MBJ_Sept07_2018

INSIDE — Gulfport builder wins $68 million Ingalls contract — Page 2 TECHNOLOGY

www.msbusiness.com

Starkvillebased Camgian to expand to Tuscaloosa

September 7, 2018 • Vo. 40 No. 36 • 20 pages

REAL ESTATE

BANKING

— Page 3

MBJ FOCUS

RENASANT NEARLY A $13 B BANK WITH LATEST MERGER

By Dennis Seid Daily JOurnal

ECONOMIC DEVELOPMENT {Section begins P10} » GRAMMY Museum Mississippi has attracted 70,000 visitors since opening » Chasing smokestacks, fostering a creative economy – can Mississippi do both? » Mississippi Angel Fund could become go-to-place for startups » Mississippi, Japan have strong foundation » LAW ELEVATED: Recent tax changes to encourage development & new investment

{The List P16-17} » Trade Associations

Central Mississippi a seller’s market for houses

By JACK WEATHERLY jack.weatherly@msbusiness.com

Central Mississippi continues to be a seller’s market for homes, with the median sales price rising 6.5 percent in July compared with a year earlier.

The midpoint price of a house sold in that period rose to $189,000 from $177,500, according to the Central Mississippi Multiple Listing System.

Also, days on the market were down 23.8 percent to 70 from 92 days in the 10-county area year over year.

Yet the price and sales pace are being influenced by an inventory that dropped 36.7 percent in the 12-month period, from 7 months to 4.4 months, according to the Central Mississippi Realtors Association.

“Wages are up but not at same pace as home prices, leading to the kind of affordability concerns that can cause fewer sales at lower prices,” the association said in its Market Heartbeat report.

Reuters said last week that a poll of U.S. property market experts holds that prices are in See SELLER’S, Page 3

http://msbusiness.com/events/lif/

TUPELO – In just three years, Renasant Corp.’s assets have more than doubled. Acquisitions have played a large role in that growth, as the parent company of Renasant Bank has merged with four other banks during that time.

The most recent is its merger with BrandBank of Georgia. The $452 million deal is the largest merger in Renasant’s 114-year history, and now its total assets are $12.7 billion.

The Tupelo-based financial holding company has 190 banking, mortgage, wealth management, and insurance offices throughout Mississippi, Tennessee, Alabama, Georgia and Florida.

“We’re excited to have completed our merger with BrandBank. With the addition of Brand, Renasant now has top 10 deposit market share in the highly attractive Atlanta MSA,” said Renasant President and CEO Mitch Waycaster. “This merger expands See RENASANT, Page 2

2 Q Mississippi Business Journal Q Septbember 7, 2018 MANUFACTURING

Gulfport builder wins $68 million Ingalls contract

By JACK WEATHERLY jack.weatherly@msbusiness.com Gulfport-based Roy Anderson Corp. has been awarded a contract valued at approximately $68 million by Huntington Ingalls Inc. for the East Bank Revitalization project in Pascagoula.

The project is part of Huntington Ingalls’ plans to reactivate its shipbuilding facilities on the East Bank of the Pascagoula River, which were heavily damaged by Hurricane Katrina in 2005.

Work is expected to begin in the next 30 days with substantial completion anticipated in the fall of 2019. Efforts to determine the jobs creation impact of the rebuilding were not immediately successful.

Huntington Ingalls announced in April that it would reactivate its shipbuilding facilities on the east bank of the Pascagoula River.

The site of the original Ingalls Shipbuilding Corp., founded in 1938, was decimated by Katrina. The reactivation will restore the facility’s ability to support Ingalls’ current ship construction and modernization programs as well as help the company better prepare for the future.

“We are excited to be bringing the east bank back to life,” Ingalls Shipbuilding President Brian Cuccias said in April. “As we prepare to celebrate our 80th anniversary, what better way to do that than to announce that the original Ingalls facility will become a productive, vibrant part of the Pascagoula landscape once again!”

Work is expected to require approximately two years to complete.

The primary component of the project includes the addition of large, covered construction areas for construction of ship assemblies and components as well as the restoration of an outfitting pier.

Huntington Ingalls is Mississippi’s largest manufacturer, with 11,500 employees as of May 2017.

It is America’s largest military shipbuilding company. For more than a century, its Newport News and Ingalls shipbuilding divisions in Virginia and Mississippi, respectively, have built more ships in more ship classes than any other U.S. naval shipbuilder.

Roy Anderson is a subsidiary of Tutor Perini Corp. is a leading civil, building and specialty construction company offering diversified general contracting and design-build services to private clients and public agencies throughout the world.

RENASANT

Continued from, Page 1

our earnings growth and profitability, and increases our asset size well beyond the $10 billion threshold.

We also believe this merger will greatly benefit both Brand’s and our existing clients with expanded locations, services and products. We look forward to a bright future with Brand now being part of the Renasant family.”

Founded in 1905, Brand has 13 locations throughout the greater Atlanta market. As of June 30 Brand had about $2.2 billion in total assets, $1.7 billion in total loans and $1.8 billion in total deposits.

Although the merger has been completed, full conversion and integration of Brand’s operations into Renasant’s is not expected to be complete until Oct. 29.

The acquisition of Brand is Renasant’s fourth since July 2015. In July of last year, Renasant completed its acquisition of Metropolitan Bank in a merger valued at $190 million. Prior to that, Renasant completed its acquisition of Georgia-based KeyWorth in April 2016 in a $59 million deal. In July 2015, Renasant completed a $250 million acquisition of Georgia-based HeritageBank that added some $1.9 billion in assets.

Until the Brand merger, that deal had been Renasant’s largest acquisition.

You, Your Health,

Your Life.

TECHNOLOGY

SELLER’S Continued from, Page 1

Starkville-based Camgian to expand to Tuscaloosa

By MBJ STAFF

Starkville-based Camgian Microsystems, a pioneer in advanced sensing systems and technologies, will expand to Tuscaloosa, Ala. Camgian is a leader in developing integrated sensing platforms that provide real-time situational awareness. Using advanced technologies in sensing, artificial intelligence (AI) and machine learning, Camgian improves the performance of clients in the military, financial and industrial sectors.

“We are excited to expand our operations and look forward to a long and productive relationship with the community of Tuscaloosa and The University of Alabama,” Dr. Gary Butler, founder, chairman and CEO of Camgian, said in a news release. Butler typically does not reveal employment numbers.

Camgian will become the first anchor tenant of the new business incubator and accelerator, known as The Edge, where it will

September 7, 2018

the position “to rise this year at the fastest pace since 2015 and at more than double the rate of pay growth and consumer price inflation for the sixth year in a row.”

Reuters quotes Sal Guatieri, senior economist at BMPO Capital Markets, as saying that “affordability is declining or will continue to decline.”

The Reuters poll said that further Federal Reserve rate hikes are expected.

Existing houses make up 90 percent of the market. Nw homes comprise the balance.

The Associated Press has reported that lumber prices have shot up by about $7,000 per U.S. home since the start of 2017, largely due to tariffs on Canadian softwood lumber by the Trump administration, according to the National Association of Homebuilders.

The Commerce Department said that housing starts in July rose to a seasonally adjusted annual rate of 1.17 million, according to the AP, hardly enough to reverse the 12.9 percent plunge seen in June as rising lumber, land and labor expenses appeared to constrain new construction.

house its new Center for AI and Machine Learning.

Created in 2012 by the University of Alabama, the Chamber of Commerce of West Alabama and the city of Tuscaloosa, The Edge broke ground in 2017 on a 26,300-squarefoot facility that will be managed by the university’s Culverhouse College of Business and be fully operational by January 2019.

“We are pleased to see Camgian Microsystems connecting with our community and joining forces with The Edge, which is one of the most cutting edge entrepreneurial centers in the area,” university President Dr. Stuart Bell said in the release.

Camgian has been recognized as one of the Best Entrepreneurial Companies in America by Entrepreneur Magazine, one of the World’s Top Start-Up Companies by ABI Research, and the Compass Intelligence Industrial Internet of Things Company of the Year for 2018.

Q

Mississippi Business Journal

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Starts have risen 6.2 percent yearto-date. Solid job growth and a dearth of existing homes for sales have increased demand for new properties.

Jackson-area homebuilding permits totaled 1,352 in 2017 and are on course to reach that number, with 701 issued in the tri-county area of Hinds, Madison and Rankin counties through July, excluding Canton and Florence, according to the Homebuilders Association of Jackson.

Steven Smith said his Charter Builders will build about eight homes this year, which he says is fairly typical for him.

The Madison-based builder said his homes range from $350,000 to $400,000, with current high-end being about $700,000.

Appraisals are lagging behind the added material costs, Smith said. “If the costs are up, the appraisals should be, too.”

Rains have been frequent and heavy in the area this summer. Nevertheless, Smith said, “homes are moving fairly well.”

And even the price of lumber has moderated some, he said, though he conceded he was puzzled by that trend.

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Tommy Morgan RealtorsÂŽ, at home in North Mississippi.

TUPELO | OXFORD 210 East Main St., Tupelo, 662.842.3844 2092 Old Taylor Rd., Oxford, 662.234.5344 tmhomes.com

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

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MBJPERSPECTIVE September 7, 2018 • www.msbusiness.com • Page 5

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» INSIDE MISSISSIPPI

Nothing uncertain about war risks for Mississippi troops

T

he stock market is in a secular bull market and has years to run, says one respected analyst. A major trading firm, on the other hand, warns the end of the bull run is near.

A recession looms says a Bloomberg.com headline. FED Chairman Jerome Powell says the economy is likely to continue booming for at least another three years.

CNBC says trade conflicts and U.S. tariffs won’t hurt the economy. The White House Council of Economic Advisors warns the tariffs will hurt economic growth.

Whether it’s the trade war with China, potential peace with North Korea, détente with Russia, or peace in the Middle East, the arguments fly on both sides by respectable forecasters.

It seems the only thing certain these days is uncertainty.

Heisenberg’s Uncertainty Principle sort of explains this in physics, It says that we cannot know things precisely; the best we can do is calculate probabilities.

So, while uncertain, there is a high probability rising interest rates coupled with growing budget deficits and the surging national debt will impact the economy.

While uncertain, there is a high

Bill Crawford

probability that if Democrats take over the House the President will double down on his negative tweets.

And while uncertain, there is a significant probability that the Strait of Hormuz will become the flashpoint that puts the U.S. at war with Iran and maybe Russia.

Huh? Tensions between the U.S. and Iran are once again flaring in the Strait of Hormuz, the 21 mile wide strait between Oman and Iran through which about one-third of international oil shipments pass.

Last week a top Iranian admiral said Iran has taken over control of the Strait. Not so, responded Secretary of State Mike Pompeo. But Iran’s anger at the U.S. has led to conflict there in the past.

In 2012 Iran threatened to close the Strait, which led to diplomatic talks that resulted in the nuclear agreement President Trump has now trashed.

There were military clashes in the Strait between the U.S. and Iran from 1980 to 1988, as Iran mined the waters to threaten shipping. This ended with a military defeat for Iran in 1988 when the U.S. decimated several Iranian See CRAWFORD, Page 6

he number of inmates who died in state prisons last month is alarming.

And the trend may not be as rare as we think it is.

Last week, the Mississippi Department of Corrections posted a notice on its website that a 15th inmate had died in state custody in August, as reported by the Associated Press.

Earl King Davis died at a Vicksburg hospital, where he was taken from South Mississippi Correctional Institution in Leakesville. The 55year-old Davis was serving 20 years. In 2008, he was sentenced to 10 years for manslaughter, and in 2009, he was sentenced to 10 years for aggravated assault.

Davis’ death prompted corrections Commissioner Pelicia Hall to say she is asking the FBI and Department of Public Safety to examine recent inmate deaths. She said she was making the request in the interest of government transparency, though she believed most deaths were from natural causes, such as heart disease or cancer.

In fact, a day earlier, the DOC had reported the death of 45-year-old Curtis Hughes, who was pronounced dead in the hospital at the Mississippi State Penitentiary at Parchman. At the time, Hall said the number of deaths in Mississippi prisons in August was not “out of line” with previous months.

That’s not exactly a comforting statement.

August’s death toll has caught the attention of the media and of state politicians. If it isn’t an anomaly, that is all the more reason the state needs to carefully investigate these deaths and act to prevent them.

MDOC records show that 78 prisoners died in state custody in 2017, according to Mississippi Today.

Officials in Greene and Sunflower counties, where South Mississippi Correctional Institution and Parchman are located told Mississippi Today that the number of in-custody deaths this month are on par with the numbers they usually see.

“I am going to get the public some answers,” Attorney General Jim Hood said in a statement last week.

Meanwhile, Gov. Phil Bryant told reporters last week that officials will investigate each death. He said inmates who die “are just as important as anyone else in the state of Mississippi whose lives have been lost.”

And he’s absolutely right. Prisoners may be serving time for various transgressions, but they have every right to an expectation of safety during their time behind bars. Some of the deaths may be due to natural causes, but the state owes it to these men and women to ensure they are kept safe while in state custody.

We are glad the FBI and the Department of Public Safety are investigating the issue. That investigation must be thorough, transparent and complete.

Too many state inmates are dying. It is time to get answers and take corrective actions.

— Northeast Mississippi Daily Journal

PERSPECTIVE

6 I Mississippi Business Journal I September 7 2018 » RICKY NOBILE

CRAWFORD

Continued from Page 5

warships and suffered no losses.

A retired Navy air ops commander remembers wargaming the closure of the Strait numerous times. “When the Blue (us) forces attacked the Orange (Iran) naval assets, it always ended up involving, in those days, the USSR. A lot has changed since I was a sailor, but it is an open secret that Iran’s major patron in the world community is Russia. So far, this has played out in a seemingly controllable theatre in Syria, although half a million casualties there would not likely agree that their war is ‘controllable.’

An escalation of tensions in the Strait that results in shooting would, in my humble opinion, be disastrous.”

He is uncertain that cooler heads like Pompeo and Secretary of Defense Jim Mattis could keep Trump from jumping into an unnecessary war with Iran to divert attention from issues at home.

Remember that Mississippi National Guard and Air National Guard troops deploy regularly to support our military activities in today’s “controllable” theaters. Unnecessary shooting wars of any duration will increase their risks. Nothing uncertain about that.

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

»INSIDE MISSISSIPPI

Mississippi lawmakers cut knots on road funding

W

hen Mississippi lawmakers met in special session to deal with transportation funding, they agreed relatively quickly on issues that had been tangled in arguments for months or years.

They voted to create a state lottery, over objections of Baptist and Pentecostal groups that usually hold considerable influence in conservative politics.

They agreed cities and counties will receive a portion of sales tax revenue the state collects when people shop online.

They also agreed that taxes the state collects on sports betting in casinos will be used, until 2028, to help pay for highways and bridges.

Legislators passed a bill to divvy up hundreds of millions of dollars that Mississippi is collecting after the 2010 Deepwater Horizon oil spill in the Gulf of Mexico, with most of the money going to the six southernmost counties.

They also authorized the state to issue $50 million in bonds to create a Transportation and Infrastructure Improvements Fund to pay for local roads, bridges and "other projects that are economically beneficial." Legislators approved the first list of projects, with critics calling it a "Christmas tree" because it had goodies for 63 of the 82 counties.

The five-day session ended last week, and the state's three top Republicans — Gov. Phil Bryant, Lt. Gov. Tate Reeves and House Speaker Philip Gunn — celebrated in the Capitol rotunda, where Bryant signed a bill called the Mississippi Infrastructure Modernization Act of 2018.

Democratic and Republican legislators stood on a stairway behind them, and Reeves said the public should note the ses-

sion's bipartisan goodwill.

"The press loves to write about conflicts," Reeves said.

"They love to write when the executive branch and the legislative branch may not agree on something. ... They love to write when Republicans and Democrats may not agree to something."

There was, of course, disagreement during the session.

Several longtime Democratic lawmakers, including Sen. Hob Bryan of Amory and Rep. Steve Holland of Plantersville, said too few senators or representatives had a chance to be meaningfully involved in vetting issues all were asked to consider in a short time. Republican Rep. Noah Sanford of Collins was among the most outspoken critics of the list of local infrastructure projects, because his home of Covington County was among the places receiving no love.

Some lawmakers said important details of the lottery bill were rushed, although even critics said policymakers have had a generation to consider the general pros and cons of a lottery.

Mississippi voters repealed the state constitution's lottery ban in November 1992, but creating the game of chance requires legislative approval. Many officials have seen the lottery as a no-win situation — voting for it could alienate

Emily Pettus

people who have moral objections to state-sponsored gambling, but voting against it could alienate those who want a lottery as a form of entertainment.

Bryant pushed the lottery bill by saying Mississippi had

The five-day session ended last week, and the state's three top Republicans — Gov. Phil Bryant, Lt. Gov. Tate Reeves and House Speaker Philip Gunn — celebrated in the Capitol rotunda, where Bryant signed a bill called the Mississippi Infrastructure Modernization Act of 2018. been losing millions of dollars a year to Louisiana, Arkansas and Tennessee as residents crossed state lines to buy tickets.

Republican House Speaker Philip Gunn is a leader in a Baptist church in Clinton and has long opposed a lottery, but allowed the House to vote on the issue in special session.

The lottery bill received bipartisan support — and opposition — in the Republican-led House and Senate. Legislators named it the "Alyce G. Clarke Mississippi Lottery Law" to honor the Democratic state representative from Jackson who filed lottery bills for years. Bryant promises to sign the bill into law and says it will take months to get a lottery up and running.

Emily Wagster Pettus covers Capitol matters for the Mississippi Associated Press in Jackson.

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Newsmakers

8 Q Mississippi Business Journal Q September 7, 2018

Washington County Economic Alliance honored The Washington County Economic Alliance received honors for a communications piece at the SEDC Communication Awards Ceremony. The awards ceremony was held during the 2018 Southern Economic Development Council (SEDC) Annual Conference, July 29-31, 2018 in Mobile.

The Communication Awards are given each year by SEDC at its annual conference. Over twenty categories of communications and marketing work submitted

by SEDC members are evaluated within four divisions.

The awards are: BEST OF SHOW, BEST OF CLASS, SUPERIOR, EXCELLENT, MERIT, and SPECIAL JUDGES’ AWARDS. Judging criteria for General Entry Awards include Graphic Appeal, Clarity of Message, Quality of Information, Positioning / Differentiation and Format.

All winning pieces were on full display for attendees to view during the conference.

Judges for the Communication Awards competition are economic development consultants, communication and design professionals from across the southern United States who work with clients in developing strategies for growth in their communities.

SEDC chose these judges because of their knowledge of the economic development process, the development of marketing content, and graphic design. They understand the needs businesses have in choosing a site and how communities and economic development organizations can reach prospective clients through their marketing efforts.

The SEDC Annual Conference is SEDC’s main educational event of the year. Over 300 economic development professionals spent three days networking and learning recent economic development trends and strategies from corporate, government and executive professionals.

SEDC is the oldest and largest regional economic development association in North America, with more than 900 members representing a variety of backgrounds. From local, regional and state economic development agencies, chambers of commerce, business and industry, utilities, transportation, finance and education, members share a common interest: the promotion and enhancement of the economic development profession. To find out more about SEDC, please visit www.sedc.org.

Lockwood appointed divisional vice president Chris Lockwood, former Division Manager of Waste Pro’s Hattiesburg location, has been promoted to Divisional Vice President. Lockwood will manage the South Mississippi market, which includes the Hattiesburg, Natchez and Brookhaven Divisions.

Lockwood joined Waste Pro in 2013 as a Financial Analyst at the Lockwood Corporate office in Longwood, Fla. In 2014, he became a Management Trainee, and was promoted to Division Manager in 2015.

As Division Manager, Lockwood was responsible for supervising more than three dozen employees who operated approximately 27 trucks and serviced more than 25,000 residential customers, as well as more than 1,500 commercial customers in Forrest, Lamar, Stone, Pearl River and Marion Counties.

“My first opportunity to run a division at Waste

Charles H. Dean Jr. annual Memorial Scholarship awarded

nician), Tatiana Watson (Finance-Financial Analyst), Norveshia Ephraim (Slot Marketing- Player Development), Joshua Schivers (Security-Security Officer) and Kimberly Murphy (Food and Beverage-Bartender).

Part-time Team Members of the second quarter honorees include Jennifer Bradford (Hotel-Reservations), Rachael Buttram (Hotel Sales-Coordinator of Sales and Catering and Alecia Cook (Finance- Count Room Attendant) and the Team Leaders of the second quarter honorees included Eddie Ray (Security- Security Shift Supervisor), Jason Serpas (Finance/Purchasing-Warehouse Manager) and Kayla Blevins (Food and Beverage- Sous Chef, High Tide)

McNeill named accounting manager At Reunion

Dean and Dean/Associates recently awarded the Charles H. Dean Jr. Annual Memorial Scholarship to Tony D. Coleman Jr. of Gulfport.

The scholarship recognizes any full-time students at Mississippi State University in their third through fifth year of design studio in the School of Architecture. Applicants must be residents of Pro happened in Brookhaven. Southwest Mississippi is near and dear to my heart for that reason in particular,” Lockwood said. “It means a lot to be back and I look forward to working with the Waste Pros at both the Natchez and Brookhaven Divisions, along with continuing my working relationship with my current team in Hattiesburg. South Mississippi has become my home and I take extreme pride in servicing the communities and businesses in this area.”

Mississippi and can demonstrate financial need.

Coleman is in his fourth year at Mississippi State University. He is the second of three children and graduated from West Harrison High School in Gulfport in 2015. Out of 230 students, Coleman graduated third in his class. Over the summer, he worked as an intern in Dothan, Ala. player Purvis Short; • Hattiesburg developer and businessman Robert O. Tatum; • Writer of 21 No. 1 country music songs, Craig Wiseman; • The late Jesse L. Brown, the first African-American pilot in the United States Navy; • The late Evelyn Gandy, the first female lieutenant governor of Mississippi; • The late Bobby Myrick, a Major League Baseball pitcher who later became a businessman in Hattiesburg;

Inaugural Hall of Fame class announced by Hattiesburg Kulzer joins Bellevue schools foundation Fourteen alumni of Hattiesburg’s city schools will Physical Therapy be inducted into the inaugural HPSD Foundation Hall of Fame during a two-day event October 4-5 at Eureka School Museum.

The Foundation’s Hall of Fame steering committee selected the alumni, including three posthumously, for the Hattiesburg Public School District Foundation Class of 2018: • Former Professional Golfers Association president James Ray Carpenter; • Ten-time Mississippi Sports Writer of the Year, Rick Cleveland; • Public servant and the first African-American mayor of Hattiesburg, Dr. Johnny L. DuPree; • Five-time National Football League Pro Bowl selection Harold Jackson; • Former Morehouse College president and former Chair, Bank of America, Dr. Walter E. Massey; • President and CEO of Camellia Healthcare Abb Payne; • Orthopedic surgeon and a founder of Southern Bone and Joint Specialists, Dr. Doug Rouse: • President of the University of West Florida, Dr. Martha Saunders; • Former National Basketball Association star

Zachary B. Kulzer, PT, DPT, recently joined Hattiesburg Clinic Bellevue Physical Therapy and Petal Physical Therapy.

Kulzer received his Doctorate of Physical Therapy from the University of Mississippi Medical Center in Jackson. He is a member of the American Physical Therapy Association and Kulzer the Mississippi Physical Therapy Association.

IP Casino recognizes employees for June, 2nd quarter IP Casino Resort Spa in Biloxi recently recognized team members for their service, dedication and work ethic, honoring the Team Members of the Month for June, as well as honorees for Team Leader and PartTime Team Member of the second quarter of 2018.

June’s honorees were Tammy Golladay (Food and Beverage-Bakery), Joseph Bean (Facilities-Lead Tech-

Casey Smith, General Manager of the Reunion Golf & Country Club in Madison, announced the appointment of Josh McNeill to the position of Accounting Manager. McNeill will oversee all daily financial matters related to the club’s facilities and employees.

A native of Louisville, McNeill is a graduate of Mississippi State McNeil University with a Bachelor Of Accountancy degree. He joins Reunion after some 13 years experience in public and private accounting focusing on audits and individual taxation.

Stringer joins Hattiesburg Clinic Eye Associates William F. Stringer, Jr., OD, recently joined Hattiesburg Clinic Eye Associates.

He received his Doctor of Optometry degree from Southern College of Optometry in Memphis. He completed externships at Keesler Air Force Base in Biloxi and Baldwin Eye Clinic in Daphne, Ala. Stringer is board certified in optometry by the National Board Stringer of Examiners in Optometry. He is a member of the American Optometric Association.

Mississippi Economic Development Council honored at Conference The Mississippi Economic Development Council recently received honors for a communications piece at the Southern Economic Development Council Communication Awards Ceremony in Mobile, Ala. The entry in the Thinking Outside the Box category titled Mississippi Prospects - Economic & Community Development Podcasts, won an Award of Merit for the State Division. Mississippi Prospects was hosted by Jeff Rent, Senior Vice President at the Greater Jackson Alliance and produced by Podastery of Jackson.

Newsmakers Little elected shareholder at T.E. Lott

Katherine W. Little, CPA, CSEP, has recently been elected shareholder of T. E. Lott & Company. She has practiced in public accounting for 12 years.

Her professional expertise is in tax services, which includes tax consulting and advising, tax research of complex issues, Little tax planning for optimal tax outcome, execution of tax strategies, and compilation of tax returns for individuals, partnerships, corporations, non-profits, estates, gifts, and trusts.

She is a Certified Specialist in Estate Planning and Certified Senior Advisor. She co-founded the TEL CARES division of T. E. Lott & Company in 2012, which provides Social Security claiming strategies and consulting for upcoming retirees, as well as personal bookkeeping assistance to seniors.

In the Starkville community, she is an active member of the Starkville Rotary Club, where she has served as Treasurer and served on various other committees.

She is a current board member of the Northeast Chapter of Financial Planning Association, and member of the AICPA, and MSCPA. Katherine is a native of Quitman, received her Bachelor of Accounting and Master of Taxation from Mississippi State University. She and her husband, Jeff, have two children, Sarah Shelton and Jack.

Williams obtains aviation industry designation Clay Williams, Executive Director, Gulfport-Biloxi International Airport, has obtained the designation of Certified Member (C.M.) of the American Association of Airport Executives (AAAE). The designation is provided to Airport Executives who complete the AAAE Body of Knowledge Course of Study in Williams Administration, Finance, Airport Planning, Construction, Airport Operations, Community Relations and Communications.

On behalf of Gulfport-Biloxi International Airport, Williams focuses on continued funding of capital improvement initiatives, expansion and retention of air service and enhancement of airport services and facilities.

Williams holds a Bachelor’s degree from Mississippi State University and a Master’s degree from Harvard University and is an active member of numerous organizations in South Mississippi. In addition to his local civic engagement, Williams is also a current board member of the Mississippi Airports Association.

Wheat elected president of Mississippi Academy of Family Physicians

David B. Wheat, MD, FAAFP, of Clinton, was recently elected 2018-19 president of the Mississippi Academy of Family Physicians (MAFP).

He will lead the 1,100-member organization and chair the board of directors.

Wheat, a family physician who has earned the AAFP Fellow distinction, has owned and operated Clinton Family Care in Clinton since 2001.

Earlier in his career, he served on the staffs of family practice clinics and hospitals in Starkville, Clinton, Jackson, and in Opelika, Ala. A member of MAFP since 1983, he began service on the Board of Directors in 2014 and has since served as secretary and president-elect.

A Stuttgart, Ark., native, Wheat earned a bachelor’s degree from Arkansas Tech University in Russellville, Ark., and a master’s degree from Mississippi State University. He went on to attend medical school at University of Mississippi Medical Center, where he led the family medicine student group.

Wheat completed a 3-year family medicine residency at Anniston Family Practice – Affiliate University of Alabama, where he served as chief resident.

An active pilot who owns his own airplane, Wheat is active in the Civil Aviation Medical Association, having earned the Senior Aviation Medical Examiner designation from the Federal Aviation Administration.

Wheat belongs to the Central Medical Society and is on the hospital staff of Merit Health, St. Dominic’s and Baptist Medical Center. He is on the affiliate faculty of UMMC, Tulane University Medical Center and William Carey University College of Osteopathic Medicine.

Wheat and his wife, Sherry, have two children, Sarah W. Mann (Logan) and Brett, and one grandson,David Mann.

They live in Clinton and are of the Methodist faith.

Jones food and beverage manager at Reunion Matt Jones, a 16-year veteran of the hospitality industry, has been named Food and Beverage Manager at the new Reunion Golf and Country Club in Madison.

Jones joins Reunion after five years as General Manager with McAlister’s Deli in Hattiesburg, where he wore many hats, from Jones Human Resources, budgeting, marketing and corporate management. Matt will be responsible for all food and beverage operations at Reunion’s new fine dining and casual dining restaurants.

William Carey’s Turner appointed to COCA Dr. James Turner, dean of William Carey University’s College of Osteopathic Medicine (COM), has been appointed to the Commission on Osteopathic College Accreditation (COCA).

Turner and the other commissioners will review site visits, as well as mid-cycle and annual Turner reports submitted by COMs in the United States with the goal of ensuring that each is meeting COCA standards.

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Mad Genius adds & promotes creative talent

Easterling joins Owl Drug Store at Hattiesburg Clinic

Ridgeland-based advertising and creative production firm Mad Genius has added creative and technical talent to the labs. Sarah Tewolde, a Mississippi State University graduate, has joined the company as graphic designer; Mississippi College grad Clayton Thigpen has joined the team as web developer; and, Bill Rinehart, a 20-year veteran in the film industry, has become studio manager in the video production department. Additionally, Ethan Head was promoted within and named Interactive Art Director.

“We’re excited to add Sarah, Clayton, and Bill to the team,” says Chip Sarver, Mad Genius President and COO. “They each bring with them unique experiences and fresh perspectives that will enable Mad Genius to continue to serve the creative and technical needs of our clients.”

Rob Bridges, Chief Creative Officer, adds: “We’re also excited to have Ethan take more of a leadership role as Interactive Art Director on our web development team, leveraging his strong creative vision on future web projects.”

Mike Easterling, RPh, recently joined Owl Drug Store at Hattiesburg Clinic as a staff pharmacist.

Easterling has more than 33 years of experience as a pharmacist. He received his Bachelor of Science in Pharmacy from Samford University in Birmingham, Ala. He has an APhA Easterling immunization certification and is a member of the Mississippi Pharmacists Association.

Founded in 1907, Owl Drug Store is a neighborhood pharmacy and gift shop at Hattiesburg Clinic’s main campus.

The Sunray Companies welcomes Mistal Jayme Mistal recently joined The Sunray Companies in Madison as Director of Accounting & Finance. Mistal graduated from Mississippi College with his BSBA in accounting and earned his Certified Public Accountant license in 2014. He has worked in public accounting with specialMistal ization in auditing for the past eight years. Mistal is a member of AICPA and Mississippi Society of CPAs. The Sunray Companies is an operator of best-inclass brands including Massage Envy, Palm Beach Tan, Hampton Inn & Suites and Holiday Inn Express & Suites. The Madison-based company employs over 700 team members in Mississippi and Louisiana.

Hall Carter joins Mississippi Kidney Foundation The Mississippi Kidney Foundation recently announced that Hall Carter has been named its new executive director. Carter is joining a new associate director, Walton Fenelon from Jackson. Gail Sweat, who served as executive director the foundation for the past two decades, recently retired.

Carter, a Memphis, Tenn., native, has held integral positions for several U.S. senators, most recently serving as Sen. Roger Wicker’s executive assistant and scheduler. She has also worked for Sens. Bob Bennett (Utah) and Lamar Alexander (Tennessee).

Her previous non-profit experience includes serving on the board of the Taste of the South held in Washington D.C. Carter attended Sewanee: The University of the South, graduating Cum Laude with a Bachelor of Arts in U.S. History.

Alford honored as MAFP’s Family Physician of the Year Tim Alford, MD, of Kosciusko, was recently honored as Mississippi’s Family Physician of the Year 2018 by the Mississippi Academy of Family Physicians.

The John B. Howell, MD, Memorial Award, as it is formally known, was first given in 1977 in memory of Dr. Howell, a pioneer in the practice of family medicine and long-time delegate to the American Academy of Family Physicians. Alford was MAFP president in 2001-02, Foundation president for 5 years, and on the national level, representing Mississippi on the AAFP Congress of Delegates for the past 16 years. He was even selected as the AAFP’s official torch bearer for the 2010 Vancouver Olympics.

A native of Greenwood, he graduated from Greenwood High School, earned a bachelor’s degree from Millsaps College and went on to complete medical school at the University of Mississippi Medical Center in Jackson in 1983. Hecompleted his family medicine residency in Columbus, Ga., where he was chief resident, before returning to Mississippi to practice medicine.

Alford practiced as a family physician with Premier Medical Management at Kosciusko Medical Clinic for almost 30 years before opening Kosy Direct Care, where he worked for two years. He presently works at Kosciusko’s Baptist Medical Center.

He is founding and current chairman of Kosciusko Foundation for Excellence in Education. He served on the Kosciusko City School Board for 10 years, and is a former PTA president.

Alford is the founding organizer of Kosciusko-Attala Habitat for Humanity and the former baseball commissioner for Kosciusko Parks and Recreation.

Alford and his wife, Mary Al, live in Kosciusko. Their three children are Timothy Alford (Mary Bruce), Leah Mabry Hendrix (Tal), and John Paul Alford (Jana). Their grandchildren include Gray, Virginia and Stella Alford; Cobb, Ann Mabry, Mary Tait and Walt Hendrix; and Sawyer and Mobley Alford.

AN MBJ FOCUS: ECONOMIC DEVELOPME

GRAMMY Museum Mississipp attracted 80,000 visitors sinc

By BECKY GILLETTE mbj@msbusiness.com

T

he GRAMMY Museum Mississippi, which opened in March 2016, has been a game changer not just for Cleveland, but the entire Delta music tourism scene. Asked if this has been as big a deal as anticipated, Cleveland Mayor Billy Novell answers unequivocally, “Absolutely! It has been better than anticipated. The Grammy Museum Mississippi is the most technologically advanced museum in the South.”

Nowell said the museum has provided educational programming and experiences to school children, not only in Cleveland and Bolivar County, but throughout the state. Since opening, more than 15,000 children have visited the museum, which has held more than 50 educational workshops for students.

“Part of the mission of the museum is to use music as gateway to learning and to provide enrichment opportunities for students, which it is doing,” Nowell

said. “The museum has also hosted many public events with artists such as Mary Wilson of the Supremes, Peter Frampton, Mac McAnally, Bobby Rush, William Bell, Travis Green, Jimmie Vaughan, Marty Stuart and Connie Smith, Maren Morris, Liz Rose and many others.”

Nowell said there have been six Havens traveling exhibits (The Beatles, The Supremes, Taylor Swift, Stevie Ray Vaughan, John Lee Hooker and Michael Jackson) so far that provide a unique and indepth insight into artists.

The museum has firmly placed Cleveland on the music tourism map. There have been 80,000 visitors from every state and 37 foreign countries. And it has spurred more economic development.

“There are two new hotels being built in Cleveland, The Cotton House Hotel downtown and [the Scion West] on Highway 8 West,” Nowell said. “It is my understanding that both are scheduled to open in 2019.

There are three new restaurants that I am aware of that are being built/renovated and will be opening soon in Cleveland.”

Visitors are staying in local hotels and eating in local restaurants, said Grammy Museum Executive Director Emily Havens.

“We are very excited for the additional hotels to accommodate even more visitors to our area,” Havens said. “We continue to have many special events at the museum including corporate events, conferences, receptions, birthday parties, retirement parties, class reunions, weddings and many more. We have also had over 60 public programs, and education workshops including songwriting, instrument lessons, music production, drumming, and many others.”

Havens said they are very excited to be a part of the museum tourism map in the state and offer a visitor experience that celebrates Mississippi’s musical heritage and legacy along with offering so many programs to visitors of all ages.

“We have a Blues Trail marker at the museum that

September 7, 2018 • MISSISSIPPI BUSINESS JOURNAL • www.msbusiness.com

ENT

pi has ce opening

certainly attracts visitors that travel along the Blues Trail,” Havens said. “The marker is such a wonderful addition to our museum lawn and definitely a photo opportunity for so many blues fans from around the world.”

Havens said they also love to partner with all of the museums around the state, especially the music museums. “This state has such a deep musical history and it is such an honor to share it with the world at the museum and then pass the visitors along to all of other museums in our region,” she said.

Havens said the museum is fulfilling its mission to provide unique learning opportunities based on the enduring legacies of all forms of music, the entire creative and technological processes of recording and the history of the GRAMMY Awards® with a focus on the continuing achievements of Mississippians. She said the cutting-edge exhibits, interactive experiences and films provide a one-of-a-kind visitor experience—engaging, educational, celebratory and inspirational.

Judson Thigpen, executive director, Cleveland-Boli-

var County Chamber of Commerce, has been pleased to see the popularity of the museum grow.

“We’re starting to see more tour groups--bus groups-coming through,” Thigpen said. “They have done a great job with the educational component. There have been a large number of kids who have come through their programs and exhibits, and have had the experience of learning about the history of music in the Delta.

There are number of museums and music-related places around in the Delta and this is an addition to that. The more places we have like this, the more attractive it is to visit the Delta more than a day. You can stay here and spend the night. As far as that is concerned, I think that is helping the region. The more attractions we have, the more we attract people for more than a day trip who come spend the night and eat at local restaurants.”

Thigpen said the museum has put Cleveland firmly on the music tourism map.

“We are right here in the middle of the history of the music,” he said. “I think it has given us more appeal.”

A hotel study was done about three years ago that

showed Cleveland needed more hotel rooms in even before the museum was built. The two new hotels under construction will add 190 to 200 rooms, which will give the museum the opportunity to take on more of the larger tour groups.

The GRAMMY Museum Mississippi is notably the first GRAMMY Museum to be built outside of Los Angeles, Calif. Built and operated by the non-profit Cleveland Music Foundation, the 27,000-square-foot GRAMMY Museum Mississippi is housed on the campus of Delta State University, which is also home of the Delta Music Institute — Mississippi’s sole accredited music industry studies program.

Admission is $12 for adults, $6 for children age 6-18 and free for 5 and under.

Students are $5 and education workshops are $3.

Adult groups of 10+ are $10 each.

Seniors and military are $10. Senior groups of 10+ are $8 each Visit www.grammymuseumms.org for more information.

12 Q Mississippi Business Journal Q September 7, 2018

Economic Development

Chasing smokestacks, fostering a creative economy – can Mississippi do both?

By TED CARTER mbj@msbusiness.com

Mississippi’s government leaders and economic development officials started this decade devoted to making innovation-based, or new economy, startup companies a bigger part of the state’s economic engine.

How much they’ve actually contributed as the 21st century nears its close depends on who is doing the talking.

The assessment of Mississippi Development Authority’s executive director Glenn McMcCullough Cullough Jr.: He and other state officials are helping to put the parts in place for a Magnolia State creative economy that can drive itself forward.

“There has been significant progress in the development of an entrepreneurship and Rayburn innovative ecosystem,” McCullough said in an email.

Malcolm White, however, thinks the MDA and other state officials have mostly been missing in action in recent years.

The current head of the Mississippi Arts Commission and former chief of the MDA’s defunct creative economy bureau says he doesn’t know what sort of helping hand the state will be giving the innovation-and-knowledge sector at decade’s end. But the help it is giving today falls short, says White, who created the creative economy bureau during a two-year stint as the state’s tourism director, a post within the MDA. White said the embrace state leaders once gave the idea of an innovation sector was real enough. But they’ve since stuck to putting their bets on the big, headline-grabbing manufacturing plants at the exclusion of new economy startups and the cumulative and sometimes viral job growth they offer, White said.

White traces the waning of enthusiasm to the 2015 departure of Brent Christensen as executive director of the MDA. Christensen’s tenure lasted only three years but during that period he put state support behind growing a creative economy sector, said White, who started the decade in the same post he now holds.

As head of the Arts Commission in

2011, White joined with the MDA to produce a blueprint for fostering a knowledge-based economic sector. He took that body of work with him, he said, when he joined the MDA as director of tourism in 2013.

“Brent Christensen was very interested in that work and felt like it would be a good fit for the MDA,” White said.

Soon after, much of the work the Arts Commission was doing on the innovation economy shifted to the MDA, where the creative economy bureau was established within the tourism department, according to White.

Soon after Christensen’s 2015 departure for a North Carolina job and the arrival of McCullough, White returned to head the Arts Commission. The economic development agency soon scrapped the creative economy bureau. “The MDA did not feel like it was a good fit,” White said.

Today, he said he sees lots of private investors and private sector enterprises fostering innovative startups across Mississippi, but “I don’t see any government effort” to help out.

“I think that is where we have failed to take the next step,” White added. “We will drop many millions to rescue manufacturing. But they have yet to get to a place where they will incentivize creative communities.”

Oxford’s Bill Rayburn, a former Ole Miss finance professor and one of the state’s most successful startup entrepreneurs, says Mississippi’s focus on creating manufacturing jobs “is good but shortsighted.”

Such jobs go away over time, become automated or leave to go to low-cost labor areas, said Rayburn.

Innovation jobs, on the other hand, create other jobs, added Rayburn, who started tech firm Mortgage Trade after the $475 million sale in 2016 of FNC, a mortgage technology company he co-founded.

“The state needs to focus on creating innovation jobs,” he added , but emphasized he noted he is not “excited” about the prospect of the state engineering tax policy to make that happen.

White, meanwhile, said more support in the way of incentives from state economic development policy makers could help to create organic growth beyond the approximately 3.5 percent portion of the Mississippi economy knowledge-based businesses now occupy. He put the number of jobs in the innovation sector See BOTH, Page 15

MISSISSIPPI ANGEL FUND COULD BECOME GO-TO-PLACE FOR STARTUPS

By TED CARTER mbj@msbusiness.com Innovate Mississippi expects to boost investments in promising Mississippi startups through a regional angel-fund setup it says can make deals easier and more plentiful.

Organizers of the Mississippi Angel Fund say they will invite the State of Mississippi to support the funds through tax credits or perhaps even through buying shares that would entitle it to financial rewards when the startups are acquired or go public.

The funds will total $500,000 to $1.5 million with investment over roughly a threeyear period.

They are seen as adding to the Mississippi Angel Network, a group that relies on investors and founders of startup companies. That arrangement has led to unfulfilled potential, says Tony Jeff, executive director of Innovate Mississippi, a Jackson-based “virtual incubator” that serves as a matchmaker for mentors, investors and startups.

Jeff “Because of our staff limitations, the angel network has not been growing as much as it could be,” Jeff said. “With the economy growing, people are looking for more opportunities.”

In Innovate 2018 Innovation Report, Jeff said the fund approach is expected to increase the number of startup investments annually from the six to eight typically made within the network. The funds, he said, aren’t just trying to pick one winner.

“This allows them an easy way to do two a year for a few years,” he said.

Innovate Mississippi has helped startups raise about $46 million since its creation 19 years ago, according to Jeff. “Those companies have gone on to raise $173 million.”

Most of the startups with which Innovate Mississippi worked got their liftoffs with about $300,000 each in angel investments.

The current angel network is essentially a list of individuals and groups that share an interest in funding promising knowledge-based startups. “The problem with the angel network,” Jeff said, “is that it relies on an investor to make sure the deal closes.”

With the angel fund, individuals and groups pool investments to back startups in their regions. “Unlike a network, they are committing capital to a fund,” he said, giving, as an example, investors from Louisville to Starkville joining to back promising enterprises in their region.

As each deal comes along, fund members vote whether to back it. “The fund may invest $1 million but individuals will invest alongside of it,” Jeff said.

Creation of angel funds has been successful in states such as Louisiana and Arkansas, according to Jeff, who is borrowing the strongest elements of each state’s approach in setting up the Mississippi funds.

The fund creators here will eventually ask the State of Mississippi to take part in some fashion. An angel investor tax credit is among the most popular features, Jeff said, and explained that an investor in a Mississippi angel fund would get tax credits akin to those private developers receive when restoring historic buildings in Mississippi.

Arkansas and Louisiana have this, and it’s helped to create new investment and give investors higher returns, Jeff said.

Louisiana is the easiest example, Jeff said. Say a company is going to raise $300,000. Louisiana certifies the investors ahead of time. The credits can be sold and traded outside Louisiana.

In Arkansas and Tennessee, according to Jeff, the angel funds can get matching allocations from the states based on the likelihood of the fund making a return for the states. Jeff said he is not inclined to seek a similar arrangement in Mississippi.

“I do think it is a bad idea for the state to try to fund venture capital with public money,” he said, but added he does see the effectiveness of the practice in raising money to get startups going. Tennessee’s public-private fund, he said, stands at about $120 million.

See ANGEL FUND, Page 15

Economic Development

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Mississippi, Japan have strong foundation

By CALLIE DANIELS BRYANT mbj@msbusiness.com

United States municipal and state officials are reaching out to Japan for economic opportunities and increased employment for the nation’s rural areas.

Japan is the second largest foreign direct investor (FDI) in the United States, and the value of this country’s investments has grown to an estimate of $13 billion this year. Japan has created over 860,000 jobs in the United States, mainly in manufacturing.

In Mississippi, Japan is the number one foreign direct investment partner that has employed McCullough approximately 14,000 workers throughout the state through investments in Nissan Canton, Toyota Mississippi in Blue Springs, Yokohama in West Point, and numerous Tier I and Tier II automotive suppliers.

Outside of the advanced manufacturing, Japan’s FDI include sports good manufacturer ASICS in Byhalia, frozen food manufacturer Ajinomoto Windsor in Oakland, and Calbee Foods, Japan’s largest snack company, is located in Senatobia.

Nissan has invested more than $3 billion in its Canton operations and currently employs 6,400. Nissan has announced a $170 million investment in two of its facilities which includes its Canton location for upgrades so they can manufacture the 2019 Nissan Altima.

“The significant investments generated for the state by these companies and the thousands of direct and indirect careers created as a result reap significant benefits for the communities in which they are located, as well as the state’s economy as a whole,” said Glenn McCullough, the executive director of Mississippi Development Authority.

He added that Nissan and Toyota “are shining examples to potential investors of industry leading companies achieving their goals in Mississippi.”

McCullough was recently in Tokyo for a seminar: “Doing Business in Mississippi,” in partnership with Japan External Trade Organization (JETRO).

He said that Kiyoshi Tsuchiya with the Japanese company Auto Parts Manufacturing in Lee County gave a presentation, and Japanese executives asked questions pertaining to doing business within the state which gave him and MDA opportunities to pitch Mississippi to them.

McCullough began advocating Mississippi to Japan since 2001 when he began serving as chairman of the Tennessee Valley Authority. He has visited Japan

“The significant investments generated for the state by these companies and the thousands of direct and indirect careers created as a result reap significant benefits for the communities in which they are located, as well as the state’s economy as a whole.”

Glenn McCullough Executive director of Mississippi Development Authority

more than a dozen times since. During his time with MDA has participated in four business development missions to Japan.

“MDA works with our partners in towns and communities,” he said, “in all 82 counties to support building capacity through site certification, which includes site development and infrastructure, as well as workforce training to best meet needs of companies looking to locate or expand in Mississippi. We also promote all areas of the state through business development missions to Japan to encourage

new investment and new career opportunities for Mississippians.”

McCullough said that Mississippi is thriving in the global economy, and that the continued investment by industry-leading Japanese companies in their Mississippi operations will help the state attract new investments by sharing their Mississippi success stories.

U.S. Ambassador to Japan Bill Hagerty has hosted Japanese CEOs along with Gov. Phil Bryant. The U.S. Embassy has reportedly fielded requests from small

to mid-size Japanese companies that are interested in potential FDI within the nation, especially in rural areas, and has expanded in its role by arranging appointments for U.S. visitors representing these areas to Japan.

Bryant and the MDA team have maintained “strong relationships” with existing Japanese business partners like Nissan and Toyota.

“We meet with them and other companies headquartered in Japan to discuss their goals and how we can assist those companies in achieving those goals in Mississippi,” McCullough said.

McCullough believes that Mississippi being a right-to-work state is a boon to the Japanese companies’ goals.

“Mississippians are loyal employees who take pride in a job well done,” he said. “We understand when companies are successful in our state, we all win and share in that success. Companies achieving their goals in Mississippi spur economic growth and improve the quality of life in their communities. MDA is committed to working with our business partners to support them in their endeavors to reach their goals and achieve long-term success in Mississippi.”

He continued: “Mississippi and Japan have a strong foundation built upon trust, friendship, mutual respect and mutual prosperity. Our relationship with Japan fosters mutual benefits including new investment and careers, for the people of both regions.”

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14 Q Mississippi Business Journal Q September 7, 2018

Economic Development

LAW ELEVATED

Recent tax changes to encourage development & new investment

R

ecent enactments of both the U.S. Congress and Mississippi Legislature have modified tax laws to encourage development and new investment.

Reducing Fee-in-Lieu to $60 Million Enhances Economic Development Recruitment Tools, Mississippi has traditionally offered incentives for economic development, recognizing that new and expanding industries bring jobs and increased tax revenues, but that Mississippi must compete for them with many other states.

Our Legislature created property tax exemptions as early as 1882. With the Balance Agriculture with Industry (BAWI) program in the 1936, Mississippi became a national leader in using public bond financing to construct facilities to recruit industry. BAWI was used to recruit Ingalls Shipbuilding, One of the state’s most significant industries. Over the years, incentive programs have been expanded and modernized to give the Mississippi Development Authority, counties, cities and economic developers the tools they need to compete. One such addition was the creation in 1989 of a fee-in-lieu property tax abatement, Miss. Code Ann. Section 27-31104.

The fee-in-lieu abatement was initially limited to projects over $100 million – a truly major project back in 1989 – but provided important benefits. It allowed counties and cities to offer a more generous tax incentive as needed to com-

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pete, abating up to two-thirds of annual property taxes for 10 years. Recognizing that the remaining new tax revenue from a project that large would still provide a significant local revenue increase, the fee-in-lieu allowed counties, cities (if within city limits) and schools to share proportionately.

It also provided greater flexibility in structuring the incentive and greater local discretion in spending the revenue. Some counties have used this new revenue to fund special projects, some to reduce tax rates or avoid an increase, some to strengthen a tight budget and some to acquire land and fund infrastructure needed to recruit new industry. Over the years, the fee-in-lieu statute has been amended to make it even more useful. For example, amendments have confirmed that developers can make a legally binding fee-inlieu commitment to secure a site selection decision, an advantage not available with some other incentives which require governmental approval after project construction. Also, while the Mississippi Constitution limits a tax incentive on any particular item of property to 10 years, over time the permitted term of the fee-in-lieu agreement was extended to 20 years, allowing the initial agreement to also encourage expansions.

The fee-in-lieu has been very successful, becoming the property tax incentive of choice for larger projects. Recently, some economic developers faced with stiff competition from neighboring states with lower tax rates or more gen-

erous incentives desired to use this important tool for smaller, but still significant projects. In the 2018 regular session, our Legislature amended the statute again, lowering the qualification threshold from $100 million to $60 million – still Alveno Castilla a very significant project – and raising the term of the agreement from 20 to 30 years.

Lowering the fee-in-lieu threshold to $60 million will allow economic developers to use it as a recruitment tool for significantly more projects. And given Wilson Montjoy its attractive features, the fee-in-lieu should be considered by any industry contemplating a new facility or expansion in Mississippi.

An Update on the Opportunity Zone Incentive Program In the Feb. 22, 2018 Gray Swoope edition of the Mississippi Business Journal, we provided an overview with technical details of the new Qualified Opportunity Zone (“O-Zone”) program established under the federal 2017 Tax Cuts and Jobs Act (the “Act”). This program allows for creation of Qualified OpportuniAshley Wicks ty Funds (“O-Funds”) to serve as the investment vehicles to facilitate potentially significant federal income tax incentives that reward investments into designated low-income communities (“LICs”) through the deferral of gain recognition by taxpayers making such investments. We are now eight months into the O-Zone program and it’s a good time for an update.

We previously noted that the O-Zone program has the potential to unlock huge amounts of unrealized marketplace gains (a pool estimated to be as much as $6.1 trillion) for the benefit of certain LICs, but it was an open question as to whether the program, with its current parameters, would take hold and push significant investment into LICs. The initial answer appears to be “yes.” There has been tremendous interest in and positive reaction about the O-Zone program from just about every affected quarter—e.g., state and local governments, economic development agencies and professionals, real estate and other project developers, and, of course, potential O-Fund investors who stand to reap the tax benefits. O-Funds are being established and funded and a lot of creative thought is being given to how they can be used.

One of the most attractive aspects of the O-Zone program is its flexibility. For exam-

the fund; there is no advance IRS certification requirement; (b) an O-Fund can be formed using a structure of virtual single ownership (a de minimis partnership interest can be added); (c) O-Funds can be set up for a single project or multiple projects may be under one fund; (d) there is no limit on the amount one may invest in an O-Fund; (e) there is no aggregate ceiling on the investments that can be made by the O-Fund itself; (f ) O-Fund investments can be combined with other federal tax incentives such as low income housing tax credits, historic tax credits, new markets tax credits, and the “qualified small business stock” provisions; and (g) except for the “sin” business prohibition that applies in some cases, there appear to be almost no limitations on the types of active business projects in which an O-Fund can invest.

However, as implementation of the O-Zone program progresses, a number of questions have arisen that require clarification sooner than later in order for the program to maximize its utilization. Potential O-Fund investors understandably want as much certainty as possible on the front end. Here are some of the key questions/areas that are not clearly or specifically addressed by the Act: 1. Are ordinary (not just capital) gains eligible for deferral?

2. For partnership level gains, is the taxpayer eligible for the gain deferral the partnership entity or the partners?

3. The threshold for determining if the “substantially all” test is met so that the project’s tangible property will be treated as qualified opportunity zone business property (“QOZBP”)?

4. The meaning of “original use” of tangible property in an O-Zone.

5. The circumstances under which an established LIC business can be treated as a qualified O-Zone business? There is a significant challenge here for developers who already own property in O-Zones.

6. Can temporary cash reserves held by an O-Fund pending injection into a project be treated as QOZBP? 7. Do residential (including rental) projects qualify as good qualified opportunity zone businesses?

Discussions with Treasury Department and IRS officials as well as key legislators indicate that guidance on these kinds of questions should be issued within the next 60 days, and certainly before year-end. In the meantime, in the absence of further guidance, where time is of the essence due to the 180 day reinvestment window, potential investors, developers, O-Fund organizers and tax advisers will have to use their best judgment based on their reading of the Act and its legislative history, policy considerations, and analogous tax law provisions to move forward with O-Fund formations and transactions.

Butler Snow attorneys R. Wilson Montjoy II, Alveno N. Castilla and Ashley Wicks, and VisionFirst Advisors President and CEO Gray Swoope co-authored this column.

VisionFirst is a Butler Snow subsidiary

Economic Development BOTH Continued from, Page 12

at about 65,000, a figure he says could grow significantly with the right kind of support.

“It has never been encouraged or lifted up by state government,” White argued.

McCullough thinks otherwise. “We have a strong focus on tech development, which involves our four research universities, military labs and other government agencies such as the Delta Regional Authority and the Appalachian Regional Commission,” the MDA chief said in his email.

“We also work closely with small business development centers and the innovative community as a whole.”

McCullough further noted the MDA’s work on the creative economy has included a significant investment of time and effort in Mississippi’s educational system. The MDA, he said, has assisted “our community colleges in developing an associate’s degree focused on entrepreneurship. Additionally, we have developed enterprise-based coding academies in conjunction with the Community College Board and Innovate Mississippi.”

What’s more, the MDA is working with the Community College Board to complete the curriculum for an associate’s degree in computer coding, McCullough said.

September 7, 2018

Back at his former post with the Arts Commission, a state agency with an annual budget of about $3 million, White says he has not let up in pursuing progress for a creative economy sector. He said he is leading the Arts Commission into “creative asset mapping” to assist innovative startups in engaging a community’s creative assets and cultural resources. This is achieved through working with conventional economic developers and private investors, he said.

“But,” White added, “a little bit of incentive will go a long way.”

The innovation economy had a period in the spotlight when Gov. Phil Bryant

Q

Mississippi Business Journal

Continued from, Page 12

2018 FORUM ON AMERICAN ENTERPRISE

Featured speaker (left): Raphael Bostic, PhD, President/CEO Federal Reserve Bank of Atlanta Hall of Fame Inductee (right): Paul Grimes, PhD Dean, College of Business, Pittsburg State University Past Director, MS State University Center for Economic Education

Purchase tickets at http://bit.ly/2018ForumSponsor

Blue Chip Sponsor

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New Yorker Sponsors BancorpSouth Citizens National Bank College Savings MS CSpire Millsaps College MS Board of Nursing MS State University - Extension Nissan North America Trustmark National Bank University of MS University of Southern MS

15

declared 2014 “the year of the creative economy.” That year also included a huge turnout for an MDA-sponsored daylong seminar on the creative economy at the Jackson Convention Complex. “We were full steam ahead at that point,” White recalls.

“At some point we are going to get leadership that says if this works on Toyota and Nissan, let’s try it on creative enterprises.”

There can be an alternative to chasing smokestacks, he said, and added: “This is not your father’s economic development.”

ANGEL FUND Arkansas at one point set up a $20 million fund in a bid to get venture capital firms to move to the state, Jeff said.

Any change in Mississippi’s tax policy or financial incentives would have to be decided by the governor and legislators. But Glenn McCullough Jr., executive director of the Mississippi Development Authority, says he is encouraged by the privately backed fund initiative.

“The creation of additional angel fund networks would contribute to continued entrepreneurial and innovative development,” McCullough said in an email.

One of Mississippi’s most successful startups is Oxford’s FNC, a mortgage technology company created in the 1990s that sold to CoreLogic in early 2016 for $475 million. Forty-five people each took more than $1 million out of the deal, according to Jeff.

“When they see that kind of return, they say, ‘Where is the next one’?”

The success of FNC, Jeff said, “has made a big difference” in Mississippi’s overall angel investing ecosystem.

“The problem in this state is that if you have 80 investments, you are going to make all of your money from one or two,” Jeff conceded. “It’s just a risky space.”

Bill Rayburn, a founding partner in FNC and now CEO and chairman of Mortgage Trade in Oxford, says he thinks some “positive exits” that generate attractive returns will help to cement a place for the funds.

“We need to concentrate our angel funds on research areas promulgated by our research universities,” he said in an email.

The problem with universities is that “they are collectively bad at what is known as ‘development,’ or taking an idea conceived inside academia and turning it first into a product and then into a company,” said Rayburn, a finance and business professor at the University of Mississippi for 12 years.

Most universities want to get an idea, get it patented, then license the intellectual property to another company and call it “development,” Rayburn said.

“That means jobs and innovation benefits from creating products and entire companies go to other areas and, frankly, that is terrible. We should see those jobs and innovation benefits stay in Mississippi.”

Fertile areas for development, Rayburn said, are polymer science, pharmacy and applied sciences, “to name a few.”

Added Rayburn, “We need to concentrate our angel funds in specific areas of expertise to increase success rates.”

Q

16 Q Mississippi Business Journal Q September 7, 2018

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18 Q Mississippi Business Journal Q Septbember 7, 2018 MBJ BUSINESS SHOWCASE

A strong dash of optimism

O

ne can certainly find many opinions about the future of Jackson, and many of these are not exactly what we might think of a “sanguine.” However, there are others who are actually positive about some of the things going on in Jackson and Mississippi as a whole. One of those is newly appointed Regions bank executive Robert Leard, who has recently assumed the leadership role for Regions operations in the metro Jackson area.

In a recent conversation, Robert told me he is optimistic about some of the developments he sees in Jackson at present.

“We’re seeing some exciting trends in Jackson these days,” he said, pointing to the new retail and commercial development that have been ongoing in the city over the past few years.

I asked him if he agreed with many government and business leaders who have told me through the years that “as Jackson goes, so goes Mississippi”.

“I do agree,” he said. “It’s in the best interests of all Mississippians that we have a healthy and vibrant state capital, and that means that we all need to be supportive and get involved to the best of our ability.”

Robert Leard

To that end, he is active in community affairs and support, and feels positive that he is working to make a difference.

While recently promoted to head Jackson operations, he has worked with Regions for most of his career. Born in Hattiesburg, he grew up in Natchez, graduated from the University of Southern Mississippi, and then worked for

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Trustmark for 7 years before moving over to AmSouth Bank in 1995 and then on to Regions.

I asked him how he felt about Mississippi’s economy in general.

“I think we have a healthy and growing economy in Mississippi,” he said. “There are a lot of great opportunities for business in our state, and we do have a strong pro-business environment here.”

And what does he see as the major challenges we face?

“From my perspective, one of the most important areas we need to address is workforce readiness…..this is a continuing challenge of building a quality workforce to meet the needs of today’s businesses,” he said.

He sees a number of encouraging signs in that regard, with some of the various workplace readiness programs and initiatives going on in Mississippi.

“I think we can continue to build a strong technology sector,” he said. “Obviously, this requires that we develop a work force that is ready for those kinds of high paying jobs.”

Robert is also optimistic about manufacturing in Mississippi. He feels that the onshoring movement that is gaining some steam at present can well benefit Mississippi, as we can offer a labor force “with a strong work ethic.” He points to Nissan and Toyota as great examples of how that synergy works for all.

And how about banking? I asked him if he felt the regulatory environment for banks and financial institutions has improved.

Alan Turner “I think it is definitely improving,” he said. “That is very important for the health of regional banks in general.”

I also asked him about the prognosis for further interest rate increases this year.

“Based on what I’m seeing, I think the probability for at least one increase is probably about 90 precent,” he said.

“Of course, that also would point to an economy that is growing stronger, so it’s not all bad.”

Regions is the largest bank in Mississippi. I asked Robert how the bank plans to grow in the coming year.

“We’re more focused on organic growth at present,” he said. “Our goal and mission is always to build and maintain great relationships with our customers and the communities we serve, and to be as strong a bank as we can be.”

He told me he feels Regions is well positioned to weather any potential economic downturns or bumps in the road.

I asked him if he felt the so-called tariff wars presented any risk for business in Mississippi.

“We’re keeping a close eye on that whole situation, and carefully monitoring the potential risks. I think we’ll know more in the coming months,” he said.

Robert is excited with his new role at Regions, and said he is “really looking forward to leading our teams in the Jackson metro area.”

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

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Construction industry’s stategic partnership The Associated General Contractors of Mississippi (AGC) and the American Subcontractors Association of Mississippi (ASA) has announced a strategic partnership to advance the construction industry in Mississippi. Although both associations retain their individual identity, a dual membership opportunity will be open that will provide a discounted dues schedule to contractors wanting to join and engage in both associations. This alliance will provide more educational & training opportunities, ASA enrollment in CompTrustAGC workers compensation program and the AGC ASA 401k Multi Employer Plan. AGC & ASA will participate in many networking events as well as the successful AGC ASA 401k Skeet & Trap Shoot.

That November 7, 2018 event will benefit the AGC ASA Leadership in Construction Scholarship at the University of Southern Mississippi (USM).

On August 28,, Brad Fountain, Fountain Construction, President of AGC MS and Bryan Tompkins, Bomac Electric, President of ASA formally announced the alliance (Left to Right Front) is Tompkins and Fountain.

The Associated General Contractors of Mississippi (AGC MS) and the American Subcontractors Association represent the voice of the Construction Industry in Mississippi. With over 30,000 members nationwide, and over 400 here in this state, we bring over 100 years of industry voice to the community to ensure that the construction industry is a viable force of the U.S. economy. Construction growth continues to be one of the strongest sectors of employment in the state of Mississippi.

— MBJ Staff & Wire Reports

September 7, 2018

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THE SPIN CYCLE

Newsrooms tap readers to help with newsgathering costs

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ewsrooms across America are turning to readers to help with newsgathering costs.

BuzzFeed News is the latest newsroom to ask its readers to help with costs, according The Wall Street Journal.

The digital media and marketing company plans to announce a new feature at the bottom of its news pages allowing readers to donate between $5 and $100. It asks readers to “help us report to you” and calls upon them to join a community that will shape the future of BuzzFeed News.

As part of the news arrangement, contributors will get updates on big investigations and new programming from BuzzFeed News, according to the Journal. If the new model works, it could be a prelude to a membership program with more perks.

BuzzFeed has tested other financing initiatives in recent months, including the automated or “programmatic” ads, production deals with companies including Netflix Inc. and Twitter and licensing of brands like its Tasty food subsidiary Executives at BuzzFeed news decided to launch the donation feature after observing other news organizations that have appealed to readers for support. The Guardian, a UK-based newspaper, raised $130 million from reader revenues from April 2016 to March 2017. BuzzFeed was also informed by research from the Google News Initiative that showed a portion of the company’s readers were likely to support its journalism, according to the Journal.

The decision to launch a donate button on BuzzFeed News comes as the digital media company, founded in 2006, seeks to boost revenue growth.

As tech giants such as Alphabet Inc’s Google, Facebook and Amazon take a growing share of digital ad money, news outlets are increasingly leaning on reader revenue to fuel growth. For many in the media, this means adding or bolstering subscription paywalls.

Influencer marketing best practices Influencer marketing has become one of the fastest growing channels for marketers and their PR agencies to engage consumers.

Studies have shown that working with influencers on a multi-channel campaign can drive up to 16 times more engagement than paid or owned media, according to PR Week.

Marketers expect more in return as they

bring on more influencers. This dynamic is changing the process of contracting with influencer talent.

In light of recent Federal Trade Commission developments, all involved parties should keep the following principles in mind, according to PR Week: » Pay attention to the form of disclosures.

According to the most recent batch of FTC letters and updated FAQs, certain hashtags, such as #partner, #ambassador, and #thanks [brand] without further context are not sufficient. Hashtags such as #paid, #ad, and #sponsored are likely to be sufficient, as well as organic disclosures that clearly describe the nature of the material connection. » Ensure disclosures are clear and prominent. » Implement a social media policy. » Understand who is signing the agreement.

Increasingly, agreements are not negotiated with individual influencers, but rather with influencer networks on behalf of many influencers. Be aware that networks frequently try to avoid direct responsibility for influencer content. Influencers are the new celebrities, and negotiating these deals may require as much detail as a traditional celebrity talent or production. » Define the influencer content. » Specify exclusivity.

Where content is being produced solely for one marketer, be sure to establish specific guidelines regarding exclusivity. » Approvals and ownership.

Ensure that the marketer has the ability to review and approve influencer content (and request revisions). » Build in legal/regulatory compliance.

Contracts should require influencers to represent and warrant that they will comply with all applicable laws, including the FTC guides, and further that the content they provide will not infringe upon any third party rights, including copyright and rights of publicity.

Hot on the heels of some standout ads starring tennis champ Serena Williams, Nike is featuring Kaepernick, the former San Francisco 49ers quarterback who led player protests during the national anthem, in its anniversary “Just Do It” campaign.

Kaepernick announced his role in a tweet that included a striking black-andwhite close-up of his face with the words: “Believe in something. Even if it means sacrificing everything.”

Kaepernick, who has gone unsigned since March of last year and alleges he has effectively been banished for his outspoken political views, has signed a new multi-year deal with Nike, just months after Nike renewed its partnership with the NFL. Following the announcement, the hashtags #BoycottNike and #JustBurnIt started trending on Twitter and shares started falling. Some angry consumers even posted photos and videos of themselves burning their Nike shoes and other gear to protest the company using the divisive figure in its ad campaign.

The “Just Do It” campaign will also feature athletes such as Williams, NFL wide receiver Odell Beckham Jr., and Shaquem Griffin, a rookie linebacker for the Seattle Seahawks whose left hand was amputated when he was a child.

In backing Kaepernick, whom the company has sponsored since 2011, Nike is making a high-stakes gamble that its customers support his protest, or at least enough of them do. The company is also betting its brand can withstand criticism from conservative corners, including the White House.

Todd Smith

Kaepernick has not played in the NFL since the 2016 season. That year, he began kneeling during the national anthem to raise awareness about police brutality against African-Americans and other racial injustices. Dozens of other players also began joining Kaepernick, and he has grown into a symbol of racial equality in America.

Nike is not afraid to take this political football up the middle, and is making a stand for what it believes. More often than not, brands avoid taking a position out of fear of alienating consumers – and that backlash is beginning to form in certain quarters. This new ad campaign certainly fuels an already exciting start to the football season. It will be interesting to see if Nike’s campaign gets sacked or scores a touchdown.

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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Football Mic | Nike kicks off NFL season with controversial Kaepernick ad campaign Nike is pulling an end around to kickoff the NFL football season – and is not backing away from controversy.

Its latest campaign, celebrating the 30th anniversary of its iconic “Just Do It” tagline, includes polarizing quarterback Colin Kaepernick in the push.

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