Palm Beach County BUSINESS | Spring 2019 by Passport Publications

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Quarterly Economic Development Magazine | Spring 2019

Transforming

Talent Pipeline Task Forces Facilitate Economic Development Success

New Opportunities in theGlades

Welcoming Another Financial Firm

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contents

Palm Beach County Business Quarterly | Spring 2019

F E AT U R E S

Transforming the Talent Pipeline

TBC Continues Its Longstanding Industry Leadership

9 12 18

CEO Proﬁle: Rob Flippo, MobileHelp

Glades Region: An Ideal Location For Industrial Business

BDB’s National Ad Campaign

DEPARTMENTS News and Events Technical and Career Training Convergence Investment Partners Real Estate Broker Proﬁle: Tom Burst

4 10 11 14

14 16 20

BDB 2019 Site Consultant Familiarization Tour BDB Task Forces Facilitate Economic Development Success County Corner

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InTheKnow from the

CEO

Building Our Region’s Talent Base When companies consider

relocating or expanding in Palm Beach County, the quality of our workforce is a driving factor. They know that having access to a large, diverse pool of skilled professionals, as well as technical and support personnel, is crucial for achieving long-term business success. With the U.S. unemployment rate hovering around 4 percent, it can be a challenge for companies throughout the nation to recruit and hire the right people. That’s why the Business Development Board has made it a priority to build our region’s talent base. We have forged strong partnerships with the School District of Palm Beach County, along with our private schools, colleges, universities and technical training institutions, and CareerSource Palm Beach County, in order to meet the evolving demands of employers. In this issue, you will learn how these collaborative initiatives, such as the “Claim Your Future Showcase”, are bringing education, business and civic leaders into alignment with the needs of our 21st century workforce. It takes a clear vision, as well as willingness to dig into the nitty-gritty details, in order to develop a sustainable pipeline of talent, and I applaud our partners for their commitment to this vision.” We also understand the power of a wellpaying job and a rewarding career to transform the lives of individuals, families and communities. In some cases, this might require several years of post-secondary education, leading to an undergraduate or graduate degree. But there are many attractive positions in the trades, manufacturing, logistics, health care, services and other sectors that are open to high school graduates through apprenticeships, on-the-job training, a certification program or an associate degree. We all need to be aware of these options in helping young adults make their career plans. Thanks to our economic development partners, the BDB is capitalizing on Palm Beach County’s many assets, including our growing workforce. In the past six months, the BDB has assisted 10 companies that have created nearly 600 direct jobs resulting in more than $70 million in capital investment to Palm Beach County. In addition, the BDB has nearly 20 prospects in the pipeline that could create more than 1,400 possible jobs this year. We are off to a great start in 2019 and look forward to building our momentum in the months ahead. Thank you again for your support.

Kelly Smallridge President and CEO

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MANAGEMENT TEAM Kelly Smallridge President & CEO 561.835.1008 Ext. 4121 ksmallridge@bdb.org Gary Hines Senior Vice President – Administration 561.835.1008 Ext. 4111 ghines@bdb.org Lisa Anderson Vice President – Private Funding 561.835.1008 Ext. 4110 landerson@bdb.org Kristen Boyd Assistant Vice President – Marketing & Media Relations 561.835.1008 Ext. 4106 kboyd@bdb.org Shereena Coleman Vice President – Business Facilitation & The Glades Region 561.835.1008 Ext. 4125 scoleman@bdb.org Robert P. Mino Vice President – Life Sciences 561.835.1008 Ext. 4109 rmino@bdb.org Shawn Rowan Vice President – Business Recruitment, Retention and Expansion 561.835.1008 Ext. 4108, srowan@bdb.org Tim Tracy Vice President – Member Events 561.835.1008 Ext. 4117 ttracy@bdb.org Tim Dougher Vice President – Business Recruitment, Retention and Expansion 561.835.1008 Ext. 4131 tdougher@bdb.org

PUBLISHED BY

Passport Publications & Media Corporation 1555 Palm Beach Lakes Blvd., Suite 1550 West Palm Beach, FL 33401 561.472.8778 • PassportPublications.com Palm Beach County Business Quarterly is published by Passport Publications & Media Corporation, on behalf of the Business Development Board of Palm Beach County, Inc. All rights reserved. No part of this publication may be reproduced without the expressed written consent of the Business Development Board of Palm Beach County and the publisher. © 2019 Passport Publications & Media Corporation

