850_FM11_Digital Magazine by Rowland Publishing, Inc.

Floridaâ&#x20AC;&#x2122;s Economic Savior? Gov. Rick Scott walks into office with promises to help business and create new jobs

$4.95

www.850businessmagazine.com

FEB-MAR 2011

A product of Rowland Publishing, Inc.

Tax audits MAY strike fear but can be managed with SOME help Polish your speaking skills to enthrall your audience WHO has been delivering sky high messages for 31 years?

bor, 1968 Destin Har

Remembering the past Seeing the future.

Destin H arbor, 195 5 Tall Ta lllah llah ahas asse as see, se e,, 1976 9776

“And” aligns people in the pursuit of a common goal: to listen to and understand the unique needs of our clients while working hard, keeping costs down and valuing every relationship we are fortunate to forge. “And” brings Dana Matthews, John Hawkins and Michael Jones together with our single-most important client … you. With more than 29 years of personal injury law experience, Michael Jones adds a new dimension to our diverse law ﬁrm. So please join Matthews & Hawkins in welcoming Michael Jones to our ﬁrm. Together, we are building stronger relationships to build a stronger region.

Our region is a vibrant, diverse mix of companies with a wide range of economic inﬂuences. Our award-winning 850 Magazine tells the dynamic story of Northwest Florida’s exciting emergence in state, national and international marketplaces through insightful features, in-depth corridor spotlight stories and comprehensive articles on trends and perspectives that truly embodies the mantra: Our region’s business is our business. To put 850 Magazine to work for you, call (850) 878-0554 or visit 850businessmagazine.com today. 4

FEBRUARY – MARCH 2011

850businessmagazine.com

850 Magazine February – March 2011

IN THIS ISSUE F I SCAL F EAR It’s a universal truth that business owners fear the tax man, but if you’re in business, you’re probably in line for an audit. Read our survival guide on page 38.

850 FEATURES etting To Work 30 GGov. Rick Scott was elected on the promise of putting more Floridians to work. Now it’s time to make good on that promise. In his first year, he faces 12 percent unemployment and a $3.5 billion budget deficit. Hoping to spur economic development — and therefore job creation — Scott wants to slash business taxes and government spending. He also wants to make it easier for businesses to relocate here or expand existing operations, which includes curtailing some state regulations. The big question now: What reception will those proposals get from legislative leaders this spring?

Tax Auditor Cometh 38 TIf he you are in business, chances are pretty good that you are going to eventually face an audit from the IRS or the Florida Department of Revenue. Small businesses are a major target for auditors trying to crack down on tax cheats. But, don’t panic. And don’t try to go through it without some professional advice. Most importantly, learn the tax law. A taxesowed bill can add up to a real disaster for your company’s bottom line. By Tisha Crews Keller

By John Kennedy

On the Cover: Gov. Rick Scott marches in his inaugural parade moments after taking the oath of office on Jan. 4, 2011. Photo by Mark Wallheiser

850 Business Magazine

FEBRUARY – MARCH 2011

850 Magazine February – March 2011

IN THIS ISSUE

47 12

51 Corridors

Departments

CAPITAL

business speak

47 Datamaxx is perhaps one of Tallahassee’s most successful businesses. But most people don’t even know it exists.

FORGOTTEN COAST

51 David and Trish Warriner took a leap of faith in the economic future of Port St. Joe by restoring the 100-year-old Port Inn.

BAY

53 Bay County Film Commissioner Julie Gordon is an economic engine, bringing the county up to $14 million per year from the film industry.

EMERALD COAST

57 Sandy Williams’ banner-tow company is the largest operation of its kind between Jacksonville and California, a testament to his business sense and perseverance.

I-10

63 Holmes, Washington and Jackson counties have joined forces to establish the “Regional Day Trip” program, hoping to market their rural region as a destination.

FEBRUARY – MARCH 2011

850businessmagazine.com

14 Dominic Calabro, CEO and president of Florida TaxWatch, talks about proposed savings that could lift state government out of the budget hole.

THE 850 life

17 The multi-talented Art Kimbrough stays busy at work — promoting economic development in Jackson County — and at play. By Linda Kleindienst

CREATING RESULTS

19 So you have to give a speech. Relax, play to your audience and practice, practice, practice. Here is some advice on how to get over the jitters and mesmerize your audience. By Linda Kleindienst

human element

23 When customers call your customer service office enraged about a product or service, what’s

57 In This Issue

11 From the Publisher 11 Letters to 850 12 Company Perks 16 Business Arena 66 The Last Word from the Editor

the best way to handle it? Some tips on how to train your staff. By Jon Burstein

MANAGEMENT STRATEGIES

26 Hiring security protection for your business represents a challenge because there are unique liability risks involved, both from the actions and inaction of guards. How to protect yourself. By Tony Bridges

Photos by Scott Holstein (pg 47,51 & 57) and courtesy PARE•UMBRELLA (PG 12)

Pictured (left to right): Steve Riggs, CRI PartnerIn-Charge Destin/South Walton oﬃce; Dana Hahn, Leasing Administrator Howard Group; Tracy Conerly and Tim Fulmer, CRI Partners; Merlin Allan Vice President of Real Estate Howard Group.

Paid Advertisement

town center

Carr, Riggs & Ingram, LLC opens new expanded oﬃces in Grand Boulevard at Sandestin® Why choose Grand Boulevard for your new oﬃce?

Why did Carr, Riggs & Ingram, LLC, choose Grand Boulevard for their new professional oﬃce?

• Vibrant and creative work environment with inspiring views • Flexible Class “A” office work space with state-of-the-art business amenities, including conference rooms, teleconferencing and wi fi • Close proximity to Northwest Florida Beaches International Airport opening in 2010 • Numerous casual and fine dining options for associates and clients; first-class shopping • Two Marriott hotels offering 300 combined rooms for out-of-town clients • Adjacent to Sacred Heart Hospital on the Emerald Coast Medical Campus

“Grand Boulevard offers our firm an easily accessible, high profile location with a multitude of convenient on-site amenities, including two Marriott hotels and a variety of restaurants that can serve as alternative meeting spaces,” stated Steve Riggs, partner of CRI. “When we meet clients, we can walk to a number of great restaurants while continuing the business discussion and not lose momentum.”

What makes Grand Boulevard a premium location?

Grand Boulevard at Sandestin® is the shop, work, play and stay Town Center located in South Walton County at the entrance of Sandestin® Golf & Beach Resort. The vibrant Town Center offers convenient access to everything you need on a daily basis, from the grocery store to professional offices and even the hospital and doctors offices. Grand Boulevard is located within the heart of Walton County’s business hub of financial, banking, medical and other professional businesses.

For leasing information, contact: Merlin Allan, Vice President of Real Estate --- or officeleasing@grandboulevard.com

GRANDBOULEVARD.COM

850 THE BUSINESS MAGAZINE OF NORTHWEST FLORIDA

FEBRUARY – MARCH 2011

Vol. 3, No. 3

Publisher Brian E. Rowland

Editor Linda Kleindienst

designer Tisha Keller

Contributing Writers Tony Bridges, Jon Burstein, Dominic Calabro, Lee Gordon, Scott Jackson, Tisha Crews Keller, John Kennedy, Linda Kleindienst, Lilly Rockwell

staff Writers Lilly Rockwell, Jason Dehart

STAFF PHOTOGRAPHER Scott Holstein Editorial Interns Brandon Neasman, Antonio Rosado, Janeen Talbott, Ana Goni-Lessan

traffic coordinator Carlin Trammel

Sales Executives Jessica Hathorn, Phil LaPorte, Todd Leach, Lori Magee, Linda Powell, Rhonda Simmons

online 850businessmagazine.com facebook.com/850bizmag twitter.com/850bizmag

President Brian E. Rowland

DIRECTOR OF Lisa Carey PUBLISHING OPERATIONS DIRECTOR OF Dan Parisi INTEGRATED SALES DIRECTOR OF Linda Kleindienst EDITORIAL SERVICES

Creative Director Lawrence Davidson ProDUCTION director Melinda Lanigan

Manager of finance Angela Cundiff HR/Administration

CLIENT SERVICE Caroline Conway REPRESENTATIVE/ traffic coordinator

assistant Saige Roberts creative director ADMINISTRATOR OF McKenzie Burleigh SALES and EVENTS ProDUCTION coordinator Carlin Trammel Senior designer Tisha Keller

graphic designers Beth Nabi, Marc Thomas, Daniel Vitter

Network Administrator Daniel Vitter RECEPTIONIST Lisa Sostre

Web Site rowlandpublishing.com

850 Magazine is published bi-monthly by Rowland Publishing, Inc. 1932 Miccosukee Road, Tallahassee, FL 32308. 850/878-0554. 850 Magazine and Rowland Publishing, Inc. are not responsible for unsolicited manuscripts, photography or artwork. Editorial contributions are welcomed and encouraged but will not be returned. 850 Magazine reserves the right to publish any letters to the editor. Copyright February 2011 850 Magazine, Inc. All rights reserved. Reproduction in whole or part without written permission is prohibited. Member, Florida Magazine Association and seven Chambers of Commerce throughout the region.

one-year Subscription $24.95 (SIX issues) (850) 878-0554 850 Magazine can be purchased at Books-A-Million, Borders and Barnes and Noble in Tallahassee, Destin, Ft. Walton Beach, Pensacola and Panama City and at our Tallahassee office.

FEBRUARY – MARCH 2011

850businessmagazine.com

Proud member Florida Magazine Association and Florida Press Association

850 Magazine February – March 2011

A RE A DE R’S V I S UAL TOU R of stories in this issue Tour of the Unknown | 63

I-10 EMERALD

CAPITAL BAY

Signs from Above | 57

Access Hollywood | 53

FORGOTTEN Passion for History | 51

Ever heard of Datamaxx? | 47

DO YOU HAVE BUSINESS NEWS to share? Send us an e-mail at editor@ 850businessmagazine.com, a tweet 850BizMag on Twitter, or fax your letter, press release or other news to (850) 656-1871. We also accept your announcements for business news sections. Information on mergers, acquisitions, promotions, expansions, closures and other newsworthy events are welcome.

DOCUMENTI N G H I STO RY 850 photographer Scott Holstein finally faces the camera at the inauguration of Gov. Rick Scott in Tallahassee on Jan. 4, 2011. Mark Wallheiser, freelance photographer, snapped the frame. You can see more of his work at MarkWallheiser.com.

PHOTOS BY MARK Wallheiser (HOLSTEIN) AND COURTESY LEE GORDON, LINDA KLEINDIENST AND JON BURSTEIN

CONTRIBUTORS LE E G O R DO N is the 5:30, 6, 10, and 11 p.m. news anchor for WCTV in Tallahassee. For the past 13 years, Lee has been a news and sports anchor working everywhere from North Florida to Billings, Mont. — he has also been a sideline reporter for the NFL on FOX. Lee was born and raised in Chicago. And while he loves the Windy City, he’s happy not to be shoveling snow anymore. L inda Kle i ndi enst joined Rowland Publishing in September 2008 to become editor of 850 and Director of Editorial Services. Prior to that she worked for the South Florida SunSentinel for 37 years, including three years as state political writer and 27 years in Tallahassee as the state capital bureau chief. She covered the administrations of five governors and 31 regular sessions of the Florida Legislature. When not writing, she’s busy rescuing horses and adopting unwanted dogs. JON B UR STE IN is an award-winning reporter with the Sun Sentinel in Fort Lauderdale. He has written about legal issues, gambling and white-collar crime during his 11 years at the newspaper, covering everything from the 2000 presidential recount to the $1.4 billion Ponzi scheme of South Florida attorney Scott Rothstein. He is married with one son.

850 Business Magazine

FEBRUARY – MARCH 2011

850businessmagazine.com

From the Publisher

Photo by David Eggleston

After Two Years of Rough Roads, the Future Looks Brighter in 2011 Listening to the news shows, I could not count the times the “talking heads” kept referring to the past decade as being the worst in many generations. I totally disagree. As I look back since the new millennium was rung in 120 months ago, I feel it has been a decade of learning, maturing and growth in so many ways. Granted, the past 15 months have been challenging, yet I have learned much. During this period, I have seen friends pass, people I care about endure personal tragedies, the economic foundation that had allowed Rowland Publishing to support more than 30 families maximally challenged. The past three years have also been a challenging and difficult period of time for our world, our nation, our communities and for many of the people we know and care for. Our world has changed, probably forever. During periods like this the best and the worst sides of human nature tend to rise to the surface. People I know and care for have put their lives on hold to be a caregiver to a loved one, struggling to balance work, family and personal lives. People have lost their jobs and businesses and are adrift trying to make ends meet. I also have observed people walk away from their financial obligations with an unconscionable sense of entitlement, contempt and disregard. The group of individuals I have the privilege to work with — and who have committed their talent to this publishing company — have pulled together this past year. They have gotten us through the months with all of our bills paid and our products completed on time and to the satisfaction of our most valued assets — our clients and our readers. The team also made contributions to society, most impressively during the holidays last year to a Tallahassee family in need. A father of four who lost his job captured the giving hearts of the Rowland team. His wife has a part-time job, and they struggle each month to pay the basic bills. The 2009 holiday would not have happened for them had it not been for the RPI team. I had asked for food donations, but when Cherie and I drove to their home last year, the SUV was packed with presents, food, clothes and more than $200 in gift cards for essentials. And the RPI team did it again in 2010, enabling us to deliver a car filled with food and gifts on Christmas Eve. I had never done this before and had no idea how many positive feelings I would have driving away after our brief visit: Pride in my

staff for stretching their personal resources to help others, the satisfaction of seeing the true appreciation of the family — and lastly, personally experiencing the magic of the holiday season like I never had before. In the same way, when local nonprofits ask, I will most always help promote events and causes. Usually, my contributions are behind the scenes. But Gerry Phipps managed to hit my soft spot when she asked me to participate in the inaugural Top Dog contest that benefits Be the Solution. My dogs — Sam, Bonzi and Chance — are in the running to be named Tallahassee’s Top Business Dog, but they need your votes to win. If a complimentary copy of 850 Magazine is mailed to your office and you’ve enjoyed reading it, I would ask that you say “thanks,” by going online at bethesolution.us through Feb. 22 and voting for us. Each vote is a $1 donation, but if all of our readers voted, we could raise $18,000 to pay for spaying and neutering companion animals to help eradicate pet overpopulation. Thank you. I look forward optimistically to 2011 being the year of economic recovery on all levels. At Rowland Publishing, we will maintain our commitment to excellence and publishing with integrity, work as a team for the betterment of all and commit to give back when we can again and again.

Brian Rowland browland@rowlandpublishing.com

TA L K I N G B A C K I have read 850 thoroughly since its first publication in our area; and though I have not provided feedback (directly), I have spoken with Linda (Kleindienst) on numerous occasions about how much I enjoy it. However, your article “If You Build It, They Will Not Necessarily Come” (Publisher’s Letter, December 2010/January 2011 issue) was RIGHT ON. I just had to respond!! I have been executive director of the Santa Rosa County Chamber of Commerce for 10 years now, and this is so true I wish I could drive it into the mindset of every business/organization that opens their doors. Some get it, and some don’t; and, as you say, the ones that do are usually highly successful, and well thought of. Thank you! Donna Tucker, Executive Director Santa Rosa County Chamber of Commerce, Milton

850 Business Magazine

FEBRUARY – MARCH 2011

Executive Mindset

Company Perks E XECUTIVE LUXURIES AND MUST-HAVES

Compiled by Tisha Crews Keller

wise wor ds Heralded by many as a 2011 must-read, Linda Hill’s new tome offers insight and real-world wisdom for managing yourself, your team and your surroundings for success. $25.95, bookstores.

AU TO - P I LOT This is no Roomba. The Mint is a robotic floor cleaning appliance designed exclusively for hard surface floor cleaning (especially good for offices) — and it uses navigation tech and Swiffer refills to get the job (efficiently) done. $199, Amazon.com and Bed Bath & Beyond stores.

Helpmates w eather p r oof pare*umbrella’s 24-rib, dome shaped parapluie is as utilitarian as it is beautiful. The high-performance water repellent fabric holds its own and the mechanism works almost effortlessly. Rafael men’s umbrella in olive green, $89, pareumbrella.com

FEBRUARY – MARCH 2011

850businessmagazine.com

NOTE-TORIOUS Rev up your day with Motegrappa’s Alfa Romeoinspired commemorative ballpoint pen made with carbon fiber and sterling silver. Italy’s storied penmaker puts elegance at your fingertips — literally. $995, goldspot.com

WATCHAL L This hand-sized device delivers all your iTunes content — including movies, TV shows, photos, music and podcasts — directly and wirelessly to your flatscreen. Don’t forget easy entertainment rentals directly through apple TV and even Netflix streaming through the device. $99, apple.com

photos courtesy apple, evolution robotics, pare*umbrella, minimal, harvard business review press and elmo+montegrappa

TIME MACHINE Snag the hottest trend by wearing your iPod Nano as a wristwatch — just snap it into Minimal’s LunaTik silicone and stainless steel wristband and fire up the Nano’s clock app. Tunes and time all your own. $69.95, lunatik.com

Developing Innovative Solutions to Private and Public Infrastructure and Governance Challenges

Our Track Record is Proven DOUG BRUCE AND ASSOCIATES has consistently earned the trust and confidence of a broad range of private and public clients. With over 40 years of problem solving experience, the firm will strategically engage decision makers to accomplish your objectives. The firm continues to meet challenges in a difficult economy and remains reliable and professional in a time of change. PRIVATE SECTOR SERVICES

PUBLIC SECTOR SERVICES

• Elevate client proﬁle in the legislative community • Develop and accomplish successful legislative strategies • Negotiate contracts between corporate and governmental entities • Develop and expand new markets for corporate clients

• Create and sustain practical legislative solutions • Identify and obtain funding for capital improvements • Coordinate effective communication between local and state officials • Provide support for policy development and strategic planning

Doug Bruce

Associates, LLC

A G ove r n m e n t al a nd L e g i s l at i ve C o ns ul t i ng F i r m 106 S. Monroe Street, Tallahassee | 850-402-1900 | dougbruceandassociates.com 850 Business Magazine

FEBRUARY – MARCH 2011

Executive Mindset

Business Speak A

s the nation recovers from one of the worst economic recessions in history, our state continues to battle unprecedented fiscal challenges and budget shortfalls that have made business-as-usual in state government an unsustainable course. The 2011 Florida Legislature is facing yet another in a series of tough fiscal years with a projected multi-billion dollar budget shortfall. This year, our state faces new challenges while continuing to solve the problems of yesterday. We face the imminent cessation of extended stimulus funding and generous federal match contributions, which poses the threat of further shortfalls; recent federal health care legislation is projected to dramatically increase the state’s Medicaid enrollment; and significant financial obligations are coming due, such as the unemployment compensation fund. We now know that the budget deficit will likely exceed $3–$3.5 billion dollars and the state will owe billions more to the federal government through the unemployment compensation fund. Now, more than ever, state government and its elected officials will need to find innovative ways to save taxpayer dollars and contain costs while preserving core services and programs. To help do just that, Florida TaxWatch has released a 205-page report of the Government Cost Savings Task Force for FY 2011–12 that identifies 125 ways to improve the productivity, efficiency and effectiveness of state government. Among the recommendations: improving collection of legally owed sales taxes on remotely conducted sales, expanding managed care in the Medicaid program and better identifying waste and fraud, removing exemptions to competitive bidding, standardizing the business process and conducting a top-to-bottom review of the criminal justice and corrections system to identify savings. (The report can be accessed at FloridaTaxWatch.org.) The report is the work of more than 40 concerned Floridians who were brought together by Florida TaxWatch on behalf of all the state’s taxpayers, including businesses and individuals. Members of the task force

FEBRUARY – MARCH 2011

850businessmagazine.com

Dominic M . C ala b r o is president and chief executive officer of Florida TaxWatch, a statewide, non-profit, non-partisan government watchdog and research institute for taxpayers. Florida TaxWatch was founded in 1979 to improve government productivity, taxpayer value and citizen understanding, and to encourage responsible participation by Floridians in their state and local governments. He can be contacted at dcalabro@floridataxwatch.org.

