2012 SC Biz 3

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Fall 2012

Small town, big dreams 73 children in Clio were promised their college tuition would be paid.

Here’s what happened.

Social litigation S.C. law firm a leader in BP oil spill settlement

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Every year SC Works helps thousands of South Carolina job seekers and businesses move forward.

Helping Businesses Succeed

SC Works offers businesses cost-effective, convenient access to thousands of job seekers, plus candidate screening, job fairs, and SC Works is South Carolina’s largest and most other recruiting services. SC Works offers comprehensive labor exchange system, and valuable labor market information, and tips is part of the national one-stop initiative that on how to qualify for grants and tax credits. was established to enhance the productivity There are even onsite facilities for recruitment, and competitiveness of our nation’s economy. training and testing.

The SC Works centers serve both businesses and job seekers. Any business needing workforce support and any person seeking a job can use the centers and online services. The SC Works centers are the most valuable and cost-effective contact point for businesses looking for the right people, and people seeking the right job or career. It is the one place to go to find work and workers.

Connecting Good People with Good Jobs Job seekers who may be considering a change in employment or developing a plan for their career can benefit from the resources and services available at their local SC Works center. These centers are a source for information, referrals, placement assistance and other services. Visit scworks.org to find the SC Works center nearest you.

Table of

Contents COVER STORY 18

Determining Dreams:

Clio’s kids grow up with promise of college, but for some, other paths are better.

Cover Photo: Tiy Peterkin, a member of Clio’s I Have a Dream program, receives her diploma during Marlboro County High School’s graduation. (Photo/Matt Tomsic)

FeatureS

Special section: Cities mean business Public spaces make beautiful gathering places

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Tech Education

social litigation

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Schools, colleges adjusting to meet needs of workforce

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Charleston-based law firm leads negotiations on BP oil spill settlement

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Special section: Graduates take on state’s needs

Departments 4 Bill Settlemyer’s Viewpoint

8 Spotlight: Spartanburg County 48 1,000 words

5 Upfront

36 S.C. Delivers

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CEO and Publisher | Grady Johnson gjohnson@scbiznews.com

From the

Vice President of Sales | Steve Fields sfields@scbiznews.com

PUBLISHER

Accounting Department | Vickie Deadmon vdeadmon@scbiznews.com Managing Editor | Andy Owens aowens@scbiznews.com Senior Copy Editor | Beverly Barfield bbarfield@scbiznews.com Special Projects Editor | Licia Jackson ljackson@scbiznews.com Staff Writer | Chuck Crumbo ccrumbo@scbiznews.com Staff Writer | James T. Hammond jhammond@scbiznews.com Staff Writer | Matt Tomsic mtomsic@scbiznews.com Staff Photographer | Leslie Burden lburden@scbiznews.com Contributing Writer | Harriet McLeod Creative Director | Ryan Wilcox production1@scbiznews.com Senior Graphic Designer | Jane Mattingly production2@scbiznews.com Graphic Designer | Jean Piot production3@scbiznews.com Director of Business Development | Mark Wright mwright@scbiznews.com Account Executive | Bennett Parks bparks@scbiznews.com Circulation and Event Manager | Kathy Allen kallen@scbiznews.com Circulation, Event and Business Coordinator Kim McManus kmcmanus@scbiznews.com The entire contents of this publication are c­ opyright by SC Business Publications LLC with all rights reserved.

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Corporate & Commercial Publishing Division

Welcome to the fall issue of SCBIZ. Since we serve the state’s business community with our biweekly newspapers, the Charleston Regional Business Journal, the Columbia Regional Business Report, GSA Business, and daily email news alerts from each of them, we use SCBIZ each quarter to take a more thoughtful and analytical look at some of the biggest stories impacting the state’s economic landscape.

We put emphasis on our mission of being South Carolina’s media engine for economic growth by bringing you special sections from some of the state’s most important economic development organizations. In this issue we feature the Municipal Association of South Carolina with their section, Cities Mean Business.

It’s easy to take your city or town and the services it supplies for granted. Have you ever put a call in to your town administrator, police or sanitation department and just said thank you?

I know I haven’t, but I probably should. Operating a municipality is a complex task and our state is blessed to have a strong and well-organized association to provide support for all those people I feel guilty about not thanking. So thank you, MASC. That provides a good segue into our county spotlight on Spartanburg County. I’m in the Upstate quite a bit, working out of our GSA Business office, and it is always impressive to see the dynamic growth in and around Spartanburg. The city has Grady Johnson is embarked on steps to spur economic growth and redevelopthe CEO and Group ment by encouraging higher education facilities to locate downPublisher of SCBIZ town. Nothing ramps up a downtown better than an influx of News which publishes smart young people. Of course, you can’t mention Spartanburg SC Biz magazine, County without talking about BMW. Even though we have al- Charleston Regional ready used a couple of barrels of ink over the years covering the Business Journal, automaker’s impact on South Carolina, it bears saying that the Columbia Regional introduction of the new X4 model will likely fuel even more Business Report and growth. So, to be safe, I’m placing an order for more ink.

GSA Business.

Because we are so deeply involved in economic development issues, I attend a lot of meetings across the state. Just about every one eventually comes around to the topic of education. Want to grow the manufacturing sector? We need a better educated workforce. A lot of people are working hard to make the changes needed, and news of their efforts sometimes gets lost. So I encourage you to read of the impact one person has had in Marlboro County on the lives of a recently graduated high school class. It provides a clear picture of the challenges we face and isn’t the typical “feel good” story with the requisite happy ending. Or is it a happy ending? You decide.

Enjoy.

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A portfolio company of Virginia Capital Partners LLC Frederick L. Russell Jr., Chairman

Dear Reader,

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Bill Settlemyer’s

Viewpoint Hitting the ‘Hot Spot’ in Health Care

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recent Power Breakfast event hosted by the Charleston Regional Business Journal brought together four health care experts to discuss the current state of health care in South Carolina and the country.

Participants included Charleston area hospital system executives David Dunlap, CEO of Roper St. Francis Healthcare; Todd Gallati, CEO of Trident Health; Jim Deyling, president of BlueCross BlueShield of S.C.; and Tony Keck, South Carolina Health and Human Services director.

Believe it or not, there was some very good news from the private sector side regarding health care costs and the quality of health care. Hospital systems are beginning to respond to market forces with a serious and continuing focus on the quality and cost of health care delivery.

A new collaborative model of health care is emerging, one that emphasizes teamwork among doctors, nurses and hospital staffs to achieve better outcomes. As health care systems across the country are learning, it’s possible to control costs and increase the quality of care at the same time. By delivering the right care at the right time for each patient, and by reducing unnecessary care (such as too many MRIs), it’s possible to get better outcomes at lower costs.

There’s a recognition that the traditional “fee-for-service” insurance reimbursement system has to change to one more focused

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on getting and keeping patients healthy rather than maximizing revenue by doing as many procedures as possible. For medical providers and the insurance industry, the challenge is to begin this transition without putting providers in a financial bind.

Despite all these encouraging developments, the challenges are huge. HHS Director Tony Keck has deep experience in the health care field, and along with Gov. Nikki Haley he is an advocate for more freedom at the state level to use Medicaid funds in a way that targets the small percentage of patients that generate the lion’s share of Medicaid’s health care expenses. During the panel discussion, Mr. Keck mentioned his interest in the newly emerging “hot spot” approach to managing costs.

The hot spot concept is this: With the proper community and patient data, you can identify and target chronically ill patients for special attention from multidisciplinary teams of doctors, nurses, social workers and “health coaches” who continually work with these patients to keep them as healthy as possible and out of the hospital.

Mr. Keck also mentioned the downside of South Carolina’s unhealthy lifestyles. He said Boeing officials have expressed concern about how expensive it is to cover their South Carolina employees compared to those in Washington State. In other words, this is not just a health issue; it’s also an economic development issue.

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Early last year, physician Atul Gawande, who is a Harvard professor and expert on health care policy, published a lengthy article on the success of the hot spot strategy for controlling health care costs.

Interestingly, one hot spot effort involves an Atlantic City, N.J., hospital and a casino workers health program. This effort was supported by the work of another Harvard health expert, Rushika Fernandopulle. And guess what? Fernandopulle has also helped Boeing develop a pilot program along the same lines for its workers in the Seattle area, with positive results.

Wake up! Does anybody besides me see any connecting threads here? Boeing – economic development – excessive health care costs of South Carolina employees – application of the hot spot concept to contain costs and improve outcomes – Tony Keck’s interest in applying the hot spot concept to Medicaid patients in South Carolina?

These days, our broken politics and lack of interest in working collaboratively to find real world solutions to serious problems threaten to wreck our economy and decimate the American middle class. Health care is one of our biggest challenges. The answers are out there, but only if we have open minds and listen to each other.

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.

UPFRONT

regional news | data

Thomas Creek’s brews flowing in Sweden

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wedish beer-drinkers are enjoying a taste of South Carolina as Thomas Creek Brewery has begun exporting its ales to them. “They contacted us,” says Bill Davis, owner and general manager of the Upstate brewery.

Thomas Creek has been sending Sweden about half a shipping container of its microbrews every three months for about a year and a half. So River Falls Red Ale, Appalachian Amber Ale and Up the Creek Extreme IPA may roll off the tongue in at least some Swedish drinking establishments.

“We get some Swedish visitors who have had it over there,” Davis said of the brewery’s beers. The whole project was enough to win an Export Achievement Award, given to Thomas Creek by the U.S. Commercial Service in June. USCS is the export office of the U.S. Department of Commerce.

FAST FACTS | GRADUATION IN S.C.

63%

78%

2003, highest rate in past 10 years

2010 72.1% 2011 73.6%

College education rate, 2009 Percentage of the population 25 and older with bachelor’s degree or higher

24.3% South Carolina

27.8% United States

Cover Story

Page 18

Sources: S.C. Commission on Higher Education, S.C. Department of Education, U.S. Census

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percentage of all jobs expected to require postsecondary training by 2018

High school graduation rate

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Upfront

Book Review: WomenPreneurs

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What’s a WINGSPAN? In some quarters it may refer to birds or a champion swimmer, but in Greenville and Spartanburg, it’s the new brand for the airport’s Terminal Improvement Program. The brand encompasses the website, blog and social media platforms providing information about the $115 million, 48-month renovations to the Greenville-Spartanburg International Airport. The website, www.elevatingtheupstate.com, explains the key aspects of improvements and also serves as an information hub for travelers.

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Women are making names for themselves as entrepreneurs, whether intentionally or out of frustration with the corporate world, writes Dorothy Perrin Moore, an emeritus professor of business administration at The Citadel, in WomenPreneurs: 21st Century Success Strategies.

Moore, who was the first female to teach full-time at The Citadel, brings together 30 years of research and 357 interviews with women entrepreneurs. Women have natural abilities as entrepreneurs, and their blossoming educational opportunities are giving them the business preparation needed to follow through on those goals with success, Moore has found in her research.

Being a natural entrepreneur depends on an individual’s level of self efficacy, degree of comfort in taking risks and other factors,

Moore said. Family financial and emotional support are helpful.

“It all boils down to the level of creativity, careful planning and an ‘I can do’ attitude,” she said.

A bonus adding variety as well as enlightenment on how others have solved problems is the 19 profiles of individual women, appearing with related topics throughout the book. Four of the profiles are of Charleston women: Jennet Robinson Alterman, executive director of the Center for Women; Nikki Hardin, founder and publisher of Skirt! Magazine; Judith V. Moore, founder and CEO of Charleston Cookie Co. LLC; and Anita Zucker, chairman and CEO, The InterTech Group.

The book, 254 pages, is published by Routledge and can be ordered through Amazon, Barnes and Noble or Booksamillion.

Coming with your next issue of SC BIZ: RecyclonomicsSC, a magazine of the South Carolina Recycling Council.

800

Estimated total economic impact of the recycling industry in South Carolina in 2011

Number of jobs announced in South Carolina’s recycling industry in 2011

$333M

Capital investment in the state’s recycling industry in 2011

If South Carolina recycled just 10% more solid waste per year, the potential economic impact would equal more than 1,512 new jobs + more than $71 million annual personal income + $3.3 million annual state tax revenue.

