2015 SCBIZ - Issue 1

Spring 2015

Road to Progress Infrastructure top issue in 2015

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The widening of S.C. 6 across the Lake Murray Dam is an example of a successful infrastructure project.

County Spotlight: Union | Cities Mean Business | S.C. Delivers

Table of

CONTENTS COVER STORY:

ROAD TO PROGRESS 26

Infrastructure is key to economic development, and South Carolina has fallen behind on repairing its roads.

Cover Photo: S.C. 6, widened in recent years, crosses the Lake Murray Dam near Columbia. (Photo/Rob Thompson, SCDOT) Contents Photo: Off-road trucks prepare to haul dirt for construction of the S.C. 6 Connector over I-95 near Santee. (Photo/Jeff Blake)

FEATURE 34

A NEW VISION

Some small towns are reimagining themselves

SPECIAL SECTION: CITIES MEAN BUSINESS South Carolina cities are turning brownfields into cool new spaces.

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DEPARTMENTS

2

6 Bill Settlemyer’s Viewpoint

14 Partnership in Education

7 Upfront

16 Spotlight: Union County

12 Business Accelerator

40 S.C. Delivers

48 1,000 words

SCBIZ Editor - Licia Jackson ljackson@scbiznews.com • 803.726.7546 Associate Editor, Special Projects - Jenny Peterson jpeterson@scbiznews.com • 843.849.3145

From the

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

EDITOR

Senior Graphic Designer - Jane Mattingly jmattingly@scbiznews.com • 843.849.3118 LOWCOUNTRY NEWSROOM Managing Editor - Andy Owens aowens@scbiznews.com • 843.849.3142 Senior Copy Editor - Beverly Barfield bbarfield@scbiznews.com • 843.849.3115

Dear Reader, Roads and highways, bridges and byways are on everyone’s mind as we gear up for 2015.

Here’s a short story about roads: A long time ago, my sister and I used to ride horses on an old farm in Georgia. At the back of a pasture where we rode, there were the remnants of an old highway.

It was crumbling and overgrown, but you could see that once upon a time it had been well-traveled. The painted lines were still visible, but it was on its way into oblivion.

The point of this is, what we have now may not be here tomorrow, particularly if we don’t take care of it. And, yes, I’m talking about South Carolina’s roads and highways. They are our responsibility — we drive on them and we derive the benefits of the economic development they make possible. And the money to repair them must also come mostly from us, though we can ask non-residents to help Licia Jackson pay through such means as the gas tax.

Editor, Read about the state of South Carolina’s infrastructure and proposSCBIZ Magazine als about how to fund fixes in this issue of SCBIZ. We have some treats for you inside. As some of our state’s small towns face decline, we asked the question: Can a town reimagine itself to encourage a revival?

Some are doing just that, and we take a close look at the efforts in Lake City, home of philanthropist and businesswoman Darla Moore.

We’re starting a new feature that focuses on the partnerships between business and education aimed at helping students better prepare for the workforce. The first one looks at TransformSC, an ambitious statewide effort that is already showing results.

Included in this issue is Cities Mean Business, the magazine of the Municipal Association of South Carolina. Its articles focus on how cities are reclaiming brownfields and turning them into something really cool, as well as finding ways to provide underserved neighborhoods with access to healthy, fresh food.

Add to all this a look at the MUSC Innovation Center in Charleston and a spotlight on Union County, and we think you’ll find a lot to interest you. We hope you enjoy this issue of SCBIZ!

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Bill Settlemyer’s

VIEWPOINT Real conservatives raise taxes

Y

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es, the title of this column is meant to get your attention. But bear with me, because I’m serious about taking a fresh look at the role of taxation in a functioning government – any government, for that matter.

In South Carolina, one of our hot button issues (finally) is how to pay to repair and maintain our crumbling bridges, roads and highways. That in itself is an achievement, compared to just ignoring the problem year after year.

As reported last fall in GSA Business, Pete Selleck, chairman and president of Greenville-based Michelin North America, has said that, “The roads in this state are a disgrace,” pointing to a $30 billion shortfall in road funding, adding that, “If that does not get solved then Michelin is going to have to look about further expansion in this state.”

“We’re $30 billion behind on the road system,” Selleck said, citing the S.C. Department of Transportation study of funding needs for the next 20 years. “The ironic thing is that bad roads, which damage tires, are actually good for our business. But that doesn’t make any sense at all. They need to be fixed, and that probably means some combination of a gas tax increase and some other funding source are going to have to be found. Right now, the whole funding thing is out of whack.”

6

Everyone in and out of state government knows that we need to take action on this issue, but few are willing to face up to the most obvious solution, which is to raise the gas tax to a level that will meet ongoing repair and maintenance needs and index the tax annually to adjust for inflation — so the real dollar value of the revenue doesn’t shrink year after year, as it has over the last quarter century since the last time the tax was raised.

Sure, gas taxes are not popular, but every motorist in every state accepts that the tax is just part of the cost of fueling their vehicles. Our elected leaders are getting closer to doing what’s really needed, but they’re not close enough, and the issue is complicated by the “conservative” view that any increase in one tax must be offset by reducing another, as in the current proposal to cut the maximum state income tax rate along with raising the gas tax.

But reality doesn’t always cooperate with ideology. Our state is a relatively low tax state, and we have a multitude of serious needs that can’t be addressed without adequate revenue. The proposed rate reduction would mainly benefit those who are well off and make the tax more regressive, a place we’ve already arrived at by loading more state and local sales taxes on our citizens.

In the Charleston region, where I live,

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One year for $43.50

time after time both the voters and area chambers of commerce have supported local option sales taxes as one of the few funding options available to build new schools for growing communities and carry out major infrastructure projects.

In my view, a “real conservative” is someone who believes that government and taxpayers should be fiscally conservative by prudently and adequately funding needed investments in their communities.

There’s no doubt that chamber of commerce members and voters in most areas of our state lean toward the conservative side, but that hasn’t dissuaded them from supporting and accepting the tax burden that comes with growing their local economies and improving the quality of life where they live and work.

To use a popular phrase, my message to our governor and state legislators is to “Man Up.” Show some personal and political courage —raise the gas tax to an adequate level to maintain our roads and index the tax so we don’t have to fight this same battle over and over again.

Bill Settlemyer bsettlemyer@scbiznews.com

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UPFRONT

regional news | data

Tourism forecast: Golf, blue skies and a giant roller coaster

S

eems like nothing but blue skies are in the forecast for South Carolina tourism in 2015. The year 2014 “will be written in the books as memorable and record-setting,” and the improving economy should carry that success into this year, says Duane Parrish, director of the state’s Department of Parks, Recreation and Tourism.

The department recently released some numbers from November 2014, the latest available. Admissions taxes brought in $3,169,382 in November, up 45% from the previous month and trending a 9.7% increase for the fiscal year to date. State parks revenue for the month was up 24% over November 2013, and up 10% year to date. Tourism is a $15 billion-a-year engine for the state.

What else is fueling growth? Some attention from The Golf Channel, which filmed a season of “The Big Break” on Myrtle Beach courses, no doubt has attracted some visitors, Parrish said. And coming up this spring is the new giga coaster Fury 325 at Carowinds, which sits on the Carolinas border.

Photo/Carowin

ds

FAST FACTS | Education and Workforce In this issue SCBIZ begins a new series on partnerships between business and education.

The first to be featured is TransformSC, a statewide effort. Here are some facts about S.C.

32%

8th-graders not reading at grade level

22%

Students not graduating from high school

Page 14

41%

High school students entering two-year college who require remediation Source: TransformSC

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17%

3rd-graders not reading at grade level

Read more on

7

UPFRONT

$2.6 million awarded in S.C. Innovation Challenge grants The South Carolina Department of Commerce has awarded $2.6 million in Innovation Challenge grants to 19 organizations statewide. The purpose is to further innovation, entrepreneurship and technology-based economic development.

“Innovation and entrepreneurship are critical components to the success of our economy,” said Secretary of Commerce Bobby Hitt.

The S.C. Innovation Challenge asked for proposals for projects that focus on techbased economic development, entrepreneurship and innovation through university collaboration, local government participation or public-private partnerships. A project could be awarded up to $250,000 in grant funds, with a required dollar-for-dollar match of non-state-appropriated funds.

The projects affect 12 of South Carolina’s 46 counties, with several having statewide reach. A number of the winners have been featured in SCBIZ magazine’s Business Accelerator section.

Charleston Digital Corridor Foundation — Flagship3 Incubator (Rendering/Rush Dixon Architect)

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The grants were awarded to:

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• The 5th T Innovation Group, Conway Innovation Center, a technology center in Conway that is part of the Clemson University Technology Villages program, $150,000.

• Charleston Digital Corridor Foundation — Flagship3 Incubator, an expansion of the corridor’s technology hub and the anchor of Charleston’s new Innovation District, $250,000.

• City of Anderson — e-Merge@the Garage programs, the city’s technology and entrepreneurship center supporting startups, $125,000.

