Columbia Regional Business Report - February 2023

Brewery

Peak Drift Brewing Co. opens new production facilities in Columbia. Page 6 A

Independent bookstore opening soon in Five Points. Page 4

Sentenced

Woman accused of insurance fraud learns consequences.

Page 10

Million mark

CAE flies past 2022 numbers with more than 1 million passengers.

Page 11

At long last?

Company sets up American HQ with aspirations of making flying cars.

Page 7

INSIDE

Upfront ................................ 2 SC Biz News Briefs 4 In Focus: Hospitality and Tourism 16

Hotels 19 List: Alternative and Outdoor

Venues 19 At Work 20 Viewpoint 23

WHERE THE WILD THINGS ARE

A multimillion-dollar renovation project promises to transform the heart of Riverbanks Zoo and Garden into a state-of-the-art animal care facility. Page 12

Victory in retreat

How one couple sought refuge, then found opportunity in Columbia.

Page 16

Health care’s economic ripple effect

Hospital beds across SC regions

The Upstate, Midlands and Lowcountry provide more than 65% of the staffed hospital beds across South Carolina, an analysis of annual federal data shows.

Sources: American Hospital Directory, annual Medicare Cost Report of non-federal, short-term, acute care hospitals as of September 2022

Top 10 grossing hospitals in SC

The following hospital systems posted the highest gross per-patient annual revenue based on federal data reported by the hospitals as of Sept. 27, 2022.

Ten hospitals across South Carolina bring in the largest percentage of the more than $73 billion in gross patient revenue, according to the latest federal data and an analysis by the American Hospital Directory.

South Carolina has 67 hospitals operating as acute care facilities, blanketing urban and more rural areas of the state, data from each hospital’s Medicare Cost Report show. Each non-federal, short-term care acute hospital is required to file the report each year. The latest data was published in September.

Ten of those 67 hospitals grossed more than $43 billion annually, according to the latest data, which is nearly 59% of the total patient revenue collected for the year.

Medical University Hospital in Charleston brought in the most patient revenue at nearly $6.3 billion, followed by Trident Hospital in North Charleston and Lexington Medical Center in West Columbia.

Overall, South Carolina’s hospitals provide 11,239 staffed beds to care for residents and visitors of the Palmetto State. As of September, 2.53 million patient days were recorded in South Carolina acute care facilities for the Medicare Cost Report.

By Andy Owens

Sources: American Hospital Directory, annual Medicare Cost Report of non-federal, shortterm, acute care hospitals as of September 2022.

“When we first saw the site it looked like a horror movie — there were drips and puddles everywhere, and things left behind from when part of the space was a storage facility for a local hospital.”

— Rita Patel

SC Biz News Briefs

GE Appliances to put $50M in Upstate site

GE Appliances, a Haier company, has announced plans to invest $50 million to expand its South Carolina operations with a new distribution center in Greenville County. The expansion is projected to create 45 new jobs over the next five years.

GEA will lease a 584,820-square-foot distribution warehouse at the Augusta Grove Business Park, according to a news release. Provident Realty Advisors Inc., a Dallas-based privately held real estate and investment firm, is the developer for the project.

This new facility is a key investment in GEA’s distribution network, supporting the expansion of manufacturing operations by increasing supply chain capacity to ship and receive appliances from regional production facilities, along with imported finished goods arriving at the Port of Charleston, according to the release.

Additionally, the Greenville facility will allow the company to take advantage of proximity to Inland Port Greer.

The Greenville facility will be GEA’s second South Carolina location, following the opening of its $70 million state-of-the-art water heater manufacturing facility in Camden last year. The company also has manufacturing facilities at its Kentucky headquarters and in Alabama, Georgia and Tennessee.

“The business-friendly climate of South Carolina and Greenville County, and the proximity to Inland Port Greer make this an ideal location to build our newest distribution center in support of our growing business,” said Marcia Brey, vice president of distribution for GE Appliances. “Investments like this allow us to quickly respond to external factors and keep product flowing efficiently throughout our entire network as we grow and enter new product categories.”

The expansion is expected to be complete by the first quarter of 2024.

Medical waste site to open in Summerville

A“first-of-its-kind” health care waste treatment and disposal company is set to open in Summerville.

EcoSteris confirmed that March 1 will be the start date of its “state-of-the art” operations at 112 Fabricators St., according to an EcoSteris news release.

The company claims to be the first facility of its kind nationwide to provide environmental and health care integrated waste treatment and disposal solutions using sustainable technology that meets strict national and international safety standards and regulations, according to the release.

EcoSteris understands that regulated medical waste management is not only an issue of cost and convenience, but it is also a subject of liability, public relations, social responsibility and environmental sustainability, the release stated.

That is why EcoSteris says it is committed to advanced solutions.

With publications in the Upstate, Columbia and Charleston, as well as a statewide magazine, SC Biz News covers the pulse of business across South Carolina. Above are excerpts from our other publications.

Greenville GSA Business Report

Summerville Charleston Regional Business Journal

GE Appliances plans to invest $50M in a new distribution facility in Greenville County expected to create 45 new jobs in the next five years. (Rendering/Provided)

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Christina Lee Knauss, sta writer cknauss@scbiznews.com • 803.753.4327

Krys Merryman, sta writer kmerryman@scbiznews.com • 864.640.4418

Paige Wills, research specialist pwills@scbiznews.com • 843.849.3125

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South Carolina’s Media Engine for Economic Growth

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Account Executives

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Independent bookstore coming to Five Points

By Christina Lee Knauss cknauss@scbiznews.com

Anew independent bookstore will be opening soon in Columbia’s Five Points district.

All Good Books, the result of a partnership between local residents and friends Ben Adams and Clint Wallace, will be opening at 734 Harden St. in Five Points.

Adams, who previously ran Odd Bird Books on Main Street, said the new store is the result of the two friends’ mutual love of books.

“We had been talking for a few years about the possibility of working together if all the right pieces came together,” Adams told SC Biz News. “He had a bookstore and café concept in mind and we both had always been enthu-

siastic about Five Points. We figured it was the best shopping district for something like a bookstore that could attract all ages.”

Adams said Wallace learned about the building on Harden Street last summer. The building is the former site of the Thirsty Parrot, a now-defunct bar.

Creating the space for All Good Books has involved the complete historic restoration of the structure known as the Hair Building, which was originally constructed in 1923. The space is being transformed into a 3,000-square-foot bookstore space. Stucco was removed from the façade of the building to restore its historic brick appearance.

Dewey Ervin Architectural is the architect for the project and McCrory Construction is the general contractor.

“We’ve had to do a lot of work and

renovations on the building since last summer and it’s been coming along really well,” Adams said. “We think it’s in really great shape now.”

Adams and Wallace have been working with store manager Ruth Smyrl to develop the concept for the bookstore and decide what the store will stock.

“We’re trying to be as wide-ranging as possible because we have space for up to between 10,000 and 15,000 books,” Adams said. “We want to highlight local and regional stuff and also offer the selections that other bookstores do. We don’t have an independent bookstore in this part of town, and we really want to try to fully serve customers with a wide-ranging selection.”

All Good Books will also offer a café with coffee and tea.

The owners hope to have the bookstore open by early March.

Dewey Ervin Architectural is the architect for the bookstore and McCrory Construction is the general contractor. (Photo/All Good Books)

Fellowship aims to connect entrepreneurs and investors

Staff Report

Venture Carolina, a nonprofit organization committed to connecting investors and entrepreneurs, has partnered once again with VentureSouth, an early-stage investment organization, and the S.C. Department of Commerce to host the second annual Palmetto Venture Fellowship. This program aims to increase venture capital accessibility for South Carolina-based startups by educating and preparing local investors.

The program consists of quarterly workshops on early stage capital formation and is open to current or aspiring investors looking to gain the necessary expertise to invest in early-stage companies. Topics such as term sheets, valuations, capitalization tables, board governance, exit strategies, and proper due diligence will be covered to equip attendees with the knowledge needed to be successful investors in early-stage companies.

“We are excited to continue our partnership with the S.C. Department of Commerce’s innovation team and VentureSouth

Dave’s Spicy Chicken

Staff Report

Los Angeles-based Dave’s Spicy Chicken will be opening its first South Carolina location at 4601-A Devine St. in the next few months, according to a recent announcement. It will be moving into the space recently vacated by a Smashburger. Company officials have said up to 10 other locations could be coming to the state in the near future as well, but no dates have been released.

The fast-casual restaurant serves up chicken tenders and sandwiches done in a variety of spicy flavors.

Dave’s Hot Chicken was created in 2017

to host the second annual Palmetto Venture Fellowship,” said Charlie Banks, Executive Director of Venture Carolina. “It is crucial for South Carolina to have a strong pool of educated investors to support the growth of our state’s startup ecosystem. This fellowship program will provide the necessary tools and knowledge for individuals to become successful investors in early-stage companies.”

According to data from the National Science Board, in 2022 there was a 19% increase in the amount of venture capital

dollars disbursed per $1,000 of South Carolina’s gross domestic product. The Palmetto Venture Fellowship aims to continue this positive trend by providing the necessary resources to attract more venture capital investments to the state.

Applications and nominations are now being accepted on Venture Carolina’s website and will remain open until March 3. For more information about the fellowship, nomination, and application process, please visit www.venturecarolina.org. Click on Palmetto Venture Fellowship.

to strut down Devine

by best friends Dave Kopushyan, Arman Oganesyan, and Tommy and Gary Rubenyan, according to a bio on the company’s website. Dave, a trained chef, started working to create the perfect spicy chicken, and then the four friends rounded up $900 to start a small food stand in an East Hollywood parking lot. They started serving chicken flavored in a range of “no spice” to “The Reaper,” lines started to form and

Peak Drift Brewing Co. unveils Columbia production facility

By Christina Lee Knauss cknauss@scbiznews.com

Anew era in Columbia’s craft beer industry started with the official opening of the Peak Drift Brewing Company on Wednesday Jan. 18.

