ve received a phone call from Northway over the years, you have heard his signature introduction: “Have I caught you at a bad time?”

Northway recalled he borrowed the intro from a fellow staffer during his greenhorn period. But his closing signature phrase did originate with him: “Come on by. The coffee is free.”

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BANKING & FINANCE

State’s new banking chief has deep roots » Banker’s daughter Charlotte Corley joined Department of Banking and Consumer Finance soon after graduating from Mississippi State

By TED CARTER ted.carter@msbusiness.com

Mississippi’s bankers should have no difficulty recognizing the name of the state’s new banking commissioner.

Gulfport native Charlotte Corley has been a bank regulator in Mississippi her entire working life, having joined the Department of Banking & Consumer Finance as a bank examiner in 1985. She became banking division director in 2000, after a 13-year stint as a field examiner.

She most recently served as deputy commissioner, and is credited with helping the department achieve one of the highest accreditation rankings the Conference of State Bank Supervisors awards state banking agencies.

The ranking, Corley said in Gov. Phil Bryant’s press release on her appointment, “is a direct reflection on our excellent staff.

I am truly honored by this appointment.”

Corley went to work for the banking de-

partment a year after receiving a bachelor of business administration degree with a banking and finance major from Mississippi State University. Bryant appointed her to fill the unexpired term of Jerry Wilson, who took over the commis- Corley sioner’s post in mid 2012 upon the retirement of longtime commissioner John Allison.

Wilson had retired as president and CEO of Macon-based BankFirst when Bryant asked him to take the commissioner’s job.

Wilson, who is approaching 70, resigned at the end of September to spend more time with his family, the governor’s office said.

Corley’s appointment, which is to run through July 2016, must be confirmed by the state Senate during the 2015 session.

Growing up in a banker’s family, Corley decided early on she would go into banking.

But unlike her father, the late Jim Nicholson, who retired from Hancock Bank in the late 1980s, she wanted to work the other side of the fence as an examiner. “I was just always drawn to the regulatory side,” said Corley, who graduated from LSU’s School of Banking of the South in 1992 and the American Bankers Association National Graduate Trust School, Northwestern University, in 1996.

Corley’s department of 63 employees regulates everything financial in the state except for insurance, securities and prepaid funerals.

With today’s technology, the department’s 40-plus examiners have far less need to be on-site at banks to do their work. To accommodate them at department headquarters, the department recently moved from the Capitol Complex’s Woolfolk Building to larger quarters in north Jackson.

The department oversees 70 state chartered banks with total assets approaching $60 billion, a level that received a sizeable boost from Hancock’s acquisition of Louisiana’s Whitney Bank a couple of years ago. “When I came into the banking division [as director], it had about $20 billion,” Corley said of the asset levels 14 years ago.

“Not a lot has changed since I came out of the banking division,” said Corley, who took over last year as deputy banking commission upon the retirement of Theresa Brady.

“One of the things I’m trying to address is staff retention,” she said, a task made somewhat easier by keeping examiners at department headquarters for exams instead of in the field.

Mac Deaver, president of the Mississippi Bankers Association, described Corley as “extremely well qualified.”

The MBA looks forward to working with such an effective and knowledgeable chief regulator, Deaver said. “She has played a major role in making our state’s banking department one of the most highly accredited in the country.”

In her three-decade career, Corley has “effectively dealt with diverse economic conditions, tremendous growth in technology, and the emergence of diverse regulatory issues,” he added.

Corley is not Mississippi’s first woman banking commissioner. But she was hired by the first one, Jean Porter.

HOLIDAY SEASON

Demand outstripping Christmas tree supply ACROSS MISSISSIPPI — Consumers who want Mississippi-grown Christmas trees to deck their halls should shop early for the best selection every year.

“Choose-and-cut Christmas tree production in Mississippi is fairly flat because there are growers each year who retire,” said Stephen Dicke, a forestry professor with the Mississippi State University Extension Service. “Growers still in the business are producing more trees each year, but demand in heavily populated counties is much higher than the supply of trees.”

Mississippi had about 85 growers who sold approximately 29,000 trees in 2013. The estimated market value of these trees was $1.45 million. Dicke said he expects these numbers to remain steady for 2014.

Harsh weather conditions put increased pressure on the already tight market. The extreme cold in early 2014 caused some growers to lose young trees, and a rainy spring and summer increased disease pressure from fungus, Dicke said.

“Growers start as soon as the beginning of January replanting the number of trees that were sold, and extreme cold for extended periods like we had at the beginning of the year is tough,” Dicke said.

Don Kazery Jr. and his wife Terri manage about 800 trees on their 3acre, choose-and-cut farm just outside Clinton in Hinds County.

“We lost about 70 trees this year during the extreme cold,” Don Kazery Jr. said. “We also had a lot of mortality in our plantation from high winds.”

Christmas tree producer Don Kazery Jr., left, discusses agricultural practices on his Hinds County farm with Stephen Dicke, a forestry professor with the Mississippi State University Extension Service. (Photo by MSU Ag Communications/Susan Collins-Smith)

— from staff and MBJ wire services

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

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

Website: www.msbusiness.com November 21, 2014 Volume 36, Number 47

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 JACK WEATHERLY Staf Writer jacks.weatherly@msbusiness.com • 364-1015 LISA MONTI Contributing Writer mbj@msbusiness.com • 364-1018 BOBBY HARRISON Contributing Writer mbj@msbusiness.com • 364-1018

MBJPERSPECTIVE November 21, 2014 • www.msbusiness.com • Page 6

OTHER VIEWS

Mississippi wastes minds in many pre-k children Mississippi’s education deficits lead to discouraging educational attainment liabilities long term for many people, but no other shortfall of investment in individual opportunity is greater than the woeful neglect of educating pre-kindergarten children in the years of greatest brain development.

While a consensus is emerging in Mississippi on the importance of pre-K, funding has been only a trickle.

Even with long-term research proving that people’s brains grow most rapidly during the first three to five years of their lives, some Mississippians either ideologically oppose public pre-K education or express no interest.

