Montgomery Business Journal – May 2016

RETOOLING WORKFORCE DEVELOPMENT PAGE 12

SMALL AND MINORITY BUSINESS INITIATIVE PAGE 8

CREATIVE COMMUNITY COLLABORATION PAGE 16

GOING NATIONAL HODGES WAREHOUSE + LOGISTICS SETS SIGHTS ON BEING A MAJOR PLAYER IN THE COUNTRY. PAGE 32

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Montgomery Business Journal May 2016

GADSDEN

MILLBROOK

MONTGOMERY

OPELIKA

PRATTVILLE

WETUMPKA

CONTENTS 12

MAY 2016

Q&A with Ed Castile

20

28 32

38

MEMBER NEWS

FEATURES

26 Member Profile: NameDropper/ Storkland

8

46 Member Profile: Information Transport Solutions

12 RETOOLING WORKFORCE DEVELOPMENT Q&A with Ed Castile

28 A VANTAGE POINT FOR BUSINESS Downtown draw brings tenants to RSA Dexter Avenue Building

48 Member Profile: Pet Palace

16 WHERE IDEAS GET TOGETHER High-tech hub houses creative community

32 ROOM TO GROW Hodges Warehouse + Logistics sets sights on going national

20 FEASTING ON PORK AND POLITICS Business people and elected officials networked at the inaugural event

37 NAME CHANGE Alagasco will become Spire in 2017

CHAMBER NEWS 06 Calendar 41 Reporter’s Notebook 50 Business Buzz 54 Members on the Move

SUCCESSFUL RELATIONSHIPS Small, minority business initiative gains momentum

22 A NEW WAY TO CONNECT Partnerships pave way for free downtown Wi-Fi

25 THE NEW BIG MAN ON CAMPUS AUM names chancellor

38 THE CENTER OF EVERYTHING 79 Commerce St. boasts one of top addresses in Montgomery

58 Ribbon Cuttings & Ground Breakings 59 New Members 60 Economic Intel

May 2016 montgomerybusinessjournal.com

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THE NUMBER ONE BUSINESS SOURCE FOR MONTGOMERY AND THE RIVER REGION PUBLISHER

Randall L. George EDITORIAL

Tina McManama David Zaslawsky Lashanda Gaines Melissa Bowman DESIGN

Copperwing Design PHOTOGRAPHER

Robert Fouts ON THE COVER

Paul Hodges (left) is vice president, shareholder and broker of Hodges Warehouse + Logistics and Lance Hunter is the CEO. ADVERTISING

Linda Drumheller 334-240-9494 mbjsales@montgomerychamber.com

TJ Williford, Founder/Broker

Properly marketing and managing Real Estate in the River Region 334.277.1077 12 West Jefferson Street | Montgomery, AL 36104

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Montgomery Business Journal May 2016

Montgomery Business Journal c/o Montgomery Area Chamber of Commerce Post Office Box 79 41 Commerce Street Montgomery, Alabama 36101 Telephone: 334-834-5200 Fax: 334-265-4745 Email: mbj@montgomerychamber.com www.montgomerychamber.com/mbj The Montgomery Business Journal (USPS NO. 025553) is published monthly except for the combined issues of June/July/August and November/December, by the Montgomery Area Chamber of Commerce, 41 Commerce Street, Montgomery AL 36104, (334) 834-5200, www.montgomerychamber.com. Subscription rate is $30 annually. Periodicals Postage Paid at Montgomery Alabama, 36119+9998, USPS NO. 025553. Volume 8, Issue 5.

POSTMASTER send address changes to Montgomery Business Journal, c/o Montgomery Area Chamber of Commerce, P.O. Box 79, 41 Commerce Street, Montgomery AL 36101, or email mbj@montgomerychamber.com. The Montgomery Business Journal welcomes story ideas from its readers. Email to: editor@montgomerychamber.com. Subscriptions are a part of the Montgomery Area Chamber of Commerce dues structure. Subscriptions can also be purchased for $30 per year at www.montgomerychamber.com/mbjsub.

JIM MASSEY’S CLEANERS & TUXEDOS

Member Spotlight

Jim Massey III (lee) is President of Jim Massey’s Cleaners & Tuxedos and John Massey (right) is Vice President HOW MANY YEARS HAVE YOU BEEN IN BUSINESS: 75 years HOW MANY EMPLOYEES: 115 employees HOW DO YOU DESCRIBE YOUR COMPANY: We are a family-owned and

operated service company. We believe in order to provide the best service to you, we must find customer service-minded employees and we must provide them with the training and equipment to properly care for some of your most treasured items: your wardrobe. Whether we are dry cleaning your favorite dress, starching and pressing your shirts, washing your towels, renting you a tuxedo, or renting you a suit, we are servicing our customer.

Our company was founded in Montgomery and our roots are firmly planted in the center of the River Region.

WHAT SETS YOU APART FROM YOUR COMPETITORS: Customer

service is the biggest difference between Jim Massey’s and our competition.

That begins with our commitment to the community as a whole and to each individual customer on a very personal level. My brother and I were taught by our father, Jim Massey Jr., that we are here to serve our customer. He preached that to us every day. We probably didn’t listen to everything he and mom told us, but “to serve” is one core belief he passed on to us.

WHY HAS YOUR COMPANY BEEN SUCCESSFUL: The willingness to

adapt and change with the times, but without sacrificing the core commitment of service to customers. For example, we now serve more people though our Drycleaning Express Service than we ever have in the history of our company. DCE allows us to take some stress out of people’s lives by allowing us to pick up and deliver to their home or office at no extra charge.

WHAT DOES SUCCESS LOOK LIKE GOING FORWARD? We want to WH

become the Amazon of the service industry for the River Region. We already deliver drycleaning to hundreds of homes every day, so why not deliver their wash and fold items; why not deliver their tuxedo? Or maybe we even take care of a busy executive’s travel bag by picking it up, cleaning and repacking the contents and then shipping it to his next location.

AN ANYTHING ELSE YOU WOULD LIKE TO SAY ABOUT YOUR BUSINESS: In the past three years, we have invested more than $750,000 in

new equipment. For a small family business that is a lot of money, but our belief in the River Region is that strong. The service business is what we know and what we believe will always be in style, therefore, we are investing in equipment and people in order to continue to serve the people in the River Region.

WHAT ONE THING ABOUT YOUR COMPANY WOULD SURPRISE WH PEOPLE? How technology has affected something as simple and mundane

as cleaning clothes. Whether it is the computer that emails to customers their order status, or the environmentally-safe solvents, or the presses which allow us to remove wrinkles with the appropriate amount of pressure, or the automated assembly system which ensures the highest degree of accuracy when we pull your order together.

531 East South Street, Montgomery AL 36104 334-262-8852, www.jimmassey.com May 2016 montgomerybusinessjournal.com

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18 STRATEGIES: A SUCCESS

FORMULA FOR YOUR BUSINESS

Presenting Sponsor: BWS Technologies 4 PM @ Montgomery Chamber Business Resource Center 600 S. Court Street, Montgomery Free event

18 DOING BUSINESS WITH

THE GOVERNMENT

CHAMBER NEWS

EVENTS

MAY

7

MILITARY SALUTE AT RIVERWALK STADIUM

Presenting Sponsor: HCS Group 6 PM pre-game activities, 6:30 PM game @ Riverwalk Stadium 200 Coosa Street, Montgomery

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60 MINUTE COFFEE

Sponsored by Embassy Suites Montgomery Hotel & Conference Center 8 AM @ Embassy Suites 300 Tallapoosa Street, Montgomery Free event, exclusively for Chamber Members

16 BUSINESS PLANNING SEMINAR Sponsored by BWS Technologies 4 PM @ Montgomery Chamber Business Resource Center 600 South Court Street, Montgomery $10 at the door

9 AM @ Montgomery Chamber Business Resource Center 600 S. Court Street, Montgomery Free event, exclusively for Chamber Members Registration required

19 BUSINESS AFTER HOURS Sponsored by Hilton Garden Inn EastChase 5 PM @ Hilton Garden Inn 7665 EastChase Parkway Montgomery Free event, exclusively for Chamber Members

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EGGS & ISSUES WITH CONGRESSMAN MIKE ROGERS

Presenting Sponsor: Troy University 7:30 AM @ RSA Activity Center 201 Dexter Avenue, Montgomery Registration required: montgomerychamber.com/Rogers

JUNE

6

BUSINESS PLANNING SEMINAR

Sponsored by BWS Technologies 4 PM @ Montgomery Chamber Business Resource Center 600 South Court Street, Montgomery $10 at the door

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60 MINUTE COFFEE

Sponsored by Trenholm State Community College 8 AM @ Trenholm State Community College 1225 Air Base Boulevard, Montgomery Free event, exclusively for Chamber Members

FAMILY 16 MILITARY APPRECIATION DAY AT THE ZOO

Presenting Sponsor: Guardian Credit Union 9 AM @ Montgomery Zoo 2301 Coliseum Parkway, Montgomery Free with valid military ID

20 BUSINESS PLANNING SEMINAR Sponsored by BWS Technologies 4 PM @ Montgomery Chamber Business Resource Center 600 South Court Street, Montgomery $10 at the door

The Montgomery Chamber Event Calendar is at montgomerychamber.com/events 6

Montgomery Business Journal May 2016

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Successful Relationships Small, minority business initiative gains momentum

by David Zaslawsky

Retired Montgomery County Circuit Court Judge Charles Price spoke about the city’s small and minority business initiative.

Cannon Janitorial Services owner Orlando Cannon learned about the importance of it’s who you know to increase his company’s revenue.

He had met and talked to John Foshee, who operates Foshee Design & Construction and he is somebody you want to know if you’re in the trades. His company, among other things, is working a number of projects on Dexter Avenue in downtown Montgomery. Cannon pursued a working relationship with Foshee. “I have lots of people depending on me,” Cannon said. “I have about 25 people working and they depend on me. I’ve got a wife and I’ve got a 97-year-old mother that lives with me and she’s depending on me.”

Finally, Cannon and Foshee talked. Cannon, a minority business owner, was hired as a subcontractor.

Meanwhile, Cannon hired No Streaks Window Cleaning Service, another minority-owned company, to help him with the Foshee project. “I’m looking for opportunities,” Cannon said.

He talked about the importance of building a relationship with other business owners – a relationship that benefits both parties. Cannon said that the city’s Small and Minority Business Initiative helps people being “put in front of the right people.” Those larger contractors who rely on smaller businesses.

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Montgomery Business Journal May 2016

Cannon now handles the majority of janitorial services for Foshee, according to retired Montgomery County Circuit Court Judge Charles Price, who is a senior adviser to Montgomery Mayor Todd Strange and vice chairman of the Montgomery Area Chamber of Commerce. That connection has resulted in other businesses contacting Cannon about janitorial services, Price said.

That’s the goal of the city’s program: to not only increase minority participation in city contracts, but to more importantly connect small- and minority-owned businesses with larger companies in the private sector.

The city’s goal is to award 30 percent of its contracts to small- and minority-owned firms – the same goal as Montgomery County and its contracts. The contracts awarded by the city and county are limited, and that’s why it’s so important to build relationships with private sector companies.

“I’ve been working on these type of issues for 30 years,” said Price, who runs the program along with Doug Moore. “This is not what you call a dog-and-pony, show-and-tell type of program we have here. This is serious business.”

Yes, it is. Bell Transmission owner Eddie Bell, who has been in business since 1971, said that the program “really helped my business and I really appreciate it.

It works.”

The key factor is building those all-important relationships between the business owners and that process began during the seven or eight “meet and greets,” according to Moore.

The city divided roofing repair work into smaller contracts to get those small- and minority-owned firms an opportunity to bid on them instead of having one large contract.

“We know that everything starts with relationships,” said Moore, chief operating officer of the Moore Zeigler Group. He talked about “just having a conversation; just get to know each other. It’s all about relationships.”

“This is just the beginning,” Strange said about the program during a news conference at City Hall.

The program was launched a year ago and Strange wanted to share some early success stories.

Arthur Thomas, owner of Arthur Thomas Construction, said his minority-owned firm is working on the Kress building project for ELSAJA Properties, a Marjam subsidiary. He said he “likes to be a part of” the projects.

When the $5 million Montgomery Justice Center was first bid, only 12 to 15 percent of the contracts went to small- and minority-owned companies. That was increased to about 25 percent.

Before the initiative, Thomas did not know Marjam. “If Thomas participated at all, it was as an employee, but now he has a major contract and he can hire other minority small businesses in the business he knows well to help him on his project and introduce them to other contractors,” Price said. “It’s a snowball effect.”

