Quarterly Economic Development Magazine | Spring 2021
City of
West Palm Beach
RED-HOT
PALM BEACH COUNTY
CONTENTS Spring 2021
D E PA R T M E N T S In the Know from the CEO
page 2
F E AT U R E S Companies Flock to Palm Beach County page 3
Community Profile: Top Attorney Gary Lesser
Wall Street South
page 16
page 4
United Franchise Group: A Model for Pandemic-era Growth
page 6
Residential/lifestyle
page 18
Behind the Gates Initiative
News & Events
page 9
page 20
Q&A with BDB Leader Fab Brumley
County Corner: Are Bonds the Right Tool?
page 21
“On the Job” With CareerSource
page 10
1909: A Historic Year Inspires a Hub for Entrepreneurs
page 11
page 23
Getting Down to Business in the City of West Palm Beach
page12
spring 2021 pbc business |
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CEO
from the
InTheKnow
Wall Street Heads to Palm Beach County! Would you rather spend two hours a day
commuting to a cramped Wall Street office in the cold and snow, or put the top down on your convertible for a 10-minute drive? Do you come home each night exhausted from the stress of urban life? Or would you prefer seeing your family when the sun is still shining, and you can go to a park, the beach or a soccer match? For a growing number of successful financial executives, entrepreneurs and professionals, the answer is a nobrainer. Moving their homes and operations to Palm Beach County offers the best of everything: beautiful homes, great schools, year-round cultural and recreational amenities. And that’s on top of our low-tax climate, convenient air connections, robust talent pool and other business advantages. In this issue, you can read about the many reasons Palm Beach County has become known as “Wall Street South.” In today’s work-from-anywhere environment, it makes sense to find a location that supports your lifestyle, as well as your business. Of course, it’s not just hedge funds, private equity firms, wealth managers and other financial service providers that are moving their operations to Palm Beach County from the Northeast, California, Illinois and other states. Our diversified economy appeals to a wide range of companies, such as FINFROCK, a dynamic manufacturer bringing valuable jobs to our western communities. Working closely with our public and private sector partners, including our schools, colleges and universities, our hardworking BDB team can offer you a wide range of free and confidential services. And in keeping with our new marketing campaign, there is no better time to become one of Palm Beach County’s SEA Suite executives!
Kelly Smallridge President and CEO
Palm Beach County, Florida is Home to 39 Cities and Towns, Including: City of Atlantis
Town of Hypoluxo
City of Pahokee
City of Belle Glade
Town of Juno Beach
Town of Palm Beach
City of Boca Raton
Town of Jupiter
City of Palm Beach Gardens
City of Boynton Beach
Town of Jupiter Inlet Colony
Town of Palm Beach Shores
Town of Briny Breezes
Town of Lake Clarke Shores
Village of Palm Springs
Town of Cloud Lake
Town of Lake Park
City of Riviera Beach
City of Delray Beach
City of Lake Worth Beach
Village of Royal Palm Beach
Town of Glen Ridge
Town of Lantana
City of South Bay
Village of Golf
Town of Loxahatchee Groves
Town of South Palm Beach
City of Greenacres
Town of Manalapan
Village of Tequesta
Town of Gulf Stream
Town of Mangonia Park
Village of Wellington
Town of Haverhill
Village of North Palm Beach
City of Westlake
Town of Highland Beach
Town of Ocean Ridge
City of West Palm Beach
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Business Development Board of Palm Beach County, Inc. 310 Evernia Street West Palm Beach, FL 33401 561.835.1008 | www.bdb.org 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 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 Tim Dougher Vice President – Business Recruitment, Retention and Expansion 561.835.1008 Ext. 4131 tdougher@bdb.org Shawn Rowan Vice President – Business Recruitment, Retention and Expansion 561.835.1008 Ext. 4108 srowan@bdb.org
PUBLISHED BY
Passport Publications | passport media group 1555 Palm Beach Lakes Blvd., Suite 1550 West Palm Beach, FL 33401 561.472.8778 | www.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. © 2021 Passport Publications & Media Corporation
Companies Flock
Robert Sadler Clark
to The Palm Beaches
FINFROCK
, a Central Florida design-builder and manufacturer, identified the Glades Gateway Commerce Park in Belle Glade for the company’s future expansion into Palm Beach County. FINFROCK expects to invest more than $36 million into 140,000 square feet of precast concrete manufacturing facilities and administrative offices, creating 200 new jobs. Located on a 94-acre site, the plant will allow FINFROCK to better serve commercial developers in Palm Beach, Miami-Dade, Broward and Southwest Florida counties, while bringing much needed employment and economic stimulus to the region. “We are excited about the prospect of being part of the Belle Glade community,” said CEO Allen Finfrock. “We have been working closely with city and county officials to help bring this project to fruition and hope to break ground on the new facility in 2021.” Other businesses of all kinds are expanding and relocating throughout Palm Beach County. In recent months the BDB has assisted the following companies: n
AeroClean Technologies: Manufacturing HQ, Palm Beach Gardens, 100 new jobs, $100,000 average salary per year
n
EXUMA Biotech: Life Sciences, 6,500-square-foot research lab, West Palm Beach, 100 life science positions
n
FlexShopper: Corporate HQ, Boca Raton, 100 jobs, 21,000 square feet
n
GlobalListings: Financial Services/Infotech, West Palm Beach, relocated from California
n
Moving Minds: Corporate HQ, West Palm Beach, 70 jobs
n
NewDay USA: Financial Services, West Palm Beach, 600 jobs, $90,000 average salary
n
SIW Solutions: Manufacturing HQ, West Palm Beach, 168,000 square feet, 250 jobs, $14 million capital investment
n
V2Techs: Clean Energy/Marine, The Netherlands to Boca Raton
n
Vetio Animal Health: Manufacturing, Unincorporated Jupiter, 35,000 square feet, 40 employees
n
Virtu Financial: Financial Services, 55 jobs, Palm Beach Gardens, 10,019 square feet, $175,000 average salary
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PALM BEACH COUNT Y IS
‘WALL STREET SOUTH’ Palm Beach County
, FL, also known as “Wall Street South”, recently announced the relocation of several financial industry giants that plan to create thousands of jobs, and they certainly won’t be the last. In recent years, more than 100 financial services firms have made the decision to ditch the high taxes and snow of the Northeast U.S. for the sunshine and business-friendly environment of Palm Beach County. Virtu Financial, one of the latest global financial services firms to move to “Wall Street South”, recently leased a 10,019-square-foot office space in DiVosta Towers in Palm Beach Gardens for its executives, salespeople, traders, and technology staff. The Business Development Board assisted with incentives, expedited permitting, relocation orientation for employees, and residential real estate needs. “In the past year, we have witnessed the success of working remotely,” said CEO Doug Cifu, who is co-owner of the Florida Panthers NHL team. “At Virtu, we have used this experience to diversify our office footprint outside New York City. Opening a substantial office in Florida makes perfect sense for Virtu. The business and economic environment, growing population and infrastructure make it an obvious choice for our growing business.”
