Outlook 2020: Business in Tulsa by Tulsa World

///////////////////////////// BUSINESS IN TULSA // TULSA WORLD SPECIAL SECTION // Sunday, February 23, 2020 /////////////////////////////

OUTLOOK2020

GROWING

TULSA

City continues upward climb with new and evolving businesses, developments

INSIDE Tulsa World publisher: Tulsa’s time to shine is now. 2

Governor: State’s economic “wins” are diverse. 4

Universities helping to fill gaps in health care coverage. 5

Area casino gaming playing key role in local economy. 14

2020 expected to be “another exciting year” for housing. 23

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OUTLOOK2020

The west bank of the Arkansas River offers a sweeping view of downtown Tulsa’s skyline. TOM GILBERT/Tulsa World file

Tulsa’s time to shine is now Gloria Fletcher World Publisher gloria.fletcher @tulsaworld.com

he beginning of a new year always brings positivity, but a new decade? Now that can be a bit daunting and intimidating! As our mothers always told us, time really does fly by us. But time is precious, and even though I’ve only been a Tulsan for a couple of years, I know that Tulsans “get it.” Progress is moving quickly, and Tulsa’s time to shine is now.

As we move toward the commemoration of the 1921 Tulsa Race Massacre, more and more discussions are taking place about how we come together as a city with citizens of many diverse backgrounds. How can we learn from the mistakes of the past and build toward the future? These are discussions that make us stronger and build our community. They are discussions that help us confront other issues that may divide us. But we will learn together as we work together. And Tulsans have worked together amazingly over the past year. You can see signs of this everywhere you look. While all of us tend to complain about our streets and highways being under construction, these are good problems to have. I don’t like all the orange cones and flashing lights any more than you do, but they are a sure sign of progress and cohesive planning and thought. Our schools are making changes that will make it easier to ensure our children and grandchildren have an excellent education with many options available to them. We’re taking the time to have open discussions and find answers to questions being raised in our ever-changing environment. Just the other day, I had the pleasure of meeting a couple of board members from Gilcrease

Museum. I was struck by the passion in their voices as they talked about not only the Gilcrease we know now but also the Gilcrease of the future. We hear the same kind of passion when people talk about the Philbrook Museum of Art, Route 66, Woolaroc and many other Tulsa-area treasures. And I haven’t yet mentioned the beauty along the river and the laughter and giggles you are sure to hear when you are in and around Gathering Place. So yes, I’m sitting at my kitchen table on a frightfully cold, dreary morning, thinking … just thinking. I’m looking outside and quietly pondering what the day may hold. The sun begins to peak out from behind the clouds, letting glimmers of blue, pink and yellow shine through. I have such hope for today and for all the todays and tomorrows in our future. Tulsa’s time to shine is now, and I’m one proud Tulsan! Gloria Fletcher moved to Tulsa from Seattle, where she was president of Sound Publishing. She started her career at her hometown newspaper, the Woodward News, and became publisher of the paper at 26. She was named publisher of the Enid News and Eagle a few years later. Fletcher is a graduate of the University of Oklahoma.

INSIDE

Downtown Tulsa’s architecture is just one aspect of its treasured history. JOHN CLANTON/Tulsa World file

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Gov. Kevin Stitt: Economic “wins” are University health clinics provide care to Oklahoma’s oil and gas production More banks adapting to fit consumer diverse in Oklahoma.................................O4 underserved Tulsans................................. O5 continue upward march..........................O15 needs.........................................................O23 City’s 2020 economic development to Casino gaming plays key role in local Cannabis business still evolving in “Another exciting year” expected for area focus on life-expectancy gap.................. O5 economy.................................................... O14 Oklahoma .................................................O21 housing developments...........................O23

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Saint Francis Health System continues to provide award-winning healthcare.

“

Delivering the best care starts with the best people, and I firmly believe that we have the best healthcare team in the state. JAKE HENRY JR. President and Chief Executive Officer, Saint Francis Health System

In 2019, Forbes released its first-ever list of best employers by state. Saint Francis Health System was

”

Saint Francis Health System employees enjoy more than personal fulfillment. Competitive pay, outstanding

named among Oklahoma’s best employers, and was

benefit packages, sign-on bonuses for many positions,

the only Tulsa-based private employer to make the list.

tuition reimbursement, continuing education

This honor comes on the heels of numerous other local,

incentives, flexible scheduling, career-advancement

regional and national accolades for the health system,

opportunities within the organization—these and more

including U.S. News & World Report’s recognition of

combine to offer employees an attractive work/life

Saint Francis Hospital—for the second year in a row—

balance that stands out among healthcare organizations.

as number one in Oklahoma for high-quality care. There are many reasons for the success of Oklahoma’s largest healthcare provider, but above all is the quality of its workforce. “Delivering the best care starts with the best people, and I firmly believe that we have the best healthcare team in the state,” says Jake Henry Jr., president and chief executive officer of Saint Francis

Health System. “These awards are a tribute to our employees, for not only providing the highest-quality care to our patients, but also for cultivating and fostering a culture that merits recognition by organizations such

Throughout every department and every entity in the Saint Francis Health System network—from Tulsa

as Forbes and U.S. News & World Report.”

to Vinita, McAlester to Muskogee, and many points

As a private, not-for-profit health system that is locally

to the organization’s mission: To extend the presence

governed and locally managed, Saint Francis Health System is able to recruit medical professionals who seek an environment where they can do what they are born to do: make a positive difference in people’s lives.

in between—employees are united in their commitment and healing ministry of Christ in all we do. Employees understand the importance of the mission and their

role in serving the physical, spiritual and emotional needs of patients.

Over the past decade, the health system has become Tulsa’s largest private employer, with more than 10,000

For more information or to explore careers and opportunities

women and men throughout its various hospital, clinic

available with Saint Francis Health System, please visit

and corporate locations.

saintfrancis.com/careers.

