June 1 - 14, 2015 • www.charlestonbusiness.com VOLVO IN SOUTH CAROLINA
VOLVO HOW SOUTH CAROLINA LANDED THE CAR MAKER
Benefitfocus CEO gives $25M for children’s hospital By Ashley Heffernan
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The Road The story of to Ridgeville the Volvo deal
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The ‘Volvo Effect’
‘Change is coming’
A timeline charting the first
Gov. Nikki Haley talks about
How the state’s third car plant
Ridgeville residents see growth,
phone call to the final decision
tense negotiations, site swap
will grow the automotive sector
jobs coming to their small town
THE ROAD TO RIDGEVILLE
Find in-depth reports on the deal that brought Volvo to S.C. and what’s next. Special Section: Page 35
S.C. State issues New board elects chairman, gets rundown of school’s problems. Page 3
Building with collaboration
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aheffernan@scbiznews.com
he CEO of Daniel Island-based software company Benefitfocus donated $25 million to the Medical University of South Carolina for its new children’s hospital and women’s pavilion. Shawn Jenkins will receive full naming
BEHIND THE SCENES
New digital production arts degrees in Charleston to help local filmmakers develop a talent pipeline, but animators might be stuck in the fundraising phase without access to state incentives. Page 6
GreenBy3 works with contractors to manage projects, source material. Page 11
INSIDE Upfront............................. 2 In Focus: Architecture, Engineering and Construction................. 11 List: Architecture Firms............................. 26 At Work.......................... 31 People in the News......... 31 Business Digest.............. 31 Hot Properties................. 34
Volume 21, No. 12 • $2.00
A still image from one of Moondog Animation Studio’s Orbie for Orphans animated episodes.
rights to the hospital, according to MUSC Vice President for Development Jim Fisher, who made the announcement in mid-May. “The university’s naming guidelines stipulate that any person or entity providing at least half the philanthropic funding needed to execute any capital improvement here at MUSC becomes eligible to have his or her name placed on that capital improvement,”
Fisher said. The hospital’s goal is to raise $50 million from donors prior to construction as a down payment on the $350 million price tag. So far, about $40 million has been pledged. The new hospital will be named the MUSC Shawn Jenkins Children’s Hospital. It will See MUSC, Page 8
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Charleston School of Law cutting faculty, facilities By Ashley Heffernan
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aheffernan@scbiznews.com
harleston School of Law will remain open and accept new first-year students in the fall, but there will be some downsizing. A cost-cutting initiative is allowing the institution to remain open, school spokesman Andy Brack said May 22. “The school’s landlords are cooperating with the school in efforts to consolidate facilities. Also, the school’s yearlong effort to reduce the size of the faculty and staff to a level consistent with the reduced enrollment will continue and begin to have a budgetary impact in September,” Brack said in an emailed statement. Since last May, 24 staff members and four faculty members have left the school through buyouts, voluntary separation packages and attrition, according to Brack. A news release from the school said, “Even with these right-sizing efforts, expenses still continued to outstrip revenues.” An additional seven faculty members were terminated the day of the announcement. “It’s been hard to lose these members of our staff and faculty, but it’s been a necessary See SCHOOL OF LAW, Page 9
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CHARLESTON UNDER CONSTRUCTION Who is building what in the Charleston area? Projects, companies, prices, projected timelines, photos and stories. Page 11
Upfront:
Briefs, brights and business news
On the Record “We are calling this year’s Bike To Work Day ‘We Can’t Wait To Bike To Work Day’ to focus community attention again on the importance of the Ashley River bridge bike lane for many who wish to bike to work but do not currently feel safe on the bridge.” — Charleston Moves Executive Director Kurt Cavanaugh
We beat Kentucky! Growing our income like it’s 1979 The Economic Policy Institute’s treasure trove of data details the percentage of income growth among states across the U.S. starting in 1979 and stopping at 2007 — which makes sense because the Great Recession took us all for a ride after 2008.
STATE
INCOME GROWTH 1979-2007
Virginia
58.2%
North Carolina
44.8%
Florida
38.8%
Georgia
Kentucky
one big number
35.3%
Alabama South Carolina
Catherine Wilcox, 9-year-old daughter of Purdue University economist Michael Wilcox, is no stranger to “Daddy’s work.” Having accompanied her father to countless workshops and academic conferences during her lifetime — she is headed to the Agricultural & Applied Economics Association meeting in San Francisco in July — she prefers to focus her creative nature on less “boring” things like creative writing, illustration and joke telling. She and her family are friends of the Biz Journal’s, so when she offered us an illustrated analysis of “economics,” we thought: What a great idea! Enjoy Catherine’s work above ... we certainly did, and now we’re inviting your kid (no one older than 15, please) to submit his or her own interpretive drawings and creative writing related to the business news of the day or their parent’s job. We’re going to publish everything we get (aside from potentially awkward submissions, and you likely know what we mean). If we get enough, we’ll do a drawing for something cool, like ice cream gift certificates. If we only get a few, we’ll give everyone ice cream! Submit to editorial@scbiznews.com
37.5%
Tennessee Mississippi
Kid finds economics 100% boring
33.7% 31.8% 25.4% 19.9%
Source: Economic Policy Institute
$3.5 million
Charleston Fashion Week boosted the Lowcountry’s economy by about $3.5 million, a nearly 20% increase from 2014, according to College of Charleston associate professor Wayne Smith. The five-day event boasted a record 7,500 attendees, and each out-of-town attendee spent an average of $1,900.
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Tom McNeish of Elliott Davis accounting firm presents a short-term cash-flow forecast to S.C. State University’s new interim board of trustees. (Photo/Ciapha Dennis)
S.C. State’s new trustees hear about ‘huge problems’ By Ashley Heffernan
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aheffernan@scbiznews.com
he new interim board of trustees at S.C. State University met for the first time May 20 in Orangeburg, the same day that a former chairman of the board was sentenced to prison. Greenville businessman Jonathan Pinson, 45, was sentenced in Columbia for conspiracy to commit racketeering, theft concerning programs receiving federal funds, conspiracy to commit wire fraud, mail fraud, wire fraud, money laundering and false statements, according to a news release from the U.S. attorney’s office. U.S. District Judge David Norton sentenced Pinson to five years in prison, followed by five years of supervised release. He was also ordered to pay $337,843.05 in restitution, the news release said. Pinson was convicted in June 2014 for his involvement in a promotion contract for a concert at S.C. State and government funds earmarked for a diaper plant in Marion County, among other issues, according to federal prosecutors.
Trustees meet
In the past year since Pinson was found guilty, S.C. State leaders have been fighting to keep the university open. State lawmakers fired the school’s board of trustees in mid-May and appointed a new seven-member interim board. The board elected former S.C. Commerce Secretary Charles S. Way Jr., who is also chairman of The Beach Co. board, as its chairman. James E. Clark, co-founder of Bang Technologies Inc., was elected vice chairman. “We all know South Carolina State, it’s got some problems. It’s got some huge, huge problems. As my father used to say, ‘This ox is in the ditch, and we’ve got to
get the ox out of the ditch.’ That’s our job today and going forward,” Way said. Interim President W. Franklin Evans said the university has a major budget deficit with accounts payable and accrued expenses accounts totaling nearly $14 million; student enrollment is down from 4,362 in fall 2010 to 3,331 in fall 2014; and there are visible deferred-maintenance issues that total about $75 million. He also explained that the university is on probation with its accrediting agency. On June 9, a five-member panel from the university will go to Virginia to discuss accreditation issues. Tom McNeish of Elliott Davis accounting firm was asked by the state Budget and Control Board to perform a shortterm cash flow forecast for S.C. State. McNeish said from 2009 to 2013, accounts payable and accrued expenses averaged about $5.3 million at the end of each fiscal year, but they jumped to $13.9 million as of June 30, 2014. Also during fiscal 2014, the university received a $6 million loan from the state. McNeish said the reason for the jump in expenses was because money was withheld from vendors intentionally so the university would have enough cash on hand to make payroll and debt service. He forecasts debt will increase to $23.5 million during fiscal 2015. To fix the deficit, Clark said trustees must know what they’re dealing with. “Call the baby ugly. Put it out there. Let us know it’s going to be rough,” Clark said. “If we’re thinking that the ox and the wagon are both out of the ditch and we just need to say, ‘Giddy up,’ then we’re on the wrong page. We need to pull him by the yoke.” cr bj
Reach staff writer Ashley Heffernan at 843849-3144 or @AshleyBHeff on Twitter.
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LOWCOUNTRY NEWSROOM Managing Editor - Andy Owens aowens@scbiznews.com • 843.849.3142
June 1 - 14, 2015
Business news from around S.C.
Senior Copy Editor - Beverly Barfield bbarfield@scbiznews.com • 843.849.3115
South State Q1 income climbs 51% to $23.9M
Staff Writer - Liz Segrist lsegrist@scbiznews.com • 843.849.3119 Staff Writer - Ashley Heffernan aheffernan@scbiznews.com • 843.849.3144
The year is off to a strong start as South State Corp. begins to see the fruits of last year’s merger of SCBT and Charleston-based First Financial, said CEO Robert Hill. Additionally, the company’s board approved a 1-cent increase in cash dividends to $0.24 per share.
Editorial Assistant - Steve McDaniel smcdaniel@scbiznews.com • 843.843.3123 Research Specialist - Melissa Verzaal mverzaal@scbiznews.com • 843.849.3104 Associate Editor, Special Projects - Jenny Peterson jpeterson@scbiznews.com • 843.849.3145 Senior Graphic Designer - Jane Mattingly jmattingly@scbiznews.com • 843.849.3118
Duke plans cleanup of coal ash at Robinson Plant
Graphic Designer - Andrew Sprague asprague@scbiznews.com • 843.849.3128 Assistant Graphic Designer - Emily Matesi ematesi@scbiznews.com • 843.849.3124 MIDLANDS NEWSROOM Editor - Chuck Crumbo ccrumbo@scbiznews.com • 803.726.7542 Staff Writer - Chris Cox ccox@scbiznews.com • 803.726.7545 Special Projects Editor - Licia Jackson ljackson@scbiznews.com • 803.726.7546 Research Specialist - Patrice Mack pmack@scbiznews.com • 803.726.7544 UPSTATE NEWSROOM News Editor - Don Fujiwara dfujiwara@scbiznews.com • 864.235.5677, ext. 106 Staff Writer - Bill Poovey bpoovey@scbiznews.com • 864.235.5677, ext. 104 Graphic Designer - Jean Piot jpiot@scbiznews.com • 864.235.5677, ext. 105 LOWCOUNTRY ACCOUNT EXECUTIVES Senior Account Executive - Sue Gordon sgordon@scbiznews.com • 843.849.3111 Senior Account Executive - Robert Reilly rreilly@scbiznews.com • 843.849.3107 Account Executive - Sara Cox scox@scbiznews.com • 843.849.3109 Account Executive - Bennett Parks bparks@scbiznews.com • 843.849.3126
South Carolina’s Media Engine for Economic Growth President and Group Publisher - Grady Johnson gjohnson@scbiznews.com • 843.849.3103 Vice President of Sales - Steve Fields sfields@scbiznews.com • 843.849.3110
A seven-story Marriott brand AC Hotel has been proposed for the mixed-use project at the site of The Greenville News building, which will be demolished. (Rendering/Provided)
Greenville considering plans for mixed-use project Exterior plans for a proposed seven-story hotel that is part of the mixed-use project at the site of The Greenville News have been presented to the city Design Review Board. Records show JHM Hotels of Greenville is seeking a certificate of appropriateness for the Marriott brand AC Hotel. JHM Hotels, also in Greenville, operates the Hyatt Regency on North Main Street, a Marriott on Parkway East, and Courtyard and Fairfield Inn locations at Greenville-Spartanburg International Airport. Greenville-based Centennial American Properties and Trammell Crow of Dallas are developing the mixed-use project at the site where the newspaper building will be demolished. Developers have signed a contract to purchase the property, but the closing is pending. No timetable has been announced for construction. The project also includes a plaza, apartments, condominiums, two office buildings, a theater and space for retail outlets and restaurants. - GSA Business Staff Report
6 S.C. counties designated federal Promise Zones
AFL acquires Australian fiber-optic firm AFC
With a poverty rate of 28.12% and an unemployment rate of 14.7%, an area encompassing portions of Allendale, Bamberg, Barnwell, Colleton, Hampton and Jasper counties was designated as the S.C. Promise Zone recently as part of an initiative laid out by President Barack Obama in 2013.
AFL of Duncan has acquired another company in Australia. AFC is a manufacturer, designer and integrator of fiber-optic and copper communications products based in Melbourne. An AFL statement said adding AFC expands its product line with fiber-optic cable, fiber management systems and other products.
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SCANA Q1 earnings double to $400 million The sale of Carolina Gas Transmission and SCANA Communications led to the unique numbers, as first quarter earnings in 2014 were $193 million. Colder than normal weather, improving economic conditions and the resulting customer growth also attributed to the company’s performance.
S.C. No. 50 on Best States for Working Moms list South Carolina placed No. 50 out of 51 in a recent WalletHub ranking of the 2015 Best and Worst States for Working Moms. Out of the 50 states and the District of Columbia, the Palmetto State ranked 47th in child care, 50th in professional opportunities and 36th in work-life balance.
AVANTech opens new center in Columbia Founded in 1999, AVANTech is a privately held company that offers comprehensive water treatment solutions for industrial, commercial and nuclear power applications.
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In a filing to state regulators, Duke Energy said it will seek to permit a new landfill on its Darlington Plant property, a combustion turbine facility immediately adjacent. The new landfill will be used for coal ash that Duke plans to excavate and relocate.
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Animation growing despite exclusion from incentives By Ashley Heffernan aheffernan@scbiznews.com
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harleston’s art crowd, combined with its growing technology sector, is setting the scene for an emerging film industry. Robert Geist, a Clemson University professor and interim director of the school’s digital production arts program, said that to make a film, you need a “Leonardo da Vinci — an artist and a scientist in one body.” “The places you find students who are both artists and scientists are in communities like this that have both strong arts and strong computer science. It’s an ideal location for such a thing,” he said. “We could go to Silicon Valley, but it’s probably pretty hard to set up a branch campus in Silicon Valley.” Next year, Geist plans to move to the Lowcountry to teach at Clemson’s new Zucker Family Graduate Education Center on the former naval shipyard in North Charleston. The $21.5 million facility, which is under construction now and expected to open in the fall of 2016, will offer a doctorate in computer science and a master’s degree in digital production arts, among others.