Peak Drift officially opened its new 25,000-square-foot production facility, which represents phase one of the company’s future 65,000-square-foot brewery complex.

State legislators, county council members and other community leaders from around the Midlands attended an official ribbon cutting ceremony held at the brewery located at 3452 North Main St.

“Our mission with Peak Drift is to help people celebrate life’s peak moments, no matter how big or small they are,” said Sara Middleton Styles, co-owner of Peak Drift along with her brother Greg Middleton. “We’re excited to be part of an innovative craft beverage community here in the Columbia area and to have a state-of-the-art brewing experience going on here. There are endless possibilities here and this is only the beginning for us.”

The Middletons launched Peak Drift in 2021. The company launched its inaugural line of craft beer and hard seltzers in the Midlands in December.

Speakers at the opening ceremony included Ashley Kinart-Short, one of the only female certified master brewers in the Southeast who oversees the brewery’s flavors, recipes and overall brewing process.

“This is a huge project, bigger than anything I’ve ever taken on, and I’m excited to be doing what I love to do, which is making amazing beer and beverages,” Kinart-Short told a large crowd.

The new brewery will use innovative approaches to ensure sustainability and quality, including in-house fruit processing equipment for better sours and hard ciders, an onsite lab for quality-testing all products and a state-ofthe-art packaging system.

Peak Drift will also use surface tension technology to produce alkaline water and natural cleaning solution to cut down on chemical use, and a membrane filtration system to produce hard seltzers and non-alcoholic craft beer.

The company also has a high-volume digital printer which allows it to print can graphics in-house and keep its cans 100% recyclable.

“A lot of people don’t realize that many craft beer cans are not recyclable because of the materials used in their label machines,” Sara Middleton Styles told SC Biz News. “In trying to make a more sustainable product, we ended up meeting with a group out of Germany

who specializes in printing equipment for canning, and we invested in some to do our own canning so all of the cans will be recyclable.”

The water purification system Peak Drift is using to cut down on chemical use is only being used by one other brewery in the U.S., Middleton Styles said.

“We really want to do sustainability and innovation here in a way hasn’t been put together all under one roof before at a brewery,” she said.

Peak Drift also wants to work with South Carolina farmers as well as others from North Carolina and Georgia to source fruit for use in its products.

“I really believe that what you put in your body should be good, so we wanted to ask how do we make beer

more sustainable and more healthy, while also supporting local small businesses and farmers,” Middleton Styles said. “For instance, let’s not use a peach puree that’s been processed 100 times when we can make it ourselves from local and regional peaches.”

The Middletons also wanted to reinforce their their commitment to the history and community in Columbia by choosing a historic building, the former Stone Manufacturing Company facility, for their brewery.

When the siblings initially took a look at the building, it was in a severe state of disrepair, but over time visions of what could go into such a large space started to emerge, and Greg Middleton eventually suggested a brewery.

Planning and construction on

the project were delayed because of COVID-19 and supply chain issues. While the brewery is up and running, work on the rest of the Peak Drift complex is ongoing, and the facility will eventually house indoor and outdoor dining, lounge and entertainment areas, and a full bar.

Columbia officials praised the Middletons’ decision to locate their brewery in the North Main district.

“Peak Drift is so much more than just a brewery – it’s a way of cultivating the local economy built up by local entrepreneurs and community buy-in,” said Columbia City Councilwoman Aditi Bussells. “Peak Drift is improving the quality of life here in the North Main area and helping to revive the overall community.”

Peak Drift Brewing’s interior will include a bar, games and space for live entertainment once it opens. (Photo/Provided)

Peak Drift Brewing’s new facility off North Main Street features state-of-the-art equipment to brew the company’s selection of beers, ciders and other beverages. (Photo/Christina Lee Knauss)

Japanese ‘flying car’ maker HQ to land in Beaufort

By Jason Thomas jthomas@scbiznews.com

SkyDrive Inc., a Japanese electric vertical take-off and landing aircraft manufacturer headquartered in Toyota, Japan, has plans to enter the U.S. market and operate out of a home base in South Carolina, according to a Skydrive news release.

SkyDrive, which is developing a commercial “flying car,” has outlined its plan to develop an advanced air mobility ecosystem in South Carolina while focusing on building a variety of practical use cases originating from two of its key airports in cooperation with local and state government agencies, the release stated.

The company, which made the announcement Jan. 25 at the 2023 annual VFS eVTOL Symposium in Mesa, Ariz., plans to open an office in Beaufort County.

SkyDrive was first invited to South Carolina in July 2022 by the Beaufort County Economic Development Corp., according to the release. With the BCEDC’s support, it has been exploring market opportunities within the state and building a network of key stakeholders.

SkyDrive’s focus has been on working with South Carolina to study practical use cases originating from several of its major airports utilizing the Japanese manufacturer’s eVTOL aircraft, the SD-052, the release

stated.

“The decision to make South Carolina our home base and our window into the U.S. market was an easy one considering that it is a significant player in both the commercial and military aviation industries, and it is home to more than 400 aerospace and aviation companies including Boeing and Lockheed Martin. I sincerely believe that the vast number of resources available in South Carolina will provide SkyDrive with a substantial platform that enables us to achieve our goals,” Tomohiro Fukuzawa SkyDrive’s founder and CEO,

said in the release.

As a result of this business development activity and the support of local and state government, SkyDrive has decided to form a business infrastructure within the state and to work with South Carolina in realizing an advanced air mobility ecosystem which will bring the state to the forefront in its ability to support the commercial operations of eVTOL aircraft, the release stated.

“The future of advanced manufacturing, aerospace, and vehicle industries is here, and South Carolina is proud to welcome SkyDrive, an industry innovator, to

our rapidly growing aerospace cluster,” S.C. Secretary of Commerce Harry M. Lightsey III said in the release. SkyDrive’s advanced electric propulsion technology and sustainable transportation implications are the perfect fit for South Carolina’s business roster and the state’s growing business development goals. South Carolina extends a warm welcome to SkyDrive and we look forward to supporting the company on its journey to continued growth and success.”

Reach Jason Thomas at 864-568-7570.

Images on the SkyDrive page show company leaders believe flying cars are not just for the distant future. (Image/SkyDrive)

Long drives turn software engineer into candy entrepreneur

By Ross Norton rnorton@scbiznews.com

Don Li’s restless soul kept him on the road. A lot.

The longtime software engineer made his home in Virginia for a while, but he has enjoyed exploring new places over the last 30 years, living in five states across the South, including two parts of South Carolina.

That restlessness kept him behind the wheel for long miles and long hours. To stay alert, he drank coffee — lots of it. The java kept him alert, something he expected. And it turned him into an entrepreneur, something he did not.

When inspiration struck, Li left behind his career as a software engineer to pursue an idea from the road — edible coffee, a caffeinated product that doesn’t lead to restroom breaks during long drives.

“Once this idea came to me, that’s like a moment of your life that you want to jump on,” he said. Today Li is founder of Greenville-based COG LLC and developer of the company’s only product so far: Coffee Candy.

The first iteration of edible coffee was baked goods.

“But brownies are good for today or two days, three days maximum,” Li said. “Then I pivoted to coffee candy, which is good for six months, nine months or even longer.”

For now the company is a one-person show, with Li contracting out tasks such as web development and packaging design. The candy is made at Old Mill Kitchen and Commissary. Through trial and error he has refined the product to its current form.

“Try it. You will like it,” he said during a recent taste test, and nudged forward a three-piece package of Coffee Candy. He waited confidently while someone new tried the product. It’s chewy but firm, perhaps a little more so than taffy, with a bold and somewhat sweet coffee flavor.

“It’s somewhere between hard and soft,” he says. “It’s really good, huh? It also contains some nutrients, but overall it gives you a boost.”

There are other coffee-flavored candies

but the only one Li has found that delivers a caffeine boost like Coffee Candy is a hard candy product from Indonesia, he said. That company grew from startup to billion-dollar enterprise in about five years, and Li himself is not thinking small.

He said some big coffee companies have reached out to him but he has not returned those calls, preferring for now to keep it local and regional. He has tapped in to local bankers (who also became his first customers) and the expertise of NEXT, the Greenville Chamber’s entrepreneurial support organization, where he has found mentorship.

He said his product is scalable and, when sate Agriculture Department

approval is in hand, ready to grow.

“My goal is to bring it to market and down the road have every coffee lover to become our customers,” Li said. “We will then go for retail distribution with Walmart, Target and all that.”

Li said he believes his product will not compete with coffee in its traditional liquid form, but have a place alongside those products that have grown in popularity. He thinks Coffee Candy would be particularly handy for people like truck drivers, factory workers and construction crews that don’t want to take the time for a restroom break.

“The key thing I believe is convenience,” he said. “And we don’t picture replacing people’s habit. We’re comple-

mentary. Starbucks and all the other coffee shops — they’re all good, right? We just want to bring to the marketplace a coffee product that provides convenience to coffee lovers.”

The product is available for individual orders online at www.eatcoffee.net and some customers order directly from him. Some employers have ordered it by the case for their workers and at least one company plans to add it to the breakroom vending machine.

“You just put it into your mouth and get caffeine but you don’t have to go to the restroom,” Li said, and tapped on a sample package. “Once we get going, this guy could become huge. It tastes good, right?”