The cruel deprivation strikes hardest in

the parameters of poverty, especially among children of undereducated parents. The experience in Mississippi, by the Barksdale Reading Institute and others, confirms the tragic disadvantage of children who have not been thoroughly exposed to extensive vocabulary or taught anything at home in those earliest years.

Lynn Darling, a well-known pre-K educator and scholar at Ole Miss, describes poverty as a “brutal force” denying children what educationally they need most.

Until 2012, Mississippi was the only Southern state not to spend any public money on pre-K. During each of the past two years, it has spent $6 million, or $3 mil-

» THE OUTSIDE WORLD

» EDITOR’S NOTEBOOK

Good politicians care for all constituents

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To place orders, temporarily stop service, change your address or inquire about billing: Phone: (601) 364-1000, Fax: (601) 364-1035, Email: charina.rhodes@msbusiness.com, Mail: MS Business Journal Subscription Services, 200 N.Congress Street, Suite 400, Jackson, MS 39201 POSTMASTER: Send address changes to Mississippi Business Journal, Circulation Manager, 200 North Congress Street, Suite 400, Jackson, MS 39201 To submit subscription payments: Mail: MS Business Journal Subscriptions Services, 200 North Congress Street, Suite 400, Jackson, MS 39201.

No material in this publication may be reproduced in any form without the written consent. Editorial and advertising material contained in this publication is derived from sources considered to be reliable, but the publication cannot guarantee their accuracy. Nothing contained herein should be construed as a solicitation for the sale or purchase of any securities.

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

lion each on two initiatives – the Early Learning Collaborative grant program and Mississippi Building Blocks.

Neighboring Louisiana spends nearly $86 million more each year and Tennessee almost $80 million more. The problem is not beyond resolution. It requires civic and legislative will – and financial adequacy.

Others say churches and community groups – not the state – should be the ones to fill the void.

In the longer view, pre-K is the first important step to personal and workforce development. Education always is about perceiving what’s ahead, but Mississippi’s vision and action on pre-K education thus far have been short-sighted.

— Northeast Mississippi Daily Journal

» 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.

he good politician cares for all his constituents. He knows them and they know him (or her). He understands their needs.

They understand he is willing to put his political life on the line for their benefit.

The hired hand politician has no such relationship.

His interests are money and power. When pressured he readily abandons constituents because he truly cares nothing about them.

So, the good mayor will make decisions that are best for his whole community, not just the coalition that got him elected.

The good legislator will support and pass bills that are good for his entire district, not just the small percentage of constituents that voted for him (a 55% majority in a 65% voter turnout equals 36% of Bill Crawford registered voters and does not include unregistered adults or children in the district).

The good governor will do what is best for his whole state.

Consider Ohio Governor John Kasich, just reelected to a second term. A Fox News commentator said, “Kasich’s empathy for others is one of his strongest qualities.”

Kasich is a fiscal conservative, an adamant tax cutter, a small government champion, an effective job creator, and pro business. He is also an evangelical Christian whose pro-life actions dramatically reduced abortions in Ohio.

But, he believes the Bible calls him to do more.

“The right way to live is to make sure that those who do not have the blessings that we have, those who are beleaguered, those who have fallen on hard See CRAWFORD, Page 7

PERSPECTIVE

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times – we can’t ignore them, we have to help them, and we’re expected to do that, and I believe the Lord expects us to do that,” he said. “And it’s spelled out pretty clearly in the Old and New Testaments, consistently.”

For that reason he signed Ohio up for Medicaid expansion under Obamacare, one of a handful of Republican governors to do so. “I had a chance to bring … Ohio money back to Ohio to do some things that frankly needed to be done. And that's to treat the mentally ill, to get them across the bridge so they can get employment. The same for the drug addicted – and you know drug addiction is in every demographic, every income, every community – to treat those people, rehab them, and get them to work. And also to make sure the working poor have a system that makes sense, instead of showing up and getting their healthcare in emergency rooms.”

Not the typical behavior or policy approach for most conservative Republicans.

“I’m concerned about the fact there seems to be a war on the poor,” Kasich complained about Republican policies. “The Lord has created everyone in the image of God. Everyone deserves a chance and everyone deserves respect."

The good politician acts as a good shepherd to his constituents. » Bill Crawford (crawfolk@gmail.com) is a syndicated columnist from Meridian.

»FROM THE GROUND UP

Accelerating pace of society keeps industry busy

O

nce upon a time there was a wealthy man who purchased a race horse on the assurance that the horse would win every race. Sure enough, the horse was entered in a season of races at a regional racetrack and won every single trial.

The horse even shattered the existing record at every race that it ran in. The man was so proud that he bought a field by the nearby interstate highway and erected a barn on a spot so that all who passed by could see. On the roof of the barn he had inscribed in large letters, “This is the fastest horse this world has ever seen.”

A year later, bored without the thrill of seeing his horse in a race, he entered the horse in a local race for the purpose of warming up for bigger races. The horse came in dead last.

He returned dejected and confused. The next week two words were interchanged on the sign on the roof of the barn, to wit, “This is the fastest world this horse has ever seen. No doubt there are some in the legal world who empathize with the horse owner.

This is indeed a fast world. It is also becoming one in which laws and regulations are struggling to keep up with changes in technology and society. Three examples are offered for consideration.

The lodging industry and regulators are having Airbnb migraines. The headaches are caused by the Airbnb model which allows people to rent out rooms, entire homes or other lodging facilities directly to travelers or visitors. Customers search the Airbnb website for an interesting place to stay, email the owner, enter into a private agreement and pay through the Airbnb website. Afterwards, users rate the property and the owner, and the owner rates the users in return. It's all a very open, deregulated market. Users report experiences on the Airbnb website. Some are quite charming, such as one in which the owners rented a cabin in Alaska, went shopping for their dinner and then were de-

lighted when the owners cooked up a delicious meal for them. This writer has used Airbnb in another country and enjoyed a similar positive experience. The owner offered a nice apartment in a cosmopolitan city at a much lower price than an equivalent hotel would charge. The owner greeted my wife and me, had a gift waiting for us, gave us excellent information about local restaurants and things to do. Thus, it is no wonder that Airbnb, which went online in 2008, has over 800,000 listings worldwide.