“PALM BEACH COUNTY is luring a steady stream of financial services firms out of Boston, Connecticut, New York City, and several cities in California—A TREND THAT HAS ACCELERATED IN THE PAST YEAR.”
— Kelly Smallridge, president and CEO Business Development Board of Palm Beach County
Kevin Probel, first vice president with CBRE, which represented Virtu Financial, said, “This deal marks continued momentum for Northern Palm Beach County, which has shown incredible resilience through the pandemic. Northern Palm Beach County now is seeing an influx of new residents and significant interest from out-of-market tenants, especially financial and technology firms.” NewDay USA, one of the nation’s leading veteran mortgage lenders, announced that it will create 600 new jobs at 360 Rosemary in Rosemary Square in West Palm Beach over the next two years. This new location will serve as the second headquarters for NewDay USA, in addition to its headquarters in Fulton, Maryland.
FINANCIAL FIRMS THAT HAVE CHOSEN PALM BEACH COUNTY INCLUDE THE FOLLOWING: Abbot Downing Addison Capital Partners Affiliated Managers Group AM Global Core Fund Anagenesis Capital Atlantic Creek Real Estate AUA Private Equity Bergen Asset Management BlackRock Capital Blue Sea Capital Blue Water Advisors
III Capital Management Cambridge Capital Capital Asset Management Group Catalus Capital Chilton Trust Company Colony Capital Comvest Partners Convergence Investment Partners Cresset Wealth Partners Cypress Trust Company Dakota Wealth Management
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Dash Prime Directional Research & Trading, Inc. DRB Capital DRI FundDSM Capital Partners DSM Capital Partners ECN Capital Corporation Ellevest Elliott Management Evercore Wealth Management Family Office Networks Focus Financial Partners
Forbes Family Trust Fortress Investment Group GenSpring Family Offices The Glenmede Trust Company Global Trust Asset Management Golden Tree Asset Management Goldman Sachs Company Govic Capital Graham Capital Management Greenwich Wealth Management Grey Value Management, LLC
DiVosta Towers, Photo by Kim Seng
NewDay USA will occupy more than 50,000 square feet on the top two floors of 360 Rosemary, the 300,000-square-foot, sustainable, Class-A office building at the heart of downtown West Palm Beach’s Rosemary Square neighborhood. NewDay expects to be one of the largest employers in the area, housing 600 employees over the next two years at Rosemary Square. The average age of employees being hired is between 25 and 30 years old.
Just this year, here are some of the companies that have relocated: n
n
n n n n
NewDay USA, one of the nation’s leading veteran mortgage lenders, will create 600 jobs at 360 Rosemary in West Palm Beach, leasing 50,000 square feet of space. Virtu Financial is relocating its New York City headquarters to Palm Beach Gardens, FL at the DiVosta Towers. The move will employ about 50 people with average salaries of $165,000. “We aren’t going back,” said CEO Doug Cifu, who is also co-owner of the Florida Panthers NHL team, in a WPTV interview. Elliott Management, a $41 billion fund manager, will relocate its corporate headquarters from Manhattan, NY. Colony Capital is relocating its global corporate headquarters from California to Boca Raton, FL. Point72 Asset Management, headquartered in Stamford, CT and led by New York Mets owner Steve Cohen, will open an office in the county. Wealthspire Advisors, an investment advisory firm with $13 billion in assets under management and headquartered in New York, selected Boca Raton to open an office.
“Executives of companies relocating to Palm Beach County are signing eight-to-10year leases,” said Smallridge. “This is not a temporary trend. Executives are purchasing homes, enrolling their children in school and becoming involved in the community.”