SC Launch invests in Chapin-based startup

Staff Report

Virtue Technologies Inc., a Chapin-based tech startup, recently received a $250,000 investment from S.C. Launch Inc., the investment affiliate of the S.C. Research Authority.

Virtue Technologies is a cloud-based, mobile-friendly software provider focused on solving the logistical chal-

lenges of the durable medical equipment and pharmacy industries, according to a news release.

The company’s goal is to help reduce costs and improve the revenue cycle by improving staff efficiency, removing waste, increasing patient satisfaction and increasing visibility for provider operations, according to company officials.

“In an environment of shrinking

reimbursements, growing audit risks and persistent demand for information, our technology streamlines and removes friction in provider operations and patient experience,” said Gibran Ameer, CEO for Virtue Technologies.

Virtue Technologies recently presented its programs at the National Association of Health-System Pharmacists Clinical Meeting and Exhibition in

Las Vegas.

“Growing companies that are using technology to streamline tedious processes is one of our core goals,” said Bob Quinn, executive director of SCRA. “When technology can simultaneously improve patient care, it’s an even more beneficial endeavor. We’re proud to support Virtue Technologies and look forward to their continued growth.”

First-time entrepreneur Don Li has not yet launched his company officially but the Coffee Candy product is already available online. (Photo/Ross Norton)

New apprenticeship school draws students to SRS careers

By Christina Lee Knauss cknauss@scbiznews.com

Students attending area technical colleges can now participate in the new Apprenticeship School at the Savannah River Site created by Savannah River Nuclear Solutions.

In addition to getting paid, SRS apprentices gain job-related experience, network to obtain job references and test drive occupations of their choosing while pursuing college degrees, according to a news release.

A team of employees from SRNS, the Savannah River National Laboratory and liquid waste contractor Savannah River Mission Completion are working together to quickly grow and enhance the school. Generally, apprentices will be recruited twice each year to start school in January or in the fall.

Aiken Technical College and Denmark Technical College are currently participating in the school, according to the release.

“We’re in the process of developing a program with Augusta Technical College and Orangeburg-Calhoun Technical College and recruiting a cohort of students from those colleges for the fall of this year,” said Dorian Newton, the SRNS Apprenticeship School Program manager.

Newton said SRNS is also looking at increasing the number of maintenance mechanic and laboratory technician

apprenticeships at the site later in the year.

Denmark Technical College’s Dean of Industrial & Related Technologies Hadi Hamid said the school fits in with Denmark Tech’s mission to help students get careers in a wide range of industries.

“The innovative Apprenticeship School concept, developed by SRNS, perfectly aligns with our mission and strategy,” Hamid said. “It has already generated extensive interest across our campus. We are excited to see the potential of this program fulfilled and are grateful for the investment SRNS continues to make in our small, rural

HBCU.”

Adam Smith, an SRNS Apprenticeship School Program lead, said the program is focused on outreach to prospective students.

“We actively meet with high school counselors and students at various types of career fairs, in addition to partnering with county career center personnel,” Smith said. “We want to be proactive towards informing as many high school students as possible regarding all we have to offer in meeting their long-term occupational needs.”

In a significant achievement for SRNS,

the U.S. Department of Labor recently approved the SRNS Project Controls Apprenticeship, a first of its kind in the U.S. Department of Energy complex.

Information on the Apprenticeship School at SRS is available online.

Savannah River Nuclear Solutions, a Fluor-led company with Newport News Nuclear and Honeywell, is responsible for the management and operations of the Department of Energy’s Savannah River Site located near Aiken.

Reach Christina Lee Knauss at 803-753-4327.

SRS apprentices gain job-related experience, network to obtain job references as part of the apprenticeships. (Photo/Provided)

South Carolina woman sentenced for unemployment insurance fraud

according to a news release. Jordan was charged with four counts of forgery and four counts of making a false statement, or misrepresentation. A jury found her guilty on all counts, according to the

“Diana B. Jordan, the leader of a fraud ring that stole tens of thousands of dollars from the state’s unemployment insurance system over an 11-year

period, was convicted of fraud and other crimes,” said S.C. Department of Employment and Workforce Executive Director Dan Ellzey.

A Richland County judge sentenced Jordan to serve a one-year active sentence in the Alvin S. Glenn Detention Center, followed by five years of probation. She almost must pay back $39,998.70 in restitution fees owed to

Midlands Technical College signs architecture agreement with Clemson University

By Christina Lee Knauss cknauss@scbiznews.com

Midlands Technical College and Clemson University have formally signed a transfer articulation agreement for architecture students.

Through the agreement, students in MTC’s new Associate in Arts with a Concentration in Architecture degree program can be accepted to transfer into Clemson’s Bachelor of Arts in Architecture program with advanced standing, according to a news release.

At MTC, students will learn the basics of design theory and be introduced to the discipline through courses on drafting and design, architectural history, and building materials. They will also take additional courses in humanities, math and science,

fine arts, and communication.

The agreement was created to respond to predicted job growth rates for architects in South Carolina. Data analysts have indicated that growth rate for the profession in the state will be six percent through 2030 –

twice the national average. The U.S. Bureau of Labor Statistics reports that each year there are about 9,100 openings for architects nationwide.

“This is an exciting and long-awaited development that allows students to pur-

sue architectural careers while living in the Midlands,” said MTC President Ronald L. Rhames. “Students will save money and time and benefit from MTC’s smaller class sizes. It also will improve access for South Carolinians to seek professional licensure in such a prosperous and high-demand field.”

While this path is designed for students planning to earn a four-year degree at Clemson, the curriculum at MTC will prepare them for bachelor’s degrees in architecture at any four-year college or university.

“The Clemson University School of Architecture is excited to begin our partnership with Midlands Tech,” said James Stevens, director of the Clemson University School of Architecture and professor. “The agreement provides a new entry point for architecture students, ensuring our program is accessible to more students in the state.”

Is

by:

Clemson University architecture students present projects at the end of a semester. (Photo/Provided)

CAE passenger exceeds 1M for first time since 2019

Staff Report

The Columbia Metropolitan Airport saw more than 1 million passengers come through the airport in 2022, a 21% increase over 2021’s passenger traffic.

In total, CAE saw 527,599 enplanements — travelers starting their travel journey at CAE — and a total of 1,063,630 total passengers through the airport, including those passengers with one-way tickets to CAE, according to a news release. This was the first time since 2019 that the airport’s passenger numbers exceeded 1 million.

CAE set a 10-year record in 2019 with 1,353,788 passengers. Numbers plummeted to 577,187 in 2020 because of the COVID-19 pandemic, and then rebounded to 877,806 in 2021.

The airport saw a significant spike in passenger traffic in the summer months of 2022 — with June seeing 103,686 passengers, 100,656 in July and 94,864 in August, for a total of 299,200 passengers for the entire summer. In comparison, during the summer of 2021 CAE saw roughly 259,600 passengers — a 15.24% increase year over year for June, July and August.

“The consistent year-over-year growth in passenger traffic CAE has had since 2020 has been welcomed,” said Mike Gula, the airport’s executive director. “We are thankful for the ongoing support of this

community in utilizing this airport. With the sustained increase in passenger traffic, CAE will be positioned to see additional air service in 2023, as well as infrastructure and terminal updates and expansions that will make traveling through the airport that much easier for our valued passengers.”

Passengers in 2023 will be able to take advantage of additional flight services added at CAE during 2022, including increased service to New York City, Chicago and Charlotte.

“Our ongoing air service efforts have paid off as we see an increase of air service options for our passengers,” said Kim J.

Crafton, director of marketing and air service development. “Increasing routes and nonstop destinations is always a top priority for our team. Additionally, we have had a number of positive conversations with several low-cost carriers that will hopefully come to fruition in 2023 for CAE and the Columbia community.”

Passenger traffic at CAE in 2022 exceeded pre-pandemic levels for the first time since the first year of COVID-19’s hit on air travel. (Photo/Provided)

Riverbanks Zoo sets date for new aquarium and conservation center

By Christina Lee Knauss cknauss@scbiznews.com

Riverbanks Zoo and Garden in Columbia will open the Darnall W.and Susan F. Boyd Aquarium and Reptile Conservation Center on Thursday, March 2.

Through the support of the Boyd Foundation, the multi-million-dollar renovations will transform the heart of the zoo into a state-of-the-art animal care facility, according to a news release.

“It is a deep honor to support Riverbanks Zoo and Garden and their mission of conservation and education, said the Foundation’s Susan F. Boyd. “The new center will transport visitors through a variety of habitats, show the impact of conservation efforts and encourage simple actions to protect our ecosystems and wildlife. It’s important for us to understand our critical roles in conservation and how we can all do our part.

Guests at the Aquarium will be able to explore habitats such as temperate and tropical forests and deserts and wind their way from land to sea in an immersive journey. The highly antici-

pated aquarium project took four years from concept to completion.

“We are so excited to finally be able to share this incredible transformation with the entire community,” said Lochlan Wooten, chief operating officer at

Riverbanks. “This project was five years in the making and is the result of a whole lot of hard work for hundreds of people who came together to make this a reality. This Aquarium is truly the heart and soul of Riverbanks. About 75% of our

guests visit it.”

Wooten said the transformation of the aquarium is the first phase of a master plan for the next 30 years of the zoo. The goal is to build a “bridge to the wild,” enabling visitors to feel like they have been transported to many different wild habitats around the world.

The immersive habitats on display at the aquarium include temperate forests similar to those found in South Carolina, as well as tropical forests and waterways, deserts and coral reefs.

The entire project has also been planned with conversation and preservation of fragile species in mind and offers visitors the chance to encounter critically endangered species that Riverbanks is involved in conserving, which include many from South Carolina as well as Asia, Africa and other distant locations.