included current and former elected officials, such as Gov. Rick Scott, Attorney General Bill McCollum, Chief Financial Officer Alex Sink, state Sen. J.D. Alexander, and state Rep. Will Weatherford, and business leaders like Marshall Criser III, president of Florida AT&T. They worked for six months to find constructive, pragmatic, principled cost-savings with special emphasis on pensions, Medicaid and health care, criminal and juvenile justice and government procurement. These recommendations will generate savings to help close the budget gap without compromising core services and programs that Florida’s most vulnerable populations rely upon. They also provide much needed capital reserves for state government. The total estimated savings for all 125 recommendations are $3.5 billion–$4.4 billion in FY 2011–12 — just enough to close the budget gap. There are recommendations in eight core policy areas, with each chapter featuring a comprehensive report outlining specific issues and complexities facing the policy area as well as best practices to

solve these problems, including those utilized by other states that have dealt with similar problems. We have shared these recommendations with legislative committees, state agencies and the executive office. In December, the final report was officially presented to Gov. Scott through Lt. Gov. Jennifer Carroll, who called it critical to implementing Scott’s top priority of creating new jobs. We look forward to working with the Legislature and the governor’s office to implement many of these recommendations to create immediate cost-savings and cost-containments in the upcoming fiscal year. Our report builds on the success of previous Florida TaxWatch efforts that have generated more than $3 billion in savings since the publication of the first report in January 2009. Last year, the Government Cost Savings Task Force for FY2010–11 published 88 specific recommendations worth $3.2 billion that targeted reducing state government operating expenditures, increasing productivity and maximizing state revenue collections. At the close of the FY2010–11 legislative session, more than one third or 27 of the recommendations made by the task force were enacted by the Legislature. According to published estimates, the recommendations implemented in legislation or as part of the FY 2010–11 state budget are worth more than $1.1 billion in cost-savings to the state. I believe this year’s report and its 125 recommendations build upon and strengthen the 31-year-old mission and successful track record of Florida TaxWatch to improve taxpayer value, citizen understanding and government accountability. This mission has never been more vital to the state as Florida must work to solve complex, structural problems to create a more sustainable, healthy economic environment. In these times, it is absolutely imperative that smart, discreet and judicious revisions and reductions be made to the state budget to create a more financially sound and modern government under which each family, business and community may prosper. n

PHOTO COURTESY FLORIDA TAXWATCH

RIGHTING TAXES

850 Business Magazine

FEBRUARY – MARCH 2011

Executive Mindset

Business Arena ne ws + numbers statewide

Compiled by Janeen Talbott and Linda Kleindienst

‘There’s an App for That!’ Considering that mobile application technology was only introduced to the public in 2008, it’s growing prevalence in today’s society has earned it a place in everyday language. That isn’t all apps have earned. Small and large businesses alike have been taking advantage of the innovative medium to capitalize on the marketing and exposure that apps have to offer. The app craze has taken over smart phones, hand-held devices and are now available on tablets. Whether a business is using one to get feedback on a new product, spill the beans about an exclusive sale or merely give patrons a map to their store, apps have made their way to the forefront of modern technology. Those who see the benefits of hopping on the mobilebusiness bandwagon may be in luck. Do-it-yourself application tools include Google’s App Inventor (free), AppMakr ($199) and Build AnApp ($49–$149). These are cheaper than hiring a tech guru and those who aren’t among the more technologically inclined should be able to take a successful stab at it. >> 82% of the adults in America use cell phones. >> 43% of adult cell phone users have mobile apps on their phones. >> 1 4% of cell phone users have downloaded at least one app within the past 30 days. >> An estimated $2.42 billion in mobile-commerce sales was made last year. >> 6 2% of retailers are either in the planning stage or haven’t taken advantage of mobile-commerce at all.

High Marks for Hancock BauerFinancial, Inc., the country’s leading independent bank rating and research firm, has recognized 112-year-old Hancock Bank as one of the most financially sound banks in America for the 85th consecutive quarter, putting Hancock in the top 20 percent of more than 8,000 U.S. financial institutions. Forbes’ recently listed Hancock as one of the nation’s Top 100 Most Trustworthy Companies for the second year in row. In December, Hancock Holding Company, parent company of Hancock Bank, and Whitney Holding Corporation, founded in 1883, announced an agreement for Whitney to merge into Hancock in a stock-for-stock transaction. Hancock has 24 branch offices in Northwest Florida.

Friendly Neighbors Working to increase trade between Canada and Florida, Enterprise Florida has opened offices in Ontario and Quebec. Canada sends more tourists to Florida than any other country — and it’s Florida’s third largest export partner. As of September 2010, Florida exports to our northern neighbor totaled more than $2.9 billion — 32.1 percent higher than September 2009.

Anger and Gluttony in the Workplace

FEBRUARY – MARCH 2011

850businessmagazine.com

sues undeserved rewards (greed);

>> 4 1 percent said their boss habitually push-

glu tto ny

s es iz n la

pride

gre ed

es work on to others rather than doing it himself or herself (laziness); >> 3 1 percent said their boss regularly seeks undeserved admiration from others at work (pride); >> 3 3 percent said their boss makes sure that others stroke his or her ego on a daily basis (lust); >> 1 9 percent said their boss can be counted on to act enviously toward others who experience good things (jealous); >> 2 3 percent said that their boss purposefully hoards resources that could be useful to others at work (gluttony).

lust

h wrat

trouble managing his or her anger (wrath);

>> 2 7 percent said their boss vigorously pur-

usy jealo

In recent years, the American workplace has been infused with unprecedented levels of hostility — and that’s largely due to the deterioration of supervisor-subordinate trust, according to Florida State University researchers. To better understand this deteriorating relationship, Wayne Hochwarter, the Jim Moran Professor of Business Administration in Florida State’s College of Business, and research associate Christian Ponder asked more than 750 mid-level employees to report how often they personally experienced their direct supervisor’s “Seven Deadly Sins” — wrath/anger, greed, laziness/sloth, pride, lust, envy and gluttony — at work. Results indicate malevolent supervisor behaviors in excess of what many might expect: >> 2 6 percent said their boss frequently has

Executive Mindset

) The (850 Life

survive and thrive

Does It All Art Kimbrough, marianna President/CEO Jackson Chamber of Commerce

A 2

1. Staying sane: Running,

BLACKBERRY PHOTO COURTESY RIM

biking, swimming and triathlon. I just completed a quarter Iron Man in Key West, which included a one-mile swim, a 24-mile bike ride and a 10K run. My younger son suggested it because he knew I was trying to get in shape. I said, “Yeah, you’re just after my life insurance.”

2. Alma mater: I was a music

major, a trombone player, and I graduated from Stetson University with a music degree. I went to Atlanta and built a string program with 3,000 students. The hours were lousy, the pay was worse. I was good but not great.

Photo by SCOTT HOLSTEIN

3. First job: Busboy and

dishwasher in my uncle’s restaurant in Panama City, the old Sully’s Restaurant, when I was in junior high school. It was ugly. I lasted about two weeks.

6. Blackberry or iPhone?

I’m a Blackberry-holic. I like touch pad but not touch screen. I like the feel of my fingers on a keyboard.

7. Business Hero: David

4. Best advice: Quote my

mother on this one. It was a lesson her daddy told her: “Whatever you do, don’t dishonor my name.”

Steward of Worldwide Technology. It’s the world’s largest black-owned company. He built the business on strict biblical principles. He understands character, leadership.

5. Must-have: My father’s

8. Biggest frustration: People

old pocketknife. It’s worn down to the nub but it’s useful for anything. My frustration is I can’t carry it on the plane with me.

who waste their time complaining. If something doesn’t work, figure out how to deal with it. Life is too short to live in a world with moans and groans.

rt Kimbrough’s roots run deep in Northwest Florida. On his mother’s side, his great-grandfather bought 8,000 acres in Port St. Joe from the Indians in 1868 — for $125.10. His father’s family arrived in Jackson County in 1818, becoming one of the first 10 families to settle the area. Although Kimbrough, 63, has spent time in the corporate world far away from those roots, he came back. Now he’s working to sell the world on what a perfect place Jackson County is to start a business and raise a family. “I spent my life as a young man aspiring to go to the big city and become somebody,” he says. “But I realized I was running away from a real treasure.” When hired as the executive director of the Jackson County Chamber of Commerce, Kimbrough’s job was to bring together warring factions, improve the organization’s reputation and help build a stronger financial base. “I make it a point to be as visible in as many places as I can,” he says. “Even if I’m on a personal trip, I’ll seize on the moment to build relationships. People like to know you’re out there to pitch, promote and tell the story.” — Linda Kleindienst

850 Business Magazine

FEBRUARY – MARCH 2011

850businessmagazine.com

Executive Mindset

Creating Results L EARNING HOW TO CONNECT

Strictly Speaking Sure, it’s scary, but the suprising truth is, usually it’s not what you say, but how you say it when it comes to public speaking by Linda Kleindienst

“ According to most studies, people’s No. 1 fear is public speaking. No. 2 is death. Death is No. 2. Does that sound right? This means to the average person, if you go to a funeral, you’re better off in the casket than doing the eulogy.” —jerry seinfeld

ot everyone is a natural born orator. But that’s no excuse if you’re a business leader who is asked to give a speech before the local Rotary Club, at a business conference — or even to your own employees. While CEOs are expected to display leadership talents, some of the skills they need for the job must be learned. And, anyone who has stood for the first time before a large audience — very possibly with shaking knees and a sweat-beaded brow — knows that some of those lessons take time and lots of preparation to learn. There is no end to the advice that books and the Internet can offer on how to give a speech and enthrall your audience. Much of it sounds like common sense, but rational thought often escapes us when we are paralyzed with terror at the thought of facing an audience with upturned faces that reveal their eagerness to hear our message. “We have a primal fear of public speaking,” says Lise Diez-Arguelles, an associate in business communication at Florida State University’s College of Business. “Think back to

primitive times. The adrenaline, the nervous movements, the voice shaking. We’re worried about being killed up there.” The key, she adds, is to figure out what parts of your body betray nervousness and learn how to mask it. “Most of us are horrible at public speaking. You have to recognize your weaknesses and then fix them,” she counsels. “Audiences want a speaker to do well and feel uncomfortable if they feel the speaker is uncomfortable.” She and other experts in the field also say it is important to know your audience, limit yourself to making a few key points and allow the real you to shine through in the presentation.

Prep, prep and more prep Stefania Lucchetti, an author and professional speaker who has worked with Fortune 500 companies and written public speaking articles for Six Minutes, a website that focuses on how to become a confident and effective speaker, urges intense preparation for and then frequent rehearsal of a speech. “You should know your material inside out, know it so well that you can have the flexibility to weave in new things,” Lucchetti recently wrote for Six Minutes. “Just like when playing a sport, or dancing, or practicing martial arts, it is when you really know your moves, when you have

850 Business Magazine

FEBRUARY – MARCH 2011

Helpful how-tos on speech prep Lise Diez-Arguelles has been teaching business communications for 12 years. Here are some of her tips on how to prepare for and give a good speech — and deliver a message that your audience will remember: Film yourself in practice. Figure out what parts of your body betray your nervousness — and learn how to mask it. Eye contact is critical. Look at your audience. Scan the room so that you can think and look at the same time. Learn to look from person to person, but don’t look too long at any one individual. You’ll get better with time and practice. Don’t read a power point. Power points have evolved into a crutch. Anyone can get up in front of a room and read a power point, but audiences can read them faster than you can. If you must use a power point, use it to enhance the visuals that accompany your speech. Keep your hands out. Audiences like visible hands. And turn your palms outward toward the audience — it’s a more welcoming signal. on’t play with your clothes or hair. Even in gangs, the person who D moves the least is usually the most powerful person. A lot of speech-giving involves acting. Don’t scratch, pull and, especially, don’t ummmm your way through your speech. The audience will focus on any nervous movement you have. You know? If you have to say you know, you know, you know, the audience will start counting. The rule of threes. Three points for any length of speech is enough. Organize your thoughts. If you give your audience threes, they’ll listen to see if you hit them. Throw in some emotion. About 90 percent of the population is persuaded by logic, but 10 percent is more persuaded by emotion. You need to have at least one emotional point mixed in with your logic, then you can have 100 percent coverage. The clincher. At the end, deliver a clincher that ties into your beginning attention getter, “because sometimes an audience doesn’t know when to clap because they don’t know when it’s over.”

mastered them to a point where they are natural to you, that you can be the most flexible, open to improvisation and engaged in the moment.” The key to a good speech is knowing the audience that you are trying to reach. Most importantly, research your topic so that you can provide specific information or statistics that your audience will find relevant. “Concrete and specific details improve the strength of your arguments, and thus make your overall message more persuasive,” urges Andrew Dlugan, an award-winning public speaker and

FEBRUARY – MARCH 2011

speech evaluator who is editor and founder of Six Minutes. “Explaining the theory behind why your new solution will raise profits is a good start; sharing a story about a company which raised profits by 17 percent by adopting your solution is much stronger.” When deciding what to say, consider the length of time you are speaking. For a short speech, consider limiting yourself to one key point, suggests Doug Staneart, president of The Leader’s Institute, an international training and consulting company that focuses on team building and public

850businessmagazine.com

speaking. If the talk is longer than 30 minutes, the limit should be three key points. “Ask yourself, ‘If my audience only remembered one thing from my talk, what would be the most important thing for them to remember?’ The reason this is so important is that the human mind likes to think of only one thing at a time.” Diez-Arguelles also cautions that audiences don’t like to listen. Half are probably thinking about what they had for breakfast or they’re sitting there daydreaming.

creating results

So, the best idea is to tell them what you’re going to tell them — and then tell them again. And remember: “A really good speaker has an attention getter at the top.”

Cater to your audience “It’s always about the audience. It’s not about you,” said Diez-Arguelles. “I tell my students, don’t you dare get up in front of a group of people without knowing why you’re there. Make your topic work and know they expect a good speaker.” When trying to connect to your listeners, Dlugan also points out the need to make a speech understandable, logical and real. “If your audience doesn’t understand you, they can’t be persuaded by you,” he wrote in 17 Easy Ways to be a More Persuasive Speaker. To be an effective communicator, he says the speaker must “use words, phrases, examples and visuals that are understandable. And you’ve got to deliver them at a pace the audience can absorb.” Leave the power point presentation at home, limit your speech to a maximum of 20 minutes and remember the rule of threes. People, therefore audiences, like to think in terms of three. “We humans don’t like to go beyond,” says Diez-Arguelles. “If you stretch it to five or six points, forget it.” Agrees Staneart, “The more points your presentation has, the less focus the audience will have on each individual point.”

Your body counts Last but not least, what you wear when you are giving a speech can be critical. Especially for women. Men wear business suits that enhance their dominance. They look powerful and audiences respond to that. For credibility, women have to minimize sexual signaling, says Diez-Arguelles. “Cleavage is out. And cover the elbow. “Remember that 55 percent of our messages come from our body while 38 percent is from our voice. At the very end is content, 7 percent,” she adds. “If your audience is stopped along the way from your actions or expression or dress or the sound of a squeaky voice, they won’t have access to your message.” n On the Six Minutes website, sixminutes.dlugan.com, you will find a host of stories, blog entries, strategies and tips about how to prepare for and give notable speeches. Hosted by Andrew Dlugan, the site also offers critiques of speeches that have been given by people like Al Gore and Steve Jobs.

850 Business Magazine

FEBRUARY – MARCH 2011

850businessmagazine.com

Executive Mindset

Human Element D EFUSING customer blow-ups

How to Dismantle an Atomic Bomb Customer service strategies for when angry clients come calling can save more than your sanity by Jon Burstein

hey can walk into businesses and launch into red-faced tirades that turn heads. They can yell expletives over the phone they would never dare say in public. They can break down crying, unburdening their woes to strangers. “They” are anxious or angry customers demanding attention, with grievances that are sometimes real and sometimes blown out of proportion. And with so many people struggling economically in Northwest Florida, as well as throughout the state, these types of customers are an unavoidable fact of life when it comes to doing business. “It’s amazing to me how some customers lose their tempers,” said Bart Cassidy,

president of the Tallahassee-based American Safety Institute, which does corporate safety training. “I think people are under pressure — some people are out of jobs and they don’t see their situations getting better. People feel frustrated.” That growing frustration is evident to customer service representatives at Gulf Power Company. They say they saw a jump in the number of upset clients last winter — desperate customers suffering the stings of the economic recession and afraid of having their power turned off. “A lot of people are in situations that are no fault of their own,” said Mike Puentes, the customer service supervisor at Gulf Power’s Pensacola call center. All the marketing a business does is

wasted if its employees on the front lines of customer service are ill-equipped to handle challenging clients. Experts say businesses need to have some training in place for their employees. While the thought of dealing with an irate client makes most employees cringe, there are simple ways to defuse such a situation and perhaps turn what begins as a negative encounter into a satisfying customer experience. “Understand this is a customer and your job is to create an over-happy customer,” said John Tschohl, a customer service strategist and president of the Minneapolis-based Service Quality Institute. “Good customer service creates word-of-mouth advertising.”

850 Business Magazine

FEBRUARY – MARCH 2011

human element

In the Heat of the Moment

So what should you do when confronted with an upset customer? Here are some tips from the experts: Listen. Listen. Listen. More than 1,300 customers walk into Gulf Power’s downtown Pensacola office every day. Each customer service representative working the office’s seven windows has been trained that their first job is to listen, said Lisa Esser, supervisor of the utility company’s Pensacola business office. “When a customer comes in, give them good eye contact and show you are listening,” Esser said. That means giving the client your undivided attention — putting down the phone and not looking at a computer. Letting upset customers air their grievances uninterrupted is key, said Kathy Fish, supervisor of Navy Federal Credit Union’s Pensacola call center, which is staffed by more than 700 customer service representatives. Once the customer begins to wind down, that’s the time to begin asking non-defensive, open-ended questions, she said. Esser said it’s important to let an angry client know when you are going to start asking those questions. “When you tell them that upfront, they are more likely to be patient with the questions,” Esser said. “All through the process remaining calm is essential because that will get back to the customer.” Tschohl said it’s crucial the customer service representatives empathize with clients, addressing customers by their first names and using verbal cues such as, “I understand what you are saying.” Acknowledge the customer’s anger. Whether the client is right or wrong, an apology early in the conversation helps, customer service experts recommend. “I think it’s always appropriate to say you are sorry that the situation happened,” Esser said. Tschohl said just hearing the word “sorry” goes a long way. “The worst thing you could do is not apologize,” he said. “It becomes gasoline on the fire .… Are you going to create an argument with a customer and lose him?” Don’t take it personally. This can sometimes be hard with especially abusive clients, but it’s critical for customer service representatives to separate themselves from the criticism, experts say. “In a customer’s mind, you are the company and something wronged them,” said Barry Himmel, senior vice president at Signature Worldwide, a customer-service training firm. “A

FEBRUARY – MARCH 2011

Rational customers get angry not so much based on the actual event but based on prior experience with us. If we treat them really well when there are no emergencies, they know that we will be there for them when emergencies do occur. A new customer hasn’t developed that level of trust — yet. Here are some tips that will help you develop that trust and calm (and retain) angry customers. Turn on your ears and zip your lips. One of the key elements in calming angry customers is to accept all the blame. Be fully accountable and don’t say a word during this phase. Take notes. This makes the customer feel important, and you can ask them to slow down if they are talking fast — another calming technique. When they are done, remain silent and thoughtful. This pregnant pause is powerful in calming angry people. Let them know you are still listening and want to confirm what they just said. Say, “Let me see if I understand correctly.” Then paraphrase back to them the notes you have taken. During the paraphrase, ask several times if you are correct in your understanding. Use closed questions so their response will be “yes,” another calming word. Apologize for what’s happened. It’s important to accept full responsibility, on behalf of the company. Say, “I apologize for this. I’m here to help you.” Explain what you are going to do and how soon. Tip: the sooner the better. Seventy-five percent of customers prefer staying with a business that resolves their complaint quickly. Say ‘thanks’ for the customer bringing this to your attention. Try having the goal of saying ‘yes’ to customers. Don’t worry — you won’t be giving away the farm. Customers just want to be treated fairly and with respect. Offer alternatives instead of saying no. Consider allowing staff to send a handwritten note to the customer as a follow-up. At the very least, make a courtesy follow-up call to the customer no more than three days after the incident is resolved. — Margie Seyfer (margieseyfer.com)