UPFRONT

$11 billion

RecyclonomicsSC

Source: Southeast Recycling Development Council study

NEW ECONOMIC DEVELOPMENT Announcements made since June 11, 2012 Company

Investment Jobs

Polydeck Screen Corp......................... $7M..........32 Morgan Olson LLC................................. $1M.........119 BauschLinnemann North America...................................... $8M..........55 Red Ventures...........................................n/a.... 1,000 A.I.D. Company.....................................$7 M..........75 Mercom Corporation............................ $1 M......... 30 Chester Wood Products....................$10 M......... 20 ACE Bakery LLC...............................$18.4 M...........51 Gonvarri Steel Services.................... $35 M......... 40 (additional $15 M and 25 jobs over the next 10 years)

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McCall Farms Inc............................$10.6 M ........ 80

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Keller USA Inc................................... $2.5 M......... 20

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Lollis Metals Inc.................................. $3 M..........25

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Tobul Accumulator.............................. $5 M......... 50

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AVX......................................................$14 M....... 279 Boral Stone Products.......................... $6 M............3 Porterâ&#x20AC;&#x2122;s Fabrications....................... $2.5 M......... 60 PyroTec Inc........................................$10 M..........75

Britax Child Safety Inc......................$26 M....... 243 Encore Container .............................$3.9 M......... 89 CEL Chemical & Supplies.......... $900,000...........15 Source: S.C. Department of Commerce

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Cummins Turbo Technologies.......$19.5 M..........76

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county spotlight

spartanburg

Photo/Spartanburg CVB

A Place to grow

Spartanburg County attracts major industry and helps it thrive

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ith a climate good for businesses and the people who work for them, itâ&#x20AC;&#x2122;s no wonder Spartanburg County has an exceptional track record in attracting and retaining industry. The county is home to advanced manufacturing companies such as automotive, plastics, chemicals and energy, as well as distribution centers and professional services. The Spartanburg Economic Futures Group (EFG), an affiliate of the Spartanburg Area Chamber of Commerce, plays a major role in facilitating the recruitment and retention of such industry.

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County Spotlight: spartanburg

million vehicles have prepared our team well to meet the new opportunities that lie ahead for our plant. We look forward to a new model with great anticipation. For nearly 20 years, this team has always proven their steadfast commitment to producing quality vehicles for our customers around the world.”

Accessibility Leads To Growth

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BMW Manufacturing Co.’s investment in Spartanburg totals nearly $6 billion.

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“The EFG is a private/public partnership focused on developing industry within Spartanburg County,” explained Russ Weber, president of Integral Solutions and chairperson of the Spartanburg Economic Futures Group. “We work with all stakeholders to ensure Spartanburg offers the best climate for business attraction and growth. These efforts not only provide real value to the businesses involved, but translate into substantial return on investment to our community by driving capital investment, creating jobs, and raising the standard of living for our citizens.”

Along with and in part due to this continued business growth, the population of Spartanburg County has grown at a steady rate, increasing 12% from 2000 to 2010. An even better indicator of positive growth for the community, companies continue to relocate and/or expand within Spartanburg – as evident in a total of $1.5 billion invested and 4,600 jobs created over the last Special Advertising Section

3.5 years.

Spartanburg has worked hard to develop and maintain a business climate that not only attracts businesses but also allows them to thrive through expansion. One of the best examples of this is BMW Manufacturing Co., which originally invested $300 million in Spartanburg County in its first full manufacturing plant outside Germany. BMW’s manufacturing facility, known as “Plant Spartanburg,” is now the largest exporter of vehicles by value in America. An expansion project of nearly $900 million and 300 new jobs was recently announced to support the growing demand for existing models X3, X5, and X6 as well as preparing for future production of the BMW X4. With this expansion included, BMW’s total announced investment in Spartanburg adds up to nearly $6 billion.

President of BMW Manufacturing Josef Kerscher commented on the history and the anticipated expansion, saying, “Two

Spartanburg County is well positioned in the Upstate of South Carolina at the crossroads of Interstates 85 and 26. These two major Southeast arteries provide north/ south access between Charlotte, N.C., and Atlanta, Ga., and west/east access from Kingsport, Tenn., to Charleston, S.C. With the combination of an international airport, trucking, and rail access to the ports of Charleston and Savannah, Spartanburg is a prime location for businesses with core capabilities reliant on the distribution of goods.

The South Carolina Port Authority (SCPA) recently announced plans to develop an “inland port” in Greer, located within Spartanburg County. SCPA owns and operates public seaport facilities in Charleston and Georgetown, handling international commerce valued at more than $58 billion annually. The $23.5 million, 40-acre project will be completed within 18 months. In partnership with Norfolk Southern, the rail yard will provide a connection directly to the port, thus extending the port’s reach more than 200 miles – providing an alternative to trucking containers with an overnight train service from the port’s docks to and from the rail yard. Several regional port users are indicating significant interest in using the inland port immediately upon completion.

“The I-26 corridor is a critical transportation artery in the Southeast. The development of this facility has the potential, in time, to improve the movement of freight in this corridor by converting 50,000 all-truck container moves to more efficient multimodal moves between the interior and the port. We see it as a game-changer for the port and the state of South Carolina,” said Jim Newsome, president and CEO of the South Carolina Port Authority. “The I-85 corridor, centered on the Greenville/Spar-

County Spotlight: spartanburg

tanburg area, is projected to be the fastestgrowing part of the Southeast over the next 20 years. This facility will be a further catalyst to the development of an enhanced distribution hub in this area.”

Positioned close to the anticipated inland port, the Greenville-Spartanburg International Airport (GSP) boasts an 11,001-foot runway and is currently undergoing a $115 million terminal improvement program.

With full understanding of its ability to provide economic impact to the local community, GSP recently embarked on a Land Use Planning & Development Study of the 3,500 acres of land surrounding the airport.

Of these 3,500 acres, 2,000 acres are being considered for aviation and non-aviation development, the majority of which lies within Spartanburg County. The land use study will determine the appropriate use of acreage for industrial, distribution, commercial and other uses. Highly unique to airports across the country, GSP is one of few airports having land available for large-scale development providing runway, railroad and interstate access.

“The GSP District is aware of its impact

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From antique shopping and downtown dining to cheering on the Fighting Wolverines at local school athletic events, the town of Woodruff has something for everyone! www.cityofwoodruff.com

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County Spotlight: spartanburg

With the combination of the Greenville-Spartanburg International Airport, trucking, and rail access to the port of Charleston, Spartanburg is a prime location for businesses. (Photos/Norfolk Southern Railroad, GSP, and SC Ports Authority)

from an aviation perspective and role in land use development, both of which have a tremendous impact on our community’s ability to attract and retain industry and thus continue to provide economic impact,” remarked Dave Edwards, president and CEO of Greenville-Spartanburg International Airport. “We look forward to identifying the best use of this valuable asset while maintaining exceptional aviation services to our customers and community.”

A Wealth Of Resources

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In addition to Spartanburg County’s logistical advantages, it offers a wealth of resources to businesses including a workforce supported by proactive training programs, low-cost utilities, and a stable political landscape. All allies involved, from education entities and utility companies to political leaders, understand the important role they play as stakeholders in the community’s success and therefore have a strong and consistent history of being exceedingly business-friendly.

“Our record demonstrates that our county council is one of the most probusiness councils in the Southeast,” stated David Britt, councilman and chairman of the Economic Recruitment & Development committee of the Spartanburg County Council, and EFG board member. “We as a county are fortunate to have a network of utilities, infrastructure, and private/public partnerships that are able to come together quickly and efficiently to deliver the needed structure and support to businesses. Supporting business has a ripple effect that

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Special Advertising Section

permeates the entire community; we know our efforts are for the betterment of our community and citizens.”

A qualified and trained workforce is critical to a business’s success. Access to the right number of employees, at the right time, with the right skill sets will always be a key factor for a successful business launch or expansion. With new technologies and continued emphasis on quality, many of today’s jobs require production personnel with skill-sets above a traditional high school education with a comprehension of basic math skills and ability to work with computers. For example, while more automation may reduce the number of machine operators on production floors, it increases the demand for tooling specialists and mechatronics-based technicians.

This trend has been addressed with the help of Spartanburg’s proactive educational system. For years, Spartanburg County schools have anticipated industry trends in technology and provided appropriate curriculum to respond to these needs. Technical-based curriculums are now available to high school students such as the addition of mechatronics as a course option. Our higher education entities are also providing needed technical support and training. An example of such can be found in the outstanding mechatronics program at Spartanburg Community College.

“We are proud to sponsor a mechatronics apprenticeship program in cooperation with the Spartanburg Community College,” said Warren Snead, Human Resources manager of Cooper Standard Automotive.

developed by Johnson Development Associates, Inc. The distribution center resides on a 100-acre site and was substantially completed in a mere seven months. Spartanburg’s ability to fast track the development helped secure the $50 million Amazon investment that will create 375 jobs.

County Spotlight: spartanburg

A Welcoming Community The best proof of how welcoming and pro-business Spartanburg County is for industry is the list of companies who have made the decision that Spartanburg is the best place to build, relocate, or expand.

What may be surprising is the sheer number of international companies who have made Spartanburg their home.

Beyond logistics and infrastructure, quality of life is an important component in the decision a business makes in establishing a presence within a community. With rich cultural offerings, extensive educational opportunities, active citizen engagement, and stunning landscapes, Spartanburg is a robust and vibrant community that continues to innovate and thrive.

A community gem, the 86,000-squarefoot Chapman Cultural Center welcomes more than 200,000 visitors a year to discover, experience, and celebrate the performing and visual arts, science, and history. An active community, Spartanburg has received the designation “Bicycle Friendly Community” for four straight years and the City of Spartanburg’s B-Cycle bike sharing stations are the first of their kind in the Southeast. It is truly a great place to work and live.

Spartanburg is an established community that provides exceptional support and offerings to both its corporate and private citizens. Through its ideal placement within the state of South Carolina and the Southeast, the investment that has been and continues to be made in infrastructure and human resources, along with an exceptional quality of life, Spartanburg is positioned for continued growth that will reap untold benefits to all.

“Through our ability to be responsive to industry needs and proactive in anticipating future opportunities, we continue to leverage our county’s assets in order to make doing business in Spartanburg a profitable venture. With a company’s success comes

our own, and that can best be summed up in the last 3.5 years in which we have averaged the creation of 25.3 jobs and the investment of $8,155,929 per week,” explained Russ Weber, chairperson of EFG. “We invite you to get to know Spartanburg County further and discover how our community can be the catalyst in your business’s success.”

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“Classes are well equipped and the instructors, most with years of industry experience, have produced technicians well prepared to meet our needs. As Cooper Standard continues to grow, we increase the number of apprentices accordingly to proactively address future requirements.”

Cooper Standard also realized a powerful resource available to new or expanding businesses in the readySC™ program. “With the help of readySC™, our Spartanburg plant was able to recruit, hire, and train 60 new employees with job specific skills,” remarked Snead. “readySC™ developed the lesson plans, training aids, and provided classroom instruction at the Spartanburg Community College. Instructors actually used our products, gauges, and packaging in classes. These new employees were already familiar with work instructions and products on the first day at work. It was an incredible success for Cooper Standard.”

To be prepared for the speed of business, Spartanburg focuses heavily on its infrastructure system. One critical piece of such infrastructure is the Spartanburg Community College Tyger River Campus. At 363,000 square feet, the Tyger River Campus is not only utilized as a branch campus, but also houses The Center for Business and Entrepreneurial Development. The differentiator of this facility is that unlike many incubators or soft-landing facilities, the Tyger River Campus is an industrial facility that accommodates and supports manufacturing start-ups and expansions. It also provides companies with space for production training of their workforce. Dish Network, adidas Group, BMW, Lear, Timken and Walmart have all utilized the facility.

Two new welcome additions to Spartanburg County’s infrastructure system are S.C. Department of Commerce Certified Industrial Sites in Cullum Interest’s 131acre Velocity Park and Pacolet Milliken’s 1,300-acre Tyger River Industrial Site. By completing the site certification process, the landowners have positioned Spartanburg well for recruitment of Class A industrial projects that seek locations providing a fast track development timeline and thus mitigate the company’s risk.

One such recent success is the 1 millionsquare-foot Amazon.com facility being

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workforce training

Filling the gap Schools, colleges adjusting to meet needs of workforce

By James T. Hammond, Staff Writer

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hen Total Comfort Solutions began having problems recruiting HVAC repair and maintenance technicians, CEO Jim Reynolds took a service technician to a high school algebra class to explain how math is used to diagnose and repair air conditioning systems in critical care facilities like hospitals.

The results of showing those students how science and math work in real life exceeded Reynolds’ expectations.

Through an ongoing partnership with the local school district, students began to emerge from high school with an interest in the well-paying technical jobs at his company. Reynolds said he has not had difficulty recruiting qualified young people for his company, with locations across South Carolina, since initiating that program.

But such mutually beneficial partnerships between schools and employers remain elusive for many people who need jobs and for many employers who need qualified people to fill vacancies.

Sonny White, president of Midlands Technical College, sounds almost evangelical when he talks about the mismatch

Above: CU-ICAR campus. (Photo/Kevin Greene) Inset: Students work on a project at ICAR. (Photo/Clemson)

Cedric Brown was hired as a co-op student by Total Comfort Solutions during his senior year of high school.