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OUTLOOK2020

A plane takes off from the American Airlines maintenance base in Tulsa. American Airlines is one of Tulsa’s largest employers and has shown confidence in the area’s workforce by adding employees. MATT BARNARD/Tulsa World file

Economic ‘wins’ diverse in Oklahoma Kevin Stitt Governor of Oklahoma

n my first year as governor, I have been impressed and inspired by the team of leaders who are working in unison with the state to bring the world to Oklahoma and Oklahoma to the world. Our shared mission is already demonstrating great results in the Tulsa and northeast region of the state. From Milo’s Tea and Conner Industries making investments in Tulsa to Google’s latest investment in Pryor and J-M Farms’ $10 million expansion in Miami, Oklahoma, economic “wins” are diverse in both location and industry. In 2018, projected new investment in northeast Oklahoma was just more than $572 million, with an average wage of nearly $40,000. In 2019, economic development announcements in the region added up to more than $1 billion in projected new investment and an average wage of $54,420. With this increase in investment, we are headed in the right direction. It is also critical that we bring in jobs that offer Oklahomans increased opportunity and a better quality of life. In northeast Oklahoma, in particular, we are seeing impressive growth in the sectors of aerospace and defense, as well as paper manufacturing. American Airlines continues to increase work at its Tulsa facility, showing a confidence in the area’s workforce. In June, Sofidel will host the grand opening of its $360 million manufacturing plant in Inola. This plant represents the largest manufacturing investment the state has seen in recent years and highlights that Oklahoma can com-

Google CEO Sundar Pichai makes remarks at the announcement of a data center expansion at the Google facility in Pryor on June 13. MATT BARNARD/Tulsa World file

The $360 million Sofidel plant under construction in Rogers County will encompass 1.8 million square feet. Courtesy

pete on a global scale. These are all in addition to Kimberly-Clark’s $120 million investment in its Jenks facility. Northeast Oklahoma has many advantages, includ-

ing excellent quality of life, low cost of doing business, low tax burden, an abundance of natural resources and honest, hard-working people. These are strengths that help us to aggressively

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recruit new job creators into the region and work to expand local businesses — rural and metro alike. When I speak to job creators looking to relocate, the best compliment I

consistently receive is that Oklahoma is known for its collaborative environment across our federal delegation, the state and municipalities. Thanks to our one-stop-shop in the Oklahoma Department of Commerce, we have a track record of making site selection simpler by streamlining processes and focusing on relationships. As we enter 2020, we are off to a strong start. Thanks to the collaboration between my administration and our hard-working legislators, we are now equipped with innovative tax credit tools and the largest Closing Fund in state history that allows us to focus on bringing the best workforce to Oklahoma. We have also launched the new Oklahoma Works Together initiative, which brings a collaborative, localized and data-driven approach to strengthening Oklahoma’s workforce efforts. As governor, I want to leverage this progress. I am excited about the Commerce Department’s recruitment efforts toward entrepreneurs and business startups. It is important we create a culture that attracts innovators and retains investment dollars in Oklahoma. Startup and growth companies are essential to a healthy and growing economy. I am laser focused on becoming top 10 in the nation for GDP growth, and the success of northeast Oklahoma is essential to reaching that goal. There is no better time in our state’s history than now. Our economy is growing and competitive, and by working together, we can accomplish our vision to see Oklahoma celebrated as the best state in the nation.

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OUTLOOK2020 ECONOMIC DEVELOPMENT

Tulsa takes aim at reducing life-expectancy gap City looks to eliminate barriers that keep some people out of the workforce By Kevin Canfield Tulsa World

It’s tempting to begin this story on economic development in Tulsa with a few numbers. Unemployment is low, after all. And new construction is booming. But as Kian Kamas, the city’s chief of economic development, would tell you, the numbers don’t mean much if they’re not leading to better lives for Tulsans. “Ultimately, the work that we do funnels down to the lives of families and children throughout Tulsa,” she said. “And if what we’re doing is not positively benefiting the lives of families and children, then we kind of need to rethink our strategy.”

An artist rendering depicts the 11-story, 260,000-square-foot headquarters that WPX is building in the Tulsa Arts District. Courtesy

Kamas and her staff do have a strategy, and it hinges on one number: 10.6. That is the number of years fewer that a person residing in north Tulsa’s 74126 ZIP code

can expect to live than a person in the 74137 ZIP code in south Tulsa, according to 2016 figures. In 2020, Kamas said, the city plans to focus its efforts on reducing that number. Several

strategies will be in play, including working to eliminate the barriers that continue to keep some people out of the workforce. But no effort has the potential to move the needle more than helping attract and maintain businesses that can provide well-paying jobs, Kamas said. “That is, I think, just incredibly important as we think of closing the life-expectancy gap — making sure that people are earning wages that can support a family and that can make sure that they have a quality of lifestyle that they can have access to safe and affordable housing,” she said. The city will also examine its development incentives to ensure that the projects it supports help achieve the goal of decreasing the life-expectancy gap.

“We are really trying to think through how can the projects that we work on or the way that we align our staff really shift that (life-expectancy) reality,” she said. In 2019, the valuation of building projects permitted by the city reached $3.1 billion. The year before, the valuation was about half that amount. “Not included in that $3.1 billion last year is the building permit for WPX, or the building permit for The View, or the building permit for the grocery store development across from the PAC, or the Muncie Power Products at 36th (Street) and Peoria (Avenue),” Kamas said. “We feel confident momentum will continue well into 2020.” Kevin Canfield 918-645-5452 kevin.canfield @tulsaworld.com Twitter: @aWorldofKC

HEALTH CARE

Universities help fill holes in coverage

The OSU Center for Health Sciences also operates an addiction clinic in midtown Tulsa. Tulsa World file

OU, OSU are working to facilitate access to care for underserved Tulsans By Lenzy Krehbiel-Burton For the Tulsa World

It might take a minute, but the doctor will see you now. Hillcrest Health System, St. John Health System and Saint Francis Health System are still among the city’s largest employers. However, the U.S. Department of Health and Human Services’ Health Resources and Services Administration still classifies Tulsa, like almost all of Oklahoma, as a Health Professional Shortage Area, or one that does not have at least one primary care provider for every 3,500 residents. With more than 1,500 primary care providers across the Tulsa metro area, the shortage

is not as acute compared to the more rural communities. However, it has helped shape efforts from the University of Oklahoma and Oklahoma State University to fill in the coverage gaps. The OU-TU School of Community Medicine at OU-Tulsa’s Schusterman Campus is working to facilitate access to care for underserved Tulsans through its Community Health Clinic program. Launched in 2003, the Community Health Clinic includes an evening walk-in clinic and a longitudinal clinic for chronically ill patients. All services, including lab and radiology, are available for free and are funded exclusively through private donations. According to data compiled by the Centers for Disease Control and Prevention, Oklahoma’s drug overdose rate is 20.1

per 100,000 residents. With that figure slowly climbing due to alcohol, methamphetamine and illegal opioids, such as heroin and fentanyl, the OSU Center for Health Sciences now operates an addiction clinic in midtown Tulsa. Co-located at 6333 E. Skelly Drive with 12 & 12, the state’s largest comprehensive community addiction resource center, the outpatient clinic offers individualized, evidence-based outpatient treatment for multiple forms of addiction and mental health services for adults. The facility operates in partnership with Minnesota-based Hazeldon Betty Ford Foundation, the country’s largest nonprofit addiction treatment provider. With almost the entire state still considered a Mental Health Professional Shortage Area by the Health Resources and Services Administration,

