SUPPLEMENT TO THE OKLAHOMAN | SUNDAY, APRIL 10, 2016
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OUTLOOK 2016: BUSINESS AND TECHNOLOGY
THE OKLAHOMAN | NEWSOK.COM
DEVELOPMENT
Uptown project partners continue redeveloping blighted properties BY STEVE LACKMEYER Business Writer slackmeyer@oklahoman.com
At a time when much of the new urbanist discussion is focused on the Millennial Generation, three members of Generation X are making a name for themselves turning blighted properties into urban core hot spots. David Wanzer, Ben Sellers and Jonathan Dodson, partners in The Pivot Project, didn’t start out with a grand plan of working together. But after being tagged as “the Tower trio” by fans of their redevelopment of the Tower Theatre in Uptown, the three listened to the market and decided to give their team some permanence. Now their portfolio includes not just the Tower Theatre, but also the Main Street Arcade, apartments at NW 23 and Robinson Avenue, apartments and retail in the Plaza District, conversion of warehouse space into offices and retail at Farmer’s Public Market, and redevelopment of the Sunshine Cleaners at NW 1 and Classen Boulevard. Each partner brings a distinctly different resume to the
[PHOTO BY DOUG HOKE, THE OKLAHOMAN ARCHIVES]
Developers Ben Sellers, Jonathan Dodson and David Wanzer are redeveloping the Tower Theatre in Oklahoma City. [PHOTO BY CHRIS LANDSBERGER, THE OKLAHOMAN]
venture. Wanzer started with designing and redeveloping buildings in Film Row, followed with his own construction of contemporary homes near Classen Curve. Sellers was a lending officer with the Department of Housing and Urban Development who then redeveloped the Mesta Building at 600 NW 23 into a mix of
offices and retail. Dodson was a banker who financed several high-profile urban core developers. “It’s a great partnership simply because we have such a varied background,” Wanzer said. “My primary career has been with design, Jonathan with banking and Ben with multifamily housing and appraisal
work. We all knew each other and we all have a passion for urban OKC. It’s important we have that varied background because we approach projects from different perspectives.” The partnership started in 2014 as Wanzer was tackling a historic redevelopment of the Main Street Arcade at 629 W Main and Sellers was planning
a mix of retail and apartments in the Plaza District. The two teamed up first to buy a former tire shop at NW 6 and Classen that now is being redeveloped into restaurants and retail. “My focus was urban infill projects and I met Jonathan and David through ULI (the Urban SEE TOWER TRIO, PAGE 3
WELCOME BACK!
Cover design TODD PENDLETON
Business & Technology is the second section in our “Outlook 2016: Going for the Gold” series. Here, we’ll dive into development in Oklahoma City and the surrounding areas; the business of entertainment and food; and the companies that are bringing innovation to the state and those that continue to be trailblazers in their industry. You received the first in the series — The Way We Live — on April 3. On April 17, you’ll get a look at what’s going on in our region on the health care front. And, finally, April 24, we’ll shine a spotlight on education in the state. You can also access all the news online at NewsOK.com.
Section design CALEB MCWILLIAMS CAROLINE WERTZ Advertising JERRY WAGNER, sponsorship manager, 475-3475
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Tower Trio
FROM PAGE 2
Land Institute),” Sellers said. “They kept driving me around showing me the same projects individually. And that’s when David and I teamed up on the Sixth Street project.” The Tower Theatre was the project that brought all three together. The landmark at 425 NW 23 had eluded previous owners who dreamed of bringing the theater back to life. Wanzer, Sellers and Dodson might have generated doubts if they had gone solo on buying the theater. But when urban development fans learned of their joint effort, it was met with a collective cheer and belief the three could get the job done. The theater was long seen as the test of whether Uptown could ever return to its mid-20th century glory days as a retail and entertainment corridor. The theater, designed by Dallas architect Scott Dunne, was built in 1937 as the state was still struggling to climb out of the Great Depression. No expense was spared as local decorator Charles Watson traveled to Hollywood to find inspiration for what was then a futuristic look for the cinema.
MODERN UPDATES Thousands followed the Tower Trio’s construction updates on social media sites. Lines formed to see the lighting of the restored neon marquee sign and tour the seat-less auditorium in January. The shell of the auditorium was rebuilt and restored to its original appearance. The stage, meanwhile, is big enough for musical performances, plays or movie screenings. Though Dodson was uncertain of its historic use in the theater, the auditorium also features an orchestra pit in front of the stage. With renovations wrapping up, the partners have leased the theater itself to Levelland Productions, which will book the venue with live music, movies and stage performances. Tenants in the adjoining storefronts include The Bunker Club, a bar conceived by Ian McDermid, owner of The Pump at NW 23 and Walker; the Savings and Loan Bar, being built by Levelland; and a restaurant to be opened by Daniel Chae, owner of Chae Modern Korean at 1933 NW 23.
The next chapter More projects await The Pivot Project, including a mixed-use development at NW 16 and Classen, the gateway to the Plaza District, and housing in Midtown. The three also partnered with several developers in converting the former Midtown home of Swanson’s Tire into restaurants, offices and retail. All of the projects are geared toward creating a sense of place in the urban core. “When I was in banking, I kept asking Ben and David about their goal,” Dodson said. “It was Ben who said what he wanted to have when he retired is a collection of properties that would turn his neighborhood around. That vision, especially with the vision David had when he brought us in as partners, has formed into this idea of community building. We’re picking out unique assets where we can add our own skill sets and turn it around and have a posi-
tive impact on the neighborhood.” The three admit as members of Generation X, they may be better equipped than Baby Boomers in understanding what might appeal to younger Millennials. “We see things through a different lens; we’ve traveled more, we’ve seen what has been done in other cities,” Sellers said. “We’re not the Millennials, but we’re trying to bring on space
Above: The Sunshine building is being cleared of debris and prepared for renovations that are set to be completed later this year. At left: Longtime eyesores such as the Main Street Arcade are being restored with plans for more retail and offices. [DRAWINGS PROVIDED]
we think Millennials will enjoy. Millennials are more interested in spending their income on experiences — it’s about hanging out with the Joneses, not keeping up
with the Joneses.” The three say their approach is best described as “neighborhood-centric.” Fans describe the trio as being on the cutting edge
of a “new Oklahoma City.” “It’s too soon to say if it’s a new Oklahoma City,” Dodson said. “We have heard the genuine enthusiasm. Part of it is related to the Millen-
nials. It’s said Millennials spend 24 percent more on food and beverage and they want a local concept that fits in with their needs. That fits in with what we want to do.”
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OUTLOOK 2016: BUSINESS AND TECHNOLOGY
THE OKLAHOMAN | NEWSOK.COM
OKLAHOMA CITY’S DISTRICTS
A couple walk past storefronts that line a part of NW 16 near Indiana, in the Plaza District. Jeff and Aimee Struble’s jump into the district is an inner-city success story. [PHOTO BY JIM BECKEL, THE OKLAHOMAN ARCHIVES]
Couple’s ‘plunge’ pays off for revitalized Plaza District BY STEVE LACKMEYER Business Writer slackmeyer@oklahoman.com
Sitting in their newly rechristened 180 Development offices, Jeff and Aimee Struble remain modest when discussing their emergence as leaders in the renaissance of the NW 16 Plaza District. They started out building in-fill homes and renovating old houses in surrounding historic neighborhoods when they shifted a decade ago into what was seen as a risky proposition at best. Now their properties are fully leased with a mix of housing, retail stores and restaurants that frequently boast long waiting lines. Looking forward, they are set to start off 2016 with construction of a two-story office and retail building, and renovation of an old apartment building into a restaurant and office space. Other ambitious in-fill projects include a two-story, 17-unit apartment building with 3,000-square-feet of retail at NW 16 and McKinley and an eight-unit apartment building at NW 15 and McKinley, both being built by developer Ben Sellers. The northwest corner of NW 16 and Classen Boulevard, the gateway to the Plaza District, is set to be redeveloped into a mix of housing and retail. In retrospect, the Strubles’ jump into the Plaza District is an inner-city success story. But they admit they skirted financial disaster before their dream of a revitalized district came true. “We had prostitutes out here we had to call police on; we had drug dealers,” Jeff Struble said. “We couldn’t get anyone interested in our space.”
