2011 December–2012 January Issue of 850 Business Magazine by Rowland Publishing, Inc.

how-to guide: planning your financial success Business issues facing the 2012 Legislature When to turn your phone on and off at work Tips to finding a CEO for your nonprofit

Dream Job Gulf Power CEO Mark Crosswhite is enjoying his new job and the Gulf Coast lifestyle that comes with it

DECEMBER 2011 – JANUARY 2012

850businessmagazine.com

850 Magazine December 2011 – January 2012

IN THIS ISSUE

850 FEATURES 42 2012 Legislature By Linda Kleindienst inancing Your Company’s 24 FFuture Any small business owner

knows how quickly things can go wrong. But, with some advanced planning, you can try to protect yourself and your business from financial failure. It takes knowing what kind of insurance to buy, what type of retirement plan you should provide for yourself and your workers and what bank is best able to protect your interests. The key is planning ahead — and not waiting for disaster to strike first. We offer you some tips from financial planning experts, insurance agents, bankers, CPAs and others on how to prepare for financial security. By Tisha Crews Keller and Linda Kleindienst

Photo by Scott Holstein, Illustration by Laura Patrick

Running A Mission36 Driven Business In today’s soft

economy, non-profits have to run like a business if they want to survive. That often means conducting a national search for a CEO talented enough to bring in the dollars needed to run a major organization like a hospice, an arts center or a hospital. But recruiting an experienced executive can be a tricky dance for non-profit advisory boards, who have to find someone with the right business and technical experience while competing against the salaries being offered by for-profit competitors. By Lilly Rockwell

On the Cover: Gulf Power President and CEO Mark Crosswhite. Photo by Howard Robinson.

Corridors

In This Issue

I-10

46 An olive tree grows in Northwest Florida. No kidding. Don Mueller could be on the leading edge of a new agricultural trend in the region — olive groves where you can pick your own and buy fresh olive oil.

CAPITAL

50 Any weekend night, at the end of a dirt road in northern Leon County, you can hear the music coming from the Bradfordville Blues Club and instinctively know why owners Gary and Kim Anton have a success on their hands.

FORGOTTEN COAST

52 Despite the Recession, the oil spill and a tornado, leaders of Franklin County say they are fighting back from their economic doldrums and beginning to see small but sure glimmers of success.

BAY

54 Spurred on by the nationally recognized success of The St. Andrews Waterfront Farmers Market run by Scott Barnes, this small community is in the midst of an economic revival.

09 11 56 58

From the Publisher By the Numbers Sound Bytes The Last Word from the Editor

Departments THE (850) LIFE

13 Mark Crosswhite, new CEO of Gulf Power, reflects on his personal journey and the region’s power needs.

GUEST COLUMN

14 Protection of Northwest Florida’s water resources is vital to local businesses, says Adam Putnam, Florida’s elected Commissioner of Agriculture.

WI-FILES

16 We provide some courtesy tips for using smart phones and Blackberries in the business place. By Desiree Stennett

IT’S THE LAW

18 While jokes about lawyer greediness may abound, many don’t realize that doing pro-bono (or free) work for needy clients is an important aspect of the profession. By Lilly Rockwell

LEADING HEALTHY

20 Outfitting your office properly can be the key to protecting your employees from work-related illnesses and accidents. By Angela Howard

20 850 Business Magazine

DECEMBER 2011 – JANUARY 2012

Peter Cizdziel and Paul Watts, COO Electronet Broadband Communications

RE AL CUSTOMERS . RE AL ISSUES . RE AL SOLUTIONS . We have used Electronet for internet access for years, and when we learned that they could bundle voice, data and long distance together, we decided to take a look. With our management ofﬁces located off-site from the Club, we had two separate phone systems, making communication between the two very difﬁcult. Electronet assisted with the purchase of our new phone system and streamlined communication between the two locations. They now provide all our communication needs. If you need reliability, performance and great hometown service, we highly recommend Electronet. Peter Cizdziel G e n e r a l M a n a g e r, C . O . O .

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 6

DECEMBER 2011 – JANUARY 2012

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CONTRIBUTORS Julie Hauserman is a long-time Florida writer and music lover. She was a Tallahassee bureau reporter for the St. Petersburg Times, a national commentator for National Public Radio’s Weekend EditionSunday and The Splendid Table. Her work has appeared in Family Circle, Hip Mama, the Apalachee Review, Emerald Coast Magazine, The Wild Heart of Florida, The Book of the Everglades, Between Two Rivers and UnspOILed. She is a freelance writer and political consultant in Tallahassee.

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Go to 850magazine.com and order today. Questions? 850.878.0554

Photos by Scott Holstein (Rockwell) and Courtesy Julie Hauserman and Liesel Schmidt

Lilly Rockwell is a native Texan who writes about state politics for the News Service of Florida. She has worked for the Austin American-Statesman as a business reporter and has written several feature articles for 850 Business Magazine and Tallahassee Magazine. In her spare time, Lilly loves running and competing in races, from 5Ks to half-marathons. She lives in Tallahassee with her husband and stepdaughter.

Liesel Schmidt lives in Navarre, where she spends her time writing, running and reading everything she can get her hands on. She is currently editor-inchief of Bay Area Christian Family Monthly magazine; working on getting two novels sold; and freelancing for several local area publications including The Pensacola News Journal, 850 Business Magazine and Emerald Coast Magazine.

Interested in writing for 850? Send your resumé and some writing examples to Editor Linda Kleindienst at lkleindienst@rowlandpublishing.com.

850 Business Magazine

DECEMBER 2011 – JANUARY 2012

850 THE BUSINESS MAGAZINE OF NORTHWEST FLORIDA

December 2011 – January 2012

Vol. 4, No. 2

Publisher Brian E. Rowland Editor Linda Kleindienst designer Saige Roberts Contributing Writers Laura Bradley, Lee Gordon, Julie Hauserman, Angela Howard, Tisha Crews Keller, Lilly Rockwell, Liesel Schmidt, Desiree Stennett, Zandra Wolfgram staff Writer Jason Dehart STAFF PHOTOGRAPHER Scott Holstein Editorial Interns Laura Bradley, Kimberly Dantica traffic coordinator Lisa Sostre Sales Executives Lori Magee, Renee Miller, Tracy Mulligan, Linda Powell, Rhonda Simmons, Chuck Simpson, Chris St. John online 850businessmagazine.com facebook.com/850bizmag twitter.com/850bizmag

President Brian E. Rowland DIRECTOR OF Linda Kleindienst EDITORIAL SERVICES

Creative Director Lawrence Davidson ProDUCTION Manager Daniel Vitter

Manager of finance Angela Cundiff HR/Administration

DANCE

MUSIC

THEATRE

VISUAL ART

LITERATURE

FILM

SEVEN D AYS O F O P E N I NG NIGHT S presents

manager OF Dan Parisi INTEGRATED SALES

CLIENT SERVICE Caroline Conway REPRESENTATIVE

assistant Saige Roberts creative director Marketing and Media McKenzie Burleigh Development Manager Administrator of Marjorie Stone Sales and Events TRAFFIC coordinator Lisa Sostre

graphic designers Jennifer Ekrut, Laura Patrick, Shruti Shah

Production Specialist Melinda Lanigan Network Administrator Daniel Vitter RECEPTIONIST Amy Lewis

The Soweto Gospel Choir Thursday, February 9 / 8PM Ruby Diamond Concert Hall "Spirited and spectacular"

— NEW YORK TIMES

www.tickets.fsu.edu 850.644.6500 8

DECEMBER 2011 – JANUARY 2012

For a complete festival list, visit our website:

www.sevendaysfestival.org

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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 December 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 $30 (SIX issues) 850businessmagazine.com 850 Magazine can be purchased at Books-A-Million and Barnes and Noble in Tallahassee, Destin, Ft. Walton Beach, Pensacola and Panama City and at our Tallahassee office.

Proud member Florida Magazine Association

From the Publisher

Learning To Zig While Others Zag

Photo by Scott Holstein

The Jim Moran Institute for Global Entrepreneurship and the Florida State University College of Business this

summer introduced a four-part lecture program — the Advice Straight Up Speaker Series — to bring nationally-known business experts to town to share their insights and advice on the fine art of running and operating a business with our region’s entrepreneurs. The idea is to provide practical advice for surviving and thriving in today’s aggressive business marketplace. Rowland Publishing and 850 — The Business Magazine of Northwest Florida immediately agreed to become a sponsor because it was so obviously a perfect fit for our brand. The first speaker in the series was Dana Williams, director of marketing and communications for Southwest Airlines, who provided a candid account of Southwest Airlines’ efforts to build brand awareness and offered her view on steps that companies should take to build their identity in the marketplace from the “inside out.” Williams has more than 20 years of marketing and management experience, including 17 years at Southwest Airlines in various management positions. In her current role she heads the company’s local brand management strategy and overall local communications efforts. There was no question from the moment she took the stage about her feelings for Southwest Airlines (where her mother also worked) and her passion for the job she has. She shared the corporate priorities of Southwest, the top priority being the company’s customers, followed by employees and then the company itself. Philosophically, the company believes that if customers are well taken care of at every level of their interaction with Southwest, a strong bond of loyalty develops. This creates a solid block of

support that will not be eroded by industry adjustments or “deals” offered by other airlines to lure away customers. Southwest works hard during the hiring period to find and hire “happy people” who can deliver in a corporate culture that believes dedicated employees are a critical factor in achieving success in customer satisfaction. If you have ever flown Southwest, you immediately feel this with every employee you encounter. If the top two priorities involving customers and employees are successfully accomplished, then the third priority will take care of itself. And, it has. Southwest acquired Air Tran and is now on a growth curve at a time when most of the competition is trying to maintain their market share. Not long ago, Southwest was faced with a critical decision as other members of the airline industry began to charge baggage fees. After doing its research, the company quickly determined the public was outraged about the charge and opted to avoid the add-on fee. Company leaders calculated this decision would result in the loss of about $500 million in potential new revenue the bag fees could have provided. But after much high level discussion, during which senior managers struggled with the balance between increased revenue and customer satisfaction, Southwest decided to “zig” when the rest of the airlines “zagged.” And the company pumped millions of dollars into advertising that decision to its customers and general public. It worked, in a big way. Southwest has stayed on top of the airline industry while others were caught in a downward spiral. Williams didn’t reveal specifics, but she shared that Southwest is gaining market share. And each point it gains is a huge number. So, as you lead your business it’s important to keep in mind lessons learned from Southwest. Do not be a follower. Think about what is best for your customers and what effect your decision will have on them. Believe in what your guts tell you. Do your homework. And when you make a decision, follow through with 150 percent of your effort. Take good care of your customers and employees. Without them, your company is an empty shell.

Brian Rowland browland@rowlandpublishing.com

850 Business Magazine

DECEMBER 2011 – JANUARY 2012

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DECEMBER 2011 – JANUARY 2012

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n ews + numbers statewide

Going Up … Northwest Florida On The Move

From its population to the local job market, the 16 counties of Northwest Florida are expected to experience a growth spurt over the next five years, according to statistics compiled by the University of West Florida’s Office of Economic Development and Engagement. Here’s a look at some of the more compelling numbers — including which job sectors and population groups will be growing by the biggest percentages — along with a glimpse at how well the region’s tourism is rebounding.

Projected Job Sector Growth, 2011–1016

18%

$48,989

15%

Mining, Quarrying, and Oil and Gas Extraction 2011 Avg. Earnings

Real Estate and Rental and Leasing 2011 Avg. Earnings

$38,326

$21,288

13%

$59,056

$61,028

$21,200

11%

Wholesale Trade 2011 Avg. Earnings

$55,511

Retail Trade 2011 Avg. Earnings

$27,152

Northwest Florida’s Projected Population change 2011–2016

7%7%7%7%

22% 22% 22% 22%

-2% -2% -2% -2% -12% -12% -12% -12% < 5 Years

2011 82,724 2016 88,323

25–29 Years 2011 97,597 2016 95,618

45–49 Years 2011 99,122 2016 87,366

85 Years +

Total Population Change from 2011–2016.

2011 20,990 2016 25,542

Source: University of West Florida Office of Economic Development & Engagement

11%

Health Care and Social Assistance 2011 Avg. Earnings

TOURISM-RELATED TAXABLE RETAIL SALES

$46,289

13%

Arts, Entertainment and Recreation 2011 Avg. Earnings

$18,662

10%

Transportation and Warehousing 2011 Avg. Earnings

Accommodation and Food Services 2011 Avg. Earnings

$47,270

$20,008

7.5%

Information 2011 Avg. Earnings

Government 2011 Avg. Earnings

$49,732

$66,546

Infographics by Laura Patrick and Shruti Shah

Source: University of West Florida Office of Economic Development & Engagement

PANAMA CITY

OKALOOSA

PENSACOLA

JAN 2000

JUN 2005

Source: EMSI Complete Employment – 2011.3

6.8% 8.0%

16%

Educational Services 2011 Avg. Earnings

Tallahassee

7.9%

Source: EMSI Complete Employment - 2011.3

Professional, Scientific and Technical Services 2011 Avg. Earnings

Manufacturing 2011 Avg. Earnings

Panama City

Total Job Growth in NW Florida

160M

$42,052

Fort Walton Pensacola Beach/Destin

80M

12%

Construction 2011 Avg. Earnings

Finance and Insurance 2011 Avg. Earnings

20M

32%

$$$ PER MONTH

$22,819

Agriculture, Forestry, Fishing and Hunting 2011 Avg. Earnings

Executive Mindset

Business Arena

APR 2011

850 Business Magazine

DECEMBER 2011 – JANUARY 2012

DECEMBER 2011 â&#x20AC;&#x201C; JANUARY 2012

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Executive Mindset

) The (850 Life s urvive and thrive

Power CEO Mark Crosswhite, Gulf Breeze President and CEO, Gulf Power Company

1. iPad or Kindle:

Both. I use the Kindle reader because it is portable and you can adjust the font. I can read it when I exercise on my stationary bike for 45 minutes every morning. I use the iPad mostly for work.

2. College Major: History.

It’s what I enjoyed. The areas I enjoyed the most were Roman History and the English Middle Ages. Very random, like most things in my life.

3. First Job:

Cutting grass and doing yard work when I was 12 and 13 years old. But at 16 I was the maintenance man at Point Mallard, a water theme park in my hometown. It had a wave pool and I actually got to be in charge of the wave pool and make the waves. I’ve had a varied career.

Photo by HOWARD ROBINSON

4. Favorite Team: Alabama.

I went to school at the University of Alabama in Tuscaloosa.

5. Describe Yourself:

There are a lot of words I’d aspire to, but I can bring it down to one word. Fortunate. I’m fortunate to have a great wife, a great family, a great job doing something I love and working with great people. Electricity is one of the marvels of the modern age. I’m proud to be associated with it.

6. Hero: There are a lot of historical folks I’d like to meet, like Julius Caesar. He always captured my imagination. He changed the world with what he did. He took some gambles he had no business taking, but he was confident in himself and he believed he was lucky, that fortune would smile on him. He would make big bets and they paid off.

7. Best Advice: Be yourself. I’ve been given big shoes to fill. But I can’t be Susan (Story). All I can be is Mark. A number of folks have told me, “Just be yourself.” 8. Parents: My father worked for the Army as a rocket scientist and my mother was a school teacher. 9. Author: I like almost

everything Barbara Tuchman has written. I’m currently reading “Operation Mincemeat” by Ben Macintyre.

10. Hobbies: I do read a lot, most of it histories or mysteries. I like to quail hunt. I really enjoy the access to water here, boating, kayaking, spending time outside with the family. My favorite way to relax is probably reading.

n his first day working as a summer clerk for an Alabama law firm, Mark Crosswhite was told to go work with the utility section. He “had a blast,” but little did he know that would start his journey to becoming CEO and president of Gulf Power Company. Crosswhite, 48, joined that law firm after graduation, but soon found himself working for Southern Company, one of the nation’s largest generators of electricity, which owns Alabama Power, Gulf Power, Georgia Power and Mississippi Power. Soon he was general counsel for Alabama Power. “Given my background, I thought that was my dream job,” he laughingly says now, a couple of jobs later, adding, “With every one of my jobs, I’ve had to reset the bar for what a ‘dream job’ is.” Gulf Power has no immediate plans to build another generating plant, but the company has purchased land in northern Escambia County for future expansion. “(At Southern Company) we are firm believers we need to keep all the arrows in the quiver,” says Crosswhite. “We need to have a viable nuclear energy program, viable natural gas option, modern coal, renewable energy and efficiency options.” — Linda Kleindienst

850 Business Magazine

DECEMBER 2011 – JANUARY 2012

Executive Mindset

Business Speak T

he world famous Harvard professor and scholar Edward O. Wilson has characterized Northwest Florida as a part of one of the most biologically diverse regions on Earth. The combination of spring-fed and black water lakes, streams and rivers layered on top of a complicated mosaic of soil types, geology and topography provides a dizzying array of habitat combinations that support rich communities of plant and animal life. Crucial to the long-term success of these diverse communities, and to the quality of life that this largely rural portion of Florida enjoys, is the protection and restoration of the water resources on which local business and agriculture interests — plus the region’s natural resources — rely. In recent decades, Florida has developed one of the most successful water resource management programs in the country. The state has been an innovator in the implementation of urban storm water, waste water treatment and reuse programs, and is a national leader in efforts to address the impact of water quality on agriculture — a major economic driver in the region and our state. Fundamental to all these endeavors is a reliance on good science and the expectation that they will result in a measurable biological improvement. The protection of these water resources is important more than ever, as we see local economies, agricultural interests and small businesses stressed to their limits. For the last three years, Florida has been engaged in a debate with the U.S. Environmental Protection Agency (EPA) regarding the adequacy of Florida’s water resource protection programs. In January of 2009, the EPA determined that Florida must develop water quality standards for nitrogen and phosphorus. Then in August of 2009, the EPA decided it couldn’t

DECEMBER 2011 – JANUARY 2012

ADA M P UTNA M Adam Putnam is Florida’s Commissioner of Agriculture. In this capacity, he oversees the Florida Department of Agriculture and Consumer Services and serves as a member of Florida’s Cabinet. He is recognized as a leader on many issues, including water, energy, nutrition and government efficiency. Previously, Putnam represented Floridians in both the U.S. House of Representatives and the Florida House of Representatives. He is a graduate of the University of Florida. He and his wife, Melissa, have four children.

wait for the state to act and chose to develop its own set of standards to impose on Florida. No other state has been exposed to this kind of action by the EPA. I believe it is inappropriate and unwarranted, that the EPA erred in judgment and that Florida is best positioned to protect its water resources. The EPA standards for Florida would deem some of the most pristine waters of Northwest Florida to be unhealthy. And taking action to meet those federal standards could force local businesses and homeowners to pay higher wastewater utility bills. Those increased fees would pay for nitrogen and phosphorus reduction technologies that, in many cases, would

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result in no measurable improvement in the health of the region’s water. Instead of increasing utility fees and property taxes to reduce nutrients to the federally imposed standards, Florida’s restoration and protection programs should focus on water bodies that are truly impaired. The biological diversity of Northwest Florida that Professor Wilson has made us aware of deserves site-specific attention to guarantee survival. I believe we must stand up in support of Florida’s well-respected track record of water quality protection and work to persuade the EPA to reconsider its earlier determination. I am confident that my counterparts with the Florida Department of Environmental Protection, working closely with Northwest Florida’s stakeholders, will produce a dramatically superior water quality protection program than any that could be proposed or developed by a federal agency. As a fifth generation Floridian, I consider the entire state my home. Since assuming office last January, I’ve been thrilled to get back out on the St. Marks and Wakulla rivers south of Tallahassee, witness the recovery of Gulf Coast community businesses from the disaster of the BP oil spill and enjoy the beauty of pristine wetland communities in many of Northwest Florida’s public forests. I have a renewed appreciation for the biological diversity described by Professor Wilson and a renewed commitment to do all that I can to ensure its health and survival for future generations. Water resources in this region and throughout the state deserve the very best protection efforts that science will allow. It is far better for those programs to be developed and implemented by our fellow Floridians than by far distant staff at the EPA. n

Photo Courtesy Adam Putnam, state Commissioner of Agriculture

ENSURING GENERATIONAL SURVIVAL

Business lending to help you ride boldly into the future. Make your next move with more financial control. Our lending experts can get you there. You have big plans for your business. We have the ways to help you achieve them with more financial control than you’ve ever had before. Whether it’s a loan, line of credit, equipment financing or leasing options, our experienced banking professionals can tailor a solution to fit your needs. And it all comes with award-winning customer service. Ready to talk? We’re ready to listen.

Treasury Management | Leasing | Retirement Planning | Custom Credit Solutions | Insurance Stop by any of our 52 convenient locations in the 850 area code to serve you. Greater Pensacola Area, Brett Barrow, 444.1510 Ft. Walton and Destin Area, Dewayne Youngblood, 833.8448 Panama City, Ryan Davis, 872.7075 Tallahassee, Darrell Fowler, 523.4648 regions.com/yourbusiness © 2011 Regions Bank. Accounts subject to the terms and conditions of the Regions Deposit Agreement. All loans subject to credit approval. Trust Services are provided through Regions Trust, a trade name for the Trust Division of Regions Bank. Investments in securities and insurance products held in Regions Trust accounts are not FDIC-insured, not deposits of Regions Bank, not guaranteed by Regions Bank, not insured by any federal government agency, and may go down in value. Insurance products or annuities sold through Regions Insurance, Inc., an afﬁliate of Regions Bank, are not FDIC-insured, not a deposit, not guaranteed by Regions Bank or its afﬁliates, not insured by any federal government agency, may go down in value. Professional rider. Do not attempt.

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DECEMBER 2011 – JANUARY 2012

Executive Mindset

Wi-Files

TO ANSWER OR NOT TO ANSWER

Wired Etiquette There’s no app for courtesy, so use some common sense By Desiree Stennett

here is only one thing worse than your cell phone ringing during an important board meeting — actually leaving the room to answer or having a personal conversation right there at the table. If looks could kill, the stares you’d get from co-workers and clients would be a death sentence. Because of the help cell phones and PDA’s can provide in the business realm, they are finding a home in boardrooms and at business dinners all over the country. Smart phones are quickly becoming the messiah, here to save the business world time and money. However, no good thing comes without its drawbacks. As people become more “wired,” the lines that distinguish between personal and professional lives blur, and problems of cell phone etiquette arise. Many are wondering if a place still exists where courtesy outweighs convenience. This savior-turned-plague has cost quite a

DECEMBER 2011 – JANUARY 2012

few applicants job opportunities and has left a bad taste in the mouths of numerous clients forced to wait while company representatives take personal or even business calls. According to Career Builder, Monster.com and Yahoo’s finance department, the use of cell phones is among the top five most common mistakes applicants make in a job interview, with some extreme cases going so far as to ask the hiring manager to leave their own office because the call is “private.” This shouldn’t be too much of a surprise since, according to a recent Pew Research study, 65 percent of Americans even sleep with their cell phones on or near their beds, never more than an arm’s reach away. Employees and job seekers are not the only ones abusing the convenience of technology. Because of the portability of our smart phones, many employers are requiring more of their employees even on days off. According to Monster.com’s HR People blog, this will most likely have many good

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employees doing job searches in their down time between phone calls from the boss. Experts urge employers to contact employees sparingly on weekends and at night. Although most would agree that cell phones are assets that certainly pay for their keep in time and money saved, many would also agree that our BlackBerries are getting a VIP treatment that can make people feel less than appreciated. “While electronic gadgets are designed to make employees more productive, they also may serve as a distraction,” says Dave Willmer, executive director of Robert Half Technology, an IT firm, after developing a national survey that showed that 51 percent of chief information officers felt that cell phones, BlackBerries and PDAs brought on a decline in work place etiquette in the last three years. “It is always a good idea to give people you’re collaborating with your undivided attention,” he says. n

Since there is not yet a BlackBerry app to alert us when our cell phone habits have crossed the line, here are a few sure-fire ways to improve your etiquette right now: 1. When headed to the boardroom, the best bet is to leave the cell phone behind. Even if it is on a vibrate setting, the temptation to check out the display to see who’s calling, text messaging or emailing could steal your attention and make you miss important information. 2. Emailing and text messaging while talking with a superior or co-worker is not efficient, it’s inattentive. Multi-tasking is an important skill for any business associate but there are times when full attention should be given to those in front of you. 3. Learn to tell the difference between true emergencies and what can wait a while. This one is for employees and employers alike. When you’re on the job, your child’s school calling to tell you that your daughter is sick is an emergency; your best friend inviting you out to lunch is not. 4. Should weekends and nighttime hours be off-limits for employers texting or calling workers? When considering contacting employees during their personal time, employers need to remember to ask themselves if the issue at hand must be taken care of now or if it can wait until Monday. Even the most dedicated employees need time away to be happy. 5. Put your voicemail feature To work for you. If you’re unsure about the importance of a personal call when in a professional situation, let your voicemail be your private secretary. 6. Ask for cell phone-free meetings. Want guaranteed peace during a board meeting or a conference? Don’t be afraid to ask everyone in the room to take out their phone, Blackberry or PDA, put it on the table and turn it off.

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DECEMBER 2011 – JANUARY 2012

Executive Mindset

It’s the Law PRO BONO PUBLICO

Donating Hours To The Poor Lawyers give back to their community by embracing pro bono work By Lilly Rockwell

earing his signature bow tie, Sandy D’Alemberte stood before the Florida Supreme Court in June to argue against the lead attorney for Gov. Rick Scott. The congenial D’Alemberte certainly wasn’t motivated by the amount of money at stake or even the exposure. He had argued before the court plenty of times. He was there to help the legal team for Rosalie Whiley, a poor blind woman who had sued over a decision early in Scott’s administration to freeze rule making by state agencies. The decision had set off a chain of events that made it difficult for her to apply for food stamps. Her lawsuit would help answer an important question over how much power the governor has to dictate state agency rules. Tallahassee-based D’Alemberte is one of the most well-known attorneys in the state. He’s the former head of the American Bar Association, the former president of Florida State University and former law school dean at FSU. Despite the clout, he and a number of other attorneys on Whiley’s case were working for free or what’s known as pro bono publico — for the public good. The fact that Whiley’s legal team was working for free is not unusual. The Florida Bar, in fact, strongly encourages attorneys in the state to do at least 20 hours of pro bono work each year and the oversight board tracks the number of pro bono hours each attorney logs. Attorneys who regularly log the most pro bono hours receive awards. Lawyers say taking on clients who cannot afford them is the most rewarding part of their jobs. Often, they say, it’s the pro bono cases that lead to greater exposure in

DECEMBER 2011 – JANUARY 2012

the media, or precedent-setting cases that change case law for decades to come. “You can really see you are making a difference in somebody’s life, or on a particular issue, as opposed to an individual case that is just about money,” said Patrick McCarthy, an attorney for Matthews, Jones and Hawkins in Destin.

PRO BONO WORK IN FLORIDA June 2006 to July 2007 Hours donated: 1,398,467 Pro bono dollars contributed: $4,446,486 June 2007 to July 2008 Hours donated: 1,489,099 Pro bono dollars contributed: $5,288,466 June 2008 to July 2009 Hours donated: 1,545,157 Pro bono dollars contributed: $4,443,830 June 2009 to July 2010 Hours donated: 1,614,676 Pro bono dollars contributed: $4,637,265

Finding Time for Pro Bono Though the legal profession has had a long history of offering services for free, it wasn’t until the 1970s that Florida began seriously examining the issue of whether there was enough free legal assistance for the poor. Finally, in the 1990s, the Florida Bar put in place a formal policy for encouraging lawyers to do pro bono work and established a way to track how much free legal assistance Florida lawyers provide.

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There are a variety of ways a Floridian who cannot afford a lawyer can get one. If it’s a criminal case, a public defender is appointed. If it’s a divorce or civil case, often a legal aid agency provides legal assistance for free and can refer certain cases to private firms that have agreed to take on pro bono cases. The amount of pro bono cases an attorney takes on varies, depending on the size of the firm and the emphasis it places on pro bono work. “I try to make it standard practice to keep two pro bono cases going at all times,” said Wanda Clapp, a family and criminal law attorney in Fort Walton Beach. “It is part of my obligation as an attorney to make sure people who can’t afford representation are able to have it.” Clapp said some of her cases come to her through referrals from local legal aid agencies, such as Legal Services of North Florida, while others she finds on her own. Often, Clapp said she will consult with a new client and decide they can’t afford her, so she offers her representation for free. “I give every one of my clients 100 percent of my effort,” Clapp said. “I don’t just work on a case for a little while because they are free. If I take a case, I take it because I believe in it and I want to work on it whether I get paid or not.” At larger firms, there are often pro bono committees that track whether lawyers are doing enough volunteer work and help steer clients their way. McCarthy said when he was hired at Matthews, Jones and Hawkins, the 12-person firm had no pro bono policy. He promptly helped the firm establish one that encourages each attorney to do 50 hours of pro bono work each year.

“It sets the position of the firm. It says ‘this is important, this is equally important as making money and representing paid clients, ’ ” McCarthy said. He said the policy could help the volunteer spirit “become part of the fabric of firm culture.” Some attorneys naturally do more pro bono work because of the area of law they specialize in. Tallahassee-based attorney Lauchlin Waldoch focuses primarily on elder law. She helps families or individuals who need to set up trusts, fight abuses in nursing homes or better understand what health insurance they are entitled to. “People come to us who have no money,” Waldoch explained. She typically makes a determination on the spot whether to represent that client pro bono. Her firm, Waldoch & McConnaughhay, also regularly does volunteer work on the weekends at nursing homes, dispensing advice to those who sign up for a consultation. “There is definitely a steady stream,” she said. Waldoch said her workload is high-volume, meaning she churns through many meetings and cases in a given day, juggling as many as 100 pro bono cases at once. Managing such a high number of clients can be a juggling act. “Sometimes it requires working nights, weekends,” Waldoch said. “But you just do it. We wouldn’t ever not take on a pro bono client because we needed the money. There is always another hour in the day.”

Memorable Cases Lawyers say often it is the pro bono cases that are the most memorable or high-profile. McCarthy remembers helping secure a 110year jail sentence for a father who had sexually and physically abused his two children. He also successfully sued him for financial damages. He couldn’t undo the emotional damage, he said, but he was content that he helped the children seek justice. “One of the nice things about pro bono is you often get more satisfaction out of those than any other you might take,” McCarthy said. Clapp said she is currently working on a case to help a father regain custody of his children. “He had nowhere else to turn,” she said. “He tried legal services and his spouse had already gotten retained by them.” That conflict meant they couldn’t represent him. A domestic violence charge combined with a pending divorce meant he wasn’t granted visitation with his kids. By luck, Clapp said he found her through a friend. Clapp helped convince a judge to give him visitation rights. “That is one I can see very clearly that if he didn’t have an attorney he was really at risk of

THE FLORIDA BAR FOUNDATION Florida’s 31 legal aid agencies provide much of the pro bono work in the state. These agencies are funded from a variety of sources, such as federal, state and local grants as well as donations. But a good portion of their funding comes from the Florida Bar Foundation. The foundation receives its money from the interest from trust accounts that lawyers use to store money for clients. » Of the $99.5 million received by Florida legal services organizations in 2010, $36.6 million, or 36.8 percent, came from the Florida Bar Foundation. » More than 102,340 cases were completed by Foundation-funded providers in 2010. » Of the $36.6 million the foundation spent in 2010, most of it went to “general support grants,” with some funds spent directly on hiring legal aid attorneys, or specialized programs such as attorneys for mortgage foreclosure cases. » The most common legal aid cases fall under family or housing issues, with the least popular case type being employment law.

never seeing his kids again,” she said. So far, she has spent the equivalent of $6,000 in billable hours on that case. Sometimes, pro bono cases are the ones that grab a lot of media attention. No one knows this better than D’Alemberte, the attorney who argued before the Florida Supreme Court. He has represented several death row inmates, including William Wilton Dedge, who was imprisoned for 22 years for a crime he did not commit. D’Alemberte toiled for years on the case and eventually won a $2 million award and a personal apology from the speaker of the Florida House of Representatives. In the case of Whiley, the poor blind woman who sued Scott, D’Alemberte and the rest of Whiley’s legal team won their fight against the governor. In doing so, they set an important legal precedent for how much power a governor yields over state agencies and helped not just Whiley but scores of other people who were affected by Scott’s decision to freeze rule making. n

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DECEMBER 2011 – JANUARY 2012

Executive Mindset

Leading Healthy NON-ACCIDENTIAL INJURY

New-Age Work Accidents How to best outfit your office to prevent injuries By Angela Howard

ow much time do you spend in front of your computer? According to a poll on The New Business Blog, a whopping 65 percent of Americans are glued to their PCs for eight hours a day. A recent article in The New York Times went on to say that the amount of time people spend on the Internet has increased more than 120 percent over the last five years. Maybe that’s why we’ve seen a surge in injuries like tendonitis and carpal tunnel in those who spend the majority of their working hours in front of the computer. “Clearly, about the time we started seeing computers, we started seeing these injuries,” said Dr. David Bellamy, an orthopedic surgeon at the Tallahassee Orthopedic Clinic. I know what you’re thinking. Real workrelated injuries occur when a construction worker falls from the roof of a house, or when a city worker is half buried in a ditch, or when a firefighter is burned while fighting a blaze. Surely, sitting at a computer for eight hours a day can’t be hard, let alone a hazard to your health. But each profession has its downfalls. While blue-collar workers face the possibility of being physically injured by accidents on the job, white-collar workers deal with what Bellamy calls non-accidental injuries. These non-accidental injuries include: Tennis Elbow: When the joint rotary area of the elbow is irritated by immoderate movements. Tendonitis: Inflammation of a tendon (most commonly seen in the hands of those who work on computers). Carpal Tunnel: When the median nerve

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between the flexor retinaculum of the hand and the carpal bones is compressed, causing pain in the wrist. Non-accidental injuries can also be a pain in the back or a sore or kinked neck. It’s the latter of these that Jeanne Ragsdale knew all too well. She has always spent the majority of her day on the phone, talking with customers and vendors. And those hours spent with the receiver cradled between her ear and shoulder gave her a literal pain in the neck. “I would spend a lot of time at the chiropractor, and it was becoming a problem,” she said. Ragsdale works as an account executive and procurement agent at Aegis, an information technology company based in Tallahassee. The company’s 13 staff members spend a good portion of their day on the phone and the computer, working to solve the IT problems of companies locally and providing web support to those nationwide, so it makes sense that these folks would see their fair share of cricked necks, sore backs and stiff joints. The folks at Aegis aren’t alone in their plight, though. On St. George Island, Rose Drye and her team at Prudential Shimmering Sands Realty work day and night to help people into and out of the home of their dreams. That often translates into many hours in front of the computer and on the phone. “I spend about half my time at the computer, the other half on the phone, meeting with sales associates and going over paperwork,” said Drye, who is the broker/manager of the realty office.

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Handling the Problem For Drye, relief from work-related problems like a stiff neck or a sore back come in the form of a time-out. “Stretch, walk, get outside if possible” are Drye’s solutions to a long day inside. While the agents in her office spend a fair amount of time on the computer inside, Drye says they are able to balance it out with time spent showing homes and properties to customers in the area. “Typically, the sales associates are in the office only when they are on the schedule or if they are meeting customers,” she said. But for those at Aegis, computers are what they do. That’s why Blake Dowling, Aegis’ chief business development officer, says the company does what it can to make the employees as comfortable as possible while they work.

Additional Tips from Dr. Bellamy:

» Get up and walk; adjust your seat, especially if you sit the same way for more than 30 minutes. » Keep moving so the same muscle group is not overworked. » Don’t ignore problems. Document them and report them. » More than half of those who suffer can get better just by making adjustments at work. » You don’t need an expensive screen elevator to raise your computer monitor, just put last year’s phone book under it.

“If you need a headset or a wrist rest or a new chair, we will do our best to get that for you,” Dowling said. A comfort feature like this was just what Aegis account executive/procurement agent Jeanne Ragsdale needed. At first, she didn’t even associate the problem with work, but then she was given a headset to use and she realized the two went hand in hand. She explained that the speakerphone on the landline in her office is not very reliable and it is sometimes a distraction to use when others are in the room, so her supervisors decided to get her the headset so she could stay hands-free and her phone calls with customers and vendors could remain private. That headset was given to Ragsdale about six months ago and, at least for longer calls, it makes all the difference in the world. “Once I started using [the headset], I noticed there was no more crick in my neck,” she said. But the help doesn’t stop there. Dowling says the family-friendly company also allows its employees to relax in their own way while on the clock, by permitting them to listen to an IPod or take a walk to the nearby coffee house to get a cup of Joe. Aegis even holds Yoga classes for any interested employees at closing time on Monday and Wednesday nights.

Tips for Reducing Non-Accidental Injuries Bellamy said problems often arise because, “Some folks just sit down at the desk provided them and don’t take the time to make the adjustments for them.” Using equipment that is not adjusted for you specifically can make for tough working conditions, especially as the days and weeks wear on. But there are a number of ways to reduce your risk of suffering a nonaccidental injury at work. Bellamy explained that it all starts with the layout of your office or workspace and the items in it. First, you need to adjust your computer monitor so that it is about 18 inches from your eyes and just slightly lower than eye level, so that you’re actually looking at the top of the monitor. Also check the positioning of the keyboard and the mouse. Bellamy says they should be placed close together and should be about even with your elbows so that you are not stretching to reach them.

Next on your checklist should be finding a good chair, preferably one that is adjustable in height. “They all need to have that little lumbar support that supports your lumbar spine,” Bellamy said. Your chair should also have padded arm and/or elbow rests and a waterfall-type front to take the pressure off the backs of your leg. Finally, Bellamy suggests keeping items you use most often close by or within arm’s reach and things you use less often on a shelf farther away.

Who Should Pay for Personalized Office Space? We’ve covered the myriad of ways to personalize your space when working in an office in front of a computer or on the phone for long periods of time, but who picks up the tab for new gear? Sometimes, a company will ante up. “A lot of big companies have ergonomic consultants,” said Bellamy. “Within reason, most employers do their best to make the workplace ergonomically correct.” Despite their smaller size, Drye says her company will do “whatever is necessary and reasonable” to accommodate employees, while Dowling said Aegis would and has paid for headsets, wrist rests and new chairs if an employee expresses a need. “You have to get the creative juices flowing and the chair, the arm rest, the windows help get the juices flowing,” said Dowling. However, Bellamy says not all companies are willing or able to do this. “Sometimes employers get in a tough spot,” he said. “There may be some places that say, hey, you can have whatever mouse you want, but you have to buy it.”

this and put off treatment far longer than they should. According to the Florida Division of Workers’ Compensation, employees have up to 30 days to report a claim to their employer, and that employer has up to seven days to inform the insurance company of the report. The Division of Workers’ compensation also says “all authorized medical bills should be submitted by the medical provider to your employer’s insurance company for payment,” meaning the employee does not have to pay for his or her care. Blake Dowling says since Aegis’ inception 15 years ago, no one has ever complained of a problem like this, but he says the company would pay for a chiropractor or other medical intervention if it was needed. Likewise, Rose Drye has never had an employee come to her with a non-accidental injury. But the fact that the state of Florida is looking out for its employees is something many workers will undoubtedly take comfort in knowing. n Find Additional Information at:

nih.gov cdc.gov ninds.nih.gov/disorders/carpal_tunnel/ detail_carpal_tunnel.htm mayoclinic.com/health/back-pain/ mayoclinic.com/health/neck-pain/

Costs Related to Non-Accidental Injuries and Worker’s Compensation In Florida, if your problem starts at work it’s covered under worker’s comp, Bellamy explained. That’s great news for those suffering from non-accidental injuries; however, he said many people do not know

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DECEMBER 2011 – JANUARY 2012

FINANCIAL PLANNING

DECEMBER 2011 – JANUARY 2012

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Finding the Perfect Recipe for Success:

Financial Planning — and Other Major Decisions — for Small Business Owners By Tisha Crews Keller and Linda Kleindienst

ew things loom larger in a small business owner’s agenda than a financial planning exercise. Here’s a quick test. Are you on top of these key financial components for your company: banking and investing, retirement plans, insurance, succession planning and general financial health? Unfortunately, most of us procrastinate any real strategizing until we are forced to do so. Sure, while planning a startup, entrepreneurs line-item basic costs and strategies to cover them. But rarely does the planning ever — even years into a mature business — develop into

HAS YOUR COMPANY COMBINED ALL THE RIGHT INGREDIENTS TO ENSURE A HEALTHY, SUCCESSFUL BUSINESS?

Illustrations by LAURA PATRICK

a comprehensive package that will protect a business come feast or famine. The sad truth is, as a business owner, you’re more likely to be occupied with generating sales leads and developing new products than planning for Scenarios A through C. Things can go wrong quickly in small business, but problems may be overlooked until the damage is done. “Business owners are entrepreneurs,” points out Ron Moliterno, Division president for BancorpSouth in Destin. “More often than not, they get into a business because they know how to make something or sell something. It’s unusual to see their talent lie in planning or finance.” What’s more, he adds, business owners will find someone to help them make a product or someone to sell that product, but rarely do they plan and understand the financial end of the business. “Often, CPAs are too costly and the companies are too small to hire a full-time CFO,” he explains.

“These tasks are usually assigned to (sometimes inexperienced) office staff or done as time allows by the owner.” Moliterno says the danger with this approach is that accounting systems such as Peachtree or QuickBooks are used — and they appear adequate — but the product is only as good as the input. This can result in problems such as lack of quality information (a necessary management tool), inability to adequately measure performance and stale, dated or confusing information. Financial industry sources such as Bankrate.com offer suggestions for savvy small business owners. The short list is basic and simple, but should not be overlooked: cash flow analysis, feedback from customers (and employees!), industry benchmarks, timelines and financial ratios customized for your company. Between them, these tools offer valuable data to help you assess where you are now, where you are going and how long before (or even if) you get there.

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FINANCIAL PLANNING

Planning for Now and Later Many business owners don’t plan past operating expenses — what they need now for the things they can see. But sound financial planning needs to extend beyond the known, into the realm of “what if.” According to Shane O’Dell, financial advisor with The McGovern Group, Merrill Lynch in Fort Walton Beach, some of the most common financial planning pitfalls business owners experience are, “A lack of execution of the business plan, not having enough liquidity … and not properly planning for all the economic and legislative uncertainty.” This “uncertainty” extends to economic factors and even regulatory and taxing changes, such as healthcare mandates and other programs. If an owner wants to retire, the primary goal should be to have a plan well in advance of their last day of work — and to methodically work according to that plan. “Wealth management is about taking action now to create the future you envision,” says O’Dell. “For this reason, business owners need to consider when they can retire, how much money they will need to save, how they will manage retirement cash flow, how much money they can realistically spend while retired and how much risk they can afford to assume, based upon these goals.” One consistent theme in financial planning advice is that “cash is king.” Properly understanding and managing cash flow and liquidity is one of the most common pitfalls of small business ownership. “A business generally struggles or fails because it does not properly plan and project cash flow needs and expectations,” explains Mike Freeman, chief financial officer of Acentria in Destin. “Obligations are paid from cash, not profits. A business might be able to show a profit on paper, but it may not have planned properly for the differentials of cash flow throughout the year.” For example, a business with inflows of $25,000 in a given month will count that as profit. But if the utilities, lease payment, materials, payroll, insurance and other expenses total $25,000, then there is no profit there. Learning how to plan for the varying tides of commerce is one part education and two parts experience. Terri Jackson, a CPA with Jackson Financial Services in Tallahassee, says knowing this

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information too late — or not at all — can be the beginning of the end. Businesses need to continually adjust their planning as market conditions change. “Being too slow to respond to trends can cause a slow decline and the eventual demise of a business,” she says. Unfortunately, many people don’t get help until they are in trouble — and for many it’s too late. According to Jackson, the amount of cash a business needs to have on hand varies by the industry and company. For example, a company that collects receivables in 30 days needs less cash than ones that have to wait 90 days. Add to this the variable of short-term lines of credit. If you have access to them, then you might need less cash in the bank. But all companies need to plan for seasonal adjustments, she says. “If you know your business slows down dramatically for several months out of the year, you need to keep enough cash and lines of credit available to stay in business until it picks up,” Jackson explains. Having enough cash on hand to weather a problem is critical, experts agree. But many businesses don’t have any cushion at all. “For a small retailer with less than five employees, three to six months of operating expenses in reserve can be sufficient,” explains Stephen Cutright, a Tallahassee CPA. “For medium-sized businesses with 10 to 15 employees, they need to have at least 12 months worth of expenses in the bank.” Many Northwest Florida businesses believe that if they weathered recent hurricanes, economic downturns and oil spills, they are strong enough to survive. And, in large part, that’s true. But beware of risks that aren’t always on the radar, says Cutright. “Business owners tend to forget about sometimes rare but nonetheless unavoidable expenses, such as fluctuations in the economy, equipment expense and repair, key employee loss and rise in commodity prices,” he says. “Most of the businesses that survived the past few years had low debt and high reserves.” In fact, losing key employees or those with great efficiencies and knowledge can be one of the most challenging problems for a small business. “Staffing is the quickest solution for trimming expenses, and for most businesses, that’s the most expensive budget item,” Cutright says. “But staff turnover is one of the most expensive things a business can go through.”

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Financial Planning Bankrate.com’s Toolkit for Success The savvy small business owner has five basic types of tools: Timelines — Write down on your calendar dates and deadlines for important milestones, including numbers, dollars and dates when things should be completed. Ratios — You have a wealth of information in your ledgers and balance sheets. Stack them against each other to measure your success. Cash flow, profit and loss statements — These give you a snapshot of where your business is right now. Ideally, you should check these monthly at minimum, although many people suggest weekly or even daily check-ups. Customer feedback — Just because you’re not hearing a complaint doesn’t mean everything is ok. Learn about yourself and your competitors through regular opinion-checking with your customers. Employee feedback — Don’t forget about your most valuable asset. Employees notice things you might overlook. What’s more, an unheard employee is rarely a satisfied one. From Bankrate.com.

When you factor in training, expertise, tacit knowledge, team dynamics and other intangibles, employee changes can bring your oncethriving company to a grinding halt. And your customers are very likely to notice.

Finding a Banking Partner

“Your financial statement is a picture of your company’s health … there’s so much information there … ”

When it comes to banks, there are plenty out there waiting for your business to come knocking. The key thing to remember is that one size does not fit all. In other words, look for a bank that wants to sit down with you and work out the best plan for your company. And remember that a bank should be there to make your life as a business owner easier. Whoever you choose should be supportive — and reliable. “A lot of people think of banks as only a loan source, but they need to look at a variety of services,” says Skip Smith, senior vice president of business banking at Capital City Bank. “This is really a relationship business. All businesses are unique. There is the world of packaged banking services, but all businesses don’t fall neatly into the same box.” Many new business owners have never had much interaction with a bank, so it’s important for them to find a good financial partner, adds John Medina, president of Six Pillars Financial Advisors, a financial advisory and investment firm that is a wholly-owned subsidiary of Florida Commerce Credit Union. “What we’re trying to do is provide holistic or comprehensive financial planning for small business,” he explains. “We’re involved in long term relations with long term goals.” Banks offer a variety of services that are important to a business. There is the obligatory business checking account — check to see if the bank will offer you an incentive to keep a certain amount in your account and be certain to ask about fees — and there are online banking resources and electronic systems that allow you to make deposits without even going to the bank. Banks can offer you loans, a financial analysis of your company and sometimes even an overview of your industry. Debt management and cash flow management are important issues for businesses to discuss with a professional banker. “One of the first things they need to do is figure out what they’re going to get out of (the

business),” coaches Medina. “They have no idea how they’re going to sell or when they’re going to sell. We work with clients to make sure they understand this is their retirement and they need to treat it as such.” Before you go looking for a bank, it’s best to do some of your own research. With the Internet, it’s easier than ever. “The information is more readily available now than ever before,” says Smith. “There’s financial analysis and information that’s a good idea for someone to look through before they go in search of a bank.”

Slicing it Right Knowing what percentage of savings, investments, leverage, etc., to hold can be a daunting challenge. And it changes according to your industry, too. This is where comparison with others in the same arena is critical. Experts call it “benchmarking” and all of them say it’s an absolute necessity. Business owners and managers need to have a great relationship with their financial reports. In fact, many CPAs don’t see how you can stay in business long without this key information. “Your financial statement is a picture of your company’s financial health,” says Cutright. “There’s so much information there, but many people don’t read it.” The balance sheet shows your assets and liabilities, but it’s only a snapshot in time, he explains. The P&L (profit and loss statement) is your ins versus outs for a given amount of time, but this can be even more dramatically instructive if you compare these numbers against something else. “The key thing is comparing your report numbers to another figure — your budget expectations, past years or industry benchmarks, which is what other companies are spending in these categories,” Cutright says. It’s important to study your specific industry and not just the overall economy when making financial decisions. Actual percentages for budgets vary greatly by industry, so you must benchmark by industry and geographic region, if you can. Talk with friendly competitors, your CPA, trade associations, local economic agencies and others to gauge how well your company is doing when compared to others in the same field. This information is not only useful, it’s critical for decision making and planning. No matter what, when planning your

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budget and expenditures, don’t ever forget innovation and determination. “Adaptation and perseverance are the two qualities that are essential to navigating a difficult economy,” says Freeman. “Adaptation pertains to your willingness to consider new approaches to your business model. Perseverance is related to hard work and hard choices. Unfortunately, painful decisions might need to be made in order for your business to survive.”

The Light at the End of the Tunnel If you’re in business, what’s your exit strategy for getting out of business? Many small business owners plan to sell their company in order to retire. “Sure, they might invest in various retirement vehicles … but they understand that the greatest return is generally the sale of their business,” Freeman explains. “If that’s their plan, they need to get professional guidance as it relates to the marketability of their business to prospective buyers and a potential return on a successful sale.” A typical retirement plan for a small business owner, he says, is the equity and value accumulated within their business. “However, most [owners] overestimate the value of their business,” Jackson points out. Because of this, she encourages them to personally take advantage of the various retirement accounts available to them such as 401(k), SEP and Simple IRAs. Planning to sell a business is something you should take as seriously as you did starting one.

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“Owners can increase the value of their business they plan to transition or sell through good recordkeeping and budgeting — buyers do get skeptical — and by maximizing profits and lowering expenses,” outlines Cutright. “Debt raises risk and lowers equity.” And your business is only worth its profit, Cutright says. That’s why small businesses almost always ultimately sell just assets. Cutright suggests a good marketing campaign is essential to sell your business, and that’s usually done through a broker. “Suppliers, competitors, or even employees can be your best buyers,” Cutright points out. O’Dell at Merrill Lynch specializes in designing exit strategies for business owners. “We assist business owners in planning an exit strategy in the most efficient manner possible,” he explains. That always means having a plan well in advance of their last day of work. According to O’Dell, business owners should consider many things when deciding when and how to retire, such as:

» When can you retire? How much money

do you have and how much will you need?

» How much money can you save? » How will you manage your cash

flow

during retirement?

» How much will you be able to spend to maintain your current lifestyle?

» How much risk can you afford to assume, based upon your goals?

» Do you want to create a personal legacy through wealth transfer or philanthropy?

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Benchmarking Your Business To compare your business with others in your industry, try these sources from Bankrate.com. Published profit ratios: • Industry Norms and Key Business Ratios — Financial ratios of 800 different industries. Dun’s Analytical Services, Murray Hill, N.J. • Analyst’s Handbook — Statistics and ratios for industries in the S&P 500 Standard & Poor’s Corp., N.Y. • Almanac of Business and Industrial Financial Ratios — Recent figures about an industry’s performance, using IRS data. Leo Troy, Prentis Hall, Englewood Cliffs, N.J. • US Industry and Trade Outlook — Evaluations and projections of major segments of the economy. Standard & Poor’s, U.S. Department of Commerce, DRI/McGraw-Hill, N.Y. Electronic resources: • TechSavvy.com — Searchable database; free subscription • Bureau of Labor Statistics — Government statistics and reports • US Census Bureau — Data on agriculture, manufacturing, construction, retail, wholesale goods From Bankrate.com.

FINANCIAL PLANNING

Opportunity for Growth If you aren’t yet at the exit strategy stage, then you’re likely still in growth mode. Startups looking to expand have different needs and methods than do mature companies looking to grow. And, surprisingly, many companies have seized the opportunity during the past few years. “Actually, difficult economic times can present opportunities for mature businesses with capital,” Freeman points out. “If you think about it, a mature business is generally going to have access to capital — and likely cheap capital — and it will have a mature infrastructure allowing for expansion.” But Freeman cautions that a mature business needs to understand the relationship between leverage and profitability when expanding. At any stage, a general rule of thumb is to have cash and other short-term assets available to satisfy obligations as 2:1. This is commonly called a Current Ratio in the financial world. Like new businesses, things can get dicey rather quickly when an established company expands. Be careful about taking on more debt than you can support, warns Jackson. “That debt can quickly snowball if they’re not careful,” she adds. Moliterno has also seen his share of expansion woes. “I have seen companies grow themselves right out of business,” he says. “They lose sight of costs, processes, capital and diversification.” Additionally, he says businesses should strive to limit any one customer to no more than 10% of total sales, which places them in a very vulnerable position. Having a one-dimensional goal of growth is dangerous for any company.

Retirement Planning In today’s marketplace, keeping good talent depends upon having a solid retirement savings opportunity and providing tax shelters for employees, among other things. The priorities for most small business owners include managing taxes, rewarding employees and planning for the (financial) future. These goals not only protect the business owner, but they provide for long-term investments in people and the business as a whole. The good news is, a comprehensive retirement plan accomplishes all of these things at once. The IRS notes that Americans will need 7090 percent of their preretirement income to

maintain the current standard of living when they stop working. And, as an employer, you have an important role to play in helping your workers (and yourself) save. Retirement plans can have significant tax advantages, such as contribution deductions from employer income; pre-tax employee deductions lower your overall employee tax rate; and money in these plans grows tax-free. The government provides many incentives for setting up retirement plans in small businesses. For instance, “catch-up” rules allow employees (and owners) age 50 and older to set aside additional contributions for retirement. The “Saver’s Credit” allows tax credit for certain low and moderate-income individuals (including the self-employed) who make contributions to their plans. Finally, the ordinary and necessary costs of setting up a retirement plan for your business can be used as a tax credit for small employers. In addition, up to $500 per year for the first three years of the plan may be credited back to the business. Many financial professionals warn against depending completely on the sale of your business for your retirement income. Because so many variables can affect the value of your business, shrewd owners put aside money in their own retirement accounts for their golden days. There are three main categories of retirement plans available to small business owners. Of course, you’ll want to consult a financial professional to help choose the plan that’s right for your business. Most small businesses use Individual Retirement Accounts (IRAs), defined contribution (DC) plans, or defined benefit plans (also known as traditional pension plans). The options for small business retirement include: ayroll Deduction IRAs. P Even if an employer doesn’t want to create a formal retirement plan, it can allow employees to contribute to an IRA through payroll deductions. Simplified Employee Pensions (SEPs). SEP allows employers to set up a type of IRA A or themselves and each employee. Employers must contribute a uniform percentage of pay for each employee, even though they don’t have to make contributions every year. SIMPLE IRA Plans. his option is for employers with fewer T than 100 employees. It is a type of IRA allowing employees to contribute a percentage of their salary and requires employer

Key Issues in Financial Planning for Small Business Budget and benchmark. For a small business to be successful there needs to be a financial roadmap and checkpoints along the way. That means having a budget and comparisons to measure performance against industry standards and performance goals of the business itself. Understand your financial statements. Many small business owners don’t fully understand their financial statements or read them on a regular basis. These provide a wealth of information on the financial health of a business. Debt = risk. Don’t underestimate the risk associated with debt. Be willing to grow your business more slowly using cash from profits to minimize risk and build financial stability for long-term sustained growth. Allow time to work on the business, not just in it. Owners of small businesses often see their time consumed by everyday tasks to keep the business running. They don’t spend adequate time monitoring and planning for financial growth and the health of the business. Allow time for updating business plans, reviewing budget and benchmark reports and meeting with key partners, employees and advisors responsible for implementing those plans. Plan for profit. A successful business not only compensates the owners for the work they perform in the business but provides a profit above the salary of the owner. Small business owners often think that if the business pays them a salary, all is well. But it is a profitable business that has value, so when budgeting, plan to have a profit above owner compensation. Build a reserve. Solid business financial planning includes setting aside some profits in an “emergency fund” so that unexpected expenses don’t cause a crisis in cash flow. Having a cash reserve in a business is just as important as having one at home — to keep a short-term problem from derailing long-term plans. Have a good team. It is important to have a good team in place to develop, monitor and grow a business financially. That team includes your business partners, employees and professionals. Reward employees so that if they help make the business successful they participate in the profits, as well. — Stephen Cutright, CPA

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DECEMBER 2011 – JANUARY 2012

FINANCIAL PLANNING

contributions as either a match of up to 3 percent or a fixed contribution of 2 percent of compensation for all eligible employees. 01(k) Plans. 4 These have become extremely popular for small businesses. Employees can choose to defer a portion of their salary. Employer contributions and pretax deferrals are not taxed by the Federal Government or by most state governments until distributed. S afe Harbor 401(k) Plans. hese plans encourage participation and T savings among rank-and-file employees and require employer contribution. P rofit Sharing Plans. mployer contributions to profit sharing E plans can be discretionary. Usually, there is no set amount that you need to contribute each year. D efined Benefit Plans. S ome businesses like the advantages of the traditional pension plan. For instance, employees often prefer this type of retirement plan to others available. When looking at options for your business, consider your company’s size, financial situation, number of employees and how well you will be able to comply with oversight and administrative responsibilities. These vary with each type of plan. It’s also important to be able to protect your plan from creditors and to limit your own financial responsibility to the plan. While retirement planning is a near requirement in today’s workplace — most employees demand it — you must also be able to afford to adequately fund the rest of your business. Keep in mind, though, that most small businesses believe that a good, solid retirement plan is key to keeping talent and providing their own piece of mind for the future.

have required company owners to make sure the person who issues checks does not sign them, among other things. While simple, these process changes were too much of a burden on the business owner — and the premium probably wasn’t something he wanted to pay, either. The business had a $10,000 limit built in to its Business Owners Policy (BOP), which includes general liability and property damage. One day it was discovered that a computer hacker had copied keystrokes on the computer and gained access to the company’s bank password information. The hacker was able to transfer $80,000 from the business account before it was caught. Because of the limits to their BOP, they were reimbursed at only $10,000. For commercial insurance agent Maria Hendrickson, this is not an unusual scenario. “Business owners don’t always educate themselves on what’s available and what could happen,” she says. “They are often penny wise and pound foolish.” Hendrickson, principle of Hendrickson Insurance Services, Inc., in Tallahassee, has seen over and over again how one quick decision at budget time can have major repercussions on a business’ bottom line. Many business owners think they can put off investing in insurance coverage because they are small, or they are a start-up. Not so, says the industry. “The needs of a start-up are not that different from a business that’s existed for several years if the exposures to loss are similar,” says Steven Barone, Sr., president and managing principal at Whitney Insurance Agency in Destin. “For example, two restaurants, one just opened and one has existed for 10 years. Both serve lunch and dinner and alcohol. Both have 10 or more employees.

Commercial Insurance Many small business owners think of insurance as yet another bill on the desk every month, money paid into the ether for scenarios that will likely never happen. And some do get by with that belief. Still, others have a game-changing experience like this one: A real estate company did not have a crime policy in place for its business. This would

DECEMBER 2011 – JANUARY 2012

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Both have cash exposures. So, both need Property, Liability, Worker’s Comp, EPLI, etc.” Insurance experts agree that there are a few types of insurance coverage that every business needs, regardless of size, age, or industry. For example, General Liability coverage is something nearly all businesses need before the door opens. This policy covers negligence and liability, including bodily injury and property damage. Commercial Property Insurance and Business Income Insurance are also needed. The latter pays your key employees and expenses if your business can’t function due to fire, natural disasters, etc. A coverage everyone is familiar with is Worker’s Compensation. However, not every company has a policy. Sure, if you are in the construction industry or have more than four employees, you must have coverage. But agents like to remind business owners that even if you’re not required to have WC coverage, you still should. “Business owners need to realize that even if they don’t have Worker’s Comp insurance, they still have to pay if an employee is injured on the job, regardless of the company size or industry,” warns Hendrickson. Both Hendrickson and Barone say Employment Practice Liability Insurance (EPLI) is vastly overlooked. EPLI covers the business for hiring discrimination, employee harassment and negative hiring/firing practices. If you have employees, both suggest you invest in this tool. Other more common forms of insurance include: rrors and Omissions (EO): covers your E professional mistakes and is especially important for insurance agents, attorneys, CPAs.

BE CAREFUL ABOUT TAKING ON MORE DEBT THAN YOUR COMPANY CAN SUPPORT.

D irectors and Officers: you should have this if your company has a board or if you’re serving on another company’s board. C ommercial Auto: auto insurance for commercial vehicles. C ommercial Umbrella: a blanket policy that includes liability over and above the rest of your coverage, in case those limits are reached. ninsured Motorist: this very important U coverage is critical for many businesses — those that purchase minimal limit of UM coverage can be hit hard when injuries are sustained in an accident. I nland Marine: this coverage insures construction equipment, delivery contents, and more. P rotective Safeguards Endorsement: if your alarm or sprinkler system isn’t activated or working, you may not have a viable claim during a fire or burglary. This endorsement protects you regardless. While it’s clear a business could go broke with insurance premiums, it’s important to figure out the amount and the products that will protect your business should the need arise. To determine the amount of coverage you need, consider what you do and your financial statements. “I look at a business and what they do,” Hendrickson says. “Then I look at the gross revenue, the property value and the payroll to determine what they need as a baseline.” These calculations help determine your general liability, property and Worker’s Comp insurance. Regardless of your industry, these are your baseline. And your agent will want you to consider ELPI and EBL (Employee Benefits Liability) as well. As for whether start-ups will want different coverage than mature companies, that’s a reality. “It is different in that mature businesses will need the coverage of a start-up,” says Barone. “But they also need additional lines of insurance coverage added as the business grows.” Keep that in mind as you build-out a new lease space, you add a delivery service, hire a new type of consultant, or expand your seating and acquire a new liquor license. Every new possibility also comes with increased risk. Ask yourself if your business is still covered for the possibility (or eventuality?) of a claim. n

Are You Prepared for Departure? Preparing for your (untimely) departure makes good business sense

control of your business is not something that can be successfully accomplished overnight.

When Dr. Joel Shugar tragically died in a skydiving accident, he left not only grieving relatives, friends and patients; he also left the eye surgery institute he founded without its leader. Other medical professionals stepped in to carry on the work, but Shugar’s death illustrated the vulnerability of almost any business. What do you do when the senior executive (and often the founder) suddenly dies or is no longer able to function as the leader or simply wants to step down? What kind of succession plan will allow the business to carry on? A business succession plan develops from a process, often involving a series of tough decisions, legal documents, insurance policies or investments. In it a business owner arranges for the transfer of the two most important aspects of a business: power and assets. The primary benefits are to maximize efficiency and profit during a transition of management, and to protect the business in the case of the owner’s death or disability. Changing of the Guard No matter who takes over a business, establishing a plan of succession allows for a more seamless transition when the time comes for a changing of the guard. A structured transition provides ample opportunity for the business to address future goals under new leadership, as well as for the successor to learn the nuances of the business, build relationships with existing customers and suppliers, and gradually grow into the role of management. Sell Strategy Rather than passing a business along to family, many business owners decide to sell their business either to a competitor or other outsider, or through public stock offerings or employee stock ownership plans. A succession plan is an excellent vehicle for business owners to arrange a sale, and even guarantee themselves a source of income after retirement. For example, numerous business succession plans provide the business owner a position as CEO or on the board of directors, away from the everyday grind, while still reaping the benefits of a positive cash flow. A succession plan will put the business owner’s wishes on paper and put them in motion, turning the transfer or sale of a business into a series of events, instead of a scramble to figure out the next step. Remember, selling or transferring

Handing It Down You are not immortal. What better way to leave your legacy than through your business? It is critical that you protect your business and your family in the event of your untimely death or incapacitation. The fact is, a business is often the largest part of its owner’s estate. If the owner dies, estate taxes can eat a large portion of that estate. This situation, in turn, can force the business, including the owner’s family and partners, to take on substantial loans, or even worse, liquidate, just to pay the taxes and make ends meet. Your business succession plan can serve as a means to protect both the assets of the business and the income generated by it, often by setting up life and disability insurance on the owner, or by using other investments such as annuities. These instruments can provide the capital to pay taxes, service debts and see the business through the difficult times associated with any sudden change in structure. Your financial advisor can help you create a plan that fits your needs. Plan Early, Plan Well Succession plans can offer tangible advantages to new businesses. Businesses with succession plans generally have an easier time obtaining credit from lenders. Also, having a succession plan could inspire your lender to provide you with the option of foregoing the expense of keyperson life insurance, i.e., life insurance on the business owner, should you need the extra funds in these cash-strapped times. So where do you start? Get organized. Decide what you want to accomplish with your business. Arrange a meeting with your financial advisor to discuss your goals. Your financial adviser will probably recommend that you also contact your attorney, accountant or insurance agent. The most important point is that the issues should be worked out in anticipation of the change, not in reaction to it. The biggest step in forming a succession plan is getting organized, and many people find that the organization required in formulating a succession plan makes their business stronger by forcing them to set goals and stick to them. The basic goals of a business succession plan are not all that different from the goals of a will, and the similar peace of mind it brings is well worth your time. You do have a will, don’t you? — Paul Norman

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When Planning for the Financial Needs of Your Business – and Yourself –

Here’s Who to Call in Northwest Florida.

Florida Commerce Credit Union Sherwood Brown 850-488-0035, ext.3565 www.FiredUpCommerce.com or www.ﬂoridacommerce.org

North Florida Financial Corporation Courtney E. Harrison 850-562-9075 www.northﬂoridaﬁnancial.com

S PEC I AL ADVE RT I SI N G SE C T I ON

O’Sullivan Creel Wealth Advisors, LLP

FINANCIAL PLANNING 30

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Larry Hicks, CPA, PFS 850-470-5555 www.ocwealthadvisors.com

FINANCIAL PLANNING SPECIAL ADVERTISING SECTION

Florida Commerce Credit Union Business Services Manager, Sherwood L. Brown, CFP

WHAT SERVICES DO YOU PROVIDE? We provide financial solutions to a wide variety of businesses. My specialty is businesses with less than $5 million in annual sales. HOW DID YOU GET INTO THIS PROFESSION? I find it rewarding to help others realize their financial goals or simply making life better for them. I also enjoy the varied tasks one encounters in this career. There is always something different to do. HOW WOULD YOU DESCRIBE YOUR BUSINESS PHILOSOPHY? I uncover the needs of my clients and then work with them to meet those needs through persistence, consistency and follow-up. HAS YOUR BUSINESS EXPANDED RECENTLY? I came from a much larger financial institution that was more restrictive. But in 2011, at Florida Commerce, I have loaned out more to businesses than I did in the previous three years (2008-2010). HOW DO YOU MEASURE SUCCESS? Meeting my goals, both personal and professional, and monitoring how many existing clients come back to me or refer others to me. HOW LONG HAVE YOU WORKED IN YOUR FIELD? For 22 years, 21 of them in this region. WHAT IS YOUR EDUCATION AND BUSINESS BACKGROUND? I have a Bachelor of Science from the School of Business and Industry at Florida A&M University. I have held a CFP certificate since 2001 and received the Volunteer of the Year award in 2006 from the Tallahassee Democrat. I sit on the board of the Greater Tallahassee Chamber of Commerce and the Northwest Florida Black Business Investment Corporation. I am vice president for finance of 100 Black Men of America (Tallahassee chapter) and a member of the Rotary Club of Tallahassee. WHY DID YOU CHOOSE TO WORK HERE? This is a great place to raise my kids.

As I help others become successful, success overtakes me.” Florida Commerce Credit Union 2073 Summit Lake Drive Tallahassee, Fla. 32317 (850) 410-3565 slbrown@ﬂoridacommerce.org

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FINANCIAL PLANNING SPECIAL ADVERTISING SECTIO S SE SECTION ECT CT C TIION ON ON

The work we do is rewarding and fulﬁlling because we have the opportunity to make a tangible difference in the lives of the families we serve.”

316 S. Baylen St., Pensacola, Fla. 32502 (850) 470-5555 www.ocwealthadvisors.com |

DECEMBER 2011 – JANUARY 2012

Managing Partner, Larry K. Hicks, CPA, PFS

WHAT SERVICES DO YOU PROVIDE? We are financial designers who take the time to know our clients, understand their goals and develop a plan to accomplish those goals. We provide a complete array of investment and financial solutions, with full fee transparency and the opportunity for clients to work with seasoned professionals in a locally owned firm. WHO ARE YOUR CLIENTS? Our practice is built to serve high net worth individuals and their families. HOW LONG HAVE YOU BEEN IN BUSINESS IN NORTHWEST FLORIDA? Our realization of the need for independent and objective financial planning services that are client focused led us to form the advisory firm in the late ’90s. All of our advisors are CPAs, hold a CFP or PFS credential and have years of experience in auditing, tax and public accounting. WHY DID YOU CHOOSE NORTHWEST FLORIDA AS A PLACE TO WORK? The majority of our team made a conscious decision to move to the Gulf Coast and build a career here. There are several reasons: attractive business climate, natural beauty that is simply amazing and the opportunity to work with such friendly and delightful people in the region. DESCRIBE YOUR BUSINESS PHILOSOPHY. We hold the trust our clients place in us in the highest regard, considering ourselves to be stewards of that trust.

O’Sullivan Creel Wealth Advisors, LLP

O’Sullivan Creel Wealth Advisors, llp

WHAT IS THE “SECRET” OF YOUR BUSINESS SUCCESS? Our relationships are built for the long term, walking beside people along the way, making adjustments as needed and keeping them and their family on course. |

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FINANCIAL PLANNING SPECIAL ADVERTISING SECTION

North Florida Financial Corporation: A HISTORY OF SUCCESS AND STRENGTH

In today’s increasingly competitive business environment, any truly effective organization that’s focused on achieving growth for the long term must differentiate itself in the marketplace. It must do this by creating a unique value proposition for its clients. Likewise, the organization’s success is often dependent on its ability to ensure that the people who bring the company to life each day, share a common vision and set of values and enjoy what they do. Fortunately at North Florida Financial, these elements are embedded in our DNA. Our mission is clear: “To be the preeminent provider of financial products and services in our selected markets and to assist our clients in achieving financial security and long term financial independence.” We opened our doors in 1970 with two representatives and one staff member in Tallahassee. Continued growth led to incorporation and expansion with additional branch offices opening throughout the region. In early 2001, we merged with Westshore Financial Group, a successful Central Florida Firm headquartered in Tampa. Together we have grown to 105 Financial Representatives, 64 staff members and 24 office locations. Our President and founder, B. Lee Harrison, Jr., started our Firm with a clear vision of protecting the legacies of the families and businesses we serve. The commitment to this vision has helped us become one of the most respected financial services organizations in the Southeast. The key to this success is simple … it’s our team of talented and educated Financial Representatives. Every client has different resources, needs and goals — financial decision making isn’t a one-size-fits-all process. And today, more and more clients are looking for one Firm to organize and direct their financial world. Whether the goal of our clients is to protect their family and business, plan for a child’s education, save and invest for retirement, or create an estate plan … Our Financial Professionals are focused on providing security for generations to come.

North Florida Financial Corporation is a General Agency of the Guardian Life Insurance Company of America, New York, N.Y. Securities products and services offered through Park Avenue Securities, LLC (PAS). PAS is an indirect, wholly owned subsidiary of Guardian. North Florida Financial Corporation is not an affiliate or subsidiary of PAS or Guardian. PAS is a member FINRA, SIPC. Neither Guardian, nor its subsidiaries, agents or employees provide tax or legal advice. You should consult your tax or legal advisor regarding your individual situation. 850 Business Magazine

Courtney E. Harrison www.northﬂoridaﬁnancial.com (850) 562-9075 | DECEMBER 2011 – JANUARY 2012 |

Our Track Record is Proven PRIVATE 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 PUBLIC SECTOR SERVICES • 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

Developing Innovative Solutions to Private & Public Infrastructure and Governance Challenges 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.

Doug Bruce

Associates, LLC

A G ove r n m e n t a l a n d Leg i s la t ive C o n s u lt i ng Fi r m 106 S. Monroe Street, Tallahassee | 850-402-1900 | dougbruceandassociates.com

DECEMBER 2011 – JANUARY 2012

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Magnolia Grill FORT WALTON BEACH

TOM & PEGGY RICE, PROPRIETORS

(850) 302-0266

www.magnoliagrillfwb.com 850 Business Magazine

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Less money, more rewards Hiring in the non-profit sector can be a challenge By Lilly Rockwell

December 2011 – January 2012

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The Bu siness of Art Sonya Davis used her understanding of running a business to bring better fiscal controls to the Pensacola Museum of Art. She overhauled the accounting system and then upgraded the outdated technology.

PHOTO by Howard Robinson

hen it was time to hire a new chief executive for Big Bend Hospice, a large Tallahassee-based non-profit organization with a $22 million budget and more than 200 employees, the board of directors faced an uphill battle. Recruiting an experienced executive for a non-profit can be a tricky dance for board members, who have to find someone with the right business and technical experience while competing with the salaries offered by for-profit competitors. “This is a mission-driven business,” said Bob Inzer, the chairman of the Big Bend Hospice board who also is the clerk for Leon County Courts. “We were looking for someone who had a heart for the mission of hospice, but we have to operate like a business.” In other words, the board was looking for a needle in a haystack: someone who would know the ins and outs of Medicare, understand complex health care regulations, be able to schmooze with donors and be content working in an industry whose grim mission is to help people die comfortably.

Less money, more rewards

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Fortunately for Inzer, after an exhaustive sixmonth search, the board finally settled on Cathy Adkison, who came from a for-profit hospice in Birmingham, Ala. The long search for Adkison underscores the challenges non-profits face in recruiting top executives. Being in charge of a non-profit can require the same skill sets as running a private company, but more challenging, with longer hours, less pay and the never-ending, daunting task of fundraising. Adding to this is the wrinkle that at non-profits, CEOs report to a volunteer board that can have frequent turnover of its members and varying goals. Non-profits are also facing fallout from the economic turbulence over the last four years, with increased competition from other nonprofits and private companies and greater scrutiny from the government and consumer watchdog groups. “It sets up a real interesting recruitment process,” said Pamela Kaul, the president of Association Strategies, a search firm that specializes in non-profits and associations. “They look at their CEO to fix these problems. There are very high expectations.” But along with these challenges come intangible rewards that cannot be matched by the private sector. Chief executives of nonprofits say they are drawn to the profession for the promise of a career that is about more than the bottom line. “I want to be able to make a difference,” said Cheryl Phoenix, the executive director of America’s Second Harvest of the Big Bend, a North Florida food bank.

“

I can’t tell you how many people come to us every day — physicians, attorneys, people who have had longstanding careers in other professions — and now they want something that is missioncentered. But we have to impress upon them that the compensation is completely different.

”

—Pamela Kaul, President of Association Strategies

Finding the right fit For most non-profits, the responsibility of finding a CEO or executive director is left to a volunteer board of directors. This board is comprised of people who have a passion for the mission of the non-profit and who typically have a business background or expertise in the area the non-profit focuses on, are community leaders or have experience running a similar organization. But these boards also have high turnover, with new members annually. “The CEO essentially has a new boss every year,” Kaul said. Some boards turn to search committees to help find the right fit. In the case of Big Bend Hospice, Inzer convened a search committee within the board and asked it to find a new CEO. The committee turned to a search firm that specializes in the

DECEMBER 2011 – JANUARY 2012

hospice industry. The firm conducted a national query looking for candidates that had the right qualifications, coming up with an initial list of about 100 names. Running a hospice or hospital requires a special set of skills, Inzer said. “It’s a highly technical business,” he explained. That’s because hospices make most of their money not from direct payments from the patients but from health insurance companies, such as Medicare, as well as through private donations. Hospices are also highly regulated, primarily through the state government. “It requires a high degree of sophistication from our corporate leadership,” Inzer said.

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Adkison was the perfect fit, he added, noting her background in hospice care, deep understanding of the complex regulations and the fact she is a registered nurse. “It is very difficult to hire health care executives for hospice or home health,” Adkison agreed. “The level of information and background and education and all of those things are going to be different than what is required at other non-profits.” Not to mention finding someone willing to relocate to Tallahassee, no easy feat for anyone in this turbulent economic climate, when many sought-after recruits are reluctant to move because they cannot afford to sell their homes. Adkison, who speaks with a soft Southern accent and was raised in nearby Albany, Ga., said she liked the Tallahassee community and wanted to shift back into non-profits after working at a privately owned hospice for years. “(At non-profits) you are more concerned about patient care … we don’t have to pay stockholders and investors,” Adkison said. “Any money we might have from profit goes back into the business or we save for a rainy day.”

Motivated by more than money One of the biggest hurdles in hiring for nonprofits is the salary, board members say. On average, managers of non-profits make less than their counterparts in the private sector, according to data compiled by the U.S. Bureau for Labor Statistics. The CEO of a private company makes an average annual salary of $87,069 while the CEO of a non-profit organization makes an average annual salary of $71,219, according to data compiled by the Bureau for Labor Statistics. “I can’t tell you how many people come to us every day — physicians, attorneys, people who have had longstanding careers in other professions — and now they want something that is mission-centered,” Kaul said. “But we have to impress upon them that the compensation is completely different.” Experts say chief executives of non-profits are willing to accept lower salaries as a tradeoff for the feel-good satisfaction of fulfilling a non-profit’s mission, whether it be feeding the poor or counseling victims of domestic abuse. Non-profits also sometimes offer more flexible hours and better benefits. Another reason for the salary difference is the board of directors’ reluctance to open up the organization to scrutiny from donors who

want to see their money go toward the organization’s mission, not into the CEO’s wallet. Still, that doesn’t mean non-profit executives make pennies. Ken Armstrong, the head of United Way of the Big Bend, makes more than $135,000, according to the non-profit’s tax forms from 2010. But board members argue that a high salary can be a reflection of the financial value that chief executive brings to an organization. Kaul believes it’s important to pay as close to a competitive salary as possible. “You sort of get what you pay for,” Kaul said. “Boards notoriously want to do it on the cheap.” She said some people find non-profit salaries outrageously high but she defended those salaries as less than what that person would make in the private sector.

Passion for the mission Not all executive directors or CEOs make sixfigure earnings. Marcia Hull clearly has the passion for the arts. She can speak without interruption for five minutes, only pausing to catch her breath, on the benefits that the Mattie Kelly Arts Foundation brings to the Destin area, from funding theater productions at local schools to art shows, festivals and concerts. The foundation helps put on 14 events a year and now has taken on the Herculean task of raising money for a performing arts center. Hull is the executive director of the Mattie Kelly Arts Foundation, which has a mission to bring arts and cultural opportunities to the Emerald Coast. She oversees a budget of more than $300,000 and makes less than $40,000 a year, a far cry from a comparable job in the private sector. She has received offers to work

Non-Profit CEO Pay

PHOTO by Scott Holstein

Average Pay for CEOs in Florida: (Includes private sector and non-profits) Average salary of a CEO in Florida: $183,390 In Panama City: $167,080 In Pensacola: $152,480 In Tallahassee: $174,480 A Per fect Fit A registered nurse, Cathy Adkison brings a background in hospice care plus a deep understanding of complex state and federal regulations to her job as chief executive of Big Bend Hospice. It took a search committee six months to find her.

Average Pay for Non-Profit CEOs Nationally: With a budget of $250,000 or less: $46,826 With a budget between $250,000 and $500,000: $58,203 With a budget between $500,000 and $1 million: $75,519 Source: Bureau of Labor Statistics, Guidestar.org

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DECEMBER 2011 – JANUARY 2012

elsewhere and make more money but has turned them all down. “Here we are making a difference,” Hull said. “That has motivated me, not the paycheck.” Most executive directors of non-profits say they reached a point in their careers where money was no longer an important part of their aspirations. Hull has worked in real estate, banking, public relations and human resources, but had never worked at a non-profit before coming on board as the director of the foundation in 1998. She was drawn to the idea of helping people through art. “My parents put me in tap and ballet. I didn’t have any artistic ability,” Hull said. “But I’m not shy about raising awareness.” She said her connections in the community helped her land the job at the foundation. She was already acquainted with nearly half of the board members. In the private sector, Hull said she disliked the natural competition that developed between her and her business rivals. “When I came aboard this non-profit I got to reach out and be a friend and have them as a member,” she said. Her foundation has more than 250 members. “You don’t see as much of that competitiveness.”

County, such as the Norton Museum of Art and the Palm Beach County Cultural Council. She was in charge of the Lighthouse Center for the Arts for three years before being recruited for the job of executive director of the Pensacola Museum of Art in 2009. Davis said her background in business has been an asset while working at non-profits because she was familiar with looking for ways to cut costs and find efficiencies. For instance, when she came aboard the Pensacola Museum of Art, Davis overhauled the accounting system. “It was designed to be a cost savings, but also to put in place internal controls that perhaps were not as strong as they needed to be,” Davis said. She also upgraded the museum’s computers and brought in an in-house server for the first time, thanks to a special $100,000 grant for technology upgrades. “It was really sorely needed,” Davis said. While Davis agrees that a passion for the mission is crucial, she believes having a basic

understanding of running a business is just as important. “A passion for the mission is not going to necessarily create ... a successful non-profit,” Davis said. It’s important that non-profits be treated like a business, with a specific plan in place for how to make money. Donors and board members also have high expectations for accountability and good business practices, she added. Without a business plan, “the potential for failure is really high,” Davis explained. “You can’t operate with only heart, you have to operate with head.”

Economic fallout Most non-profit executive directors say their organization has been walloped by the economic recession. With most families tightening their belts, giving to charity has taken a back seat to more pressing concerns, like paying the mortgage. At the same time, non-profit executives say grant money has dried up. Most non-profits rely

Like Hull, Sonya Davis also transitioned into non-profits in the middle of her career. Davis owned a temporary staffing agency in South Florida for 20 years. When she was approached about selling the business, she realized it was the perfect time to do something that was more closely aligned with her longtime interest in art. “My academic background is in visual arts,” she explained. “My master’s is in art history. I felt like I wanted to be engaged in the area I had studied.” Davis said she knew making the switch from running her own company to a non-profit meant a downgrade in salary, but she was committed to a lifestyle change. Boards in charge of hiring should never have to persuade someone to accept a lower salary, Davis said. “If you have to talk someone into moving from the for-profit to non-profit, that is dangerous territory,” she said. “You want someone who is committed to the mission and is fully prepared.” In her case, she landed a string of jobs working at arts organizations in Palm Beach

DECEMBER 2011 – JANUARY 2012

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Making a Differ en ce For Cheryl Phoenix, executive director of America’s Second Harvest of the Big Bend, her job running the food bank is about making a difference in the lives of people — not about making a big salary.

PHOTO by Scott Holstein

A business brain

on grants from the county, state or federal government to survive. This double whammy has caused nearly all non-profits to miss their fundraising goals, lose out on grants and cause a re-calibration of the mission. Top executives at non-profits say now more than ever boards must look at how well a candidate can respond to economic turbulence. At Second Harvest, the Tallahassee-area food bank, Phoenix said she has seen demand rise while donations and grants have become hard to come by. Over the last three years, she has seen the number of people Second Harvest serves rise from 22,000 a month to almost 35,000 in the greater Tallahassee area. “The need has increased so much,” Phoenix said. That in turn creates more pressure to make sure donations, grants and other funds can keep pace. At the Mattie Kelly Arts Foundation, Hull said she is constantly in fundraising mode. “One of the challenges we face is that there are so many worthy charities in any community,” Hull said. “Philanthropic giving has gotten very selective for donors.” So convincing a company or person to donate money for an arts program is competing against a request for money to feed the homeless. The foundation has had to cut back on its own expenses, resulting in a salary freeze for Hull and the other full-time staff member. This year, Hull said they both received their first raise in four years. “We are really below the pay scale and we still are,” Hull said. The foundation also lost some members but gained new ones. Kaul said many non-profits and associations have cut back on perks like signing bonuses, care allowances and other fringe benefits because of the recession. In some cases, pay cuts and furloughs are also widespread. When the organization is hurting, Kaul said, it doesn’t make sense for the top executive to be getting pay raises, and boards are sensitive to that. “Interestingly, it does not seem to adversely impact job satisfaction,” Kaul said. “People believe in the mission of the organization and are willing to sacrifice for it.” At the Pensacola Museum of Art, Davis said it’s difficult to know what the museum’s budget will be from year to year, given its reliance on the unreliable funding streams of grants, donations and admission fees. “In the private sector, you have your client base, you have a sense that you can grow your client base, you can grow the revenue from your existing

Advice for Non-Profits

What to look for in a CEO or Executive Director Non-profits have some of the highest turnovers for CEOs or executive directors. This can stem from big expectations placed on these leaders, as well as long hours and low pay. Here is some advice for boards in charge of hiring a top executive of a non-profit.

» Look for passion. Above all else, find someone who is truly pas-

sionate about the mission of the non-profit. “It’s important to believe in what you do,” said Cheryl Phoenix, the executive director of America’s Second Harvest of the Big Bend in Tallahassee. “You can learn all those other things.” Even if the candidate has no experience running a similar non-profit, look for someone who has shown an interest in the non-profit’s service area through volunteer work or personal experiences. » The right kind of experience. A great CEO can come from the non-profit arena or outside of it. What’s most important to a given non-profit can vary depending on size, but look for previous management experience, knowledge about the service area, good communications skills and a plan for how to respond to a fluctuating budget. “It’s real important for a (candidate) to have knowledge of the constituent group, profession or industry,” said Pamela Kaul, the president of non-profit search firm Association Strategies. If you are hiring for a technical area, like health care, it is vital they understand regulations and insurance. “They need incomparable communications skills, both verbal and written, and the patience to adapt and be flexible,” Kaul said. » Knowing the community. Because non-profits raise money within the community, it is crucial to hire someone with strong ties and deep relationships within that community. “My business is really fundraising and awareness,” said Marcia Hull, the executive director of the Mattie Kelly Arts Foundation. “I’m the leader of this entity and I do a lot of networking. My job is to be out there and visible.” Look for someone who has lived in the community or has the right networking skills to quickly build those relationships. » Fundraising prowess. This is the lifeblood of any non-profit. If an executive director or CEO isn’t comfortable asking people for money, then working in non-profits may not be the right fit. “When I get up, every day I am thinking about how much money I can raise for the foundation,” Hull said. A large organization may be able to hire someone who is just in charge of fundraising, called a development director. Still, it doesn’t hurt to have a chief executive who is comfortable working a room on behalf of his or her organization.

clients,” she said. “But in the non-profit sector, you really have to look into a crystal ball and try to guesstimate what kind of things are going to happen.” For example, any dramatic dip in the stock market can impact how willing donors are to send in checks, she said. “Overall it’s much more uncertain.”

But even with these turbulent economic times, non-profit executives say there is no place they would rather be and shrug at suggestions that a private sector job might bring higher pay and fewer hours. At the Mattie Kelly Arts Foundation, Hull said she finally found her calling after years of dabbling in other careers. “I feel this is my ministry,” she said. n

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2012 Legislative Preview

Taking Care of Business

Northwest Florida’s Legislative Delegation

By Linda Kleindienst

hen the Florida Legislature convenes on Jan. 10, the primary focus of 120 representatives and 40 senators will be on the once-a-decade job of reapportionment. They’ll also have to tackle an expected $2 billion revenue shortfall. Then the Jan. 31 presidential preference primary will certainly draw everyone’s attention away from lawmaking, no matter how briefly. Most everything else is expected to take the proverbial back seat. Still, the state’s business interests hope to see some of their issues addressed when lawmakers convene their annual 60-day session. And, Gov. Rick Scott has made it clear he wants some key business issues addressed. In fact, a new drive to reduce the number of businesses paying the corporate income tax and tangible property taxes is at the top of Scott’s legislative agenda. “One of the most important things Florida can do to attract businesses, and in turn jobs, is to create a tax environment that welcomes business growth and encourages investment in our state,” Scott has said. Research by Florida TaxWatch, which is pushing for reform of the state’s tax system, has shown that Florida’s sales taxes on machinery and equipment, along with the Tangible Personal Property Tax, is partially responsible for the relatively low capital investment in manufacturing — an industry that could provide high wage jobs for Floridians. Here is a quick look at some of the key issues being monitored by the state’s major business lobbies, including the Florida Chamber of Commerce and Associated Industries of Florida: Corporate Income Tax — During its 2011 session, the Legislature boosted from $5,000 to $25,000 the amount of corporate income that is exempt from the state tax. That amounted to a cut of about $1,100 per business and eliminated the tax for nearly half of the roughly 30,000 businesses that were paying it. Now Scott wants lawmakers to double the exemption to $50,000, dropping 25 percent of the companies still paying it.

DECEMBER 2011 – JANUARY 2012

Internet Sales Tax — Florida is losing an estimated $1.5 billion a year in uncollected sales taxes on items that residents purchase through the Internet. Local businesses say it creates an unfair advantage for Internet giants like Amazon. State law requires the purchaser to pay the tax, but relies on the honor system — and few honor it. A growing number of legislators say it’s time for a crackdown.

SENATE

Online Travel — Online travel companies (Orbitz, Expedia, etc.) now pay state and local taxes on the lower wholesale cost of a room rather than the retail price they collect from consumers, giving them a competitive price advantage over brick-and-mortar hotels. Attempts are being made to eliminate the special tax advantage.

Sen. Charles S. “Charlie” Dean, Sr. District 3 | R-Inverness

Property Insurance — Efforts continue to gradually raise the rates for Citizens’ Property Insurance policyholders until the rates are actuarially sound and Citizens becomes a true insurer of last resort.

Rep. Clay Ingram District 2 | R-Pensacola

Tangible Personal Property Tax — Scott is proposing a $50,000 exemption, allowing half of the 300,000 companies that now pay the tax to avoid it. This would require a constitutional amendment to go before voters in November 2012.

Rep. Matt Gaetz District 4 | R-Fort Walton Beach

Unemployment Compensation — Taxes are increasing by $72.10 to a $170 cost per employee to help repay a federal loan that Florida took to cover the jump in unemployment claims during the Great Recession. Business interests would like to repay the loan over a longer period, reducing the amount employers have to pay in 2012. Workers’ Compensation — On Jan. 1, 2012, premiums will jump 8.9 percent, costing Florida employers an additional $100 million annually. About one-third of the inflated premiums are blamed on a loophole in drug repackaging contracts that are increasing the costs of medication. n

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Sen. Greg Evers District 2 | R-Crestview Sen. Don Gaetz District 4 | R-Destin Sen. Bill Montford District 6 | D-Tallahassee

HOUSE Rep. Douglas Vaughn “Doug” Broxson District 1 | R-Tiger Point/Gulf Breeze

Rep. Clay Ford District 3 | R-Gulf Breeze

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DECEMBER 2011 – JANUARY 2012

I-10 Corridor

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

Conditions Are Ripe Northwest Florida lays claim to its first olive grove By Lee Gordon

rowing olives in Florida seems about as likely as growing oranges in Alaska. To find a farmer that produces olives in the Sunshine State used to be difficult if not impossible. That was, at least, until Don Mueller came into the picture. He’s a rare breed, especially in Northwest Florida. “As far as I know, I’m the only one in the state that produces table olives and olive oil from olives growing in Florida,” said the Jackson County farmer. “Some sell olive oil but it is imported.” To grow olives, you need more than just a green thumb. You need the right topography, soil with a pH level of 7.5 or higher and temperatures that are hot enough to grow the fruit. But you also need a winter chill to make sure the olives set in place. These conditions are normal in California and Italy — but not as much in Florida. “Soil type and topography are very important as to whether you will be successful in the Panhandle in growing olive trees,” Mueller said. “You need elevation, slope and good drainage. It doesn’t work everywhere.” According to the Food and Agricultural Organization of the United Nations, the United States ranked 22nd in olive oil production in 2007, producing 1,500 tons, most of it from California. Spain was No. 1 on the list, producing 1.3 million tons — or 42 percent of the world total. Florida didn’t even register as a blip.

Awakening a farmer’s DNA In 1999, Mueller and his wife moved from Europe to retire in North Florida. Originally, they set out to live a life of leisure on the water. But he quickly grew tired of fishing and boating, and thought about jumping head first into the olive jar. So the Muellers bought five acres of land and called it Green Gate Olive Grove, a taste of Italy in North Florida near Compass Lake in Jackson County. “I was employed in Europe for eight years and we vacationed in Italy and I became interested in olives,” Mueller said, “I learned a lot from the olive growers in Italy about how to grow olives.” The former natural gas consultant gave up the “retired” lifestyle and went back to work. He knew

DECEMBER 2011 – JANUARY 2012

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Photos by SCOTT HOLSTEIN

Exper iment Be ar s F r ui t Don Mueller came out of retirement to start his olive grove as an “experiment.” Opposite page, clockwise from top: Mueller (right) and Ronnie Harrell use an Italian olive rake at harvest time; culling and washing the olives; olive pomace extracted from the first press; pressing the pomace.

the challenges of growing olives in North Florida. There was nothing to pattern his grove off of because not many people had done it successfully. “When I began, I got a lot of negative comments from the Agriculture Department. (They) said I was an idiot to grow olives in Florida,” Mueller said. But he was determined. “I’ve had farmer’s DNA all my life. I enjoy growing things but I was attracted to olives because of the ambience and the culture that goes along with it.” What started out as an experiment has turned into a full-fledged business. Mueller knew that the weather in North Florida was similar to the Mediterranean, so he called upon his knowledge of what he learned in Italy and applied it to his olive grove. His work hasn’t gone unnoticed. In 2008, he won an award at an international contest in Ft. Lauderdale. His olive oil went up against oil from all over the world — and won the award for its taste. That victory put the Jackson County farmer on the olive map so-to-speak, and turned his project into a job that, by his own admission, takes up most of his time. “The way I’m doing it is the way they have done it in Italy for the last 1,000 to 1,500 years. The spacing and the layout is an Italian method,”

Types of olives that can grow in florida Arbequina: The olives grow in heavy clusters and have a high oil content. Arbosana: Has fruit that looks almost like the arbequina but matures three weeks later. Arbosana oil is more robust than Arbequina and has a more peppery taste. It has a fruity, nutty flavor. Koroneiki: A very small olive that originated in Greece and is grown for its oil. It has a robust flavor and a peppery finish. Mission: Has a high oil content. Olives ripen mid-season. Oil can be bitter if picked early. Mission is considered mid-season. Manzanilla: The most widely grown variety in the world and has a very high quality. The oil is described as very aromatic, fruity and peppery.

Source: Florida Olive Council

Stats from Green Gate Olive Grove » Olive Production: 3-7 tons per acre. » A half liter of olive oil runs $23 while a pint of fresh olives goes for $10. » A 30-foot tree costs between $10 and $25 and could grow to 40 feet. » Olive trees can live for 200-500 years. » 40 gallons of olive oil can be produced per ton of olives. » Mueller has approximately 300 trees on his farm, hopes to have 500 in the near future.

(Courtesy: Don Mueller and www.greengateolivegrove.com)

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he said. As for profits, he added, “Doing it the way I do it is better than break even, but it’s not wildly lucrative.” Mueller has 350 trees on his five-acre property. The olive trees produce three tons of fruit per acre. His trees are spaced 20 feet apart in all directions. The reason for the spacing is that olive trees grow to that size, and spacing them apart will keep them from overlapping. Looking back on his project, he said, “It was just an experiment to begin with. I love olives and was anxious to try it and it worked.”

An olive tree grows in Florida … and Georgia Mueller is now lobbying the state of Florida to jump on the olive bandwagon. Just recently, he petitioned the state of Florida and the Department of Agriculture to introduce olive trees across the northern border of the Sunshine State. According to the Florida Department of Agriculture, this proposal was submitted as part of the Specialty Crop Block Grant program. The Department is still reviewing these proposals individually and has not yet determined which programs will receive funding. “The project would include an analysis of topography of all the counties and point out the ideal sites for where olives can be grown,” Mueller said, “We would supply four trees to each county through the extension agents and make sure the trees are planted. The only variable would be rainfall and temperature.” Adam Putnam, Florida’s agriculture commissioner, concedes the idea is not without merit. “Florida’s rich soil, bright sunshine and an almost year-round growing season make our state an ideal location for expanding crop varieties,” Putnam said. “With nearly 300 commodities already grown in Florida, the budding olive industry represents another way growers are exploring new crops to strengthen one of Florida’s strongest economic pillars.” But Mueller isn’t stopping in Florida. He’s also helped horticulturists in Georgia get involved. He says that growing olives the way they do in the Peach State is the optimal way to cash in on the fruit. “If you want to make money growing olives you have to do it the way the people in Georgia have undertaken it,” Mueller said, adding that the state is helping to underwrite the experiment and it has support from the University of Georgia. “People in Georgia have acquainted themselves with experts and consultants. I’ve helped them. I’m an honorary member of the Georgia Olive Growers Association because of the help I gave them,” he said.

DECEMBER 2011 – JANUARY 2012

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FLIP OUT. G r ow i n g M a r k e t Olive lovers from surrounding counties travel to Mueller’s farm to buy olives already in jars or harvest ripe olives directly from the trees.

While he works on the Department of Agriculture in Florida and helps his friends to the north, there’s also some business on the farm to take care of. Mueller said his olives and olive oil have become well enough known in a four-to-five county area in North Florida that people drive for miles just to pick up his product. Business is especially good at the end of August when the “U-Pick” season begins. “The people who buy the olives and the oil are fans of olives and olive oil,” Mueller said, “They do not want the olives picked for them, they want to do their own picking. I have a ‘you pick’ season that basically kicks off the harvest season after the olives ripen.” And sometimes, his customers pick up a few trees to see if they can duplicate what Mueller has done. But only the Ascolana and Mission trees are for sale. “Other people have stuck their toe in the water, so to speak. Some are my customers,” Mueller said, “I propagate my trees and sell them. Some have been successful and some have not. It doesn’t work everywhere.” And not everyone is making an honest living growing olives. Researchers at the University of California-Davis recently completed a study showing that many extra virgin olive oils aren’t what they seem. The first of its kind study showed that 69 percent of the imported oils sampled failed to meet internationally accepted standards for extra virgin oil. “As a result of that report, there is an increasing demand for extra virgin olive oil because that commands a significantly higher price than regular olive oil,” Mueller said. “It’s had an affect on my business, but I’ve never had a problem selling my olive oil.” n

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DECEMBER 2011 – JANUARY 2012

Capital Corridor

Gadsden, Jefferson + Leon Counties

Labor o f Love Gary and Kim Anton went from patrons to owners of the club, a local tradition known for its music and bonfires that is part of the North Florida blues circuit.

Singin’ The Blues Bradfordville Blues Club makes its mark on the national music scene By Julie Hauserman

hen Tallahassee lawyer Gary Anton first drove down the rutted clay road toward the little music club in the country, it felt like home. The road led to an old cinder block building, and as he stepped out into the starry field, he heard twanging guitar. A bonfire was throwing flickering shadows on hanging Spanish moss. Here, tucked among the fat old oaks, like a scene in some movie: a juke joint. It was called Dave’s CC Club then, and it drew nationally known blues musicians who did the “I-10 boogie,” travelling across Interstate 10 between gigs in places like New Orleans and Jacksonville.

DECEMBER 2011 – JANUARY 2012

Anton was drawn to the place’s history and music. He and his wife, Kim, became regular patrons. In 2002, when the owners needed a change, the Antons took over and renamed it the Bradfordville Blues Club. “We couldn’t let it die — there’s no place like it,” says the 60-year-old Anton, who practices labor and employment law and is an adjunct law instructor at FSU. “Neither of us had any idea we’d still be at it 10 years later!” Today, the Bradfordville Blues Club continues to draw crowds for blues, roots and Americana music. There’s an eclectic mix of performers: major blues players like Bobby Rush, Tab Benoit, Alberta Adams, Johnny Winter, Charlie Musselwhite and E.C. Scott; touring

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Americana acts like Eric Lindell, The Mosier Brothers and Blueground Undergrass; and talented local performers like Sir Charles Atkins, J.B.’s ZydecoZoo, jazz trumpeter Longineau Parsons and blues man Bill Wharton (“The Sauce Boss.”) The great Percy Sledge played here. So did Clarence Carter, Pinetop Perkins and Honeyboy Edwards. Kim is club manager and Gary books the bands. They have just two main employees: a bartender and a waitress. “We run the sound, clean the toilets, empty the trash, buy the supplies — we do it all,” he says. “We never got in this to make money. It’s a labor of love.” During the economic downturn, attendance

Photos by SCOTT HOLSTEIN

has stayed steady and even increased some, but beer and wine sales have dropped 20 to 25 percent, erasing any chance to make a profit — or break even, Anton says. The cover charge (usually $13 to $15, with a $2 discount for college students) pays for the musicians. Blues-loving volunteers help out with repairs, the website and various other tasks. “Success here isn’t about money,” Anton explains. His satisfaction comes from being part of a community and building something unique. Anton is on the board of directors of the national Blues Foundation, which promotes the musical tradition and also finds ways to help musicians with health care. Last year, he helped present three major awards in Memphis to one of his favorite blues legends: the great Buddy Guy. “I think a lot of people think of the blues as some old guy sitting on a stool, drunker than a rodeo goat, singing about lost love,” Anton says. “But it’s really an upbeat, danceable music that comes from the heart, that comes from the soul. It’ll make you feel good.” “This place has a great reputation,” he adds, “I don’t have to look for bands anymore. Every day, we probably get six to eight requests from people who want to play here.” The club started a tradition of getting painters to make table-top portraits of visiting blues artists and having the musicians sign them. There are more than 50 table-top portraits now — many hanging on the club’s walls. The club was built in 1964, and it sits on a large parcel of land that has had a special history during the past 100 years, Anton said. An African-American family, the Henrys, bought the property in the 1920s, and their descendants still own it. Anton leases the club. “This land was a community center,” Anton said. “There was a one-room schoolhouse,

during the winter. Paradise Café in Pensacola Beach, the Funky Blues Shack in Destin, Pineapple Willie’s in Panama City and Mojo’s Kitchen in Jacksonville make a decent North Florida touring circuit. Some of the older players who show up at the Bradfordville Blues Club will look at it with a big smile. “This reminds me of the place where I got my start,” they’ll say. Anton says he’s heartened to see younger blues musicians now drawing younger (college-age and 20- to-40-year-old) crowds. “About half our crowd is younger now, and that’s great,” Anton says. “Kim and I are having the time of our lives. As long as there are enough people coming in and keeping the place going, we’ll keep doing it.” n shops where people sold vegetables and a potato warehouse for storing the potato crops. There was a black baseball team, and they played in a league of teams from other juke joints in Northern Florida and South Georgia. There would be thousands of people out here for baseball games.” This was during the years of official racism in the South, and local law enforcement didn’t like blacks congregating and partying. The Henry family opted for an unusual legal solution: “They became a country club,” Anton says, “so they could have gatherings with alcohol without the sheriff bothering them. It was the only country club in the state of Florida without a golf course.” At night, folks would gather around the fire pit and play music. The bonfire is still one of the best parts of a trip out to Bradfordville Blues Club. And you can’t beat the music inside. Blues clubs, he says, are flourishing in Florida, because musicians like to come south

Q and A with Gary Anton Q: What are some dos and don’ts of running a music club? A: If you want to make a million dollars out of a club, start with $2 million. Q: What are your hard-earned lessons? A: We cannot compete with the 800-pound gorilla that plays in the fall at Doak Campbell stadium. We see a 40 to 50 percent decrease on game weekends. Q: What’s your biggest success? A: Keeping the place open for 10 years! We got the Keeping the Blues Alive award in 2010 from the Blues Foundation. And we got an official Mississippi To Florida Blues Trail marker from the state of Mississippi — there are about 200 markers in the state of Mississippi — we have the only marker in the state of Florida.

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forgotten coast Corridor

Gulf, Franklin + Wakulla Counties

Toughing It Out

Tur ning th e Co r n e r ? Visitor numbers are on the upswing, says Curt Blair (left), administrator for the Franklin County Tourist Development Council, and Laverne Holman (right) at Forgotten Coast Outfitters — but most local businesses and restaurants continue to struggle.

Franklin County battles to lure back tourists and encourage new business By Lee Gordon

ranklin County wants to make something very clear to the nation and the world. It is open for business. The beaches are clean. The seafood is safe. And county leaders want you to know that, “We’re Salty.” So far, the new marketing message appears to be getting some traction. There are definite bright spots in the county’s economy, but there’s a long way to go for this area to return to what was considered normal only two years ago. “Tourism has returned to Franklin County — only better,” said Curt Blair, administrator for the Franklin County Tourist Development Council, as the summer season began to wind down. “The numbers are up from the pre-spill period, the beaches are clean and there is more to do.” An estimated 11,000 residents live in Franklin County, mostly in Apalachicola and Carrabelle. St. George Island is where a lot of the tourism dollars come from, and the number of visitors was likely boosted with the island’s state park earning the designation of the 6th Best Beach in America by Dr. Beach earlier in 2011. The numbers and the accolades, however, don’t accurately reflect the devastation that has hit this small coastal community. First came the Great Recession, which cut

DECEMBER 2011 – JANUARY 2012

short hopes for an expected housing boom and the jobs and economic boost that would have accompanied it. Then came the BP spill. While the oil never really hit the county, the perception that sludge had crept onto the coast was enough to keep people away. Next, on April 27, 2011, a tornado ripped through the county, destroying homes and businesses. The destruction created a few clean-up jobs, but once the mess was gone, so too was the temp work. Today, the county’s unemployment rate hovers around 7.8 percent. But through it all, those who live in Franklin County have remained committed to the long term success of its people, its business and its lifestyle. “To realize a sustainable economy for Franklin County, we must consider the limited employment opportunities we currently offer,” said Franklin County District 1 Commissioner Pinki Jackel. “The direction I would like to see Franklin County move is along the lines of broadening our employment and educational opportunities for our graduates, our young people, who are our future.”

The Two Pillars Franklin County is known for its two main industries: seafood and tourism. In 2010, the

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oil spill brought tourism down and the seafood wasn’t selling. To counter that, the Chamber of Commerce and Tourist Development Council put together a new marketing campaign called “We’re Salty” — an effort to encourage tourists to enjoy the beaches and seafood. At least on those two fronts, there are indications that things may have started to turn the corner. “This year, we are having a great year, due to a number of factors,” Alan Pierce, Franklin County director of administrative services, said in early fall. “First, our bay has remained open all year long without a substantial closure. As well, our seafood workers have had extended areas and hours to work and this helps everyone that works on the water. Our visitor numbers are strong and our season has enjoyed no storm interruptions, and this also bodes well for our area.” Chamber of Commerce Executive Director Anita Grove says businesses in Franklin County need to think outside of the box to succeed in this economy. “They need to reinvent themselves,” said Grove of how businesses can succeed, “by being unique and selling the items that can’t be found anywhere else.” Laverne Holman of Forgotten Coast Outfitters in Apalachicola has seen the same thing. Her

Photo by SCOTT HOLSTEIN

business isn’t faltering, but she’s had to change the way she does business to succeed. “We haven’t been affected because the tourists keep coming,” said Holman, “(But) instead of big trips, families are taking smaller road trips to Franklin County. As long as people keep doing that, businesses will be happy.” Despite the uptick in work and visitors, however, some fishermen and business owners along the coast still feel the effects of the spill. And with the higher costs of food and gas, some of those who once were part of a booming industry are fighting to keep food on the table. “We’re working about half speed,” said oysterman Bruce Millender. “We’re working about 50 percent of what we could be doing prior to the oil spill.” Fisherman Kevin Pitts echoed the sentiment. “I mean, we go out and make a good check, but you come home and, after expenses are paid, you are stuck making barely minimum wage.” The Tourism Development Council (TDC) is using money from BP to get the word out, especially throughout the Southeast, to promote the county to visitors. But despite their efforts, local businesses and restaurants are barely treading water thanks to the economy and the lasting effects of the spill. “I know from last year at this time we are down around 10 percent or maybe a little more,” said Bob Saker, owner of The Hut Restaurant. “From two years ago, we are down 20–30 percent.” The TDC came up with the marketing slogan, “We’re Salty.” The high profile campaign has been used in Florida, Georgia and up the Eastern Seaboard to promote tourism and seafood in Franklin County. The state of Florida also received $10 million from BP to promote seafood across the state. And the county used BP money to enhance some of its local festivals, including The Oyster Spat on St. George Island in October and the annual Seafood Festival in November, where country music star Travis Tritt appeared. “They have been very proactive in spending that (BP) money to benefit all of our local communities in seafood and tourism promotion,” said Jackel of the TDC. Jackel has just been appointed by the National Association of Counties to an economic development steering committee that she believes will give her new avenues to benefit Franklin County. “One of our functions will be lobbying Washington for support of local and regional economic projects that promote better environments for job creation,” Jackel said, “One thing everyone can agree on is getting folks back to work and, of course, I’ll be keeping my eye on opportunities that may fit well locally and for the state of Florida.

Developing the Future Franklin County was moving full speed ahead until the oil spill. The real estate market was the hardest hit. Construction and new homes were supposed to give the county a much needed boost, providing jobs and bringing new residents to the area. But the market dried up, new developments didn’t happen and there’s no guarantee on when things will get better. “Before the spill we were issuing 150 building permits a year, now we are issuing 40 a year,” said Pierce, “The projects that were in development, such as Summer Camp and St. James Bay, took big hits on their future hopes for recovering. St. James Bay had a lot of houses built as speculations and the banks have now taken over.” Added Jackel, “The ripple effect of those folks who were planning to purchase property here and did not at a time when we were beginning to see our market improve in 2010 cannot go understated. Having the experience of owning a small business, I know you can never recapture that market and lost dollars. The ripple effect has

“We’re working about 50 percent of what we could be doing prior to the oil spill.” oysterman Bruce Millender an impact on our tax base and every business in the county, and we are still feeling those effects.” Bob Saker, who has owned The Hut restaurant since 1992 says even if the economy rebounds, he thinks it’ll take at least five years before the county gets back to some sense of normalcy. “We have businesses that are starting to close,” said Saker. “We went through the summer and it’s usually good enough to get you through the winter. But summer wasn’t good. The more businesses close, the more the tax base shrinks — it’s a domino effect. People are making less money because they are losing their jobs, which means less money for the area.” Now the county is giving some tax credits to help new businesses and existing businesses. If you are a business in an enterprise zone designated by the state, you are eligible for tax credits. And, for rural areas of concern designated

by the governor, there are potential tax breaks and even incentives for those who create jobs. “But one size doesn’t fit all,” said Pinkel. “We are committed to preserving our pristine environment and any new business will need to be compatible with maintaining the integrity of our environment and community.” No one knows what the future holds, but the community is hopeful. “Predicting the future of our area or any area in today’s economic time is a slippery slope,” Pierce said. “However, people love Franklin County seafood and we are easily accessible to a number of fairly large markets, such as Tallahassee, Atlanta, Birmingham and others. In good economic times, we do very well, and in poorer economic times, we survive. Every economy will go as our country goes, and obviously there is room for a lot of improvement.” An existing business that the county is looking to expand on is the Apalachicola regional airport, which was constructed by the federal government in 1939. It has three runways, each a mile long, but is underutilized and needs to be improved if it’s going to help boost the local economy. “We are hopeful … to attract a manufacturing industry or a repair industry that would call Franklin County home and bring new jobs and residents to our area,” said Pierce. “We have just completed construction of a 10,000 square foot hangar/office to complement our facilities.” Over the next five to 10 years, county officials also hope their coastal location and the determination of residents to see growth will lure new business to the area. “We have lost some businesses, but we have gained others. The spirit of entrepreneurship in this country never ceases to amaze me, nor does the government’s ability to put every obstacle they can in the way of small businesses surviving,” said Pierce. “This is a time in which we need to believe in each other and understand more than ever, that we have to work together to overcome the problems. The key word is work, and small businesses are our major employers in every town and city in America.” n

Franklin County By The Numbers (Fiscal Year 2010–2011) Total Budget: $42,354,108 Millage Rate: 4.3511 Ad Valorem Property Tax Proceeds: $8,951,286 Source: www.franklincountyflorida.com

850 Business Magazine

DECEMBER 2011 – JANUARY 2012

BAY Corridor

Panama City, Panama City Beach + Bay Counties

Cozy an d Ch i c Tom and Yvette Seldenright wanted to open their wine bar in a location with a lot of walking traffic and low rent. They found it in St. Andrews and became part of the economic revival.

Turning the Tide St. Andrews businesses are revitalizing historic area By Liesel Schmidt

ust up from the St. Andrews Yacht Basin is a small treasure trove of shops and restaurants, locally owned businesses that exude charm and the feel of a long ago, more relaxed time. It is an escape of sorts from the mainstream bustle of ordinary life, a small breath of salty-aired simplicity. This historical area, known as St. Andrews, has long been part of the Panama City landscape. Local businesses were hit hard by the Great Recession. But recent changes have drawn in new life, like a net freshly cast into the sea. The opening of new businesses is a sign of renewed hope for better economic times. And those businesses are attracting new customers to the area, enhancing the local economy in ways that have long been needed. Equal parts cozy and chic, the Purple Grape is the perfect addition to the new reawakening

DECEMBER 2011 – JANUARY 2012

scene at St. Andrews. After being open for three years at their original location on Thomas Drive, owners Tom and Yvette Seldenright decided to take advantage of the new scene emerging just off the waterfront. “We were looking for a location that had a lot of walking traffic and rent that we could afford,” Yvette Seldenright says. “We are already showing great improvement over our sales at the Thomas Drive location.” As the area’s first wine bar, the Purple Grape holds the distinction of offering both products and ambience that one might not expect to find so far away from the rarefied air of a larger city. The menu boasts more than 50 wines available by the glass, rounded out by a selection of more than 150 available by the bottle. While the atmosphere and the wine list alone are enough to attract a crowd and cultivate a

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regular following, the surrounding shops and businesses undoubtedly do their share of contributing to the Purple Grape’s success. “The shops seem to be a nice draw. We get a lot of foot traffic that comes in through here because of them,” acknowledges Jaclyn Gallagher, who has tended bar at the Purple Grape for three months. She calls St. Andrews “an up and coming area” with a clientele that is “a little bit of everybody.” No one here goes it alone, as the shops seem to provide a great support system for one another. “I truly believe the businesses in St. Andrews are committed to helping each other and making it work,” says Seldenright. If recent trends are anything to go by, St. Andrews will continue to bustle and grow, just like the St. Andrews Waterfront Farmers’ Market that attracts thousands of visitors to the

Photos by SCOTT HOLSTEIN

area. Opened in 2003, it has become an anchor for the area and this summer announced plans to double the number of vendors that bring in goods to sell on the weekends. “It’s a concerted area revitalization project,” says Scott Barnes, president of St. Andrews Waterfront Markets, Inc., the non-profit that now runs the market and garden. While the market has been a seasonal occurrence since 2004, it hit its stride in September of 2010, when it became a year-round market under the watchful, nurturing eye of local area volunteers determined to make it a success. Sprawling between Smith’s Yacht Basin and St. Andrews Marina, the market offers a wide variety of merchants and activities, enough to keep the entire family happy and entertained. “There’s always some kind of activity,” Barnes says. “There’s fun for everybody, and it’s a really family-friendly environment. It has it’s own flavor.” Recently voted the fourth best mid-sized farmers’ market in the country by those participating in a survey conducted by American Farmland Trust, St. Andrews also holds the distinction of being the sole market to offer its visitors ferry service (from St. Andrews Marina to Smith’s Yacht Basin). Dozens of vendors attract up to 4,000 visitors in a day and, in April, the market welcomed the addition of a community garden, furthering its Make It or Grow It focus. The changes in the market have undeniably impacted the local economy. “[Shop owners] are always talking about how their businesses have increased so much since we built this thing,” Barnes claims. Bot Boutique owner Celene Cunningham wholeheartedly agrees: “We’ve seen a lot of traffic come through the store with the St. Andrews Farmers’ Market ... going on.” A sparkling space full of accessories to please women of all ages and tastes, the Bot Boutique had a location in Lynn Haven for three-and-a-half years before the store in Historic St. Andrews opened in July. “There are three of us [owners], and we ... want to spread the joy,” Cunningham says when asked about the reasoning behind the newly opened venue. “We love it down here. We love the area, and we love the sunset.” Pizzaz Salon operates a small station in the back of the store, with two stylists available to offer their services to the store’s customers. Cunningham said the store tries to feature a lot of local designers and the unique fare seems to be a successful draw to attract even unlikely customers. “We get anywhere from teenagers to sweet little old ladies,” she says. The wide and varied crowd is certainly something that Time Out! Sports Saloon and

Mar ket Dr iven The St. Andrews Waterfront Farmers’ Market run by Scott Barnes (left), with his wife Ronnie, brings up to 4,000 visitors on a weekend day to the area. (Above, left to right) Celene Cunningham, Angela Bradley and Kim Bottomy credit the year-round market for bringing much of the foot traffic to their store, The Bot Boutique.

Oyster Bar owner Nick West hopes to attract. The restaurant, which opened at the end of July, offers a full menu and is specifically targeted to families. “We’re not a bar ... we’re a familyoriented restaurant, so we’ve received a good crowd. We’re trying to target families to come and hang out and enjoy the view,” says West. They’ve certainly filled a void in the newlyrevitalized area, which was exactly what West aimed to do when he chose St. Andrews as the second location for Time Out! Older shops have also seen an uptick in their numbers since the beginning of the area revitalization. “When we opened five years ago, there were a lot of shops, and the area was beginning to perk,” says Charlotte Smith of Two Sisters Custom Designs. “But then when the economy went south, we lost quite a few little businesses. The Farmer’s Market has

increased traffic a lot. I feel like we’re slowly beginning to grow again.” The salty air has called out to first-time business owners, as well. “We haven’t been open anywhere else,” says Melissa Kayvonfar of The Honey Hole, an eclectic collection of antiques, rare consignment pieces and small treasures of all kinds. “Traffic’s been good. We love the location, and it’s absolutely beautiful,” says Kayvonfar, who owns the shop with her husband, James. As the year draws to a close and a new year approaches, the new life imbued in the St. Andrews area continues to give locals a sense of hope and freshness. Tides shift and change, bringing new opportunities, just as this historic location is given new opportunities to reassert itself, to become a presence once again, to become found treasure at the water’s edge. n

850 Business Magazine

DECEMBER 2011 – JANUARY 2012

Capital

president of Communications; Brittney Clerico, vice president of Operations; and LaToya Chambliss, publicity manager.

Local Happenings >> National Solar Power plans to build the Southeast’s largest solar farm in Gadsden County, generating an estimated 400 jobs during the five-year construction period, pouring $1.5 billion in economic investment into the region and creating 120 permanent jobs with an average salary of $40,000 >> Hoyman Dobson CPAs, an accounting firm in Central Florida, has merged with Carr, Riggs & Ingram, LLC (CRI), a southern regional accounting firm currently ranked as the 32nd largest nationally. >> Hayden Dempsey has returned to the Tallahassee office of Greenberg Traurig as chair of its Governmental Affairs Practice. Dempsey served as Special Counsel to Gov. Rick Scott, overseeing the Legislative Affairs Office and advising the governor and his staff on legislative Dempsey and public policy matters. Dempsey has also been appointed to the Enterprise Florida Board of Directors and Space Florida. >> William Stander has opened a new public relations shop in town. Formerly state government relations assistant and vice president for the Property Casualty Insurers Association of America, Stander has been lobbying for more than 20 years. >> Never has FSU Head Football Coach Bobby Bowden been examined under the microscope of leadership. Leadership expert Pat Williams has teamed up with Florida State Associate Athletics Director Rob Wilson to bring to light what made Bowden so successful and how individuals can incorporate his leadership principles into their lives.

Hirings & Promotions

DECEMBER 2011 – JANUARY 2012

>> CoreMessage has hired Carrie Thompson, former director of legislative affairs for the Lottery, as an account executive. >> Flightline Technical Services has added two aviation technicians to the company’s Regional Service Center in Tallahassee: Joe Volker, an experienced avionics technician, and Joe Garcia, a veteran aircraft technician. Local Honors >> The Florida Association of Chamber Professionals has recognized the Florida Chamber of Commerce as its top chamber in the state. >> Tallahassee’s StarMetro has been honored for its safety and maintenance by the Florida Public Transportation Association with two first place wins in the “Most Improved Safety” and “Overall Safety Record” categories and a third place win in the “Top Mechanic Award.” >> The work of local businesses, citizens, a non-profit organization and city government to create a sense of place in Tallahassee’s Midtown Area received statewide acclaim when the American Planning Association’s Florida Chapter gave the district an Award of Merit. The Midtown Placemaking Action Plan, a community-driven inititative, was recognized in the Grassroots Initiative category.

>> Andy Severe, Con-way Freight, Tallahassee, is one of 10 new professional commercial drivers added to the prestigious Florida Road Team by the Florida Trucking Association. >> Three Tallahassee lawyers recently earned Florida Bar board certification. Certified as legal experts in their field are: Luke Newman, criminal appellate; Mark Gates Lawson and Christopher Benigno Roe, city, county and local government law. Local Health News >> Avery D. McKnight, Esq., Christopher Rumana, MD, and Gary Winchester, MD, have been unanimously elected to the Tallahassee Memorial Hospital Board of Directors. >> Mark O’Bryant, president and CEO of Tallahassee Memorial HealthCare, has been installed as a trustee of the Florida Hospital Association.

Gordon

>> Recent promotions at Pea Green Solutions, Inc., a local full-service marketing firm: Amanda Broadfoot, vice

>> Jeff Scott goes from director of legal and government affairs to general counsel for the Florida Medical Association. Rebecca O’Hara is the new vice president of governmental affairs.

>> Winners of Leadership Tallahassee’s 2011 awards include: Leader of the Year — Cheryl Phoenix, America’s Second Harvest of the Big Bend; Leadership Pacesetter — Sha’Ron James, Florida Department of Financial Services; Servant Leadership — Jerry Osteryoung, The Jim Moran Institute for Global Entrepreneurship. The Godfrey Smith Past Chairmen’s Award, presented by the Greater Tallahassee Chamber of Commerce, went to James Elliott Messer, of Messer, Caparello & Self, PA.

>> MoneySaver Coupon Books, Inc., known for its colorful direct mail coupon book and online printable coupons, is expanding into Northwest Florida with a new office in Leon County.

>> After a 15-year career as a television news/ sports anchor at CBS, Lee Gordon has joined 180 Communications as the new vice president of Corporate Communications. He will oversee all operations, including the PR, media training, web and video teams. >> Sarrah Carroll is the new assistant executive director of operations at The Florida Sheriffs Association.

>> Scott Dudley has been promoted to director of legislative affairs at the Florida League of Cities and will lead a lobbying team working for the 410 municipalities the League represents.

>> Tallahassee Memorial HealthCare has selected the team of Clemons, Rutherford & Associates (CRA) and FreemanWhite, Inc. to design its freestanding Emergency Center inside the Metropolitan Executive Center on Thomasville Road and I-10. >> Capital Regional Medical Center has been named

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one of the nation’s top performers on key quality measures by The Joint Commission, the leading accreditor of health care organizations in America. Capital Regional was recognized based on data reported about evidencebased clinical processes that are shown to improve care for certain conditions, including heart attack, heart failure, pneumonia, surgical care and children’s asthma. >> Big Bend Regional Healthcare Information Organization, a health information exchange network currently serving nine North Florida counties, has been selected by the Agency for Health Care Administration as one of three organizations to participate in Florida’s first statewide Health Information Exchange. Appointed by Gov. Scott >> Kevin Carroll, 56, of Ausley and McMullen P.A., to the Second Judicial Circuit Court. >> Dr. Brittany O. Birken, 36, of Tallahassee, chief executive officer of Florida Children’s Services Council, to the Board of Directors, Workforce Florida. >> Mark P. Fontaine, 61, of Tallahassee, executive director of the Florida Alcohol and Drug Abuse Association, and Bobby Roberts, 55, of Tallahassee, a media technician at Florida State University, to the Statewide Drug Policy Advisory Council. >> Michael “Mike” Hansen, 59, of Tallahassee, director of the Florida Agency for Persons with Disabilities; Susanne F. Homant, 65, of Tallahassee, president and CEO of The Able Trust; James “Jim” Landsberg, 37, of Tallahassee, equal opportunity officer at the Florida Department of Economic Opportunity; and Aleisa C. McKinlay, 59, of Tallahassee, incoming director of the Florida Division of Vocational Rehabilitation, to the Commission on Jobs for Floridians with Disabilities. >> Cathy Bracher, 61, of Tallahassee, family nurse practitioner at Patients First Medical Center, to the Board of Nursing Home Administrators.

Emerald Coast Local Happenings >> International shipper UPS is moving its regional sorting facility from Alabama to Pensacola Gulf Coast Regional Airport, bringing two daily cargo flights to Pensacola and generating an estimated 30 jobs initially. In return for infrastructure improvements made by UPS, the airport will pay UPS a relocation incentive of $25,000. >> Under an economic development partnership between the City of Pensacola and Hixardt Technologies, Inc., the company has agreed to create at least 100 jobs with an average salary of $45,000 over the next five years in exchange for a property on West Government Street. >> Energy Services of Pensacola, the city-owned natural gas utility, has been awarded a $6.5 million contract for upgrades at NAS Pensacola’s National Naval Aviation Museum. >> Members of the Florida Association of Convention and Visitor Bureaus have elected Dawn Moliterno, executive director of Visit South Walton, as a member of the board of directors. >> The Florida Hospital Association has installed its 20112012 executive officers and trustees, including Al Stubblefield, president and CEO of Baptist Health Care, as treasurer and Laura Kaiser, CEO of Sacred Heart Health System, as a trustee. Local Hirings/Promotions >> Lee P. Gore has been appointed general counsel for the University of West Florida.

BUSINESS NEWS >> The Workforce Development Board of Okaloosa and Walton counties has named Linda Sumblin as executive director. She has been with the board since its inception in 1996 and served as chief operating officer since 2008. >> Erika Wenrick has joined Wenrick Insurance Agency, based in Santa Rosa Beach, as the agency account manager. >> The South Walton Tourist Development Council has hired Jon Ervin as director of Marketing and Communications.

>> Dr. Victor Hultstrand, who earned his medical degree from Florida State University College of Medicine, has joined Advanced Women’s Care.

>> Cox Media in Pensacola has named Raynette Ikner Lewis as media sales services coordinator. >> Baptist Medical Group has added Vicki Roy, M.D., a board-certified internal medicine physician, to its primary care physician network. >> The law firm of Pleat & Perry, P.A. has added former Assistant State Attorney Patrick S. King as its newest associate. >> Trevor A. Thompson has joined Clark, Partington, Hart, Larry, Bond & Stackhouse as an associate in the firm’s Pensacola office. >> Joshua Miller, CPA, has joined the team at O’Sullivan Creel Wealth Advisors, LLP, in Pensacola. Local Honors >> Sacred Heart Hospital on the Emerald Coast has been recognized as a Top 100 Hospitals for Patient Satisfaction by WomenCertified®, the referral source for top businesses and brands identified with women. >> The Hilton Sandestin Beach Golf Resort & Spa was honored with a Visit Florida Flagler Award for outstanding tourism marketing with its series of YouTube “Beachside Reports with the H-Team.” The resort received the second-highest award — a Silver Flagler Award — in the “Creativity in Public Relations” category. >> Mike Viola, director of properties and construction for Baptist Health Care, has been selected as Florida Healthcare Engineering Association’s 2011 Engineer of the Year. >> The Pensacola Downtown Improvement Board awarded the 2011 Golden Brick Award to Rosie O’Grady’s of Pensacola, Inc., for the significant physical improvements to one of Pensacola’s oldest buildings at 310 S. Tarragona Street. The award recognizes the completion of a very visible building improvement project that greatly enhances the appearance, image and vitality of Downtown Pensacola. >> Justin A. Beck, president of Beck Property Company, LLC, headquartered in Pensacola, has earned the

>> Oculofacial plastic surgeon James R. Patrinely, M.D., F.A.C.S., of Pensacola, was listed in the U.S. News and World Report magazine as a Beck “Top Doctor” in Oculofacial Plastic Surgery and Ophthalmology, ranking in the top 1 percent of his specialty. >> Local photographer and Fort Walton Beach native Romona Robbins was chosen as the second prize winner for her “Econfina” image in the Santa Fe Photographic Workshops Summer 2011 photo contest. >> The South Walton Tourist Development Council named Walton County Sheriff Michael A. Adkinson, Jr., its 2011 Van Ness Butler Hospitality Award recipient for the lead role he took in planning and executing strategies to mitigate the 2010 BP Deepwater Horizon Oil Spill. He was particularly cited for his professionalism and dynamic communication skills during national media interviews and local town hall meetings. Appointed by Gov. Scott

>> In the spring of 2012, Pier Park will add new retailers Forever 21, Dick’s Last Resort, Charming Charlie and Francesca’s Collections to its tenant mix. >> BookIt.com has partnered with wholesale travel provider Tourico Holidays and with LeisureLink and its Marketspan platform. Local Honors >> The Florida Association of Chamber Professionals has awarded honors for the Best Tourism/ Visitor Guide to the Panama City Beach Chamber of Commerce. The guide was written and produced by Rowland Publishing. Panama City BeaCh Convention & visitors Bureau 17001 Panama City Beach Parkway Panama City Beach, FL 32413

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>> Summit Bank, N.A., Panama City has again received a superior 5-Star rating from BAUERFINANCIAL, Inc., of Coral Gables, the nation’s leading bank rating and research firm. 1-8 7 7-8 0 8 - 4 32 3

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>> Stephen A. Pitre, 39, of Gulf Breeze, a shareholder and partner at Clark, Partington, Hart, Larry, Bond and Stackhouse since 2006; and A. Benjamin Gordon, 36, of Shalimar, a partner at Keefe, Anchors, Gordon and Moyle since 2005, to the First Circuit Judicial Nominating Commission.

Forgotten Coast Appointed by Gov. Scott >> William “Bill” Williams, 45, of Port St. Joe, a county commissioner for Gulf County, to the Board of Directors, Workforce Florida. >> Leonard C. Costin, 69, of Port St. Joe, a self-employed certified public accountant since 1972; Jessica J. Rish, 35, of Port St. Joe, a real estate manager with Gulf Coast Real Estate L.L.C. since 2007; and Johanna L. White, 51, of Port St. Joe, vice president of business development for Vision Bank since 2008, to the Port St. Joe Port Authority.

Bay

2/4/11 11:19:35 AM

>> Walter B. Smith of Panama City has been board-certified by the Florida Bar as a legal expert in criminal trial. >> HealthSouth Emerald Coast Rehabilitation Hospital received the Hospital of the Year Award during HealthSouth’s annual fall meeting. The award recognizes outstanding performance in development of clinical programs, quality of patient care services and overall operational excellence. >> Sterling Resorts has won the prestigious Flagler Award, which recognizes outstanding tourism marketing, from the Florida Commission on Tourism. Sterling’s Happy Hour Sale promotional email campaign garnered top honors for creativity, innovation, vision and commitment. Appointed by Gov. Scott >> Kimberly K. Spence, 35, of Panama City, chief executive officer of Keeton Corrections, Inc., to the Statewide Drug Policy Advisory Council. >> Jay N. Trumbull, 50, of Panama City, president and owner of Emerald Coast Culligan Water since 1985, to the Florida Transportation Commission.

New Beginnings >> The Economic Development Alliance of Bay County has selected a new slate of officers for 2012. Effective on Jan. 1, they are: Chair Joey Ginn, Vision Bank; Chair Elect/Vice-Chair Allan Bense, GAC Contractors; Secretary John Ed McDanal, Gulf Power Company; Treasurer John Juchniewicz, Carr, Riggs & Ingram; and Past Chair Glen McDonald, Applied Research Associates. >> Local commercial banker Ben Lee has been named to head Hancock Bank’s business and economic development initiatives as

>> DeTect, Inc., is expanding its Panama City operation, moving its corporate headquarters to a 5,000-squarefoot building at 1430 Harrison Ave in Panama City.

Real. Fun. Beach.

>> Dominique Ellis of Pensacola has been named vice president and Florida sales manager for Hancock Investment Services, Inc.

>> ITT Exelis, a mine defense business, has become the first corporate tenant at The St. Joe Company’s VentureCrossings Enterprise Centre, leasing a 105,000-squarefoot commercial facility.

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>> Edwin Rogers, M.D., has been named chief medical officer of Baptist Medical Group, Baptist Health Care’s employed physician network.

commercial market president for the Bay County region.

Certified Property Manager® designation from the Institute of Real Estate Management, an affiliate of the National Association of Realtors®.

Panama City BeaCh

>> Martelle Lorenz, a third generation chef from Pensacola, has been named the new exErvin ecutive chef of Mitchell’s Fish Market, located in Grand Boulevard at Sandestin.

SoundByteS

Lee

I-10 Local Honors >> Art Kimbrough, president and CEO of the Jackson County Chamber of Commerce, has been named to the Florida Association of Chamber Professionals board of directors and will serve as the Northwest Florida regional chair. >> Patrick A. Schlenker, FACHE, president and CEO of Northwest Florida Community Hospital, has been named a Trustee of the Year by the Florida Hospital Association. >> Holmes Regional Medical Center was honored for its reduction of avoidable readmissions in coronary artery bypass graft. Compiled by Linda Kleindienst

850 Business Magazine

DECEMBER 2011 – JANUARY 2012

The Last Word Growing up in New York, even after 45 years away I still vividly remember what the coming of winter felt like. The days grew short, the winds got stronger and more biting, a late fall rainstorm would leave you chilled to the bone. We had lots of cold and rainy Halloweens, but I don’t remember one with snow.

LINDA KLEINDIENST, EDITOR lkleindienst@rowlandpublishing.com

photo by Kay Meyer

So, naturally, my heart went out this fall to those young trick or treaters from my home state when I read the headlines about the “Halloween nightmare” that brought more than 20 inches of snow to some parts of the Northeast. This, I thought, could be the harbinger of yet another long, cold winter for the Northern states. This, I thought, could also be the beginning of a great advertising campaign for Northwest Florida. The nice thing about our region is that we do have seasons. Unlike South Florida, where it’s warm year-round and everything stays green, we do have trees that provide us with fall colors and winter months where the temperature dips enough to where we get the fireplace going and take our heavy coats out of the closet. But it doesn’t last long — and having lived in Tallahassee now for nearly 31 years, I can attest to the fact that we even have had Christmas Days where it was more comfortable to wear shorts than jeans. We’ve been hearing a lot lately about foreign trade missions to bring more business to Florida. But what better time to kick off a campaign to let those shivering Northerners know that there is a better place to hang their hat? Northwest Florida offers great opportunities for new businesses — and you have to believe that a lot of business owners north of the Mason Dixon are already thinking there has got to be a better place to relocate to — and it’s a place that offers the varied amenities needed to lure retirees from the northern climes. Want good health care? We’ve got it. Want culture? From opera to ballet to museums filled with wondrous art, we’ve got it. Higher education opportunities? They abound across the region — with programs to train workers for new jobs or to give older adults

the opportunity to expand their education in retirement. Tax breaks? There are plenty to go around for businesses looking to relocate or expand. And, needless to say, there is no state personal income tax and the state corporate tax keeps dwindling. There’s a new organization that has formed in Tallahassee called “Choose Tallahassee.” Its aim is to convince retiring Baby Boomers (according to AARP research, roughly one in four is willing to relocate) to consider retirement in Tallahassee. Community leaders representing a broad range of interests have come together to kick off a concerted national campaign in 2012 that sends the message we’re open for business and ready to welcome retirees. If they succeed — even just attracting one-tenth of one tenth of 1 percent of the market, or 2,000 new residents — it would add $370 million a year directly to the area’s economy and give the housing market a big shot in the arm. Not surprisingly, local real estate firms are already jumping on the bandwagon. $370 million. Not a number to sniff at. And who knows what entrepreneurial souls might come along with those retirees? The possibilities are limited only by your imagination. So, the message? Hey, baby, it may already be cold outside where you are, but this is a glorious time of year in Northwest Florida. You don’t have to worry about your employees being snowed in or the power to your business being out for the next week. When Gulf Power held its annual economic development summit last month in Sandestin, the message that resounded through two days of meetings focused on the need to promote regionalism, for the 16 counties of Northwest Florida to think like a region. With winter coming on in the North, it presents a perfect opportunity for Northwest Florida to promote itself. But even if that regional approach is not possible yet, it’s serves as a good opportunity for our many communities to think about what type of appeal they might make to prospective new residents and businesses who live sometimes just a day’s drive away — not half a world away.

DECEMBER 2011 – JANUARY 2012

850businessmagazine.com

The Economic Development Councilâ&#x20AC;&#x2122;s

2012 Business Outlook for Floridaâ&#x20AC;&#x2122;s Capital Region Leon, Gadsden, Wakulla and Jefferson Counties

YOU RECYCLE. YOU CONSERVE WATER. YOU DRIVE A FUEL-EFFICIENT CAR. YOU USE ENERGY-SAVING LIGHTBULBS. YOU MAKE CHOICES THAT MAKE OUR WORLD A BETTER PLACE TO LIVE. SO DOES MARPAN

RECYCLING …

Marpan Recycling is committed to being a good neighbor to the community we serve. We are rolling up our sleeves, taking recycling seriously and investing in our environment by operating one of the only Class III recycling facilities in the nation. Marpan Recycling has partnered with Tallahassee/Leon County to accept all materials, except for hazardous and food waste. This partnership has led to several hundred million pounds of waste being recovered and recycled that would have been buried in a landﬁll. Marpan Recycling accepts mixed loads of construction debris, commercial or household waste, including, but not limited to, waste wood, concrete, dirt, metal, carpet, cardboard, plastic, tile, brick, shingles, appliances, furniture and mattresses. Marpan Recycling is located at 6020 Woodville Hwy. We are open Monday through Friday 7:30AM – 4:30PM, and Saturday 8:00AM–4:30PM. Materials brought into the facility are tipped onto a concrete ﬂoor under a roof. We have two scales, so we get you in and out fast. Together we are making a difference by recycling — we are preserving our environment for our children and future generations.

www.marpanrecycling.com | 850-216-1006

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We lcom e l e t te r

In Business to Write Business.

We want to be your business partner when it comes Karen B. Moore

Beth Kirkland

Welcome! On behalf of the Economic Development Council of Tallahassee/Leon County, Inc., (EDC) we invite you to learn more about our region through the EDC’s 2012 Business Outlook for Florida’s Capital Region. We are so proud of what will surely become a valued resource for those looking to learn more about our diverse business community, as well as those looking to celebrate how far we have come. You most likely know that Tallahassee is home to the Florida Legislature, two state universities and one of the largest community colleges in Florida. However, within this journal you will learn so much more about the competitive advantages our area has to offer, as well as the growing targeted industry sectors that are providing for a sustainable regional economy. We hope that the Business Outlook will pique your interest in the Tallahassee area and how the EDC can elevate your business.

to insurance protection. Contact us today for quality business protection from Auto-Owners Insurance. We’ll take care of your business insurance, while you take care of business!

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Thank you,

Karen B. Moore Chairman

Beth Kirkland, CEcD Executive Director

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TAB LE OF CONTE NTS

Welcome Letter

Targeted Industries

13 Business Incentives

16 Transportation + Infrastructure

20 Site Selection

24 Research + Development

26 Startups

28 Educated Workforce

30 Area Vital Statistics

About the Economic Development Council of Tallahassee/Leon County As an affiliate organization of the Greater Tallahassee Chamber of Commerce, the Economic Development Council of Tallahassee/Leon County, Inc. (EDC) is a public/private partnership between the city, county and private investors committed to establishing a competitive business climate that results in job creation. By connecting the private sector, education and local government, the EDC helps join forces to: » foster entrepreneurialism; » advance local businesses; » grow targeted industry sectors; and — » attract innovative companies to our area. By supporting new business development, providing technical assistance and advocacy to regional employers, as well as managing a suite of business retention, expansion and attraction resources, the EDC is creating a sustainable regional economy. To find out more, please visit www.TalEDC.com

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Produced in partnership with:

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Booming Business

Targeted industry sectors provide for a diversified, sustainable regional economy

rom helping small, high-tech companies increase their chance of success in the marketplace to assisting in identifying markets and negotiating licenses for new technologies, the Economic Development Council (EDC) of Tallahassee/Leon County provides specialized business resources for industry sectors that have been targeted to match the region’s strengths, goals and assets — as well as provide for a diversified and sustainable regional economy. These diverse target sectors include: aviation, aerospace, defense and national security; health sciences and human performance enhancement; transportation and logistics; renewable energy and the environment; engineering and research; and information technology. Most importantly, business clusters are forming around the leading targeted industries, strengthening the region’s competitive advantage. The goal of the EDC is to promote high-wage job retention and expansion and to be a one-stop shop for business resources and opportunities, which includes connecting private companies that are seeking research and development support with university-based research institutions. No surprise then that the region’s aviation and aerospace industries are growing when Florida State University is breaking new ground in the area of aeropropulsion. Or that Florida’s capital region has become a hub of clean technology start-ups, many using research from local university programs to spark their inventions and products. For new businesses considering the region, the EDC can provide help with site selection, labor market analysis and job training assistance. And there are a variety of state and local incentives designed to help new businesses relocate here or give a boost to existing businesses looking to expand. 8

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While Tallahassee is home to the Florida Legislature and state government, it also boasts a vibrant business sector. By connecting the private sector, education and local government, the EDC works to foster entrepreneurialism, move projects from research to production, attract innovative companies to the area and create a competitive business climate. What follows is a snapshot of what is happening with some of the targeted industry sectors in the region.

Defense and National Security

The War on Terror needs to be fueled with ammunition, logistics and support equipment, a demand that several defense-related companies located in and around the Tallahassee area are helping to meet without disruption. From a commercially strategic standpoint, national defense companies are finding that the Tallahassee area has several attractive features. The region offers workforce stability, a diverse and sustainable economy fairly insulated from the woes faced by other areas of the country, it’s a right-to-work state and labor costs are low. Employees enjoy the laid-back quality of life, and engineers appreciate being so close to technologically advanced and world-renowned research institutions. Chemring Ordnance is a premier manufacturer of all types of 40-mm ammunition; pyrotechnic marking, signaling, and tactical illumination devices; battlefield effects simulators; hand grenade fuses and other ammunition components. The manufacturing facility is in Perry and administrative offices are located in Tallahassee. The company, which won $100 million in new business in 2011, is a center of excellence for the design, development and production of ordnance, pyrotechnic products and other munition

components for the military, homeland security and first responders. Recent contract wins for the company’s facility in Perry include $52 million for the modification of an existing contract to procure an anti-personnel obstacle breaching system; $9 million for marine smoke and illumination signals; and $22 million for smoke and illumination signals used in marine search and rescue. More than 95 percent of all U.S. military small arms ammo is loaded with propellants from St. Marks Powder, a local manufacturing plant south of Tallahassee. Large-caliber rounds for mortars and artillery are stoked by St. Marks Powder as well. But the company is also the leading maker of commercial smokeless powder

While Tallahassee is home to the Florida Legislature and state government, it also boasts a vibrant business sector.

for civilian use, including the award-winning .22 Rimfire Match powder. Of course, communication is vital for battlefield success, and TeligentEMS of Havana makes sure signals don’t get crossed. This high-tech electronics plant provides service for many original equipment manufacture industries in the fields of radio frequency, fiber optic communication, medical, industrial, instrumentation, computer and military. For more than 25 years, TeligentEMS has been manufacturing products containing RF (radio frequency) technology and its workers are familiar with assembling, testing and troubleshooting RF products. This includes GPS tracking devices,

radio communications equipment, RF smartcards, microwave antennas and RF amplifiers and transmitters. Once you produce the product, you need a way to get it into the hands of soldiers protecting the homeland. Syn-Tech Systems Inc., a company that specializes in materials handling, munitions support equipment and automated fuel management systems, gets that job done. The Tallahassee-based developer and manufacturer of fuel management hardware and software serves 14,000 military and commercial clients nationwide and was recently awarded a $35-million research and development contract with the Space and Naval Warfare Systems Center.

U.S. Rep. Steve Southerland, R-Panama City, applauded the announcement of the three-year contract saying, “It will ensure that Syn-Tech has the opportunity to expand their operations and create new quality jobs in Leon County and the surrounding areas.”

Health Care

A growing region has need of expanded health care options and the area’s hospitals, universities, colleges and the private sector have joined forces to ensure the best is available — from cancer and birthing centers to surgical and urgent care facilities — while at the same time creating a learning environ2012 B U S I N E S S O U T L O O K

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ment to educate the next generation of health care workers. In Florida’s capital city region, worldclass health care is not just a saying but a reality. The area’s health care footprint is not limited by county or state lines, and the quality of care consistently wins national recognition. Capital Health Plan is a local health maintenance organization with a network of 425 doctors serving more than 118,000 members in the Tallahassee area. It’s rated as one of the top health care programs in the nation, especially when it comes to patient satisfaction. In 2011 CHP ranked third in a performance review released by the National Committee for Quality Assurance and has a “5 Star” Medicare Advantage plan — one of only three in the country. The best of both worlds is offered with the non-profit and private hospitals serving the region — Tallahassee

Memorial HealthCare and Capital Regional Medical Center. With a staff of 500 physicians representing 50 specialties, the non-profit Tallahassee Memorial is the seventh largest hospital in Florida. The 770-bed acute care facility provides private patient rooms and has been designated by the

separate entrance for pediatric patients. A new state-of-the-art daVinci HD surgical system, a cancer center, the only pediatric emergency room in the Big Bend region, the area’s only Tomotherapy treatment center and a separate health care center and 24-hour emergency room in neighboring Gadsden County, are just some of the benefits that Capital Regional Medical Center brings to the Tallahassee area. The private hospital, which has only private rooms and provides a full range of services, is owned by HCA and is planning to add an eighth floor. The hospital was recently named one of the nation’s top performers on key quality measures by The Joint Commission, the leading accreditor of health care organizations in America. A collaboration of Tallahassee Memorial Hospital and 35 local physicians from several area practices, led to the Red

Area medical interests have also collaborated with the local hospitals and universities to train the next generation of medical workers, from frontline customer service to doctors.

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state as a Level II trauma center. A wide range of services includes a small psychiatric hospital, a cancer center (which is affiliated with the renowned Moffitt Cancer Center in Tampa) and a heart and vascular center. Because of increasing demand, plans are underway to build a new free-standing ER near Interstate 10 and Thomasville Road which will include a

Hills Surgical Center, a 17,000-squarefoot multi-specialty ambulatory surgery center designed to answer the shortage of operating rooms. The recently opened facility features five operating rooms and several pre-op and recovery rooms and is being used by physicians representing four specialties including: Otolaryngology (Ear, Nose and Throat), Orthopedic Surgery, General Surgery and Obstetrics/Gynecology. Area medical interests have also collaborated with the local hospitals and universities to train the next generation of medical workers, from nurses to doctors. The surgical center is a prime example as it provides an observation corridor where high school, nursing and medical students can observe multi-specialty surgical operations through a glass window, aided by video cameras showing the details. FSU’s College of Medicine was formed with the goal of providing the state with more doctors specializing in family medicine. And, not surprisingly, it has consistently ranked among the top five schools in the nation for the percentage of graduates choosing to do that. More than 1,700 doctors around Florida have agreed to take on FSU’s medical students for one-on-one training. Out of the first 450 graduates, 67 percent have gone into primary care. Florida A&M University has one of the largest colleges of pharmacy in the nation, expanding its operations from the main campus located in Tallahassee by opening extension campuses in Miami, Jacksonville, Tampa and Crestview. These campuses, all affiliated with a major teaching medical center, create outstanding clinical training opportunities for students, provide unlimited opportunities for research and support the infrastructure for the college’s statewide commitment to pharmacy education and public service. The college has produced more than 2,500 graduates, representing 20 percent of the nation’s African-American pharmacists. Graduates average a 92 percent first-time passage rate on the National Board of Pharmacy Examination. The 82,000-square-foot Ghazvini Center for Healthcare Education houses nearly all of Tallahassee Community College’s health care programs and is located in the growing medical complex that includes the Red Hills Surgical Center and Tallahassee Memorial Hospital. Accompanied by cutting-edge technology, students’ training includes responding to

Danfoss Turbocor Compressors was among several businesses to receive the 2011 Governor’s Business Diversification Award.

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emergencies in simulated real-time settings. The Ghazvini Center also houses classrooms, conference rooms, a library, laboratory space and a simulation center. The center is expected to allow TCC to increase enrollment in health care programs by 100 percent in five years. At their Tallahassee campuses, Lively Technical Center and the privately-run ITT Technical Institute and Keiser University provide a wide variety of courses that

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enable students to earn degrees in a wide range of medical areas, including nursing, health science and health services administration.

Clean Technology

The new and emerging “green” industry sector is starting life with several great advantages here in the Tallahassee region. The Florida Green Building Coalition, Inc., has even designated the City

of Tallahassee as a Gold Certified Green City under the Local Government Standard, making it the first in Florida to win that designation after moving from silver to gold in only one year. Perhaps the best advantage of all for green industries is the fact that this community is a hub of education, innovation and research. So it’s only natural that green technology should find a home here and link up with the area’s higher education institutions. In addition, new “clean” technologies and inventions created right here at local universities are heading down the path of commercialization. One example of ongoing research is the National High Magnetic Field Laboratory, known simply as the “Mag Lab.” The only facility of its kind in the United States, it is the largest and highestpowered magnet laboratory in the world. Located in a sprawling 370,000-squarefoot complex near FSU, the Magnet Lab has employees from 50 countries. Among them are physicists, chemists, biologists, engineers, entrepreneurs, artists, electricians and machinists. A key program located at the Magnet Lab is the Future Fuels Institute, which was created to analyze bio-fuels and other fuels derived from fossil resources, and to serve as a global center for fuels research and development. The materials being tested at the Mag Lab, and other think tanks, will pave the way for future technologies that local companies will be able to take advantage of. Forward-thinking employers like Danfoss Turbocor Compressors have done well here. This company, which moved its headquarters and manufacturing plant from Montreal to Tallahassee, was among several businesses to receive the 2011 Governor’s Business Diversification Award. The plant makes high-performance, energy-efficient oilfree magnetic bearing compressors for large scale air-condition systems and won the award based on its leadership in green technologies. A particularly daring high-tech company, Bing Energy, in partnership with researchers at FSU, is trying to develop a less expensive, more marketable hydrogen fuel cell. Such an achievement would be the Holy Grail of the “green” marketplace. Located at Innovation Park, Bing Energy has pioneered a fuel cell that incorporates a thin membrane composed of carbon nanotubes that reduces the

FOSTERING A COMPETITIVE BUSINESS CLIMATE The Economic Development Council of Tallahassee/Leon County (EDC) manages a suite of resources designed to foster the expansion of existing companies and attract new businesses that create high-wage jobs and invest in facilities and equipment. Business dollars go a lot further here because there is no state personal income tax, no corporate income tax on limited partnerships and subchapter S-corporations, no state-level property tax, no property tax on business inventories and no sales and use tax on goods produced in Florida for export outside the state. To assist economic growth, the EDC maintains an inventory of the best local, state and federal programs that support new business development and provide one-on-one navigation through state and local regulatory, permitting and incentive application processes. By helping to keep projects on schedule, from start to finish, businesses are able to accomplish their goals within their required time frames. For further information, as well as a complete list of incentives, contact the Economic Development Council of Tallahassee/Leon County at (850) 224-8116 or TalEDC.com LOCAL INCENTIVES City of Tallahassee/Leon County Targeted Business Program Offers incentives to new and existing businesses that create valueadded jobs within the city and county, rewarding businesses that will diversify the economy, are suited to the local business mix and will generate revenue growth from the sale of goods and services outside the local economy. The program also seeks to reward businesses that locate in designated target areas for economic growth and development; that build environmentally sensitive projects; and that do business with other local businesses. Funds awarded under this program are used to reimburse up to 100% of the cost of development fees and a portion of the capital investment of the business project, based on ad valorem taxes paid. Community Redevelopment Agency The Tallahassee CRA, created in 1998, consists of more than 1,450 acres of residential, commercial/retail and industrial land uses, all conveniently located near the heart of downtown Tallahassee. Included within the boundaries of the redevelopment area are 13 neighborhood communities; seven major commercial/retail areas; and numerous mixed-use areas. The area borders parts of Florida A&M University and Florida State University. Extensive city infrastructure, including water, sewer, electricity and gas, are available throughout the redevelopment area.

STATE INCENTIVES Enterprise Zone The Tallahassee/Leon County Enterprise Zone is nearly 20 square miles in size. New businesses that want to locate there, or existing businesses that want to expand jobs, equipment or square feet, can earn a monthly credit against their state corporate or sales and use tax for wages paid to new employees. Also available: a sales tax refund on equipment, machinery and building materials used in the enterprise zone; a corporate tax credit for a company that establishes five or more new jobs; property tax exemption for child care facilities; tax credits for businesses that donate to approved community development projects. Capital Investment Tax Credit Used to attract and grow capital-intensive industries in Florida, it is an annual credit against the corporate income tax for up to 20 years in an amount up to 5 percent of the eligible capital costs generated by a qualifying project. Quick Response Training Program Designed as an inducement to secure new value-added businesses to Florida as well as provide existing businesses the necessary training for expansion. The program is flexible and structured to respond quickly to meet training objectives. Reimbursable expenses include curriculum development, trainers’ wages and textbooks/manuals. Workforce Florida, Inc., the state’s public-private partnership created to coordinate jobtraining efforts, administers the program.

Urban Job Tax Credit Program The program provides tax credits to eligible businesses that are located within the 13 Urban Areas designated by the state’s Department of Economic Opportunity and hire a specific number of employees. In the Tallahassee Urban Area, the credit is $1,000 per qualified job and can be taken against either the state’s corporate income tax or sales and use tax, but not both. Rural Job Tax Credit — Gadsden, Jefferson, Wakulla An incentive for eligible businesses located within one of 36 designated Qualified Rural Areas to create new jobs, the tax credit ranges from $1,000 to $1,500 per qualified employee and can be taken against either the Florida corporate income tax or sales and use tax. Economic Development Transportation Fund (Road Fund) Designed to alleviate transportation problems that hinder a specific company’s location or expansion decision. The award, up to $3 million, is made to the local government. Qualified Target Industry Tax Refund Program Available for companies that create high wage jobs in targeted high value-added industries. Includes refunds on corporate income, sales, ad valorem, intangible personal property, insurance premium and certain other taxes. Pre-approved applicants who create jobs in Florida receive tax refunds of $3,000 per net new full-time equivalent job created ($6,000 in an Enterprise Zone or Rural County). For businesses paying 150 percent of the average annual wage, add $1,000 in tax refunds per job; for businesses paying 200 percent of the average annual salary, add $2,000 per job. New or expanding businesses in selected targeted industries and corporate headquarters are eligible. Cap of $5 million to single qualified applicant. No more than 25 percent can be taken in one year. Incumbent Worker Training Program Provides training to currently employed workers to keep Florida’s workforce competitive in a global economy and to retain existing businesses. Administered by Workforce Florida, the program is available to all Florida businesses that have been in operation for at least one year prior to application. High Impact Performance Incentive Grant In order to participate in the program, the project must: operate within designated high-impact portions of the following sectors — clean energy, corporate headquarters, financial services, life sciences, semiconductors and transportation equipment manufacturing; create at least 50 new full-time equivalent jobs (if a R&D facility, create at least 25 new full-time equivalent jobs) in Florida in a three-year period; and make a cumulative investment in the state of at least $50 million (if a R&D facility, make a cumulative investment of at least $25 million) in a three-year period. Once recommended by Enterprise Florida and approved by the state’s Department of Economic Opportunity, the high impact business is awarded 50 percent of its eligible grant when operations begin and the remainder when full employment and capital investment goals are met.

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need for expensive platinum. The innovation promises to produce a fuel cell that is more efficient, more durable and significantly less expensive — benefits that could transform the transportation and power generation sectors. Bing, which moved its world headquarters from California to Tallahassee in 2011, was also a winner of the 2011 Governor’s Business Diversification Award. Meanwhile, other ventures are exploring a different type of fuel: Natural gas. Leon County Schools signed an agreement with Tallahassee-based nopetro to build a natural gas fueling station for the district and share back royalties from private sales. The station, set to be operational by August 2012, is the first of at least 11 stations the company plans to build around Florida. Along with reducing the district’s fuel costs, the switch to natural gas will reduce emissions by 89 percent. The one inevitable cost of doing business in Florida is the tremendous cost of electricity. A new Tallahassee-based company, Verdicorp, is helping commercial buildings and industry reduce their consumption of expensive energy — especially at peak hours of the day — by turning waste heat into electricity. “We turn waste heat into dollars,” says Gary Stallons, the company’s chief operating officer. As much as 65 percent of the energy consumed by large gas and diesel engines in commercial buildings and industry goes up the exhaust pipe as heat waste, which is wasted energy. Verdicorp captures part of that waste heat and turns it into electricity, which can be used by the customer to reduce electric bills or be sold back to the utility. The result is saved dollars. And Verdicorp’s state-of-the-art technology can be applied to just about any source of lowgrade waste heat. But what about putting Florida’s abundant sunshine to work? That’s exactly what two new Tallahassee companies are doing. SunnyLand Solar, a recently formed manufacturing company, plans to make solar tubes, the technology of which was invented by physicists at FSU. The company says the technology will revolutionize the concentrated solar market by creating a high-efficient, low-cost solar power system. SolarSink, a kindred spirit, is working on creating a “heat sink system” that captures and recycles heat energy and will be developed as part of a solar power generation system. ★ 14

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Transportation + i nf rastruc ture

Global Transportation Possibilities

Centrally located between three mega regions, Tallahassee is serving as a transportation hub for worldwide commerce

hen Tallahassee became the capital of Florida, it was right in the middle of nowhere. Today, it’s at the center of a commercial world bustling with advances in transit, air travel, public utilities and high-tech business communications.

Land, Sea and Rail

The Tallahassee-Leon County region has approximately 271 miles of principal highways and 343 miles of other roads that serve as major transportation corridors within the central Panhandle region of Florida. Interstate 10 is a major highway that cuts across Tallahassee and provides approximately a 3-hour trip to both Jacksonville on the east and Pensacola on the west. (Its western terminus is Los Angeles.) Other principal highways important to commerce include U.S. Highway 90, U.S. Highway 27, State Road 267 and U.S. Highway 319. Railroads, too, play a pivotal role here. CSX Transportation has a main rail line that runs east and west through Gadsden, Jefferson and Leon counties and carries commodities such as non-metallic minerals, chemicals and coal. Several shortline carriers connect with CSX at strategic north-south points such as Panama City and Perry. Rail shipments serve various distribution nodes and warehouses throughout the region. Ports are another important component of Tallahassee’s transportation network. Nearby Port Panama City is a major global hub for shipping, and it is deep enough to handle most ships in the world. It is one of the primary U.S. ports 16

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for copper imports and it is the port used to transport a half-million tons of energyproviding wood pellets to Europe each year. Just to the east, the Port Authority in Gulf County’s Port St. Joe has plans for a $67 million port expansion.

Come Fly With Us

On the west side of town, Tallahassee Regional Airport continues to make important improvements to attract customers and stay competitive. “Tallahassee Regional Airport, first of all, is an extremely fiscally resilient airport,” said Sunil Harman, director of aviation. “It serves the capital and serves a loyal base of business travel customers. That’s indicated by the fact that all major carriers operate from Tallahassee Airport (including) Delta, US Airways, American Airlines and Continental/United Airlines. Furthermore, the airport is viewed as both a high-class structure and a high yield facility. Many similar-sized cities have lost a great deal of, if not all, of their scheduled air service as the airlines slash capacity in order to manage costs.” To gain an edge over the competition — and lure more passengers — the airport took an extremely proactive approach in diversifying its aviation-related, as well as non aviation-related, streams of revenue, Harman said. In October a plan was completed to implement lowcost, high-impact customer service improvements in the terminal. These improvements include a 40-space cell phone lot, where people can wait for their party to call them without having to enter the airport’s revenue parking area. Harman

said this cuts down the hassles of having to be asked to “move along” according to TSA regulations. Another project in this plan created a new airport entrance marquee/ passenger information center. A third project involves updating the main terminal’s old floor, as well as building in a number of other customer service amenities to the concourse. The airport’s use of smart financing will allow it to be debtfree on the renovations by 2013. Harman envisions transforming the Tallahassee Regional Airport into an international port of entry and airport officials plan to submit an application seeking the designation to the Department of Homeland Security. “That will enable us to begin

Flightline Group began work on the first phase of a new HondaJet dealership in August 2011.

construction of a federal inspection facility to serve international arrivals, initially from the business and charter markets, and ultimately with some scheduled passenger service as well as air cargo service,” Harman said. The airport is pursuing a commercial economic development master plan to evaluate five parcels of land roughly 500 acres in size for non-aviation development. This will include a number of highrevenue activities, such as a technology and business park, university extension center, shopping/retail, logistics, bonded warehouses, light manufacturing, vehicle service plaza, amusement areas and international air cargo. “Those are the uses we put in the

master plan. The airport has 1,200 acres available for commercial economic development,” Harman said, noting the airport’s strong footprint and the clear land that surrounds it. “It’s the Department of Aviation’s plan to have at least 500 acres under lease within five years for third party development. This would result in roughly 60 percent of the airport’s operating cost being offset through land rent. It’s anticipated that the savings will be passed on to the airlines in significantly reduced costs for operating at the future Tallahassee International Airport. So, that is the roadmap of where we’re going, to enhance and draw both air service and employment-generating activities.” Next door at Flightline Group, CEO

Danny Langston said the company’s commerce park, Compass Pointe, is ready to accommodate such an international port of entry. Compass Pointe is located in the “old airport” section, and with a few modifications could fill the bill for that need. “The old terminal for some time was earmarked as a location for customs for the airfield and a port of entry facility,” Langston said. “It makes sense, because the airport already has components in place to make the international airport happen with minimal build-out.” Meanwhile, Compass Pointe is working toward becoming a showcase of technology and innovation. High Performance Magnetics (HPM) broke ground last year on a production facility located just north of 2012 B U S I N E S S O U T L O O K

Transportation + i nf rastruc ture

Compass Pointe, and Flightline Group began work on the first phase of a new HondaJet dealership in August 2011. HPM produces high-tech cable, which will be used in groundbreaking nuclear research in France. It’s just one small step, but could become a springboard for more high-tech tenants that aren’t necessarily related to aviation. The trickle-down effects could be positive for all involved.

Streamlining Public Transit

StarMetro Executive Director Ron Garrison has a vision. He wants more people taking the bus, and he wants to get them to their destination as quickly and efficiently as possible. His team of efficiency experts recently decentralized busing routes to make better use of time. “The models have shown ridership over the next three years will grow between 25 and 35 percent,” Garrison said. Garrison said the city’s awardwinning transit authority is going to put four zero-emission electric buses in service in January 2012. He also predicts that, in time, some old-fashioned streetcars can help the local economy by taking customers and employees directly to downtown destinations. “People love (streetcars), they cost half as much as light rail, they cost less to operate, they revitalize downtown areas and provide for better downtown connectivity,” Garrison said. “We have a whole host of new technologies, like the electric buses. We are only the second city in the nation to get them.”

Cutting Edge Technology

Community and business development can’t happen without the telecommunication infrastructure to support it, and Tallahassee has diverse utility options offering the best of all worlds, including municipally owned, cooperative-owned and investor-owned. Paul Watts, president of Electronet Broadband Communications, said his company has a long tradition of providing innovation in the field of business communication. A local company and economic driver, Electronet began providing DSL service in the late 1990s. From that they built a fiber optic network for the private exchange of medical information, 18

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then in recent years have offered business bundles featuring business telephone service, long distance, Internet access, server co-location, and email, spam and virus protection. Another leading broadband provider is FPL FiberNet, which is committed to growing its network and better serving its customers, said spokesman Steve Stengel. A subsidiary of NextEra Energy, Inc., FPL FiberNet serves telecom companies, wireless carriers, Internet service providers, enterprise and government customers in Florida and Texas through its carrier-grade, fiber-optic network. CenturyLink, the nation’s third largest telecommunications company, features robust products and comprehensive local support, according to Carmen Butler,

The City of Tallahassee, which provides power and water service to thousands of customers, is on the cutting edge of energy management with its “smart meter” technology, the backbone for a “smart grid” system. In 2009, the city was one of 100 nationwide to receive federal grant money to help modernize the nation’s power grid. In areas not covered by the city, Talquin Electric Cooperative stands ready to provide service, and has done so for many industrial and commercial accounts for more than 70 years. Talquin services a four-county area providing electric, water and wastewater services. The company’s engineering plan includes building lines for capacity and growth in 20-year projections to ensure adequate response to demand. Meanwhile, it’s not uncommon for

CenturyLink’s manager-marketing development officer for the region. CenturyLink maintains a best-in-class, national 207,000 route-mile fiber network that spans the U.S. from coast to coast and includes more than 1,800 transport access points. Comcast rounds out the list of hightech telecom/Internet companies that are ready to serve new customers as they arrive, providing high speed Internet, digital cable television, digital voice and wireless Internet. “Economic development is critical to the success of our community,” said KC McWilliams, vice-president and general manager of Comcast Florida Panhandle. The power and utility providers servicing Tallahassee don’t just keep the lights on these days. They are on the frontlines of providing not only sustainable energy production but sustainable business development as well.

service utilities to have their own economic development managers on staff. These certified experts help companies keep existing customers and attract new customers, according to Marc Hoenstine, the economic development manager for Progress Energy. Progress Energy is poised for growth, and serves more than 11,000 commercial, industrial and residential customers in the four-county area, including Opportunity Park and Century Park in Wakulla County and Jefferson County Industrial Park. “What that means is new jobs, new capital investment, an increase in tax rolls and it’s going to lead to a diversification of the local economies so they’re not just depending on one industry, especially in times like this,” said Hoenstine. “We are community partners, and we look at ways to help (clients) be successful in economic development.” ★

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This Space for Rent (or Purchase)

New businesses find several commercial real estate options available

lot of empty space, these aniel Wagnon looks vacancies are not a sign over the Tallahasof a struggling local econsee commercial omy. This is simply a state landscape and sees lots of issue and the moving of room for new businesses. large state agencies. A sigMany options are now open nificant upside is that the to them, including leasing large vacancies can create or buying buildings fora competitive environment merly occupied by state for companies looking to offices, or privately held relocate to or within the properties, or high-tech Tallahassee region.” broadband campuses with Historically, that hasn’t “smart” amenities. always been the case for “The availability of sites Florida’s capital region. Taland buildings … many peolahassee is landlocked by ple don’t realize they play a government and universimajor role in bringing jobs ties and that’s good, but it into the area,” said Wagnon also means there haven’t of Structure Commercial been many empty buildReal Estate, a full-service ings to choose from. Now, firm in Tallahassee. His with more buildings availcompany provides strateable, there are better deals gic, brokerage and propthat a business can get, erty management services because with more supply in all areas of commercial comes better prices. real estate. “If I’m a company that According to the Econeeds 50,000 square feet, nomic Development Council Tallahassee has historiof Tallahassee/Leon County cally never had that. Our (EDC), there is more than occupancy rates are very 1.5 million square feet healthy, mainly because of of office space available the government,” Wagnon throughout more than 250 said. “By being healthy, buildings available, ranging we haven’t had a lot of from single-office suites to supply. But now we have 265,000-square-foot spacSummit East is a technology-ready, supply and some oppores. Many state agencies high-amenity commercial campus. tunities and I see that as have recently left commera means to add jobs that cial space to occupy new are private in nature and state-owned buildings, givnot necessarily in governing out-of-town businesses ment, which is cutting back and trying to become more efficient. looking to locate here a wide variety of unused, privately owned (That’s) the silver lining.” administrative office space to choose from. There is currently about One giant opportunity for business growth is at Innovation 500,000 square feet of office space available, with several blocks Park, Tallahassee’s 208-acre research park and jewel in the crown of at least 100,000 square feet under one roof, or in adjacent camof a high-tech research and development sector. pus-style buildings. “We have about 70 acres of land that can be developed,” said “It has been a long time since large corporations that need Catherine Kunst, executive director of the Leon County Research 200,000 square feet in one building could take a serious look at and Development Authority, the agency that runs Innovation Park. Tallahassee. Now, they can,” Wagnon said. “While no one likes a

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counties), for new businesses to settle in. “I think the (EDC) is terrific at showcasing those properties that are best suited for the needs of the companies looking to locate here,” she said. “I think there is enough diversity of sites to accommodate everybody.” Innovation Park is just one of several Tallahassee success stories. Summit East, a 117-acre high-tech office campus is another. Summit East General Manager George Banks said the commerce park near Interstate 10 is a technology-ready, high-amenity commercial campus supporting forwardthinking companies and their employees in the 21st century. Unlike most technology parks, he said, Summit East handles the leasing, the property management, site development, building design and features “green” LEED-certified construction. “We have 14 new parcels in our Phase Two that we just opened that are ready for construction, fully permitted with entitlements; when you buy it, you can build your building, they are shovel-ready,” Banks said. On site, 300,000 square feet of office

“In terms of pre-built structures, the (former building location of Elbit Systems of America) is currently up for lease. That’s a 78,000-square-foot manufacturing facility. Otherwise, we probably have about 4,000 square feet of office space available for lease, ranging from 150 square feet to 500 square feet.” Kunst said Innovation Park receives “three or four calls a month” from businesses making site selection inquiries. Helping along the process is the EDC, which she said has done a wonderful job promoting the former Elbit facilities to potential users. Meanwhile, the park’s development authority makes it easy for newcomers to move in. “If you want to develop here we can make it easy. You don’t have to go through the city or county development review committee,” she said. “You still need everything permitted, but in terms of having a site plan reviewed, that’s done internally through the development authority.” Overall, Kunst said there are plenty of wonderful locations in Tallahassee, or the four-county metropolitan statistical area (Leon, Jefferson, Gadsden and Wakulla

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space is already built, and 100 percent of it is under lease. “We’re one of the few that enjoy that,” he said. In addition, there is 700,000 square feet of office space-ready land parcels that are permitted, with infrastructure in place and ready to go. Three of the parcels have been sold. At least one building is under construction now, while work on two others was slated to start in November and December 2011. Canopy, Tallahassee’s newest traditional neighborhood community, promises to become another success story. It’s completely permitted and shovel-ready. When Canopy (named for the characteristic canopy roads in the area) is complete, the 505-acre tract on the south side of Centerville Road will be home to as many as 1,500 single-family homes, townhouses and apartments, more than 160,000 square feet of commercial and office space and a planned 7-acre school site — all protected by green spaces that exceed local and state standards. According to Tim Edmond, president of CNL Real Estate & Development, which is developing the site, the community is based on a concept known as the “traditional neighborhood development,” which emphasizes homes, parks, sidewalks, roads and retail centers all joined together in a “walkable” environment. The EDC has a team of recruitment and expansion professionals standing by to help out-of-town companies collect all the facts needed to thoroughly evaluate the region. It provides a full complement of services for free. The EDC staff can help with site selection, labor market analysis, local industry contacts, job training, customized research, coordination of state and local incentives and can provide information on the commercial buildings and sites that are currently available. The EDC’s web portal, www.taledc.com, features an interactive property search feature that gives prospective tenants a glimpse into the markets of the four counties included in the local metropolitan statistical area. Tallahassee itself was named one of the 100 most desirable places to do business in the Spring 2011 issue of Area Development magazine. The list considers 14 highly regarded surveys ranking desirable locations for companies of all sizes. Each survey considers different values and statistics related to job growth and opportunity, which makes this list valuable as a big-picture view of the cities being considered. ★

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Startup City

Tallahassee’s research universities offer opportunities for new businesses

wo of Tallahassee’s biggest business assets are its educational powerhouses that lie minutes from downtown: Florida State University and Florida A&M University. These schools offer more than just entertaining football. Each is home to cuttingedge research that has spawned start-ups and jobs, and produces a talented, skilled workforce to satisfy the growing demands of a thriving community, meeting needs that range from business to the fine arts. From FSU’s world-renowned National High Magnetic Field Laboratory that is the envy of magnet scientists everywhere, to the university’s Jim Moran Institute for Global Entrepreneurship, to the Florida A&M University School of Business and Industry, Tallahassee offers all the right ingredients to make the city a sought-after hotspot for technology startups. It’s already happening, with companies like Bing Energy, PortStar, SolarSink and SunnyLand Solar, which chose to relocate or expand in Tallahassee because of the availability of its world-class research.

Start-Ups Flock to Tallahassee

When Bing Energy chose to relocate its headquarters from California to Florida in 2011, it could have chosen populous South Florida or bustling Tampa Bay. Instead, it picked Tallahassee. That’s because Bing is working with researchers at Florida State University to turn revolutionary nanotechnology pioneered at FSU into a better, faster, more economical and commercially viable fuel cell that will reduce the need for expensive platinum components that have made fuel cells too expensive. This means fuel cells will be more durable and less expensive, which could revolutionize the transportation industry and transform how power is generated. The technology is based on the research and 24

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development of buckypaper at FSU’s HighPerformance Materials Institute. Bing, which will bring 244 jobs to the region, isn’t alone. Companies are being spun off from FSU research every year, from companies that specialize in port security to solar energy. And it isn’t just the presence of FSU that is luring Bing and others to Tallahassee. The capital region’s economic development arm has also made great strides in helping businesses blossom, using local, state and federal solutions to help guide high-tech companies and researchers beyond their early, vulnerable stages of development into the commercial marketplace. “Our organization identified tax incentives and workforce training programs that gave Tallahassee the edge over other communities under consideration,” said Kim Williams, immediate past chairman of the Economic Development Council of Tallahassee/ Leon County (EDC). “Bing Energy is a perfect example of why connecting industry, education and government is so important. In this case, these connections helped us to retain our talent, as well as our university technologies and commercialization, within our community.” Tallahassee is also on the front lines of an effort to license solar tube technology. Two FSU inventors recently created the technology that uses parabolic mirrors to focus sunlight on vacuum-sealed tubes to generate heat. This sought-after invention will be used to generate energy to provide water heating, electric power and refrigeration. A company called SunnyLand Solar is already building a test site in Tallahassee to commercialize this technology. Another example of Tallahassee’s business appeal is Danfoss Turbocor Compressors. The company designs and manufactures the world’s first oil-free magnetic-based compressor for air conditioning systems. The company relocated

its corporate headquarters from Montreal to Tallahassee in 2006. “In Tallahassee, we found a location that could support growth for a hightechnology product from both a workforce and a logistics perspective,” said President and CEO Ricardo Schneider. “We’re very happy here.” The inventor of the Turbocor technology, Ron Conry, has started a new company based on similar technology. Verdicorp is working on a way to develop power by converting waste heat into energy. Just like Silicon Valley start-ups, Verdicorp has found financial support for its efforts from a local venture investment fund and a local investor who has found

Bing Energy is working with researchers at Florida State University’s High-Performance Materials Institute to turn revolutionary nanotechnology pioneered at FSU into a better, faster, more economical and commercially viable fuel cell.

success with his own company, Mainline Information Systems. “We would love to see other Tallahassee business people and entrepreneurs be successful as well, so there is a certain amount of community spirit behind our motivation,” said Rick Kearney, the head of Mainline, an investor and a leader of Vision 2020, the county-seeded investment fund that provided financial support to Verdicorp.

The Right People and Places

Tallahassee doesn’t just offer a huge depth of world-class research. It also has strived to build the right manufacturing and incubation facilities and programs to nurture entrepreneurialism and start-ups.

There is Innovation Park, a research and development park on 208 acres in southwest Tallahassee that is nestled close to the renowned National High Magnetic Field Laboratory, the largest and highestpowered magnet laboratory in the world. FSU is now building the new Aero-Propulsion, Mechatronics and Energy Building (AME), which will merge several different disciplines. The idea is to work toward the development of new energy resources that are more efficient, cost-effective and mitigate environmental impacts. The researchers will collaborate on projects that deal with energy storage, thermal power and the development of a smart power grid.

Aero-propulsion deals with transportation systems and other objects that move through air, influencing the design and fabrication of aircraft, spacecraft, automotive transport and all manner of vehicles in motion. Mechatronics typically includes disciplines such as robotic systems and automated guided vehicles. The magnetic laboratory and the Center for Advanced Power Systems (CAPS), which focuses on electronic power systems modeling and simulations, and the High Performance Materials Institute (HPMI), which improves the performance of advanced composite materials and structures, “will be an anchor point for FSU to expand multidisciplinary research 2012 B U S I N E S S O U T L O O K

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A Sampling of TALLAHASSEE START-UPS AND RESEARCH FACILITIES PORTSTAR: A company called Educational Development Group, a spin-off of a five-year FSU research effort, offers PortStar as a security training and an online reporting system to protect the safety of the nation’s commercial ports. BING ENERGY: This fuel cell development company moved from California to Tallahassee in 2011 to work with FSU-based technology to create more durable and less expensive fuel cells. The company plans to generate 244 high-paid jobs. ADVANCED MANUFACTURING TRAINING CENTER: Located at Tallahassee Community College, the center customizes the training of workers to meet local business needs, providing the technology and tools needed to compete in an efficient manufacturing world. SUNNYLAND SOLAR AND SOLAR SINK: These locally owned companies have linked projects that involve the design and manufacturing of innovative solar technologies that will advance the effectiveness of solar power generation. NATIONAL HIGH MAGNETIC FIELD LABORATORY: The nation’s biggest and highest-powered magnetic laboratory. Known as the “Mag Lab,” it is a huge economic driver for the region, generating jobs and spin-off businesses. HIGH PERFORMANCE MAGNETICS: A manufacturing and management firm that specializes in providing high-quality superconducting magnet products. This business landed a federal contract to demonstrate the feasibility of fusion power. AERO-PROPULSION MECHATRONICS AND ENERGY BUILDING: This building marries three different disciplines to collaborate on projects that will help establish new energy resources that are cost-effective and environmentally friendly. FAMU College of Agriculture: Providing the foundation for the university’s land grant status, the college prepares students to become world class leaders and problem solvers in the fields of food and agricultural sciences and engineering and technology.

programs by connecting many neighboring research centers,” said Chiang Shih, an FSU professor and chair of the Mechanical Engineering department. Together, these research and education facilities not only attract talent to the region, they are helping to train the next generation of experts in competitive fields such as aerospace, alternative energy and health sciences. And grants are helping to fund the research. In 2010, the National Science Foundation awarded the Florida Center for Advanced Aero Propulsion (FCAAP) $3.2 million for development of a next-generation Polysonic Wind Tunnel, which will help develop transformational flow control technologies. “The unique combination of the three 26

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The National High Magnetic Field Labratory

FSU ENTREPRENEURIAL BUILDING: This helps faculty-generated research projects become independent companies by providing the incubation space for early development. INNOVATION PARK: This manufacturing and technology office park, managed by Leon County Research & Development Authority, is located in southwest Tallahassee on more than 200 acres and is home to many of Tallahassee’s cuttingedge technology businesses, such as SunnyLand Solar and Bing Energy. VERDICORP: A new company that captures waste heat and turns it into electricity using state-of-the-art technology that can be applied to a variety of sources. APPLIED SUPERCONDUCTIVITY CENTER: Housed at the Mag Lab and FSU, researchers at the center advance the science and technology of superconductivity and, in particular, superconductivity applications. This is done by investigating low temperature and high temperature materials through research grants and collaborations with other universities, national laboratories and industry.

distinctive yet interconnected disciplines of aero-propulsion, mechatronics and energy is crucial for creating the context for the development of transformational innovations,” Shih said. This building will also help ensure Florida retains its reputation as one of the top states for aerospace and aviationrelated research. To cope with the coming quantum leap in private sector jobs that Tallahassee is expecting from this recent boom in startups and commercialization activity, economic development officials have launched several new programs for start-ups. The EDC maintains an inventory of the best local, state and federal solutions to support new business development. A

recent addition to the local economic development offerings is the EDC’s Entrepreneurial Excellence Program, a course providing resources for small, high-tech companies looking to increase their chance of success in the marketplace through advice on effective business models, team development, legal foundations, marketing strategies, funding opportunities and the sharing of entrepreneurial experiences. The organization also supports technology transfer, licensing and commercialization; research and development; capital raising/ venture capital connections and incubator support. The EDC can also help with site selection, regulatory maneuvering and tax incentives to cultivate a technology cluster unrivaled in Florida. ★

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Training Workers For Tomorrow

Region offers an educated workforce trained and ready for in-demand jobs

skilled workforce and economic development go hand-in-hand — and Tallahassee has one of the best-educated talent bases in the world. More than two-thirds of Leon County’s residents have some college education, the public school district consistently earns an “A” from the state for school and student performance, and the region is home to two major state universities plus one of the largest community colleges. It’s a compelling package of reasons why businesses should consider moving to the region. “Every CEO who gets surveyed on why a company is moving from one place to another, at the top of their list they will put access to universities and the quality of the educational environment,” said Eric Barron, president of Florida State University. “It makes an enormous difference to have a good public school district and universities to partner with.” FSU is a top tier research university that has prompted several researchto-industry spinoffs and Florida A&M University (FAMU) is a premier school among historically black colleges and universities. Both have nationally recognized business schools that graduate savvy entrepreneurs while also providing a wide range of resources to help the local business community, especially emerging companies. Barron said he views FSU as a “big partner” to business, especially as it helps ideas and innovations move from the university’s classrooms and labs into the marketplace. His goal is to make FSU a comprehensive entrepreneurial university. Businesses that locate in Tallahassee get access to some of the brightest and most talented students available, said FAMU President James Ammons. “FAMU contributes immensely to the potential of the Tallahassee region,” he explained. “I say potential because we are in the business of talent acquisition.

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As we talk with prospective students, we tell them, ‘Any place you want to be in life, you can get there from our academic programs.’” Tallahassee Community College’s Center for Workforce Development adds to the talent equation by offering training in fields where workers are most in demand, including information technology, allied health, manufacturing and business, as well as construction and trades. “When new companies are brought in to town, we are usually brought into the conversation to let them know about the programs that we offer,” said TCC President Jim Murdaugh. “If there are certain skills that those companies need, we can modify our programs.” The recently opened Advanced Manufacturing Training Center — a joint effort of TCC and the Economic Development Council of Tallahassee/Leon County (EDC) — provides customized and technologically advanced training for workers in businesses that are already here and is considered a significant resource for attracting new manufacturing businesses to the region with its ability to provide quick response training. Construction of the 24,000-squarefoot training center was funded in part by a $1.8 million grant from the Department of Defense and U.S. Army Research Office that was facilitated through the EDC.

Target Industries

The EDC supports targeted industry

Tallahassee Community College’s Advanced Manufacturing Training Center

sectors that match the region’s strengths, goals and assets and help ensure the local economy is diversified and sustainable while providing quality, high wage jobs. Those sectors include: aviation, aerospace, defense and national security; engineering and research; health sciences and human performance enhancement; information technology; renewable energy and the environment; and transportation and logistics. Many educational offerings and programs in the region have been designed

to complement those targeted sectors. “When you look at the program mix we have at FAMU, many of the academic programs are drivers in this new economy,” explained Ammons. “As we look at the new jobs in the 21st century, they are high tech, they are in the health care sector … and about one-third of our students are majoring in disciplines such as science, technology, engineering, mathematics and the health sciences.” TCC has opened the Ghazvini Center for Health Care Education in the heart of the city’s burgeoning health care corridor, close to both major hospitals and the Red Hills Surgical Center. All of the school’s health care programs (except for the dental program) are now located at the 85,000-square-foot Ghazvini Center, where students train on cutting-edge technology that allows them to respond to emergencies in simulated real-life settings. Within five years, TCC is expected to double its enrollment capacity in health care training programs. Just down the road is the Red Hills Surgical Center, where nursing students from TCC, medical students from FSU and students from local high school career academies are able to watch surgical procedures from a separate observation room. The surgical center is a joint venture between Tallahassee Memorial Hospital and 35 local physicians from several area practices. The EDC worked with the city and county to provide the center with innovative permitting and tax incentives and also ensured that the observatory would be included to help train the future health care workforce. “We work hard to create a competitive business climate where our economic engines, like health care, can thrive,” said EDC Chairman Karen Moore.

Public Schools

The Leon County School District has consistently earned top grades from the state on the performance of its public schools and the area’s individual public high schools earn mostly A and B grades each year. Operating in support of the schools is the Lively Technical Center, which operates a wide variety of programs designed to prepare workers for several of the key target industry sectors, including renewable energy, health care and IT. The school districts in the four counties covered by the EDC also offer career academies that give students multiple

educational choices, ranging from culinary arts to health sciences to finance and engineering. In Leon County, career academies offered at the five high schools include: criminal justice, engineering, finance, construction, information technology, early childhood and health sciences. A technical training center for high school age through adult, Lively provides a varied curriculum that prepares students for the work place and includes courses in

careers as varied as cosmetology, graphic design and practical nursing. Lively’s aviation program at the Tallahassee Regional Airport is designed to train students in the skills, knowledge and related abilities necessary for entry into the aviation maintenance profession. When finishing the program, students are prepared to take the Federal Aviation Administration Airframe and Powerplant (A&P) Certification exam. ★

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Population, 2010

Labor Force, 2010

Tallahassee. . . . . . . . . . . . . . . . . . . . . . . . . . . . 275,487 MSA (Leon, Gadsden, Jefferson and Wakulla counties). . . . . . . . . . . . . . . . 367,315

Leon County. . . . . . . . . . . . . . . . . . . . . . . . . . 148,389

Age Distribution of People (Leon County): Under 15. . . . . . . . 16.3% 55 to 59. . . . . . . . . . 5.8% 15 to 19. . . . . . . . . . . 9.9% 60 to 64. . . . . . . . . . . 5% 20 to 24. . . . . . . . .15.9% 65 to 74. . . . . . . . . . 5.3% 25 to 34. . . . . . . . . 14.6% 35 to 44. . . . . . . . . . . . 11% 75 to 84. . . . . . . . . . 2.9% 45 to 54. . . . . . . . . 12.2% 85+. . . . . . . . . . . . . . . 1.2% Income (Leon County) Median Household Income, 2009 . . $40,725 Average Annual Wage, 2010. . . . . . . . $39,556 Education Level, Leon County, 2010 Graduate or Professional Degree. . . . . . 18.76% Bachelor’s Degree. . . . . . . . . . . . . . . . . . . . . . . . 26% Associate’s Degree . . . . . . . . . . . . . . . . . . . . . 9.14% Some college, no degree. . . . . . . . . . . . . . . 18.9% High school diploma or equivalent. . 18.86% Less than high school diploma. . . . . . . . 8.32% High School Graduation Rate, 2010. . . 80.2%

Unemployment Rate (October 2011)

Educational Institutions Barry University — Bachelors, Masters Embry-Riddle Aeronautical University — Associates, Bachelors, Masters Flagler College — Bachelors Florida A & M University — Bachelors (11,289 Undergraduate Enrollment), Masters, Professional, Doctorate Florida State University — Bachelors (31,418, Undergraduate enrollment), Masters, Professional, Doctorate ITT Technical Institute — Associates, Bachelors Keiser University — Associates, Bachelors, Masters Lively Technical College — Associates Tallahassee Community College (Enrollment, Approximately 14,000) — Associates, Certificate Programs

Tallahassee MSA. . . . . . . . . . . . . . . . . . . . . . . . . 7.9% Leon County. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.7% Gadsden County . . . . . . . . . . . . . . . . . . . . . . . . . 9.9% Jefferson County . . . . . . . . . . . . . . . . . . . . . . . . . 8.4% Wakulla County. . . . . . . . . . . . . . . . . . . . . . . . . . 7.6% Housing Tallahassee Median Residential Sale Prices (Januray-September 2011): Detached Single Family Home. . . . . $164,675 Condo. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $74,900 Townhouse. . . . . . . . . . . . . . . . . . . . . . . . . . . $80,500 Manufactured/Mobile Home. . . . . . . . $38,500 Taxes Corporate Tax — 5.5 percent of Florida net income (less $5,000 of net income exempted, $25,000 starting Jan. 1, 2012) Personal Income Tax — None Sales and Use Tax — 7.5 percent total rate in Leon County

Sources: U.S. Bureau of Labor Statistics, Bureau of the Census, Economic Development Council of Tallahassee/Leon County, TallahasseeLeon County Planning Department, Department of Economic Opportunity

Innova�on Park is home to top-notch university and commercial R&D. Join leading technology innovators such as the Na�onal High Magne�c Field Laboratory, Danfoss Turbocor, Bing Energy and the High Performance Materials Ins�tute. Innova�on Park oﬀers businesses the room and resources to grow. 850-575-0343 | 1736 West Paul Dirac Drive, Tallahassee, FL 32310 | www.innovaƟon-park.com

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