OSU Center for Health Sciences received an additional $250,000 grant in January from Blue Cross and Blue Shield of Oklahoma to research the effectiveness of telehealth for treating addiction. “We admire Blue Cross and Blue Shield of Oklahoma’s leadership in expanding access to addiction treatment services,” said Dr. Kayse Shrum, president of OSU Center for Health Sciences and dean of the OSU College of Osteopathic Medicine. “This major investment will allow us to reach more Oklahomans who are struggling with addiction and who would benefit immensely from the expertise at OSU Medicine. We appreciate our continued partnership with Blue Cross and Blue Shield of Oklahoma.” OSU Center for Health Sciences is also taking steps to address the shortage of primary

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care providers through a partnership with the Cherokee Nation. When it opens in August with 50 students, the OSU College of Osteopathic Medicine at Cherokee Nation will be the first tribally affiliated medical school on tribal land in the country. Located at W.W. Hastings Hospital, the new 84,000-squarefoot medical school’s teaching space will include an anatomy laboratory, a clinical skills lab, an osteopathic manipulative medicine lab, standardized patient labs, three lecture halls and a state-of-the-art simulation center. “We know there’s a doctor shortage in Oklahoma,” Cherokee Nation Principal Chief Chuck Hoskin Jr. said. “We know across the country, particularly in rural areas, it is difficult to recruit and retain doctors.”

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Career Tech

Tulsa Tech offers array of job prospects to students T Tulsa Tech launched HireTulsaTechgrads.com, a free service that provides career advice and employment connections in one spot, in 2018. The school is the first of Oklahoma’s 29 Career Tech centers to employ a program that meets NACE standards. One of the highlights of HireTulsaTechgrads.com is direct 24/7 access by students and alumni to area employers.

ulsa Tech has made it even easier to connect job-seeking students to businesses searching for qualified employees.

“Students have a job board specific to what we train for,” Johnson said. Career Services at Tulsa Tech offers so much more than job listings.

As many colleges across the country have fallen behind in their investments in career services, Tulsa Tech has been proactive in improving the quality of its program and incorporating best practices to get more students to use the service.

The program provides job search, career readiness and networking opportunities, as well as mock interviews, resume reviews and career fairs. The goal is for every student to have a resume uploaded to the system upon completion of their educational program.

In 2018, Tulsa Tech began expanding its career services program, hiring a career coordinator for each of its six campus locations to assist with students’ career readiness. It launched HireTulsaTechgrads.com that year to provide a comprehensive one-stop shop to better serve students, alumni and employers. Program standards were aligned with those of the National Association of Colleges and Employers (NACE), as are all area colleges and universities. “We’re using the same type of system that any post-secondary institution is offering their students,” said Karen Johnson, director of Tulsa Tech Career Services.“I like for people to know that when our students leave here — and about 40 percent of our students go on to college — they will have already experienced the type of career services program they will see in college.” Tulsa Tech is the first of Oklahoma’s 29 Career Tech centers to employ a program that meets NACE standards, she said.“We pave the way,” Johnson said. Since launching the new career services program, student engagement with the program has grown and employer relations have both improved and increased. One of the highlights of HireTulsaTechgrads.com is direct 24/7 access by students and alumni to area employers. Thousands of employers are actively seeking employees through Tulsa Tech career services to fill available positions.

“I like to tell students that they don’t want to miss the opportunities on HireTulsaTechgrads.com because many local employers have contacted us trying to find them,” Johnson said. The benefits go both ways. Employers have access to a significant pool of job applicants who are trained for the jobs they are looking to fill. They also have connections with instructors, alumni and have a voice in helping develop the curriculum Tulsa Tech uses to train students. “Our advisory members guide us not only on technical skills students will need to be successful in the workplace, but sometimes more importantly what professional skills are needed, such as a work ethic and dependability,” Johnson said. Overall, 96 percent of Tulsa Tech graduates move on to either fulltime employment, military service or higher education. A large part of the reason is due to Tulsa Tech’s efforts in reaching out and developing relationships with area employers. In the past 18 months alone, the system has added 1,000 new employers who want to use the service to find new employees, Johnson said. Currently, there are nearly 300 new job postings available for students and alumni to pursue. For employers, a partnership with Tulsa Tech can be a great boon for their business. Once an employer signs up with HireTulsaTechgrads.com, they can ‘sell’ their company to potential

Tulsa Tech P.O. Box 477200, Tulsa, OK 74147 918-828-5000 • tulsatech.edu

employees. Not only can they post multiple employment opportunities and internships on the job board, but they also can promote their company by helping Tulsa Tech students prepare for the job selection process by offering mock interviews and other resources. “Oftentimes, this is the first time our students have been through an interview process,” Johnson said. Also, employers may volunteer to offer industry tours for students or provide speakers in the classrooms, as well as participate in job fairs that Tulsa Tech hosts on various campuses. “We’re in the business of preparing students for success in the workplace and that includes developing relationships with industry to gauge their workforce needs,” Johnson said. According to a recent Grow Metro Tulsa survey of industries in 11 counties, every single industrial employer interviewed praised Tulsa Tech for the quality of its facilities, instructors and customer service in regards to meeting employer workforce needs. Construction, hospitality, information technology, manufacturing, transportation and health sciences are currently the top fields where Tulsa Tech students are engaging with local industry. “Employers in the Tulsa metro looking to fill any positions should check out HireTulsaTechgrads.com. Our campuses are full of eager students who can start right after graduation,” she said. Tulsa Tech offers a wide range of opportunities to prepare students for success in a career. With six locations throughout the county, a Tulsa Tech campus is never too far away. Tulsa Tech will host a hiring event from 8 a.m.-2 p.m. on April 24 at the Riverside campus. It is open to students and alumni, as well to the public. For more information about Tulsa Tech, visit tulsatech.edu.

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Why Move to the Cloud? C

loud computing is a technology that uses a network of remote servers to store, manage and process data, rather than using the traditional local servers your business might have on-site today. “Cloud computing is basically Internet computing,”says Jason Ludwig, sales director for Cox Business. “With the cloud, your company’s critical data and computing resources are securely stored in a remote location and delivered to authorized users through the internet. The ‘cloud’ really means the same thing as the Internet,”Ludwig says.

Cloud computing is becoming the new normal for businesses of all sizes. Here are some benefits associated with making the move to the cloud.

Why are so many businesses migrating to the cloud? “It’s because cloud computing provides growth opportunities, scalability, reliable quality, affordable pricing, easy collaboration, and simple data access,”Ludwig explains.“Cox Business Cloud Solutions can help your business in a myriad of ways.” Here are a few of the benefits associated with cloud computing.

Virtual Desktops Virtual desktops allow employees to work from the cloud as opposed to depending on a literal desktop. Cloud offers the capability to have all your files on hand and accessible from any device — anywhere, anytime. “Let’s face it,” Ludwig says,“the world has gone mobile. With virtual desktops in the cloud, users can take their desktop environment with them on their tablets, smartphones, laptops and other devices.”