Robert Geist (from left), a professor at Clemson University, works with students Christian Weeks and Jenny Thompson in a digital production arts lab. (Photo/Clemson University)
Digital production arts students will learn to create “everything that’s fake” in a movie, such as the water in James Cameron’s 1997 film Titanic, which a Clemson professor created, and a snowstorm in Disney’s Frozen, which a Clemson alum-
nus made. Geist expects the degree to bring more studios and production work to the Charleston area. For Bryan Ransom, co-founder and CEO of Mount Pleasant-based Moondog
Animation Studio, the entry of a trained local workforce is going to help him build the “ecosystem” he needs to create his animated film, tentatively called Hi5. Details about the plot and characters of the film, estimated to cost between $25 million and $30 million to make, are closely guarded secrets in the studio. Once more investors sign on, Ransom plans to hire more employees than the handful who are currently working on it. “We’re trying to create a talent pipeline for ourselves, which doesn’t benefit just us. It’s the state as well,” Ransom said. Moondog Animation is not eligible for the state’s film incentives, however. The state offers rebates, tax exemptions and tax credits to qualifying film productions, but reality shows and animated films don’t qualify, according to Duane Parrish, director of the S.C. Department of Parks, Recreation and Tourism, which oversees the S.C. Film Commission. “It’s a great thing when the right production comes, be it television or movie,” Parrish said, citing the television series Army Wives as a boost for the Lowcountry economy. “There is no tourism value to animation.” The state provides incentives to lure feature films, documentaries, TV pro-
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South Carolina film production incentives
The Moondog Animation Studio team is creating short, animated episodes for Orbie For Orphans. The group plans to use the episodes to help orphans and foster children learn about compassion and deal with abandonment and anxiety issues. (Still image/Moondog Animation Studio)
grams, sound recordings, videos, music videos, commercials, videogames and digital media to the state. Ransom said he thinks his animated film should qualify too. “When I gear up for Hi5, I have a 150-man crew that live in the state over a three-year period, and I try to keep them on for the second film and continue the business and raise it up to 250 (crew members) for the second film,” he said. “I’m putting good people to work, raising their families here. It’s developing in the community.” He said a non-animated film might
bring in the same number of people but for just a six- to eight-week film session. “Yes, they stay in hotels, and, yes, they eat at restaurants, and they do have an economic impact,” Ransom said. “My people aren’t staying in hotels because they live here — they bought houses. Their spouses are out in the community. Their kids go to the schools. We’re raising new South Carolinians in South Carolina. What’s better than that? We’re creating a whole new ecosystem.” Ransom said he’s asking for animators to be treated equally, adding that his employees will also grow the industry.
CO C O OM MIING IN NG N GS SO OO ON! ON N!! N
“You hire 150 people; they’re not all going to stay with you,” Ransom said. “They’re going to spin off. Someone is going to want go do commercial work. Someone is going to want to do series work. Someone is going to start doing gaming, because that’s very prominent as well.” Lawmakers have introduced a proviso that would add digital animation film production to the incentive program. But it’s unclear if the proviso will be passed. cr bj
Reach staff writer Ashley Heffernan at 843-849-3144 or @AshleyBHeff on Twitter.
For productions that spend at least $1 million in South Carolina: • 25% rebate on all in-state wages • 20% rebate on all out-of-state wages • 30% rebate on supplies purchased, rented or leased from S.C. suppliers For productions that spend at least $250,000 in South Carolina: • 6% to 8.5% exemption of state sales taxes on purchases, rentals and leases from S.C. suppliers • Pay no location fee to film on state-owned properties Other incentives: • 20% income tax credit of taxpayer’s cash investment in development or production of a single South Carolina motion picture (limited to $100,000 per taxpayer; all credits cannot reduce a taxpayer’s income tax liability by more than 50% for any given year) • 20% income tax credit for construction, conversion or equipping of a motion picture production or post-production facility (total credits claimed by all taxpayers may not exceed $5 million in single qualified facility; all credits cannot reduce a taxpayer’s income tax liability by more than 50% for any given year) • 10% income tax credit for companies that produce commercials in S.C. (must invest more than $500,000 during a calendar year; total amount allowed to all production companies each year cannot exceed $1 million)
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Benefitfocus CEO Shawn Jenkins will give $25 million to MUSC for its new children’s hospital. (Photo/Ashley Heffernan) Right: The hospital will cost $350 million to build. (Rendering/McMillan Pazdan Smith Architects)
for these physicians and nurses. Let’s provide an environment for these families be located off Calhoun Street between who, I know, stay a long time in this faciliCourtenay Drive and the new McClen- ty so they get the love and care and things nan Banks Court, which will extend the that they need.” current Charleston In December, the Center Drive to the Boeing Co. pledged “Our commitment is to exit ramp between to donate $5 million Calhoun and Lockthe new hospital. ensure that rich or poor, for wood Drive. The aerospace com“Our story is pany plans to pay every child who walks like so many stories $1 million annually of the people that through the doors of MUSC to MUSC over the come to the hospinext five years. tal,” Jenkins said, Lowcountry Children’s Hospital will explaining that his native Darius Ruckdaughter, Olivia, continue to get the very best er is also helping now 20 years old, MUSC build the care possible.” was admitted to the new hospital. In MUSC Children’s February, Rucker Darius Rucker Hospital when she donated $265,000 musician was 2 months old. in proceeds from a “We were a concert for the projyoung, terrified family. My income at ect. He and Beth Rucker, his wife, were the time was about $18,000 a year, and named honorary fundraising chairs for this was my second child. She needed the campaign. treatment. She needed diagnosis,” he “Our children deserve a world-class said. “As I’m standing in front of you facility to match the world-class care today, associating our name and the that already exists,” the Ruckers said in beginning of building this hospital, it’s a statement. just humbling. My wife and I, as we were “Our commitment is to ensure that, sitting on the couch last night talking rich or poor, every child who walks about the event and the magnitude of through the doors of MUSC Children’s it, we began to break down and cry. Just Hospital will continue to get the very weeping tears of joy, excitement, enthu- best care possible.” siasm.” The new, 10-story hospital, which Jenkins said he was raised by a single will include a helipad on the roof and mother and often worried about money. is designed to look similar to the existHe co-founded Benefitfocus 15 years ing Ashley River Tower on the MUSC ago and said he sees this as a full-circle campus, is scheduled to open in 2019. moment in which he can give back to the Construction is expected to start next community. year. “We see this as the beginning of a great partnership,” he said. “Let’s get the build- Reach staff writer Ashley Heffernan at ing built. Let’s provide the best equipment 843-849-3144 or @AshleyBHeff on Twitter. MUSC, continued from Page 1
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Charleston School of Law will continue occupying space in the Sol Blatt Jr. Law Library at 81 Mary St. and the AT&T building at 385 Meeting St. (Photo/Ashley Heffernan)
The law school announced in July 2013 that it was entering into a management business move to ensure that the size of services agreement with the for-profit the school is appropriate for the number InfiLaw System. When it became evident of students we have,” Brack said in his that InfiLaw was looking to purchase statement. “Our existing staff will be able the school, students and alumni startto meet students’ needs as a number of ed questioning the reputation, entrance functions have been consolidated.” requirements and class sizes of schools The school’s campus also will be owned by the company. shrinking. The school currently occuThe sale was in limbo for nearly a year pies space in seven as InfiLaw awaited downtown Charlesa decision from the ton buildings — the Commission “Our existing staff will be S.C. Sol Blatt Jr. Law on Higher EducaLibrary is located at which had to able to meet students’ needs tion, 81 Mary St.; offices approve the compaand classrooms are application for as a number of functions ny’s in the AT&T builda license to operate ing at 385 Meeting have been consolidated.” the school. St., as well as 392 InfiLaw tempoand 394 Meeting St. rarily suspended its Andy Brack and 414, 442 and bid to buy the school Charleston School of Law spokesman 444 King St. in June 2014, but the School leaders company still has a intend to consolidate the school to just management services agreement in place the library and AT&T building. as well as a contract to buy the school. Matt Kelly, president of the Student Kathy Heldman, a spokeswoman for Bar Association at the school, responded InfiLaw, said the company has not asked to the announcement by questioning the the school for outstanding management level of education for students. fees and has not started collection proce“It’s our opinion that it is absolutely dures on a long-defaulted loan. unacceptable that the board continues “We made these sacrifices so that the to perpetuate the false narrative that the school could meet its financial obligaschool was in dire financial straits and tions, including paying salaries, but we that it continues to be there because of will not loan the school any additional a decrease in enrollment, when that funds nor do we plan to refile a license decrease is directly attributable to their application with the Commission on decisions and the continued pursuit of Higher Education,” Heldman said in an a sale to InfiLaw,” Kelly said in a state- emailed statement. ment. “Twenty-four staff members and In early May, co-founders Robert Carr four faculty gone, and yet they still are and George Kosko said that the instituoutstripping revenue. How is that pos- tion’s financial woes put the school in sible? How are they going to cut seven jeopardy of not being able to accept new more faculty members and still provide first-year students or remain open. the level of education that was promised See SCHOOL OF LAW, Page 10 ➤ to all students?” SCHOOL OF LAW, continued from Page 1
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Days later, a video was posted on YouTube showing Carr talking to faculty members about the school’s dire financial situation. In the video, Carr said AT&T will be leaving the building in the fall. The law school is set to take over the entire space once AT&T leaves. “I wish we could fill the building with students, but I have real doubts about it, and it does not look promising,” Carr said. “There are no suitors, no white knights, no group of investors, no state colleges, no private colleges — either profit or nonprofit — seeking the law school. As we have said for almost two
years now, InfiLaw is and always has been the only viable option for the survival of the school.” The law school opened in August 2004 with 197 students. Three years later, 186 of those students graduated. The school’s enrollment peaked at about 700 several years ago, but numbers declined over time. Now there are about 450 students enrolled at the school, and the recent spring commencement ceremony included 132 graduates. cr bj
Reach staff writer Ashley Heffernan at 843-849-3144 or @AshleyBHeff on Twitter.
Charleston School of Law’s first graduating class in 2007 had 186 students. After peaking around 700 students, enrollment is at about 450, and 132 students graduated in the spring. (Photo/Ashley Heffernan)
In Focus:
Architecture, Engineering and Construction
LIST Architecture Firms, Page 26
CHARLESTON UNDER
CONSTRUCTION
Construction, engineering and architectural firms are working hard in Charleston. Thank you to everyone who submitted projects and photos for this special section. We’ll expect more in the next quarter. Feature your project in the next issue of Charleston Under Construction. The project submission deadline is Aug. 17 for the Sept. 21 edition. Email to cuc@scbiznews.com.
Jorge Riano, president and founder of GreenBy3, and Collaborative Project Coordinator Mariel Simpson work to close the knowledge gap among clients, contractors and the various trades involved in a construction project. (Photo/Chris McCandlish)
GreenBy3 fills the gaps in construction projects By Chris McCandlish Contributing Writer
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hen Jorge Riano was in charge of building Automated Trading Desk’s campus from 2001 to 2004, the experience inspired him to start his own company four years later. “It’s important to start there,” said Riano, who now owns GreenBy3, a commercial construction and renovation project management company in Charleston. “In a typical project, the contractor has a trailer on site. But what we did (with ATD) is we put another trailer on site next to their trailer, and we asked the architect to have an office in that trailer along with the owner, which was me,” Riano said. “So what happened was the architect, the owner and the general contractor were on site 100% of the time.” Having all parties present at all times completely changed the dynamic of the construction project, Riano said. “It made sure there was someone rep-
resenting the client every day, overseeing everything, making sure everything was running right, controlling costs and answering questions on a day-to-day basis so nothing gets held up,” he said. “So, I
“It’s the person who oversees everything on a high level, but also on a very, very detailed level” Mariel Simpson business partner, GreenBy3
took that process and made a business out of it.” GreenBy3 now works to save clients money by closing the knowledge gap among the client, the contractor and the various trades involved in a construction
project. “Everybody has tunnel vision on a construction project. ... Everyone’s in it for them, and all they want to do is get in, do their work and get out,” Riano said. “That’s part of the problem.” As an example, Riano described a situation in which a painter is unsure which color to use on a particular wall. Typically, the painter must go to the on-site supervisor — which can take a day or two, he said — who then goes to the general contractor. “Then the general contractor has to figure out how to get in touch with the client to ask this one little question, and the client may not be available for a week to talk to him,” Riano said. “Or they may say, ‘I need to see it, but I’m not available to see it for a week.’ ” The accumulation of such small delays is responsible for missed deadlines at countless construction projects. Riano’s See GREENBY3, Page 14
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The Citadel, Jenkins Hall Exterior Envelope 171 Moultrie St., Charleston Developer/owner: The Citadel, Charleston Architecture firm: Red Iron Architects LLC, Charleston Engineering firm: ADC Engineering, Hanahan (envelope building specialist) Estimated completion date: September 2015 Estimated total cost of project: $750,000 Jenkins Hall is a three-story, approximately 36,000-square-foot building on The Citadel campus. Architectural services will consist of selective demolition and window and door repair or replacement. The main aluminum storefront entry will be replaced and a handicap-accessible ramp will be added to the front of the building. See UNDER CONSTRUCTION, Page 15
Next Issue’s Focus:
Law
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IN FOCUS: ARCHITECTURE, ENGINEERING AND CONSTRUCTION
June 1 - 14, 2015
Charleston BAR defers Beach Co.’s latest plan for Jasper parcel By Ashley Heffernan
T
aheffernan@scbiznews.com
he Charleston Board of Architectural Review discussed three proposed buildings on the peninsula’s west side in mid-May and chose to defer one, approve another and give partial approval to the third. By a vote of 3-2, the board agreed to defer a controversial 18-story tower that The Beach Co. wants to build off Broad Street. The meeting, held at Burke High School, drew hundreds of residents — some wearing red pins that read “Size matters” — who spoke out against the company’s plan to replace the Sergeant Jasper apartment building. John Darby, president of The Beach Co., talked about the history of the Jasper site. “My grandfather built the Jasper in the late ’40s, and for 65 years, it’s been the anchor of the west end of Broad Street. At one time, The Beach Company had its headquarters there,” Darby said. “We have about 40 shareholders, and over half of them at one time in their lives have lived at Sergeant Jasper. So we know how important this site is.” Joe Antunovich of Chicago-based
Board of Architectural Review members examine planning documents for The Beach Co.’s new Jasper proposal. (Photo/Ashley Heffernan) Right: The Beach Co.’s plan for the Jasper parcel included 80 residential units and 118,000 sq. ft. of office space. (Rendering/The Beach Co.)
architecture firm Antunovich Associates said the site would include about 120,000 square feet of Class A office space, a little more than 40,000 square feet of retail space, an enclosed parking garage and 80 residential units. A tower on the parcel was proposed to stand 18 stories tall.
“What we’re interested in doing is leaving a legacy here for all Charlestonians, a legacy that will include a park that runs all the way from the lake to the river, a park that will, in fact, integrate all of the properties — not just at the site — that we have,” Antunovich said.
Representatives from the Preservation Society of Charleston and Historic Charleston Foundation said they were against the proposal, along with several nearby residents. “At 214 feet tall, the proposal would be the tallest building in the city of Charleston. It would be nearly four times the height of what the city recommended in its downtown plan. Not only would this height overwhelm the neighborhood, it would drastically alter the Charleston skyline,” Preservation Society Executive Director Kristopher King said. Winslow Hastie, chief preservation officer for Historic Charleston Foundation, also recommended denying the plan. “It is our belief, strongly, that no one could reasonably argue that this building
June 1 - 14, 2015
is compatible with the historic district or the neighborhoods surrounding it,” Hastie said. One resident called the plan an “elephant on a postage stamp” while another said the tower belongs in Summerville, not in downtown Charleston. Architecture review board members appeared to agree with many of the citizens’ complaints. Board members Jay White and Bill Wallace both said the building was too tall, while member Janette Alexander suggested resizing the tower and Bob Faust said it was “not in harmony with keeping with the neighborhood.” Erika Harrison, who was acting as chairwoman for the vote because chairwoman Phyllis Ewing recused herself from the application, called the proposal a “good, quality, solid design for this particular site.” Alexander, Wallace and Harrison ended up voting to defer the proposal based on its height, scale and mass. Faust and White voted against the motion. Faust said he voted against the motion to defer because he thought the application needed to be “tweaked,” not deferred to start over. After the vote, The Beach Co.’s president released a statement. “I’m confident in the capabilities of our design team and the plan we’ve created to improve the Sergeant Jasper site,” Darby
IN FOCUS: ARCHITECTURE, ENGINEERING AND CONSTRUCTION
The first two eight-story WestEdge buildings are expected to include a grocery story, residential units and office space in the 382 Spring St. area. (Renderings/WestEdge)
Medical University of South Carolina, Roper Hospital and “I strongly believe that the Ralph H. JohnVA Medical communities need to pivot if son Center. The research they want to progress.” building, which is expected to be Joe Riley WestEdge 151,000 square feet Charleston Mayor The board also and include laboreviewed the first two ratories as well as buildings proposed street-front retail for the WestEdge project, which was for- space, was given unanimous conceptual merly known as the Horizon project. approval. Developers introduced 10 WestEdge, The multiuse building, which would an eight-story multiuse building, and include a grocery store, retail space, res22 WestEdge, an eight-story research idential units and an enclosed five-stoand office building for the development, ry parking garage, was unanimously which is planned to be built near the approved for height, scale and mass but said in the statement. “The Jasper will feature high-quality Charleston architecture and will be a positive addition to this special part of the peninsula.”