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NEWS

FPL Plans to Make Florida a Global Leader in Solar Power

Florida Power & Light is planning to make Florida a global leader in solar power by installing 30 million solar panels by the end of the next decade. This would be the largest installation of solar panels by a regulated utility in the world, and provide a 67-percent fleet-wide reduction in carbon dioxide (CO2) emissions rates by 2030 as compared to the national average, according to FPL. FPL is the Sunshine State’s largest solar producer, generating 10 times as much solar power in 2018 than it did in 2016. FPL and its sister company, NextEra Energy Resources, are already the world’s largest producer of renewable energy from the wind and sun and, when this plan is completed, FPL expects to be the largest utility owner and operator of solar in America. “FPL is not your traditional electric company,” said Eric Silagy, president and CEO of FPL. “We’re a technology company that delivers power, and we’ve long believed in making smart, forward-thinking infrastructure investments to produce tangible, long-term benefits—cleaner air, lower electric rates and reliable service—for our customers and our state.” PBCB

FAU Max Planck Academy to Boost STEM Education Offerings Palm Beach County high school students can now work sideby-side with preeminent scientists at one of the world’s leading neuroscience research institutions. The Florida Atlantic University Max Planck Academy on the John D. MacArthur Campus in Jupiter stands to redefine approaches to STEM (science-technologyengineering-and-math) education, not just in South Florida but nationwide. “We are offering exceptional high school students an extraordinary opportunity to work alongside renowned scientists,” said Joel Herbst, Ed.D., superintendent of FAU PK-12 schools and educational programs. “This is a significant pivot from the traditional model of delivering education. As the only program of its kind in the world, the Academy will serve as the new model for STEM education delivery.” The FAU Max Planck Academy is the latest partnership between FAU, the Max Planck Florida Institute for Neuroscience (MPFI) and the Germany-based Max Planck Society, expanding on similar opportunities for FAU’s graduate and undergraduate students. This unprecedented program will open the laboratories of Max Planck to high school students, allowing them to participate in world-class research and scientific discoveries as part of their curriculum. PBCB

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Year To Date Projects TOTALS: 583 Jobs 565,100 Square Feet $70.7M Capital Investment

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NEWS

County Celebrates

PBSC to Open

The Palm Beach County Board of County Commissioners, in support of the Business Development Board of Palm Beach County (BDB) and community-wide efforts, passed a proclamation declaring February 11-15 as Economic Development Week in Palm Beach County. The purpose of this first-time initiative is to promote the importance of economic development for Florida communities and to deepen the understanding and appreciation of the work and value of economic, workforce and community developers’ contributions to Florida’s business climate, job retention and growth, tax base and overall quality of life. Economic Development Week launched several new initiatives, one of which is in collaboration with South Florida’s economic development organizations. On February 15, the BDB, Greater Fort Lauderdale Alliance and Miami-Dade Beacon Council met in West Palm Beach to discuss tri-county collaborative opportunities and explore additional ways to market the region to larger prospects. PBCB

Palm Beach State College is launching a new Center for Excellence in Engineering Technology at the Belle Glade and Palm Beach Gardens campuses with a more than $2 million award from the Florida Job Growth Grant Fund. Slated to open in August, the center will allow the college to expand its engineering program offerings and provide a more collaborative, multidisciplinary approach to boosting the number of highly trained, middle-skill workers to meet the needs of the aviation/aerospace, manufacturing, clean tech and homeland security/defense industries. “We are honored and excited to be one of the 2018-2019 Florida Job Growth Grant recipients,’’ said Ava L. Parker, J.D., PBSC president. “The grant will allow us to enhance and grow our engineering training programs and provide additional career paths for students.” PBSC’s $2,060,919 grant is part of $9 million in awards from the state’s job growth fund. PBCB

‘Economic Development Week’

New Engineering Technology Center

Winter Equestrian Festival

FUN FACT:

Wellington, Florida is considered the equestrian capital of the world. The Winter Equestrian Festival hosts some of the wealthiest people on earth.

The Business Development Board of Palm Beach County hosted its annual gathering of 100 of Palm Beach County’s top business and community leaders at the Winter Equestrian Festival on January 19. The presenting sponsor this year was Bank of America, represented by Fabiola Brumley, Southeast Business Banking Regional Executive & Market President for Palm Beach County. Also in attendance was Equestrian Sport Productions CEO Mark Bellissimo, a director of the Business Development Board, along with BDB Chair Ben Boynton and President/CEO Kelly Smallridge. PBCB

From left, Fabiola Brumley, Ben Boynton, Mark Bellissimo and Kelly Smallridge.