Halite Partners Hamilton Capital HedgeCo Securities Highbrook Investors Hunter Global Investors Impala Asset Management Incapital Intech Investment Management Janus Capital Group JP Morgan JVB Financial
Kayne Anderson Lawless Edwards and Warren Lee Munder Investments Lighthouse Partners Looking Glass Investments Matrix Private Capital Group Merrill Lynch Wealth Management Mesirow Financial Moelis & Company Morgan Stanley MSD Capital NewDay USA
p The DiVosta Towers in Palm Beach Gardens has lured financial services titans to its Class A office space in the modern, 11-story luxury office towers, which have a combined 220,000 square feet of space. The towers were purchased in 2020 by New York-based Gatsby Enterprises, LLC, which is leading the charge in tenanting the state-of-the-art buildings. The towers offer unobstructed panoramic views of Palm Beach Gardens, floor-to-ceiling glass windows, a four-story parking garage with a 4:1 parking ratio and electric car charging stations, common area conference rooms with catering kitchens, and tenant-controlled and dedicated HVAC. The towers are located across from Downtown at the Gardens and within miles of the best golf courses in South Florida.
PALM BEACH COUNTY IS HOME TO MORE THAN: n n n n n
Norwest Equity Partners Oppenheimer & Company Otter Creek Management Omega Advisors Palisade Capital Management Palm Beach Capital Point72 Priderock Capital Partners RAM Investment Group Red Oak Capital Partners SkyBridge Capital State Trust
2,500 financial services firms 33,000 people employed in the sector Average salaries of nearly $80,000 Most relocations are from New York City, Boston, Chicago, and Greenwich The financial services sector has experienced a 7.4 percent year-overyear increase
Sterling Organization Sun Capital Partners, Inc. The Legend Group Theorem Fund Services Third Friday Total Return Fund Tudor Investment Corporation UBS Financial Services Virtu Financial Voloridge Investment Management Wealthspire Advisors Wexford Capital
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A RED-HOT Luxury Real Estate Market Palm Beach County’s luxury
Popular places that young families purchase homes: 1. Avenir in Palm Beach Gardens, photo courtesy of Avenir 2. Westlake in Westlake, photo courtesy of Minto Communities 3. Arden Communities in Wellington, photo courtesy of Arden
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Top spots for social: n
Downtown Clematis Street in West Palm Beach
n
Atlantic Avenue in Delray Beach
n
Love Street in Jupiter
n
Mizner Park in Boca Raton
n
Drive on the road that locals call “A1A” from Boca Raton all the way up to Jupiter and stop at any laid-back restaurant or bar overlooking the beach
A Lifestyle that Makes the Move Worthwhile... CEOs who consider Palm Beach County as a future location for a corporate office often request information for relocating their entire workforce. Information about where young adults will live and access a new social life is vital. From famous islands to hip downtowns, Palm Beach County has it all within its 39 cities and towns. SOUTH Boynton Beach Delray Beach Boca Raton Highland Beach Briny Breezes Gulf Stream Ocean Ridge
CENTRAL
Atlantis Cloud Lake Glen Ridge Golf Greenacres Haverhill Hypoluxo Lake Clarke Shores Lake Worth Beach WEST Lantana Loxahatchee Groves Manalapan Wellington Mangonia Park Westlake Palm Beach Belle Glade Palm Springs Pahokee Royal Palm Beach South Bay South Palm Beach West Palm Beach
NORTH Juno Beach Jupiter Jupiter Inlet Colony Lake Park North Palm Beach Palm Beach Gardens Palm Beach Shores Riviera Beach Tequesta
Robert Sadler Clark
residential market is red-hot this spring, according to real estate professionals and market reports. Proximity to the sea combined with a high-quality lifestyle and homes that are close to work are driving the appeal of living and working in Palm Beach County. “Palm Beach County continues to attract the leadership of established corporations at an unprecedented rate,” said Arthur Martens, partner/broker associate, KW Luxury Int’l Palm Beaches. This activity is reflected in the data. Palm Beach County’s median single-family sales price has exploded from $520,000 to $749,000 in the past 12 months, according to Martens. Units selling in the top 25 percent of the residential market are a major driver of this move, skyrocketing from $2.5 million to $4.5 million in the past 12 months. “Yet clients continue to comment on the value they find here both in price and in business climate,” said Martens, citing a recent California buyer who commented that prices still reflect a 30 percent discount relative to the current community. “Another buyer, whose business engages with the top financial firms on Wall Street, commented that he’s looking forward to working in a Arthur Martens state and county that are ‘open for business.’” New construction sales reflect this trend, said Martens. Developments like Thomas Frankel’s Ocean One in Juno Beach sold out well above unit list prices prior to breaking ground. Many existing waterfront homes sell with multiple offers just to be torn down and replaced with larger custom homes. “One builder commented that his greatest fear was running out of places to build,” added Martens.
Popular apartments overlooking the bustling downtown areas: 1. Parkline Palm Beaches in West Palm Beach, photo courtesy of Parkline 2. Sole at City Center in West Palm Beach, photo courtesy of Sole 3. Aura Boca in Boca Raton, photo courtesy of Aura
Palm Beach County is No.1 A report released in March 2021 by location analytics company UNACAST found:
A Market Snapshot n
Palm Beach County luxury single-family home sales spiked 62% in February
n
Palm Beach County total home sales increased 3.1% year-over-year in February
margin,” said the report. “Welcoming a total inflow of some 11,000 people in 2020,
n
Palm Beach County existing condo
Palm Beach is flush with new income flow: some $3.4 billion in gains over 2019,
transactions increased 9.1% year-over-year
or about $2,165 per person. Southeast Florida is unlike any other region we have
Single-family homes are going under
studied in the COVID era. Population growth and new wealth is the new norm.”
n
contract in 30 days, 50.8% faster than a year ago n
The volume of new listings of singlefamily homes has decreased by 52.5%,
“The top county for both people and income growth was Palm Beach, by a wide
n
Palm Beach County is the No. 1 county for both people and income growth
n
Palm Beach County welcomed 11,000 people during 2020
by a wide margin compared to counties studied in the state of Florida. with a new net income gain flow of $3.4 billion—far exceeding the gains of
which indicates people are putting down roots here Source: World Property Journal
any other county in the U.S. studied by Unacast. n
41 percent of moves to Palm Beach County were from the New York City area, the most in the state of Florida.
n
Average per capita income flow was $80,282.
n
Palm Beach County is the No. 1 South Florida county considered an “emerging area” based on migration trends.