• City of Spartanburg — Project Hub relocation and expansion, a maker space community tool share and meeting space, $50,000.

• Florence Downtown Development Corporation — North Dargan Innovation Center, a business incubator supporting entrepreneurs and offering technology training, $150,000.

• Grand Strand Technology Council— Startup.SC, fostering technology start-

•

•

•

•

•

ups in Horry and Georgetown counties, $100,000.

Greenville Chamber of Commerce—NEXT Ecosystem Acceleration, offering new infrastructure and entrepreneur-targeted facilities and services. $250,000.

The Harbor Entrepreneur Center, creating collusion throughout the entrepreneur community in Mount Pleasant, downtown Charleston and Summerville. $250,000.

Hartsville Community Development Foundation-Duke Energy Center for Innovation Phase III, a Clemson University Technology Villages incubator in downtown Hartsville, $100,000.

The Institute for Leadership and Professional Excellence at Columbia College — S.C. Women’s Entrepreneurship Network, providing assistance to women-owned startup and growth businesses through a statewide business center network, $100,000.

IT-ology—PRISM, to expand IT-ology’s Cyber Saturday career interest program for middle and high school students to new locations in the state, $100,000.

Pickens Revitalization Association—Pickens Innovation Center, a Clemson University Technology Villages program helping entrepreneurs in downtown Pickens, $50,000.

Rock Hill Economic Development Corporation—Knowledge Park Innovation Center, Phase II, developing

•

•

•

•

•

•

technology talent and growing technology-intensive businesses, $250,000.

Santee-Lynches Regional Council of Governments—Santee-Lynches Ecosystem for Enterprise Development, offering support services for entrepreneurs through a virtual hub and events, $20,000.

SOCO, Columbia’s Creative Community, a Columbia-area hub that fosters design and development companies and talent to support the entrepreneurial community, $100,000.

S.C. Biotechnology Industry Organization—SCBIO Life Science Startup in a Box, helping entrepreneurs move bio and life sciences technology to market, $100,000.

S.C. Governor’s School for Science and Mathematics Foundation— ITEAMS Xtreme and CREATEng, expanding talent-development summer camps for middle-school students to five additional counties, $225,000.

University of South Carolina Aiken—Aiken Innovation Project, building a network of support for entrepreneurs as well as development of an angel investor network, $80,000.

University of South Carolina/ Columbia Technology Incubator— Columbia Startup Hub, supporting entrepreneurial ventures and commercialization of research, $200,000.

Source: S.C. Department of Commerce

UPFRONT

What we say, what we do While a large majority of drivers say they support laws restricting cellphone use while driving, they certainly aren’t curtailing their own phone use, a survey by State Farm found.

The company’s sixth annual Distracted Driving Survey, involving about 1,000 drivers, found a steady decrease in the number of those talking on hand-held phones while driving. But the use of hands-free phones by drivers is on the rise.

Drivers say they are more likely to talk on their phone while stopped at a red light or driving on an open highway. They’re much less likely to use their cellphone in snowy or rainy weather, at night, in a construction zone or school zone or in heavy traffic.

The survey also found: • Smartphone ownership is growing, with 80% of drivers reporting they own one, up from 52% in 2011.

• Smartphones mean new distrac-

tions, with a corresponding increase in drivers accessing the Internet, reading or answering email, using a navigation system and reading social media.

In places where laws restrict drivers from using cellphones for texting or calling, the laws are enforced very little or not at all, survey respondents reported.

Source: State Farm

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UPFRONT

Uber gets reprieve to operate in S.C. Riders in four South Carolina cities have access to Uber for their transportation needs after the state’s Public Services Commission granted it a short-term certificate to operate through June 30.

The certificate was approved after a bill was introduced in the Legislature that would, if passed, allow Uber and other transportation companies to operate in the state.

Uber is a San Francisco-based company that enables passengers to request rides via an app that connects them with individual drivers. It is available in Charleston, Columbia, Greenville and Myrtle Beach. When it began offering service in South Carolina cities last summer without getting approvals, it sent agencies and governments into a regulatory frenzy.

The proposed bill would create a legal distinction between taxis and transportation networking companies such as Uber or Lyft. It would require Uber to get a permit from the Office of Regulatory Staff, pay a permit fee and have liability insurance and background checks for its drivers.

Chris Bernat operates one of the fabric printing machines at Vapor Apparel. (Photo/File)

NEW ECONOMIC DEVELOPMENT Here are announcements made in South Carolina since Nov. 5, 2014 COMPANY

COUNTY

INVESTMENT

JOBS

The Recon Group

Cherokee

$1.3M

248

Nestle’ Waters North America

Chesterfield

$40M

40

Zapp Precision Wire

Dorchester

$30M

20

SPF North America

Greenwood

$12M

15

Kiswire

Newberry

$30M

45

Peak Corp.

Clarendon

$6.6M

59

Fox Farm Soil and Fertilizer

Anderson

$6.9M

27

York

$1.5M

11

Quality Farms

Filtration Group

Marion

$1.9M

27

Precision Southeast

Marion

$16.6M

140

Standard Textile

Union

$5M

35

Mankiewicz Coatings

Berkeley

$15M

15

Hubner Manufacturing

Charleston

$8.6M

50

Portucel, S.A.

Greenwood

$110M

70

Reinicke Athens

Laurens

$4.5M

30

CCL Label

Laurens

$30M

98

Cox Industries

Orangeburg

$11.2M

60

PecTec Corp.

Spartanburg

$2M

15

Kobelco Construction Machinery

$41M

131

$163.8M

440

Union

$1.3M

114

Lancaster

$22M

650

Calhoun

$4.2M

105

Rite Aid

Spartanburg

$90M

600

Polydeck Screen Corp.

Schaeffler Group USA Vapor Apparel Movement Mortgage www.scbizmag.com

The Fitts Company

10

Spartanburg Chesterfield, Spartanburg, York

Spartanburg

$12M

40

Haddon House Food Products

Chester

$4.6M

55

3S International Corp.

Laurens

$15M

45

Source: S.C. Department of Commerce Photo/Uber

The South Carolina Women’s Business Center is making progress toward its goal of covering the state, as it has opened a new office in Columbia, with Courtney Young as business counselor.

The Women’s Business Center began in 2011 as a program of the Center for Women in Charleston. Funded in part by a grant from the Small Business Administration, it started with a business counseling office in Charleston and branched out into Greenville.

Young, with more than 10 years of experience as an entrepreneur, will offer free business counseling for women who are starting or growing their own businesses. A graduate of College of Charleston in corporate communications, Young earned a master’s in communication management from Webster University. She owns a marketing and public relations business in Columbia.

“This is something that is needed in

this market,” Young said. The Columbia office of the Women’s Business Center will offer workshops, business counseling and networking events, just as the other offices do. The workshops and some networking events require small fees to attend, but the counseling in areas such as business plans, marketing and finances is free.

The new office is on the Columbia College campus, at 4704 Colonial Drive. Hours are by appointment, and clients are asked to attend the “Entrepreneurial Readiness” workshop as a first step.

For more information, see www. c4women.org/scwbc.

The Charleston office is led by Christie MacConnell, director of the S.C. Women’s Business Center. Marnie Schwartz-Hanley is the business counselor in the Upstate. In fiscal year 2014, the center offered 66 workshops, training for 784 clients and one-onone counseling for 257 clients.

UPFRONT

S.C. Women’s Business Center adds Columbia office

“This is something that is needed in this market.”

Courtney Young

business counselor, South Carolina Women’s Business Center

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BUSINESS ACCELERATOR

Business Accelerator

Bioscience Boom

Science-based startups thrive at SCRA MUSC Innovation Center

By Jenny Peterson, Staff Writer

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n Charleston, several ambitious startup companies are hoping to discover the next big breakthrough in science.

They include: • Mitochem, a company studying ways to treat blindness in cancer patients; • Mitohealth, a screening service for the pharmaceutical industry to identify toxins; • Iverson Genetics Diagnostics Inc., which is creating genetic-based testing for early disease detection.

These bioscience companies face the same hurdles as other startups, but their industry poses a unique challenge: a need for lab space and specialized scientific equipment that is often very expensive.

Enter the SCRA MUSC Innovation Center, with lab space for biotech, biomedical and pharmacy startups on upper Meeting Street in downtown Charleston. It was opened in 2009 by the SCRA applied research corporation, which invested $6.5 million into the facility.

The MUSC Innovation Center leases 11 dedicated labs and offices, outfitted with equipment that many startups could not afford.

“Many companies can get money for research, but can’t afford the scientific pieces they need to do their research,” said Randy Cutts, facilities manager for SCRA. Many companies also have special environmental requirements and need access to labs that can handle hazardous and biohazard waste.