PLAZA DEBUT The Strubles began their journey into the Plaza District with housing construction in nearby neighborhoods, and it was when they were attempting to buy a nearby property that they were talked into buying a dilapidated one-story commercial building at 1712 NW 16 (now home to No Regrets Tattoo). “I wasn’t so sure of it,” Jeff Struble said. “The owner pushed me a couple more times. I talked to Aimee. The price was right, $35,000 for a 5,000-squarefoot building. But the back didn’t have a roof or a second floor in it.” Aimee Struble saw a building in such disrepair she declined to get out of the car at an inspection. “I went ahead and took the plunge,” Jeff Struble said. The next temptation occurred at the district’s second annual Urban Pioneer luncheon where the Strubles were approached by Susan Hogan, one of the earliest advocates of reviving what was one of the city’s most blighted commercial corridors. “Susan started talking to me about the district, how we should buy more property,” Jeff Struble said. “She had me to go the Urban Pioneer luncheon, and Lou Kerr was announcing they (Lyric Theater) had purchased the old Plaza Theater and talked about what they were doing. So we thought, ‘Ah-ha, let’s go ahead and buy more buildings and go from there.’” They first bought 1704 through 1712 NW 16. Struble, who owned a construction company, learned how to swap painted bricks and rebuild the facade with the unpainted surface to re-create the buildings’ historic appearances.
For the first couple of years, the storefronts stood empty. The Strubles invited pop-up shop retailers to bring activity to the stretch. “We were doing all we could to bring life to the area,” Jeff Struble said. “We would stage the storefronts, we would have people from the neighborhood dress up to do Christmas carols.” They committed to the area partially out of necessity; historic homes they renovated were not selling very quickly. (Those same homes are now flipping at a rapid pace for twice what they were sold for by the Strubles.)
TAKING THE PLUNGE They took an even deeper plunge when they bought two apartment buildings at NW 16 and Blackwelder. The nation was still reeling from the 2009 Great Recession. The Strubles wanted a restaurant to anchor the property, but restaurants were still leery of opening in an area with no track record and scarce parking. First-time restaurant operators Cody Rowan, John Harris and Joey Morris took on the challenge and did a deal to open a gourmet grilled cheese pub. It was an audacious idea. The Mule opened in 2012 and has enjoyed long lines ever since. The Strubles held off on the adjoining apartment building — a delay they credit with giving them an easier task of recruiting a second restaurant.
SETTING THE PLATE It was during those earlier days, when the Plaza District’s promoters were happy just to see food trucks on the strip, that Jeff Struble first met Jeff Chanchaleune. Chanchaleune was operating a Japanese ramen
mobile eatery. Struble unsuccessfully pitched Chanchaleune on opening a restaurant in the Plaza District. “I wasn’t ready,” Chanchaleune said. “But it was interesting to see how the area had grown.” Chanchaleune needed a partner. Rachel Cope opened Empire Slice House at 1734 NW 16 as The Mule proved the area could support a variety of locally owned restaurants. Cope, a veteran of the Deep Fork Group, and Chanchaleune, a veteran of Western Concepts, knew each other from their days working restaurants along Western Avenue. They teamed up to test a ramen restaurant and bar concept by hosting “Project Slurp,” a rotating pop-up restaurant where they tried different restaurants and drinks with invited guests. They then did a deal to open Goro Ramen + Izakaya, which will anchor the second former apartment building at NW 16 and Blackwelder. The restaurant is set to open this summer. The empty lots that were scattered throughout the Plaza District and the adjoining Classen-10-Penn neighborhood, meanwhile, are beginning to fill up. The Strubles, seeing the ongoing demand, are set to start construction next month on a two-story building at 1804 NW 16. The Strubles acknowledge the Plaza District is going through growing pains, especially with a scarcity of parking. They are talking to the city about adding 40 angled parking spaces along Blackwelder south of NW 16. They also are preparing to add a 40-spot surface parking lot across from their latest completed project, The Barn.
The Barn is a 1907 home that was dilapidated and empty for years. A restaurant group once looked at the building and their architect suggested it be torn down. It was then the Strubles decided to keep it and renovate it into offices for their growing enterprise of construction, development and real estate.
DOING THE WORK Along the way, the Strubles learned a lesson from Susan Hogan, using the Pioneer Awards to recruit another true believer to their cause — Steve Mason. It was at the 2010 awards that Mason was honored for his work near NW 9 and Broadway along Automobile Alley. He saw the vision and bought a handful of properties that are now home to Empire Slice House, Urban Wineworks, District House coffee shop, art galleries and shops. “Ten years ago there were a lot of volunteers and shopkeepers trying to improve the district,” Mason said. “But to truly improve it required investment and capital. Both Lyric Theater and the Strubles had the vision before the outcomes were obvious. The Strubles took a risk when this area was still tough and still had a lot of problems.” Mason said the work he has done with partner Aimee Ahpeatone was inspired by the Strubles. “Jeff gets his hands dirty, he rolls up his sleeves,” Mason said. “It doesn’t worry Jeff Struble to trim trees and keep the street clean. He and Aimee work and they do it. They don’t just hire someone to get it done. They are more than investors — they live in the neighborhood. They were more motivated to improve it because they lived here.”
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UPTOWN 23RD ON THE RISE BY STEVE LACKMEYER Business Writer slackmeyer@oklahoman.com
As alumni director at Oklahoma City University, Cary Pirrong is seeing a shift in where graduates choose to live, buying and renting homes along the once troubled Uptown 23rd corridor. “I was talking to an OCU graduate, and she and her boyfriend are living in the area,” Pirrong said. “They could have picked anywhere to live, and they chose this area because of all that is around us now.” Uptown 23rd has seen a resurgence over the past decade with restaurants, bars and entertainment venues opening in renovated mid-20th century buildings along NW 23 between Broadway and Classen Boulevard. During summer months, crowds gather for a monthly farmer’s market. Outdoor dining and patios are found throughout the district. The turnaround began several years ago, first with the successful transformation of the Cheever’s Florist building into a restaurant operated by the Good Egg Dining Group, and then with the openings of Big Truck Tacos and Tucker’s. But the NW 23 corridor was for years seen as still being short of a resurgence as long as its landmark, the Tower Theatre, remained dark and unloved. That changed last year when renovations started on the theater, which will be operated as a live music venue, bar and a mix of restaurants and shops. Another longtime eyesore, the former hotel-motel liquidators store, was renovated and is now home to the upscale Rise shopping center. And the Gold Dome was bought by The Rise’s developer, Jonathan Russell, and he is negotiating with potential grocery stores to bring life back to the former bank. Other upcoming developments include a two-story mixed-use office and retail building at NW 23 and Ollie. Investor Bruce Fraley, meanwhile, is working with partner Michael Love and leasing agent Chad Elmore on redeveloping the original two-story home of Citizens State Bank at 601 NW 23. Fraley said the timing was right when they paid $1.4 million for the two-story building in November. “I like the neighborhood — it’s always caught my eye,” Fraley said. “(The building) sat empty for a long time, and I felt it would be an interesting project. The more we talked about it, the more it made sense. The Tower Theatre and The Rise (shopping center) gave me more confidence in the area and its future.”
Above: A blighted strip shopping center was redeveloped into upscale retail at The Rise, 519 NW 23, where tenants include the seafood restaurant The Drake. [PHOTO BY NATE BILLINGS, THE OKLAHOMAN ARCHIVES]
Left: People look at plants from Prairie Wind Nursery during the Uptown 23rd Farmers Market. [PHOTO BY DOUG HOKE, THE OKLAHOMAN ARCHIVES]
Below: The four-plex units at the corner of NW 23 and Robinson have been renovated. [PHOTO BY CHRIS LANDSBERGER, THE OKLAHOMAN ARCHIVES]
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OUTLOOK 2016: BUSINESS AND TECHNOLOGY
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DEEP DEUCE RENAISSANCE BY STEVE LACKMEYER Business Writer slackmeyer@oklahoman.com
Deep Deuce, reduced to handful of boarded-up buildings, empty lots and abandoned surface parking 20 years ago, is back and thriving with thousands of residents and the sort of scattering of restaurants, pubs and shops that make for an idealized urban neighborhood. No other area of downtown has mastered the mix as well as Deep Deuce. Small grocery with a deli and an offering of organics attractive to younger professionals? Check. Coffee shop? Check. Neighborhood restaurants and pubs? Check. Doctor’s offices? Check. Salon? Check. Fitness center? Check. Pizzeria and burger joints? Check. Clothing store? Check. Upscale hotel? Check. When the first apartments were developed in Deep Deuce by Texas-based First Worthing in 2000,
the area still was littered with boarded up, abandoned buildings. The district is now considered the first fully realized mixed-use urban neighborhood in the state, home to an Aloft hotel, hundreds of apartments and owner-occupied homes. The ground floor of the district’s housing includes a mix of restaurants, shops and a grocery store, with more restaurants and a coffee shop set to open in the next year. At NE 2 and Oklahoma Avenue, an empty lot with no immediate prospects for development is now home to a multistory shipping container venue, OK Sea, with the first floor leased to Anchor Down, a gourmet corn dog restaurant and bar. Owner-occupied homes continue to be built on The Hill, overlooking NE 2, while more than 200 apartments are opening this year with the Mosaic at NE 3 and Central and the Maywood Apartments at NE 4 and Walnut Avenue.