850businessmagazine.com

common mistake is you become defensive and push back. You need to be positive and professional …When you are taking inbound calls as a customer service representative, you are fair game.” Fish said it’s important that customer service representatives remember they didn’t cause the problems, but they can find the solutions. Solve the problem. A customer service representative should work to take the emotion out of the situation and get an upset client to start thinking analytically. Fish said a customer service representative should always take notes while a client talks and go back through what was said to get to the root of the customer’s grievance. Once the problem is fleshed out, it’s a matter of determining what solutions are available, she said. Himmel said it’s important to come up with a specific course of action as quickly as possible. “You want to be able to say, ‘If I’m able to do this, this and this, will it help?’ ” Himmel said. He noted that when a client’s phone call must be redirected somewhere else in the company, it’s important for the customer service representative to stay on the line as the call is transferred. You don’t want to lead a client down a dead end. Give the customer something extra. It’s important for businesses to give customer service representatives some latitude in helping upset clients, the experts say. That can translate into giving the clients added benefits — a gesture that their business is appreciated. Will there be people who manufacture problems in attempts to get free stuff or discounts? Sure, but there’s little benefit in worrying about such clients because they comprise such a small fraction of complaints, the experts say. “You can’t have the mindset that the customer is out to get something for nothing,” Himmel said. Follow-up with the customer. Fish said it’s important for customer service representatives to check to make sure a problem has been resolved. She said one Navy Federal Credit Union representative recently received a phone call from a client who was upset and wanted to cancel her account. The representative talked her through her issues, learning that she was going to be traveling and was concerned about protecting her identity. The representative took down when the client would be coming back home and called her once she returned from her trip to check up on her. That client subsequently increased the

The Surprising Power of ‘Yes’ amount of money she had invested with Navy Federal, Fish said. Don’t take out frustration with one customer on other customers. Himmel said a phone operator may handle 200 calls a day and 190 may be positive, but it will be the 10 difficult ones that stick with the employee. That’s natural. But it’s important after a tense interaction with a customer that the employee move on to the next one and remain professional and polite. “You don’t let the previous call affect you,” said Gulf Power supervisor Puentes, whose phone center handles 1.4 million calls per year. “Treat each individual as a call on its own merit.” If an employee is stressed after a customer interaction, it’s important for him or her to take time out to calm down, even if it’s only for a few minutes, experts say. Companies can even designate areas where employees can cool off. For example, Gulf Power’s office in Pensacola has a quiet room with comfortable chairs and a television for employees to take breaks, Esser said. When a face-to-face encounter with a customer spirals out of control, remember safety

According to customer service pro Margie Seyfer, the word ‘yes’ has an amazing power of disarming angry people. Makes sense, doesn’t it? Agree with something — anything — an angry person says and they immediately ratchet down a notch. But getting them to say the affirmative word has even more of an effect, she maintains. “Do you say ‘yes’ more than ‘no’ to angry customers?” she asks. “Consider what would happen to your level of customer loyalty if your business philosophy became, ‘Our goal is to always say yes.’” Businesspeople shouldn’t be worried that the customer will demand a refund or other restitution. Usually, what they really want is for someone to show they are willing to offer options when something goes awry. Seyfer experienced this first-hand at a hotel that had a “no banners allowed” policy for their walls. Instead of saying ‘no,’ the staff simply responded to her request with an alternative option — which Seyfer had not thought of herself but was completely workable. So, the next time you feel the need to say ‘no,’ take a minute to offer up a better response that will pay dividends in the future.

is the priority. When a customer cannot be placated, a supervisor should become involved, said Cassidy from the American Safety Institute. “Most of the situations that get out of control have nothing to do with the (employees) they are dealing with,” Cassidy said. “If it’s going to be a violent scenario, give them what they want. If you can’t give them what they want, give them something.” An angry customer is, first and foremost, a customer. This is someone who has spent money on your company’s products or services and the

interaction with a customer service representative will create a lasting impression of the business. Future dollars are at stake. Tschohl said when a customer complains, a business should be grateful. It gives the business a chance to correct problems rather than let the customer quietly fume and likely vote with his or her wallet, choosing to spend money elsewhere. “If you offer a great customer experience, people will buy more from you,” Tschohl said. “If the service is just OK, that’s not a reason for them to come back.” n

NO COOKIE CUTTERS HERE. We Cater To You. Not every communications issue is solved with the same tools and tactics. At CoreMessage, we don’t believe in a one-size-ﬁts-all approach. We create personalized, individual communication plans based on your unique needs. So, if you’re looking for a ﬁrm with award-winning strategies, unrivaled contacts, decades of experience and a staff who is tirelessly dedicated to you — you’ve found it in us.

850.222.3767 | coremessage.com twitter: @coremessage 850 Business Magazine

FEBRUARY – MARCH 2011

Executive Mindset

Strategic Thinking putting

the safe in security

(Safe) Guards Don’t leave your business open to a security disaster: here’s how to hire guards that won’t leave you in legal peril by tony bridges

you own or manage a vacation destination, choosing the right security staff can be one of the most important decisions you make as your property begins gearing up for the spring tourist season. Security hiring represents a challenge for properties because there are unique liability risks involved, both from the actions and the inaction of guards. Heavy-handed security can alienate guests and lead to confrontations, while lax security can leave guests at risk of injury or theft. Or worse, poorly screened guards may end up victimizing guests themselves. Any of the above means headaches and potentially costly civil suits for the property. Fortunately, with a little due diligence, a

FEBRUARY – MARCH 2011

850businessmagazine.com

smart property manager can limit the risks and help prevent security disasters. It’s mainly a matter of knowing exactly who you’re hiring to provide for your guests’ safety. “Whoever you hire are agents of you,” says David A. Simon, a Ft. Walton Beach attorney specializing in premises liability. “Property owners need to insure themselves against these employees. It helps spread the risk.”

Liability is part of doing business By Florida law, the person who possesses or controls a property is responsible for providing visitors with a safe environment. That includes taking steps to prevent criminal activity, especially if crimes have occurred on the property in the past or can reasonably be expected to occur in the future.

For example, if the parking lot at your resort has been the scene of car burglaries and fistfights, then it’s your legal responsibility to make a reasonable effort to keep such incidents from recurring. One way you might do that is to hire security guards to patrol the parking lot. But hiring security officers is not enough by itself to avoid liability in the event something goes wrong. The legal concept of respondeat superior — Latin for “let the master answer” — makes you responsible for whatever those security guards do while acting as your agent. What happens if a guard tackles an innocent person, or wanders off his post while a guest is being assaulted, or abuses his authority to sexually harass female guests? The

civil, and sometimes criminal, liability still falls on the property and the manager responsible for operating the property. And those kinds of things happen. Simon, who has been litigating premises liability cases for 36 years, said he had a recent case in which a condo security guard handcuffed beachgoers — even though he had no arrest powers and no legal authority — just because they cut through the condo property to get to the sand. Two years ago, Panama City Beach police arrested a hotel security guard after he sexually assaulted a teenage girl on Spring Break and threw her from a balcony. The guard had been hired even though he had a felony background and was wanted in another state. Another condominium guard was arrested recently in Destin after allegedly being caught using his master key to enter a unit and rifle through the owner’s belongings. Protecting your property against these disasters starts at hiring. “Obviously a background check should be made on any person who’s going to be dealing with the public,” said Simon. “That’s where the liability comes in, when they don’t do something they should have done.” What kind of security should you choose? Whether you run a sprawling beachfront resort or a small mom-and-pop motel, you have three basic options when it comes to offering security to your guests: >> Hire off-duty law enforcement officers through the local sheriff or police department. >> Contract with a security company that is responsible for hiring and assigning guards. >> Hire your own private security guards as your direct employees. The first choice is the simplest, and the one that Simon recommends. Law enforcement agencies typically have an off-duty employment coordinator who, with a few days’ notice, can arrange for officers to provide security at your property. Scheduling is flexible and reliable. With off-duty law enforcement officers, you know you’re getting highly trained and experienced staff who have been carefully screened for suitability. They know

how to spot criminal activity, defuse tense situations and control crowds. Plus, they typically wear law enforcement uniforms, which act as a deterrent. And, even though they are off-duty, they can still make arrests if they see a crime occur. Property managers are “getting much more experience and expertise for what they’re paying,” Simon said. The only downside is the cost. Hiring offduty deputies or police officers can usually run $25 per hour, or more. Alternately, there are dozens of local security companies, as well as branches of several national operations, that offer services in Northwest Florida. They typically work on a contract, charging the property by the number of man-hours provided over a set time period. One of the benefits of using a security contractor is that the company is licensed and regulated by the state and hires only licensed security guards. In order to get a security guard license, a person has to have 40 hours of training and submit to a fingerprint check through the FBI’s National Crime Information Center. Applicants with recent felony convictions or any convictions for misdemeanor offenses that might be relevant to the job, such as theft or assault, are denied. That means the guards you get are prescreened by the state and usually by the security company, as well, which offers your property a degree of protection from liability if an incident occurs. Just make sure that you keep a copy of the security company’s certificate of insurance on file, Simon said. The cost is lower than law enforcement — in the $10–$20 per hour range — but the turnover is much higher, since many companies are constantly cycling through guards. The Resort Collection, which includes Edgewater Beach & Golf Resort in Panama City Beach, decided several years ago to contract with a private security company, according to Paul Wohlford, vice president of sales and marketing. In addition, the resort hired an internal safety director to coordinate security and augments its staff with off-duty law enforcement for special events, he said. A key factor in choosing a security contractor, Wohlford said, is making sure the staff is not only proficient and competent in security issues, but also in dealing with vacation guests. “We need good memories created, and that

Background checks and the Fair Credit Reporting Act Many companies, such as LexisNexis, offer employee screening services. Even though these third-party background reports may not contain credit information, they’re still governed by the FCRA, which sets certain rules for what kind of information can be used and how it is obtained. For example, only criminal convictions from the last seven years can be included. Also, if an employer decides not to hire based on something in the report, that must be disclosed to the applicant. Be sure to familiarize yourself with these requirements before using an employee screening service. For more information, check out the “Small Business Owner Background Check Guide” from the Privacy Rights Clearinghouse at www.privacyrights.org.

850 Business Magazine

FEBRUARY – MARCH 2011

strategic thinking

includes all the security people,” he said. “Security and safety come first, but they also have to have a sense of hospitality. We want a very welcoming feeling when you come in the gates.”

Do-it-yourself employee background check

Hiring your own security staff

These are the steps to a very basic background check. You will need the applicant’s full name (including nicknames), date of birth, Social Security Number, and a 5-year address and employment history.

Going it on your own is the least expensive option — a part-time guard with no benefits will run about $8–$10 per hour — but it’s also the one with the most risk. Technically, properties can hire anyone they want to handle security duties. State law does not require a security license for “any unarmed individual who works exclusively for an employer ... but there has to be an employer-employee relationship,” said Liz Compton, public information director for the Florida Department of Agriculture and Consumer Services, which regulates guards. However, there still is the issue of liability. Remember, as the employer, you will have a legal responsibility to determine whether an applicant is suitable for employment in a security position. And you will be responsible for discovering anything a “reasonable person” would know or should know in the applicant’s background that would disqualify him or her.

Two years ago, Panama City Beach police arrested a hotel security guard after he sexually assaulted a teenage

Criminal Records >> T he Florida Department of Corrections website (dc.state.fl.us/AppCommon/) will show you whether an individual has served time in state prison since 1992 or is currently on felony probation. Verify any information with DOC. Cost: Free >> If the applicant has lived in Florida for the last five years, you can go to the Florida Department of Law Enforcement website (www2.fdle.state.fl.us/cchinet/) to run a statewide criminal history check. This report will show all arrests in Florida. You will need to check with individual county clerks where arrests were made to confirm disposition of cases.

Cost: $24. >> If the applicant has lived outside the state, you also will need to check with the county clerk in each county of residence. Many counties offer some records online, but public records laws vary from state to state. To research a particular state, visit the Open Government Guide (rcfp.org/ogg/index.php). When running county searches, make sure to check variations of names. Cost: varies by county. >> T o check federal cases, you can use the PACER system (pacer.gov, registration required) to search by court district. Cost: $.08 per page. Fee is waived if the balance on your account

does not exceed $10 per quarter. >> G OOD TO KNOW: No matter what you see on the Internet, there is no such thing as a service that provides a national criminal records check. Law enforcement agencies will run fingerprint checks for certain professions, such as daycare workers, for a small fee, but usually only those mandated by state or federal law.

Motor Vehicle Records

He had been hired even though he

While certain Florida driver’s license information is public, the federal Driver Privacy Protection Act makes it difficult for a private third party to obtain complete and accurate information. The best practice is to require an applicant to obtain a copy of his 3- or 7-year driving history from the Department of Highway Safety and Motor Vehicles.

had a felony background and was

Employment History

wanted in another state.

This requires calling previous employers and speaking to former supervisors. While most companies have policies of confirming only dates of employment, salary and rehire eligibility, you’ll occasionally reach someone willing to talk a little more. Be alert for any red flags, such as factual allegations of workplace theft or violence. However, be careful when making decisions based on information gained in this way.

girl and threw her from a balcony.

At a minimum, that means you need to thoroughly check an applicant’s criminal history, motor vehicle history and past employment for any record of theft, violence, drug use or irresponsible driving, such as DUI. It can cost up to $100 or more to run such checks on a job applicant, depending on whether you do it yourself or hire an employment screening company. But failing to do so could cost even more in a civil action. Regardless of the background, Simon said he still wouldn’t suggest hiring someone without security qualifications. “When you’ve got someone with no experience, you’re giving a wannabe a cloak of authority,” he said. “There’s a danger there.” n

FEBRUARY – MARCH 2011

850businessmagazine.com

Education The best place to start is the registrar’s office of the school your applicant claims to have attended. The registrar will either help you, or, increasingly likely, direct you to an independent verification service. One of the largest is the National Student Clearinghouse (studentclearinghouse.org) where you can search online to verify a degree. Cost: Varies by

school, but should not be more than $5–$10. Military Records Verifying military service takes time because it involves sending a request to the National Personnel Records Center in St. Louis, Mo., and waiting for a response via snail mail. However, every discharged vet receives a copy of a form called a DD 214. This form contains the veteran’s dates of service, military job, geographic assignments, rank and awards. If a vet is claiming military skills related to the job, you may ask to see this form.

RED HILLS HORSE TRIALS March 11,12,13 Klapp-Phipps Park Tallahassee

A Salute to Our Community

GOV. SCOTT

Florida’s New CEO

Gets To Work Facing high unemployment and a budget crisis, Rick Scott’s plan is to focus on luring new industry to the Sunshine State and putting unemployed workers back on the job By John Kennedy

“ It’s important to recruit companies from around the world, it’s even more important to support the homegrown successes in our own backyard.” nder a bright January sun, the political — and maybe economic — future of Florida was framed on a stage outside the state’s historic Old Capitol. Seated in one chair was outgoing Gov. Charlie Crist. Tanned, with his shock of camera-ready white hair, Crist smiled and winked, tapping a toe as a Tampa girls’ choir sang. He looked relaxed. He was Charlie. But his ease may also have been helped by being a governor handing off a 12 percent statewide unemployment rate and a $3.5 billion budget shortfall to the man seated a few chairs away. Rick Scott looked kind of tense, his features frozen in a pleasant grin. But Scott at times also looked like a man questioning the $73 million personal investment he made in a campaign that landed him on this stage, being sworn in as Florida’s 45th governor.

FEBRUARY – MARCH 2011

After all, the state’s battered economy gives a lot of people pause. As the state enters the fourth year of state budget cuts, with jobless numbers that continue to outpace the nation and a housing market that collapsed and has now been restored to merely gasping, Scott is casting himself as Florida’s economic savior. His inaugural address was anchored by promises of luring companies, creating jobs, shrinking the size of government and cutting red tape. Scott ended the speech with the line that will linger as his administration’s credo. “Let’s get to work,” Scott concluded, drawing hopeful applause from the crowd of lobbyists, legislators and regular folks gathered for the change-in-command. So, how does Scott do it? It’s not hard to find skeptics. Scott’s pledge to create 700,000 jobs over the next seven years — on top of the 1 million

850businessmagazine.com

expansion already forecast by state economists — may prove one of the new governor’s tallest tasks. “That just isn’t going to happen,” dismissed Sean Snaith, a University of Central Florida economist who recently forecast that state unemployment will remain in double digits through early 2013. “He’s given himself some wiggle room with time,” Snaith conceded. “And the economy is out of recession and things will be picking up some

Photos by SCOTT HOLSTEIN

DAY OF AN O I N TI N G Newly-sworn Gov. Rick Scott shakes hands with singer Lee Greenwood just before he takes the podium to deliver his first official address as CEO-in-Chief.

in 2011 and 2012. That bodes well for creating jobs. But this economy has some real problems.” Florida’s litany of woes is long. The state has the nation’s second highest rate of home foreclosures, which continue to outstrip home sales statewide. While unemployment is expected to fall slowly, the Legislature’s economic forecasters say it will be spring 2016 before the state’s job market looks anything like 2007, when the jobless rate was less than 4 percent.

Median home prices in Florida, which soared to $257,800 in 2005, have slouched to $136,600, a decline of a stunning 47 percent. The drop in home prices has sparked sales in recent months — even in tourist-dependent and oil-spill tarnished Northwest Florida. But even these sales carry scars from the battered economy. Typical of Florida’s imbalance, 58 percent of home sales last August were dwellings either in foreclosure or with delinquent mortgages. For

businesses and homebuyers, bank credit also remains tight — with 42 Florida lending institutions having failed in the past two years. Sen. Don Gaetz, R-Niceville, who had a career in health care running a hospice-services company, said Florida’s economy could be described by a term used in that industry. “There’s a catch-all diagnosis when everything seems to be going wrong, called ‘multisystem breakdown,’ ” Gaetz said. “That’s not an

850 Business Magazine

FEBRUARY – MARCH 2011

GOV. SCOTT

inappropriate phrase to describe what’s happening in housing, employment and all the other indicators.” Enter Rick Scott, who was handed the keys to this balky engine by Crist – who saw the state’s housing bubble burst on his watch and the unemployment rate triple. But he never really seemed to muster the energy or focus needed to slow the downward rush. Scott, however, was tapped by voters clearly seeking some kind of turnaround titan for the state. A political newcomer, Scott’s story is fairly well-known by now. A relative new arrival in Florida, living seven years in Naples, Scott has a reported net worth of $218 million — the bulk of it coming from building Columbia/HCA Corp. into one of the nation’s biggest hospital chains before being booted out by its board three years before the company paid a $1.7 billion settlement to the federal government for Medicare fraud. Scott was never charged criminally, and contends he exited the company before any alleged wrongdoing took place. His vast business empire now includes a wide-range of global investments, including Solantic Urgent Care, the health-care company he co-founded in 2001. Scott has said he’ll put his wealth into a blind trust while serving as governor. And when he tells the story of his business acumen, Scott prefers the sugar-coated tale of the life lessons and money-making joys derived from the doughnut

Florida’s Business Rankings 1st 2010 Top States for Business, CNBC 5th State Business Tax Climate Index Rankings 2011, Tax Foundation

5th Best Business Tax Climate 2010, Business Facilities magazine

6th Small Business Survival Index 2010: Ranking the Policy Environment for Entrepreneurship Across the Nation, Small Business & Entrepreneurship Council

6th Best State for Business 2010, Chief Executive magazine

7th Best Business Climate 2010, Business Facilities magazine

14th Best Business Climate 2010, Site Selection magazine

FEBRUARY – MARCH 2011

“ Once we take the right steps, I am absolutely convinced that Florida will become the most exciting place in the world to live and work.” shop he and his wife opened 30 years ago. But as governor, the new boss clearly sees getting Florida back on its economic feet as Job No. 1 — maybe his only job. His inaugural address underscored that. While many governors seek to float on soaring images, Scott’s was more like a memo from the boss. “We have to remember that modern businesses can locate anywhere,” Scott said. “If the conditions Florida offers aren’t the best, businesses go elsewhere. “What does it take to create that favorable business climate? Florida has to offer the best chance for financial success. Not a guarantee, just the best chance.” Then came what emerged as his signature line: “Three forces markedly reduce that chance for success: taxation, regulation and litigation. Together, those three form the ‘axis of unemployment.’ Left unchecked, they choke off productive activity,” he said. Scott’s approach clearly shows he’s willing

850businessmagazine.com

to kick-open the state’s door for business. Handing out tax breaks, lifting regulations, calling for more shields for companies worried about getting sued, the new governor seems to have no limits when offering what he can to seal the deal and court companies that might bring jobs. Scott’s devotion to clearing the track for corporations is worrying quite a few — particularly environmentalists, unions representing public employees and teachers, and trial lawyers. All have been described by the new governor as obstacles to his jobs push. While he’s trying to push them over, they also are certain to push back. By contrast, Florida business leaders are enamored with the new governor — even though many earlier sent their campaign cash to Scott’s Republican primary opponent, Bill McCollum. Susan Story, who until Jan. 1 was president and chief executive officer of Pensacola-based Gulf Power Corp., said she’s been impressed by Scott’s meetings with business site selectors,