At the innovation center, which is a “level 2” lab space, each tenant pays a flat rental rate at $45 per square foot of lab space, with several size options for secure office space as well as meeting areas. Tenants have 24-hour

Dr. Christopher Lindsey, director of chemistry with MitoChem Therapeutics, uses lab space at the SCRA MUSC Innovation Center in downtown Charleston. (Photos/Jenny Peterson)

access to the center, and all utilities, including electricity, are covered in rent.

“These labs were built specifically to support the biomedical industry,” said Marvin Davis, vice president of property and asset management for research and development facilities at SCRA. The facility serves startup companies in their second phase of development.

“It’s for those that are beyond concept and prototype and are now in production mode,” Cutts said.

While the center bears the Medical University’s name and partners with it for services, the innovation center isn’t a research university. The goal is for each startup to enter the marketplace with a new product, device or patent. Nearly two dozen companies have passed through the center since it

opened. There’s a waiting list as more space opens up.

One success story is Immunologix, a biotechnology firm that uses human tissue to study disease treatments, which got its start at the innovation center in 2011.

It was acquired by Intrexon, a privately held synthetic biology company. Clients include pharmaceutical companies that use those antibodies to study disease treatments. The president of Intrexon’s protein production division said the global market for therapeutic and diagnostic antibodies is expected to top $40 billion.

The innovation center is currently at capacity with eight tenants, including researchers from the College of Charleston School of Science and Medicine as well as MUSC.

BUSINESS ACCELERATOR

SCRA invested $6.5 million in the state-of-the-art research and business facility on Meeting Street.

Cutts said the innovation center was built by SCRA when the biotech accelerator in Greenwood closed and the space was absorbed by the Greenwood Genetics Center.

The center was purposefully designed to be efficient and secure. All the labs comply with safety standards, including badge-only access and backup generators.

The innovation center is self-sufficient and self-funded, and SCRA offers support mentoring and can make investments through SCRA’s capital funding arm, S.C. Launch.

“Lots of brilliant people have a lot of research ideas and this is a place to incubate their ideas and bring them to market,” Cutts said.

BY THE NUMBERS 11

Number of lab spaces at the MUSC Innovation Center

2

Approved lab level, which can contain hazardous and biohazard materials

Rent per square foot of lab space

$6.5 million

SCRA investment in the facility Source: SCRA

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$45

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PARTNERSHIPS IN EDUCATION

Partnerships in Education

TranformSC’s goal:

Retool education to prepare every student

By Licia Jackson, Editor

www.scbizmag.com

T

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ransformSC is a grass-roots effort to bring about a true transformation of South Carolina’s primary and high school education system.

“The system we have was developed decades ago and doesn’t reflect the reality of life,” said Pamela Lackey, TranformSC co-chair and state president of AT&T. “We have new kinds of technical tools, and we solve problems together as teams and not as individuals sitting at desks.”

A business-driven effort to produce high school graduates who are ready for their next step in the 21st century, TransformSC is under the aegis of the South Carolina Council on Competitiveness. Why did business get involved? Because at the end of the day, businesses employ those graduates, said co-chair Mike Brenan, state president of BB&T. Lackey and Brenan worked very hard to get every constituency involved in the statewide effort to retool education. “We excluded no one – teachers, superintendents, businesses, Molly Spearman (new state superintendent),” Brenan said. TransformSC is being built from the ground up with educators – not enacted by legislators nor coming from top administrators.

A profile of the ideal graduate was developed, focusing not just on knowledge but on skills such as teamwork and problem solving. The profile also includes soft skills such as work ethic, perseverance and interpersonal skills.

The business community told TransformSC to deliver a graduate with knowledge, ability to learn, and life skills and “we can teach them what they need to know,” Lackey said.

So far, 37 schools across the state have joined in TransformSC’s efforts. The first school year of the project was 2013-14, with

Children in a multi-age classroom (ages 3, 4 and 5) work on math skills at Lexington 4 Early Chilldhood Center in Swansea. The students have shown a 10% increase in math progress. (Photo/TransformSC)

some improvements in data already.

What do these schools do differently?

Here are their innovative practices: • Real world learning: integrating a variety of subjects to use projectbased learning to solve real-world problems.

• Anywhere, anytime instruction: combining face-to-face and digital instruction, which gives teachers the flexibility to tailor learning to the individual student.

• Real-time information: fully integrating technology to give parents and students a continuous assessment of the student’s progress; teachers can use this feedback to

provide extra help where needed.

Students advance when ready: real-time information and flexibility of digital content allow students to progress at different rates in the same classroom. Those who are struggling receive help, and those who learn quickly can move on.

In an example of project-based learning, students at Saluda Trail Middle School in Rock Hill designed a sleeve that they can wear to keep warm in the classroom, avoiding the need to carry bulky jackets or make trips to their lockers. “When you have project-based learning, you have a project so you have fun and learning in the same thing,” said one seventh-grader. “So you •

Mission

A teacher helps pupils at the Lexington 4 Early Childhood Center in Swansea, a full-day Montessori-model program that is participating in TransformSC. (Photo/TransformSC)

Profile of the graduate

World Class Knowledge: Rigorous standards in language arts and math for career and college readiness; mastery of multiple languages, science, technology, engineering, mathematics (STEM), arts and social sciences World Class Skills: Creativity and innovation; critical thinking and problem-solving; collaboration and team work; communication, information, media and technology; knowing how to learn Life and Career Characteristics: Integrity, self-direction, global perspective, perseverance, work ethic, interpersonal skills

Led by

Dr. Peggy Torrey, director of education and workforce initiatives, South Carolina Council on Competitiveness; Pamela Lackey, state president of AT&T, and Mike Brenan, state president of BB&T, co-chairs For more information: sccompetes.org/transformsc

Some early results Cougar New Tech, Walterboro

80

Whittemore Park Middle School, Conway

98.8

Ninth-graders immersed in project-based learning

90%

Decrease in discipline referrals

2 years 9 months

Poverty index

100%

Of sixth-graders received a laptop with dashboard to measure progress

Increase in average reading level

22

Students mastered sixth-grade math standards early and moved on to seventh-grade math Source: TransformSC

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never really forget it.”

Saluda Trail has been honored as a P21 (Partnership for 21st Century Skills) school nationally, and four TransformSC districts have been inducted into the League of Innovative Schools. The four are Horry County Schools, Lexington District1, Spartanburg District 7 and York District 3.

A number of businesses are actively working with TransformSC, Lackey said, including banks, manufacturers, insurance companies and the S.C. Chamber of Commerce. Some provide funding for teacher training or equipment. Others serve on the steering committee or support schools in their local area.

An important step is finding ways to get teachers out into the businesses themselves so that they can see the kind of work their students will be doing.

TransformSC grew out of an initiative of the state board of education and found a home with the Council on Competitiveness. “This really is a competitiveness issue,” Brenan said. “It’s a job creation issue.”

The idea is to refocus the first group of schools, and then take those innovative practices all over the state. Action teams develop a research database and resources, define each practice and develop a way to measure implementation, identify quality professional development opportunities, and review evaluation data to check effectiveness of the practices.

“I’m excited about this,” Lackey said.

“This is the first time I’ve seen an opportunity for successful change in the outcome overall . . . We have tools that deliver ways for each student to be successful.”

TransformSC seeks to design new learning models that significantly increase the number of South Carolina graduates who are career, college and citizenship ready. It is a collaboration of business leaders, educators, students, parents and policymakers.

PARTNERSHIPS IN EDUCATION

About TransformSC

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county spotlight

UNION

The historic town of Union represents small town America, where people know their neighbors, says Curtiss Hunter, county tourism director. (Photo/ Union County Development Board)

UNMATCHED INCENTIVES, QUALITY OF LIFE COME TOGETHER IN UNION COUNTY

By Jenny Peterson, Staff Writer

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n the past five years, more than 700 new jobs have been announced for Union County, a quaint, rural area tucked between Spartanburg and Chester counties.

The county has long held a place in South Carolina history in the field of manufacturing. Called the “textile capital of the world” in the 1900s for its large number of textile plants, Union County still boasts an able and ready regional workforce of over 500,000 people within a 45-mile radius.

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Union County By the numbers

Estimated population (2010).......... 28,9 61 Median household income (2009-13) ................................ ..................... $32,5 56 Unemployment rate. ........................... 7.4 % Median home price , City of Union ................................ .....................$85,0 00 Sources: U.S. Cens us Bureau, Sperlin g’s Best Places and Un ion County Development Boar d

COUNTY SPOTLIGHT: UNION Trakas Industrial Park. sits on 164 acres and has a 200,000-square-foot graded, pad-ready site for companies that use a large amount of electricity. (Photos/Union County Development Board)

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Union County has seen big gains in a diversified industrial base, bolstered by its built-in inventory of state-of-the-art manufacturing facilities, large distribution facilities, certified industrial parks and its quick and easy access via four-lane U.S 176 and S.C. 49 to I-26 and I-85, all leading to major hubs such as Charleston, Atlanta and Charlotte.