Price said that the program “has gotten off to a more successful start” than similar programs in Pennsylvania, North Carolina, Ohio and Mississippi. “This (program) has been working and this program has been highly successful.”

“This is not a one-year program,” Price told the Montgomery Advertiser. “This is a work in progress and will continue for years to come.”

He praised the large contractors for being a part of the program and also cited the Montgomery Area Chamber of Commerce’s participation, including assisting small and minority business owners through the Business Resource Center. Chamber officials “are enthusiastic about this program,” Price said.

Now, Moore is talking to banks to help those business owners obtain financing so they can bid on projects. n

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PROGRAM WORKS TO ‘CHANGE THE CULTURE’

by David Zaslawsky

photography by Robert Fouts

The goal of the city’s small and minority business initiative is to improve the quality of life in Montgomery by expanding economic opportunities.

Simply put, having more people working raises the standard of living. “If people aren’t working or don’t share in the economic prosperity of the City of Montgomery, you’re going to continue to have decaying neighborhoods, high-crime rates and more of the undesirable things in your community,” said retired Montgomery County Circuit Court Judge Charles Price, who along with Doug Moore operates the city’s small and minority business initiative.

Retired Montgomery County Circuit Court Judge Charles Price

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Montgomery Business Journal May 2016

“But when people feel they’re being given opportunities and treated fairly and also participate in developing the future of Montgomery, I think it will change some of these social ills in the city. And that’s my approach – to help this city – build up the spirit and the willingness for people in Montgomery to work together and to be able to be successful.”

Drive-Thru & Drop Off

For people to work together, and in this case, it’s larger firms working with smaller firms, it comes down to communication. Those companies – large and small – have been meeting with each other. “The point is this: You have to get people talking and understanding each other,” said Price, who retired after 31 years as a judge.

“In Montgomery, what the problem has been is that people haven’t been talking to each other. You don’t know what a person can do unless you talk to him.

“Now we have a channel of communication, and at some point it will make it good for the whole city. That’s what I’m trying to create. The whole idea is to expand economic opportunities.”

Although the city’s program is just a year old, it has already “met more successes in one year than I anticipated,” he said. “You have to change the culture.

I thought it would take two years to really start peeling back the old ways and (begin) new thinking and change the culture in Montgomery as it relates to opportunities for small and minority business.

“The expectation was that it was going to take at least two years to educate enough large businesses and small businesses and city department heads about what we were doing and what the program is about.”

The program is about increasing the participation of small and minority firms in both the public sector

POWER TO

and private sector. “Rather than just being employed, I wanted to help a segment of people – small and minority businesses – participate on the employer side as opposed to the employee side,” Price said.

He talked about the importance of people working; being able to buy a home or rent an apartment in a “decent, livable complex”; support a family; and buy schoolbooks and uniforms for their children. “All of those things that bring benefits to those who are working,” said Price, who grew up in Montgomery.

He said that he asked the mayor for a resolution about a 30 percent participation rate from small and minority businesses in city contracts and projects involving the city. That resolution was unanimously passed by the Montgomery City Council. “In a city like Montgomery in the deep South, and all the turmoil we’ve had dealing with civil rights, etc., on the record now the City Council has approved a resolution – that’s what was significant about it,” Price said.

He insisted that the program is not about quotas and “taking jobs and opportunities from mainstream individuals.” He said to make the program successful, there had to be buy-in from large and small companies as well as city department heads “that you’re not intruding on their traditional way of doing things. A bureaucratic system is hard to change. I’m delighted we are at this point.” n

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Ed Castile is the Deputy Secretary of Commerce in charge of the workforce development division as well as the director of the Alabama Industrial Development Training program. He was recently interviewed by the Montgomery Business Journal’s David Zaslawsky

Q&A RETOOLING WORKFORCE DEVELOPMENT

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Montgomery Business Journal May 2016

Montgomery Business Journal: What are your responsibilities as the deputy commerce director in charge of the workforce development division?

Castile: The Legislature moved training entities into Commerce in the last regular session. As you know, AIDT – Alabama Industrial Development Training – has been in Commerce now going on four years. Last year, three new areas were added to it, and that’s what created what we now refer to as the workforce development division.

n

What were those three training entities?

The first was the administrative responsibility for the Alabama Workforce Council. The second is the 10 regional workforce councils and there is a staff with that – a group of people who assist those 10 regions. We now have that responsibility as the leader of that. The final group is the federal act that is formally known as the Workforce Investment Act. It’s now the Workforce Innovations and Opportunities Act (WIOA).

n

What is WIOA? It’s a federal program, and it has to do with special populations like low income, disadvantaged economically, laid off. Rapid Response is part of that, where we go in and help individuals who are being laid off by companies. The federal program works with persons and may offset their college tuition or retraining type of events. It could be that they haven’t worked in a number of years and they’re in a program now out there that fits in the Workforce Innovations and Opportunities Act. We have responsibility to manage that program.

The AWC (Alabama Workforce Council) is more of an administrative role.

n

What is an administrative role? n My role and staff – we are the hired staff of the council. In other words, rather than hire staff, they (Legislature) put them with us so we could be their staff. We carry out their work, their recommendations.

You follow through on the council’s recommendations.

Right. For example, they’ve made recommendations for funding through the Legislature. My job is to go meet with the budget chairs and the governor’s finance director and try to get those (funding requests) included in the budget.

n

Was there staff added to the workforce development division or just consolidation? n Consolidation. The workforce council did not have a staff and still doesn’t. We have become that staff. “We” being myself and a handful of people.

How many people? n I have six people, including me. That’s again, mostly administration, like setting up a meeting, making sure all the agendas are ready – that kind of thing. My role, I would go and work with the Legislature. They (workforce council) make recommendations to the state superintendent. They make recommendations to the governor. They make recommendations to the chancellor. I work to follow up with those individuals and help them as they respond back to the council.

How many people do you oversee in the workforce development division?

When you put AIDT and the 38 or so people that were involved in the WIOA and (those who were) formerly with ADECA (Alabama Department of Economic and Community Affairs) – that staff has now moved to commerce – when you put all four pieces together, it’s just under 200 staff.

“I think that’s why I have this assignment, to try to get these programs that

n

Is there an annual budget for the workforce development division or is it part of the Commerce Department’s overall budget?

AIDT has a budget, and included in that are some of the expenses for the regional workforce council staff, and there are four of them. The WIOA staff are federally funded, and there are some General Fund dollars for them and that is part of commerce budget. Of course, AIDT is an independent budget.

n

have now been added – to a high level like the AIDT is in efficiency and productivity and developing the workforce.”

How much is the AIDT budget? n

The 2016 budget is a little over $53 million.

What is the workforce development budget?

I think you’re looking at $1.5 million. The federal budget for WIOA is $37 million. It’s all funded separately. There is a chunk of money we’re managing; if you put it all together and include the feds, you’re looking at around $100 million.

n

– Ed Castile, Deputy Secretary of Commerce in charge of the workforce development division, as well as the director of the Alabama Industrial Development Training program

Continued on page 14

May 2016 montgomerybusinessjournal.com

13

“When you look at the regional workforce councils – there’s 10 of those – we’re going to reconfigure the map and reduce that a little and have it more focused in the population centers and industry clusters.”

– Ed Castile, Deputy Secretary of Commerce in charge of the workforce development division

Continued from page 13

The workforce development programs were officially consolidated into one division (on) Oct. 1, 2015. How has the consolidation improved workforce readiness and has it made it more streamlined?

We’re actively in the transition. The transition of people is complete. What we’re doing now is assessing all the processes – federal and state – of these programs. As we realign those – we re-engineer them if you will – and refocus, that’s where your efficiencies come in. One of my assignments is to take some pages of the AIDT playbook and use those here. I think that’s why I have this assignment, to try to get these programs that have now been added – to a high level like the AIDT is in efficiency and productivity and developing the workforce. That’s what we’re working on now. It is a little early to say that (we’ve succeeded) because we haven’t. We are in the throes of getting that operation started and done. We’re giving ourselves 10 to 12 months.

n

Is that 10 to 12 months from last October?

No, probably from January. We would like to be (there) by June next year, which is more like 18 months, and the reason we’re looking at that … For the state part of that, we are looking at the end of the year. The federal stuff is a totally complicated thing. Their year runs from July 1 to June 30. We will not be done by this June. For the state stuff, I would love to be through by October, but my guess is it will be more like December.

I want to have all the state stuff like I like by December or so. The federal stuff just can’t possibly be done before June of next year.

n

You talked about bringing these programs up to the level of AIDT. What are the programs lacking and what it will take to improve them? n The governor’s vision is to have the locals making decisions about what needs to happen with the workforce in their area. When you look at the regional workforce councils – there’s 10 of those – we’re going to reconfigure the map and reduce that a little and have it more focused in the population centers and industry clusters. They’re currently just … I don’t know how they got divided. It doesn’t focus on the things that drive this state like the business clusters and population centers.

We’ve got to redesign to focus on those areas.

After the reconfiguration, how many regional workforce councils will you have?

What we’ve been saying is no less than six and no more than nine. My guess is seven or eight.

n

Are you talking about being more focused on the 11 sectors in the Accelerate Alabama program, such as automotive, aerospace, agriculture, forestry products, chemicals and biosciences?

Right. We’re aligning it with that plan. That’s exactly what we’re doing. That’s what started all of this was

n

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Montgomery Business Journal May 2016

the accelerate plan. Then the governor created his workforce council, who made recommendations a year or so back to the governor and said, “You need to streamline these things. You need to have better alignment. The (programs) will be more efficient.” And that’s exactly what we’re doing. We’re taking those steps that were recommended by the council, but all the focus began to take shape when they created the accelerate plan. In those industry clusters – those 11 sectors – were obviously a part of it. Then our commuting patterns … We know where the industry is. We know where the population is. How do people get there? Are they commuting? What are the patterns?

That’s what we’re researching and studying as we redraw the map. We want those councils out there to say, “We have needs in this area because we’re mostly an aviation area or shipbuilding or we’re mostly automotive or we’re mostly aerospace and missile defense or we’re mostly steel making.”

That focus was missing?

The drivers haven’t been those areas. I think that we’re a state that’s catching up. We’re growing fast.

We get automotive and gosh, look at what happened to automotive in just a short space. We’re the fifth-largest manufacturer in the country. (Alabama is third in the U.S. in vehicle exports.) A lot of people have really good jobs. As we continue to need workforce we’ve got to make sure that we’re smartly and intelligently getting our workforce trained and developed in the areas that they are actually needed, so when we need to fill a vacancy at any of our existing companies or we need to have staff for a new one, then we have what we need. That’s what has been lacking. We’ve been (able) to handle it because we’ve had plenty of people. Now most people have a good job, so we don’t have as many to offer – so what we do have, we’ve got to make sure we’re using and managing wisely.

n

and business approach to helping those companies instead of a government approach. Any time you say the federal government, the first thing you think of is government. We want to change that, because in commerce, we’re a business agency. The idea is that we want that whole focus to be (a) business focus and less cumbersome and less complicated and userfriendly. The new law gives us that opportunity, and now that we’ve moved into commerce, we’re refocusing on the staff to be responsive to business and listen to that need and drive those millions toward those solutions.

They’re good programs. They met needs, but they have sort of been all over the map.

More of a laser focus. n

A laser focus – targeted vs. not.

What does success look like and what does the Workforce Development Division look like in five years?

Success is a workforce system that any citizen, student, parent, trainee, worker can go on a website and this web portal, and in two clicks, get their answer for whatever it is they need. Second to that, a business, an industry, a retailer, a law firm or a bank can go on this website and this portal, and in two clicks, get an answer as to where their resources are for training assistance or for finding their next employee. The third part is that all the training resources and programs can go on there (website) and look at data through a data system that shows at least an aggregate where the workforce is and what the workforce capabilities are.

And where we’re lacking because of new business or new technology, then we focus our funding on how to fix that problem. We’re going to drive that program along with a lot of help, but we’re going to be the drivers of that piece. n

n

Are there new workforce development programs coming soon?

Our current focus is to make sure what we have is functioning the way they should and efficiently – that we’re maximizing what they are. There are some really good programs. AIDT is certainly a good one and I’m always going to be proud of that.

n

What are some of the other “really good programs?”

This whole thing with WIA, which is now WIOA. That was a big change. The feds changed their own focus and that is helping us focus on business. The new law purports to be more business-friendly, more userfriendly. We in commerce are giving it a business look

n

May 2016 montgomerybusinessjournal.com

15

WHERE IDEAS GET TOGETHER High-tech hub houses creative community

by David Zaslawsky

The three houses on Clay Street, behind The Heights apartment complex of 164 units, were nearly torn down. Those three houses got a reprieve when city officials told some people interested in establishing a high-tech hub for start-ups.

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Montgomery Business Journal May 2016

There was an effort in the tech community “to come together and hang out and collaborate,” said Adam Warnke, a chemical sales engineer during the day.

He said people needed “a central location – a tech hub – so we would be able to hang out, collaborate with like-minded people and bring the creative community together.”

He and others began looking at properties and the city and its Development Department recommended three houses on Clay Street, overlooking the Alabama River.

Entrepreneurs Adam Warnke and James Weddle bought three houses on Clay Street to create a tech hub called Advancing Innovation with Regional Resources, which is better known as AIRR.

“We thought it was the perfect fit,” Warnke said about the historic houses in the Cottage Hill community.

Warnke and fellow entrepreneur James Weddle bought those three houses in July for $405,000 and expect to invest about $25,000 on renovations.

and private desk. Monthly office rates are $550 for 160 square feet; $650 for 190 square feet; and $750 for 240 square feet. The offices are leased for 12 months and include furniture. There is a shared conference room, kitchen and common area.

Now there is that centrally located tech hub and the three houses are part of AIRR – which is Advancing Innovation with Regional Resources – growing the high-tech sector organically vs. recruiting companies to Montgomery.

“Every step we take in this technology writes our history of the tech-savvy systems of the city, whether it be connections to the world or connecting locally,” Montgomery Mayor Todd Strange said at the announcement of AIRR’s plans for the three houses.

The website states: “The place in Montgomery to meet, work, build, and launch your business, product, or idea.”

One of the Clay Street houses will be an Art House, where Montgomery Art Guild will be housed and artists will work. There will also be a coffeehouse, a biergarten in the back and loft apartments. The coffeehouse is expected to open by early summer and will be operated

by Cody and Laura Bell, owners of Market Town Coffee and Goat Hill Coffee Roasters.

There are three office memberships for the AIRR properties: $50 a month, $125 month and $500 a month, with additional options for a business address

Another property is the Design House. “If you’re a start-up and looking for an office to house three or four of your guys, we’ve got plenty of room for you here,” Warnke said. There will be a learning center in the basement.

Continued on page 18

May 2016 montgomerybusinessjournal.com

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Continued from page 17

The third house is the Build House, which Warnke also called the Launch House. It will have co-working space and “we’ll house an accelerator,” he said. It will have “some living options,” Warnke said. “In the accelerator, we will provide the people – space, expertise and support for those who have a business idea, app, etc., to bring it from concept to take-off. It’s similar to the idea of a business incubator, but as the name suggests, the timetable for getting the business off the ground will be accelerated – somewhere around 90 days.”

Intelligent Designs, a software company, is a tenant in the Build House and several freelancers are using the co-working space.

“It starts with connecting dots and you start trusting each other and good things can happen,” Weddle said.

He called the three houses “an economic garden.”

“These are dynamic young men and women who have a great idea,” Strange said. The city will help “in every way we can” for them to be successful. Strange pointed out that renovating those three houses is “revitalizing this particular area.” n

Adam Warnke

LOFT APARTMENTS AVAILABLE AT AIRR SITE

by David Zaslawsky

There will be five loft apartments in the AIRR development on Clay Street, including four in the Build House, which is also known as the Launch House.

Each loft apartment at the Launch House will have a bedroom and bathroom in addition to a common area and kitchen space shared by the co-working space downstairs. The loft apartments are $550 a month on a short- or long-term lease.

In addition to those four, there is a one-bedroom, one-bathroom loft apartment in the Art House with a living room and kitchenette. The monthly rent will vary from $750 to $1,000 depending on the length of the lease.

The Art House already has a short-term tenant while the other four loft apartments were not available until early May. The owners plan to use Airbnb to rent the loft apartments as well. n

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May 2016 montgomerybusinessjournal.com

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FEASTING ON

PORK & POLITICS

by David Zaslawsky

photography by Robert Fouts

It’s almost as if the Montgomery Area Chamber of Commerce inaugural Pork ‘n’ Politics networking event was designed for the Capell & Howard law firm.

Almost as if. Consider that Capell & Howard is the Alabama representative for a network of law firms – State Capital Group Legal – that helps clients “navigate through the governmental regulatory process, lawmaking process and those kinds of things that affect their businesses,” said Lister Hubbard, an attorney and shareholder with Capell & Howard. There is a network of law firms in each of the state capitals and the organization is now worldwide.

“We represent clients both in government and also those who deal with the government in all levels with the laws, regulations, rules that affect how people do business,” Hubbard said.

Maybe it’s not that surprising that Capell & Howard sponsored Pork ‘n’ Politics. “The Legislature is in session and everybody is very focused on our state and local governments right now,” Hubbard said about the mid-April event at The Warehouse at Alley Station in downtown Montgomery. “It brings us all to that point of interest so it’s a good time of the year for something like this.”

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Montgomery Business Journal May 2016

“I think it’s good for all of us – both the businesses and the representatives – to know the officials better; who to contact; who to work with as they work through different projects or challenges that they have in their businesses.”

He said success for the firm “is a level of enthusiasm” and not the number of people who attend. “For me personally any place where they’re serving pork barbecue is a huge draw. Let me say for the record, the only pork I’m interested in is barbecue pork.”

The firm, which was planning to have a number of partners attend Pork ‘n’ Politics, benefits from the sponsorship because their attorneys work with elected officials on behalf of clients, Hubbard said. “It’s directly impactful for what we do. It’s all about relationships in terms of doing business so it helps that process a good bit. We’ll know a fair amount of the officials and the businesses that are gathered together,” he said before the event. n

There was plenty of food, music, drinks and conversation at the Pork ‘n’ Politics networking event.

May 2016 montgomerybusinessjournal.com

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A NEW WAY TO

CONNECT

by David Zaslawsky

PARTNERSHIPS PAVE WAY FOR FREE DOWNTOWN WI-FI

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Montgomery Business Journal May 2016

T

Top: Magi Thomley Williams, public relations manager for Wind Creek Hospitality. Bottom: Montgomery Mayor Todd Strange

Wise CEO Joseph Woollard saw there was a need for high-speed internet in rural areas, so his company started working in Ramer, Pike Road and Prattville.

His work was noticed by Clay McInnis, president of the Downtown Business Association in Montgomery, who was interested in putting in Wi-Fi downtown.

“We’ve always said, never let money get in the way of the vision, but it gets in the way of time – the time is right for us to do this,” Montgomery Mayor Todd Strange said at an announcement for free downtown Wi-Fi. It’s free for visitors and residents and businesses, but Wind Creek Hospitality and the Montgomery Riverfront Development Foundation are funding the project.

“We are thrilled, because every city that is progressive across this country is developing their downtown centers, and that is exactly what we’re seeing here today with this announcement,” said Leslie Sanders, chairman of the Montgomery Riverfront Development Foundation. “It’s things like this that attract people to live and to work and to visit down here,” she said.

“Free high-speed internet is an economic driver – bringing more visitors and more effective business transactions,” said Magi Thomley Williams, public relations manager for Wind Creek Hospitality. “Free Internet is a win for students. High-speed internet downtown is a win for businesses serving downtown.

Free internet service is a win for visitors and residents.

When Wind Creek Hospitality can help make the communities where we live and work better places – that’s a win for us.”

Leslie Sanders, chairman of the Montgomery Riverfront Development Foundation

The system was scheduled to be launched at the Montgomery Biscuits’ home opener at Riverwalk Stadium, the site of one of 24 access points to deliver the free Wi-Fi. After franchise agreements were finalized with the city and Alabama Power, it would take no longer than three weeks to complete the work, said Woollard, who has two full-time employees. His company is installing the system and providing the internet connection.

Continued on page 24

Sanders, who is vice president of the Southern Division for Alabama Power Co., said having Wi-Fi downtown helps with recruiting companies to Montgomery and gives “a better quality of life” for citizens.

May 2016 montgomerybusinessjournal.com

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“We are thrilled, because every city that is progressive across this country is developing their downtown centers, and that is exactly what we’re seeing here today with this announcement.”

- Leslie Sanders, chairman of the Montgomery Riverfront Development Foundation Continued from page 23

“The partnership between Wind Creek and the city to get this Wi-Fi program off the ground, I think is a big game-changer for not only downtown, but for the whole region itself,” McInnis said. “It puts an exclamation point on where we put our priorities going forward.”

He credited partnerships that “bridged the gap so that we can put Montgomery’s innovations forth.” McInnis said that free high-speed internet downtown “could not have happened without a lot of collaboration.

Collaboration and aggregation is really what our next economy will look like.”

Sanders praised the Poarch Band of Creek Indians, who operate Wind Creek Hospitality and three casinos, including Wind Creek Montgomery and Wind Creek Wetumpka. She also praised the City of Montgomery, Riverfront Foundation and the Montgomery Area Chamber of Commerce. “The fact that we now have downtown Wi-Fi is a phenomenal step because …

I would think that (for) any vibrant, growing place, that is a priority.”

Strange said in a statement: “Whether it’s building Alabama’s first internet exchange or launching free downtown Wi-Fi, public-private partnerships are playing a huge role in spurring growth and inspiring innovation in Montgomery, along with enhancing our overall quality of place.” n

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Montgomery Business Journal May 2016

The New Big Man on Campus Auburn University at Montgomery names chancellor

by David Zaslawsky

Carl A. Stockton has been named the new chancellor for Auburn University at Montgomery.

Stockton, who has been provost and senior vice president for academic affairs at the University of Houston-Clear Lake since 2007, will start July 1. He was named after a unanimous vote of the Auburn Board of Trustees and after a national search. He will follow John Veres, who was AUM chancellor since 2006 before announcing his retirement last year.

“Dr. Stockton’s background and vision make him a good fit for AUM’s strategic direction,” Auburn University President Jay Gogue said in a statement.

“We’re grateful for Dr. Veres’ leadership and look forward to Dr. Stockton building upon the existing foundation.”

During his time at the University of Houston-Clear Lake, Stockton increased degree offerings, improved opportunities for faculty research, cultivated industry and academic partnerships, and increased online learning opportunities. Stockton was responsible for all aspects of academic affairs, including enrollment management, student services, information resources and technology, institutional effectiveness, sponsored programs and research, and international admissions and programs. He has obtained more than $35 million in external funding during his 32-year career.

Prior to being provost and senior vice president for academic affairs, Stockton spent three years as dean and Houston-endowed chair for education in the University of Texas at Brownsville’s School of Education.

He also has been department chair of health and applied human sciences in the University of North Carolina at Wilmington’s College of Art and Sciences and department chair of exercise, sport and health education in Radford University’s College of Education and Human Development.

“AUM is well-positioned to continue to excel in service to students and the State,” Charles McCrary, president pro tempore of the Auburn Board of Trustees, said in a statement. “We welcome Dr. Stockton to AUM.”

Carl A. Stockton

An AUM selection committee, co-chaired by College of Business Dean Rhea Ingram and Vice Chancellor Katherine Jackson, started the search for a new chancellor last year. After reviewing applicants, the top candidates visited campus to meet faculty, staff, students, alumni and community partners.

“The search committee and multiple stakeholders were enthusiastic about Dr. Stockton’s result-proven background and experience on a similar college campus,” Ingram said in a statement.

Stockton received a bachelor’s degree and master’s degree in health education from the University of Florida. He received a doctorate degree in health education from the University of Tennessee. n

“Dr. Stockton’s background and vision make him a good fit for AUM’s strategic direction.”

- Auburn University President Jay Gogue

May 2016 montgomerybusinessjournal.com

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Member Profile

BABY STEPS

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Montgomery Business Journal May 2016

The NameDropper/Storkland flourishes with upscale products

by David Zaslawsky

photography by Robert Fouts

Sid Schroll can still recall those days when he would deliver and assemble baby furniture after working all day at Storkland in the Eastdale Mall back in the 1970s and 1980s.

He and his wife Shea would work until 8 o’clock, and that’s when Sid Schroll would begin his deliveries and assemblies. “We couldn’t afford a delivery guy,” Shea Schroll said. “We thought we might make the business work when we could hire a guy to make our deliveries.”

The business has worked out – quite well, actually.

The Schrolls, along with their son Brian Schroll and his wife Gina, own The NameDropper/Storkland at EastChase. It’s two businesses under one roof, is how Shea Schroll described it. “We’re always here,” Shea Schroll said about herself, husband and son.

Her daughter-in-law takes care of her children as well as working at the store.

“Storkland has all the nursery items for a new baby – the cribs, car seats, strollers, high chairs, bedding for the cribs,” Shea Schroll said.

Meanwhile, The NameDropper offers children’s clothing and shoes as well as some gift items and children’s toys. The Schrolls bought The NameDropper in 1984. It was located at the Courtyard shopping center on the bypass. It had originally opened in 1941 in downtown Montgomery as Bronson’s, so the Schrolls recently had a 75th anniversary celebration.

The Schrolls combined the two stores under the same roof in 1987 at the Stratford Square shopping center.

They were one of the early pioneers of the EastChase outparcels – the third after Wendy’s and Chick-fil-A. “We had been trying to purchase land in a retail area so we wouldn’t have to rent anymore,” Shea Schroll said. They had been paying rent for 27 years, according to Sid Schroll. “We wanted to own our own land and building.”

They also moved closer to their clientele for upscale baby furniture, clothes and shoes. The baby furniture can range from $200 to $900 for a glider while the popular hand-made lace heirloom dresses are $130 to $400.

Sales have doubled since the 2003 move to EastChase, and sales have nearly returned to their pre-recession levels. Customers did pull back during the Great Recession. “I think they still want the nicer things – they just didn’t buy as many,” Shea Schroll said. She recalled one customer – a grandmother – who bought five outfits and three toys for each of her grandchildren one year. After seeing her retirement nest egg collapse, the grandmother bought two outfits and one toy for each grandchild.

The NameDropper accounts for about 60 percent of the sales, Sid Schroll said, with the Storkland accounting for the other 40 percent. Children’s clothing accounts for 45 to 50 percent of their business and children’s shoes account for about 10 percent of sales.

“Shoe sales are increasing,” Shea Schroll said. “We fit and sometimes it takes six months to train the girls how to fit a baby in shoes.” She said that The NameDropper “is the only place in town” that has a trained employee fit a baby’s shoes. Employees measure a baby’s feet and try on multiple shoes, Shea Schroll said. She said they may also be the only place in town for heirloom dresses and upscale baby furniture.

The longevity of the business means that the Schrolls have third- and fourth-generation customers. Sid Schroll said that he delivered a lot of baby furniture to customers’ grandparents and now the furniture, which is handled by Brian Schroll, is delivered for the grandchildren.

NAME

THE NAMEDROPPER/ STORKLAND NUMBER OF EMPLOYEES

20 LOCATION

EASTCHASE HOURS

9:30 A.M.-7 P.M. MONDAY-SATURDAY; 1 P.M.-5 SUNDAY WEBSITE

NAMEDROPPERKIDS.COM

Most of their full-time employees have been working for 10 to 15 years and the store manager has been with the Schrolls for 30 years. “They know the products well,” Shea Schroll said. “They care about the business. We couldn’t work it without them.” Sid Schroll said that the employees “give the customers a personal touch, which is rare.”

There was talk about opening another store outside the area, but now there are no plans for a second location. “This store takes all of us working to keep this boat floating,” Shea Schroll said. nn

May 2016 montgomerybusinessjournal.com

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A VANTAGE POINT FOR BUSINESS

by David Zaslawsky

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Montgomery Business Journal May 2016

photography by Robert Fouts

DOWNTOWN DRAW BRINGS TENANTS TO RSA DEXTER AVENUE BUILDING

He could have pointed to the location on Dexter Avenue near the Capitol or the RSA Datacenter on the sixth floor for two of the reasons firms are leasing office space at the RSA Dexter Avenue Building.

Yet, instead, Joe Poole, director of real estate for the Retirement Systems of Alabama, said the top two factors are the 350,000-square-foot building itself and downtown Montgomery.

The $190 million building, which at one time housed the Alabama Supreme Court that is now enclosed in glass, and was once a Masonic Temple, is an absolute showpiece complete with artwork and a four-story lobby/atrium with limestone walls and a grand staircase.

There is nothing like it. It’s an incredible conversation piece and sure to leave a lasting impression on any client visiting a tenant. Sure, RSA built the much larger 23-story RSA Tower with nearly 615,000 square feet of office space, but the Dexter Avenue Building is truly unique. “In our opinion, what we have compared to what was available downtown – this is the best of the best,” Poole said.

A new building offers what Poole called “a blank plate,” which enables tenants working with the RSA’s design team to “create space that uniquely meets their needs.

“When we have a new product, that in itself creates buzz.”

– Joe Poole, director of real estate for the Retirement Systems of Alabama

There are often times that businesses grow in a space and become inefficient over time, and I think that’s what happened to a lot of these firms,” he said about current tenants.

“When we have a new product, that in itself creates buzz,” Poole said. “RSA had built a solid reputation as a landlord.”

Downtown is the key. Poole said that has been the major drawing card – firms wanting to return to downtown or come to downtown. “I think there were a lot of businesses that had moved out east and with the Continued on page 31

Staying current is good.

Staying ahead is better.

That’s just the way we do business.

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May 2016 montgomerybusinessjournal.com

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“RSA had built a solid reputation as a landlord.”

– Joe Poole, director of real estate for the Retirement Systems of Alabama

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RSA DATACENTER

Montgomery Business Journal May 2016

Dr. David Bronner is CEO of Retirement Systems of Alabama (RSA).

redevelopment of downtown and the increase in nightlife and activities and restaurants to enjoy during the day – these businesses started considering coming back to downtown,” Poole said. “I think that’s what we’re seeing.”

Seven of the 20 tenants through March were law firms, including some of the state’s largest by number of attorneys: Bradley Arant Boult Cummings, Maynard Cooper & Gale, PC, and Burr & Forman, LLP. The first tenant was Community Newspaper Holdings Inc., and its lease began a few months before the building’s official dedication on Oct. 27, 2011. About a year later, the RSA Datacenter was added. “It’s been a convenience for those that are in the building to not have to build out data facilities within their space,” Poole said. “They can be within our building and have their data here on the sixth floor.”

The building is about 60 percent leased, which is behind the pace of other RSA office buildings. “Usually with our office buildings, we like to within a year or two be where we are now – 50 percent range – and

usually (after) four or five years you like to be what the industry considers is full-leased at 90 percent,” Poole said. The Great Recession upended that timeline.

“We started feeling the effects of the downturn right when the building was dedicated,” Poole said. “Timing hurt us bad. That’s taken us aback. We are probably a couple of years behind where we would like to be, but we are pleased with where we are. I think that the recovery in the real estate market is starting to gain some momentum.”

He expected three more tenants to sign leases in April and combined would have 30,000 to 35,000 square feet of office space. The range currently is some tenants with about 2,500 square feet to tenants such as BB&T and Community Newspaper Holdings Inc. with between 45,000 to 60,000 square feet.

“It’s very important what your tenant mix is … each subsequent tenant becomes associated with the other tenants because they’re all living together here in the building,” Poole said.

Those living there enjoy “fantastic” views, Poole said, of the Capitol, Dexter Avenue, Dexter Avenue King Memorial Baptist Church and from the back of the building: Alabama River and Riverwalk Stadium.

“There’s not a really bad vantage point,” he said. nn

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May 2016 montgomerybusinessjournal.com

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p

Hodges Warehouse + Logistics is led by (from left) Paul Hodges, vice president, shareholder and broker; and CEO Lance Hunter.

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Montgomery Business Journal May 2016

ROOM TO GROW

by David Zaslawsky photography by Robert Fouts

HODGES WAREHOUSE + LOGISTICS LOOKS TO BECOME NATIONAL COMPANY

May 2016 montgomerybusinessjournal.com

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Not long ago, Hodges Warehouse + Logistics turned down a request from an existing customer to expand to Detroit.

The firm said no “because we didn’t feel like we were ready for Detroit,” said Lance Hunter, CEO of Hodges Warehouse + Logistics. That is now, but within five years the answer will or would have been yes. That’s because the goal is to “become a national company,” Hunter said at the firm’s largest warehouse – the site of the former Winn-Dixie distribution center.

The complex is about 800,000 square feet and includes two warehouses, with the largest one about 450,000 square feet.

After doubling its revenue in five years to close to $14 million last year, Hodges becomes a national company the same way it’s been on an accelerated growth pattern – the automotive sector.

In five years the firm could have warehouse space in not only Detroit, but also Kansas City, and sooner will expand to Mississippi and Opelika to serve automotive clients. The firm has clients that supply parts to Hyundai in Montgomery; Kia in Georgia; Nissan and Toyota in Mississippi; and Chrysler in Detroit. “Everybody is interested in supplying as many OEMs (original equipment manufacturers) as possible,” Hunter said.

Ena Piao, who handles international operations and finance for Hodges Warehouse + Logistics, has been instrumental in helping the company grow.

She is flanked by CEO Lance Hunter (left) and Paul Hodges, vice president, shareholder and broker.

Most likely, Hodges would lease warehouse space in those expanded markets to service its customers; pick up products; maintain inventory and transport the parts if requested.

“We’re in a growth mode,” said Paul Hodges, vice president, shareholder and broker of the 100-yearold family-owned company. “We’re always looking for opportunities for new business here.”

Another way to expand is helping recruit Korean and Chinese companies to Montgomery, and Hodges has helped several thanks to a key asset – Ena Piao, who handles international operations and finance for the firm. She speaks Chinese and Korean.

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Montgomery Business Journal May 2016

Revenue is forecast to grow 10 percent to 20 percent this year and again in 2017 thanks to automotive projects with Hyundai Motor Manufacturing Alabama’s plant in Montgomery as well as Kia’s plant and Nissan’s facility in Mississippi.

“Everybody is interested in supplying as many OEMs (original equipment manufacturers) as possible.”

Hyundai has been especially lucrative for Hodges because of all the suppliers nearby, and Hodges, which has 15 trucks and 70 trailers, is constantly trucking parts to suppliers. “We’ll drop off a trailer and pick up a full one and drop it off,” Hodges said. “We just stay on that route.”

– Lance Hunter, CEO of Hodges Warehouse + Logistics

When HMMA added a third shift of workers that acutely impacted its supply chain, more parts were needed as production rose to about 400,000 units a year. And now that Hyundai is adding Santa Fe production, that means new parts for suppliers – and that benefits Hodges, which leases space to suppliers; loads products; maintains the inventory; and trucks those parts if requested on a first-in, first-out basis.

An increase in parts results in more warehouse space and more logistical support. Adding the Santa Fe production will also bring in some new suppliers, according to Hunter.

The bulk of the firm’s revenue – 70 percent – comes from warehousing and logistics. Although less than 10 percent of the revenue is generated from real estate that segment is growing as well. The company provides brokerage services for clients – selling warehouses, industrial and commercial properties, according to Hodges. The commercial real estate sector “is improving,” Hodges said.

If that’s not enough, the company is also looking to expand by adding sequencing and light or simple assembly. “It’s called value-added services,” Hunter said about putting the products in the right sequence and light assembly that would require light machinery or power tools. “Somewhere, somebody is putting that headrest on a seat,” Hunter said as an example of light assembly. “There are companies doing that all over. We’re very hot on that. We have worked with several start-ups that do exactly that.” One of those companies grew to the point they bought their own building, Hunter said.

About 70 percent of the company’s warehouse space at its 17 facilities is leased while the remaining 30 percent Hodges operates as a third-party logistics hub.

Hodges developed Lagoon Business Park on the bypass, where its company headquarters is located.

Across the bypass, Hodges is developing a mixed-use park on 100 acres. WOW, a Frito-Lay distribution center and American Tire Distributors are located there and a Mapco Express is coming soon.

The firm’s residential real estate segment has a goal of doubling its agents to 50 by the end of 2017. Exit Hodges Real Estate began about six years ago, and just this past October, the firm opened office space on Dexter Avenue next to Chris’ Hot Dogs to accommodate the growing agent network.

Continued on page 36

There’s always room to squeeze in a light assembly project when you operate 4 million square feet of warehouse space in Montgomery; another 600,000 square feet in Dothan; and 150,000 square feet in Prattville. “All our buildings have nooks and crannies, so to speak,” Hunter said.

May 2016 montgomerybusinessjournal.com

35

“We’re always looking for opportunities for new business here.”

– Paul Hodges, vice president, shareholder and broker of Hodges Warehouse + Logistics

Continued from page 35

“We’re optimistic about the residential real estate market,” Hunter said. “We definitely think that the residential real estate market is just now turning positive. Inventory is very low. There is a lot of pent-up demand out there from 2008.” The firm has about 150 properties listed.

“We want to build our (residential) real estate operations up and be a bigger player in the market – top 10,” Hodges said.

The company has been operating a small business services division for about three years. It was added because “we have a large accounting staff,” Hodges said. Some of the services offered are tax planning and preparation; strategic business planning; new business formation; part-time chief financial officer services; and handling day-to-day financial affairs for the elderly. n

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NAME CHANGE

Alagasco will become Spire in 2017

by David Zaslawsky

The roots of Alagasco – short for Alabama Gas Corp.

– have been around for 150-plus years. The roots of Missouri Gas Energy have been around for 150 years and the roots of Laclede Gas Co. have been around for 150-plus years.

During that span, the names have changed. Back in 1852, there was a Montgomery Gas Light Co. that acquired Birmingham Gas Light Co. In 1948, Alabama Gas Co. and Birmingham Gas Co. merged to form Alabama Gas Corp., and that company became Alagasco Inc. in 1974.

Now, pending shareholder approval – all those names will disappear and a new name – Spire – will emerge.

The Laclede Group, the parent company of Alagasco, Missouri Gas Energy and Laclede Gas Co., has grown to become the country’s fifth-largest publicly traded natural gas company after adding almost 1 million customers the last three years.

Those customers were in Alabama as well as western Missouri. The firm’s enterprise value has quadrupled to $4.5 billion.

The name is changing “because we are a growing company and we have multiple names in multiple locations,” said L. Craig Dowdy, senior vice president of external affairs, corporate communications and marketing for Spire.

“We’re trying to unite under one name, and in this case it’s Spire, to bring all those companies together with one mission, one culture, one strategy to deliver energy … and through that process we put a downward pressure on the cost and rates, because anywhere there can be shared services between those three utilities, we do that.

“Customers therefore would have downward pressure on costs as opposed to three independent utilities having to operate with their own engineering department; their own accounting department; their own set of executives and management. This is a way that also saves money for customers.”

The name change for Alagasco will actually occur sometime next year, but no date has been finalized.

There will be bills with the new name as well as new uniforms and trucks identified with the energy company.

“Our name reminds us there are no limits to what we can achieve together, because when you champion people by delivering energy that inspires – everything is possible,” Suzanne Sitherwood, president and CEO of The Laclede Group, said in a statement.

Jessica Willingham, vice president of communications and marketing, said in a statement, “Spire is about bringing energy and people together. It’s about the energy we provide and how that energy empowers our customers.”

It is a big deal for a company to change its name, and The Laclede Group “went through a lot of analysis” to gauge customers’ reactions, Dowdy said. The company actually conducted a survey without specifically saying there would be a name change. About eight in 10 of the Alagasco respondents said they would have no concern about a name change, Dowdy said.

Another result is implementing the best practices from each of three companies across the organization, which “makes your process more efficient; provides better service to customers; and does so at a lower price,” said Dowdy, who has been involved in the energy field for 35-plus years. He practiced law for 25 years with a large international firm and worked with energy clients.

He has been with The Laclede Group for three years.

“We think it helps facilitate being able to provide that service (in) a better manner than has been done so far.”

The Laclede Group, which has its headquarters in St. Louis, also has a non-regulated and alternative fueling business in South Carolina. n

“We’re trying to unite under one name, and in this case it’s Spire, to bring all those companies together with one mission, one culture, one strategy to deliver energy …”

– L. Craig Dowdy, senior vice president of external affairs, corporate communications and marketing for Spire

May 2016 montgomerybusinessjournal.com

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TJ Williford is owner and broker of Partners Realty.

The Center of Everything 79 COMMERCE ST. BOASTS ONE OF TOP ADDRESSES

by David Zaslawsky

photography by Robert Fouts

Barely two minutes into an interview about the mixed-use development 79 Commerce St., the subject of location comes up.

It’s unavoidable because 79 Commerce St. is all about those three frequently-used real estate words: Location, location, location. The development, which features 54 residential units on top of first-floor retail space, is located in downtown Montgomery. Perhaps some would even say the heart of downtown.

It’s next door to the Montgomery Area Chamber of Commerce. It’s across the street from the Renaissance Montgomery Hotel & Spa at the Convention Center. It’s across the street from the Montgomery headquarters of BBVA Compass, which is located in a 100,000-squarefoot plus building with 14 floors. It’s almost across the street from The Alley.

It’s a very short walk to Riverwalk Stadium, home of the Montgomery Biscuits’ baseball team, as well as to numerous restaurants and several hotels. It’s a short walk to the Riverwalk Amphitheatre and the Riverwalk and the Montgomery Performing Arts Centre, which is at the Renaissance.

Yes, you could say that 79 Commerce St. has an incredible location, and that’s about what TJ Williford of Partners Realty had to say. The owner and broker of Partners Realty is leasing the units and more than half – 29 – have been leased.

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Montgomery Business Journal May 2016

“The characteristic that sets this property apart from others is its location,” Williford said. “In the real estate world it’s called main and main – right at the center of it all. The convenience of it is unmatched. It’s within walking distance to everything.” He is not exaggerating.

What they are going to get is either a one-bedroom or two-bedroom unit. The square feet for a one-bedroom ranges from 739 to 855 and 1,100 to 1,158 for a twobedroom. There are 45 one-bedroom units and nine two-bedroom units.

“What’s exciting, too, you can go out and sit on your balcony and the views of Commerce Street are very charming,” he said. “You get the sights and sounds of urban living.” And the smells from the nearby restaurants.

The rents for one bedroom range from $1,050 to $1,250 and are $1,350 to $1,550 for two-bedroom units. The units have granite countertops, walk-in closets with a washer and dryer; large balconies; stainless-steel appliances; and a 60-inch Samsung smart television. And, of course, that location thing.

You can live, work and play and not live in a subdivision miles away from downtown. He likes to say “that those interested in living downtown are transitional adults.” Williford quickly added that that is his term.

His explanation is an adult from 24 to 54 who “finds themselves at a period of time in which they may be in transition.” It could be a new job; first apartment from home; newly married; newly divorced or widowed.

“It could be new empty-nesters or (a) single young professional,” Williford said. “It’s exciting to think that this is a period of time which we’re going to try this new thing. This is an exciting opportunity to try something different.”

There are some move-in specials, including free use of the Renaissance fitness center and pool and spa access for the remainder of the year. Tenants with a 24-month lease will receive one free month’s rent in each of those years and there is a one-month free rent bonus for 18-month leases. Tenants with a year’s lease receive a 50 percent savings on one month’s rent.

“We have been especially encouraged by the interest of the military community,” Williford said. Partners Realty will work with military personnel who may be stationed at Maxwell Air Force Base and Gunter Annex for nine months or 10 months, Williford said. n

“It’s within walking distance to everything.”

– TJ Williford, owner and broker of Partners Realty

79 Commerce St. features 54 residential units on top of retail space.

Photo Caption

May 2016 montgomerybusinessjournal.com

39

IT’S TIME TO TAKE A

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79 Commerce St. is located in the heart of downtown Montgomery.

CREATING A ‘DESTINATION LOCATION’

by David Zaslawsky

photography by Robert Fouts

There will be three or four retailers joining Mellow Mushroom at 79 Commerce St. in downtown Montgomery.

While Mellow Mushroom is expected to open in May, talks are ongoing with other retailers, according to Rodney Barstein, executive vice president of Retail Specialists, which is leasing the ground floor.

The Birmingham-based company’s website shows three remaining suites – 3,033 square feet, 3,800 square feet and 4,985 square feet. “We have a couple of interested parties,” Barstein said about the spaces. “We are certainly looking for the types of retailers that would complement Mellow Mushroom and try to make our project a destination location for people that just want to come down and haven’t really decided where they want to eat, but at least there will be a number of different choices …”

Those choices “could be a combination of anything,” Barstein said. “It could be a bar or a brewery or it could be white table cloth/sit down or it could be takeout or it could be a sandwich shop – anything that fits within the area that would complement each other is what we’re looking for.”

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Retail Specialists has been talking to some businesses that have a location in East Montgomery and some that would be new to the area.

The firm’s website states that there are 16,300 vehicles per day on Bibb Street, which is at the intersection of 79 Commerce St. It also states that nearly 11,200 office workers spend a combined $10.2 million a year on restaurants. The average office worker eats lunch at a restaurant three days a week.

There are 12,600 non-office workers, who spend a combined $4.2 million on restaurants, according to the website. Add another $1.2 million for residents and the total per year for the three groups is about $15.7 million. The office workers spend nearly $1.4 million at what the website called drinking places. n

Referred for a reason.

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Montgomery Business Journal May 2016

REPORTER’S NOTEBOOK

by David Zaslawsky

PRESTIGIOUS AWARD The City of Montgomery has won the prestigious 2015 Altus Trophy from the Altus, Okla. Chamber of Commerce.

Since 2010, the Altus Chamber has presented the award to a community for its outstanding support of an Air Education and Training Command base.

“We're incredibly humbled to receive this distinction, but we are even more humbled by the unwavering service and sacrifice of the Airmen who call or have called Montgomery home,” Strange said in a statement.

Col. Andrea Tullos, commander of the 42nd Air Base Wing, which includes Maxwell Air Force Base and Gunter Annex, said in a statement: “The City of Montgomery is truly deserving of this award. The city officials and the business community set the tone, but every member of the community I come across extends a welcoming hand, a warm heart and sincerely asks what they can do to support our military personnel and their families. We're fortunate to be able to call Montgomery home." The Montgomery Area Chamber of Commerce plays an active role with MaxwellGunter Air Force Base, organizing appreciation events, working with Alabama’s congressional delegation on behalf of military needs, and creating community initiatives that benefit the military community.

GREAT THINGS TO COME With the Montgomery Internet Exchange in place, there are some plenty lofty goals, including this one from Boyd Stephens, founder of Netelysis and a network engineer.

He talked about “leveraging the Internet exchange to do something that people have been somewhat shy talking about because they never felt they could deliver it and that’s offering high-speed Internet for all the citizens of Montgomery.

“We think we have a plan; a way to pay for it. We think that we have a strategy, but again we’re going to underpromise and try to over-deliver.”

Montgomery Mayor Todd Strange said: “When I hear Boyd Stephens talk I get excited.” He said that the city “tries to give them (tech community) some resources and get the heck out of the way …”

MILLENNIALS’ IMPACT What’s on the horizon for the city’s Millennials?

According to Montgomery Downtown Business Association President Clay McInnis it’s more coworking spaces; moving to densely populated areas such as downtown.

“And we are thirsty for more data and we’re thirsty for more content and we’re thirsty for more information.”

ATTENTION ENTREPRENEURS Walmart is spending an additional $250 billion over 10 years on products made in America and companies have an opportunity to pitch their products June 28 in Bentonville, Ark. “We are opening our doors and making our buyers available to meet with suppliers with one goal in mind – buy more American products,” Cindi Marsiglio, vice president of U.S. sourcing and manufacturing for Walmart, said in a statement.

The deadline to register for the open call is May 27.

Details are available at www.walmart-jump.com.

Stephens said that people are working on projects for workforce development, talent development and coding academies. He talked about “leveraging some under-utilized talent in our community” and said he was especially referring to women.

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HYUNDAI SETS RECORDS Let’s just say that March was a great month for Hyundai. The Korean automaker set an all-time monthly sales record of 75,310 units, which broke the previous mark of 75,019 set last March. It was also a record-setting first quarter with 173,330 units sold.

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Sonata enjoyed its best month ever with 28,778 units sold. That shattered the previous record of 25,195 units sold in June 2014 – a difference of nearly 3,600 units. The Sonata as well as the company’s Elantra are built at the Hyundai Motor Manufacturing Alabama plant in Montgomery.

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Montgomery Business Journal May 2016

BIG THANK-YOU FOR BEASLEY ALLEN Alabama Gov. Robert Bentley thanked the Beasley Allen law firm for helping the state receive a $2.3 billion settlement for the BP oil spill. Jere Beasley, the firm’s founder and shareholder, said that without Bentley’s direct involvement the state would have settled for pennies on the dollar.

GROUP EFFORT Dozens of organizations worked together to create a fivemile cycling, hiking trail and recreation area through 176 acres of Lagoon Park. It will be a future site for festivals,

events and even competitions.

There was more than 6,000 hours of volunteer work to

complete the trail.

CHURCH BUILDING FACILITY John Stanley, president and broker of John Stanley & Associates sold 25 acres of land on Taylor Road to Church of the Highlands. The church is planning to build a 55,000-square-foot building.

And speaking of dollars, Bentley noted that the state has not paid Beasley Allen. “We’re working on it,” Bentley said and noted that the firm was out money. “One million dollars,” Beasley said from his table.

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43

NEW RESTAURANT COMES TO TOWN It’s common for retailers to choose EastChase as their first location in Montgomery and sometimes it is their first location in the state.

That is the case with Fazoli’s, which planned opened at EastChase and is the company’s first restaurant in Alabama.

The fast-casual Italian restaurant chain has more than 200 sites in 26 states. Its headquarters is in Lexington, Ky.

The Montgomery location will seat 75 and will have a drive-thru. The owner is Rakesh Patel, who also owns two Schlotzsky’s and two Bruster’s Real Ice Cream franchises in Montgomery.

“It is always exciting to enter a new city and Montgomery fits in very well with our strategy to expand in the Southeast,” Fazoli’s President and CEO Carl Howard said in a statement.

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Montgomery Business Journal May 2016

RENT GROWTH, OCCUPANCY RISE Montgomery saw apartment occupancy rate grow last year and there was an increase in rents, according to the Birmingham-based Rock Apartment Advisors.

The Capital City had an overall average occupancy rate of nearly 94 percent and an average rent growth of 286 basis points over 2014, which is almost 3 percent.

The annual survey stated that Montgomery absorbed 381 units from 2014 to 2015.

“The stability of markets in Alabama, Florida’s Emerald Coast and Chattanooga is attracting more investors’ attention

as these groups frequently look outside of the Southeast’s primary markets in search of yield,” Bo Flurry, managing director of Rock Apartment Advisors, said in a statement.

“With an unprecedented amount of capital seeking multifamily acquisition opportunities across the Gulf South coupled with employment momentum in these markets, the region will likely continue to see further growth throughout 2016.”

Other Montgomery findings were: > The Inside the Boulevard submarket jumped from 83.5

percent in 2012 to 97.1 percent in 2015. Rents in the submarket jumped by more than 3.5 percent during that span. > There are 482 units under construction and another 390 units planned at the time of the survey. > Rock Apartment Advisors is a multifamily brokerage firm.

BIG DIVIDEND HIKE ServisFirst Bancshares Inc. increased its dividend 33.3 percent to 8 cents a share. It was payable April 15 to stockholders of record April 11. ServisFirst Bancshares is the holding company for ServisFirst Bank.

May 2016 montgomerybusinessjournal.com

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Member Profile

TRANSFORMATION

Information Transport Solutions diversifies from education focus

by David Zaslawsky

photography by Robert Fouts

Quincy P. Minor (left) is president and chief operating officer of Information Transport Solutions Inc. and Steve Meany is the firmâ&#x20AC;&#x2122;s CEO.

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Montgomery Business Journal May 2016

Information Transport Solutions Inc. has been synonymous with the education sector and until fairly recently with Wetumpka, where its corporate headquarters is located.

The company is becoming more and more diversified, and although its ties to Wetumpka remain as strong as ever, ITS quietly moved equipment early last year to the RSA Dexter Avenue Building in downtown Montgomery.

The equipment was housed at the RSA Datacenter as the company no longer had to store equipment at a datacenter in Atlanta.

“When this opportunity came to Alabama, it was the perfect place,” said Quincy P. Minor, president and chief operating officer of ITS. “We used to house equipment in Wetumpka, Alabama, which had no redundancy or things of that nature.” He said the RSA Datacenter provided both “redundancy and resiliency, so we could provide services to our customers so they would not have any down time.”

ITS has provided support for the Montgomery Internet Exchange infrastructure to enable carriers to attach to the exchange, but the company’s move to RSA Datacenter “had nothing to do with the Internet Exchange,” Minor said. It was all about being at the RSA Datacenter.

A third-floor office – network operations center – followed that about nine months later, and ITS has seven employees in its 2,200-square-foot space. The firm hopes to be fully staffed by the summer, and that would require seven or eight more employees.

There are plans to hire another 10 to 15 people for the Wetumpka office and Minor said that ITS is looking to open an office in the Florida Panhandle. It would open in Freeport, which is about one hour from Panama City, with initially two to three people. “We’re looking to start small and hopefully expand from there,” Minor said.

What’s driving the reduction is a surge in other areas. “The public sector business is growing very rapidly,” ITS CEO Steve Meany said about city and county governments. “We’re providing both a bundled internet and network solution as well as providing their local area network devices in Florida.” He said the company’s commercial business is also seeing “a very healthy growth rate as well. It’s fair to say that both (public sector and commercial) are growing at a tremendous rate.”

ITS has focused on the manufacturing sector in Alabama, according to Meany, and won accounts with Airbus and Mercedes.

One of the key reasons why the firm is growing city and county government business is that it’s helping those entities reduce costs. Another factor is connectivity.

Outside the state’s and Florida’s metropolitan areas, smaller and rural communities lack internet and fiber access. Meany said that “companies like us are able to go outside of the big traditional telecom companies and find ways to get them fiber access” through a thirdparty. Once the fiber is in place to schools, hospitals, industrial parks, retail and community centers, then ITS can provide its services. “It expands the rest of our solutions that are out there,” Meany said.

Those services could include handling a company’s information technology or connecting networks, and providing devices for video conferencing, Wi-Fi access and voice over internet protocol. “Whatever the customer needs,” Minor said. “We come up with solutions – sometimes out-of-the-box and sometimes customized solutions for all of our customers to resolve their technology problems.

NAME

INFORMATION TRANSPORT SOLUTIONS INC. NUMBER OF EMPLOYEES

93; 7 IN MONTGOMERY AND 51 IN WETUMPKA LOCATION

WETUMPKA, MONTGOMERY AND MOBILE CORPORATE HEADQUARTERS

WETUMPKA WEBSITE

ITS-NETWORKS.COM

“If they need staff augmentation we can provide that.

If they just need over-the-phone remote assistance, we can provide that. Or if they need a full-time, onsite technician, we can supply them with a full-time, on-site technician.” n

Getting back to the company becoming more diverse: For years, about 85 percent of the company’s revenue came from the K-12 sector. That percentage was reduced to 63 last year, with a goal of reducing it further in 2016 to be in the 50s, according to Minor.

May 2016 montgomerybusinessjournal.com

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Member Profile

PAWS AND RELAX

Pet Palace Hotels pampers dogs and cats

by David Zaslawsky

photography by Robert Fouts

Kelly Hudson Hellums is owner of Pet Palace Hotels in Pike Road.

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Montgomery Business Journal May 2016

After opening in November 2014, Pet Palace Hotels was in the right place at the right time when Pike Road Kennel closed its doors in Mathew on Dec. 31, 2015.

The closure definitely gave her fledging business a boost, according to Pet Palace Hotels owner Kelly Hudson Hellums.

Her location off Interstate 85 in rapidly growing Pike Road and just a handful of miles from East Montgomery subdivisions is “ideal,” Hudson Hellums said. Her 6,000-plus square-foot facility is next door to Pike Road CrossFit, which is run by her brother Jacob Hudson. You may know her father Joe Hudson – owner of dozens of Joe Hudson’s Collision Center locations in Alabama, Florida and Mississippi. It was her father who sparked the idea of a dog/cat resort when he boarded a dog in Mississippi.

And her business is a pet resort with a lot of pampering included. The pets are called guests and cats are boarded in condos while dogs stay in suites of various sizes. The dogs, who are boarded and the ones in doggie daycare, spend most of their time with their friends outside in a massive outdoor playground with ramps and tunnels – weather permitting. For the dogs who don’t play nicely with others, there are four large, individual runs outside. At least two employees watch the dogs playing outside or inside and often it is three staffers.

There is also a gigantic indoor play area that might be larger than half a basketball court.

Now the guests, according to the website, are escorted to a private area for meals and naps. The dog suites for boarding range from $28 for a 4-footby-5-foot site to $46 for a suite that is 9 feet by 5 feet with $30 and $32 options available. There are crates available for $17 a night. Boarding accounts for about 40 percent of the company’s revenue with grooming and doggie daycare each generating about 30 percent.

Dogs being boarded also participate in the facility’s doggie daycare, which “is a really good deal,” Hudson Hellums said. Doggie daycare, which typically has 24 guests, is $10 for a half day and $12 for a full day. In addition to daily prices, there are weekly and monthly rates.

“When people know they are going out of town, I want us to be the first person they think of as far as boarding,” Hudson Hellums said. She wants people going to a soccer tournament or going to the beach for a weekend to bring their dogs here. Right now, the business is seasonal with busy weeks between Thanksgiving and New Year’s when she could board 65 or more dogs and cats. Summertime is fairly steady, but not as full as peak holiday weeks. Spring break is another hectic time.

With 47 suites for dogs, the facility can handle 96 dogs – two in a suite – plus there are 25 crates and nine cat condos.

She said she frequently is asked how many times the dogs are brought outside. “Well, they stay out,” is her answer compared with a veterinarian’s office, which may take boarded dogs outside two or three times a day. “Everybody is out playing.”

NAME

PET PALACE HOTELS EMPLOYEES

10 FIRST OPENED

Pet Palace Hotels “is extremely different than a vet’s office, according to Hudson Hellums.

2014

The primary difference – there are no sick dogs at her business while veterinarians’ “main concern is sick animals,” Hudson Hellums said. “We’re not a vet’s office. We focus on healthy and well dogs.”

DOG/CAT BOARDING, DOGGIE DAYCARE AND GROOMING

Dogs and cats must have their required vaccinations to board at Pet Palace Hotels or be in the doggie daycare, but there is an on-call vet, Dr. Kim Ousley.

She works at Eastmont Animal Clinic and has her own mobile service called House Call Vet. Although the facility is in Pike Road, Hudson Hellums has clients from Wetumpka, Prattville, Millbrook, Eclectic and even Fort Deposit not to mention Pike Road and Montgomery.

SERVICES

LOCATION

565-A PIKE ROAD WEBSITE

PETPALACEHOTELS.COM

The Fort Deposit client “loves our groomer and they love when they board,” Hudson Hellums said about the owners of Dolly.

The staff posts pictures on Facebook and like to show before and after photos of dogs who have been groomed. Pet Palace Hotels grooms a dog from the humane shelter every week for free and posts photos. n

May 2016 montgomerybusinessjournal.com

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MEMBER NEWS

BUSINESS BUZZ “While so much has changed since the Junior League of Montgomery’s founding in 1926, the deep commitment of our members to serving others has remained constant,” JLM President Kimberly Baker said in a statement. “It is our responsibility to continue the legacy begun nearly a century ago into the future. We are looking forward to many, many more years to come.”

ALL AMERICAN AUTO & TIRE OPENS THIRD LOCATION

JUNIOR LEAGUE OF MONTGOMERY CELEBRATES 90TH ANNIVERSARY

MONTGOMERY – Don Duncan’s All American Auto & Tire is opening a third location on McGehee Road across from One Center.

MONTGOMERY – Ninety years ago, a group of committed, like-minded Montgomery women organized the Junior League of Montgomery (JLM).

The company, which now has seven employees at the new facility including three new positions, also has locations on Bell Road and Madison Avenue.

Led by founding President Lillie Lee Minier, these 10 young women laid the foundation of community service and voluntarism The Junior League that now defines the of Montgomery is organization. Over the composed of nearly 800 past nine decades, JLM has members, who donate donated millions of volunteer Kimberly Baker approximately 20,000 hours and millions of dollars to hours of volunteer services annually. causes and organizations that work The organization’s annual fundraisers directly to improve and enhance have totaled more than $1 million in the quality of life for families in the last 10 years alone. the River Region.

Owner Don Duncan said he opened the new facility because of the transformation in the area thanks to new schools, fire station and police station. The Montgomery Preparatory Academy for Career Technologies is scheduled to open in the fall and Loveless Academy Magnet Program High is expected to open in 2017.

“That kind of revitalization and investment brings renewed energy and excitement for the future of this part of town and we wanted to be a part of that moving forward,” Duncan said in a statement.

The Junior League of Montgomery was scheduled in early April to commemorate this significant milestone in its history with an evening of celebration and reflection at the Renaissance Montgomery Hotel & Spa at the Convention Center. The 90th anniversary celebration was scheduled to include special guests Montgomery Mayor Todd Strange, Secretary of the Alabama Department of Early Childhood Education Jeana Ross and Impact America Founder Stephen Black.

FINANCIAL ADVISER RECEIVES PRESTIGIOUS MEMBERSHIP MONTGOMERY – Financial adviser and branch manager Robert Broach was recently named a member of the Raymond James 2016 executive council.

Executive council honors are presented only to those financial advisers and branch managers who have demonstrated an extremely high level of Robert Broach commitment to clients through personal service and professional integrity.

Broach, who joined Raymond James in 2011, has more than 20 years of experience in the financial

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Montgomery Business Journal May 2016

services industry. Parsons Broach Financial Services offers a wide range of services from portfolio consulting and retirement income planning to corporate retirement plans and trust services.

SERVISFIRST BANCSHARES RECEIVES RAYMOND JAMES AWARD BIRMINGHAM – ServisFirst Bancshares Inc. has received the 2015 Raymond James Community Bankers Cup, which recognizes the top 10 percent of community banks. The company has also been added to the S&P SmallCap 600 Index to replace National Penn Bancshares Inc. The S&P SmallCap 600 Index, which was introduced in 1994, measures the performance of 600 small-size companies in the United States with market caps in the range of $400 million to $1.8 billion.

ServisFirst Bancshares ranked second out of 301 community banks nationwide that are exchange-traded domestic banks with assets between $500 million and $10 billion through Dec. 31, 2015. Each bank’s performance was judged by various metrics regarding profitability, operational efficiency and the balance sheet.

The six financial performance and stability measures include nonperforming assets to loans and real estate owned; five-year average core deposit percentage; net interest margin; efficiency ratio; return on average assets; and return on average tangible common equity.

professional business bank headquartered in Birmingham, with offices across the Southeast including Montgomery.

HARTZELL ENGINE TECHNOLOGIES INTRODUCES PM-SERIES STARTER MONTGOMERY – Hartzell Engine Technologies announced that the company has introduced the newest member of its popular PM-Series starter family.

Some of the advantages of the new PM-Series starter are: Large, high-torque permanent magnet motor providing highspeed cranking performance.

Low in-rush current draw, which puts less strain on the battery.

Excellent cooling characteristics for a high-duty cycle.

Direct drive so there is no need for a complex gear reduction system.

FAA-PMA approved for use on six-cylinder Continental engines.

Available in both 12- and 24-volt models.

CONTINUED ON PAGE

52

ServisFirst Bancshares, Inc., with its subsidiary ServisFirst Bank, is a full service

May 2016 montgomerybusinessjournal.com

51

BUSINESS BUZZ FROM PAGE

51

“Continental has expressed growing interest in this new PM-Series starter as a lighter-weight alternative to the standard Energizer style they have been using on their sixcylinder engines,” Hartzell Engine Technologies President Mike Disbrow said in a statement.

“This new starter is a mid-weight. It’s over three and a half pounds lighter than the Energizer style starter it replaces, but its new-generation components enable it to deliver performance on par with the benchmark Energizer.”

The 12-volt and 24-volt models list for $1,599 and come with a 24-month or 1,000-hour warranty – whichever comes first.

POLITICAL CONSULTANT NAMED TO ‘BEST UNDER 40’ LIST WASHINGTON, D.C. – The American Association of Political Consultants announced that Cory Brown is among the 40 “best and brightest campaign professionals under 40 years old” for 2016.

Brown, vice president for Data & Strategy at Cygnal, is one of 17 Republicans nationally that made the list.

Cory Brown

“Being recognized by the top political consulting association in the country is a real honor,” Brown said in a statement. “My fellow “40 Under 40” winners include many of the industry’s brightest minds. It means a lot to share in this award with such a talented group of consultants, pollsters and campaign professionals.”

winners were graded on a 40-point scale by their peers and selected for extraordinary achievements in politics and public affairs.

Hundreds of submissions were made this year with only a small percentage selected.

“I’ve known for years that Cory is top talent, so I’m glad to see him get the national recognition he deserves,” Cygnal Managing Partner Brent Buchanan said in a statement. “His commitment has not gone unnoticed by our firm or our clients. Cory’s leadership and expertise gives our clients the ability to harness and apply data and research, which is usually the difference between winning and losing.”

ALFA AGENT RECEIVES PRESTIGIOUS AWARD

MONTGOMERY – Alfa Insurance® Agent Billy Bradford of Montgomery received the Distinguished Service Award – Silver Level for 2015 during the company’s annual awards Only 17 Republicans, Billy Bradford ceremony in Birmingham.

17 Democrats, and 6 The ceremony, held Feb. 23 at nonpartisan operatives in the country the Sheraton Birmingham Hotel, were named to this exclusive “40 recognized Alfa’s best agents and Under 40” winners list. Award managers for dedicated work and commitment to policyholders.

Bradford, a University of Alabama alumnus, has served as an agent with the company since 1990. He specializes in health insurance with emphasis on the new Affordable Care Act for individuals and businesses.

His office is located at 4331 Atlanta Highway in Montgomery.

Alfa and its affiliates provide insurance and other financial services to customers in 11 states. For more information, visit AlfaIns.com.

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Montgomery Business Journal May 2016

HEALTH SERVICES INC. RECEIVES $90,000 GRANT MONTGOMERY – Health Services Inc. received a $90,000 grant from the Centers for Disease Control and Prevention sponsored through the American Cancer Society.

The grant is to increase community education and awareness of human papillomavirus (HPV) and the use of the HPV vaccine to prevent most cervical cancers. The organization is one of 30 federally qualified health centers to receive the $90,000 grant.

TWO GOODWYN, MILLS AND CAWOOD EMPLOYEES RECEIVE CERTIFICATION MONTGOMERY – Goodwyn, Mills and Cawood Inc. environmental division employees Rob Carlton and Jof Mehaffey were recently awarded the title of qualified airport wildlife biologist through the Embry-Riddle Aeronautical University.

perform wildlife hazard assessments; wildlife hazard management plans; and wildlife hazard management training at FAA airports.

Rob Carlton

The title was awarded following successful completion of the requirements, which included obtaining certain education, training and experience to

Carlton and Mehaffey have been working to achieve the certification for three years. They completed their first two wildlife hazard assessments for the Montgomery Regional Airport and the South Carolina Technology and Aviation Center as part of the mentorship requirements. n

Jof Mehaffey

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MEMBER NEWS

MEMBERS ON THE MOVE ALABAMA POWER ANNOUNCES LEADERSHIP CHANGES BIRMINGHAM – Alabama Power announced changes to the company’s leadership.

Quentin Riggins, vice president of governmental relations, has been elected senior vice president responsible for governmental and corporate affairs.

Quentin Riggins

Richard Hutto, vice president of Southeast division, has been named vice president responsible for regulatory affairs.

Alexia Borden

Ashley Robinett

Myrk Hankins

Myla Calhoun

Montgomery Business Journal May 2016

Myla Calhoun, general counsel and senior vice president for regional development and public policy at the Birmingham Business Alliance, has been elected vice president of charitable giving.

Ashley Robinett, area manager for Birmingham division, has been elected vice president with responsibility for corporate real estate.

Richard Hutto

54

Alexia Borden, a partner in the Montgomery office of Balch & Bingham LLC, has been elected vice president with responsibility for governmental affairs.

Myrk Harkins, vice president and director of corporate real estate, has been named vice president responsible for special projects.

“These individuals bring extraordinary expertise and insight to our leadership team,” Mark Crosswhite, chairman, president and CEO of Alabama Power, said in a statement. “Combined with our recent leadership changes, Alabama Power is in a strong position to meet our ongoing responsibilities to customers and stakeholders and to tackle new challenges.”

CENTRAL ANNOUNCES EXECUTIVE CHEF MONTGOMERY – Central announced that Brandon Burleson is the executive chef.

Born and raised in Georgiana, Burleson is an Auburn University graduate with a degree in hospitality and restaurant management. He started his culinary career at The Hotel at Auburn and Dixon Conference Center followed by an executive sous chef position at the Perdido Beach Resort in Orange Beach. While there, Burleson was responsible for overseeing Brandon Burleson four restaurants and a banquet/conference facility spanning nearly 50,000 square feet.

Prior to coming to Central, he returned to Auburn University for the opportunity to once again work alongside Chef Leonardo Maurelli III.

His cooking style is influenced by the flavors from New Orleans to the Caribbean; the availability of fresh gulf seafood; and the traditional Southern dishes he grew up with.

guest chef for Auburn University’s Awards at the United Nations.

“We are excited to have Brandon as our executive chef and are confident he will continue to elevate the dining experience at Central and become a great addition to the community,” Jake Kyser, co-owner of Central, said in a statement.

Burleson has represented Alabama across the country competing in the National Shrimp Festival Restaurant Challenge and taking home top honors. Following his win, Burleson competed in the THE A&P SOCIAL World Food Championship in HIRES EXECUTIVE CHEF Las Vegas, where he placed in the Top 10 at World MONTGOMERY – Seafood Championship, The A&P Social competing against announced chefs from nearly that Randal 40 states and eight Gresham Jr. is the countries. That executive chef. same year, he was Gresham, who was recognized by the born and raised in Alabama Restaurant Randal Gresham Jr. Houston, has worked at and Hospitality Alliance acclaimed restaurants as a finalist for Chef of the Year. He most recently served as

throughout the country. He was executive chef at Central in downtown Montgomery.

As the executive chef of The A&P Social, his focus is showcasing the bounty of the River Region and Gulf Coast. He will create food that highlights new flavors and ideas while maintaining a level of comfort and familiarity in menu options.

The A&P Social is open from 4:30 p.m.-9 p.m. Monday-Friday. It is located at 503 Cloverdale Road Unit 102. The phone number is (334) 356-3814.

CONTINUED ON PAGE

56

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The College for Real Careers

slow you down. Call or visit our website now, and see why no one will get them there faster than Trenholm State.

334.420.4200 | www.trenholmstate.edu

Trenholm State Community College is accredited by the Southern Association of Colleges and Schools Commission on Colleges to award associate degrees. Contact the Commission on Colleges at 1866 Southern Lane, Decatur, Georgia 30033-4097 or call 404-679-4500 for questions about the accreditation of Trenholm State Community College.

May 2016 montgomerybusinessjournal.com

55

MEMBERS ON THE MOVE FROM PAGE

55

BAPTIST HEALTH APPOINTS CEO OF PRATTVILLE BAPTIST HOSPITAL PRATTVILLE – Eric Morgan has been appointed the chief executive officer for Prattville Baptist Hospital.

He joined Baptist Health in 2004 as a staff pharmacist and was promoted in 2005 to pharmacy manager of Prattville Baptist Hospital. He has served the facility as interim CEO since last summer.

Eric Morgan

in her hometown of Albany, Ga., in 2003 as an account executive.

In 2005, she was promoted to local sales manager of WJIZ-FM, WMRZ-FM and WJYZ-AM. She was promoted to general sales manager in 2007 and transferred to Clear Channel in Jacksonville, Fla. She returned in 2009 to Albany, Ga., and Clear Channel as general sales manager of all five stations in the cluster: WJIZ-FM, WMRZ-FM, WJYZ-AM, WOBB-FM and WGEX-FM.

Originally from Prattville, Morgan holds a pharmacy degree from Auburn University. He has 10plus years of experience in leadership roles.

IHEARTMEDIA NAMES MONTGOMERY PRESIDENT MONTGOMERY – iHeartMedia has named Jackie Toye its market president for the Montgomery area.

She has served as senior vice president of sales for iHeart/ Jackie Toye Tuscaloosa for the past two years. Toye began her radio career

Proudly serving the River Region for over 59 years!

Family owned and operated by Mavis Walker & Beth Walker McBride Call us for all of your staffing needs!

Professional • Office Support • Industrial Direct Hire • Try & Hire • Temporary • Payrolling (334) 265-4100 Office/Professional

300 Arba Street Montgomery, Alabama

www.walkerworkforce.com 56

Montgomery Business Journal May 2016

(334) 265-0100 Industrial

AMERIFIRST BANK HIRES THREE VICE PRESIDENTS MONTGOMERY – AmeriFirst Bank has added three relationship managers in the Montgomery office: Will Hickman, Josh Myers and Dawn Fain.

Hickman, who joined the bank as a vice president and commercial lender, has 16 years of experience in the Montgomery market specializing in medical and professional lending.

Myers has 14 years of local experience and joined AmeriFirst Bank as a vice president and commercial lender. He specializes in manufacturing, distribution and wholesale lending.

Will Hickman

Josh Myers

Fain was hired as vice president of private banking and retail lending.

She has 27 years of experience in banking, including prestige coordinator, corporate security, retail banking and private banking.

“We are excited to have these three experienced lenders join our team,” AmeriFirst Bank CEO Robert R. Ramsey said in a statement.

“All three are proven business developers, but more importantly they

Dawn Fain

are excellent relationship bankers.

They are hands-on, high-touch individuals who will fit in perfectly with the way we do business.”

The bank has offices in Montgomery, Prattville and Union Springs as well as a loan production office in Lee County. n

May 2016 montgomerybusinessjournal.com

57

CHAMBER NEWS

RIBBON CUTTINGS & GROUND BREAKINGS

FAZOLI’S

PRIMERICA FINANCIAL SERVICES

CLOVERDALE PLAYHOUSE

7123 EastChase Parkway • Montgomery, AL 36117 334-239-9109 • www.fazolis.com Mital Patel-General Manager Restaurants-Italian

26 Carol Villa Drive • Montgomery, AL 36109 334-593-9215 • www.primerica.com/lonniepoole Lonnie Poole-Executive Vice President Financial Services

3225 Cloverdale Road • Montgomery, AL 36106 334-262-1530 • www.cloverdaleplayhouse.org Emily Flowers-Managing Director Attractions-Arts & Culture Attractions-Entertainment • Theatres

DON DUNCAN’S ALL AMERICAN AUTOMOTIVE & TIRE, INC.

HEALTH SERVICES, INC.

ZAXBY’S

1845 Cherry Street • Montgomery, AL 36107 334-420-5001 • www.hservinc.org Gilbert Darrington-CEO Health Care Services

4030 Atlanta Highway • Montgomery, AL 36109 334-273-0018 • www.zaxbys.com David Conner-Owner • Richard Conner-Owner Brandon Miller-Owner Restaurants-Fast Food

SKIPPER POOLS

EAST MONTGOMERY ANIMAL HOSPITAL

9150 EastChase Parkway • Montgomery, AL 36117 334-356-0237 • www.skipperpools.com Brad Skipper-Owner/President Swimming Pools/Spas

8424 Vaughn Road • Montgomery, AL 36117 334-277-1101 • www.eastmontgomeryanimalhospital.com Dr. Lewis Benefield-Veterinarian Veterinarians

3521 McGehee Road • Montgomery, AL 36111 334-281-2491 • www.allamericanautoandtire.com Don Duncan-Owner • Mitch Duncan-Manager Automobile Repair Services • Tire Dealers & Distributors

58

Montgomery Business Journal May 2016

CHAMBER NEWS

NEW MEMBERS

ADVERTISING-DIGITAL

COMMUNICATIONS EQUIPMENT

PAIN MANAGEMENT

RESTAURANTS-FAST FOOD

ALABAMA AND MORE, LLC Amber Wright 1075 Chandler Street Montgomery, AL 36104 334-832-1586

MONTGOMERY ELECTRONICS & COMMUNICATIONS SERVICES, LLC Derek Montgomery 236 Mountain Ridge Rd Millbrook, AL 36054 334-290-1214

THE CENTER FOR PAIN OF MONTGOMERY Donna White 488 St. Lukes Drive Montgomery, AL 36117 334-288-7808

ZAXBY’S David Conner 4030 Atlanta Highway Montgomery, AL 36109 334-273-0018

ASSOCIATIONS/NON-PROFIT

WATER 282 Casey Browder 4144 Carmichael Road, Suite #20 Montgomery, AL 36106 334-372-4142 AUTOMOBILE DEALERS & SERVICES

MONTGOMERY SUBARU John Danielson 3000 Eastern Boulevard Montgomery, AL 36116 334-260-2064

CONSULTING SERVICES

ONE HUMANITY, LLC Robert Jackson 3066 Zelda Road, Suite 215 Montgomery, AL 36106 334-221-4153 PC CONSULTING, PROFOUND CONNECTIONS Princess Cuthrell P.O.Box 241692 Montgomery, AL 36124 334-544-1402 FINANCIAL PLANNER/ADVISOR

COUNTRY FINANCIAL-THE BRYAN DECAPITE GROUP, LLC Bryan DeCapite 7020 Vaughn Road Montgomery, AL 36116 334-271-1933 LEGAL SERVICES - ATTORNEYS

PRIVATE SCHOOLS

ALABAMA CHRISTIAN ACADEMY Misty Overman 4700 Wares Ferry Road Montgomery, AL 36109 334-277-1985 REAL ESTATECOMMERCIAL/INVESTMENTS

NET LEASE ALLIANCE, LLC Sam Colson 445 Dexter Avenue, Suite 4050 Montgomery, AL 36104 334-247-6145

RESTAURANTS-ITALIAN

FAZOLI’S Lauren Bradley 2470 Palumbo Drive Lexington, KY 40509 334-239-9109 VETERINARIANS

EAST MONTGOMERY ANIMAL HOSPITAL Lewis Benefield 8424 Vaughn Road Montgomery, AL 36117 334-277-1101

REAL ESTATE-RESIDENTIAL

LOLESIA H. BANNISTER Lolesia H. Bannister 3225 Erinwood Place Montgomery, AL 36110 334-676-1707

CLEVELAND, RIDDLE & ATCHISON, ATTORNEYS AT LAW-MONTGOMERY Raymond Hawthorne 504 South Perry Street Montgomery, AL 36104 334-676-3313 FRITZ LAW FIRM Michael A. Fritz 25 South Court Street, Suite 200 Montgomery, AL 36104 334-215-4422

May 2016 montgomerybusinessjournal.com

59

ECONOMIC INTEL

CHAMBER NEWS

UNEMPLOYMENT

Civilian Labor Force MAR p 2016

Area

FEB r 2016

Unemployment Rate MAR r 2015

MAR p 2016

FEB r 2016

MAR r 2016

Montgomery MA

168,590

168,723

167,781

5.90%

6.10%

5.70%

Autauga County

25,345

25,292

25,132

5.50%

5.60%

5.10%

Prattville City

16,538

16,515

16,421

5.20%

5.40%

4.90%

Elmore County

36,071

36,079

35,842

5.20%

5.40%

5.00%

3,802

3,784

3,797

11.10%

11.40%

11.10%

103,372

103,568

103,010

6.00%

6.20%

5.90%

90,878

91,090

90,610

6.10%

6.30%

6.10%

533,353

534,610

527,501

5.80%

5.90%

5.30%

92,143

92,435

91,398

7.30%

7.40%

7.00%

Huntsville MA

210,307

209,774

207,614

5.40%

5.70%

5.40%

Huntsville City

91,182

90,968

90,137

5.80%

6.00%

5.90%

Mobile MA

184,539

182,999

182,993

7.00%

7.30%

6.60%

Mobile City

86,138

85,408

85,280

7.20%

7.50%

6.70%

2,156,616

2,147,743

2,135,802

6.20%

6.40%

5.90%

158,854,000

158,279,000

156,318,000

5.10%

5.20%

5.60%

Lowndes County Montgomery County Montgomery City Birmingham-Hoover MA Birmingham City

Alabama United States

SALES TAX

MA=Metropolitan Area. pPreliminary rRevised Estimates prepared by the Alabama Department of Industrial Relations in Cooperation with the Bureau of Labor Statistics, based on 2015 benchmark.

MARCH 2016

MARCH 2015

Montgomery County

$3,492,053

$3,389,229

City of Montgomery

$8,378,091

YEAR OVER YEAR % CHANGE

YEAR OVER YEAR % CHANGE

YTD 2016

YTD 2015

3.03%

$10,983,071

$10,690,972

2.73%

$8,194,516

2.24%

$26,121,530

$25,413,991

2.78%

$176,210

$161,110

9.37%

$578,354

$517,181

11.83%

Prattville

$1,702,171

$1,566,489

8.66%

$5,659,270

$5,452,573

3.79%

Autauga County

$696,766

$680,352

2.41%

$2,156,403

$2,060,202

4.67%

Elmore County

$99,711

$99,825

-0.11%

$318,767

$336,664

-5.32%

*

*

*

*

*

*

Pike Road

Wetumpka

Sources: Montgomery County Commission, City of Montgomery, City of Pike Road, Autauga County Commission, City of Prattville, Elmore County Commission, City of Wetumpka Note: YTD numbers are January 2016 thru current month. * Did not receive this months numbers.

60

Montgomery Business Journal May 2016

Building Permits

BUILDING STARTS MAR 2016

FEB 2016

Building Valuations MAR 2015

MAR 2016

FEB 2016

MAR 2015

New Construction

70

37

73

$6,972,000

$20,187,720

$14,894,000

Additions and AlterationsÂ

128

79

86

$5,836,000

$16,543,059

$5,167,649

Others

25

29

39

$220,100

$265,080

$188,080

Total

223

145

198

$13,028,100

$36,995,859

$20,249,729

Source: City of Montgomery Building Department

MONTGOMERY METRO MARKET HOME SALES MARCH 2016

FEBRUARY 2016

MONTH/MONTH % CHANGE

MARCH 2015

YEAR/YEAR % CHANGE

STATEWIDE MARCH 2016*

Median Price

$145,000

$125,950

15.13%

$132,000

9.85%

$131,548

Average Price

$157,645

$149,269

5.61%

$145,246

8.54%

$153,005

2,555

2,496

2.36%

1,899

34.54%

29,875

6

7.4

-18.92%

8.4

-28.57%

6.5

Total # Sales

425

338

25.74%

346

22.83%

4,603

Days on Market

151

142

6.34%

133

13.53%

142

Units Listed Months of Supply

Source: Alabama Center for Real Estate (ACRE), The University of Alabama

May 2016 montgomerybusinessjournal.com

61

AIRLINE FARES Roundtrip airfare comparisons from Montgomery, Birmingham and Atlanta airports to key destinations.

Destination

MGM

BHM

ATL

Baltimore (BWI)

$246

$301

$136

Boston (BOS)

$334

$340

$173

Charlotte, NC (CLT)

$299

$299

$243

Chicago (ORD)

$291

$246

$79

Cincinnati (CVG)

$294

$276

$215

Dallas/Ft Worth (DFW)

$386

$305

$131

Denver (DEN)

$323

$423

$153

Detroit (DTW)

$312

$427

$121

Houston (HOU)

$303

$277

$108

Indianapolis (IND)

$293

$304

$88

Las Vegas (LAS)

$402

$413

$231

Los Angeles (LAX)

$403

$340

$276

Memphis (MEM)

$377

$337

$89

Miami (MIA)

$291

$325

$130

Nashville (BNA)

$381

$448

$204

New Orleans (MSY)

$414

$358

$128

New York (JFK)

$319

$378

$225

Orlando (MCO)

$276

$226

$88

Philadelphia (PHL)

$309

$295

$98

Pittsburgh (PIT)

$240

$240

$214

St Louis (STL)

$286

$241

$98

Seattle (SEA)

$495

$375

$381

Seoul (SEL)

$1,461

$1,456

$1,668

Tampa (TPA)

$286

$209

$96

Washington DC (DCA)

$291

$298

$172

Date of travel:May 24-29, 2016. Date of pricing: April 10, 2016. Source: travelocity.com

MONTGOMERY REGIONAL AIRPORT MARCH 2016 Air Carrier Operations

MARCH 2015

YTD 2016

YTD 2015

YEAR OVER YEAR % CHANGE

845

795

6.3%

2,365

2,219

6.6%

5,207

5,322

-2.2%

14,995

13,851

8.3%

Enplanements

14,154

14,765

-4.1%

38,990

40,265

-3.2%

Deplanements

13,536

14,707

-8.0%

37,954

39,322

-3.5%

Total Passengers

27,690

29,472

-6.0%

76,944

79,587

-3.3%

Total Operations

Source: Montgomery Regional Airport (MGM) Dannelly Field

62

YEAR OVER YEAR % CHANGE

Montgomery Business Journal May 2016

HYUNDAI SALES MAR 2016

MAR 2015

YTD 2016

YTD 2015

Accent

7,879

7,494

17,826

16,799

Sonata

28,778

18,340

61,457

44,690

Elantra

17,505

28,794

39,363

56,742

Santa Fe

6,546

9,895

17,217

26,406

Azera

508

616

1,355

1,957

Tucson

7,830

4,222

20,384

11,127

Veloster

2,342

2,380

6,466

5,237

Genesis

3,762

3,064

8,645

8,430

Equus

160

214

617

641

Total

75,310

75,019

173,330

172,029

VEHICLE

Source: Hyundai Motor America

May 2016 montgomerybusinessjournal.com

63

Post Office Box 79 Montgomery, AL 36101