Brown then entered Midlands Tech with Total Comfort’s tuition assistance program. (Photo/ Supplied)

between education and workforce needs.

He’ll tell you about the need for specialized welders in the nuclear reactor construction industry, jobs that can pay six-figure salaries. And he’ll also tell you how hard it is to persuade young people today that they should be interested in such jobs.

Add in the fact that young people emerging from the nation’s high schools too often do not have the basic skills nor the desire to work in an industrial setting. Frequently, even those who graduate high school – as much as 40% of the total in South Carolina – require remedial training in the high-level high school courses before they can begin studies leading to a job or profession at a

two-year technical college or a four-year university.

Midlands Tech’s president has set himself upon a mission to persuade high school students and their parents that they should give these technical jobs another look.

White said reaching the parents is particularly important, because they set the tone for family discussions about careers, jobs and earning a living.

White has focused his institution’s efforts on what he has labeled the “middle skills” jobs, which typically require education beyond a high school degree, but not necessarily a four-year college degree.

One of the challenges cited by White is that of changing the image of the people who keep South Carolina’s manufacturing plants humming. The manufacturers offer starting salaries of $40,000 a year for these key people in their plants. But they often have difficulty recruiting people to take the jobs. White said some manufacturers have even resorted to offering signing bonuses for such workers.

White aims to change the image of these prized skilled employees in South Carolina’s manufacturing sector.

workforce training

“It’s hard for us to sell to a student or parents a future as an industrial maintenance technician,” White said. “We’ve begun calling them automation engineering technicians.”

“We’re talking to school superintendents.

We still have to get to the teachers, the career counselors, students and their parents,” White said.

Reynolds says his interaction with public schools suggests attitudes are changing.

“In South Carolina, education leaders and policy makers have clearly gotten the message,” said Reynolds, who is co-chair of the New Carolina Education and Workforce Development Task Force. Reynolds cites as evidence of a changing attitude: • In K-12, all high school students now have Individual Graduation Plans and have chosen a cluster of study tied to career goals. Of the 16 career cluster options, Science, Technology, Engineering and Math is No. 3 in popularity. Through the 12 Regional Education Centers, businesses now are actively engaged with schools and students helping them understand the knowledge

“It’s hard for us to sell to a student or parents a future as an industrial maintenance technician.

We’ve begun calling them automation engineering technicians.”

Sonny White

president, Midlands Technical College

Photo/Jeff Blake

and skill requirements of 21st century jobs; 127,000 students job- shadowed last year. South Carolina’s graduation rate has risen to 74% — almost at the national average — a­ nd students are entering college and the workforce with career goals.

•

The technical colleges listen closely to their business customers about jobs that are growing and the skills that are needed. The Quick Jobs program retrains adult workers in intensive 3-6 month courses to fill See WORKFORCE, Page 17

Quality, Affordability and Convenience

Trident Technical College Education Now Online Programs and courses include: • Associate in Arts (transfer program) • Business Technology Administrative Office Technology Accounting, Business Information Systems Network Systems Management

• Criminal Justice • And more

TTCOnlineCollege.com

success starts anywhere

www.scbizmag.com

Complete your degree online!

ONLINE college

15

workforce training

S.C. Technical College System Mission: The South Carolina Technical College System provides learning opportunities that promote the economic and human resource development of the state.

Aiken Technical College Serving: Aiken County www.atc.edu

Greenville Technical College Serving: Greenville County www.gvltec.edu

Central Carolina Technical College Serving: Clarendon, Kershaw, Lee and Sumter counties www.cctech.edu

Horry-Georgetown Technical College Serving: Georgetown and Horry counties www.hgtc.edu

Denmark Technical College Serving: Allendale, Bamberg and Barnwell counties www.denmarktech.edu Florence-Darlington Technical College Serving: Darlington, Florence and Marion counties www.fdtc.edu

Midlands Technical College Serving: Fairfield, Lexington and Richland counties www.midlandstech.edu Northeastern Technical College Serving: Chesterfield, Dillon and Marlboro counties www.netc.edu

Orangeburg-Calhoun Technical College Serving: Calhoun and Orangeburg counties www.octech.edu Piedmont Technical College Serving: Abbeville, Edgefield, Greenwood, Laurens, McCormick and Newberry counties www.ptc.edu Spartanburg Community College Serving: Cherokee, Spartanburg and Union counties www.sccsc.edu Technical College of the Lowcountry Serving: Beaufort, Colleton, Hampton and Jasper counties www.tcl.edu Tri-County Technical College Serving: Anderson, Oconee and Pickens counties www.tctc.edu Trident Technical College Serving: Berkeley, Charleston and Dorchester counties www.tridenttech.edu

www.scbizmag.com

Williamsburg Technical College Serving: Williamsburg county www.wiltech.edu

16

York Technical College Serving: Chester, Lancaster and York counties www.yorktech.com Source: S.C. Technical College System

WORKFORCE, from page 15

times more difficult in the liberal arts than in professional fields. But I think we do have our ear to the ground.”

Amiridis said that one of the biggest challenges in higher education today is teaching students the life skills they need to succeed after they exit college.

“The student who enters college today is different than 30 years ago when I entered college,” Amiridis said. “They are more technically savvy. But I think they are less life savvy. Parents have protected them from the risks of life. College is to some extent the safe place for these kids to grow up.”

workforce training www.scbizmag.com

high need jobs — closing the gap for employers with hard to fill jobs.

There are 360 Quick Jobs courses at the 16 technical colleges across the state. Midlands Tech alone has put 17,000 adults through Quick Jobs programs in the last three years and 70% of the completers earned jobs in those hard to fill careers. Also Apprenticeship Carolina, run by the State Tech System, has increased the number of apprentices in S.C. from 777 four years ago to 3,100 today.

• Comprehensive and research universities are becoming much more attuned to the role they need to play in workforce development. Industry is giving clear direction about the knowledge and skills needed in the jobs they have to fill and the engineering and IT schools are adjusting their curricula to meet those needs.

Innovista and Clemson University’s ICAR enable close collaboration of high growth industries with researchers and college deans.

“I think South Carolina is on the right track in closing the gap between skills and jobs,” Reynolds said. “I see the colleges tailoring their curricula to the needs in their region – health care, energy, information technology, advanced manufacturing, etc. I also see a much higher level of collaboration among the colleges in using scarce resources to strategically develop programs that avoid duplication and meet the state’s needs.”

At the highest level of academic preparation, the universities also are honing in on fields of study that are in high demand. At the University of South Carolina, for example, greater emphasis is put on turning out engineers in software development, aerospace and nuclear power; doctors and nurses to staff the region’s growing health care industry; and information technology for the large and growing insurance technology sector.

“Everyone would like a worker they can plug into a particular job. That’s the job of the technical colleges,” said Michael Amiridis, provost of the University of South Carolina. “We see our responsibility to provide them for a life-long career, in addition

to preparing them for their first job.”

Nevertheless, Amiridis said the university must be responsive to the businesses and professional sectors where people are employed.

“It’s an issue in medical education,” Amiridis said. “In Greenville, for example, we are in close collaboration with the providers.”

The USC School of Medicine is the umbrella institution for the medical school that recently opened on the Greenville Hospital System campus.

“We are adjusting to working with employers,” Amiridis said. “That’s some-

17

www.scbizmag.com

DetermINING

18

Photo/Matt Tomsic

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Cl

i oâ&#x20AC;&#x2122; sk ids gr ow

up wi th pr om ise of c olle ge, bu t for some, other

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www.scbizmag.com

19

Cover story

I

n Marlboro County, a two-lane highway winds through nine miles of farmland, connecting Clio Elementary Middle School with the county’s high school.

The highway, S.C. 9, meanders by Clio Country Club and a John Deere dealership before trees surround the road, hugging its shoulders before opening to unveil acres of green farmland.

The two-lane highway continues to an intersection where Marlboro County High School’s football stadium towers over the flat land.

For one class, the highway connects two places central to their education.

More than a decade ago, a philanthropist announced plans to adopt more than 70 students at the elementary school, agreeing to pay for their education after high school.

This year, 20 students of the adopted class crossed a stage on a warm June morning and received their diplomas, completing a journey that began with a promise.

The challenges faced by these students are the challenges of education in rural South Carolina. The Dreamers’ outcomes — a graduation rate of one-third — show the difficulty faced by the community and lead to a question: How should the state prepare students for the workforce?

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‘Will it happen?’

20

Sallie Calhoun was watching 60 Minutes and saw a report on the I Have a Dream Foundation, which provides the framework for philanthropists to adopt a class of students and pay for their education beyond high school. The foundation and philanthropists spend time with the kids, track their progress and help them get the grades and test scores to reach college.

The report stuck with Calhoun until 2000, when she and her husband, who lived in California, sold their software company and decided — spontaneously, Calhoun said — to start an I Have a Dream program in Clio, S.C. “I really liked the idea of starting with a group of students who were really young and following them through the process,” Calhoun said. “The thing that struck me was, when we started, it was kind of the big dotcom bubble. There was a tremendous amount of money here in Silicon Valley, but

Students listen to speakers during Marlboro County High School’s graduation. The graduation was held on the high school’s football field. (Photos/Matt Tomsic)

there was nothing happening in places like Clio.”

Calhoun grew up in Knoxville, Tenn., and went to college in Texas before moving farther west. After she left home, her parents moved to Clio, where she has extended family. Her mother, Jean Calhoun, was Clio’s mayor, and the pair decided to co-sponsor the program, contacting school officials about what they wanted to do.

“I was very excited that she wanted to come to Clio and implement this program,” said Beverly Gurley recently. Gurley was the principal of the elementary school when the program was announced. “It validated

that she really wanted our kids in Clio to be successful. They wanted to see those kids grow.”

Gurley told Calhoun the program was the best thing that could happen in Clio during a meeting to discuss I Have a Dream.

In January 2001, the Calhouns and school officials gathered more than 50 first-graders in the cafeteria. The day was cold, crisp and clear, and Sallie Calhoun was nervous. She only knew a few people in the cafeteria from earlier meetings and conversations about the I Have a Dream program.

Some of the kids’ parents came, and Sallie Calhoun remembers confusing every-

Cover story

“Everyone just sat there and looked at us like, ‘What, huh? You have got to be kidding.’ Clearly there was a lot of: This crazy white woman, what the heck is she talking about?”

Sallie Calhoun philanthropist

one with their announcement: After you graduate from high school — more than 10 years away — we’ll help pay for your higher education.

“Everyone just sat there and looked at us like, ‘What, huh? You have got to be kidding,’” Sallie Calhoun said. “Clearly there was a lot of: This crazy white woman, what the heck is she talking about?”

One of the parents, Kathy DupreeManning, said she didn’t understand the program at first, but school officials gave more and more information, meeting with the parents and answering questions about the program and its legitimacy.

“At first, I guess like everyone else, I was like, will it last?” Dupree-Manning said.

“Will it happen? At first it was kind of surreal.”

Challenges for Dreamers, rural students

of most other I Have a Dream programs, the foundation can partner with Boys & Girls Clubs, YMCAs and other community institutions. Clio had none of those organizations.

Joe Kinney, a native and mayor of Clio, said the community offers sports after school but little else.

“It was hard to get it started partly because we didn’t realize how little other support there’d be in a rural community like Clio,” Calhoun said. “To do it in rural South Carolina is really hard because you have to do everything yourself.”

Marlboro County’s demographics also created roadblocks.

Nearly 28% of Marlboro County residents fall below the poverty line, according to Census data. Statewide, 16% of residents fall below the poverty line.

The median household income is $28,000 — roughly $16,000 less than South Carolina’s median income — and unemployment was 17.6% during 2011, giving the county the third worst unemployment rate in the state for 2011. In the Marlboro County School District, 85% of students

qualify for free or reduced price lunch.

Less than 9% of the county’s residents have at least a bachelor’s degree, compared with 24% of residents statewide.

“We’re still evolving here in the Clio community in terms of continuing education,” Kinney said, adding many students don’t have parents who went to college and having a large segment without higher education hampers the county’s ability to attract business.

Infrastructure also posed problems. The high school is 35 miles from the nearest interstate, and the nearest international airport is hours away and across state lines.

The remoteness made transportation an issue for the Dreamers, Calhoun said, limiting where the Dreamers could go for field trips and creating organizational issues for Dreamer events and summer camps.

During the program’s early years, a fire tore through Principal Gurley’s office and burned the elementary school classrooms at Clio Elementary Middle School. Gurley, who was in Charleston on the day of the fire, received a call from her son.

“He said, ‘Momma, your school’s on

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After announcements, meetings and contracts, the program began.

Calhoun and program officials accepted 73 students, called Dreamers, into the program, enrolling anyone who joined the original class between first and fifth grades.