So what is the problem with the Airbnb model? For starters, some New York landlords and property managers have allegedly converted hundreds of apartments into permanent (and illegal) hotel rooms. The New York attorney general reports that 1,406 hosts with more than two listings on Airbnb in New York City filled 36 percent of the nearly 500,000 reservations, collecting $168 million in revenue from those stays. Portland, Oregon, and San Francisco are cities that have recently taken on the issue of non-regulation.

Then there is the issue of safety, insurance and other liabilities in such transactions. Of course, the hotel industry points out that its properties generate sales taxes and create jobs.

Another model that is growing is Couchsurfing, which is similar to Airbnb though with fewer services. The Couchsurfing website reports that it has over 7 million members who are willing to share their space with others. So how does it work? According to the couchsurfing.org website, “The free service connects travelers across the globe who share experiences ranging from hosting one another in their homes to having a beer to becoming close friends and travel companions.” And guess what? One of the terms of abuse of the system is making money. That is correct. Unlike Airbnb, which encourages owners to make a little extra money, Couchsurfing.org encourages positive experiences. Readers who are over 30 may find this idea a bit unbelievable, but the younger generation is embracing it.

Transportation is another industry feeling the pain of disruption. Not so long ago, a trip by a public carrier to New Orleans, for example, meant takPhil Hardwick ing a train or bus. A traveler would go to a physical terminal or station that was equipped with restrooms and other amenities. Today, a ticket for one traveler by bus to New orleans from Jackson, Mississippi for travel on Monday, Nov. 24, 2014, is $27 on Amtrak and $25.50 on Greyhound. The Amtrak departs Jackson at 11:20 a.m. and arrives at 3:22 p.m. The Greyhound leaves Jackson at 1:20 p.m. and arrives in New Orleans at 8:30 p.m. after a transfer in Baton Rouge.

Alternatively, one could go to the Megabus website and purchase a ticket for travel on that date on that date for $19, meet the bus at the corner of Lamar and Griffth Streets, settle in on a wi-fi-equipped motor-coach and arrive in New Orleans at 6:55 p.m. The same ticket for Dec. 4 is only $10, and for Sunday, December 7, can be had for only $1.00.

However, by the time the reader reads this column the price may have gone up. That is because the Megabus model responds to supply and demand.

Federal regulators are now looking into how to regulate inner-city buses such as Megabus. Where does the consumer go when there are delays or poor service? And what if there is an accident? What about safety?

What all these things have in common, in addition to their disruption of the lodging and transportation industries, is that laws and regulations are not keeping up fast enough. That should create a field day for attorneys and regulators. » Phil Hardwick is a regular Mississippi Business Journal columnist and CEO of The Hardwick Company, LLC, which provides strategic planning facilitation and leadership training services. His email is

8 I Mississippi Business Journal I November 21, 2014

BIOFUEL

Analyst: KiOR Columbus plant may end up sold as scrap The Columbus biofuels facility (left) of KiOR Inc. was left out of a bankruptcy filing, giving rise to hopes that a buyer may be found for it. KiOR said in its Chapter 11 filing that it does intend to find a buyer for the plant.

» MDA says it is working to recoup its $75 million no-interest investment

By JACK WEATHERLY jack.weatherly@msbusiness.com

Finding a buyer for the idled KiOR biofuels plant at Columbus would be a tough sell, according to Pavel Molchanov, an equity analyst who had covered Pasadena, Texas-based KiOR Inc. until it filed for bankruptcy protection on Nov. 9.

The state will be fortunate to recoup 10 percent to 15 percent of the $69.4 million balance left in a $75 million no-interest loan it made for the plant at Columbus, said Molchanov, who is employed by Raymond

James and Associates, which is headquartered

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in St. Petersburg, Florida.

The Chapter 11 petition filed in U.S. Bankruptcy Court in Delaware left out the plant, which never produced gasoline or diesel fuel in the quantity and quality needed to make a success of the venture.

Molchanov said the loan is secured by the $218 million plant, “which even on the best of days never functioned particularly well.” It stopped producing fuel in January 2014.

At the time, it employed 100, compared with the promise to create 1,000 jobs at several facilities in the state.

The plant may well be sold for scrap, Molchanov said.

“Unfortunately, the state of Mississippi is going to be left high and dry,” he said.

Investors affiliated with Vinod Khosla, a co-founder of Sun Microsystems and lead investor in KiOR Inc., have made an offer of $15 million for the parent, according to the petition by KiOR Inc., which nevertheless said it was open to higher bids.

But none of that money would go to the state, Molchanov said in a telephone interview. Those investors are just interested in the “intellectual property — the patents, the know-how,” Molchanov said, adding to that they could get that for “pennies on the dollar.”

Molchanov likened the KiOR failure to

the collapse of Solyndra LLC, a Californiabased maker of solar panels, which received a federal guarantee on a loan of more than $500 million but filed for bankruptcy.

The government issued a report last week that says that public-sector investment in “green energy” will take in between $5 billion and $6 billion over 20 years. However, critics have said that revenue is not the same as profit and that the Department of Energy figures are misleading.

Mississippi has had its own solar-power failure. In 2010, it invested $27.7 mil- Khosla lion during the Haley Barbour administration in the Twin Creeks Technologies startup at Senatobia. Encountering manufacturing problems and what has been called unfair competition with China, Twin Creeks shut down the plant in December 2012, without reaching its goal of creating 500 jobs.

Tim Climer, executive director of the Tate County Economic Development Foundation, said Tuesday that the 85,000-squarefoot building has drawn a number of prospects, but no takers yet.

The foundation, the MDA and Entergy are marketing the facility on the website, MemphisMetro.Ms.org.

Regarding alternative fuels, Laurent Pilon, a researcher at UCLA specializing in producing biofuels from microalgae, said there are “a lot of companies … or even researchers who are overselling” their processes to create fuels, whether it's ethanol, gasoline or diesel.