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Union County’s landscape is teeming with natural beauty and Revolutionary War sites and allows for more elbow room than nearby counties in the Upstate area. Movein-ready industrial parks reach up to 400 acres in size, giving the area an advantage over more congested areas for large investment.

Unique business advantages add to the investment appeal, including multiple county-owned industrial sites and five electric companies competing for business in various parts of the county.

Its many business segments include medical device companies, automotive components, plastics, specialized distribution centers, textiles and renewable energy facilities.

Frank Hart, Union County supervisor, says, “Diversification of our local economy from the textile sector has been key to providing economic stability in the county.”

The county’s largest industrial employers are a Dollar General Distribution Center, Timken bearing manufacturing plant, Gestamp South Carolina automotive stamping and two Milliken woven fabrics plants. Also on this list are ESAB Welding and Cutting, Carlisle Finishing, a Belk e-commerce facility, Haemonetics medical devices and a Sonoco Products plastic plant.

With an incentive package of up to $8,000 in state tax credits per job created for those who qualify, businesses are finding a host of reasons to put down roots in Union County.

Turn-key industrial sites COUNTY SPOTLIGHT: UNION

Above: Union County Speculative Building is being constructed for heavy manufacturing.

Right: Midway Green Industrial Park has been developed with Pacolet Milliken Enterprises.

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A draw for many companies looking to expand or relocate is the availability of move-in ready land and buildings. Union County has three such assets: • Trakas Industrial Park • Midway Green Industrial Park • Union County Speculative Building.

Trakas Industrial Park is a vast 164 acres.

A 200,000 square foot graded, pad-ready site is available for heavy electric power users. Broad River Electric Cooperative is the power provider with a dual circuit 15 kv power line located at the park. Water, wastewater, and gas utilities are also located onsite.

A 60,000 square foot speculative building, constructed for heavy manufacturing is equipped with an adjacent 60,000 sq. ft. building pad. There is additional acreage available for expansion and a large retention pond has already been constructed. Utilities to the building are provided by the City of Union which has large excess water and waste water capacity.

Midway Green Industrial Park, touts high reliability and low cost power. It is served by Lockhart Power Company, a South Carolina investor-owned utility with a generating portfolio of more than ninety-nine percent of its power generated from renewable resources. Additional utility options include landfill gas for generation and direct thermal use.

The Union County Development Board is spearheading the construction of the speculative space and industrial site development and is in charge of recruiting more companies to the area.

Andrena Powell-Baker, the board’s executive director, said a big draw is that available sites in Union County have already gone through environmental studies and are equipped with water, sewer, gas and electricity.

“The due diligence has been done, and the sites are ready for occupancy,” she said.

The sites are either county-owned or the county has an option agreement, which allows for more favorable arrangements and a lower cost of doing business, Powell-Baker said.

Adding to its value proposition, Union County has five electric companies

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COUNTY SPOTLIGHT: UNION

Above: Welding students at the Union County Advanced Technology Center, a partnership with Spartanburg Community College and the University of South Carolina Union. (Photo/ Union County Development Board)

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Left: University of South Carolina Union turns out knowledgeable graduates. (Photo/Everett Leigh)

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competing for business in some parts of the county, so businesses get the best possible price for utility services.

“Electric power is a huge factor, and companies are looking for the best rates,” Powell-Baker said.

Transportation access is also key: Union County is served by two major rail carriers, Norfolk Southern and CSX. It is near two major airports as well as being adjacent to a major corridor with a direct route to Atlanta, Charlotte and the port of Charleston.”

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Skilled and ready workforce With its history of manufacturing and its skilled workforce, Union County has a large number of educated workers. More than 500,000 workers live within a 45-minute drive of the county, and it’s not uncommon for businesses to draw workers from across county lines.

With the Upstate’s growing automotive and distribution clusters, specialized local training programs have been put in place at local colleges in Union County to teach specific and relevant skills such as welding,

mechatronics, and specialized automotive body work.

The University of South Carolina campus in Union turns out skilled and knowledgeable graduates, and there are six colleges and universities within a 45-minute drive.

At the Union County Advanced Technology Center, a partnership with Spartanburg Community College and USC Union, students learn technical job training and general education coursework in a number of disciplines, providing the county with an economic boost and trained workforce, said Kathy Jo Lancaster, site coordinator for Union County Advanced Technical Center and an employee of Spartanburg Community College.

The Advanced Technical Center opened in 2009, and enrolls from 80-100 degreeseeking students each semester. Lancaster said the center has a remarkable 100 percent

COUNTY SPOTLIGHT: UNION

job placement among students enrolled in the Center’s welding program.

“They are going to work in companies such as General Electric, BMW, nuclear construction jobs and local companies like Timken and Gestamp,” Lancaster said.

“Many of these large plants and industries want workers with degrees, and associate’s degrees which are very technical and require mastering highly technical training required in the manufacturing and construction sectors.” Students learn transferable skills in a curriculum such as welding so they can easily shift from one industry to another, depending on where they are needed most.

Companies know that and they hire them quickly, “ she said.

Lancaster said the center works closely with local and regional industries to offer classes for real-world job training. Programs include welding, mechatronics and health care.

“We have such good partnerships with our industrial community. We’re here because of the industry and train our folks specifically to get highly technical and high demand jobs. We align the curriculum to promote a streamlining of educational requirements and expectations across institutions and businesses. Programs are in place at the center to even offer dual credits for high school students interested in advanced manufacturing as a career Kristi Woodall, superintendent of the Union County School District, said students learn about career options as early as middle school in hopes of retaining a strong local workforce.

“Our students begin discussing career

Getting to work Union County jobs and capital investmen t announcements from 2009-2014:

415

manufacturing jobs

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364

distribution jobs

$306.4 million

in capital investment (real property and machinery and equipment) Source: Union County Development Board

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COUNTY SPOTLIGHT: UNION The Union Carnegie Library, above, was named the Best Small Library in America in 2009 by Library Journal. Below, the historic Rose Hill Plantation’s side garden awaits visitors. The plantation house in Union County was built in the early 1800s. (Photos/Everett Leigh)

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paths with their counselors in middle school so they are exposed to the diverse fields available and what education plan is needed to reach their goals,” Woodall said. Students also go on tours of existing businesses.

When a new business locates or expands in Union County, workforce development programs, including readySC and the Upstate Workforce and Economic Develop-

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ment Center, can help assist with recruitment and training

Rich in history, quality of life Picturesque Sumter National Forest encompasses nearly 55,000 acres in Union County. Almost three fourths of the county is located within the forest’s boundaries and there is no shortage of recreational activities

such as hiking, fishing, hunting, boating and camping.

Fishermen enjoy the county’s five lakes, teeming with bream, bass and catfish. Union County is home to the Broad River, Tyger, Pacolet and Enoree rivers.

Union County has a rich history. Settlers first came there in 1749. The town of Union was one of the first towns established in the

COUNTY SPOTLIGHT: UNION

area and played a role in the Revolutionary War. History enthusiasts can explore the county’s many historical sites including battlefields and plantations. Artifacts are on display at the Union County Museum.

Union County’s lifestyle offers a variety of leisure activities. Golf, tennis, youth sports and a host of outdoor recreational opportunities are available. An active arts council features juried and local artists, performances and other events throughout the year.

The Union County Dragway is a thrilling attraction for both drivers and spectators. Car and dirt bike racing events are held year-round.

With a population under 30,000, Union County has plenty of Southern charm and hospitality.

“Union represents small town USA, where people still know who their neighbors are,” said Curtiss Hunter, tourism director of Union County. “I always feel that calm and peacefulness of living in a rural area.”

With a motto that “Union County is the center of everything”—just a few hours to Atlanta and one hour to Charlotte and Spartanburg/Greenville—Hunter said, “We have the best of both worlds here.”

The county offers a low cost of living — the median home price is $85,000, according to Sperling’s Best Places data – which makes it a great value.

Building on success

Top: Rose Hill Plantation in Union County, built between 1828-1832, is open for public tours.

(Photo/Everett Leigh) Bottom: Children wait for a ride to begin at the Uniquely Union Festival , held each year. The event is an attraction for families. (Photo/Union County Development Board)

expand its product line in Union County. It will invest $1.3 million and add 114 jobs.

Hart said the county is making sure that type of investment continues.

“One of our key initiatives this year will be the development of a comprehensive plan which will involve all of the key stakeholders coming together to develop a vision and path for the future,” he said.

Powell-Baker said, “When companies are vetting sites (to locate), there is a list of criteria they look at. The top three are: suitable and available buildings or sites, an able and available workforce and access to good transportation infrastructure. If those are in line, you have a competitive advantage. We want to make sure that Union County is a region that can’t be beat.”

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The Union County Development Board is keeping a strategic eye on the future and actively recruiting targeted manufacturing industries, such as automotive, medical, specialty textiles and advanced materials as well as distribution.

“All of our target industries are industries we know we can support,” PowellBaker said Using a deliberate effort to recruit and showcase its assets has proved to be a winning formula for the county.