Hot spots that aren’t so hot anymore: n
New York City, NY
n
Boston, MA
n
San Francisco, CA
n
Chicago, IL
n
Palm Beach County, grouped with St. Lucie and Indian River counties, has gained $8.3 billion in income, 9,300 people, and about 30,000 New York City visitors per month.
n
70,000 high-net-worth individuals left New York City, taking $34 billion in lost income with them.
n
Billions of dollars are changing addresses, and New York City is a prime point of departure.
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PALM BEACH PARK OF COMMERCE ce rvi Se ine il L Ra
Pratt & Whitney
Indiantown Rd.
Indiantown Rd.
PALM BEACH Park of Commerce
Abacoa FAU
Be
e
1
e
North County Airport
Northlake Blvd.
Planned Residential
ps
ik
Donald Ross Rd.
Scrip
0m (4 line -La Caloosa ile ne Hi st Hi gh o gh w Tu wa a rn y) y p
Indian Trail
WHAT’S NEXT IN INDUSTRIAL Jupiter
Pratt Whitney Rd.
Indiantown 15 miles
AT THE CENTER OF
P.G.A. Blvd. Ra il L ine Se rvi ce
IBIS Community
Mirasol
PGA National
Gardens Mall
P.G.A. Blvd. Ballen Isles
Palm Beach Gardens Northlake Blvd.
Be eli ne Hw CS y. X
N Callery Judge
Turnpike Interchange
Turnpike Interchange
P.B.I.A. 9 miles
Port of P.B. 5 miles Blue Heron Blvd.
At Palm Beach Park of Commerce, you’ll enjoy easy access to the region’s extensive transportation network, including major highways and airports. Palm Beach Park of Commerce is also one of the few premier business locations that offers rail service, O foreign trade zone O\R heavy industrial options, plus a direct link to the Port of Palm Beach. • Total Park Size: 945 acres • 165 acres of commercial and industrial land available for sale • Sites available from 5-43 acres • Fully entitled/fully-served business park • Rail access directly to Port of Palm Beach • 220,000 SF Warehouse Site Plan Approved • Foreign trade zone • Home to over 50 businesses including: Walgreens, CSX, McLane, Niagara, Mountain Productions, Spartan Motors, Amazon & IAA • Infrastructure and utilities in place
Christopher Thomson, SIOR Cushman & Wakefield +1 561 227 2019 christopher.thomson@cushwake.com Cushman & Wakefield of Florida, LLC. 303 Banyan Blvd., Suite 301 West Palm Beach, FL 33401 www.cushwakesouthfl.com
A Peek at the BDB’s ‘BEHIND THE GATES’ Initiative
Behind the Gates is a multiyear initiative launched by the Business Development Board to approach CEOs who have second homes here, promoting the area as a future office location for them. To date, this powerful initiative has resulted in more than 1,000 high-salary jobs. “We have focused on the top five cities for second homes: Palm Beach, Jupiter, Wellington, Boca Raton, and Manalapan,” said Kelly Smallridge, president and CEO of the BDB. “We have had remarkable success in connecting with these executives, resulting in a number of new job-creating relocations and expansions that benefit our community.”
u
Move Your Office to the Sea Suite! The BDB recently launched a new marketing initiative called Sea.Suite.Palm Beach County that highlights the county’s many assets. n Palm Beach County is currently marketed in a national ad campaign targeting CEOs in affluent zip codes. n Markets targeted include New York City, Boston, Greenwich, Palm Beach and San Francisco. n It’s laser focused on getting the attention of CEOs, who are directed to an exclusive landing page: www.bdb.org/seasuitepbc.
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A CONVERSATION
with Fab Brumley
The Palm Beach County president and vice chairman of commercial banking for Bank of America is committed to growing the region's financial sector. In a recent conversation, Brumley, a former chair of the BDB, commented on Palm Beach County’s appeal to financial services firms.
Q
A
Q
A
Q
A
Q
A
Q
A
Why are so many executives are moving here? Brumley: It’s not surprising that Palm Beach County is many executives’ choice destination, because it is such a business-friendly place. The options for residential housing, K-12 and post-secondary education, and cultural venues means there’s something for everyone.
What is your role in the Behind the Gates concept? Brumley: This initiative was born when BDB board member Ken Kahn shared an idea that we then all built on. The way we, in financial services, approach our clients is similar to the way the BDB approaches theirs: connecting, listening, educating and serving our clients’ needs. We’re delighted with the way Kelly and her staff developed it with intentional discipline.
What do you personally like about living in Palm Beach County versus New York or Chicago? Brumley: I love the diversity of the area—its people, culture, arts, industry, sports, leisure and culinary delights. The year-round green surroundings, clean air and mild climate make it a great place to live as well!
How does the banking sector benefit from the growth of PBC as the Wall Street of the South? Brumley: This is not a new concept—ask anyone on Wall Street, and they all either have homes here, vacation here, or do business here. That translates into economic activity that promotes small business, creates jobs and enriches our communities.