Virtual Servers Virtual servers based in the cloud eliminate the maintenance requirements of in-house servers. This includes hardware, cabling, cooling devices, backup generators and more. Virtual servers provide flexible, standardized and seamless operating environments; this allows applications to perform at their peak without downtime. And many connectivity resources can be delivered at a “payas-you-go” cost, which allows you to operate like an enterprise-level company, no matter what your size.

Hosted Microsoft Exchange

poses the highest risk of complete loss in the event of a disaster. This risk can be avoided with the cloud. Cloud disaster recovery and business continuity solutions will secure business data and ensure minimal downtime in the event of a disaster. With the cloud, a company’s business applications and data are always safe and accessible.

Cost Efficiency The time and money that go into traditional IT operations are essentially eliminated with the cloud. Given that the cloud provider manages the hardware and software for you, it’s virtually a capital-expenditure free solution. “Cox Business Cloud Solutions allow a business to pay for what it uses, so you don’t spend money on unneeded services,”Ludwig notes. “It’s really never been easier; a company can free up it’s IT staff to focus on running a business, while also saving money.”

Scalability In the cloud, businesses can scale easily, drive operational efficiency, and manage shifting computing needs with the cloud’s flexible resources. According to Ludwig,“the ability to scale is essential for many organizations, big and small. Infrastructure is expensive, and cloud computing helps businesses avoid these costs while maintaining the ability to scale up or down in any situation.”

Simplicity With the constant advancement of technology and applications, businesses want solutions that are easy to use, no matter what device employees are working from. Not only is the cloud a simple environment to use and navigate, it’s reliable, convenient and constant. “The cloud’s virtual environment provides a familiar interface that’s universal across all devices,”Ludwig explains. “As a cloud provider, we handle the design, testing, migrations and implementations … which lets you and your team focus on running a business.”

Stability The cloud is a reliable resource that performs in a uniform, unvarying way across all devices. Some providers offer

With Microsoft Exchange, businesses can have an entirely cloud-based hosted email solution. “Hosted Microsoft Exchange is a better option, because of its efficiency and simplicity,”Ludwig says. “With Cox Business Cloud Solutions, we manage the migration, which makes installation easy and uncomplicated.” Businesses remain in control of their email solution by tailoring it to their specific needs and ensuring communications are always available.

Disaster Recovery Losing critical data is detrimental to any business, and housing data in-house

Cox Business Cloud Solutions 11811 E. 51st Street, Tulsa, Oklahoma 74146 coxbusiness.com/cloud

unlimited bandwidth running in and out of their data centers, which delivers extraordinary performance to users regardless of their location or device. With the cloud, desktop environments are always up-and-running.

Mobility Having multiple devices — laptop, tablet, phone and more — is now a normal occurrence for employees and having different data on each one creates an inefficient and insecure situation. Cloud computing removes this burden by providing an all-in-one business solution. “With the cloud, you can access your information from any device through a Web browser or application,”Ludwig adds.“Everything is stored in an accessible and secure cloud environment, so users won’t ever be without their files.”

Security “All businesses want and need high levels of security,”Ludwig says, “especially those that have highly confidential or delicate information. Cloud computing assures the highest security because we use enterpriseclass solutions for all physical and network security measures. Many of our solutions meet and exceed standards like HIPAA and PCI.” In addition to protecting a business from viruses, malware, hackers and rogue employees, typical cloud security measures include full redundancy, encryption, biometric scanning, 24/7 surveillance and monitoring, firewalls and more. “Any one, or two, or three of the benefits we’ve reviewed is enough to convince many business owners about the cloud’s viability,”Ludwig concludes. “But when you look at all the potential benefits the cloud has to offer, it’s really a no-brainer. That’s why more and more companies are taking advantage of managed cloud services to achieve greater performance, value and focus.” For more information about Cox Business Cloud Solutions, reach out to your local Cox Business account executive or visit coxbusiness.com/ cloud.

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Libby Wuller

Native Oklahoman uses startup expertise to boost Tulsa technology industry Aim is to build a larger and increasingly diverse tech workforce

ibby Wuller is helping to bring to life a booming technology industry in Tulsa.

At just age 24, the Stillwater native has a wealth of experience in the startup world and a reputation in the field that belies her age. She is executive director of the Holberton School, an innovative and intensive education program that turns out software engineers in less than two years who are better prepared for the workforce than students who attend traditional universities.

But while in college, something else grabbed her attention. During her sophomore year, Wuller got a call from a friend who was enthusiastic about a new startup he was working on. One of his friends from Harvard had developed a software platform that could analyze government data, specifically about members of Congress. It mapped voting history and sponsorship data of members of Congress to show who was bipartisan and how legislation had changed from version to version.

It was then that Wuller realized that she missed the early days of the startup when there were only a small number of people involved. “Yes, you worked a lot of hours, but you could make real change and impact every single day,” she said. She decided to move to Tulsa and work for Quorum on a remote basis for a while, knowing that she eventually wanted to find a new career opportunity here where the quality of living is high and the cost is low. Essentially, Wuller came home again.

The school has just arrived in Tulsa and While still attending Harvard University, its first cohort of nearly 40 students has the startup’s founders were ready to begun learning how to code software build a team in D.C. who could do using project-based curriculum.There market research, shop around the are no instructors. Students learn in beta software and eventually build groups of their up the sales peers.The operation. curriculum is designed by “So, while I was top leaders in in school, I said the industry. yes to what I Tuition is thought was Holberton is changing the deferred and just going to way education is done. Its no coding be a project. experience is It ended up model is designed to open necessary. being an doors to a more diverse incredible talent pool by removing It is all journey,” financial and educational designed to Wuller said. open software obstacles. engineering As a member education of the There are no instructors and opportunity development no lectures. The school uses to a more team, she not diverse group only worked an online, project-based of students in sales but curiculum in a peer-to-peer and increase helped think learning environment. the number through Students learn by doing. of software the process engineers of building to meet a scalable operation. She did a lot of marketingskyrocketing demand. related work, from organizing conferences and events to building out The only requirements are that a person a new sales funnel and metricizing the is 18 years of age or older and that data that goes along with that. they have a high school diploma or equivalent. She started as the sixth hire and, when she left, the company had scaled to Wuller always thought that after she nearly 100 team members. graduated from George Washington University in Washington, D.C. with a degree in political science, she would Quorum continued to grow. Eventually go directly into politics as she had the company brought in several new always dreamed. She had once interned vice presidents because the early for Oklahoma Sen. James Inhofe and startup team wanted to move on to expected to continue that career path in “their next big thing,” she said. Some government or politics. began new startups of their own while others rejoined politics.