Powell-Baker said the development board receives an average of 29 requests for information annually from all over the world with an annual average of five site visits. In January, Vapor Apparel, based in North Charleston, announced it would

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DRIVING www.scbizmag.com

To keep growth on track, S.C.’s

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CHANGE road system must be repaired

By Mike Fitts

Business leaders are driving home the message this year that addressing the state’s infrastructure challenges in a major and sustained way is vital to South Carolina’s economic future.

The Legislature and governor are talking about addressing infrastructure needs in 2015, especially

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the state road system, which many maintain is underfunded. Will all this talk lead to real action?

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INFRASTRUCTURE IN.S.C.

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Year after year, corporate executives list good highway accessibility as the No. 1 factor in selecting expansion sites, according to Area Development Magazine. The case for addressing the state of South Carolina’s roads has been made most strongly by Pete Selleck of Michelin. Selleck, Michelin North America chairman and president, called the state’s roads “a disgrace.”

Selleck spoke out during a visit to the University of South Carolina’s Darla Moore School of Business. “The ironic thing is that bad roads, which damage tires, are actually good for our business. But that doesn’t make any sense at all. They need to be fixed, and that probably means some combination of a gas tax increase and some other funding source are going to have to be found.”

He said that without improvement, Michelin might look outside South Carolina for its future expansions. Michelin employs more than 8,500 people while operating seven plants in the state, according to its website.

While in years past the S.C. Chamber

Construction crews gather to start work on the expansion of U.S. 301. (Photo/Rob Thompson, SCDOT)

of Commerce has had a broad agenda of legislative priorities, this year that list featured just two topics: roads and workforce readiness. According to outgoing chamber CEO Otis Rawl, the grass-roots meetings with business leaders quickly made it clear

that these were the two dominant issues on their minds. “These are the two issues we had predominantly at every one,” Rawl said.

“We were literally out in 30 minutes.”

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INFRASTRUCTURE IN.S.C.

Urban Dia mond

The urban diamond m an traffic flow at I-26 and ages the U.S. 378 in West Colu mbia. This configuration allow s two lane s on each side to ma ke opposin g left turn at the sam s e time in a compresse space. (Ph d oto/Rob Th ompson, SCDOT)

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INFRASTRUCTURE IN.S.C. Construction work gets underway on U.S. 601, a major highway cutting across the center of South Carolina from north to south. (Photo/Rob Thompson, SCDOT)

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INFRASTRUCTURE, from page 28

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On roads, the chamber is advocating for a comprehensive road funding solution that sets priorities, Rawl said. He knows there is likely to be a huge debate over ways to address a funding shortfall that has been estimated by the S.C. Transportation Department at up to $42 billion. For now, the chamber is not promoting a particular solution but wants to emphasize to lawmakers that businesses see the problem as immediate and a possible barrier to their prosperity.

Poor roads make it more difficult for South Carolina to promote growth of the distribution and logistics cluster. Delays are expensive for companies, Rawl said, especially since today’s businesses often use just-in-time delivery. “The rubber has got to be at Michelin at the right time,” Rawl said.

Businesses in South Carolina know how vital transportation is to them, especially their connection to the Port of Charleston, Rawl said. The allocation of federal dollars has allowed a study of deepening Charleston harbor to begin, and the state’s congressional delegation is working to ensure that the money to expand the port continues to

Workers drive pilings during construction of a bridge over I-95. (Photo/Rob Thompson, SCDOT)

make it into future budgets.

As the port accepts bigger ships after the harbor is dredged, then that traffic will crowd onto our roadways. The state is just not ready for another half-million trucks on the roads and has only a few years to

prepare, Rawl said.

The timeline for that growth through the port is accelerating, with a more likely window of 2018-2020. Planners had assumed that that surge of cargo would come around 2022.

A national highway research group put some striking dollar figures on the costs that South Carolinians pay for the condition of the state’s highways. According to TRIP, a Washington-based transportation research group: The cost of poorly maintained roads to the state’s drivers is about $3 billion annually, as a result of vehicle damage, crashes and unnecessary delays, among other factors.

That cost per driver could be as much as $1,250 per year.

Across the state, 46% of major roads are in poor condition, an increase from the 2008 estimate of 32%.

The TRIP study was presented in South Carolina by the S.C. Alliance to Fix Our Roads, a nonprofit advocating for more repairs and construction. Its membership includes numerous companies in the sectors of construction and transportation, along with industry groups that rely on the roads.

T

he numbers on the needs of South Carolina’s roads are daunting, and lawmakers are looking at a variety of ways to fill that void.

The S.C. Department of Transportation estimates that with the current funding formula the state faces an annual $1.5 billion shortfall through the year 2040. Why so much? One reason is that South Carolina has one of the largest networks under state control in the country, despite the state’s size. County networks are relatively small by comparison.

Another feature that many lawmakers agree on is the need for changes in oversight of the state’s highways. Gov. Nikki Haley is leading calls to revamp the Transportation Department to make it more transparent and efficient.

Some lawmakers also are wondering whether the state needs the Transportation Infrastructure Bank Board, a separate panel that approves funding for major projects.

Here are some of the options being considered to make up the recurring deficit in road funding: • Gov. Nikki Haley has supported a 10-cent increase in the state’s gasoline tax over three years. The gas tax is one of the nation’s lowest, now set at 16.75 cents per gallon. However, Haley said she would support that tax increase only if the state’s income tax rate is cut from 7% to 5% – which some lawmakers fear would cut more than $1 billion from the state’s general coffers when fully phased in.

• A House bill also proposes boosting the dollars generated by fuel in a different way, with an increase on the tax paid by wholesalers. Its backers argue that this would raise revenue without causing pain for consumers.

• House lawmakers also are debating transferring thousands of miles of roads to county control, while assuring local leaders that money to maintain them also would be forthcoming.

• The state currently caps the sales tax on a car purchase at $300, much lower than neighboring states. Lawmakers are debating raising this cap, a move opposed by many auto dealers.

• The state could continue to use general fund dollars for additional road work when there is a budget surplus. Haley urged the Legislature in 2014 to use about $100 million for roads and bridges.

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FACING THE MATH ON ROADS

INFRASTRUCTURE IN.S.C.

Rick Todd, president of one member group, the S.C. Trucking Association, believes that there’s enough emphasis on roads at the Statehouse to get broad legislation through. That will take a lot of effort, he expects, because of the differing opinions in the House, Senate and governor’s office.

“This is going to be a three-way baby,” he said.

Todd believes that any broad legislation on roads will have to address some reforms in the funding process, including in the structure of the S.C. Department of Transportation. Such a revision will be politically necessary for the bill to pass, he said.

The trucking association’s own members have decided that the time has come for the state to act, even if that’s going to cost them more, he said. “They are reconciled that the state’s road system needs money.”

In her State of the State address, Haley sought a 10-cent increase in the state’s gas tax, now one of the nation’s lowest. But she said she would accept such an increase only if offset by a major cut in the state’s income tax rates.

That major tax cut has spurred opposition from many in the Legislature including Hugh Leatherman, chairman of the powerful Senate Finance Committee. He said that the governor’s plan would take too much money from the state’s general fund, needed to pay for such vital functions as education.

“I have no interest whatsoever in a BandAid,” Leatherman told business leaders in Columbia, adding that he’s looking for a sustainable revenue source for the state’s road system. “If we are going to fix it, we’re going to fix it completely.”

While many are talking about the road situation finally being addressed this year, two other topics could tie the Legislature into knots for weeks, leaving less time for a roads compromise to be debated and passed.

Lawmakers and Gov. Haley have come back to Columbia with a major priority of reforming the ethics laws under which they serve. That impetus is strengthened by the presence of a new House speaker – and the downfall of his predecessor. Jay Lucas, R-Darlington, has been elected speaker to replace Bobby Harrell of Charleston, who

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INFRASTRUCTURE IN.S.C.

S.C. ROADS PROBLEM IN NUMBERS Here are some numbers that show the challenges to South Carolina’s transportation infrastructure: Another

84%

10%

goods shipped from South Carolina go by truck

$156 billion

in goods are shipped from sites in S.C.

South Carolina DRIVER’S LICENSE

$168 billion

in goods are shipped to sites in S.C. (mostly by truck)

DL

3.46 out of 4.7 m il l io n

carried by courier or multi-mode delivery (including trucking)

m i l l i on

are licensed drivers in South Carolina

49 billion number of vehicle miles traveled per year in South Carolina

=

1,967,792 trips around the planet

Additional vehicle operating costs (per year) Charleston Columbia GreenvilleAndersonSpartanburg

$294

$1

$362

Every spent on highway, road and bridge improvements

$405

% of major urban roads in poor or mediocre condition Charleston Columbia

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GreenvilleAndersonSpartanburg

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37% 36% 48%

=

$5.20 in

savings such as

• reduced vehicle maintenance costs • reduced delays and fuel consumption • improved safety • lower road maintenance costs • reduced emissions due to better traffic flow Source: Federal Highway Administration

$1,100,000,000 cost of SERIOUS traffic crashes in South Carolina in which roadway features were likely a contributing factor Source: S.C. Transportation by the Numbers, a study by TRIP, a national transportation research group Infographic: Emily Matesi

INFRASTRUCTURE IN.S.C.