“The most exciting part of our vision for me is the effort to ensure every guest is much more connected to conservation,” Wooten said.

The Aquarium will feature conserva-

The Darnall W. and Susan F. Boyd Aquarium and Reptile Conservation Center will open March 2 at Riverbanks Zoo and Garden in Columbia. (Rendering/Provided)

The project has been planned with conservation and preservation in mind. (Rendering/Provided)

tion labs that will showcase conservation work visitors could previously only experience on behind-the-scenes tours.

The Coral Lab will feature the role Riverbanks plays in protecting coral reefs, showcasing colonies of corals that were rescued off the coast of Florida near Key West in partnership with the federal government, local governments and other zoological institutions, according to the release.

Wootensaid the new layout will give visitors a much more in-depth perspective on exactly how the corals are being conserved. During a walk through the lab area, visitors can look directly at tanks of several different corals through a glass enclosure and will be able to see staff members as they work with them.

In the Terrestrial Lab, guests can view endangered reptiles and amphibians from around the globe. The space will also highlight Riverbanks’ work supporting populations of geckos from around the world and collaborative projects protecting South Carolina’s endangered wildlife.

The Conservation Center will house a new desert biome highlighting arid habitats of the Western hemisphere, especially the desert Southwest. It will feature a variety of desert dwellers including tortoises, rattlesnakes, Gila monsters, thick-billed parrots and burrowing owls.

Guests will also be able to enjoy floorto-ceiling views of reptiles, including the alligator snapping turtle, cottonmouth, bushmaster and green anaconda. There will also be a giant wall of moon jellies and a giant Pacific octopus named Susan in honor of Mrs. Boyd because it is her favorite animal, according to the release.

The aquarium project, like so many others over the past three years, experienced many slow-downs and delays because of pandemic-related shutdowns and supply-chain issues. Wooten said a few displays will not be up and running at opening time because of the delays. For example, the aquarium just recently received water quality and electrical components to begin the curing process for some of the tanks, which takes up to six weeks to complete.

Once everything is up and running, however, guests will be able to experience a new aquarium that is not only beautiful and educational, but also sustainable in ways that weren’t possible before. Wooten said part of the effort to create a more sustainable aquarium was including space in the plans for areas where Riverbanks can propagate many of the species featured there, instead of having to rely on bringing them in from other aquariums and zoos. These areas include spaces where amphibians and reptiles can be born, as well as a special section behind the moon jelly display where Riverbanks will be breeding its own jellyfish.

“This is a major step toward achieving our mission to create meaningful con-

nections, inspire action and ultimately make a lasting impact on conversation not only in South Carolina but across the globe,” said Tommy Stringfellow, president and CEO of Riverbanks Zoo and Garden.

This is the second project in phase one of Riverbanks’ vision to build a “Bridge to the Wild.” Phase one also includes the white rhino habitat which opened in 2020, significant improvements to aging infrastructure and additional animal habitats that will be announced later in the year.

The Aquarium and Reptile Conservation Center will be open during normal Riverbanks hours and is included with general admission and membership at the zoo.

ANNUAL ECONOMIC IMPACT

$24.7 MILLION spent annually in air travel

50% travel from 50+ miles outside of Columbia

20% live out of state — from all over the US and across the globe

$148.7 MILLION pumped into the Midlands’ economy each yeargenerating nearly 2,000 jobs

$51.7 MILLION spent per year by Riverbanks’ visitors from outside of Columbia.

•Accommodations = $11.8 million

•Food and beverage = $16 million

•Retail = $13.3 million

NEARLY $1 MILLION in total tax revenue

The Aquarium and Reptile Conservation Center will be open during normal Riverbanks hours. (Image/ Provided)

Bio conference organizers expect record participation in Charleston

Staff Report

The largest life sciences conference in Palmetto State history will convene Feb. 21-23 in Charleston to address how South Carolina and America will improve health care and health equity.

Themed “Tomorrow Starts Here,” the two-day SCBIO 2023 event will feature national speaker sessions such as Winning the War on Cancer, Made in SC: Innovation at Home, Transforming Health Care Digitally, and Reshoring/Onshoring, among over 20 sessions — all topics driving the state’s most rapidly growing industry: life sciences, according to a news release from SCBIO.

Life sciences is a $25.7 billion annual industry growing faster in South Carolina than in any other Southeastern state. Conference speakers include national pharma and medtech executives, economic developers, leaders from South Carolina’s research universities, health care executives, business and financial industry officials, national media and others. In all, more than 40 speakers will present on a variety of topics.

Recent additions to the growing list of speakers include Shlomi Uziel of Israel’s Quai.MD; Thomas Freund of Switzerland’s SHL Medical; Gary Thompson of Abbott; David Koerner of US Performance Center; Matt Szuhaj of Deloitte/San Francisco; Kendalle O’Connell of MassBio; and Ibraheem Badejo of Ethicon/Johnson and Johnson.

The conference will feature an expanded exhibit hall showcasing scores of life sciences industry businesses, institutions of higher learning and essential support industry partners from across America, as well as presentation of the prestigious Pinnacle Awards by South Carolina Life Sciences to the outstanding 2022 Organization of the Year and Individual of the Year, according to the news release. Also to be honored will be the industry Rising Star under 40 years of age.

SCBIO CEO James Chappell will deliver a “State of South Carolina’s Life Sciences Industry” address, while hundreds of attendees will take advantage of meetings, receptions and connection sessions.

Full details are available online, and registration to attend the two-day confer-

ence is open. Registration and exhibiting are free or discounted to SCBIO investors, and the conference is open to interested members of the public.

“Life sciences is a key driver of South Carolina’s economy, and this conference’s growth is testament to the industry’s surging impact, reach and rapidly rising economic significance in our state,” Mike Brenan, South Carolina regional president for Truist and the 2023 conference chair, said in the news release. “Already accounting for over 85,000 highly skilled jobs in the Palmetto State, life sciences have tremendous growth potential, and we’re excited to showcase the top companies, leaders, research universities and support organizations from across our state and country at SCBIO 2023.”

The two-day conference annually draws attendees from across America for networking, innovation updates, opportunity discovery, partnership making and strategic discussion. Already committed attendees include officials across a broad spectrum of life sciences industries including medical devices, bio manufacturing, drug discovery, R&D, pharmaceuticals, diagnostics and testing, digital health and health IT, and bio-ag.

SCBIO is South Carolina’s investor-driven economic development organization exclusively focused on building, advancing and growing the life sciences industry in the state. The industry has more than 1,000 firms directly involved in the research, development and commercialization of innovative health care, medical device, industrial, environmental and agricultural biotechnology products.

Among leading biotech and med-tech industry brands participating in the conference are Nephron Nitrile, Nephron Pharmaceuticals, Bristol Myers Squibb, BIO, Johnson & Johnson, AVX, PhRMA, Medpoint, AdvaMed, Poly-Med, VWR, Rhythmlink, C-Safe, ZEUS, Patheon Thermo Fisher, Zverse, Abbott and Alcami. All of South Carolina’s research universities — MUSC, Clemson and the University of South Carolina — are represented, as are major healthcare systems, and economic development entities including the South Carolina Department of Commerce, SCRA, South Carolina Hospital Association and others.

Biotech company to open $50M facility in Union County

By Jason Thomas jthomas@scbiznews.com

ACalifornia-based biotech company is opening its first facility in South Carolina in Union County.

MycoWorks, which creates luxury-quality leather alternatives using the trademarked Fine Mycelium, has selected Stream Realty Partners, CH Realty Partners, and Gray to help develop its first full-scale production facility in the Upstate town of Union, according to a news release.

CH Realty Partners LLC, a Los Angeles-based developer — in conjunction with Ascendant Capital Partners, a Los Angeles-based real estate investment firm — will invest more than $50 million to expand and improve an existing warehouse at 260 Midway Drive, the release stated. The facility, which MycoWorks will lease with a long-term commitment, will accommodate 135,000 square feet for the company’s first full-scale Fine Mycelium production manufacturing facility

MycoWorks’ new facility will offer approximately 50,000 square feet of man-

ufacturing space, the release stated. It will include controlled environments for mixing, filling, and sterilization; work cells for tending the product as it grows; and areas for product harvesting and finishing. Within the existing footprint, the facility will utilize approximately 40,000 square feet for an Automated Storage Retrieval System in a highly controlled environment that will house trays of the product as it grows into sheets, the release stated. A two-story expansion of 35,000 square feet for offices will be built adjacent to the existing warehouse. The remaining footprint will be used

for storage, utilities, and maintenance areas.

Stream’s National Program Management team will work with CH Realty Partners to manage all aspects of the delivery of the facility, from conceptual design through equipment installation and startup, the release stated. Stream Vice President Tom Porter, who specializes in manufacturing, will lead the project. Stream is a national real estate services, development, and investment firm with a growing office in Charlotte that services the Carolinas.

“We’ve taken a deep dive to understand MycoWorks’ business needs and created

a path forward that is critical to their success as an organization,” Porter said in the release. “Together, with our partners, we have developed a strategic approach to fast-track this project and help this unique, innovative client become the world’s first commercially scaled Fine Mycelium platform.”

Recognized as a leader in the manufacturing industry, Lexington, Ky.-based Gray will design and build the project, according to the release.

“Gray is excited to play a pivotal role on such an innovative and technologically advanced project,” said Brian Jones, Gray president and CEO, in the release. “This unique facility is a chance not only to advance MycoWorks but also move the industry forward, and that’s an incredible opportunity.”

Additional exterior improvements will include a bulk unloading area for dry raw materials, storage tanks for liquid raw materials, an expanded parking lot, and a new employee entrance, according to the release.