A NEW DIRECTION

“When I moved here, I knew networking is the name of the game. I spent the summer of 2019 taking more than 40 networking coffees to understand what the tech scene here is like, what the ecosystem looks like, and essentially, to find places where my expertise could come in and I could make a big impact,” Wuller said. It wasn’t long before the George Kaiser Family Foundation came calling about an opportunity to help bring the Holberton School to Tulsa. “They told me they had this brilliant new model where they’re teaching students to become software engineers in under two years and there’s no upfront tuition.They said they needed someone to build out their presence in Tulsa,”Wuller said.

Even her record of advocating across the country to get more women and young people to participate in government aligns perfectly with Holberton’s mission to attract a more diverse software engineering workforce. Wuller began at Holberton in October last year, overseeing the renovation and build-up of a historic space downtown at 15 N. Cheyenne Ave. The school’s next two cohorts begin in June and September. She is busy recruiting at area high schools and businesses to boost enrollment and provide a jump-start for Tulsa’s tech industry. “My dream is for companies we’re partnering with to come to us and say, ‘Hey, we have some students for you.’ We’d like to see businesses put their employees through the program then hire them back as software engineers,” she said. What Wuller does as executive director at Holberton is very much like building a startup company from the ground floor. And that is where she is most comfortable, making change that could transform Tulsa into a thriving tech city. “We really want to partner with the community,”Wuller said.“We know this is very much a community effort and we won’t be successful unless we all do it together.”

She enthusiastically took the job. “It’s exactly the right fit,”Wuller said.

Holberton School 15 N. Cheyenne Ave., Tulsa, OK 74103 918-392-5530 • holbertonschool.com/campus_life/tulsa

For more information, visit holbertsonschool.com/campus_life/ tulsa.

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OUTLOOK2020

Tulsa arts community

Tulsa Symphony business model only one of its kind in the country A fter moving from Aspen to become executive director of Tulsa Symphony, Keith Elder has grown passionate about the unusual way decisions are made at the charitable music organization.

According to the U.S. Bureau of Economic Analysis and the National Endowment for the Arts, the arts contribute $763.6 billion to the U.S. economy — more than agriculture, transportation or warehousing. In fact, the arts add four times more financially to the U.S. economy than agriculture and $200 billion more than transportation or warehousing. Tulsa Symphony and the other arts organizations do the same service for the local economy.

He took the Tulsa position on Aug. 1 following leadership roles with the Aspen Music Festival and School, Eastman School of Music, the Boston Symphony Orchestra and Boston Pops — all highly regarded institutions in the music world. But he had never seen something similar to the way operations and programming at Tulsa Symphony are run. “Everyone in the organization has a voice. Our musicians are fully integrated in running the organization. And everybody works together in planning and programming,” Elder said. The consensus model of business is unique to the Tulsa Symphony. In fact, it is the only city symphony in the country to be run on the basis that everybody in the organization has access to a voice in every major decision. “Egos are checked at the door,” he said. In the business world, Elder said he often sees the eyerolls from others when he explains how decisions are made at Tulsa Symphony.They can’t believe that a group of people could come to an agreement every time the organization makes a move. “Fifteen years in and it’s very successful,” he said.“It definitely works. And it works beautifully.” Six of Tulsa Symphony’s 12 staff members are musicians in the orchestras. Each “integrated musician” holds a dual appointment with Tulsa Symphony as both an administrator and a performer. Musicians also play an active role in each of the Tulsa Symphony’s 13 committees, including the artistic committee.That committee acts as

the organization’s artistic director and selects the repertoire, conductors and soloists for each season.

In addition, 25 percent of the members of the Tulsa Symphony board of directors are orchestra musicians and have a major role in the organization’s direction. “There is no management/employee relationship in our organization. We are all on the same level as far as making any decision that affects the Tulsa Symphony, from programming to fundraising,” Elder said. The success of the model is due precisely to the fact that nothing is dictated from the top. “Everyone has a voice in major decisions. And everyone is invested in the outcome,” Elder said. Each major decision is made by the entire organization during meetings, which are scheduled for all members to gather and discuss a specific proposal. After some research and thought, Tulsa Symphony Orchestra members bring their concerns and questions to a second meeting to discuss and come to consensus. It is there that the group comes to a consensus and, ultimately, makes a decision on the plan moving forward. “When a decision is dictated from the top, you might have 55 percent on board. But what about the 45 percent of people who aren’t happy?” Elder said. In the consensus model, hard work and preparation on the front end leads to a consensus on a plan of action and paves the way for a smoother implementation process. The business model was a reaction to the organizational failure and financial struggles that ended the 50-plus-year run of the Tulsa Philharmonic in 2002. Symphony organizers knew that wholesale changes were needed to establish a successful orchestra in Tulsa.

Tulsa Symphony 117 N. Boston Ave., Tulsa, OK 74103 918-584-3645 • tulsasymphony.org

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The traditional model wasn’t good enough. In fact, many similar-sized city orchestras were also going out of business during that time due to some of the same issues Tulsa Philharmonic had experienced. In 2005, Frank Letcher, a community leader and member of the board of directors of the Tulsa Opera, led the charge to establish the Tulsa Symphony. Active in the Tulsa arts community, Letcher believed the organization should operate with “integrity, transparency and candor.” The model embodies those characteristics with the ideal that musicians be fully integrated into every aspect of the organization, including operations, development, education, administration and artistic programming. Letcher championed the selfgovernance model, understanding the need to distance the Tulsa Symphony from the structural dysfunction of the Tulsa Philharmonic. He knew that it was what was needed to heal the wounds and lack of confidence experienced within the community following the Philharmonic’s demise. As a visionary, Letcher’s leadership set up Tulsa Symphony to be a cornerstone of the arts community and an irreplaceable financial support for the city. “Tulsa Symphony is an economic driver,” Elder said.“When people come to a concert, a lot of times they will have dinner downtown or have drinks after.” Downtown Tulsa has a vibrancy — in which Tulsa Symphony plays a large part — that attracts business to the Tulsa metropolitan area and invigorates the city’s economic base. “From a business viewpoint, it’s essential to have a vigorous arts scene and a strong orchestra to make a vibrant community,” Elder said.“Tulsa Symphony is part of this as a major contributor to the city’s economic success and exceptional quality of life.”

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OUTLOOK2020

Tickets at (918) 584-3645 or tulsasymphony.org.

