INSIDE — Manufacturer holds open house at Senatobia plant — Page 8 RIDGELAND
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MANUFACTURING
ALUMINUM STARTUP FINDS GOING ROUGH IN LOUISIANA, AS IT DID IN MISSISSIPPI
— Page 8
MBJ FOCUS
BY JACK WEATHERLY jack.weatherly@msbusiness.com
Banking & Finance {Section begins P 14}
» CPAs say autumn a good time to take steps to maximize tax planning » Metropolitan Bank garners high ranking on “Best Banks to Work For” list
The List {P 16} » Registered Investment Adisors
JACK WEATHERLY / The Mississippi Business Journal
Bethany Haynes, shown with daughter Liora, 3 months, says she plans to try Kroger’s QuickList service.
Grocery giants bring clickand-buy service to Jackson BY JACK WEATHERLY jack.weatherly@msbusiness.com
COLUMN {P 17}
» MABUS: Umami in your messaging
Rival grocery giants Kroger and Walmart are rolling out online shopping programs in the Jackson area. The concept is designed to save time for shoppers just as the grocers battle to hold prices down for customers.
For now, Kroger’s QuickList has next-day pickup, but soon it’ll be same-day, according to Marcus Hamilton, e-commerce field specialist. Hamilton declined to give specifics on how many orders have been filled since the service started in metro Jackson, but said “the numbers are good” and that both Jackson-area stores are See
GROCERY, Page 9
In February 2015, American Specialty Alloys, which was to build a $1.2 billion plant at Columbus and produce aluminum alloy for automobile bodies, pulled up stakes and decided to seek its fortunes in Louisiana. The startup, which never built the plant and was at odds with the Mississippi Development Authority and the Golden Triangle development agency, LINK, has run into similar problems in Pineville, La. Now called Revolution Aluminum Propco LLC, it has been sued by several parties for a total of about $2 million for failure to pay back “bridge” loans and for unpaid work. It has been placed in involuntary Chapter 11 bankruptcy. LINK held an 826-acre site for the startup for about a year, waiting for American Specialty to show the development agency its financial arrangement for the $1.2 billion plant. It never did. Revolution is headed by Roger See ALUMINUM, Page 2
http://msbusiness.com/events/ceo-awards-of-mississippi/
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Boggs, who was founder and chief executive of American Specialty. Boggs told the Mississippi Business Journal on Tuesday by telephone that he would have no comment on the state of the undertaking, but that a “full release” would be issued on Oct. 12. The new company initiated the purchase of 1,400 acres at Pineville that had been the site of an International Paper plant. Boggs announced that the site, renamed Innovation Park, was to be joined by “several” other companies that will support the mill’s operations, according to The Town Talk newspaper of neighboring Alexandria. A call to the Central Louisiana Economic Development Alliance was not returned. Pineville Mayor Clarence Fields said in a telephone interview on Monday that he is hopeful that the plant will be built. Fields said the city has been unable to reach Boggs for a month or more. “We’ve been directing folks to the website Revolutionary Aluminum.com. The site has no phone numbers and scant information. Under the heading
About Us it says only “A mini-mill for the Aluminum Industry.” Under Project Updates it says: “We have been very busy at the Pineville site over the past several months.”
The railroad says it is owed $648,000 for improving rail access and $150,000 for three months of car switching fees, according to The Town Talk. Ryan and Associates of Davenport, Iowa lent Revolution $1.15 million with
“Revolution should be considered the alter ego of its sole member and officer, Boggs.” From lawsuit by Integrated Project Resources
Bulleted items say that: » “17,800 cubic yards of concrete have been removed and staged for recycling;” » “additional land clearing, brush removal and grading has been completed;” » “and approximately 12 miles of rail is being refurbished.” Acadiana Railway has sued Revolution for nearly $800,000 for unpaid work and uncollected fees, according to The Town Talk.
promise of repayment and ownership of 100 acres for a fabrication shop and contracts to perform work for the aluminum mill. Ryan and Associates and two other debtors succeeded in getting an involuntary Chapter 11 order against Revolution on Sept. 30 from Judge John W. Kolwe of the U.S. Bankruptcy Court for Western Louisiana. One of those creditors, Integrated
Project Resources LLC of Columbiana County, Ohio, accuses Boggs and Revolution of fraud and deceit and that “Revolution should be considered the alter ego of its sole member and officer, Boggs.” It alleges that funds for the corporation and Boggs are commingled; Revolution has failed to follow statutory formalities for the incorporating and transacting” of corporate affairs; that Revolution is undercapitalized and has not held regular shareholder and director meetings.” The Louisiana Economic Development agency offered Revolution a $34 million performance-based grant. LED Secretary Don Pierson issued the following email on Tuesday: “No taxpayer dollars have been provided for this project to-date, and none are at risk. Louisiana Economic Development reached a prospective agreement in 2015 with the company, then known as American Specialty Alloys, which would have provided performance-based grants on a reimbursable basis, as the company completed construction. “However, no final contractual commitment has been made by the company. Should the company proceed with the project, it could receive the announced incentives in the future as it completes construction and hiring.”
www.bcbsms.com Blue Cross & Blue Shield of Mississippi, A Mutual Insurance Company is an independent licensee of the Blue Cross and Blue Shield Association. ® Registered Marks of the Blue Cross and Blue Shield Association, an Association of Independent Blue Cross and Blue Shield Plans.
October 7, 2016
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Mississippi Business Journal
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ON INNOVATION
What Startups are made of n my last column, I presented 10 key attributes of innovation: 1) intense, 2) novel, 3) narrow or wide, 4) observable, 5) value-added, 6) adaptable, 7) transformational/timely, 8) incremental, 9) operability, and 10) no guarantees (risky). An understanding of these attributes can help us gain insight into the development process for innovative products and services. They can also help us identify innovations and capitalize on emerging trends. According to a recent survey conducted by Siemens and TIME magazine that queried hundreds of business leaders across the United States, 98 percent of the respondents indicated that innovation was important for their businesses. This survey also showed that technology trends and customer needs are the two most important drivers for innovation. Startup enterprises, which are typically discussed in this column, are a widely acknowledged path for taking innovations to the marketplace as commercially viable products or services. However, several factors go into creating a successful startup, and even the definition of “success” may vary from one startup to another. For a lifestyle company, success usually represents the ability to generate steady revenues over a long period of time, which allows the founder or owner to maintain a certain type of lifestyle. The owner is typically not seeking any outside investments nor has any intention of selling the business. On the other hand, the founders of a high-growth startup are always thinking about an exit strategy. The founders, along with the initial investors, want to profit from the venture at the right time and for the right price. The exit event may be an outright sale, a merger or an initial public offering. Whether high growth or lifestyle startups, I have captured seven common traits of success in the following mnemonic which spells STARTUP: S: Single-minded focus T: Technology A: Assess the Appetite R: Risk T: Talk and Tryout (with your potential customers) U: You and your team P: Persistence and Passion By way of example, the 2016 class of innovators and entrepreneurs, along with all former inductees into the Mississippi Innovators Hall of Fame, exhibit these seven characteristics. Innovate Mississippi, in fact, launched this Hall of Fame in 2008 to celebrate and honor outstanding individuals and companies who helped put Mississippi on the map as a leader in innovation and entrepreneurship. They have certainly blazed the trail of achievement for those who will follow in their footsteps. Single-minded focus: At Innovate Mississippi, we typically meet with about 125 new startups in a given year. Many of these entrepreneurs are excited about the versatility of their technology and believe that it can change the world in more ways than one. Our role frequently, is to help them visualize the shortest path to profitability and focus on the product or service that the customers would want. When it comes to demonstrating single-minded focus on a product and service, I always think about Joel Bomgar, who founded his namesake company in 2002 with the unique platform he developed for addressing computer
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STARTUP S T A R T U P
Single-minded focus Technology Assess the Appetite Risk Talk and Tryout (with your potential customers) You and your team Persistence and Passion
problems from a remote location via the Internet. Joel was honored as an “Innovator to Watch” in 2008 as part of the Mississippi Innovators Hall of Fame. Information from the company website indicates that TA Associates made a major investment in Bomgar in 2014, and earlier this year, Thoma Bravo, a leading private equity investment firm, acquired the company. What was once a college campus project, today serves more than 10,000 clients all across the world. Thalia Mara, a 2016 inductee in the Mississippi Innovators Hall of Fame (posthumously), moved to Mississippi at age 65 after living in places like Paris and New York. Through her single-minded focus, she established Jackson as the host for the USA International Ballet Competition and established the state’s first professional ballet company. Technology: Every company has a secret sauce or an enabling technology. While we often think of technology as pertaining to computers or the Internet only, it is actually in every sector of the economy including agriculture, aviation, construction, education, energy, forestry, health care and transportation. Some companies focus on making their own secret sauce and others may use someone else’s to enhance their offerings or simply create totally new dishes. Inductees in the Mississippi Innovators Hall of Fame such as Edward Barq, Sr. (Barq’s Root Beer), Dr. Thomas Hardy (first human lung transplant), Hartley Peavey (sound systems and electronics) and Will Primos (hunting products) have been recognized for brewing their “secret sauce” for decades. In this arena, one of the keys to a successful startup is to carve your niche with a specific technology and then protect that intellectual property through patents, copyrights, trademarks or trade secrets. Assess the Appetite: Once you know your focus and have a technology platform that you will use or will develop, the next step is to assess whether there is an appetite for your product or service in the marketplace. Successful startups are good at determining the size of the “addressable market” and not settling on some arbitrary percentage of a given population. Entrepreneurs who keenly observe emerging technology and social trends will understand the needs of their potential clients. The following is a quote by Jeff Bezos, founder of Ama-
Sumesh Arora zon, sourced from Fundable.com. “The wakeup call was finding this startling statistic that web usage in the spring of 1994 was growing at 2,300 percent a year. You know, things just don’t grow that fast. It’s highly unusual, and that started me thinking about a business plan which might make sense in the context of that growth?” At age 30, Bezos quit his Wall Street job, made a list of the ‘top 20’ products that he could potentially sell on the Internet, and decided on books because of “their low cost and universal demand.” Speaking of appetite literally, Laurel-based Sanderson Farms know people enjoy eating chicken and this company has been at the leading edge of the trend in increased poultry consumption around the entire world. Originally started in 1947 as a small-town farm supply business, the company went public in 1987. With revenues exceeding $2.8 billion in 2015, Sanderson Farms is now the third largest poultry company in the country and employs over 12,000 people. Joe F. Sanderson, Jr, chairman of the board and CEO of Sanderson Farms was presented the Legend Award at the 2016 Mississippi Innovators Hall of Fame gala event. Risk: The letter “R” is in the middle of the word STARTUP. Appropriately, since risk is at the core of each startup venture. At Innovate Mississippi, we carefully look at clients’ risks in five categories: technology, markets, finance, management, and execution. Startups that are developing their own secret sauce or technology have a greater risk of failing than those who are building upon an existing platform. They may also have to educate their potential customers on the benefits and usage of the new technology, which could prolong the time for market adoption. The ability to finance a venture through equity investments or debt may be also negatively impacted by a) the complexity and newness of a technology, and b) a lack of clarity in the marketplace appetite. According to an article published recently by Forbes, venture capitalists hope that every one of their investments will be a “billion-dollar venture,” however, only about 0.003 percent of their investments turn into “home runs.” Area examples of management and execution risks to consider in a STARTUP: Talk and Tryout: Once the technology platform is developed and the potential market for your product or services has been identified, it is time to get real-world feedback before getting too deep into the venture. Talking to your potential customers is critical to determining what your product or service should actually look like, feel like and provide. In some cases, potential customers may need to tryout your prototype product before you do a full market launch. A startup will increase its chances of success by making decisions based on this invaluable feedback from potential clients or customers. “If you build it, they will come,” is a very risky strategy. You should only build it only if you have market research deeming they will come. Look for strategic partners who may help with building the prototype and facilitate access to selected companies or individuals for seeking feedback. Tupelo-based Hawkeye Industries, a 2016 “Innovator to Watch,” has become one of the go-to companies for entrepreneurs who are looking for stamped metal manufacSee
STARTUPS, Page 4
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turing capacity and industry connections. You and Your Team: The most important ingredient behind every successful startup is the individual who not only came up with the original bright idea, but also had the skills to navigate the business world to bring that idea to reality. This person understood how to make the technology work, the market appetite for the technology, and knew how to manage a myriad of risks involved in entering a given market. He or she also had the foresight to assemble the right team around them depending on the stage of the venture. For example, in the early days of Howard Industries, Billy and Linda Howard, also inductees in the 2016 Mississippi Innovators Hall of Fame, went out and hired the best transformer engineer they could find to lead the technical efforts for their business they started. Today Howard Industries is the top producer of transformers in the United States and sells their products in 114 countries. Kevin Plank, CEO and founder of Under Armour attributes the success of his company to its strong culture that, “first and foremost is built on people.” Persistence and Passion: “There is no substitute for persistence. The person who makes persistence his watchword, discovers that ‘Old Man Failure’ finally becomes tired, and makes his departure. Failure cannot cope with persistence.” This is a quote from Napoleon Hill’s classic book “Think and Grow Rich,” which was originally published in 1937. Dr. S.L. Sethi, another 2016 Hall of Fame inductee, repeated this quote when asked about his secret to success in building his food service and hospitality businesses from humble beginnings. Dr. Sethi fled Punjab and ended up in Mississippi to finish his PhD. He left briefly, but returned in 1968 with his wife and only $50 in
his pocket and went on to be the largest Pizza Inn franchisee in the world before starting Bumpers Drive-In and several other businesses, which now employ more than 1,000 individuals. Passion is the other “P” which every entrepreneur needs to be successful. “Make meaning,” is how Guy Kawasaki states it very eloquently. Mr. Kawasaki, a renowned author, speaker, entrepreneur, venture capitalist and technology evangelist, states “Meaning is not about money, power, or prestige. It is not even about creating a fun place to work. The meaning of ‘meaning’ comes down to making the world a better place.” Canton’s TelehealthOne, another 2016 Innovator to Watch, is doing just that by teaming up with Fred’s Pharmacies to put telehealth centers in Fred’s across the state which will increase access to high quality health care for many rural Mississippians. The path to a successful STARTUP can be like a winding mountain trail with sharp drop-offs on both sides. Entrepreneurs who stay focused on that path and don’t get distracted by the beautiful scenery around them will have a much better chance of reaching the summit with the support of their fellow hikers and the right equipment. Try out the Entrepreneur’s Quotient Test at Guy Kawasaki’s website to grade your knowledge of startups. If you want to go further than this short quiz, check out the Venture Capital Tools available through the Innovate Mississippi website. I close with another quote from Kevin Plank about his unique framework which keeps him focused on Under Armour’s growth, “I end every meeting the same way – this is what I heard, this is what I think, and here’s what we’re going to do.” Dr. Sumesh Arora is vice president at Innovate Mississippi, a non-profit organization with a mission to drive innovative business growth in Mississippi. His doctoral research was focused on how new ideas spread and its applications to business, economic and policy development. Follow him on Twitter @DrSumeshArora or contact via email at sarora@innovate.ms with questions about developing innovation strategy for your company or organization.