“To produce larger volume is challenging.

What you can get in the small labs in small Laurent Pilon volumes is different A researcher at UCLA from what you get on large scale. … You lose efficiency.”

The Mississippi Development Authority says it is working to recoup its investment in the KiOR plant.

“MDA, along with its counsel and financial advisors are diligently working toward solutions that protect the state’s investment to the maximum extent possible in the KiOR project,” agency Chief Marketing Officer Marlo Dorsey said in an email on Tuesday.

Dorsey declined to comment further, citing a confidentiality agreement the state has signed. She would not say whom the pact is with. The KiOR loan was made during the second and last term for Gov. Haley Barbour.

KiOR Inc. announced in July that it had hired Guggenheim Partners, which is based in New York and Chicago, to help it find a buyer.

“To produce larger volume is challenging. What you can get in the small labs in small volumes is different from what you get on large scale. … You lose efficiency.”

November 21, 2014 • MISSISSIPPI BUSINESS JOURNAL • www.msbusiness.com

AN MBJ FOCUS:

LAW & ACCOUNTING TAXES

ENVIRONMENT

CPAs give helpful advice about selecting a tax preparer

By LYNN LOFTON mbj@msbusiness.com

A

Rollback of environmental regs might not be best move for Republican Congress

By BECKY GILLETTE mbj@msbusiness.com

S

ome environmental groups are warning that the Republican takeover of Congress could result in a major attack on environmental regulations. Mitch McConnell from coal-heavy Kentucky, expected to be the new Senate Majority Leader, has said his top priority next year is to rein in the Environmental Protection Agency (EPA).

But the Republican election victories won’t necessarily result in a rollback in environmental protections, said Dr. Jerry Emison, a professor of political science and public administration at Mississippi State University who was former acting regional administrator of EPA. “We have to recognize a more conservative view of the environment is going to prevail in Congress,” Emison said. “But at the end of the day, I think very little will get done because anything major has to cross the president’s desk. I don’t think this president will sign major anti-environmental action. The president has indicated he won’t hesitate to exercise executive authority to dampen any really extreme actions by Republican legislators.”

However, expect to see very energetic Congressional oversight of EPA. “That would be the classic way they would intervene,” Emison said. “There will be lots of hearings. You are also likely to see extremely restrictive appropriations for EPA. There will be use of the appropriation process to restrict EPA’s latitude.”

Hearings could be used to expose flaws in the administration of environmental programs. Emison points out that, of course, it is a lot easier to expose deficiencies in programs that have never been well funded.

Regarding one of the biggest environmental issues, regulation of greenhouse gas emissions from coal-fired power plants and other sources, Emison said there may not be that much impact because EPA has been ordered by the courts to deal with greenhouse gas emissions.

“The courts have found that carbon dioxide is an air pollutant,” Emison said. “So that is a reality that EPA will have to deal with despite whether the Congressional Republicans want it or not. EPA is under judicial order to deal with that.”

There could be danger from concluding the recent elections mean Americans favor relaxing environmental regulations.

“The mistake that the Republicans have repeatedly made on the environment in the past 30 years, whenever they have gained control of institution like Presidency or Congress, is they have misread the American public’s view concerning the environment,” Emison said. “In trying to carry out that mis- Emison reading, they have basically overplayed their hand and lost the opportunity to make meaningfully, responsible, substantive improvements to the regulatory process.”

Emison said the opportunity before the Republican majority is to make environmental regulations more effective, economic and sensible. “People want a clean environment, but they don’t want to do stupid things to get to a clean environment,” he said. “Poll after poll shows environmental protection is a core American value now. This is the opportunity the Republican Party has to do things that will improve environmental protection. If they try to dismantle environmental programs, which is contrary to the mainstream views of the American public, I despair for the Republican Party and the environment.”

EPA may have overstepped its bounds to regulate greenhouse emission, said Dr. Luke Fowler, who received his Ph.D. from Mississippi State in public policy and administration and now teaches at Valdosta State University in Georgia.

“Congress will not receptive to that in the next two years,” Fowler said. “But will the President be willing to have that fight? The President will face many fights in next two years with Congress controlled by the opposing party. Will the President be willing to prioritize climate change regulations?”

Fowler said the current divided government is not helpful to businesses and industries. They get one message from the President, another from Congress and then the possibility of lawsuits also makes business planning difficult.

“It puts businesses in a sticky situation,” Fowler said. “It is hard to develop a strategy to go forward when that is happening.”

As Fowler sees it, federal environmental regulations and See

ROLLBACK, Page 11

s the year draws to a close, tax season looms in the next few months. Finding an income tax preparer can be challenging. Members of the Mississippi Society of Certified Public Accountants, Ted Edwards, Pam Steverson and Tom Byrne have some useful advice to offer.

Edwards chairs the association's taxation committee and is with Haddox Reid Eubanks Betts in Jackson. For individuals wanting to match their needs with a CPA, he explains that the complexity of an income tax return varies greatly. “Some require only a couple of hours to prepare and some require 50 hours, or more,” he said.

“Accordingly, the needs of a taxpayer Byrne can vary greatly. To match the needs with the available opportunities, a person looking for a tax preparer should 'interview' a few preparers to try to best find someone who can meet their needs at a fair and agreeable cost.”

Edwards suggests beginning by looking at CPA firm websites that describe the services they offer to determine who you want to interview. Edwards Asking friends and family who they use may also be helpful. Then ask questions regarding experience and available resources. “The problem is that it's not uncommon for a taxpayer to not fully realize what their needs are,” he said.

“Many taxpayers think they have a simple return, when in actuality, if the return is to be prepared accurately and completely, and if tax savings Steverson opportunities are going to be explored, it's not so simple.”

Steverson has served on the association's board a number of times and is with the Meridian firm of Kemp Williams Steverson & Bernard. She says a person needs to understand their individual circumstances whether that's W-2 only, small business, itemized deductions, investment income or other.