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TRANSFORMING

PALM BEACHCOUNTY’S

TALENT PIPELINE By conducting a countywide workforce study, bringing academic leaders together and connecting high school students with potential employers, the Business Development Board is transforming Palm Beach County’s talent pipeline and preparing the workforce of the future. “We know it is crucial to prepare today’s students for tomorrow’s jobs, while aligning our educational program with the needs of employers,” said Kelly Smallridge, BDB president and CEO. Smallridge noted that Palm Beach County was recently ranked in the top 10 communities in the nation for attracting and developing talent by Emsi, top 50 metro areas for business and careers by Forbes, and top 10 counties for STEM job growth by Business Facilities. With support from JP Morgan Chase & Co, the BDB launched a comprehensive workforce study in 2018 that surveyed more than 7,000 people in Palm Beach County to analyze the area’s labor force. “We have already put those results into action and facilitated nearly 60 meetings and activities since October 2018,” Smallridge said. For example, the BDB connected Palm Beach Atlantic University’s sports broadcasting program with ESPN West Palm Beach for hands-on learning experiences. To the west, the BDB connected TechGarage with Palm Beach State College’s Belle Glade campus to hire local talent as robotics coaches, and also partnered with Boca Raton-based company, LexisNexis Risk Solutions, to host a workshop series on “Females in Technology.” The most recent BDB Academic Leaders Council meeting brought together technology giants representing nearly 7,000 jobs such as 3Cinteractive, Crossmatch Technologies, Digital Resource, DX-WEB, Florida Power & Light, Hotelplanner.com, LexisN exis Risk Solutions, Modernizing Medicine, Office Depot and Ship Sticks.

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Company representatives talked about the technology industry with leaders of Palm Beach County’s academic institutions and how to ensure students are learning the skills needed to fill jobs within some of Palm Beach County’s largest technology companies. The meeting also included a local, regional and state overview of the industry from Palm Beach Tech, South Florida TechGateway and Enterprise Florida. The group explored partnerships and the possibility of building new technology programs together.

PREPARING THE WORKFORCE OF THE FUTURE On February 12, the BDB and the School District of Palm Beach County jointly hosted the “Claim Your Future Showcase,” connecting high school students with area employers. Nearly 5,000 high school students have participated in this annual event since its inception in 2015. “As more companies are attracted to the advantages of doing business here, Palm Beach County will be ready with a skilled and informed pool of qualified workers,” said Kelly Smallridge, BDB president and CEO. The “Claim Your Future Showcase” empowers students to interact with companies such as Aerojet Rocketdyne, LexisN exis Risk Solutions, Biotest Pharmaceuticals, Florida Crystals, Pratt & Whitney and Florida Power & Light by facilitating meetings between business leaders and students. “I am a small business leader of an electric and lowvoltage contracting company,” said Rick Seymour, CEO of Carpenter Electric, president of the Electronic Security Association of Florida and a board member of the

Florida East Coast Chapter of the Independent Electrical Contractors Association. “I cannot express how valuable it is to have access to the PBC high school students to talk about the exciting career potential in the trades.” The fourth-annual showcase included an exhibitor hall with 50 companies representing aviation, aerospace, engineering, manufacturing, life sciences, trades/construction, financial services, public safety, infotech and corporate headquarters. It also included a series of panels with representatives from Florida Power & Light, Palm Beach Sheriff’s Office, Enhance Advisors, JFK Medical Center, Pratt & Whitney, GliddenSpina, Verdex Construction and Carpenter Electric. CareerSource Palm Beach County kicked off the event with a soft skills session where students learned the basics of interacting in the professional world, a skill set that’s been in high demand across all industry sectors. Michael Corbit, director of business development, CareerSource Palm Beach County, said, “It’s a great community event that provides local high school students the opportunity to interface with local businesses to help them identify potential career paths in Palm Beach County.”

Palm Beach County has been ranked n Top 10 communities in the nation for attracting and developing talent by Emsi n Top 50 metro areas for business and careers by Forbes n Top 10 counties for STEM job growth by Business Facilities Dr. Peter Licata, assistant superintendent of choice and innovation for the School District of Palm Beach County, said, “This event is a culmination of an entire community of stakeholders coming together and providing information for our future workforce. It’s great to see the partnership of the BDB, CareerSource and the School District of Palm Beach County aligning our efforts to benefit Palm Beach County and our students.” The 2019 Claim Your Future Showcase sponsors included the BDB’s investor partners Pratt & Whitney, Aerojet Rocketdyne, Bank of America and Boynton Financial Group. Prize giveaways were provided by ESPN West Palm, SunFest and Chick-fil-A, along with swag bags sponsored by Oasis. PBCB

