2019 Okaloosa and Walton County Business Journal

2019 Okaloosa and Walton County Business Journal

AN 850 BUSINESS MAGAZINE SPECIAL REPORT

VISITATION / INDUSTRIALIZATION / INNOVATION

850 Business Magazine

|

SUMMER 2019

|

53

OKALOOSA COUNTY ECONOMIC DEVELOPMENT

GIGASITE!

Okaloosa County takes steps to make Shoal River Ranch shovel-ready

BY STEVE BORNHOFT

I

n the United States east of the Mississippi River lie 70 megasites, large parcels of land capable of hosting a cluster of businesses, typically industrial in nature.

In Okaloosa County, the Shoal River Ranch site easily qualifies as one. So easily that the county’s economic development agency has coined a term and placed it in a category by itself.

“We call it a gigasite,” said Nathan Sparks, the executive director of the Economic Development Council of Okaloosa County, citing its 10,000-acre size.

And Shoal River — seven miles from the Mossy Head interchange and seven miles from downtown Crestview — isn’t just large. Adjoining Interstate 10 and U.S. Highway 90 and with a connection to the CSX Railroad, it is strategically located to the point where it was attracting interest even in its raw form.

“I have been doing economic development for 21 years, and I have not laid eyes on another site with the potential that Shoal River has,” Sparks said. “It was competitive even as raw land, and it was validating to come close with some opportunities before any improvements were made.”

Those near-successes made it clear to Sparks and the county what needed to happen to push projects over the finish line.

“We had to resolve some weaknesses, which fortunately are not proving insurmountable,” Sparks said.

One, the site is owned by a third party, the Holland M. Ware Charitable Foundation of Boise, Idaho.

“That was seen by some prospects as a risk factor,” Sparks said. “The Holland Ware Foundation has been a great partner and I can’t say enough positive things about the relationship, but site consultants recommended that the county get control of at least a portion of the property. We wanted to move past reliance on a third party, even as good as they may be.”

Okaloosa County commissioners took that step. In December 2017, they entered into an option agreement on 1,700 acres judged to be the prime piece of the overall tract.

“The land under option is the most likely to attract significant development, at least initially,” Sparks said.

The next hurdle for the county was extending utility lines to the site.

“Water is four miles away, and sewer is three miles away. That was a significant issue when promoting the site to industry,” Sparks conceded.

To resolve that weakness, the county made an application for $1.5 million in Triumph Gulf Coast funding to cover a big chunk of the estimated $4.5 million cost for line extensions.

A contract between Okaloosa County and the Triumph Gulf Coast board was finalized in August of last year. A focus for the remainder of this year will be getting design work complete and bids awarded. Construction of the lines will take place in 2020.

“Then,” Sparks enthused, “we will have a true shovel-ready parcel to promote.”

While sites are a major factor in economic development, labor — more often referred to by Sparks and his peers as “talent”— may be an even greater consideration.

At this writing, Okaloosa County, at 2.7 percent, has the second lowest unemployment rate among Florida’s 67 counties. That’s a healthy indicator, but Sparks noted that “it can be a problem for employers who are looking to add headcount and to recruit the biggest and brightest.”

To combat that problem, Okaloosa County deploys what Sparks calls its “not-so-secret weapon” — men and women exiting the military.

54

|

SUMMER 2019

|

850businessmagazine.com

Nathan Sparks is optimistic that obstacles to development at Shoal River Ranch have been removed.

“I HAVE BEEN DOING ECONOMIC DEVELOPMENT FOR 21 YEARS, AND I HAVE NOT LAID EYES ON ANOTHER SITE WITH THE POTENTIAL THAT SHOAL RIVER HAS. IT WAS COMPETITIVE EVEN AS RAW LAND, AND IT WAS VALIDATING TO COME CLOSE WITH SOME OPPORTUNITIES BEFORE ANY IMPROVEMENTS WERE MADE.” — NATHAN SPARKS, executive director of the Economic Development Council of Okaloosa County

PHOTOS BY JENNIFER G PHOTOGRAPHY (SPARKS) AND STAFF SGT. PETER THOMPSON

“In terms of business growth and attraction opportunities, the military demographic is something that resonates with everyone we speak with,” Sparks said.

Some 1,200 people separate from Eglin and Hurlburt Field Air Force bases and their related missions each year and become available to enter Okaloosa County’s workforce.

“Not all will stay,” Sparks said. “They may have family obligations or educational pursuits that will take them beyond our area. But many do stay.”

Three years ago, about 35 percent of the 1,200 separatees elected to remain in Okaloosa County. In subsequent years, that number has grown to exceed 50 percent. Too, the county becomes home to military personnel who separate from the service in Nevada or California and, fondly recalling time they spent at Eglin or Hurlburt Field earlier in their careers, elect to come back.

“We’re not just talking about military retirees who have done their 20 years,” Sparks said.

“Some separations may occur after two years or six or 10. We benefit by seeing experience levels from junior to senior.

