INSIDE — Feds withholding Miss. market exchange health insurance rates until Oct. 1
www.msbusiness.com
September 27, 2013 • Vol. 35, No. 39 • $1 • 20 pages
TECHNOLOGY DEVELOPMENT
McPhail makes it happen
C SPIRE’S FAST FIBER
The past five years of economic downturn haven’t been kind to many industries. That cold, hard fact hasn’t stopped Jonathan McPhail from pursuing his dreams.
‘Slow Internet is a thing of the past’
More newsmakers, P 16
Inside {P 2} » Public-private partnership driving today’s retail development The List {P 15} » Employment Agencies Strictly Biz {P 19} » Facebook privacy
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services company’s ultra high-speed Internet access will be marketed as C Spire Fiber to the Home. “We know that unlocking the potential of nextgeneration technology for the communities we serve requires taking optical fiber all the way to their door,” said Meena. “As a brand that’s been pushing the envelope of in-
hile there are still many questions to be answered regarding this week’s announcement from C Spire that it is going to offer home Internet service about 100 times faster than the industry norm, the fact is the Ridgeland-based company keeps pushing the envelope in regard to business and technology. For that, Mississippians should be proud. It is exciting for one of our biggest and most Ross Reily successful companies to be known as forward thinking. “Slow Internet is a thing of the past, C Spire brand product manager Jared Baumann said during the press conference at C Spire’s world headquarters in Ridgeland. Just think, Mississippi is going to go from a state known for one of the lowest percentages of households with internet access to the state with the fastest Internet in the nation. Educational opportunities will be better. Health care opportunities will be better. Municipal services will be better. Business and job growth will be better. The fiber, of which much has already been
See INTERNET, Page 4
See REILY, Page 4
In this photograph released by C Spire Wireless, Jared Baumann, brand product manager at C Spire, demonstrates the speed of ultrahigh Internet access during a news conference Tuesday at C Spire headquarters in Ridgeland.
Internet service to be 100 times faster than industry average BY FRANK BROWN frank.brown@msbusiness.com
FOCUS {P 10} » Rainbow Foods owners say they offer something different from Whole Foods
An initiative by Ridgeland-based C Spire proposes to give homes in Mississippi the opportunity to have internet speeds of up to one gigabit per second — about 100 times the average speed, CEO Hu Meena said Tuesday during a press conference at the C Spire headquarters. The regional telecommunications and technology
MBJ FOCUS: Small Business
Miss. agencies see more professional, clerical type jobs available Page 9
2 I Mississippi Business Journal I September 27, 2013 xxxxx
Public-private partnership driving today's retail development » Rewards that accompany public-private projects can be substantial — but so can the risks By TED CARTER I STAFF WRITER ted.carter@msbusiness.com
Every Mississippi school child knows the state gave birth to the blues and brought the world Elvis. What is far less known is that the concept of public-private partnerships originated in the Magnolia State with former Gov. Hugh White‘s 1936 Balance Agriculture With Industry (BAWI) program. Leading the state into un-chartered territory, White set a goal of developing an industrial sector that matched the state's agricultural base. He’d do it through such financial incentives as public bonding of private projects and tax abatement. White’s government-as-a-partner with industry gave the state its current-day distinction as a player on the global manufacturing scene. In more recent years, though, the partnership concept has brought Mississippi modern “lifestyle” retail centers and big box stores, including Renaissance at Colony Park, a project of Mattiace Properties and H.C. Bailey Companies funded in part by state bonds backed by a percentage of sales taxes collected at the retail center. Ahead of Renaissance at Colony Park, Mattiace Properties principal Andrew Mattiace teamed with Jackson officials to establish a Fondren tax increment financing district to pay for retail redevelopment there. “The Fondren district was difficult, but the City of Jackson was terrific to work with,” says Mattiace, whose company has undertaken public-private partnerships that have carried about $30 million in public-sector bonds. An early success came in the late 1990s when Mattiace persuaded then-Mayor Kane Ditto to back land work that led to construction of the Target plaza in North Jackson. “Mayor Kane Ditto went out on a limb and did that,” Mattiace says. In return, ad valorem taxes collected on the site went from $3,000 a year to “probably $3 million,” he adds. “The bond indebtedness has long since been paid off.” And more recently, public-private partnerships have made Madison “the growth market of all growth markets in the history of Mississippi,” Mattiace says.
Proceed With Caution The rewards that accompany public-private projects can be substantial — but so can the risks, cautioned commercial development executives who gathered at the Jackson Hilton last week for a forum sponsored by the Interna-
tional Council of Shopping Centers and its Mississippi Alliance Program. All players public and private must have air-tight market and cost data and the instincts to know when to walk away, the panelist said. Otherwise you get Prattville’s Exchange at HomePlace instead of Birmingham’s Summit, says Alabama developer Jeffrey Bayer, whose Bayer Properties has developed more than 10 million square feet of retail and office space, with a specialty in regional retail shopping complexes. The circa 1994 Summit lifestyle center marked an early public-private project success for Bayer Properties. The 150-acre, one million square-foot shopping complex came chock full of challenges, including building on the side of a mountain, but market research showed a potential for The Summit's success as a regional shopping destination. Birmingham pitched in $5 million in bond financing from incremental increases in sales tax collections. Revenue from The Summit paid off the bonds within 17 months instead of the scheduled 5-year period, according to Bayer. “We couldn’t have done it without the public contribution,” says Bayer, whose company has since completed nearly $500 million of public-private funded retail projects across the South. The projects typically employ tax increment financing, or TIFs, and sales tax share backs. At the close of the last decade, Central Alabama's Prattville sought to achieve Summit-like success with a $9 million contribution for development of the Exchange at HomePlace, a 700,000-square-foot lifestyle center built near high-end homes on the east side of the community of 34,000 residents. Today, the retail center is only 20 percent occupied and has created “a drastic situation” as Prattville struggles to repay the bonds, says Bayer, who also serves as Alabama/Mississippi state director for the International Council of Shopping Centers. The debt forced Prattville to enact a penny sales tax increase in 2011. The increase brought the city's sale tax total to a whopping 9.5 percent. The lesson, Bayer says, is that all parties must be thorough in the their preparation and market examinations. “You can't just work on intuition. You must make sure you have good data that really supports the project.” Mattiace, a member of the discussion panel, advises that public officials needing to assess a public-private investment should turn to third parties with no stake in the proj-
ect. It often can be another developer, he says, someone who “is not connected emotionally and mentally.... They can analyze and underwrite better than somebody inside the government.” You must look at today's trends, the market history and the trends of the future, Mattiace says of making sound assessments. Bayer's principal advice to public officials: Lose your delusions. “It seems wherever we go, retail development seems to be seen as the panacea to all government's” revenue problems, Bayer says. “Everybody seems eager to bring retail development to their community. You must be very realistic about what you can achieve.” Know this, says Bayer: “It's hard to say 'no' but the worst thing that can happen is that you say 'yes'.” On the other hand, localities that achieve success with one project should not lose the momentum they've created, Mattiace advises. “Don't stop there. Renew that TIF district. Go build a town center.”