5,000 Palm Beach County high school students have been inspired by the Claim Your Future Showcase

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Continues Its Longstanding Industry Leadership Tire Kingdom Service Centers and its parent company, TBC Corporation, are continuing to expand their industry leadership. Recently, the Palm Beach Gardens-based organization introduced mobile tire installation service in Palm Beach County to better serve the community. The company also recently unveiled the first of its shop-of-the-future locations on Northlake Boulevard. Complete with state-of-the-art business area, digital feature wall, children’s tablets with games, enhanced concession area, large open view to the back shop, upgraded broadband connectivity and digital inspection equipment, this location was designed by customers for customers, with convenience, value and trust as its foundation. “At TBC Corporation, and all of our customer-facing locations, we pride ourselves in exceeding the expectations of our customers, our associates, our franchisees and our shareholders; it is the foundation on which we were built more than 60 years ago,” said Erik R. Olsen, president & CEO of TBC Corporation. “Growth of our people, our locations, our industry and our services has afforded us the opportunities that we have today, and I am confident that, with the support of our 10,500-plus team members across the globe, TBC Corporation will continue to experience growth for many years to come.”

Today, more than 750 corporate associates walk the halls of TBC Corporation’s four corporate offices in Palm Beach County every day with the desire to enable people to live, work and play safely and easily, Olsen said. In just 10 years, the company has more than doubled its workforce; expanded its reach within the state of Florida and throughout the United States, Mexico and internationally; and extended its offerings in retail, franchise, wholesale and e-commerce, all while continuing to support community initiatives that attract hundreds of thousands of tourists to Palm Beach County. PBCB

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More than 750 corporate associates walk the halls of TBC Corporation’s four corporate offices in Palm Beach County.

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CEO PROFILE:

ROB FLIPPO

MOBILEHELP

Rob Flippo is CEO of MobileHelp, a Boca Raton-based company with 220 employees founded 12 years ago. The BDB has assisted the company’s expansion efforts multiple times and recently interviewed MobileHelp for Palm Beach County Business.

Q. What has made MobileHelp thrive in Palm Beach County? A. Though many people don’t remember, the 2 million square feet of space currently occupied by the Boca Raton Innovation Campus (BRIC) was once owned by IBM, who put roots down here many years ago and established the infrastructure to grow the company. After relocating its corporate offices to Raleigh, North Carolina, there was a large pool of technology talent that chose to remain here. Some professionals joined other firms, and some of them started their own, but the resulting effect was a concentrated powerhouse of technologists in one geographical space. That local pool of talent has allowed our technology company to lean heavily into its engineering foundation—positioning us to lead the market in our space.

Q. What’s the latest innovation at MobileHelp? A. As an emergency response company, we recognized a long time ago that the best way for us to help our customers was to excel at providing emergency help if they needed it, and help them manage aspects of their life and health that decrease the probability of an emergency happening. We just launched our tablet-based solution—the MobileHelp Touch—which allows consumers to connect the dots of their life, from pictures of the grandkids to messaging options to vital signs monitoring and, of course, emergency response capabilities. But the first rendering of the tablet is really just the beginning: It has become a way for us to provide our customers with a connection to apps and services to help create a smart home experience. The first of these was a partnership with Amwell®, which gives our customers a direct video connection to doctors in their home state—24/7—to help mitigate (or even eliminate) the need for an in-person office visit or provide an option to get care outside of normal physician business hours.

And we anticipate other such partnerships could easily follow: Access to Uber ride sharing, for example, or online food shopping. Access to online libraries to check out books or to discover educational content specific to a person’s health and hobbies. All these things are possible with the tablet form factor. As we move into the very near future, the delivery of lifeenhancing tools such as these will become much more accessible through technology tools. We look forward to extending our product platforms to allow people to connect in more comprehensive ways with all the aspects of their lives.

Q. What’s your favorite hangout spot in Palm Beach County and why? A. I personally love Delray Beach. It’s always maintained its laidback feel, despite growing rapidly.