Workers make repairs to an I-77 bridge over Celanese Road in Rock Hill. (Photo/Rob Thompson, SCDOT)

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was investigated and later indicted for ethics violations.

In the wake of Harrell’s fall, legislative leaders have stated publicly that new ethics laws must be passed this year. Many lawmakers and the governor have asserted that the public’s confidence is at stake.

“It is both our opportunity and our duty to restore to the people of South Carolina their faith in their government,” Haley said at her inauguration. “This is not about us. It is about them.”

Another challenging issue that could take the momentum away from infrastructure: education. There are a multitude of plans for education being debated.

The state Chamber is telling lawmakers that the state risks its economic growth if companies continue to have issues attracting enough qualified employees. Things must improve soon, Rawl said, or the state’s reputation will be damaged if “word gets out that we can’t provide a qualified workforce.”

The workforce issue may fade into the background as the Legislature considers plans to meet the challenge handed down by

the state Supreme Court in November. The court ruled in favor of a group of poor, rural districts that first filed suit 21 years ago, arguing that the state was not meeting its constitutional obligation to their students. The court’s ruling challenged school districts and lawmakers to work together to improve the prospects for these students.

Sen. John Courson, R-Richland, said, “I think it’s going to be a drawn-out process.”

Courson, chairman of the Senate Education Committee, noted that the court has taken years to hear the case, even as new education policies have been put in place.

While new highway funding faces a twisting road in this year’s Legislature, the new speaker said that he and his colleagues know that the status quo is not addressing the problem.

“The longer we wait, the longer we do nothing, the cost of fixing our system continues to grow. We’re merely managing the decline of our system,” Lucas said. “We’re going to gradually get to the point where we are not going to be able to bring back our road system.”

Chuck Crumbo, editor of the Columbia Regional Business Report, contributed to this report.

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Reimagining small towns

Natives come home to create new template for Lake City

By James T. Hammond | Photography by Jeff Blake Lake City residents often talk about “crossing the tracks” to describe change and moving outside their comfort zone.

It’s an apt metaphor where a busy railroad line through the center of this Florence County town has long marked a divide along racial and class lines.

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REIMAGINING SMALL TOWNS www.scbizmag.com

Visitors to ArtFields last year check out ‘Tree of Life’ by Kirkland Smith of Columbia in the 2013 Winners’ Gallery.

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As this traditional marketplace for tobacco and agricultural products slowly declined a generation ago, the former white-majority town changed its racial and socio-economic profile as the white population moved across the tracks, and outside the city. Incomes shrank as manufacturing plants making women’s garments, zippers and copying supplies closed.

A study of retail sales patterns in Florence County showed that Lake City merchants lose $118 million in sales annually that “leak” to larger retail centers such as Florence.

And the town’s 1920s-style architecture became frozen in time, largely because Lake City and its surviving businesses had no money to update the look of its downtown area.

The best and brightest youth too often left for better opportunities in larger cities and other states. Lake City entered a decades-long slide similar to dozens of small, rural communities across South Carolina in the second half of the 20th century.

Fast-forward to today: Optimism is on the rebound in Lake City, fueled by the

return of some natives who are investing their time and money in an experiment they hope will create a new template for the renaissance of South Carolina’s rural communities.

One friendship that is driving Lake City’s revival started when the local schools were racially integrated in the 1970s. Lovith Anderson, a student leader in the African American community, made common cause with Darla Moore, the daughter of a local educator and a student leader in the white community.

“We became friends in 1971, the first year of full integration of the schools,” said Anderson, who is now Lake City’s mayor.

“We always had a healthy respect for each other. We always trusted each other. Her father, Gene Moore, was a local school principal, and he was always fair, a leader setting the tone for progress.”

“That is how I see the role for myself and Ms. Moore, progressive,” Anderson said.

Darla Moore is today a leading philanthropist in the state, and makes her home outside Lake City, on the farm once owned by her grandfather. The farm is being

transformed into a vast botanical garden, complete with a conference center where Moore can meet with collaborators on her many philanthropies.

Both Anderson and Moore left Lake City in their youth, but have returned to call the region home.

Moore has been a leader and a generous benefactor to Lake City in its efforts to create a new economy that can once again provide well-paying jobs for its citizens, as well as attracting people to relocate there for evolving opportunities in the out-of-theway small town.

Here are a few of their accomplishments so far: • ArtFields, an annual, nine-day art exhibition featuring 400 art pieces competing for $100,000 in prize money.

• The Bean Market, a former marketplace for green beans that supplied markets up and down the Eastern Seaboard. Today it has been repurposed as a civic center and events venue.

• Jones-Carter Gallery, a former

REIMAGINING SMALL TOWNS

The opening ceremony of ArtFields 2014 draws people of all ages. An estimated 10,000 to 12,000 attended the nine-day festival.

Lake City is not the only South Carolina town seeking to reinvent itself after agricultural enterprises or textile mills closed their doors. Some are near larger cities and have reinvented themselves as nearby destinations. Landrum found new life as a center of antique stores, crafts and artisan shops, serving Spartanburg and Greenville. Newberry, with its historic Opera House, became an entertainment center within easy reach of Columbia.

Jim Fields, CEO of the Palmetto Institute, and his team hope to develop a template to help other struggling small towns from the lessons learned in Lake City.

Lake City was at a disadvantage because it is far from large population centers, and off the beaten path of interstate highways and major traffic arteries.

Lake City has one asset, however, about which most communities can only dream: a native daughter who made a fortune in investment banking and now has returned, determined to make a difference in the collective life of her hometown.

So far, Moore’s philanthropies

have invested more than $20 million in various projects in Lake City. The centerpiece of her vision is ArtFields, an arts festival that awards more than $100,000 annually in prizes and attracts artists from throughout the Southeast. This year’s festival will take place April 24 through May 2,

ARTFIELDS 2015

ArtFields, a community celebration of art, will be held April 24-May 2 at various venues in Lake City.

The events include a major exhibit of new art by artists across the Southeast.

Other features are artist talks, art walks, musical entertainment, craft brewing, barbecue, and garden tours and talks.

Prizes totaling $100,000 will be awarded to artists.

Many of the events are free, but some require purchase of tickets.

For more information, check the website, www.artfieldssc.org.

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agriculture supply store that has been repurposed as a Smithsoniancertified art gallery.

• Table 118, an upscale wine bar and eatery specializing in Southern cuisine, with menus that range from game meats to traditional dishes prepared with local, fresh ingredients.

• The Inn at the Crossroads, a 57room boutique hotel on Main Street that will be open for the ArtFields festival for the first time this year.

The vehicle for Moore’s philanthropy has been the staff of the Palmetto Institute, a non-profit think tank she helped create with the aim of improving the business environment, the educational system and the personal welfare of South Carolinians.

Working with town leaders, two non-profit entities have been created that are specific to Lake City. Moore’s work in Lake City is guided by her belief that the hoped-for renaissance is only possible through a variety of public-private partnerships and the rise of a sustainable local leadership class who will carry on the work she has started.

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REIMAGINING SMALL TOWNS

the-art venue owned and operated by the Community Museum Society. Located in a former agricultural supply store, it has been repurposed as an exhibit space certified with the safety and security standards set by the Smithsonian Institution. It recently exhibited renowned Spanish artist Francisco Goya’s Los Caprichos collection, 40 prints that explore relationships between men and women across society. The exhibit was a major artistic event for the region, and would not have been possible without the Smithsonian-certified venue. The exhibit drew more than 8,000 visitors.

Jones-Carter Gallery aims to host three traveling exhibits a year in addition to being a venue for ArtFields. Scheduled Sept. 19 through Jan. 2 is an exhibit of photographs

by Clyde Butcher, inspired by the works of Ansel Adams.

Formerly the second-largest leaf tobacco auction market in South Carolina, Lake City has no shortage of large buildings. The former Ragsdale Tobacco Processing Plant, now known simply as the ROB, has been repurposed as a 20,000-square-foot events venue and one of the sites where ArtFields exhibits will be displayed.

Still on the to-do list is the 50,000-square-foot former Imperial Tobacco drying facility. It is owned by the Lake

Top: Visitors check out works by Jim Arendt of Conway in the 2013 Winners’ Gallery.

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Bottom: ArtFields draws customers to Lake City’s downtown business district, one of the festival’s purposes.

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featuring 400 pieces from some 1,200 entries.

The art works will be displayed in several dozen business and other venues around Lake City’s downtown, a practice that introduces visitors to local retailers and provides a welcome boost to the merchants’ revenues each year.

“For some businesses, the increase in traffic is greater than the Christmas season,” said the Palmetto Institute’s Fields, a principal architect of the Lake City renaissance.