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OUTLOOK2020 CASINOS

Gaming plays key role in local economy

The new Osage Casino north of downtown Tulsa is home to 1,500 electronic games. STEPHEN PINGRY/Tulsa World file

Three tribes’ flagship casinos continue to expand to offer more gaming, amenities By Lenzy Krehbiel-Burton For the Tulsa World

With three tribes’ flagship casinos in the immediate Tulsa metropolitan area, slot machines and blackjack continue to play a key role in the region’s economy. Cherokee Nation’s Hard Rock Hotel & Casino Tulsa in Catoosa has about 2,600 electronic games and 454 guest rooms. The property’s most recent expansion, completed in February, added 65,000 square feet to accommodate 450 electronic and table games, a new poker room, a 7,000-square-foot multipurpose center, additional space for VIPs and Track 5, a two-story live music venue with a 1,200-square-foot dance floor. In fiscal year 2018 alone, the Cherokee Nation and its business arm, Cherokee Nation Businesses, had a $2.16 billion economic impact on northeastern Oklahoma, including supporting 3,542 jobs just in Tulsa County. Thirty-seven percent of Cherokee Nation Businesses’ gaming profits are automatically reinvested into tribal programs and services, including college scholarships, housing and health care. Gaming is also fiscally and physically facilitating the tribe’s language preservation efforts. Along with a multimillion-dollar investment to offer classes through Rogers State University Public Television, the former Tahlequah casino is in the process of being converted into a language facility that will house the Cherokee Nation’s immersion school, translation department and adult-level Cherokee Language Master Apprentice Program. “We’re going to quadruple our language programs,” Principal Chief Chuck Hoskin Jr. said at the InterTribal Council of the Five Civilized Tribes’ general session. “We’re already seeing the planning take root in our language departments. It’ll be the Durbin Feeling Language Center, and we’re pretty proud of that. “We’re going to spread this language all over the world.”

A roulette ball spins around a roulette table at the Hard Rock Hotel & Casino Tulsa in Catoosa. IAN MAULE/Tulsa World file

Tulsa-area casinos Hard Rock Hotel & Casino Tulsa 777 W. Cherokee St., Catoosa hardrockcasinotulsa.com

Osage Casino 951 W. 36th St. North osagecasino.com

River Spirit Casino Resort 8330 Riverside Parkway riverspirittulsa.com

A dealer deals a game of blackjack inside the River Spirit Casino Resort in Tulsa. JOHN CLANTON/Tulsa World file

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The rest of the proceeds are put toward gaming fees, job development programs and operating expenses, including paying out $197.7 million in payroll and benefits in fiscal year 2018 alone. That figure was calculated before the tribe raised its minimum wage from $9.50 per hour to $11 in 2019. The gaming footprint on Tulsa’s northwest side is continuing to grow, as well. The largest of Osage Casinos’ seven properties, Osage Casino Tulsa, 951 W. 36th St. North, covers 247,000 square feet. Thanks to a 2018 $160 million renovation project, the casino is home to 1,500 electronic games, 16 table games, 141 hotel rooms, the 2,000-seat Skyline Event Center, meeting space and a full-service microbrewery, Nine Band Brewing Co. Another round of expansion is currently underway, as construction on a second hotel tower started in July. The $28 million project is scheduled to be completed this summer, adding 145 rooms. The largest external revenue source for the Osage Nation, gaming provides about $40 million annually for tribal programs and services, including a health benefit plan for all Osage citizens and Daposka Ahnkondapi, the Osage Nation’s elementary immersion school in Pawhuska. Meanwhile, even with the temporary closure of its flagship property due to the Arkansas River’s recordbreaking spring floods, Muscogee (Creek) Nation’s gaming revenue increased 5.7% in 2019, according to the financial report released by the tribe in late January. The largest of the Muscogee (Creek) Nation’s nine casinos, River Spirit Casino Resort employs about 1,600 people, plus an additional 200 workers at Ruth’s Chris Steak House and Margaritaville. That increase helped make it possible for the tribe to provide financial assistance for 1,732 college students in late 2019, including 39 doctoral candidates. “Education empowers all citizens to pursue a better quality of life,” Principal Chief David Hill said during his State of the Nation address. “We owe it to our children to provide the tools to achieve these goals.”

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OUTLOOK2020 ENERGY

Oil and gas production continue rise

Oil and natural gas production in Oklahoma rose in 2019. TULSA WORLD FILE

State ranks third in the nation in gas production and fourth in crude oil By Corey Jones Tulsa World

Oil and natural gas production in Oklahoma continued its rise in 2019, despite a precipitous dive in the number of drilling operations since late 2018, perhaps foretelling a production plateau or decline. State oil production rose 62% from 2013-2018 and projects at 71% if extended to 2019 based on estimates for that year from the U.S. Energy Information Association. Gas production climbed 48% across those six years and projects to 56% in 2019, again based off EIA estimates. There were about 145 drilling rigs in November 2018 in Oklahoma, steadily falling until the past three months of hovering in the low 50s — a 64% drop. Secretary of Energy and Environment Ken Wagner is encouraged the decline finally leveled off, appearing to signal the bottom has been reached. Wagner said he is unsure whether fossil fuel production in Oklahoma will continue its upward trend in 2020 but said he believes it has a strong future. He said gas is likely to be stable in the near term while oil might dip at some point because of the loss in rigs. Oklahoma ranks third in the U.S. in marketed gas production and fourth in crude oil production. Revenue generated from the increased gross production tax resulted in the second largest such collection in state history in Fiscal Year 2019 at $1.153 billion. “We are cautiously hopeful,” Wagner said. Alternatively, David Le Norman, chair of the Petroleum Alliance of Oklahoma, has been sounding the alarm for months during a “dramatic drop” in natural gas prices. Oil has somewhat recovered

Oklahoma ranks third in the U.S. in marketed gas production and fourth in crude oil production. JOHN CLANTON/Tulsa World file

and is stable in the $50 per barrel range, he said. He described gas as mired in a protracted decline, plummeting in price from a recent peak of $4.09 per million Btu in November 2018 to $2.22 per million Btu in December 2019. Le Norman said so much focus is given to oil that people don’t always realize that it only comprises about 25% to 30% of

Oklahoma’s production. He pointed to SandRidge Energy, which in early February announced plans to cut half its remaining workforce from the 120 employees at the company’s Oklahoma City headquarters. “Unfortunately, I don’t think that’s the end of what we’re going to see here with other companies,” Le Norman said. Wagner and Le Norman

noted that Oklahoma bore the greatest share of a nationwide drop in rigs, indicative of lower gas prices relative to oil. The heavy gas mix coming out of Oklahoma wells can’t compete economically at the moment compared to oil-rich ones in Texas, New Mexico and North Dakota. Wagner said a lack of market reaction to the recent U.S.-Iran conflict and the attack on Saudi Arabia oil in 2018 demonstrates a fossil fuel supply abundance worldwide. “We see that (Oklahoma) production hasn’t leveled off or declined because the new completion methods and technologies has made production so much more efficient,” Wagner said. “You’re not having to drill as often to get the same amount of production, but I think common sense would tell you that if you have this significant decrease in drilling then you’re probably not going to see an increase in production over time. Whether that means it’s a decrease or