Deep Deuce is a mixed-use neighborhood situated between Bricktown and the Central Business District. [PHOTO BY PAUL HELLSTERN, THE OKLAHOMAN ARCHIVES]
Bricktown development moves eastward with hotels, venues BY STEVE LACKMEYER Business Writer slackmeyer@oklahoman.com
The concept of an urban entertainment district — a downtown neighborhood — didn’t even exist in Oklahoma City before Neal Horton and partners began buying up old brick warehouses east of the central business district in 1980. Jim Brewer picked up the vision and added festivities and showmanship to make the area a destination. In recent years, growth in Bricktown slowed a bit, but in the past year, the district has seen a flurry of announcements and construction that will be as transformative as the development of Lower Bricktown in 2002, if not more so. The former home of the sprawling Stewart Metal Fabricators complex is already being transformed. On the north side of Sheridan Avenue between Charlie Christian Avenue and
The line for The Criterion’s first show stretched nearly a quarter mile outside the venue March 26. [PHOTO BY NATHAN POPPE, THE OKLAHOMAN]
Lincoln Boulevard, work is underway on the first phase of the Steelyard Apartments. Phase one of the Steelyard project, 250 apartments with 17,000 square feet of retail, is set to open by spring 2017. Construction is set to begin next year on the second phase, another 150 apartments and 8,000 square feet of retail,
with an opening by summer 2018. An AC Hotel and Hyatt Suites, meanwhile, will be built at the corner of Charlie Christian and Sheridan avenues. Across the street, the Criterion Music Hall, which will accommodate up to 4,000 people and will be operated by the world’s largest live music
operator, Live Nation, opened in late March. Work is expected to be completed later this year on a Springhill Suites Hotel. Farther west on Sheridan Avenue, surface parking lots are set to be replaced with projects including a 10-story office and retail building at the southeast corner of Sheridan Avenue and Mickey Mantle Drive; a hotel of 10 stories or higher to be built by Andy Patel at the southeast corner of Oklahoma and Sheridan avenues; and a garage to be built by developer Don Karchmer across the street from the hotel. All three projects are expected to start construction within the next year. The addition of just one venue has attracted thousands of new visitors to the district as restaurant and entertainment venues surrounding the new Brickopolis are reporting a boost in business after the recent opening of the multilevel arcade, restaurant and miniature golf course. Families and visitors are spending a day in Bricktown at the arcade, riding canal boats and seeing nearby sites.
Brickopolis arcade, restaurants and miniature golf are among the newest attractions in Bricktown. [PHOTO BY JIM BECKEL, THE OKLAHOMAN ARCHIVES]
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Decade of hard work helps grow Midtown — and keep it local BY STEVE LACKMEYER Business Writer slackmeyer@oklahoman.com
The openings of the Edge Apartments, the Ambassador Hotel, the 1212 apartments, and a mix of retail and restaurants all along Walker Avenue between NW 10 and NW 13 have created a second urban entertainment district with a more local vibe. Midtown was on the verge of losing its anchor, St. Anthony Hospital, when the city and county joined with the hospital to revive the Midtown neighborhood on the west fringe of downtown. In the years since, the flop houses have been turned into upscale housing, a motel frequented by drug dealers and prostitutes was torn down, and the hospital embarked on a $220 million master plan that is set to wrap up next year. Bleu Garten, an outdoor food truck plaza, has emerged as a favorite neighborhood gathering spot, while old-school bowling at Dust Bowl Lanes and the food and drinks at adjoining Fassler Hall have helped make Midtown a walkable district with an array of attractions. Visitors can often be seen going back and forth between Fassler Hall, RJ’s Supper Club (a “Mad Men”-era restaurant and bar), and shops and restaurants along and near NW 10. Other additions to the area include a comedy club; a breakfast, lunch and dinner diner to be run by the folks at Nic’s Grill; and more than 300 apartments being built at NW 10 and Shartel Avenue. The emergence of a modern housing corridor is continuing in west Midtown and will soon include for-sale townhomes to be built along NW 6 west of Shartel Avenue.
Larry and Anna Davis are the owners of Cafe do Brasil in Midtown. [PHOTO BY PAUL HELLSTERN, THE OKLAHOMAN]
Those witnessing the transformation include Larry and Anna Davis, who a decade ago bought a boarded-up former funeral home in Midtown and renovated it into the new home for Cafe do Brasil. Midtown was no sure bet. St. Anthony Hospital was still weighing whether to abandon its historic home across the street. The neighborhood was filled with flop houses and vacant buildings. They had to shift their
approach from their old location along Classen Boulevard. Breakfast no longer worked at the new location, but lunch and dinner were a hit. They started serving brunch on weekends. They stayed positive and also were encouraged by Greg Banta, who at the time was buying up properties and creating an ambitious master redevelopment plan. Banta was optimistic on his visits, to one of which he brought his partner Bob Howard. Anna Davis made a plea to the
men: Keep out the chain restaurants. “It’s a very special area,” Anna Davis said. “Let’s keep it local.” The men already had a deal to bring in a Subway restaurant. But every deal since has been local. Upscale restaurants began to pop up across the street. The empty Osler office building across the street was redeveloped into an Ambassador boutique hotel. Howard redeveloped other buildings into a collection of
locally owned shops. It was about a year ago that Larry Davis realized their dreams, their risks and hard work had paid off. They were witnessing their Midtown dream come true. “We were sitting outside eating dinner,” Larry Davis said. “We saw people walking by with dogs. We saw families and couples. All the stores were open, and it was a Friday night. We had 250 people pass by. I never thought it would happen.”
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THE BUSINESS OF ENTERTAINMENT
Sounds of the city BY NATHAN POPPE | ENTERTAINMENT WRITER npoppe@oklahoman.com
This time next year it’s likely you’ll have seen more concerts in Oklahoma City than ever. But, that’s only if you take advantage of three venues that are well into development. The Criterion and The Jones Assembly bookend the east and west of downtown, respectively. The Tower Theatre aims to become a landmark destination for the much-renovated Uptown 23rd District and its warm, glowing sign is a beacon of what’s to come. Oklahoma City has an opportunity to become an alluring concert destination. It’s up to music fans to vote with their feet. Here’s when and what you can expect from each venue’s opening this year.
THE CRITERION National talent in an intimate setting. That’s the promise of the venue, which opened with its first concert in late March — with Tulsa’s Ben Rector. Scott Marsh, general manager of the venue, said he knew he’d be cutting it close on opening day. He wasn’t kidding — paint was still drying on opening day — but the roster of shows planned for the venue is no joke. Live heavyweights My Morning Jacket, Sturgill Simpson and Rick Springfield are joining diverse offerings such as a hiphop dance concert featuring Silento and a gospel concert from Kirk Franklin. The Criterion looks to fill a mediumsized venue void in Oklahoma City that catches rising talent before they pack stadiums and festivals. The Criterion aims to be the first of many new reasons to visit the east edge of downtown Oklahoma City.
TOWER THEATRE Progress has been slow but steady for this Uptown 23rd addition. On March 4, electricians stood under a freshly hung chandelier that added to the new paint job on the back of the venue. The theater already has a weighty history of providing Oklahoma City with entertainment, so this new rendition comes
paired with expectations. Although the renovations won’t be complete until summer, the Tower’s vintage-style ticket window is a good place to start. It’s the first and last thing you’ll see in a venue that holds a lot of promise. The theater’s floor is built at a decline, so short concert goers will have a chance of getting a decent views for general admission shows that aren’t seated. Above in the balcony, you’ll be able to duck out of your seat and grab a drink at the Savings & Loan Co. bar. Also upstairs, a green room for talent sits next to what’ll become a audio and video recording studio. The Tower Theatre is built with more than just concerts in mind. Plays, movies and a lot more could be featured on this versatile venue’s stage. Expect the theater to help anchor another new bar and restaurant, both of which border the venue.
THE JONES ASSEMBLY Picture your favorite restaurant that has an inviting patio. Now attach a music venue to it. That’s the mission for Jones Assembly — for music and dining to coexist. That shouldn’t be a stretch of the imagination. The upcoming restaurant and concert hall will open just south of 21c Museum Hotel, a massive hotel renovation project. The idea for Jones Assembly started with simply music because owners and operators Graham Colton, Brian Bogert, Fred Hall and Brittany Sanger all loved music. Once they got into the space, the idea grew to include a restaurant, bar and patio. That way, the venue wouldn’t have to rely entirely on concerts. It’ll be open nearly every day to cater to hungry and thirsty patrons. Expect this project to make the west side of downtown Oklahoma City a new entertainment destination.