What's Working Just as a spruced up home with attractive landscaping draws buyer interest, a shopping complex must be inviting to the eye and offer relaxing, quality amenities, the forum panelists said. “We love curb appeal,” Mattiace says. It's all about decorative hardscape finishes, landscaping and amenity packages, he suggests. “You can build a Taj Mahal but if you use asphalt it just doesn't work.” Parking area irrigation is equally important — and costly to do effectively, according to Mattiace. Panelist Eric Seitz of the Seitz Group has developed shopping complexes from New Mexico to Virginia, including projects in Mississippi. “Just changing a parking lot and putting in intensive curb appeal has brought sales revenue up 40 percent” in some Seitz Group centers, he says. In Mississippi, for instance, a center may generate $250 a square foot. Go to Mount Pleasant, S.C., and you'll find centers that show sales of $500 a square foot, Seitz says. This, he says, is because “you can't see the Lowe's until you drive into the parking lot... Gorgeous live oaks” make it happen. “Run the numbers to see if you can justify a bond issue that will take the center to a higher brand level.” Until around 2008, Jeffrey Bayer's company built on greenfields near interstate interchanges based on a belief suburbanization would continue to put rooftops near the interchanges. That is no longer occurring. “I don't know if we'll see it come back in my lifetime,” Bayer says. Bayer Properties has since refocused and now prefers infill niche development, he says, where it looks for “existing assets or a piece of ground that happens to be available.” What Bayer Properties is doing today, Bayer says, “takes some of the mystery out of what we were doing as an industry 10 to 15 years ago.” He suggest municipal planners look at the core of their See
RETAIL, Page 3
September 27, 2013
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AUTOMOTIVE
German automotive component-maker breaks ground in Delta A German automotive components company has broken ground in the Delta for a new plant. Gov. Phil Bryant and officials from Feuer Powertrain GmbH held an announcement and groundbreaking ceremony in Tunica at the future site of the company’s first U.S. manufacturing operations. The project represents a $140-million corporate investment and will create 300 new jobs, according to the Mississippi Development Authority. Feuer, manufacturer of crankshafts for the automotive and transportation industry, will begin production in Tunica in late 2014. “After an intensive site selection process, we are convinced that our decision to locate our first overseas manufacturing facility in Tunica, Mississippi, is the right move. The professional support of the state of Mississippi and the county of Tunica, as well as the business friendly atmosphere found here, gave us the confidence that this is an ideal place for expanding our global
Fire station could join list of endangered historic buildings MOSS POINT — The Moss Point Central Fire Station could be added to Mississippi Heritage Trust’s endangered list, according to executive director Lolly Barnes. The Sun Herald reports the list is released every two years and contains the top 10 most endangered historic buildings in the state. The next list will be released Nov. 14. “It’s definitely being considered,” Barnes said, though no decision has been made. Mississippi Heritage Trust is a private organization that works with the Mississippi Department of Archives and History and other organizations to preserve historic buildings. MDAH has recently visited the site of the fire station, located across from Moss Point City Hall, to determine whether or not the building should be listed on the state historic registry. “It’s still up in the air,” MDAH deputy state historic preservation officer Ken P’Pool said. “No action has been taken on that at this point.” The Moss Point Board of Aldermen voted in July to demolish the building that officials have called an eyesore as it sits in front of the new city hall. Demolishing old buildings is part of the city’s plan to clean up the city. Earlier this month, the board voted to demolish five abandoned homes to get rid of blighted properties. “I’m not against historic buildings, I’m just against that particular building,” Alderman Wayne Lennep said. — from staff and MBJ wire services
provided assistance in support of the project through the Mississippi Industry Incentive Financing Revolving Fund for site preparation, infrastructure and workforce training. Tunica County provided assistance for the project, as well. Headquartered in Nordhausen, Germany, Feuer Powertrain was formed in
manufacturing footprint,” said Bernd Gulden, CEO of Feuer Powertrain GmbH. “We are very proud to be part of the future of the state’s business community, and we are excited to have the opportunity to make some contributions to the prosperity and growth of the region.” The Mississippi Development Authority
2003. The company’s scope of business includes the machining and processing of ready-for-installation crankshafts. Since Feuer was founded, it has invested more than $250 million in five plants in Nordhausen, where the company employs more than 400 workers. — The Associated Press
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A CHRISTIAN UNIVERSITY
School of Business presents
Tu e s d a y, O c t o b e r 8 , 2 0 1 3 8 : 0 0 a m – 1 : 3 0 p m | L u n c h w i l l b e s e r ve d Mississippi College Clinton Campus 601.925.7749 | mcbusiness@mc.edu http://business.mc.edu/health-care-reform-summit Sponsorships opportunities start at $500 More info:
Individual tickets $100 Hear from national, state and local leaders, including:
Governor Phil Bryant William A. Ray, President & CEO, BankPlus Pepper Crutcher, Partner, Balch & Bingham Thomas W. Prewitt, Jr, M.D., HDI Director, Horne, LLP Marshall Bouldin, M.D., Chief Medical OfÀcer DiaEetes Care *rouS Al StubbleÀeld, President, BaStist LeadershiS *rouS Cheryl Larson, 9ice President, MidZest Business *rouS on Health Presented by a Partnership between the MC School of Business, Southern Farm Bureau® Life Insurance Company, Mississippi Business Group on Health, Capital Area Human Resource Association and the Mississippi Society for Human Resource Management
4 I Mississippi Business Journal I September 27, 2013 OBAMACARE
Feds withholding Miss. market exchange health insurance rates until Oct. 1 By TED CARTER I STAFF WRITER ted.carter@msbusiness.com
Don't expect to solve the mystery that is Mississippi's health care exchange under the federal Affordable Care Act until Oct. 1 — the day open enrollment begins. That's when the Department of Health and Human Services will release premium rates offered to buyers on the exchange. Only two insurers — Humana Health Insurance Co. and Magnolia Health Plan — agreed to offer coverage on the exchange. Residents in counties other than Hinds, Rankin, Madison or DeSoto will have only one insurer from which to choose. People living in the four counties can select coverage from either Humana or Magnolia. Regardless of age, shoppers on the state’s “Federally Facilitated Marketplace” will find health insurance premiums at least 100 percent above rates to which they have become accustomed, Insurance Commissioner Mike Chaney said in an interview last month Chaney approved the rates several weeks ago but they must be kept under wraps until the feds give the go-ahead to release
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novation our entire existence, it’s only natural for us to want to provide the ‘what’s next’ to the customers we serve.” C Spire hopes to have the first city connected by sometime in 2014, said Jared Baumann, brand product manager at C Spire. Baumann would not speculate on the price for the residential service, saying only that it would be extremely competitive. “We already have about 4,000 miles of fiber optic cable throughout the state, and we plan to put down about 1,600 more miles,” said Baumann. C Spire is already offering high-speed, high-bandwidth connections to schools and businesses and is now ready to bring it directly to homes. Other cities already have fiber optic internet, such as Kansas City, Kan., Chattanooga, Tenn., and Lafayette, La. But this venture is targeting the entire state. That first Mississippi city will be selected through a “Get Fiber First” program, which invites city officials from around the state to tell why their needs, wants and will benefit from the future operations and one-gig fiber. C Spire said it will be accepting applications from neighborhoods, towns and cities in Mississippi. The communities that want it the most, and move quickest, will get it first, they said. More details on how that city will be selected will be announced
them, the Mississippi Department of Insurance says. “The federal government is not releasing rates until Oct. 1,” the Insurance Department said Monday. The Department of Health and Human Services has had an information blackout in recent weeks. In responding to queries, the agency says only that Mississippi's exchange will be open for business on Oct. 1. The federal government stepped in to build Mississippi's health care exchange after Gov. Phil Bryant refused to let the Mississippi Division of Medicaid participate in preparing the exchange. The move negated months of work Insurance Commissioner Chaney's department had done preparing the market exchange. The rates Chaney sent to the feds for approval specify a $3,075 deductible, and a base monthly rate of
$300 that can grow to $900. “The base rate is going to be a little more than $300, depending on where you live,” Chaney said. Chaney said he expected the feds to give an OK to the rates he submitted. He declined to disclose them fully, saying he preferred to wait and let the feds reveal them since Washington will be running the exchange. He insisted, though, that the rates he approved for marketplace carriers Humana and Magnolia were fair and in line with the higher rates that will accompany the new coverage mandates under the Affordable Care Act. “If I thought the rates were excessive, I would not have approved them,” Chaney said. “In today’s market (post implementation of the market exchange) they are
at a meeting Monday at 2 p.m. at the C Spire offices in Ridgeland, said Gregg Logan, vice president for C Spire Wireless. For more information go to cspire.com/fiberhome. The link will provide answers and information on how cities can pursue Fiber to the Home for their community. According the website, the three most important factors for cities are: One: A progressive, business-minded leadership that can move quickly to aid us in deployment with fast construction permitting, advantageous access to public rights-of-way, or other incentives. Two: Business terms from local government that reduce the cost of implementation and operation. Three: Sizable local demand showing in a pre-registration process. According to Baumann, the permitting process has been a roadblock for other cities, and he hopes C Spire can streamline that process. “While we know some of the tangible benefits that fiber offers to individuals, families, businesses and entire communities, we’ve only scratched the surface of what’s possible with 100-times-faster Internet,” Meena said. “Similar to the transition from dial-up to broadband, no one could fathom that people would one day be able to shop online, download software and watch endless hours of video on YouTube. The undiscovered potential of fiber is what’s most exciting and compelling about our plans.” C Spire officials said the benefits of onegig Internet will be felt in various ways. In
“Technology infrastructure is critical for both families and businesses” Gov. Phil Bryant health care, patients will have access to professionals and new diagnostic tool. In education, students can access new learning tools in-home, and possibilities of realtime teacher-student interactions online are greatly enhanced. The faster speeds might also open opportunities for move civic involvement such as digital town chats. Cities and counties can look for more cost-efficient ways to deliver services and individuals can find ways to create tech start-ups and home-based businesses. “Technology infrastructure is critical both for families and businesses as we work together to build a better Mississippi,” Gov. Phil Bryant said in a release. “We continue working to increase access to broadband services across Mississippi, and I appreciate C Spire for making this important investment.”
pretty competitive.” The approvals set a monthly premium base rate of $312 for Magnolia Health Plan and $302 for Humana. The base rate reflects a three-to-one ratio that applies to what a 30-year-old non-smoker can buy coverage for on the individual market today. More simply, insurers on the exchange can set premiums three times above current individual market rates. That’s how, Chaney said, Magnolia and Humana set monthly rates for a 64-year-old non-smoker at about $900. Figures cited by Chaney are for the Affordable Care Act’s “Silver Plan,” an offering that includes all of the coverage requirements of the Act. The Silver Plan carries an average annual deductible of $3,075 across all age categories, according to Chaney. The Affordable Care Act mandates that all Americans be covered after Jan. 1, though it provides subsidies for low-andmoderate income individuals. While the premiums may cause sticker shock at first glance, Washington is offering subsidies and tax credits to help buyers defray their costs. Chaney expects the insurance exchange to gain more providers in the next few years. Specifically, availability could improve in 2015 or 2016. By then multi-state plans may be offered in Mississippi. The national Blue Cross and Blue Shield Association and UnitedHealth are expected to offer national plans.