Once that has been determined, she also says an internet search can be helpful. “Most firms in the state have a tax department,” she said. “The individual needs to pick more than one firm and request a free consultation with one of the tax professionals. This is the point when needs and opportunities can be addressed.”

A long serving trustee of the Mississippi Tax Institute and See

CPAS, Page 11

10 I Mississippi Business Journal I November 21, 2014

LAW & ACCOUNTING

GOVERNMENT

Tax professionals need crystal ball for year end advice

By LISA MONTI mbj@msbusiness.com

F

orget the calculators and computers this tax season. CPAs and other tax professionals are looking to the proverbial crystal ball as they wait to see what Congress might do in the next few months about extending tax breaks.

Jerry Levens with CPA firm Alexander, Van Loon, Sloan, Levens & Favre in Gulfport said individual taxpayers and especially the small business community are in for some frustration while they wait. “All indications are we are going to see some tax legislation on what’s called tax extenders.

But will the lame duck session bring the extenders forward or will we have to wait for the new Congress in January?”

Levens said Congress typically extends the tax rules by a year or two and has made them retroactive in the past but so far nothing has gone through the current legislative process. As the year comes to an end, advising clients during this uncertain time is “like crystal balling,” he said.

“The frustration as an individual or busi-

ness executive is how do you plan around the changing landscape. We know it’s going to change but we’re not quite sure where it’s going to land. That’s frustrating for people who want to plan but you’ve got this rule book that’s about to change on you,” Levens said.

If Congress doesn’t act on the extender bills during the current lame duck session, things could get more frustrating, Levens said. If new tax laws are passed in 2015 with a 2014 retroactive date, the IRS will have to change forms and computer software to reflect the changes. The same is true for professional tax preparers and individual taxpayers using software.

“The longer Congress goes and not addresses the extender legislation, the tax filing has to be pushed out a little later and that’s going to mean refunds won’t turn around as quick,” Levens said.

Tax professionals can offer a typical strategy based on the current law that individuals and businesses can follow before 2015 begins.

Bill Kelly, a partner with Nicholson and Company CPAs in Hattiesburg, said depending on individual circumstances, there

are a few of things business owners can do to control taxes. “As a general rule for business in order to save taxes, owners should try to defer income and accelerate deductions.” That, Kelly said, means “if there are things they need to buy, go ahead and buy it before year-end.”

Kelly, who has 35 years of tax experience, said the largest dollar effect anticipated in the tax law that he has seen in many years is the expiration in 2013 of the bonus depreciation rule that allowed for a fast write off of capital expenditure on new equipment. “You got to take a big deduction all up front,” he said. “It’s been an extremely effective tool for deferring taxes for businesses for the last few years.” Congress could still extend the bonus tax break along with others, but “the further we get to the end of the year without legislation, the more likely the tax break will not be extended, at least through calendar year 2014,” he said.

Congress also could tackle tax reform, another hot topic in Washington, soon.

“The House and Senate are looking at a complete revamping of the tax code,” Levens said. “It remains to be seen what that’s

going to look like but certainly everybody’s talking about it.”

Looking to next year, Kelly said large employers should be gearing up for the new Affordable Care Act rules for collecting data on insurance costs they are paying for their employees. That will have an impact on next year’s W-2 information reporting, even though applicable amounts will not be included in taxable wages, at least for 2015, he said.

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LAW & ACCOUNTING CPAS

Continued from Page 9

president of the Byrne CPA Firm in Houston, Tom Byrne says the best way to find a tax preparer is through a personal referral. “I think you need to avoid the marketing and salesmanship, and find the person in similar shoes who has used someone who can give an unqualified positive recommendation,” he said. “This may be your friend, a coworker, a classmate, or similar connection. If the most direct connection isn’t there, you may need to ask a friend of a friend, or another advisor such as a banker, lawyer or financial planner. A young person may ask within an alumni group, a civic club, a church group, or the like. The only worthwhile research in my opinion is to track down a personal referral.”

Byrne adds that the best match of a tax preparer to the person is simply the one who takes the time to listen, and considers their unique circumstances.

“Today’s tax code makes each tax return a personal experience, and without personal attention, a tax preparer can’t possibly do a good job,” he said.

Edwards says that first and foremost a taxpayer should select a CPA firm they can trust and with whom they can communicate. “Being able to communicate with your tax return preparer is very important in making sure an accurate return is prepared, as well as in determining if there are tax savings opportunities,” he said. “Also consider that the CPA has a valid and current license to practice and what amount of continuing education the CPA gets annually. Tax laws are ever changing and staying current is an important consideration.”

Steverson notes that looking at a CPA's years of experience and the firm's reputation in the community are important too.

Regarding costs, all three CPAs say there can be a lot of variation. Byrne said, “Tax preparation cost is important, but the federal and state taxes are more important. The cheapest tax preparer can cost a taxpayer many times as much in taxes as they could ever save in tax prep fees.

“I have seen very inexpensive tax preparation cost the working poor thousands of dollars in taxes and tax credits with shoddy tax preparation. So get the tax preparer to give you a fee estimate only after looking at your tax situation, and make sure they aren’t 'penny wise and pound foolish.' I know people worry about affording tax preparation fees, but what people really can’t afford is to pay excess taxes that can be 10 times, if not 100 times as much as the tax prep fees, but they don’t even know they are paying them.”

Simple returns still start at less than $100, he adds, but many are getting more complicated, and this year there are the additional complications with the Affordable Care Act credits and credit adjustments.

Steverson said, “Cost will depend on the need and the level of expertise required for the engagement.

The client should be well prepared and organized. The more organized the client, the better the CPA can serve the client's needs in an effective and efficient manner.”

With his firm, Edwards says the cost for preparing a less complicated return is in the range of $400 to $600, and it goes up depending on the complexity and the amount of time it takes to prepare the return.

ROLLBACK

November 21, 2014

Continued from Page 9

policies have not necessary been very helpful in some areas like shale oil development. EPA has dragged its feet in developing regulations for the rapidly expanding shale oil industry. The is why groups like the Center for Sustainable Shale Oil Development that consist of representatives from environmental and business groups are showing so much promise.