Graham Colton performing live. The Oklahoma City-based musician is also a co-owner and operator of the upcoming Jones Assembly venue. [PHOTO BY NATHAN POPPE, THE OKLAHOMAN]
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THE BUSINESS OF FOOD
Menu is fresh with possibilities BY DAVE CATHEY Food Editor dcathey@oklahoman.com
Most of 2015 in the local hospitality industry was marked by historic growth, but by year’s end, signs appeared that the flagging economy had reached local restaurants. Some local restaurateurs have tapped the brakes on projects for 2016, but plenty of interesting new venues are on the horizon and growth this year looks encouraging. Western Concepts plans to unveil a new concept in June, but in the meantime is operating a pop-up restaurant called The Hutch in Nichols Hills Plaza. Chef David Henry is using the time to develop a menu for the new concept, which will focus on craft cocktails and avant-garde bar food. A Good Egg Dining Group’s seafood concept, The Drake, opened to huge crowds in the fall, forcing management to take reservations for lunch and dinner. But by the end of January, it was announced the oyster-rich concept was cutting lunch in favor of weekend brunch and dinner service. Waffle Champion has been an unmitigated success, leading to a walk-up window for late-night dining, Buttermilk Southern Sliders truck, perhaps a location in Tulsa and a pop-up restaurant called Nonesuch that operates Monday nights under chef Colin Stringer. Cultivar Mexican Kitchen opened in March in Automobile Alley. Local businessman Gary Goldman, formerly of Chesapeake, partnered with chef Dean James Max, who has opened farm-to-table concepts all over the country. Sculpted out of the old Goodrich Rubber building, designer Larry Dean Pickering had created an industrial farm-
The Drake, 519 NW 23, Suite 111, opened to great response in 2015. The restaurant is owned by A Good Egg Dining Group and serves dinner and weekend brunch. [PHOTO BY NATE BILLINGS, THE OKLAHOMAN ARCHIVES]
house setting to enjoy a menu focused on sustainability, GMOfree, and organic ingredients. The 137-seat space features seasonal tacos, salads, burritos, bodega rotisserie chicken and specialty quesadillas. Tables are topped with three house-bottled sauces plus fresh salsa available at the counter. Octane-free drinks come from the Maine Root soda company. The salad and burrito stations allow patrons to select from more than 50 fresh ingredients, 10 proteins and 15 house-made dressings. The full-service bar serves craft cocktails, house sangria, and local craft beer and wine. Goldman and Max aren’t the only ones who’ve invested in Mexican fare. After focusing most of its attention on The Drake in 2015, A Good Egg Dining will open Barrios Fine Mexican Dishes in Midtown’s Swanson Tires building
this summer, a second Republic Gastropub in north Oklahoma City’s new Chisholm Creek and perhaps a third in Tulsa while targeting Norman for a fourth Tucker’s Onion Burgers. Barrios, named for two of A Good Egg’s longest tenured chefs, Juan and Jose Barrios, promises to blend classic TexMex and authentic Mexican street food. Shaun Fiaccone and his partners at Picasso’s will open Villa Paseo at the corner of NW 28 and Paseo later in the year. Fiaccone will have help from chef Jonathan Krell, who also plans to open Tine in the arts district. Empire Slice House’s Rachel Cope has plans to open Revolucion, a gourmet taqueria and cantina, on Classen and NW 6 in the old Midtown Service Center building. Cope’s neighbors will include Sunnyside Diner from Hillbilly’s partners Shannon Roper and Aly
Branstetter. Cope also will partner with her Slurp pop-up partner chef Jeffrey Chanchaleune to open Goro Ramen + Izakaya in the Plaza District. Szechuan Bistro will open a second concept in Warr Acres in the spring. Elliot Nelson will bring his Yokozuna concept to the Chisholm Creek development. The new 21c Museum Hotel will unveil Mary Eddy’s Kitchen + Lounge this summer. Michel Buthion has plans to partner with Lindsey Ocker to convert McClintock’s Boots in Stockyards City into an old-time saloon this year. Ludivine chef/partners Jonathan Stranger and Russ Johnson are hard at work on an unnamedas-yet restaurant in Edmond’s ice house, to open in the fall. Perhaps the most eagerly anticipated new restaurant is Nic’s Diner and Lounge, an
ambitious offering from Nic’s Grill legend Justin Nicholas. “I want to give folks a little nicer place with my food,” Nicholas said. That restaurant, with a large basement bar, is set to open in Midtown in April or May. Folks looking for healthier dining have plenty to be happy about with the addition of Provision Kitchen in Nichols Hills Plaza, the Fit Pig in Automobile Alley and a second Organic Squeeze in Midtown. Chef Patrick Clark of The Red Cup started a supper club this year to expand that venerable concept’s offerings. Meanwhile, even grocery offerings have improved with a second Uptown Grocery Co. on N May Avenue near Britton Road, which opened in February, a fourth metroarea Sprouts Farmers Market due in May and the metro’s first Trader Joe’s finally confirmed for Nichols Hills Plaza.
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OUTLOOK 2016: BUSINESS AND TECHNOLOGY
THE OKLAHOMAN | NEWSOK.COM
BEYOND THE BORDERS
Love’s continues expansion of stores across the country BY ADAM WILMOTH Energy Editor awilmoth@oklahoman.com
More than half a century after Love’s Travel Stops and Country Stores sold its first gallon of gasoline, the Oklahoma City-based retailer is expanding its offerings, but not its focus. The company plans to add more than 40 new truck stops each year for the next five to seven years, but it also is adding restaurants, hotels, service stations and fuel options at its locations throughout the country. In growing quickly, Love’s executives say they are focused on not growing too quickly and becoming too spread out. “That’s a concern if you lose focus, but so far that hasn’t happened,” CEO Tom Love said. “Our core business is the highway stop. Everything else is adjusting to opportunities right next door. Finding adjacent opportunities is the best way to grow. It’s close enough to your core that what makes it successful is the same stuff that made the core successful.” Late last year, Love’s celebrated the opening of its 301st truck stop, a sprawling, 10,000-square-foot complex that boasts two restaurants, a gift shop and 106 truck parking spaces. The new store is off Interstate 35 in Guthrie, across the highway from Love’s existing 3,000-square-foot basic travel stop that has been on the site since 1999.
Love’s plans to operate both locations, highlighting the Oklahoma City-based retailer’s growing and evolving strategy of catering to the specific demands of its various customers. “That location does extremely well, but it has no truck fueling,” Love said of the existing location. “We’ll probably cannibalize the older store a bit with gasoline, but not much. We’re all set up to take care of a lot of traffic at the older store. We don’t think that will change very much.” Part of the reason the company plans to operate both locations so close together is because the twin Love’s stops are far from identical, targeting very different customer bases. “The gasoline traffic, the four-wheelers, are a critically important part of our business, but trucks present such a big challenge,” Love said. “They’re big, heavy and bulky, so you have to build with them in mind. Everything has to be stressed that much more for the truck traffic.” Also, convenience store industry data shows that 70 percent to 80 percent of traffic to a gas station on one side of a highway comes from drivers traveling in that direction. “Stores directly across from each other often are not considered competition because of the inconvenience of taking a left-hand turn,” said Jeff Lenard, spokesman for the National Association of Convenience Stores. “One store will get one traffic pattern, and the other will get an
entirely different traffic pattern. One can be strong in the morning, while the other is strong in the evening.”
EVOLVING FOCUS When Love’s began in 1964, the company concentrated only on selling fuel. Less than a decade later, the oil embargo nearly forced the fledgling company out of business. “The oil embargo in 1973 hit us like a dose of cold water,” Love said. “We realized how vulnerable we were with handling just one commodity. That’s when we started building small convenience stores. Very few people were doing that. We made them self-service, which wasn’t being done in Oklahoma.” Fuel now is a small part of the Love’s empire, although the many pieces are closely related to the fuel and convenience store business. “Our core business is our highway store, but we wind up with five or six profit scenarios under one roof,” Love said. The newer stations boast two or three branded restaurants. The company this year added hotels to several of its locations. Four hotels are operational now and another eight are under construction. Five years ago, the company began selling heavy-truck tires and providing tire service. “That’s grown like top seed,” Love said. “It’s a piece of diversification that’s worked for us. We’re pushing pretty hard on that.” The company has more than 200 truck
tire sales locations and plans to expand to more than 250 next year. The locations also include areas for the sale of electronics and apparel. “Truck drivers can’t shop at Walmart. They have to park their big trucks someplace,” Love said. “Drivers will do their Christmas shopping with us for the same reasons. We do everything but help them wrap.” Lenard said convenience store and truck stop operators throughout the country are looking for new ways to boost revenue as profit margins on gasoline have dropped over the past several years. Gasoline and diesel typically represent about 70 percent of a convenience store’s sales, but only 30 percent of its profits, he said. Credit card companies often make about as much on fuel sales as the retailer. “You make your profits inside the store,” Lenard said. “No matter how big the tank is, if a trucker comes in, gets gas and puts it on a credit card, you’re making some money, but not much. But if that customer comes in, sits down, gets a meal, stocks up on other items and maybe even stays the night, then you have money coming in.” The trend in some ways is a return to the industry beginnings. “It’s back to the future,” Lenard said. “In the ’40s and ’50s you would often see someone own a gas station, hotel and restaurant together. They even had tire repair and batteries.”