Calhoun and program coordinators set up summer camps and assigned a program director to meet with and monitor the students throughout school.

Soon after the program’s start, it began hitting obstacles.

Marlboro County had few nonprofits that could provide community support for the program. In urban areas, the location

Henry Cobb of Marlboro County Schools takes a photo of a Dreamer as she receives a free laptop. Sallie Calhoun, the I Have a Dream program’s sponsor, gave a laptop to each Dreamer who graduated from high school this year.

21

Cover story Kendall Woods returns to his seat after receiving his diploma at the Marlboro County High School graduation. Woods was a Dreamer and is attending the University of South Carolina at Allendale. (Photos/Matt Tomsic)

fire,’” Gurley said. “I said, ‘No, it’s not.’”

Gurley called the custodian who told her the fire was spreading down the hall. The school lost 14 classrooms and administrative offices.

When they could, school and program officials organized field trips, held afterschool study and tutoring sessions at Edens Opera House, next to Clio’s only stop light, and hosted summer camps each year.

Calhoun returned to Clio for the summer camps, and she remembers dancing every morning during the camp to start the day.

The students tried to teach her to dance, but the lessons ended with them rolling on the floor laughing.

Years passed, and the students got closer to high school graduation, and as the program pushed them toward college, Calhoun’s goal for the students evolved.

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‘Lord have mercy’

22

By January of this year, Calhoun and others were working to ensure students were on track to graduate and were meeting deadlines for college admissions. The final tallies were falling into place.

Of the 73 Dreamers who started the program, 25 had moved away from Marlboro County and didn’t stay in touch. Another third didn’t have the grades to graduate, and program officials were working with them to get their diplomas.

Hazel Ellison, the program coordinator, worked with the remaining students on the

The Clio Dreamers used Edens Opera House as its headquarters after Sallie Calhoun purchased the building. (Photo/Matt Tomsic)

ACT and SAT, making sure they took the appropriate tests. She also helped students with the Free Application for Federal Student Aid. “I gave them a senior notebook, which is a step-by-step process of everything they need to get them in that first day of college,” Ellison said.

Ellison met with students on Saturdays to fill out college applications and financial aid applications.

As graduation approached, Calhoun, Ellison and others waited to see who would pass, who wouldn’t and who was off to college. By June 1, they had their answers: 24 would graduate and more than half planned to attend college in the fall.

At a dinner for the Dreamers, they received laptops from Calhoun and congratulations from their family, friends and school officials. They all gathered to celebrate the program and the students who had finished high school.

The Rev. Gregory Woods approached the podium, asking everyone to stand. He talked about Calhoun’s promise to pay for the students’ higher education.

“If we had to do this—” “Lord have mercy,” someone interjected from the crowd.

“—Good God almighty,” Woods finished.

“But God see fit to touch her heart, her mother’s heart, many years ago. I think we need to open our mouths and put our hands together and give her the best praise that you could give this day by saying thank you.”

Parents, students and school officials bellowed, hollered, clapped and cheered.

Calhoun, sitting at a table in the front of the room, looked from the podium to the crowd. She nodded and smiled. Her eyes darted from Woods to the crowd, and she smiled again, waving her hands in a modest gesture and deflecting the praise from her back to the students and their parents.

Redefining success Eleven years after announcing the program, Kinney, Calhoun and others struggle to define its success.

Kinney became involved with the Dreamers after he and his wife moved back to Clio from Columbia in 2005. Kinney owned a shop across the street from Edens Opera House, where the Dreamers held their after-school activities.

“I’ve had extreme difficulties talking about the program the last year,” Kinney said, adding that less than half of the original Dreamers are graduating and even fewer are attending college. “When you look at it from that perspective, it’s hard to give it a good grade. But then at the same time, I know a number of those individuals that’s graduating will be first-timers going off to college. And (they) may have never had that opportunity or saw that they could even accomplish that task had they not been part of the Dreamer program. It’s been good for many, many families.”

Calhoun said the program focused on getting kids into college.

Cover story

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“We started from day one talking about this means you can go to college,” Calhoun said.

That became a theme, and they repeated it over and over. But as the program evolved, Calhoun’s goals for the kids changed as well, and she thought the I Have a Dream Foundation’s focus on college was overdone.

Calhoun mentioned one student, who said he wanted to be a truck driver at the beginning of the program. That student, Christopher McLean, has chosen trucking for his profession.

Marlboro County School District is also pushing workforce development for its students. The district has started a K-14 initiative to offer two-year degrees in the county and improve access to those degrees for students who can’t travel outside the county to continue their education.

Helena Tiller, the district’s superintendent, said about 30% of her students go to a four-year university or technical college after graduation.

“We know that those students will go and take advantage of those higher education opportunities, but then we have the other 70%,” Tiller said.

The high school also has a program that trains students in technical skills needed by industries in Marlboro County. At the school’s awards ceremony on May 31, administrators named student after student who had completed certifications in welding, cosmetology, auto tech, nursing and other fields. With the certifications, those students can go straight into the workforce, and one Dreamer, Willie McLean, plans to.

McLean completed the high school’s cosmetology program and received his cosmetology license.

In his Dreamers book, McLean wrote: “I enjoy this line of work and plan to make it my career.”

McLean’s decision meshes with Calhoun’s evolved views for what the Dreamers program should accomplish.

“My goal was that every kid should have a dream for what they want to do in their lives,” Calhoun said. “And we should support that dream. They don’t have to go to college to be successful.”

23

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

|

2012

Gathering places

Public spaces made beautiful

School matters

Cities partner with educators

You see a police carâ&#x20AC;Ś

We see a police officer 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

Contents 6

Public Spaces, Beautiful Places If a space is made appealing, people will come â&#x20AC;&#x201D; and private development often follows.

By Amy Geier Edgar Cover: Waterfront Park, Charleston.

(Photo/Leslie Burden)

Cities Mean

Business

9 Reading the Way

A publication of Municipal Association of South Carolina

Cities take interest

in schoolsâ&#x20AC;&#x2122; quality

1411 Gervais St., P.O. Box 12109 Columbia, SC 29211 803.799.9574 mail@masc.sc www.masc.sc

By Amy Geier Edgar

Miriam Hair Executive Director, Municipal Association of SC

9 Business Express

Reba Campbell Deputy Executive Director, Municipal Association of SC Editorial staff Mary Brantner

Streamlining licensing

saves time, money

By Amy Geier Edgar

5

Business and Cities Build Partnerships

By Jim Reynolds

Features

Cover Story

Contributing writers Amy Geier Edgar Published by

www.scbiznews.com

DepartmentS 4 Letter from the Editor

By Reba Hull Campbell

A publication for the Municipal Association of South Carolina

www.citiesmeanbusiness.org | Cities Mean Business 3

Letter from the

editor

South Carolina cities and towns are gathering places, hubs of economic growth and centers for innovation. In this issue of Cities Mean Business, we focus on three issues that allow our hometowns to grow and prosper. We also hear from the leadership of the state’s business community reinforcing the importance of a strong working relationship between the state’s cities and the businesses located in them.

Public spaces draw people together and are one of the important quality of life elements that make our cities and towns special. Read about several very different types of public spaces in hometowns of varying sizes around the state and learn how they benefit residents and the local economy.

Funding education may not be a city responsibility in South Carolina, but that doesn’t mean mayors and councilmembers don’t have a stake in the quality of education for their young people. Follow local leaders who make supporting their hometown schools a priority.

A critical component of bringing new jobs to any community is making sure government processes don’t impede a business’s ability to operate efficiently. Read about several South Carolina cities and towns that have put new processes in place to ensure their business licensing procedure is as streamlined as possible.

Reba Hull Campbell rcampbell@masc.sc

Editor

4 Cities Mean Business | www.citiesmeanbusiness.org

A publication for the Municipal Association of South Carolina

working relationships

Businesses and Cities Build Partnerships

By Jim Reynolds

Jim Reynolds

In South Carolina and all across the nation,

addition, our state must work to connect adults to

there are strong working relationships between cities

training and jobs through WorkKeys, QuickJobs, Ap-

and businesses. In fact, the goals of cities and busi-

prenticeshipCarolina and the S.C. Technical College

nesses are often closely aligned. Companies want to

System’s readySC program.

grow their businesses, which results in job creation for

Comprehensive tax reform is also a priority that

citizens. In order to create these jobs, companies need

will mutually benefit cities and businesses. We need

a strong education system to meet their workforce

a system with stability and predictability in funding

needs. Companies also depend on a vibrant quality of

programs and services. Other important components

life to attract and retain talented staff, and they need

of comprehensive reform include a balanced tax base

a stable tax system and sound infrastructure so their

and competitive rates, certainty and adequacy of reve-

costs are reasonable and predictable.

nue, enhanced funding for infrastructure, and promo-

Since cities and businesses share so many of the same goals, it makes sense for them to work together as part-

tion of economic development and job creation.

Businesses need to efficiently transport materials

ners and build trust and understanding before there is a

and products in and out of the state, while citizens

crisis. As chair of the South Carolina Chamber of Com-

and tourists alike must have reliable transportation

merce, I see examples every day of businesses working

routes to get to and from our cities. Funding for infra-

closely with the cities they are located in to achieve com-

structure maintenance and improvements is vital to

mon goals. Whether it’s enabling employees to volunteer

keep our roads, railways and bridges safe.

at local schools or serve on planning committees, South

Also, many of the businesses located in our state

Carolina businesses are building strong partnerships

depend on South Carolina’s port system to import

with the cities they operate in.

and export goods. When the Panama Canal expan-

The South Carolina Chamber’s mission is to advo-

sion is completed in 2014, larger ships will be looking

cate for an environment where businesses can flour-

for places to dock on the East Coast. In order to stay

ish and prosperity for all citizens can be heightened.

competitive with other states, South Carolina must

The Chamber’s Competitiveness Agenda highlights

secure funding to dredge Charleston Harbor to 50 feet

the issues that must be addressed for South Carolina’s

so these larger ships can access our port system.

economy to flourish over the next 10 years. These

As the business community continues to work

legislative priorities will also ensure that our cities can

towards these goals, we will rely on our cities for sup-

continue to prosper.

port. Through strong partnerships, we can make our

From an education standpoint, businesses and

state an even better place to work and live.

cities will benefit from an increased pipeline of K-12 graduates who are college and career ready. Higher

•

Jim Reynolds is CEO of Total Comfort Solutions and

education is increasingly aligned with businesses and

the 2011-12 Chair of the South Carolina Chamber of

regional economic development strategies. In

Commerce.

A publication for the Municipal Association of South Carolina

www.citiesmeanbusiness.org | Cities Mean Business 5

Camden Mayor Jeffrey Graham (center) is joined by local dignitaries to officially open the Town Green. (Photo/City of Camden)

Public Spaces,

Beautiful Places

By Amy Geier Edgar

T

he City of Camden has a vision.

the sea of pavement into a beautiful, usable

Visitors and residents already love

space. They created the Town Green, a public

property owners are restoring building

the small-town charm, the historic

Work continues in Camden. Downtown

space circled with large oak trees and wired

facades to preserve their historic architecture,

sites and old homes. City leaders want to see

for electrical service to make space available

and future plans include creating a more

Camden improve and grow, to be a place that

for concerts and festivals. As an added bonus, pedestrian-friendly downtown area by reduc-

invites both new residents and new busi-

the Town Green also gives visitors a few

nesses.

extra parking spots to choose from when

A few years ago, a trip downtown led visitors to several businesses -- and a large,

visiting downtown.

ing traffic and creating wider sidewalks.

As a downtown businesswoman, Karen Eckford, a senior vice president of NBSC

“This is part of a larger vision of where

Bank, sees positive changes happening.

no-frills parking lot that was filled with

Camden is moving,” said Mayor Jeffrey Gra-

potholes and stormwater issues. In 2009,

ham. “We want to let businesses know, we

taking care of its assets, looking to improve

city officials hired consultants to transform

want you to be here, to locate to Camden.”

the infrastructure, and making downtown

6 Cities Mean Business | www.citiesmeanbusiness.org

“The Town Green shows that the city is

A publication for the Municipal Association of South Carolina

aesthetically pleasing, practical and up-todate,” said Eckford, part of a private sector economic development group for Kershaw County that raises funds for economic de-

BEFORE

velopment. “It creates an environment where businesses feel good about locating here.”

The new public space already is serving as a catalyst for private development, said Dennis Stuber, a senior vice president at First Citizens Bank and member of the Kershaw County Chamber of Commerce. After the Town Green was constructed, a downtown restaurant decided to invest in an outdoor dining area.

“This is the type of impact you see,” Stuber said. “When the public sector makes improvements, the private sector does too.”