Reach Jason Thomas at 864-568-7570

Jimmy Dascani of Arthrex will be a speaker at this year’s SCBIO conference. (Photo/Provided)

MycoWorks will invest more than $50 million to expand and improve an existing warehouse at 260 Midway Drive in Union

Scientists identify obesity-causing enzyme

Staff Report

Clemson University researchers have identified an enzyme and its products in humans that reduce diet-induced obesity.

But hold off before rushing out to order that double cheeseburger, French fries and chocolate milkshake. The discovery likely doesn’t mean you can eat a high-fat diet without repercussions, William Baldwin, a professor and graduate program coordinator in the Clemson Department of Biological Sciences, said in a university news release.

“The biggest thing is that we’re not done with our diet once we eat it,” said Baldwin, whose lab is interested in the metabolism of fatty acids and the role CYP2B genes play in diet-induced obesity. CYP2B is part of a superfamily of enzymes. It is the only human detoxification CYP whose loss is associated with obesity.

Fat isn’t necessarily bad in and of itself, the researcher says.

It’s a source of energy, and some types of fat, such as omega-3 fatty acids found in salmon, flaxseed and walnuts, offer a wide range of health benefits. Omega-3 fatty acids may help lower triglycerides and raise high-density lipoprotein (HDL), often referred to as good cholesterol. They also may lower a person’s chance of developing heart and other diseases.

Omega-6 is another type of fat that is

found in vegetable oils, nuts and seeds.

When we eat polyunsaturated fats, such as omega-3 and omega-6, they get metabolized by CYP2B6 into specific oxylipins, the news release said. The oxylipins signal different receptors to tell the body what to do with the fats.

In the study, the researchers created model mice that had the human CYP2B6 gene. After feeding the mice a diet that was 60% fat, they found the female mice with the gene had less diet-induced obesity than those without. Male mice with the human CYP2B6 gene had less diabetes and better glucose tolerance, but increased nonalcoholic fatty liver disease, Jazmine Eccles, a Ph.D. student in the Department of Biological Sciences, said in

the release.

“We believe the oxylipins signal the liver to take up the fats and get them out of your blood. That may be how we’re getting nonalcoholic fatty liver disease and improving some diabetes markers,” Eccles said. “Omega-6 fatty acids are the fat you get a lot of when you eat fried foods. They’re regarded as inflammatory. Your body is signaling to take up these fats, and you’re more apt to store fats instead of metabolizing them. If you eat a healthier diet with more Omega-3s, which are anti-inflammatory, you’ll potentially accumulate less of those fats.”

Expanding knowledge about oxylipins could potentially lead to drugs that are metabolic activators and help reduce

obesity, Eccles said. But any positives likely will come with a negative. If, for instance, a person comes from a family prone to fatty liver disease, they may not want to take something that increases signals to the liver to take up more fat. But for others, increasing those signals could clear out some of the fat from their bloodstream and reduce diabetes or cardiovascular disease, Baldwin said.

“I think there’s going to be lipids [fatty compounds] that are better than others. But I think, ultimately, we’re going to find that every one of the oxylipins we’re looking at will have two positives and one negative, or have two negatives and one positive,” Baldwin said in the release.

He continued, “I don’t think the perfect molecule is out there. I think the perfect molecule is a healthy diet with reasonable amounts of omega-3 fatty acids and exercise.”

A paper titled “Human CYP2B6 produces oxylipins from polyunsaturated fatty acids and reduces diet-induced obesity” published in December in the journal PLOS One outlines the study’s findings. Research reported in the paper was supported by several National Institutes of Health institutions, including the National Institute of Environmental Health Sciences grant R15ES017321 and the National Institute of General Medical Sciences P20GM121342.

Jazmine Eccles, a Ph.D. student in the biology department, works with Baldwin. (Photo/Clemson University)

In Focus

HOSPITALITY/TOURISM

LISTS: Hotels, Alternative & Outdoor Event Venues, Page XX

NEXT ISSUE’S FOCUS:

Architecture, Engineering and Construction

How one couple built a boutique hotel in Columbia

By Christina Lee Knauss cknauss@scbiznews.com

When Rita Patel and husband Marcus Munse moved to Columbia in 2010, they did so out of economic necessity.

The couple’s dreams of moving to New York City and becoming architects were dashed by the Great Recession. Patel’s parents owned a motel in West Columbia and the couple both took jobs there, plus worked others to make ends meet.

During those challenging times, they never believed they would eventually decide to make Columbia home, and eight years later end up opening their own boutique hotel in the heart of the city’s downtown.

“When we came to Columbia, opening a hotel was not on our radar at all,” owner Rita Patel told SC Biz News in a recent interview. “But we absolutely fell in love with this city and things started to bloom for us. The timing was perfect when we decided to open Hotel Trundle.”

Five years after opening in space that

used to be three historic downtown buildings, the 41-room Hotel Trundle has won dozens of national and regional awards and the couple are planning two expansions to offer guests even more unique ways to experience what Trundle — and Columbia — has to offer.

Hotel Trundle, like other accommodations nationwide, went through a stressful time during the pandemic in 2020, when it was forced to close for about six weeks. Patel and Munse, however, say some good things came out of that era. They learned how much support they had from the local community and what a strong team of employees they have, and they also got some important new perspectives on travelers’ changing wants and needs.

They learned many guests were seeking out different levels of privacy, ranging from the traditional full-service hotel experience to more private accommodations for both short- and long-term stays.

As a result, they decided in 2022 to expand Trundle’s offerings into two new options called Flutter Wing and The Dens. Flutter Wing, slated to open later

this year, offers guests a semi-private stay, while The Dens, less than a mile away over in Columbia’s historic Cottontown district, offers a completely private stay.

The Flutter Wing takes its name from a butterfly-themed mural at the main hotel, and also is designed to play off the whimsical nature of the Trundle’s mascot, the unicorn.

It is located around the corner from the main hotel in former retail space at 1544 Main St., adjacent to and above Drake’s Duck-In, a long-time Columbia restaurant. The wing is going into a historic building that served a wide variety of retail businesses in the past, starting with Duffie’s Bookstore (1868-1912) to a beauty salon, shoe store, and Marilyn’s Slipper Shop in 1941.

Five hotel-style guest rooms will be in the 2,500-square-foot new wing, including a large suite that would be ideal for both brides and VIP guests, Patel said. Flutter also will include a private patio, and offer guests both a private key-fob entry and separate parking, while also offering guests full access to all of the

main hotel’s amenities.

The Dens, meanwhile, will be located in two duplexes the couple is renovating in the Cottontown area. It will consist of four apartment-style lodging spaces — three one-bedroom and one three-bedroom offering with an office space. Design and construction for that space is being run by the couple, with Marcus handling much of the construction and renovation himself. The Dens is also slated to open this year.

Hotel Trundle – both the original site and the future expansions – exists only because Patel and Munse had to radically change their original life plans.

Both graduated from the University of North Carolina at Charlotte with architecture degrees and married in 2010. Munse originally hails from the Charlotte area, while Patel grew up surrounded by the hospitality industry in South Carolina. Her parents were in hospitality for more than 40 years.

When plans to move to New York

Owners of Hotel Trundle, a Columbia boutique hotel with a local focus, plan multiple expansions in the near future to please a growing variety of guests.

didn’t work out, they first moved in with Patel’s parents in Orangeburg and then came to Columbia to work in a hotel the Patel family had developed in West Columbia. Rita helped at the front desk while Marcus took on maintenance and other jobs.

The hotel wasn’t their only gig, however. Over the next 24 months, the two worked a total of five jobs. Rita’s jobs included a stint as an “on-call” sales associate with Macy’s at a northeast shopping center.

“We were living on a popcorn-for-dinner budget,” Patel said. “We couldn’t even really afford our first Christmas tree, and they only cost $30 back then. But during the whole time, we never missed a payment on anything.”

Although it wasn’t the easiest of times, the couple quickly started to love their newly adopted home, learning more about what the city had to offer through local events such as the popular Soda City Market held downtown on Saturdays. The Market even became the location of one of their money-making efforts from that era – “Daddy-Daughter Chicken Tikka,” a pop-up food stall that featured chicken tikka and other traditional Indian foods.

Rita was eventually able to get a job with a local architectural firm, while Marcus decided he liked the hospitality industry and stayed on working at the hotel. They purchased their first home in the Cottontown district in 2013 and had two children as the years passed.

Eventually Rita and Marcus decided they wanted to try their hand at opening their own boutique-style, independent hotel in Columbia that would allow them not only to showcase what the city had to offer but to offer a guest experience unlike

any other available in the area.

In 2016, they started looking around for properties and were guided to three buildings along Taylor Street which previously were home to Rose-Talbert Paints, Powell Furniture Co. and a Western Auto Store.

The buildings initially didn’t seem like prime hotel material.

“When we first saw the site it looked like a horror movie — there were drips and puddles everywhere, and things left behind from when part of the space was a storage facility for a local hospital,” Patel

said.

But they took a leap of faith, signed a contract for the properties in 2016, and after two years of hard work opened Hotel Trundle in 2018. Patel used her love of interior design to help develop the hotel’s unique art-deco vibe, accented by attention to details that reflect the buildings’ original historic design including exposed brick, stamped tin ceilings, moldings and custom wood trim.

Support for the hotel from both the local community and travelers was quick to develop.

“Everything worked out for us — the timing was perfect and we opened to a supportive atmosphere,” Munse said. “Columbia had not had something like this before and everyone was curious about what we had to offer.”