To establish an appropriate venue for ArtFields, the city and county governments and the private philanthropy partners have renovated and repurposed numerous former market warehouses and office buildings.

The Bean Market, once a centerpiece

of a sprawling agricultural business that sent green beans to city markets, is today a 12,500-square-foot civic center and events venue. It was renovated in 2011 with a loan from the U.S. Department of Agriculture, said Ray McBride, executive director of the Community Museum Society, a nonprofit that oversees the Bean Market and other venues and programs.

Moore recruited McBride to join the Lake City team following his career in the U.S. Army and a second career building libraries in cities such as Greenville, Florence and Lake City.

Next to the Bean Market is the Jones-Carter Gallery, a state-of-

“My role is awakening the community. The community must decide if they want to buy in.”

Darla Moore

business executive and philanthropist

capacity to carry on the work remains a top priority.

“Sometimes I get discouraged,” she said.

“We are not there yet, but we are still at it. We have an improving economy and a growing population. We are not in a vacuum. We are a microcosm of everything that’s going on in the country.”

“One of the greatest indicators of success will be confidence in city government.

Money by itself will not solve anything,” Moore said.

Mayor Anderson said Moore’s presence

and leadership have been key to the revival of the city.

“This is the greatest assistance the city of Lake City could receive,” Anderson said.

“If not for the assistance of the Palmetto Institute, we would be floundering like many other small towns.”

“The goal is for local people to assume the roles now being staffed by the Palmetto Institute,” she said. “Our goal now is to create a community that will provide opportunities to attract them to return home to live.”

REIMAGINING SMALL TOWNS www.scbizmag.com

City Partnership Council and McBride said the goal is to see it rehabilitated and repurposed in some fashion.

ArtFields was created to draw people to the town who might not otherwise venture there. And it has succeeded: Last year, an estimated 10,000 to 12,000 visited Lake City to participate in the nine-day arts festival.

But the Palmetto Institute CEO said it’s just a beginning to build a sustainable future for Lake City and the surrounding region.

Much tougher challenges include improving education, building up water, sewer and communications infrastructure, and building capacity among local leaders to sustain the vision, Fields said.

One of the partnerships facilitated by the Palmetto Institute is between city governments of Lake City and Columbia.

“Steve Gantt, the former Columbia city manager, comes once a week to work with me,” Anderson said. “The Columbia public works director comes here to share his experience with Lake City, as well as other Columbia officials who have more expertise than we have.”

Carla Angus, a Lake City native and former elementary school principal, joined the partnership as community outreach and education coordinator because she wanted to help make it possible for more young people to stay in Lake City and have wellpaying jobs.

“Many of our Lake City high school graduates just want to get out because there’s nothing to do,” she said. “Now we have a greater chance of bringing them back. They are excited about what they see going on.”

Angus said the last high school reunion drew 1,000 people, attracted by the excitement that ArtFields has created.

“Now we have classes doing things for Lake City. The Palmetto Institute lit that fire,” Angus said. “Pride plays a role. They are gaining an appreciation of where they came from. Darla Moore did not have to come back, but she did and she’s giving back. It started small and now it is exploding.”

Moore said she’s in the Lake City project for the long run. She is candid that many questions remain unanswered and many challenges are yet unsolved. Building local

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S.C. DELIVERS

Ports, Logistics & Distribution

Coastal Conservation League Director Dana Beach, Ports Authority CEO Jim Newsome and Lowcountry Open Land Trust Director Elizabeth Hagood signed a land conservation agreement. (Photos/Liz Segrist)

SPA TO GIVE $5M FOR CONSERVATION ALONG COOPER RIVER

By Liz Segrist, Staff Writer

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G 40

plauded the groups’ Gov. Nikki Haley ap collaboration.

roups often at odds with one another gathered in January to announce that the South Carolina State Ports Authority plans to allocate $5 million to help conserve land along the Cooper River Corridor.

Officials from the Port of Charleston, Lowcountry Open Land Trust, Coastal Conservation League and the Southern Environmental Law Center reached an agreement to protect land, wildlife and waterways.

See CONSERVATION, Page 42

S.C. DELIVERS

CONSERVATION, from page 40 The port also hopes the agreement will help shore up support and resolve the environmental groups’ concerns about the harbor deepening project, which were seen in comments submitted to the Army Corps of Engineers, Charleston District, according to the resolution.

The ports authority board unanimously approved the resolution a few minutes before port officials, environmentalists and politicians gathered for the announcement at Silk Hope Plantation in Huger.

The amount of land that will be protected has not been determined. Elizabeth

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Photo/Andy Owens

42

Hagood, executive director of the Lowcountry Open Land Trust, said the groups hope to leverage the money from the port with additional funding, such as from the state Conservation Bank, to protect more acreage through conservation easements or fee-simple acquisitions.

“The threat is tremendous because this whole corridor is right on the edge of this urban growth boundary,” Hagood said. “If we don’t proactively protect it and do it with a sense of urgency now — that these funds from the port help us do — then we will lose it.”

Hagood said the port’s funding and land conservation efforts are voluntary and go “well beyond” required mitigation plans,

such as those included in the harbor deepening project.

Ports Authority President and CEO Jim Newsome said economic development and environmental groups have to collaborate to yield creative solutions.

Gov. Nikki Haley applauded the port and environmental groups for sitting down together and finding a solution to protect both economic and environmental interests.

“I want you to look at my sister states.

They are not doing this today,” Haley said.

“They’re struggling today. They’re about to spend a lot of money, a lot of time and a lot of effort and be fighting for years to come.

But not us. ... Today is the day we say ‘yes’ to

approval from the Army Corps of Engineers to deepen Charleston Harbor to 52 feet.

The remaining funding will be allocated contingent on the corps’ approval, though Newsome emphasized that he expected full approval of the 52-foot depth. The Army Corps will release its final study this summer.

“This is an important step in finalizing our harbor deepening project and an equally important step in conserving some land that’s vital for the state of South Carolina so that it’s preserved for generations to come,” Newsome said.

The ports authority also plans to award $125,000 to the S.C. Aquarium for the sea turtle public education program and

rehabilitation of sea turtles in Charleston Harbor, according to the agreement.

The funding now requires approval by the state’s Joint Bond Review Committee, which was expected to vote on it soon.

“The harbor deepening project has broad and long-term implications for South Carolina’s economy and environment,” Beach said. “Our goal has been to support the positive aspects of the project while preventing the degradation of two of South Carolina’s greatest assets — Charleston Harbor and the Cooper River. Perhaps the single most important step we can take to secure their health is to protect the watershed of the Cooper River.”

S.C. DELIVERS

conservation and business.”

Dana Beach, executive director of the Coastal Conservation League, said the $5 million will help augment decades of effort toward trying to protect the Cooper River Corridor, noting that it’s important to prevent extensive development along the rivers to preclude runoff, which he said is the biggest pollutant affecting species and vegetation in the waterways.

“Land conservation should be an ongoing agenda item for the business community,” Beach said.

According to the agreement, the Lowcountry Open Land Trust can use up to $2 million prior to the port’s receipt of final

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Staff Report

S.C. DELIVERS

Port

The S.C. Inland Port at Greer provides daily rail service to the Port of Charleston via Norfolk Southern. (Photo/Bill Poovey)

Inland port records 42,555 container moves in first year

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The S.C. Inland Port more than doubled its monthly count of container lifts by the end of its first full year operating.

S.C. State Ports Authority records show container lifts, the number of times cranes moved a container from a truck or moved one from the stacks to a truck, increased from 1,711 in January to 3,741 in December. The highest volume was 4,770 lifts in August.

Officials said the $50 million facility that officially opened in November 2013 now has more than 10 customers. Ports authority spokeswoman Erin Dhand said the authority does not identify its customers for the public.

Dhand said the intermodal facility is exceeding expectations for volumes and

operations. She said the lift count reflects “peak volumes we typically see during fall months, followed by moderation in winter months.” She said ports business usually peaks in the spring and fall.

The inland port provides daily service 212 miles to the Port of Charleston. Norfolk Southern exclusively serves the facility that is positioned along the Interstate 85 corridor between Charlotte and Atlanta. The port website says the rail service “maximizes tonnage moved per gallon of fuel for importers and exporters, helping them save costs and lower their carbon footprint.

The inland port adds an additional benefit, access to empty containers, for regional shippers, who can send trucks to Greer for the containers they need to move their goods.

For 2014, ports records show the number of lifts per month: January 1,711 February 2,201

March 2,515

April 3,498

May 3,732

June 3,471

July 3,577

August 4,770 September 4,689 October 4,678 November 3,972 December 3,741

Total 42,555

By Liz Segrist, Staff Writer

Port S.C. DELIVERS

Ports Authority approves $1.6M terminal work, reports revenue up 21%

T

The Port of Charleston handled 919,500 20-foot containers in December, up 13.2% year-over-year. Average turn time for truckers was 23 minutes. (Photo/Kathy Allen)

of about 23 minutes for all terminals.