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laid, will give Mississippi an edge in recruiting business, particularly technology-driven businesses, start-ups and home-based small businesses that provide innovation and job growth. While there are other cities — like Kansas City and Chattanooga, Tenn. — which have the Google version of this fast fiber, C Spire is going to be offering the entire state of Mississippi the option. That leaves Silicon Valley chasing Mississippi and it leaves many of the nation’s technology giants chasing C Spire. In fact, the praise is already coming in. “It’s companies like C Spire that are making the right and necessary investments in fiber optic infrastructure so our nation can once again become a high-speed super power,” says Heather Gold, president of the Fiber To The Home Council Americas, a non-profit association comprised of companies and organizations that deliver and manufacture high-bandwidth. We don’t know how much it is going to cost yet. However, Baumann promises it will be competitive. We aren’t sure exactly when it will be available but C Spire says it is likely to be early in 2014. And we don’t know which Mississippi town will be the first to have the new service. That will be decided in the coming months. But what we do know is that C Spire continues to put Mississippi on the map for the right reasons, leaving the rest of us to be proud of what Mississippians have accomplished and what we continue to accomplish. Contact MBJ editor Ross Reily at 601-364-1018 or ross.reily@msbusiness.com
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MBJPERSPECTIVE September 27, 2013 • www.msbusiness.com • Page 5
OTHER VIEWS
Finger pointing gets us nowhere in health care battle
Website: www.msbusiness.com September 27, 2013 Volume 35, Number 39
ALAN TURNER Publisher alan.turner@msbusiness.com • 364-1021 ROSS REILY Editor ross.reily@msbusiness.com • 364-1018 WALLY NORTHWAY Senior Writer wally.northway@msbusiness.com • 364-1016 FRANK BROWN Staff Writer/Special Projects frank.brown@msbusiness.com • 364-1022 TED CARTER Staff Writer ted.carter@msbusiness.com • 364-1017 LISA MONTI Contributing Writer mbj@msbusiness.com • 364-1018 BOBBY HARRISON Contributing Writer mbj@msbusiness.com • 364-1018 TAMI JONES Advertising Director tami.jones@msbusiness.com • 364-1011
A
side from the obvious mission of providing medical care to patients, it’s clear that the second most important element of health care is who’s going to pay for treatment. If Mississippians needed that point reinforced, it happened earlier this week when members of both the House and Senate insurance committees held a hearing in an attempt to hear both sides of a payment dispute between insurance company Blue Cross & Blue Shield and Health Management Associates, a Florida company that owns 10 Mississippi hospitals. HMA sued Blue Cross in June, accusing the company of breaking the terms of a contract by reimbursing less than it promised for medical
procedures. Blue Cross contends that HMA’s facilities overcharge the insured patients. This business dispute, if unresolved, is sure to affect Blue Cross customers who are accustomed to receiving care at HMA facilities. Because of the lawsuit, Blue Cross ended its contract with HMA hospitals in August. ... Representatives of Blue Cross and HMA predictably pointed fingers at each other at Monday’s legislative hearing. But it would seem like BlueCross, which controls access to its customers and their insurance reimbursements, has the upper hand in this dispute. At the hearing, the House Insurance Committee chairman said that if the problem cannot be resolved, the Legislature might have to pass a law to alter or eliminate
insurance networks in favor of regulations that would let any hospital into a network if it meets requirements. The state already has an “any willing provider” law for pharmacies. But it would be quite a step for the Legislature to extend that to hospitals, which provide far more expensive medical treatment than do pharmacies. As the country prepares for the slow rollout of the Affordable Care Act, and the many unknown effects it will have on medical care, one concern is whether the new law will increase the friction between insurers and health care providers. If it does, the patients will most likely end up paying for it. — The Greenwood Commonwealth
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» HOW TO WRITE Letters to the editor are one of the most widely read features of the Mississippi Business Journal, and they give everyone a chance to voice their opinions about current affairs. We’re interested in what you think and we welcome Letters to the Editor for publication. Here are the guidelines: >> Letters should not exceed 300 words in length as a general rule. >> All letters must bear the writer’s address and telephone number. Street addresses and telephone numbers will not be published, but may be used for verification purposes. Letters may not appear without the author’s name. >> Form letters, thank you letters and letters to third parties generally are not acceptable. >> Letters must be typed or e-mailed. >> Letters must conform to good taste, not be libelous and not involve personal attacks on other persons.
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» CORRECTIONS The Mississippi Business Journal takes seriously its responsibility to provide accurate information, and will correct or clarify articles produced by the editorial department if we have made an error or published misleading information. The correction will be placed in the perspective section. If you see inaccuracies in Mississippi Business Journal news stories, please report the mistake via e-mail at editor@msbusiness.com.
6 I Mississippi Business Journal I September 27, 2013
HEALTH CARE
DRINK OF LIFE
» FGH establishes breast milk depot program BY WALLY NORTHWAY I STAFF WRITER wally.northway@msbusiness.com
No one knows how critical it can be for hospitals to maintain a solid supply of breast milk more than Katherine Rolkosky. Rolkosky recently gave birth to a daughter, who was born 10 weeks early and was a patient in Forrest General Hospital’s neonatal intensive care unit (NICU) while Rolkosky was in FGH’s adult ICU. Because of the condition of mother and daughter, breastfeeding was impossible, and the baby depended on donated human milk for nearly two months. “I have always been a big promoter of breastfeeding,” said Rolkosky. “It frustrated me because I wasn’t able to give my daughter the milk she needed; however, the donor breast milk truly made a difference in her life.” The Rolkosky story is not an isolated one — NICUs have a constant need to keep safe, dependable human milk on hand, and Forrest General has launched an innovative breast milk-donation program to meet the issue. Opened for approximately a month now, the Forrest General milk depot was established to boost breast milk supply by offering lactating mothers a place to donate their milk. Hospital officials are calling the early returns a complete success — last month, the milk depot program received over 4,700 ounces of donated breast milk. Twelve women have been screened for the program, and seven are already making donations. “I’m ecstatic that it has been so successful. This one intervention is saving the lives of so many premature babies,” said Clint White, M.D., neonatologist at Forrest General. Receiving the donations is only half of the effort — the milk must be processed. To that end, Forrest General has contracted with the Mothers’ Milk Bank Austin in Texas. Formed in 1999, Mothers’ Milk Bank Austin was initially conceived to supply safe breast milk to health care facilities in Central Texas. Since then, it has grown to provide human milk to facilities
across the U.S. “We currently serve four hospitals in Mississippi, but Forrest General is the only one that has contracted with us that has formed a depot program,” said Kim Updegrove, RN, CNM, MSN, MPH, executive director of the Mothers’ Milk Bank Austin. “While the general public is aware of the need for hospitals to maintain a safe supply of blood, many are unaware that hospitals also need a safe supply of breast milk. This needs to be addressed — we need to raise awareness. Forrest General Hospital is doing that.” The Mothers' Milk Bank Austin (www.milkbank.org) pools and pasteurizes donated milk to kill any bacteria or viruses using guidelines set by the U.S. Food and Drug Administration and the Human Milk Bank Association of North America (HMBANA). Mothers’ Milk Bank Austin claims the pasteurization process destroys only a small percentage of milk’s beneficial properties — approximately 70 percent of the immune factors that help protect babies from illness are preserved. Before pasteurized milk is dispensed, bacteriological testing is done to ensure its safety. Keeping these healthy properties in human milk is essential to infants’ health, White said. “Babies on breast milk grow better, have higher IQ’s, fewer allergies, 40 percent fewer ear infections and are 20 times less likely to get gut infections,” he said Clint White. Women who are currently breastfeeding infants under one year of age are eligible to be screened at no charge to become human milk donors. “We have always encouraged mothers to provide her own milk for her infant if she is able,” said Jennifer Massey, NNP-BC. “However, it wasn't until January 2011 that we started using donor milk and fully comprehended the process the milk goes through, demand and sometimes shortages that the milk banks face. The Mother's Milk Bank in Austin projected to need approximately 700 donors to meet the demand for the 2013 year; however, they only had 230 donors earlier this year. We
Special to the Mississippi Business Journal
According to the Human Milk Bank Association of North America, the need for safe, available human milk extends beyond Mississippi and the U.S.
quickly decided that we would open up a donor site here at Forrest General to give our local mother's an opportunity to donate. It took approximately three or four months to open the depot to the public.” Although a woman can donate her breast milk regardless of where she lives, the milk depot located at Forrest General makes it easier for Hattiesburg-area donors. The hospital’s milk collection sites offer approved donors of expressed breast milk a local place where they can drop off their milk rather than ship it to the milk bank. Although the milk bank covers the shipping charges, dropping off the milk can be much easier on the mom who is working hard to feed her own infant while also storing milk for other tiny infants. “For moms who want to help pre-term infants, milk depots make it easy to donate their milk,” said Updegrove. “Forrest Gen-
eral’s milk depot has raised awareness of the importance of breast milk for all babies, but most especially for those babies small enough to fit in the palm of your hand.” The lack of available mother’s milk is an international issue. Just last November, the HMBANA issued an emergency call for donations due to a shortage of supply across the U.S. and Canada. Yet, the issue persists. “We are facing acute shortages of donations from moms, the HMBANA website states. “Right now, we simply do not have enough milk to feed all of the fragile newborns in the hospitals we serve.” For information on Forrest General’s milk depot, call the hospital’s Lactation Department at (601) 288-3763. For more on HMBANA, which offers a number of other milk-donation resources, visit www.hmbana.org.