Innovate Mississippi joining Mississippi Innovation Hub by relocating in Downtown Jackson Backwater Management and Coalesce are pleased to announce the addition of Innovate Mississippi to the Mississippi Innovation Hub in downtown Jackson. The historic block, better known as Spengler’s Corner, is currently home to ThimblePress, Satchel (a podcasting startup), Coalesce, Sheena Allen Apps, Let’s Talk Jackson, Re-Think Mississippi, the Jackson Area Web and App Developers, 1 Million Cups, Good Design & Code, Tiny JXN, the Law Offices of David Pharr, Jackson MC, McLaughlin PC, Seabold Architecture Studio, McLaughlin Garner Group, and several other creative entrepreneurs, project teams, freelancers, and small businesses. There is a national trend in which creative technology hubs are forming in historic downtown areas and Jackson, Mississippi is among this list. “We are extremely excited to welcome Innovate Mississippi to the Mississippi Innovation Hub,” said Matthew McLaughlin. Innovate Mississippi is a nonprofit organization with the mission to drive innovation and technology-based economic development for the State of Mississippi. Innovate Mississippi is focused on assisting innovation-based startup companies, connecting entrepreneurs with investors and strengthening Mississippi’s manufacturing and renewable energy innovation economies. “We are looking forward to this next step for Innovate Mississippi,” said Tony Jeff, President/CEO of Innovate Mississippi. “We believe that being part of downtown and readily accessible to the startup community is vital to the technological growth for the innovators of our State. Innovate Mississippi works with technology-based companies on growth and stability while helping them to maintain Mississippi as their home base. We feel that a central accessible location is vital to maintain this growth and collaboration.” — from staff and MBJ wire services
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MBJPERSPECTIVE October 7, 2016 • www.msbusiness.com • Page 6
OTHER VIEWS
» THE OUTSIDE WORLD
Don’t take the narrow road to intolerance
Website: www.msbusiness.com October 7, 2016 Volume 38, Number 41
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» INSIDE MISSISSIPPI
Should retirees trust legislators to handle PERS?
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f what Mississippi politicians – precisely the Legislature and then-Gov. Kirk Fordice – had agreed to in 1999 had come to fruition, the state would now have a health care trust fund of an estimated $4.79 billion with $232.6 million available to spend this year,” wrote political reporter Bobby Harrison in the Northeast Mississippi Daily Journal. Alas, he said, “as of today, the state has no health care trust fund. The Legislature has spent all the funds that would have gone into the trust fund.” There’s another, much larger trust fund the Legislature has financial responsibility for along with the Public Employees Retirement System board of directors. That’s the PERS retirement fund. While not depleted, the PERS retirement fund is far from adequately funded. On Sept. 23, Bloomberg News listed the PERS fund among the ten most under-funded retirement plans in America. PERS’ most recent financial report shows its funding level at just 60.4 percent. Fitch Ratings has expressed concern about PERS’ unfunded liabilities.
Bill Crawford
“Unfunded pension liabilities, measured as a percent of personal income, are among the highest of the states.” In August, Fitch downgraded Mississippi’s credit rating for upcoming bond issues. In July, Moody’s lowered Mississippi’s credit outlook to “negative.” Budget issues were part of the rationale for the ratings issues, but both ratings services cited the state’s high debt level resulting from its huge, unfunded pension liability. One of the big challenges PERS faces comes from growing numbers of retirees drawing money out while declining numbers of employees pay into the fund. Because of this, Mississippi Watchdog.org says PERS “is in serious jeopardy.” It reported that every year since 2005 the number of retirees has increased while every year since 2009 the number of active employees has decreased. This mismatch is likely to get worse with budget woes limiting new hires and a high percentage of active employees nearing retirement age. Only 37.8 percent of active employees are See CRAWFORD, Page 7
he 2016 presidential election is not far away. If more than a year of campaigning in the current cycle is an indication, we are in for more harsh words from some Americans about people of particular religious faiths or angry pronouncements about religious views outside the belief spectrum of a particular region. Americans from colonial times moving forward have too many times walked down a road toward religious intolerance. It led to nothing but trouble, and our nation has nothing to gain from abandoning the tolerance eventually embraced by many “Founders and Framers” in the late colonial era and in the young republic. The reason to avoid religious intolerance is because it discriminates against legal status especially for beliefs contrary to the religious or political establishment. Kenneth C. Davis, whose book, “Don’t Know Much About History,” was on the New York Times best seller list for 35 weeks, explained the need for accurate understandings of history in a 2010 article for Smithsonian Magazine, the journal of the Smithsonian Institution. “From the earliest arrival of Europeans on America’s shores, religion has often been a cudgel, used to discriminate, suppress and even kill the foreign, the ‘heretic’ and the ‘unbeliever’ including the ‘heathen’ natives already here,” Davis wrote in Smithsonian. Those early hostilities of intolerance were sometimes between differing Protestants, but the bitterest divisions were between Protestants and Catholics, who immigrated by the millions. Davis describes a newly independent America covered with a “crazy quilt” of state laws regarding religion. Some laws, despite the newly enacted Constitution, placed religious tests on holding public office and having full civil rights. In 1779, Thomas Jefferson, as Virginia’s governor, drafted a bill that guaranteed legal equality for citizens of all religions – including those of no religion. James Madison, father of the Constitution, stepped into the breach. Among Madison’s 15 points was his declaration that “the Religion then of every man must be left to the conviction and conscience of every … man to exercise it as these may dictate. This right is in its nature an inalienable right.” In 1786, the Virginia Act for Establishing Religious Freedom, modified somewhat from Jefferson’s original draft, became law. Even a few steps in the past toward religious intolerance and discrimination have taken our nation down a dangerous road. It is not a narrow choice we need to empower again.
— The Northeast Mississippi Daily Journal
PERSPECTIVE
October 7, 2016 I Mississippi Business Journal
CRAWFORD
» RICKY NOBILE
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under forty, the story reported. The level of funded liabilities depends in large part on investment returns each year. Below target returns add to the unfunded shortfall. PERS’ targeted average return to meet its obligations is 7.75 percent (adjusted down this year from 8 percent). But PERS’ investment report for June 30, 2016, showed an annual return of just 1.15 percent. Its fiveyear average return of 7.16 percent was 59 basis points below the 7.75 percent target, indicating unfunded liabilities should increase this year. Several years ago PERS upped employer contributions to 15.75 percent and employee contributions to 9 percent of salaries, saying these high funding rates would bring funded liabilities back to 80 percent within 30 years. So far, little gain has been achieved. Meanwhile, legislators have shown great fear when it comes to making hard decisions regarding PERS’ financial stability. Given how they mishandled the health care trust fund, retirees should be wary that legislators will mishandle the PERS retirement fund too. Bill Crawford (crawfolk@gmail.com) is a syndicated columnist from Meridian.