The number of jobs in Florida was 7,204,700 in November 2010, up 36,200 jobs compared to November 2009, the fifth annual increase in jobs since the state started losing jobs in July 2007. The industry gaining the most jobs is private education and health services (+28,900 jobs, +2.7 percent). Other industries gaining jobs include: leisure and hospitality (+21,400 jobs, +2.4 percent); other services (+13,600 jobs, +4.4 percent); professional and business services (+10,100 jobs, +1.0 percent); and trade, transportation, and utilities (+5,900, +0.4 percent). The industries losing jobs over the year include: construction (-12,900 jobs, -3.6 percent), manufacturing (-9,200 jobs, -3.0 percent), financial activities (-8,100 jobs, -1.7 percent), total government (-7,900 jobs, -0.7 percent), and information (-5,500 jobs, -3.9 percent). Source: Florida Agency for Workforce Innovation

“ Floridians have entrusted us with their tax dollars. They worked hard to earn those dollars. They badly need their money for other things.” A D E CAD E O F U N E MPLOY MEN T I N F LO RI DA 12%

1.1 million workers 10%

2% No v. 20 00 No v. 20 01 No v. 20 02 No v. 20 03 No v. 20 04 No v. 20 05 No v. 20 06 No v. 20 07 No v. 20 08 No v. 20 09 No v. 20 10

which began even when the new governor was working out of Fort Lauderdale, preparing to take office. Story has spoken with some who met Scott. “I tell you, those site selectors thought he was awesome,” Story said. “There are some people who get it, and that’s great, and there are some people who get it and can do something about it.” But while business leaders have found a soul mate in Scott, he is facing a restless Florida. Scott won the closest governor’s race in modern Florida history over Democrat Alex Sink — the narrow margin suggesting he doesn’t have a deep well of popular support. Polls also show Scott hampered by high unfavorable ratings, a holdover from the hard-hitting campaign, his political outsider status and a public tired of the economic slump. “Scott has plans that go out seven years, but I think he’s really only going to get seven months to make things happen,” said House Democratic Leader Ron Saunders of Key West. Many of those on the Florida Panhandle, hammered by both the economy and last year’s BP oil spill, also said Scott’s talk sounded good — but it’s just talk. “I think he’s got the right idealogy — it’s just a question of whether he can get it all through the Legislature. Then, that his approach works,” said Tim Edwards, owner of Fudpucker’s restaurants in Destin and Fort Walton Beach. Edwards said his restaurants, which employed about 500 people a few years ago, have trimmed staff more than 20 percent because of the one-two punch of the lousy economy topped by the oil spill. “As a business person, the fewer hoops I’ve got to jump through means it’s easier to expand,” Edwards said. “Banks aren’t lending much right now. But when we can, we can grow. And we create a lot of jobs. Not big money jobs. But jobs.” Edwards said that Scott’s push to encourage development — he appointed Bill Buzzett, a former executive with The St. Joe Company, to lead the state’s growth management agency, the Department of Community Affairs — is needed in a state that remains mostly a one-trick pony spurred by development and tourism. Scott also has been urged by advisers to double financing for the state’s tourism marketing arm, Visit Florida, bringing its bankroll to $62.5 million. But along with an impatient public, Scott also must deal with legislative leaders, with whom his relationship is an inch deep. Senate President Mike Haridopolos, R-Merritt Island, and House Speaker Dean Cannon, R-Winter Park, both were early backers and financiers of McCollum’s campaign to defeat Scott. The two leaders now pledge allegiance to Scott. But most Capitol watchers forecast friction between the executive and legislative branches over how to pull the state out of the economic abyss. Haridopolos, whose ambitions include a likely 2012 U.S. Senate run against Democratic incumbent Bill Nelson, said he likes what he’s heard from Scott. “We all share the same philosophy he espoused on the campaign trail,” Haridopolos said. “Now we all have the opportunity to lead.”

Where the jobs are — and aren’t

In Northwest Florida, the lowest unemployment rates in November 2010 were in Liberty (8.1 percent); Leon, Okaloosa and Wakulla counties (8.7 percent each); and Walton County (8.9 percent).

850 Business Magazine

FEBRUARY – MARCH 2011

UNEMPLOYMENT IN THE 850 OVER ONE YEA R

FEBRUARY – MARCH 2011

8.7

8.9

8.0

8.3

10.2

11.3 9.8 8.1

8.0 6.7

8.9

8.1

8.7

10.9

9.9

10.9 8.8

9.6

10.5

8.1

8.7

10.0

9.4

9.2

11.0

11.5 9.7

10.4

11.6

11.1

Nov. 2010

Nov. 2009

B Ca ay lh Es ou ca n m b Fr ia an G kli ad n sd en G Ho ulf lm Ja es ck Je so ffe n rs on Le o Li n O ber ka ty Sa loo nt sa a Ro W sa ak ul la W Wal as to hi n ng to n

Despite a hemorrhaging state budget, Scott has got billions of dollars he wants to give away. A property-tax break he campaigned on — eliminating the required tax that counties must now levy to fund schools — would save homeowners and businesses $1.4 billion a year. But, presumably, that would then require more state tax dollars be shifted into the schools budget to avoid a deep cut in education spending. Scott vows to eliminate the state’s corporate income tax over seven years, slicing more than $1.8 billion from the treasury. The governor also wants to reduce unemployment taxes and cut more than $3 billion in electric utility costs for businesses, handouts that he said will spur job creation. While Scott wants to give money back to businesses and homeowners, the state’s $3.5 billion budget shortfall shows that the leaky ship of state is going to need some plugs. But financing schools, health and social programs looks likely to take a backseat to helping businesses find their footing. For now, the state’s pension and employee health care systems are vast repositories of money that could yield savings with relatively modest changes. But Florida’s finances still need work. Scott has said he’ll cut the state’s already relatively lean workforce by 5 percent, potentially spiking unemployment in Leon County, where jobless levels have been below the state average. Savings also could emerge from the governor’s plans to consolidate some state agencies — although it’s still an alphabet soup of possibilities over what could emerge from proposals to combine the Department of Health with the Agency for Health Care Administration, or other mergers. Shrinking state government may take a while. Scott advisers have given him a more easy-toread roadmap of business incentives, although each will likely nibble away at the revenue that traditionally funds state services. Scott’s been urged to slash routine taxes and fees paid to the Florida Department of State by most businesses and freeze impact fees paid by developers for as much as two years, a bid to revive a staggered construction industry. A capital investment tax credit, now set for companies that spend at least $25 million and create 100 jobs, could be lowered to include companies spending $2 million and creating 20 jobs. Payroll credits also could be expanded for companies that yield jobs topping 200 percent of state wages, advisers have told the governor.

12.8

GOV. SCOTT

The most recent data available at press time. Sources: Bureau of Labor Statistics, U.S. Department of Labor; Florida Agency for Workforce Innovation

“ We need to capitalize on our geographical location as the natural connector and distribution hub for the growing economies of Central and South America.” Spending on Florida’s 14 ports, now at $36 million-a-year, could be boosted to at least $50 million in annual funding. Major port investment has been said to potentially yield 143,000 jobs, according to a Florida Chamber of Commerce report. Transportation advocates also have urged the governor to block legislators from tapping the state’s road- and bridge-building trust fund, allowing it to replenish after a series of raids by legislators who diverted the cash to other state programs.

850businessmagazine.com

Florida business groups have been clamoring for Scott and lawmakers to ease unemployment compensation taxes paid by businesses. The state’s high jobless numbers have forced businesses to pay steeper rates — with this year’s projected $72.10-per-worker levy triple that paid last year. In addition to that assessment, another $9.51-per-worker is set to take effect in June, to cover interest on the almost $2 billion Florida has borrowed from the federal government to keep the state’s unemployment fund afloat. “There’s no silver bullet, but really 10 or 12 things that businesses need to get Florida going again,” said Mark Wilson, president of the Florida Chamber of Commerce. “Lower taxes, insurance industry reforms, reducing the risk of lawsuits… but cutting unemployment compensation rates is one thing that would help businesses preserve jobs and get more people back to work.” Barney Bishop, president of Associated Industries of Florida, said Scott also has to work toward diversifying the state’s economy. Former Gov. Jeb Bush, for example, took steps to foster bio-medical research in Florida, and several biotech clusters have been established in the state. Bishop said maybe Scott can do something to bring more manufacturing into Florida, following the lead of such states as Alabama, Mississippi and South Carolina, which have

photos courtesy the florida senate and the florida house of representatives

successfully drawn automotive, aircraft and steel manufacturers. “We have 14 seaports, but we’ve got to have some exports to go out of them,” Bishop said. “Exporting products brings distribution centers and more jobs. Especially in the Panhandle, we’ve got land. We just need incentives.” With no ties to government-as-usual, Scott clearly prides himself on being willing to look differently at traditional programs. But his approaches contain risks both practical and political. Scott advisers mangled research by former President Obama administration member Alan Krueger, a Princeton economist, in concluding that those receiving unemployment benefits spend an average of only 20 minutes a day looking for work — and that Scott should wean jobless workers from their already modest government checks. Scott advisers recommended that after 12 weeks of unemployment compensation, unemployed Floridians should be required to perform “community work.” With jobs still scarce, the team also suggested that a state-subsidized employment program may be needed to stimulate job creation. In a state with more than 1 million people out of work, many Floridians either have lost a job or know someone who has in the past three years. Scott hasn’t made clear yet whether he will support making the unemployed sing for their supper, but the governor does seem to be trying to take some of the sting out of the recommendation. In his inaugural, Scott seemed to sense that he could be perceived as a political Mr. Burns, the evil boss on television’s “The Simpsons.” Instead, Scott recounted his own hardscrabble upbringing, which briefly included his family’s stay in public housing. “For me, job creation is a mission,” Scott said. “My personal memories fortify my commitment to this mission.” Even some of his sharper critics concede that Scott has his work cut out for him. Bud Chiles, son of the late Democratic Gov. Lawton Chiles and, himself, briefly an independent candidate for governor last year, said Scott sought his advice on job-creating efforts. Chiles said he was pleased to offer the counsel. With development and other business interests, Chiles said he hopes the Republican governor can help jump-start the state’s economy. “It’s clear he’s got a lot on his shoulders,” Chiles said. “He knows what’s in front of him.” n

Northwest Florida Legislative Delegation SENATE Sen. Greg Evers, District 2 R-Crestview Committees: Criminal Justice, Chair; Transportation, Vice Chair; Budget Subcommittee on Criminal and Civil Justice Appropriations; Budget Subcommittee on Transportation, Tourism and Economic Development Appropriations; Communications, Energy and Public Utilities; Reapportionment; Rules Subcommittee on Ethics and Elections. (850) 689-0556 or (850) 487-5000

Sen. Bill Montford, District 6 D-Tallahassee Committees: Budget Subcommittee on Education Pre-K-12 Appropriations, Vice Chair; Agriculture; Budget; Budget Subcommittee on Higher Education Appropriations; Commerce and Tourism; Education Pre-K-12; Governmental Oversight and Accountability; Reapportionment. (850) 487-5004

Sen. Don Gaetz, District 4 R-Destin Committees: Reapportionment, Chair; Budget Subcommittee on Transportation, Tourism and Economic Development Appropriations, Chair; Budget; Budget Subcommittee on Health and Human Services Appropriations; Commerce and Tourism; Health Regulation; Rules; Rules Subcommittee on Ethics and Elections; Joint Legislative Budget Commission. (850) 897-5747, 1-866-450-4366 or (850) 487-5009

Sen. Charles S. “Charlie” Dean, Sr., District 3 R-Inverness Committees: Environmental Preservation and Conservation, Chair; Criminal Justice, Vice Chair; Budget Subcommittee on Transportation, Tourism and Economic Development Appropriations; Governmental Oversight and Accountability; Reapportionment; Regulated Industries. (352) 860-5175, 1-866-538-2831 or (850) 487-5017

HOUSE Rep. Douglas Vaughn “Doug” Broxson, District 1 R-Tiger Point/ Gulf Breeze Committees: Finance and Tax Committee; K-20 Competitiveness Subcommittee; Rulemaking & Regulation Subcommittee; Transportation & Economic Development Appropriations Subcommittee; Transportation & Highway Safety Subcommittee. (850) 916-5436 or (850) 488-8188 Rep. Clay Ingram, District 2 R-Pensacola Committees: Agriculture & Natural Resources Appropriations Subcommittee; Education Committee; Energy & Utilities Subcommittee; Insurance & Banking Subcommittee; K-20 Innovation Subcommittee. (850) 488-8278 Rep. Clay Ford, District 3 R-Gulf Breeze Committees: Energy & Utilities Subcommittee; Civil Justice Subcommittee; Higher Education Appropriations Subcommittee; Rules & Calendar Committee; State Affairs Committee. (850) 595-5550 or (850) 488-0895

Rep. Jimmy Patronis, District 6 R-Panama City Committees: Government Operations Subcommittee; State Affairs Committee; Business & Consumer Affairs Subcommittee; Government Operations Appropriations Subcommittee; Rulemaking & Regulation Subcommittee; Rules & Calendar Committee. (850) 914-6300 or (850) 488-9696 Rep. Marti Coley, District 7 R-Marianna Committees: PreK-12 Appropriations Subcommittee; Appropriations Committee; Economic Development & Tourism Subcommittee; Education Committee; K-20 Competitiveness Subcommittee. (850) 718-0047 or (850) 488-2873 Rep. Alan B. Williams, District 8 D-Tallahassee Committees: Energy & Utilities Subcommittee, Democratic Ranking Member; Government Operations Subcommittee; Higher Education Appropriations Subcommittee; State Affairs Committee. (850) 488-1798

Rep. Matt Gaetz, District 4 R-Fort Walton Beach Committees: Civil Justice Subcommittee; Government Operations Appropriations Subcommittee; Health & Human Services Quality Subcommittee; Judiciary Committee; Rulemaking & Regulation Subcommittee. (850) 833-9328 or (850) 488-1170

Rep. Michelle Rehwinkel Vasilinda, District 9 D-Tallahassee Committees: Agriculture & Natural Resources Subcommittee, Democratic Ranking Member; Agriculture & Natural Resources Appropriations Subcommittee; Energy & Utilities Subcommittee; Finance and Tax Committee. (850) 488-0965

Rep. Brad Drake, District 5 REucheeanna Committees: Transportation & Highway Safety Subcommittee; Select Committee on Water Policy; Economic Affairs Committee; Health & Human Services Access Subcommittee; Transportation & Economic Development Appropriations Subcommittee. (850) 892-8431 or (850) 488-4726

Rep. Leonard L. Bembry, District 10 D-Greenville Committees: Agriculture & Natural Resources Appropriations Subcommittee, Democratic Ranking Member; Appropriations Committee; K-20 Innovation Subcommittee; Select Committee on Water Policy; State Affairs Committee. (850) 973-5630 or (850) 488-7870

850 Business Magazine

FEBRUARY – MARCH 2011

WHILE THE TITLE OF THEIR NEW publication was “Unconquered,” the Seminole Boosters were stymied by the challenges of producing a quarterly, glossy, 84-plus-page magazine with just one in-house graphic designer. “We weren’t making deadlines,” said Jerry Kutz, the Boosters’ vice president of marketing and communications. “We’d get bottlenecked.” Kutz said he approached Rowland Publishing in early 2009 because of the company’s reputation for creating quality publications on time. He also appreciated the publishing experience of owner Brian Rowland. “He’s a good consultant who can translate what I want into what I like,” Kutz said. Since the collaboration began, Rowland Publishing has provided project management, design and editorial review services for seven issues of “Unconquered.” In addition to graphic designers reﬁning the magazine’s look, seasoned editors from Rowland were able to make edits to the stories provided by the Boosters’ staff. “They like having that extra set of experienced eyes to look at them,” said Rowland Creative Director Lawrence Davidson. Rowland’s services allow the Boosters to include timely information in their magazine. Most recently, stories about new recruits were included in an issue that went to press just ﬁve days after National Signing Day. “When needed, it’s all hands on deck to get the project done,” Kutz said. “Rowland people are easy to work with and they keep you on pace.” “Unconquered” is sent to about 15,000 Seminole Boosters and also is used as a marketing and promotional tool. “The magazine is like having four brochures a year,” Kutz said. “The layout and design is tied to our marketing plan.” ■ 36

FEBRUARY – MARCH 2011

850businessmagazine.com

“Rowland people are easy to work with and they keep you on pace.” Jerry Kutz, Seminole Boosters Vice President of marketing and communications

At Rowland Publishing, we think one of our best attributes is the innate art to listen, understand and then produce what the client wants. Our creative solutions will showcase your business without straining your budget. Call (850) 878-0554 878 0554 or visit rowlandpublishing.com today. 850 Business Magazine

CREATIVE. PRINT. SOLUTIONS.™

FEBRUARY – MARCH 2011

TAX AUDITS

FEBRUARY â&#x20AC;&#x201C; MARCH 2011

850businessmagazine.com

Photoillustration by MARC L. THOMAS

A tax audit is a certain fate for many smallbusiness owners, but with some common sense (and great legal advice), you can breathe easy when the auditor knocks

One morning, a small-business owner opens his P.O. box and finds an IRS notice of audit. Said smallbusiness owner feels heart drop into his shoes and begins to sweat. Then, he speed dials his accountant. At least, he should. That’s exactly what one Tallahassee entrepreneur did. “I play by the rules; I don’t want any trouble from the IRS. I never said, ‘I’m gonna chisel the IRS on this one,’” he says. “So I didn’t expect any trouble, but I was unnerved when I received that letter.” Without a doubt, a notice of federal tax audit is high on the Things That Terrify Business Owners list. And with good reason — small-business owners (SBOs) are the largest source of uncollected taxes for the U.S. and state governments. Unintentional tax stinginess on the part of SBOs includes everything from sales tax delinquency to misclassified employees. These infringements — averaging more than $20,000 per field audit for back taxes alone — can add up to a real emergency for the company coffers. While small businesses have always been a major target for IRS auditors, the efforts to uncover tax problems in this sector are actually on the rise. Knowing this, experts agree no SBO should go it alone in the tax world. Brian Compton, a certified tax resolution specialist based in California, explains, “For 2010, we can expect the number of IRS audits to continue to rise for small-business owners. With the recent economic crisis, tax authorities at both the federal and state levels are pouring more money and personnel into cracking down on tax cheats — large and small — to cut into their growing budget deficits.” As soon as you receive a letter of notification that you were selected for an IRS audit, begin getting ready. And call your CPA and tax attorney if you suspect you’ll need help. “You’d be surprised how many people ignore that letter,”

says Jim Buttonow, a former IRS field auditor who now runs easyIRS.com. “Because most audits are correspondence audits and many people ignore the letter, and I’m called in after additional assessments are made by the IRS, and they now owe back taxes.” The IRS has many tools for its examinations, including onsite “field audits” and the more common correspondence examination, also called a mail audit. While both can be serious (and a mail audit may trigger an onsite visit), it’s the field audit that is the most intense. Tallahassee-based tax attorney Robert Pierce, a shareholder with Ausley & McMullen, P.A., points out that while SBOs should be on point when the auditor arrives, they should not be scared. “They are not going to throw you in jail unless you’re doing something bad or cheating. If you just make a mistake, no. This stuff is very complicated,” he explains. “The penalties are usually monetary — penalties, interest, back taxes.” All experts agree that getting the right help during an audit is the key to your survival strategy — and your sanity. “The most important advice to surviving an audit is to not take any chances when dealing with the IRS,” Compton advises.

The Chosen Ones The IRS understands that tax law is very intricate and the shifting sands of tax regulation can easily mire a business owner. But they do expect folks to figure these things out and render unto Caesar what is his. Of course, mistakes will happen. And the IRS has a very sophisticated strategy for sampling each year’s returns with an audit. The IRS may examine your return for a variety of reasons. In fact, a computer program called the Discriminate Inventory Function System (DIF) assigns a numeric score to each individual and business return and selects for examination the returns with a higher likelihood (score) of being erroneous.

850 Business Magazine

FEBRUARY – MARCH 2011

TAX AUDITS

Pierce outlines the most common red flags to trigger federal audits as: large tax return changes from year to year, having a high proportion of expenses to revenue and requests for refunds. Of those with these red flags, the IRS will choose the returns with the greatest potential for additional tax to be collected. In addition to these tip-offs, Buttonow points out the IRS may also receive “credible information” from an informant (called an “Informant Report”) or they may have a particular industry or transaction type involved in a special audit project. For instance, a 2001 tax study group identified the self-employed as one of the largest sectors of tax non-compliance. This triggered a focus of examinations on SBOs. In 2011, the focus on under-reporting income and avoiding taxes altogether will reach new heights with a presidential and IRS-sanctioned uptick in audits. So if you end up with a “tag-you’re-it” letter, know it may have absolutely nothing to do with you personally and is likely the (bad) luck of the draw. The truth is, tax law — on both federal and state levels — is more like rocket science than

how evolving tax law affects the regulations and filings you’re expected to complete.