Fowler said industry and environmental groups working together can come up with

regulations that benefit the environment with the most cost effective methods to control pollution, and benefit industries by reducing the potential for lawsuits from environmental groups that can be very costly and delay progress year after year.

“It would be great to see more of this type of cutting edge, state-of-the-art collaboration,” Fowler said. “A lot of businesses are not afraid of government regulations, but of the lawsuits from environmental organizations. Generally, oil companies don’t want to get sued and environmental organizations want the most benefit for the environment. Groups like

I

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the shale oil center can come up with collaborative ideas to satisfy both sides. It is a strategy that works.”

Fowler said the Tennessee-Tombigbee Waterway is a great example of how a project can be kept in limbo by environmental lawsuits. He said the Tenn-Tom took 30 years to complete because of lawsuits.

“The environmental organizations played it out well,” he said. “It was a great strategy on their part. But from the business perspective, if you can avoid that litigation trap, you are in a much better place.”

12 I Mississippi Business Journal I November 21, 2014

TAX PREPARERS

November 21, 2014

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Mississippi Business Journal

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» MISSISSIPPI LEADERS by Martin Willoughby

Tough as metal Reed cites hard work as key to success of Reed’s Metals

I

recently read an article advising foreigners on how to adapt to life in the United States. It noted, “Life in the U.S. is generally fast paced and busy. People don’t want to waste time on anything, even food.

That is why the U.S. invented fast food and is the largest consumer of fast food.”

We are a culture that wants what we want, and we want it now! For example, in order to provide more speed to consumers, Amazon recently partnered with the U.S. Postal Service for Sunday deliveries. Companies that will succeed in this new era will find ways to deliver an outstanding customer experience with the speed consumers are demanding.

My interviewee this week, Bernard T. (Bernie) Reed, understands the mindset of today’s consumer, and he has built a thriving business based on meeting his customers’ needs. Reed is the owner of Reed’s Metals Inc. based in Brookhaven, Mississippi, which provides metal roofing and metal buildings direct to consumers. Reed is originally from Florida, but he grew up around the country as his family worked in a seasonal agricultural business. As an adult, Reed planted his roots in Monticello and started a pine tree reforestation business; however, the business was seasonal so he

Up Close With ... Bernard T. (Bernie) Reed Title: Owner, Reed’s Metals Inc. Favorite Book: The Walmart Way by Don Soderquist; Entreleadership by Dave Ramsey First Job: Planting pine seedlings for reforestation Proudest Moment as a Leader: “I still have the first pair of hand shears from when we started the business. Occasionally, I pull those out and reflect on how much we have grown over the last 16 years.”

Hobbies/Interests: “I am a pilot, and I enjoying flying. I use the plane to make frequent visits to our different locations.”

wanted to find something else to do in the off season. In 1998, at the age of 28 he decided to start Reed’s Metals with a pair of hand shears and a forklift. From that humble beginning, the company quickly grew and today Reed’s Metals has over 160 employees in five locations: Brookhaven; Tupelo; Benton, Arkansas; Lake Charles, Louisiana; and Jackson, Tennessee.

I have found that success leaves clues, and

so I was curious about the secrets to Reed’s rapid growth. Reed shared that he learned early on the value of hard work. He was homeschooled and worked in his family business from a young age. As a business owner, he models a strong work ethic for his employees. He also has a passion for customer service. He shared, “From day one we have strived to provide fast service for our customers. Even today, a customer can come

“From day one we have strived to provide fast service for our customers.”

Bernie Reed Owner, Reed Metals Inc.

to our store, choose what they want, and leave with their metals 30 minutes later.”

Reed also emphasizes the importance of creating a positive customer experience with every encounter. Martin Willoughby He noted, “I emphasize the appearance of both our stores and our people. We also greet our customers at the door and try to provide remarkable customer service.”

Scaling that kind of customer service is never easy. Many people can talk the talk of customer service, but I have found it is much harder to walk the walk and continue to deliver outstanding customer service as organizations grow. While his business has grown to multiple locations, he regularly visits every store and has frequent huddles with his employees to emphasize the values on which the company was built.

Reed also shared that he has surrounded himself with great leaders in his organization. Like other successful entrepreneurs, Reed understands the importance of hiring very talented people and letting them do their jobs. Savvy leaders understand their own strengths and limitations and hire talented people to shore up their weaknesses. Reed is a great Mississippi success story. His focus and passion are contagious. With a solid business model and plans for further growth, I know Bernie Reed and Reed’s Metals will be having an impact for years to come.

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.

War brides' true stories are meaningful and inspiring

T » GI Brides The Wartime Girls Who Crossed the Atlantic for Love

By Duncan Barrett and Nuala Calvi Published by William Morrow $14.99 paperback

his book tells the compelling stories of four English women who married American servicemen during World War II and immigrated to the U.S. when the war was over. Being addicted to books about WW II, I started reading this book without realizing the stories are true.

Learning that the four women are real — with no names changed — and the events really happened to them made it more meaningful. That fact also made up for the writing, which at times was unpolished and uninspired. I became completely engrossed in following the adventures of these ladies who left their families and everything familiar to follow their hearts.

There are then-and-now photos to help these brides become more real to readers, and the book concludes with updates about them. The brides are Sylvia Bradley, a loyal, bright-eyed optimist; Rae Brewer, a resourceful, quick-witted tomboy; Margaret Boyle, an English beauty who faced down every challenge; and Gwendolyn Rowe, a brave woman ahead

of her time. Boyle is the grandmother of author Nuala Calvi whose interest in the war brides began at an early age.

Although these women made the bold choice to leave family and the world they knew, the journey each experienced was unique — ranging from romantic to heartbreaking. Unfortunately all the stories do not have happy endings, but they are told as the events unfolded. There were humorous misunder-

standings when brides used words that meant one thing in the U.K. and something quite different in the U.S. For instance, Sylvia Bradley exclaims, “I've been diddled” when she discovers the latch on a new powder compact is broken. Her husband whispered in her ear what that expression means in the states and her face turned red.