»PHIL HARDWICK
7 things you can do if nonprofit is being defunded
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ublic officials are facing the reality that revenues are falling or not growing. Budgets at state and local levels in particular are being scrutinized. Cuts are being made. First on the chopping block are community organizations and nonprofits that provide a service. Arts and cultural organizations, even libraries, are not safe. So what can you do if you’re the leader or board member of an organization that is being considered for defunding or reduced funding? Below are seven things that you should do immediately. Make personal contact. The first thing to do is to get more information from the funder, and the best way to do that is through personal contact. Make an appointment or if appropriate visit the funder’s office without an appointment. Ask for more information, but let the funder know of the impact of the loss of funding. Talk about the the future. Be cooperative. The funder is probably in a no-win situation. Be ready to answer this question from the funder: “That’s all well and good, but which organization should be cut if not yours?” Have friends and supporters contact THEIR elected officials. Public officials are more apt to listen to those with whom they have relationships or who are their constituents. Be sure that your friends and supporters have their information in hand. They should be just as able to answer any questions that the funder might have. In other words, tell why you support the organization. Use social media. Facebook, Twitter, Instagram and other forms of social media have become powerful tools that influence public officials. Use them first to make your case to your friends and followers, and then use them for your call to action. Be very specific about what you want done. For example, don’t just ask them to contact their elected official. Give them the name, address, telephone
number and date and time of next meeting if appropriate. Create a sense of urgency. Get the news media involved. That includes television, radio and print media. You want them to get interested in the issue and to see it as a story to be followed, not just one interview with the head of the organization being defunded. Tell about the impact of the budget cuts, who will be affected and who else to contact for more information. Letter to the editor. This is just one more tool to raise awareness. It’s not as effective as any of the above, but it may reach others who are not aware of the situation. Speak at events. If you have the opportunity to talk to civic clubs, community events or other meeting tell your story and why listeners should support your organization. Attend the funder’s next meeting. Ask to be on the agenda. Your request to the funder is to provide more information and to use this public forum to create more awareness. Do not threaten what you might do to the funder if your request is not approved. Your job is to convince the funder to rethink its position. It might very well be that you request more time to provide information to the funder. By granting more time, the funder will be giving you more opportunity to make your case. If you do all of the above and still lose your funding it’s time to debrief. Determine why your organization was considered for a reduction or total cut in funding. Ask the hard questions. Is your organization really that relevant to the community? If so, why does it need to rely on government funding? Is it a communication problem? Assuming your organization will survive, even if barely, now is the time to look to the future. Think about ways to prevent loss of funding from happening again. Many public officials say that they had little knowledge about the nonprofit organization and its accomplishments. There are some obvious ways to correct that perception in the
future. Below are five things that you should consider at a minimum. First, send your funder communiPhil Hardwick cations about your activities. Find out which form of communication works best. One official told this writer that she liked to receive a written document, such as a newsletter or fact sheet, so that she could hand it out to fellow board members at the beginning of meetings. Obviously, she supported the organization and had become its advocate with other board members. Email may be the preferred communication form for others because it is easy to forward. Second, invite your funder to your events and to your meetings. Elected officials, in particular, want to attend positive public events, especially if there are a large number of attendees. Be sure to recognize the official at the event. Third, attend their meetings. Although most meetings of public bodies are relatively boring affairs, your physical presence shows that you are interested in them and in watching out for your organization. Fourth, thank funders for their support. There are a hundred ways to do this. There are also many opportunities. Do not let an event, a newsletter, etc. go by without mentioning the funder. Also, make certain that your organization’s website mentions the funder’s financial support. Recognize them often. Finally, it is worth repeating that you should stay in touch with your funder. If your funder does not know about your organization, how can you expect support. » Phil Hardwick is a regular Mississippi Business Journal columnist and owner of Hardwick & Associates, LLC, which provides strategic planning facilitation and leadership training services. His email is phil@philhardwick. com and he’s on the web at www.philhardwick.com.
8 I Mississippi Business Journal I October 7, 2016
RIDGELAND
Local 463 moving to larger space at the Renaissance at Colony Park By BECKY GILLETTE mbj@msbusiness.com
Local 463 Urban Kitchen, which has been located 121 Colony Crossing Way, Madison, for seven years, is on the move. The restaurant whose owners are firm believers in supporting local farmers and vendors, is still going to be “local,” moving a mile and a half to the Renaissance at Colony Park in Ridgeland where they will take over space previously occupied by Mint The Restaurant. “We actually looked at the Renaissance before Renaissance was even built,” said Derek Emerson, who owns Local 463 Urban Kitchen with his wife, Jennifer. “It just wasn’t the right time for us. We were relatively new. The opportunity came up seven years ago to take over the old Atlantica Restaurant location at where Local 463 is now.” They are planning to move by early December in order to take advantage of the holiday shopping season. “My family loves Renaissance,” Emerson said. “A lot of my family shops there. The new location has foot traffic, whereas the space we have now has no foot traffic. I think it will also be a benefit to be around other restaurants like Ruth’s Chris Steak House and Seafood R’evolution. That makes it a dining location.” The Emersons also own Walker’s DriveIn and the CAET wine bar, both located in the Fondren arts district in Jackson. Emerson likens the Renaissance at Colony Park to the Fondren arts district as both have lots of restaurants, interesting retail outlets and good energy. “It really helps bring people to the area when you have a lot of different things going on,” said Emerson, who has been in the restaurant business for 25 years. “The success in dining in Mississippi has come a long way. For the size of our city and state, we have a lot of great restaurants. And we are just getting better and better.” In addition to the synergy of being located with other restaurants and retail businesses, Emerson said they were also attracted to Renaissance by having more space at the new location. “We needed a few more square feet, and now will have room for private dining for 16 to 90 people,” Emerson said. “We have kind of outgrown the space we were in. For us, it is a bit more centrally located between Madison and Jackson. It makes it a little more available for more people, I hope.” They plan to keep the same name and
MANUFACTURER HOLDS OPEN HOUSE AT SENATOBIA PLANT BY JACK WEATHERLY jack.weatherly@msbusiness.com
Courtesy of Local 463 / For the MBJl
Robert Rushton, executive chef at Local 463 Urban Kitchen, is shown on the left, with Jennifer and Derek Emerson, owners of Local 463 and Lauren Rushton, restaurant manager, on the right.
staff. The menu will be expanded some, but still very similar to the offerings that have been popular for years. “We get fresh seafood from the Gulf of Mexico six days a week,” Emerson said. “I’m a firm believer in simple food using the best ingredients we possibly can. The executive chef I have working there with me, Robert Rushton, has the same philosophy. He is a crucial part of our success. His wife, Lauren Rushton, is the general manager. We couldn’t do any of the stuff we do at all the restaurants that we have without the loyalty of the staff we have. We appreciate the hard work they put in.” Emerson’s management philosophy is to never ask anyone to do something he wouldn’t do. “I’ve been scrubbing floors in kitchens for 25 years,” he said. “It is just a part of being on the team.” Emerson said they will also continue going out of their way to let people “eat local,” by supporting local farmers and vendors. Emerson said they source as much of their food as possible from within the state. “Ninety-five percent of our seafood comes from the Gulf,” Emerson said. “We only use Gulf shrimp. We use 100 percent jumbo lump crabmeat in dishes like our crab cakes, which are the best in the state. We never use imitation crabmeat. I’d rather charge a little more and give a better prod-
uct. Customers appreciate that.” Emerson said they like to aim for Southern fare with a twist. It is like Sunday dinner with the family with all the fresh vegetables your mother or grandmother would cook. “We are just kind of turning up the volume a little and putting our twist on traditional meals,” he said. Emerson said the City of Ridgeland has been very helpful in helping them obtain the necessary permits. “We have been lucky with that and with the support from the community,” Emerson said. “Without that, nothing else would matter.” In addition to their chef ’s specialties, they also support local artists whose works adorn the walls of the dining room at the present location. Plans are for local art at the new location, as well. Local 463 Urban Kitchen is open for lunch from 11 a.m. to 2 p.m. Monday through Friday and for dinner from 5:30 p.m. until Monday through Saturday. It plans to add Saturday lunch.
ABB held an open house on Sept. 30 to show off its Senatobia operations that have been going on for about a month. The Swiss-Swedish manufacturer of power and automation equipment expects to have about 100 workers by year’s end and aims for 300 at the end of five years. The Senatobia facility takes the place of an ABB facility in Italy. “We will be manufacturing products here specifically for the U.S. market,” ABB official Giampiero Frisio said in a news release. Among its products will be circuit breakers. The fact that the plant is only about 30 miles from the FedEx terminal in Memphis was a major reason for locating in Tate County, company spokesman Harry Hurst said in a telephone interview. Another is the fact that an ABB distribution center is in Byhalia, Hurst said. The company projects having 200 employees by the end of 2018 and 300 by the end of 2022, Hurst said. Hurst declined to reveal the pay range but said that compensation is “very, very competitive.” The opening of the plant “is a historic economic development milestone for Senatobia and Tate County as this great company [brings] hundreds of new career opportunities to the people of north Mississippi,” MDA Executive Director Glenn McCullough Jr. said in the release. ABB operates in about 100 countries and employs approximately 140,000. Its North American operations, headquartered in Cary, N.C., employ about 20,000. The fact that the 85,000-square-foot plant is already producing marketable products is far beyond the original and only previous tenant in the Senatobia plant, Twin Creek Technologies. Twin Creek closed its operation in 2012 after failing to produce marketable solar panels or reach, significant employment, and leaving the state of Mississippi $27.7 million in the hole. Senatobia Mayor Alan Callicott was unavailable that afternoon to address where the city stands on paying back $18 million it borrowed for the building of the plant. The MDA provided ABB with $3.5 million for infrastructure and training. The city and county granted the company 10-year property tax breaks.
October 7, 2016
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GULF COAST
Storefront maker moves fabrication to Waveland By LISA MONTI mbj@msbusiness.com
Infinity-AP is moving its custom storefront fabrication operation from Chalmette, La., to the vacant 84 Lumber location off U.S. 90 in Waveland. Co-owner Rick Bradley said the goal is to open in early 2017 with up to 15 employees. The company designs, engineers and fabricates custom storefronts for international retailers. Bradley said their best known customers are Abercrombie & Fitch and its subsidiary Hollister Co., and Victoria’s Secret and its PINK chain of stores for younger customers. Infinity-AP also has done work for American brands around the world, including the Middle East, Central and South America and the Caribbean. The company outgrew the 10,000-square-foot building it leased in Chalmette. The new location has a 20,000square-footbuilding, a 10,000 square feet building and two canopied areas with 9,000 square feet each. The entire site covers almost five acres. “We are going to be bringing about $750,000 worth of
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meeting expectations. Bethany Haynes and her 3-month-old daughter, Liora, were leaving the Kroger in Jacksonian Square on Monday. She was asked if she knew about the new program. She said she did, but that hadn’t had time to sign up. “It sounds appealing, being a new mom,” said the Jackson resident. “I’ll have to be more strategic in my meal planning,” she said. Orders can be placed by going to kroger.com/onlineshopping and selecting a store and listing the items. The items are then brought by a store employee to be picked up at a designated spot on the parking lot. Kroger entered the Jackson market last week, beating Walmart by a few days. Krogers at 1070 Highway 51 in Madison, 6745 S. Siwell Road in Byram and in 3408 Pemberton Square Boulevard in Vicksburg offer the service, in addition to a store in Hernando and one in Southaven. The Cincinnati-based chain started offering the service in the Midwest last year. Reviews have been generally complimentary,, according to published accounts. Lisa Murtha, writing in Cincinnati Magazine, endorses the service, but offers a few helpful tips. She says if you wait till the day before “you risk all the time slots being full, or being left with a few random time choices that don’t work with your schedule.” Further, she writes, her experience has been that “as soon as your time is reserved,
equipment from Chalmette and likely will invest $300,000 in the facility just to get it up and running,” Bradley said. “We’ve got several months worth of renovations.” Infinity-AP is based in Dallas, where it was founded by Bradley and Herb Buford four years ago. Half of their 25 employees work in Dallas. “In Waveland, we’re looking at 12 to 15 jobs initially,” Bradley said. Bradley has designed stores for GAP and the first 50 Apple stores and was general manager of the company that produced all of the glass systems for Cowboy Stadium in Dallas. He will oversee the new Waveland fabrication operation while Buford works out of the Dallas office with Infinity’s engineers and drafters. Bradley said the retailers have a standard design for their storefronts and his company manipulates the aluminum and glass to fit the physical space. They also work with retailers who have a concept but no detailed designs for their storefronts.”We say, ‘Show us what you’d like to have and we’ll show you how to build it.’ “ Bradley estimates there are only about a half dozen companies like his in the U.S. that do storefronts.