The ports authority’s operating revenues for the period ending Dec. 31 were $91 million, up 21% from fiscal 2014. Total expenses were $77 million for fiscal 2015, up 10% from the previous year. Operating earnings

were up nearly 177%, at $14 million.

Break-bulk tonnage for fiscal 2015 was up 20%, at 402,000. About 95,000 passengers came to port, down 6%, and 938 ships docked during the period, up 2% from last year.

Statistics for first six months of fiscal year 2015, July-December

919,500

23 minutes

20-foot containers handled, up 13.2% year-over-year

is the average turn time truckers had for all terminals.

938

About 95,000

ships docked during the period, up 2% from last year

cruise passengers came to port, down 6%

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he Port of Charleston’s North Charleston Terminal is set to receive $1.56 million in repairs and improvements to its wharf to handle the wear and tear anticipated from bigger ships.

The S.C. State Ports Authority board voted recently to award the contract to Rakes Building & Maintenance Contactors LLC of Johns Island to make the improvements and relocate several container cranes from the Wando Welch Terminal.

Construction was to begin early this year with work taking place in phases over the next few years.

The board also approved a contract with Metro Electric Co. of North Charleston to expand surveillance systems and add extra lights and cameras at the Columbus Street Terminal rail yard, which is located near the base of the Ravenel Bridge.

Palmetto Railways recently expanded its rail yard within the terminal to provide additional capacity for BMWs traveling to the Port of Charleston from Greer via rail.

The expansion requires additional security installations, according to the contract.

Construction is scheduled to begin in the first quarter. The award can cost up to $189,000. Metro Electric Co. has previously installed security systems at the terminal as well.

Also during the meeting, board members reported financial and container results for fiscal year 2015 thus far, from July through December.

For the fiscal year, the Port of Charleston has handled around 919,500 20-foot containers — a common industry measurement — up 13.2% from the same period in 2014.

The port moved about 82,000 pier containers in December, up almost 17% from a year ago.

Crane operators had about 41 moves per hour, and truckers had an average turn time

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S.C. DELIVERS

International Business

By Chuck Crumbo, Editor of the Columbia Regional Business Report

15 projects in pipeline from India, Commerce reports

S

taffers are shepherding at least 15 potential projects through the South Carolina Department of Commerce’s pipeline that have been developed through the state’s business ties with companies in India, Secretary Bobby Hitt says.

Hitt said the Commerce Department has been following up with business contacts that were made during the 10-day trade mission to India led by Gov. Nikki Haley in November.

“We’re very confident that we will accomplish what we set out to do, which is to create a great first impression of South Carolina with Indian businesses,” said Hitt, who did not make the trip.

Hitt did not offer further details but said Commerce staffers are planning a follow-up trip in the third quarter of 2015 to continue to cultivate Indian business contacts.

India ranks as South Carolina’s 16th largest trading partner and has a variety of companies – from tire manufacturers to chemical companies – looking to do business with the Palmetto State, Hitt said.

In 2013, South Carolina exports to India totaled $352 million, more than tripling the $110 million in business recorded in 2005.

Haley, the daughter of Indian immigrants, was making her first trip to the country since she was a toddler and generated extensive media coverage and interest while there.

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Mumbai, India. (Photo/File)

46

Prior to leaving for India, Commerce staffers had scheduled 90 meetings in seven cities and six states.

“It sort of snowballed when we got there,” Hitt said, adding that people were approaching the S.C. staffers and asking to schedule meetings before they left the country.

The 18-member delegation eventually attended more than 120 meetings and events involving prospective companies, speaking engagements and gatherings of business leaders, diplomats and educators.

Haley attended 52 of the meetings.

Some staff also represented the state at the Aeromart Summit, a regional air show in Bangalore.

During the trip, Haley and Duane Parrish, director of the S.C. Department of Parks, Recreation and Tourism, met with India’s travel press, promoting the state as a tourist destination.

In one session with more than 40 members of the country’s travel media, Haley pitched everything from the beaches to golf courses, as well as the charm of Charleston.

Members of the mission also explored hospitality interests in India, including workforce training programs, Hitt said.

For example, Greenville-based JHM Hotels, which owns and operates 42 hotels in six states, in August 2011 opened AURO University in Gujarat, India. The school offers bachelor’s and master’s degree programs

in hospitality, culinary arts, IT, law and business in collaboration with the School of Hospitality, Retail and Tourism Management and the Darla Moore School of Business at the University of South Carolina.

Another outcome from the trip could be development of exchange programs between universities in India and the University of South Carolina and Clemson University, Haley said.

India’s universities are interested in automotive research, agricultural and engineering programs at Clemson, Haley said. USC’s work in international business, pharmaceuticals and information technology drew interest.

The delegation included eight staff members from Commerce, PRT and the governor’s office. Other members of the delegation represented economic development organizations and South Carolina companies interested in exporting to India.

About $51,500 in taxpayers’ funds was spent to cover the costs of Haley and state staffers. Representatives of economic development organizations and companies paid their own way.

Haley also was accompanied by her husband, Michael, who paid his own expenses.

Besides Bangalore, the mission’s itinerary included Mumbai, New Delhi, Chandigarh, Amritsar, Hyderabad and Chennai.

“If you want to recruit companies overseas you have to go see them,” Hitt said.

By Bill Poovey, Staff Writer

Spec Buildings

I

This 306,000-square-foot building is the first part of the $20 million spec project underway on White Horse Road. (Photo/Bill Poovey)

The new building expands the company’s industrial portfolio in the Greenville-Spartanburg market to 1.6 million square feet.

Rob Halpin’s Burnham Partners LLC and partner Exeter Property Group are developing the Class A buildings at the White Horse Industrial Center. Halpin said that six weeks into construction of the first building in the $20 million project, the developers were already being approached by prospective tenants.

“We are nearing completion of the first building,” Halpin said. He said the second building “could be finished in four or five months as a result of all the site work being completed for all the 45 acres.”

Speculative building isn’t just happening in Greenville and Spartanburg counties. Anderson County and Cherokee County have joined the spec race with plans for publicly financed manufacturing spec projects.

Oconee County is on the verge of landing a Michelin expansion at an industrial park the county developed among several government-financed, job-creating projects.

Hill and NAIA Earle Furman brokers

Grice Hunt and Ford Borders said automotive continues to be the top attraction but the region’s diversity is growing in the areas of advanced materials, aviation and aerospace, biosciences, logistics and distribution, data centers and corporate headquarters.

“We still see a lot of automotive projects, but it is all over the board,” Hill said.

“I wouldn’t say it’s just Greenville. It is much more regional in terms of the I-85 corridor,” Borders said.

Hunt said there is no sign of any slowdown and he has seen “more spec development over 2014 than we have in years past.

It appears we are in a new market cycle with new owners and new developers … more sophisticated tenants. We have seen a resurgence of manufacturing and business coming back to the United States.”

Hunt said about 1.5 million square feet has already been started. He said prospects are paying higher rates for 30-foot ceilings and new space. “In the past, you were looking at $2.50 to $3.50 a square foot for existing space. Now you’ve got to get $3.50 to $4.50 to make it work on new space.”

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nvestors, real estate brokers and economic developers say a surge in industrial sector speculative building in the Upstate shows no sign of a slowdown after what they are assessing as a record 2014.

While some economists say a slowing global economy may affect demand for relocation and expansion space this year, the spec sector’s movers and shakers say the Upstate has become a hot spot on the manufacturing landscape.

Jim Hill, research manager at the Greenville Area Development Corp., said overall activity is “probably the best it has been since the Great Recession, just the number of projects we see. I don’t see anything on the horizon that would keep us from continuing on a good pace.” He described the spec building in 2014 as “something that we have needed. It starts with spaces.”

In Greenville County, the White Horse Industrial Center being built as a spec project includes a 306,000-square-foot building and a 240,000-square-foot building.

Pattillo Industrial Real Estate is developing the SouthChase project at Fountain Inn, a 205,738-square-foot space that is expandable to 331,093 square feet. Near Pelham Road, Greenville developer Mark Cothran’s 90,000-square-foot Logue Court includes plans for a 110,000-square-foot expansion.

Liberty Property Trust has begun grading land for a 156,000-square-foot warehouse, its fourth building in the Caliber Ridge industrial park along S.C. 101 in Greer. The building is expected to be ready for occupancy in April, and a spokesman for the real estate investment trust has said there is “solid activity” from lease prospects.

Massie Flippin, vice president and city manager for the trust based in Malvern, Pa., said having “direct connectivity” to I-85, close access to the S.C. Inland Port and a spot between Greenville and Spartanburg makes the park a prime location.

There are “quite a few companies in expansion mode right now,” Flippin said.

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Industrial spec building surges into 2015

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1,000 WORDS

48

Hang on — spring is coming!

These tulip magnolias, also known as saucer magnolias, herald the season at Magnolia Plantation in Charleston. (Photo/Kathy Allen)