In some cases relations with their new American inlaws are strained with mistrust and misunderstanding. The brides must learn a different culture, and of course, there is homesickness.

More than 70,000 GI brides followed their husbands — men they barely knew in some cases — to America to begin new lives. These are only four of those thousands of stories, told with care and tenderness.

— Lynn Lofton, mbj@msbusiness.com

14 I Mississippi Business Journal I November 21, 2014 THE SPIN CYCLE

10 essential tips for B2B marketing success in a digital economy f you’re a small-to midsize-sized business (SMB) and in the business-to-business (B2B) space, you know how challenging the digital revolution has been for marketing and branding.

Not long ago, a sale needed some sort of human interaction – even with the web.

Now, from fact-finding to brand-relationship building, your customers rely on the Internet to do it all.

How can a small B2B-focused company get back into the discussion in this age of digital marketing? Here’s a guide from social trends monitor Social Mediopolis to help your SMB be found, seen and heard online.

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Being found

1. The website: Your digital kingdom.

Most companies know they need to have a website but don’t recognize just how critical it is. Your website is your digital kingdom, a place where you can share your brand story, connect people directly to your company and make that all-important first impression.

Make sure you online presence is up to par by having an engaging customer experience, top-notch branding and easy navigation.

2. Content: What’s your story?

Most companies do a great job of explaining what they do but fail when it comes to using more dynamic content (blogs, videos, infographics) to show how they can help. Customers respond to relevant information and education, products and services come later. If you haven't already, begin telling your story in various formats. The more often you tell, the more likely your story will be heard.

3. Search basics: What SMBs really need to know about search.

Being found through search -- via search engine optimization (SEO) -- requires a regular stream of high-quality and relevant content, as well as social media to boost authority and visibility. Social media often gets pushed to the side but according to this study (http://www.searchmetrics.com/en/knowledge-base/ranking-factors-us-2013/), seven of the top eight SEO factors are tied directly

to social activity. So, get social! But keep in mind, you need to be on these social-media channels on a regular basis, otherwise, you will lose your customers' interest.

4. Social listening: Figuring out your audience online.

Strategic social media use starts by listening to your competitors as much as your audience, so you have a complete view of what’s going on in your industry. Watch what industry players and influencers say and do online, and pay attention to the tactics that engage thought leaders, competitors and consumers.

A great place to keep tabs on your competition is their blog. See what they are talking about, what their customers are saying and what pain points are occurring.

Being seen

5. Social media: Connecting your ideas with the world.

There may be no better way to connect your ideas with the world than through social media. It can be a terrific way to boost your company’s visibility online. One of our strongest recommendations is to focus on sharing highly useful and targeted content that’s of interest to the people you want to connect with.

6. Paid media: Placing content in the right spots.

For potentially just a few dollars a day, paid advertising on platforms like AdWords along with social-media ads can have their place. If you narrow your focus to a very specific keyword or phrase that your typical client is looking for, an ad that sends them to a strategic landing page can be well worth the investment. If you have no clue what keywords your target demographic is searching for, Google provides information on this through its AdWords platform.

7. Upcycling content: Increase visibility and your reach.

Content is often written, shared and quickly forgotten. Upcycling is a trend to reuse and rebuild previously published information to extend shelf life and boost visibility. For example, you can take a blog post you wrote six months ago and expand it in these ways: » Create a Slideshare » Recap the article in a video and post it

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to YouTube » Republish the article on LinkedIn » Build an infographic for more visual viewers » Expand it into a white paper » Syndicate the content to industry trade publications 8. Social selling: Moving consumers through the funnel.

While social selling allows salespeople to use social channels to share company’s content directly with potential or current customers, it must be better than spam. There has to be context for the information being shared, and the focus should be on starting a discussion, not pushing for a sale.

Being heard

9. Build commitment: Like, follow, subscribe.

The path doesn’t end when someone finds your company online – your efforts are wasted if someone shows up then leaves.

Build commitment by making it easy to stay in touch.

1. Make social links easy to spot, so people can Like, Follow or share your content.

2. Create a simple email subscription form for newsletter or blog post distribution.

3. Don’t forget to link to your RSS feed - some people prefer it.

4. For rich content like white papers or eBooks, consider gated content -- a tactic that exchanges basic information for a download. It can help you generate leads and measure your investment, but use it sparingly.

10. Online engagement: A one-to-one conversation.

Digital marketing is about driving a better customer experience, earning sales and retention by focusing on the importance of one-to-one marketing. Your end goal is to start and continue discussions that lead to new brand advocates, new customers and long-term clients that ultimately become referral generators.

Competing in the digital economy can seem overwhelming, but in many ways the web levels the playing field. After all, the best content doesn’t cost the most, rather it makes the most effective connection with the reader. By focusing on the essentials of being found, seen and heard online, it’s possible to not only succeed in the digital economy, but to relish in growth and visibility.

The 20 most popular brands on #Twitter

@YouTube maintains its position as the most popular brand on Twitter, with its more than 46 million followers placing it well ahead of all other brands, including the official @Twitter profile, according to research conducted by AllTwitter Indeed, @Twitter isn’t even second on its own network – that space has long been reserved for @Instagram, although both remain many millions behind @YouTube.

There’s also quite a divide between Twitter’s top three and fourth-placed @cnnbrk.

Social media profiles continue to dominate Twitter, accounting for five of the first six spots. @Facebook continues to close in

on @twitter_es, Twitter’s Spanish-tweeting profile, and should pass it before the end Todd Smith of the year.

This month, both @BBCBreaking and @NBA have leapfrogged @UberSoc, which appears to be in a Twitpic-like descent down the Twitter rankings. Whether, like TwitPic, that decline is indicative of a cloudy future for UberSocial remains to be seen.