Q. How has economic development helped your company grow? A. There are two main ways the BDB has helped our company grow: championing the economic and business incentives involved in our staying in the local area as we grow; and promoting businesses locally, which increases awareness and allows all our organizations to capitalize on our strong community roots. PBCB

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Technical Career Training a National Priority

rom Palm Beach County to Maine, Alaska and Hawaii, technical and vocational career training is a national priority. “There are 7 million unfilled jobs in the U.S. that require some type of certification or associate degree,” said Casey K. Sacks, Ph.D., Deputy Assistant Secretary for Community Colleges, Office of Career, Technical, and Adult Education, in the U.S. Department of Education, Washington, D.C., in a recent interview. “Nearly two-thirds of jobs in the U.S. will soon require some type of post-secondary education,” added Sacks, who provides leadership for initiatives supporting career and technical education, adult education, correctional and re-entry education and community colleges. These initiatives collectively serve more than 25 million students each year. In Palm Beach County there are numerous positions in fields like manufacturing, construction and aerospace/aviation/engineering (AAE) that require technical skills but not necessarily a bachelor’s degree. “We need to be sure today’s students are aware of these career opportunities,” Sacks said. Expanding the pipeline of prospective workers begins in elementary, middle and high school, and continues at post-secondary educational institutions. Both students and their parents need to be aware of the many options for rewarding careers that may not include a four-year college degree, Sacks said. Nearly one-fourth of U.S. high schools now offer career and technical education, Sacks said. “Students can also take advantage of dual-enrollment programs, earning credits at a local com-

Sacks urged employers in Palm Beach County, and communities across the nation, to build career-training partnerships with area educational institutions. Many workers will need additional skills training and certifications to keep up with evolving job requirements, she said. Therefore, employers should be paying attention to local initiatives for upskilling their workers. Casey K. Sacks, Ph.D., Deputy Assistant Secretary for Employers can pay for Community Colleges, Office of Career, Technical, and workers’ technical training, sup- Adult Education, in the U.S. Department of Education port them in enrolling part-time at a local college or bring in a trainer from a community college or career development organization, Sacks suggested. Other options for building the talent pool include internships and apprenticeship programs. “Businesses can reach out to students and give them an opportunity to do meaningful work on the job,” Sacks said. “Apprenticeships can definitely be a win-win strategy for employers and future workers.” On a national level, Sacks is actively seeking to raise awareness of the need for education, certification and apprenticeship programs among U.S. business and labor organizations. “It’s important to understand the gaps in the talent pool that now exist and look for solutions that are appropriate for states and local communities,” she said. Last summer, Congress passed the Strengthening Career and Technical Education for the 21st Century Act (also known as Perkins V), which provides education and training support based on local needs assessments. “It’s important for communities like Palm Beach County to leverage that information and take action with the support of local busin 7 million unfilled jobs in the U.S. require some type of certification or associate degree nesses,” Sacks said. Looking beyond the technical STEM n One-fourth of U.S. high schools now offer (science, technology, engineering and career and technical education math) fields, Sacks said both employers and n Two-thirds of jobs in the U.S. will soon require educators should seek to build “soft skills,” some type of post-secondary education such as literacy, mathematical reasoning n Three-fourths of the jobs in 2030 don’t exist right now and critical thinking. Nearly three-fourths of the jobs in 2030 don’t exist now, Sacks said. munity college while in high Finally, Sacks said today’s students can be very resourceful in purschool, reducing the time and exsuing educational and career pathways—provided they know their oppense of earning an associate’s detions; “It’s important for young adults to understand the tradeoffs and gree or a certification,” she added. think about their goals in life.” PBCB

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Palm Beach County Welcomes

CONVERGENCE Investment Partners Convergence Investment Partners is opening its new headquarters in Palm Beach Gardens this spring after relocating from Grafton, Wisconsin.

“A

s an investment manager, there were several key attributes which led us to choosing Palm Beach County as our new home,” said Dave Abitz, president of Convergence. “The concentration of fellow investment professionals and hedge funds ranked high on our list of positive attributes that Palm Beach Gardens has to offer. The favorable tax climate and weather conditions further tipped the scale in our decision. Moving from a part of the country nicknamed the ‘Frozen Tundra’ to a state where your license plate reads ‘Endless Summer’ made this an obvious choice for our team!” Noting that the Business Development Board has been facilitating this relocation since 2016, Kelly Smallridge, President and CEO, said, “Five years ago, we developed a strategy to take advantage of high-tax states by recruiting financial service firms to the area. To date, approximately 70 family office, hedge funds, wealth management and private equity firms have made the decision to relocate or expand to Palm Beach County. We welcome these companies with open arms and anticipate many more companies to follow.” Convergence Investment Partners is a boutique investment manager dedicated to managing outstanding long-short equity strategies with current assets under management of more than $400 million. All the company’s strategies employ the firm’s proprietary stock ranking process, which is built upon the philosophy that companies with strong and improving fundamentals outperform those with poor or weakening fundamentals. “Investing is in my blood,” said Abitz, who was introduced to the financial world at a young age through many conversations with his father, James Abitz, who was the CIO of Thrivent Financial before retiring. “I began my career in the early 1990s as a bottom-up fundamental analyst on an active management equity team,” Abitz added. In the late 1990s, Abitz began working with his fellow founding partner, Todd Hanson, to develop a systematic process of ranking the unique market factors and Dave Abitz inputs that were key to the fundamental investment philosophy (i.e. valuation, profitability, quality, price trends, growth measure, etc.) within each industry group. “A fundamental stock ranking process is at the heart of the Convergence philosophy,” Abitz said. “Our team has worked for decades bringing together the best of fundamental and quantitative investing, aiming to minimize risk and behavioral biases while maximizing repeatability, stock coverage and return consistency.“ Abitz founded QIS Advisors, the predecessor firm to Convergence, in 2004, drawing on two decades of investment experience as a professional money manager. He is a Chartered Financial Analyst with a bachelor’s degree in finance from the University of Wisconsin - Oshkosh and an MBA from the University of Wisconsin Madison. He is a member of the Society of Quantitative Analysts, the Chicago Quantitative Alliance Group, the CFA Institute and the local CFA Society South Florida. PBCB