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SUNDAY, APRIL 10, 2016
THE OKLAHOMAN | NEWSOK.COM
‘LA 29’
People visit booths set up along SW 29 on Oct. 18 during Open Streets OKC. The third annual event drew more than 4,000 people. [PHOTO BY DOUG HOKE, THE OKLAHOMAN ARCHIVES]
Hispanic businesses thrive along SW 29 BY BRIANNA BAILEY Business Writer bbailey@oklahoman.com
The SW 29 District’s unofficial motto is “Mi Calle Es Su Calle” — my street is your street. The SW 29 District, or “La 29,” is an effort to unite business and property owners on SW 29. The predominantly Hispanic area is one of Oklahoma City’s busiest commercial streets and home to more than 400 businesses, many of them family-owned, according to the Greater Oklahoma City Hispanic Chamber. With the encouragement of the Greater Oklahoma City Hispanic Chamber, La 29 is trying to get the SW 29 Corridor, between Shields Boulevard and S May Avenue, designated as a Business Improvement District. If the group gathers enough signatures
to form the district, property owners will pay a special property assessment to finance services and improvement in the area, such as better sidewalks and extra trash pickup days. La 29 has also held other community events, such as street cleanup days to help improve the appearance of the neighborhood. In October, SW 29 hosted the third annual Open Streets OKC, an effort to promote health and wellness sponsored by the Oklahoma City-County Health Department. The event drew about 4,500 people. The Children’s Day Festival, held each year on SW 29 in April, is one of La 29’s biggest fundraisers. The event has attracted as many as 15,000 attendees. “This is a family community, many of them young Hispanic families. From the beginning, we were committed to focus on the children,” board member Ramiro Vasquez said in a statement.
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OUTLOOK 2016: BUSINESS AND TECHNOLOGY
SUNDAY, APRIL 10, 2016
13
RETAIL
Plaza Mayor, formally Crossroads Mall, is trying to rebrand itself as a center for Hispanic businesses in Oklahoma City. [PHOTOS BY STEVE GOOCH, THE OKLAHOMAN ARCHIVES]
Mall at a crossroads BY BRIANNA BAILEY Business Writer bbailey@oklahoman.com
Since it has been rebranded as Plaza Mayor at the Crossroads, the former Crossroads Mall is still trying to expand its base of retailers geared toward a Hispanic clientele. Situated on the ground floor of the former Dillard’s at Plaza Mayor at the Crossroads, El Parian is Oklahoma City’s first retail business incubator. The hope is that the businesses in El Parian will eventually become successful enough to lease storefronts in the mall, filling it with new shops, said Robert Ruiz, marketing manager for Plaza Mayor at the Crossroads. Tenants can take advantage of business workshops and also get one-on-one consulting sessions. The marketplace has booth space for 53 vendors. So far, businesses in El Parian range from jewelry, perfume and clothing shops to an exterminator. Plaza Mayor is trying to lure more shoppers to the mall on weekends with a mix of programming that includes live music and festivals. The mall has continued to attract a mix of new shops and restaurants, many with a Latin flavor. There are snack stands that sell churros and empanadas, as well as boutiques with bright displays of quinceanera dresses. A bilingual beauty school also recently opened on the ground floor of the mall. Integris Health has also just opened a family clinic in the mall with bilingual staff. The OKC Energy Football Club has also opened a store at Plaza Mayor, where fans can purchase scarves, T-shirts and flags. More than 20,000 people are expected to attend Plaza Mayor’s Cinco de Mayo celebration May 1. Events will include live music, food, horse culture, wrestling, a business expo and activities for kids.
Dora Ochoa, with her store Edgel Joyeria y Novedades, is one of the tenants at Plaza Mayor at the Crossroad’s business incubator in Oklahoma City. [PHOTO BY PAUL HELLSTERN, THE OKLAHOMAN ARCHIVES]
FOR OKC, NEW RETAILERS, GROCERS ARE IN THE BAG BY BRIANNA BAILEY Business Writer bbailey@oklahoman.com
Oklahoma City continues to see new retail developing at a fast clip. The 190-acre Chisholm Creek development in northwest Oklahoma City expects to see the addition of more shops and restaurants this year. Tract 30, a multilevel building, will feature a mix of shops, restaurants and office space. Businesses expect to be open in Tract 30 late this summer.
Another piece of the development called The Pointe at Chisholm Creek will include a hotel, as well as shops and restaurants around a man-made lake. The Shoppes at Quail Springs, a 91,000-square-foot, two story, multi-tenant retail and office center at May Avenue and the Kilpatrick Turnpike developed by Mazaheri
Properties, is also set to open later this year. Exciting things are continuing to develop Oklahoma City’s grocer scene. After years of anticipation, Trader Joe’s is set to open its first Oklahoma City store in Nichols Hills Plaza later this year. Idaho-based WinCo Foods has
Below: Construction continues Jan. 8 at the Shoppes at Quail Springs, 13601 N May. [PHOTO BY NATE BILLINGS, THE OKLAHOMAN ARCHIVES]
plans for as many as four stores in the Oklahoma City metro, including a location at the Portland Plaza Shopping center, 3647 NW 39. Uptown Grocery, which recently opened a new store in The Village at 9515 N May Ave., features amenities including a brick-oven pizza station, a coffee bar, a smoothie bar, a wok station, made-to-order sushi and a pub. Uptown Grocery also has plans for a new store to anchor the King’s Crossing development at NE 23 and Martin Luther King Avenue.
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OUTLOOK 2016: BUSINESS AND TECHNOLOGY
THE OKLAHOMAN | NEWSOK.COM
TECHNOLOGY: INNOVATION DISTRICT
Initiative gets underway in OKC to develop a ‘Nucleus’ hub BY JIM STAFFORD For The Oklahoman
Every workday, the Oklahoma Health Center campus just east of downtown is home to almost 17,000 people who pursue medical education or work in health care, education and research-related jobs. When their workday is done, they go home. Now an initiative is underway to make the 325acre campus more inviting as a place for people to linger after work by creating places to gather, eat, drink and perhaps even live. The Oklahoma Health Center is home to world-renowned research institutions, hospitals and the various colleges of the University of Oklahoma Health Sciences Center. In October, the Brookings Institute announced Oklahoma City as one of two pilot cities that are part of a study into developing an Innovation District. It already has held informational meetings and tours to gather ideas on just what that might look like. As president of the Oklahoma Medical Research Foundation, Dr. Stephen Prescott has been an enthusiastic supporter of the Innovation District concept. “One of our challenges right now is that the Health Sciences Center is not conducive to chance interactions,” Prescott said. “You don’t just bump into people. The idea here is to encourage this type of behavior by connectiveness and making places where people can meet and eat easily.” Innovation Districts feature density in development, housing, walkability and amenities that draw people out of their laboratories and offices. Brookings is working with Oklahoma City partners to determine how best to develop the Oklahoma Health Center campus and adjacent Automobile Alley into a vibrant Innovation District. The initiative includes the Oklahoma Health Center Foundation, the Greater Oklahoma City Chamber, the Presbyterian Health Foundation, the Alliance for Economic
OU’s University Research Park is part of the newly dubbed Innovation District, and is located between the Oklahoma Health Center and downtown Oklahoma City. [OKLAHOMAN ARCHIVES PHOTO]
Development, i2E Inc. and OMRF. Terry Taylor, president of the Oklahoma Health Center Foundation, describes the ultimate goal of an Innovation District as “placemaking.” The current Health Center campus is full of wide streets, unconnected buildings and no place where people can live if they choose or even casually gather. “We are looking to make better physical places within this geographic area,” Taylor said. “We can create a commercial area that will be a people place and will have different uses, different commercial activities. There can be a downtown center, for instance, a nucleus for people to come together when the come to get their lunch, their coffee, whatever. The benefits will be whatever spins off from all of that.” Brookings also suggested taking bold steps to connect the Oklahoma
Health Sciences campus to the Automobile Alley to the west, which would require building a “cap” over the six-lane Centennial Expressway. That “cap” might be a pedestrian bridge, but also could even be a more ambitious park-like green space, said Roy Williams, president of the Greater Oklahoma City Chamber. “Brookings said that will be the biggest transformation your community will ever make,” Williams said. “You will have eliminated a barrier.” Another stakeholder is the Oklahoma Center for the Advancement of Science and Technology (OCAST), which is headquartered in the University of Oklahoma Research Park on the south end of the Oklahoma Health Center campus. The Research Park counts 43 private companies — many of them emerging startups — among its 54 tenants. A formal Innovation District will tie all the key
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elements that spark new ideas and innovation, said Michael Carolina, OCAST executive director. “An Innovation District to me means that research goes on, networking goes on, the opportunity for collaboration and partnerships goes on,” Carolina said. “It’s an integral part of growing the city’s research base, its industrial base and attracting young entrepreneurs.” Said Scott Meacham, CEO at the not-forprofit i2E, which works with many of the state’s up-and-coming startup businesses, the “power of place” will define the area. “I think when you look at the reality of what’s happening around us, we’ve got this power of place here,” Meacham said. “How do you recognize that and plan and foster and nurture the growth of that. I think that’s what the Innovation District is about.” It’s clear that among its proponents, the Innovation District will serve as a hub for Oklahoma City’s innovators and, ultimately, tech-based startups. The only question is what the district will be called. OMRF’s Prescott already is trying out the name “Nucleus,” after calling for suggestions in a newspaper column he wrote. “I’m going to call it that until it’s rejected,” Prescott said with a laugh.