“This one intervention is saving the lives of so many premature babies.” Clint White, MD Forrest General Hospital
September 27, 2013
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BUSINESS AND INVESTMENT
Fate of new market tax credits rests with Congress » Credits have brought nearly $300 million in investment to Mississippi since 2000 By TED CARTER I STAFF WRITER ted.carter@msbusiness.com
Hailed as an immensely valuable tool for Mississippi developers to use to cut project costs, new market tax credits could die at the end of the year – or they could live on as a permanent part of the U.S. tax code. Congress must decide the fate of the Clinton-era tax incentives designed to spur new development and business expansions in low-and-moderate income urban neighborhoods and rural communities. The issue will be closely watched in Jackson and the rest of Mississippi, which has been the recipient of several hundred million dollars in development money since enactment of the tax credits in 2000. Funding gaps closed by new market tax credits made possible some of downtown Jackson’s most recent redevelopment successes, said Ben Allen, president of Downtown Jackson Partners, a public-private partnership created to promote and enhance downtown development. “We would not have the Standard Life or the King Edward,” he said of the key role the tax credits had in the restoration of the Standard Life as an apartment building and the King Edward as a Hilton Garden Inn that includes upper floor apartments. Further, the expected conversion of the circa 1924 Lamar Life building to a mix of commercial and residential use is expected to get an assist from $10 million in new market tax credits, according to Allen. By the end of the last decade, 60 projects with an estimated value of $276 million had been completed with the tax credits awarded through the Treasury Department’s Community Development Financial Institutions Fund. For this year, the Treasury Department designated three financial entities – MuniStrategies, the nonprofit Hope Enterprise
RETAIL
Corp. and Trustmark Bank’s Southern Community Capital – to award around $100 million in new market credits. MuniStrategies got a $50 million allocation and Hope Enterprise and Southern Community Capital $25 million each. Competition for the credits is intense, with the payoff being a sizable reduction in a development project’s overall cost. For instance, an investor will buy $10 million in tax credits at 80 cents on the dollar. With the tax credit worth 39 percent of $10 million, the investor ends up with a tax credit of $3.9 million for which it paid $3.1 million (80 cents on the dollar). Supporters of the tax credits say that with the federal share of community development spending having declined 75 percent over the past 30 years, new market tax credits provide an efficient method of injecting capital into projects in distressed communities. With expiration of new market tax credits set for Dec. 31, Senators Jay Rockefeller, a West Virginia Democrat, and Roy Blunt,
Continued from Page 2
downtowns. “The suburban sprawl of the 1960s and '70s has created the need for filling those cores.”
Skin in the Game A development company does not necessarily approach a partnership with the public with a firm idea of the stake it will put into the deal, the panelist said.
a Missouri Republican, introduced the New Market Tax Credit Act of 2013, a measure that would extend the tax credit indefinitely by making it part of the IRS Code. The legislation would also increase the annual New Market Tax Credit allocation “A permanent extension would ensure that hard-hit rural and urban communities can continue to access billions of dollars in capital for job creating investments in business or economy development projects,” said the New Markets Tax Coalition, a nation advocacy group based in Washington. The State of Mississippi has its own new market tax credit incentive. Administered by the Mississippi Development Authority, the program has awarded $264 million, including $125 million this year. Jackson’s MuniStrategies won its first selection as a Certified Development Entity in 2011. With $50 million in tax credits to allocate this year it so far has closed on allocations of about $16 million, with the credits going for both development projects and
However, Mattiace Properties has a history of putting up 10 percent to 15 percent, Mattiace says. “Projects today require greater equity,” he notes. “We have to tailor the 'ask' to the specific transaction. Then it becomes a transparent give-and-take between the public and private sectors to try to tailor something that really will work.” Time value of money, is the developer contribution on the front end or does it come over a 10 to 15-year period? – “That all affects the financing of the transaction,” Mattiace says.
business assistance. Put simply, said MuniStrategies President Alan Lange, the credits enable investors to invest money they otherwise would not. Jackson’s soon-to-open Iron Horse Grill for which MuniStrategies allocated $4.5 million is an example, Lange said. “The Iron Horse was absolutely unfeasible without new market tax credits (and historic tax credits),” he said. “The only economic sense was to knock it down,” he added of the circa 1906 former Armor Smokehouse on West Pearl Street that had been closed for years after sustaining fire damage as a restaurant. Typically, investors buy the tax credits because project developers seldom have a high enough tax liability to benefit from them. With the Iron Horse, Trustmark Bank bought the credits and will use them to defray its taxes over a seven-year period. Basically, the Iron Horse developers got a lower principal on their loan from Trustmark, Lange said. “Trustmark got a return on its future revenue stream. So it was a win, win.” As a Certified Development Entity, MuniStrategies has allocation authority for the credits but does not take an equity stake in the projects with which it works. “Where we come in is in identifying the investors” who buy the tax credits, Lange said. This year, MuniStrategies is working a wide swath of Mississippi. “We are increasingly focused on rural areas in Mississippi, he added, citing projects in Columbia and Quitman. Although nothing is certain in Washington these days except uncertainty, Lange said he is confident new market tax credits will survive. “This is pretty nonpartisan; it’s elephants and donkeys working together. “The good news is there is not a hardened interest against it. The government is, in essence, buying money from the private sector because the money that can be discounted (as a tax credit in later years) goes to work today. The government is borrowing to stimulate invest that otherwise would not happen.”
Seitz of the Seitz Group said it' hard to tailor a deal with a specific contribution in mind “but off the cuff 10 percent” is typical. Bayer Properties' share of the deal hinges on the confidence it has that the numbers are good and solid, Bayer says. The first task is to decide if you want any part of the deal at all, he adds. Intangibles aren't entirely absent from the decision, however. “There is intuition and emotion by nature,” Bayer says. “We are all optimists or we would not be doing what we are doing.”