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A hidden gem in Palm Beach County, the Glades Region is proving that industrial businesses benefit from the old real estate adage that three things matter: location, location, location.

The Glades Region is having a business renaissance as it transforms from a rural economy to a magnet for smart companies seeking lower costs, excellent transportation, rail distribution and proximity to beautiful natural areas. This vast and primarily agricultural area on the southeastern rim of Lake Okeechobee in Western Palm Beach County is beloved by visitors, eco-tourists, fishing enthusiasts and nature lovers as a scenic and vital freshwater resource, bass fishing paradise, bird-watching center and natural sanctuary. The Business Development Board of Palm Beach County works to support the region and create incentives for growth and financial opportunity by transforming the Glades area while retaining the natural beauty of the region. “The Glades area provides companies with 10,000 acres of developable, industrial and commercial properties,” said Kelly Smallridge, BDB president and CEO, noting that the BDB has created a robust website—pbcglades.org—containing detailed information on the region. Glades Gateway Commerce Park, a significant development in the City of Belle Glade, provides companies with a sizeable piece of shovel-ready, industrially zoned land. Among the forwardthinking businesses moving to Glades Gateway Commerce Park are: n Los Vaqueros, Inc., a supplier of food products to primarily Hispanic groceries in the South Florida area n Growers Management, Inc., an agricultural management firm

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n World Trade Petroleum, a company owned and operated by entrepreneurs from Romania who have patented burnt oil recycling n IMI Academy, offering specialized training to law enforcement, military, government and corporate security personnel on advanced defensive and security techniques n Universal Forest Products, a major manufacturer and supplier of wood and concrete construction products to big-box stores such as Home Depot and Lowe’s Glades Gateway Commerce Park provides industrial zoning; existing availability of water, sewer, electric and natural gas utilities; 2,700 lineal feet of rail siding; and a half-mile of frontage on U.S. 441, within a 100-mile radius of 7 million people. It is only 38 miles from the Palm Beaches and Florida’s east coast; 90 miles from Fort Myers, Florida’s west coast and the Gulf of Mexico; and 90 miles north of Miami. Recently putting down roots in the Glades Region are industrial services firm Harmack Company, Glades Formulating Company, eco-conscious manufacturer Tellus Products and others who enjoy the benefits of the Glades Region as a growing hub for manufacturing, distributing/logistics, and industries that support agribusiness. The Glades Region is the epicenter of agricultural production, with 500,000 acres harvested annually. It is home to 21st-century sustainable food processing and packing, sugar milling and refining, manufacturing, distribution and operations centers. “In addition to the geographic advantages of the business-friendly Glades Region, we have identified more than 50 financial programs offered through the federal government for rural communities,” said Smallridge. “As the Glades is a state-designated priority rural area, most companies in the Glades Region are eligible for many State of Florida and Palm Beach County incentives, grants and low-cost loan programs. Ad valorem tax exemption is also available for major employers. This is great for companies considering the Glades region that may be looking for grants or loan guarantees.” PBCB

n 10,000 acres of developable, industrial and commercial properties n Within a 100-mile radius of 7 million people n Epicenter of agricultural production, with 500,000 acres harvested annually

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BROKER PROFILE:

TOMBURST DEMAND

for Palm Beach County office space is likely to remain strong throughout 2019, according to Tom Burst, senior vice president, Colliers International South Florida in Boca Raton. “Our market is tight right now, as absorption continues to exceed new construction,” he said. “Rates for Class A space are also rising.” To address demand for large office spaces, several owners in South County are constructing buildings with 20,000- to 25,000square-foot floorplates that are suited to corporate headquarters or professional firms, Burst said. To the north, Florida Power & Light (FPL) is planning to build 250,000 square feet in Palm Beach Gardens. “Overall, there is about 500,000 square feet under construction in Palm Beach County,” Burst said, noting that almost 200,000 square

feet was absorbed in the fourth quarter of 2018. Many office tenants have moved to new locations, and leases signed in that quarter totaled about 700,000 square feet. Burst, who has been active in Palm Beach County’s commercial market for 32 years, represented Document Storage Systems in its recent expansion. “This locally grown company has been one of our clients for many years,” he said. “In fact, I sold them their first building 18 years ago. In 2013, I helped them find a 50,000-squarefoot building in N orth Palm Beach, and now they are leasing an additional 6,000 square feet.” Since launching his commercial brokerage career in 1986, Burst has seen a distinct shift in Palm Beach County owners and tenants. “Our economy has become far more diversified, thanks in part to the Business Development Board,” he said. “In addition, many office buildings are now owned by institutions rather than local individuals. Today, our office market is attractive to a wide range of U.S. and international companies, and we look forward to another great year.” PBCB

Site Consultants View

PALM BEACH COUNTY

from a New Perspective 2019 SITE CONSULTANT FAM TOUR: MARCH 27-29, 2019 Each year, the Business Development Board brings 10 site location experts from across the country to show them why Palm Beach County is the perfect business location. It’s a three-day tour with a diverse itinerary including visits such as UTC Center for Intelligent Buildings and the Palm Beach International Boat Show. The tour has included: n North Palm Beach County’s life science corridor, including FAU Jupiter campus, Scripps Florida and Max Planck Florida Institute for Neuroscience n Central Palm Beach County’s downtown West Palm Beach, including the Brightline station and the Flagler Financial District n South Palm Beach County’s corporate headquarters hub, including ADT, Office Depot and Modernizing Medicine

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BDB Task Forces

Facilitate Economic Development Success The Business Development Board takes a collaborative approach to strengthening Palm Beach County’s economy with task forces that bring together public and private sector leaders. Here is an update on recent activities.

Aviation, Aerospace, Engineering (A/A/E) There are only two places in the world that host the annual Engineers Week Honors and Awards Banquet to recognize outstanding contributions by individuals in the fields of engineering, education, and special fields of work and public service: California and West Palm Beach, Florida. The BDB Task Force, comprised of leaders in the A/A/E industry, plans this annual event, which has transformed Palm Beach County into the Nation’s east coast headquarters for this event’s participants. Nearly 500 leaders and some of the most influential engineers in the country convene to learn about new, award-winning projects. The most recent banquet was February 28, 2019.

Business/Financial Services Task force chair Marty Cass, BDO Practice Leader, SE Region, Private Client Services, continues to assist the BDB with its marketing/outreach initiatives to prospect companies outside Florida. In addition to the Northeast, the BDB is now also targeting companies in the Midwest through a task force subcommittee chaired by Barry Knight, SVP, Private Wealth Advisor, Ertmann, Foster, Knight Private Banking and Investment Group. The BDB already has two success stories from the Midwest effort: Cresset Wealth Advisors relocated last June from Chicago, and Convergence Investment Partners recently announced a move from Grafton, Wisconsin.

Logistics/Distribution Economic Development Stakeholders A BDB-hosted Economic Development Stakeholders Round Table was held December 6 at the West Palm Beach Marriott with about 40 attendees. Mary Lou Bedford, CEO of the Central Palm Beach County Chamber of Commerce, gave an update on the progress of the Southern Boulevard (S.R. 80) widening project. Attendees also received a BDB compilation of economic development incentives from 16 municipalities. Michele Jacobs, president/CEO of the Economic Council, provided an update on the October 2018 Palm Beach County Leadership trip to Charlotte, North Carolina to study Economic Prosperity and Purpose-Built Communities. The Palm Beach County team found many similarities between CharlotteMecklenburg County and Palm Beach County. Local economic development leaders meet quarterly with Kelly Smallridge, BDB president/CEO, and the BDB’s Business Development Team to discuss economic development-related issues. Round Table members include executives from chambers of commerce, municipal governments and other organizations.

16 | pbc business spring 2019

BDB representatives attended the Florida Supply Chain Summit on February 6-7 in Orlando to gain insight on industry trends. In addition, the BDB and Palm Beach County School District partnered to ensure a logistics/distribution presence at the Claim Your Future Showcase on February 12. Other key points: n The Caribbean region is one of the largest buyers of U.S. exports, with many opportunities for Palm Beach County businesses n The Port of Palm Beach is considered the most efficient port in the country based on number of containers moved per acre of land. It continues to grow exports while attracting more private yachts. n PBIA has the lowest operating costs for airlines in South Florida, and the Palm Beach County Department of Airports has available land for additional airport-related operations.