“It sounds appealing being a new mom. I’ll have to be more strategic in my meal planning.” Beth Haynes
In an average year, Infinity-AP will produce about 100 storefronts, mostly for U.S. locations. The storefronts are made of glass, aluminum sheet materials and aluminum composite material. and each takes about two days to fabricate. In addition to designing the storefronts, Infinity-AP stocks hard-to-find display windows, door handles and other custom design elements. “We manage the glass purchases and go to the sites to marry the glass up with the metal portion,” he said. The fabricators will work a single shift but more production may be added. “Right now we can manage our capacity off a single shift but that could change in 2017,” he said. Bradley said Infinity-AP has seen a continued increase in business, which reflects an improving economy and more construction. “In the retail world, typically the high-end retailers will turn over their store design every seven years,” he said. But aggressive retailers like L Brands, the parent company of Victoria’s Secret, update their storefronts more often. “We don’t see a downturn to their business,” he said.
you have until midnight that same day to load items into your [virtual] cart. If you do not officially place your order by midnight, you lose both your cart contents and your time slot, and have to start over.” She said placing an order for her family of five takes her about 40 minutes, and, with a 10-15-minute wait at the pickup site, she cuts her shopping time in half. The first three QuickList orders are free. After that, it’s $4.95 per order. There is no minimum order, said Teresa Dickerson, public relations manager for Kroger’s Delta Division.
Walmart, meantime, began its rollout in the state on Monday. And it is one-up on its rival in one regard. The service is free.But there is a $30 minimum purchase. Stores in Pearl at 5520 Highway 80 East, Clinton at 950 Highway 80 East and Flowood at 5341 Highway 25 now offer the service. Orders are placed at walmart.com/grocery or though a Walmart Grocery mobile app.
THE FUTURE OF
William K. McBeath III Joins Watkins & Eager Watkins & Eager is pleased to announce that William K. O b8½} }8µ bY ½}b o² 8µ 8 еµ O 8½b¢ Ð 8½ Èb n Brandon, Will is a 2016 graduate of the Mississippi College School of Law, where he was associate editor of the Mississippi
bub 8É *bÈ bÉ¢ b } Yµ 8 8O}b ² n в½µ Communication from Mississippi State University. Will’s principal areas of practice will be Healthcare, Consumer Financial Services, Commercial Lending and Finance, and Public Finance.
The Emporium Building | 400 East Capitol Street | Jackson, MS 39201 Phone: 601.965.1900 | www.watkinseager.com Free background information available upon request | James J. Crongeyer, Jr., Managing Member
10 I Mississippi Business Journal I October 7, 2016 COMMERCIAL FINANCE 701
Zoning – trust, but verify, authenticate & insure oning plays a critical role throughout the life of a commercial development. In terms of reviewing zoning status, the Reagan-adopted “trust, but verify” adage should come to mind. Zoning, however, can be quite complex and the more appropriate proverb might be “trust, but verify, authenticate and insure.” As the term is generally used, “zoning” refers to the approved usage of real property as dictated by ordinances of local government. As examples, may the property be developed for office use, residential development (multi-family or single family), or industrial purposes? But zoning ordinances are considerably broader than a simple classification. Related ordinances often impose additional restrictions such as setbacks, maximum densities, required parking spaces, and limitations on heights. This article addresses the various methods, issues and challenges with the determination and confirmation of zoning status. The Basics. In the first instance, parties often look to zoning maps and zoning certificates. Zoning Maps. Some years back, a zoning map was a large black and white scroll that could be viewed at city hall or the county courthouse. Fast forward to modern times and the zoning map might be a few mouse clicks away. You’ll likely find a free, navigable, multi-layered, mega-pixel, zoning map in a .pdf format on a government website. Zoning Certificates. Parties routinely obtain “zoning certificates” from a local government. This elementary, government-issued certificate provides a written indication of the zoning classification, though it often uses confusing jargon such as tax parcel numbers (as opposed to a straightforward street address) and references zoning classifications such as C-1A Restricted Commercial Development (rather than providing a plain-language permissible use description, such as “commercial office building”).
Z
Molly Jeffcoat Moody & Ben Williams
The Problems. Zoning maps and certificates are beneficial, but have their limitations. Maps are secondary sources of information and represent a depiction of the various ordinances. A zoning certificate merely represents the government clerk’s understanding of the zoning classification. An inaccurate map or incorrect certificate does not change the zoning ordinance or grant a variance. There is little or no recourse for an inaccurate map or incorrect certificate. You deal with the government at your peril. What More Could You Want? Recognizing the limitations of zoning maps and certificates, real estate professionals often require additional verification. Options include: 1. Zoning Letter. In lieu of the minimalistic zoning certificate, some friendly jurisdictions have a more extensive form zoning letter that addresses a host of zoning-related issues. And the zoning departments in some jurisdictions are even willing to complete a more detailed form tendered by the requesting party. Still, as with the zoning certificate itself, scant relief is available to the recipient of an inaccurate zoning letter. 2. Zoning Report. Numerous businesses, including title insurance companies, offer comprehensive “Zoning Reports” or “Zoning Compliance Reports” that address all
aspects of zoning. This comprehensive puppy leaves few stones unturned in analyzing the zoning status and use restrictions of a property. Typical information includes classification, applicable variances, special permits, conditions rezoning approvals, outstanding violations, right to re-build, parking requirements, and certificate of occupancy history and status. Reports usually run between $500 - $1500. 3. Legal Review of Restrictive Covenants. Private covenants are not technically zoning restrictions, but can be just as onerous. Some sellers of land include restrictions of future use in the deed. Developers often file “restrictive covenants” in the land records. Many newly developed business parks come with a set of covenants to provide various lot owners in the development certainty as to the future of the land. While these covenants are privately imposed, they have a similar effect to zoning and are enforceable in court. A thorough review is appropriate. The title report is likely to merely indicate the title is, as an example, subject to the “Declaration of Covenants” filed at Book 1814, Page 1968, but the attorney should carefully review the underlying instrument and obtain the appropriate endorsements to a title policy (such as the ALTA 9 Series – Private Rights). 4. Survey. The “ALTA/ACSM Land Title Survey” (an “ALTA survey”) is the gold standard of surveys. It is, admittedly, a higher-priced type of survey that is not always appropriate or necessary for a given project. The ALTA survey can be tailored to address all zoning-related issues, such as
setbacks, parking, height, and density. (See COMMERCIAL FINANCE 701: Land surveys: More than just a sketch, Mississippi Business Journal, June 25, 2016.) 5. Title Insurance Policy with Endorsements. The standard title insurance policy excludes zoning, but the policy can be enhanced by the addition of various endorsements related to zoning and use. Endorsements address issues including access, zoning, private restrictions, and survey matters. In the event of a dispute, the title insurance company will defend, attempt to cure, and pay for insured damages. (See COMMERCIAL FINANCE 701: Enhancing a title policy with endorsements, Mississippi Business Journal, August 27, 2015.) Risk Aversion. Developers are, by nature, more willing to accept risk than lenders. A real estate developer might purchase land without the benefit of the more expensive options listed above. For large real estate construction loans or acquisitions, local lenders generally require a detailed survey and a title insurance policy with several endorsements (including a zoning endorsement). Because of the long-term nature of the loan, the “permanent” loan market has the highest standards, requiring the zoning compliance report, ALTA survey, and lender’s title policy with a host of endorsements. (See COMMERCIAL FINANCE 701: Permanent loans & other oxymora, Mississippi Business Journal, April 30, 2015.) SUMMARY AND CONCLUSION. Zoning is complex and involves more than mere classification. Owners and lenders need to fully analyze the zoning classification, approved use, and variance issues associated with a property. Several types of reports, certificates and insurance policies are available. Our advice? Trust, but verify, authenticate and insure. Ben Williams and Molly Jeffcoat Moody are attorneys engaged in an active commercial law practice at Watkins & Eager PLLC. Ben and Molly are both recognized by Chambers USA and Best Lawyers in America. Ben was selected as Best Lawyer’s 2016 Project Finance Lawyer of the Year in Jackson, Mississippi. Additional information is available at www.watkinseager.com.
WISECARTER WISE CARTER CHILD & CARAWAY, P.A. ATTORNEYS AT LAW
is pleased to announce that
FREDERICK T. HOFF, JR. and
S. TRENT FAVRE have joined our firm’s Gulf Coast Office JACKSON OFFICE GULF COAST OFFICE 401 E. Capitol St., Suite 600, Jackson, MS 39201 1105 30th Ave., Suite 300 P.O. Box 651, Jackson, MS 39205-0651 Gulfport, MS 39501 Phone: 601.968.5500 | Fax: 601.968.5593 Phone: 228.867.7141 | Fax:228.867.7142 HATTIESBURG OFFICE 601 Adeline Street, Hattiesburg, MS 39401 P.O. Box 990, Hattiesburg, MS 39403-0990 Phone: 601.582-5551 | Fax: 601.582.5556 www.wisecarter.com
http://www.msbusiness.com
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NEWS MAKERS Jones given lifetime honor Butler Snow lawyer Christy D. Jones has been awarded a lifetime achievement membership to America’s Top 100 Attorneys. America’s Top 100 LLC annually recognizes, on a lifetime basis, the most qualified and accomplished professionals in Jones various fields of practice, including attorneys, doctors, dentists, realtors, accountants, engineers, and architects (among other professionals). Jones focuses her practice on drug and device and commercial litigation involving the pharmaceutical, medical device and health care industries. She has more than 30 years of trial experience, has was national trial counsel representing various corporations and has tried cases throughout the United States. She is also a fellow in the American College of Trial Lawyers. Jones is a recipient of the Mississippi Bar Foundation’s Professionalism Award, the Professionalism Award of Hinds County, and Outstanding Woman Lawyer of the Year.
Newman oversees guide Bradley Arant Boult Cummings partner and former American Health Lawyers Association president Dinetia Newman of Jackson recently served as a co-editor and contributing author for the AHLA’s newly published guide Representing Hospitals and Health Systems Handbook. Eleven other Bradley Newman attorneys from across four offices also contributed to the handbook. Representing Hospitals and Health Systems Handbook overviews the key issues that those who represent hospitals and healthcare systems need to be informed about, and is also an important guide for those who represent physicians, diagnostic imaging facilities and other healthcare facilities, as well as financial institutions.
Laney in credit union HOF Navigator Credit Union Board member Bobby W. Laney has been inducted into the Mississippi Credit Union Hall of Fame. The designation is the MSCUA’s highest honor and recognizes inductees for their commitment, leadership and dedication. Selections are based on their tenure, service and con- Laney tributions to their credit union and the industry. Laney began his credit union service as a Loan Committee volunteer for Ingalls Employees Credit Union (now Navigator Credit Union) in 1976. In 1983, the Tupelo native was elected to the Board of Directors. He was selected to serve as Vice Chair of the Board in 1987 and in 1989 his peers elected him Chairman of the Board. In addition to serving as a Board member, Laney served as a CUNA Governmental Affairs Conference Representative in 2006, 2007, 2013 and 2016.
For announcements in Newsmakers, contact Frank Brown at 601-364-1022 or frank.brown@msbusiness.com
October 7, 2016
Top small rural hospital honored
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Nowell promoted at Taylor Hal Nowell has been promoted to the position of General Sales Manager at Taylor Machine Works. Nowell has served as Regional Sales Manager of TMW for the past five years. Prior to his recent tenure, Nowell took a short break from Taylor to work in his family business. Nowell has over 18 years of experience Nowell in the large forklift and equipment industry. In his new position, Nowell will assist the Director of Sales and the management group in the continuance of growth of TMW products while providing support and leadership to the TMW sales team. Taylor Machine Works, Inc. of Louisville designs, engineers, and manufactures large material handling equipment from 16,000-120,000 pounds.