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deferred for architectural direction. “It’s kind of a hard act to follow from the first building,” Harrison said. “I think it’s ... the number of balconies. It detracts from the presence that the building could possibly have. That may be why this looks a little over-stylized but then kind of dull at the same time.” The entire WestEdge development is expected to be complete in about 12 to 15 years. Charleston Mayor Joe Riley has been pushing for the project along with leaders from the Medical University of South Carolina. “I strongly believe that communities need to pivot if they want to progress,” Riley said in a statement. “That’s what WestEdge represents: a shift that positions Charleston as a leader in the biotechnology research industry.” MUSC President Dr. David Cole said WestEdge will help the university recruit and retain employees. “WestEdge will provide MUSC a competitive advantage in recruiting the brightest thought leaders in health care research and life sciences,” Cole said in a statement. “MUSC’s presence in WestEdge will play a vital role in the expansion of our research programs and further the collaboration between MUSC and the business community.” cr bj
Reach staff writer Ashley Heffernan at 843-849-3144 or @AshleyBHeff on Twitter.
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IN FOCUS: ARCHITECTURE, ENGINEERING AND CONSTRUCTION
June 1 - 14, 2015
The interior of GreenBy3’s offices on upper King Street in Charleston is filled with and made primarily from reclaimed construction and demolition materials. (Photo/Chris McCandlish)
mechanical engineers, power companies, data cabling contractors, and heating and company works to bridge those gaps. air companies to see to specific situations: “We become the communication hub,” Air conditioning must be sufficient to cool he said. “We build relationships with every- computer systems; transformers must be body on the team. ... We want to make the right size for scalability; data cabling sure that if the plumber is working in the specs must be accurate; and, if the client restroom and there’s electrical involved, the has a data room, Riano makes sure that the electrical guy needs to know about it.” mechanical systems aren’t pushing hot air Riano’s business partner, Mariel Simp- into that room in the winter. son, said she’s heard GreenBy3’s role “If you think about it, you have an archidescribed as that of a tect, you have a genwedding planner for eral contractor, you building projects. “The more they trust us, the have all these trades,” “It’s the person Riano said, “and you who oversees every- more they can focus on their have this high-tech thing on a high level, company whose but also on a very, core business, because that business revolves very detailed level,” around technology. core business is what’s Well, there’s no one in Simpson said. GreenBy3 also this picture who can paying for that building.” design their technispecializes in using reclaimed matecal infrastructure for Jorge Riano rials and building them for their new founder, scalable infrastrucbuilding.” GreenBy3 ture for tech offices. With more busiRiano and Simpson nesses moving to or built their Upper King Street office with starting up in Charleston, Riano seems to reclaimed materials, and they store mate- have found a niche. He spearheaded the rials there and in a storage unit for use on construction of PeopleMatter’s Upper King future projects. Street offices, where he installed a 300-kiloReusing materials is beneficial because watt generator to meet the company’s techit saves clients and contractors money and nical requirements. it keeps the materials out of landfills, Riano “That generator is designed not only said. for that building, but for the next building His experience with building the offices that’s going to go in,” Riano said. of ATD gave Riano perspective on building That big-picture vision, according to high-tech facilities designed to grow and Riano, is at least as important as his technoscale. logical expertise and disruptive approach. After consulting with tech clients to find “We want them to trust us with everyout how long they plan to be in a building thing that we’re doing for them,” he said. and what their technical needs are, Green- “Because the more they trust us, the more By3 draws up a plan and lays it over the they can focus on their core business, architect’s drawings. because that core business is what’s paying Then, Riano works with electrical and for that building.” GREENBY3, continued from Page 11
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June 1 - 14, 2015
CHARLESTON UNDER CONSTRUCTION
Bowman Place 1110 Bowman Road, Mount Pleasant Developer: Grove Property Fund LLC Architecture firm: Stubbs Muldrow Herin Architects Inc., Mount Pleasant General contractor: Choate Construction, Mount Pleasant Engineers: Seamon Whiteside & Associates, Mount Pleasant (civil and landscape); Curry Engineers, Mount Pleasant (structural); DWG Consulting Engineers, Mount Pleasant (mechanical, electrical, plumbing) Estimated completion date: Fall 2015 A small section of the buildings toward Bowman Road will be removed to improve access to the property. Dicks Sporting Goods, Nordstrom Rack and Kitchen & Co. are among the retailers that will anchor the new center.
Ashley Ridge High School 9800 Delemar Highway, Summerville Developer/owner: Dorchester County School District 2, Summerville Architecture firm: Red Iron Architects LLC, Charleston General contractor: Edcon Inc., Peak Engineering firm: RMF Engineering, Charleston (mechanical, electrical, plumbing and fire protection); ADC Engineering, Hanahan (civil and structural) Estimated completion date: December 2015 Estimated total cost of project: $9.5 million Phase three of this addition and renovation is ongoing. New spaces include a career and technology wing that will house four biomedical labs, four engineering labs, two horticulture labs, one small-engine repair lab and one culinary lab with a dining room accommodating 72 people. Four new sports medicine classrooms and two varsity locker rooms will be added, along with two music rooms, plus support rooms for the band including office space, instrument storage, uniform storage and practice rooms. Renovation of existing spaces will include an art classroom, storage areas and two computer rooms. The scope also consists of site planning.
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CHARLESTON UNDER CONSTRUCTION
June 1 - 14, 2015
Gadsden House 329 East Bay St., Charleston Developer/owner: Luxury Simplified Construction, Charleston; and King Street Hospitality, Charleston Architecture firm: The Middleton Group, Charleston General contractor: Luxury Simplified Construction, Charleston Estimated completion date: July 2015 Estimated total cost of project: $1 million This complete renovation of a downtown Charleston mansion built in 1798 is taking place with oversight from Historic Charleston Foundation of internal and external easements. The project includes 8,000 square feet of conditioned space over a main five-story brickbuilt mansion and two dependencies, plus a quarter of an acre of landscaped garden. All 20th-century additions will be removed and missing original architectural features will be reinstated. All services will be replaced to current building code standards for its intended use as event space. Four original fireplaces and 52 large sash windows will be salvaged, as will numerous historic doors and floors. Iron main gates by Philip Simmons will see major repairs and coordination of the relocation of greenhouses and horticulture education spaces.
Cedar Grove 8708 Evangeline Drive, North Charleston Property manager: Bonaventure Property Management Services LLC, Arlington, Va. Owner: BPMS Virginia University LLC and Mountain Energy Cedar Grove LLC, Arlington, Va. Architecture firm: J. Price Architecture, Kansas City, Mo. General contractor: J. Musselman Construction Inc., Charleston Estimated completion date: June 15 Estimated total cost of project: $260,426 This project consists of construction of an amenities package including a renovation and expansion of the existing gym area and renovation of the existing business office. Addition of a new, screen-enclosed porch overlooking the pool area will have composite flooring, boxcar ceiling trim and a wet bar. Addition of two new open-air cabanas will include decorative masonry, gas fire pits, cooking stations, cabinetry and entertainment centers.
June 1 - 14, 2015
CHARLESTON UNDER CONSTRUCTION
Charleston International Airport renovation 5500 International Blvd., North Charleston Owner: Charleston County Aviation Authority, North Charleston Architecture firm: Fentress Architects, Denver General contractor: Joint venture of Austin Commercial, Dallas and Charleston; Hitt Contracting, Charleston Engineering firm: Mead & Hunt, Lexington Estimated completion date: January 2016 Total cost of project: $189 million When completed, the airport terminal will include 15 airline gates, a modernized baggage handling system, consolidated security screening checkpoint, efficient central energy plant, new airline check-in stations and all-new retail and dining.
Nash Orthodontic 1142 LaCannon Lane, Mount Pleasant Architecture firm: Rush Dixon Architects LLC, Mount Pleasant General contractor: Harbor Contracting LLC, Mount Pleasant Estimated completion date: Fall 2015 This new, 3,626-square-foot orthodontic office building will be a single story with a covered entry. Materials include concrete slab on grade, metal studs, masonry brick veneer with HardiPlank siding and decorative timber brackets, a wood-framed roof structure, a shingle roof, impact doors and windows, site work and landscaping.
Nexton Elementary School 200 Scholar Way, Summerville Developer/owner: Berkeley County School District, Moncks Corner Architecture firm: LS3P Associates, Charleston General contractor: Contract Construction Inc., Irmo Engineering firm: RMF Engineering Inc., Charleston (mechanical, electrical, plumbing and fire protection); ADC Engineering, Hanahan (structural); Seamon Whiteside & Associates, Mount Pleasant (civil) Estimated completion date: Summer 2015 Estimated total cost of project: $20 million This project consists of a new elementary school for pre-kindergarten through fifth graders at Sheep Island in the Nexton development. The school will be approximately 105,000 square feet and will initially accommodate 780 students with room to expand to 900.
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CHARLESTON UNDER CONSTRUCTION
June 1 - 14, 2015
Tides IV 155 Wingo Way, Mount Pleasant Developer/owner: East West Partners, Charleston Architecture firm: LS3P, Charleston General contractor: Brasfield & Gorrie, Atlanta Engineering firms: Seamon Whiteside, Mount Pleasant (civil and landscape); BW&A, Atlanta; Postcard from Paris, Greenville (interior design) Estimated completion date: Summer 2016 Estimated total cost of project: $30 million The 54-residence, seven-story Tides IV will use reclaimed heart pine, grasscloth, shiplap and Savannah brick. Floor-to-ceiling windows will allow natural light throughout each unit.
Adams Outdoor Advertising 4845 O’Hear Ave., North Charleston Owner/developer: Adams Outdoor Advertising, Ladson Architecture firm: Millan, Pazdan, Smith Architects, Charleston General contractor: SouthCon Building Group LLC, Mount Pleasant Engineering firm: Thomas and Hutton Engineering, Mount Pleasant Estimated completion date: November Estimated total cost of project: $3.5 million The project consists of approximately 9,000 square feet of office space and 4,000 square feet of warehouse space for the new company headquarters. The office is a steel-frame structure with radius bottom cord trusses, impact-resistant glass and storefront. The exterior is clad with brick veneer and a standing-seam metal panel roof system. 
Williams Terrace Senior Housing Laurens Street, Charleston Developer/owner: The Housing Authority of City of Charleston Architecture firm: McMillan Pazdan Smith Architecture, Charleston General contractor: GSC Construction Inc., Augusta, Ga. Engineering firms: 4SE Inc., Charleston (structural); ADC Consulting Engineers, Hanahan (civil); RMF Engineering, Charleston (mechanical); Forsberg Engineering Inc., Charleston, and Wertimer & Associates LLC, Charleston (landscape); Aiken Cost Consultants, Greenville (cost) Estimated completion date: July 2015 Estimated total cost of project: $9.7 million The project will include 55 loft-style units, ground-floor parking, a ground-level screened porch and a rooftop community room with an adjacent terrace. All units will be handicap-accessible.
June 1 - 14, 2015
CHARLESTON UNDER CONSTRUCTION
Roper St. Francis Office Park Palmetto Commerce Parkway, North Charleston Owner: Roper St. Francis Architecture firm: LS3P, Charleston General contractor: Trident Construction, Charleston Engineering firms: Thomas & Hutton, Mount Pleasant (civil); ADC Engineering, Hanahan (landscape); CMC Cary Engineering, Taylors (structural); DWG Consulting Engineers, Mount Pleasant (mechanical and fire protection); Camacho, Charlotte (food service) Estimated completion date: January 2016 Estimated total cost of project: $25 million This five-story building is approximately 130,000 square feet and will accommodate support services staff for Roper St. Francis. Program elements include training and meeting rooms, a cafeteria, a lobby and staff areas for services such as human resources, information technology, contact center and billing services.
West Ashley offices 2067 Charlie Hall Blvd., Charleston Owner: Palmetto Medical Development II LLC, Charleston Architecture firm: Shook Associates, Mount Pleasant General contractor: J. Musselman Construction Inc., Charleston Estimated completion date: June 2015 Estimated total cost of project: $619,781 This construction of a new office space includes timber piles, concrete pile caps, grade beams and slab. It will have structural steel framing with a premanufactured wood truss system. Exterior finishes will be brick masonry, HardiPlank siding, decorative columns and architectural shingles. Site work will include new sewer, power, plumbing, storm drainage, sidewalks, landscaping and irrigation.
Harvest Pointe Church of Christ 4870 Piedmont Ave., North Charleston Developer/owner: Harvest Pointe Church of Christ, North Charleston Architecture firm: GJS Architecture, North Charleston General contractor: JW Painting & Repairs LLC, North Charleston Engineering firm: Epic Engineering, Mount Pleasant (mechanical, plumbing, electrical) Estimated completion date: March 2015 Estimated total cost of project: $286,000 A new foyer and cafe are being constructed along with restrooms at the main entrance into the facility, originally built in 1944. The main space is a contemporary design including flexible seating, a blackout ceiling, LED lighting and audiovisual system.
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CHARLESTON UNDER CONSTRUCTION
June 1 - 14, 2015
Cigar Factory 701 East Bay St., Charleston Owner: Cigar Factory Development LLC, Charleston Architecture firm: Stevens & Wilkinson, Atlanta General contractor: Trident Construction, North Charleston Engineering firms: Stevens & Wilkinson, Atlanta (mechanical/fire protection); 4SE Inc., Charleston (structural); Forsberg Engineering and Surveying Inc., Charleston (civil) Estimated completion date: May (core and shell); Summer 2015 (interior upfits) Estimated total cost of project: $18 million The project includes the rehabilitation of the existing 230,000-square-foot historic building into a mixed-use development including retail, restaurant, event and office spaces. In addition to the core and shell rehabilitation, interior upfits are being done for Garden and Gun magazine, Lee & Associates, Pure Insurance, 86 LLC, Enviromix and the Cedar Room event space.
Blue Acorn Expansion 148 Williman St., Charleston Developer: Raven Cliff Co., Sullivan’s Island Architecture firm: The Middleton Group, Charleston General contractor: Lennon Construction, Charleston Engineering firms: Live Oak Consultants, North Charleston (mechanical) and Jason Broadway, Mount Pleasant (structural) Estimated completion date: Fall 2015 The renovation project is an expansion of the Blue Acorn eCommerce headquarters across the street at 146 Williman St. The project will have an open-office concept and flexible work pods.
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CHARLESTON UNDER CONSTRUCTION
1 Central Island Plaza 115 Central Island St., Charleston Developer: Holder Properties, Atlanta Architecture firm: Warner Summers Architecture & Interior Design, Atlanta General contractor: Integra Construction, Atlanta Estimated completion date: June 2015 The building on Daniel Island is a four-story, 75,000-square-foot, multitenant Class A office building with surface parking area for approximately 265 vehicles. Lead tenants include HCA South Atlantic, Alliance Consulting Engineers, Thalhimer and Arthur J. Gallagher Risk Management Services. The first, second and third floors are available for lease. The development will use approximately 3.5 acres in the Town Center district. The building, which broke ground in October, will be available for new tenants in June.