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just a lack of an increase I think is still an open question.” The country is producing at historically high levels and EIA’s annual outlook for 2020 projects the U.S. to become a net energy exporter on an annual basis by this year. The EIA outlook also notes that renewables are the fastest-growing source of power generation because of ongoing declines in capital costs for solar and wind that are supported by federal tax credits and higher state-level renewables targets. Wagner said Oklahoma doesn’t receive credit for helping drive down U.S. emissions, reductions fueled by the state’s low energy cost and mix of renewables with gas. He said Oklahoma sends out 28% more power than it consumes and that its mix is cleaner than what those states otherwise would use. Wagner said Oklahoma’s gas exports are “hugely important” to the long-term viability of the state’s hydrocarbon industry, as well as to lower emissions worldwide. The U.S.-Mexico-Canada (USMC) trade deal — President Donald Trump’s replacement for NAFTA — might be a boon for Oklahoma’s gas fortunes in a global market, Le Norman said. He said he hopes the West Texas Permian Basin gas goes south to Mexico, thereby freeing up gas that’s backed up in the U.S. system to the benefit of Oklahoma. He said more pipelines from the Marcellus Shale Play to the East Coast and terminals to transport to western Europe would open up competition with monopolies there. “That’s why I feel good about the future,” Le Norman said, suggesting the industry’s outlook will be better in the second half of 2021. “We’ve just got to survive this interim.” Corey Jones 918-581-8359 corey.jones@tulsaworld.com Twitter: @JonesingToWrite

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OUTLOOK2020

Natural gas powers development in Tulsa

hen Steven Watts, CEO of Rose Rock Development Partners, took on renovating two 100-year-old buildings in downtown Tulsa into multi-family residential units, he knew it would take some finesse and creativity. The challenge was to preserve the historical architecture while adding modern amenities that young professionals desire when looking to live in the heart of downtown Tulsa.

Oklahoma Natural Gas, a division of ONE Gas, has delivered natural gas across the state since 1906. ONE Gas, headquartered in Tulsa, reliably serves more than 2 million customers in Oklahoma, Kansas and Texas. As the largest natural gas distributor in Oklahoma, Oklahoma Natural Gas serves residential, commercial, industrial and transportation customers who are attracted to the affordability, reliability and efficiency of natural gas.

Watts used federal and state historic renovation tax credits to defer renovation costs on the 10-story Reunion Building, 9 E. 4th Street, built in 1917, and the 13-story Adams Building, 403 S. Cheyenne Ave., built in 1928. Both projects include space for retail and residential units.

Incorporating natural gas equipment into a home or commercial development can quickly translate into significant cost savings.

Additional challenges arose with the buildings’ outdated electrical systems. So, Watts began evaluating the best energy options to power appliances without an expensive electrical upgrade. Each residential unit features a furnace, water heater and cooking range powered by natural gas. “We started talking with Oklahoma Natural Gas and learned about their multi-family incentive program which offers developers substantial reimbursements to help offset the cost of natural gas installation, piping and venting to units,”Watts said.“We were able to use their incentive program for both developments to keep our installation costs low, which ultimately benefits our tenants.”

The Energy Solutions Center estimates households that use natural gas for heating, cooking and clothes drying can potentially save an average of $544 per year compared to homes using electricity for those appliances. “We’re in the solutions business and no two projects are the same,” said Emily Reh, manager of Market Development for ONE Gas.“The Adams Building presented our team with an opportunity to bring creative energy solutions to the developer while supporting economic development in our state.” Creativity was key when the Oklahoma Natural Gas team prepared to install the 64 natural gas meters needed to power the Adams apartment units. The building, recognizable for its intricate terra cotta façade, had only one option for meter placement: a narrow alleyway.

“It wasn’t an easy task to modernize a 100-year-old building,”Watts said.“The Oklahoma Natural Gas engineering team identified a really creative way to install our piping and venting in a compact environment.” For convenience and even greater reliability, Watts also chose natural gas backup generators for both developments. “With a natural gas generator, there’s no need to worry about refilling fuel, like with a diesel generator,” Watts said.“It gives you peace of mind knowing there’s already a fuel source to support our residents during an emergency.” Watts noted that having one main

contact made working with Oklahoma Natural Gas efficient and rewarding. “It was nice having one person to call if we had a question or issue. In my experience, it’s unique to work with a utility with such a customer-focused approach,” said Watts. Customer service paired with incentive programs and energy-efficiency rebates are just a few of the ways Oklahoma Natural Gas aims to make it easy to do business with the company. “Our vision is to provide exceptional value to our customers,” said Reh.“It’s part of our ongoing commitment to make our communities better places to live and provide natural gas for a better tomorrow.”

ONE Gas 15 E. Fifth St., Tulsa, OK 74103 • 918-947-7000 • onegas.com

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OUTLOOK2020

Fresh take on Coldwell Banker Select logo reflects home, company, values Tulsa affiliate embraces company rebranding for first time in 42 years

oldwell Banker Select in Tulsa is enthusiastically going all in on the company’s first rebranding in 42

it out over months and announced in September that all affiliates could begin using the new branding in January.

years.

“The new logo better reflects who we are as a company and it will launch us into the new decade as the innovative, creative organization we are,”said Bryan Sheppard, president and chief executive officer for Coldwell Banker Select in Tulsa. The star in the new logo, called the “CB North Star,” is symbolic in representing that Coldwell Banker Select Realtors are the stars of the real estate world. The company provides agents the training, technology, coaching and marketing needed to help their clients successfully navigate what can be a complicated process of buying and selling a home. The star in the new branding also represents the proverbial North Star. “In the same way travelers have utilized the North Star for thousands of years, Coldwell Banker Select has been guiding people home for the last 45 years in Oklahoma,” Sheppard said.“The North Star was the original GPS.” The Coldwell Banker home office announced in the spring they would be building a new logo.They tested

Coldwell Banker’s home office is giving all affiliates two years to implement the new branding in yard signs, marketing materials, office signage and more. But Coldwell Banker Select in Tulsa didn’t want to wait. “We decided we wanted to embrace it. We love the new look. We love what it stands for and we wanted to just go all in and make this an opportunity to tell our story,” he said. Coldwell Banker Select has been a strong and respected real estate brand in Tulsa for more than 45 years. “We don’t just understand homes, but we understand what home is all about,” Sheppard said.“It’s not just the four walls and the roof over your head but it’s about the community as well. Giving back is one of our core defining values.” Coldwell Banker Select spends a lot of time on finding ways to give back to the community. Agents are encouraged to use their individual voices to support causes close to their hearts. And agents and the company use social media to uplift one another. “It goes back to us being all-stars

in caring for each other and our community,” he said. Coldwell Banker Select generated about $1.5 billion in sales in Oklahoma in 2019. The Tulsa-based real estate company has around 650 agents in the Tulsa area and 150 in Oklahoma City area, with offices in Tahlequah, Pryor, Chouteau, Claremore and Owasso. In the past decade, Coldwell Banker Select has helped nearly 75,000 families buy or sell a home in Tulsa and Oklahoma City. “We highly value having educated agents who know the market and the ever-changing landscape,” Sheppard said.“Rules change every year and

contracts change every year.To have our agents know what’s going on means everything.” These shared values and a strong adherence to ethics are why the Coldwell Banker Select chose to partner with the national company, which was founded in San Francisco more than 114 years ago. “Coldwell Banker actually created the Code of Ethics that the National Association of Realtors uses to this day,” Sheppard said.“We’ve always been innovators. We’ve always been leaders in ethics. And that’s still who we are.” For more information about Coldwell Banker’s rebrand, visit cbselect.com.