How long have you lived and worked in Palm Beach County? Brumley: I’ve lived in South Florida from the time my family immigrated here (when I was 9). I started my career 38 years ago in Fort Lauderdale but moved my office to Palm Beach County in 1998. Though my responsibilities are national, I’m always glad to come back home, and have been the local president for Bank of America in Palm Beach County since 2007. We have more than 1,000 local teammates in Palm Beach County, and we have extended more than $1.5 billion in loans to commercial businesses and $212 million in loans to small businesses as of year-end 2020.
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– A Creative Hub for Entrepreneurs On April 30, 1909, a group of forward-thinking South Florida residents founded Palm Beach County. Fast-forward to 2021, and a collaborative team of creative professionals and entrepreneurs are moving the community ahead at 1909—a nonprofit organization with a vibrant collective workspace in West Palm Beach. “We are a creative hub for innovation,” said Shana Ostrovitz, executive director. “Our members are working together to create the future in software, green technologies, and global applications to support diversity, to name just a few.” Since its launch in 2018, the 1909 creative laboratory has built a base of nearly 200 members from throughout the region and beyond.
M embers can access digital programming and networking events, or take advantage of mentoring support. They can also bring their laptops into the dedicated workspaces and the “idea room” for brainstorming discussions, collaborative meetings, or talks with potential investors. Altogether, the nonprofit has about 5,700 square feet of space at 313 Datura Street in the downtown core. “We offer a six-month Accelerator Program to help early-stage entrepreneurs bring their ideas to reality,” said Ostrovitz. In 2020, two of the graduates were accepted into 35 Mules, the new FPL incubator program. “Out of all the applications from across the world, 35 Mules only accepted six companies for resources and funding.”
The two 1909 members were Neptunya Ocean Power, which is developing technologies that make ocean clean energy generation a viable solution while also maintaining a focus on marine habitat preservation, and Sustainabase, which is building software and services for better business, smarter cities, and greener buildings. Other members include photographers, graphic designers, illustrators, videographers and engineers, as well as other professionals. “What makes 1909 so special is the diversity of people and their backgrounds,” said Ostrovitz, whose experience includes providing technology training and support. “We were founded by four entrepreneurs who wanted to build an innovation community. Now, we can’t wait to see what’s coming next!”
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Welcome from Mayor Keith James
If you’re looking for a vibrant, world-class location for your business, the City of West Palm Beach should be at the top of your list. With a friendly, walkable downtown, great cultural and entertainment amenities, short commutes, convenient air access and a business-friendly climate, this diverse waterfront city offers an ideal work-life-play balance. “This is a golden age for our community,” said Mayor Keith A. James. “There is just so much going on everywhere in our city—new office and residential buildings, and exciting shopping, dining and outdoor recreation opportunities in a low-cost, low-tax business environment. It’s not surprising that West Palm Beach is one of the top cities in Florida for business and careers. With a population of about 110,000 and an average age of 40, West Palm Beach has a large pool of professional talent, including
That has helped jump-start a wave of real estate development, with more than $2 billion in construction projects now in the pipeline, including $851 million now under construction, $236 million ready to begin, $726 million approved and another $227 million in review. “The work-from-anywhere trend has made West Palm Beach even more attractive to businesses throughout the country,” Roog said. “Even in the midst of the pandemic,our city continued to attract new investment, and we collected the highest amount of business tax revenue in history.”
A dynamic financial sector: Goldman Sachs Group is reportedly planning to relocate hundreds of employees from New York City to West Palm Beach with long-term plans for future expansion. In addition, NewDay USA, one of the
recent graduates from the area’s colleges and universities. “We have
nation’s leading mortgage lenders to U.S. veterans, announced it will
great schools, beautiful parks and a wide range of housing options,”
open a second headquarters in West Palm Beach, creating more than
said James. “Many residents don’t have to rely on a car to get from
600 new jobs over the next two years. NewDay USA will occupy the
their homes to the office.”
top two floors of 360 Rosemary, the 300,000-square-foot, sustainable,
In recent years, the city has invested millions in infrastructure improvements to create a productive urban environment, said Chris Roog, executive director, Community Redevelopment Agency (CRA).
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Class-A office building at the heart of downtown West Palm Beach’s Rosemary Square neighborhood. Another new arrival is Elliott Management, a $41 billion hedge
City of
West Palm Beach Business. Life. Balanced.
fund manager, which selected West Palm Beach for its corporate
On U.S. 1 south of downtown, the Design District and Antique Row
headquarters. Employing 466 people across the world, the firm is
serve residential and commercial customers with a wide range of
relocating its main office from Midtown Manhattan.
fabrics, fixtures, furnishings and fine antiques, said Roog. “Restoration
These firms are the latest additions to the city’s Flagler Financial District—a highly successful initiative that attracts hedge
Hardware has one of its highest-grossing stores in our city, indicating the strength of this sector in our community.”
funds, private equity firms and other financial services companies to
West Palm Beach also provides a welcoming home for students
the city. “Major players from the Northeast, California and other
and professionals in the creative arts, including support for 1909,
locations are establishing significant presence here,” said James.
a nonprofit hub for collaboration, innovation and entrepreneurship.
“We are excited about the new energy, economic benefits and sense of engagement they are bringing to our community.”
Supportive business initiatives: Other City of West Palm Beach initiatives include the North Railroad District, a newly designated Opportunity Zone that appeals to companies in the marine services and medical sectors, while encompassing Northwood Village’s eclectic arts and dining scene. Southwest of downtown is the 183-acre Jefferson Terminal District. Currently home to the Warehouse District, the area offers convenient access to I-95 as well as Palm Beach International Airport. Proposed overlay zoning will lay the groundwork for attracting innovation drivers to the area.
Serving the community: These economic development initiatives are designed to strengthen the fabric of the city’s diverse neighborhoods, creating new opportunities for residents from all walks of life. “Our vision is to provide career options where young and old can pursue their business, professional or entertainment dreams in a healthy, safe and equitable environment,” said James. Supporting that goal are convenient transit services, including the Brightline commuter rail station in downtown West Palm Beach and Tri-Rail to the west, that make it easy for residents to reach South Florida’s employment centers.
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10 Reasons to Choose West Palm Beach n n n
Target Economic Sectors n
Financial services
n
Technology
n
Marine services
n
Health care
n
Life sciences
n
Professional services
n n n n n n n
Five Key Areas
of Economic Development Focus
Sense of community. West Palm Beach’s quality-
1
Under the direction of Rebecca DeLaRosa, economic development director, the City of West Palm Beach’s 2020 Economic Development Plan has five key areas of focus.
2
Business-friendly climate. West Palm Beach has a diverse, resilient, and growing industry base. Successful economic development programs include activities that support business retention, expansion, and attraction. This includes fostering a business-friendly environment and helping companies navigate local regulations. It also requires dedicated marketing initiatives that attract businesses in target sectors.
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No state or local income tax Easy transportation and commutes Nationally recognized schools and institutions of learning Access to domestic and international markets by rail, plane, port, and highway Diverse, educated workforce and talent pool Ethnic, cultural and demographic diversity A pro-business government, cutting red tape Potential relocation incentives One of Florida’s most walkable central business districts Vibrant entertainment districts and activities
of-place offerings are a top strength, including vibrant neighborhoods, outdoor assets, and cultural amenities. Continuing to promote and invest in lifestyle amenities in line with the community’s vision will further elevate West Palm Beach as an enviable destination for business and talent.
Talent. West Palm Beach is home to a globally
3
competitive talent pool. Continuously improving Pre-K-12 education offerings, aligning programs with business needs, attracting and retaining skilled talent, and equitably creating access to education and job opportunities for all residents will help West Palm Beach develop a globally competitive talent pool.
4
Innovation center. West Palm Beach is a sought-after destination for innovation and entrepreneurship. Support networks such as mentor programs, accelerators, incubators and coworking spaces, access to capital, and dedicated infrastructure all support this sector.
Supportive infrastructure. West Palm Beach
5
Other community highlights include the newly revitalized Clematis Street entertainment district, the Norton Museum of Art, the Kravis Center for the Performing Arts, Rosemary Square and the Palm Beach County Convention Center. Looking ahead, James said, “Our future is bright. West Palm Beach offers the perfect balance you need for business and life. We invite you to join us for the next chapter in our city’s remarkable 125-year success story.” For additional information, contact Rebecca DeLaRosa, Economic Development Director, City of West Palm Beach, at 561.822.1400, or rjdelarosa@wpb.org.
has robust infrastructure to support businesses and residents, including transportation, utilities, office and industrial space, and broadband.
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RAISING THE BAR FOR COMMUNITY SERVICE
: GARY LESSER:
of supporting his hometown community. As managing partner, Lesser, Lesser, Landy & Smith, PLLC, he handles personal injury cases for clients across the state. As President-Elect Designate for the Florida Bar, he is working diligently to support the state’s legal system. “I am committed to helping Palm Beach County grow and prosper,” said Lesser, who has served on the board of the Business Development Board (BDB) since 2015. “It has been really rewarding to see the great job the BDB has done through the years in bringing in new business investment, retaining jobs and helping local companies expand.” Lesser said the BDB sets a high standard for economic development organizations by focusing on the details and delivering excellent service to businesses seeking opportunities in Palm Beach County. “It’s been exciting to see the growth of the financial and professional services sectors here.” A third-generation native of Palm Beach County, Lesser returned home after earning his bachelor’s degree from George Washington University and law degree from the University of Miami. Today, he is one of the state’s leading personal injury attorneys helping individuals and families who have suffered a serious loss. He was elected to the Florida Bar’s leadership position this spring and will become president in June 2022. “There is no better place to live than West Palm Beach, a great mid-size community, where you don’t have to commute for two hours to get to work,” said Lesser. Looking at the education experience of his three daughters, he added, “We have great public schools as well as beaches and parks—so many great things for families.” When not working or volunteering his time, Lesser enjoys playing tennis and boating. “In Palm Beach County, we can enjoy the outdoors at any time of the year,” he added. “When COVID is in the rearview mirror, we will see a turbocharged wave of economic growth, because this is such a great place to live as well as work.”
LESSER
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ATTORNEY GARY LESSER BELIEVES IN THE IMPORTANCE
Exceptional resources for
properties
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Coldwell Banker Realty understands that relocating a home is far more complex than filling out a change-of-address card. Home is inextricably tied to family, to memories, to hope and success. As a native to Palm Beach County, I deliver unmatched client service, with intimate knowledge of the area, to target trends to help you find your perfect new home at the right price. If you’re looking for a positive, dedicated Realtor, who is ready to provide you with exceptional service while you make your move, let’s talk today!
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United Franchise Group Keeps Growing Despite Pandemic
Faced with the COVID-19 challenge last year, United Franchise Group (UFG) successfully pivoted its brands, capitalized on new markets and expanded the array of opportunities it offers franchise owners. “Finding the best ways to deliver products and services for our brands was crucial to getting through the pandemic,” said Ray Titus, president of the West Palm Beach company. “We listened closely to the great ideas from our owners, and then communicated them to all our franchisees.” For instance, local owners of Signarama, the world’s largest sign franchise, turned Plexiglas inventory into personal protective equipment (PPE) for first responders, and sold social distancing floor signage in restaurants, stores and other workplaces. Recognizing the need for outsourced professional
services, UFG launched ROI—Resource Operations International. “Now, someone who needs technology, marketing or other services can contact a local ROI franchisee who can provide that support,” said Titus. “We added three new franchise owners in March and are going strong.” Another new franchise brand is Network Lead Exchange, an online networking franchise that promotes lead referrals with commissions, and Graze Craze, a franchise that focuses on charcuterie boxes, platters and tables. Along with launching three new brands, UFG saw four of its brands named to Entrepreneur magazine’s Franchise 500 ® . Of the more than 8,000 franchise opportunities in the world, the Franchise 500 ® ranked Transworld Business Advisors ® (No. 68), Signarama ® (No. 115), Venture X ® (No. 319), and Fully Promoted ® (No. 357). “In a year unlike any other, we were able to find the silver linings for our brands,” said Titus. “We owe our success to the incredible network of franchisees that have shaped the brands into what they are today.”
“In a year unlike any other, we were able to find the silver linings for our brands,” – Ray Titus, President
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NEWS Project Opioid
TBC Corporation In partnership with Florida Blue and the Florida Blue Foundation, Project Opioid, a Central Florida-based initiative for the opioid overdose crisis, will
coordinate with the most established regional business development boards to create collaboratives in West Palm Beach, as well as Jacksonville, Tampa, Fort Lauderdale and Miami. These regional super-advocates will spearhead the Project Opioid program in their communities, and will be responsible for recruiting business, faith and philanthropic leaders to the Project Opioid initiative. They will be instrumental in driving the mission of Project Opioid to reduce opioid overdoses and overdose deaths by 50 percent in the next 36 months. The Jax Chamber, Tampa Bay Partnership, Miami-Dade Beacon Council, Greater Fort Lauderdale Alliance and the Business Development Board of Palm Beach Foundations are led by some of Florida’s top business champions, and will look to find solutions to the increasing overdose crisis around the state and identify specific, actionable steps to create a major impact on this epidemic in 2021.
Economist Says Managing COVID Will Be Key to Recovery Gus Faucher, chief economist, PNC Bank Mark Hoffman, head of portfolio management at PNC Bank, spoke at a virtual BDB event about investing in a time of uncertainty. “Don’t try to time the market. Set your goals over the long term and be disciplined.” He added that large-cap stocks may continue to do well going into 2021, while fixed-income bond returns will be low for an extended period. From a national perspective, Gus Faucher, chief economist, PNC, said the U.S. economy has been able to rebound after the sudden downturn in spring 2020. For example, the 14.7 percent unemployment rate in April 2020 improved to 7.9 percent in September 2020. Although 22 million jobs were lost in spring 2020, 11.4 million jobs were added through September. Housing starts had fallen 40 percent in February 2020, but improved to just a 10 percent drop in September. That was similar to the 50 percent drop in auto sales in February 2020 compared with a 6 percent drop in sales in September 2020.
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Celebrates 65 Years
TBC Corporation celebrated its 65th anniversary on March 23. TBC is a leader in the tire and automotive service industry with several trusted well-known brands, including retail brands Tire Kingdom Service Centers and NTB Tire & Service Centers, and franchise brands Big O Tires and Midas. Today, TBC is one of the largest marketers of automotive replacement tires through a multi-channel strategy with nearly 3,200 franchised and company-operated tire and automotive service centers, 22 proprietary tire brands and more than 150 distribution centers. In North America, the company’s initiatives add up to responsibility for nearly 10 percent of all aftermarket tires sold. “This is an incredible milestone for our company. We’ve achieved great success through the hard work, innovative spirit, passion and dedication of our 9,000-plus team members,” said Erik R. Olsen, president and CEO. “Our past is very much a part of our present and our future.”
Claim Your Future Showcase The Business Development Board partnered with the Palm Beach County School District for a recordbreaking year, inspiring 3,000 high school students. The Claim Your Future Showcase ensures high school students learn about all of the local opportunities available to them in Palm Beach County. Thank you to the event’s grand sponsor, Wells Fargo! Thank you to event partners CareerSource Palm Beach County and Junior Achievement.
BDB is One of 66 in the World Accredited The International Economic Development Council (IEDC) recently recognized the Business Development Board once again as one of 66 economic development organizations in the world as an Accredited Economic Development Organization (AEDO). Earning the AEDO accreditation tells the community and prospects that the Business Development Board attains a measure of excellence assuring that their trust is well placed, and their business is in good hands.
Are Bonds the Right Financing Tool For Your Business?