City of North Charleston Public Works Complex 5800 Casper Padgett Way, North Charleston Owner: City of North Charleston Architecture firm: Stubbs Muldrow Herin Architects, Mount Pleasant General contractor: Trident Construction, North Charleston Engineering firms: Thomas & Hutton, Mount Pleasant (civil/landscape); ADC Engineering, Hanahan (structural); DWG Engineering, Mount Pleasant (mechanical/electrical/plumbing) Estimated completion date: June Estimated total project cost: $36 million This new complex consists of several separate structures, including an administration building, truck and car maintenance facilities, carwash, truck wash, gas station, greenhouse, and various other support, storage and warehouse buildings. The 52-acre urban redevelopment project is a former Air Force base housing area.
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CHARLESTON UNDER CONSTRUCTION
June 1 - 14, 2015
Mount Pleasant Fire Station No. 6 Carolina Park Boulevard and Warrior Way, Mount Pleasant Owner: Town of Mount Pleasant Developer: Carolina Park Architecture firm: Stewart-Cooper-Newell Architects, Gastonia, N.C., in conjunction with GJS Architects LLC, Mount Pleasant General contractor: GSC Construction Inc., Augusta, Ga. Engineering firms: Taylor & Viola, Hickory, N.C. (structural); Cheatham & Associates P.A., Wilmington, N.C. (mechanical, plumbing, electrical); Thomas & Hutton, Mount Pleasant (civil) Estimated completion date: November 2015 Estimated total cost of project: $2.6 million The new fire station will serve the Carolina Park development and surrounding area. It is designed to complement the development’s Lowcountry aesthetic, featuring an all-brick masonry facade underneath a sharply pitched asymmetrical metal roof. The station provides new residential and work quarters for Mount Pleasant firefighters.
Benefitfocus Customer Success Center 215 Benefitfocus Way, Charleston Owner: DIEC II LLC, Daniel Island General contractor: Choate Construction Co., Mount Pleasant Architecture firm: James Verkaik Architect, Mount Pleasant Engineering firm: Empire Engineering, North Charleston (civil) Completion date: December 2014 Benefitfocus Inc. expands its Daniel Island technology campus with a new, 145,800-square-foot facility to house its growing base of customer implementation and service associates. The four-story, tilt-wall structure includes 27 conference rooms, 47 “huddle” rooms, a cafe and outdoor patio. Each area has access flooring, modern furnishings and abundant natural light. Wide walking paths, cart paths and trails provide interconnectivity between each of the company’s facilities.
June 1 - 14, 2015
CHARLESTON UNDER CONSTRUCTION
Porter-Gaud Upper School 300 Albemarle Road, Charleston Developer/owner: Porter-Gaud School Architecture firm: McMillan Pazdan Smith Architecture, Charleston Engineering firms: Britt Peters & Associates Inc., Mount Pleasant (structural); ADC Consulting Engineers, Hanahan (civil); Mechanical Engineering Consulting Associates Inc., Wando (mechanical) The new building will be approximately 47,000 square feet and will consist of 24 classrooms, administrative space and a media center. Located adjacent to the existing senior parking lot, the Upper School will also define a new courtyard area between the Science and Technology Building, Wendell Center and carpool lane.
Ruth’s Chris steakhouse 55 S. Market St., Charleston Owner: Mark and Nancy Oswald Architecture firm: LS3P, Charleston General contractor: Construction Professionals Inc., Mount Pleasant Engineering firm: Newcomb & Boyd, Charleston; Jenny Keenan Interiors, Charleston Estimated completion date: Spring 2015 Estimated total cost of project: $2.25 million The restaurant will occupy approximately 7,900 square feet of space that will connect the French Quarter Inn lobby with a historic building on Market Street. A large bar and elevated dining area will occupy the Market Street entrance. The main dining room will be connected to the elevated seating area and will have a brick fireplace. Private dining, which can also be used for business meetings, is available for 12-70 guests.
Oyster Point Phases 1A and 1B 1500 Pearl Tabby Drive, Mount Pleasant Developer/owners: DR Horton, Mount Pleasant Architecture firm: Seamon Whiteside & Associates, Mount Pleasant General contractor: Sanders Brothers, North Charleston Engineering firm: Seamon Whiteside & Associates, Mount Pleasant (civil) This project, located on 200 acres along the Intracoastal Waterway, includes 197 single-family lots, town houses and duplex units. A 20-acre park with an amenity complex along with walking and bike trails is included.
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CHARLESTON UNDER CONSTRUCTION
Restoration on King 75 Wentworth St., Charleston Developer: Jeffrey R. Anderson Real Estate, Cincinnati Architecture firm: Phoenix Architecture, Cincinnati; Neil Stevenson Architects, Charleston General contractor: Miller-Valentine Commercial Construction, Charleston Engineering firm: Advantage Group Engineers, Cincinnati Estimated completion date: October 2015 This new, seven-story, 34-room boutique hotel will be an addition to the existing Restoration on King Hotel on Wentworth Street. Features include a rooftop bar and restaurant, a fifth-floor pool and deck, a coffee shop, a nail bar, a salon, a day spa, structured parking under the hotel, meeting rooms and event space. This project also includes the renovation of 77 Wentworth St., a three-story existing structure that will be converted into additional guest rooms, spa area, meeting facilities, and lounge and lobby space.
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Charleston Harbor Resort and Marina 24 Patriots Point Blvd., Mount Pleasant Developer/owner: Brothers Property Management, Coral Gables, Fla. Architecture firms: Glick Boehm Architects, Charleston; Seamon Whiteside & Associates, Mount Pleasant (landscape) General contractor: Hogan Construction, Charleston Engineering firm: Seamon Whiteside & Associates, Mount Pleasant (civil) Estimated completion date: Fall 2015 The new, 92-room boutique hotel is an expansion of the existing Charleston Harbor Resort and Marina. The facility will include multiple swimming pools overlooking Charleston Harbor, a spa, a tiki bar, pool cabanas and food service for outdoor dining.
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Bennett Hospitality Marion Square Hotel 404 King St., Charleston Developer/owner: Michael Bennett, Bennett Hospitality, Charleston Architecture firm: Winford Lindsay Architect, Glenview, Ill. Design consultant: Fairfax & Sammons Architecture, New York General contractor: Balfour Beatty Construction, Dallas Engineering firms: Winford Lindsay Architect, Glenview, Ill. (structural, mechanical); Seamon Whiteside, Mount Pleasant (civil, landscape) Estimated completion date: August 2017 Estimated total cost of project: $101 million The 200,000-square-foot, eight-story luxury hotel will feature 185 guest rooms and a grand lobby entrance. A bilevel restaurant overlooking Marion Square and a separate bar and lounge area will be among the hotel’s amenities. The project also includes a rooftop pool with cabanas and bar, full-service spa, meeting space and a ballroom.
King and Calhoun retail King and Calhoun streets, Charleston Owner: King & Calhoun LLC, Charleston Architecture firm: Goff-D’Antonio Associates Ltd., Charleston General contractor: Choate Construction Co., Mount Pleasant Engineering firms: DWG Inc., Mount Pleasant (mechanical, electrical, plumbing); Tobias & West LLC, Mount Pleasant (structural) Estimated completion date: Spring 2015 The project is the renovation of the existing old Millennium Music building at King and Calhoun streets. The new complex will house new retail and restaurant space, including a three-story portion on the east end of the building with a separate glass-entry rooftop restaurant. A granite portal with stainless steel canopy will serve as the main retail entry at the corner of King and Calhoun.
CHARLESTON UNDER CONSTRUCTION
Spectator Hotel 67 State St., Charleston Owner: The Spectator LLC, Charleston Architecture firm: LS3P, Charleston General contractor: Construction Professionals Inc., Mount Pleasant Engineering firms: Jenny Keenan Interior Design, Charleston; Designworks Landscape Architecture, Charleston; DWG Engineering, Mount Pleasant; ADC Engineering, Hanahan; Thomas & Hutton Civil Engineering, Mount Pleasant Estimated completion date: June 2015 Estimated total cost of project: $10.5 million The project is a 41-room boutique hotel at the corner of State and Linguard streets, one block from the Charleston City Market. The building is three levels of hotel rooms over a ground level of parking and a small lobby and lounge.
Bohemian Hotel 55 Wentworth St., Charleston Owner: The Kessler Collection, Orlando, Fla. Architecture firm: Reese Vanderbilt & Associates, Atlanta (lead); LS3P, Charleston General contractor: Mashburn Construction, Charleston Engineering firms: Browder & LeGuizamon and Associates Inc., Atlanta; Jordon & Skala Engineers, Norcross, Ga.; Forsberg Engineering & Surveying Inc., Charleston Estimated completion date: June 2015 Estimated total cost of project: $16 million The project is a 66,000-square-foot boutique hotel at the corner of Wentworth and Meeting streets. Amenities include a 1,000-squarefoot art gallery; 1,000 square feet of retail space; 2,000 square feet of meeting space; and a 3,000-square-foot rooftop bar and restaurant.
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IN FOCUS: ARCHITECTURE, ENGINEERING AND CONSTRUCTION
www.charlestonbusiness.com
June 1 - 14, 2015
Architecture Firms
Ranked by No. of Registered Architects in the Charleston Area Phone Website
Top Local Official(s)/Year Founded
LS3P 205 1/2 King St. Charleston, SC 29401
843-577-4444 www.ls3p.com
Thompson E. Penney, George Temple, Marc Marchant
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Architecture, interiors, planning
McMillan Pazdan Smith Architecture LLC 12-A Vanderhorst St. Charleston, SC 29403
843-566-0771 www.mcmillanpazdansmith.com
Eddie Bello, Anne M. Maguire, D. Paulette Myers
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Planning and programming, architecture, interior design, construction administration, historic preservation, sustainable design
SGA Architecture 1535 Hobby St., Suite 204 North Charleston, SC 29405
843-853-4506 www.sgaarchitecture.com
Patrick Pernell, Don Baus, Lyudmila Sobchuk
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Planning, architecture and landscape architecture for educational, commercial, health care, ecclesiastical, recreational, hospitality and high-end custom residential; interior design
Stubbs Muldrow Herin architects 400 Hibben St. Mount Pleasant, SC 29464
843-881-7642 www.smha.com
Charles Muldrow, Sam Herin
9 15
Architecture, programming, planning, sustainable design
Glick Boehm & Associates Inc. 493 King St., Suite 100 Charleston, SC 29403
843-577-6377 www.glickboehm.com
Myles I. Glick
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Architecture, interior design, planning
Herlong & Associates 2214 Middle St. Sullivan's Island, SC 29482
843-883-9190 www.herlongarchitects.com
Steve Herlong, Jim Henshaw
7 16
Architecture, interior architecture, interior design
Thomas and Denzinger Architects 73 1/2 State St. Charleston, SC 29401
843-577-5373 www.thomasanddenzinger.com
Hermann Denzinger, James G. Thomas
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Architecture, interiors, master planning
Rosenblum Coe Architects, Inc. 1643 Means St. Charleston, SC 29412
843-577-6073 www.rosenblumcoe.com
Steve Coe, Ken Harkins, Jeffrey Rosenblum
5 9
Architecture, Master planning, interior architecture
CEMS Engineering / Architecture 3509 Iron Horse Drive Ladson, SC 29456
843-875-3637 www.cemsengineering.com
Kevin Chafin, Stephen Mahaffey, Paul Mahaffey
4 43
Full-service architecture; landscape, architecture, planning, civil, electrical, mechanical, fire protection and structural engineering
Goff D'Antonio Associates Ltd. 34 Radcliffe St. Charleston, SC 29403
843-577-2163 www.goffdantonio.com
R. Garey Goff, Henry D'Antonio Jr.
4 10
Architecture, interior architecture, and planning for hospitality, education, multi-family, health care and commercial projects
Insite Strategy & Architecture 21 George Street Suite 100 Charleston, SC 29401
843-793-4102 www.insiteSomething.com
Thomas J. Hund, Nathan J. Schutte
4 6
INSITE strategy + architecture is a design firm that we created for the sole purpose of making better places for life. We are a company of talented professionals dedicated to a deliberate approach to design and project delivery.
Lindbergh & Associates, a T.Y. Lin International Company 2170 Ashley Phosphate Road North Charleston, SC 29406
843-553-6670 www.tylin.com
Richard Garcia
4 36
Architecture, engineering, and surveying for the federal, municipal, health care, higher education and industrial markets
Michael Baker Jr. Inc. 4401 Belle Oaks Drive, Suite 105 North Charleston, SC 29405
843-329-0050 www.mbakercorp.com
John Walsh
4 99
Architecture, interior design, highway, bridge, aviation design, environmental and construction services
Spivey Architects Inc. 147 Wappoo Creek Drive, Suite 304 Charleston, SC 29412
843-795-9370 www.spiveyarchitects.com
Michael W. Spivey
4 7
Master planning, architectural design, consultation, corporate Interiors, tenant upfit
Thompson Young Design 3 Morris Street, Suite B Charleston, SC 29401
843-277-0996 www.thompsonyoung.com
Simons W. Young, Jonathan W. Thompson
4 6
New construction, historic renovation, adaptive reuse, hospitality/restaurant design, and custom residential design
Camens Architectural Group LLC 3461 Maybank Highway Johns Island, SC 29455
843-768-3800 www.camensarchitecturalgroup.com
Marc Camens, Anna Camens Dinger
3 9
Custom residential home design, construction administration
Christopher Rose Architects, P. A. 3509 Meeks Farm Road Johns Island, SC 29455
843-559-7670 www.chrisrosearchitects.com
Christopher A. Rose
3 7
Custom Residential Architectural services for new homes and renovation.
Cummings & McCrady Inc. Architects 44-D Markfield Drive Charleston, SC 29407
843-577-5063 www.cummingsandmccrady.com
Dan Beaman, Jerry English, Benjamin Whitener
3 7
Architecture, Condition Assessments, Historic Preservation
Maresca & Associates Architects Inc. 98 1/2 Broad St. Charleston, SC 29401
843-727-2555 www.markmaresca.com
Mark A. Maresca
3 5
Architecture, interior design, lighting design, product design
Neil Stevenson Architects 680 King St Unit B Charleston, SC 29403
843-853-8800 www.neilstevensonarchitects.com
Neil Stevenson, Tara Romano
3 4
Red Iron Architects LLC 147 Wappoo Creek Drive, Suite 305 Charleston, SC 29412
843-834-2677 www.red-ironarchitects.com
Emma Souder
3 6
Anderson Studio of Architecture & Design 129 Broad St. Charleston, SC 29401
843-937-6001 www.theandersonstudio.com
Scott W. Anderson, Scott W. Anderson
2 9
Architecture, interior design, interior architecture
Architecture Plus LLC 1044 E. Montague Ave. Suite 201 North Charleston, SC 29405
843-480-2733 www.architectureplusllc.com
Kevin E. Whalley, Tim S. Hilkhuijsen, Arron Ede, Arron Ede
2 6
Residential and commercial new construction design, renovations, adaptive reuse of existing and historic buildings design, design of public facilities
BRPH 4105 Faber Place Drive, Suite 480 North Charleston, SC 29405
843-760-4623 www.brph.com
Sebastien Doucet, Marti Watts
2 18
Architecture, engineering, interior design, design-build
Byers Design Group LLC 721 King St. Charleston, SC 29403
843-577-5703 www.byersdesign.com
Sanford E. Byers, E. Todd Richardson, Luke Z. Jarrett
2 9
Architecture, land planning, landscape architecture, project management, rezoning, planned-unit developments
Company
LEED=Leadership in Energy & Environmental Design. View this list online at www.scbiznews.com/data. Although every effort is made to ensure accuracy, errors sometimes occur. Email additions or corrections to lists@scbiznews.com or go to www.tinyurl.com/joinourlists.