September 27, 2013 • MISSISSIPPI BUSINESS JOURNAL • www.msbusiness.com
AN MBJ FOCUS:
SMALL BUSINESS EMPLOYMENT AGENCIES
Hiring increasing — ever so slightly » Mississippi agencies see more professional, clerical type jobs available By LISA MONTI I CONTRIBUTOR mbj@msbusiness.com
Employment agencies across Mississippi say they are getting mixed messages about the economic recovery in the state based on their own track record of supplying staff to a variety of employers. But they do see slight improvement and are hopeful for better days ahead. Katie McMillan, the branch manager of Key Staff Source Inc.’s Tupelo office, said she and other managers routinely study the national industry job markets and employment trends. “There are some industries that are exhibiting stronger employment trends, including financial activities, leisure and hospitality, professional business services and mining and logging.” McMillan said her office sees a good number of direct hires, where an employer hires directly from the Key Staff Source database of employees. “Of course our temporary-to-hire is also a popular trend that we see here,” she said. She refers to that process of hiring an employee on a temporary basis to see if they suit the job and the company. She refers to that as “try before you buy.” One advantage for the hiring employer is that “they don’t have to have a big financial investment in the person until they see if it works out,” McMillan said. McMillan said she detects a slight uptick in the economy. “Compared to the 2009 recession we definitely see an increase in business from then but it feels like it’s not back up to what it used to be. People still seem to be a little hesitant to hire big numbers of people. It really depends on the person and industry they’re in.” Customers concerned about insurance benefits for 2014 may turn to her agency for temporary employees who get full insurance coverage from Key Staff Source. Because of the sluggish employment situation, she said, “We still see a lot of great professional candidates without a job in our area.” McMillan said the year end holiday season is a slow time for her office and her customers. “They don’t gear up for any employee
“Obamacare is the number one issue people are concerned about especially in Mississippi where there are a lot of small businesses.” Gary Carmichael Owner, PrideStaff in Hattiesburg and Gulfport
project until they’re in the retail industry, and we don’t do a lot of retail.” McMillan said the one big misconception people have about the employment service business is the variety of services they offer. “People think we just do temp job and employment placement,” she said. “We do so much more than that: Full-time, part-time, direct hire, professional placement, headhunter recruiting and fulltime recruiting as well for all sorts of different industries.” Gary Carmichael, owner of PrideStaff locations in Hattiesburg and Gulfport, is seeing two different landscapes at his offices. “The last year has been a little robust in
Hattiesburg,” he said. “We’re seeing certain businesses starting to do some projects and they’re funneling some people through us rather than bringing on permanent employees.” In Gulfport, however, some construction work is going on but there’s not as much demand as in Hattiesburg. Everywhere, he said, people are being “very cautious” as the Affordable Care Act and possible tax structure changes loom. “Obamacare is the number one issue people are concerned about especially in Mississippi where there are a lot of small businesses.” He also sees movement back to the Coast market and thinks some people are
finally returning after Katrina. “We are seeing more professional type jobs opening up,” he said. Christy Strawbridge, owner of the Spherion office in Gulfport, described her market as “a little slower than we would like,” because of the economy in general and because there are no new employers coming into the area. But, she said, demand for workers, especially in the clerical field, have picked up in the last couple of weeks. “We have seen clients we haven’t heard from in two years or more, and that’s great,” she said. “We’ve got an established group of clients and we’ve started to see them come back and ordering.” Strawbridge said she has seen a large number of people moving to the area with advanced degrees who are looking for work. “They’re great candidates with great skills but they’re used to more money than what we’re paying here. That’s the challenge we have.” Another challenge is convincing emSee
AGENCIES, Page 14
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10 I Mississippi Business Journal I September 27, 2013
SMALL BUSINESS
S
FOOD
‘NO FEAR’ » Rainbow Co-op says it is prepared for the arrival of Whole Foods By BECKY GILLETTE I CONTRIBUTOR mbj@msbusiness.com
The Rainbow Natural Grocery Cooperative located on Old Canton Road has been a mainstay for shoppers interested in organic and natural foods since 1980. Soon it will be facing competition from one of the biggest natural food chains in the country, Whole Foods, which is building a 30,000-square-foot store in Highland Village. But the Rainbow Co-op feels it will retain its loyal customer base, and brings a different type of offering to the marketplace than Whole Foods. “Whole Foods isn’t necessarily competi-
tion,” said Shelby Parsons, who does community outreach for the Rainbow Co-op. “It is a completely different business. They sell different products. Whole Foods coming in is an opportunity for us to set ourselves apart, and showcase our buying policy. You don’t have to do all the legwork to make sure what you buy here is safe for you, the planet and animals. We take a holistic approach to business. People are starting to get more excited about eating healthy, and more excited about supporting small businesses. I think that will only bring us more customers in the long run.” Parson said there is excitement about a new natural foods store coming to town. “But it is a big company and big companies
Courtesy of Rainbow Co-op
The cooler: Rainbow Co-op in Jackson is stocked full of fruits and vegetables.
have to make more compromises,” she said. “And we really don’t. We can stay true to our standards, and I think that is what is going to set us apart.” One thing that sets it apart is that it is a cooperative. In fact, it is the only cooperative grocery store in the state. Decisions are made by the board of directors that is elected by the members. They buy locally whenever possible, and all the produce is organic and non-GMO (genetically modified organisms). “We have a lot of small farmers who bring produce once a week or more,” Parsons said. “People are accustomed to getting fruits and vegetables out of season, so some is sourced from out of state. Right now we have local tomatoes, greens, bell peppers, butter beans, green beans, specialty vegetables, squash, eggplant, and bitter melon.” A lot of their customers are buying more
from the fresh produce department in an effort to transition to a more healthy, natural diet. Parsons said when people are accustomed to processed foods, they can almost become addicted to those foods and find natural foods not as palatable. “But real food starts to taste better than processed food once they have gone through that transition,” Parsons said. “And people do say they feel much healthier and better when they transition back.” Parsons credits a lot of the success of the store to the team of employees who are very passionate about healthy foods and other products. The employees in the supplement department are especially passionate. “They are so knowledgeable and want to help people stay healthy and help with their ailments,” Parsons said. “All our employees go the extra mile to give people specialized information. When they want
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SMALL BUSINESS
September 27, 2013
one-on-one information, we are happy to do that. If they are going to a gluten-free diet or a plant-based diet, we want to help them out as much as we are able to.” The store employs about 50 people including those who work in the all-vegetarian restaurant — the only all vegetarian restaurant in the city. “We have veggie burgers, Asian cuisine, veggie crab cakes, a lot of Hispanic type food, soul food and all kinds of salads,” Parsons said. “People can be comfortable with eating vegetarian food without going too far out of their comfort zone.” Another popular area of the stores is the bulk department for grains, spices, herbs, cereals, trail mixes, nuts, seeds, fruits and other items. Not only can bulk items be less expensive, it allows people to buy small quantities if they want to try something new. All bulk bags are made from biodegradable corn. Parsons said the supplement’s department is huge and very popular not only because of their selection, but the knowledgeable staff. People come straight from the doctor to get the natural supplements they need for ailments or to maintain a healthy immune system. While organic food can be expensive, Parsons said it should be considered an investment in health. “Food is medicine and it can also be poison,” she said. “What you spend now can keep you out of the doctor’s office later. You are saving money by eating the right way now. A majority of chronic diseases are caused by diet, so by changing your diet, you are extending your life. When you look at what you are getting quality wise, you pay more than at a conventional store, but you get a better product.” Patrick Jerome, produce manager, said they have high buying standards that are unmatched by other grocery stories. For example, they don’t allow any products with MSG or high fructose corn syrup. “HFCS sneaks into a lot of products, even those called all natural,” Jerome said. “You can put anything you want into a product and call
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Mississippi Business Journal
Courtesy of Rainbow Co-op
Patrick Jerome, produce manager, says he gets many questions about going gluten-free.
I
Courtesy of Rainbow Co-op
Shelby Parsons, who does community outreach for Rainbow, doesn’t see Whole Foods as competition.
it all natural. HFCS is definitely not good.” Jerome said he gets more questions about going gluten-free than anything else. People are also increasingly interested in raw food. “Overcooking food is bad,” Jerome said. Employees are given free reign to spend as much time as a customer needs. “People have a lot of questions,” he said. “All the time people come back and say ‘thank you’. They are feeling better, looking better,
and they tell us all about it. People think it is difficult to change to eat healthy. But once they start doing it, they realize it is entirely worth it. People enjoy it. “People don’t go back to eating unhealthy food. Once they make the change, they realize the main benefit is the quality. It is just better stuff. It has better texture, better taste, and smells better. It is what food should be like.”
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12 I Mississippi Business Journal I September 27, 2013
SMALL BUSINESS
PROFILE
Business league busy in Madison County
Deryll Stegall / The Mississippi Business Journal file photo
Jan Collins is executive director of the Madison County Business League.
» Organization plays vital role supporting economic growth By LYNN LOFTON I CONTRIBUTOR mbj@msbusiness.com
The Madison County Business League has been a busy group since it was created in 2008 and has grown to 135 members. A privately funded 501(c)(6) non-profit economic development stakeholder and support organization, it plays a vital role in this rapidly growing metro county. “The MCBL provides the Madison County Economic Development Authority with support to fuel continued success as it strives to implement a program of work, recruit business, and market Madison County,” said executive director Jan Collins. “By serving in this capacity, the Madison County Business League assists with moving projects from the drawing board to reality.” Collins explains that the purpose of the MCBL is to act in partnership with the Madison County Economic Development Authority to provide the county a unique opportunity to unite the public and private sectors; thereby, encouraging proper planning for future growth and development. “MCEDA, a quasi-governmental agency, has a mission to assist our existing businesses and to attract new investments and higher-paying jobs to Madison County in an effort to increase our tax base and improve the quality of life,” she said. “More than just stakeholders, the mission of the Business League is to unite the leading business owners, CEOs, presidents, and decision makers with elected/appointed officials on all levels from local to federal to discuss topics that affect economic development for Madison County.” Collins says the League is an educational organization, achieving this mission by hosting large and small educational and See
COLLINS, Page 14
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14 I Mississippi Business Journal I September 27, 2013
COLLINS
Continued from Page 13
informational forums, symposiums, committee meetings and other events to bring these individuals together. Topics addressed include health care, economic forecasting, education, infrastructure, entrepreneurship, energy, among others. “We also host smaller events for the various committee members – education, government relations, health/wellness and entrepreneurship – with senate and congressional staff members, MDOT officials,
policy advisers, legislators, judiciary and other local and state elected and appointed officials,” she added. Timely issues such as Medicaid expansion, insurance exchange, health industry zone legislation and common core standards are discussed. “With both the public and private sectors in attendance at these meetings, hearing the same message, it enables the group to make wise decisions regarding the future of the county,” Collins said. Since its inception, the MCBL has hosted more than 35 events including a United for Progress reception for the Mississippi con-
SMALL BUSINESS gressional delegation in the U.S. Capital and a series of coffee events with national and state elected officials. Each year this organization sponsors the League & Legislature luncheon at the State Capital with past and present speakers of the house. “The annual Visions Celebration is held to present the Visions Award and the Visionary Leadership award to those businesses and individuals that have had a tremendous economic and quality of life impact on Madison County,” Collins said. “Sanderson Farms CEO and chairman of the board Joe Sanderson will be the keynote
The Madison County Creative Economy Council has “been instrumental in the design of a quality of life website to be unveiled on October 1, 2013.” Jan Collins Executive director, Madison County Business League
speaker for the 2013 luncheon in November.” The Business League and the MCEDA sponsor the annual Madison County Youth Leadership program which selects two juniors from each of the county’s public, private and parochial high schools and New Summit School to participate in a Career Day and Lifestyles Day and to attend the League & Legislature luncheon at the Capital. Along with other groups, the MCBL is involved with the North Madison County Excel By 5 Coalition, an early childhood kindergarten readiness certification initiative exclusive to the state of Mississippi. In support of the Mississippi Development Authority’s Creative Economy, the MCBL organized all five chambers of commerce, economic development organizations and tourism groups to create the Madison County Creative Economy Council. “This dynamic group of professionals has recognized the role of the creative economy by hosting countywide business-afterhours events to promote Madison County,” Collins said. “They have also been instrumental in the design of a quality of life website to be unveiled on Oct. 1, 2013.” Members of the Business League volunteered to assist in the implementation of the Madison County Strategic Plan by serving on subcommittees making long range plans in the areas of transportation, education, healthcare and quality of life.