All public space — whether it is green spaces, streets or sidewalks — is an impor-

AFTER

tant investment by a city, said Irene Dumas Tyson, director of planning with the Boudreaux Group, who has worked with cities on designing public space. These spaces connect neighbors and people to special places in downtown. They also create appealing environments that attract economic development, Tyson said.

“If you think about cities that we love to visit — places like New York City; Washington, D.C.; Savannah — every one of them has fabulous public gardens and vibrant streets,” Tyson said.

Green spaces, the well-designed civic realm, benefit residents and the local economy, Tyson said. They provide a central spot for people to gather, and the properties around those green spaces are typically the most valuable and most profitable, she said.

Years ago, many opposed the City of Charleston’s Waterfront Park, preferring private development such as townhomes and hotels right on the water, Tyson said. However, Mayor Joe Riley argued that the most beautiful places in a city need to be given

(Photos/City of Camden)

Camden: the space IN ACTION Where most people saw a large, crumbling parking lot in downtown Camden, city officials saw a Town Green. In 2009, the city hired consultants to design a beautiful, useful space to meld with the charm of Camden’s historic downtown. Encircled with oak trees and wired for sound, the space is available for concerts and festivals. It’s the kind of gathering place that was common before everyone traveled by car. And, just as planners hoped, the public improvement has inspired private development. A downtown restaurant has already invested in adding an outdoor dining area.

over to the residents. Today, because of that

A publication for the Municipal Association of South Carolina

www.citiesmeanbusiness.org | Cities Mean Business 7

Edisto Beach’s Bay Creek Park draws residents and tourists alike. (Photo/Town of Edisto Beach)

Ridgeland’s Veterans Memorial Park is part of a larger streetscaping and beautification effort. (Photo/Town of Ridgeland)

decision, the private development that has

such as vegetables and woven baskets,

fundraising effort, donors could purchase

built up around the park is more valuable

Lyons said.

bricks with the names of veterans or

and desirable because of the public park, Tyson said.

Each year, visitors flock to another coastal

“We now have a place to accommodate

community members etched into the surface.

activities for the community,” Lyons said. “It’s

“It adds another level of meaning and owner-

hard to promote and have activities when

ship of the park for our citizens,” Taylor said.

community, Edisto Beach. They are drawn by

you don’t have the necessary facilities. Now

its unfettered shoreline and quiet way of life.

we have a beautiful park for visitors and local

involved in the park’s creation. The town

Yet the town had no central spot for tourists

folks to enjoy.”

sought input and assistance from veterans

or residents to gather for festivals, commu-

Just as Edisto Beach focused on its

Community members were deeply

throughout the entire project, and all of the

nity events or the S.C. Governor’s Cup Bill-

shrimping heritage, other municipalities can

work was done by local and regional artists

fishing Series, which draws large crowds each

draw on their own history to create a public

and landscapers, Taylor said.

year, said Mayor Burley Lyons.

space that celebrates their uniqueness.

In 2006, the Town of Edisto Beach pur-

Ridgeland town leaders decided to honor

chased 247 feet of frontage property along

their military history and many distinguished

Big Bay Creek. The town had to overcome

veterans by turning a neglected piece of land

challenges such as contamination in the tidal

into the Ridgeland Veterans Memorial Park.

wetlands, but was eventually able to trans-

For several years, the government centers

More than 500 people attended the park’s dedication last year, including representatives from all four branches of military service.

“Any time you can beautify an area, make it more attractive, it makes people want to live and work there,” Taylor said.

form the site into a public space with a dock

in Ridgeland were connected by an “unused

for fishing and crabbing, boardwalk, market

island” of land, said Town Administra-

trails draw residents and development to

building, picnic tables, benches and a vast

tor Jason Taylor. Town officials decided to

cities and towns, said planner Tyson. Not

open area. The town dedicated the park and

give the property new life as part of a larger

only is it vital for cities to invest in creating

its market building, the Heritage Building, to

streetscaping and beautification effort. The

these public spaces, but it is also important to

honor Edisto Beach’s shrimping industry.

park now serves as a pedestrian connector

maintain them to ensure the public can con-

between the Jasper County Courthouse and

tinue to use and enjoy the space, she said.

The public space has boosted Edisto

Parks, beautiful streets, sidewalks and

Beach’s tourism industry by providing addi-

the Ridgeland Town Hall, creating a public

tional venues for recreation and public access

space that is both functional and visually ap-

place,” Tyson said, adding that public spaces

to Big Bay Creek’s marshes and bays.

pealing, Taylor said.

are becoming more important, because they

The park can be rented for private events and also is used by vendors to sell products

The memorial park also taps into Ridgeland’s distinctive identity. As part of the

8 Cities Mean Business | www.citiesmeanbusiness.org

“It really is all about the spirit of the

provide places for neighbors to unplug from technology and reconnect face-to-face.

•

A publication for the Municipal Association of South Carolina

Columbia Mayor Steve Benjamin engages young readers as part of the city’s “Together We Can Read” program.

(Photo/City of Columbia)

A publication for the Municipal Association of South Carolina

www.citiesmeanbusiness.org | Cities Mean Business 9

very year, for the past four

these community leaders read to

years, elected officials from the City

the more than 1,800 third-grade

of Columbia and other community

students in the district. The program

leaders head into the classrooms of

encourages literacy in children and

Richland County School District

allows officials a personal glimpse

One schools. As part of the

into the successes and struggles of

“Together We Can Read” initiative,

their local schools.

While municipalities are not directly responsible for education in South Carolina, they do have a vested interest in the quality

“We really see the big picture of how their budget affects them,” said Devine.

the students are on track, and that tax dollars are being spent wisely, he said. Perhaps most

Devine said she spent time at her child’s

importantly, he said, it has an impact on the

of education provided locally. A solid edu-

school, which is in an area with some higher

cational system is critical for a community

poverty rates. She learned that when kids act

looking to draw jobs and residents and to

up in school or fall asleep in class, it’s often

remember when individuals come into the

grow economically. As a result, numerous

tied to trouble at home. Understanding the

schools and tell stories. After the chief of

municipalities work with local school dis-

challenges in schools can allow city officials

police came in, several kids said they wanted

tricts in partnerships that can prove to be

to step up law enforcement activity in

to become police officers,” Mack said. “This

beneficial to all involved.

the area.

lets kids know they can do anything. They

Along with the reading initiative, City of Columbia officials participate in principal for a day programs with local schools, allowing

“We can see from a community standpoint how all the pieces fit together,” she said.

It’s important for cities to be closely con-

children.

“Kids have great memories. They

can grow up to become productive, contributing citizens.”

Community leaders from the Town of

city leaders to shadow principals, assist with

nected to schools for economic development

Clover are common visitors in the schools,

duties and interact with students, parents,

reasons, she said.

through an annual reading program, a lunch

teachers and staff. The city’s Department of

“Columbia is not going to be looked at

buddy program, career days and assemblies.

Parks and Recreation also allows Richland

as a progressive place to be if we don’t have

Local elementary schools are invited for tours

One to use its fields, tennis courts and recre-

quality education,” Devine said.

of the police and fire departments. The fire

ation center for sports at no cost, according to city spokeswoman Leshia Utsey.

City Councilwoman Tameika Isaac

Such partnerships and involvement by city officials indicate that education is a priority in the city, said Richland One Su-

department and drug dog team make presentations at the schools.

The school district and the town share

Devine has participated in both the reading

perintendent Dr. Percy Mack. The programs

sports fields, with the town providing main-

and principal for a day programs.

show leaders outside the school district that

tenance and improvements.

10 Cities Mean Business | www.citiesmeanbusiness.org

A publication for the Municipal Association of South Carolina

Feature Story

Columbia’s Police Chief Randy Scott reads to students as part of the “Together We Can Read” initiative. (Photo/City of Columbia)

The town also completed renovations last

The Town of Springdale is working with

Partnering with the school allows the

August on a building at one of its parks in

its local elementary school, Springdale

town to promote education and civic engage-

a low-income area, said Town Administra-

Elementary, on an initiative to encourage

ment, to bring growth to the area, and to

tor Allison Harvey. They partnered with the

more healthy and active lifestyles. Last year,

make better use of resources, Barton said.

YMCA and the elementary school that serves

the town initiated a phased project which

the children in this neighborhood in provid-

began by renovating the school’s park into a

ing an after-school tutoring program at the

“healthy fitness zone,” said Town Administra- constituents desire. Whether the goal is to

Stellie Jackson Enrichment Center. The town

tor Erica Barton.

pays for the facility, the YMCA staffs the

“Municipalities and schools have similar goals -- to provide the services that their improve the quality of life or foster an en-

The park will be shared by the school,

vironment where education can thrive, the

program, and the school refers students and

town and county recreation commission. It

desired outcome is the same -- a healthy and

monitors progress.

includes a nine-hole disc golf course and new

happy community,” Barton said. “It’s a known

play areas for children. Future plans include

fact that families move to communities

provements in the test scores of the 15 stu-

the addition of a 300-seat outdoor amphi-

where there are good schools. Helping the

dents in the program, Harvey said.

theater for entertainment, education, music,

school to become a model of quality educa-

and arts programs for students and the com-

tion and good health helps bring families to

of the schools,” Harvey said. “Today’s stu-

munity, as well as an outdoor trail and new

Springdale.”

dents are tomorrow’s citizens, workforce, and

lighting.

After only one year, there have been im-

“The town is very interested in the success

entrepreneurs. The Clover School District

The healthy initiative may have begun

The town also hopes to spread the healthy

with the school, but its message benefits

enjoys a well deserved reputation for aca-

living message throughout the community,

demic excellence. Its reputation is an eco-

with future summer fitness and nutrition

nomic development tool for us.”

camps, and a farm-to-school initiative aimed

active in the community makes for happier

at improving community access to locally

people,” she said. “Happy citizens make for a

grown farm produce, Barton said.

more friendly town.”

In some cases, the partnerships extend beyond academics.

A publication for the Municipal Association of South Carolina

everyone in Springdale, Barton said.

“Eating healthy and being physically

•

www.citiesmeanbusiness.org | Cities Mean Business 11

Feature Story

Under one Cities take steps to streamline business licensing to save time, money

By Amy Geier Edgar

Combs, business license code en-

A

sist new businesses opening in the area. The

forcement officer for the City of

communications and economic development

Spartanburg, noticed more people inquiring

departments also are working on more com-

dating as we can while still meeting

about starting a small business or operating

prehensive guides for business recruitment

our responsibility to enforce the develop-

a business from home. Combs found herself

and real estate development professionals,

ment standards and codes that apply,” Mem-

answering the same questions repeatedly.

Combs said.

mott said.

s the economy soured, Nicole

Combs then put together a complete

It’s part of a larger effort by the city to as-

In addition, the city has created the position

ing a business in Spartanburg, Memmott said.

“It’s part of an effort to be as accommo-

Tony Aku was one of those individuals

“New Business Resource Guide for the City

of project developer for economic development who opened his first new business. Aku

of Spartanburg” where potential business

to serve as an internal liaison to assist projects,

opened Best Link Communications, a pre-

owners could find updated information

according to City Manager Ed Memmott.

paid cell phone business, in February. He

about federal, state, county and city resources.

The city wants to help potential investors

didn’t realize he was in the city limits and

and businesses navigate the process of start-

was required to have a building permit or

Residential construction in the Brickhope Plantation development in Goose Creek.

(Photo/Leslie Burden)

12 Cities Mean Business | www.citiesmeanbusiness.org

A publication for the Municipal Association of South Carolina

roof

A publication for the Municipal Association of South Carolina

Feature Story

www.citiesmeanbusiness.org | Cities Mean Business 13

Feature Story permissions for his signs or alarms, Aku

inform applicants about zoning issues, build-

said. Combs came by and informed him of

ing code requirements, fire department regu-

what his business was lacking and provided

lations, public works and business license

him with the necessary numbers to call and

ordinances.

people to contact.

“Since I have been involved in the weekly

“I was actually scared that I was in big

conferences, I observe many people leave

trouble,” said Aku. “She put me at ease. Just to know that Nicole and the city would work with new business owners -- it was like a breath of fresh air.”

A streamlined, efficient business licensing

the conference with an overall better underBeaufort business owners of Anytime Fitness found the city’s pre-application process worked well. (Photo/City of Beaufort)

efficient, customer friendly and welcoming to

standing of what is required to start/finish their project and obtain the business license,” Johnson said.

Jode Kirk and his wife, Julia, opened their

process is a good first impression for business development, Molinari said.

first business in South Carolina, Anytime

owners and developers, said Greer Mayor

Fitness, in February. Their pre-application

Rick Danner.