Courtesy of the Mississippi Hospital Association
The Mississippi Hospital Association recently presented its inaugural Outstanding Mississippi Small Rural Hospital Award to North Sunflower Medical Center in Ruleville. Receiving the award from Tim Moore (right), president /CEO of the MHA, are, from left, Rodney Clark, COO of NSMC; Sam Miller, CEO of NSMC; and Billy Marlow, Executive Director of NSMC
Goldman joins Biloxi clinic Gene Goldman, MD, has joined Memorial Physcian Clinics in the practice of Sports Medicine/Family Medicine at Memorial Orthopedic Clinic in Biloxi. Goldman received his undergraduate degree at Purdue University in West Lafayette, Ind. He completed his internship and residency in family medicine at Goldman Columbus (Ga.) Regional. He was fellowship trained in sports medicine at The University of Mississippi in Jackson.
USM hires pathway director As part of a concerted Quality Enhancement Plan, Eagles Engaged, The University of Southern Mississippi has selected April Gonzalez as Director of Pathway Experiences. Gonzalez has 16 years of experience, and will focus on connecting more undergraduate Gonzalez students to internships and fieldwork linked to their postgraduation goals. Gonzalez has worked in higher education within both public and private universities with her most recent experience working with the College of Engineering at the University of Tennessee as its career consultant. Her previous background includes roles at the University of North Carolina at Charlotte as the associate director of the Employer Connection Programs, assistant director and business career advisor and at Philadelphia University as a career counselor. While at UNC Charlotte, she oversaw the Experiential Learning Program as a part of the University Career Center, which included both academic transcript notation internships and cooperative education experiences. Gonzalez holds a Bachelor of Arts in International
Studies from Maryville College located in Maryville, Tenn., and a Master of Education with a concentration in College Student Personnel from The Ohio University in Athens, Ohio.
Design firm wins 2 awards Jackson-based Barrett Design Studio has been presented two awards from the International Interior Design Association. In the large hospitality category, the Fresno Holiday Inn Express received the “Award of Recognition.” Barrett’s design for a Boutique Guest Room prototype in New York Chinatown was given the “Award of Recognition” in the small hospitality category. Presented by the Delta Regional Chapter of I.I.D.A., these awards recognize excellence in Hospitality interior design in the Mississippi, Louisiana, and Arkansas tristate area. Located in Jackson with a satellite office in New York, Barrett Design Studio has hotel projects located from New York to California, Mississippi to Indiana. The studio was Founded in New York City in 1990 by Celia Barrett, a Mississippi native.
Gulfport director named The Mississippi Gulf Coast Chamber of Commerce, Inc. has named Hannah Burnett as Director of the Gulfport Chamber of Commerce A Gulf Coast native, Burnett graduated summa cum laude from Mississippi State University with a bachelor’s degree in hisBurnett tory. She went on to complete her master’s degree at the university in Public Policy and Administration. She worked in research administration and proposal development while working on her masters. Burnett completed the Montgomery Leadership Program through the university in the spring of 2014. Within the Starkville community, she volunteered with the Christian Women’s Job Corps.
Waldon joins Tenn-Tom Don Waldon from Fayette, Ala., has been appointed to the Tennessee-Tombigbee Waterway Development Authority. Waldon has a long association with the Tennessee-Tombigbee Waterway Development Authority. Over a 30-year period, he served 21 years as Administrator Waldon of the Authority, and as President of the Tennessee-Tombigbee Waterway Development Council during that period. He is a transportation and economic development consultant for various businesses.
Columbus hospital honored Baptist Memorial Hospital-Golden Triangle has received the American College of Cardiology’s National Cardiovascular Data Registry ACTION Registry – GWTG Platinum Performance Achievement Award for 2016. The hospital is one of only 223 hospitals in the United States to receive the honor. The award recognizes the hospital’s commitment and success in implementing a higher standard of care for heart attack patients and signifies that Baptist Golden Triangle has reached an aggressive goal of treating these patients to standard levels of care as outlined by the American College of Cardiology/ American Heart Association clinical guidelines and recommendations.
Gardner joins PPM Christy Gardner has joined the corporate marketing team at PPM Consultants, where she will focus on client relationships and develop the firm’s portfolio across the southeastern United States. Gardner has six years of marketing experience from SEMS, Inc. Gardner Gardner holds a bachelor of arts in business management form Southeastern Louisiana University. She is a member of a number of professional organizations including the Mississippi Petroleum Marketers and Convenience Stores Association.
12 I Mississippi Business Journal I October 7, 2016
For announcements in Newsmakers, contact Frank Brown at 601-364-1022 or frank.brown@msbusiness.com
NEWS MAKERS
Baty on Main Street board Russell Baty, the director of the Main Street Chamber of Leake County has been elected to the Mississippi Main Street Association Board of Directors. Baty of Carthage has been elected by fellow MMSA Directors to serve as the 2017-2018 Directors’ Representative on the Baty state board. Baty is the Program Director for the Main Street Chamber of Leake County. He began his career with Main Street in 2010 as Program Director of the Carthage Main Street Program. Baty, a native of Demopolis, Ala., is a graduate of the University of Alabama with a double major in History and Communications and post graduate work in Library Science with an emphasis on Historical Preservation. He is married to Lou Ann Harvey and together they own The Bakery and Café in downtown Carthage. They have four children and five grandchildren. The MMSA Board provides two positions on the statewide board for Directors’ Representatives. Each representative serves a two-year term and represents the 52 Main Street programs in Mississippi on the state level. Baty joins Jennifer Gregory, CEO of the Greater Starkville Development Partnership, who is serving as the 2016-2017 Directors’ Representative on the board. Baty replaces Lori Tucker, Director of the Baldwyn Main Street Chamber, who will complete her term in December.
Leonard takes Biloxi post Mike Leonard, a Biloxi native and Marine, has been approved as Biloxi’s next chief administrative officer by a 6-1 vote of the Biloxi City Council. He is expected to begin work Oct. 1. He graduated from Biloxi’s Notre Dame High School in 1965.
Courtesy of Mississippi Hospital Association
Wanda Jones (left), president of the MHA Society for Healthcare Quality, presents Cindy Magee Jones with the 2016 Distinguished Service Award.
Jones distinguished service winner Cindy Magee Jones, MA, CPHQ, director of risk management and performance improvement for Brentwood Behavioral Healthcare of Mississippi, has been named the 2016 Distinguished Service Award winner for the Mississippi Hospital Association’s Society for Healthcare Quality. She was presented the award during the society’s annual meeting in August. Jones received her B.S. from Southern University in Hattiesburg and an M.S. & M.A. in Psychology from University of the Pacific in Stockton, CA. She has over 25 years of behavioral health experience including Youth Villages, Region 8 & Brentwood Behavioral Healthcare of Mississippi. She joined the Brentwood team in December of 2000. By 2001, she was named director of assessment & referral. In 2008, Cindy was named director of risk management and performance improvement, and she received her CPHQ certification in 2014.
Pecan House recognized Leonard
Busylad’s Stubbs honored Busylad Rent-All’s Event Coordinator Erin Stubbs has been selected by Rental Management magazine as one of the 2016 “10 to Watch under 40.” Rental Management is the official publication of the American Rental Association. In this month’s issue, Stubbs is profiled along Stubbs with nine other young professionals across the United States, Canada, Australia and New Zealand. Stubbs, 32, represents the third generation in the family-owned Busylad Rent-All. The company was started by her grandfather, Van Stubbs, Sr., in 1967. It is now owned by her parents, Buddy and Mary Stubbs. Busylad specializes in tool and equipment rentals, and event rentals and planning. After earning a degree in marketing from Mississippi State University, Erin spent a year in the furniture industry. Since she began full time employment at Busylad in 2007, she has been focused on growing the event rentals segment of the business.
Indianola Pecan House was recognized with a Special Research Award recently during the 2016 Governor’s Conference on Tourism in Natchez. Indianola Pecan House expanded its operations the second half of 2015, with 10-15 full-time and parttime jobs. This involved research and a private-public partnership with the City of Indianola, Mississippi Development Authority, Sunflower County Board of Supervisors and the Sunflower County Economic Development District. The Indianola Pecan House’s locally made products attracts customers from all 50 states, Puerto Rico and 11 other countries, particularly Australia, Canada and the United Kingdom. It was founded in 1979.
Baker Donelson recognized For the second consecutive year, the law firm of Baker Donelson has been named one of Fortune’s 100 Best Workplaces for Women. Baker Donelson is the second highest ranked law firm on the list and is ranked 53rd overall, up from last year’s ranking of 66th. The list is based on employees’ assessments of communications with management, options for development and training, and support for work/life balance, among other factors. The ranking also takes into account how well-represented women
are within the workforce overall and in management and executive positions. The 100 Best Workplaces for Women list, published by Fortune in partnership with consulting firm Great Place to Work, is based entirely upon feedback from more than 137,762 women.
Staff changes at Renasant Renasant Bank in Tupelo recently announed several staff changes. John Curlee of Tupelo has been promoted to Assistant Vice President. Curlee has been with Renasant since 2000 serving in the position of Senior Credit Analyst. Curlee attended the University of Mississippi, graduating with a B.B.A in Managerial Finance. He also attended the Southeastern School of Consumer Credit. He is on the local board of the Tombigbee Chapter of Ducks Unlimited and coaches baseball and soccer teams. He and his wife, Jennie, have one son, Miles. The Curlees are members of Calvary Baptist Church, where John serves as a deacon and sings in the sanctuary choir. Gale Sides has been promoted to Assistant Vice President/Payroll Administrator. Sides has been with Renasant since 1979 serving in the position as Payroll Administrator. Sides attended Itawamba community College
graduating with an Associates Degree in Business Administration. Sides is active in her church, Wallerville Baptist, where she serves on the budget and vacation bible school committees. Colby Martin of Aberdeen has been promoted to Banking Officer. In her new role with Renasant, Martin will be responsible for building relationships with Renasant clients by managing a consumer lending portfolio. Martin attended Mississippi State University where she was a member of Kappa Delta Sorority and graduated with a Bachelor’s Degree in Marketing.. Martin assists with the children’s choir at First Baptist Church, volunteers at the Northeast Mississippi Down Syndrome Society Buddy Walk, and works with the Mississippi Bankers Association as a volunteer for a Banker in Every Classroom. She and her husband, Daniel, have 2 children, Ainsley and Luke. The Martins are members of First Baptist Church Amory. Stacy Crowley of Houston has been promoted to First Vice President/Employee Relations & Diversity Officer. Crowley has been with Renasant since 1996 serving in the position of Employee Representative. Prior to this position, she worked as a business manager processor, bank trainee and underwriter. She will be responsible for developing, coordinating and managing the Employee relations and Diversity and efforts for Renasant. Crowley attended the University of Mississippi, graduating with a Bachelor of Business Administration degree in banking and Finance. She also attended the Barrett School of Banking and obtained a Professional in Human Resources certification. She works with the United Way and Alpha Kappa Alpha Sorority, Inc. She and her husband Patrick, have three children, McKayla, Addison and Carson. They are members of the love Christian Center. Derrick Young of Tupelo has been promoted to Vice President/Treasury Management Operations Officer. Young has been with Renasant since 2004 serving in the Call Center and Treasury Management Operations. Young will be responsible for Treasury Management Operations and Support. Young attended the University of Mississippi, graduating with a B.B.A in Marketing and a Bachelor of Accountancy. He and his wife, Michelle, have one daughter, Daphne.
Firm’s new website noted Deutsch Kerrigan, a premier regional law firm concentrating in legal counseling and complex, highstakes litigation defense, was recently given an Honorable Mention recognition at the Legal Marketing Association Southeastern Chapter conference in Orlando, Fla. In October 2015, Deutsch Kerrigan rebranded by changing the firm name, logo, color scheme, and launching a new website. The new website features areas to learn information about the firm, the attorneys, industry news and career opportunities with Deutsch Kerrigan. Designed and developed by Right Hat, LLC and Americaneagle.com, both based in Chicago, IL, the site is meant to be compatible on all types of computers, tablets and mobile devices. The “Your Honor Awards” is the longest-running annual international award program recognizing excellence in legal marketing.