The couple are so dedicated to supporting the Columbia area that from the beginning, as many products as possible in use at Hotel Trundle come from local vendors, from artwork on the walls to the craft beer served in the lobby and the coffee served at breakfast. The hotel’s mattresses are made by Best Mattress in West Columbia and are so popular with guests that many come to the front desk and ask where they can purchase the “Trundle mattress.”

If they can’t find items made in Columbia, they try to source them from elsewhere in South Carolina. The pillows, for instance, are made by a company out of Beaufort called Harris Pillows.

The couple’s decision to create a unique lodging experience has paid off. Hotel Trundle has consistently won local, regional and national awards since the year it opened, and in 2021 and ’22 was named one of the Top 10 Best Historic Hotels in the U.S. by readers of USA Today. The hotel has also welcomed celebrity guests including Steve Martin, Vivica Fox and DJ Khaled.

Patel and Munse hope to make even more guests happy when Trundle’s expansions open later this year, and to continue to support the city that allowed them to build their dream.

“We want to continue to grow by understanding what our guests want and need,” Patel said. “We know that a lot of travelers these days are looking for an atmosphere that’s cool and inspiring, and that’s who we’re here for.”

$4.2M in federal grants award to 13 outdoor recreation projects

Staff Report

Thirteen recreation projects across South Carolina will receive support from the federal Land and Water Conservation Fund to expand or improve local parks, public boating areas and other facilities.

The Land and Water Conservation Fund is a federal grant available to eligible local and state government entities to reimburse up to 50% of the project cost to acquire or develop outdoor recreation areas and facilities, according to a news release from the state Department of Parks, Recreation and Tourism. Any property that uses LWCF money must be maintained in perpetuity as an active and viable outdoor recreation site.

“Communities know that investing in outdoor recreation opportunities brings a variety of benefits, but often, they need a little help bringing their plans to fruition,” SCPRT Director Duane Parrish said in the news release. “LWCF funding helps state

and local entities acquire, enhance, and create vital recreational areas that exist in perpetuity. Thanks to the $4.2 million in LWCF funding, along with the support and passion of community members and officials, these 13 projects will improve the quality of life for local residents and help attract more visitors to these areas for generations.”

The following 13 projects were selected in the 2022 LWCF cycle:

Smith-Hazel Park in Aiken received $306, 625 for a $613,250 rehabilitation project

Fort Pemberton in Charleston received $261,000 toward a $522,000 project to improve public access at the site

Charleston County Parks and Recreation Commission received $427,827 to go toward its $855,655 project that includes Americans with Disabilities Act beach access with a boardwalk at Isle of Palms County Park

A grant award of $125,000 goes to the Vine Street Bike Path resurfacing project

in Edisto

The city of Greenville won $500,000 to put toward a $1.4 million renovation project at Gower Park, including expansion of basketball and tennis courts and the addition of pickleball courts

The Lexington County Recreation Commission was awarded $372,860 to put toward a $745,720 plan to add 16 fenced and lighted pickleball courts and a restroom building at Wilkinson Park City Gym Park in the city of Liberty will get $50,000 from the fund for it’s $100,000 plan to make surface improvements to various courts

The city of Spartanburg will use its $300,000 award to revitalize Duncan Park, including a trail that will connect it to the Mary Black Foundation Trail and Daniel Morgan Trail System

The Sharon Jones Amphitheater in North Augusta will receive $264,391 from the fund toward a $528,782 plan to design and build an ADA-accessible restroom and dressing room for the park

The city of York received $150,000, about of its projected costs for the second phase of City Park, including restroom, amphitheater and landscaping

The state parks system received $500,000, about half of what is needed to purchase 150 acres next to Paris Mountain State Park

South Carolina State Parks also received another $500,000 to purchase 170 acres of property that will connect Mountain Bridge Wilderness area

Anderson County received $500,000 to go toward its $1.2 million plans for Piedmont Riverfront Park, an undeveloped park were the county intends to add an ADA-accessible kayak launch and boat landing along the Saluda River.

SCPRT serves as South Carolina’s LWCF lead agency. The LWCF program is administered by the National Park Service with grants that range from $50,000 to $300,000, with projects of statewide or regional significance qualifying for up to $500,000.

HOTEL TRUNDLE, from Page 16

Munse and Patel saw the potential of a ruined building through the eyes of architects. (Photo/Provided)

Hotel going to master-planned community in Summerville

By Jason Thomas jthomas@scbiznews.com

Sharbell Nexton LLC is bringing an A.C. Hotel by Marriott, developed by Baywood Hotels, a Columbia, Md.-based company, to the planned community of Nexton in Summerville in 2024.

The boutique hotel will be situated on 2.5 acres on the corner of Sigma Drive and Session Street and will include 117 guest rooms on four floors, according to a Sharbell Nexton news release. Plans for the hotel include an outdoor pool and courtyard, indoor kitchen and open lounge area, fitness room and meeting space.

In June 2021, Sharbell Development Corp. broke ground on downtown Nexton, an urban-inspired mixed-use development serving the growing number of residents in Nexton and the surrounding region, according to a post on its website.

Situated on nearly 100 acres between Sigma Drive and Brighton Park Boulevard, downtown Nexton will provide retail, dining, hospitality, residential, service, office and commercial options within walking distance of many of Nexton’s residential neighborhoods, according to the post.

Work began on a new phase of the

community in January 2022, which is expected to add apartments for rent, hotel, office space and 150,000 square feet of shopping and dining space when it is completely built out over the next five to seven years.

One Nexton is consistent with the

mixed-use development philosophy of the larger Nexton community, which sits between Interstate 26 and U.S. Highway 176 and was named the “Master-Planned Community of the Year” in 2021 by the National Association of Homebuilders.

Located at the northeast corner of Brighton Park Boulevard and Nexton Parkway, the first phase of One Nexton is expected to be complete in the fall of 2024.

Reach Jason at 864-568-7570.

SOUTH CAROLINA PORTS AT YOUR FINGERTIPS

The boutique hotel will be situated on 2.5 acres on the corner of Sigma Drive and Session Street and will include 117 guest rooms on four floors. (Rendering/Provided)

Hotels

In the Columbia Area, Listed Alphabetically

Aloft Columbia Harbison

217 Lanneau Court

Columbia, SC 29212

803-407-6166

Clarion Inn Airport

500 Chris Drive West Columbia, SC 29169

803-794-9440

Columbia Marriott

1200 Hampton St. Columbia, SC 29201 803-771-7000

Comfort Inn Columbia 911 Bush River Road Columbia, SC 29210

803-798-5101

Courtyard by Marriott Columbia Northeast

111 Gateway Corporate Blvd. Columbia, SC 29203 803-736-3600

Courtyard by Marriott Downtown at USC 630 Assembly St. Columbia, SC 29201 803-799-7800

DoubleTree Hotel & Conference Center by Hilton 2100 Bush River Road Columbia, SC 29210 803-731-0300

Embassy Suites by Hilton Columbia 200 Stoneridge Drive Columbia, SC 29210 803-252-8700

Fairfield Inn & Suites Columbia Northeast 120 Blarney Drive Columbia, SC 29223 803-760-1700

Hampton Inn Columbia I-20 / Clemson Road 1021 Clemson Frontage Road Columbia, SC 29229 803-788-4901

Hampton Inn Columbia-Northeast, Fort Jackson 1551 Barbara Drive Columbia, SC 29223 803-865-8000

Hilton Columbia Center 924 Senate St. Columbia, SC 29201 803-744-7800

Hilton Garden Inn Columbia / Harbison 434 Columbiana Drive Columbia, SC 29212 803-407-6640

Hilton Garden Inn Columbia Airport 110 McSwain Drive West Columbia, SC 29169 803-391-4000

Holiday Inn Express Hotel & Suites Columbia 211 Lanneau Court Columbia, SC 29212 803-732-2229

Homewood Suites by Hilton Columbia 230 Greystone Blvd. Columbia, SC 29210 803-239-4663

Hotel Trundle Columbia, SC 803-722-5000

Hyatt Place Columbia / Harbison 1130 Kinley Road Irmo, SC 29063 803-407-1560

Hyatt Place Columbia Downtown The Vista 819 Gervais St. Columbia, SC 29201 803-978-2013

Residence Inn Columbia NW Harbison 944 Lake Murray Blvd. Irmo, SC 29063 803-749-7575

Rodeway Inn Harbison Area 499 Piney Grove Road Columbia, SC 29210 803-798-0500

Sleep Inn 1901 Rockland Road Columbia, SC 29210 803-731-9999

Wingate by Wyndham Columbia 217 Lanneau Court Columbia, SC 29212 803-407-6166

Wingate by Wyndham Columbia / Lexington 108 Saluda Pointe Court Lexington, SC 29072 803-957-5000

Because of space constraints, sometimes only the top-ranked companies are published in the print edition. Although every e ort is made to ensure accuracy, errors sometimes occur. Email additions or corrections to research@scbiznews.com. Researched by Paige Wills

Alternative & Outdoor Event Venues

www.riverbanks.org planyourevent@riverbanks.org

www.kogercenterforthearts.com kogercenter@sc.edu

803-744-7956 www.brooklandbaptist.org ssmith@brookland.cc StephanySmith

SC29169

Junction800 800 Gervais St. Columbia, SC29201

R2I2 Conference Center 763 Fashion Drive Columbia, SC29229

803-783-1061 www.junction800.com info@junction800.com

operates as a year-round event venue for meetings, galas, weddings, parties and more

meetings and company picnics to holiday parties and exclusive park buy-outs, offers a variety of event spaces for both daytime and events

receptions, business meetings, family reunions

Events from weddings, receptions to corporate meetings, galas; doors connecting space to front can be opened to create indoor and outdoor environment

At Work

People in the News

ARTS AND ENTERTAINMENT

Cumulus Media has appointed Kaylin Mozden as an on-air host on Hot AC radio station B106.7/WTCB-FM. Mozden, who recently was named one of radio’s 30 and Under Superstars by Radio Ink Magazine, had been with Townsquare Media’s Lite 98.7/WLZW-FM, where she was brand manager and morning host.