Coldwell Banker Select

16 offices and 500+ agents throughout Oklahoma 918-496-3333 • cbselect.com

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OUTLOOK2020 MidAmerica Industrial Park celebrating 60 years of success, serving 80 companies, 4,500+ employees

t has been called an “industrial utopia.” It is the third-largest industrial park in the United States and in the top 10 globally. It is located in the heart of the largest concentration of corporate wealth in the United States serving Northeastern Oklahoma and Northwestern Arkansas. It is the MidAmerica Industrial Park celebrating 60 years of success, serving 80 companies and over 4,500 employees. Home to Google’s secondlargest data center in the world and the third-largest agri-nutrition plant operated by Dupont. How? MidAmerica is highly sustainable. Located within the boundaries of the Cherokee Nation (the nation’s largest tribe), off-the-chart ad valorem tax base that supports K-12 education and the benefits of doing business with MidAmerica as a Public Trust creates the perfect storm of resources, pro-business environment and life amenities. An industrial Park with benefits like easy access to water, power, training, workforce and minimal zoning and permitting requirements. History proves that MidAmerica is not only here to stay, but here to grow. Looking forward, MidAmerica is focused on building infrastructure and amenities that will support corporate growth and expansion. MidAmerica’s $2020 is the icing on the cake with

a $40 million incentive designed to attract new companies. MidAmerica’s Armin Road and Igloo Valley development have 1,000 acres that can be customized to fit virtually any corporate need. These developments have all utilities, roads, and environmental complete making them shovel-ready, buy today build tomorrow. MidAmerica’s water and wastewater treatment facilities services to industrial customers with plenty of capacity to accommodate future growth. Grand River Dam Authority is adjacent to the park providing 1,900 megawatts of reliable electricity via hydro, wind, coal and natural gas at highly competitive rates. With land, water and power readily available, the Park’s “sense of place” is now more important than ever as a key to success. Demographics of all ages are drawn to the amenities of a big city but want the affordability, lifestyle and convenience of a community. MidAmerica is making this a reality with their newest initiative, The District. The District, a 162-acre development that incorporates retail, residential, parks and trails near the Park, is set to

open this year. The new development is a fusion of walkable retail areas and residential living combined with a natural environment that offers wideopen spaces and outdoor activity. It includes 32,000 square feet of retail space, a 100-unit multi-story living complex, 100 residential homes, 10 acres of parks and outdoor spaces, with connectivity via walking and biking trail systems. Finally, to prepare for growth, MidAmerica partners on multiple fronts with area technical schools and universities. Recently the Park invested over $3 million in career centers and state-of-the-art STEM labs in18 area school districts. Additionally, MidAmerica partners with Northeast

Technology Center and Rogers State University to create a new “Center of Excellence” combining technology, training and opportunity. Implementing proven best practices in workforce development, these are just a few examples of MAIPs focus on training. With these priorities in mind — resources, quality of life, workforce development — David Stewart, chief administrative officer believes that MAIP is on a trajectory to be one of the most innovative and pro-business environments in the nation for corporate growth.“Our resources, quality of life, and workforce development initiatives will fuel MidAmerica’s growth for another 60 years.”

MidAmerica Industrial Park

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OUTLOOK2020 Bit By Bit: Tulsa company helps lighten your load

f you’ve ever looked around your home office and felt like you were drowning in paper, you’re not alone.

Nearly every aspect of life these days involves documentation, and most of those documents contain information that isn’t intended for public consumption. Whether you’re part of a large corporation, running a small business, or simply managing a household, one concern is a constant: what to do with all that paper. Randy Gwartney and his company, Shredders Inc., can make it disappear. Gwartney has owned the company — started by George Elliott in 1973, as Shredders by George — since 1978. In May 1999, a move from a 2,500-square-foot warehouse in east Tulsa to a 20,000-square-foot office and warehouse in west Tulsa brought with it a new name, Shredders Inc., and a new business component, a paper recycling company called Tulsa Fiber Sales LLC. With Y2K looming, and HIPAA – the Health Information Portability and Accountability Act – in its infancy, demand for confidential shredding was soaring, Gwartney said. Not only was identity theft on the rise, but the Federal Trade Commission was passing a bevy of new rules and regulations to protect consumers’ privacy and reduce the risk of fraud. Shredders offers a variety of services.

With offsite shredding, a driver who has passed a background check picks up confidential papers and takes them in an enclosed, locked truck to Shredders’ west Tulsa facility, Gwartney said. The documents are unloaded and weighed, then placed in line to be shredded and formed into bales for recycling. Shredders sends a certification of destruction with every invoice after jobs are completed. Onsite shredding has become a very popular service, Gwartney said, adding that he bought his first mobile shredding truck in 2004. With onsite shredding, a driver in a mobile shredding truck shreds confidential papers in the customer’s parking lot while the customer witnesses the shredding. For smaller jobs, the company’s walkin service might be most appropriate. Business or personal confidential records can be taken to Shredders’ secure warehouse at 635 W. 41st St. between 8 a.m. and 5 p.m. Monday through Friday.

paper mills for recycling, he said. Most mills with which Shredders works are “deinking mills,” where the ink is extracted from the paper before it is combined with other fibers to make tissue paper, paper towels, napkins and toilet paper, Gwartney said. Some mills may make insulation for housing and roofing materials.

Gwartney said an employee will unload the documents and escort the customer through the warehouse to watch the documents as they are shredded. Walk-in service costs 10 cents per pound, with a $15 minimum.

Not all paper products contain confidential information, of course, and Gwartney said Shredders provides a dropoff site for customers who want simply to recycle paper and cardboard. The company provides carts and will even buy large quantities of nonconfidential papers in some cases.

All shredded materials are formed into bales weighing between 1,200 and 1,500 pounds that are then sold to

And it’s not just about paper, he said. The company can also shred hard drives, computers, cassettes, DVDs,

VHS tapes and CDs, as well as pop bottle caps, uniforms with patches or emblems and even fishing reels. With tax season upon us, Shredders has teamed up with the Better Business Bureau to offer free shred days to the public. Consumers can take two boxes or bags of confidential papers to be shredded for free. Additional amounts will be shredded at a rate of 10 cents per pound. The first free shredding event of 2020 is slated from 1 to 3 p.m. on Saturday, April 18, at Shredders’ facility at 635 W. 41st St. