2011 SC Biz Issue 2 by SC Biz News

Summer 2011

power of startups S.C. focuses on spurring and nurturing startups

Scramble for funding

Earmarks ban complicates S.C. projects

Special Section: Top Hospitals Elevating the quality of care

CHANGE SERVICE REQUESTED 389 Johnnie Dodds Blvd. Suite 200 Mt. Pleasant, SC 29464 SC Biz News

If you think South Carolina ETV is just what you see on TV and hear on radio... Think again. ETV’s reach in South Carolina goes well beyond TV and radio. ETV’s education service is known nationwide as a model for delivering educational content, training teachers and providing ready-to-learn programs, including its educational portal OnePlaceSC. This service is available to every school in the state, and is also used by the Criminal Justice Academy for public service training and recertification, MUSC for pharmaceutical updates, and municipal and county associations for live streaming and video-on-demand. ETV is the only place to see South Carolina’s legislative process in action, with more than 800 hours of gavel-to-gavel coverage broadcast annually. ETV Radio is the primary vehicle for statewide information during natural disasters and other emergencies. It serves as a backbone of the state’s Emergency Alert System. Business and industry leaders who want to do business in South Carolina focus on quality of life as one important factor in locating here. ETV’s programming and content improve the quality of life in the state, and it is paid for by contributors. To learn more about the ETV you don’t see, visit scetv.org/lifeline.

operations optimized. a new approach to staffing. More than just a me-too, cost-plus staffing company, Sunstaff is committed to helping manufacturers and distribution centers optimize operations and streamline your contract labor solutions. Ultimately, our goal is to reduce your labor spend, Increase your productivity and exceed your quality standards. Give us a call for a no-cost, no-commitment operations analysis today. Flexible Pricing Strategies Additional Labor for Short and Long Term Projects Operations and Labor Management Scheduling, Productivity, Quality Assurance and Cost Management Capacity, Labor, Production and Resource Optimization

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YOU’LL WORRY LESS ABOUT YOUR RESULTS ONCE YOU LEARN MORE ABOUT OURS.

A consumer reporting group has placed Providence Hospital Heart & Vascular Institute among the 50 Top-Rated Heart Programs in the nation based on data from the Society of Thoracic Surgeons. By achieving the highest level of surgical results, our patients and their families worry less about their results and recovery. Another reason we are South Carolina’s Heart Hospital.

W E a r e S O U T H C A R O L I N A’ S H E A R T H O S P I T A L . providencehospitals.com Call Providence Health Connect at 877.256.5381 for more heart information A Ministry of the Sisters of Charity Health System

Ranked Among

50 TOP-RATED Heart Programs in America

Contents Vol.5, Issue 2

CEO and Publisher - Grady Johnson gjohnson@scbiznews.com • 843.849.3103 Vice President of Sales - Steve Fields sfields@scbiznews.com • 843.849.3110

Summer 2011

cover

Managing Editor - Andy Owens aowens@scbiznews.com • 843.849.3141

The power of startups

Special Projects Editor - Allison Cooke Oliverius aoliverius@scbiznews.com • 843.849.3149 Senior Copy Editor - Beverly Morgan bmorgan@scbiznews.com • 843.849.3115 Staff Writer - Ashley Fletcher Frampton aframpton@scbiznews.com • 843.849.3129

Is small business development and entrepreneurship the key to building South Carolina’s economy?

Staff Writer - Matt Tomsic mtomsic@scbiznews.com • 843.849.3144

Ensuring the future of startups..... 15 Searching for talent.................... 20 High-tech a growing focus in economic development............ 22 Photo/Leslie Burden

Cover Illustration/Ryan Wilcox

FEATUREs

3 | Viewpoint

Account Executive - Bennett Parks bparks@scbiznews.com • 843.849.3126

8 | Trends 9 | Spotlight:

Dorchester County

Circulation and Event Manager - Kathy Allen kallen@scbiznews.com • 843.849.3113

48 | 1,000 words

Circulation, Event and Business Coordinator Kim McManus kmcmanus@scbiznews.com • 843.849.3116

R O L I NA N OF SOUTH CA PA L AS S O C I AT I O OF THE MUNICI A P U B L I C AT I O N

ISSUE 2

2011

A catalyst for growth

cture to Cities improve infrastru development promote economic

Downtown tours

tion projects Leaders visit revitaliza n in peer cities for inspiratio

nt Block Grants allow Community Developme to improvements crucial cities to complete nt efforts. economic developme

Guide TO

Technical Colleges

By Matt Tomsic

licates S.C. projects

Not so black and

By timing the tides, some of the largest ships in the world already expansion opens, the call on the Port of Charleston. demand for deeper water When the Panama is expected to grow. Canal (Photo/S.C. State Ports Authority)

Learn more about the Technical Colleges of S.C.

SC BiZ | w w w. s c b i z m a g . c o m

ON IN S.C.

Earmarks ban comp

hether a substantial professor of law at Charleston change or a political Charleston received Law School and an 86% of atrophied attorney sideshow, the presiin the earmark world, Wyche P.A. in Greenville. with the money. dent’s and Congress’ ” Ellis said. Simpearmarks kins focuses Without the traditional ban has uprooted on comparative conaccess South Carolina a traditional stitutional to those sums of money, lawmakers way for the federal design and constituthe S.C. originally government to tional State Ports Authority’s wanted $400,000 law. for fund local projects, harbor the Army causing legisdeepening project Corps of Engineers Since 2008, $35.5 skidded to a study to lators to scramble million stop because to send federal has deepening the harbor, of the ban. been earmarked for but dollars home. the Port that figure shrank Steve Ellis, vice president to $50,000 by of Charleston and the Earmarks were an of April since most Port of Taxpayers easy tar- Georgetown, of the fiscal year for Common Sense, get as lawmakers according to the Ofhad passed. looked to trim fi said the ban caused ce of Management the federal budget some unand Budget. avoidable Rep. and the counJim Clyburn, D-S.C., chaos. The money funded try’s ballooning defi dredging vowed to work administratively cit by cut- and “We are going to maintenance projects ting spending and have to go – going as well through pork projects, as directly to the corps some growing pains Project SeaHawk, and said John Simpkins, a Homeland agencies as President Barack an assistant Security start exercising those Obama’s adpilot program. de- ministration cision making muscles – to get money for that have the study. In mid-April, Sen. Lindsey Graham, R-S.C., put holds on Senate business until Charleston Harbor was addressed. He lifted those holds April 15, citing progress made with Vice President Biden and Senate leadership. Joe On May 17, Clyburn announced Charleston Harbor received $150,000 from the Army Corps of Engineers’ U.S. work plan to begin the study. Graham and Rep. Tim Scott joined Clyburn on a conference call to talk with reporters about getting the federal money

A P U B L I C AT I ON

A publication for the Municipal Association of S.C.

& DISTRIBU TI

S.C. Delivers

PORTS, LOG ISTICS

SPECIAL SECTION PAGE 39 E

B U S IN E S S

SPECIAL SECTION PAGE 32

Cities Mean

The entire contents of this publication are copyright by SC Business Publications LLC with all rights reserved. Any reproduction or use of the content within this publication without permission is prohibited. SCBIZ and South Carolina’s Media Engine for Economic Growth are registered in the U.S. Patent and Trademark Office.

SPECIAL SECTION INSIDE

Creative Director - Ryan Wilcox production1@scbiznews.com • 843.849.3117

Director of Business Development - Mark Wright mwright@scbiznews.com • 843.849.3143

4 | Upfront

Top Hospitals

Staff Photographer - Leslie Burden lburden@scbiznews.com • 843.849.3123

Senior Graphic Designer - Jane Mattingly production2@scbiznews.com • 843.849.3118

Departments

Staff Writer - Laura Brandt lbrandt@scbiznews.com • 843.849.3119

OF SC BIZ NE WS

white

Simpkins said the earmarks system isn’t perfect but can be fixed. Earmarks can have a positive impact by allowing members to attach items to bills, which See EARMARKS, Page

➤

Ports, Logistics & Distribution in S.C.

Mailing address: 389 Johnnie Dodds Blvd., Suite 200 Mount Pleasant, SC 29464 Phone: 843.849.3100 • Fax: 843.849.3122 www.scbiznews.com

Viewpoint

S.C. can deliver exceptional health care

or health care in America, these are the national debt, the issues surrounding health best of times and worst of times. They care demand thoughtful dialogue and serious are the best because medical science is problem-solving, not ideologically driven poadvancing rapidly. Our capacity to stave off litical bickering. While we dither on this issue, the ravages of disease and extend our lives has we’re digging a deeper hole for ourselves and increased dramatically. If you have affordable future generations. access to health care and you do your best to maintain your health, you are very lucky to be Health care in South Carolina living in America. Here in our state, leaders within our health It is also the worst of times, care industry, along with because poor nutrition, lack civic, business and governWe are the of exercise and other lifestyle ment leaders, have been doing issues are causing such probsome remarkable work on the only advanced lems that upcoming generaquestion of how to design and industrialized tions of young people might build health care systems that even have shorter life expecdeliver high-quality care at nation in the tancies than today’s senior the lowest possible cost to the world that has citizens. The resulting chronic largest number of people. The disease is helping fuel the outvarious initiatives under way failed to find a of-control growth in the cost start with the recognition that way to provide of health care. The problem health care is delivered at the is further compounded by regional level. While we must a reasonably lack of adequate care for those unavoidably rely on state and adequate level of without affordable coverage. federal funding to help carry We are the only advanced the financial burden, it’s the health care to all industrialized nation in the work at the community level citizens. world that has failed to find that will really make the difa way to provide a reasonably ference. adequate level of health care to The accomplishments to all citizens. This should be a source of shame date tend not to grab headlines, but they and embarrassment. What is it that makes us should. Did you know Medicare chose South so inept or incompetent or apathetic that we Carolina among the first five states to take can’t pull this off? part in a new demonstration project? The goal Believe it or not, I don’t really care whether is to allow communities to better organize and you hate “Obamacare” or love it. To me, this manage care for Medicare patients and share legislation is really only a placeholder for a in cost savings from more efficient delivery of very big and still unresolved problem that care. our country is facing. Like the issue of the Did you know that the Duke Endowment

Subscription Information SCBIZ reaches thousands of South Carolina’s top decision-makers. Add your name to the list by ordering a print subscription to SCBIZ. Your subscription also includes SCBIZ Daily. Delivered to your e-mail inbox each weekday morning, SCBIZ Daily is your link to statewide business news. One year for $43.50

is funding a program called AccessHealthSC (through the SC Hospital Association)? This program assists local communities in developing sustainable programs to care for the uninsured by using nonprofits and other resources to deliver free and discounted services to those in need. Did you know that the SC Health Information Exchange is developing systems to support the sharing of patient information among hospitals and physicians in order to deliver more efficient and effective care? Or that Health Sciences South Carolina has been organized by our leading medical and postgraduate institutions across the state to accelerate the application of medical research to the day-to-day care of patients in our state? These are just a few examples of what’s been going on “behind the scenes.” The groundwork is being laid to create regional health care systems in our state with groundbreaking capabilities to deliver health care efficiently and effectively to all South Carolinians. We don’t need to wait for the verdict on “Obamacare.” We just need to take the ball and run with it, right here in South Carolina. SC

BIZ

Bill Settlemyer bsettlemyer@scbiznews.com

New subscribers: Subscribe online at www.scbizmag.com or call 843.849.3116. Current subscribers: Change your address online at www.scbizmag.com or call 843.849.3116.

w w w. s c b i z m a g . c o m | S u m m e r 2 0 1 1

Upfront

Upstate

reg i o n al News | D ata

Midlands

Lowcountr y

Amazon tax provision moves one step closer to Haley’s desk

he S.C. Senate in late May approved a sales-tax-collection exemption for the big national Internet retailer Amazon to ensure that the company will go forward with its plans to create 2,000 jobs and invest $125 million in a Lexington County distribution center. The Senate amended the House-passed version of the bill, meaning it must go back to the House to see if the members concur with the changes made in the Senate. If the House concurs with the changes, which Sen. Nikki Setzler, D-West Columbia, described as corrections to “inartful drafting” in the House, the bill would go to the governor. The Senate also attached an amendment calling for Amazon to print on every receipt to a South Carolina resident purchaser that state sales and use taxes are due on the purchase. The legislation, insisted upon by Amazon to continue work on its project in Lexington County’s Saxe Gotha industrial park, exempts the Internet retailer from being the tax collector for a five-year period. Gov. Nikki Haley has told legislators she would not do anything to prevent the bill from becoming law if the General Assembly sends such a bill to her desk.

“I think we’re finally moving out of being just a little tourism town, a tourism and port town in Charleston and really developing a vibrant third economy here, which is around the tech community.” Nate DaPore, PeopleMatter See the full story, page 20

$145,000 That’s the median price of homes sold in South Carolina in March 2011. According to the S.C. Association of Realtors, 4,038 homes were sold this March, down 8% from 2010. 4 SC BiZ | w w w. s c b i z m a g . c o m

Amazon’s distribution center sits partially finished in Saxe Gotha Industrial Park in Cayce. Amazon officials suspended the project in late April following a 71-47 rejection of a sales tax collection exemption by the S.C. House of Representatives. (Photo/James T. Hammond)

The Senate amendment would: • Put additional requirements on Amazon to shorten timeframes, to have the facility in service by Jan. 1, 2013, and to create 2,000 full-time jobs with benefits. • Maintain 1,500 jobs through Jan. 1, 2016. “This bill is not a sales tax exemption. It just says Amazon is not a tax collector for the state of South Carolina. The tax is still due from the purchaser,” Setzler said. “If you roll over a $68 million to $70 million

payroll into the economy, where is it going to be spent? It’s going to be spent in surrounding businesses, in the grocery stores. It will be spent across the state, at the beach resorts,” Setzler said. Some senators said the issue comes down to seeing that the state of South Carolina keeps its word to economic development prospects. “How far am I going to get with Boeing suppliers if the word is out there that ‘South Carolina will promise you the world but you won’t get it’,” said Sen. Hugh Leatherman, R-Florence.

S.C. firms drop on Fortune 500 list Domtar Paper Co., which maintains its U.S. headquarters in Rock Hill, remained the highest ranked S.C. company on the Fortune 500 list recently released by Fortune magazine, though it dropped a few spots. It was followed by AbitibiBowater of Greenville and Scana Corp. of Cayce. Domtar and AbitibiBowater both dropped a few spots on the annual rankFortune 500 rank

ing, which is based on revenues for 2010; Scana moved up. Domtar ranked 394, down from 383. AbitibiBowater was listed 474, down from 472 in 2010, and Scana was at 483, up from 489. Wal-Mart Stores Inc. remained No. 1, followed by Exxon Mobil, Chevron, ConocoPhillips and Fannie Mae.

Rank

Company

Domtar

394

Fort Mill

City

Revenues ($ millions) 5,850.0

AbitibiBowater

474

Greenville

4,746.0

Scana

483

Cayce

4,601.0

South Carolina scores well with CEOs South Carolina ranked as the eighth best state in which to do business based on a survey of more than 500 CEOs asked about taxation, regulation, workforce, living environment and other factors impacting a state’s business-friendliness. That’s up two spots on the annual survey by Chief Executive magazine. Southeastern states accounted for a major portion of the Top 10. Texas has ranked No. 1 for seven years. California hit the bottom of the list this year. “While state incentives are always welcome, what CEOs often seek are areas with consistent policies and regulations that allow them to plan, as well as intangible factors such as a state’s overall attitude toward business and the work ethic of its population,” according to an article in the magazine.

Top 10 Rank

State

+/- 2010

Texas

none

North Carolina

none

Florida

Tennessee

-1

Georgia

Indiana

+10

Virginia

-3

South Carolina

Utah

Nevada

-5

More than 125 tons That’s how much electronic waste was collected May 5 to be recycled and reused to manufacture new products. S.C. eCycles Day was held at three designated drop-off sites across the state, in the Midlands, Lowcountry and Upstate. The event preceded a new state law that will prohibit disposal of certain electronics in S.C. landfills after July 1.

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South Carolina Silver Crescent Award for Manufacturing Excellence n atio ne. n i NomDeadli

July

15th

The South Carolina Silver Crescent Award for Manufacturing Excellence is designed to recognize S.C. companies that reflect worldclass standards in manufacturing, commitment to workforce, community programs, and environmental stewardship. The honor will be presented to one manufacturer in each of three (3) categories September 22, 2011 at the Salute to Manufacturing Awards Luncheon at the Carolina First Center in Greenville.

Recognize South Carolina’s Best Interested in nominating your company? Do you have a manufacturer that’s a client that you would like to nominate? Do you know a manufacturer worthy of recognition? Anyone may nominate a South Carolina manufacturer, including company management, employees, volunteers, community leaders, and interested citizens. Presented by

Enter nominations at: www.salutetomanufacturing.org w w w. s c b i z m a g . c o m | S u m m e r 2 0 1 1

S.C. receives 2011 Gold Shovel, Project of the Year honors State joins worker Area Development magazine, a national economic development publication, awarded South Carolina its 2011 Gold Shovel for the state’s economic development efforts last year. In addition, South Carolina also received the magazine’s Project of the Year award for the First Quality Tissue project in Anderson County. Each year, the magazine recognizes states in three population categories that have recruited the highest-quality and most jobs per capita in projects that have broken ground in the previous year. South Carolina was the Gold Shovel winner this year in the 4 million to 9 million population category. It was awarded a silver shovel in 2009 and 2010. Some of the projects cited by Area Development in its decision to award South Carolina

the Gold Shovel were First Quality Tissue in Anderson County, ZF Group in Laurens County and Caterpillar in Newberry County; Robert Bosch in Dorchester County, S.C. Tissue in Barnwell County, Boeing Fabrication Interiors in Charleston County, Dixie Narco (Crane Co.) in Barnwell County and Johnson Controls in Florence County. South Carolina also received Area Development’s Project of the Year award for work on the First Quality Tissue project. Last May, First Quality Tissue selected Anderson County for its new manufacturing operations. The $1 billion investment is expected to create 1,000 new jobs. The company chose Anderson County after an extensive site selection process and credited the state’s proximity to the growing Southeastern market, quality infrastructure and low energy costs among other factors in helping make the choice.

Imagine

training program

South Carolina has joined eight other states in a Center for Energy Workforce Development initiative funded by the Bill and Melinda Gates Foundation to train lowincome young adults for careers in the energy industry. South Carolina is entering the Get Into Energy Career Pathways pilot project — launched last year in Ohio, Washington, Georgia, Florida, California, Indiana and Minnesota — joining North Carolina under the umbrella of the Carolinas Energy Workforce Consortium. The consortium includes industry, education and workforce representatives from both states. North Carolina companies involved include Duke Energy, Progress Energy, Pike Electric Corp., Areva Inc., Utility Lines Inc., The Shaw Group and North Carolina’s Electric Cooperatives. Carolinas consortium members have committed to hiring skilled workers out of the programs developed under the Gates grant. The program works to assess the interest and skill levels of low-income, young adults ages 16 to 26 for potential employment in skilled technician positions in the energy industry.

A place where tradition meets technology

REGION PROFILE

Aiken and Edgefield counties are part of the Aiken-Augusta Metropolitan Statistical Area (MSA) with a population of more than 500,000 and a workforce of more than 245,000.

Aiken and Edgefield counties South Carolina The Aiken and Edgefield County area is a modern community of cutting-edge manufacturing, world-changing research and development, and an unbeatable quality of life. We have a stable workforce drawn from a population that is young and growing. We are within three hours of Atlanta and Charlotte, as well as the ports of Savannah and Charleston.

FOR MORE INFORMATION CONTACT:

Will Williams, Director wwilliams@edpsc.org Visit us today at

www.edpsc.org

Aiken and Edgefield also offer quality and value in housing, health care, recreation and education.

TARGET INDUSTRIES CHEMICALS PLASTICS AUTOMOTIVE TECHNOLOGY HYDROGEN TECHNOLOGY

Research | Manufacturing | Quality of life

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ECONOMIC DEVELOPMENT PARTNERSHIP

471 University Parkway | Aiken South Carolina 29801 | 803.641.3300

Walmart plans to invest $400M in S.C. U.S. President and CEO Bill Simon announced that the mega retailer Walmart plans to create 4,000 new jobs in South Carolina over the next five years and invest $400 million in new, expanded and relocated stores. â&#x20AC;&#x153;This is a strong company that already employs almost 28,000 people in our state, buys produce from our farmers and holds leadership conferences in our state,â&#x20AC;? said Gov. Nikki Haley, who joined in the announcement. Walmart spokesman Daniel Morales said his company will not receive any special government incentives for the investments. â&#x20AC;&#x153;We will take advantage of whatâ&#x20AC;&#x2122;s available to everyone,â&#x20AC;? Morales said. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ve been planning to bring these jobs to South Carolina. We do want a level playing field.â&#x20AC;? The announcement came on the heels of a vote in the General Assembly to reject a special tax provision for online retailer Amazon. Amazon said that it was canceling contracts and stopping plans as a result of the vote. Since then, the House and Senate reversed course and reinstated the provision.

Centers of Economic Excellence program receives new identity South Carolinaâ&#x20AC;&#x2122;s program that creates knowledge-based research centers and enables the state to recruit top scientists and engineers is getting a new identity. The Centers of Economic Excellence, which many people called the Endowed Chairs program, is now called SmartState. The programâ&#x20AC;&#x2122;s chairwoman said the new identity will better reflect the programâ&#x20AC;&#x2122;s purpose: transforming South Carolina into a â&#x20AC;&#x153;smart stateâ&#x20AC;? that can compete for highpaying jobs based on the value of its knowledge and innovation. SmartState Review Board Chairwoman Pamela P. Lackey, S.C. president of AT&T, said the new name better expresses what the program is accomplishing and how it is reshaping South Carolinaâ&#x20AC;&#x2122;s economy. â&#x20AC;&#x153;Today, we see the tangible results of how this visionary program is turning South Carolina into a â&#x20AC;&#x2DC;smart state,â&#x20AC;&#x2122;â&#x20AC;&#x2030;â&#x20AC;? Lackey said. â&#x20AC;&#x153;It has placed a powerful focus on developing new world-class R&D within our stateâ&#x20AC;&#x2122;s universities, keeping the best and brightest in South

Carolina and creating high-skill, higherpaying jobs.â&#x20AC;? Since the General Assembly created it in 2002, the program has helped South Carolina achieve â&#x20AC;&#x153;smart stateâ&#x20AC;? status in several ways. First, the program has enabled the state to launch 49 university-based research and development centers in industries such as bioscience, nanotechnology and automotive engineering. These research and development centers, or Centers of Economic Excellence, are helping attract new companies that want to tap into university research. In addition, the program has enabled the state to recruit 37 internationally acclaimed scientists and engineers who serve as endowed chairs at Clemson University, the Medical University of South Carolina and the University of South Carolina. To date, the program has resulted in more than $400 million in nonstate investment in the S.C. economy â&#x20AC;&#x201D; more than a 2-to-1 return on the stateâ&#x20AC;&#x2122;s investment. SmartState has also created more than 5,000 jobs.

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w w w. s c b i z m a g . c o m | S u m m e r 2 0 1 1

Tr e n d s

Employment

Unemployment rate

Sector

12%

Jan. ’11

Feb. ’11

March ’11

April ’11

1,774,200

1,796,800

1,812,500

1,826,000

Manufacturing

209,000

209,800

212,700

Trade, Transportation & Utilities

339,700

342,000

345,800

347,600

8% 6%

Employed (total nonagricultural)

Leisure & Hospitality

190,500

196,500

206,500

213,300

Government

335,100

337,200

337,800

337,300

Unemployed

226,700

219,400

212,400

210,600

10%

4% 2%

< =

< <

Unemployment Rate

< <

M A

J A

S.C. 2009

U.S. 2011

*Seasonally adjusted rates. Source: S.C. Department of Employment and Workforce, U.S. Department of Labor

Higher than previous month

V =

Lower

7.3% - 9.9% 10.0 - 11.9%

Same

12.0% - 14.9%

15.0% - 18.7%

< < < <

S.C. 2010

Source: S.C. Department of Employment and Workforce

Source: S.C. Department of Employment and Workforce, April 2011. County rates are not seasonally adjusted

Airplane Passenger Boardings 2011 Airport

Jan.

Feb.

March

April

Airport

Charleston International

63,610

63,364

100,410

n/a

GSP International

44,497

43,763

71,532

78,080

Hilton Head Island

2,847

2,800

5,325

6,216

Source: Individual airports

Jan.

Feb.

March

April

Myrtle Beach International 35,456

33,132

60,922

77,415

Columbia Metropolitan

32,454

32,159

38,517

43,336

Total

178,864 175,218 276,706 205,047

Economic Development Announcements: Feb. 1 - May 26, 2011 Month New/Expansion Company County Investment Jobs Created Feb...........................E.................... Showa Denko Carbon Inc. ...................................Dorchester...........................................................NP.................................. 100 March.......................E.................... Boysen USA.........................................................Cherokee...................................................$6 million.................................... 15 March.......................E.................... Automation Engineering Corp. .............................Greenville...............................................$6.1 million.................................... 78 March.......................E.................... 3V Inc. ................................................................Georgetown.............................................$15 million.................................... 30 March.......................E.................... Guardian Industries Corp. ....................................Chester...................................................$45 million.................................... 50 March.......................E.................... Pharmaceutical Associates Inc. ...........................Greenville...............................................$8.5 million.................................... 15 April..........................E.................... CollinsCraft Corp. ................................................Oconee................................................. Not provided.................................... 20 April..........................N ................... Be Green Packaging LLC .....................................Jasper....................................................$7.3 million.................................. 175 April..........................E.................... Apex Tool Group LLC............................................Sumter...................................................$1.4 million.................................... 33 April..........................N ................... ESAB Welding & Cutting Products........................Union......................................................$19 million.................................. 100 April..........................N.................... Interstate Container.............................................Lexington................................................$13 million.................................... 60 April..........................N.................... ECAPS Corp. .......................................................Marlboro................................................$3.4 million.................................. 150 April..........................N.................... Textile Trends LLC................................................Union........................................................$440,000 ................................. 100 May..........................N.................... Southeast Renewable Energy...............................Dorchester..............................................$50 million.................................... 20 May..........................E.................... Michelin...............................................................Lexington..............................................$200 million.................................. 270 May..........................N.................... Amy’s Kitchen......................................................Greenville................................................$63 million.................................. 700 May..........................E.................... Adex Manufacturing Technologies.......................Greenville..................................................$1 million.................................... 10 May..........................E.................... CertusBank..........................................................Greenville............................................. Not provided.................................. 350 May..........................E.................... Wal-Mart Stores Inc. ...........................................Statewide..............................................$400 million............................... 4,000 Totals.............................................. 19 announcements.....................................................................................................$838.7 million**................................ 6276 Source: S.C. Department of Commerce, NP = Not Provided

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Dorchester County

Dozens of shops dot the streets of downtown Summerville.

Dorchester

It’s a pleasure doing business

orchester County is distinguished by an ideal blend of market access, a trained labor force and a high quality of life, not to mention its geographic position as the gateway to Charleston and the South Carolina Lowcountry. The county has the attributes that economic developers dream about, but local leaders are working hard to make the county even more hospitable to businesses. From infrastructure upgrades to a new job training center, library improvements to environmental initiatives, it all comes down to one word — investment. Dorchester County Council, which directs the county’s economic development strategy, aims to leverage county dollars by combining them with state and federal dollars to make a positive environmental, social and economic impact on the community. Through collaborative efforts and innovative thinking, the seven members of Dorchester County Council strive to improve the county for business and for life.

For example, the county successfully sought a $2.5 million grant from the U.S. Economic Development Administration to improve water and sewer infrastructure to support the global headquarters of ArborGen, a biotech company with a focus on the forestry industry. ArborGen is nearing completion on a $14.3 million headquarters in East Edisto, MeadWestvaco’s Lowcountry development, and will create at least 25 high-paying jobs in the county. More recently, Dorchester combined county funding with a $1.38 million EDA grant to build a water reclamation facility that will support the expansion of the county’s Robert Bosch automotive component plant. The expansion is expected to generate more than 300 new jobs and $125 million in investment during the next five years. These investments have made the county’s water infrastructure more robust than ever, with water and wastewater capacity to accommodate even the most intense users.

What’s more, the new water reclamation facility is especially “green” — it’s expected to save 80,000 gallons of water per day and reduce energy consumption, water pollution and the use of hazardous chemicals.

Green is good The water reclamation project is one of several green initiatives the county has launched as an investment in the county’s efficiency and competitiveness, and in its quality of life. “One of Dorchester County’s many objectives is to endorse energy-efficient projects that will provide long-term benefits to sustain the county while expanding investment potential,” said Dorchester County Council Chairman Larry Hargett. “We want to pursue activities that achieve economic growth while also protecting our considerable natural resources and ensuring that our quality of life remains high,” said Richard Rosebrock of the Dorchester County Council and Keep Dorchester County Beautiful.

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Dorchester County

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Francis Beidler Forest in the Four Holes Swamp provides the perfect backdrop for outdoor recreation.

In 2010, IMO USA Corp. unveiled the largest solar power tracker in the state, generating 42,000 kilowatts per hour annually. Pictured is IMO Chief Executive Officer Rüdiger Unverzagt.

The county knows first-hand that going green can have a big payoff. Dorchester recently received grants from the South Carolina Energy Office to install energy-efficient lighting and HVAC systems in county buildings. “This is saving the county more than $100,000 per year in energy costs,” said George Bailey, Vice Chairman of Dorchester County Council. Also notable among Dorchester’s environmental achievements is the presence of the state’s largest solar tracker in Summerville, the county’s largest community. The solar tracker is there thanks to IMO USA, a Germanowned company that chose Summerville for a new manufacturing facility last year. The solar tracker sits on a rotating pole that allows it to follow the sun’s path during the day, capturing significantly more energy than a stationary solar panel. IMO is one of the world’s leading manufacturers of slewing rings and slew drives, which are used in several alternative energy applications, including wind turbines and tidal stream systems. 10

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“The area’s strengthening profile in alternative energy, along with the proximity of the port, gave us complete confidence in our decision to locate in Dorchester County,” said Rüdiger Unverzagt, CEO of IMO USA Corp.

Logistics made simple Having the Port of Charleston just 30 minutes from the county line is a benefit for local businesses. “The Port of Charleston is a real competitive advantage for us,” said Jon Baggett, Director of Economic Development for Dorchester County. “It’s the most productive port in North America, it has deep water, its terminals are closer to the open sea than any other port … combined with our rail and interstate access, it makes it so easy for companies to receive shipments and get their products to their customers.” Indeed, the multi-modal components of Dorchester’s transportation infrastructure are impressive, combining to give companies access to markets across the country and across the world.

Charleston is not the only major port near Dorchester County; the Port of Savannah is also an easy drive. Interstate 95, the East Coast’s main north-south corridor, crosses the county, as does I-26. The growing Charleston International Airport features more than 120 daily flights to nearly 20 destinations and has air cargo facilities. Both CSX and Norfolk Southern operate large rail networks in the region. “Our transportation network within the county is so extensive, and we’re right next door to so many great assets — plus, 75% of the U.S. population is within 1,000 miles. It just makes us a prime spot to do business,” said Dorchester County Councilman Willie Davis. Baggett notes that prospective industries wanting to take advantage of Dorchester’s extensive transportation infrastructure can choose from more than 4,500 acres of available industrial sites in the county. “We have lots of certified product — it’s easy for companies to find the perfect site here.”

Smart, skilled and ready to work Dorchester is also investing in its most important asset — its strong, skilled labor force — by beefing up local education and workforce training resources. The county joined state and local partners to build a QuickJobs Training Center, operated by Trident Technical College, in the county seat of St. George to increase the availability of manufacturing skills and training opportunities in the upper part of the county. “In Dorchester, we understand that the quality of our workers plays a huge role in attracting industry,” Hargett said. “The QuickJobs center will provide job-specific continuing education to ensure that our workers are

Dorchester County

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The $2.4 million QuickJobs Training Center, completed in mid-2010, offers the residents of St. George multiple training and continuing education opportunities, as well as a public computer center.

fully prepared to contribute to their employers’ success from the first day on the job. Logistics and transportation are major topics of training, in response to the growth of import and export businesses locating in the area.” Trident Technical College contributed funds for the project and is also providing the training, which will be customized to the needs of local workers and local industries.

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Along with the county’s contribution, the state Department of Commerce provided a Community Development Block Grant to help fund the project, and local legislators contributed money from the Upper Dorchester County Economic Development Fund. “We are very fortunate to have local representatives who are keenly attuned to the needs of business, as well as support from the

state level to maintain Dorchester’s businessfriendly environment,” said Dorchester County Economic Development Board Chairman George Tupper. The QuickJobs center will further support Dorchester’s already strong labor pool; 88% of the workforce has a high school education, and 1/3 have earned a degree from a higher education institution. “Technically trained and academically prepared workers are crucial to our success,” Unverzagt said. “We found that here.” Local employers also give Dorchester’s labor pool high marks in areas such as productivity, reliability and positive attitudes. Showa Denko Carbon Inc.’s President and CEO Bob Whitten said his company has “found a readily available workforce with a ‘right-to-work’ mindset. This mindset has enabled our company to establish a modern, employee-oriented human resources policy to ensure good relations with our workers to keep productivity high.” Earlier this year, Showa Denko provided further proof of the company’s high regard for Dorchester County workers by announcing an expansion of its Ridgeville operations. The graphite electrode manufacturer will invest

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Robert Bosch recently announced plans to expand and create more than 300 jobs, with an investment of $125 million. Dorchester County will aid the plant’s expansion through the construction of a new water reclamation facility made possible by a $1.38 million EDA grant.

hundreds of millions of dollars in the county and create an estimated 100 new jobs. “Our labor pool is extremely strong, yet our wages are very competitive,” Baggett added. In addition to a ready supply of skilled labor, companies can take advantage of South Carolina’s nationally acclaimed workforce training program, readySC — customized to meet the specific training needs of each company — when they locate in Dorchester County. Companies in Dorchester County also benefit from the fact that South Carolina is a “right-to-work” state and has the third lowest unionization rate in the U.S. at 4.1%. The area’s strong, diverse population growth also contributes to workforce strength. Region-wide population has grown to about 600,000. Local college graduates also add to the workforce with nearly 6,000 degrees awarded locally each year.

offer many two-year, four-year, graduate and professional degrees. Another of the county’s recent investment projects was to rehabilitate and expand the library in St. George. Community Development Block Grant funds helped the county revitalize the existing library, acquire adjoining land and build additional space to expand the computer resources that are available to the community. Sean Bennett, a Dorchester County business owner and board chairman of the Charleston Regional Development Alliance,

Dorchester County or CRDA, acknowledges that this county is a special place to live and do business. “Dorchester County’s assets are vital to our three-county region’s competitive mix, and are critical components of our region’s economic development strategy. As we continue to market our region internationally for new business investment, more and more companies are choosing to create jobs in Dorchester County. And that’s exciting,” Bennett said.

Unlimited possibilities for enjoyment Dorchester County has a lively arts and

RIGHT NEXT DOOR D O R C H E S T E R C O U N T Y, S O U T H C A R O L I N A

Easy living There are several reasons why Dorchester County is one of the fastest-growing areas in South Carolina. The communities are serene, friendly, charming and historic; and civic pride among residents and businesses is high. Dorchester residents enjoy a quality of life that comes from living in a beautiful place full of amenities, such as cozy neighborhoods, great schools, high-quality health care, and a wide variety of ways to have fun and spend time with family and friends. Dorchester County residents have access to excellent educational facilities. The county has an award-winning public school system and several private K–12 options. The Charleston area’s higher education institutions include colleges and universities that

Dorchester County, SC is perfectly positioned Right Next Door to the Port of Charleston, the new Boeing 787 Dreamliner final assembly site, the Clemson University Wind Turbine Drive Train Test Facility, and Historic Downtown Charleston. Dorchester County also offers low business costs, a highly skilled and productive workforce, access to rail and Interstates 95 and 26, and available buildings and certified sites. Come see what’s right next door. 843.875.9109 VISIT US AT WWW.RIGHTNEXTDOOR.BIZ w w w. s c b i z m a g . c o m | S u m m e r 2 0 1 1

Dorchester County

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By the numbers Labor Profile Information – March 2011 Labor Pool......................................... 63,999 Employed......................................... 58,914 Unemployed........................................ 5,085 Unemployment Rate............................. 7.9% Source: Bureau of Labor Statistics Commuting Patterns Live & Work in County........................ 13,189 Commute into County........................ 14,558 Commute out of County..................... 38,738 Top 5 Commute Destinations Charleston County............................. 22,807 Berkeley County................................... 6,081 Richland County................................... 1,789 Orangeburg County.............................. 1,044 Beaufort County...................................... 848 Top 5 Commute Origins Berkeley County................................... 4,949 Charleston County............................... 4,577 Orangeburg County................................. 996 Colleton County...................................... 758 Richland County...................................... 349 Source: U.S. Census Bureau, 2006 Commuting Patterns Population Growth 2000 Population................................ 96,413 2010 Population.............................. 136,555 Percent Growth................................... 41.6% Source: U.S. Census, 2010 culture scene with many festivals and several theater and musical performance groups. Community parks offer plenty of in-town space for people to gather, play and explore, while larger protected areas within the county feature beautiful scenery and the opportunity for all kinds of outdoor activities. Givhans Ferry State Park, for example, offers camping, hiking, and fishing. The 988acre park borders the Edisto River, the longest free-flowing blackwater river in North America, and is part of the 56-mile Edisto River Canoe and Kayak Trail. Francis Beidler Forest, owned by the National Audubon Society, promotes the conservation of birds and bird habitats. It contains the largest remaining stand of virgin bald cypress and tupelo gum swamp forest in the world. 14

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Showa Denko announced it will invest several hundred million dollars in its Ridgeville plant and will create roughly 100 new jobs. Pictured: Showa Denko President and CEO Bob Whitten and Gov. Nikki Haley.

Dorchester County has easy access to the fresh water of Lakes Marion and Moultrie in Berkeley County, and the salt water rivers and creeks of the Atlantic Ocean. More than a dozen local marinas offer boat or kayak rentals, sailing lessons, and in-shore and off-shore fishing charters. Dorchester County also is just a short drive from the world-class city of Charleston and South Carolina coastal communities and resorts such as Edisto Beach, Kiawah and the Isle of Palms. “Being a fast-growing county and being located where we are, we have a lot of amenities to offer that you would expect in more urban areas in terms of cultural resources, special events and entertainment options,” said Dorchester County Administrator Jason Ward. The region’s cultural resources include historic homes, churches and public spaces; distinctive architecture; museums and art galleries; ballet, symphony and theaters; scenic parks and outdoor events; eclectic retail and antique shops. Dorchester combines easy access to these Lowcountry gems with a very low cost of living. A home in Summerville, 30 minutes from Charleston, sells for a fraction of what a comparable home in the city would cost.

when it comes to prospect visits. “Consultants are often surprised to see just how strong our quality of life is, the awards our schools have won, how attractive and affordable our neighborhoods are,” Baggett said. “Also, the costs of doing business are very competitive here — from labor to the costs of sites and buildings — especially considering how well-located we are.” Baggett said that prospective businesses can also expect a warm welcome in Dorchester County that will last far beyond a project announcement. “The economic development department is very hands-on in our recruitment efforts; we truly try to get to know the companies that we are working to bring to the county in order to make sure their needs, and the county’s needs, are met,” Baggett said. “After a company locates here, we maintain contact with all of our existing industries to work with them to be successful.” He noted that in 2008, economic development officials formed the Dorchester County Industrial Council as an outreach to existing industries. The group meets monthly to discuss topics of interest to industries, and also sponsors relevant training opportunities. “We place a high value on our existing companies, and we feel it’s worthwhile to put in the time and attention to make sure that Ongoing support Dorchester’s economic development of- their needs are being met,” Baggett said. “It’s ficials take pride in exceeding expectations an important investment.”

Ensuring the future of startups in S.C. By Chuck Crumbo

he fastest way South Carolina can grow more jobs and recover from the Great Recession will be to attract and nurture small firms. That’s because locally owned businesses with 19 or fewer employees have been adding workers at a rate much higher than large companies, said USC economist Doug Woodward. How the state can help these new companies and encourage them to stay home will be key to building South Carolina’s economy, according to business leaders in a recent workshop on high-impact entrepreneurship presented by New Carolina: South Carolina’s Council on Competitiveness.

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Ideas to grow these fledgling businesses offered at the workshop will be compiled and presented as possible recommendations to various entities — including state government leaders and universities, said Garry Powers, chairman of the New Carolina Entrepreneurship Task Force. The recommendations could lead to new policies, regulations or laws aimed at spurring startup companies and fostering business growth. The timing couldn’t be better, said Hunter Howard, former president and CEO of the S.C. Chamber of Commerce. “For the first time in several years, the stars have lined up, in my opinion,” said Hunter, who now works for Scott McElveen, a Greenville-based CPA firm. Hunter based his optimism on Gov. Nikki Haley’s support for small businesses and her appointment of Bobby Hitt as director the state Commerce Department. “From the governor on down, we are committed to small business development and entrepreneurship,” said Hitt’s deputy, George Hunter Howard (left), Peter Waldschmidt and Brent Patrick. Yarborough listen to questions during the high-

Cheetahs and buffaloes Investing time, effort and money into upstart companies makes good business sense, Woodward said. “Small firms account for 26.3% of total employment in South Carolina but 51% of all net employment gains in the state,” he said. In the past five years, Woodward said, about 2.7% of all S.C. firms have created 66% of new jobs. Woodward referred to high-impact entrepreneurships — those that have doubled revenues since the start of the Great Recession in fall 2007 — as the “cheetahs” of the business ecosystem. The “cheetahs” include high-tech knowledge businesses, a forklift manufacturer and a beer wholesaler. “They are a small part of our base, but they’re growing faster,” Woodward said. State government and business leaders, though, have tended to concentrate on luring the “buffaloes” of the business ecosystem, Woodward said. These are large companies that can bring hundreds — even thousands — of jobs to South Carolina, putting people to work in their assembly plants or making parts for suppliers. But the “buffaloes” can easily 16

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impact entrepreneurship workshop. (Photo/Chuck Crumbo)

“Small firms account for 26.3% of total employment in South Carolina, but 51% of all net employment gains in the state.”

Cheetahs

(High-Impact Firms) An enterprise for which sales have on average at least doubled over the most recent four-year periods and which has an average employment growth quantifier of two or greater over the same period.

Doug Woodward USC economist

shed as many jobs when the economy tanks. Local firms matter, Woodward said, because they provide two-thirds of the state’s jobs. Also, there’s evidence that states with a concentration of strong, home-grown companies lead in higher economic growth. Local companies tend to have higher productivity and “the flexibility to adapt,” he said. And, just as important, they are more committed to community, because it’s where the top executives live. “From here on out, we’ve got to get smarter,”

Buffaloes A large company that can bring hundreds or thousands of jobs to South Carolina, putting people to work in assembly plants or making parts for suppliers. “Buffaloes” can, however, easily shed as many jobs when the economy tanks.

Enabling entrepreneurship One problem facing anyone starting a business in South Carolina is finding a onestop place for information. Although the state has a number of resources, there’s little coordination information, and it’s hard to find it, business leaders say. One recommendation likely to emerge from the recent workshop on High Impact Entrepreneurship in Columbia will be that at least a website should be set up to provide information on issues like venture capital, laws, regulations or networking.

Other ideas pitched at the workshop include: • Establish a central place where entrepreneurs can learn about financing that is available. The same service can also provide information about the different types of financial instruments. • Do a better job of marketing South Carolina to entrepreneurs. The state tops the national average in the annual company startups, but few know about it. • Develop a way to better identify the future “rock stars” of business. • Work with existing educational programs to develop a cohesive strategy that “promotes entrepreneurship as cool.” Just as Greenville Schools has launched an elementary school for engineering, elementary schools could focus on entrepreneurship. • Streamline tax regulations. Shift the tax burden from property to income. • Ways to attract and keep business executives in South Carolina. One problem that growing S.C. companies face is finding enough management talent to grow. Ideas offered at the workshop will be boiled down and then presented to organizations such as state agencies, key political leaders, universities and business groups, said Garry Powers, chairman of the New Carolina Entrepreneurship Task Force. Those organizations then will serve as champions for the issues. “The only way this moves forward is if you have a champion to make sure those recommendations are achieved,” Powers said.

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Kurt Dassel of Monitor Group discusses various strategies state leaders could pursue in attracting and support startup companies during the high-impact entrepreneurship workshop. (Photo/Chuck Crumbo)

Woodward said. “It’s going to take a lot of smart systems for school districts. As the business grew in the late 1990s, Waldschmidt looked thinking, and it’s up to the private sector.” for money to help fund expansion. “We were never able to find it,” he said. Fostering growth Waldschmidt estimated there was $7 milWhile the state seems to be a good place for startup “cheetahs,” South Carolina could lion to $7.5 million in venture capital available do a better job of helping firms grow and in South Carolina at the time he was trying to survive, according to a New Carolina survey grow Tetra Data. Neighboring states North Carolina and of high-impact firms. Some of the entrepreGeorgia have “hundreds of millions” of dolneurs’ top issues include: • A lack of venture capital and investors who lars to be invested in new companies, he said. “For a CEO, when you’re having to spend understand their business. • Increased unemployment tax that af- 110% of your time looking for venture capifects companies with revenue bursts and tal, it really stifles your ability to do other things,” said Waldschmidt, who sold Tetra slumps. • Local business licenses and fees based on Data in 2007 to the school book publisher Follett Corp., which is headquartered near gross receipts that hurt cash flow. • Lack of skilled IT professionals and college Chicago. He used proceeds from the sale to launch graduates with degrees in science, technolGnoso. ogy and math. State and local regulations can impede • Not enough executives with business skills to help entrepreneurs build their busi- growth of small companies, said Brent Yarborough, of Team IA, an information mannesses. A lack of venture capital in South Carolina agement firm in Lexington. Having a business license fee based on 1% is critical, especially for firms launching tech businesses, said Peter Waldschmidt, owner of of income makes it difficult to budget when Gnoso, a Greenville-based software company. there are wild swings in the economy, YarborBefore Gnoso, Waldschmidt founded ough said. Meanwhile, S.C. laws that cover trade seTetra Data, which developed data analysis

Top Industries for High-Impact Firms Professional, Scientific and Technical Services

11,230

Administrative and Support Services

10,119

Specialty Trade Contractors

9,392

Food Services and Drinking Places

6,171

Construction of Buildings

4,359

Real Estate

4,310

Merchant Wholesalers, Durable Goods

4,186

Merchant Wholesalers, Nondurable Goods

3,480

Ambulatory Health Care Services

3,026

Social Assistance (Child and Adult Care Centers Primary)

3,017

Repair and Maintenance

2,760

Machinery Manufacturing

2,375

Accommodation

2,194

Heavy and Civil Engineering Construction

2,051 0

1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 11,000 12,000

Employment Change by Employment Size (2004-2008) Employment Change Firm Employment Size

Non-High Impact

High Impact

126,766

20,389

20-49

-2,858

9,730

50-99

-11,240

4,925

100-249

-19,226

4,995

250-499

-23,287

3,994

500-999

-21,012

5,785

1,000-2,499

-23,397

2,500-4,999

-19,611

5,000-9,999

-4,515

10,000-25,000

23,176

1-19

Source: High-Impact Firms and Jobs in S.C., Darla Moore School of Business, USC

crets tend to protect manufacturers and not knowledge-based businesses, he said. “What we’re trying to protect is intellectual property,” he said. In order to recruit today’s “rock stars” of the business world, communities need to focus on quality-of-life issues, said Ben Rex of Columbia-based Web design firm Cyberwoven. “Our median age is 28,” said Rex, whose company was founded in 2001. Younger workers prefer to walk to work or a restaurant instead of driving all over town, burning gasoline and polluting the air, re-

searchers say. Lifestyle is important to these workers. What communities do to meet their needs will help attract young talent and foster business growth.

Promoting entrepreneurship To grow local “cheetahs,” South Carolina needs to develop a cohesive strategy to promote entrepreneurship, said Kurt Dassel of Monitor Group, a consultant firm based in Cambridge, Mass. Dassel warned that there’s no one-size-fits-

all solution. Too often, communities try to pattern their growth strategies after Silicon Valley in California, home of some of the country’s top high-tech companies, such as Apple Inc. and Hewlett-Packard Co. Although Silicon Valley is the “classic” model, communities need virtually all the ingredients that led to the boom of high-tech manufacturing in the San Francisco Bay area, Dassel said. Other growth models include the “anchor” model, which features a large business or organization that can attract similar firms, such as the health care giant Mayo Clinic near Minneapolis. A third is the “event” model, which is fueled by the sudden growth of local industries. One example of this model is San Diego, which is home to more than 400 biomedical research businesses. Finally, there’s the “local hero” model, like Seattle, home of Bill Gates and Microsoft Corp., the world’s leading software manufacturer. Since South Carolina seems to be a good place for startup ventures, creating a climate for the next “mini Bill” might be the best fit, Dassel suggested. “Figure out what’s right for you,” Dassel said. “We want to create a rain forest, so to speak, that will foster entrepreneurship.”

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BIZ

searching for talent

By Ashley Fletcher Frampton, Staff Writer

ate DaPore rattles off a growing list of benefits that his North Charlestonbased software company, PeopleMatter, is offering its employees. An unlimited vacation policy, stock options, fully paid insurance, benefits for domestic partners, the option to bring pets to work or have them sent to day care, a one-month paid sabbatical for employees with three years of service, a 401(k) match from day one, a gym in the building, free snacks. The load of perks is growing along with PeopleMatter, founded in 2009. So far this year, the company has grown 25%. DaPore expects to grow from 45 employees to 100 by the year’s end, and then to double again in 2012. PeopleMatter is trying to create a Silicon Valley culture in Charleston, in the types of benefits offered and in the workplace atmosphere, because it is competing with that region for talent. The company began launching its talent management software for service industries last year, and business is growing rapidly. This month, the company announced $7.2 million in new funding, adding to $7 million previously raised.

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This summer, the company will open a satellite office in San Francisco for operating advantages that include access to that area’s workforce. But the plan is for PeopleMatter to remain headquartered in North Charleston, DaPore said, and that means his need to recruit top talent to the Lowcountry will remain. He is not alone in the effort. A handful of technology startups in the Charleston area are on the cusp of major growth, and many identify a common challenge: finding talented workers to keep up the pace of their expansion. Startup companies’ leaders say Charleston isn’t always on the radars of software developers and other technology industry professionals outside the region, and some of the young firms don’t have time and resources to launch serious out-of-state recruiting efforts. “We can’t graduate them fast enough, and we can’t hire them fast enough,” said Ernest Andrade, director of the Charleston Digital Corridor, a public-private partnership that supports the growth of knowledge-based companies.

The next 10 years Andrade said that when the city of Charleston and a then-smaller tech community formed the Charleston Digital Corridor 10 years ago, the main goal was to attract knowledge-based companies to the area and help them once they got here. Now, that goal is shifting. “The next 10 years should be about basically building a robust level of talent,” Andrade said. The Charleston Digital Corridor’s most visible initiative in the past three years has been the development of incubator space in downtown Charleston for startup companies or those relocating here. The first incubator project, called the Flagship, opened in 2009 at Calhoun and East Bay streets, and the adjacent Flagship 2 is set to open in the coming weeks. While that effort continues, moving forward, the organization could also take on a marketing role in response to members’ needs, Andrade said. Planning is preliminary at this point, Andrade said, but marketing efforts will build on

Main spread: Kevin Eichelberger, CEO of Blue Acorn, stands amid construction in the companyâ&#x20AC;&#x2122;s new office space on Rutledge Avenue in Charleston. Top right: Kristin Shaffer, data services manager at Charleston-based BoomTown, takes a time-out with Willow. Middle right: A morning staff meeting at BoomTown. Bottom right: Andrew Barton and Carol Huggins of PeopleMatter, based in North Charleston, discuss a current project. Photos/Leslie Burden w w w. s c b i z m a g . c o m | S u m m e r 2 0 1 1

a website unveiled last year, called CharlestonWorks, that is meant to be a hub for available knowledge industry jobs. One likely goal is getting the message about Charleston’s high-tech job market out to graduates and midcareer professionals in other regions of the country. Right now, most traffic on the jobs website comes from South Carolina and the Southeast. Other strategies could include working more closely with colleges in the area to increase the number of local computer science graduates. On an individual basis, many of the area’s software firms are offering attractive benefits and touting small, laid-back work environments where newcomers can make big contributions. Local tech industry leaders have said for some time that part of the message they are trying to spread to would-be candidates in other areas of the country is that Charleston is a place where technology professionals can find plenty of career opportunities — not just one job. “I think the biggest challenge is, ‘What other options do I have in Charleston if this doesn’t work out?’ ” said Kevin Eichelberger, CEO of Blue Acorn, a Mount Pleasant-based software firm that provides e-commerce services for retailers. Eichelberger said that about six years ago, he passed on job offers from two larger and more established software firms in town, Ben-

efitfocus and Blackbaud. He knew himself to be entrepreneurial and didn’t see many small software firms like his own in the Charleston area then. So he took a job in Atlanta. But now, the technology landscape is different in Charleston, he said. To some extent, it’s because the larger firms, which have higher profiles and more resources for recruiting, have brought in workers who later left to start their own ventures. “This is the next wave of companies,” Andrade said. Those larger firms also have been a source of employees for the next-generation firms. “There are a lot of options” in Charleston now, Eichelberger said. “I think people just don’t see the visibility of the tech community in Charleston. It isn’t as visible as it is in other cities.” As his and other startup firms are finding, though, the growing number of options, at companies large and small, means more intense competition for talent.

Growth stories Eichelberger moved Blue Acorn to the Charleston area about 2 1/2 years ago, shortly after starting operations in Atlanta. He chose to put down roots in the Lowcountry for its quality of life, including the lack of long daily commutes. Now the company has 13 employees, up from nine a couple of months ago. Three more are set to start soon, and recruiting is

under way for six more employees, Eichelberger said. He plans additional hiring in the second half of the year but doesn’t yet have firm numbers. Blue Acorn’s success over the past three years has come despite a downturn in consumer spending. Eichelberger said the growth might actually be a result of that downturn, as retailers have sought new, more resultsoriented approaches to online sales. A focus on measuring results also has helped BoomTown, a real estate marketing platform that helps agents attract and manage their leads. “The product that we create actually brings them business, and because of that, it makes them a little bit more efficient,” said Rebecca Guthrie, operations manager. President Grier Allen, a Charleston native, was part of a three-person team that started work on the software product in 2007 and launched it in 2008. Now, BoomTown has about 25 employees, and it has postings for five additional jobs. The company is hiring for positions that include client services support, software engineering, quality assurance and operations, Allen said. He said the needs are “across the board.” No matter the recruiting challenges, Allen said he is committed to growing his company and the tech industry in Charleston. “This is where I grew up, and I wouldn’t leave here for anything,” he said.

High-tech a growing focus in economic development

ome call them knowledge-based firms. Others call them technology startups or high-impact ventures. The labels have their nuances, but the common thread is a reference to technological innovations or intellectual property that can grow quickly into a business. Because these businesses aren’t tied to landbased assets, they can operate nearly anywhere. And communities across South Carolina are increasingly stepping up efforts to be the place where knowledge-based companies choose to do business. Among their strategies are creating professional communities for technology-oriented entrepreneurs to collaborate and network; offering concierge-like services to help startups get off the ground; and building incubators with lowcost, flexible space. Business models vary by location, with some 22

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Greenville Chamber of Commerce, which helped establish it. So far, about 60 companies in the early stages of operations are involved. The initiative also has launched an incubator-type facility for startups.

Why focus on high-tech jobs? The Next Innovation Center in Greenville. (Photo/ provided)

initiatives organized as public-private partnerships, some driven by cities, chambers of commerce or universities, and others completely private ventures. NEXT is a newer effort in the Upstate, established in January 2010 to target early stage, high-impact entrepreneurial ventures, said John Moore, executive vice president of the Greater

“High-impact entrepreneurship is how you create wealth,” Moore said. The focus on wealth creation is not just about the higher wages that these jobs tend to pay, although that is a key part, he said. For example, Hank Hyatt, the chamber’s vice president for economic development, said a 2010 survey found that the average wage among NEXT companies was $76,000. That’s about double the average salary for the Greenville metropolitan statistical area. But along with higher wages, wealth creation is also about growing successful companies that

DaPore, who also grew up in Charleston, worked for Benefitfocus for eight years before leaving to pursue his vision. His software helps service industries manage hiring, training, scheduling and other employee needs. For several months early on, DaPore and three others worked out of the Flagship incubator before moving to permanent space in North Charleston.

The go-getters Mark Phlieger moved his mortgage-industry software firm, Avista Solutions, from Columbia to Charleston in 2009 for the culture, lifestyle and technology community. His firm is also hiring, and he thinks the quality of life in the area will work to his advantage in recruiting. SPARC, a software product development firm that is not quite 2 years old, is hiring “aggressively,” said CEO Eric Bowman, declining to cite figures. Charleston’s high quality of life has been a major factor in attracting talent, he said. But while the Lowcountry lifestyle is an advantage, some say candidates are looking for more. For example, Bowman and Eichelberger said applicants ask about community groups for technology professionals. “Usually your all-stars are going to want those kinds of communities where they can go and speak with other people,” Bowman said. “The go-getters want that. So that’s obviously the kind of talent, the A-players that you want.”

And getting the attention of talented candidates in the first place is an ongoing challenge, Eichelberger said. Sometimes he has to post jobs again and again in hopes of getting applicants who have the right skills and who will be a good fit. On average, for software developer positions, it can take two to three months to find the right person, sometimes longer. Resumes can be slow to trickle in, especially from local applicants. “It’s a pretty dismal response rate for what I consider a pretty darn good job if you’re a

developer,” Eichelberger said. DaPore said The Boeing Co.’s presence in North Charleston could help build the technology community. “Boeing is going to be a tremendous catalyst for this,” he said, “because those are going to be sophisticated jobs that do have a large technological angle.” He added, “I think we’re finally moving out of being just a little tourism town, a tourism and port town in Charleston and really developing a vibrant third economy here, which is around the tech community.”

are rooted in the Upstate, Moore said. That’s a different dynamic from recruiting a branch of a company that is headquartered elsewhere. Consider the Hollingsworth Funds, Moore said. When he died in 2000, Greenville-based textile executive and real estate investor John D. Hollingsworth Jr. left the majority of his $290 million estate to a foundation that makes annual contributions to Furman University, the Greenville YMCA and other charities in Greenville County. “If that had just been another branch location for some manufacturer, that wealth would have been in another community,” Moore said. He added, “What if we had five Hollingsworth Foundations in the future? That’s how communities can change.” Moore emphasizes that, different from traditional forms of economic development, NEXT isn’t about hunting for companies elsewhere. It’s about encouraging organic growth of companies from within. As a result of creating a network of high-tech

entrepreneurs, however, word is beginning to spread, and startup ventures from outside the region are now considering relocating to the Greenville area, he said. To grow knowledge-based companies in the Midlands, the University of South Carolina, the city of Columbia and other partners organized the USC-Columbia Technology Incubator in 1998. Executive Director Joel Stevenson said the idea was to diversify the economy and raise the per-capita income, as well as to attract entrepreneurial students, professors and residents. The USC-Columbia Technology Incubator works with about 55 companies and leases space to 38. Thirty-one companies have graduated by outgrowing the incubator. Stevenson said that when he was 25 years old and starting his own company, he could have used the guidance and resources that initiatives like his provide. “I was always lonely, I didn’t know where to go, I didn’t know who to talk to,” he said.

In Charleston, the city launched the Charleston Digital Corridor in 2001 in an effort to attract and nurture knowledge-based companies. In 2009, the organization opened its first business incubator, called the Flagship, and an expansion called the Flagship 2 is set to open this summer. The Charleston Digital Corridor now counts more than 70 firms as members. It had 14 incubator graduates and 11 incubator tenants at the end of 2010. Leaders of these types of economic development organizations say that the results take time and that it can be difficult to convince a community of the strategy before there’s a big-name company or an initial public offering to point to as evidence that it works. The work isn’t as flashy as recruiting a bigname manufacturer, Moore said. “It’s a marathon,” he said. “This is not a sprint. You don’t recruit a Boeing and say, ‘Ta-da, we did it.’ You plant a lot of seedlings and see which ones will grow.”

The iFive:K is a favorite of knowledge-based business professionals, running enthusiasts and visitors. It is sponsored in part by the Charleston Digital Corridor Foundation — the community’s creative effort to attract, nurture and promote Charleston’s knowledge economy. (Photo/Provided)

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Cities Mean

Business A p u b l i c at i o n o f t h e M u n i c i pa l As s o c i at i o n o f S o u t h Ca r o l i na

Issue 2

2011

A catalyst for growth

Cities improve infrastructure to promote economic development

Downtown tours

Leaders visit revitalization projects in peer cities for inspiration

Community Development Block Grants allow cities to complete improvements crucial to economic development efforts.

You see a street. We see a lifeline that is a hometown with planned traffic flow, fire stations, thousands of visitors each year, low unemployment rate, city parks and community centers for children of all ages. Our streets take us to our jobs, our churches, our fun places and even to grandmaâ&#x20AC;&#x2122;s house.

www.citiesmeanbusiness.org

Cities Mean Business

Contents 5

Catalyst for growth Cities improve aging infrastructure to promote economic development By Amy Geier Edgar Cover: The historic seaport city of Georgetown has received $3.5 million in CDBG funds for streetscape and drainage improvements. The upgrades have spurred residential growth, with commercial development expected to follow. (Photo courtesy of city of Georgetown)

Cover Story

Cities Mean

8 Curb appeal

A publication of Municipal Association of South Carolina 1411 Gervais St., P.O. Box 12109 Columbia, SC 29211 803.799.9574 mail@masc.sc www.masc.sc

Old buildings find successful new life through renovation

By Amy Geier Edgar

10 Community connection

Miriam Hair Executive Director, Municipal Association of SC Reba Campbell Deputy Executive Director, Municipal Association of SC

Improved aesthetics revitalize neighborhoods and attract investors

By Amy Geier Edgar

12 Downtown tours

Editorial staff Meredith Waldrop Mary Brantner Contributing writers Amy Geier Edgar

Published by

The difference between having the facts and having the experience

By Amy Geier Edgar

Features

Business

Department

www.scbiznews.com

A publication for the Municipal Association of South Carolina

4 Letter from the Editor

By Reba Hull Campbell

www.citiesmeanbusiness.org | Cities Mean Business 3

Letter from the

editor

That old adage “don’t judge a book by its cover” doesn’t always hold true when economic development prospects come calling. First impressions do count, and well-kept downtowns and neighborhoods can often make or break an initial economic development inquiry. This issue of Cities Mean Business magazine takes a look at several cities that have made investments in upgrading building façades downtown and rehabbing dilapidated homes, resulting in new business growth and revitalized neighborhoods. Helped along by federal funding through Community Development Block Grants in many cases, these cities are leveraging dollars from a variety of sources to make their communities more appealing and attractive for businesses and residents. From an old Western Auto in Sumter that’s now a higher education facility, to an old textile mill in Chester that had become an eyesore, cities are finding creative ways to match funding sources with local needs. Also in this issue, we look at how cities around the state are sharing good ideas, best practices and lessons learned. Several mayors have made field trips around the state to personally see what their peers are doing to meet similar challenges. As Columbia Mayor Steve Benjamin said about seeing other cities’ successes first hand, “It’s the difference between having the facts and having the experience.”

Reba Hull Campbell rcampbell@masc.sc

Editor

4 Cities Mean Business | www.citiesmeanbusiness.org

A publication for the Municipal Association of South Carolina

COVER Story Workers install a section of 7-foot diameter pipe for a $15 million stormwater drainage project in Georgetown. A $1 million CDBG award helped make the project possible. (Photo courtesy Frank Timko, Davis and Floyd)

CATALYST FOR GROWTH Cities improve aging infrastructure to promote economic development

By Amy Geier Edgar

n the town of Wagener, the aging water and sewer infrastructure has led to massive leaks on Main Street. Underground asbestos pipes, which are obsolete these days, have had several breaks

in the past few years. One area of town near the high school had no fire hydrants. Officials feared that if the school ever caught fire, they would have to run a hose from town to extinguish the flames.

A publication for the Municipal Association of South Carolina

Workers in Wagener repairing damages to their aging water/sewer infrastructure, thanks to CDBG funding. (Photo courtesy of Mayor Michael Miller)

www.citiesmeanbusiness.org | Cities Mean Business 5

Cover Story

BEFORE

These before and after photos document the result of a renovation and façade improvement project in Triangle City, the business district within West Columbia. (Photos courtesy of the city of West Columbia)

But the town has received more than

Community Development Block Grants,

Director Donna Smith. The work has had a

$600,000 in funds during the past year from

a program of the U.S. Department of Housing

positive aesthetic impact on the area and has

the federal Community Development Block

and Urban Development since the mid-1970s,

sparked economic revitalization, she said.

Grant program, ensuring that Wagener will

fund local projects like affordable housing,

be able to improve its water system along two

anti-poverty programs and infrastructure

approval on a water line improvement

major roads in town, clean up contamination

development. Proposed CDBG projects

project for one of the oldest districts in the

and remove an eyesore by tearing down a

must benefit a majority of low-to-moderate

city. The current water lines are small and

vacant gas station.

income people, prevent blight or meet an

rusted, break frequently and do not

urgent health need. Just last year, South

accommodate fire hydrants. The project

thin, “We could not possibly repair our sewer

Carolina communities of all sizes received

proposes upgrading the lines and adding

and water systems with what we have,” said

more than $50 million through CDBG to

three hydrants, Smith said.

Wagener Mayor Michael Miller.

support local development projects.

With the city’s budget already stretched

Wagener repairs leaks regularly, but

In countless cities and towns, CDBG funds

The city also has received preliminary

“The façade and renovation projects would not have been undertaken without

after paying for the equipment, tests, lab fees

provide the infrastructure improvements that

CDBG funding. Both have promoted new

and chemicals that are necessary to stay in

are a catalyst for economic development.

and increased business in the Triangle City

compliance with DHEC, OSHA and EPA

Façade and renovation projects funded by

portion of West Columbia. These projects have resulted in private businesses upgrad-

regulations, there is not enough money left to

CDBG have brought new life to the business

make replacements, said Public Works

district in West Columbia, according to Mayor ing and improving their facilities, bringing

Director Jamie Preacher.

Bobby Horton.

“All we can do is patch and pray,” Preacher

growth and jobs to that area,” Horton said.

West Columbia recently completed the

“Some water and sewer projects in very low

said. “There are a lot of unseen costs in

second phase of a renovation and façade

income portions of the city would have taken

operating a public works department, and

improvement project in a two-block area of

years to complete, if at all. CDBG funding is

without the grants from CDBG, municipalities Triangle City, the city’s business district since

critical to provide similar improvements in

cannot repair their infrastructure.”

economically disadvantaged areas of the city.”

the 1940s, said Economic Development

6 Cities Mean Business | www.citiesmeanbusiness.org

A publication for the Municipal Association of South Carolina

Cover Story

BEFORE

The city of Georgetown is seeing the results

according to Amanda Childers, Harleyville’s

where its septic systems were failing. Funds also

of work completed with CDBG funds. The

town clerk and treasurer. In addition, the

helped the town begin the process of creating

historic seaport city has received $3.5 million

town has been awarded more than $250,000

a capital improvements plan to identify those

in CDBG the last two years for streetscape and

in CDBG funds to rehab two of its sewer

areas most desperately in need of sewer due to

drainage improvements. Those upgrades have

pump stations.

potential impacts on critical areas nearby.

spurred residential growth, with commercial

“These CDBG projects have been vitally

development expected to follow, according to

important for our city,” Childers said. “The

quality of our residents’ lives and preserving

City Administrator Chris Eldridge.

ability to keep our utility systems updated

our adjacent critical water bodies that could

allows us to provide services to new

be impaired due to failing septic systems,”

and four Habitat houses,” Eldridge said. “Once

businesses. Without this funding, our aging

said Town Manager Van Willis.

the stormwater project is completed, it will

system would very likely have been unable to

“We have 26 homes slated for construction

“For the town, it is about improving the

Without CDBG funds, Port Royal does not

make our Highway 17 corridor more attractive support our current population, much less

have the resources to make the significant sewer

to commercial development due to lessened

improvements necessary in its low-income

flooding risk.” Eldridge noted that the work also is

any new growth.” Funding is always an issue in a small

areas, Willis said. The town is considering

town, and projects could not be completed

applying for another CDBG through the Village

generating jobs, with around 30-40 people

without the grant money, said Mayor Charles

Renaissance program to address the impact

working on the stormwater project on a

Ackerman. Yet without such updates,

of the economy on the downtown area, and to

daily basis.

development options are limited.

help improve the prospects for selling its closed

The grants also are important to small towns like Harleyville, which has a population of 654. In 2004, the town began an overhaul of its

“We’re trying to prepare for a combination of residential and business growth,” he said. The town of Port Royal has used CDBG

and blighted port. “As a traditionally blue-collar community, under the current constraints of legislation

water system, which was originally installed

funds for several sewer upgrades in low-to-

governing taxation, it would be absolutely

during the 1960s. Harleyville was awarded a

moderate income areas, and was awarded a

impossible to take these projects on

total of $1 million for its water project,

planning grant that allowed the town to identify financially,” he added.

A publication for the Municipal Association of South Carolina

www.citiesmeanbusiness.org | Cities Mean Business 7

Feature Story

Curb appeal Old buildings find successful new life through renovation By Amy Geier Edgar

n many cities, older buildings can sit vacant for years, falling into disrepair and becoming eyesores. Through

renovation and rehabilitation supported by the city, however, these structures can find a successful second life and add vibrancy and a new purpose to a downtown. The city of Abbeville first took on downtown revitalization in the 1970s when it restored its downtown façades to their original 19th century charm. In the following decades, however, downtown Abbeville lost businesses and its appeal as a tourist

Clover’s new community center is in a renovated post office building. (Photo courtesy town of Clover)

destination. City leaders, determined to breathe new life into their downtown, created

Pearman, executive director of the Greater

indoor recreation programs. Town leaders

a comprehensive downtown redevelopment

Abbeville Chamber of Commerce.

realized they could not afford to build a new

plan. A central part of their plan involved

“It is a huge asset to our downtown

center, so they began looking at the post office

renovating the 1840s-era Trinity Street Livery business community,” Pearman explained.

building, conveniently located near the

Stable into a multi-use facility.

historic downtown district.

“The Livery Stable was a true historical

The project used funds from a South

gem in the rough and the finished product

Carolina National Heritage Corridor grant,

has provided a remarkable springboard for

building and renovations was $403,000,

matching funds from the city and revenues

increasing tourism, due to the versatility of

according to Clover Town Administrator

from a local hospitality tax to pay for the

events that the Stable can accommodate.”

Allison Harvey. The center was completed in

The total purchase cost of the land,

renovations. Trinity Street has gone from an

The town of Clover also found a new

area with vacant and dilapidated storefronts

purpose for a historic building when leaders

to an active corridor of businesses, restaurants

decided to purchase a former post office build- along with office and meeting space.

and entertainment. Less than a year after its

ing and transform it into a community center.

official dedication, the Stable has served as a

As the town’s population grew, so too

June 2010 and now offers a variety of educational, social and recreational activities, “We have received many, many positive comments from the community and

venue to everything from wedding receptions

did the need for a community center to hold

business leaders,” Harvey said. “We’ve been

to a seasonal farmers market, said Kacy

events like teen dances, training sessions and

able to better serve the public by making the

8 Cities Mean Business | www.citiesmeanbusiness.org

A publication for the Municipal Association of South Carolina

Feature Story

An abandoned downtown building in Sumter was renovated into the new Central Carolina Technical College Health Sciences Center. (Photo courtesy city of Sumter)

recreation department much more accessible

the night is a great addition to downtown

(geographically and for the physically disabled),

Beaufort,” said Main Street Beaufort, USA

having a venue to host art shows, self-defense

Executive Director LaNelle Fabian. “The

classes, pumpkin carving contests and more

rooms are constantly booked and they have

great social and cultural programs with much

breathed new life into a building that was

more to come, and having a permanent

empty for decades.”

meeting spot for the town council and various other town committees.” In Beaufort, private investors rehabilitated a

New life also came to a shuttered building in Sumter’s downtown. Western Auto Co. closed its 70,000-square-

1950s Greyhound bus station, transforming it

foot facility on South Main Street downtown

into a sophisticated boutique hotel that has had

in the 1970s. The building was a blemish on

a positive impact on the commercial district. The former bus station sat vacant for

downtown for decades, until the city completed a feasibility study a few years ago as

decades, serving only as home to scores of

part of its downtown revitalization plan and

pigeons. Local businessman Kevin Cuppia

determined that it could partner with Central

In Beaufort, private investors rehabilitated a 1950s

walked past the building every day for years,

Carolina Technical College to create a new

Greyhound Bus Station and transformed it into a sophis-

imagining how it could be transformed.

Health Sciences Center.

ticated boutique hotel that has had a positive impact on

When previous plans fell through and the

The collaboration addressed the needs

owner put the building on the market,

of both the college and the city. Faced with

Cuppia decided to take a chance.

growing demand, CCTC needed to expand

Cuppia and his wife Rosemary spent

the commercial district. (Photos courtesy Main Street Beaufort, USA)

its healthcare training programs but did not

bring in more students to the downtown

about a year on renovations for the building,

have room to expand its main campus

facility. On top of that, visitors and sales

which included putting on a new roof and

facility. City leaders wanted to eliminate

have increased for downtown businesses and

restoring the building’s original façade. The

blight and attract more people downtown to

restaurants.

result is The Greyhound Flats, a chic hotel

help businesses.

with two large suites just a block from the

“The impact for downtown has been

The CCTC Health Science Center opened

outstanding,” said Downtown Growth and

waterfront park and steps away from

Aug. 23, 2010. Today, nearly 1,000 college

Development Manager Ray Reich. “It

downtown restaurants and shopping.

students attend health care classes in the

transformed blight to a beautiful asset and

“The addition of the extra rooms in the

heart of downtown Sumter. CCTC is now

has added hundreds of students to our

core commercial district for people to spend

able to expand its curriculum and hopes to

downtown traffic every day.”

A publication for the Municipal Association of South Carolina

www.citiesmeanbusiness.org | Cities Mean Business 9

e z i l a t i v e r s c i t e h t s e a d e v o o t d a Impr e l d n a s d o o h r o b h g i t e n n e m p o l e v e d c i econom er Edgar By Amy Gei

ou never get a second chance to make a first impression. The old adage applies to people just as

much as it does to cities looking to attract economic development. Chester city officials knew the blighted, former textile mill in the city limits was an eyesore and a deterrent to potential investors. “Every time economic developers would

Top: The former Springsteen Mill in Chester that was

bring prospects into town, they’d see the mill,

demolished and cleaned up in 2010. This project was

shake their heads and walk away,” said

possible due to a $500,000 CDBG award. (Photo cour-

former Chester Mayor Mitch Foster.

tesy of the city of Chester) Right: Homes in Pickens were

The city was awarded a $500,000

rehabilitated using a $20,000 grant from CDBG. (Photo

Community Development Block Grant to

courtesy of the Appalachian Councils of Government)

remove the vacant mill. It’s all part of a continuing effort to revitalize the downtown and spark economic development.

The city’s reliance and utilization of CDBG funds goes back many years, said Chester City

“It’s done so much just for the attitude and Administrator Jeff Kerr. In the past, the city

residents. In July 2008, the city was awarded a $50,000 CDBG grant to rehabilitate the exterior of homes in the South Hartsville neighborhood.

spirit in town,” Foster said. “We’ve been

has been awarded housing grants to rehab

Through the Paint the Town Grant, the city re-

fighting this for years.”

low-income homes in town.

habilitated nine homes and 30 low- to-moder-

And the revitalization efforts continue. The city also received a $500,000 CDBG grant to

“Without those grants, certain parts of town would be dilapidated. People would be

upgrade its water/sewer lines and was awarded living in squalor,” Foster said. a $25,000 grant to study the infrastructure needs in the East Chester Community.

The city of Hartsville also has used CDBG funds to rehab low-income homes and help

10 Cities Mean Business | www.citiesmeanbusiness.org

ate income people benefitted from the improvements, said City Manager Natalie Zeigler. Rehabilitating the houses has improved the neighborhood’s aesthetics and also increased home values.

BEFORE

A $20,000 Village Renaissance CDBG The city put out notices letting residents

was awarded to the city of Pickens in

know the grant was available to certain low-

December 2010 to revitalize a low-income

income areas near the downtown,

neighborhood on the U.S. 178 corridor leading

and residents applied, said Brenda Kelley,

into downtown. This type of grant allows a

planning and zoning administrator. New

community to revamp a neighborhood that is

roofs were placed on six homes. On one

within walking distance of its downtown and

house, the roof had been exposed down

business centers. The city hopes to receive

to the rafters, Kelley said. Five homes

a total of $1 million in CDBG money to

received a fresh coat of paint. One home

complete the work, which could include

had some fascia boards replaced and some

water, sewer and drainage infrastructure

vinyl siding repaired.

improvements, said City Administrator

“When you drove by before, they had a dilapidated appearance. But now they’re

AFTER

Katherine Brackett. “We’re working to improve a poor,

quaint and cute,” Kelley said. “The residents

neglected part of town to make it safer,

who did benefit have been so grateful. Most

walkable and more attractive,” Brackett said.

of them, without the grant, would never have

“The community is really excited to see

Hartsville’s Paint the Town project was made possible

been able to do these repairs.”

improvements there.”

through $50,000 in CDBG funds that improved the

BEFORE

neighborhood’s aesthetics and increased home values. (Photos courtesy of the city of Hartsville)

AFTER

A publication for the Municipal Association of South Carolina

www.citiesmeanbusiness.org | Cities Mean Business 11

Feature Story

Downtown tours The difference between having the facts and having the experience

Photo/Ryan Wilcox

owntowns are the heartbeat of a city.

Columbia Mayor Steve Benjamin and Councilwoman Belinda Gergel talk with Greenville developer Bob Hughes. City officials were touring Hughes’ developments in Greenville to get a sense of what he might bring to the Bull Street property, which he recently agreed to buy. (Photo/James T. Hammond)

They are home to local businesses, employing many people in the area

and contributing to the community’s tax base. They also attract tourists, provide services and reflect a city’s history and quality of life. So it’s not surprising to see that city officials put so much energy and effort into preserving and revitalizing their Main Street. Some city officials currently undertaking revitalization projects have found it helpful to visit their peers in other municipalities with their own successful revitalization stories. In the town of Lexington, where officials

The visits included a stop in a renovated

been done and what’s worked.”

are working on a Vision Plan to map out the

furniture store in Travelers Rest, discussions

next two decades, visits to other cities

with councilmembers about power lines

implement back home in Lexington will

provided leaders an opportunity to discuss

and trailway projects, insight on Greenville’s

take time. Other specific ideas can be put

challenges and successes with other local

Farmers Market, and comparisons to

into place immediately. Lexington Mayor

officials and bring home ideas and inspiration.

Simpsonville’s roads and intersections, said

Randy Halfacre said Greenville’s Farmers

In early February, Lexington officials toured

Lexington Town Administrator Britt Poole.

Market inspired him and other officials.

the downtown areas of Travelers Rest, Greenville and Simpsonville.

“Making these visits gives you a different perspective,” Poole said. “You can see what’s

12 Cities Mean Business | www.citiesmeanbusiness.org

Some of the projects they hope to

He hopes to have a Farmers Market up and running this spring.

A publication for the Municipal Association of South Carolina

Feature Story The trip also gave them ideas to consider for the future. The municipalities that Lexington leaders visited use hospitality tax revenues to finance key downtown projects, Halfacre said. Each of those cities had a plan that they shared with their local businesses and residents, he said. Lexington had its own hospitality tax years ago, but it was ill-advised and the public and businesses opposed it, Halfacre said. Yet the field trips proved that such a tax can be useful if the public is informed and educated about it, he said. “When and if we decide to put a hospitality tax forward again, we would do our due diligence, share information with our constituents and have a plan,” Halfacre said. Visiting other municipalities helps to develop relationships between cities, and allows them to learn from each other. “We don’t need to reinvent the wheel,” Halfacre said. “We can take lessons learned from other municipalities and bring them back home.” Officials from the city of Columbia were looking to take lessons from the city of Greenville during a February field trip to the Upstate. Columbia finds itself in a unique position to shape the downtown, as it looks to develop a 165-acre tract of land on Bull Street that belonged to the S.C. Department of Mental Health. Greenville developer Bob Hughes wants to develop the land. “This is the largest urban development project east of the Mississippi River. If we do this right, it can add tremendous value to the city of Columbia,” City Manager Steve Gantt said. Fred Delk, executive director of the Columbia Development Corp., helped set up the visit between Columbia and Greenville officials. They had a brief meeting with Hughes and toured some of his downtown Greenville projects including, the River Place development, the Next Innovation Center, the Wachovia building on Main Street and the historic Greenville County Courthouse on Main Street. A publication for the Municipal Association of South Carolina

Photo/Ryan Wilcox

www.citiesmeanbusiness.org | Cities Mean Business 13

Lexington leaders visit Travelers Rest to look at a trailways project. (Photo courtesy town of Lexington)

Columbia officials saw numerous examples

Columbia leaders also visited Greenville’s Falls Park. (Photo/Ryan Wilcox)

Stadium that night. It’s the difference

successful in Greenville. Cities also should be

of how public/private partnerships have played

between having the facts and having the

aware that they are stepping into long-term

a key role in the rebirth of Greenville’s city

experience,” Benjamin said.

investments and patience is required, she said.

center. They also had frank discussions with

“Making trips like this allows us to build

“To be successful, you must be in it for the

city leaders, like Mayor Knox White, about the

and strengthen relationships between our

long-haul,” she said. “You need to have a

steps they took in laying out a clear vision and

cities and open new lines of communication

constant focus on what you need to do, and

how they worked to make that vision a reality,

so that we aren’t stuck trying to face shared

still maintain what you have.”

said Columbia Mayor Steve Benjamin.

challenges with limited individual resources,”

“I don’t expect that everything that works in downtown Greenville will work for Columbia or vice versa,” Benjamin said. “But

All the effort put forth into revitalizing

Benjamin added. “We can rise to meet them

downtown areas show the importance of

together.”

Main Street. Everyone — from local residents

The city of Greenville has been happy to

and business owners to visitors and potential

I can tell you that we face a lot of the same

share its experiences of several decades of

investors — judges how vibrant and

challenges and, hopefully, we can learn from

revitalization work with other municipalities,

attractive a city is by the condition of its

their experiences as we move forward with

said Nancy Whitworth, Greenville’s eco-

Main Street, Benjamin said.

our own vision.”

nomic development director. She encourages

Walking through downtown Greenville and seeing firsthand what the city has accomplished was invaluable, Benjamin said. “Even if I recited every statistic from October’s 35-21 Gamecock victory over No.

cities to take some of Greenville’s ideas and adapt them to their individual cities. “There’s not a one-size fits all formula,” she said.

Main Street is the heart and soul of a city, Halfacre added. “It’s a community’s anchor, it’s their identity,” he said. “Towns spawn from a Main Street.”

Whitworth advises other cities seeking

1 ranked Alabama, you still wouldn’t know

downtown revitalization to look at public-

what it was like to be in Williams-Brice

private partnerships, which has proven

14 Cities Mean Business | www.citiesmeanbusiness.org

A publication for the Municipal Association of South Carolina

You see a police car. We see a police officer named Hal who works closely with fire departments and EMS, who knows every business owner downtown, who can name every city street and who buys 12 snow cones on Saturdays even though his T-ball team has never won a game.

www.citiesmeanbusiness.org

Cities Mean Business

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Top Hospitals

Top

Hospitals South Carolina hospitals elevating the level of care

ach year, Health Grades Inc. releases its Hospital Quality in America Study, an independent and objective rating of nearly 5,000 hospitals in the U.S. The organization said its rankings are an effort to create transparency in health care by providing patients the resources and tools they need to make informed health decisions. Health Grades also said its ratings for hospitals and nursing homes are based on objective, risk-adjusted clinical outcomes created from Medicare data at each of the nation’s nongovernment-run hospitals. They demonstrate risk-adjusted mortality and complications for 26 diagnoses and procedures and do not reflect subjective factors, such as hospital reputation. Every short-term acute care hospital in the country is rated, regardless of whether or not they are a Health Grades client. Hospitals cannot opt out of ratings, and hospitals do not receive special ratings if they partner with the company. As medical reimbursement becomes less and less, patients need to be involved in their own health care decisions, which includes researching hospitals where they receive care, said Leigh Miller, director of clinical outcomes at AnMed Health in Anderson.

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That’s why rankings, like Health Grades Inc.’s Hospital Quality in America Study, are so important, Miller said. “There isn’t a system that’s going to be all things to all people. I think people are savvy and the Internet is opening up a whole new world. People call and ask us about our services because of an article they’ve seen or a list we are on.” AnMed Health regularly ranks on Health Grade’s lists, which are accessible at www.health grades.com, and Miller said hospital officials view the rankings as validation for all of the hard work they put into patient care and safety.

Communication, collaboration and technology Miller has worked for AnMed Health since 1978, and has been director of clinical outcomes for the past 12 years. She said the hospital has always provided quality care, but communication,

collaboration and technology have elevated it much further and improved clinical outcomes. AnMed Health last year was named one of the 100 Most Wired hospitals in the nation by Hospitals & Health Networks magazine. Its advancements include electronic medical records, which it first implemented about 15 years ago, and a robot in the pharmacy that pulls medications and barcodes the orders for administration on the packaging. Miller believes the hospital is one of the first to implement computerized physician order entry. “Our doctors enter anywhere from 68-72% of their orders electronically every month – that’s every medication, text, nursing order,

The “arms” of the da Vinci Surgical System perform the surgeon’s hand motions inside the patient. (Photo/Provided)

WHERE WILL 100 MILLION PEOPLE FIND A DOCTOR THIS YEAR?

HealthGrades, the #1 website for people to research and select doctors and hospitals. www.healthgrades.com/mag/sc “My research on HealthGrades saved my life. Without a resource like HealthGrades, I would not have been able to check the available doctors and hospitals so thoroughly; and I would not have had as good an outcome. HealthGrades provides a very necessary service to everyone and most especially to those of us who are in need of medical care.” — Carol C., Cary, NC

Top Hospitals

Left: Operating room staff monitor a surgical procedure being performed by the da Vinci Surgical System. Above: Patients are monitored 24/7 inside the Advance ICU Care in St. Louis. (Photos/Provided)

everything they want done for the patient. They enter it directly into the computer rather than writing an order that may or may not be legible,” she said. The orders can be viewed instantly by nurses, as well as other staff, so they can see if a patient has any new orders or stat orders. Technology is also prominent in the intensive care unit where AnMed has implemented a state-of-the-art patient monitoring system called the eICU. Using high definition cameras and communication equipment, doctors and nurses in a centralized monitoring center

Hospital mortality rates in the U.S. have improved Hospital unadjusted mortality rates in the U.S. have improved, on average, 7.98% from 2007 through 2009 across 17 diagnoses and procedures. The highest actual mortality rates were among sepsis, respiratory failure, and gastrointestinal surgeries and procedures. The most improvement in unadjusted mortality was seen in chronic obstructive pulmonary disease (18.73%), bowel obstruction (14.72%), heart attack (13.68%), and stroke (13.50%). Source: http://www.healthgrades.com/ business/study/quality.aspx 28

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in St. Louis can observe and evaluate critically ill patients around the clock. By tracking the most subtle changes in a patient’s progress, the eICU program helps identify the early warning signs of a problem. When these issues are addressed quickly, the result is often a faster recovery and shorter hospital stay. Also in place is the da Vinci Surgical System, which allows doctors to perform minimally invasive surgeries with robotic technology. In addition to communication and technology, Miller said staff collaboration has made a big difference in patient care and safety. Along these lines, Anmed has created “process teams,” which include various levels of staff members who review best practices and how AnMed compares to local and national peers. A process team that focuses on stroke patients, for example, includes representatives from EMS, the emergency room, the lab and radiology. “They are trying to look at minute-byminute where our opportunities are to improve time-wise or process-wise, and then we are tweaking them,” Miller said. “Our teams examine if there are breaking points where those gold standards have not been met and changes we need to make. Some teams meet every month, some every other. We just try to keep our finger on it.”

is focused on improving patient care, as well. It has formed Every Patient Counts, a partnership between SCHA and its 89 member hospitals, as well as private and public organizations, to: • Create an organizational culture of safety with engaged leadership. • Improve the quality and outcome of evidence-based medical care for key patient populations. • Eliminate preventable, serious adverse events and unintended patient harm. • Establish a patient-centered environment of care with open and transparent communication. “South Carolina’s hospitals have a commitment to every patient who walks through their doors, and that is to provide the highest quality of care and the safest environment possible,” said Rick Foster, senior vice president of quality and patient safety with SCHA. “We know that problems with communication are the No. 1 cause of unintended harm. We want to improve this within and across organizations, get families involved, patients involved, as well as make sure communication is open and transparent. We’re all working together across organizations to improve communication with the common goal of improving patient care and safety,” he Every Patient Counts The South Carolina Hospital Association said.

Na The Regional Medical Center recently earned the national Thomson Reuters Healthcare Advantage Award for our clinical advancements. It recognizes two of our greatest accomplishments over the last year: • Our patient survival rate is 39% better than the national average. • Our pneumonia and congestive heart failure treatment improved by 22%. Congratulations to our Quality Department, Hospitalists and everyone whose hard work and dedication helped us earn this prestigious honor! To learn more about this award, visit www.thomsonreuters.com.

Orangeburg, SC www.trmchealth.org

We’re changing how you think about health care 3000 St. Matthews Road, Orangeburg, SC (803)395-2200

Top Hospitals

Treatment of Stroke

About HealthGrades

Health Grades Inc. is the leading health care ratings organization, providing quality ratings and profiles of hospitals, nursing homes and physicians to consumers, corporations, health plans and hospitals. Millions of consumers and hundreds of the nation’s largest employers, health plans and hospitals rely on HealthGrades’ independent ratings, consulting and products to make health care decisions based on the quality of care. With more than 8 million monthly visitors, HealthGrades.com is the leading destination for patients choosing health care providers and a top 10 health care property according to comScore Inc.

Medical University of South Carolina Medical Center........... Charleston Cannon Memorial Hospital...................................................... Pickens Hilton Head Hospital................................................Hilton Head Island Kershaw Health......................................................................Camden Loris Community Hospital............................................................Loris Mary Black Memorial Hospital.......................................... Spartanburg Palmetto Health Baptist......................................................... Columbia Roper Hospital.................................................................... Charleston Spartanburg Regional Medical Center.............................. Spartanburg Wallace Thomson Hospital..........................................................Union Based on mortality for one medical issue: stroke. To receive a ranking in this service area, a hospital had to have a transfer-out rate of less than 10% in the most recent year based on MedPAR data.

Critical Care Services

Vascular Services

AnMed Health.........................................................................Anderson Beaufort Memorial Hospital..................................................... Beaufort Bon Secours St. Francis Hospital..........................................Charleston Mary Black Memorial Hospital........................................... Spartanburg McLeod Regional Medical Center.............................................Florence Oconee Medical Center..............................................................Seneca Palmetto Health Richland........................................................Columbia Roper Hospital......................................................................Charleston Spartanburg Regional Medical Center................................ Spartanburg The Regional Medical Center of Orangeburg & Calhoun Counties......... .......................................................................................... Orangeburg

Carolinas Hospital System – Florence...............................Florence Grand Strand Regional Medical Center............................ Myrtle Beach Greenville Memorial Hospital................................................ Greenville Lexington Medical Center............................................ West Columbia McLeod Regional Medical Center........................................... Florence Medical University of South Carolina Medical Center........... Charleston Piedmont Medical Center.......................................................Rock Hill Roper Hospital.................................................................... Charleston Self Regional Healthcare.................................................... Greenwood Trident Medical Center........................................................ Charleston

Based on mortality for diabetic acidosis and coma, sepsis, pulmonary embolism and respiratory failure. To receive a ranking in this service area, a hospital had to have ratings in all four critical care areas based on MedPAR data.

Based on complications and mortality for resection/replacement of abdominal aorta, carotid surgery and peripheral vascular bypass. To receive a ranking in this specialty area, a hospital had to have ratings for all three medical issues based on MedPAR data.

Overall Cardiac Services

Overall Orthopedic Services

AnMed Health....................................................................... Anderson Bon Secours St. Francis Health System............................... Greenville Grand Strand Regional Medical Center............................ Myrtle Beach Greenville Memorial Hospital................................................ Greenville Hilton Head Hospital................................................Hilton Head Island McLeod Regional Medical Center........................................... Florence Medical University of South Carolina Medical Center........... Charleston Palmetto Health Richland...................................................... Columbia Sisters of Charity Providence Hospitals................................. Columbia Spartanburg Regional Medical Center.............................. Spartanburg

AnMed Health....................................................................... Anderson Bon Secours St. Francis Health System............................... Greenville Carolinas Hospital System – Florence.................................... Florence Georgetown Memorial Hospital......................................... Georgetown Lexington Medical Center............................................ West Columbia Medical University of South Carolina Medical Center........... Charleston Roper Hospital.................................................................... Charleston Self Regional Healthcare.................................................... Greenwood Sisters of Charity Providence Hospitals................................. Columbia Spartanburg Regional Medical Center.............................. Spartanburg

Based on mortality for coronary (heart) bypass surgery, valve replacement surgery, coronary interventional procedures, heart attack, and heart failure. To receive a ranking in this service area, a hospital had to provide coronary bypass surgery and have ratings in three of the four other medical issues based on MedPAR data. Copyright notice © 2011 Health Grades Inc. All rights reserved. May not be reproduced or reprinted without permission from Health Grades Inc. Use of this information is governed by the HealthGrades user agreement, which can be viewed at www.healthgrades.com.

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Based on complications for total knee replacement, total hip replacement, hip fracture repair, back and neck surgery (except spinal fusion), and back and neck surgery (spinal fusion). To receive a ranking in this service area, a hospital had to have ratings in four of the five medical issues based on MedPAR data and those four must include total knee replacement, total hip replacement and hip fracture repair. Disclaimer HealthGrades obtains its information from sources it believes to be reliable. While HealthGrades endeavors to provide the most accurate, up to date information available, because of the possibility of human and mechanical error as well as other factors, HealthGrades cannot be responsible or liable for any errors or omissions in its information or the results obtained from the use of such information. Users should obtain any additional information necessary to make an informed decision.

Technical Colleges

Guide TO

Technical Colleges Preparing for the future The South Carolina Technical College System provides a gateway to education and employment. The following guide offers a list of schools in the Technical College System, as well as information about the challenges technical colleges face and their successes.

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Technical Colleges

Rocky economy spurs boom at technical colleges By Laura Brandt, Staff Writer

are seeing the value in affordability.” According to the S.C. Commission on Higher Education, the average tuition, excluding fees, for full-time undergraduate students for the 2009-2010 academic year at the state’s four-year public schools was $7,209. The average was $3,028 at technical schools. While enrollment has increased, state appropriations to the technical colleges have declined sharply. School officials said they have implemented cost-cutting measures, all the while managing to keep tuition rates fairly steady. “Our board of trustees, which is called our commission, asked us to clean up our house,” White said. “Since then, we’ve cut our expenses. But we’ve been fortunate; we haven’t had to lay off or furlough anybody. With a minimal increase in tuition and fees, we’ve been able to keep things going.” Now, more than ever, college officials said they are turning to grants to help ease the recent funding cuts. “As state funding has gone down, we’ve put a lot of effort into applying for federal grants,” White said.

ffering what’s often a less expensive alternative to their four-year counterparts, S.C. technical colleges are embracing the recession-era boom. Darrel Staat, president of the S.C. Technical College System, said that the technical school system has seen significant growth in the past couple of years. “In times of economic uncertainty, many South Carolinians turn to the technical colleges to enhance their skills or learn a new skill,” Staat said. “This past fall, three of the top five largest higher education institutions in South Carolina in terms of enrollment are technical colleges.” Credit enrollment at South Carolina’s technical colleges increased by 69% from fall 1999 to fall 2010, with 19% of that increase coming since fall 2008, Staat said. School officials said that with the spike in enrollment has come a decline in state support. Marshall “Sonny” White Jr., president of Midlands Technical College, said state funding at Midlands Tech, which has seven sites in Richland, Lexington and Fairfield counties, has decreased about 50% since 2008. Growth begets growth Trident Technical College, with sites in But as many enrollment programs hit Berkeley, Charleston and Dorchester counties, capacity, technical schools are left scrambling has had it funding cut about the same while to find space, officials said. it hit an enrollment record in fall 2010 with “In some areas, we’re completely maxed 15,790 students. out — to the point we’ve run out of parking,” White said. If there is no space to be found, many The value of affordability schools have little option but to limit enrollDub Green, a research analyst at Trident, said that technical schools follow a trend ment in certain courses. Among those limited by space are nursopposite of the economy and that it wasn’t until the job market turned into a downward ing and allied health programs. According to spiral technical schools’ enrollment took a the Bureau of Labor Statistics, health care will generate 3.2 million new wage and salary jobs turn for the better. College leaders said that accessibility and between 2008 and 2018, more than any other affordability are at the core of the S.C. techni- industry. But although space is limited now, schools cal schools’ mission. “Community colleges are in the com- are working on projects that will help ease the munity where people are working, so there crunch in the future. A 90,000-square-foot facility that would is a greater accessibility,” said David Hansen, director of public information for Trident expand the capacity in the nursing and allied Tech. “And the cost of a four-year education health programs is now under construction at has gone up so much — people are looking at Trident Tech. The $30 million project will be two-year colleges now more than ever. People funded by Charleston, Berkeley and Dorches34

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ter counties. Similarly, Midlands Tech broke ground on April 20 for its new engineering technology and sciences wing on its Northeast campus, to be funded by state, local, county and college funds. Both projects have estimated completion dates in 2013. Officials said they have seen an increase in their college certificate programs, where students can earn college-level credentials without the financial commitment of a full-length degree program. And Keith Miller, president of Greenville Technical College, said he has seen an increase in “reverse transfers” as well. “The other piece, due to layoffs caused by the economy, is an increase in reverse transfers — students who already have degrees,” he said. “They have come back, getting into different professions or wanting to increase their skills.” All the while, college officials said they have not neglected the calls from the community. S.C. Electric & Gas Co. first approached Midlands Tech about a need to supply the expansion of the V.C. Summer Nuclear Station with qualified nuclear technicians. In 2009, Midlands Tech launched the Nuclear Systems Technology program at its Beltline campus; it recently graduated its first 12 individuals with associate degrees with majors in nuclear systems technology. “We’ve had great support from the counties and great support from private businesses in the area,” White said. “They know how important it is for us to supply them with the workforce.” It is to programs like these that technical college leaders attribute their staying power in hard economic times. “Our mission is to meet the needs of the community we serve — to meet the needs of the businesses we serve,” White said. “We understand the jobs and what jobs are there.” Recently, however, there has been some evidence in the state’s technical college system that might indicate the economy is on the mend. White said Midlands Tech has seen a leveling-off in enrollment in the past semester. “It’s not unexpected as the economy starts to pick back up and more jobs start to open up,” White said. “But I’m convinced the cup is half full provided we have the workforce.” SC

BIZ

OCtech & FESTO: First in North America

Orangeburg-Calhoun Technical College is proud to announce the opening of the first FESTO Authorized and Certified Training Center in North America. This Center will provide not only our students with singular opportunities, but also allow companies from across the state to train on the worldâ&#x20AC;&#x2122;s finest equipment on our campus in Orangeburg, SC.

Orangeburg-Calhoun Technical College

octech.edu To learn more about the OCtech FACT Center, visit octech.edu.

festo.com AA/EOE

Technical Colleges

Technical colleges in S.C. Aiken Technical College 2276 Jefferson Davis Highway Graniteville, SC 29829 803-593-9231 www.atc.edu County served: Aiken 2009-2010 enrollment: 4,550 Aiken Technical College is a comprehensive, public, two-year institution of higher education in South Carolina. Susan Winsor is currently serving as president.

Greenville Technical College P.O. Box 5616 Greenville, SC 29606 864-250-8111 www.gvltec.edu County served: Greenville 2009-2010 enrollment: 21,200 Greenville Technical College is a comprehensive, public, two-year institution of higher education in South Carolina. Keith Miller is currently serving as president.

Central Carolina Technical College 506 N. Guignard Drive Sumter, SC 29150 803-778-6605 www.cctech.edu Counties served: Clarendon, Kershaw, Lee and Sumter 2009-2010 enrollment: 6,055 Central Carolina Technical College is a comprehensive, public, two-year institution of higher education in South Carolina. Tim Hardee is currently serving as president.

Horry-Georgetown Technical College 2050 Highway 501 East Conway, SC 29528-6066 843-347-3186 www.hgtc.edu Counties served: Georgetown and Horry counties 2009-2010 enrollment: 10,151 Horry-Georgetown Technical College is a comprehensive, public, two-year institution of higher education in South Carolina. Neyle Wilson is currently serving as president.

Denmark Technical College 1126 Solomon Blatt Blvd. Denmark, SC 29042 803-793-5176 www.denmarktech.edu Counties served: Allendale, Bamberg and Barnwell 2009-2010 enrollment: 1,837 Denmark Technical College is a comprehensive, public, two-year institution of higher education in South Carolina. Michael M. Townsend is currently serving as president.

Midlands Technical College P.O. Box 2408 Columbia, SC 29202 803-738-8324 www.midlandstech.edu Counties served: Fairfield, Lexington and Richland 2009-2010 enrollment: 17,439 Midlands Technical College is a comprehensive, public, two-year institution of higher education in South Carolina. Marshall (Sonny) White Jr. is currently serving as president.

Florence-Darlington Technical College 2715 W. Lucas St. Florence, SC 29502-0548 800-228-5745 or 843-661-TECH www.fdtc.edu Counties served: Darlington, Florence and Marion 2009-2010 enrollment: 7,447 Florence-Darlington Technical College is a comprehensive, public, two-year institution of higher education in South Carolina. Charles Gould is currently serving as president.

Northeastern Technical College 1201 Chesterfield Highway Cheraw, SC 29520 843-921-6900 or 800-921-7399 www.netc.edu Counties served: Chesterfield, Dillon and Marlboro 2009-2010 enrollment: 1,586 Northeastern Technical College is a comprehensive, public, two-year institution of higher education in South Carolina. Ron Bartley is currently serving as president.

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Orangeburg-Calhoun Technical College 3250 St. Matthews Road Orangeburg, SC 29118 803-536-0311 or 1-800-813-6519 www.octech.edu Counties served: Calhoun and Orangeburg 2009-2010 enrollment: 4,350 Orangeburg-Calhoun Technical College is a comprehensive, public, two-year institution of higher education in South Carolina. Anne Crook is currently serving as president. Walter Tobin will become president on June 1, 2011. Piedmont Technical College 620 N. Emerald Road Greenwood, SC 29648 1-800-868-5528 www.ptc.edu Counties served: Abbeville, Edgefield, Greenwood, Laurens, McCormick and Newberry 2009-2010 enrollment: 8,143 Piedmont Technical College is a comprehensive, public, two-year institution of higher education in South Carolina. Ray Brooks is currently serving as president. Spartanburg Community College 800 Brisack Road Spartanburg, SC 29303 864-592-4800 or 866-591-3700 www.sccsc.edu Counties served: Cherokee, Spartanburg and Union 2009-2010 enrollment: 8,293 Spartanburg Community College is a comprehensive, public, two-year institution of higher education in South Carolina. Para Jones is currently serving as president. Technical College of the Lowcountry 921 Ribaut Road Beaufort, SC 29901 1-800-768-8252 www.tcl.edu Counties served: Beaufort, Colleton, Hampton and Jasper 2009-2010 enrollment: 3,805 Technical College of the Lowcountry is a comprehensive, public, two-year

institution of higher education in South Carolina. Thomas Leitzel is currently serving as president. Tri-County Technical College P.O. Box 587 Pendleton, SC 29670 864-646-1500 www.tctc.edu Counties Served: Anderson, Oconee and Pickens 2009-2010 enrollment: 9,212 Tri-County Technical College is a comprehensive, public, two-year institution of higher education in South Carolina. Ronnie Booth is currently serving as president. Trident Technical College P.O. Box 118067 Charleston, SC 29423 843-574-6111 or 877-349-7184 www.tridenttech.edu Counties derved: Berkeley, Charleston and Dorchester 2009-2010 enrollment: 21,617 Trident Technical College is a comprehensive, public, two-year institution of higher education in South Carolina. Mary Thornley is currently serving as president. Williamsburg Technical College 601 MLK Jr. Ave. Kingstree, SC 29556-4103 843-355-4170 or 800-768-2021 www.wiltech.edu County served: Williamsburg 2009-2010 enrollment: 1,160 Williamsburg Technical College is a comprehensive, public, two-year institution of higher education in South Carolina. Kim McGinnis is currently serving as president. York Technical College 452 South Anderson Road Rock Hill, SC 29730 803-327-8000 www.yorktech.com Counties served: Chester, Lancaster and York counties 2009-2010 enrollment: 8,858 York Technical College is a comprehensive, public, two-year institution of higher education in South Carolina. Greg Rutherford is currently serving as president.

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Earmarks ban complicates S.C. projects By Matt Tomsic, Staff Writer

hether a substantial change or a political sideshow, the president’s and Congress’ earmarks ban has uprooted a traditional way for the federal government to fund local projects, causing legislators to scramble to send federal dollars home. Earmarks were an easy target as lawmakers looked to trim the federal budget and the country’s ballooning deficit by cutting spending and pork projects, said John Simpkins, an assistant

professor of law at Charleston School of Law and an attorney with Wyche P.A. in Greenville. Simpkins focuses on comparative constitutional design and constitutional law. Since 2008, $35.5 million has been earmarked for the Port of Charleston and the Port of Georgetown, according to the Office of Management and Budget. The money funded dredging and maintenance projects, as well as Project Seahawk, a Homeland Security pilot program.

Charleston received 86% of the money. Without the traditional access to those sums of money, the ban brought the S.C. State Ports Authority’s harbor deepening project skidding to a stop. Steve Ellis, vice president of Taxpayers for Common Sense, said the ban caused some unavoidable chaos. “We are going to have to go through some growing pains as agencies start exercising those decision-making muscles that

have atrophied in the earmark world,” Ellis said. S.C. lawmakers originally wanted $400,000 for the Army Corps of Engineers to study deepening the harbor, but that figure shrank to $50,000 by April, as most of the fiscal year had passed. Rep. Jim Clyburn, D-S.C., vowed to work administratively — going directly to the corps and President Barack Obama’s administration — to get money for the study. In mid-April, Sen. Lindsey Graham, R-S.C., put holds on Senate business until Charleston Harbor was addressed. He lifted those holds April 15, citing progress made with Vice President Joe Biden and Senate leadership. On May 17, Clyburn announced that Charleston Harbor had received $150,000 from the U.S. Army Corps of Engineers’ work plan to begin the study. Graham and Rep. Tim Scott joined Clyburn on a conference call to talk with reporters about getting the federal money.

Not so black and white Simpkins said the earmark system isn’t perfect but can be fixed. Earmarks can have a positive impact by allowing members to attach items to bills, which helps their passage through By timing the tides, some of the largest ships in the world already call on the Port of Charleston. When the Panama Canal expansion opens, the demand for deeper water is expected to grow. (Photo/S.C. State Ports Authority)

A p u b l i c at i o n o f s c b i z n e w s

See EARMARKS, Page 42

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Briefs Michelin and College of Charleston partner for virtual logistics training

Photo/Ryan Wilcox

Port earnings up more than 200% CHARLESTON – Net earnings at the S.C. State Ports Authority are up more than 200% for the 2011 fiscal year compared to the same period last year, and container volume is also up by 10%. But cargo volumes are down by 3.4% for April compared with the same month last year, the agency reported. The ports authority released the statistics during its board meeting in May.

Jim Newsome, CEO and president of the ports authority, started the meeting with pictures of two ships with 8,000 20-foot equivalent units, or TEUs, working at the same time and dock, a first for the Port of Charleston. “It’s the shape of things to come,” Newsome said, adding that the 8,000-TEU ships will be the workhorses of the East Coast.

GREENVILLE – Greenville-based tire manufacturer Michelin North America is working with the College of Charleston’s School of Business to create a professional development program focused on global logistics and transportation. Eventually, the School of Business plans to turn the program that emerges from the partnership into a comprehensive logistics and professional development program open to any business, education or government entities operating or looking to operate in South Carolina or use the Port of Charleston. “It will be online,” said Kent Gourdin, Director of the Global Logistics and Transportation program in the School of Business. “Anyone can do it at their own pace and in their own office.” But for the first two years,

School of Business faculty will work with Michelin employees and affiliates in the virtual training course, which begins in January. The program will focus on four general topics: import/export documentation; the Port of Charleston and U.S. customs; regulations and pricing; and operations. Curriculum could expand over the next two years as Michelin uses the program, officials said. The School of Business already offers a non-credit intermodal transportation training course. That course will continue locally even after the school launches online training, Gourdin said. The partnership with Michelin also includes an internship program and post-graduation job placements at Michelin for College of Charleston students studying global logistics.

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PORT EARMARKS, from Page 39

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Congress. Without those local projects attached, some lawmakers may vote against legislation they would otherwise vote for. “Earmarks have been demagogued as being a classic example of government waste,” Simpkins said. “I think the issue becomes much less an absolute good versus an absolute bad.” The earmarks ban affects only 1% of the federal budget, Simpkins said, making the attack on them “largely symbolic.” “It’s a good argument to make,” Simpkins said. “But if you were to say, ‘I’m really serious about cutting the budget, let’s cut 1%,’ that doesn’t resonate as well.” Ellis contends the earmark system is broken. Earmarks skyrocketed from about 3,000 in 1996 to roughly 15,000 in 2005. Powerful lawmakers drove that increase as they secured funding for their districts.

Congressional Republicans Sen. Lindsey Graham (left) and Rep. Tim Scott make a case for port dredging funds for Charleston Harbor at the S.C. State Ports Authority office. (Photo/Leslie Burden)

“They would get most of the funding then leave crumbs for the rest of the Congress,” Ellis said. He said Taxpayers for Common Sense support the earmark ban as a bridge to bigger reforms.

“We don’t want to remove the power of the purse from Congress,” Ellis said. “We just want to have a more responsible approach.” Simpkins and Ellis have their

own ideas to change or replace the earmark system. Simpkins said that transparency would help the process and that voters should have easy access to information such as who is asking for money and what it will be used for. Ellis advocates a transparent, merit-based system driven by government agencies. He said federal agencies should decide how best to use the country’s tax money. A lawmaker from South Carolina shouldn’t determine the best way to spend Montana’s taxes, he said. “It’s not their money,” Ellis said. “Essentially, there’s sort of an erroneous assumption being made there that this money is actually supposed to go to that congressional district.” For Charleston Harbor, that could mean the Army Corps of Engineers developing metrics to determine which harbors should be deepened because of the Panama Canal expansion project,

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which will give the world’s largest ships easier access to the East Coast. Sen. Jim DeMint, R-S.C., proposed legislation for a meritbased process — instead of earmarks — that the corps could use to determine where to spend money. Taxpayers for Common Sense supports that bill, Ellis said. “The answer may be ‘Yeah, we should deepen Charleston’ or ‘maybe we shouldn’t,’ ” Ellis said. Simpkins said agencies also should look at the return on investment, an issue he thinks gets lost in the earmarks debate. “It may make a great deal of sense to spend money if you’re going to be able to multiply the return,” Simpkins said. “This kind of project with the port is one of those examples where I don’t think it’s throwing money down a hole. As many of those ships go in, we can also send them out.” Local, state, regional and federal governments could benefit

“Earmarks have been demagogued as being a classic example of government waste. I think the issue becomes much less an absolute good versus an absolute bad.” John Simpkins

assistant professor of law, Charleston Law School

by having a 50-foot-deep harbor, which will attract businesses and tax dollars through shipping companies’ customs duties. Byron Miller, spokesman for the State Ports Authority, said the port brought in more than $600 million in duties last year. Those funds go into the general treasury. Despite those proposals and DeMint’s legislation, the question remains: Where does the country go from here? Many government agencies still rely on Congress for financial direction, and no bills have

passed to shift that responsibility. Until Obama signs merit-based legislation for federal agencies, lawmakers will continue to find creative ways to get federal money, whether through Senate holds on legislation and nominees or through bypassing the legislative process altogether by asking agencies where to spend money. Either way, at the end of the ban, will constituents see substantial change to the earmarks system, or will the noise surrounding earmarks fade as politicians zero in on the next cause?

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City lawsuit to challenge memorandum with state By Ashley Fletcher Frampton, Staff Writer

orth Charleston has fired the second major shot in its ongoing legal battle against the state’s plan to route intermodal trains through the northern end of the former Navy base. Mayor Keith Summey, along with city attorney Brady Hair, announced plans May 18 to file a lawsuit against several federal and state government entities in U.S. District Court within 60 days. The lawsuit includes a variety of charges, all of which center on a memorandum of understanding that the city and the S.C. State Ports Authority signed in 2002. That memorandum, among other things, sets out parameters for rail access to a new port terminal on the former Navy base. The city claims the state is violating

Memorandum the basis of lawsuit

North Charleston attorney Brady Hair (left) and Mayor Keith Summey talk about filing a lawsuit over a memorandum of understanding. (Photo/Leslie Burden)

that agreement. North Charleston must give 60 days’ notice before filing the lawsuit based on requirements in certain federal laws under which the city is suing, Hair said.

City attorneys sent federal and state officials the required 60-day notice and a draft of the complaint that the city intends to file unless the U.S. Army Corps of Engineers takes action.

The memorandum at the center of the lawsuit was written and signed as the city and SPA were dividing up land at the former Navy base nearly 10 years ago. The city was planning a redevelopment effort on the northern end, and the SPA was planning a new port terminal on the southern end. The agreement stated that the SPA would rely on rail access to its new port terminal from only the southern end of the base. A plan that the S.C. Department of Commerce announced in December — and has since advanced through condemnation of land — would route intermodal trains through the southern and northern ends of the base. Commerce officials have said

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“The state has to know that we’re not playing. We’re serious about how we feel. We’re not backing away because they’re the state of South Carolina.” Mayor Keith Summey North Charleston

an arm of the state, not a separate City officials have promised entity, and that state lawmakers for months that they would file directed the SPA and city to enter the second lawsuit. Meanwhile, into the memorandum in 2002. state officials, including Gov. Nikki Haley and Commerce Secretary Bobby Hitt, have said that Lawsuit announced compromise talks with the city amid negotiations North Charleston has already and other players were under way. Summey said the decision to filed one lawsuit against the Commerce Department over the rail move forward with the lawsuit came because “the state has not issue. In January, the city challenged been forthcoming” in efforts to the state’s condemnation of city find a resolution. He declined to property on the base. That law- discuss specifics about comprosuit was filed early on because of mise talks. “The state has to know that statutory deadlines, city attorneys we’re not playing,” Summey said. have said.

“We’re serious about how we feel. We’re not backing away because they’re the state of South Carolina.” Hitt responded in a statement: “It’s unfortunate Mayor Summey has announced he will pursue litigation rather than continue negotiations to provide dual access for both CSX and Norfolk Southern to the new proposed intermodal container transfer facility (ICTF). It is imperative that both Class I railroads have equal access with a balanced approach to the ICTF to help ensure the success and competitiveness of our port facilities.” Summey said a compromise is still possible outside of court; but, he said, “I can assure you this time the resolution will not be an MOU.” Filing the lawsuit in federal court is appropriate because of the federal laws and regulations involved, Hair said. In addition, federal court is a better forum to ensure that all parties — many of them state entities — have a fair hearing, he said.

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that is the only way to ensure equal competition between Norfolk Southern and CSX, the two Class I rail lines serving the Port of Charleston. City officials say the plan violates the memorandum of understanding and therefore the SPA’s permit for the terminal from the U.S. Army Corps of Engineers. The memorandum was incorporated into the environmental impact portion of the permit. Citing the Clean Water Act and National Environmental Policy Act, the city argues that the U.S. Army Corps of Engineers must re-evaluate its permit for the new port terminal based on the state rail plan. The city also is seeking the court’s enforcement of the memorandum of understanding. Commerce Department officials have said they are not bound by the city’s memorandum with the SPA, a separate state entity. Summey and other city leaders have argued that the SPA is

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Weighing in on the rail debate Roy Metal Finishing Co.

SCBIZ asked business owners located close to the proposed rail yard, and those who rely on the port and rail to deliver goods and services to their customers, to give their perspective on the issues surrounding the debate over rail. Each offered insight into how the outcome will affect their business, as well as others in the state.

While Roy Metal Finishing Co. Inc. has no direct interaction with the Port of Charleston, it depends on customers’ ability to ship freight around the world, said company President John Pazdan. The Greenville company applies metal coatings for the global automotive market. Its customers are first-, secondand third-tier suppliers to original equipment manufacturers. Dual-access rail to the new port facility in North Charleston is necessary to maintain a competitive port and keep business in South Carolina, Pazdan said. “I know our customers are trying to figure out whether to make things here or make things somewhere else,” he said. “If they can’t be competitive in getting it in and out of the port here, they’re going to make things somewhere else.”

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ADEX Machining Technologies

Greenville-based ADEX Machining Technologies sees the Port of Charleston as a gateway to new opportunities. The company doesn’t ship overseas directly, but its machined structural components for jet engines, industrial gas turbines and other products ultimately make it around the world. “If you are a manufacturer in South Carolina, even a small one, you are part of a global community, and that global community depends on a modernized port,” said ADEX co-owner Jason Premo. ADEX has become a certified supplier to Boeing Co. and is competing for contracts, Premo said. ADEX expects similar opportunities from companies that haven’t even located in South Carolina yet, he said, but any company looking at doing business in South Carolina will expect a strong logistics infrastructure. “Companies like Boeing are going to rely on that transportation,” Premo said. The port is “a major entry into not just the state but the whole region. That is a big incentive for companies to locate here or somewhere close to here.”

Parham & Co.

Four years ago, Ashley Parham Aytore and Batu Aytore opened Parham & Co., an antiques store, on King Street in downtown Charleston. In late 2010, the husband-and-wife team made plans to expand their business by purchasing a 3,700-square-foot home on the former Navy base. The sweeping structure, with a wraparound front porch, hardwood floors and a red roof, was built in 1917 and housed medical officers when the Navy base was operational. The house needed plenty of work, but the Aytores envisioned it as storage space for the overflow of furniture that supplies their downtown store and as a venue where designers could come to view antiques fresh off of containerThis 1917 home on the former Navy base ships from Europe. They also in North Charleston serves as a weekend planned to use a private portion getaway and storage space for an antiques in the back as a quiet weekend business. getaway spot with space to work on art projects. One month after the Aytores closed on the house, the S.C. Department of Commerce announced its rail plan, which would lay new train tracks just behind the structure and across the road leading to it. â&#x20AC;&#x153;We were kind of blindsided,â&#x20AC;? Batu Aytore said. But they moved ahead with renovations, saying they canâ&#x20AC;&#x2122;t wait around to see how it plays out. The couple remain concerned about how their vision for the house will be affected if the proposed train track is built nearby. â&#x20AC;&#x153;We invested into the future potential of this community,â&#x20AC;? not just one house, Batu Aytore said.

PeopleMatter

In 2009, Nate DaPore founded PeopleMatter, a company that provides software that helps service-sector businesses manage hiring, training, scheduling and other human resources needs. In anticipation of growth, DaPore moved the company from temporary startup space to a building in the heart of the Navy Yard. PeopleMatter began with four people and now has 45 employees. DaPore plans to expand to 100 by the yearâ&#x20AC;&#x2122;s end, some of them working in a new satellite office in San Francisco. â&#x20AC;&#x153;This reminds me of the South of Market District in San Francisco, which was a bunch of dilapidated warehouses and a very unsightly area 15 years ago,â&#x20AC;? DaPore said of the Navy Yard. â&#x20AC;&#x153;And now itâ&#x20AC;&#x2122;s a vibrant, hip area where Twitter and some of the other big technology companies are headquartered, with lofts and food and just a wonderful vibrant area right around the new baseball stadium down there.â&#x20AC;? Under the Commerce Departmentâ&#x20AC;&#x2122;s rail plan, large intermodal trains would run through the redeveloping area and near PeopleMatterâ&#x20AC;&#x2122;s home. DaPore said if redevelopment continues as planned, the Navy Yard could become a catalyst for the Charleston area. He is committed to the cityâ&#x20AC;&#x2122;s vision for the area, and while he isnâ&#x20AC;&#x2122;t publicly taking a position on the rail plan debate, he said he hopes for a â&#x20AC;&#x153;peaceful resolution.â&#x20AC;? â&#x20AC;&#x153;I just want them to get it resolved and let us all continue to move on and be able to have a good quality of life up here and continue to grow,â&#x20AC;? he said.

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