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The BDB is proactively marketing Palm Beach County as a premier business location through an advertising campaign targeting CEOs in the northeast.

DIGITAL ADS HAVE LANDED IN:

Visit the landing page, www.bdb.org/innovationlocation. 18 | pbc business spring 2019

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Greenberg Traurig is proud to join the Business Development Board in celebrating the growth and success of Palm Beach County. For over 30 years, our attorneys in West Palm Beach and Boca Raton have provided strategic advice and legal services to entrepreneurs and middle-market clients while demonstrating an appreciation for diversity and community service. General Practice Areas In Palm Beach County:

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GREENBERG TRAURIG, P. A . | AT TORNEYS AT L AW | WWW.GTL AW.COM Greenberg Traurig is a service mark and trade name of Greenberg Traurig, LLP and Greenberg Traurig, P.A. ©2019 Greenberg Traurig, LLP. Attorneys at Law. All rights reserved. Attorney advertising. °These numbers are subject to fluctuation. Images in this advertisement do not depict Greenberg Traurig attorneys, clients, staff or facilities. 32226

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COUNTYCORNER Empowering Economic Development Within Opportunity Zones

By Sherry Howard, Deputy Director Palm Beach County Department of Housing and Economic Sustainability

n December 22, 2017, the Federal Tax Cuts and Jobs Act was signed into law with bipartisan support. This tax legislation established the Opportunity Zone (OZ) Program, a community investment tool providing new tax incentives to investors who support economic development initiatives within designated census tracts nationwide. In Palm Beach County, the Department of Housing and Economic Sustainability (DHES) quickly seized the opportunity for empowering economically distressed communities through the OZ Program. Key components of the program include OZs, Qualified OZ Funds and OZ Projects. OZs were designated by the U.S. Department of Treasury, based on state nominations, as economically Sherry Howard distressed communities where new investments, under certain conditions, may be eligible for preferential tax treatment. DHES was instrumental in developing recommendations for Palm Beach Countybased census tracts to be included in Florida’s nominations to the Treasury. Qualified OZ Funds are investment vehicles organized for the purpose of investing in OZ Projects which are business and real estate development opportunities located within OZs. The OZ Program allows individual investors to place capital gains in Qualified OZ Funds. In exchange for their investment, the individual receives certain federal capital gains tax advantages including a deferment of capital

The OZ Program may be a new frontier for economic development, creating a new pathway for private investment in community-based economic development. 20 | pbc business spring 2019

gains taxes and the elimination of taxes on returns from any OZ Fund investment held for at least 10 years. The Qualified OZ Fund uses investors’ capital as an economic development tool to support and grow OZ Projects which can rejuvenate local economies; create jobs within the boundaries of economically distressed communities designated as OZs; and drive additional economic development in the area. The OZ designation may create a lasting positive effect in some of our highest-need areas by helping bring new capital investment and more jobs to distressed communities. When we empower economic development activities in distressed areas, we are providing the groundwork to produce a more reliable and functioning community. In 2018, DHES worked collaboratively with various municipalities within Palm Beach County to identify census tracts eligible for designation as an OZ. Census tracts were identified based on their ability to meet federal OZ eligibility requirements including a poverty rate of at least 20 percent as well as their potential for economic development, including mixed-income or affordable rental housing developments. The collaborative effort identified and recommended 31 tracts for OZ designation. With Board of County Commissioners approval, these tracts were forwarded to the State for consideration and potential inclusion in the State’s nomination letter to the Treasury. In June 2018, the Treasury published its list of designated Qualified OZs. Of the 26 Treasury-designated OZs in Palm Beach County, 13 were included in the collaboration’s recommendations. The OZ Program may be a new frontier for economic development, creating a new pathway for private investment in community-based economic development. As additional OZ Program regulations and legal guidance are issued by the Internal Revenue Service, DHES continues to work collaboratively with municipalities to identify OZ investors, Funds, and Projects to ensure the program’s implementation in Palm Beach County maximizes public-private partnerships and facilitates positive economic development in many of the County’s most vulnerable communities. To learn more about the Department of Housing and Economic Sustainability or any of the County’s business and economic development programs, please contact me by phone at 561.233.3653 or by email at showard@pbcgov.org. Visit our website at discover.pbcgov.org/hes. PBCB

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