“So, when we are on the prospecting trail working with businesses who are coming into the area, we can assure them that while we have a competitive environment due to low unemployment, that doesn’t mean that they will be unable to fill positions.”

It’s a major selling point made all the bigger by characteristics of the separatees: mission focused, drug free and, said Sparks, “99 percent have security clearances. That is worth its weight in gold to businesses operating in the Department of Defense world, in particular.”

Talent, Sparks said, can be “a bigger consideration than location or incentives or the two of them combined.

“People tend to assume that economic development is all about providing incentives, and that businesses choose a location based on who is going to give them the most benefits.

It’s still a bidding war, but the currency is now more human capital than monetary. Money is still part of the puzzle and it can certainly be a factor, but incentives don’t make a bad location good and talent, given the state of the world, is driving the majority of location decisions.”

Okaloosa County, then, is doing a good job of checking the talent and locations boxes, and it is addressing infrastructure, too, not just at Shoal River.

In November of last year, county voters, by a 24-point margin, approved a 10-year, half-cent sales tax that became effective Jan. 1. Unlike neighboring counties, Okaloosa County previously had been without a local-option tax.

The half-penny tax is estimated to generate about $19 million annually for public safety, transportation and storm-water system improvements. Almost $12.7 million of the total will go to the county. The rest will be divided among Okaloosa’s nine municipalities, based on population.

“Nobody likes to pay more for what they are buying, and generating support for the tax required educating the electorate,” Sparks said.

“But the good thing here is that much of the revenue generated will result from purchases of hamburgers, boat tours and hotel rooms by visitors. We think it’s a good way to approach additional funding and thankfully a large percentage of voters agreed.”

The levy, Sparks said, will be a good thing for economic development.

“Infrastructure is critical. If you don’t have efficient road or utilities systems, you’re not in the game. You may even struggle to accommodate your existing industry. We weren’t at that point, but because our community has grown at a good clip, we could see that if we didn’t do something, we would find ourselves in a real predicament.”

Sparks commended county commissioners for having the foresight to get a sales-tax measure in front of voters.

“As we see fruits of the effort in the form of projects that benefit our communities, we’re going to be seen in greater regard by businesses who are making expansion decisions,” Sparks said. “Utility networks will be improved and expanded, and we will see new corridors for development. And, we’re doing it in a smart way.”

The Economic Development Council of Okaloosa County maintains several standing committees. One serves to promote a collegial environment among the county’s technologybased employers. Another provides support for

the defense installations present in the county.

A third relates to a Tri-County Partnership initiative that links Okaloosa County with Walton and Santa Rosa counties in exploring possible partnerships with the military.

For example, the partnership brought about the combining of Eglin’s and Okaloosa County’s waste pickup contracts on Okaloosa Island, thus saving the Air Force money. Too, Okaloosa County is using waste concrete used for target practice on the Eglin range to build artificial reefs.

Sparks is a co-chairman along with an Eglin representative on a real property subcommittee.

“At Eglin, there are non-accessed, underutilized parcels not contiguous to the balance of the range,” Sparks explained. “They are owned by the federal government but could be made subject to long-term leases and developed, bringing income to the base and economic value to the community.”

The Hilton Garden Inn and the Holiday Inn on Okaloosa Island were built on leased property. Late last year, ground was broken at the 50-acre Freedom Park, a future mixed-use development.

“But it took three years to get the Freedom Park deal done with the government,” Sparks said. “The length of the extended use lease process can be a deterrent to a developer who is ready to proceed. We’re looking for ways to streamline the process to make it more business oriented.”

Generally, Sparks said, prospect activity at the EDC is good.

“Any economic developer will tell you that things could always be better,” Sparks noted.

“Economic development is a percentage game.

The more opportunities we have, the greater the odds of success. But we are pleased to have a robust and increasingly diversified pipeline with more than 20 active projects.”

850 Business Magazine

|

SUMMER 2019

|

55

U.S. 98

CONGESTION RELIEF Project is adding lanes to U.S. 98 in Walton and Okaloosa counties

W

hen Fudpucker’s co-owner Tim Edwards makes his daily commute to work and sails by temporary entrances, countless traffic barrels and frazzled drivers battling construction on U.S. 98, he can’t help but miss 1989.

“That was the year Fudpucker’s Destin location opened, right when the Emerald Coast Parkway had been completed,” said Edwards. “Back then, Fudpucker’s, Abbott Realty and The Track were the only buildings in our area of Destin; things are a little different now.”

Indeed, Fudpucker’s is just one of hundreds of Destin businesses dealing with U.S. 98’s latest facelift, a $75 million project that will expand the four-lane highway into six from Airport Road in Okaloosa County to Tang O-Mar Drive in Walton County, and add sidewalks, stormwater detention ponds and drainage infrastructure.

Construction in Okaloosa County, which began in the summer of 2017, has reached its “halfway point,” said Tanya Branton, a public information specialist with the Florida Department of Transportation (FDOT). The Okaloosa County portion of the project is expected to wrap up early in 2021.

In an email, Branton delineated the roadmap for the work ahead:

BY HANNAH BURKE

PHASE I (Airport Road to west end of Henderson Beach State Park) — Traffic has been shifted to the center section to construct the new eastbound travel lanes on the south side of U.S. 98. Construction of the new eastbound lanes will be close to completion by the end of 2019, including the realignment of CR 2378 (Scenic Highway 98 at U.S. 98). Traffic will be shifted to the south side (new eastbound lanes), and median construction will begin.

PHASE II (West end of Henderson Beach State Park to Matthew Boulevard) — Traffic will remain in the center section to construct the new eastbound lanes. New eastbound lanes are anticipated to be completed in 2019, and traffic will shift to the south side to complete median construction.

PHASE III (Kel-Wen Circle to Walton County Line) — In February 2019, westbound traffic was shifted to the south side of the roadway, and construction of the new westbound lanes began. Construction of the new westbound lanes is anticipated to be completed by the end of 2019.

PHOTO ILLUSTRATION COURTESY OF FLORIDA DEPARTMENT OF TRANSPORTATION

Rendering depicts U.S. 98 as it will appear following completion of a widening project in Okaloosa and Walton counties.

56

|

SUMMER 2019

|

850businessmagazine.com

Preparing Florida’s workforce for factories of the future.

At the University of West Florida, engineering, business and technology collide, forming new and uncharted frontiers in 3D additive manufacturing.

We’re connecting scholars and industry leaders to game-changing solutions that push the boundaries of innovation and collaboration. Together, we’re reengineering the future of industry.

What impact will you make?

uwf.edu/NoLimits

850 Business Magazine

|

SUMMER 2019

|

57

U.S. 98

“ROAD IMPROVEMENTS ARE CERTAINLY ALWAYS WELCOME, BECAUSE THEY IMPROVE ACCESS AND THE FLOW OF GOODS AND PEOPLE, ALL OF WHICH RELATES TO ECONOMIC DEVELOPMENT ON A BASIC LEVEL.”

The biggest obstacles, said Branton, will be “summer traffic and inclement weather conditions.”

“Most work this summer will be behind a low-profile barrier wall and two lanes of traffic will be maintained in each direction,” she said. “Construction activities should have minimal impacts to the traveling public.”

But what bearing might they have on the flow of traffic to businesses at the peak of Destin’s tourism season? Edwards said that was the first question on everyone’s mind as soon as the project was green-lighted.

“The harsh reality is that major road construction projects aren’t without casualties,” Edwards said. “Places of business that are already marginal to start with might not make it. You’ve got to make yourself visible from the road to keep your numbers up.”

According to Heather Ruiz, senior director of marketing and leasing at Destin Commons, construction is prompting even Destin’s hugest shopping hub to alter the ways in which it attracts visitors.

“We’re trying to be more strategic in where we place billboards to ensure that people who may experience any summer traffic bottlenecks know that we’re here,” Ruiz said.

People looking to get out from behind the wheel will be glad to know that Destin Commons will be partnering with 654 Limo and several major resort shuttle systems to establish the center as a drop-off point.

“We’ve been pretty lucky in that construction is flanking us on either side,” Ruiz said. “We’ve got multiple entrances from 98 and 293, so that makes this process a lot easier.”

For many smaller plazas and standalone structures with only one entrance, access continues to be stymied by development. Branton says portable, changeable message signs and permanent mounted signs are being installed to safely direct traffic to paths that offer ingress, while additional signs will list which businesses are accessible by each.

58

|

SUMMER 2019

|

850businessmagazine.com

The FDOT is dedicated to keeping businesses apprised of progress, changes and any shifts in traffic patterns. Quarterly e-newsletters and weekly traffic advisories are sent to the project’s stakeholders, and project staff will reach out to any businesses they feel will be directly impacted by future development.

For Edwards, whose restaurant on Emerald Coast Parkway is in the epicenter of Destin, that communication has been critical.

“I will say that Jeff Randall with Metrics Engineering has been busting his chops for us,” said Edwards. “He’s made an otherwise unpleasant experience a positive one by being extremely communicative and supportive throughout. There’s never been a time where we’ve been left wondering what’s happening, and I think that speaks well about Randall and the project’s managers.”

As of this writing, Edwards reports that Fudpucker’s has seen an increase in revenue despite construction, perhaps due to Destin’s increased popularity as a spring break destination.

It had him looking forward to the summer season and beyond.

For Nathan Sparks, the executive director of the Economic Development Council of Okaloosa County, enhancements to 98 have been “an exercise in patience, but frankly, overdue.”

“Road improvements are certainly always welcome, because they improve access and the flow of goods and people, all of which relates to economic development on a basic level,” said Sparks. “U.S. 98 is obviously a major thoroughfare for our entire region. It’s used not just by tourists. It’s used by businesses and residents.

“We’re currently going through a lengthy process that I liken to surgery.

Surgery is never fun, but the reason you undergo it is to make yourself better. Right now, we’re in surgery and it’s not enjoyable, but we’re going to be a better community for it.”

ILLUSTRATION COURTESY OF FLORIDA DEPARTMENT OF TRANSPORTATION

—NATHAN SPARKS, executive director of the Economic Development Council of Okaloosa County

850 Business Magazine

|

SUMMER 2019

|

59

G.S. GELATO

THE SWEET TASTE OF SUCCESS

G.S. Gelato has never strayed from the Italian way

BY LIESEL SCHMIDT

At the rate of 116 units per minute, a machine dispenses gelato into pint containers for sale at retail outlets.

60

|

SUMMER 2019

|

850businessmagazine.com

that sometimes the dream really is worth the risk. She is given to the kind of passion that conquers obstacles.

Naturally, the Italian accent doesn’t hurt her case. In fact, it makes it all the more romantic.

It gives context to the degree of adventurousness that she — as someone young, bold and deeply in love — embraced when she took the leap that would forever change the course of her life and open up a whole new world. Italians, by their nature, are a passionate people, a people driven by heart and determination in ways that

pragmatic Americans often don’t understand.

We think, while they feel. They love without reservation. They celebrate life. They burn with passion. And they act boldly.

This intrepid Italian woman might never have found herself facing such an adventure without a partner by her side. The right partner. And for Simona Faroni, that man was Guido Tremolini.

The story starts simply enough: Two young lovers come to America on vacation and fall in love with the beaches of the Emerald Coast. It’s a familiar tale, and one that has happened time

PHOTOS BY JACK GARDNER PHOTOGRAPHY

“W

e were young, and we were bold …”

For some, those words could connote regret or precede a story of failure so great that it forever ruined a life. But hearing them now, I detect no hint of disappointment hidden in the corners of the phrase, nothing hanging in the air other than matterof-factness as a woman in silky-smooth voice tells the tale of her sweet journey to success.

The passage was not without trials and rocky roads, but it was one that gave her all the reason in the world to smile and insist

THIS INTREPID ITALIAN WOMAN MIGHT NEVER HAVE FOUND HERSELF FACING SUCH AN ADVENTURE WITHOUT A PARTNER BY HER SIDE. THE RIGHT PARTNER. AND FOR SIMONA FARONI, THAT MAN WAS GUIDO TREMOLINI. and time again, so much so that it’s dismissed without much thought.

It’s what didn’t happen that advances the story.

“During our visit, we noticed there was no gelato! In Italy, there are gelato stands on every street corner, and it’s a part of the culture,” Faroni said.

The vacuum stood out to the couple, and they recognized it as an opportunity to turn their love of gelato into a business and bring something special from their homeland to people who had yet to experience one of Italy’s greatest gifts.

“We had nothing, and we didn’t even speak the language. But we were determined to make this dream a reality and offer authentic Italian gelato to this beautiful country,” Faroni explains.

In 1995, the fact that anyone other than Italian transplants and well-traveled Americans

Simona Faroni and Guido Tremolini cradle dogs Pepper and Jackson in the lobby of their corporate office.

had never even heard of gelato, much less tasted it, was both a complication and an opportunity.

It would make their plan all the more unusual and intriguing, but it would also challenge ice cream-loving Americans to step outside of their comfort zone. Would anyone try it? Would it become popular, or would it fail?

The key to it all was creating the product in a thoroughly authentic way, from the equipment used in producing it to the ingredients that were used. After all, the point was to bring a true taste of Italy to Americans, and that couldn’t be done if what they were offering didn’t truly taste the way it should, with the creaminess, consistency and richness of flavor that make gelato such a delicious treat.

The course seemed clear enough, and in an ideal world it would have been: Import

machinery from Italy, set up shop and start production. But as they began to bring their vision to life, Faroni and Tremolini soon learned that dreams in America can sometimes be strangled by red tape.

“We imported our equipment from Italy, which was sold to us by the leading manufacturers of gelato equipment,” Faroni said. “But at final inspection, we were told the equipment was not approved, and we were faced with two options: either buy new equipment, or move back to Italy. In order to create gelato with pure authenticity, we needed certain important components, mainly the equipment from Italy. So, at the time, there was really not much hope.”

But Faroni and Tremolini knew they couldn’t give up when they had only just begun. They started to learn English. They went to school at 850 Business Magazine

|

SUMMER 2019

|

61

G.S. GELATO

night and then found some local engineers who were willing to help them. “ We went to the Food and Dr ug Administration, and they pretty much opened up a branch just for us, helping us make the necessary modifications so that they could approve the equipment,” Faroni recalled.

After 14 months of hard work, the equipment was approved by the FDA and the U.S. Department of Agriculture, and G.S. Gelato became the first manufacturer of authentic, artisanal gelato and sorbet in the United States.

Over the past 20 years or so, the small operation that set up production in Fort Walton Beach has become a go-to manufacturer of desserts for countless labels whose 62

|

SUMMER 2019

|

850businessmagazine.com

names line the freezer shelves of grocery stores all over the country.

It’s an impressive operation, with testing facilities to develop new flavors and new recipes, manufacturing plants, packaging and shipping facilities. There’s hardly any sign remaining of the early years of G.S. Gelato — the G for Guido, the S for Simona. But what is still there are the important things at the very heart and soul of the business: the passion and love.

And despite the fact that Faroni and Tremolini could easily have sacrificed their foundational principals in the interest of cutting costs and increasing production, they remain committed to using the very best Italian ingredients and following the Italian way of doing

things. It’s the secret to their success, and the reason that they have become a market leader.

They have won countless awards and accolades including being named one of Florida’s “Top 50 Companies” by GrowFL in 2018 as well as being well named one of Inc. 5000’s fastest growing private companies for three years in a row in addition to winning various flavor and innovation awards. And the woman with the silky-smooth Italian voice who dared to dream?

She’s won numerous awards for her role as an influential female leader in industry.

The couple at the heart of it all might no longer be quite so young, but they’re clearly still young at heart and in love with the work they do.

PHOTOS BY JACK GARDNER PHOTOGRAPHY

Counterclockwise from left: Simona Faroni serves a Gelato Affogato — a scoop of gelato in a cup of espresso; Guido Tremolini stands by machinery used to mix, pasteurize and cool gelato prior to packaging; product is kept in a freezer cooled to -10 degrees; lids move through the production line.

CONNECTED. INVESTED. INVOLVED.

FOR ALL YOUR COMMERCIAL REAL ESTATE NEEDS

EXPERIENCE COUNTS The Commercial Division of Counts Real Estate Group, Inc. has quickly become the leading commercial real estate services provider in Northwest Florida. We provide professional representation services for buyers, sellers, owners, investors, landlords and tenant in all aspects of commercial real estate property.

COUNTS REAL ESTATE GROUP, INC. COMMERCIAL DIVISION 30-A EMERALD COAST 5231 E. County Hwy 30-A, #100 21901 PCB Pkwy Santa Rosa Beach, FL Panama City Beach, FL (850) 231-1483 (850) 249-1414 CountsOn30A.com CountsEmeraldCoast.com

THOMAS DRIVE 2104 Thomas Drive Panama City Beach, FL (850) 249-3615 CountsRealEstate.com

PANAMA CITY 3009 Hwy 77, Suite H Panama City, FL (850) 248-3615 CountsPanamaCity.com

850 Business Magazine

|

SUMMER 2019

|

63

Business Lending is a Process - Not an Event

Justin Wimberly and Johnny Jones of American Commerce Bank in Tallahassee offer both experience and expertise to commercial and real estate lending.

American Commerce Bank goes out of its way to help you prosper in Tallahassee.

Local banks succeed as their communities succeed. American Commerce Bank (ACB) makes it a priority to champion commercial lending in a manner that suits the needs of its business banking customers.

One city. One bank.

“We pride ourselves in structuring loans that match the parameters of an investment,” says Johnny Jones, Tallahassee Market President.

“For example, ACB offers amortizing structures that span the life of a loan.

Most banks make “balloon loans” which mature at inconvenient times and trigger a full re-underwriting of the deal. By offering rate re-sets rather than balloon structures, ACB provides confidence to the borrower that a project won’t be threatened with a mid-term refinance. It’s an important distinction that separates us from our peers.”

Customized Commercial Lending is Our Strength Commercial and real estate lending requires both experience and expertise. Industryspecific experience is key to understanding the financial requirements of a project, and expertise is required to structure a loan that matches the cash flow and investment needs of a borrower. Term loans, revolvers, lines of credit, draws, interim and perm financing all have their places in commercial finance—just not all in the same place!

“We pride ourselves in structuring loans that match the parameters of an investment” Johnny Jones, Tallahassee Market President, ACB

Customized lending is what we do best.

We are a Community of One American Commerce Bank is redefining “community” banking. We are a local bank (Tallahassee, Atlanta & Bremen, GA) that provides a helpful combination of experienced lenders and sophisticated on-line banking services to meet the needs of both businesses and consumers. Our bankers are second to none in offering advisory financial services.

64

|

SUMMER 2019

|

850businessmagazine.com

People banking with people For more information about American Commerce Bank, stop by the Tallahassee office at 536 North Monroe Street, or visit www.AmericanCommerceBank.com.

America is made up of many communities.

Together we are a Community of One We’re in the business of helping our community to prosper.

Think all banks are the same? Stop by our Tallahassee office and visit Johnny Jones (if you don’t know him already).

Johnny will show you how we deliver big bank services at a community bank level. It’s people banking with people. Together we are A Community Of One.

People banking with people 536 North Monroe Street • Tallahassee, FL 32301 • 850.681.7761 www.americancommercebank.com 850 Business Magazine

|

SUMMER 2019

|

65

BEAST CODE

SHIP ON A TABLET Innovators are revolutionizing military training

BY MARTHA J. LAGUARDIA-KOTITE

Christian Wirth

66

|

SUMMER 2019

|

850businessmagazine.com

PHOTOS BY TODD DOUGLAS PHOTOGRAPHY

M

atthew Zimmerman firmly believes he can provide a software engineering solution that will changes the future of training for the Department of Defense while boosting mastery of the skill and saving the military millions of dollars.

He began this journey in 2014. The 29-year-old is the founder and chief executive officer of Beast Code, a small software engineering company. Zimmermann and his team of 70 employees successfully demonstrated and applied their game-based, interactive software application aboard the Navy’s new guided missile destroyer, the USS Zumwalt (DDG1000). The solution provided a fully interactive suite of digital tools, blending the ship’s technical manuals, structure, systems, logics, procedures and courseware into a tablet-based training and maintenance support application.

“We have a whole ship on a tablet,” said Zimmerman of the mobile application called an Integrated Training and Maintenance Support System (ITMSS). He said the Zumwalt received more than 400 hours of Power Point training, which was converted and provided on a tablet.

The 3D solution included the ship’s engineering rates, damage control, combat information center and some of the ship’s bridge training. User friendly, visual indicators show the cause and effect of opening or closing a valve, a fault indication or system failure warning on the ship’s operating system.

“They used our simulation for their light-off assessment,” said Zimmerman of the ship’s engine start inspection. “This is normally done with the ship’s hardware. They can do it all from a tablet.”

Five years ago, Zimmermann graduated with computer science and software engineering degrees from the University of West Florida. He took a leap of faith. Leaving an internship to start his own company, he encouraged Christian Wirth, a fellow intern at Applied Research Associates in Niceville, and five other colleagues to join him. They worked out a strategic business plan, which included a Navy client they had cultivated as interns. This introduction to the Navy sparked their business idea.

“We didn’t know we could do this for the Navy fleet,” said Wirth, 25, the director of engineering for Beast Code. “Once we built this analysis tool and shared it with the ship’s crew, they just fell in love. They got hooked, and we rode the ground swell.

ITMSS illustrates how one fault indication warning or valve relates to the rest of the ship, and how to not break a multi-billion-dollar vessel.”

Wirth said the crew showed the tool to the ship’s captain. The captain liked it and asked how he could obtain it. Beast Code used crowd sourcing at the sailor level to figure out what were the right tools, what was needed and what fit with the younger generation’s learning style to refine the training solution. With buy-in from both the crew and shore-based program managers, Zimmerman said, “We forged relationships on both sides. The managers had the relationship with the program office in D.C., and that’s how we got into meetings to talk with captains who are in program management.”

The Navy realized greater training efficiency using the application and cost savings of over 85 percent compared to existing training systems, according to Gerry

ZIMMERMANN AND HIS TEAM OF 70 EMPLOYEES SUCCESSFULLY DEMONSTRATED AND APPLIED THEIR GAME-BASED, INTERACTIVE SOFTWARE APPLICATION ABOARD THE NAVY’S NEW GUIDED MISSILE DESTROYER, THE USS ZUMWALT (DDG1000).

Roncolato, a retired Navy captain and senior advisor for Beast Code. “This is a generation that learns by interactive games,” said Roncolato. “We provide a training product far removed from the traditional death by PowerPoint.”

Beast Code was awarded Navy contracts, sub-contracts and partnerships with giants like L3 and Lockheed Martin Corporation. What started around a conference table five years ago grew into a company that’s on track to realize $10 million in revenues for 2019.

Beast Code’s name was derived from football player Marshawn Lynch’s “Beast Mode,” a term for doing hardcore, focused activity. According to urbandictionary.com, it also means a “superhuman state of being, in which animal instinct takes over mind and body.” The lifestyle at Beast Code requires such instinct, focus and agility. To deliver new products on a fast deadline, usually, a couple of weeks, adds pressure.

Pressure, they thrive on.

Styled after Silicon Valley titans, management fosters collaboration and innovative ideas. In The Pit, a large area of low-walled rows of cubes, lighting was dimmed in half the space for those who prefer to work in the dark.

For those who thrive in light, they had a bright side. There are no seat assignments. Free food, snacks and beer are on hand in the galley. Coders ranged in age from 25 to 27 years old, aside from a couple interns. A few workplace rules have developed among the self-proclaimed “nerds” who work around-the-clock. No Stinky Nerds came about after the gym was installed. “Software never sleeps and neither do we,” said Zimmermann.

While the office environment was collegial and many company social events in town infuse their lives with fun, they have experienced business challenges.

“We’re going to take on the entire fleet,” said Zimmermann. His mission

Matthew Zimmerman

to bring their application to multiple platforms across the Navy and distribute it to different customers like the Air Force, Marine Corps and Army means having the technology to automate the application’s updates.

“We started with input from the shipyard. Taking the 3D rendering, tagging all that data and automating it,” explained Wirth. The Beast Code model became more cost effective and a departure from the traditional, by hand, method used by competitors.

“The Navy spends hundreds of millions on training,” said Zimmermann.

“We’re talking about tens of millions to integrate the entire fleet and provide a cost effective method for maintaining those capabilities.”

To support this scaling, Zimmerman said he will grow the company roster by 40 people. Potential candidates are messaged on LinkedIn, live in the area or have decided they want to work here. A Beast Code interview takes about an hour, but it’s intense. The applicant has to pass a coding test and be innovative and passionate. They take only the best.

Located in Fort Walton Beach, Beast Code was recognized at the Grow Florida Companies to Watch Awards as one of the top 50 small businesses to keep an eye on.

Beast Code, a small software company, thinks big; its training programs will save the U.S. military millions.

850 Business Magazine

|

SUMMER 2019

|

67

WALTON COUNTY TOURISM

GROWTH CURVE South Walton’s visitation numbers keep rising

S

outh Walton County is not a “Book Four Nights, Get Fifth Night Free” kind of destination, and the characteristics of their visitors reflect that reality.

The average annual household income among them is $223,600. Fully 75% of visitors stay in a condo or rental home. Only about half travel with children.

“To a huge extent, our biggest responsibility is to continue to deliver on our brand promise of a quality experience with high value,” said David Demarest, the communication director for Visit South Walton, a bed-tax-funded tourism promotion organization. “We are not about deals.”

That proposition works. Analysis performed for Visit South Walton by Downs & St. Germain Research for 2018 found that visitors spent an average of 6.3 days per stay in the market, and 39 percent have made 10 or more visits to the destination.

BY STEVE BORNHOFT

And, said Demarest, Visit South Walton has begun to ask itself the question, “How much is too much?” with regard to at least the summer season.

Visitation in 2018 grew by 4.1 percent over the previous year.

“That’s a good number,” Demarest said, “especially because we have seen growth in accommodations inventory. But South Walton will get to a place, especially given that we are 40 percent preserved land, where our numbers will plateau. We recognize that, and we’re good with that.”

Accordingly, Visit South Walton has begun to shift more of its budget to acquiring beachfront property, developing new beach accesses and generally refurbishing and beautifying the area.

“A lot of people don’t know that the Timpoochee Bike Trail (which runs along 30A) is one of our projects,” Demarest said.

Still, Visit South Walton is working to boost visitation from November through February and in late spring and late summer.

Event and targeted marketing will help fill those gaps, Demarest said, “and we think that business travel is going to be an important sector for us to continue to expand.

“Conferences are a great opportunity.

Meeting planners choose destinations in much the same way that vacationers do. They just don’t talk about it that way. They are going to a conference to continue their education, they will say, but they would like to do it in a pleasant place. They would like to enjoy local cuisine and, in many cases, they would like to stay beyond their conference and tack on a vacation.”

The Sandestin Golf and Beach Resort, the Hilton Sandestin Beach Golf Resort & Spa and the newly opened Hyatt Place Sandestin at Grand Boulevard all provide meeting

“TO A HUGE EXTENT, OUR BIGGEST RESPONSIBILITY IS TO CONTINUE TO DELIVER ON OUR BRAND PROMISE OF A QUALITY EXPERIENCE WITH HIGH VALUE. WE ARE NOT ABOUT DEALS.” — DAVID DEMAREST, communication director for Visit South Walton

Homes at the WaterSound development occupy a thin stretch of land that separates emerald water from blue.

68

|

SUMMER 2019

|

850businessmagazine.com

PHOTOS BY LOVE IS WILD PHOTOGRAPHY (VARNEY), KURT LISCHKA (DIGITAL GRAFFITI) AND COURTESY OF HILTON SANDESTIN BEACH GOLF RESTORT & SPA (MEETING ROOMS) AND VISIT SOUTH WALTON (AERIAL)

facilities. Business people also gather at The Pearl in Rosemary Beach and at Watercolor.

“In many cases, we are best suited for executive retreats that involve a relatively limited number of participants,” Demarest said. “Small groups may opt to rent a five-bedroom beach house and hold their meetings there. That’s a cool way to do it. We have private chefs that can cater events like that.”

For the business traveler and the vacationer alike, South Walton offers advantages and experiences that Demarest suggested are, shall we say, rather continental.

“Think about the toll roads and the traffic in L.A. or Orlando or other major cities, whereas here you can ride your bike from Seaside to Grayton Beach,” he said. “Traveling from one community to another in South Walton is a lot like visiting towns in Europe. You are going to experience something different in each community. It’s a low barrier to a high-quality experience.”

To people Demarest may meet on press trips and at travel expos, he often describes the Emerald Coast as “closer geographically and culturally to Nashville than Miami.”

Such explanation is often necessary. “There are still plenty of people in America for whom our part of Florida is still a blank spot on the map,” Demarest said.

South Walton’s “culture,” perhaps surprisingly, is a “destination attribute” that visitors assign low importance and low ratings, according to the Downs & St. Germain research. The attribute rated most highly is “white sand and blue water,” while “comfortable place to unwind” is the attribute seen as most important.

Regarding “culture,” Demarest said, “people may be comparing us to museums in Manhattan or even Santa Fe. I always say I don’t want to compete with Napa on wine. Forty percent of South Walton is preserved land, but that doesn’t mean we’re going to compete with Yosemite. We don’t have the Museum of Modern Art, but we’ve got the beach and we’ve got lots of great local artists and opportunities to buy art and view art and live an artistic lifestyle.”

While the arts may not be visitors’ chief reason for coming to the beach, “we think it is a huge value added and a point of differentiation for us when people get here,” Demarest said.

For that reason, Visit South Walton is a big supporter of the Cultural Arts Alliance of Walton County and its efforts to produce events including Art Month South Walton in May and the Seaside Songwriters Festival in February.

“It’s cold during Songwriters,” Demarest said, “but people come here specifically for that event and they fill rooms and, in many cases, they buy homes afterwards.”

Too, Visit South Walton is supporting the Walton County Commission as it takes steps

outlined in what may be the most notorious House bill in the county’s history — HB 631 — to formally establish the county’s Gulf beaches as public.

“Everyone but the beachfront homeowners say that, of course, the beaches belong to everybody,” Demarest said.

ANOTHER PENNY

The state, Demarest added, is determining whether Walton County qualifies to collect a “high impact” penny of bed tax reserved as an option for counties with low populations relative to the number of visitors they entertain. If Walton County is deemed eligible, a super-majority vote of the County Commission would be required to tack the additional penny onto the existing 4 percent bed tax.

“Our neighboring counties are at 5 percent,” Demarest pointed out. “We have one of the smaller bed tax rates among all the coastal counties in Florida. It makes sense to me to bring us in line with neighboring counties.”

Proceeds from the additional penny, if it is approved, would be devoted to infrastructure improvements.

Generally, Demarest said, “Our goal is that local businesses be able to count on a consistent revenue stream throughout the A busy events calendar and facilities for busy meetings make year. We all want to be able to Walton County an ideal setting for business-and-pleasure trips. live here and, if you have chilFrom top: Jenna Varney displays paintings at ArtsQuest; dren, you want them to be able projection artists light up Alys Beach; meeting rooms at the to live here and have good jobs Hilton Sandestin Beach. and that’s only going to come from having a solid economic base.

“That base shouldn’t just be tourism, but when you are looking to build your economy, you don’t kill the goose that is laying the golden egg. You harvest those eggs. Tourism does a lot to attract new businesses to the area. If you look at the people who move here and start a business, the first time they came here was on vacation.”

Indeed, Walton County tourism generated nearly $4.7 billion in spending in 2018, provided county government with 67% of its revenue and accounted for a whopping 77% of retail spending.

“It’s hard to ignore the value of tourism,” Demarest said.

Growth in visitation has resulted, in part, from the addition of more direct flights linking area airports with cities including St. Louis, Houston and Dallas.

“Texas is a huge emerging market,” Demarest said. “Atlanta is our No. 1 city for visitors, but Texas is our No. 1 state.

“If you talk to someone in Texas, everything is better and bigger there. They have the best barbecue, the best looking people. But beaches are the one thing that Texans are not super proud of.

They concede that we’ve got the best beaches.

“They don’t even put up a fight.”

850 Business Magazine

|

SUMMER 2019

|

69

OKALOOSA/WALTON COUNTY STATS

OKALOOSA COUNTY RESIDENTS

Rate Their Quality of Life Highly A STUDY performed by the Haas Center at the University of West Florida for the Okaloosa County Health Department found that 32% of residents are “highly satisfied” with the county’s quality of life and another 55% are “satisfied.”

1% FLORIDIANS WHO LIVE IN OKALOOSA COUNTY

$213 18%

AVERAGE AMOUNT SPENT DAILY DURING STAYS BY VISITORS

PEOPLE WHO WORK IN LEISURE/HOSPITALITY SECTOR OF ECONOMY

Sources: UWF Haas Center; Office of Economic and Demographic Research (Florida Legislature)

2.7% UNEMPLOYMENT RATE AS OF DECEMBER 2018

20% EMPLOYED PEOPLE WHO HOLD JOBS IN GOVERNMENT

SOUTH WALTON COUNTY IN 2018, the total economic impact of tourism in South

Walton County totaled $4,699,566,300, including $3.175 million in direct spending. The total also included $798,390,100 in induced spending (increased business spending resulting from tourism dollars) and $725,293,600 in indirect spending (increased household spending resulting from tourism dollars).

4,171,900

NUMBER OF VISITORS TO SOUTH WALTON IN CALENDAR YEAR 2018

$884

AVERAGE AMOUNT SPENT DAILY DURING STAYS

BY VISITORS

9.1 AVERAGE RATING VISITORS GIVE SOUTH WALTON ON SCALE OF 10

53 MEDIAN AGE OF VISITOR

41% VISITORS WHO USE SEARCH ENGINES IN PLANNING TRIP Source: Downs and St. Germain Research

70

|

SUMMER 2019

|

850businessmagazine.com

TOP PHOTO COURTESY OF OKALOOSA COUNTY EDC; BOTTOM PHOTO COURTESY OF VISIT SOUTH WALTON

Tourism’s Impact Totals Billions of Dollars in