MBJ_Oct13_2017

INSIDE — Mississippi economic growth looks to be less than 1 percent — Page 2 FORREST CO.

www.msbusiness.com

Hattiesburg Country Club making turn with new ownership — Page 6

MBJ FOCUS

October 13, 2017 • Vo. 39. No. 41 • 16 pages

Lumumba undaunted on Jackson convention hotel after latest deal unravels

BANKING & FINANCE {Section begins P8}

» Stocks continue to break records despite volatile political environment » CDFI funds help underserved areas thrive

{The List P10}

» Largest Registered Investment Advisers

» JRA dropped developer EDT after it insisted on $60 million public contribution

Page 2

» Airbnb starts collecting 7 percent hotel tax in Mississippi

{P3}

http://msbusiness.com/ceo-awards-of-mississippi/

2 Q Mississippi Business Journal Q October 13, 2017 TOURISM

MONEY

Lumumba undaunted on Jackson convention hotel after latest deal unravels

As 2017 winds down, Mississippi economic growth looks to be less than 1 percent

» JRA dropped developer EDT after it insisted on $60 million public contribution

By TED CARTER mbj@msbusiness.com

Mayor Chokwe Antar Lumumba is not ready to call it quits on a convention center hotel after the demise of the Jackson Redevelopment Authority’s two-year effort to complete a deal for one.

A Sept. 27 Redevelopment Authority decision to drop Washington, D.C.based Engineering Design Technologies as the preferred developer continued nearly a decade of frustrations for proponents of adding a 300-plus-room hotel to a convention complex that has under-performed without one since opening in 2008.

This marked the third time proposals brought forth by developers have hit a dead-end, going back to 2010, when the city and redevelopment agency negotiated a deal to co-sign up to $50 million in loans for a $90 million hotel proposed by Transcontinental Realty International of Dallas.

The latest collapse came after Engineering Design Technologies, or EDT, recently surprised Redevelopment Authority commissioners with a demand for $60 million in public money to do the project. The developer won the request-for-proposals competition partly through a pledge to build a hotel without city funding.

In the past, the JRA has sought developers through a request-for-proposal process starting with ones authorized by Harvey Johnson and later Tony Yarber.

Lumumba, who took office July 3, said he has not decided on an avenue for moving ahead on the hotel.

“We are going to explore the best alternatives to move this project forward,” he said in an email Friday night.

Lumumba said it’s hardly a sure thing that the city would put money into a convention hotel project. “To date, we do not know if public funding is in fact, the best

alternative.”

Like his predecessors, Lumumba thinks the nearly 10-year-old convention complex will never make sustained use of its 330,000 square feet without a convention headquarters hotel. “In order to be competitive in terms of soliciting conventions to our city and other events, it is an important component to what we offer,” said Lumumba, whose late father championed an unsuccessful hotel deal with Tampa hotel developer Callen Robinson put together in the final days of Harvey Johnson’s mayoral administration.

However, Johnson had negotiated the Callen Robinson deal outside of the RFP process. The senior Lumumba insisted on an RFP that brought responses from Callen Robinson and Texas hotel developer Journeyman-Austin.

When that process unraveled, Lumumba successor Tony Yarber authorized the most recent RFP that brought responses from EDT and Herndon, Va.-based Red Leaf Development.

Now Red Leaf and local partner Advanced Technology Building Solutions want an opportunity to make a hotel development deal.

“It’s their turn to take a bite out of the apple,” said Don Hewitt, managing member of Advanced Technology Solutions.

Hewitt said the JRA should give his team 120 days to deliver an acceptable development agreement. If it doesn’t deliver, “reset the play to zero,” Hewitt said.

He said the only public money Red Leaf’s proposal sought was from a tax increment financing district.

Red Leaf proposed building an $83.6 million, 302-room hotel with a 1,000-space garage. The proposal included a covered cross walk from the hotel’s Pascagoula Street location to the convention complex.

Engineering Design Technologies did not make a cross walk part of its proposal; further, it gave the option of either covered or surface parking for the 300 spaces it would provide.

The JRA parted ways with EDT on Sept. 27 with commissioners voting

unanimously to stop further negotiations on a development agreement. EDT insisted the JRA would have to devote $60 million in public money to a project the developer had pledged to do without City funding, the JRA says.

EDT said it could do a smaller version of the hotel with fewer rooms for a $40 million public contribution, the JRA said.

In asking for the money, EDT blamed increases in construction costs since beginning negotiations with the JRA in February 2016. The 2015 proposal specified an eight-floor, $75.5 million convention hotel of slightly more than 300 rooms on land the City owns next to the convention center on Pascagoula Street.

On the costs side, EDT was to have put up $41.3 million and obtain a City/ JRA-backed loan of $11.3 million. The project would also require $11.3 million in tax increment financing (TIF). This money would be rebated from a portion of sales taxes collected in a tax increment district that would be created for the hotel property and properties close to it.

EDT also planned to use $3.7 million in New Market Tax Credits and to invest $7.5 million of its own money, or about 10 percent of the project’s cost.

JRA Commissioner Jennifer Johnson had cited a $13 million funding gap from the start of negotiations and says EDT never explained how it would close the gap. When the gap grew to $60 million, she and her fellow commissioners no longer wanted to deal with EDT, she says.

“We could not even issue a note for that kind of money, and the City is not ready to back that,” said Johnson, an attorney appointed to the JRA by the senior Lumumba.

JRA Commissioner Kemba Ware Taylor said EDT’s insistence on changing terms to include massive amounts of public money made further talks on doing a deal useless. “They changed some items in their proposal that were fundamental to their response to the RFP being acceptable to the board,” Taylor said in an email.

“I would like for us to start the process again with Mayor Lumumba’s approval.”

By TED CARTER mbj@msbusiness.com The indicators state economists use to assess the health of Mississippi’s economy showed the same lethargy in August as they did at the start of the year.

“August represented another example of the relative sluggishness that has characterized the Mississippi economy in 2017,” said the October edition of Mississippi’s Business prepared by the University Research Center of the Institutes of Higher Learning in Jackson.

The Research Center will soon release a wider economic examination in its third quarter Mississippi Outlook, but the Outlook’s author has not encountered any data indicating a change in a second quarter forecast of a full percentage point drop in the state’s Gross Domestic Product, or GDP. “I don’t think we’ve seen too much change for Mississippi,” said Corey Miller, an economic analyst for the Research Center, in an interview.

“Growth of less than 1 percent is what we’re still expecting for 2017,” said Miller, whose second quarter Outlook projected Mississippi’s economy will grow 0.9 percent in 2017.

Miller cited essentially unchanged employment this year as well as the disappearance of the relatively strong income growth that began in early 2016.

The second quarter Outlook forecast payroll employment in Mississippi to grow only 0.2 percent in 2017, a decrease of 0.3 percentage points from the forecast of the previous quarter. “Moreover, if realized this rate of job growth would be the smallest change in payroll employment in the state since 2011,” the report noted.

The Outlook, however, forecast stronger growth for 2018 and 2019. “The Mississippi economy will expand 1.8 percent in 2018 and 1.7 percent in 2019,” the second quarter Outlook predicted.

The October edition of Mississippi’s Business noted that only three of the seven components of the Mississippi Leading Index (MLI) decreased in value in August. The index is made up of the Mississippi Manufacturing Employment Intensity Index, U.S. retail sales, consumer expectations, Mississippi residential building permits, state income tax withholdings and the Index of U.S. Manufacturing.

Though the Mississippi Leading Index declined by 0.2 percent in August, the value of the index was 4.4 percent higher compared with the same month a year ago, the report said.

The report said the Mississippi Manufacturing Employment Intensity Index gave back most of its increase from the previous month and employment remained unchanged after gains the

See ECONOMIC GROWTH, Page 3

ECONOMIC GROWTH 115.0

5.0%

114.0 113.0

4.0%

112.0 3.0%

111.0 110.0

2.0%

109.0 108.0

1.0%

107.0 106.0

8/16 9/16 10/16 11/16 12/16 1/17 2/17 3/17 4/17 5/17 6/17 7/17 8/17

0.0%

Source: University Research Center

to Miller.

“These have specific numbers that give us some kind of a forward look,” he said.

August brought the first increase since February in the value of Mississippi residential building permits, with a value 10 percent higher than a year ago. Permits issued increased by 2.2 percent.

Another increase came in the value of Mississippi income tax withholdings. They increased in August for the first time since March. The 0.9 percent increase was 1.2 percent higher than in August 2016.

The income tax withholding numbers are an important indicator, said Miller.

Withholding growth has been slight, “but it is growing,” he said.

On the jobs front, Mississippi employment rose slightly more than a half percentage point by adding 6,900 jobs. Health care accounted for 1,400 of the new jobs.

While Miller expects Mississippi’s economy to remain sluggish for the rest of the year, he says congressional action on taxes could spur at least some upward momentum. “If we got some kind of tax reform at the federal level,” he said, “it should bring some movement psychologically, if nothing else.”

Proud to be

Partners for the

Line graph: percent change over year ago

6.0%

116.0 Bar Graph: Index; 2004 = 100

previous two months. The give-back came via a 2.6 percent decline in the Intensity Index. The report blamed a decline in average weekly hours of production.

However, the report noted a couple of positives: The values of both withholdings and building permits increased in August for the first time in months.

Far fewer Mississippians applied for unemployment insurance benefits in August, with claims dropping 19.6 percent from a year ago. The October report put the seasonally-adjusted unemployment rate in Mississippi at 5.3 percent.

On the retail sales front, the economists cited a 0.2 decline nationally and attributed the drop to slowdowns in sales of autos, clothing and accessories.

The University Research Center uses the University of Michigan Index of Consumer Expectations (three -month moving average) to assess retail values in its reporting. In the October report, the value of the index increased in by 0.2 percent for August.

But the index was 5.6 percent higher compared with one year ago.

The Research Center uses the national retail numbers on consumer thinking and sentiment because it lacks a state-focused index, according

Healthof

Mississippians

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Mississippi Business Journal

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Figure 3. Mississippi Leading Index

Continued from, Page 2

October 13, 2017

AIRBNB STARTS COLLECTING 7 PERCENT HOTEL TAX IN MISSISSIPPI

By JACK WEATHERLY jack.weatherly@msbusiness.com Airbnb announced on last week that effective Oct. 1 it began collecting from its member hosts a 7 percent hotel tax and will remit it the state of Mississippi.

The announcement came two days after the state Department of Revenue revised its regulation on such accommodations to clarify with language from state law 41-49-3 in which “hotel” is defined as anyone offering one or more rooms . . . “to transient guests and [whose property is] known to the trade as such.”

Mississippi joins more than 300 municipalities globally in neighboring Southern states where Airbnb is voluntarily collecting and remitting occupancy taxes, the company said in the release.

State Tax Collector Herb Frierson last spring pushed to mandate that San Francisco-basd Airbnb and similar operators such as VRBO, or Vacation Rentals by Owner, collect and remit the tax.

He drew opposition from those who saw the effort as being unfair to small “mom-and-pop” competitors to hotels and questioned whether the agency had the authority to do so.

Crystal Davis, spokeswoman for Airbnb, said in an interview that the company is simply sending a public notice as it does whenever it reaches See AIRBNB, Page 6

Blue Cross & Blue Shield of Mississippi and its Outpatient Orthopaedic Centers of Excellence have partnered to be leaders in outpatient total joint surgery.

Helping to provide Mississippians with cost-efficient and quality care is one of the many reasons why it’s good to be Blue.

Now available to State of Mississippi Health Plan Participants.

www.bcbsms.com/centersofexcellence 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.

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

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MBJPERSPECTIVE October 13, 2017 • www.msbusiness.com • Page 4

OTHER VIEWS

#THE OUTSIDE WORLD

Addressing opioid crisis critical to state’s future

Website: www.msbusiness.com October 13, 2017 Volume 39, Number 41

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FRANK BROWN Staff Writer/Special Projects frank.brown@msbusiness.com • 364-1022 JACK WEATHERLY Staff Writer jack.weatherly@msbusiness.com • 364-1016 TED CARTER Contributing Writer mbj@msbusiness.com • 364-1018 BECKY GILLETTE Contributing Writer mbj@msbusiness.com • 364-1018 NASH NUNNERY Contributing Writer mbj@msbusiness.com • 364-1018 LISA MONTI Contributing Writer mbj@msbusiness.com • 364-1018 VIRGINIA HODGES Account Executive virginia.hodges@msbusiness.com • 364-1012 TACY RAYBURN Production Manager tacy.rayburn@msbusiness.com • 364-1019 CHARINA RHODES Circulation Manager charina.rhodes@msbusiness.com • 364-1045 MARCIA THOMPSON-KELLY Business Assistant marcia.kelly@msbusiness.com • 364-1044 SUBSCRIPTION SERVICES (601) 364-1000 subscriptions@msbusiness.com Mississippi Business Journal (USPS 000-222) is published weekly with one annual issue by MSBJ 200 N. Congress St., Suite 400, Jackson, MS 39201. Periodicals postage paid at Jackson, MS. Subscription rates: 1 year $109; 2 years $168; and 3 years $214.

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Entire contents copyrighted © 2017 by Journal Inc. All rights reserved.

» INSIDE MISSISSIPPI

State contract review process still floundering

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ust when you thought it might finally be safe to swim in Mississippi’s contractual storm waters, the State Department of Education and Mississippi True contracts erupted.

As reported by The ClarionLedger, “both State Auditor Stacey Pickering and the state’s legislative watchdog ‘PEER’ committee blasted the Mississippi Department of Education (MDE) and vowed further investigation into its contracting and purchasing.”

PEER questioned MDE practices that seemed to intentionally evade state contract review oversight. As reported by Mississippi Today, PEER pointed to contracts issued to the same company from 2014 to 2016 “having apparent similarities in scope of work and for amounts that collectively exceeded bid thresholds, rather than competitively bidding contracts for such services.”

Pickering said the avoidance was intentional, “They have blatant disregard at the Department of Education for procurement regulations.”

C-L columnist Geoff Pender was especially skeptical of MDE behavior.

“So far, the explanations from MDE have been of the ‘nuh-uh, ‘taint so, nothing to see here’ variety and, ‘whoever did that is no longer here and a

Bill Crawford

dog ate the paperwork.’ Explanations from the board have been nonexistent — odd, given serious issues have been raised over spending of millions of taxpayers’ dollars under its watch.”

This comes virtually on the heels of the contract scandals at the Mississippi Department of Corrections that led to criminal charges and convictions.

Rep. Jerry Turner and Governor Phil Bryant tightened up the contract review process, but not soon enough to prevent the Division of Medicaid from slipping a $2 billion contract through via a loophole.

Mississippi True is the legislatively authorized Provider Sponsored Health Plan created by Mississippi hospitals to compete with out-of-state companies for the state Medicaid managed care contract.

Medicaid leaders decided this $2 billion contract did not need to go before the contract review board. When Medicaid’s internal process gave the managed care contract to three out-ofstate companies, Mississippi True protested. Gov. Phil Bryant directed Medicaid to submit the contract and its review process to the review board.

Last month the review board finally considered the contract but took no action. Staff said Medicaid’s contractSee CRAWFORD, Page 5

uring a presentation before state legislative leaders, the executive director of Mississippi’s Department of Child Protection Services said the growing problem has increased the caseload for that department.

Jess Dickinson told lawmakers the agency currently has a caseload of more than 6,000 abused and neglected children. That number was about 2,900 just four years ago.

“Most of the increase is due to drugs,” Dickinson said.

Indeed, the entire country is fighting to combat a spike in opioid-related addictions and deaths, and the consequences are far reaching.

Opioid addiction from pain pills, including fentanyl, and from heroin is estimated to have caused more than 33,000 deaths nationwide from overdoes in 2015, according to the American Society of Addictive Medicine. Gov. Phil Bryant said there were at least 211 deaths in Mississippi in 2016 attributed to opioid overdoses. And the actual number could be much higher.

The epidemic certainly Finding these has its claws in northeast Mississippi, too. The areas funds will not be identified as having the easy at a time the biggest problems with opistate has had to oids include the counties along the Tennessee state significantly cut line, including Tishomingo, its budget in reAlcorn, Tippah, Benton and sponse to declinMarshall counties. ing revenue.

We’ve written much about the impact of the rise of opioid addictions.

Dickinson’s comments, however, help sharpen the focus of how profound those consequences are.

Hearing of the number of children who have been severely harmed by the addictions of the adults in their lives is truly heartbreaking.

It’s a reminder that the sting of addictions goes well beyond the addicted individuals themselves.

In December, Bryant created an Opioid and Heroin Study Task Force dedicated to proposing solutions. In August, the group released a wide-range of recommendations. Those included enhanced penalties for people transporting or selling opioids, limiting the number of prescriptions of opioid pain killers and increasing access to treatment.

But many of the group’s 41 recommendations will require additional state funding. So too, will appropriately addressing the growing caseload at Child Protection Services.

In fact, Dickinson is requesting an increase of $15 million in state funding. That would allow the agency to hire 108 new staff members, including 60 new positions to staff a hotline for reporting child abuse, neglect and exploitation.

Finding these funds will not be easy at a time the state has had to significantly cut its budget in response to declining revenue.

But a tight budget also can not be used as an excuse to kick this issue down the road. Tackling this crisis is of utmost importance to our state’s future. It’s critical to the hundreds of Mississippians dying every year, it’s critical to our economy and our quality of life, and it’s critical to our children.

— Northeast Mississippi Daily Journal

PERSPECTIVE » RICKY NOBILE

October 13, 2017 I Mississippi Business Journal

CRAWFORD

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ing process did not fully comply with guidelines, but recommended the board waive that noncompliance and approve the contract. The board was unable to get a seconded motion to either approve or disapprove the contract.

Changes intended to strengthen the review process, however, provided a loophole Medicaid will jump through. While the law says the review board is to “approve all personal and professional services contracts” in excess of $75,000, a new section was slipped in that says a contract “shall be presumed to be approved if the Personal Service Contract Review Board does not object to the contract within thirty (30) days.”

Since the review board took no action, Medicaid says this new provision lets it move ahead. Mississippi True is seeking court intervention..

This spring, Turner passed additional legislation to strengthen the review process. It repeals the 30-day loophole. But, unusally, the Legislature delayed implementation of Turner’s changes until next January.

So, despite the prison contract scandal, we still have two government agencies dodging contract review, an indecisive contract review board, an ill-timed change to the law, and ongoing contract eruptions.

With apologies to Tammy Bullock-Rutherford, that’s so Mississippi.

»FROM THE GROUND UP

What’s the social responsibility role of business in America?

L

ast week I was in a restaurant in Fayetteville, Arkansas and noticed something. It was the third restaurant in three different cities in three days that made a contribution to some type of charity.

I’m seeing this more and more, not only in restaurants, but other businesses as well. What do they know that Milton Friedman did not know?

You remember Milton Friedman, the author of the classic book, “Free to Choose” (with Rose Freidman). He was also the American economist who received the 1976 Nobel Memorial Prize in Economic Sciences for his work on consumption analysis, monetary history and theory and the complexity of stabilization policy. Here’s what he said about the role of business and social responsibility: “There is one and only one social responsibility of business–to use it resources and engage in activities designed to increase its profits so long as it stays within the rules of the game, which is to say, engages in open and free competition without deception or fraud.”

Contrast that idea with what is known as “conscious capitalism”, which Whole Foods’ John Mackey and his research partner Raj Sisodia, refer to as businesses serving the interests of all major stakeholders—customers, employees, investors, communities, suppliers, and the environment. They came out with a book, “Conscious Capitalism - Liberating The Heroic Spirit of Business,” that still remains on the business bestseller list. Many businesses have taken that idea to heart. They support causes and contribute to organizations that do social good. These include everything from arts organizations to feeding hungry children.

Speaking of hungry children, the restaurant referred to above is Tacos 4 Life. It is based in Conway, Arkansas, and

has five locations in Arkansas with more on the way. It donates 22 cents for each taco, quesadilla, salad or rice bowl sold to Feed My Starving Children, an organization that feeds hungry children. Tacos 4 Life goes beyond financial contributions. It has sessions for volunteers to handpack meals specifically formulated for malnourished children, which are then shipped to distribution partners around the world. According to its website, https://tacos4life.com, “Tacos 4 Life exists to help end childhood starvation around the world through our Meal 4 Meal program.” I wonder what Milton Friedman would think of that.

Could it be that companies that engage in social responsibility activities are actually using their resources to increase profits? Perhaps customers choose to do business with such companies over companies that do not do so.

The research on this subject is mixed. A 2004 study of 52 other studies, "Corporate Social and Financial Performance: A Meta-Analysis," compiled by researchers Marc Orlitzky, Frank L. Schmidt and Sara L. Rynes, concluded corporate social responsibility does benefit businesses. More recent studies tend to support this idea.

So what should your company do? As usual, the answer is that it depends. For some businesses it makes a lot of sense.

Not so for others. Companies that promote ethical behaviors need to understand the needs and wants of their customers,

Phil Hardwick

their employees and their owners. They also need to consider how to make contributions. Should they be only financial or should they involve employees? More and more businesses are involving their employees in social responsi-

If your business is not involved in supporting a community activity or sponsoring an ethical social cause now may be the time to consider doing so. bility activities. Examples are constructing a Habitat house, putting together teams to run in charity marathons, volunteering in local schools, etc. The list goes on and on.

There are caveats. In today’s politically and socially divided world it can be a mistake to support causes that are controversial. It also does not make much sense to support causes that aren’t related to your line of business. For example, it might make a lot of sense for a gun manufacturer to support youth hunter safety education programs or a beer distributor to endorse safe drinking and driving initiatives. On the other hand, it might not be so beneficial for a plumbing supply company to support disease research.

In summary, corporate social responsibility appears to be on the upswing. If your business is not involved in supporting a community activity or sponsoring an ethical social cause now may be the time to consider doing so. » Phil Hardwick is a regular Mississippi Business Journal columnist. His email is phil@philhardwick. com.

6 Q Mississippi Business Journal Q October 13, 2017 FORREST COUNTY

Hattiesburg Country Club making turn with new ownership

By BECKY GILLETTE mbj@msbusiness.com

For 98 years, the Hattiesburg Country Club has been owned by member stockholders. Those stockholders recently voted for a new lease on life for the club by selling it to Carter Callaway, a former professional golfer who has been building homes in Hattiesburg since after Katrina, and Paul Maholm, a retired professional baseball player originally from Holly Springs.

Like many golf clubs across the country, the HCC has faced challenging times in recent years.

“The club is down 300 to 400 members from what it used to be,” said Callaway, who grew up in Jackson as the son of professional golfer Charlie Calloway, who later opened the Calloway Golf Center driving range in Jackson. “As a member for 12 years, I saw the course take a slow downtick. Every year we were losing about 10 percent of the membership. I love the Hattiesburg Country Club. I love the golf course. We have three small children and that it where we like to spend our time playing golf, tennis and swimming. I was concerned about the future of the club.”

Callaway said when he and Maholm went to the board of directors a few months ago, the board members were ready to listen to any and all options.

“Golf clubs all over country have seen a downtick starting with the 2008 market crash,” Callaway said. “The first thing someone is going to do when the economy is bad is stop spending money on luxury times like country club memberships.”

But he also read about golf courses making comebacks. A common theme was diversifying to provide more family-based activities instead of just focusing on golf.

“I saw examples of that strategy being used to turn around a failing club and be successful,” Callaway said. Hattiesburg Country Club, in my opinion, is one of best courses in Mississippi even with having gone through some tough times. It is a beautiful place with a great design and great tradition. There is opportunity here for somebody with the right vision.”

Callaway, who is the new general man-

Courtesy of Hattiesburg Country Club/For the MBJ

The new owners say that greenskeeper Frank Ogletree has kept the course one of the best in the state, even with a tight budget.

ager of the HCC, said he realized he couldn’t do the project alone and so approached Maholm as a potential partner. Callaway had coached Maholm’s son in Little League baseball. Maholm was also keen on the challenge of Callaway revitalizing the HCC. “We’re hoping, obviously, to turn it around and make it what it was 20 years ago when it was at its peak,” Maholm said. “We want to grow the membership, add more families, and grow the junior tennis and golf programs.

During the summer, we Maholm will have cool activities for the families so they want to be out there.

We want to create an atmosphere where people enjoy bringing the family out for dinner. And now it is football season, we want people to think of us first as a place to watch the game.”

Maholm said the golf course is in good shape and sells itself. But he said the clubhouse needs updating. By engendering

AIRBNB Continued from, Page 3

an agreement with any governmental entity, whether state or city.

Frierson said in an email that “DOR is actively engaged in securing as many voluntary collection agreements as possible,” and we have many taxpayers who voluntarily agree to collect and remit sales taxes for this State.

In this case, Airbnb has stepped forward and agreed to collect and remit sales taxes on behalf of its member hosts in Mississippi. If they did not, then each Mississippi host would be required to individually collect and report sales tax.

Airbnb agreements with some governmental entities have loopholes, as evidenced by news reports.

more of a family atmosphere, they hope to attract younger members.

“Hattiesburg is growing and we’re a hometown full-service country club having tennis, golf, pool and a restaurant to make it where you want to be,” said Maholm, a graduate of Mississippi State University.

“I’ve always had a passion for golf. I grew playing a small nine-hole golf course at Holly Springs Country Club. I have experienced the smallest golf courses and played some of the three or four top courses in the country. I have experienced all you can experience in a golf course. Hopefully, that experience will help us.”

Maholm said one of their biggest efforts will be focusing on the “comfort factor.”

When people get out of the car, they want them to feel welcomed and get everything they need to have a great experience.

“It’s Southern thing making sure people feel welcome,” said Maholm, who said he had always dreamed of owning a golf course.

Callaway, like his father, played professional golf for several years. After a torn rotator cuff ended his professional golf career, he ran a real estate investment company in Jackson before moving to Hattiesburg two weeks after Hurricane Katrina planning to

The Louisville Courier-Journal reported on Sept. 20 that homeowners in the city who are in the Airbnb network took in $6.2 million in 2016. But because “few homeowners have registered their short-term rental units since new rules took effect in 2016” the city is receiving only “a fraction” of what it should be getting, the paper reported.

The company entered an agreement with the state of Kentucky that effective Oct. 1 a 6 percent sales tax and a 1 percent “transient room tax” will be added to the stays, the Courier-Journal reported.

Texas Public Radio reported on Sept. 29 that San Antonio may be undercollecting its hotel tax owed by short-term renters by $100,000 a month.

The Airbnb release issued Wednesday with a Jackson dateline said that in 2016 there were “1,200 active hosts” in Mississippi, who took in $3,5 million.

buy and sell homes. But with the housing shortage, he instead decided to build new homes. After finishing several homes he is working on at present, he plans to put all his effort into running the HCC. “The way I look at it, this is a once-ina-lifetime opportunity,” Callaway said.

“This is the kind of job that doesn’t feel like working. It is just a passion for me.

I’m finally doing something I have always dreamed of doing. I’m going to give it all I have. I’ve probably worked 16 hours per day since we closed on the property. It is hard work. We have a lot to do. But it is something I’m real excited about.”

Callaway said they started renovating the clubhouse as soon as the purchase contract was signed Sept. 29. The project is getting expert help from his wife, Kathrine Kuykendall Callaway, who works for her parent’s business, Commercial Business Interiors.

“We are doing some major remodels to make it look like 2017 instead of being stuck back in the 1980s,” Callaway said.

“The structure is solid, just dated. With my experience and my wife’s company, we are going to be able to get in here and make some major improvements.”

The sale offer had the support of 99 percent of the stockholders.

“We have had overwhelming support,” Callaway said. “The members who are left love the Hattiesburg Country Club. They are pure gold. They just want to make sure they can keep their country club and saw us as the best opportunity for that to happen.”

Callaway said their greenskeeper, Frank Ogletree, has managed to keep the course one of the nicest in the state even while not having the budget needed.

“It can get better and Frank is excited about us coming on to give him better equipment and materials to spend money wisely on the right places on the course to improve it more,” Callaway said. “ The buyers were represented by the law firm of Watkins & Eager PLLC, with offices in Jackson, Hattiesburg and Birmingham.

At that level, the state should get $245,000 in its coffers with 100 percent collection.

Also the 25,000 Airbnb guests in Mississippi last year was a 132 percent increase over 2015, the release said.

And “the typical host in Mississippi earns $3,200 annually from sharing their home 13 nights per year,” the release states.

“Being able to collect and remit taxes on behalf of our hosts and guests will help Airbnb’s community pay their fair share . . . and will create an additional stream of revenue from the state’s tourism industry,” Will Burns, public policy director for Airbnb in Mississippi, said in the release.

AN MBJ FOCUS: BANKING & FINANCE

Wall Street: Distractions be damned » Stocks continue to break records despite volatile political environment

By BECKY GILLETTE mbj@msbusiness.com

T

he old saying is, “Wall Street doesn’t like surprises.” But it seems to be holding up during this time of divisiveness, political discord, devastating hurricanes and twitter rants. How do financial advisers suggest you invest during these times where surprises are waiting around every corner?

Dave J. Lundgren, Jr., executive vice president and chief investment officer, Hancock and Whitney Bank, said while there is some truth to Wall Street not liking surprises, you have to think what is really a surprise that can truly negatively impact the economy and in turn corporate earnings.

“That is really what is important in terms of surprises,” Lundgren said. “What can truly be disruptive to the economy? There have been a lot of headlines made about President Trump tweets, and the ugly incident in Charlottesville. Those are major headline items that some people might think are market moving. But a lot of those headline items don’t really move the needle economically. The normal reaction from whatever the event might be might be some shock. But what does it do to the economy? It has to be at a larger level than a specific area of the country to have some kind of meaningful impact on the economy.”

Another factor is that there is, as Lundgren puts it, “a lot of money seeking investment,” whether it is baby boomers or even corporations who have a tremendous amount of cash on their balance sheets.

“When you look at the options available to you, we have been in a low interest rate world for a very long time,” Lundgren said. “In earlier life stages, baby boomers were able to purchase CDs and make 7 percent interest. But we have been in this lowrate environment since 2008 and today people get excited if they are able to make one percent on some type of safe, fixed investment. The bottom line is when you look to see where to place your money, what produces the most attractive return, that leads a lot of people to stocks.”

Another factor is the market has been remarkably stable. For example, the S&P has produced a positive return for the first nine months of 2017.

“That is not your normal market experience,” Lundgren said. “That has happened only one other time going back nearly 100 years of market history.

Volatility is what scares people out of stocks, and we have had little to none of it. Even going back to 2009, at the end of the financial crisis, we have had only two small 10 percent corrections over the past eight years. The average is one every year and a half and now we have had one in four years since the financial crisis.”

Lundgren said one thing they remind customers is that the risk is still there.

“These periods that we have gone through shouldn’t lead people to complacency to where they are thinking there is not risk in stocks,” Lundgren said. “Diversification is important. Hopefully you are working with a good financial adviser who might See MARKET, Page 12

October 13, 2017 • MISSISSIPPI BUSINESS JOURNAL • www.msbusiness.com

CDFI funds help underserved areas thrive

By JULIA MILLER mbj@msbusiness.com

S

Pixabay.com

ome might say money makes the world go round, but access to money is linked to something more important — creditworthiness.

When access to traditional bank loans is limited, those in economically distressed areas turn to the unsavory side of predatory loans. By taking advantage of federal funding, Community Development Financial Institutions are working to make sure underserved communities have access to fair loans.

Last month $6.8 million was awarded to seven Mississippi banks through the CDFI Program Awards. These awards come at a crucial time when more communities are falling further behind economically. With a poverty rate of 20.8 percent, Mississippi received the highest proportion of these funds.

Hayley Roth, spokesperson for the Community Development Bankers Association, said the funding affects areas of high poverty and high unemployment. To be a CDFI bank, at least 60 percent of its lending activity must be in low to moderate income areas. For every $1 of CDFI funding, $12 have been contributed by external investors.

“There’s a potential for bad press because banks are getting money for these awards,” she said. The public doesn’t “see the money as going to the community.”

Roth said these public perceptions are absolutely not true. One bank was able to use these funds to provide a loan for a hotel. Not only did the hotel provide employment for those in the community, but it also prompted a new tourism industry. Now that community has seen a burst of new restaurants and retail stores.

Jerome Brown, senior vice president of The First — A National Banking Association, explained the funds provide a way for banks to improve their community.

“The awards provide banks with funding to create a program or product that would benefit the underserved,” he said.

The First has created ways for everyone from small businesses to low-income families to benefit from the federal funding. The bank has established a technical assistance program for small-business owners, which in essence holds the owner’s hand through the financial aspects of owning a business and applying for business loans.

Brown explained this helps by allowing businesses to grow. With growth, comes additional employment which creates a positive cycle in the local economy.

The First also works with individuals by helping them become bankable. Consumer loans allow individuals to consolidate “payday loans” and to pay the loans off at a lower interest rate.

See BANKS, Page 12

10 Q Mississippi Business Journal Q October 13, 2017

Banking & Finance

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Only 21 days until the MBJ Mississippi 100 It makes people 0;Ń´b;Â&#x2C6;; 7b@;u;m|Ń´Â&#x2039;Äş

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Where will you rank?

The Mississippi Business Journal is collecting data for its annual Mississippi 100 list, which ranks private, Mississippi-based businesses according to annual revenue.

The list publishes in the MBJ on Nov. 3.

If you havenâ&#x20AC;&#x2122;t yet received an email Mississippi 100 survey from us, contact Frank Brown at frank.brown@msbusiness.com or 601-364-1022, or you can ďŹ ll out a blank online database survey at https://secure. datajoe.com/url/?D5H6lqwA.

Proud of our leaders who make life better.

Congratulations, Candie L. Simmons, on being named Outstanding Young Alumni for the University of Mississippi.

Regions is proud to congratulate Candie L. Simmons on being named as the 2017 Outstanding Young Alumni of the Year for The University of Mississippi. Candie is a senior vice president and regional marketing director for Regions Financial Corporation in Jackson, Mississippi. She volunteers with the Diabetes Foundation of Mississippi and serves as a board member for the Cure Sickle Cell Foundation and Make-A-Wish Mississippi. She is the immediate past treasurer for the Community Foundation of Greater Jackson. In 2013, the Mississippi Business Journal named Candie one of the state’s Top 50 Leading Business Women. In addition to her community outreach, Candie is active with Alpha Kappa Alpha Sorority, Inc., where she completed her second term as treasurer for her local chapter and was voted 2013 Soror of the Year. She completed a three-year term on the national board of the Ole Miss Alumni Association, and then later served as a member of the organization’s Executive Committee. Candie is currently serving another three-year term on the national board of the Ole Miss Alumni Association. She has previously served as the chair of Jackson State University’s Entrepreneurship Advisory Council. A native of Ocean Springs, Mississippi, Candie received her bachelor’s degree in Business Administration in Marketing and a Master of Business Administration from The University of Mississippi.

© 2017 Regions Bank. Regions and the Regions logo are registered trademarks of Regions Bank. The LifeGreen color is a trademark of Regions Bank.

Banking & Finance

12 Q Mississippi Business Journal Q October 13, 2017

MARKET Continued from Page 8

be able to better understand your tolerance for risk and make sure your asset mix matches up with your risk tolerance.”

Another point is that few people have an appreciation for bonds during the good times.

“It is an unloved asset class,” Lundgren said. “People think of it as an anchor when you are getting these outstanding market periods. When you get an appreciation for that part of your portfolio is when you run into a more volatile period.”

University of Southern Mississippi Assistant Professor of Finance Dr. Srinidhi Kanuri said he believes the tremendous strength of the market right now partly hinges on people being excited about tax reform.

“The U.S. has some of the highest corporate taxes in the world, and the current administration is expecting to reduce corporation rates,” Kanuri said. “Some of the big corporation like Apple or Google have operations all over the world so they

BANKS Continued from Page 9

“The payday industry is a billion dollar industry where people are taken advantage of,” he said.

CDFI institutions also work to provide programs for financial education and financial literacy. Whether it’s equipping underserved communities with knowledge or investment funds, the effects are much larger than the initial federal grant.

“When you can give individuals more money, they’re going to use that money to go grocery shopping or repair their cars,” he said. “Those retail businesses are going to benefit.”

Citizens National Bank, headquartered in Meridian, is another CDFI working to support small business lending and promoting affordable housing.

“As we all know, many areas of our state are faced with high poverty and unem-

can avoid bringing profits back to the U.S. to be taxed. But there are also many smaller companies that can’t take advantage of as many of those tax.”

Kanuri said firms represented by the Russell Lundgren 2000 index, which is the 2,000 of the smallest firms in the U.S, generally pay higher taxes than big firms. He said these firms pay a 33 percent income tax compared with an average of 27 percent for big companies able to take advantage of tax loopholes.

“The Russell 2,000 has gone up even more in expectation of this tax reform, but it has to be backed by earnings,” Kanuri said. “We will know soon if these companies have the earnings to support the increase in price — whether earnings match up to the valuation.”

Kanuri said it might not be the best time for a small investor to enter the market, but small investors can invest small amounts every month through Index mutual funds. With stocks at record high

levels, some people might consider it time to sell.

Kanuri said that decisions depends on your personal condition and needs.

“If I was in the market, I would stay put because the market has been going Kanuri up,” he said.

Bonnie Van Ness, Ph.D., finance department chairwoman, the University of Mississippi School of Business Administration, and Robert Van Ness, director of doctoral programs in the finance department at Ole Miss, said the slow, steady growth is good for the economy, but growth (in the long run) tends to be uneven, not steady from year to year.

“Corporate earnings and unemployment are currently positive, but if these change (or perhaps something else the market views as negative happens), the market will incorporate that information quickly,” they said. “There was an article recently on CNN talking about a market ‘melt up,’ which addresses the issue of continued market increases. Something

“Community banking has always been one of the economic engines that creates growth and development for local citizens.”

Archie McDonnell, President/CEO, Citizens National Bank, Meridian ployment rates that exceed the national average,” McDonnell said. “These factors contribute to customers’ difficulty in accessing traditional financial products and services.”

McDonnell explained that low incomes often lead to low credit scores and an inability to meet traditional underwriting criteria. The bank will use the funds to expand small business financing products, particularly for minorities and women.

“We want to do everything we can to help potential borrowers to overcome obstacles that might prohibit them from

qualifying for traditional business financing,” he said.

In the past four years, Citizens has originated more than 6,600 loans valued at over $1 billion and have resulted in more than 5,400 new or retained jobs.

The bank has also made it possible for 360 families to become first time homeowners and over 200 entrepreneurs to become first-time business owners.

“Community banking has always been one of the economic engines that creates growth and development for local citizens,” McDonnell said.

interesting to consider is the CNN Money’s Fear & Greed Index, which is a market sentiment index. The article states that the index is signaling ‘euphoria’ and ‘extreme greed’ right now, which does not exactly bode well for market.”

Some “knowledgeable” people are always predicting a continuation of current market trends while others predict the opposite of what is currently happening.

So, someone has to be right.

“Markets have corrections — the trigger of the correction may be lower corporate earnings, an increase in unemployment, war, etc.,” the couple said. “When the market is making new highs as now, market participants are euphoric and do not necessarily see the correction coming. Bull markets, like all good things, must come to an end, but right now, the current uncertainties do not seem to be outweighing the positive economics. We do not have crystal balls and do not know when the next correction will occur.”

The CDFI program began in 1994, but Brown said most Mississippi banks just began learning how to fully utilize these funds in the past few years. Currently, federal funding is being threatened for future years, which would stop all progress CDFI banks have begun. In 2017, $248 million was distributed. This year, the Trump administration lobbied to halt the program.

“It would be catastrophic for rural areas and for economic distressed programs,” Roth said.

Roth said the House voted to retain the program with $190 million in funding.

Currently, they are awaiting the Senate vote for a final decision.

With Mississippi having the most CDFI-eligible areas, the state would be affected the greatest.

“We need to make sure they [Congress members] are informed on how this is important to lives and how it supports the country overall,” Brown said.

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Newsmakers

October 13, 2017

HORNE promotes 3

Elkins

Legner

HORNE LLP, an accounting and business advisory firm, recently announced the promotion of Ridgeland team members Matt Ferrell, Matt Elkins and Jon Legner.

On the construction team, Ferrell and Elkins were both promoted to senior manager. Legner was promoted to manager on the public and middle market team.

Q

13

Sanderson boosts Holifield

Courtesy of Oxford-Lafayette Chamber of Commerce

The Leadership Lafayette Program’s 10th annual Leadership Award Winner is Sha’ Simpson,Volunteer Coordinator at North Mississippi Regional Center. With her are Torie White (left), Leadership Lafayette Program chairman; and David Guyton (right), Chamber Chairman. ,

Oxford chamber graduates 19 The Oxford-Lafayette County Chamber of Commerce recently graduated 19 emerging community leaders from its 29th annual Leadership Lafayette Program.

The 2017 class included: Cade Austin, Baptist Memorial Hospital; Betty Bloom, Bloom Again/ Dignity.PERIOD; Jody Burnett, St. Peter’s Episcopal Church; Brooke Gobert, Trustmark National Bank; John Hopkins; Kelly Huckaby, Mississippi Federal Credit Union; Medora Justus, Hardy Reed/University of Mississippi; Chloe Lloyd; Ed Maxwell, Watkins, Ward and Stafford; Jerad Myers, Turner Law, PLLC; Lauren Pace, FNB Oxford; Henry Paris, HomeFirst Mortgage;

Hancock earns a top rating Rating and analysis firm, BauerFinancial, Inc., has again recommended Hancock and Whitney Bank as one of the strongest, safest banks in America—now for 112 consecutive quarters.

Based on the quarter ending June 30, the recent 4-Star Excellent rating indicates that Hancock Whitney excels in areas addressed by BauerFinancial’s proprietary rating standards.

Hancock Bank locations in Mississippi, Alabama, and Florida and Whitney Bank locations in Louisiana and Texas.

Olmstead joins Clinic Ferrell

Mississippi Business Journal

opportunities, serving as Tice’s Economic Development Project Manager. She also is responsible for marketing the company’s engineering and surveying services. She is an Economic Development, Transportation and Coastal Restoration Advocate for AECOM, the world’s largest engineering company.

She is a graduate of the University of Louisiana at Monroe and the University of Oklahoma Economic Development Institute (OU-EDI).

Small Town gets director

Mississippi State’s Carl Small Town Center has selected its new leader and another member to the team.

Leah F. Kemp was promoted to CSTC director in July, while Thomas R. Gregory III is the community planner.

Prior to assuming the center’s Kemp directorship, Kemp served for six years as assistant director and one year as interim director. At MSU, she also has served as an adjunct professor, visiting assistant professor and instructor in the College of Architecture, Art and Design.

A Mississippi Registered Architect, Kemp also has practiced Gregory in Washington, D.C., and Nashville, Tennessee. She holds a bachelor’s degree in interior design from Virginia Tech, as well as a master of architecture from Tulane University, where she received a commendation.