AGENCIES
Continued from Page 9
ployers not just to match a resume with a job description. “Sometimes they’re going to have to look outside that and know the skills are in there,” she said. Strawbridge said clients have always wanted resumes for clerical jobs but now they want them for industrial jobs, too. “They want to be able to look at someone’s work history in order to make sure it’s applicable to the job that’s open,” she said. Strawbridge said she and her staff see job seekers making a basic mistake by not having a proper resume free of typos and other errors. “We’re still having issues trying to get people to understand that your resume is your calling card. We wrestle with that every single day.”
EMPLOYMENT AGENCIES
September 27, 2013
I
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NEWSMAKERS
16 I Mississippi Business Journal I September 27, 2013 Profiles of growing young professionals in Mississippi
Age: 31 Director of Real Estate Development, Livingston Holdings
Keeping our eye on... JONATHAN MCPHAIL The past five years of economic downturn haven’t been kind to many industries. That cold, hard fact hasn’t stopped Jonathan McPhail from pursuing his dreams “I love visiting a past project of mine and admire how a family has taken a house I built and turned it into their home,” McPhail says. “In five years, I would like to have (the) local industry reputation of being one of the top real estate developers in my market.” The Pearl native earned his undergraduate in construction and land development from Mississippi State University in 2005 and recently completed a masters in real estate development at Auburn University. “I did not fully believe the current market conditions in the Jackson area were right for me to return,” McPhail says, adding
Blackwell joins team Jonathan Blackwell has joined The Gibbes Company’s communications and advertising team as a senior art director. Blackwell has almost 15 years of experience in creating brand identity and creative design packages for clients and has been honored as Graphic Designer of the Year by the American Advertising Federation of Jackson. Blackwell holds a bachelor’s degree in graphic design from Blackwell Mississippi College.
Collins to retire Charles F. Collins, Cal-Maine Foods Inc. vice president and controller and the company’s chief accounting officer, will retire effective Dec. 31. The company is considering candidates for this position and will name a successor prior to his retirement date. Collins has played an important role in the growth and development of Cal-Maine Foods. He joined the company’s Maine division in 1969 and moved to the corporate offices in Jackson in 1980. He also served as a director of the company from 1983-2004.
Magazine features trotter Ike Trotter was recently featured in Advisor Today financial magazine. Scheduled for the September/October digital edition, Trotter was interviewed for a national podcast series on “Building a More Successful Practice.” Advisor Today, which offers both a paper and digital edition, is a publication of the National Association of Insurance and Financial Advisors. Trotter has been extremely active with NAIFA serving as 1986 state president of NAIFA/Mississippi and now in his eighth year as a NAIFA national committee member currently serving in the area of national Governance. He also serves on the Editorial Advisory Council of Advisor Today.
Firm adds to staff KPMG has welcomed five new employees. Drew Moroux has joined the firm as an audit associate. He received a bachelor’s of business administration in accounting and master’s of accounting from Millsaps College.
Heroes: “I would have to say my mom. Although life has not always been easy on her, she has chosen to always walk the straight and narrow path. There is a lot to be learned from that.” Best Mississippi event: Mal’s St. Paddy’s Day Parade Favorite Mississippi food: Fried catfish Favorite TV show: “Homeland” Favorite movie: “Forrest Gump” Favorite music: JJ Grey & Mofro Favorite hangout spots: Fondren District in Jackson First job ever: Xan’s Diner in Flowood. Twitter handle: @jdmcphail
that he considered moving to larger markets in Atlanta, Ga., and Nashville, Tenn. A conversation with local developer David Landrum turned things around for McPhail, who now works with Landrum’s team redeveloping the historic Town of Livingston in Madison County. The residential and retail development already boasts a popular farmers market that attracts hundreds each week. “I believe the end of suburbia is drawing near,” McPhail says. “Over the past few years I have been able to visit many U.S. markets where (there is) revitalization of the urban core.” McPhail races and volunteers at various running events across Mississippi and hopes to complete an Ironman event one day. — By Stephen McDill
Will Mitchener has joined the firm as an audit associate. He received a bachelor’s degree in accounting and masters of professional accountancy degree from Mississippi State University. Joyce Martinez has joined the firm as an audit associate. She received a bachelor’s of science in business administration and a master of professional accountancy from the University of Southern Mississippi. Emily Ford has joined the firm as an audit associate. She received bachelor’s and master’s of accountancy degrees from the University of Mississippi. Marian Tillman has joined the firm as an audit associate. She received bachelor’s and master of accountancy degrees from the University of Mississippi.
TCVB welcomes Boring The Tupelo Convention & Visitors Bureau has added Kylie Boring as director of marketing. Boring comes to the TCVB from Journal Inc., where she served as national accounts sales representative, managing key national and local accounts in Tupelo and Lee County. She previously worked at Philips Day-Brite as associate product manager and as marketing manager for XtraLight Manufacturing, a Houston, Texas-based company. A native of Jackson, Boring graduated from the University of Southern Mississippi and has lived in Tupelo since 1999 with her husband, Chris, and son, Van Michael.
Bell
Browne
Diaz to retire
Doctors offering emergency care
Dale Diaz, the head of the Department of Marine Resources fisheries division, is retiring later this fall. Diaz has been director of the Office of Marine Fisheries, which has 47 employees, since February 2007. He has worked for DMR more than 26 years, starting as a marine patrol officer. He advanced to lieutenant in the patrol before he moved Marine Fisheries as a biologist in the shellfish bureau. His last day will be Oct. 31.
River Oaks Hospital in Flowood has established an association with Capital Emergency Physicians as providers of emergency medical care for the Emergency Department at River Oaks. Principals for the group are Allison Barrett, M.D., Justin Daniels, M.D., Damon Darsey, M.D., M.S., EMT-P, Patrick Ferriss, D.O., Nathan McIntosh, M.D.; and, James Nichols, D.O. All of the physicians are American Board of Emergency Medicine certified, or board-eligible, and trained in emergency medicine.
Stewart joins staff (photo) Jawauna T. Stewart, MD, recently joined Hattiesburg Clinic’s Hospital Care Service. Stewart received her medical degree from the University of Mississippi Medical Center and completed an internal medicine residency at the University of Tennessee in Memphis, Tenn. Her professional affiliations include the American Medical Student Association and American College of Physicians. Stewart Stewart will be providing care at Forrest General Hospital.
Edwards
Architects elected to board The Mississippi State Board of Architecture, along with the Landscape Architecture Advisory Committee and the Interior Design Advisory Committee, recently elected David Hardy, AIA (Biloxi, Eley Guild Hardy Architects) as president, and Michael Boerner, AIA (Jackson, Wier+Boerner Architects) as secretary/treasurer. Also, new member John Christopher “Chris” Morrow, AIA (Columbus, Pryor & Morrow Architects and Engineers) was inducted, having been appointed to the board by Gov. Phil Bryant. Other board members are Richard McNeel, past president (Jackson/JBHM Architects) and Larry Bishop (Flowood/JH&H Architects, Planners and Interiors).