NEWS MAKERS Governor appoints Dowdy Gov. Phil Bryant recently appointed John Dowdy director of the Mississippi Bureau of Narcotics. Dowdy replaces Sam Owens, who is retiring. Dowdy joins the MBN from the U.S. Attorney’s Office for the Southern District of Mississippi, where he worked in the criminal division. Dowdy Dowdy started in the U.S. Attorney’s Office in 1988. Dowdy’s appointment is effective Nov. 1. As chief of the criminal division, Dowdy oversaw dozens of narcotics investigations and prosecutions involving major drug trafficking organizations. Dowdy also served on the executive committee of the Gulf Coast High Intensity Drug Trafficking Area Task Force. Dowdy’s auxiliary responsibilities at the U.S. Attorney’s Office included coordinating task forces related to Hurricane Katrina fraud, public corruption and environmental crimes. He was the office’s coordinator for victims’ rights, confidential human sources and crisis management. Dowdy enjoyed a decorated career as a prosecutor. Among his honors are three Special Achievement Awards from the United States Department of Justice, the Director’s Award for Superior Performance as an AUSA in 1998 and the agency’s Certificate of Appreciation for his work reviewing FBI reports related to the terrorist attacks of Sept. 11, 2001. Dowdy graduated from Mississippi College with a bachelor of science in business administration. He earned his law degree from Mississippi College School of Law.
Hatcher hires Rayburn Michael Hatcher & Associates, Inc., a landscaping contractor in the Mid-South, has hired Shelby Rayburn as a Landscape Designer. Rayburn received his bachelor’s degree from the University of Mississippi and his master’s degree in landscape design from Mississippi State Univer- Rayburn sity. Rayburn’s responsibilities are guiding clients through the entire landscape construction process, beginning with initial site visits and other meetings to determine the customers wants and needs and lasting through the end of construction. He will also produce the design, estimate the proposal and present both to the clients. Once approved, Rayburn will act as an intermediary between the construction crew and the customer, discussing all on-site changes and issues that may arise.
Berman named to HOF Lyle Berman, opened the Grand Casinos in Biloxi and Gulfport, is one of five people recently inducted into the Gaming Hall of Fame Class of 2016. Other honorees are John Acres, a casino-technology pioneer; Don Brinkerhoff, the architect who designed many of Las Vegas’ iconic landmarks; Redenia Gilliam-Mosee, the first African-American casino vice president in Atlantic City, and Richard “Skip” Hayward, a visionary for Tribal casinos.
For announcements in Newsmakers, contact Frank Brown at 601-364-1022 or frank.brown@msbusiness.com
October 7, 2016
Donate Life honors officers
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Mississippi Business Journal
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tor, a regulator and a grower of broilers and pullets. His family built some of the first broiler houses in Leake County in the late 1940s. They were contract broiler growers for R & R Milling. Leake County is the state’s leading county in poultry production according to Thornton the 2012 USDA Census of Agriculture. Thornton worked for 34 years as a poultry epidemiologist for the Mississippi Board of Animal Health. He then worked for four years as a Poultry Extenion Specialist at Mississippi State University. He currently is consultant conducting animal welfare audits for Process Management Consulting of Nashville, Tenn. and is a contract grower for Peco Farms. Poultry is Mississippi’s largest agricultural commodity with a $20 million impact, including $3.5 million paid to farmers. Thornton is the 33rd inductee in the Mississippi Poultry Hall of Fame since it was created in 1973.
TEC appoints 2 Courtesy of Donate Life Mississippi
Mississippi Department of Public Safety officials, Maj. Ken Brown and Capt. James Kelly, were recognized recently by Donate Life Mississippi in Meridian for their efforts to register more Mississippians as organ, eye and tissue donors. Donate Life Mississippi is a union formed by Mississippi Organ Recovery Agency, Mid-South Transplant Foundation of Memphis, and the Mississippi Lions Eye Bank to promote the need for organ, eye and tissue donation. DPS examiners are required by law to ask those receiving a new Mississippi Driver’s License or renewing a current one if they wish to be an organ, eye and tissue donor. To date, the DPS has registered nearly 745,000 of the more than 760,000 Mississippians registered to be organ, eye and tissue donors.
In 1990, Berman co-founded Grand Casinos Inc. The company set the model for building resorts, rather than confining casinos to boats, in South Mississippi. While Las Vegas companies initially shunned South Mississippi after casinos were legalized, Berman built a formidable casino enterprises. Fortune Magazine named Grand Casinos the fastest growing company in America in 1995, and under Berman’s leadership, the company grew from a three-person startup to an organization employing 20,000 people with a market capitalization of $1 billion. Berman also is a three-time champion of the World Series of Poker and was inducted into the Poker Hall of Fame in 2002.
SB&J’s Blackwell recertified Blen Blackwell, PA-C of Southern Bone and Joint Specialists, P.A. recently received recertification of National Commission of Certification of Physician Assistants. Certified physician assistants must maintain their certification every 10 years by following a two-pronged process which in- Blackwell cludes documentation of continuing medical education and successful completion of a recertification exam. Blackwell partners with Elliott Nipper M.D. and John Kosko, M.D. Blackwell, a Columbia native, earned his bachelor’s degree from the University of Southern Mississippi and his master’s degree of science in physician assis-
tant studies from South University in Savannah, Ga. He is certified by the National Commission on Certification of Physician Assistants. He is a member of the American Academy of Physician Assistants, Physician Assistant in Orthopedic Surgery and the Mississippi Academy of Physician Assistants.
Poultry group taps McNeely Greg McNeely, CEO and President of McNeely Plastics, is the Mississippi Poultry Association’s Allied Industry leader of the Year for 2016. The award annually recognizes one of the association’s allied industry members who work closely with the association and recognizes the leader’s McNeely contribution to the industry. McNeely Plastics of Clinton makes plastic bags and films for poultry products sold in grocery stores across the nation. They also serve the catfish, seafood and other food industries. In 2003, Mega Plastics was selected to the Mississippi Business Journal’s “Fast 40.” Greg merged Mega Plastics in 2005 into what is today, McNeely Plastics.
Thornton joins poultry HOF Danny Thornton of Carthage is the latest inductee into the Mississippi Poultry Hall of Fame. Thornton is the first poultry grower inducted into the Hall of Fame. He has been a consultant, an educa-
TEC has made two recent appointments. Keith Boteler was appointed Customer Relations Manager at TEC located in Jackson. Boteler will be responsible for influencing customer loyalty and retention of customers. Boteler attended Hinds ComBoteler munity College and Belhaven College. He served four years in the U.Ss Air Force and is a proud veteran. Boteler also has over 20 years of telecommunications experience with him, which will be a great asset and benefit to TEC. Boteler currently resides in Ridgeland with his daughters, Brooke and Sydney. Daniel Riley has been appointed as Technician at TEC lo- Riley cated in Bay Springs. Riley will be responsible for the installation and repair of company products and services. Riley currently resides in Stringer with his wife, Carie, and children, Hunter and Logan.
Freight line promotes Smith Southeastern Freight Lines, a provider of regional less-thantruckload transportation services, has promoted Jermaine Smith service center manager in Jackson. Smith has nearly two decades of experience at Southeastern, beginning his career as a pickup and delivery driver in MontSmith gomery, Ala. Since then, Smith has served as a pickup and delivery operations supervisor and pickup and delivery operations manager. Most recently, he was an assistant service center manager in Austell, Ga.. Smith enjoys spending his free time with his two sons, Tramaine and Jermaine, and cheering for the Alabama Crimson Tide.
October 7, 2016 • MISSISSIPPI BUSINESS JOURNAL • www.msbusiness.com
AN MBJ FOCUS:
BANKING & FINANCE
CPAs say autumn a good time to take steps to maximize tax planning By BECKY GILLETTE mbj@msbusiness.com
ost people think of the spring as tax season. But when the autumn leaves are falling is a good time for business tax planning. “Overall, the fall season is a good time to do some tax planning because of the majority of the year has passed,” said Lee V. Martin, CPA, director, BKD, LLP, Jackson. “Most clients have a better understanding of how they are going to do this year unless they are a retailer, whose busiest time of the year is the last quarter.” Martin advises clients to check with their CPA before making major transaction such as real estate sales and purchases that might have major implications for capital gains taxes. If she only hears about the transactions after the fact, she doesn’t have an opportunity to give advice on how to structure the transaction to save taxes. “There might not be a better solution, but you don’t know unless you talk to somebody about it,” Martin said. “If it is something you not familiar with, always seek help. It is good to just have a sounding board a lot of time. There might not be an issue, but just being able to talk through it helps.” Small businesses in particular can find it difficult to carve out time for financial management. But she advises taking time before the end of the year to do some planning. It might only take up an hour or so to go over your yearly operations with a CPA to see if any red flags come up, or there are any opportunities for saving on taxes. “Go through accounts receivable and see if anything is not going to be collected,” she said. “If you are in an income situation and
M
trying to defer income, defer sending out invoices until the end of the year so that income goes on next year’s taxes. Scrub your depreciation schedules to see if there are assets that you no longer have. There might be some write-offs potential there. If you are Carraway going to have capital gains, you may might want to sell some securities that will produce a loss to offset some of that gain. And, depending on your income or loss situation, pay your property tax before the year end so you have a deduction for that year.” Ted B. Edwards, CPA, a Edwards member of Haddox Reid Eubank Betts PLLC, said ideally planning is done throughout the year. However, most people don’t think about it until toward the end of the year. “So, yes, autumn is a good time for small businesses to place some focus on tax planning, and, yes, there are certainly things that can be done to reduce tax burdens,” Edwards said. “Even if it is too late in the year to implement some tax planning ideas, a benefit is they could be implemented for the next year.” Edwards said here are some of the areas to be considered: *Is your business operating under the most tax efficient entity format? Should you consider electing to be taxed as an S Corporation? *Does the business have a 401(k) plan or other small business retirement plan? If not, would it make tax, and financial, sense to establish a plan?
*Consideration should always be given to accelerating tax deductions and deferring taxable income, with the goal not only being deferral of income tax, but also possibly having the income taxed at a lower rate. In some cases, depending on how your business has done, the opposite could be true – accelerate income and defer expenses. *If new equipment or business vehicles are needed, does it make tax sense to make the purchase sooner (this year) rather than later? With Section 179, bonus depreciation, and accelerated depreciation, the tax deductions can be nice. *Consider the effect of the relatively new tangible property repair regulations, especially the favorable election to currently expense items if the cost falls below the applicable threshold amount – the “de minimis rules”. *Consider whether your business qualifies for any tax credits such as work opportunity credits or the research and development credits, and what needs to be done to insure eligibility. Always be mindful of the alternative minimum tax, and what might can be done to reduce or eliminate this somewhat hidden tax. The most common mistake Edwards sees is not even considering what can be done to reduce taxes. Most small business owners are focused on running their businesses, doing what they know how to do, and trying to make money. “This is understandable,” Edwards said. “Sometimes, though, people try to do ‘too much’ tax planning. I remind clients frequently that for every dollar you spend, it does not reduce your taxes a dollar. It typically reduces your taxes thirty or forty cents. So, economically, you are still out sixty or 70 cents. In other words, don’t unnecessarily spend a dollar just to save taxes.”
Business owners also need to be aware that Congress extended many tax benefits that were scheduled to expire at the end of 2015. “There are not many changes in 2016 as compared to 2015,” Edwards said. Mike A. Carraway, Jr., CPA, a partner at Grantham Poole in Ridgeland, said the fall offers unique advantages. “For taxpayers reporting on a calendar year, prior year tax returns have been filed, providing a good picture of the results of prior planning and reporting,” Carraway said. “Entering the fourth quarter of the year (for calendar year taxpayers), financial performance for the year against expectations/projections is coming into sharper focus, allowing for better analysis of cash flow, borrowing capacity and needs, capital expenditure requirements, and other budget considerations.” Carraway said areas deserving scrutiny depend on the nature of the business, as well as the unique needs of its owners, but some areas include: planned capital expenditures, current tax structure and its effect on the owners’ access to equity (and the related tax effect of that access, such as regarding compensation), retirement planning and employee benefits, the potential effect of planned or aspirational business combinations, divisions, or restructurings, and many others. Among the most common mistakes Carraway sees are poor or incomplete bookkeeping/accounting, which creates avoidable challenges in proper reporting and planning. Other mistakes include inefficient or inappropriate business/legal/tax structures, improperly planned and/or executed acquisitive or divisive business transactions, incorrectly handled compensation issues, and missed tax deferral opportunities available for everything from tax deferred savings accounts to proper treatment of capital expenditures. Carraway said there have been some significant changes over the past few years, from the treatment of expenditures to repair, improve, or acquire depreciable assets, to the reporting and penalty system put in place by the Affordable Care Act with reSee
TAX PLANNING, Page 16
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16 I Mississippi Business Journal I October 7, 2016 RANK
Company Name
Address
REGISTERED INVESTMENT ADVISORS Phone
Founded
Website
1 Smith Shellnut Wilson, LLC 150 Fountains Blvd., Ste A, Madison, MS 39110 601-605-1776 1995 ssw1776.com 2 Trustmark Investment Advisors Inc. 1701 Lakeland Drive, Jackson, MS 39216 601-208-6576 1925 trustmarkinvestmentadvisors.com 3 The Molpus Woodlands Group 654 N. State Street, Jackson, MS 39202 601-948-8733 1996 molpus.com 4 Barnes Pettey Financial Advisors 252 Sunflower Ave., Clarksdale, MS 38614 662-627-2225 1976 barnespettey.com 5 Medley & Brown 795 Woodlands Pky., Ste. 104, Ridgeland, MS 39157 601-982-4123 1989 medleybrown.com 6 CCG Asset Management 1880 Lakeland Drive, Ste C, Jackson, MS 39216 769-257-5039 2007 comercapital.com 7 Ballew Advisors Inc. 4800 I-55 North, Ste. 21, Jackson, MS 39211 601-368-3500 1988 ballewwealth.com 8 Hardy Reed Capital Advisors, LLC 101 S. Front Street, Tupelo, MS 38804 662-823-4722 2006 hardyreed.com 9 Trinity Capital Investors 1675 Lakeland Drive, Jackson, MS 39157 601-956-3511 2000 10 Peregrine Investment Advisors 101 Webster Circle, Suite 201, Madison, MS 39110 769-216-3232 2013 peregrineinvest.com 11 Abridge Partners 124 One Madison Plaza, Ste 1200, Madison, MS 39110 601-718-0000 2007 abridgepartners.com 12 Financial Concepts 1121 2nd Ave. N., Columbus, MS 39701 662-327-1480 1988 fincon.net 13 HORNE Wealth Advisors 1020 Highland Colony Pkwy., Ste. 400, Ridgeland, MS 39157 601-326-1000 2009 hornewealth.com 14 Optimum Financial Services Inc. 1867 Crane Ridge Dr., Ste. A-202, Jackson, MS 39216 601-981-5900 2001 optimumfsi.com 15 Coker & Palmer 1667 Lelia Drive, Jackson, MS 39216 601-354-0860 1991 cokerpalmer.com 16 McDaniel & Register, EFP Advisors 1501 Lakeland Dr., Suite 250, Jackson, MS 39216 601-206-0006 2009 mcdanielregister.com 17 Woodridge Capital Portfolio Management 800 Woodlands Parkway, Ste. 201, Ridgeland, MS 39157 601-957-6006 2006 woodridge-capital.com 18 Wealthview Capital, LLC 4500 I-55 North, Ste. 263, Jackson, MS 39211 601-981-4040 2009 wealthviewcapital.com 19 Miss. Investment Management Co. 1018 Highland Colony Pkwy, Suite 600, Ridgeland, MS 39157 601-607-4296 bankplus.net 20 AVL WealthCare, LLC 9490 Three Rivers Rd., Gulfport, MS 39503 228-863-0437 1999 avlwealthcare.com 21 E.T. George Investment Management, LLC 102 S. Jackson St., Starkville, MS 39760 662-323-8045 1974 etginvest.com 22 Security Credit Services, LLC 2653 W. Oxford Loop, Ste. 108, Oxford, MS 38655 662-281-7220 2003 securitycreditservicesllc.com 23 New Perspectives, Inc. 303 Highland Park Cv., Ste. B, Ridgeland, MS 39157 601-991-3158 1993 newper.com 24 Mcallister Capital Management 1907 Dunbarton Drive, Ste. E, Jackson, MS 39216 601-362-1000 1195 mcallistercapital.com 25 Woodmont Advisory Group Inc. 301 Boler Estates Drive, Brandon, MS 39042 601-724-1926 2006 26 Mascagni Wealth Management 205 E. Main St., Clinton, MS 39056 601-925-8099 1990 mascagniwealth.com 27 Oxford Investment Advisors 086 Old Taylor Road, Ste 1013, Oxford, MS 38655 662-550-4554 2009 oia-ria.com 28 Vector Money Management Inc. 750 Woodlands Pkwy, Ste.201, Ridgeland, MS 39157 601-981-1773 1988 vectormm.com 29 Davenport, Watts & Drake, LLC 234 W. School Street, Ridgeland, MS 39157 601-898-8069 2003 davenportwattsdrake.com 30 Bergland Capital Management Inc. 1000 Highland Colony Pkwy, Ste 5203, Ridgeland, MS 39157 601-956-5181 1982 berglandcapitol.com 31 Navitas Wealth Advisors, Inc. 574 Highland Colony Pkwy Suite 120, Ridgeland, MS 39157 601-991-2830 2001 navitasltd.com 32 Barfield Wealth Management 405 Galleria Lane, Ste F, Oxford, MS 38655 662-236-6454 1996 barfieldwealthmanagement.com 33 Lee-Way Financial Services Inc. 6659 Highway 98 West, Hattiesburg, MS 39402 601-264-8279 1991 leewayfinancial.com 34 GranthamPoole, CPAs 1062 Highland Colony Pkwy, Suite 201, Ridgeland, MS 39157 601-499-2400 1977 granthampoole.com 35 Renaissance Advisors 602 Steed Road, Suite 110, Ridgeland, MS 39157 601-720-4357 renaissanceadvisors.com 36 Centerpoint Advantage, LLC 414 East Capitol Street, Jackson, MS 39201 601-969-3456 1974 pba-centerpoint.com 37 Wealth Management, LLC 6311 Ridgewood Rd., Ste. W402, Jackson, MS 39211 601-991-0230 2000 Wealthmanagementwinnerslist.com 38 William Denton Hartman 108 Sherwood Cove, Batesville, MS 38606 662-934-6501 39 Beyond Capital Financial Management 2211 5th St., Ste 107, Meridian, MS 39301 601-693-3007 2009 beyondcapital.net 40 Logan Partners Inc. 438 Forest Lake Place, Madison, MS 39110 601-853-0393 41 Argent Family Wealth Practices 2090 Old Taylor Road, Suite 204, Oxford, MS 38655 662-550-4443 2008 familywealthpractices.com 42 Chatham Investment Counsel, LLC 6311 Ridgewood Road, Suite W 403, Jackson, MS 39211 601-899-4404 43 Legacy Financial Advisors, LLC 8 Woodstone Plaza, Hattiesburg, MS 39402 601-261-2655 legacyfin.net 44 W.A. Wimberly & Associates Inc. 1650 Lelia Drive, Ste. 105, Jackson, MS 39216 601-982-8000 2007 45 Pathway Planning Inc. 123 South Railroad Avenue, Brookhaven, MS 39601 601-833-2129 1992
TAX PLANNING
Assets under management
$1,918,569,678 $1,500,227,933 $1,077,737,502 $778,604,557 $576,239,958 $475,582,199 $453,736,895 $441,061,006 $432,146,540 $206,879,372 $198,214,552 $188,725,997 $158,998,467 $152,640,584 $132,845,000 $130,000,000 $127,473,389 $120,000,000 $119,818,979 $111,171,721 $107,513,246 $96,213,665 $86,000,000 $83,642,766 $83,088,256 $58,405,219 $52,242,724 $44,283,144 $41,500,000 $39,253,243 $38,840,107 $33,163,617 $32,400,000 $30,000,000 $29,000,000 $27,159,945 $22,567,000 $22,350,000 $22,000,000 $17,485,733 $15,700,000 $14,448,269 $10,000,000 $8,230,326 $6,563,000
Continued from Page 14
gard to health insurance. “Recently, a number of preexisting temporary tax provisions were made permanent, including the research and experimentation income tax credit, increased Section 179 expensing limits for depreciable property, and others,� Carraway said. “Taxpayers also need to be aware of recently changed tax reporting deadlines.� Tax laws and regulations are continually evolving and being affected by legislation, regulation change, and judicial decisions, and the areas in which they change, even in a short period of time, are hard to track for busy business owners. “That is why it is so important for active business owners and management to work closely with a CPA well versed in relevant tax and accounting issues who can serve as a trusted adviser,� Carraway said.
BANKING & FINANCE
October 7, 2016
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Metropolitan Bank garners high ranking on Best Banks to Work For list By NASH NUNNERY mbj@msbusiness.com
A new age is dawning in the banking world, and it doesn’t involve the last word in mobile banking apps or ATM machines. “Engagement and reward� is the latest buzz phrase. From flexible work schedules to bonuses to use of lavish ballpark suites, banking institutions are re-investing in their employees. Last month, three Mississippi-based banks garnered recognition and a Top 40 ranking for pro- Poole viding an extraordinary work experience for their associates. Industry publication American Banker ranked Ridgeland-based Metropolitan Bank No. 13 on its 2016 “Best Banks to Work For� list, with Community Bank and Stamper BankPlus coming in at 36th and 38th, respectively. Rustin, La.-based Origin Bank, with branches in Mississippi, was also on the list. American Banker collaborates with Best Companies Group to analyze bank employee surveys about workplace policies and practices. Founded amid the worst financial crisis in the U.S. in generations, Metropolitan Bank – which in March celebrated its eighth birthday – has grown its assets from $243 million in 2008 to 1.1 billion in 2016. The Metropolitan Bank culture is built upon six ‘pillars’, including growing personally and professionally, according to group administrative officer Leanne Stamper. “Not many companies can boast on such things but when your end game is to do what is right for the client, everything else falls into place,� she said. One of the more popular perks enjoyed by Metropolitan’s 159 associates is the “free breakfast Fridays� that feature doughnuts, bagels with cream cheese and homemade casseroles. The bank also holds a “March Madness� competition each spring, with teams earning points by exercising, eating fruits and vegetables, drinking lots of water, meditating, getting at least seven hours of sleep and reading a wellness book. Members of the winning team receive a $25 gift card. Metropolitan also offers a bonus/incentive program, whereby full-time employees are eligible to receive cash and stock awards
based on individual performance and the bank meeting overall goals. “I think one of the things that makes Metropolitan such a wonderful place to work is that the ideas of each associate are valued as well as encouraged,� said loan operations coordinator Jamie Johnson. Institutional courtesy and transparency are the rule rather than the exception, added managing director Josh Poole. “All banks play by the same rules, and these rules often induce a culture of hierarchy, secrecy and small thinking,� Poole said. “Metropolitan fiercely defends a culture of trust and accountability that has proven to yield high performance.� Like Metropolitan, BankPlus offers associates a plethora of employee-friendly benefits, including use of the bank’s suite at Mississippi Braves home games, a paid day off for a “Healthy You� medical checkup and full insurance benefits paid for employees that participate in the Wellness Plus program. A bank spokesman said one of the more popular perks is the Tele-Health program, a partnership with the University of Mississippi Medical Center. Eligible BankPlus associates who have become ill or suffered a non-life threatening injury may consult with a physician via video chat in real time. “BankPlus has a small town feel to it. We are not a big, corporate bank in multiple states with thousands of employees, and I like that,� said Christy Martin, who works at a Clinton BankPlus. “Anytime I have had needs or requests out of the ordinary,
they’ve been accommodating and understanding.� This marks the fourth consecutive year
that BankPlus garnered a ranking on the national “Best Banks to Work For� list.