Additionally, Kemp is a member of multiple professional organizations, including the American Institute of Architects, and the national American Planning Association and its Mississippi chapter. She also is a Mississippi Heritage Trust and Mississippi Main Street board member.

In her new role, Kemp said she will continue serving as a leader, partner and educator in public interest design for MSU’s School of Architecture. Being a strong advocate for meaningful design in small towns is another of her top priorities, she said.

Gregory is a 2005 MSU business administration, construction management and land development bachelor’s graduate who also minored in economics and political science. He returned to his alma mater after serving eight years as chief administrative officer for the City of Greenwood.

In that role, he was instrumental in writing grants, administering projects, and implementing the comprehensive plan for the city under the leadership of Mayor Carolyn McAdams.

A Master of City and Regional Planning graduate of the University of North Carolina at Chapel Hill, Gregory is licensed by the American Institute of Certified Planners and is a member of the American Planning Association and Congress for the New Urbanism, among other professional groups.

Q

Blake R. Olmsted, MD, recently joined Hattiesburg Clinic Allergy Asthma & Immunology.

Olmsted received his medical degree from the University of Mississippi Medical Center in Jackson.

He completed both an internship and his residency in internal medicine at Medical University of South Carolina in Charleston,

Olmstead

Justin Ramsey, Bancorp South; Rixter Sharpe, Baptist Memorial Hospital-Diagnostic Center; Sha’ Simpson, North Mississippi Regional Center; Afton Thomas, Southern Food Alliance at University of Mississippi; Cobie Watkins, University of Mississippi Center for Innovation and Entrepreneurship; Alex White, University of Mississippi; Ryan Winters, Oxford Police Department.

Sha’ Simpson, Volunteer Coordinator at North Mississippi Regional Center, received the 10th Annual Leadership Award after a class vote.

The Chamber will begin accepting applications for the 2018 Leadership Lafayette class in late October.

S.C. He also completed a fellowship in allergy and immunology at the University of Mississippi Medical Center in Jackson.

Olmsted has a special practice interest in the treatment of children and adults with asthma and allergic conditions, such as nasal and eye allergies; eczema; hives; food, drug and insect allergies; angioedema and anaphylaxis. He also has special training in allergy skin testing, allergen immunotherapy and spirometry breathing tests.

He is a member of the American Academy of Allergy, Asthma & Immunology, the American College of Allergy, Asthma & Immunology and the American Medical Association.

Tice’s Moon recognized Mary Ann Moon, CEcD, FM, Vice President of Economic Development and Marketing for Tice Engineering Inc. recently received Honorary Life Member status from the International Economic Development Council (IEDC).

Honorary Life Member status is conferred upon active and long standing IEDC members for their lifelong commitment to excellence in economic development.

Moon is responsible for developing new business

Christy Holifield has been named Corporate Cash Management Manager at Sanderson Farms, Inc., headquartered in Laurel. Holifield will be responsible for supporting the company’s treasury and cash management operations, as well as developing strategies to maximize efficiencies, safeguard assets and minimize costs.

Holifield began her career with Sanderson Farms as a Beginning Trainee in 2002. Since then, Holifield has held the roles of Feed Mill Clerk, Internal Auditor and, most recently, Corporate Cash Management Accountant. As Corporate Cash Management Accountant, Holifield was responsible for supervising monetary control of all company funds including recording, classifying and summarizing activities of cash receipts, depositories and disbursements of funds.

A resident of Stringer, Holifield is a graduate of Jones County Junior College in Ellisville, and the University of Southern Mississippi, where she earned a Bachelor of Science degree in Accounting. She is pursuing a Juris Master’s degree with a concentration in Financial Regulation & Compliance from Florida State University College of Law. Holifield holds a Certified Treasury Professional Credential and is a graduate of Leadership Jones County. She is actively involved in her church, where she serves on various committees.

Crenshaw receives award Randall W. Crenshaw, a 1978 Mississippi College graduate and a long-time leader with CommScope, will be saluted as co-recipient of the Mississippi College Order of the Golden Arrow Award.

Each Fall, the National Alumni Crenshaw Association award showcases Mississippi College graduates or university friends for their outstanding personal and professional achievements.

A resident of Murphy, Texas, Crenshaw has served as the CommScope’s executive vice president and chief operating officer since 2011. He’s worked in various leadership capacities at the firm that helps companies worldwide design, build and manage their wired and wireless networks since 1985. He was named executive vice president and general manager for enterprise in 2004. CommScope was founded in 1976.

Crenshaw has remained a major supporter of Mississippi College and the School of Business. He serves on the MC Board of Trustees.

Crenshaw shares the honor with Alabama resident Bob Terry. A 1965 MC graduate, Terry is president and editor of the award-winning “Alabama Baptist” newspaper based in Birmingham.

New Businesses

14 Q Mississippi Business Journal Q October 13, 2017

CROSSROADS BODY SHOP: The Alliance recently held a ribbon cutting ceremony for the grand opening of Crossroads Body Shop, 2613 Getwell Road in Corinth. Donald Bates cut the ribbon assisted by Mayor Tommy Irwin. Also participating were owner Preston Knight, his wife Alesha, their daughter Olivia, other city and county officials and family and friends. Other staff pictured are Dillon Knight and Eric Wilbanks.

Courtesy of The Alliance

Courtesy of The Clinton Chamber of Commerce

OLLIE+REA: The Clinton Chamber of Commerce and Main Street Clinton recently sponsored a ribbon cutting for Ollie+Rea, 438 Magnolia Road in Clinton. Owner Terresa Graham was joined by Chamber and Main Street board members, chamber ambassadors, city officials, family and friends.

Courtesy of EMBDC

EAST MISSISSIPPI BUSINESS DEVELOPMENT CORP.: The East Mississippi Business Development Corporation recently held a ribbon cutting and open house to celebrate its relocation to its new building at 200 22nd Avenue in Meridian.

Courtesy of The Clinton Chamber of Commerce Courtesy of Oxford-Lafayette County Chamber of Commerce

SOUTHERN STORAGE: The Oxford-Lafayette County Chamber of Commerce recently held a ribbon cutting for Southern Storage, a self-storage facility at 13 Industrial Park Drive.

RAPID TIRE CAR WASH: The Clinton Chamber of Commerce recently sponsored a ribbon cutting ceremony for Rapid Tire Car Wash, 955 U.S. 80 E. Owner Stan Sullivan was joined by Chamber board members, chamber ambassadors, city officials, family and friends.

October 13, 2017

THE SPIN CYCLE

Billboard, print ads are helping with healing of Las Vegas

A

ds are appearing all over Vegas, and across the country, from digital billboards at airports to famous marquee displays outside the major hotels and casinos to print advertising.

Two lines of white copy on a black background: We’ve been there for you during the good times.

Thank you for being there for us now.

Below that are the Las Vegas tourism logo and the hashtag #VegasStrong.

The message is everywhere. Some displays have other ads rotating in, but many are unblinking – broadcasting just those words of thanks to the tourists, and to those around the world who offered support since the nation’s most horrific mass shooting in history.

Every city in mourning repurposes its outdoor ad space this way. Think of the “United We Stand” ads in New York after 9/11, or #BostonStrong after the marathon bombing. Out-ofhome plays a unique role at such moments, giving public voice to the pain – and also to the resilience that emerges. It’s something the community craves – and bonds a nation.

Las Vegas knew it would need such messaging, and quickly, to help the city begin to heal. The task fell to R&R Partners, longtime agency of record for the Las Vegas Convention and Visitors Authority – best known for their long-running tourism ad campaign “What happens here stays here,” according to Adweek.

Wall Street Journal ceases European, Asian editions The Wall Street Journal has stopped publishing its European and Asian editions, the paper recently announced, amid a wider editorial restructuring and falling revenue.

In an end to a 40-year history, the company stopped publishing its separate editions for Europe and Asia last week The decision comes after the paper’s parent company, News Corp., reported a loss of $643 million for the most recent fiscal year, which ended in June, compares with $235 million in net income during the previous year.

The paper began publishing a separate Asian edition in 1976, and its European edition followed in 1983. The U.S. edition of the WSJ will be available in some cities at a later unspecified date, according to WSJ. Despite recent losses, digital subscriptions are on the rise and the WSJ plans to focus on encouraging customers in Asia and Europe to read the publications online. Those gains in online-only subscriptions made “continuing the foreign editions no longer cost-effective”, the newspaper said.

The WSJ added 322,000 digital subscriptions in the most recent financial quarter for a total of 1.27 million for the Asian market.

Reports emerged in June 2017 that the WSJ would be ending its publishing operations outside the US, and a spokeswoman at the time said the paper was “constantly examining the balance between print and digital at a time when we’re seeing sharp growth in customer demand for digital”.

The end of publishing separate editions also comes as the paper undergoes a wider restructuring. At the end of 2016, all WSJ employees were eligible for buyouts and layoffs followed shortly after.

The WSJ has seen a host of reporters and editors leave in the past year as some staff grows frustrated with the paper’s coverage of President Trump.

Twitter to double character limit to 280 The tweets in your timeline are about to get expanded, big time!

Twitter said recently it has started testing 280-character tweets, doubling the previous character limit, in an effort to

help users be more expressive.

“Our research shows us that the character limit is a major cause of frustration for people tweeting in English,” the company said in a blog. “When people don’t have to cram their thoughts into 140 characters and actually have some to spare, we see more people Tweeting — which is awesome!”

Todd Smith About nine percent of all tweets today are exactly 140 characters, Twitter says. It’s tough to do that on accident, suggesting that users frequently have to edit their initial thoughts to get them under the limit.

The 140-character limit was originally established to reflect the length of SMS messages, which was how tweets were distributed prior to the development of mobile apps. SMS messages are limited to 160 characters; Twitter reserved the remaining 20 for the username. As often happens in creative mediums, the constraint spurred creativity, and Twitter became a fast-moving, newsy, jokey playground.

Silenced Mic: Tom Petty rocked – and gave voice – to our world Tom Petty, the iconic front man of the band the Heartbreakers, who died recently, moved, entertained and transformed our generation – the children of the ‘70s and ‘80s!

Tom Petty & The Heartbreakers romanced tales of refugees, outcasts and rebels in the late 1970s, and quickly dominated the pop charts.

Petty’s voice, laced with the perfect dose of heartfelt angst danced perfectly with the group’s ragged rock & roll. Songs like “The Waiting,” “You Got Lucky,” “I Won’t Back Down,” “Learning to Fly” and “Mary Jane’s Last Dance” dominated Billboard’s rock chart, and the majority of Petty’s albums have been certified either gold or platinum. His most recent release, Hypnotic Eye, debuted at No 1 in 2014. Petty, who also recorded as a solo artist and as a member of the Traveling Wilburys and Mudcrutch, was inducted into the Rock and Roll Hall of Fame in 2002 The band recently completed a summer tour with three nights at the Hollywood Bowl. The trek marked the band’s 40th anniversary where he belted out rarely played deep cuts like their first album’s opener, “Rockin’ Around (With You),” and a selection of Wildflowers songs. It was intended to be his “last trip around the country.”

Petty had a rough childhood, and didn’t do well in school, according to The New York Times, so he turned to music. He met Elvis Presley in 1961 while The King was in Florida shooting a film. That was a life changing moment for the young Petty. He received his first guitar at a young age, and quit high school at 17 to join the southern-rock group Mudcrutch, which took off. The rest is history. He became a rock star, following in the footsteps of Elvis, Roy Orbison, The Beatles and The Rolling Stones.

Somewhere above the clouds – and beyond the Pearly Gates – Petty has taken the stage with Elvis, Roy Orbison, John Lennon and George Harrison, and are rockin’ with the angels!

Each week, The Spin Cycle will bestow a Golden Mic Award to the person, group or company in the court of public opinion that best exemplifies the tenets of solid PR, marketing and advertising – and those who don’t. Stay tuned – and step-up to the mic! And remember … Amplify Your Brand!

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

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Mississippi Business Journal

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MANUFACTURING

TOYOTA TO CELEBRATE 10 YEARS IN MISSISSIPPI

By MBJ STAFF Toyota’s facility in Blue Springs will celebrate its 10th anniversary with a ‘Back Porch Blues’ concert on Nov. 4.

“The progress our team members have made over the past 10 years has been amazing,” Vice President of Administration Mike Botkin said in a release. “Their commitment to quality and safety, plus the unwavering support we have received from the community, is the foundation of our success.”

Earlier this year, Toyota announced plans to build a nearly $10 million visitor and interactive training center. The facility will offer public tours showcasing how nearly 2,000 Mississippians produce Corollas vehicles, the world’s best-selling sedan of all time.

To thank the community for its support, Toyota Mississippi will host “Back Porch Blues,” a free outdoor community concert at Fairpark in Tupelo.

Soul Shockers will showcase its classic rhythm and blues at 5:30 p.m., followed by the funky Dirty Dozen Brass Band at 6:45 p.m. The seven-man soulful combo, Nathaniel Rateliff and the Night Sweats, will roll out an eclectic sound of vintage rhythm and blues at 8 p.m.

Food and beverages will be available for purchase.

For complete details, visit www.toyotamsevents.com.

TRANSPORTATION

Senator’s plan to raise taxes for transportation maintenance Mississippi residents could vote on a state lawmaker’s plan that would raise taxes and fees to pay for needed renovations to roads and bridges.

Mississippi Central District Transportation Commissioner Dick Hall on Monday announced the bill Republican state Sen. Dean Kirby of Pearl plans to introduce next year, The Clarion-Ledger reports .

Kirby’s plan is in draft phase and includes a statewide referendum, annual fees of $150 on electric cars and $75 on hybrid cars, and adding roughly 1.5 cents to Mississippi’s fuel tax of 18.4 cents a gallon. His plan would also place a $2.50 fee per car tire.

Kirby’s legislation would allow residents to say “yes” or “no” to his plan and view a list of projects the money would fund in each of Mississippi’s three transportation districts. A successful referendum in Georgia gave him the idea, Kirby said, as he believes there is no way lawmakers will pass a fuel tax increase.

Kirby has not yet run his plan by others in the Republican Senate leadership, he said, including Lt. Gov. Tate Reeves, who has been opposed to any tax increase for roads and bridges, or anything else.

Mississippi needs at least an additional $400 million each year in state funding for transportation maintenance, Hall said.

— Associated Press

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