For announcements in Newsmakers; Contact: Wally Northway (601) 364-1016 • wally.northway@msbusiness.com
Elkins
Ferrell
Klein
Watson
HORNE makes promotions CPA and business advisory firm HORNE LLP recently announced the promotion of team members Josh Edwards, Lee Klein, Matt Elkins, Matt Ferrell, Amye Bell, Laura Brown and Ted Watson. Edwards was promoted to senior manager. He works in assurance services and focuses his practice on SEC registrants and large private companies. Klein, Elkins and Ferrell specialize is assurance services for the construction
industry. Klein was promoted to supervisor. Elkins and Ferrell were promoted to managers. Bell and Brown were promoted to supervisors in the financial institutions focus area. Watson works on the disaster recovery management team where he was promoted to senior associate.
September 27, 2013
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» MISSISSIPPI LEADERS by Martin Willoughby
Keeping it in the family Aden follows father’s lead
A
s baby boomers continue to retire and transition family-owned businesses, there will be many families trying to navigate the challenges of generational business transfers. One of the real challenges of being a second-generation business leader is standing in the shadow of your parent who founded the company. As I have worked with business owners through this transition, there are some important dynamics that have to be considered. One of those challenges is transitioning leadership with the employees in the business. Often, long-time employees have worked for years for the founder, and now they are asked to follow the second generation. I am always interested in studying organizations that have successfully made this generational transition and addressed these type challenges. Dr. Brannon Aden, managing partner and medical director of Mississippi Vision Correction Center, PLLC and Eye Surgical Center of Mississippi, PLLC, has successfully made this transition with her father, Dr. William Aden, who founded the ophthalmology practice in Jackson in 1974. Aden graduated from Washington & Lee University where she double majored in English and biology. She went on to complete her medical school education and training at Tulane University and Charity Hospital in New Orleans. Upon completing her training, Aden returned to Jackson in 2000 to join her father in practice.
Up Close With ... Dr. Brannon Aden Title: Managing partner and medical director of Mississippi Vision Correction Center, PLLC and Eye Surgical Center of Mississippi, PLLC First Job: ”My only ‘real’ job prior to starting work in August 2000 was at the River Hills Club Pro Shop on weekends and after school during high school. “ Favorite Books: Paradise Lost by John Milton; Outliers by Malcolm Gladwell, Quiet Strength by Tony Dungy and The DaVinci Code by Dan Brown Proudest Moment as a Leader: ”Successfully implementing laser cataract surgery as part of our ongoing commitment to technology.“ Hobbies/Interests: NFL Football, especially the New Orleans Saints; fishing the marsh in South Louisiana; snow skiing; making dessert; eating great food
Within 18 months, they hired an associate, and shortly thereafter decided to build a new clinic and surgical facility. Aden shared, “While my father had built a very successful practice primarily devoted to cataract surgery, I knew that we would have to embark on a path of continual change to remain ahead of the curve in technology and what we could offer patients here in Jackson.” They opened their new facility in 2005, and have now tripled the size of their business and employee over 30 full- and part-
time employees. Aden candidly noted, “Perhaps most challenging was the fact that I had known many of the employees who are still a part of our team to this day since I was a teenager. I knew I had a very tall order in making the transition from being the ‘boss’ daughter’ to being the ‘boss.’ Aden continued, “I never felt that I could gain their respect without earning it each and every day. I try to lead by example, and I try demonstrating with that example that everyone is an essential part of the organi-
“I never felt that I could gain their respect without earning it each and every day.”
zation and that we all work toward the same goal: Providing the best possible care and experience for our patients.” Often the best lessons in leadership are observing those who Martin Willoughby you don’t want to model. Aden said that she knew from some of her training as a physician that she did not want to be one of those doctors that yelled and screamed and demanded what they wanted from people. Those type doctors lead by intimidation and blame everyone else for problems. Instead, she modeled her leadership style after her father who she says, “embodies the kind of compassion, fairness and good care that I truly respect.” Aden shared that her core leadership philosophy is that, “If I can take care of patients to the best of my ability while always being focused on their needs first, then everything else will take care of itself.” She tries to instill this same principle in her employees so that everyone in the organization reflects that same commitment. As a part of her commitment to excellence, Aden also devotes a fair amount of her time traveling the country giving presentations and lectures in her field of specialty. Dr. Aden and her father certainly present a great example of how to “hand the baton” from one generation to the next and how to take an organization to the next level building on the solid foundations of the founder. Martin Willoughby is a business consultant and regular contributing columnist for the Mississippi Business Journal. He serves as Chief Operating Officer of Butler Snow Advisory Services, LLC and can be reached at martin.willoughby@ butlersnow.com.
A stroke victim lives to analyze and tell her inspiring story
I » My Stroke of Insight: A Brain Scientist’s Personal Journey By By Jill Bolte Taylor, Ph.D. Published by Plume $15.00 softback
MAGINE you’re a Harvard-trained neuroscientist, having spent years researching how our brains work and studying what can go awry with them. You’ve built a very fulfilling and fruitful career — and life — along the way. Now, you wake up one morning at the age of 37, and over the course of four critical hours, realize that you are suffering from a stroke. Your repository of insights into the brain allows you to analyze what’s going on, even as your left brain loses cognitive function. Author and scientist Jill Bolte Taylor takes us on a first-hand account of just this very scenario. In December 1996, she suffered an anteriovenous malformation (AVM), a rare form of stroke that, in her case, caused a massive hemorrhage on the left side of her brain. In fascinating detail, Taylor recounts what it felt like to gradually lose the analytical powers of her left brain, while simultaneously recognizing that the right side of her brain was
becoming dominant. In the book, she offers a quick and painless (really!) look at the two hemispheres of our brains and how they differ. The left is more logical, more concerned with order and time, while the right is more creative, more “in the moment,” and makes us feel connected to the world around us. As she felt her left brain go, Taylor was amazed at how it felt to live primarily in her right brain. She describes it as “nirvana,” and writes that she felt completely at peace with what was
happening to her. Taylor spent eight grueling years recovering from her stroke, having to relearn everything from knowing that you need to put on your socks before your shoes (a left brain injury means you don’t realize the order for things like that) to learning how to read all over again. She was relentless in her pursuit, determined to regain all of the cognitive function she’d lost, and was surrounded with loving friends and family who helped her. In addition to being an inspirational read, My Stroke of Insight would also help anyone with a family member or friend recovering from a stroke. Taylor lays out how she herself recovered, what helped her, and, perhaps more importantly, what didn’t. She provides concrete suggestions for effective rehabilitation, including specifics about how stroke victims are treated. Educational, entertaining, and engaging, anyone interested in the brain (or just an amazing story) would enjoy this book.
— LouAnn Lofton, mbj@msbusiness.com
18 I Mississippi Business Journal I September 27, 2013
FROM THE GROUND UP
ENERGY
Atmos Energy expanding service to industrial parks MERIDIAN — Atmos Energy will begin construction of 23 miles of natural gas pipelines next year to three industrial parks in East Mississippi. The company and Central District Public Service Commissioner Lynn Posey made the announcement Tuesday in Meridian. The three industrial sites that will receive the pipeline service are the Sonny Montgomery Industrial Park, the I-20/59 Industrial Park and the Kewanee Mega-Site. The project is expected to be completed in three phases over six years without using any public funds. David Gates, president of Atmos Energy's operations in Mississippi, said natural gas hasn't always been popular, but its low prices and abundant supply make it very attractive for the type of industries this area is trying to attract. "When you're going after these big and even medium size industrial prospects, they want everything. They want you to bring the site to them. They want a package, and this is part of that package," Gates said. "It makes us now a player not just for heating a building, but for the manufacturing process, and natural gas used as an energy source. In the past where we may have been immediately eliminated because we didn't have gas, now we will receive consideration by prospective companies." Posey said the PSC recently approved the project. "We've come up with a plan that's going to help them get gas to all the industrial parks, which I think would mean a lot to the (Lauderdale) county, Meridian, and the surrounding areas," Posey said. "The expansion of natural gas lines to these three industrial parks will enable this area to better compete for business and industry in the future." Gates said Atmos Energy will tackle the multiphase, multi-year project with an initial investment of $7.5 million. Atmos serves 263,000 customers in Mississippi.
AGRICULTURE
Ag lenders to get updated during Farm Bureau event The agriculture lending industry will be schooled on a number of topics during an upcoming series of workshops. Mississippi State University Extension Service and Mississippi Farm Bureau will host the events Oct. 15 at the Panola County Extension Office in Batesville, Oct. 16 at the Farm Bureau Building in Jackson and Oct. 24 at the Forrest County Extension Conference Center in Hattiesburg. Each workshop begins at 9 a.m. and concludes at 4 p.m. Scheduled topics include the Farm Bill, MSU production budgets, land value assessment, macroeconomic overviews, crop and livestock market outlooks and insurance. The $25 registration fee covers all of the educational materials.