“That’s often a first point of contact for business people and contractors from out of town,” Danner said. “That process speaks

“We’ve improved our processes over time, and we’ll continue to make improvements,”

meeting for the Beaufort business was very

he said. “It’s beneficial to the business person

helpful, Jode Kirk said, and gave them an

and to our staff here.”

opportunity to have discussions with all the

Christie Nyman, office manager for Low-

department officials who would be involved

to the attitude and environment of the city

country Roofing and Exteriors in Goose

in the process. Kirk said he and his wife also

for businesses. If your city is approachable

Creek, has found city officials to be “helpful

went to the city’s website and found many of

and accessible, it demonstrates to them that

and friendly.” She frequently requests permits

their questions answered online.

you’re being proactive in terms of being a

for her company’s jobs replacing roofs, sid-

business-friendly city.”

ing and windows. The process is very quick

In the Lowcountry, the City of Goose Creek offers an express business license pro-

-- she usually is able to get permits the same day, Nyman said.

“It really was an easy process and fairly straightforward,” he said.

The City of Beaufort also was able to streamline its business license process simply

cess for new home construction that allows

Like Goose Creek, the City of Beaufort

a contractor to pay a fee that covers subcon-

also offers pre-application conferences where

said. When the city moved to its new loca-

tractors based on the number of houses built.

various projects are reviewed and discussed

tion, the building codes and business license

This saves time for the builder, and doesn’t

with the applicant, according to Al Johnson,

departments were located next to each other,

stall the construction project if one subcon-

business license officer. The applicants may

because many times they work together on

tractor has failed to get a business license,

include developers, construction companies

projects. City personnel now have the ability

said Finance Director Ron Faretra.

or prospective new business owners. Some

to assist each other and perform similar tasks

projects are large, like the current new con-

that in the past were handled by only one

construction meetings for new business

struction of a Publix grocery store or Honda

individual. Customers no longer have to visit

construction. Departments such as planning,

automobile dealership; and others are small-

different departments in separate buildings,

public works, police, fire and finance meet

er, like salons, retail shops or home day cares,

Johnson said.

with the builder and go over all the proce-

Johnson said.

Goose Creek officials also hold pre-

dures and rules, and provide necessary paperwork and checklists, Faretra said.

“The more information we’re able to con-

by moving services under one roof, Johnson

Helping to make clear the expectations for

The pre-application meeting not only

businesses is part of the larger comprehen-

helps for business license purposes, but it

sive plan to encourage business development

also allows new business owners to introduce

and grow the city, said Beaufort Mayor Billy

vey early in the process saves us time down

their business model and construction plans

Keyserling.

the road,” explained Assistant City

and receive feedback from all department

“We need more businesses and more

Administrator Jeff Molinari.

heads within the city, Johnson said. Local

people living in the core downtown to keep

utilities and even the state Department of

everybody’s taxes at bay and spread costs,”

Transportation can participate. Local officials

Keyserling said.

The steps taken by the city to streamline the process set the tone that Goose Creek is

14 Cities Mean Business | www.citiesmeanbusiness.org

•

A publication for the Municipal Association of South Carolina

Hom etown

SNAPSHOT

ary were of the milit es ch n ra b All ication of d at the ded te n se re p re ark.

Veteran’s P Ridgeland’s

Photo/Town of Ridgeland

You see a streetâ&#x20AC;Ś

We see a lifeline that is a hometown with planned traffic flow, fire stations, thousands of visitors each year, 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

FEATURE www.scbizmag.com

L

26

(Photo/U.S. Coast Guard)

FEATURE

Litigation

By Harriet McLeod, Contributing WriterÂ

Charleston-based law firm leads negotiations on BP oil spill settlement

27

Social Litigation www.scbizmag.com

or months, open pipes pumped millions of gallons of crude into the open sea after the Deepwater Horizon oil rig exploded in the Gulf of Mexico.

As BP struggled to find a way to stop the flowing oil, the world watched as a plume coated the shoreline of Gulf Coast states along with the livelihoods of thousands that depend on the waterfront.

28

Eleven oil rig workers died that day in 2010, and the environmental devastation threatened the economy of the entire Southeast and oil prices around the world. A South Carolina law firm with a track record of taking on defendants with deep pockets — including the asbestos industry, the Saudi Royal Family, and Big Tobacco — helped deliver an open ended multi-billion dollar settlement earlier this year to individuals and business owners impacted by the worst oil spill in history.

The hope, said lead attorneys on the case, was that it would keep this from happening again and offer some emotional and finan-

cial relief to the thousands who saw their lives melt away with soiled sand that no one wanted to visit and the fears that Gulf Coast shrimp was contaminated with oil.

“These settlements come at an important time in the lives of those who have suffered and continue to suffer because of the Deepwater Horizon disaster,” said Motley Rice co-founder Joe Rice, one of the lead negotiators, after the settlement was filed with the court. “They will provide long-deserved compensation to thousands, including business owners, cleanup workers, the seafood industry and other citizens.”

From Cooper marl to Mississippi mud Motley Rice sent attorneys to the Gulf soon after the environmental threat became clear. Even though the Deepwater Horizon was 48 miles from land, scientists and meteorologists knew the oil was coming, and BP spent millions to stop and mitigate the disaster.

Headquartered on the banks of the Cooper River in the Charleston area, the firm’s office in Mount Pleasant overlooks Charleston Harbor’s marshy marl in the shadow of the Arthur Ravenel Jr. Bridge. Motley Rice became one of the nation’s largest civil

Joe Rice

Motley Rice co-founder Photo/Leslie Burden

Cleanup crews remove oil from marshes affected by the Deepwater Horizon oil spill near Venice, La., on Jan. 28, 2011. Marsh cleaning techniques are designed to have the least amount of environmental impact while ensuring effective cleanup results. (Photo/U.S. Coast Guard/Petty Officer 1st Class Susan Blake)

www.scbizmag.com

litigation firms by taking on cases like the BP oil spill.

The quiet, elegant lobby of Motley Rice is laid-back Lowcountry, but it shields a fierce beehive of activity where attorneys and staff work on cases that span the country and the globe. Motley Rice started representing people, families and businesses hurt by the BP oil spill shortly after the initial explosion miles out in the Gulf of Mexico.

About 75 plaintiffs’ attorneys and 250 staff members at the firm’s Mount Pleasant headquarters and at satellite offices across the country — along with co-counsel worldwide — handle civil lawsuits on behalf of thousands of clients claiming harm by medical devices and drugs, environmental toxins, occupational disease, catastrophic injury and wrongful death. They also deal with product safety, securities fraud and consumer fraud.

But partners Ron Motley and Rice are best known for blockbuster lawsuits that have yielded headlines and historic settlements.

Motley, 67, made his name by successfully suing the asbestos industry and then helped spearhead the states’ historic litigation against Big Tobacco that led to a record-breaking $246 billion settlement — an effort that was chronicled in the 1999 Oscar-nominated film The Insider. As a lead trial attorney, Motley deposed whistleblower scientist Jeffrey Wigand, a former scientists with the Brown & Williamson tobacco company.

Rice, 58, recently obtained a settlement estimated at $7.8 billion as one of the lead litigators in the class action lawsuit against BP for damages to businesses, individuals and workers on the Gulf Coast following a catastrophic oil spill in April 2010.

The firm was built on occupational disease, product liability and consumer fraud work. Wins with significant settlements and verdicts in those cases help the firm tackle cases that might take years of work on behalf of clients with little means.

“These settlements come at an important time in the lives of those who have suffered and continue to suffer because of the Deepwater Horizon disaster.”

Social Litigation

Opposite: Cleanup crews removed oil from marsh affected by the Deepwater Horizon oil spill at Bay Jimmy near Port Sulphur, La., Feb. 17, 2011.

The oil is being removed so new vegetation can grow back in the marshes and to protect wildlife from oil. (Photo/U.S. Coast Guard/Seaman William Benson)

29

Social Litigation

Photo/Leslie Burden

“If we could help stop terrorists through civil litigation, then that’s a positive goal.”

Michael Elsner, lead attorney The firm’s anti-terrorism and human rights work can seem like global espionage.

The firm has investigated possible financial sources of terrorism in more than two dozen countries, hiring experts, investiga-

tors and translators along the way.

“If we could help stop terrorists through civil litigation, then that’s a positive goal,” said lead attorney Michael Elsner. “When we’re looking at all of our cases

Cleanup workers remove a tar mat on Elmers Island, La., in March 2012. The island was heavily affected by the Deepwater Horizon oil spill. As the tar mat is unearthed, crews sift to remove additional sand and shells, attempting to return beaches to pre-spill conditions. (Photo/U.S. Coast Guard/Petty Officer 2nd Class Elizabeth H. Bordelon)

globally, that’s what’s in the back of our minds. Is there something else to this other than just the litigation that can also make some great social benefit? We’re fortunate to be in a firm that feels that way and has the resources to be able to tackle those things.”

Oil well capped, but not the settlement

With your help, we built a playground!

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Thank you to everyone who helped us give the Pinehurst Park community a fresh and fun spot with a new playground, fitness stations and updated basketball court.

30

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We help people get care, stay well and build healthy communities.

The multi-billion dollar payout by BP to victims of the 2010 oil spill in the Gulf of Mexico that was given preliminary approval by a judge this spring is uncapped, Rice said. Although it is the biggest mass tort class action settlement in history, Rice said, that number could go up depending on the number of claims filed.

“The settlement requires BP to pay all claims,” he said.

Motley Rice represents businesses along the Gulf coast — $2.3 billion of the settlement money has been set aside for harvesters of seafood.

“This was a catastrophic event and we felt that we needed to try to jump way ahead of the time game here and get people compensation now … because a lot of these people can’t wait 10 years or 20 years as it happened in Exxon Valdez (oil spill). We had a judge who had the same philosophy.”

Ongoing cases span the globe

The 9/11 Terror Victims

In following terrorism money, the firm uncovered operational information about al-Qaida that it has shared with the Department of Defense, she said.

South African gold miners “We’ve tried to identify cases to work on we thought would have some better social benefit,” said Elsner, who is handling the firm’s consulting role on a precedent-setting lawsuit against gold mining companies in South Africa.

The lawsuit on behalf of gold miners who developed lung disease from breathing silica while working deep underground has about 11,000 plaintiffs, Elsner said. But lawyers in South Africa think that there are more than 50,000 sick miners in the country.

“They’ve never encountered a case of that magnitude there,” he said. “They felt we could provide some guidance about how to manage litigation like this in a way that doesn’t cripple the entire court system and

hopefully provide some compensation to those people in a short period of time.”

“I think that the public understands that for years these gold mining companies have made great profits and, frankly, the economy of South Africa is largely built on the backs of these gold miners,” Elsner said.

The case was to be filed in the summer, he said.

Arab Bank Motley Rice represents about 6,000 plaintiffs in Israel and the United States in an ongoing lawsuit against the Jordan-based Arab Bank. The plaintiffs accused the institution of bankrolling militant Islamist groups responsible for suicide bombings and other acts of terrorism.

The complaint alleges that Arab Bank violated customary international laws by serving as paymaster to the families of suicide bombers through groups such as Hamas, the Palestinian Islamic Jihad, the Al-Aqsa Martyrs’ Brigade and the Popular Front for the Liberation of Palestine.

The case is expected go to trial this winter, Rice said.

Raj Rajaratnam

Motley Rice filed a lawsuit against Galleon Group hedge fund founder Raj Rajaratnam and his father on behalf of survivors of bombings allegedly committed by the Liberation Tigers of Tamil Elam in Sri Lanka.

The lawsuit is ongoing, attorneys said.

“We allege that he was funding the Tamil Tigers directly from his accounts in the United States,” firm spokeswoman Alicia Ward said. “Our clients include many widows whose husbands were killed.”

Rajaratnam was sentenced last fall in New York to 11 years in prison on insider trading charges.

www.scbizmag.com

For 10 years, the firm’s attorneys have been engaged in fact-finding on behalf of victims’ families, firefighters and others for lawsuits stemming from the terrorist attacks on Sept. 11, 2001, in New York, Washington and Pennsylvania, said lead attorney Jodi Westbrook Flowers.

In lawsuits against airlines and security companies for security failures, the firm has settled claims by more than 50 families who lost a loved one on one of the planes hijacked on 9/11 and opted out of the government’s 9/11 victims compensation fund.

In August 2002, Motley Rice lawyers sued Saudi princes, international banks, Islamic charities, the Saudi bin Laden Group, and the government of the Sudan for funding al-Qaida and the Taliban. The lawsuit asked for more than $1 trillion on behalf of Families United to Bankrupt Terrorism.

The ongoing case now has more than 6,600 plaintiffs among the families, Flowers said. It is known within the firm as The Burnett Cases after the first plaintiff — the family of Tom Burnett Jr., who heroically died on United Airlines Flight 93 when it crashed into a field in Shanksville, Pa. A federal judge granted the Saudi princes

sovereign immunity a few years ago and the U.S. Supreme Court refused to hear the plaintiffs’ appeal, Flowers said. Remaining defendants are in Dubai, Saudi Arabia, the United States, Pakistan and Sudan, she said.