The Tax Man Cometh When Uncle Sam does arrive, be prepared. The average amount a small business or sole proprietorship owes at the end of a field audit is $26,000, not including interest and penalties, — almost 20 percent higher than all examined individual returns, according to Buttonow. While the government may want its due, it doesn’t want to take very long to get it. You can expect the auditor to be at your office for about two to three days (longer for larger businesses), and then to return periodically to review documents and interview employees with operations and financial transaction knowledge. In Buttonow’s experience, from start to finish, the IRS wants an audit cleaned up within six months. In the case of our entrepreneur, the auditors kept coming back. “I was surprised at how long they stayed with me. It was about five visits for one to three days each,” he remembers. During this time, they will often review internal IRS records for consistencies and unreported items, and they will also interview third parties

Common Tax Mistakes The reality is, taxes are complex. Steer clear of these common mistakes: >> Writing off personal expenses as business expenses and unreported income.

(Both commonly invoke a 20 percent penalty.) >> Misclassifying employees (i.e., independent contractor vs. employee) can have a

devastating penalty. >> Not understanding new health care law and how it relates to federal taxes. —Jim Buttonow, former IRS field auditor

accounting. A doctorate in tax law might just be what you need to understand why one cookie is tax exempt but six are not; why the guy who owns the air pump at the gas station has to pay tax on the “rent” he pays for the 2 square feet of concrete he’s using; why water is untaxed but ice is not. The examples are endless, and seemingly there is no rhyme to the reason. That’s why it’s worth it to get expert advice to determine what’s changed in your industry and

FEBRUARY – MARCH 2011

about your business. “They check property records and other public information on the business and its owners to determine if there is unreported income and transactions on the return,” Buttonow said. Exactly how far back the IRS can dig into your records is tricky. A taxpayer can’t claim a refund if three years have passed on a return. In the same vein, the IRS has three years to audit your return. Once you

850businessmagazine.com

unintentional tax stinginess on the part of small-business owners includes everything from sales tax delinquency to misclassified employees. are in an audit, there are statutes of limitations that govern how far they can reach — unless certain extraordinary things have occurred. “It’s three years unless it’s a large amount of money you left out compared to what you paid,” Pierce says. “If they find an extenuating circumstance, the IRS can go back five years. If they find fraud, there’s no limit.”

In Case of Emergency, Seek Help All experts agree that the No. 1 priority when the audit begins is to have representation on your side — from both your CPA and a qualified tax attorney. “If you owe payroll taxes and intend to go it alone without expert representation against the IRS, you are way out of your league,” warns Compton. A professional not only can explain what’s going on, but they speak the tax language and have a big-picture view. Pierce encourages his clients to maintain a cool head. “It’s an information process when the auditor comes in,” he explains. “The IRS does an assessment and says, ‘You owe us this.’ The burden is on the taxpayer to show them they’re wrong.” In our entrepreneur’s case, he had followed his CPA’s advice to the letter when filing his tax returns. Turns out, it didn’t exempt him from mistakes. “My business uses lots of barter transactions — vendors and I will trade service for service or something similar,” he says. “So, I was under the impression that things like gift certificates were to be used just like cash.” Therefore, he didn’t keep tight records on the barter services he used. This oversight cost him two years of travel and entertainment expenses, which were disallowed — a big contribution to his tax bill. Now, when he takes a client out to

dinner using a bartered gift card, for instance, he’s dogged about putting the client’s name and the topic of conversation on the back of every receipt. In addition, he used to pride himself on being a generous gift-giver to employees. Thanks to the IRS, now not so much. “I did things like ‘shopping days’ for all my employees — where I would give them $150 each and send them to the mall to buy work clothes,” he remembers. The advice from his CPA was that this was fine to do. Turns out, those “gifts” should have been taxed as wages — which would have been a hit to both employee and employer. Finally, like many entrepreneurs, he had a perfect record of paying bills on time and being as good a customer as he was a boss and vendor. So, every December 31 he assessed the spoils of a good year and bonused himself a nice year-end gift. Unfortunately for him, the IRS thought this looked a lot like tax evasion (the personal tax rate was much less than the corporate one, and his business was not taxing this bonus). “Of course, I wasn’t trying to evade anything. I paid taxes on those wages myself,” he says. “But the IRS said my business should have paid the taxes instead.” Therefore, he had to refund two years of big bonuses back to his company and the company had to pay the corporate tax on the amount. After a blow like that, he was not able to recoup with the bonuses or the personal taxes. At the end of the day, the corporate taxes, interest and penalties added up to $184,000 —which the IRS auditor wanted paid that day. Otherwise, more interest would have piled on. Adding insult to injury, he paid this chunk of change just before the economic meltdown hit the South. “My biggest lessons were these: document absolutely everything and make sure your CPA knows federal taxes inside and out,” he says. Bad as a federal audit can be, Pierce knows they can be far-reaching and even branch out into brother or sister companies. One of his specialties is state tax law, which oftentimes can be linked to the IRS case. “I had a taxpayer in a sales tax case who had three different businesses. And for whatever reason, they filed their federal income tax returns properly but they just didn’t pay all their income tax. They had an audit and realized they had a problem — effectively they had been collecting sales tax but not giving it to the state. That’s a real no-no. That’s a crime and they throw people in jail for that,” he warns. So Pierce hired a tax consultant to go through

General Tax Strategies to Minimize the Risk of Audit: Find a tax-friendly business structure: The first step in reducing tax liability is to make sure your business is structured as a tax-friendly entity. Some forms of business entities require that the business pay taxes on the money it earns throughout the year AND that the business owner pay taxes on the income he or she receives. This results in a double taxation scheme that costs the business twice. Make sure you choose a form of business that will avoid this and help you meet your tax saving goals. Plan ahead: Hiring an accountant to manage your taxes is a great idea and helps you itemize your expenses into the most tax-efficient filing. Accountants are trained in tax preparation and are knowledgeable about little deductions that may make a big difference when it comes time to file your return. In addition, a bookkeeper will help you budget appropriately, understand financial lingo and generally relieve some of the anxiety that money usually brings. Having someone with financial experience on your team allows you to focus on running other areas of the business, like earning a profit. Become an excellent bookkeeper and learn your deductions: Whether or not you have a bookkeeper or accountant, maintaining extremely precise records and learning the potential business deductions is key to paying lower taxes and avoiding a tax audit. The combination of knowing what deductions are allowable and meticulous record keeping will make tax returns easier to manage. Be on time and accurate: Make sure your taxes are done properly and paid on time. If, for some reason, you can’t have your taxes done before the deadline, file an extension as soon as possible before the deadline. Making estimated tax payments would also reduce the burden when it comes time to pay the whole bill. Incorporation and LLC formation can minimize the risk of audit: Sole proprietorships are subject to the highest risk of audit out of all the business structures. By setting up an S Corporation, you become nine times less likely to be selected for a random IRS audit (your risk decreases from 2.7 percent to 0.3 percent, making it very possible to go your entire life without ever being audited). — Deborah Sweeney, CEO, MyCorporation

850 Business Magazine

FEBRUARY – MARCH 2011

TAX AUDITS

WHO DOESN’T KNOW? These Florida industries should realize they are in the (sales) taxable category:

the records and find where the bones were buried. They resolved the case by agreeing to payment of a certain amount and penalties, but he got them to hold off on criminal charges. He advises clients to keep records as separate as possible as a matter of course, so that when the auditor comes onsite there is less chance of spillover. “If they see another company’s books and records while auditing for one company, they can pull everything — look at all books and records,” he warns.

>> A dvertising industry (certain circumstances)

The Trickle-Down Effect

— Tisha Crews Keller

The bottom line is most small businesses are found liable for miscalculating income tax or not paying correct sales tax. A good rule of thumb is if you have corporate income tax on the federal side, you also have it on the state side. And those Florida Department of Revenue (FDOR) audits can mean big numbers in terms of penalties and delinquent taxes. In fact, FDOR reports that their 503 auditors (along with 30 computer audit analysts) conducted 3,950 sales/ use tax audits in 2009. They also have a team that audits only state tax refunds. “On the federal side, most businesses are in the range of $30,000 to $50,000 in terms of back taxes and penalties,” Pierce reports. “I can tell you that at the state level the numbers can be very sizeable, because there are different kinds of taxes. The big numbers are in sales tax and corporate income tax. A typical mid-size business should collect 6 to 7 percent of total sales. So, these numbers can get huge — typically anywhere from $25,000 to $25 million.” For example, if a company makes $2 million per year and has $1.5 million in expenses, its income is only $500,000. Federal tax would be levied on the income, but sales tax is on the entire $2 million — gross sales. If a business doesn’t collect the tax, where are they going to get it to pay the state? According to the professionals, FDOR has much the same aim as the IRS: to bring to the state uncollected taxes and to increase filings for the future. In this way, both entities see audits as an educational opportunity. And many business owners do need a refresher in income and sales tax law. “In our experience, audits revealing mishandling of taxes are mostly unintentional,” reports Michael Scott, a partner in the Panama City office of Carr, Riggs and Ingram, a CPA firm. “Whether clients didn’t understand the sales tax rules, had a different interpretation or were completely

FEBRUARY – MARCH 2011

>> R epair/maintenance industry (generally) >> C ommercial rental industry >> J anitorial services >> C onvenience stores >> I ndependent bars/restaurants >> O ther cash businesses >> B usinesses’ or individual’s items for their own use from outside the state >> P urchases of large dollar items such as planes, boats, RVs

unaware that their specific transaction was subject to sales tax.” Many clients think they have a good understanding of the sales tax rules and regulations, only to find at audit time that they misunderstood a portion or simply didn’t know about a rule that applied to them, he adds. State audits are triggered by much of the same information and behaviors that trigger federal audits. In fact, they sometimes share information (although FDOR reports this to be true only 5 percent of the time) — a major reason to report as consistently as possible across filings. Another trigger for state audits is tax-exempt sales. And, by FDOR’s own admission, filing patterns, third party information and misuse of a resale certificate are other red flags.

“ In the deparment of revenue’s view, if a company hasn’t paid sales tax on fixed asset purchases, it’s likely they haven’t paid on other things as well.” — michael scott, carr, riggs and ingram

850businessmagazine.com

“An example of the tax-exempt sales trigger would be a large amount of exempt sales reported in a particular month, where typically little to no exempt sales are reported. This can easily be true if, for example, a business owner made large sales to a tax-exempt customer,” explains Michael Kalifeh, a tax manager with Thomas Howell Ferguson P.A. in Tallahassee. “For this reason (among others), it’s important for taxpayers to maintain complete transaction documentation.” One of the major fault lines, according to the experts, is a misinterpretation of Florida’s “sales and use tax.” State law provides that even if you bought that equipment outside Florida — in Texas, say — and you didn’t pay sales tax to the state of Texas, you still must pay the applicable Florida “sales and use tax” on the items. These “fixed assets” are typically business equipment and similar purchases. Truth be told, all Florida consumers should be remitting sales tax on outof-state purchases if the vendor doesn’t collect them during the transaction. (A major reason proponents of a Florida Internet tax law want to implement the measure.) But Florida businesses, beware: FDOR expects you to pay your taxes — all of them. “In FDOR’s view, if a company hasn’t paid sales tax on fixed asset purchases, it’s likely that they haven’t paid on other things as well,” says Scott. Therefore, FDOR sometimes uses fixed asset purchases as a “sampling” method to determine compliance. And penalties in a sales tax audit can be up to 50 percent of the tax liability. Scott points out that, luckily, the state is usually easier on newbies to the tax audit. “If you are a first-time offender, FDOR will

Tax Explainer As a Florida business, you have to pay taxes to the state as well as the federal government. Here’s a little primer (or refresher) on what is due — and when. FEDERAL TAXES

STATE TAXES

Federal Corporate Income Tax — Form 1120 Most large corporations are classified as “C Corporations” and must pay federal taxes ranging from 15 percent to 35 percent on their net income. (S Corporations, with 100 or fewer shareholders, do not pay this tax but shareholders of the corporation report income and losses on their personal income tax returns.)

Florida Corporate Income Tax — Form F-1120 Corporations that do business and earn income in Florida, including out-of-state corporations, must file a return — even if no tax is due. (Sole proprietorships are exempted.) The current tax rate is 5.5 percent. The tax liability is computed using federal taxable income.

Due Date: March 15, if the corporation’s fiscal year is the prior calendar year. (If the corporation does not operate on a calendar year, taxes are due on the 15th day of the third month after the end of the corporation’s fiscal year.) Federal Employment Tax — Form 941 Businesses are required to withhold federal income tax, Social Security and Medicare taxes from their employees’ wages. Due Date: Most taxes are paid monthly or bi-weekly and then reported quarterly to the IRS. Small businesses, with less than $1,000 tax liability, may file Form 944 annually. Federal Unemployment Tax — Form 940 You are subject to FUTA tax in 2011 on the wages you pay employees who are not farmworkers or household workers if you paid wages of $1,500 or more in any calendar quarter in 2010 or 2011, or you had one or more employees for at least some part of a day in any 20 or more different weeks in 2010 or 20 or more different weeks in 2011. Before July 1, 2011, the FUTA tax rate is 6.2 percent. After June 30, 2011, the FUTA tax rate is scheduled to decrease to 6.0 percent. The tax applies to the first $7,000 paid to each employee as wages during the year. The tax is figured quarterly. The tax liability is determined by multiplying the amount of taxable wages paid during the quarter by 0.8 percent (0.6 percent after June 30, 2011). Stop depositing FUTA tax on an employee's wages when he or she reaches $7,000 in taxable wages for the calendar year. Due Date: January 31, April 30, July 31, October 31

850businessmagazine.com

Due Date: April 1 (If the corporation owes more than $2,500 annually, it must file four estimated payments during the year.) Florida Sales and Use Tax — DR-15 Florida levies a 6 percent sales tax on a variety of goods and services. Businesses must register with the state to collect and pay sales and use tax (Form DR-1). Most Florida counties also have a discretionary sales surtax that applies to most transactions subject to the state tax. Both taxes must be remitted to the Florida Department of Revenue, which then distributes the discretionary tax back to the county where it was levied. Due Date: Monthly — on the first day of each month following the collection of the tax. (Purchase of goods from the Internet, mail order catalogues, shopping networks and toll-free shopping services are subject to the Florida “Use Tax,” which is the same as the sales tax rate of 6 percent. If the seller does not pay the tax, the buyer must pay the tax to the state on the first day of the month after the quarter in which the purchase was made. Form DR-15MO.) Florida Unemployment Tax —UTC-6 The 2011 Unemployment Compensation Tax Rate Notices were mailed in mid-December and show the tax rate effective as of Jan. 1. Employer taxes go into an unemployment compensation fund to benefit workers who lose jobs through no fault of their own and are able and available to work. A business is liable to pay this tax if it has a quarterly payroll of $1,500 or more in a calendar year, has one or more employees for a day (or portion of a day) during any 20 weeks in a calendar year and is liable for the federal unemployment tax. The tax rate for new employers is 2.7 percent and remains that for 10 quarters, after which the tax is computed by the state. The maximum tax rate is 5.4 percent. The first $7,000 in wages paid to each employee during a calendar year is taxable. Employers with a stable employment history receive a lowered tax rate. Due Date: April 30, July 31, October 31 and January 31.

850 Business Magazine

FEBRUARY – MARCH 2011

EMPLOYEE CLASSIFICATIONS

UNDERSTANDING THE AFFORDABLE CARE ACT

Generally, you must withhold income taxes, withhold and pay Social Security and Medicare taxes, and pay unemployment tax on wages paid to an employee. You generally do NOT have to pay any taxes on payments to independent contractors. Deciding whether your workers are employees or independent contractors can be a decision with huge tax implications. Most business owners think they have this down pat, but likely they do not. IT ALWAYS PAYS TO GET EXPERT ADVICE. The IRS outlines Common Law Rules — facts that determine the degree of control and independence of employees — to help you figure out whether your staff are actually employees. Businesses must weigh all of these factors when deciding the relationship, which changes on a case-by-case basis. There is no magic number of factors that makes a worker an employee or independent contractor, and factors relevant in one situation may not matter in another. Here’s what to consider: 1. Behavioral: does the company control or have the right to control what the worker does and how the worker does his or her job? 2. Financial: are the business aspects of the worker’s job controlled by the payer (things like how the worker is paid, whether expenses are reimbursed, who provides supplies, etc.) 3. Type of relationship: are there written contracts or employee type benefits?

The Affordable Care Act (aka health care reform) was enacted in March, 2010, and contains tax provisions that affect small businesses in particular.

Additionally, the Florida Department of Revenue offers an Independent Contractor Analysis form that can help determine your situation. Considerations include:

>> Did the worker perform services at the employing unit’s place of business?

>> Could the worker perform services for a competitor? >> Did the worker use the employing unit’s equipment? >> Did the worker receive any training from the employing unit? >> Could the worker sub-contract the job or hire and pay others to >> do the work? >> Did the worker hire and/or supervise other workers? >> Were there set hours of work? >> Did the employing unit give instructions about when to work, how to do the work, sequence in which work was done?

>> Did the employing unit provide a uniform, badge or business card?

>> Could the worker provide the service outside business hours? >> Did the worker bill the unit for services? >> Could the worker be discharged at any time without breach of contract penalty?

>> Was the worker responsible for redoing defective work without additional compensation?

FEBRUARY – MARCH 2011

850businessmagazine.com

Small Business Health Care Tax Credit: This credit helps small businesses and small tax-exempt organizations afford the cost of covering their employees and is specifically targeted for those who employ low- and moderate-income workers. The credit is designed to encourage small employers to offer health insurance coverage for the first time or maintain the coverage they already have. In general, it is available for small employers who pay at least half of the cost of single coverage for their employees. Small businesses can claim the credit (maximum credit is 35 percent of the employer’s premium expenses that count toward the credit; 25 percent for tax-exempt employers who qualify) for 2010 through 2012 and for any two years after that. Beginning 2014, the maximum credit will increase to 50 percent of premiums paid by eligible small employers and 25 percent paid by eligible tax-exempt organizations. The maximum credit goes to smaller employers with 10 or fewer full-time equivalents and paying an average annual wage of $25,000 or less. Because the eligibility rules are based in part on the number of FTEs, not the number of employees, companies that use part-time workers may qualify even if they employ more than 25 workers. In addition, companies may use the credit to offset the alternative minimum tax (AMT) liability for the year. And, tax-exempt employers may also be due a refund due to the tax credit, as long as the refund does not exceed the employer’s income tax withholding and Medicare tax liability. See irs.gov for detailed, current information on the Act’s implementation and how it affects your business. Employer-Provided Health Coverage Reporting: This reporting is for informational purposes only, to show employees the value of their health care benefits so they can be more informed consumers. Starting in tax year 2011, the Affordable Care Act requires employers to report the value of the health insurance coverage they provide on each employee’s annual W-2. The revised W-2 is available at irs.gov and is the W-2 that most employees will receive in early 2012. Mandatory reporting was deferred until the 2012 tax year, but employers may begin using the new W-2 for 2011 tax reporting. Excise Tax on Indoor Tanning Services: A 10 percent excise tax on indoor UV tanning services went into effect on July 1, 2010. The tax doesn’t apply to phototherapy serivces performed by a licensed medical professional on his or her premises. There’s also an exception for certain physical fitness facilities that offer tanning to clients without a separate fee.

“ I can tell you that at the state level the numbers can be very sizeable, because there are different kinds of taxes. The big numbers are in sales tax and corporate income tax.” — bob pierce, ausley & Mcmullen, p.a.

waive penalty upon formal request. What we see is that the state is more concerned with proper compliance moving forward as opposed to punishing a taxpayer for unintentional wrongdoing,” he says.

Assessing the Damage What the auditor finds in your records can determine your financial exposure. When it’s all said and done, taxes and penalties upwards of $75,000 can be typical, but it all depends on the situation. No matter what the cost, though, these are always big numbers to the business owner, because they cannot be recouped. This is why it always pays to find out the facts and then devise a strategy. Sometimes, your tax attorney will want to hire a tax consultant to comb through records and give another opinion on the amount you owe. Other times, that strategy is simply to gulp it down. Reviewing the audit trail worked well in at least one case for Thomas Howell Ferguson. “Our office recently assisted a client who was audited for sales tax and the initial outcome was a tax deficiency of about $60,000,” Kalifeh explains. “Working with the client and FDOR, we provided additional documentation, additional facts and relevant tax law to reduce that assessment from $60,000 to $9,000.” Pierce deals with very complex returns and high-earning taxpayers who sometimes want to fight tooth-and-nail. He warns this is not always the best tact: “Going to court can be time consuming and expensive.” One of his clients had a $40,000 issue for

refunds — which seemed worth litigating. But Pierce had another opinion. “On a go-forward basis, it was hundreds of thousands of dollars and we would have had to go to court because of it. It was too big an issue. But it wasn’t absolutely clear that the IRS was wrong — it was a scenario that was just not all that clear,” he said. Pierce maintains the IRS and FDOR are always looking for a compromise. “Most taxing authorities will grant a reduction in penalties if you agree (rather than appeal). That’s what they’re going for,” he explains.

Compromise Can Be Key Once your IRS audit is complete, you have three options. You can go to tax court. You can pay your taxes and move on. Or you can have an informal appeals conference. Usually, the number of cases appealed is much larger than those that are litigated. Generally, the appeals process is where tax attorneys such as Pierce get into the game. He recommends an appeal if it is clear the IRS was wrong or if there is a tax strategy in the bigger picture. Sometimes, getting the IRS to agree to a decision can have implications for the taxpayer down the road. Much the same is true for state income tax audits, except FDOR offers free Technical Legal Advice, whose representatives are skilled at interpreting state tax law and applying them with no bias toward or against the taxpayer. Pierce, when he was general counsel at FDOR, set up the state level appeals process to closely mirror the federal system. “It’s changed a bit in terms of who does what and who their bosses are, but the process is substantially the same as the IRS’ appeals process,” he explains. No matter the reason, the burden of proof during appeals is always on the taxpayer. Attorneys may take the audit report and offer up a compromise such as paying half the taxes and all the penalties or vice versa. Pierce has seen audits that go on for 15 years, more or less continually. And if your tax attorney and CPA recommend going for an appeal, litigation can go on for years, as well. At what point is it smart to say, “that’s the IRS,” and just let it go? That’s the purview of your tax attorney and CPA. “Be sure what you agreed to is correct — once you agree to it, it’s done. On a go-forward basis, make sure your deductions are correct,” Pierce offers. To anyone who deals with the IRS on a regular basis he advises: Have substantial

documentation for all your deductions, pay your taxes and plan a strategy. But the No. 1 piece of advice may be to get professional help early on. According to one expert, if you’re in business, you should expect that one day you will be the subject of an IRS audit. That doesn’t mean you’re guilty of anything. It just means your number is up. Protect yourself nonetheless. The IRS should not be taken lightly — they can put you out of business. Theoretically, the tax could be too big for you to pay back and you could be done. “The experts will handle all communications and correspondence, allowing you to continue on with your life,” Compton said. “It’s an investment that can pay off big for small-business owners, in terms of saving money and helping protect the future of their businesses.” n

Audit Plan of Action Statistics show the IRS finds an adjustment to a tax return almost 90 percent of the time. The IRS is very good at determining the returns with the most likelihood of penalty. Protect yourself: >> Do not undergo a Field Audit

without professional help. Get a tax attorney and CPA. >> Be prepared. The best time is when

you’re filing your tax return. >> Do not ignore the letter. Ignoring

means you will owe. >> H ave everything ready. The most

efficient audit is the best audit for the taxpayer. >> Ask for everything in writing. >> Listen more, talk less. Provide what

is asked for — no more, no less. >> Be cordial. >> The IRS agent is not the final

answer. You have appeal rights; ask for them. —Jim Buttonow, easyIRS.com

850 Business Magazine

FEBRUARY – MARCH 2011

FEBRUARY â&#x20AC;&#x201C; MARCH 2011

850businessmagazine.com

Gadsden, Jefferson + Leon Counties

Capital Corridor SOU N D BY T E S

H I D D E N I N DAY L IG HT Datamaxx’s beautiful building in the midst of Tallahassee tells nothing of its mission — and the company’s clients prefer it that way.

Security Speak V gunter photo courtesy rogers, gunter, vaughn

Datamaxx develops communications tools for law enforcement by lilly rockwell ery few people in Tallahassee are aware Datamaxx Group exists, much less understand what this privately held company does. And that is intentional. “We keep a low profile,” said President and CEO Kay Stephenson. “No one knows the depth of what we do.” The 20-year-old company is based in a master planned community in Florida’s capital city. Their three-story headquarters has opaque windows and guests must surrender their driver’s licenses at the front desk. Contractors have to pass a security clearance. Why all the caution? Datamaxx develops crucial software that allows law enforcement agencies to communicate and share information with one another. For instance, a police officer pulling over a driver in Florida

Photo by SCOTT HOLSTEIN

could discover whether that person has an outstanding warrant in New Jersey using Datamaxx software. “We house critical information for our customers,” Stephenson said. “Our servers are in a secure biometrically controlled area. You can’t get into the server room here unless your fingerprint is in the system.” Datamaxx, which has annual revenue of $12 million, has a long list of national and international clients, including the FBI, New York City Police Department and the U.S. Department of State. In total, Datamaxx has 2,500 clients. “We do a lot of travel,” Stephenson said, mentioning she just sent a half-dozen employees to the FBI in Virginia. “They are a national company,” said P.J. Doyle, the president and CEO of CJIS Group, an information

LOCAL NEWS >> The Poarch Band of Creek Indians has partnered with Florida developer, David Romanik, to bring horse racing and a poker facility to Gadsden County. The centerpiece facility at the more than 100-acre site will be an equestrian center and Quarter Horse track, just off the I-10 interchange in Gretna. The new facility, which will include a poker room, is expected to open in winter 2011 and create more than 400 jobs. LOCAL HONORS >> Former Florida Insurance Commissioner Bill Gunter, chairman of the multiple–line Rogers, Gunter, Vaughn Insurance in Tallahassee, was named 2010 Director of the Year by Bankers Insur- gunter ance Group. Gunter is the immediate past chairman of the Florida Association of Insurance Agents. >> Two productions by Ron Sachs Communications were awarded 2010 Emmy® Awards by the Suncoast Chapter of the National Academy of Television Arts and Sciences. The winning projects were the “Quality of Life” public service announcement campaign series produced for the Florida League of Cities and the “Prevent Child Abuse” public service announcement campaign series produced for The Ounce of Prevention Fund of Florida. >> Larry Sellers, a partner in the Tallahassee law office of Holland & Knight, has been re-elected to serve on The Florida Bar Board of Governors. >> The Hospitality Sales & Marketing Association International has honored VISIT FLORIDA with Gold, Silver and Bronze Adrian Awards for advertising and digital marketing excellence in the world’s largest travel marketing competition. >> The Manufacturers Association of Florida has named Danfoss Turbocor Compressors Inc. of Tallahassee as Manufacturer of the Year in the category of businesses with 126-400 employees. The company has received numerous awards for innovation and technology in several countries, but this is the first award for manufacturing. >> The PACE Center for Girls has elected Neil Skene, vice chairman of Tallahassee-based MedAffinity Corporation and president of Holly Lake Investments, LLC, to serve on the Florida Board of Trustees. Adrianna Sekula has been selected as the organization’s new assistant director of government relations. >> Robert Rivas, a partner in the Tallahassee office of Sachs Sax Caplan, has been designated by the Florida Bar as an expert in appeals.

850 Business Magazine

FEBRUARY – MARCH 2011

technology consulting group that works with Datamaxx. He estimates the total size of the law enforcement IT industry is $12 to $18 billion annually.

A Woman in a Man’s World Stephenson is petite, with graying hair and in her 60s. She is also the co-founder and public face of a multi-million-dollar company that works with the male-dominated law enforcement and software development industries. In the mid-1980s Stephenson and Jonathan Waters, an engineer, worked for a company called Datamaxx USA. They were doing similar work, which was developing software to enable communications between law enforcement agencies. Their company was acquired by Californiabased Zentec, which was more interested in developing hardware than software. They decided to buy the software business from Zentec and opened their doors in September 1991. They stuck with the name Datamaxx, calling it Datamaxx Group. Waters was the technical mind (his title is now executive vice president and chief technology officer) and Stephenson was the business brains. Starting out in a tiny 600-square-foot office that Stephenson calls a “dump,” the two had only three clients: the states of Michigan, Massachusetts and Nebraska. The two built the company, steadily adding more clients to their roster. Some of their early success was a result of good timing. “When we started, we were the only game in town,” Stephenson said. “Years ago, communications protocols were so ancient and old nobody wanted to venture into that business.” Customer service was emphasized. “There is product loyalty and there is company loyalty,” Stephenson said. “We work hard to provide high quality service because that’s what it’s all about. We try to be very responsive to our customers; they say ‘jump,’ we say, ‘how high?’” Datamaxx has someone on call 24 hours a day, seven days a week, 365 days a year for technical support. Doyle experienced Datamaxx’s customer service firsthand when he was the information technology director for the Florida Department of Law Enforcement. “She was always on budget and ahead of time. I knew if I needed something, I could call her and get it right away,” he said. When the Sept. 11 terrorist attacks occurred, Datamaxx found itself in crisis mode, helping the New York City Police Department communicate with other agencies. The cell towers became jammed and the New York fire and police departments could not communicate. Datamaxx employees worked with Cingular (now AT&T) to establish mobile cell phone towers and provided 200 extra devices. “We got them back up,” Stephenson said. “That

850businessmagazine.com

Datamaxx develops crucial software that allows law enforcement agencies to communicate and share information with one another. was the only way they could talk to each other.” Following Sept. 11, Datamaxx became the unexpected beneficiary of a new flow of money going into law enforcement efforts. “Nobody really cared about criminal justice and public safety until (the terrorist attacks),” Stephenson said. “Then, when all the government funding came out, everyone became an expert.” A perfect example of the increased security concern: the federal air marshal program. Prior to the terrorist attacks, there were only 32 air marshals, Stephenson said. Now there are close to 4,000. While not a client anymore, Datamaxx won a contract in 2002 to put its software onto handheld smart phones that air marshals could carry with them. Besides working with local and state law enforcement, Datamaxx also provides its software to prisons, courts, emergency management systems and the newly developed homeland security agencies and departments. The company is also a subcontractor to big defense contractors, such as Lockheed Martin and Northrup Grumman. Datamaxx doesn’t just develop software that helps agencies communicate. They also can help track, analyze and share data, known as “intelligent policing.” “Instead of reacting to a situation, you can be proactive,” Stephenson explained. Though Stephenson has no law enforcement background, she often works with and hires former law enforcement officials to work as consultants. These consultants help educate the company as to what

Datamaxx By The Numbers $12 million in annual revenue 58 employees Founded in September 1991 2,500 clients 500,000 end users The total size of the IT law enforcement industry is $12 to $18 billion

photos by scott holstein

>> Florida A&M University’s School of Business and Industry won the National Team Selling Competition hosted by the Center for Global Sales Leadership at Indiana University. >> Carr, Riggs & Ingram, LLC, has announced that CPAs Sara Applewhite and Leslie Tucker received the Certified Fraud Examiner designation from the Association of Certified Fraud Examiners and that William L. “Larry” Houff, CPA, ABV, CVA, has received the Certified in Financial Forensics designation by the American Institute of Certified Public Accountants. >> Mike Ferrie of PrimeSouth Properties, Fezler, Russell and Ferrie successfully completed the Spokesperson Issues Training program conducted by the Florida Association of Realtors ®. On the Move >> Aletta Shutes, who ferrie broke the glass ceiling in state government 20 years ago as an agency head and then as Florida’s first Taxpayer Rights Advocate before transitioning to a successful career with the Florida Credit Union League, has opened her own governmental/legislative consulting firm, Aletta Shutes & Associates. >> After three years at the helm of P3 Public Relations, a partnership with the Pennington Firm in Tallahassee, Allison North Jones has launched North Public Relations, a public relations and consulting firm. >> Ruden McClosky has added three new attorneys to its Tallahassee office: Paul H. Amundsen, Julia E. Smith and Susan St. north jones John. >> Vivian Myrtetus has returned to Tallahassee from outgoing U.S. Sen. George LeMieux’s Washington office to start her own communications shop, Beacon Communications Group. >> BIS Frucon Engineering has hired Mark L. Auger for the Tallahassee-based position of southeastern regional manager, responsible for oversight and development of business in northern Florida. >> Kirsten Borman has joined Moore Consulting Group as a director and will head up the Tallahassee firm’s new public affairs arm. New Beginnings >> Event Photography Group, the largest commencement and endurance race photography company in North America, is expanding its local operations and locating its GradImages division in Leon County. The company is creating more than 50 new full-time and seasonal jobs with an average annual wage that is more than 115 percent of the average annual wage of the region. >> A new online store has been launched by Tallahassee-based WellaVerde, an online lifestyle company featuring recycled, reclaimed, handmade, organic and sustainable merchandise. >> Fringe Benefits Management Company has sold its tax favored and benefits continuation administrative services division to WageWorks, the nation’s largest independent provider of consumer directed healthcare and commuter solutions. Fringe Benefits Management Company’s core business has rebranded and positioned itself as FBMC Benefits Management, Inc. >> Anytime Fitness has opened a third location (owned by Kerry Kendrick) at the Northwood Centre. Founded in 2002, Anytime Fitness is the fastest-growing fitness club franchise in the world, with nearly 1,400 clubs. >> Groupon, a shopping website that uses collective buying to offer a daily deal on the best local goods, services and cultural events in more than 300 markets around the world, has expanded its Florida presence into Tallahassee and Pensacola. A Change in Administration >> Billy Buzzett, a former vice president of strategic planning for The St. Joe Company, has been tapped by Gov. Rick Scott to head the Florida Department of Community Affairs. Buzzett has 25 years of experience as a civil engineer, land-use lawyer, developer and business executive and helped lead the development of the new Northwest Florida Beaches International Airport in Bay County

law enforcement agencies need to do their jobs better.

Corporate Culture Though Datamaxx wants to keep a low profile to protect its clients, it may have a case for belonging on those “best places to work for” lists. When Stephenson and Waters built the new 34,000-square-foot headquarters in 2001, they decided to install a gym, a large, updated kitchen and an auditorium with high-tech capabilities. “This is a family oriented company,” said Larry Allen, the Datamaxx director of human resources. “The gym is designed exclusively for the employees and their spouses.” Because the Tallahassee office employs only about 50 people locally, most employees have the gym (open 24 hours a day) to themselves during their workouts. Datamaxx also has a liberal policy on working from home, keeping flexible hours, or bringing your pets or kids to work. “Everybody here is a professional,” Stephenson said. The bulk of her employees are engineers, sales and technical support. Stephenson also doesn’t mind if employees bring their kids to work. “A lot of people here have children and if school is off for the day, they can bring their kids here, I don’t care,” Allen said. “They

can play around on the computer or do whatever they want to do.” Like Stephenson, Allen said he trusts in the self-discipline of each employee. Stephenson said managers try hard to keep their employees motivated by nominating one person each month to a “job well done” award, which culminates in a coveted annual award. “We have a really good retention rate,” Stephenson said. “We don’t have much turnover.”

Bouncing Back Even a company as successful as Datamaxx, with a geographically diverse client list, has hit a few bumps in the road in this sluggish economy. Stephenson said in 2005 the company had annual revenue of $30 million. Allen said at its height, the company employed 120 people. But when the contract for the federal air marshals ended, and the economy began collapsing, “we got hit bad,” she said. “Because when governments cut back, the first place they look is to their vendors,” Stephenson said. Many wouldn’t outright cancel the contract, but they would ask for discounts. “We were discounting 20 percent,” Stephenson said. After conducting some of its own cost-cutting measures, such as trimming its employee count by half, Datamaxx has returned to profitability. “This year is going to be a good year and last year was a good year, as far as profitability.” n

Capital Corridor and West Bay, the largest master planned community in the country. >> Sandi Copes, the spokeswoman for former Attorney General Bill McCollum, is heading to the Department of Business and Professional Regulation. >> Jennifer Krell Davis has moved from the Secretary of State’s office to newly elected Attorney General Pam Bondi’s office. >> Chief Financial Officer Jeff Atwater, the former state Senate president, has brought his chief of staff, Robert “Budd” Kneip, to the CFO’s office. P.K. Jameson will serve as Atwater’s general counsel. Tami Torres will manage communications, legislative affairs and the Cabinet. Paul Whitfield will oversee the budget office and divisions of Agent and Agency Services, Funeral and Cemetery Services, Rehabilitation and Liquidation and Workers’ Compensation. Karen Chandler will handle the scheduling operation. >> Pat Gleason, who headed up former Gov. Charlie Crist’s open government office, has moved back to the attorney general’s office. >> New personnel appointments made by Agriculture Commissioner Adam Putnam include: Lorena Holley as general counsel, Matt Joyner as director of federal affairs, Ronald Russo as inspector general, Sherman Wilhelm as director of policy and budget, Alexis Lambert as agency spokeswoman, Robert Tornillo as director of Cabinet affairs and Ashley Mayer as director of legislative affairs. Appointed by Gov. Charlie Crist >> Dr. David Stewart, 52, of Tallahassee, pathologist for Ketchum, Wood and Burge Pathology Associates, as Medical Examiner. >> John Fraser, 64, of Tallahassee, assistant vice president of research and economic development, Florida State University, to the Board of Directors, Institute for the Commercialization of Public Research.

850 Business Magazine

FEBRUARY – MARCH 2011

NEED WE SAY MORE? Come to the USTA Tallahassee Tennis Challenger and see the greatest tennis stars right in your own back yard. ■ April 9-16, 2011 at Forestmeadows Tennis Complex in Tallahassee, FL.

USTA TALLAHASSEE A USTA Pro Circuit Event Benefiting the D. Mark Vogter, M.D. Neuro-Intensive Care Unit at Tallahassee Memorial HealthCare

■ For more information about tickets, sponsorships or volunteer opportunities, visit our web site at TallahasseeChallenger.com or call the TMH Foundation at 431-5389.

Jo-Wilfried Tsonga Winner of the 2007 Tallahassee Tennis Challenger; 5 career singles titles; 2010 Semifinals Australian Open; plays Davis Cup for France; currently #13 in the world.

Mardy Fish Winner 2006 Tallahassee Tennis Challenger; 5 career singles titles; plays Davis Cup for USA; currently #16 in the world--a career high.

John Isner Winner of the 2009 Tallahassee Tennis Challenger; Winner 2010 Heineken Open; Winner longest tennis match in tennis history, Wimbledon 2010; plays Davis Cup for USA; currently #19 in the world.

Ball Kids Sponsor Banners

VIP tent Special Olympics

Please visit our Web site at: www.TALLAHASSEECHALLENGER.COM * Photos by Mike Olivella 50 | FEBRUARY – MARCH 2011

850businessmagazine.com

Gulf, Franklin + Wakulla Counties

forgotten coast Corridor

had an affinity for the building and what it stood for. Once she and David became involved in property management, she couldn’t help but wonder what it would take to acquire a landmark so rich in history. “When it (Port Inn) came available, we competed against a developer who wanted to raze the building and build condos in its place,” she said. “The current owners wanted something better for the property and entrusted us to do it. The Port Inn was the result of lots of consultation with experts, money and faith. We wanted to make the corner of Highways 98 and 71 the center of commercial activity in downtown Port St. Joe while reclaiming and emphasizing the history of the original Port Inn, which was located on the same site over 100 years ago.”

Port St. Joe Royalty

Living History David and Trish Warriner hope reviving history will help Port St. Joe’s economic future.