(An Innovation District is) an integral part of growing the city’s research base, its industrial base and attracting young entrepreneurs MICHAEL CAROLINA, OCAST EXECUTIVE DIRECTOR
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OUTLOOK 2016: BUSINESS AND TECHNOLOGY
SUNDAY, APRIL 10, 2016
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TECHNOLOGY: ENTREPRENEURSHIP
Dozens of startups are helping build OKC’s national reputation STARTING IT UP
BY JIM STAFFORD For The Oklahoman
A fast-growing Oklahoma City startup named WeGoLook has established itself as a pioneering crowd-sourcing business trailblazer, creating a market where there literally wasn’t one before. WeGoLook is one of dozens of new ventures that have helped build Oklahoma City’s reputation on the national scene as an emerging center for startups. In the past two years, Oklahoma City has been ranked the nation’s No. 1 city by CNN/ Money for a Business-Friendly Environment, the No. 1 Best City to Start a Business by Kiplinger magazine and No. 1 among Cities Worth Moving to if You Want to Launch a Business by Entrepreneur magazine. WeGoLook got its start back in 2009 when Robin Smith and her co-founders, Mat Smith and Mark Caywood puzzled over the problem of how to verify an item before buying it online. There was no way to ensure that a distant piece of property, vehicle or electronic bought on an online auction was actually as it was listed. So, the trio decided to invent a way. They called it WeGoLook. The company would use contract workers it calls “Lookers” from across the country to go inspect property or real estate, take photos, write a report and file it online. Think, “Uber of Inspections.” Buyers would pay a nominal fee and be able to access the report and photos online, as well, armed with information they wouldn’t otherwise have access to. Robin Smith, now the company’s CEO, spells out how it works: “You’d like to purchase a pinball machine on eBay that is located in Kentucky but you are in California,” Smith said. “You’re not sure if the listing is real or if the item is represented correctly. You would simply purchase a WeGoLook report and our Looker closest to the pinball machine would take multiple current photos, video a working demonstration plus answer any custom questions you may have.” WeGoLook and the Looker accepting the job split the fees that begins at only $69 for a basic report. By 2012, WeGoLook had 7,400 Lookers nationwide and two full-time employees at its downtown Oklahoma City location. Fast forward to the end of February of this year as the company boasts more than 24,000 Lookers and 83 fulltime employees. Robin Smith calls it the “sharing economy or gigeconomy,” similar to that of the ride-sharing philosophy of Uber and its worldwide fleet of contract drivers. Individual Lookers across the nation, Canada, the United Kingdom and Australia, are offered jobs in their area via a mobile app and can decide to accept them or ignore them. WeGoLook offers a broad menu of services, including property, auto heavy equipment and marine inspections, as well as custom tasks such as researching and picking up documents from a jurisdiction or police report, notary, shipping and pickup and delivery. Enterprise customers now include some of the nation’s top financial services and insurance companies, along with eBay motors and other large auto and equipment auction businesses who utilize WeGoLook for “On-Demand Inspections” while supplementing their own labor force with Lookers. Locally, i2E and other Oklahoma investors bought into the concept early on. In the fall of 2014, i2E led an investment in WeGoLook of almost $2 million that also included Oklahoma Angel investors. For Oklahoma City, the emergence of WeGoLook and other startups shows that the city’s renaissance over the past two
Here is a list of other notable startups going back to 1998 that have helped put Oklahoma City among the elite of places to start a new business: • Accele BioPharma — Accele Biopharma is a biotechnology business accelerator located in the University Research Park. Founded in 2011, Accele Biopharma and Accele Venture Partners, a related special purpose venture fund, were formed to create a capital-efficient mechanism to identify, finance and manage groundbreaking early stage life science technologies. HTTP://ACCELEBIO.COM • Analytical Research Laboratories/DNA Solutions/The Kupiec Group — Sister companies operating under the ownership of Tom Kupiec, Ph.D., a chemist who built the businesses from three people and 1,500 square feet in 1998 to a contract pharmaceutical R&D, genetic testing and forensic expertise enterprise that now employs more than 100 people at Oklahoma City’s University Research Park. HTTP://ARLOK.COM, HTTPS://DNASOLUTIONSUSA.COM
• Arthrokinex — Founded in 2014, Arthrokinex has developed a treatment for debilitating joint pain that uses the patient’s own blood to bring relief. WWW.ARTHROKINEX.COM • Biolytx Pharmaceuticals — A pharmaceutical company developed by Dr. Anne Pereira and the University of Oklahoma Health Sciences Center, Biolytx is developing a novel antibiotic peptide for use in treatment of serious hospital-acquired infections, including those resistant to current antibiotics. Founded in 2005. WWW.BIOLYTXCORP.COM • Caisson Biotech — Caisson Biotech is biopharmaceutical company focused on the development and commercialization of innovative drug delivery systems, HEPtune®, utilizing a naturally occurring sugar polymer heparosan. Founded in 2009, Caisson signed a licensing deal in 2014 with Novo Nordisk valued at $167 million. WWW.CAISSON BIOTECH.COM
Dirk Spiers, of Spiers New Technologies, talks about his startup company that works on electric car batteries in Oklahoma City. [PHOTO BY STEVE SISNEY, THE OKLAHOMAN ARCHIVES]
• Charlesson LLC — A pharmaceutical company creating therapeutics to treat eye diseases such as age-related macular degeneration, diabetic retinopathy, ocular Inflammation, angiogenesis and systemic diabetes. Founded in 2003. HTTP://CHARLESSONLLC.COM • Cytovance Biologics — Founded in 2003, Cytovance Biologics is a biopharmaceutical contract manufacturing company specializing in the production of therapeutic proteins and antibodies from both mammalian cell culture and microbial fermentation. In addition to its cGMP manufacturing services, the company offers process development, cGMP cell banking and support services. Recently sold to a Chinese group for $206 million. WWW.CYTOVANCE.COM • Driven Analytics — Founded in 2014, Driven Analytics is an automotive technology company that uses connected car technology to help dealerships increase customer retention, enhance average repair order value and improve repeat sales to existing customers. WWW.DRIVENINFO.COM
• Dormatarg — Developing drugs that show promise in halting the spread of cancer by attacking dormant cancer cells before they can spread to other parts of the body. Founded in 2007, the company’s first target is breast cancer. HTTP://DORMATARG.COM/FIGHT_CANCER.HTML
Paycom campus at 7501 W Memorial Road in Oklahoma City. [PHOTO BY STEVE GOOCH, THE OKLAHOMAN ARCHIVES]
• EpimedX — EpimedX was founded in 2011 with the mission to develop innovative new treatments blood diseases such as sickle cell disease, beta-thalassemia, and malaria without dangerous or harmful side effects. HTTP://EPIMEDX.COM • Exaptive — Launched in 2011, Exaptive has created a technology platform that allows researchers and others to manipulate large amounts of data and extrapolate relevant information for use in other applications. The company relocated to Oklahoma City from Cambridge, Mass. WWW.EXAPTIVE.COM • MedEncentive — Evidence-based medicine and a patented “declare and confirm” medical treatment process help employers, health insurers and governments of all types contain their health care costs. Founded in 2005. HTTPS://MEDENCENTIVE.COM • Moleculera Labs — Moleculera Labs provides clinical testing services for individuals suspected of suffering from treatable autoimmune neurologic conditions known as PANDAS and PANS. The company was founded in 2011. WWW.MOLECULERALABS.COM • Monscierge — Monscierge is an international interactive software company that helps hotels connect savvy travelers to the trusted local recommendations they seek on-site and on-the-go through Web applications and a mobile app. Founded in 2009, Monscierge’s technology is now used by thousands of hotels worldwide. WWW.MONSCIERGE.COM • Paycom — Launched in 1998 as one of the first web-based HR and payroll technology companies, Paycom offers human capital management technology that provides businesses with one solution that effectively manages the entire employment life cycle, from recruitment to retirement. Now publicly traded, it’s stock is listed on the New York Stock Exchange. WWW.PAYCOM.COM • Pure Protein — Founded in 1999, Pure Protein focuses on the discovery of new targets to diagnose, prevent and treat infectious disease and cancer. Its core technology was developed by William Hildebrand at the University of Oklahoma Health Sciences Center and licensed from OU. WWW.PUREPROTEINLLC.COM • Raisemore — A mobile software platform that fundraisers and notfor-profits use to build brand awareness, recruit new supporters, drive engagement and increase donations. Founded in 2012. RAISEMORE.COM
Janell Pechacek and Waylon Flinn work on laptop computers at Tailwind Interactive’s office, 4010 N Lincoln, in Oklahoma City.