“The defendants are now 50 or so, with dozens more being appealed,” Flowers said. “(They include) several charities that are alleged to be corrupt fronts — so much so that they’ve been shut down here in the United States and in Saudi Arabia since then — along with certain banks and wealthy donors.”

The firm’s team of attorneys on the case, led by Flowers and Motley, has run up against classified information, frozen assets, and volumes of paperwork. The cases’ documents fill several rooms, Flowers said.

Social Litigation

T

he Motley Rice law firm in Charleston takes on cases from all parts of the world. These cases cost millions to litigate and many fill rooms with documents, research and investigative reports.

Sometimes the business uncovers information that it passes along to the federal government, and sometimes it locks horns, such as when a federal judge immunized the Saudi Royal family against lawsuits.

The following cases show the breadth of plaintiffs and cases brought by the Motley Rice law firm.

31

Leadership South Carolina

Learning, living and leading in South Carolina: Congratulations to our Leadership SC Class of 2012

T

he Class of 2012 is a group of highly motivated community leaders who were competitively selected from hundreds of nominees to learn about the Palmetto State, the region and themselves.

The graduates completed more than 120 hours of learning designed to enlighten them on the challenges that face our state and the Southern region. During their six three-day sessions, the class traveled around the state exploring ways that South Carolina excels in achieving various goals including — education, social issues, health care, environment, economic development and natural resources.

They also learned more about the disadvantages our communities face including poverty, low graduation rates, hunger and

Robin Agnew

President, Senior Treasury Sales, Bank of America Merrill Lynch

www.scbizmag.com

David “Andy” Blondeau

32

unemployment.

As a result, each graduate has a deeper understanding of the challenges confronting our state, experts and professionals who are addressing those issues and strategies to make a positive difference.

As the only statewide leadership program that focuses on solutions for the entire state, Leadership South Carolina is proud of the accomplishments of this class and looks forward to the many achievements they will bring to our state in the future.

To learn more about Leadership South Carolina or to apply, please visit www.LeadershipSC.com.

Leadership South Carolina is housed at Clemson University’s Institute for Economic & Community Development in northeast Columbia.

Derrec Becker

The 2012 Class Project As part of the Leadership South Carolina experience, class members put their knowledge to practice by completing a service project.

The class of 2012 chose to assist the S.C. Special Olympics’ Mid-Winter Games by raising more than $28,000 and staffing a major event for the 1,300 athletes in Charleston. The class sponsored a day of competitive bowling in North Charleston.

Class members assisted athletes and helped with scoring and logistics. Class members cheered on athletes throughout the day offering “high fives” and warm congratulatory hugs. The effort represents more than 1,295 volunteer hours by the Class of 2012.

Dick and Tunky Riley Legacy of Leadership event Nov. 26, Embassy Suites in Greenville For more information or tickets, please visit www.LeadershipSC.com

Melissa Berry Potter

Public Information Officer, S.C. Emergency Management Division

State Hazard Mitigation Officer, S.C. Emergency Management Division

Assistant City Administrator, city of Clemson

Alternate Delivery Channel Manager, First Citizens Bank

Emily Brannen

James “Chip” Bruorton IV

Barry Coats

Johnnie-Lynn Crosby

Melinda Davis Lux

President and CEO, Special Olympics South Carolina Inc.

Business Services Manager, S.C. Works Upstate

Attorney/Member, Rosen, Rosen & Hagood LLC

Partner Wyche PA

Cynthia Blair

Shareholder/Department Head, Rogers Townsend & Thomas

Doug Bryson

Emergency Management Coordinator, Spartanburg County Government

Jason Eckenstein

Strategic Account Lead, AT&T

Columbia

Lara Hewitt

Director of Education, South Carolina Hospital Association

Rob Johnston

Director of Corporate Compliance and Integrity, Self Regional Healthcare

Tao Gao

Owner, Live2Create LLC

Will Howard

Market Executive/SVP, First Citizens Bank

Theo Lane Jr.

District Manager for Government and Community Relations, Duke Energy Carolinas

David â&#x20AC;&#x153;Daveâ&#x20AC;? Gayle

Chief, Manning Division, S.C. Army National Guard

Peter Inglis

Michael Jara

Business Analyst, South Coast Paper

David Laursen

Assistant Chancellor for Facilities Management, USC-Aiken

Project Engineer/Manager, Fluor Corp.

Rosen Hagood is helping define the future of South Carolina.

Chip Bruorton,

2012 Graduate Leadership South Carolina

Katherine Haltiwanger

Deputy Chief of Staff/Operations, Office of the Governor

Leadership South Carolina

Brantley Evans Jr.

Tom Ledbetter

Associate VP for Enterprise Campus, Midlands Technical College

Congratulations to Tom Ledbetter

2012 Graduate of Leadership South Carolina

Andrew Gowdown,

Board of Trustees 2010 Graduate Leadership South Carolina

We are proud of your leadership and all you do for our firm and the community.

CHARLESTON, SC

Call (803) 691-3885 to learn more www.mtcenterprisecampus.com

www.scbizmag.com

www.rrhlawfirm.com 843-577-6726

A unique environment for business and education to co-locate on the 150-acre Enterprise Campus at Midlands Technical College.

33

Leadership South Carolina

Erica Marett

Physician Services Coordinator, Hospice Care of S.C.

Jen Phelps

Executive Coordinator, S.C. Association of Technical College Commissioners

Richard “Rich” Salizzoni Quality Assurance Manager Savannah River Remediation

John Martin

Kathy Norton

Partner Nelson, Mullins, Riley & Scarborough LLP

Assistant Vice President, PGBA

James “Mike” Poston

Jermel President

Vice President Retail Operations Santee Cooper

Patrick Sapp

Director of Development, Clemson University

CEO DAE Foundation

Scott Schult

EVP Marketing, Myrtle Beach Area Chamber of Commerce

Jeff Palen

Treasurer, City of Columbia

Cate Ryba

Media and Communications Officer, Mary Black Foundation

Meg Scoopmire

Special Counsel Haynsworth Sinkler Boyd P.A.

A LEADER IN BUSINESS AND IN THE COMMUNITY Congratulations to Cynthia Durham Blair, Esq. Leadership South Carolina, Class of 2012 Shareholder and Department Head, Transactional Law Department

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tResidential Closings tReal Estate Owned Properties tReverse Mortgages tTimeshare Closings tTitle Resolution

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S.C. DELIVERS

Ports, Logistics & Distribution

Traffic backs up south of Columbia as motorists wait to merge into the overburdened Interstate 26 intersection near Gaston. The inland port has the potential to take 50,000 trucks off the highway. (Photo/James T. Hammond)

SPA pursuing inland port in Greer

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By Matt Tomsic, Staff Writer

36

T

he inland port has the potential to take 50,000 trucks off the highway and will be a partnership between the port and Norfolk Southern. S.C. State

Ports Authority officials expect the entire project to cost roughly $23.5 million and to be completed within 18 months See INLAND PORT, Page 40

S.C. Delivers

Industrial Parks

Staff Report

Fairfield to use taxes for industrial development

F

in municipal bonds the county sold to finance the 684-acre Fairfield Commerce Center, said David Ferguson, county council chairman.

“Even with the economic downturn we’re trying to focus our efforts on when this turns around,” Ferguson said of the county’s plans. “You know it’s going to turn around sometime.”

Fairfield County, which last year collected $23 million in property taxes from

airfield County plans to use some of the property tax revenue generated by the $9.8 billion expansion project currently under way at the V.C. Summer Nuclear Station to pay for a new industrial park.

The tax money from South Carolina Electric & Gas, which operates the nuclear power station with state-owned Santee Cooper, would be used to pay off $6 million

Fairfield Commerce Center Master Plan Source: Fairfield Economic Development

– Undevelopable

Parcel 16 20.6 acres

– Developable

Parcel #

Parcel 15

Developable acreage

26.1 acres

Parcel 18

Parcel 17

14.3 acres

33.9 acres

Parcel 14 15.1 acres

Parcel 19 Parcel 13

Parcel 1

6.5 acres

9.9 acres

36.7 acres

Parcel 7 Parcel 2

85.7 acres

Parcel 12

22.6 acres

18.6 acres

Parcel 3

Parcel 8

18.2 acres

28.1 acres

Parcel 11

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12.7 acres

38

Parcel 4

Parcel 9

9.3 acres

Parcel 5 9.3 acres

30.9 acres

Parcel 6 12.2 acres

Parcel 10 28.5 acres

SCE&G, could see the amount of revenue from the nuclear plant in Jenkinsville more than double, Ferguson said.

“We looked at the numbers when this thing started and figured (revenues) would be double to 2½ times what they are now, which would be about $55 million,” Ferguson said. “And, then I’ve heard numbers that would surpass that amount. To be honest with you, I really don’t know how much more, but I know it will be a help.”

Cayce-based SCE&G, the principal subsidiary of publicly traded SCANA, will own 55% or about $5.5 billion of the new nuclear construction project.

SCE&G and Santee Cooper are building two 1,100-megawatt reactor units at the Jenkinsville power plant that are expected to go into operation in 2016 and 2017. The utilities run a 966-megawatt reactor unit, which began commercial operation in 1984, at V.C. Summer.

The new commerce center in Fairfield County could be one of the largest Class A industrial parks in South Carolina. The site’s location at Peach Road and Interstate 77 is a key selling point, Ferguson said.

The site is less than an hour’s drive from two large metro areas — Columbia to the south and Charlotte to the north. The park — divided into 19 parcels ranging from 12 to 86 acres — also can accommodate building and site configurations of various shapes and sizes, Ferguson said.

“We can do small, mom-and-pop facilities and take on the 100-acre projects, too,” he said.

Ferguson expects the first phase of the project to be completed within seven months. Given the location and size, county leaders think the new commerce center will attract new jobs to the area and help put a dent in the local unemployment rate, which in May was 12.2%, three percentage points above the state’s 9.1% jobless rate.

“This kind of thing will help us,” he said.

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SPARTANBURG

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CHARLESTON

50,000 trucks off the highway and will be a partnership between the port and Norfolk Southern, which will operate the trains The S.C. State Ports Authority is pursucoming and going from the inland port. ing an inland port in Greer, extending its At its start, Newsome said, the inland reach more than 200 miles closer to its port will take about 25,000 trucks off the Upstate and other regional customers. highway. The facility will provide an over“It’s been our belief that the successful night train service from the port’s growth of intermodal container docks to the rail facility in Greer. units really requires us to look Newsome said Upstate-based cusbeyond our traditional port tomers like BMW, Michelin and facilities,” said Jim Newsome, Adidas could use the facility. president and CEO of the ports The ports authority purchased authority, during a July board roughly 100 acres in Greer in meeting called to discuss the proj1982 to build an inland port, but ect. “This is an exciting first step.” the land had not been developed.

The board took that first step The inland port is expected to in July, approving a $1.1 milNewsome be roughly 40 or 50 acres, said lion design contract to Patrick Bill Stern, the chairman of the Engineering and its local partner, ports authority board, and Newsome said Davis & Floyd. Port officials expect the the design contract will determine whether entire project to cost roughly $23.5 million the port needs to acquire more land through and to be completed within 18 months. purchases or swaps.

The contract will cover the design of the Newsome said the project’s importance is rail facilities, container handling facilities, similar to the importance of the new Navy storage facilities, civil and structural site base terminal and the harbor deepening work, and surveying. project.

The inland port has the potential to take

S.C. Delivers

INLAND PORT, from page 36

Trucks will haul containers from port property to an existing Norfolk Southernrun rail yard in North Charleston off Goer Drive. There, workers will load the containers onto a train that will run overnight to Greer.

“Right now, Norfolk Southern has plenty of capacity off Goer Drive to handle the anticipated volumes,” Newsome said, adding less than 20% of the port’s pier terminals leave on trains.

Newsome said the service will efficiently move cargo to the Interstate 85 corridor, which is poised for growth, and more than 200 miles closer to major rail developments in Charlotte and Atlanta.

Initially, the facility will handle more imports, but officials hope more loaded containers will return to Charleston since empty containers will be near one of the port’s customer bases in the Upstate.

Newsome said the port also envisions a distribution cluster establishing itself near the facility and the inland port will have an immediate impact on the port’s revenues.

The facility will create jobs but estimates have not been established.

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By Chuck Crumbo, Staff Writer

Aerospace

S

outh Carolina has emerged as the “it” state in the aerospace business, Gov. Nikki Haley says.

“South Carolina continues to be the buzz because of Boeing,” Haley said during a conference call with reporters from the Farnborough International Airshow in England in July.