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18 I Mississippi Business Journal I October 7, 2016 THE SPIN CYCLE
Content marketing tripled in last year, digital media Advertising Delivers 2x ROI
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arketers have dramatically increased the content churned out in the past year, but people aren’t paying any more attention to it, according to an analysis of $16 billion in client spending by marketing analytics and software firm Beckon. In a report released last week during an Advertising Week presentation, Beckon said clients tripled the pieces of marketing content they delivered in the past 12 months – encompassing video and images circulated both in paid and unpaid media. Yet aggregate consumer engagement – such things as likes, comments, and shares – with that content remained flat. Just 5 percent of content generated 90 percent of consumer interactions, according to Beckon. “In other words, 19 of 20 pieces of content get little to no engagement,” the report concludes. Beckon clients include Coca-Cola Co., Gap, Microsoft, HP, Stubhub, Reebok, Converse and NBC Universo. Beckon builds data collection and analytics systems for marketers, and the report aggregates data from across the firm’s client base. The sheer volume of content from some brands is staggering, with Beckon logging 29,000 individual pieces of content advanced by one brand, 50,000 by another. Beckon CEO Jennifer Zeszut said in an interview with Advertising Age that she’s encountered some brands whose primary key performance indicator (KPI) on content is simply to generate more of it – and the numbers indicate they’ve succeeded, at least at that. The content glut appears to be responsible for another finding in the report – spending on so-called “nonworking media,” or what it costs to create advertising and other content, has soared as well across Beckon’s client base. Beckon found nonworking spending was up 50 percent year over year across its client base. That’s a potentially huge number for the industry given a study released late last year by another marketing-analytics firm, Percolate, finding around 40 percent of marketing spending went to such, production, talent and research costs. By contrast, Beckon found only a 7 percent increase among its clients in paid or socalled “working” media. Beckon’s report also found digital media
bought programmatically by its clients delivered twice the return on investment of other digital buys, though only about half of measured digital spending was bought programmatically.
News coverage of the national political conventions skewed negative A new report from Harvard Kennedy School’s Shorenstein Center on Media, Politics and Public Policy analyzes news coverage of the 2016 Republican and Democratic national conventions, and whether this coverage, which was overwhelmingly negative, best served the needs of the public. The report is the third in a multi-part series of research analyzing news coverage of candidates and issues during the 2016 presidential election. The study examines news coverage during the four-week convention period, starting with the week prior to the Republican convention and concluding with the week following the Democratic convention. The daily news audience is larger than that of the convention viewing audience, meaning that many people learn about the conventions through the news media’s version of the events. Coverage of Donald Trump continued to outpace that of Hillary Clinton during this period, but, notably, both candidates received negative coverage. Negative news reports about policy positions, for example, outnumbered positive reports 82 percent to 18 percent. Trump experienced a reversal of the “good press” he had received earlier in the campaign, with his reaction to the Democratic convention speech of Khizr Khan generating the most negative attention. Although Clinton’s coverage was more positive than Trump’s, it was still negative on balance, with a full tenth of her coverage revolving around allegations of wrongdoing. What appeared to be missing from this negative coverage, however, was context. For example, although Clinton’s email issue was clearly deemed important by the media, relatively few stories provided background to help news consumers make sense of the issue—what harm was caused by her actions, or how common these actions are among elected officials. And in keeping with patterns noted earlier in the election cycle, coverage of policy and issues, although they were in the forefront at the conventions,
continued to take a back seat to polls, projections, and scandal. This Shorenstein Center study is based on an analysis of news reports by ABC, CBS, CNN, Fox, the Los Angeles Times, NBC, The New York Times, USA Today, The Wall Street Journal, The Washington Post, and The Washington Times. The study’s data were provided by Media Tenor, a firm that specializes in the content analysis of news coverage. The research was partially funded by the John S. and James L. Knight Foundation.
Charles Osgood passes ‘CBS Sunday Morning’ mic to Jane Pauley On his final edition of “CBS Sunday Morning,” Charles Osgood introduced his successor, former “Today” show co-host Jane Pauley. The on-air transition will likely be welcomed by fans of the beloved Sunday morning newsmagazine. Pauley has been a popular substitute host of the broadcast since 2014, and she was considered the most likely person to take over for Osgood. Osgood, 83, announced his retirement plan last month, and Sunday was his final program. He will continue to appear on the show occasionally, according to CBS News president David Rhodes. Pauley’s promotion is – in part – a signal that the show itself isn’t changing. Executive producer Rand Morrison is staying in place. And Pauley, 65, is well known to “CBS Sunday Morning” viewers. Pauley joined the program as a contributor in April 2014, a few months after the program profiled her distinguished career. “We first got to know Jane when we did a story about her,” Morrison said in a statement. “Our viewers immediately responded by suggesting she belonged on ‘Sunday Morning’ permanently. And as is so often the case, they were right. She’s a dedicated, experienced broadcast journalist. But every bit as important, she’s a delight to work with. A worthy successor—and a perfect fit.” Pauley’s first program will be this Sunday. She recently praised Osgood while speaking at the News and Documentary Emmys. “He’s going to be missed by millions,” she said. “What will ‘Sunday Morning’ be without his ‘presence?’ His calm demeanor? His civility? His curiosity? His delight?” She said “CBS Sunday Morning” is a kind
Todd Smith
of church for many Americans. (It is the most-watched Sunday morning news program, reliably out-rating all the political talk shows.) “For 22 years, the church of ‘Sunday Morning’ has had an officiant who reliably conveyed grace,” Pauley said at the Emmys. “People will miss him deeply, because even in the worst of times, it felt like Charles Osgood could see the best in us.”
Golden Mic | Austin City Limits brand shines brightly with stellar performances The Spin Cycle stopped at the first weekend of Austin City Limits while at a client conference – and the music lineup rocked the Texas capital with a stellar brand of music fusion! I was there with my children, sister, brother-in-law, niece and nephew, and we sampled the likes of Marin Morris, Radiohead, Kasey Musgraves, Mumford & Sons, and Chris Stapleton – whose bodacious country-rock licks and belted baritone echoed with a hint of Hank Williams, Jr., Willie, Waylon, a bit of Cash and a dash of Lynyrd Skynyrd! Other artists who rocked ACL were: Wild Belle, Oh Wonder and LCD Sound System. This weekend’s show culmination boasts Willie Nelson, Awolnation, LL Cool J, Kendrick Lamar, Flume, Nathaniel Rateliff and The Night Sweats, Young The Giant and more. Austin – and its soul music sister Nashville – continues to deliver the best music in the land, and belted out a blockbuster Golden Mic! Each week, The Spin Cycle will bestow a Golden Mic Award to the person, group or company in the court of public opinion that best exemplifies the tenets of solid PR, marketing and advertising – and those who don’t. Stay tuned – and step-up to the mic! And remember … Amplify Your Brand! Todd Smith is president and chief communications officer of Deane, Smith & Partners, a 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.
October 7, 2016
Umami in your messaging
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f you’re anything like me, you take a lot of pleasure from a good meal. Eating is the number one thing I want to do when I visit a new city. I want to sit down to a delicious meal with good friends and taste as many different things as I can. Some people may call themselves foodies. Others might call themselves gluttons. I recently heard someone call it privilege, saying, “The definition of privilege is thinking about your next meal while you’re eating.” Call me whatever you want, just don’t call me late to dinner. There is a word that’s been floating around this new foodie culture for about a decade but has only made its way into more popular culture recently: “umami.” It’s fun to say out loud. Try it. ooh mah mee The word literally translates to “delicious taste,” or “pleasant savory taste,” in Japanese, but it’s used to describe that yummy savory flavor you get from soy sauce or veal. Originally, the human tongue was thought to have taste receptors for four flavors: sweet, salty, sour and bitter. French chef Auguste Escoffier is credited with being the first to knowingly pair this flavor with other taste profiles in the late 1800s using veal stock. The combinations were said to be like tasting an epiphany. Around the same time, Japanese chemist Kikunae Ikeda published an article about this possible fifth flavor profile. It wasn’t until 2002 that scientists widely accepted humanity’s fifth “umami” flavor receptor. Even though we didn’t recognize it, chefs still inherently understood the need to play toward this part of the palate. The flavor comes from glutamate, which can be found anywhere organic matter is breaking down—whether during the cooking of meat, aging of cheese, ripening of a vegetable or fermentation of soy sauce. Umami is great because you get to mix it with other flavors to achieve greatness —think about a fully ripe red tomato sliced perfectly with salt on top. The same goes for your messaging. Did you forget we were talking about marketing for a minute? Me, too. Think about where you’re telling your business’ story? Is
it online? In print? Word of mouth? You must mix up your messaging to reach the best audience and achieve the perfect flavor profiles—like sweet caramel and sea salt. Think about a bag of nacho-cheese Doritos for a second. Imagine eating one. Tasty right—lots of flavor? Go Josh Mabus ahead and eat a few more. Still pretty good? Now finish the bag and tell me how you feel. Depressed. You’ve got palate fatigue (and probably an upset stomach). If you only advertise in your local newspaper, you’re going to reach one very specific audience and it’s not going to be very diverse. At the same time, the singular audience is going to grow tired of that ad. It’s not going to have the same effect when they begin to tune it out. But don’t begin your attempts to diversify marketing platforms by pairing your local newspaper ads with a Snapchat campaign. Now you’re reaching mostly young millennials and older retirees—steak and Twizzlers. Marketing is about finding the correct message and then choosing the messaging platforms that pair best with both the message and each other. The key is making sure your message fits each medium and is applied consistently. When a customer follows a link from your weekly email newsletter to your website, will she find something totally different or will the experience be a guided series of messages taking her from one platform to the next? When a customer sees your billboard, is it consistent in messaging with your television ad? If not, the two experiences won’t be connected in the consumer’s mind. I have clients who regularly ask for one-off ads to place in school programs or to advertise a short-run deal. I try to advise them away from the one-off ad because their desired message is almost always not consistent with the rest of their marketing efforts. And, when they don’t listen, they will eventually complain that their potential customers aren’t clearly getting their message. A consumer also won’t hear your message if you don’t
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communicate it well, so stick to what you know. If you’re not tech-savvy, you may not need to get into automated and triggered email responses. Just because some marketing service is telling you your company needs to use its messaging platform doesn’t mean it’s the best for you. Along the same lines, when you find a messaging mix your consumers respond well to, embrace it—even if it’s not the hip new platform. After all, scientists were convinced umami didn’t exist until it did; that doesn’t mean we weren’t enjoying it the whole time. We can’t think about our marketing efforts like a casino buffet. If we do, our customers will treat us that way. They’ll fill up a taco shell with ham squares and plate it next to crab legs and andouille sausage. Your marketing efforts should be a chef’s choice tasting menu. Serve up the best message on the platforms you can most comfortably communicate through. Mix a little salt and umami. Mix a little sweet with sour. Make it yummy. » Josh Mabus is president and CEO of The Mabus Agency