— from staff and MBJ wire services
Your property’s history
I
f you live in an older house and are not familiar with its heritage you might want to consider becoming a house detective, so to speak. It’s fun and educational to find out about the history of your property. It takes only one trip to Europe to realize that there is no shortage of currently occupied houses there that are over 1,000 years old. In this country, especially in the South, we think antebellum is virtually ancient. In my college real estate class students are required to select a property, preferably one they have interest in, and research its ownership back to 1900. They tell me it’s the best assignment of the course. So where does one go to find the history of a property? The first stop should be the county courthouse. That is where the deed records of real estate transfers are kept. The chancery clerk’s office is the specific place to begin your quest. Rather than attempting to learn the ins and outs of title searching, it is suggested that you simply tell one of the clerks what you are attempting to accomplish. I have found that they are usually very happy to help with such requests if they are not overly busy on the date of the request. As an aside, one of the reasons that good customer service usually comes from the chancery clerk’s office is that the chancery clerk is an elected official. It behooves the reelection possibilities when good customer service is provided. At the chancery clerk’s office there will be deeds filed by names of owners and by legal description. It will help tremendously if you have the legal description and the tax number of the property you are investigating. There is also a lot of cross-indexing.
Speaking of the tax number, that leads to another official, the tax assessor, who can help with your search. The tax assessor is required to annually locate, class and assess all taxable property within the county, and is responsible for setting fair, uniform and accurate values for each parcel of real and personal property. The tax assessor is also charged by the board of supervisors to maintain current ownership maps of the county. Fortunately, more and more county officials in Mississippi are placing searchable property information on their websites. Be sure to check your local county website to see if you can search property records online. Once you have the names of some of the former property owners, the search can get more interesting. An acquaintance was able to learn who built her house in the late 1950s and found that the company was still in business. She visited the company, talked with the grandson of the founder of the company and learned about the history of not only her house and lot but the neighborhood and area development, as well. Another source of information is your local historic preservation program if there is one in your town. Also, the state department of archives and history has tax rolls and birth and death records. Census records are available at regional National Archives’ centers and some libraries. And don’t forget local libraries that might have city directories, newspapers and magazines. How far back one can go depends on many factors, one of which is the part of the country that the property is located. When you get to treaties with Native American tribes it can be far enough for
most people. To illustrate Phil Hardwick just how far back one can go in a title search there is a little bit of legal humor that is enlightening. I’ve seen the below story around for many years. Whether it is true or not, is subject to debate and to further verification. A good synopsis of the variations of the story can be found online at www.snopes.com/humor/letters/landgrab.asp. Anyway, here it is for your enjoyment: Some title companies or federal agencies generally require land title searches go back to the original source. A New Orleans lawyer, working for a government agency, researched the land title back to 1803, and when asked who owned the land prior to that, he replied: Please be advised that in the year 1803 the United States of America acquired the Territory of Louisiana from the Republic of France by purchase. The Republic of France previously acquired title from the Spanish Crown by conquest. Spain acquired title by virtue of the discoveries of one Christopher Columbus, a Genoese sailor who had been duly authorized to embark upon his voyage of discovery by Isabella, Queen of Spain. Before granting such authority, Isabella, a pious and cautious woman, obtained the sanction of His Holiness, the Pope. The Pope is the Vicar on earth of Jesus Christ, the only son and heir apparent of God. God made Louisiana.
HEALTH
ENVIRONMENT
AG Hood joins in call for tough rules on e-cigs
EPA says US falls short in shrinking dead zone
that it will offer iPhone 5s, the most forwardthinking smartphone in the world, and iPhone 5c, the most colorful iPhone yet, to customers beginning on Oct. 1.
JACKSON — Mississippi Attorney General Jim Hood has joined 39 other attorneys general in urging the U.S. Food and Drug Administration to regulate electronic cigarettes in the same way it regulates tobacco products. Hood says in a news release Wednesday that the FDA should place restrictions on the advertising and ingredients of the popular, highly-addictive product, and Hood prohibit its sale to minors. Hood says unlike traditional tobacco products, there are no federal age restrictions to prevent children from obtaining e-cigarettes. Hood says e-cigarette manufacturers are using marketing tactics similar to those big tobacco used in the last 50 to 100 years to attract new smokers. He says celebrity endorsements, television advertising, cartoons, fruit flavors, attractive packaging and cheap prices all serve to encourage youth consumption of these dangerous products.
MINNEAPOLIS — Environmental Protection Agency officials say the U.S. is falling short of its goals to cut Mississippi River pollution and shrink the dead zone it creates in the Gulf of Mexico. Speaking in Minneapolis Tuesday, the federal officials said states in the river's watershed need to accelerate efforts to cut pollution from farm field runoff and sewage treatment plant discharges. The area of depleted oxygen was the size of Connecticut this summer. Nancy Stoner, the EPA's acting assistant administrator for water, says that's about three times larger than the agency's goal. Each state has its own plan to help reach the overall goal. The Minnesota Pollution Control Agency will issue a draft of its updated plan next month and take public comments on it.
TECHNOLOGY
C Spire to offer iPhone 5s and 5c beginning Oct. 1 RIDGELAND — C Spire Wireless has announced
Phil Hardwick is coordinator of capacity development at the John C. Stennis Institute of Government. Pease contact Hardwick at phil@philhardwick.com.
GAMING
Greenville OKs moving plans for Trop Casino GREENVILLE — The Greenville City Council has approved Trop Casino’s proposal to move its gambling operations on Lake Ferguson onshore and develop the city’s waterfront. Mayor John Cox broke a tie vote last week. The casino and its parent company, Las Vegasbased Tropicana Entertainment Inc., say they hope to have the casino, parking areas and a new restaurant ready by December of 2014. “We’re going to bring back some of the old things that they used to do in Greenville like boat racing,” Chris Strobbe, general manager of the Trop Casino, told the Mississippi Gaming Commission Thursday morning before the city council’s vote. “It will open up the lakefront for the city. “We’re really excited. This will be a real shot in arm for economy for Greenville and the Delta.”
— from staff and MBJ wire services
September 27, 2013
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INSIDE LOOK
How private are Facebook privacy settings? or better or worse, the use of social media has grown astronomically in recent years, and social media has become a major part of our lives. With this growth of social media, numerous questions have been presented on how social media will interact with the courts. In the recent personal injury case, Higgins v. Koch Dev. Corp., 2013 U.S. Dist. LEXIS 94139 (S.D. Ind. July 5, 2013), the District Court was faced with determining the discoverability of the plaintiffs’ Facebook information. In Higgins, several girls allegedly suffered serious injuries from excess chemicals in the water at a water park. These severe injuries allegedly prevented the plaintiffs from enjoying active lifestyles and impaired their capacity for future earnings. During depositions, the defendant discovered that the plaintiffs maintained Facebook pages. Immediately thereafter, the defendant served requests for production on the plaintiffs requesting their Facebook information. The plaintiffs objected stating that the request violated their privacy, the privacy of non-parties and claiming that the requests were overly broad and not reasonably calculated to lead to the discovery of admissible evidence. In response, the defendant filed a motion to compel. In making its ruling on the motion to compel, the district court evaluated two issues. First, whether the defendant had made a prima facie showing that the materials would lead to the discovery of admissible evidence. Second, whether the privacy rights of parties or non-parties would be violated by disclosing the information. With regard to the first issue, the defendant claimed that the plaintiffs’ Facebook content may reveal relevant information as to the extent of the plaintiffs’ injuries and how those injuries impacted the plaintiffs’ lives. Because the extent of the plaintiffs’ losses directly impacted the appropriate damages award, the district court found the defendant had made the prima facie showing. In determining whether the privacy rights of the plaintiffs and non-parties would be violated, the plaintiffs asserted that the request violated their right to privacy because they had their Facebook accounts set on the highest level of privacy. However, the defendant had shown the relevance of the request and
F
... discovery of the plaintiffs’ Facebook information would not violate their right to privacy. In ruling on the privacy rights of non-parties, the district court held that photos of non-parties that “tag” the plaintiffs are considered in the possession, custody or control of the plaintiffs.
had taken certain steps to avoid unduly invading the plaintiffs’ privacy. Therefore, discovery of the plaintiffs’ Facebook information would not violate their right to privacy. In ruling on the privacy rights of non-parties, the district court held that photos of non-parties that “tag” the plaintiffs are considered in the possession, custody or control of the plaintiffs. Therefore, the court found a limited expectation of privacy for non-
parties when they “tagged” pictures of the plaintiffs. In conclusion, the district court determined that the defendant had established a prima facie showing that the Facebook material would lead to the discovery of admissible evidence and that privacy settings of Facebook could be negated by narrowly tailored requests and taking sufficient measures to avoid unduly invading the plaintiffs’ privacy. However, as
this novel area continues to evolve, so will the standards and guidelines used by the courts.
Matthew Barley
Matthew Barley is a lawyer as a part of the Commercial Litigation Group and General Litigation Group for Butler Snow Law Firm in RIdgeland.
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