Haley and S.C. Commerce Department officials spent much of their week at the show meeting with aerospace suppliers, seeking to sell the Palmetto State as a good place to open or expand a plant.

“It’s a great opportunity for CEOs to talk to CEOs,” Haley said of the visit. “And we are talking about the fact that South Carolina is the new ‘it’ state.”

Haley noted that 180 aerospace-related businesses in South Carolina employ 20,000 people. Just last year, the industry invested more than $100 million in the state and cre-

Exhibition stands displaying large jet engines and other components used in the aviation industry at the Farnborough International Airshow, UK on July 12, 2012. (Photo/Steve Mann/Shutterstock.com)

ated about 900 new jobs, she said.

“And, we’re just getting started,” Haley said.

The airshow allows state officials to work on lining up new prospects. “It’s the starting point of the CEO of the state asking the CEO of the company: We want you to come visit and see what we have to offer,”

Haley said.

Aerospace firms that supply Boeing are interested in the state because of the business climate, workforce training, and the fact that South Carolina is one of the “least unionized” states in the country, the governor said.

The S.C. delegation also met with executives of U.K.-based GKN Aerospace, a firsttier supplier that plans to invest a minimum of $38 million over the next six years and create 278 jobs in Orangeburg.

GKN’s S.C. facility will assemble composite fuselages for Honda’s new Hondajet, a light business aircraft being built in Greensboro, N.C. Haley said meetings with companies like Boeing and GKN are part of the state’s efforts to make sure everyone is satisfied and to see what the state can do to help grow the firms’ business.

S.C. Delivers

S.C. the ‘it’ state at international airshow, Haley says

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41

S.C. Delivers

Exporting

By Chuck Crumbo, Staff Writer

Transcon helps companies learn the export ropes

B

y selling an assortment of goods from horse nutritional supplements and liniments to personal hair care and health care products, Transcon Trading Co. has carved out its niche in the world of export management.

And since its founding in 1979, Transcon has racked up awards from state and national groups.

The latest honor came from the U.S. Commercial Service. The agency, which serves as the trade promotion arm of the U.S. Department of Commerce’s International Trade Administration, awarded the Export Achievement Certificate to Transcon’s president and CEO Sonya Kosta Di Nova.

“I am truly humbled by the recognition,” Kosta Di Nova said of the award, which recognizes her company’s success in exporting products.

The Export Achievement Certificate is awarded by the U.S. Commercial Service to recognize companies that have experienced substantial growth because of exporting, said Dorette Coetsee, state director for the agency’s Export Assistance Centers. “Sonya has taken her company to the next level, by

growing each line of products globally.”

Transcon, which has a dozen employees, represents about 80 firms that manufacture a range of products from consumer personal health care, to pet food, to equine health care products. Recently, it became the exclusive dealer for Blue Buffalo, a Wilton, Conn.-based manufacturer of high-end pet food and grooming supplies.

“Our mission is to help other smalland medium-size companies, namely U.S. manufacturers, to create brand awareness overseas and establish or increase existing exports by providing value-added services,” Kosta Di Nova said.

Transcon builds distribution networks for its clients, she said. “Essentially, we perform the functions of an export department for those U.S. manufacturers that are too small to afford or do not have the expertise to establish their own in-house

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Recently, Transcon became the exclusive dealer for Blue Buffalo, a Wilton, Conn.-based manufacturer of high-end pet food and grooming supplies.

Business at the University of South Carolina, said the Ex-Im Bank is important to Transcon’s operations.

“Over the last 20 years, Ex-Im Bank has been a strong driving force behind our growth in exports,” Kosta Di Nova told a Senate panel in April. Transcon has had about $50 million worth of foreign receivables insured by the Ex-Im Bank, and the company has paid $364,000 in premiums.

Since 2006, Transcon has had only one claim, and it was for less than $2,500, she said.

“Ex-Im’s export credit insurance has given us peace of mind and allowed mitigation

S.C. Delivers

export department, or opt to tap into our already established network overseas,” Kosta Di Nova said.

Exporting is not easy, Kosta Di Nova said. “Many people have an incorrect assumption of exporting, associating it with the logistics only of an export transaction.”

However, there are a number of other tasks that must be mastered by exporters, which Transcon takes on for its clients.

Those tasks, Kosta Di Nova said, include negotiating and signing distribution agreements, building relationships with the clients, marketing and advertising their productions in foreign countries, assisting in foreign country product registrations, preparing the entire export documentation package to aid customs clearance and assuming title of the goods and fiscal responsibility.

Transcon also pays manufacturers as soon as the goods leave its warehouse and at the same time – with the backing of the U.S. Export-Import Bank – the company extends credit to qualified international buyers.

Kosta Di Nova, who’s also an adjunct professor at the Darla Moore School of

against both commercial and political risks, and made our foreign receivables eligible for financing,” she said.

One of Transcon’s most recent successes happened in 2011 when the company signed its first pet food distributor in Malaysia, K9K Pet Products, according to the federal agency.

“K9K Pets has purchased two 40-foot containers and a third order is in the works,” Kosta Di Nova said. “We still consider it a launching stage and hope that with increased marketing effort and brand awareness, this will become a very successful business venture.”

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43

S.C. Delivers

Aerospace

By Chuck Crumbo, Staff Writer

S.C. poised to grow aerospace industry

A

irbusâ&#x20AC;&#x2122; decision to join archrival Boeing and build commercial airliners in the Southeast likely means more growth and opportunities for the regionâ&#x20AC;&#x2122;s aerospace suppliers.

The worldâ&#x20AC;&#x2122;s largest airplane companies already share a large number of suppliers who build the various components, pieces and parts that go into the manufacturing of a passenger jet.

Aerospace companies in South Carolina â&#x20AC;&#x153;will definitely benefit from having the new Airbus plant in Mobile, Ala., and Boeingâ&#x20AC;&#x2122;s production facility in Charleston, S.C.,â&#x20AC;? said Sherry Pittinger, of the Clemson Small Business Development Center.

Some suppliers already serve Airbusâ&#x20AC;&#x2122; other models and now are looking for opportunities to work on the France-based plane makerâ&#x20AC;&#x2122;s single-aisle passenger plane,

the A320, Pittinger added. â&#x20AC;&#x153;Suppliers are all over the world, but if they can cut their transportation costs down by setting up shop here, they could save a lot and they could be more responsive to their ultimate client,â&#x20AC;? said Scott Mason, the inaugural Fluor Endowed Chair in Supply Chain and Logistics in Clemsonâ&#x20AC;&#x2122;s industrial engineering department. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s potentially a big win for them.â&#x20AC;?

Aware of what Airbusâ&#x20AC;&#x2122; announcement means to the the stateâ&#x20AC;&#x2122;s aerospace industry, Gov. Nikki Haley and her delegation made it a point to meet with executives of suppliers at Julyâ&#x20AC;&#x2122;s International Airshow in Farnborough, England.

The governor said S.C. officials had about 50 meetings with companies that have facilities in South Carolina as well as others that might be considering expanding to the

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Palmetto State.

The governor sees parallels in the emergence of the regionâ&#x20AC;&#x2122;s aerospace industry and the automotive industry.

She noted that after South Carolina landed BMW in 1992, Alabama followed a year later when Daimler AG announced plans to build a Mercedes Benz assembly plant in Tuscaloosa County.

In April, Boeing Company rolled the first 787 Dreamliner to be built in South Carolina out of its 1.2 million-square-foot final assembly in North Charleston. Less than three months later, Airbus announced plans to build an assembly plant in Mobile, Ala. â&#x20AC;&#x153;What we saw was the automotive industry grow tremendously,â&#x20AC;? Haley said. â&#x20AC;&#x153;What everybody sees now is, if they come to South Carolina they can service bothâ&#x20AC;?

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Airbus’ first production A320 jetliner with fuelsaving Sharkets arrived for an appearance at the 2012 Farnborough International Airshow on July, 10. (Photo/Airbus)

located its U.S. operations facility in Greenville to support Boeing’s North Charleston plant, could be another supplier to Airbus’ Alabama plant. Carbures’ operations in

Europe support several Airbus models and the company plans to explore opportunities with Airbus in Mobile, Pittinger added.

“The real opportunities with having Airbus in Mobile, Ala., and Boeing in South Carolina will be at the tier 2 and tier 3 levels,” Pittinger said. As tier 1 suppliers to Boeing and Airbus relocate to the Southeast, it will increase the demand for additional suppliers, she added.

“With the accessibility of various interstate routes, these suppliers will be able to provide local shipping support, which saves time and money,” Pittinger said.

Companies that might be considering expansion to South Carolina and the region will have to determine if there’ll be enough volume of work to justify the move, Mason said.

“It’s not just one big fish in the ocean, but potentially two big fish,” Mason said.

Chances are there could be plenty of work. Boeing and Airbus have an order backlog of more than 8,000 airliners, enough work to keep them busy for nearly a decade without ever having to sell another jet.

S.C. Delivers

Boeing and Airbus.

Haley added that 180 aerospace-related businesses in South Carolina employ 20,000 people. Just last year, the industry invested more than $100 million in the state and created about 900 new jobs.

“There’s a lot of buzz about that and South Carolina is already getting top grades for being business-friendly. Boeing is raving about us and that’s done nothing but help.”

One supplier to both Boeing and Airbus is GE Aviation, which produces highpressure turbine blades at its Greenville facility for commercial aircraft engines. The company employs 200 people in Greenville.

Airbus’ decision to locate in Alabama does not change GE’s production projections, a spokeswoman said. “But we are experiencing record high production levels for our business – producing 3,400 engines this year which increases to 3,600 in 2013.”

In 2011, GE produced 3,200.

Current suppliers to Boeing such as Adex Machining Technologies in Greenville are in the process of becoming a qualified supplier to Airbus, Pittinger said.

Carbures USA Inc., which recently

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S.C. Delivers

Distribution

46

By Chuck Crumbo, Staff Writer

Web business spurs Belk to open S.C. distribution center

B

elk Inc., one of the South’s largest and oldest department store chains, has opened a 512,000-square-foot distribution center in Union County, to accommodate the company’s growing e-commerce venture.

The facility, which once housed The Walt Disney Co.’s catalog center, is nearly twice the size of Belk’s existing e-commerce distribution center in Pineville, N.C., on the outskirts of Belk’s home base in Charlotte.

“Belk’s e-commerce growth has been very strong, and to accommodate the demand from our customers, we need additional fulfillment space,” said President and Chief Operating Officer John R. Belk.

Belk, a privately owned retailer with more than 300 stores in 16 states, said the venture represents an investment of $4.5 million. It is expected to create 124 new jobs over the next five years.

Belk entered the online retail business in the fall of 2008 — 120 years after founder William Henry Belk opened his first store in Monroe, N.C. The company launched into online retailing with a redesigned and expanded website and began e-commerce operations from the 110,000-square-foot fulfillment center in Pineville.

Belk added 140,000 square feet to the facility in 2011, and that, according to company projections, was enough to accommodate another two years’ growth.

Online sales, though, have outpaced Belk’s game plan. In three years, Belk’s online sales have rocketed by 353%.

In 2009, the first full year of e-commerce operations, Belk reported $20.5 million in online sales. The next year, 2010, sales reached $34.8 million, and last year the company reported Web sales of $72.4 million.

Belk’s total sales revenue, combining stores and online, was $3.7 billion in 2011.

In October, company executives concluded that the retailer would need more space in six months.

The 500,000-square-foot facility near Spartanburg once housed Disney’s direct distribution business.

The facility triples the space Belk has for its rapidly growing e-commerce division.

Belk, which operates a 371,000-squarefoot distribution center in Blythewood, considered nearby sites, then learned about the former Disney center.

The Disney facility, located off U.S. 176 near the Spartanburg County line, already had a conveyor system and storage racks installed. By moving into the building, Belk cut a process that normally takes a year to 18 months and set up an existing building as a distribution center within a few months.

The ribbon cutting took place in late June.

Belk executives visited Jonesville in November and by December the company had signed a letter of intent to lease the Disney facility. In early March, Belk announced it was moving to Union County.

Belk sees e-commerce as an opportunity to expand its brand nationally. It plans to invest $53 million into its online business over the next four years to create a new platform with better functionality, store officials said.

The new distribution center already had a conveyor system and storage racks, reducing the preparation time.

“Belk’s e-commerce growth has been very strong, and to accommodate the demand from our customers, we need additional fulfillment space.”

John R. Belk

President and Chief Operating Officer

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1,000 WORDS

48

All eyes were on Northern Ireland’s Rory McIlroy, 23, as he set records on his way to winning the PGA Championship at Kiawah’s Ocean Course on Aug. 12. McIlroy had the largest margin of victory (eight strokes) and was the youngest winner ever.

(Photo/Leslie Burden)