CONSTRUCTION

RMF Engineering has promoted Craig Buck to chief buildings mechanical engineer. Buck’s background includes the planning, design and construction of new and renovated buildings in industries spanning health care, research laboratories and higher education.

PEOPLE, PLACES AND HAPPENINGS ACROSS THE MIDLANDS

Cristi Lewis, treasurer/vice chair (CohnReznick, Charlotte); Scott Mayer, secretary (BuildingPoint Southeast, Waxhaw, N.C.); Brian Gallagher, past chair liaison (Graycor, Greenville); and Justin Baker, CECA liaison (Gaylor Electric, Indianapolis). Board directors are Fred Adams (Fred Adams Paving Co., Morrisville, NC); Greg Carlton (Randy Marion Automotive, Mooresville, N.C.); Angela Carter (Metcon, Raleigh); Scott Cutler (Brasfield & Gorrie, Raleigh); Chris Darling (HC Government Realty Trust, Mount Pleasant); Andy Grayson (Choate Construction, Mount Pleasant); Sam Hayes (Landmark Construction Co., North Charleston); Josh Mauney (Paragon Safety Group, Raleigh); Jason Moore (Rodgers Builders, Charlotte); Christi Powell (84 Lumber, Greenville); Emory Sadler (Towne Insurance, Raleigh); Dan Thomas (Starr Electric Co., Charlotte); and Karen Yoder (Catalyst Construction Co., Charlotte).

DESIGN

Healthcare and Medicis Dermatologics. After leaving the health care industry, she launched HHI Yoga, where she led, trained and taught hundreds of people.

GOVERNMENT SERVICES

Shannon Boone is the new human resources director at LRADAC, the designated alcohol and drug abuse authority for Lexington and Richland counties. She brings with her more than 20 years of executive-level human resource recruitment and management experience. Most recently, Boone served as manager of talent acquisition for BlueCross BlueShield of South Carolina. She has a bachelor’s in business administration from Washington & Jefferson College.

practiced in Greenwood. His focus is estate planning, probate and elder law.

Greg Howell has joined Great Southern Homes as the Midlands division manager. In this role, he oversees all Midlands operations, including construction, purchasing and estimating, sales and marketing. Previously, Howell served as CEO of Hurricane Builders. Howell is a member of the BIA of Central South Carolina, where he served on the board of directors as building director. In addition, John West has become the company’s Upstate division manager. West has more than 36 years’ experience in the construction industry with an emphasis on commercial and multifamily construction.

Landmark Construction Co. has brought in Brandy Cence as senior estimator. She is responsible for prepping and submitting bid analysis and evaluation of construction plans and specifications for the determination of site work construction costs and project schedules. Cence, who has a Bachelor of Science in Civil Engineering from Clemson University, brings 21 years of experience in construction and estimating.

Chris Moore, president of CarolinaPower, has been elected 2023 chair of Associated Builders and Contractors of the Carolinas. Other board officers are Allen Amsler, incoming chair (McCrory Construction Co.); Rob Beale, immediate past chair (W.M. Jordan Co., Wilmington);

Boudreaux interior designer James Wall is now co-director of the Columbia City Center division of the International Interior Design Association’s Carolinas Chapter. With a bachelor’s degree in anthropology, a master’s degree in interior design, and research interests in evidence-based design, environmental psychology and place-making, Wall brings a holistic perspective to his work. Wall is leading interior design efforts for such Boudreaux projects as the University of South Carolina’s Campus Village, the State Credit Union headquarters, The Venues at Arsenal Hill rehabilitation, and the expansion of Central Carolina Community Foundation in the Bull Street District.

EDUCATION

The Social Emotional Learning Alliance for South Carolina has appointed Wendy Methvin as its executive director. After graduating Phi Beta Kappa and magna cum laude in honors English from the University of Tennessee, Methvin spent nearly a decade working as a medical and pharmaceutical sales manager for Baxter

The American Council of Engineering Companies of South Carolina presented its Service to the Profession award to Secretary of Transportation Christy Hall, chief executive of the S.C. Department of Transportation. During her time at SCDOT, Hall has held numerous leadership positions, including finance, engineering and interim secretary. As SCDOT’s chief executive, she directs the agency’s planning, maintenance, construction and operation efforts, while advocating for SCDOT before the state legislature.

HEALTHCARE

Prisma Health appointed Matt Elsey as executive vice president and chief financial officer. He brings more than 25 years of financial management experience in the health care industry. Elsey comes to Prima Health from McLaren Health Care. He is a graduate of Michigan State University and a member of the Michigan Association of Certified Public Accountants and of the Healthcare Financial Management Association.

LAW

Thomas Hughes has joined LawyerLisa’s Lexington office. A graduate of Winthrop University and the University of South Carolina School of Law, Hughes previously

Burnette Shutt & McDaniel partner Mandy Mueller has been accepted as a member of the LGBTQ+ Bar Association Family Law Institute. She is among only four South Carolina lawyers in the group. Mueller has practiced family law for more than a decade, beginning as an attorney with the S.C. Department of Social Services. She represented Richland and Kershaw County in more than 1,000 court proceedings aimed at protecting children and vulnerable adults and also has represented clients in family law cases involving active-duty military members. At Burnette Shutt & McDaniel, her practice includes all facets of family law. She and other attorneys at Burnette Shutt & McDaniel represent LGBTQ clients in cases involving second-parent adoptions, birth-certificate amendments, gender-affirming name changes, domestic partner agreements, and more.

Ashley Pennington, an attorney with more than 40 years’ experience in criminal law, has joined Burnette Shutt & McDaniel. His focus is civil rights cases, including issues involving jail reform. This includes federal Section 1983 Civil Rights lawsuits and South Carolina Tort Claims actions involving excessive police force and police-involved shootings. He also is interested in cases addressing prisoner mental health issues and needed reforms. A former Ninth Circuit public defender, Pennington also volunteers with a prison re-entry initiative.

Robinson Gray has named attorneys Tim Thompson and Vordman Carlisle Traywick III as members of the law firm. Thompson focuses his practice on business mergers and acquisitions, business succes-

Buck

Howell

Moore Wall Methvin

Boone

Elsey Hughes

Mueller

Pennnington Thompson See PITN, Page 21

West Traywick

PITN, from Page 20

sion and legal entity planning, corporate and commercial law, taxation, estate and trust planning and probate administration. A graduate of The Citadel, Thompson obtained his juris doctor from the University of South Carolina School of Law before earning a master’s in taxation from the University of Florida School of Law. Before joining Robinson Gray, he served as corporate counsel for AgFirst Farm Credit Bank. Traywick’s appellate and litigation practice focuses on representing governmental entities and public officials in complex civil disputes, litigating constitutional and election-related issues, advising and representing utilities in regulatory proceedings, and defending professional negligence claims. He also teaches election law at the University of South Carolina School of Law, is on the advisory

board of the Center on Professionalism, and is secretary of the South Carolina Chapter of the Federal Bar Association. The Supreme Court of South Carolina, which has twice recognized him for his commitment to pro bono service, recently appointed him to the Commission on Continuing Legal Education and Specialization. He graduated cum laude from Wofford College and earned his JD from the USC School of Law, where he served as editor-in-chief of the South Carolina Law Review. Before joining Robinson Gray, Traywick clerked for H. Bruce Williams at the South Carolina Court of Appeals and David C. Norton at the U.S. District Court for the District of South Carolina. He is a 2020 graduate of Leadership Columbia.

MARKETING AN PUBLIC RELATIONS

At Rhodes Branding, Michael

Ho is the new creative director. Previously, he was creative/ director of photography at Mile 44 agency in Los Angeles. Ho has worked with such brands as Peloton, FIFA/EA Sports, Audi, Wayfair and Ruggable and in both international and domestic markets. He earned his Bachelor of Fine Arts from the California Institute of the Arts.

REAL ESTATE

Columbia Realtor Morris Lyles , of ERA Wilder, has been named South Carolina Real-

tor’s 2022 Realtor of the Year. Lyles has played many parts at the association, including treasurer in 2019, president-elect in 2020, and president in 2021. He also served as political action committee trustee chair and member services chair of the executive committee. He served on the board of the Central Carolina Realtors Association in Columbia and was its 2015 president. He was the board’s 2016 Realtor of the Year. Lyles is a graduate of Presbyterian College and of Leadership Columbia.

41 Midlands leaders selected to become Riley Fellows

Staff Report

Forty-one leaders from across the Midlands will work to gain new tools and perspectives to leverage diversity to improve organizational outcomes and drive social and economic progress in South Carolina, gained through their participation in the Riley Institute’s Diversity Leaders Initiative.

These leaders, who are members of Diversity Leaders Initiative’s 15th Midlands class, were selected through an application and interview process after being nominated by DLI alumni. They were determined to be uniquely positioned to create impact within their organizations and communities, according to a news release. Each class is crafted to reflect the diverse demographics in South Carolina.

“In a time of significant social strife, leaders must come together to identify ways to unite communities to improve outcomes for all,” Don Gordon, executive director of the Riley Institute, said in the news release. “The DLI experience will help them as they lead South Carolina toward a better tomorrow.”

DLI classes are facilitated by expert Juan Johnson, an independent consultant who was the Coca-Cola Co.’s first vice president for diversity strategy.

Over five months, the class will engage in intensive discussions and scenario analyses that allow them to openly examine sensitive issues related to diversity and inclusion with fellow leaders, explore “blind spots,” and gain tools to develop strategies within their own organizations, the news release stated.

Class members also work together to develop capstone projects, partnering with nonprofit organizations to respond to challenges and opportunities in their communities.

Graduates of DLI become Riley Fel-

lows, members of a cross-sector network of South Carolinians that includes corporate CEOs, legislators, superintendents, religious and nonprofit heads, and business and community leaders.

“With more than 2,600 Riley Fellows statewide, the impact these tight-knit leaders have is amplified with the addition of every new class,” Gordon said. “It’s a special thing to witness them coming together to

make South Carolina a better place to live and work for all its residents.”

Listed below are the participants of the spring 2023 Midlands DLI class. The full roster of program graduates can be found online at furman.edu/riley.

Spring 2023 Midlands class participants: Eric Bellamy, Children’s Trust of South Carolina; Montrio Belton, Law Office of Montrio Belton; Cynthia Bennett, S.C.

Chamber of Commerce; Tyson Blanton, Duke Energy; Salandra Bowman, South Carolina ETV; Ashley Brown, S.C. Arts Commission and Arts Grow SC; Karla Buru, S.C. Department of Health and Environmental Control; Councilwoman Aditi Bussells, city of Columbia; Lady June Cole, League of Women Voters of Colum-

See RILEY FELLOWS, Page 22

Michael Ho Lyles

The latest class of Diversity Leaders Institute participants will become Riley Fellows when they graduate from the program. (Photo/Provided)

Target your market in an upcoming issue of the Columbia Regional Business Report

MARCH 20

ARCHITECTURE/ENGINEERING/ CONSTRUCTION

List: General Contractors, Engineering Firms

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List: IT Services, Security Firms

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bia Area; Russell Cook, S.C. Academic Innovations and SCRA; Millicent Dickey, Clover School District; Brianna Douglas, The Byerly Foundation; Bill Duda, Ogletree Deakins; Mark Everett, National Educational Telecommunications Association; Laurie Funderburk, USDAFSA; Claire Gibbons, Power:Ed; Terrence Green, Lexington Police Department; U.S. Magistrate Judge Shiva Hodges, U.S. District Court for the District of South Carolina; Uschi Jeffcoat, Florence County Museum Florence; Jazmon Kearse, City Attorney’s Office/Columbia Police Department; John Lay, Gallivan, White & Boyd PA; Nancy Lee, Habitat for Humanity of South Carolina; Ashley Lidow, Women’s Rights and Empowerment Network; Kevin Lindler, First Citizens Bank; David Lyon, Duff Freeman Lyon; David Mathis, S.C. Department of Education; Laura McKinney, First Community Bank; Ameka Neely, Children’s Trust of South Carolina; Tim Norwood, Synergi Part-

ners; Elizabeth Owen, Morton & Gettys LLC; Hannah Pittman, S.C. Association of School Administrators; Alyssa Richardson, Palmetto Community Developers; Gregg Robinson, Florence County Economic Development Partnership; Joe Roof, Palmetto GBA; Joelle Ryan-Cook, Columbia Museum of Art; Kirby Shealy, Adams and Reese LLP; Gary Simrill, Winthrop University; Jason Sloan, BlueCross BlueShield of SC; Donny Supplee, United Way of Kershaw County; Donna Waites, Sisters of Charity Foundation of S.C.; and Nick Washington, Original Six Foundation.

Furman University’s Richard W. Riley Institute advances social and economic progress in South Carolina and beyond by building leadership for a diverse society, broadening student and community perspectives on critical issues, hosting expert speakers, supporting public education, and creating knowledge through community solutions-focused research. It is committed to nonpartisanship in all it does and to a rhetoric-free, facts-based approach to change.

Firm receives law school’s MLK Distinguished Service Award

Staff Report

Robinson Gray Stepp & Laffitte has received the first Dr. Martin Luther King Jr. Distinguished Service Award given by the University of South Carolina School of Law.

The award, which was voted on by students, was announced on the evening of Jan. 12, as part of the law school’s inaugural Celebration of the Life and Legacy of Dr. King. The theme for the celebration was “Our Beloved Community: The Rule of Law in an Unruly World.”

The program was followed by a community reception, held as an opportunity for students, faculty, staff and community members “to reflect on the legacy of Dr. King and build bonds of friendship toward confronting the many challenges that face our nation,” according to assistant professor Etienne C. Toussaint, who notified the firm that it would receive the honor.

“This award recognizes your law firm’s demonstrated commitment to public service, social justice, diversity, equity and inclusion in the legal profession,” Toussaint wrote in a letter to the firm.

For advertising information, contact Ryan Downing at rdowning@scbiznews.com

Robinson Gray said in a news release that it embraces inclusiveness at all levels of the firm — from hiring and seeking to retain diverse lawyers and employees to celebrating our differences in race, gender, age, ethnicity, national origin, sexual orientation and religious preference.

“To have received the very first such award given, and to have it announced as part of our community’s celebration of our nation’s annual celebration of Dr. King’s life, vision and accomplishments, makes the honor all the greater.”

Cal Watson Managing Member Robinson Gray Stepp & Laffitte

“To receive this recognition at any time would be a tremendous honor for Robinson Gray,” Cal Watson, managing member of the firm, said in the news release. “To have received the very first such award given, and to have it announced as part of our community’s celebration of our nation’s annual commemoration of Dr. King’s life, vision and accomplishments, makes the honor all the greater.”

The firm received the South Carolina Bar 2022 Pro Bono Award, and was named as a “Pro Bono Leader” for South Carolina by the American Bar Association in 2020 and 2021.

Located in the BullStreet district, Robinson Gray Stepp & Laffitte LLC is located in the BullStreet district.

RILEY FELLOWS, from Page 21

& Gettys Association

Alyssa RichDevelopCounty Partnership; Joe Ryan-Cook, Kirby Shealy, Simrill, Sloan, BlueSupplee, County; Donna Foundation of Original Six W. Riley economic beyond diverse socicommunity hosting public eduthrough research. nonpartisanship in all facts-based

Viewpoint

VIEWS, PERSPECTIVES AND READERS’ LETTERS

Opinions diverge but experts know: Don’t fight the Fed

For years the financial markets were guided by the mantra, “Don’t Fight the Fed.” When investors think the economy and inflation will behave one way but the Fed sees something different, the Fed will eventually win. Today that divergence of opinion is as wide as ever. The markets believe that the peak in the funds rate is near and the Fed will begin to lower the funds rate in the second half of the year. The Fed says it does not plan to start easing until sometime in 2024. Who is right? In this case we think the Fed’s view of the economy and inflation is probably more accurate.

Using the fed funds rate futures contracts as a guide, investors believe that with two small 0.25% hikes in the funds rate by midyear, the economy will slow enough and inflation will subside with sufficient speed that the Fed will be in a position to cut the funds rate in the second half of the year.

For that to occur, the economy has to register very slow growth. Most economists anticipate GDP growth this year of about 1.0%. We concur. But the economy currently still has considerable momentum. Third quarter GDP growth was 3.2%. Fourth quarter appears to be solid at about 2.2%. GDP growth in 2023 should slip to the 1.0% mark but, thus far, the economy is showing few signs of a significant slowdown.

The real question is, what happens to the unemployment rate? The unemployment rate currently is 3.5%. The Fed believes the labor market is at full employment when the unemployment rate is 4.0%. At that point everybody who wants a job has one. The Fed also wants slower wage growth which is the key to reducing inflation. It wants the unemployment rate to climb to 4.5% or so to make that happen. With projected GDP growth of 1.0% the yearend unemployment rate should be about 4.0%. That is not conducive to reduced wage pressures and a significant slowdown in inflation. The Fed will need to push interest rates higher.

What about inflation? The overall inflation rate slowed in the second half of last year. The CPI reached a peak of 9.0% in June as the outbreak of war between Ukraine and Russia caused energy prices to soar. But as energy prices subsequently declined, the CPI slipped to 6.4%. That steady drop-off in inflation encour-

aged market participants that they were on the right track and that inflation might slow faster than the Fed was expecting. However, the slowdown was caused almost entirely by falling energy prices. The so-called “core” CPI, which excludes the volatile food and energy

categories, peaked at 6.7% in September and ended the year at 5.7%. Furthermore, in the final three months of the year the core CPI climbed at a modest 3.1% pace which further convinced the markets that the Fed tightening earlier in the year was working. But during that

period of time the core CPI got a lot of help from sharp declines in both used car prices and airfares. For the core rate to continue to slow, these two categories must fall further. It is not clear that is going to happen.

The most disquieting part of the core CPI is the shelter component, which rose 7.5% last year and in the final three months of the year climbed at an even faster pace. Because rents comprise onethird of the entire CPI index, it is hard to imagine how the overall CPI can fall to 2.0% any time soon when one-third of the index is rising at a 7.5% pace. If home prices continue to fall, rents will eventually slow -- but with a lag of roughly one year.

Putting all of this together, we expect the core CPI to rise 4.2% in 2023. Significant improvement in the core rate will not occur until very late in 2023.

The Fed plans to boost the funds rate to 5.1% in the first few months of this year. With a higher funds rate it believes GDP growth will slow to 0.5% for the year and the core inflation rate might subside to 3.5%. But if we are right that core inflation remains stubbornly high at 4.2% Fed officials will be disappointed. In that case it may raise the funds rate to 6.0% by the spring. The markets are not ready for that.

Former Lehman Brothers economist Stephen Slifter can be reached at www.numbernomics.com.

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