1. YouTube (@YouTube, 46.4 million followers) 2. Instagram (@instagram, 35,95 million) 3. Twitter (@twitter, 33.3 million) 4. CNN Breaking News (@cnnbrk, 20.6 million) 5. CNN (@cnn, 14.69 million) 6. Twitter en español (@twitter_es, 14 million) 7. Facebook (@Facebook, 13.9 million 8. The New York Times (@nytimes, 13.89 million) 9. Real Madrid F.C. (@realmadrid, 13.5 million) 10. FC Barcelona (@FCBarcelona, 13.2 million) 11. ESPN (@espn, 12.8 million) 12. BBC Breaking News (@BBCBreaking, 12.1 million) 13. NBA (@NBA, 11.8 million) 14. UberSocial (@UberSoc, 11.76 million) 15. MTV (@MTV, 11.58 million) 16. Vine (@vineapp, 11.52 million) 17. SportsCenter (@SportsCenter, 10.8 million) 18.SamsungMobile(@SamsungMobile,10.1million) 19. A Googler (@google, 9.3 million) 20.

Ramalan Indonesia (@TweetRAMALAN, 9.2 million)

Golden Mic | Taylor Swift is a gigantic brand

Taylor Swift is a brand – and she sold a staggering 1.287 million copies of 1989 in the first week. If that number sounds large, it’s because it really is. That figure marks the single largest sales week for one album since 2002, when Eminem’s The Eminem Show moved just over 1.3 million copies. The singer’s fifth album became the best-selling album to be released in 2014. This is Taylor’s fourth consecutive number one album, and her largest bow at the top yet. She has previously topped the Billboard 200 with Red in 2012, Speak Now in 2010, and Fearless in 2008, which went on to win the Grammy for Album of the Year.

As her career continues to grow, Swift is proving that she’s making a place for herself in the record books – and as a brand. With the immediate success of 1989, the 24-yearold is the only woman to have three albums sell over one million copies in a single week.

For that, Swift is truly golden, and gets this week’s Golden Mic.

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

SALES MOVES

November 21, 2014

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Mississippi Business Journal

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15

»FROM THE PUBLISHER’S DESK

A vision for the future of Mississippi health care S everal hundred business and civic leaders gathered this week at the Jackson Country Club for MCEDA & the Madison County Business League’s 2014 Vision Celebration. This year’s theme was health care, and 2 awards were presented at the event.

Jan Collins, executive director of the Madison County Business League, opened the ceremony with a brief overview of the opportunities for Madison County in terms of health care and its impact on the county, and the region.

The Visionary Leadership Award went to Dr. David Powe for his efforts and contributions to the growth and progress of Mississippi health care, and specifically for his work in helping to create the new Biomedical Business Collaboratory in Madison County. A man who has had not one, but several highly successful careers (including most recently serving as chief administrative officer for UMMC and helping to engineer the addition of thousands of jobs at the facility), Dr. Powe is now embarking on a new venture as CEO of TeleHealth One, which aims to serve the needs of patients and medical professionals throughout Mississippi.

“I’m truly honored to have my efforts recognized today,” he said. “I’m expecting so many great things in the coming years in helping to develop advanced health care options in Madison County, and throughout Mississippi. I do want to say that it’s not just about me, though...making great things is the result of a lot of hard work by dedicated people at all levels.”

The Vision Award was presented to St. Dominic Health Services, in recognition for their commitment to Madison County

TAMI JONES / The Mississippi Business Journal

The Visionary Leadership Award went to Dr. David Powe for his efforts and contributions to the growth and progress of Mississippi health care, and specifically for his work in helping to create the new Biomedical Business Collaboratory in Madison County.

health care. To date, St. Dom’s has invested more than $88 million in the county, and provides over 300 jobs in the county.

Claude Harbarger accepted the award for St. Dominic’s.

The keynote speaker at the event was Gov. Phil Bryant, who talked about his vision for creating many new, quality jobs in the health care field, and bringing many new opportunities for economic development in Mississippi from both direct and indirect perspectives.

He lauded Dr. Powe as “the type of individual with the vision and commitment to help drive the effective growth of health care.” He expressed his enthusiasm for the new Collaboratory, saying that he considers Madison County to be a great

environment for creating a productive health care zone, especially in view of the fact that Madison County boasts “twice the number of health care professionals as the national average.”

“But it’s a team effort,” he said. “What we do here will benefit our entire state Alan Turner and its people.”

MCEDA Executive Director Tim Coursey, in his remarks, praised Dr. Powe as a “man with a mission to help people, and a lot of that is to help create great jobs and improve the quality of life in Mississippi.”

Jasmine Murray, Miss Mississippi, sang the national anthem and God Bless America to round out the event.

It was also announced at the event that the boards of the Madison County Business League and Madison County Foundation have agreed to merge into a single new entity to be called the “Madison County Business League & Foundation”, subject to ratification by the membership of both organizations.

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

http://www.msbusiness.com

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LAW FIRMS

BP appealing to have oil spill settlement administrator removed NEW ORLEANS — BP is heading to a federal appeals court in its effort to oust the administrator of damage settlement claims arising from the 2010 Gulf of Mexico oil spill.

The company filed notice yesterday that it plans to file with the 5th U.S. Circuit Court of Appeals in New Orleans.

BP has long complained about Patrick Juneau’s administration of claims. It sought his removal by a federal judge in motions claiming that he had a conflict of interest because he once represented Louisiana in talks setting up the claims process and had pushed for favorable terms for those with claims.

The company also said he had made misleading statements about that work before being named claims administrator. And they said Juneau improperly expedited claims for some people represented by the plaintiffs’ steering committee.

U.S. District Judge Carl Barbier flatly rejected BP’s arguments in an order last week. He said Juneau had disclosed his previous work to BP before being selected as administrator. He also said that BP used an out-of-context statement in its accusations against Juneau and that there was no evidence that any claims were improperly expedited.

“BP has appealed that order as it continues its efforts to bring the integrity and transparency to the Gulf claims program that was promised at its inception and that is sorely needed today,” BP spokesman Geoff Morrell said in an emailed statement.

In a related development, Barbier approved plans for a second round of claims to be paid from a $2.3 billion seafood compensation program.

— The Associated Press

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