T
By Sherry Howard, Deputy Director Palm Beach County Department of Housing and Economic Sustainability
he Palm Beach County Department of Housing & Economic Sustainability operates a number of loan programs that assist businesses in Palm Beach County to grow and expand by offering long-term financing at favorable rates in partnership with Federal and private financial institution. These programs consist of the HUD Section 108 program, a USDA program for businesses in rural areas of the County, an EPA Brownfield Clean-up loan and a Department of Energy Loan for energy improvements. Eligible uses for these funds include working capital and fixed asset needs. Additional resources that benefit in the financing of a project are through conduit revenue bonds, which are available to both for-profit and non-profit businesses to secure fixed asset financing, and can generally be utilized to finance up to 100 percent of a project. The advantages for nonprofits is that the bonds are usually tax-exempt, which means that the interest earned on the bonds is tax-exempt to the purchaser for federal income tax purposes and, in some cases, also exempt from other forms of federal alternative minimum taxes to the purchaser. Because of this feature, taxexempt bonds frequently have a lower interest rate and longer terms than conventional financings. For-profit businesses also benefit through lower rates and longer terms subject to the underwriting of the project. Bonds are typically purchased and underwritten by institutional investors and banks to ensure that the business wishing to obtain the financing can generate sufficient cash flow to support the debt, as well as providing sufficient collateral to the purchaser of the bonds. The Internal Revenue Code requires that certain tax-exempt debt be approved by an elected governmental agency after a public hearing, but does not obligate that agency to make any payments on the bond. The bond is paid solely from revenues derived from the borrower and is not the liability of the governmental agency. Over the past 10 years, bonds approved by Palm Beach County have generated a $2 billion economic impact to our local area, created 1,568 new jobs and retained 5,439 jobs. Approved bonds provided financing for the education, health, arts, for-profit and non-profit industries. Examples of types of bonds which may be taxable or tax-exempt include:
1. 501(c)(3) Bonds - These are tax exempt bonds for nonprofits to assist them in meeting their fixed assets needs. The interest earned on these bonds is generally both exempt from federal income tax and alternative minimum tax making them attractive to purchasers. 2. Small Issue Industrial Revenue Bonds - Are bonds issued to assist manufacturing companies in meeting their fixed asset needs such as purchasing or building a structure and/or machinery and equipment. There is a $10 million cap on these bonds and the interest earned is tax-exempt from federal income tax for the purchaser of the bonds. Also, such bonds normally require an allocation of the State of Florida private activity bond volume cap. A business can generally use these IRBs for expansion or construction of manufacturing facilities. Usually, they are issued in amounts of $1 million but can be up to $10 million in specific scenarios.
3. Taxable Bonds - Insurance companies and certain institutional investors purchase these bonds issued by the County for their portfolios, which can assist private for-profit companies with their fixed asset and working capital needs. These bonds may also be issued in tandem to pay for such items not typically permitted by tax-exempt bonds such as working capital or excess costs of issuance. For instance, a non-profit might have its fixed asset needs funded by a taxexempt 501(c)(3) bond and its working capital needs by a taxable bond. Bonds may be an attractive way to finance the capital needs of your non-profit or for-profit business. To learn more about the Department of Housing & Economic Sustainability, or any of the County’s economic development and business investment programs, please contact Sherry Howard, Deputy Director at 561-233-3600 or showard@pbcgov.org.
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BUSINESS SOLUTIONS
On-the-Job Training Program Delivers Win-Win Benefits A new on-the-job training (OJT) program from CareerSource Palm Beach County is delivering workforce benefits to Alphazyme, one of the region’s dynamic life science companies. “Finding the right skill sets for laboratory positions in a manufacturing setting can be a challenge,” said Chad Decker, chief operating officer of the Jupiter-based company, which produces enzymes to support the development of vaccines and other therapeutics through genetic sequencing. “Partnering with CareerSource has allowed us to look at developing those skills by training people with a basic understanding of biochemistry and genetics.” For the past few months, Carle Dugan, a 2019 chemistry graduate from Florida State University, has received apprenticeship training as an Alphazyme lab technician, thanks to the CareerSource six-month OJT initiative. “I’m learning so much about microbiology here, and expanding my laboratory experience,” said Dugan. “Alphazyme is a great company, and I really appreciate the opportunity to learn on the job.” Founded in 2018, Alphazyme is a premier provider of industrial-scale, molecular biology enzymes. Located near Scripps Florida and Max Planck Florida Institute for Neuroscience, the 18-employee company has grown quickly
Chad Decker and Carle Dugan
and will be moving into a 13,000-square-foot facility this summer. “We feel fortunate to live and work in a community that fosters biotechnology,” added Decker. CareerSource’s employer programs have helped Alphazyme in a number of ways, said Decker. For instance, the OJT program covers half of Dugan’s salary during her six-month apprenticeship. “As our workforce partner, CareerSource has also helped us to source talent and find knowledgeable laboratory suppliers and vendors,” he said. “CareerSource is doing a great job of building a biotech ecosystem in Palm Beach County that benefits the entire region.”
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BUSINESS SOLUTIONS
Sky Nurses, LLC Benefits from On-the-Job Training Above Photo: Christie from Sky Nurses was hired October 2017 through CareerSource as an OJT candidate and is still working there.
John Naccarelli believes
On-the-Job Training (OJT) is one of
CareerSource Palm Beach County’s greatest services to employers. “The OJT program is a real benefit to our organization,” said Naccarelli, who is CEO of Sky Nurses, LLC, a veteranowned business in Boca Raton. “No one can walk through the door and immediately become productive. This program helps subsidize the cost of getting them up to speed in our organization.” Sky Nurses is a specialized global medical transport company that sends medical professionals to accompany ill or injured patients back to their home or medical facility from almost anywhere in the world. To do so, the company relies on its patient care coordinators, health care professionals and logistics planners to maintain its high level of personal service and care. In the past four years, CareerSource has helped the company to finance the training of six members of the administrative staff. “If you have a unique business like ours, you need to talk with CareerSource about this OJT training opportunity,” Naccarelli said. “Be creative John Naccarelli, CEO, Sky Nurses, LLC
in your thinking, and take advantage of this great program.”
Central Career Center 3400 Belvedere Road West Palm Beach, FL 33406 561.340.1060
West Career Center 1085 S. Main St. Belle Glade, FL 33430 561.829.2040
Connecting business with talent | www.careersourcepbc.com
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ESSENTIAL INFRASTRUCTURE FOR EVERYDAY CONNECTIONS. ®
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