Architects/ Employees
Major Services
Commercial and residential design; urban infill; zoning, design review board and permitting specialists; historical renovation; new construction design; structural insulated panel and sustainable design specialists Architecture, space planning, programming, interior design, construction administration for governmental, educational, health care and commercial clients, Green Globes and LEED project consulting
Researched by Melissa Verzaal
IN FOCUS: ARCHITECTURE, ENGINEERING AND CONSTRUCTION
June 1 - 14, 2015
www.charlestonbusiness.com 27
Architecture Firms
Ranked by No. of Registered Architects in the Charleston Area Company
Phone Website
Top Local Official(s)/Year Founded
Architects/ Employees
Coast Architects Inc. 671 St. Andrews Blvd. Charleston, SC 29407
843-763-7064 www.coastarchitects.net
Frank A. McClure III, Connie Dyer Zafiris
2 4
Architectural and design services
Cobb Architects 67 Washington St. Charleston, SC 29403
843-856-7333 www.cobbarchitecture.com
Darryl A. Cobb
2 5
Custom homes, renovation, small commercial
Cumulus Architecture & Design LLC 132 East Bay St., Second Floor Charleston, SC 29401
843-607-3888 www.cumulusarchitecture.com
Abby F. Lesslie, Robert D. Lesslie Jr.
2 2
Architecture, custom residential architecture, renovations, conceptual design, island design, home design
Rush Dixon Architects 712 S. Shelmore Blvd. #102 Mount Pleasant, SC 29464
843-270-8943 www.rushdixon.com
Rush Dixon III, Judy Dixon
2 3
Commercial and residential architecture
Dufford Young Architects 20 Elizabeth St. Charleston, SC 29403
843-577-0737 www.duffordyoungarchitects.com
Philip Dufford, John Young
2 3
Architecture, interiors, planning
Kevan Hoertdoerfer Architects 538 King St. Charleston, SC 29403
843-724-6002 www.hoertdoerferarchitects.com
Kevan Hoertdoerfer
2 4
Architecture, master planning
Glenn Keyes Architects LLC 12B Vanderhorst St. Charleston, SC 29403
843-722-4100 www.glennkeyesarchitects.com
Glenn Keyes
2 3
Historic preservation and compatible new design
KSQ Architects PC B 2010 Wappoo Drive Charleston, SC 29412
843-795-3151 www.ksqarchitects.com
Steve A. Wells, Mark G. Clancy
2 2
Higher education, K-12 schools, health care, park and recreation, mixed use and multifamily housing
Meadors 2811 Azalea Drive Charleston, SC 29405
843-723-8585 www.meadorsinc.com
James C. Meadors, Becky Fenno
2 50
Architecture, construction, cabinetry and millwork, conservation, historic restoration, new construction, residential, commercial, remodeling
The Middleton Group 1630 Meeting Street Road Charleston, SC 29405
843-302-0632 www.themiddletongroup.net
Laura K. Middleton, Blake Middleton
2 5
Planning, sustainable design, custom home design, residential renovations and additions, stock home plans, commercial architecture, restaurant design
Schmitt Walker Architects Ltd. LLC 91-B Broad St. Charleston, SC 29401
843-727-3140 www.schmittwalker.com
James S. Walker
2 4
Architecture, planning, interior architecture, interior space planning
Studio A Inc. Architecture 474B King St. Charleston, SC 29403
843-577-9641 www.studioa-architecture.com
Whitney K. Powers
2 3
Architecture, sustainable architecture, planning, feasibility studies, historic preservation and restoration, adaptive reuse
Tyler A. Smyth Architect LLC 990 Morrison Drive, Suite B Charleston, SC 29403
843-425-0321 www.tylerasmyth.com
Tyler A. Smyth
2 3
Architecture and full service design, specializing in custom residential architecture
Waldon Studio Architects 1100 Queensborough Blvd. Mount Pleasant, SC 29464
843-518-3900 www.waldonstudio.com
Michael L Janaskie, Mark Holmes
2 3
Architectural, planning and design for the ecclesiastical, medical, federal state and municipal, multi-family, public and private K-12, higher education, hospitality and senior Living market sectors
Wayne Windham Architect P.A. 1779 Main Road Johns Island, SC 29455
843-243-0790 www.waynewindhamarchitect.com
Gordon Wayne Windham Jr.
2 8
High-end custom home design, renovations, 3-D visualizations and fly-arounds, light commercial
Add + Dwelling Group LLC 806 Johnnie Dodds Blvd., Suite 205 Mount Pleasant, SC 29464
843-856-5022 www.add-dwelling.com
Ronald J. Denton, John Abess
1 2
Custom residential design-build and accessory dwelling units
b Studio Architecture 582 Rutledge Ave. Charleston, SC 29403
843-608-1858 www.bstudioarch.com
Chris Bonner
1 1
Architecture, real estate, design
Berenyi Incorporated 49 Immigration St., Suite 201 Charleston, SC 29403
843-284-2000 www.berenyi.com
Tony Berenyi
1 12
Commercial and industrial architecture
O. Douglas Boyce Jr., AIA Architect 713 Woodward Road Charleston, SC 29407
843-607-9949 www.douglasboycearchitect.com
O. Douglas Boyce Jr.
1 1
Architecture, custom residential, commercial tenant upfit, industrial, commercial, churches, graphics,planning
Carolina Contracting Solutions LLC 1318 Highway 61 Ridgeville, SC 29472
843-832-1300 www.ccsolutionssc.com
Joellen P. Rogers
1 145
Dolphin Architects & Builders, Inc. 3730 Bohicket Rd, Suite 6 Johns Island, SC 29455
843-768-2404 www.dolphindesignbuild.com
Christopher Ibsen, Noel Kade
1 8
Architecture, design-build, custom residential, interior design, construction administration, LEED-accredited, project management, conceptual design
Epps Architecture 1 Pinckney St. Charleston, SC 29401
843-577-2080 www.eppsarchitecture.net
Robert E. Epps
1 1
Architectural and architectural Interior Design services; Architectural Photography services
Evans & Schmidt Architects LLC 284 Meeting Street Charleston, SC 29401
843-723-5495 www.evansandschmidtarchitects.com
Joseph D. Schmidt
1 4
Historic renovation and adaptive reuse, commercial, hospitality, space planning, tenant upfit and custom residential
E.E. Fava Architects, Etc. Inc. 54 Broad St. Charleston, SC 29401
843-723-5099 www.eefava.com
Ernest E. Fava Jr. , Joel V. Trantham, M. Chase Robinson
1 2
Full service architectural design firm provides expert master-planning, historic restoration, renovation, creative new construction, interiors, & project consulting services. residential/comm./institutional projects, feasibility analysis & studies
GJS Architecture LLC 3251 Landmark Drive, Suite 241 North Charleston, SC 29418
843-722-4334 www.gjs-architecture.com
Robert V. Gerber
1 3
Church architecture, including ministry planning, programming and master planning, full architectural services, interior design
Hudson Designs Inc. 3690 Bohicket Road, Suite 3C Johns Island, SC 29455
843-768-0662 www.hdiarchitect.com
Charles L. Hudson Jr.
1 6
Planning, architecture design
LEED=Leadership in Energy & Environmental Design. View this list online at www.scbiznews.com/data. Although every effort is made to ensure accuracy, errors sometimes occur. Email additions or corrections to lists@scbiznews.com or go to www.tinyurl.com/joinourlists. B Previously Clancy Wells Architects Inc.
Major Services
Architecture, design, design-build, interior design
Researched by Melissa Verzaal
28
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IN FOCUS: ARCHITECTURE, ENGINEERING AND CONSTRUCTION
June 1 - 14, 2015
June 1 - 14, 2015
IN FOCUS: ARCHITECTURE, ENGINEERING AND CONSTRUCTION
www.charlestonbusiness.com 29
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At Work:
People, places and happenings across the Lowcountry
Hot Properties 30 Viewpoint 31
People in the News
Business Digest
CONSTRUCTION
Coast Guard Cutter James passes acceptance trials The Coast Guard National Security Cutter James completed several days of acceptance trials recently to ensure the cutter is ready for delivery to the Coast Guard. The ship is named for Capt. Joshua James, who died at age 75 while on duty serving in the U.S. Life-Saving Service, the precursor to the modern Coast Guard. The ship will be the second National Security Cutter to be based in Charleston later this year, joining the NSC Hamilton. The fifth Coast Guard National Security Cutter James will be based in Charleston later this year.
ECS Carolinas LLP has hired William Ruch as a field technician and Michael Smith as a building and code compliance inspector in the company’s Charleston office. Tyler Bowers has been promoted to senior project manager at SouthCon Building Group LLC in Mount Pleasant. He is a graduate of Clemson University Bowers with a Bachelor of Science in civil engineering. Prior to joining SouthCon in 2010, he was employed by Nucor-Vulcraft Group, Gulf Stream Construction and Titan Builders.
LAW put in 500 hours of sweat equity as part of its investment in the project.
CSU, local high schools sign dual-enrollment agreement
Mac Baughman (from left), Greater Summerville/ Dorchester Chamber of Commerce board chairman; chamber board member Mark Pilgrim; chamber President and CEO Rita Berry; Summerville Mayor Bill Collins; Workout Anytime assistant manager Hunter Arnold; co-owners Teresa and Kevin Arnold; and manager Bryan Carrillo.
Workout Anytime celebrates grand opening in Summerville
The Greater Summerville/Dorchester County Chamber of Commerce and Workout Anytime held a ribbon-cutting ceremony to celebrate the store’s grand opening at 975 Bacons Bridge Road, Suite 100 in Summerville. Workout Anytime is a 24-hour, no-contract fitness center that includes tanning and hydromassage. Personal training is also available.
Lowe’s employees help build Habitat for Humanity home
Charleston Habitat for Humanity and Lowe’s Heroes employee volunteers were among more than 100 volunteers to help build affordable housing in the Charleston area in recognition of National Women Build Week May 2-10. Volunteers worked on a home in the Joppa Way community of North Charleston alongside members of the partner family, which is required to
Charleston Southern University has signed an agreement with First Baptist School and Pinewood Preparatory School to offer a dual-enrollment program starting in the 2015-2016 academic year. Through dual enrollment, high school students enroll in college coursework and receive college credit while also fulfilling state requirements for high school graduation. Students may earn up to 15 credits over a two-year enrollment period. Course offerings may include: public speaking, Old Testament, New Testament, English literature, world literature, geography, economics, U.S. history and anatomy and physiology.
Berwick, Gunter combine dental practices in North Charleston
Dr. Jennifer Berwick of Family Orthodontics of Charleston has moved to the office of orthodontist Frederick Gunter at 7465 Northside Drive in North Charleston. Gunter recently joined Family Orthodontics. Berwick was previously based at 8730 Northpark Blvd. in North Charleston.
Handsome Properties Inc. creates new homes division
Handsome Properties Inc. has created a new division called Handsome Homes. It will focus on properties under $1 million and will match buyers with suitable properties.
Local Development Corp. moving to new Gaillard Center
The Charleston Local Development Corp. is moving to the new Gaillard Center at 2 George St. after 20 years at 75 Calhoun St.
Benefitfocus, SAP enter reseller agreement
Benefitfocus Inc. has signed a reseller agreement with SAP for the cloud application Marketplace. The software will be offered to companies to help them manage benefits administration and other human resource needs.
Immedion data safeguards approved in audit
Immedion LLC has successfully completed an SOC 2 Type II audit under the guidelines set forth by the American Institute of Certified Public Accountants. The report applies to all of its facilities, including Charleston. Compliance with these guidelines certifies that Immedion adheres to strict internal business practices, security and IT controls.
W.K. Dickson opens new planning, design, engineering office
W.K. Dickson & Co. Inc. is opening a new regional office in Charleston. The new office will primarily provide planning, design and engineering consulting service for water, wastewater and stormwater projects. The company also has offices in Columbia and Wilmington, N.C.
See BUSINESS DIGEST, Page 34 ➤
K&L Gates LLP has hired Russell S. Abrams as a partner in the commercial disputes practice in the Charleston office. He previously worked for Daimler Trucks North America LLC, overseeing and managing much of the company’s legal work in the United States, Canada and Mexico.
Pike
Smith
Willson Jones Carter & Baxley P.A. has hired Natalie C. Pike and Jennie M. Smith in the firm’s Charleston office. Moore & Van Allen PLLC has hired Ed O’Keefe to join its litigation practice group. He previously served as deputy general counsel and global legal operO’Keefe ations executive at Bank of America. He has a Bachelor of Science in business administration from the University of Rhode Island and a law degree from Fordham University School of Law in New York. See PEOPLE, Page 33 ➤
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Inflation on the rise — will spur Fed into action
T
he inflation rate is showing clear signs of accelerating, which will eventually force the Fed into action. However, the doves on the Federal Open Market Committee are in control at the moment, which means that the first rate hike will probably be postponed until September. By that time signs of an Stephen D. economic rebound Slifer following the first quarter slump will be more widespread, and evidence of a notable acceleration in the inflation rate should be more evident. At its meeting on April 28-29, the Fed indicated that “Many participants thought it unlikely that the data available in June would provide sufficient confirmation that the conditions for raising the target range for the federal funds rate had been satisfied, although they generally did not rule out this possibility.” That statement essentially takes a June rate hike off the table. The Fed has made it abundantly clear that it does not intend to raise rates until such time as the labor market achieves full employment and the inflation rate shows signs of climbing back towards the Fed’s 2.0% target. Both pieces are happening. With respect to the labor market, the weekly data on initial unemployment claims (a measure of layoffs) have fallen to the lowest level in 15 years — April 2000 to be exact. There is a reasonably close correlation between layoffs and the monthly increase in payroll employment. With claims at their current level, payroll employment for May is likely to increase 275,000 to 300,000. That figure will be released on June 5. The number of people receiving unemployment insurance benefits has also fallen to a 15-year low. We expect the unemployment rate to fall another 0.1% to 5.3%. Will an outsized increase in employment and another drop in the unemployment rate be enough to convince Fed officials that the time has come to boost the funds rate? What about inflation? Since the April FOMC meeting, the Fed received the consumer price index data for April. It was somewhat disturbing. The overall index was acceptable as a drop in energy prices kept the monthly increase in check
“It is no surprise that rents are on the rise because the rental vacancy rate is at a 20-year low. There is an extreme shortage of rental properties available.” at just 0.1%. But the core rate, which excludes the volatile food and energy components, rose 0.3%, which is the biggest increase in two years. The increase was broad-based — shelter, medical care, used cars and trucks, and new vehicles all contributed to the increase. Of particular note was the increase in the shelter component. It rose 0.3% in both March and April. It has risen 3.0% in the past year and has climbed at a 3.2% pace in the past three months. It seems to be accelerating. A steady pickup in this particular component is important because shelter represents one-third of the entire CPI. It is no surprise that rents are on the rise because the rental vacancy rate is at a 20-year low. There is an extreme shortage of rental properties available. Landlords have taken advantage of the situation to raise rents quickly. The asking rent for vacant rentals has risen 4.3% in the past year. The situation is getting worse. The Fed should take note. One other piece of information that could influence the Fed’s decision at the June meeting is retail sales for May, which will be released on June 11. Retail sales for April were unchanged. Economists had expected an increase of 0.4%. However, the lack of increase in April was caused by the huge individual tax payments in that month. Absent this factor in May, retail sales should rise by 0.5% or so. Will any of this evidence be enough to spur the Fed into action at its meeting on June 16-17? Probably not. The Fed has essentially told us that a June rate hike is off the table. Our fear is that the Fed is falling behind, which could imply a faster pace of tightening at some point down the road. If the Fed starts raising rates by 0.25% at every FOMC meeting versus 0.25% at every other meeting, rates will reach the point where they begin to bite much more quickly. cr bj
Reach economist Stephen D. Slifer at steve@numbernomics.com.
June 1 - 14, 2015
www.charlestonbusiness.com 33
People in the News Turner Padget Graham & Laney P.A. has hired Brittany F. Boykin as a Charleston-based associate. She has six years of litigation experience and her practice includes defending personal injury claims, construction defects, and trucking and transportation matters. She earned her undergraduate degree from the College of Charleston and her law degree from Charleston School of Law. Chappell Smith & Arden P.A. has hired Jacob Born. His practice areas include personal injury, motor vehicle accidents, product liability, nursing home abuse and neglect, and catastrophic injury litigation. He is a 2011 graduate of the Charleston School of Law and a 2006 graduate of the University of South Carolina.
BUSINESS SERVICES Immedion LLC has hired Patrick O’Brien as general manager for the company’s Charleston data center. He was previously vice president and general manager at Peak 10’s Charlotte facility and has a bachelor’s degree in business management from the University of South Carolina.
HOSPITALITY & TOURISM Joel Lucas has been named executive chef at Eli’s Table in downtown Charleston. He has more than two decades of culinary experience, mostly in the Washington, D.C., area. Katherine Reeves White has been named the garden designer and volunteer coordinator and Nikki Cabrera has been promoted to assistant manager at Magnolia Plantation and Gardens. White, a graduate of the horticulture department at Trident Technical College, will select plants for containers and flower beds throughout the gardens and grow plants in the greenhouse. John St. John has been hired as general manager of the new Ruth’s Chris Steakhouse in Charleston. He had been general manager of the Atlanta Buckhead location since 2013 and has more than 25 years of experience in the food and beverage industry. He worked previously at High Cotton in Charleston. The Rusty Rudder has named Robert “Bo” Tamplin acting general manager of the Mount Pleasant restaurant. He previously spent the past 2 1/2 years as the front-of-house manager for The Rusty Rudder’s flagship location in Cornelius, N.C., and has a bachelor’s degree in food and beverage management from Johnson & Wales University in Charlotte.
Larry Spelts has been promoted to vice president of business development with Charlestowne Hotels. He previously served as director of business development and moved into the newly created role after 27 years operating, managing and developing business in the hospitality industry. He has an MBA from New York University’s Stern School of Business.
DEFENSE Capt. Scott W. Clendenin took charge of the National Security Cutter Hamilton in the U.S. Coast Guard ship’s first change-of-command ceremony at the Federal Law Enforcement Training Center in North Charleston. He takes over for Capt. Doug Fears.
REAL ESTATE
Gildea
Humphries
Emily E. Gildea and Christy Humphries have joined Dunes Properties. Gildea, a Virginia Tech graduate with a degree in marketing management and a minor in international business, will work from the Charleston office. She most recently served as executive director of The Charleston Friends of the Library. Humphries will be in the Isle of Palms office. She studied corporate communications and business at the College of Charleston and began her career in real estate at Permar, a local real estate advisory firm. Shelby Haggard has joined Southern Shores Real Estate Group LLC in the company’s West Ashley office. She is a graduate of Coastal Carolina University Haggard in Conway and previously worked as a project manager for environmental and chemical sales company EMES LLC in Charleston. James Dingle has joined Coldwell Banker Commercial Atlantic as a commercial broker specializing in land and investment properties. Dingle previously worked with Coldwell Banker Commercial United in Mount Pleasant as a residential agent. He has a bachelor’s degree in finance.
Submit items to editorial@scbiznews.com with “People,” “Business Digest” or “Hot Properties” in the subject line. Publication is subject to editorial discretion.
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Business Digest Blackbaud workers and their families help hungry kids
Blackbaud employees and their children helped fill more than 400 backpacks for underprivileged children through a service project with the Lowcountry Food Bank called Backpack Buddies. The backpacks were filled with food as part of the company’s “Bring Your Child to Work Day” to give to children who experience hunger on weekends.
ant. The company plans to staff the new location with approximately 60 full-time and part-time positions, including management and associate positions. The new store is one of the anchors for Bowman Place, a renovated center on Bowman Road.
Citadel students collaborate with state agency for learning disabled
A group of cadets in the Zucker Family School of Education at The Citadel have formed a club called the Student Learning Disabilities Association of The Citadel in collaboration with the S.C. chapter of the Learning Disabilities Association of America. Their goal is to promote awareness and support for the education of people with learning disabilities, their families and those who teach them.
Dick’s Sporting Goods hiring for new Mount Pleasant store
Dick’s Sporting Goods is hiring for a new store opening in June in Mount Pleas-
Bosch and Boeing employees helped clean up large debris from Morris Island recently.
Bosch, Boeing employees help clean up Morris Island
More than 100 employees from Bosch and Boeing helped clean up Morris Island on a recent Saturday. The island at the mouth of Charleston Harbor and just north of Folly Island is a sea turtle and shore bird nesting.
Hot Properties The following commercial real estate transactions were recently completed in the Charleston area. For weekly updates on commercial deals, see the Hot Properties feature every Monday in the Daily Journal email or online at www. charlestonbusiness.com. To submit items for the feature, send email to dailyjournal@ scbiznews.com. Kristen Krause of Coldwell Banker Commercial Atlantic represented the tenant, Phish Labs Ecrime Management, in the lease of a 6,167-square-foot office space at 2 Beaufain St. in Charleston from Beaufain & King Street Associates LLC. Woody Kapp of Meyer Kapp & Associates represented the landlord. Carl Michael Harrison and Edward Robinson of Beach Commercial represented the seller, Alfred and Michele Turco, in the sale of 1,794 square feet of first-floor retail space at 93 Society St. in Charleston to R.E.O. Solutions for $814,000. Chauncey Clark and Len Meyer of The Peninsula Co. LLC represented the landlord, Jackson & Marley LLC, in the lease of 2,600 square feet of retail space at 421 Johnnie Dodds Blvd. in Mount Pleasant. Trey Lucy and Blair Belk of Belk Lucy represented the tenant. Trey Lucy and Blair Belk of Belk Lucy represented the landlord in the lease of
1,445 square feet of space in The Plaza at Park West, 1118 Park West Blvd., Suite B2, to Black Tie Music. Kristen Krause with Coldwell Banker Commercial Atlantic represented the tenant. Edward Robinson of Beach Commercial represented the landlord, Majestic Square LLC, in the lease of a 1,814-square-foot executive suite in Majestic Square, at 211 King St., Suite 101, in Charleston to Victoria Capital Management Inc. Carl Michael Harrison of Beach Commercial represented the seller, Darling Dog LLC, in the sale of 4,757 square feet of office space at 874 Walt Miller St. in Mount Pleasant to 874 Walt Miller LLC for $788,000. Edward Oswald with Oswald Cooke & Associates represented the buyer. Edward Robinson with Beach Commercial represented the landlord, King at Market L.P., in the lease of an office suite at 220 King St., Suite 3D, in Charleston to Second Fifty Communities LLC. Cuyler Applegate of Applegate Real Estate represented the tenant. Brent Case of Coldwell Banker Commercial Atlantic represented the tenant, Fit Body Boot Camp Mt. Pleasant, in the lease of a 2,297-square-foot retail space at 1113 Market Center Blvd., Unit B, in Mount Pleasant. Louis Griffith of Joe Griffith Co. represented the landlord.
Submit items to editorial@scbiznews.com with “People,” “Business Digest” or “Hot Properties” in the subject line. Publication is subject to editorial discretion.
VOLVO IN SOUTH CAROLINA
VOLVO HOW SOUTH CAROLINA LANDED THE CAR MAKER
37
38
The Road The story of to Ridgeville the Volvo deal
44
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The ‘Volvo Effect’
‘Change is coming’
Timeline charts the first phone
Gov. Nikki Haley talks about
State’s third car plant set to
Ridgeville residents yearn
call to the final decision
tense negotiations, site swap
expand S.C. automotive sector
for growth, wary of change
Photo/Volvo
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June 1 - 14, 2015
VOLVO IN SOUTH CAROLINA
VOLVO
M
ore than $1 billion in investment has been committed to the Charleston region by two European automotive companies in less than three months. First, Mercedes-
Benz Vans announced in March it would expand operations to build a new manufacturing facility for its Sprinter vans. Now Volvo wants to build cars in the Lowcountry. Volvo, headquartered in Gothenburg, Sweden, selected South Carolina over a handful of Southeastern states for its entree into North America. The company joins BMW, Michelin, Boeing and others who manufacture products in the Palmetto State. Go in-depth into the Volvo project with this special report that navigates the course of the economic development deal that almost didn’t happen.
“Half-a-billion-dollar investment, 4,000 jobs coming to our great state. We will very much be proud to say that we now build Volvo Cars.” Gov. Nikki Haley
“This will change the course of people’s lives in the region in a fashion that most people cannot fully imagine.” Bobby Hitt S.C. Secretary of Commerce
“Volvo Cars will do much more than make automobiles in Berkeley County. Volvo will raise the standard of life throughout the Lowcountry.” Lonnie Carter Santee Cooper CEO
June 1- 14, 2015
VOLVO IN SOUTH CAROLINA
The Road to Ridgeville August: Volvo execs tell state officials South Carolina is a contender for the plant.
Feb. 5: Commerce Department officials tell Berkeley County to move quickly after a Dorchester County site fell through and warns all involved to keep quiet about the project.
Jan. 21: North America CEO Lex Kerssemakers says Volvo might build a U.S. facility. S.C. officials are already working in secret on potential sites. April 16: Berkeley County files a regulatory permit with the U.S. Army Corps of Engineers, Charleston District, on behalf of an undisclosed manufacturer referred to as “Project Soter.”
Late February: Volvo officials tour the Charleston region via helicopter, landing at the Camp Hall Tract to see it firsthand.
Graphic/Andrew Sprague
S.C. officials negotiated with Volvo executives and competed with other states for months to bring the car plant and 4,000 jobs to South Carolina.
March 1-4: Gov. Nikki Haley and Commerce Secretary Bobby Hitt travel to Europe without disclosing why. S.C. officials meet with Volvo executives in Sweden. Haley said negotiations stalled at one point, but S.C. remains in the running.
March 30: Volvo officially announces plans to build a U.S. plant. Rep. Chip Limehouse tells the Business Journal the automaker is considering a site in Berkeley County.
April 21: North Carolina out of the running for the Volvo plant.
May 8: Haley gives a University of South Carolina commencement speech before a 6 p.m. phone call from Kerssemakers: “We decided to go with South Carolina.” The news is not yet public.
April 29: S.C. officials fly to New Jersey and make a final pitch to Volvo executives in New York City. Georgia officials did the same. They leave not knowing who won the deal. May 10: Santee Cooper calls a special Mother’s Day board meeting to vote on undisclosed economic development agreements that include $54 million in incentives and plans to buy 6,800 acres for an industrial park that will house the Volvo plant.
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May 11: Volvo sends out a news release at 6 a.m. Eastern time confirming Berkeley County as the site for its U.S. car manufacturing plant. State and business leaders meet at the Governor’s Mansion at 10:30 a.m. to make the formal announcement.
2,000
2018: The first vehicles are expected to roll off Volvo’s new assembly line.
jobs initially,
4,000 jobs over the next decade
Fall 2015: Construction of the Volvo plant to begin.
Ridgeville
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The twists and turns of steering Volvo toward South Carolina By Liz Segrist
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lsegrist@scbiznews.com
he race was on. State Commerce Secretary Bobby Hitt received a tip in July that South Carolina was among a handful of Southeastern states in the running for Volvo’s first North American manufacturing facility. When a phone call a month later confirmed Volvo’s interest in the state, Gov. Nikki Haley had one response. “Let’s go get it.” Haley sat down several weeks after the deal was announced to talk about the hunt for the high-end automotive manufacturer. “It was a roller coaster ride after that,” Haley said of the phone call. Numerous state agencies worked together to make the deal happen. Over the next 10 months, meetings took place in downtown Charleston restaurants, at Volvo’s legal offices in New York City, at the company’s headquarters in Sweden and during site visits all over the state. Volvo officials had a big decision to make: Pick a site that could buoy U.S. sales, generate product excitement and expand its global market share. The site needed to be near major high-
Volvo plans to invest $500 million in building its car plant at the Camp Hall Tract in Berkeley County. The company expects to produce 100,000 cars a year once it begins production in 2018. (Photo/Volvo)
ways, an international airport and a port with a track record of shipping cars. The company wanted to plant roots in a state that promoted business and offered a skilled, trainable workforce. Hitt said his team tried to glean as much information as possible about Volvo’s needs in those initial meetings.
Commerce had three sites across the state chosen as options. Hitt declined to mention specific sites but said “they were in three distinct regions of the state.” A lot was at stake for the Sweden-based, Chinese-owned automaker as it made its foray into becoming a “Made in America” manufacturer.
Meetings between company and state officials were ongoing throughout the fall and into early this year. Volvo officials wanted to investigate every claim made about successful manufacturing facilities, training programs and logistics operations in the state. They visited readySC’s Boeing train-
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ing center at Trident Technical College in North Charleston and then saw Boeing employees building planes at the Dreamliner plant. They visited BMW Manufacturing Co. and the S.C. Inland Port in Greer and stopped by the Clemson University International Center for Automotive Research in Greenville. Volvo met three times with the S.C. State Ports Authority to see how the Port of Charleston handles cargo. At the Columbus Street Terminal, Volvo officials watched as port workers drove BMWs off trains and onto containerships. They envisioned the possibility of those being Volvo vehicles one day. Dorchester County offered an attractive site off Interstate 26 for the Volvo plant, but environmental studies revealed the land held too many wetlands. Building there could limit the size of Volvo’s footprint and harm the site’s ecosystems. So six months into negotiations, the state had to present an entirely new site to Volvo. “That was a little bit of a scary time from my side,” Hitt said. “Generally speaking, when you’re several months in, changing sites can be a sign of weakness that we didn’t have it put together just right. We were semi-starting over, but we put together a plan.”
Shifting gears
Haley said the site switch was
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nerve-wracking for everyone involved on both sides of the Atlantic. Commerce officials scrambled to keep the company interested. Berkeley County Supervisor Bill Peagler received a call on Feb. 5 about Volvo. Peagler remembers saying to Barry Jurs, the county’s economic development director: “Do whatever you have to do to make this happen.” Officials from Berkeley County, Santee Cooper and Commerce met secretly in Columbia. By the end of the meeting, plans were in motion to prep a new site across Interstate 26 in Berkeley County. The 6,800-acre, undeveloped Camp Hall Tract would be the state’s new pitch to Volvo. Santee Cooper had been working with the state on the Dorchester County site, so it was familiar with the project when the deal transitioned across county lines, said Sam Bennett, Santee Cooper’s economic development manager. During one visit to the Lowcountry in February, Volvo officials took helicopter rides from Charleston International Airport to get a bird’s-eye view of the region and survey the new site. “We were trying to build up the same level of trust that Dorchester County had done such a good job of doing,” Bennett said. “It was very tense for us and maybe see VOLVO, page 40
VOLVO IN SOUTH CAROLINA $500M
investment by Volvo
$204M
in incentives to recruit Volvo
2,000
jobs initially
2,880
acres of the 6,800acre Camp Hall Tract will be used by Volvo
4,000
jobs over the next decade
100,000
cars will be produced annually from the site
VOLVO CARS GROUP The first Volvo rolled off the production line in 1927. Headquartered in Gothenburg, Sweden, Volvo Cars now produces sedans, wagons, sport wagons, cross country cars and SUVs, including the recently debuted Photo/Volvo XC90 SUV Crossover. Volvo Cars’ global sales in 2014 were 465,800 cars, up 8.9% from 2013. U.S. sales have been declining, and in 2014, China overtook the United States to become Volvo Cars’ largest single market. Zhejiang Geely Holding Group of China acquired Volvo Cars from Ford Motor Co. in 2010. Volvo Cars’ production takes place in Sweden, Belgium, China and Malaysia — and soon, South Carolina. The first cars are expected to roll off the Berkeley County assembly line in 2018. Volvo Cars employs about 26,000 people worldwide as of 2014. The new site will add up to 4,000 jobs in the Charleston region over the next decade. Source: Volvo Cars
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Commerce Secretary Bobby Hitt and Gov. Nikki Haley gather with business leaders and economic developers to announce that Volvo picked Berkeley County for its North American car plant. (Photo/Chris Cox) VOLVO, continued from Page 39
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for them. The sites had just been swapped. ... We did not know how they felt because we don’t speak Swedish, and they had full conversations in front of us.” South Carolina remained in the running, along with the known competitors of Kentucky, North Carolina and Georgia. Volvo took interest in the Berkeley County site. South Carolina had its confidence back. Haley thought they were in the homestretch.
Then S.C. officials heard that Georgia recruiters were headed to Volvo’s headquarters in Gothenburg, Sweden. Hitt asked Haley to join him on a last-minute recruitment trip to Sweden in early March to show that they were serious. At a table in a boardroom, Volvo attorneys sat on one side and S.C. officials sat on the other. Conversations were flowing. Then they hit a wall. Negotiations stalled. Haley said she could feel Volvo’s apprehension about the project details, numerous regulations and environmen-
WAGES AND IMPACT Volvo has not disclosed wages for workers at the new plant. Data gathered by the U.S. Bureau of Labor Statistics shows what various production workers made last year in South Carolina. Overall, production workers made $17.56 an hour on average for a $36,520 salary. Helpers/production workers
$11.84
All other production workers
$17.56
Engine and other machine assemblers
$17.48
Machinists First-line supervisors of production and operating workers
Photo/Volvo
$18.46 $29.23
Industrial production managers
$51.87
Source: U.S. Bureau of Labor Statistics 2014 data
VOLVO
For every job at the Volvo plant, three other jobs will be created. Source: University of South Carolina analysis by Joseph Von Nessen
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tal concerns. Choosing the wrong site could jeopardize the company’s plans to increase U.S. sales. For South Carolina, half a billion dollars in investment and at least 4,000 jobs were on the line. Haley said she remembers telling company officials the state would deliver for them: “In order for us to do this, we have to trust each other and I’ve got your back. And if you will let us do what we do best, which is build things, we will make sure that Volvo is a showcase item around the country.” After the Sweden trip, plans were taking shape for the new site. Berkeley County filed a permit in mid-April with the U.S. Army Corps of Engineers, Charleston District, on behalf of the company under the code name “Project Soter.” The Charleston Regional Development Alliance compiled marketing materials to present to Volvo that would differentiate the Lowcountry from other sites, CEO David Ginn said. Officials from Commerce, Santee Cooper and Berkeley County joined Hitt and Haley on a trip to New York City to make a final pitch to the Volvo North America executive and legal team. “This was the one project to date that we truly did not know where we stood,” Haley said. “I mean, there was no gut feeling. No anything. ... They were amazing at keeping their emotions to the chest.” The team left New York unsure of whether they had won the deal for South Carolina.
Decision time
Volvo had made a decision, and it looked like it was South Carolina. Lex Kerssemakers, president and CEO of Volvo Cars of North America, canceled a phone call with Haley on May 8 and said company officials were instead coming to South Carolina in person. Then while Haley was giving the commencement speech at the University of South Carolina, Volvo canceled the trip and rescheduled the call. She worried her state had lost the deal to Georgia. Staff members from the governor’s office and the Commerce Department gathered in the library of the Governor’s Mansion at 6 p.m. that evening for the call. Haley wanted to be in her favorite room in the house. A portrait of Gov. Carroll Campbell, who landed the BMW deal 23 years ago, hangs in the room. Haley put the phone on speakerphone and set it on the table. The group waited impatiently while Kerssemakers talked about the negotiations. “Then he said ‘We want to come to South Carolina,’ and there was just a roar in the room. Everybody was so excited and so happy,” Haley said.
CEO’s perspective
The news was not yet public. Two days later, on Mother’s Day, the Santee Cooper board of directors called a special meeting to vote on an agreement that
VOLVO IN SOUTH CAROLINA
would provide $54 million in incentives to Volvo. The state-owned utility would buy the 6,800-acre Camp Hall Tract and develop it for Volvo and future industry. That Monday, May 11, the company confirmed its decision in a news release at 6 a.m. Eastern time. By 10:30 a.m., Haley, Hitt and nearly 30 economic developers and business leaders involved in the deal gathered in front of the Governor’s Mansion in Columbia to make the official announcement and to field questions from reporters. “In less than 100 days, we were able to accomplish what normally takes a year or more to accomplish,” Berkeley County’s Peagler said, referring to the last-minute switch to his county’s site. South Carolina is now home to three automobile manufacturers: BMW in Greer, Mercedes-Benz Vans in North Charleston and, soon, Volvo Cars in Berkeley County. South Carolina is one of the only states winning automotive manufacturing plants. Ten new vehicle assembly plants have been announced in North America since 2009; of those, eight have been in Mexico and two have been in the Charleston region, according to the CRDA. “In order to be a successful state, you have to always think about it from the CEO’s perspective,” Haley said. “You have to always look at it and say, ‘What does the business want?’ ” Haley said it matters how state agencies are run — companies want to move quickly through permitting process. It also matters whether agencies are willing to collaborate with state and company officials, as well as with one another, in the way environmental groups and economic developers did on the Volvo deal. Manufacturers want large sites to be near infrastructure, she said. They want to know they can find qualified workers, and they want to talk with companies that have set up shop in the state. “They want a state that understands business, and whether it’s a union trying to take over, whether it’s (Washington) D.C. trying to infringe, or whether it’s something they don’t foresee — they want to know that we’re going to have their back,” Haley said.
Quality of life
Officials said the Volvo plant will improve the quality of life for residents and reshape the region by bringing growth and job opportunities, especially for people living in poor or rural counties near the site. Haley said K-12 education and workforce training matter now more than ever. “That’s the big key component for me right now is making sure that South Carolinians get these jobs, because that’s what we worked so hard to do,” she said. cr bj
Reach staff writer Liz Segrist at 843-8493119 or @lizsegrist on Twitter.
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The Georgia tortoise that helped S.C. win Volvo By Andy Owens
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aowens@scbiznews.com
t’s probably not fair to say that Volvo chose South Carolina just to avoid an environmental public relations nightmare, but there’s little doubt that the gopher tortoise — the burrowing state reptile of Georgia — played its part. Even Georgia Gov. Nathan Deal tried to spin the tortoise’s shell in his state’s favor up until the last minute, telling The Augusta Chronicle that he wasn’t all that concerned about having an environmentally sensitive species living on the 1,900acre site the state had chosen for Volvo. Deal said the tortoise’s absence from the endangered species list in Georgia showed environmental stewardship on the state’s part that any company, including Volvo,
The gopher tortoise is the state reptile of Georgia, but it also lives in a few parts of S.C. (Photo/Tom Friedel)
would want to align itself with. “That is considered environmentally friendly, and because of that, the gopher tortoise is not on the endangered list in Georgia because we’ve been responsible,” Deal said. Officials in Berkeley County were aware of the tortoise’s presence on Georgia’s proposed site — and of possible plans to relocate the reptile. County Supervisor Bill Peagler told the county’s economic director that he felt the S.C. site was a
strong one for several reasons. “We had water. We had sewer. We had available land. We did not have any issues with animals needing to be relocated,” Peagler said. The Atlanta Business Chronicle went even further, publishing a story that said the tortoise could actually help win Volvo for Georgia. The thing that Deal, The Augusta Chronicle and the Atlanta Business Chronicle failed to report was that the
tortoise isn’t endangered in any state. If, like the gopher tortoise, Georgia journalists had dug a little deeper, they would know that the U.S. Fish and Wildlife Service does list the tortoise as threatened in Alabama, Mississippi and Louisiana, meaning it is only in jeopardy of being listed as endangered in those states. The tortoise is also a candidate for threatened status in Florida, South Carolina and Georgia. One could make the case that South Carolina is at least as good as Georgia in taking care of this tortoise. The governor wasn’t being disingenuous about the Peach State’s care for the creature. Georgia has passed legislation to prohibit the use of gopher tortoise holes for hunting snakes. The tortoise is considered critical to the surrounding ecology because its burrows create habitats for other animals. Although the tortoise doesn’t live anywhere near the Volvo site in Berkeley County, it does inhabit a designated Wildlife Management Area in Williston. So South Carolina’s state reptile is the loggerhead sea turtle, but we’ve established a safe zone for Georgia’s state reptile. cr bj
Reach Andy Owens at 843-849-3142. Liz Segrist contributed to this report.
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The Volvo plant in Berkeley County is expected to have a ripple effect in the economy. (Photo/Volvo)
Automotive multiplier expected to extend impact of Volvo plant By Liz Segrist
lsegrist@scbiznews.com
W
hen BMW decided to expand manufacturing outside of Germany and make cars in South Carolina, its U.S. sales were down from 100,000 in 1986 to 53,000 in 1991. The German automaker announced plans in 1992 to build a manufacturing facility in Spartanburg County, hoping to boost lagging sales. The company’s plans hinged on a workforce that had never built cars. Though South Carolina’s Upstate had attracted many international companies, such as Bosch’s engine plant and Michelin North America’s headquarters, much of its roots were based in lower-wage textile jobs and agricultural work. All eyes were on BMW and S.C. workers to see if they could successfully build BMWs and boost the U.S. market share from a facility in the small, rural city of Greer. BMW Manufacturing Co.’s workers rolled the first 318i sedan off production lines in 1994 and the Z3 roadster soon thereafter.
BMW now has nearly 8,000 workers and makes an annual economic impact of $16 billion on the state, according to a 2014 study by University of South Carolina researcher Doug Woodward. The company celebrated the production of 3 million S.C.-built cars this year. Twenty-three years after BMW announced its plans to bring manufacturing operations to South Carolina, Volvo Cars has made the same decision. This time, Berkeley County scored the manufacturing plant.
Same goal, different landscape
Volvo is in a similar situation to the one BMW faced in the ’90s. Part of the Sweden-based automaker’s decision to bring production to North America is to boost lagging U.S. sales, which were down to 56,000 units last year from more than 120,000 in 2004. The Chinese-owned company wants to produce 100,000 vehicles a year from the Lowcountry plant with production beginning in 2018. “Volvo is almost exactly the same size coming here today as when BMW came here in the ’90s,” said S.C. Commerce Secretary Bobby Hitt, a former BMW
June 1- 14, 2015
executive who was involved with negotiations to recruit both automakers. Both automakers were looking to boost U.S. sales and expand their global reach — and both companies are relying on South Carolina’s workforce to do so. But Volvo is coming into a very different environment than BMW did. South Carolina now has more than 200 automotive-related suppliers within its borders. It is the No. 1 tire producer and exporter in the country and houses five tire companies. Volvo could look to the successes of BMW or Boeing South Carolina’s 787 Dreamliner campus in North Charleston. Volvo saw firsthand how readySC and the state’s technical colleges create customized workforce training programs to support these companies. The political environment and recruitment tactics have also changed. Gov. Nikki Haley recruits manufacturers aggressively, touting a business-friendly environment where unions are not welcome and agencies collaborate on economic development. Haley and Commerce officials want to attract advanced manufacturers with large employee counts. They offer a comprehensive package to companies: a path to train workers, large tracts of land that can be developed, nearby airports, a growing port that’s poised to deepen its harbor and attractive incentives. State incentives help pay for workforce training or infrastructure needs, such as site prep, new roads and highway interchanges, utility connections and rail access. County incentives often provide fee-in-lieu-of-tax agreements when companies hit hiring targets. All of these factors helped South Carolina beat out neighboring states and land the Volvo deal — and they could play a role in Volvo’s growth going forward. “I marvel that 25 years ago, nobody in this state thought about building cars,” Hitt said. “Nobody came out of school preparing to work in the auto industry, and certainly no one was thinking about aerospace. ... The transformation of South Carolina into an advanced manufacturing state has been an incredible change that continues at a remarkable pace.”
Ripple effect
Daimler announced in March that it will invest about $500 million in an automotive plant in the Lowcountry. The company’s Mercedes-Benz Vans division will build next-generation Sprinter vans in North Charleston rather than solely importing parts from Germany and assembling them here. With the new Mercedes-Benz and Volvo Cars plants bringing a combined 5,300 jobs and $1 billion in investment to the Lowcountry over the next decade, the region has the potential to become a major automotive hub in the state and the country, according to Joseph Von Nessen, a research economist with the University
VOLVO IN SOUTH CAROLINA
Joseph Von Nessen Research economist with the University of South Carolina
“For every one job at Volvo, three more jobs will be created in the supply chain.” of South Carolina. “In the last 20 years, the Upstate has been an excellent example of an automotive cluster blossoming in South Carolina, and there’s no reason to think Charleston can’t do the same thing,” Von Nessen said. Volvo plans to hire 4,000 people over the next decade to build cars at its Berkeley County plant. For every one job at Volvo, three more jobs will be created in the supply chain, Von Nessen said. As the plant uses suppliers in the existing automotive supply chain, those companies are expected to grow and hire more workers to meet the demand. Volvo will also likely bring new suppliers to the state. Automotive plants tend to have a higher employment multiplier and higher wages than other sectors because the industry can scale up employment quickly and continue that growth for years, Von Nessen said. Volvo plans to create 2,000 direct jobs initially. Those jobs are expected to create more than 8,000 total jobs as a result, according to an economic impact analysis compiled by Frank Hefner at the College of Charleston. In addition to supplier growth, the plant will contribute around $4.8 billion in total economic output each year, Hefner found. Area residents will likely spend more money in the community. Employees that relocate will require new housing and commercial developments. Since BMW opened its doors, Greer has changed from a mostly rural community to a bustling area with more residents and jobs. Economists and state officials expect similar growth in the counties surrounding the Volvo plant. “People will have access to jobs in the area that they do not have now,” Hitt said. “This will change the course of people’s lives in the region in a fashion that most people cannot fully imagine.” cr bj
Reach staff writer Liz Segrist at 843-8493119 or @lizsegrist on Twitter.
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Ridgeville on the edge of change By Liz Segrist
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lsegrist@scbiznews.com
he line at Dukes Bar-B-Q in Ridgeville goes nearly out the door at noon on a Friday. Gayle Dunning quickly fills patrons’ plates with heaping portions of barbecue and vegetables in the buffet line. Her husband, Robert, cooks in the back. Big jugs of sweet tea sit on tables covered with flower-patterned vinyl tablecloths. Friends squeeze into seats at long tables. Everyone seems to know everyone. Dunning opened Dukes 37 years ago. It is one of the few buildings that make up the center of town. A general store, a few restaurants, a gas station and some shops form a semicircle around the rail line. Ridgeville sits about seven miles from the future site of Volvo, which lies on the other side of Interstate 26 off exit 187, just across the Berkeley County line. Dunning said she is excited about the opportunities the new Volvo car plant will likely bring to the rural Dorchester County town. “Some people might not like change, but change is coming,” Dunning said. “I
Vaughan’s General Store opened in Ridgeville in 1933. It is one of a handful of businesses that make up the heart of Ridgeville. A rail line intersects the center of town. (Photo/Kathy Allen)
don’t think we will know and recognize Ridgeville in the future the way we know Ridgeville today.”
A mayor’s perspective
Mayor James Williams remembers the Ridgeville of his childhood as a small
town with two of everything — schools, bathrooms and drinking fountains — one for blacks and one for whites. Decades later, the town has changed but remains small. The U.S. Census Bureau lists Ridgeville’s population at 1,600, but Williams said if you subtract
inmates at Lieber Correctional Institute, the town has about 700 people. Williams said Ridgeville has always been a community where country people get along, everyone knows each other’s families and people generally want things to stay the same. The mayor’s office is in the town’s municipal building, which resembles a school and sits a block away from the only stoplight in town. He is the lone person working there on a Friday. A map of Ridgeville is pinned to a corkboard on the wall. Williams’ desk is covered in stacks of papers. He holds up plans for a new Family Dollar and talks about the changes coming. He sees the future Ridgeville as an extension of Summerville. Developers have been knocking on his office door to talk about buying 80-acre tracts of land for new neighborhoods. Plans are in the works to build a grocery store-anchored shopping center nearby. Williams said he wants to annex developed properties into the town to provide a much-needed boost to its tax See RIDGEVILLE, Page 48
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Residents talk about the growth and jobs that the Volvo plant will bring to Ridgeville during lunch at Dukes Bar-B-Q, one of the few restaurants in town. (Photo/Kathy Allen) RIDGEVILLE, continued from Page 46
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base. More money will allow the town to provide more services to residents, such
James Williams Ridgeville Mayor
“The future generation will have so many possibilities.” as water and sewer — many homes currently rely on septic tanks and well water. He said more people will be able to get jobs near their homes when Volvo opens. “This is a win-win situation for our town. The younger generation coming out of high school, especially those that cannot afford college, can study the right subjects in school and get the training to land them a job at Volvo or at the suppliers that will follow,” Williams said. “The future generation will have so many possibilities.”
Small town, big business
Showa Denko Carbon, Key West Boats, county schools, farms and a few small businesses account for most of the town’s employers. Many residents currently travel to other communities to find work. Betty Coburn, a lifelong resident who has worked at Vaughan’s General Merchandise and Furniture Store for 25 years, hopes the Volvo plant will help people in Ridgeville find jobs closer to home. Volvo plans to hire 4,000 people over the next 10 years. The automaker is working with readySC on training programs. More jobs will mean more housing
and commercial developments and more money flowing through the community. The plant could also bring more employers to the area. About half of the 6,800-acre Camp Hall Tract will be used by Volvo. The remaining land is being readied by local and state officials for other industry or Volvo suppliers. Many residents look forward to the potential economic growth and job opportunities; others fear development infringing on farms, especially in the Pringletown area that sits on the same side of I-26 as the Volvo site. Scott Vaughan — the owner of Vaughan’s, the town’s family-owned general store since 1933 — said the Volvo plant will be an economic boon for the area, but he worries about chain stores moving into town and increased traffic congestion.
Gayle Dunning Owner of Dukes Bar-B-Q
“I don’t think we will know and recognize Ridgeville in the future the way we know Ridgeville today.” Dunning said she understands concerns, but she thinks the town will prosper. “As Volvo grows, even more industry will follow its lead and move to the area,” she said. cr bj
Reach staff writer Liz Segrist at 843-8493119 or @lizsegrist on Twitter.
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Volvo, environmentalists work out mitigation plan By Liz Segrist
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lsegrist@scbiznews.com
olvo and the state plan to permanently protect 1,500 acres of wetlands in the Lowcountry to compensate for the 217 acres of wetlands that will be impacted when the car plant is built in Berkeley County. “A large amount of wetlands will be impacted, which is why I think they felt compelled to do some really extraordinary mitigation,” said Norman Brunswig, the former executive director of Audubon South Carolina. “It never feels good to see wetlands lost. It is never easy to see them sacrificed. But the scale of the mitigation was such that it seemed like a good trade to me.” The S.C. Commerce Department asked Brunswig for his input on which areas needed protection during the environmental negotiations with Volvo. Brunswig, who recently retired, spent his entire 41-year career managing the Francis Beidler Forest through the National Audubon Society. Brunswig agreed to help if the mitigation plans would protect the Four Holes Swamp area, which includes the Francis Beidler Forest that sits near the future home of Volvo. Volvo Cars proposes to preserve, enhance or restore 1,533 acres of wetlands within about 2,500 acres of property in the Dean Swamp and Walnut Branch watersheds and Four Holes Swamp tributaries, which will be protected. The state will purchase the mitigation property and easements as part of its incentives. The areas that will be protected house numerous species and trees that are hundreds of years old, Brunswig said. “Very specific species find their habitat there. They can’t find it anywhere else. ... When you alter a wetland, sometimes you alter the best habitat in the neighborhood,” Brunswig said. “This agreement provides permanent protection for these wetlands.” Brunswig said the wetlands on the Camp Hall Tract, where Volvo will employ up to 4,000 people, have already been altered. Longtime owner MWV has managed the site as a pine plantation for years, which involved extensive ditch and drainage systems. Richard Darden, project manager with the Army Corps of Engineers, Charleston District, is reviewing Volvo’s permit application for the site. Berkeley County filed the application on behalf of the company on April 16, under the name “Project Soter.”
“In the end, the pluses outweigh the minuses. More than 2,500 acres are simply off the development table forever.” Norman Brunswig former executive director of Audubon South Carolina
The Army Corps has 120 days from the time a permit is filed to make a decision, which puts the project into August. Darden said the Volvo application was incredibly thorough, which can help streamline the process. The Army Corps is working with Volvo on determining the placement and design of roads and buildings. When reviewing an application, Darden said the Army Corps’ main focus is to find options with the least impact on waterways. He said wetlands provide valuable wildlife habitats, help prevent flooding and impact the quality of water that drains into waterways. It’s a balancing act to find a compromise that enables a project to happen but minimizes environmental impacts, he said. Local and state officials said environmental groups and company officials collaborated to ensure the Volvo project could come to South Carolina. Gov. Nikki Haley said she has seen more collaboration among economic developers and environmentalists in South Carolina this year. “The way the environmental community worked with Commerce to make this success happen, is what I hope continues to be the trend in South Carolina. ... These are two groups that can absolutely work together, but the communication between those groups and the willingness of both those groups really was magic in this deal,” Haley said. Brunswig said that any mitigation plan is difficult for an environmentalist but that he thinks the Volvo project is great for the region and that the automaker will be a good neighbor. “In the end, the pluses outweigh the minuses,” Brunswig said. “More than 2,500 acres are simply off the development table forever and can be enjoyed for generations to come.” cr bj
Reach staff writer Liz Segrist at 843-8493119 or @lizsegrist on Twitter.
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Technical colleges, readySC to train Volvo workforce By Liz Segrist
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lsegrist@scbiznews.com
olvo officials wanted to see firsthand how South Carolina trains skilled workers for other advanced manufacturers around the state. Before the automaker announced plans to build a plant in Berkeley County, Swedish executives visited the readySC Boeing Training Center at Trident Technical College in North Charleston. ReadySC, a division of the S.C. Technical College System, works with companies to create a training program specific to their needs and equipment. In the past five years, the program has trained more than 4,500 people at 41 automotive companies throughout the state. Volvo visited the 40,000-square-foot training facility and saw candidates learning how to build 787 Dreamliners. Those who excel in the 10-week paid program are hired full time. Gov. Nikki Haley said the success of S.C. manufacturers such as Boeing and BMW, and their ability to find skilled workers through the state’s training programs, was one of the defining reasons Volvo decided to bring a car plant and
4,000 jobs to the Lowcountry. Volvo spokesman Jim Nichols said in an email that the company plans to hire employees for local administration and factory production, which includes work on state-of-the-art robotics and automation equipment. The company did not provide details on specific jobs or wages, or what the plant will produce, though state officials have said the new XC90 and an existing model are possibilities. Officials from Volvo and readySC both said they have not worked out training details yet, such as where it will take place and how long training will take. Susan Pretulak, the S.C. Technical College System’s economic development vice president, said next steps will be meeting with the company to determine the scope of the project, including time frame, positions, qualifications, and needed knowledge, skills and abilities. From there, a customized recruitment and training solution will be developed in step with the company’s construction and production time frame. Barry Jurs, Berkeley County economic development director, said the county plans to build a training center on the Camp Hall Tract site for Volvo. Jurs said
funding for that project will likely come from the state. Successfully training employees to build cars will be a key test of whether Volvo made the right choice in South Carolina. Volvo aims to boost lagging U.S. sales and produce 100,000 vehicles each year with its new plant. “Training is the future of Volvo, and Volvo is the future of jobs for our region,” Jurs said. BMW employees had to show the world that they could build cars in a small Upstate town 23 years ago. Boeing South Carolina employees were under similar pressure when they had to build Dreamliner jets for the first time in South Carolina a few years ago. Commerce Secretary Bobby Hitt said the state will meet Volvo’s workforce needs through readySC. “There were no autoworkers when we announced BMW. There are 8,000 at that plant now. There were no aerospace workers when we announced Vought and later Boeing. Now there are 8,000 there,” Hitt said. “Basically we have a system that can act and react to develop a workforce.” Eleven counties are within a 60-mile radius of the Camp Hall Tract where Volvo will build its facility, providing a
Barry Jurs Berkeley County economic development director
“Training is the future of Volvo, and Volvo is the future of jobs for our region.” large pool of potential employees within driving distance, according to Berkeley County Supervisor Bill Peagler. “This will impact the quality of life for several counties, especially along the I-95 corridor where there hasn’t been significant investment or jobs,” Peagler said. cr bj
Reach staff writer Liz Segrist at 843-8493119 or @lizsegrist on Twitter.
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Infrastructure changes to transform Volvo site into ‘industrial town’ By Liz Segrist
lsegrist@scbiznews.com
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ost of the $204 million incentives package that helped lure Volvo to South Carolina will be used for site infrastructure. The Sweden-based automaker plans to invest $500 million in the Berkeley County site. Santee Cooper’s board voted to buy the 6,800-acre Camp Hall Tract off exit 187 along Interstate 26 and develop it for the future home of Volvo’s U.S. plant. Site owner MWV has managed the site as a pine plantation. The tract is currently covered in trees and is completely undeveloped. It needs water, a sewage system, electricity, site prep work, a highway interchange and rail access. More roads will be built for employees and trucks to access the site. About 2,880 acres of the 6,800-acre site will be used by Volvo as the anchor tenant. Berkeley County plans to eventually own the Volvo portion of the site. The remaining land will be prepped for future industrial projects, Volvo suppliers or future Volvo expansions. “We will build an industrial town along Interstate 26 and populate it with 4,000 people over time,” Hitt said. Among the Volvo incentives, an estimated $120 million will come from state economic development bonds and $30 million will come from state Commerce Department grants. Incentives need approval from the state’s Joint Bond Review Committee, Budget and Control Board and the Coordinating Council for Economic Development. Santee Cooper’s board already approved $54 million in incentives for the project.
Hitt said most of that funding will be used for public infrastructure, including a new highway interchange and roadways to the industrial park. The Commerce Department declined to share details about where the rail line will run and whether CSX or Norfolk Southern will provide access to the site. A rail line runs through Ridgeville, a town about seven miles from the Volvo site. Those tracks would have to cross Interstate 26 to reach the Camp Hall Tract. “Rail is an essential part of the longterm development of the site. ... A strategy is in the works,” Commerce spokeswoman Allison Skipper said. Santee Cooper, Edisto Electric Cooperative, Berkeley Electric Cooperative, the S.C. Power Team and Lake Marion Water Agency will work with Berkeley County to provide water, a sewage system and electricity to the tract. “We wanted to prep the site for any type of business,” Santee Cooper CEO Lonnie Carter said. “It is such a big site. We really needed a large anchor tenant that would make a significant investment going in so the rest of the site could be marketed.” Hitt expects site prep to begin this fall and construction to start in the first quarter of 2016. The first cars are expected to roll off the assembly lines in 2018. In a regulatory filing, the automaker said it wanted to build a plant within 50 miles of an airport and seaport. Both the Port of Charleston and Charleston International Airport are about 30 miles from the site. cr bj
Reach staff writer Liz Segrist at 843-8493119 or @lizsegrist on Twitter.
Port of Charleston critical to Volvo success
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arts will likely be shipped through Port of Charleston terminals and then either trucked or sent by rail to the Volvo site. Cars will be shipped to global markets through the Columbus Street Terminal off East Bay Street in downtown Charleston. That terminal handles break-bulk cargo, which are products that cannot fit into containers. “I look back in hindsight. Had we not invested in Columbus Street as a railroad terminal five years ago, we wouldn’t be sitting here today,” S.C. State Ports Authority President and CEO Jim Newsome said. Newsome said Volvo’s operations will be similar to those of other auto manufacturers using the port. BMW in Greer and Mercedes-Benz in Ala-
bama have been importing parts and exporting cars through the port since 1994 and 1999, respectively. The ports authority is now working with Volvo on logistics details. As more auto manufacturers move cargo through the Port of Charleston, Newsome said the ports authority will eventually need to expand the terminal’s capacity, noting that it does currently have adequate capacity and ship services to serve Volvo. “Manufacturing is a huge multiplier for a port,” Newsome said. “We have an important role in making their supply chain work because automotive really is a just-in-sequence business. They do not store inventory at their plants, so we have to make sure their plants don’t shut down. It’s that critical.”
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DRIVING CHANGE
Following the big win for South Carolina, Gov. Nikki Haley said the real work now begins to ensure the state delivers on all of its promises to Volvo. The Camp Hall Tract has to be transformed from a pine plantation into an industrial campus. New roads, a new highway interchange and rail access are planned for the site. Workforce training programs must be designed and incentives must be approved. Volvo plans for the first South Carolina-built model to roll out of the Berkeley County plant in 2018. The automaker is poised to be a game changer for Lowcountry residents and the state’s automotive sector.
Going the distance
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hen Volvo officials decided to expand the company’s global reach and boost lagging U.S. sales, they looked to the U.S. for their next car plant. They sought a site with a lot of land to house the automotive plant, as well as room to spare if operations expanded or if suppliers located nearby. Volvo also wanted access to major highways, an international airport and a seaport to handle imports of raw materials and parts and exports of cars to global markets.
LOCATION FACTS: • 35 miles from the Volvo plant in Berkeley County to the Port of Charleston • 29 miles to Charleston International Airport • 4,435 miles from the S.C. plant to Volvo’s headquarters in Gothenburg, Sweden. It is a 14-hour flight with two stops from Gothenburg to Charleston.
Gothenburg, Sweden 4,435 miles
Camp Hall Tract Ridgeville CHS Airport
Shanghai, China 7,600 miles
SC Ports
Graphic/Andrew Sprague
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Volvo’s place in the world Sweden
Gothenburg: Head office, product development, design center, marketing, administration, car production Skovde, Floby and Olofstrom: Component manufacturing
Denmark
Copenhagen: Research and development center
Belgium
Ghent: Car production
United States Camarillo, Calif.: Design center Berkeley County: Automotive manufacturing plant; construction begins this fall
China
Shanghai: China headquarters, engineering center, design center Daqing: Manufacturing plant Chengdu: Manufacturing plant Zhangjiakou: Engine manufacturing plant
Malaysia
Kuala Lumpur: Assembly factory
Global employee breakdown as of 2014
Sweden:................. 61% Belgium:................ 16% China:.................... 15% Other markets:....... 8%
Sales by region in 2014:
Western Europe, excluding Sweden: .........................39% Rest of the world (combined markets): ...18% China: ............................17% Sweden: .........................13% U.S.: ...............................12%
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