Saving History The past comes alive to revitalize the future by lee gordon

avid and Trish Wariner are Port St. Joe royalty. You’d be hard pressed to find anyone who doesn’t know them or appreciate what they’ve done to help revitalize the tourism industry in this small coastal town. In June 2001, the Warriners took their savings, and money they didn’t have, to revitalize the Port Inn, a hotel that became popular around the turn of the century — the 20th Century, that is. “Many of my financial advisors and friends quietly thought we were crazy, but we get the last laugh,” said David Warriner. “Mission accomplished.” Their mission was to do something that no one

Photo by SCOTT HOLSTEIN

else wanted to spearhead. The Warriners were going to begin the long-awaited refurbishment of downtown Port St. Joe while reclaiming and emphasizing the history of the original Port Inn. “We closed on the property in June of 2001, three months prior to 9/11,” recalled David Warriner. “The property had been the Saint Joe Motel for the last 55 years and had over the years fallen into disrepair. Trish and I had recently finished a redevelopment of some commercial property that was in her family for years, including the old post office. She had always had her eye on the motel due to its location and its dire need for redevelopment.” Being a native of Port St. Joe, Trish Warriner

David Warriner is 45 years old and calls Panama City home. Trish Warriner says she is “a little younger,” and is a native of Port St. Joe. The two moved to PSJ in 1995 after her mother passed away. Their courtship was quick but their marriage has been long and solid ever since. “Trish and I were introduced to each other by her best friend on a blind date in 1988,” said David Warriner. “I met her friend at an American Cancer Society volunteer meeting and within the first 10 minutes she said ‘I know someone you just have to meet.’ We were engaged to be married within three months: happily married after 21 years!” The couple worked together and quietly managed investments and real estate assets along the Forgotten Coast. They also managed the legacy of the Tapper Foundation, which was created by Trish’s father. “I am the president of Tapper and Company. This was a company that grew out of my fatherin-law’s past ownership of the ship stevedoring business that loaded and unloaded ships at our port,” David Warriner explained. “It currently is a management company charged with the management and development of our real estate holdings.” Trish Warriner was a major player in the success of the downtown area. She chaired the Downtown Redevelopment Agency and was the first to insist the TIF (tax increment financing) funds be collected and spent on true redevelopment. The original Port Inn was built in 1909 and owned by the St. Joseph Land and Development Corporation. The Inn had a broad, open-air

850 Business Magazine

FEBRUARY – MARCH 2011

forgotten coast Spotlight veranda and was known as the center of social life in the small developing town. The Inn did very well for the next three decades, but on Oct. 17, 1944, during World War II, a fire took down the entire establishment. In its wake, only smoldering ruins would remain: a loss of approximately $35,000. The property sat vacant for three years until a group from St. Augustine and Panama City reconstructed a “new” motel to the tune of $45,000. On Jan. 5, 1948, the Port Inn was back open. Again, times were good, but as the years went by, the motel fell into disrepair. It was rumored developers

were looking to buy the site, demolish the Inn, and build townhomes and condos. That’s when the Warriners came to the rescue. “We did not know much of the great history of the Port Inn when we bought it but after learning it, we were enthralled and wanted to recapture that history and feel for our town,” said David Warriner. The town’s transition from an industrial (paper mill) to a tourist economy was jump-started with the purchase and subsequent refurbishing of the Port Inn because the Warriners envisioned the need for transient tourism and business

accommodations in Port St. Joe. “We have fared pretty well,” said Trish Warriner. “We have invested money, time and energy in those things that sustain us through the bad times and diversify our market. That being said, we are cautiously optimistic about the future.”

Challenges The Warriners have had to economically survive two of the most devastating events in the history of the nation, and the region. The Port Inn was officially purchased by the couple’s Tapper and Company just three months before 9/11, after which tourism across the country went into a tailspin. And, just recently, like everyone else on the Forgotten Coast, they had to deal with a decline in revenue in the aftermath of the Deepwater Horizon Gulf oil spill. “This was the worst economy in the recent history of tourism and hospitality,” said David Warriner. “During this most recent challenge created by the oil spill, we spent our time trying to figure out how to make lemonade out of lemons instead of crying over spilled oil. We have been fortunate that our efforts and vision has weathered some pretty tough economic times well.” Hospitality is an ever-changing industry, which has forced the Warriners to adjust with the times. A decade after their initial investment, they are enjoying the ride and hoping things turn around so they can prove to everyone, including their financial advisor, that they made a sound and profitable decision to refurbish the Port Inn. “When you are challenged with providing a unique experience for guests with all kinds of expectations, it’s tough,” said David Warriner. “We like to always exceed their expectations, but it’s difficult when they vary so much from guest to guest. Also, in a 24/7 business, challenges and opportunities never stop. Great management and teamwork is a must. We are blessed to have great staff.” n

SOU N D BY T E S LOCAL NEWS >> The Works Coworking Café has opened in Crawfordville, in the Midtown Centre. Owner and manager Chuck Robinson, a Wakulla resident, planned the artistic, urban-industrial interiors with a multiuse conference room, eight furnished private offices called “think pods” and an open café area. His idea: establish a place for organizations, businesses, students and entrepreneurs to meet and “cowork.” Coworkers can opt to participate in various levels of membership. Access to The Works amenities are offered in a range of packages from a “day pass” to a “dedicated office” that includes unlimited printing, faxing, copying services and even free coffee. >> Arkansas-based Centennial Bank took over Gulf State Community Bank of Carrabelle after it was closed by the Florida Office of Financial Regulation. The five branches of Gulf State reopened as branches of Centennial Bank. 52

FEBRUARY – MARCH 2011

850businessmagazine.com

BAY Corridor

Panama City, Panama City Beach + Bay County

SOU N D BY T E S LOCAL NEWS >> DeTect, Inc., of Panama City, has been contracted to supply a DeTect HARRIER S200 Air Surveillance Radar system to support unmanned aerial vehicle development, testing and operations at ISR Group’s test range in Savannah, Tenn. ISR specializes in unmanned system programs for government and commercial clients to aid in communications, intelligence surveillance, search and rescue, reconnaissance and battle space management. The radar systems provide full surveillance coverage from ground level to altitudes up to 20,000 feet and out to 30 miles for detection, monitoring and intrusion alerting for a wide range of targets of interest including aircraft, ultra lights, ships, boats, swimmers, vehicles and pedestrians. >> Lee Ann Leonard has been hired by BookIt.com as the market manager for Panama City Beach. She will be responsible for the development of destination relationships and site content to support market development and growth. >> The St. Joe Company has entered into a new pulpwood supply agreement with Smurfit-Stone Container Corporation. St. Joe will sell 3.9 million tons of pulpwood to Smurfit-Stone’s pulp and paper mill in Panama City over the next seven years. Appointed by Gov. Charlie Crist >> Katie L. Patronis, 33, of Panama City, real estate broker with Century 21 Ryan Realty, to District Board of Trustees, Gulf Coast Community College. >> Dr. Michael Hunter, 44, of Panama City, as District 14 Medical Examiner.

Doing It All From horses to bayous to desert landscapes, whatever a movie producer wants Julie Gordon can find in Bay County.

On with the Show Bay County Film Commissioner Julie Gordon has a message for film and television productions seeking attractive locations: We’re open for business by lilly rockwell

hen producers of a major motion picture were scouring the country for an appropriate beach setting that could be transformed into the Arabian desert, they settled on Shell Island. Located near St. Andrews State Park in Panama City Beach, the secluded 7-mile stretch of land can be accessed only by boat — a major asset for the producers, who liked the island’s pristine sand, lack of development and 180-degree unobstructed views. Many locals probably remember when the movie “Secondhand Lions,” starring Michael Caine and Robert Duvall, was filmed in Panama City in 2002. But what they don’t know is the

Photo by SCOTT HOLSTEIN

pivotal role that Bay County Film Commissioner Julie Gordon played in bringing the production to the area. As one of 46 film liaisons or commissioners in Florida, Gordon works to encourage the film and television industry to come to Bay County. Whether it’s the filming of a TV commercial, a show such as HGTV’s “House Hunters,” or a major motion picture like “Secondhand Lions,” she is responsible for helping producers select the right location, recommending local crew members and acquiring the necessary permits. Gordon is called upon to help in any way she can, whether it’s assisting a film crew in moving herds of stunt horses onto tiny Shell Island or

hiring a professional sand-writer from Illinois to write “Southwest” in sand for a Southwest Airlines commercial. “With larger projects, they will bring in their key team, their director and shooter and producers, and then we fill in support crew,” explained Gordon, 50. “We can host anything. They bring it in, and I take liberties and do the rest.” The dollars that the film and television industry help bring to Bay County are substantial. During the fiscal year that ran from October 2008 to September 2009, the movies, TV shows, commercials, print advertisements and media reports filmed in Bay County had an economic impact of $13 million, Gordon said. In the second quarter alone of 2010, which ran from January to March, $3.4 million was pumped into the Bay County economy.

From Acting to Work Behind the Camera Julie Gordon was a typical child of the military, moving from town to town and school to school. But one thing did stay the same: During family vacations, they would travel to Panama City Beach. Her parents eventually retired in Panama

850 Business Magazine

FEBRUARY – MARCH 2011

bay Spotlight

The ﬁrst thing you did was name your business. Now put a face with the name. Your visual products communicate who you are to your customers. Without well-designed, well-marketed materials, you’re just another face in the crowd. Rowland Publishing offers expert services in identity development, print collateral design and photography. Whether you need a logo, business card, brochure, newsletter, direct mail piece or annual reports, we specialize in creative print solutions that showcase your business without straining your budget. Call ((850)) 878-0554 or visit today rowlandpublishing.com today.

CREATIVE. PRINT. SOLUTIONS.™

FEBRUARY – MARCH 2011

City, and Gordon was set on a career as a highschool band director. “My whole life was music and band,” she said. But Gordon got sidetracked after losing weight and becoming a bodybuilder in 1984. She was featured on national talk shows such as those hosted by Maury Povich and Jenny Jones. After showing off her new, muscled physique in a few magazines and talk shows, she acquired an agent, and within four years she started landing roles in movies and television shows. Gordon said her bodybuilding looks landed her parts playing tough women. “I wasn’t going to be the dishwasher detergent lady,” she said. Gordon also got roles because she could do her own basic stunts. “I was a key actor, not a stunt double,” she said. For tougher stunts, she would have her own stunt double. She stayed in Panama City but found roles across the country, from Los Angeles to Orlando and New York. While working as an actress, Gordon noticed that there wasn’t a film office in Bay County, although there were 43 other film offices in the state. She saw other counties land jobs that Bay County would have been competitive for. “For four years, while still being on the road, I would come back and pitch, ‘Why don’t we have a film office?’ ” she said. After lobbying the county for years, she was given the contract to be the film commissioner for Bay County in 2001, working under the Tourism Development Council. “I’ve been doing it ever since,” said Gordon, who immediately stopped going after acting roles and focused on being a full-time film commissioner. Gordon emphatically believes Panama City has a lot to offer the film and television industry. “We have small-town scenes and marshes and bays and bayous, a lot of different looks,” she said. “We’re versatile.” And that doesn’t even include the beach and gentle waters of the Gulf. Though major motion pictures such as “Secondhand Lions” receive a lot of attention, the bulk of Gordon’s day-to-day work is not helping filmmakers. As she puts it, “anything with a camera,” she gets involved with. So if an advertising agency wants to film a print campaign on a beach, Gordon can help make that happen. Or if a major news provider wants to film the beach for a report on the Deepwater Horizon oil spill, Gordon will make sure it has the right to film at certain beach locations. “My mantra is, I market Bay County to the film industry worldwide, and once they choose this area, I hook them up with everything they need, from Porta-Potties to walkie-talkies,” she said. “I act as a liaison between the film industry and the community.”

850businessmagazine.com

Still, Gordon faces a lot of competition from locations such as Jacksonville and Louisiana for film and television dollars. “Up until now, transportation was the biggest issue,” she said. “Now, with the new airport, I see a whole new door opening.” Before, television and film crews would have to fly into Jacksonville for cheaper fares.

Advertising You Can’t Buy Historically, states like California and New York have had strong film and television industries. They have the advantage of boasting the headquarters of some of the world’s major motion picture and television studios. Each year, hundreds of movies and TV shows are filmed in Los Angeles and New York City, where it’s relatively easy to find talented actors, experienced crew members and investors. But as more states have started offering aggressive film incentive packages, more movies and television shows have migrated toward states such as Texas and Louisiana. Other states are fighting for a piece of the film and TV entertainment pie because it generates money for the local economy. A film crew will eat at local restaurants, pay for hotel rooms and spend money hiring local crew members. Then, when the finished product is unveiled, “it helps enforce a good image of our area,” Gordon said. The Florida Legislature bolstered its film and television tax incentives in 2010. A tax-credit program was established that will last for five years and total $242 million in available credits. Gordon and other film commissioners are hopeful that this financial incentive will yield more projects. There are a handful of TV series filmed in Florida already, such as “Burn Notice” in Miami and “The Glades,” an A&E show about a homicide cop that is shot in Broward County and set in the fictional town of Palm Glade. And at the end of 2009, an independent film called “Born and Raised” was filmed almost entirely in the Panama City area. The movie itself is based in Panama City. Though Gordon says she is happy to help anyone who calls her office looking for assistance, she notes that certain productions that might portray Panama City unfavorably aren’t embraced. Panama City is fighting its image as a party-heavy spring-break hot spot and trying to promote itself as more of a family-friendly destination. “We are trying hard to clean up our image, and portray it as nice and upscale,” Gordon said. “While we do a lot (of business) during spring break, that’s just six weeks of the year.” Gordon helps achieve this vision by encouraging projects such as Florida Travel+Life’s show on the Discovery Channel, “Affordable Luxuries.” “It’s advertising you can’t buy,” Gordon said. n

Iff cussto t me m rss lik ke whatt the h y sse ee on pape pa per, they’ll seek yo y u outt in per erso so on. n. R wl Ro wlan nd Pu Publ blis ishi hing ng works wit ith th yo ou tto o d des e ign and produce dynamic c pr prin in nt mate ma t ri r als that inform, inspire and inc nc citte. And our creative solutions will sh And An ho ow wcase ca s your business without strai aini n ng ni g yo y our u b budget. Call (8 (850 50)) 87 8788-05 05 554 5 or visi vi s t ro rowl w an andp dpub ubli lish shin ing. g.co com m to toda day. y.

Rowland Publishing Inc. is the proud publisher of 850 Magazine

CREATIVE. PRINT. SOLUTIONS.™ 850 Business Magazine – MARCH 2011 | FEBRUARY

Taste of the region Business luncheons. Celebratory dinners. Deal-making cocktails. A sampling of the best fare the region has to offer.

A GUIDE TO FINE DINING IN NORTHWEST FLORIDA

Magnolia Grill FORT WALTON BEACH

TOM & PEGGY RICE, PROPRIETORS

(850) 302-0266

www.magnoliagrillfwb.com 56

FEBRUARY â&#x20AC;&#x201C; MARCH 2011

850businessmagazine.com

Coastal Escambia, Santa Rosa, Okaloosa + Walton Counties

EMERALD COAST Corridor SOU N D BY T E S

The Fr iendly Skies Sandy Williams (left) and son Mark fly over the Emerald Coast with messages that include dinner specials and marriage proposals.

Sky Writers A

Boomer Aviation has three decades of shooting for the clouds by scott jackson s time marches forward, the vestiges of a simpler time often fade away quietly. But with multi-story developments changing the skyline along Northwest Florida’s Gulf coast, it is heartwarming to glimpse an enduring, quaint remnant of our coastal culture — banner-tow aircraft. Floating nimbly through the skies, often battered by wind and rain, these planes have turned millions of eyes skyward for nothing more than a pithy statement — in stark contrast to the fusillade of highpowered, techno-blitzing advertising that those same eyes are subjected to in all other aspects of their lives. Banner towing is probably the only type of advertising that can reach those sun-soaked visitors who, for a brief moment of time, can enjoy a respite from the

omnipresent, sophisticated messages. But as beautiful and simple as it may appear, the business of towing banners is one requiring exacting flying skills and attention to detail. Sandy Williams’ Boomer Aviation is the largest operation of its kind between Jacksonville and California, according to Williams. The three-generation business is now in its 31st year of operation. Credits go to inspiration, business sense and perseverance — but also some luck and the attrition of the only competition. The company operates a fleet of 14 aircraft with 10 pilots during the tourist season. Operations begin at a 22-acre grass strip south of U.S. Highway 98 in Navarre, where the Williams family sets up the banners via a 250-foot towline with a 20- to 30-foot loop suspended between two poles. In a manner similar to

News of Note >> Atlanta-based Vision Airlines is expanding its passenger service to several new markets in Florida, which includes adding 20 new cities to the routes it flies out of Northwest Florida Regional Airport (VPS), located on Eglin Air Force Base near Valparaiso and Fort Walton Beach. The new stops include: Atlanta, G.A.; St. Petersburg; Orlando; Asheville, N.C.; Columbia, S.C.; Baton Rouge, La.; Chattanooga, Tenn.; Fort Lauderdale; Fort Myers; Huntsville, Ala.; Savannah, Ga.; Macon, Ga.; Knoxville, Tenn.; Greenville/ Spartanburg, S.C.; Punta Gorda; Louisville, Ky.; and Shreveport, La. The airline has mostly flown celebrities, corporate clients, and campaigns, but has been flying scheduled passenger service for two years. Vision has actually been flying in and out of Northwest Florida Regional Airport since December, with flights to Miami and Niagara Falls. >> A study recently released by the Beaches of South Walton suggests that many travelers intend to return to Northwest Florida beaches this spring and summer. Conducted by Majority Opinion Research, the survey polled 422 visitors who vacationed in the area the previous summer but did not book at the same accommodations in summer 2010. The vacationers surveyed previously stayed in one of the area’s 15 beach communities such as Seaside, Grayton Beach, Seagrove Beach, WaterColor, Rosemary Beach or San destin. The study revealed that 83 percent of those who did not travel last summer due to the Gulf oil spill stated they “will return” to Beaches of South Walton in 2011. Local Honors >> Studer Group® has been selected as one of seven U.S. recipients of the 2010 Malcolm Baldrige National Quality Award. The Gulf Breeze-based outcomes firm, which specializes in the health care industry, is one of three companies honored in the “small business” category. >> GrowFL recently named 50 companies to its inaugural class of “Companies to Watch,” including five located in the Pensacola area. Avalex Technologies, Compass Solar Energy, H2 Performance Consulting, Hixardt Technologies and IMS ExpertServices were all recognized on this elite list of rapidly growing Florida companies. To qualify, a company must have fewer than 99 employees and make between $750,000 and $50 million in annual revenue or capital. Between these five companies, they account for more than $35 million in annual revenue and employ more than 120 people. The combined impact of all 50 companies is $423 million in pg 60

Photos by SCOTT HOLSTEIN

850 Business Magazine

FEBRUARY – MARCH 2011

monar creative consulting

event management

couture concierge

pho o by: bra phot bbrr nd ndan nnda dan ba bbab abinea ab ineauxx ineaux ine

photto by: coody jjoorrdan rddaann rda

photto by: bra brandan nd babinnnea nda ea e ux ux

www.monarkevents.com

FEBRUARY â&#x20AC;&#x201C; MARCH 2011

850.728.9476

850businessmagazine.com

info@monarkevents.com

emerald coast spotlight an aircraft-carrier landing by a Navy jet, the pilot flies through the poles and snags the towline while simultaneously accelerating and climbing — a feat requiring the utmost in concentration and skill. Sadly, the only accident the company has had was during this maneuver; in 1983, an experienced pilot was killed when his airplane stalled and crashed. Williams recently set up another operations site at the new Northwest Florida Beaches International Airport north of Panama City.