• Selexys Pharmaceuticals — Founded in 2002, Selexys Pharmaceuticals is developing therapeutics for the treatment of inflammation and other indications across a broad range of severe diseases. Its leading candidate is a drug to treat the effects of sickle cell disease. Selexys has signed an acquisition agreement with Novartis Pharmaceuticals, pending successful completion of Phase 2 clinical study, that could be valued at up to $665 million. WWW.SELEXYS.COM • SensiQ Technologies — SensiQ Technologies, Inc. develops and manufactures innovative tools for the advancement of life sciences research. SensiQ offers a suite of instruments and platforms for biomolecular interaction analysis using Surface Plasmon Resonance (SPR) technologies. Founded in 2005. WWW.SENSIQTECH.COM • Sensulin — Sensulin LLC, is developing a glucose-responsive insulin for type I/II diabetes, with the goal of developing a single-dose 24-hour insulin. Sensulin may eliminate the need for separate basal and prandial insulin injections, offer a substantial improvement in the standard of care, and most importantly, give those with diabetes a chance at a normal life. It was founded in 2011. WWW.SENSULIN.COM • Sigma Blood Systems — Sigma Blood is a software company that develops technology specifically for the nation’s blood banking industry. Sigma Blood’s products and services focus on meeting the needs of blood banking organizations and their specific quality control requirements and FDA compliance. It was founded in 2009.
[PHOTO BY PAUL HELLSTERN, THE OKLAHOMAN ARCHIVES]
WWW.SIGMABLOOD.COM
decades has created an environment where entrepreneurs such as Robin Smith want to grow their businesses, said Scott Meacham, CEO of i2E Inc., a not-for-profit that provides investment capital and business advice to new ventures.
“The thing I think of that is most important about Oklahoma City is it is a community that has shown a willingness to invest in itself and dream big,” Meacham said “And you are not going to accomplish big things if you don’t dream big.”
• Spiers New Technologies — Spiers New Technologies is the world’s leading full-service provider of “4R” services (repair, remanufacturing, refurbishing and repurposing) for advanced battery packs used in hybrid and electric vehicles. It was founded in 2014. WWW.SPIERSNEWTECHNOLOGIES.COM
• Tailwind — Launched in 2011, Tailwind provides analytical insights, scheduling and much more for brands, bloggers and marketers using the Pinterest social network. Today, more than 50,000 brands and 400 top marketing agencies use the Tailwind app to increase their reach on Pinterest. WWW.TAILWINDAPP.COM
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OUTLOOK 2016: BUSINESS AND TECHNOLOGY
THE OKLAHOMAN | NEWSOK.COM
TECHNOLOGY: TELECOMMUNICATIONS
Companies race to bring amped-up Internet service to OKC market BY BRIANNA BAILEY
Jill Szuchmacher, director of expansion for Google Fiber, discusses Google Fiber’s decision to explore bringing its service to Oklahoma City as Mayor Mick Cornett listens Oct. 28 on the rooftop of the Oklahoma City Museum of Art. [PHOTO BY NATE
Business Writer bbailey@oklahoman.com
Internet providers have been in a race to bring gigabit Internet service to the Oklahoma City market. In October, Google said it was eyeing Oklahoma City as a place to expand its super-fast Internet service and cable television platform called Google Fiber. AT&T said in December that it plans to expand the availability of its GigaPower network in Oklahoma City in Tulsa beginning this year. And in January, Cox Communications launched its gigabit Internet service for residential customers in Oklahoma. Marketed under the name “G1GABLAST,” Cox now offers speeds 100 times faster than the average speed in the U.S. today. The Cox service offers speeds as fast as 1,000 megabits per second that will allow customers to download an estimated 100 songs in 3 seconds. “Cox has always had an evolving and dynamic plan to continue to advance our services to meet the growing demands of our customers,” Region Manager Percy Kirk said. “By bringing gigabit Internet speeds to the market, Cox is once again ensuring our technology readiness long into
BILLINGS, THE OKLAHOMAN ARCHIVES]
the future.” Gigabit service is being offered to residential customers starting at $99 per month for the first year of a two-year contract, according to Cox’s website. Cox employs about 1,800 in Oklahoma, and its investment in adding the service to Oklahoma is part of about $1 billion in infrastructure investments the company has made in the state over the past decade, Oklahoma City Mayor Mick Cornett said. Meanwhile, Google’s announcement means the com-
pany will take an in-depth look at everything from Oklahoma City’s existing infrastructure to its topography and geology to determine whether a Google Fiber expansion will be possible in the city. But it also might mean that Google ultimately decides not to come to Oklahoma City, Jill Szuchmacher, director of expansion for Google Fiber, said in a phone interview. “The announcement really marks a deeper exploration,” she said.
Building a Google Fiber network in Oklahoma City would mean a multimillion dollar construction process of thousands of fiber route miles. City permitting departments often see their workloads increase as much as 100 times during the construction process, Szuchmacher said. “It’s a huge infrastructure process that involves thousands of route miles of infrastructure,” Szuchmacher said. “What we want to really do is collaborate with the city to minimize disrup-
tion to the city.” Like getting an NBA team, Google Fiber service will be another reason that more businesses look to Oklahoma City for expansion, Mayor Mick Cornett said. Google chose Oklahoma City for a possible expansion because of its vibrant tech scene and business-friendly climate, Szuchmacher said. “There’s a burgeoning tech scene with a lot of startups and a lot of activity that super-fast Internet can really help,” she said. Google Fiber is able to provide an Internet connection speed of up to one gigabit per second for downloads and uploads, about 85 times faster than Internet service most Americans have at home. Google Fiber also would give Oklahoma City residents access to its television service that offers subscribers more than 150 high-definition channels. Google Fiber also is offering a “free” service option, which allows subscribers to pay $300 to have the service installed and then get free Fiber service after the fee is paid off in installments as low as $25 a month. The Google Fiber was first rolled out in the Kansas City in 2013 and has been expanded to many Kansas City suburbs.
THE OKLAHOMAN | NEWSOK.COM
OUTLOOK 2016: BUSINESS AND TECHNOLOGY
SUNDAY, APRIL 10, 2016
DEFENSE CONTRACTING
Boeing’s headquarters is shown in southeast Oklahoma City [PHOTO BY CHRIS LANDSBERGER, THE OKLAHOMAN ARCHIVES]
Boeing job numbers soar in OKC BY BRIANNA BAILEY Business Writer bbailey@oklahoman.com
With its proximity to Tinker Air Force base, The Boeing Co. has made its Oklahoma City campus headquarters for its Aircraft Modernization and Sustainment division. Boeing has hired about 500 people for its Oklahoma City operations over the past year and plans to hire 600 more by the end of 2016. Most of the positions Boeing is hiring for are highly skilled engineering jobs, as well as some support positions. “We see a bright future here in Oklahoma City
because it’s such a skilled and motivated workforce,” said Ben Davis, a company spokesman. The average annual wage for the new jobs Boeing is bringing to Oklahoma City is about $90,000 per year. The expansion is projected to have an economic impact of $637.7 million on Oklahoma City during the first four years, according to city documents. Construction is underway on a new $80 million building at Boeing’s campus near SE 59 and Air Depot. The new laboratory building will house engineering employees as part of the company’s Oklahoma City expansion.
Defense contractor has place for displaced energy professionals BY PAULA BURKES Business Writer pburkes@oklahoman.com
Delaware Resource Group LLC — an Oklahoma Citybased defense contractor with a global presence — is hiring displaced Oklahoma oil and gas professionals to join its expanding business. DRG, which primarily uses simulators to train airmen and women to fly and maintain military aircraft, last month hired a former Devon Energy Corp. analyst for its growing logistics business, said Philip Busey Jr., executive vice president and chief communications officer. Among other things, the firm secures parts and products for some 90 aerospace companies including Boeing Corp. and Lockheed Martin, along with recruiting and filling engineering positions for them through a professionals services arm, Busey said. As of March 29, DRG had five open recruiter and business development positions, and expected to add three more positions within the month, Busey said. Pictured is a mock-up of a replica of a P-51 Mustang that will hang in the atrium of the new Quail Springs Office Park headquarters of Delaware Resource Group. Founded in 2002, DRG has annual sales of nearly $100 million. It employs 650 worldwide, mostly across the U.S. but also in Japan, India, Qatar, Germany and wherever needed. [PHOTO PROVIDED]
Founded in 2002 by his father, Phil G. Busey Sr., DRG has annual sales of nearly $100 million, Busey said. It employs 650 worldwide, mostly across the U.S. but also in Japan, India, Qatar, Germany and wherever needed, he said. In Oklahoma, DRG has 125 employees, including 40 at its leased 17,000-square-foot headquarters at 4747 Gaillardia Parkway. The company by late summer will move into an owned $11.2 million, 38,000-square-foot building currently under construction on a nearly 5-acre lot in the Quail Springs Office Park northwest of N May Avenue and Memorial Road. By move-in, the building will be 80 percent occupied, Busey said. “A family-owned company like DRG is a testament to the diversification that Oklahoma’s economy has had over the past 20 to 25 years,” he said. Much like the replica of Wiley Post’s Winnie Mae plane that hangs in the atrium of the Oklahoma History Center, DRG’s foyer will feature a P-51 Mustang, Busey said. The same Arizona company that built the Winnie Mae replica is building the P-51 Mustang.
Mayor Mick Cornett, left, Michael Emmelhainz, Leanne Caret, Gov. Mary Fallin and Jeb Boatman prepare July 29 to push the lever that will start the flow of the concrete during a ground breaking ceremony for a new research facility at Boeing in Oklahoma City. [OKLAHOMAN ARCHIVES PHOTO]
A family-owned company like DRG is a testament to the diversification that Oklahoma’s economy has had over the past 20 to 25 years. PHIL G. BUSEY JR., EXECUTIVE VICE PRESIDENT AND CHIEF COMMUNICATIONS OFFICER FOR DRG
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OUTLOOK 2016: BUSINESS AND TECHNOLOGY
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ENERGY
Oil, natural gas companies adapt processes during price slump BY ADAM WILMOTH Energy Editor awilmoth@oklahoman.com
Low oil and natural gas prices over much of the past two years have led to thousands of layoffs, shed billions of dollars from corporate profits and led several local companies to bankruptcy protection. With such a widespread downturn, few oil and natural gas companies have experienced a comfortable ride over the past year. Executives at Oklahoma City-based Flogistix hope to buck the trend with a new downhole services division that the company unveiled in March as a way to help companies boost production from existing natural gas wells. “You already own the wells, so you want to get as much out of them as you can,” Flogistix CEO Mims Talton said. “When the rig count plummets, people spend
more on what they already own.” Founded in 2011, Flogistix specializes in equipment designed to boost production and capture and sell methane that otherwise would have vented into the atmosphere. The company sells, leases and operates compressors, fluid pump systems and other equipment designed to optimize oil and natural gas production. The new division uses composite coil tubing units and nitrogen membrane units to clear out oil and other liquids, allowing more natural gas to flow through existing wells. The new systems can be used along with the pumps and other equipment Flogistix has focused on for most of its history. The application tends to be fit for older, vertical wells, but it also can be used on horizontal wells and newer wells that have lower pressure, Talton said. Adding the new product line and diversifying the company’s operations prom-
CNG expanding despite slowdown BY ADAM WILMOTH Energy Editor awilmoth@oklahoman.com
Compressed natural gas fueling stations continue to grow throughout the state even as low gasoline prices have reduced one of the fuel’s main selling points. Oklahoma City-based Sparq Natural Gas in December opened its first CNG fueling station in the state with its pumps at Hutch’s convenience store in Watonga. “This feels like coming home for us,” Sparq CEO Norman Herrera said. “To be in our state and to be part of the 115 planned and operational sites in Oklahoma is important for us.” New CNG fueling locations in Oklahoma also are under construction or planned by OnCue Express, 7-Eleven Stores and Love’s Travel Stops and Country Stores. CNG demand slowed throughout much of 2015 as gasoline prices tumbled, but interest remained strong for fleet and larger vehicles, said David Hutchinson, president of Elk City-based Hutchinson Oil Co., which owns 15 Hutch’s locations in Oklahoma and Kansas. “The demand was growing at a pretty good pace for a while when gasoline prices were high,” he said. “Now that gas prices have come down, the lightduty vehicle market still makes sense, but there’s not as much demand. It’s not growing as strong as it was. But the heavy duty people are still looking at it. It still makes sense for them. They’re looking at it on a long-term basis.” The CNG industry received a boost in the last week of 2015 when Congress passed the Protecting Americans from Tax Hikes Act of 2015 (PATH), which continued several federal tax credits that expired in 2014, including a 50 cent-per-equivalent-gallon tax break for compressed natural gas, liquefied natural gas, propane and other select alternative fuels. The extension is for 2015 and 2016. “Because the credit is forward-looking throughout 2016, it allows us to bring our price down and make it much more competitive against traditional fuels,” said Scott Minton, OnCue’s CNG business development manager. Minton said the tax cut is an important mechanism for promoting the use of alternative fuels. The company this month cut its CNG price by 70 cents to 99 cents a gallon at its metro-area locations. “We set our price based
on our costs and what price we need to build new CNG infrastructure,” Minton said. “At some point there’s a break-even point that allows us to continue to grow stations.” Not all CNG retailers were pleased with the tax credit. 7-Eleven CEO Jim Brown said he passed along the tax break because the money shouldn’t have been given to retailers and doesn’t belong to him. “It’s not our money. We weren’t going to touch it,” he said. “I’m angry about it. The government should work for the people. That kind of thing doesn’t do anything to build confidence in our government or elected officials.” Brown responded to the tax break by slashing his CNG retail price by $1 to 39 cents a gallon.
Behind only California Oklahoma is No. 2 behind only California with 90 public CNG filling stations statewide. The state boasts more than 10 percent of the 892 public CNG stations throughout the country. Low gasoline prices have slowed demand for light-duty CNG cars and trucks, but medium-duty and fleet vehicles are still been converting to CNG, Herrera said. “If you have trash trucks or a delivery fleet or bottling or distribution, that’s the customer who benefits now more than ever,” Herrera said. “In the short term, it’s a tougher decision, although growth is still happening.” The tax credit discount, however, could help the industry grow even among smaller vehicles, Minton said. “My hope is that other retailers follow suit and bring prices down,” he said. “You would expect fleets to take notice and be able to justify CNG again. It’s been very difficult for fleets to justify a $10,000 conversion with only a dime or 15 cent (per gallon) difference. But now this allows fleets to justify converting more vehicles or putting additional vehicles back into the fleet.” Along with the tax credit, CNG prices also have been affected by the price of natural gas, which is at its lowest level since 1999. CNG proponents have promoted the fuel largely because of its price stability, shifting only a few cents in either direction with much larger changes in the price of natural gas. But the natural gas price drop over the past few months has led to some savings at the CNG pump, Minton said.
ises to help the company and its clients in today’s low-price environment and amid higher prices in the future, Talton said. “If you can make services and techniques work in this low-price environment, they’ll work for a long time,” he said. “Maximizing production volumes and increasing the bottom line never go out of style,” he said. The success of shale natural gas production has flooded the market and led to seven years of low prices. Despite low prices, production levels continue to grow throughout the country, holding prices at low levels. “For many of our customers, the revenues and expenses are upside-down,” Talton said. “They can shut their wells in and hope for better days, or they can apply optimization ideas to the well to get volumes up.” The new division and focus at Flogistix
is an example of how many oil and natural gas companies have adapted their technology and processes over the past two years to stay in business while commodity prices have tumbled, Tulsa money manager Jake Dollarhide said. “Technology is always going to revitalize industry,” said Dollarhide, president of Longbow Asset Management Co. “New ideas are always going to shake things up and bring opportunity to where maybe it was thought the end had come.” It makes sense to focus on existing wells at a time when few companies are drilling and operators have mothballed more than 1,500 drilling rigs, he said. “It’s expensive to drill, but technology can revitalize existing wells,” Dollarhide said. “We’ve already seen this with oncethought-retired wells brought back to life by horizontal drilling and hydraulic fracturing.”
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