Hitchhiking to Inspiration — The Beginning Williams, 68, decided to go into the aerial advertising business when he saw his first banner tow aircraft after hitchhiking to Daytona Beach for spring break. He opened in 1979. But it wasn’t an easy start — and it admittedly took a string of miracles to get the business off the ground after he and his wife relocated to the Emerald Coast, leaving behind a 17-year career in the insurance business. He began his quest with 4,000 hours of flying experience and a sales pitch to three nightclub owners in Fort Walton Beach, netting $1,000 from each of them. The only problem: He didn’t have an airplane or a banner. And the clock was ticking. He had promised to get the banners airborne in one week. Williams’ luck turned skyward when he was able to buy a Cessna 172 for $1,000 down, with the balance to be paid over the tourist season. He frantically obtained the lettering and devices to tow behind the aircraft, and things seemed to be moving along briskly until Williams realized that he had to have a certification from the Federal Aviation Administration office in Birmingham, Ala., before flying. But the FAA was not making another trip to the area until July. So, with his 11-year-old son Mike in tow, Williams flew to a compromise location at the Shelby County airport in Alabama, where the FAA gave him approval. That allowed him to get airborne just in time to fulfill his obligation — a responsibility that he has faithfully met ever since. “In 31 years, we have never missed a flight due to maintenance,” said Williams, a tribute to his company’s customer focus, perseverance and attention to detail. Those characteristics have sustained the company through hurricanes, oil spills, volatile shifts in fuel prices and a troubling economy. Williams also is actively involved with tourist development councils and tourism promotional organizations. The grounding of flying activities after the Sept. 11, 2001, terrorist attacks posed a serious financial setback for Boomer Aviation because

850 Business Magazine

FEBRUARY – MARCH 2011

Please visit our website that shows the income and tax benefits for you and how your planned gift will benefit Florida State Athletics. www.seminole-boosters.com Joel Padgett (850) 644-3378

pg 62

FEBRUARY – MARCH 2011

850businessmagazine.com

photo courtesy mel ponder

“It was very simple. All we had to do was put Seminole Boosters in our will”.

total annual revenue, 1,972 full-time employees and 510 new net jobs created compared to 2009. >> Seven companies from the Emerald Coast region were named to Inc. Magazine’s annual list of the top 5,000 fastest growing private companies in America. The Northwest Florida companies making this year’s list generated a total of $93.3 million and provide hundreds of jobs, most of which are high-tech and highwage jobs. Despite the fact that most of this year’s measuring period of 2006–2009 took place during the latest recession, this is the fourth consecutive year that Avalex, IMS Experts, AppRiver and Tropical Smoothie have made the list. It is the third year for KaMedData, and the second for Bit-Wizards. H2 Performance Consulting made the list for the first time at No. 139, topping the local list with an incredible 1913 percent growth over 3 years. >> BauerFinancial, Inc., the nation’s bank and credit union rating firm, has recognized Pen Air Federal Credit Union, Pensacola, as one of the strongest credit unions in the nation, giving it the highest 5-Star rating for strength and stability. >> Suzanne Johnson — general manager, food and environmental services, Gulf Breeze Hospital — is the recipient of the 2010 Growth and Development of Staff Award for Florida from Sodexo Health Care Division. >> The Greater Fort Walton Beach Chamber of Commerce was recently awarded the NAACP Corporate Sponsorship Award for 2010 at the organization’s annual Freedom Fund Banquet. Business on the Move >> Howard Group, a real estate development company specializing in premier commercial, hospitality and residential developments, has announced an agreement with Carr, Riggs and Ingram, LLC, to relocate the accounting firm’s Destin office to Grand Boulevard at Sandestin’s Town Center. Approximately 50 CPAs are being relocated to the new 11,500-square-foot office. >> Michael Jones, formerly of Jones & Flowers, has joined the Destin law firm of Matthews & Hawkins to form the new firm of Matthews Jones & Hawkins. The change came after Michael Flowers was elected to the Circuit Court bench. The firm has offices in Niceville, DeFuniak Springs and Destin. >> In 2010, Randy Ramos and his team at Global Business Solutions, Inc., added 26 jobs at the company’s Pensacola office, thanks to landing a major contract with the U.S. Navy and several grants from the state of Florida. So far in 2011, the IT support and training company has added another nine jobs to service the Navy account, “Information Technology of the Future,” and more are expected in coming months. >> Frama-Tech, Inc., a wholesaler and distributor of specialty construction materials, has relocated its corporate office and operations to Navarre with help from TEAM Santa Rosa. >> Mel and Mona Ponder have launched a new association in the Destin area — Business Edge Florida, dedicated to empowering business people to become a positive force within their business, community and nation. >> The Blue Giraffe, an art boutique and the ponders gift shop filled with handcrafted works, was recently acquired by the Taylor/Sheffield family. The shop is located on scenic Hwy 30A in WaterColor. Celebrations >> The Pensacola Bay Area Chamber of Commerce in conjunction with NAS Pensacola and its community partners have launched celebrateflight.com to showcase the 100-year history of naval aviation and the upcoming events for the celebration. The website also includes a blog, and the public is invited to share their historic photographs and stories in 1,000 words or less. >> The Santa Rosa County Chamber of Commerce celebrates a 75-year milestone in 2011.

emerald coast spotlight the company’s off-season business relies on flying during football games at Auburn, Alabama and Florida State universities. Williams agreed with the initial decision to ground all aviation but was dumbfounded as to the logic that kept banner-tow aircraft grounded when seemingly more likely aircraft could pose a threat. “A student pilot with practically no experience could fly up and down the beach,” Williams said. “I had 30,000 hours (of experience) and wasn’t allowed to fly.” The 31 years have not been without its close calls for Williams. In 1992, his aircraft’s engine quit and he had to make an emergency landing in Fort Walton Beach’s Beal Cemetery.

Building and Banking Experience Boomer Aviation mandates that each pilot have at least 500 hours of flying experience, a commercial rating and a certification from the FAA for banner towing, as well as his own check flight before being approved for the job. Williams has strict standards for flying and can easily spot an infraction from his car or anywhere he happens to see one of his planes in the air. According to FAA regulations, the aircraft must fly no lower than 500 feet over water and 1,000 feet over land. But this strict adherence to high standards has benefited pilots who have moved on to other flying careers. According to Williams, 125 pilots have worked for Boomer during the company’s existence. Sixty of them have moved on to flying corporate aircraft, and 20 eventually flew for the major airlines. With more than 38,000 flying hours himself, Williams is now flying fewer than 500 hours a year. And he has delegated more responsibility to his chief pilot, Jim Jones, who has more than 12,000 flying hours. (He joined Boomer when he had only 200.) Bill McKinnon, a retired Navy captain and F-14 pilot, has already experienced a full flying career and is simply enjoying keeping his hands on the stick. Regarding retired military pilots who have flown for Boomer Aviation, Williams noted that many of them ask him, “You mean you are going to pay me to do this? But I don’t need to be paid.” Indeed, the sights to behold from above and along the shimmering, emerald green coastline at speeds of less than 60 miles per hour are something that few can witness. At this relatively slow flying speed, Williams notes, “We joke about bicycles passing us.” Fish spotting is easy, and the pilots often note the “shark convention” at the jetties in Destin during June and July. And if they observe anybody in distress, such as a capsized boat, the pilots can readily pass along such information to air traffic controllers, who then alert the Coast Guard.

850 Business Magazine

FEBRUARY – MARCH 2011

emerald coast spotlight Most of the banners towed advertise local recreation, dining or nightlife establishments, but Boomer Aviation sometimes gets a more personal request, such as a wedding proposal. The son of Dallas Cowboys owner Jerry Jones did just that with a banner flown past the Jones beach house in Four Mile Village. In one instance, Williams said actress Kim Basinger hired Boomer to tow a banner in New Orleans as a surprise birthday gift for her then-husband, Alec Baldwin. Williams’ company even towed a billboard replicating a helicopter that was used for target practice by a defense contractor in New Mexico. Banner towing is a highly adaptable form of advertising, according to Williams. Customers can reach their target market and change their messages to reflect current specials and events. Some customers fly up to eight banners a day. Boomer has simplified the customer interface with its website at AerialAd.net; a banner can even be ordered online there. Williams’ wife, Bernice, and his sons — Mike, Mark and Matt — have all been actively involved in the business. Mike worked the business while getting through medical school and is now the chief of the emergency room at Fort Walton Beach Medical Center. Mark is running daily operations, while the youngest, Matt, is working

sales. Mark’s 14-year-old son Noah, who builds the banners on the ground, brings the third generation to the business. Together, this family has been a visible, timeless presence in the skies over Northwest Florida’s Gulf coast for more than three decades, enduring progress, disaster and the changing face of the coastline. Anytime you want to recapture a piece of our coastal culture, you only need to look skyward over the Gulf. n

kirkman photo courtesy florida’s great northwest

Moving In, On and Up >> After a nationwide search, Don Kirkman has been appointed president of Florida’s Great Northwest, the 16-county, regional economic development organization of Northwest Florida. A seasoned economic developer, Kirkman most kirkman recently served as president and CEO of the Piedmont Triad Partnership in North Carolina, a 12-county economic development organization. He was chosen because of his extensive background in regional economic development including marketing, business recruitment, government relations and fundraising. >> Mark Faulkner has been named executive vice president and chief operating officer of Baptist Health Care and president of Baptist Hospital, Inc.; David Wildebrandt has been named administrator of Baptist Hospital and senior vice president for BHC. >> Brian J. Hooper, a commercial litigator, has joined Emmanuel, Sheppard & Condon as an Associate Attorney. >> The Emerald Coast Association of Realtors has installed its 2011 officers and Board of Directors: Jean Floyd, president; Judi Rutland, president-elect; Jan Hooks, vice president; Penny Ericksen, treasurer; Dale Peterson, assistant treasurer. Directors: Tom Miesen, Janice Busovne, Jan Huyser, Frank Brooks, Robbie Fenn, Jamie Huggins, Bob Hudgens, Lisa Norton, Donna Miller, Cathy Alley, Sally Merrifield, Scott Provow, Kelly Klein, Jeannie Wilson and Mary Anne Windes. >> Karen Cooksey has joined the Hilton Sandestin Beach Golf Resort & Spa as director of Sales and Marketing. >> Loyd Carlyle has joined Serenity by the sea – the Spa at the Hilton Sandestin Beach – as Hair Stylist. Appointed by Gov. Charlie Crist >> Dr. Andrea Minyard, 45, of Pensacola, president of Gulf Coast Autopsy Physicians PA, as medical examiner.

FEBRUARY – MARCH 2011

850businessmagazine.com

I-10 Corridor

Northern Escambia, Santa Rosa, Okaloosa + Walton Counties and Holmes, Washington, Calhoun, Jackson + Liberty Counties

SOU N D BY T E S LOCAL NEWS >> Northwest Florida Community Hospital has been awarded the “Hospital of Choice” Award for 2010–2011 by The American Alliance of Healthcare Providers, the second time in five years. The Chipley hospital was one of 100 facilities across the country — three in Florida — recognized for reaching beyond their walls in pursuit of excellence and quality care.

The Lu r e o f E co -To uri sm Rural counties hope the beauty of their region will bring in more tourists.

Welcome Back Washington, Holmes and Jackson counties combine efforts to encourage tourists to take Northwest Florida’s roads less traveled by lilly rockwell

or Northwest Florida’s northern counties — the ones that bump up against Alabama and are frequently seen only through the blurred window of a car traveling down Interstate 10 — attracting tourists is a frustrating and tough sell. By comparison, beachside counties such as Bay and Okaloosa seem to effortlessly lure tourists with their white-sand beaches, bustling shopping malls and resort hotels. In an effort to channel some of those tourist dollars that gravitate toward beachside counties, northern Jackson, Holmes and Washington counties have developed an ambitious plan to showcase the tourist attractions they have to offer.

Photo courtesy SCOTT SWEENEY

Starting last year, officials from the tourist development councils within each sparsely populated county began brainstorming for ways to encourage more day trips to their area. There are a surprising number of hidden attractions in these counties, but it’s tough to get the word out with a small tourist development budget funded with bed taxes. Washington, Jackson and Holmes counties have a limited selection of hotels and bed-and-breakfast houses. “The three counties are banding together to combine our resources and combine our … money, time, energy and effort,” said Paul Donofro, the chairman of the Jackson County Tourist Development Council and a Marianna city commissioner.

Though each county shares a rural heritage, they all have something different to offer visitors, whether it’s a nationally known wolf preserve in Washington County or springs featuring crystalclear scuba diving into underground caves in Jackson County. “We came up with lists of local attractions, such as state parks, and we made a master list of all three counties and developed a database where we could pull itineraries based on the time of year,” said Heather Lopez, an administrator with the Washington County Tourist Development Council. The idea is to encourage day trips focused on certain themes, such as agricultural tourism. Lopez said the counties are hoping to lure tourists from nearby Bay County, for instance, who may want to explore more of Florida beyond its beaches. The idea is to offer tourists daylong, all-inclusive guided tours to choose from, such as going on tours of local farms or state parks. A tour operator would provide a bus to take visitors to all the locations and provide a meal, with the costs paid up front. Ideally, visitors could even be picked up from their hotels in Bay County. Each local tourist development council would then contribute money toward vigorously promoting these trips through ads in magazines and brochures. “It’s an interesting concept,” said Alicia KiddGonsalves, who promotes tourism to Holmes County. “I have a campground and people stay for longer periods and it’s nice that I can now send them to different places. Hopefully it’s a major draw.” If successful, their model could be the envy of rural counties everywhere.

Of the 69.6 million domestic visitors and 5.9 million foreign visitors who visited Florida in 2003, 70.3% participated in nature-based activities. — Florida Fish and Wildlife Conservation Commission

850 Business Magazine

FEBRUARY – MARCH 2011

I-10 Spotlight So what is there to do in rural Florida? As it turns out, plenty. One asset Washington, Holmes and Jackson counties have over their beach neighbors is their abundant lakes, rivers and pine forests. Lopez said they plan to encourage “eco-tourism,” which can include kayaking, hiking or bird-watching. The Great Florida Birding Trail travels through these counties and there are myriad state parks. “We are trying to attract people to see natural resources, (such as) water-based amenities,” Donofro said. “We’ve got a first-magnitude spring located in Jackson County called Blue Springs. It feeds into a large pond. It’s an extremely beautiful riverway and is used by Florida State students and others that come up in the summer and rent canoes, kayaks or tubes.” He described the water as “crystal clear” and shallow.

About 8 million (10%) of Florida’s domestic visitors in 2009 vacationed in Northwest Florida. — VISIT Florida Blue Springs and other nearby springs attract scuba divers from all over the world because of the clarity of the water and abundance of underground caverns. The counties also want to showcase their state parks. In Washington County, visitors can view a

73-foot waterfall — Florida’s biggest — at the appropriately named Falling Waters State Park. At Florida Caverns State Park near Marianna, visitors descend into the cool air of underground caves to observe the ancient stalagmites and stalactites that adorn the ceilings and cave floors. And when you’re done with that, Florida Caverns, like other state parks, offers horseback riding trails, swimming, canoeing and boating. These counties are also a destination for hunters. During season, typically October through April, some private lands offer quail or deer hunting as well as lodging. In Washington County, hunters can rent a cottage from Hard Labor Creek Plantation that is steps away from a quiet lake, with thousands of acres to roam. (There are also opportunities for ATV rides, archery and skeet shooting). In Jackson County, there is Dan-D-Ridge Plantation, which also offers quail hunting and an expansive 7,500-square-foot lodge decorated with — what else? — mounted buck heads. There’s a plethora of farms that grow corn or have milk dairy cows, and even a Christmas tree farm with a festive shop where visitors can purchase holiday trinkets. Visitors can also sample the farms’ products and learn about the area’s contribution to local food sources. “A lot of it is going to be educational,” Lopez said. There’s also

The Lure of Washington, Jackson and Holmes counties >> There are four state parks in the tri-county area: Three Rivers, Florida Caverns, Falling Waters and Ponce de Leon Springs State Park. >> Washington County has the largest wolf preserve in the Southeastern United States. Seacrest Wolf Preserve sits on 400 acres and allows visitors the rare opportunity of visiting, petting and even howling with the wolves inside their enclosures. >> Ebro Greyhound Race Track in Washington County was built in 1955 and offers a taste of Las Vegas with seasonal greyhound races, simulcast betting and poker playing. >> Antebellum plantations and post-Civil War mansions abound in historic Jackson County. There are more than a dozen privately owned Greek and Classical revival mansions in the county. >> Golfers, not to worry. Each county has a privately owned 18-hole golf course.

a local winery in Washington County called Three Oaks that offers tours and sips of its wines. History buffs can indulge in self-guided historic tours of downtown Chipley, Marianna or Bonifay, and learn local lore such as which 1800sera buildings are rumored to be haunted. There are even antebellum mansions and Civil War skirmish sites to visit. Seasonal parades and festivals spotlight local offerings. Marianna has its two-day “Fine Swine Dine” barbecue brouhaha each April. And Wausau, in Washington County, is known statewide for its August 0possum-eating festival in which a King and Queen are crowned. The catch: this vote is for being the ugliest, not prettiest, person in town. Tourism promoters in these counties hope there’s enough to tempt tourists to sample daytrips and get a glimpse into the hidden Florida. If they like visiting for a day, it could entice them to stay longer and ignite an industry that had never thrived before in off-the-beaten-track counties. “We’ve never been marketed as a destination,” explained Lopez. “For the longest time, nobody even knew where Washington County was. We don’t have huge attractions like Panama City … but we are a unique place and we have really neat stuff, like the wolf preserve.” Tourism officials from the three counties hope to have the day trip tours up and running by summer. n 64

FEBRUARY – MARCH 2011

850businessmagazine.com

Paul Watts, Chief Operating Officer of Electronet Broadband Communications Sandra Crutchfield, Administrator of Tallahassee Cardiology Associates, P.A. Offices of Dr Michelle D. Bachtel, Dr Joseph C. Baker and Dr William C. Dixon IV

RE AL CUSTOMERS . RE AL ISSUES . RE AL SOLUTIONS . We were using a different company for voice and data services. Our ofﬁce was expanding so we began to look around at other companies to assist us in our move to our new location. Paul Watts and his talented staff at Electronet came in and designed a new phone system, phone lines and internet access – the transition was fast and easy. I was tired of the 800-numbers and auto attendants, so I really enjoy having a local company that provides the personal touch and attentiveness to all of our needs. We are thrilled with our partnership with Electronet and would recommend them to anyone that is interested in improving their quality of service and reducing their expenses.

3 4 1 1 C a p i t a l M e d i c a l B l v d . Ta l l a h a s s e e , F L | 2 2 2 . 0 2 2 9 | w w w. e l e c t r o n e t . n e t 850 Business Magazine

FEBRUARY – MARCH 2011

The Last Word

There isn’t much to do when you sit in the jury room at the county courthouse.

LINDA KLEINDIENST, EDITOR lkleindienst@rowlandpublishing.com

photo by scott holstein

While you wait for your name to be called, so you can sit in another room and wait, you scan the room and look for a familiar face, someone to pass the time with. The last time I was called for jury duty, I was lucky enough to find a former state legislative leader I had covered while working the state capital and politics beat for South Florida’s Sun-Sentinel newspaper. He had a toddler at the time and we started talking about the state of public education. Education has always been one of my interests, personally and professionally, especially recognizing that without a well-educated work force the state is crippling its hopes for economic development and the growth of businesses that will provide the high-wage jobs we all want to see in Northwest Florida. In my newspaper days, I was among the few Capitol reporters who actually tried to understand the public school funding formula and follow the tinkering that legislators did with it each year to somehow boost education funding — or at least make it look like they did. For me, it was important to tell my readers exactly what the state was going to do for their child’s school, including whether the classrooms would be more crowded next year or more portables might have to go up on the playground. But, in the spirit of full disclosure, you should know that I also served as president of parent-teacher organizations at my daughter Vicky’s elementary, middle (two years) and high school (two years). We raised as much money as we could — one year about $25,000 — to help teachers offset classroom costs they had been personally shouldering for years and to help out needy students, including one time paying for installation of a power pole and electric hook-up for a family that had no electricity. I always felt it was in my family’s best interest to help public schools because that’s where my daughter was getting an education and I wanted to make sure she had a bright educational and economic future. This legislative leader had always been an advocate for public schools, so I asked him what elementary school his home was zoned for. Imagine my surprise when he proceeded to talk about sending his daughter to private school.

Over the years, I’ve written endless stories about the governor and Cabinet, who make education policy as the state Board of Education, and the House and Senate committees that handle public school policy and funding. Some of those stories touched on how many of them had school-aged children and where they attended school. It was interesting to find that many were not enrolled in or hadn’t gone to public school. But it was sad to realize that the schools were missing out on the benefit of having so many powerful — and vested — voices. As he begins his first year in office, Gov. Rick Scott wants to eliminate the property tax that counties now levy to help pay for public schools. But no one is yet sure how the anemic state coffers would be able to bridge that budget gap. Legislative leaders have indicated cuts in education are probably inevitable during the upcoming spring legislative session — especially since federal stimulus dollars used to boost school spending last year will not be available in this budget go-around. Education Commissioner Eric Smith was recently told that a budget scenario his staff is working on to cut another 15 percent from the public schools budget is a starting point. Business leaders realize public schools will provide the bulk of this region’s future work force. So it is incumbent on them to know what is going on in the legislative arena, especially when what the Legislature does can ultimately have a dramatic effect on their company’s future. In this issue, we have provided you a list of Northwest Florida’s legislative delegation. We have told you what committees they serve on and how to reach them via phone. You can access their mailing and e-mail addresses through the legislative website, Online Sunshine, at leg.state.fl.us, which has information on bills, including an analysis of each bill filed, and the budget. While business people tend to focus on taxes and regulation during the legislative session it might be in your best business interest to pay attention to education issues, not just at the public school level but with the universities and colleges as well. Your future depends on it.

FEBRUARY – MARCH 2011

850businessmagazine.com

850 Business Magazineâ&#x20AC;&#x2122;s

Thank You Sponsors Nine student teams competed for $8,000 in prize money and a chance to give wings to their dream of starting a business in Northwest Florida. The students represented Chipola College, Florida A&M University, Florida State University - Panama City and Florida State University, Northwest Florida State College and University of West Florida. The winners will be featured in the April/May issue of 850.

Marty Lanahan

Regions Bank area executive for North Florida and city president for Jacksonville

Dale Brill

president of the Florida Chamber Foundation

Eric Miller

vice president/general manager of CenturyLink North Florida and Alabama

Presented by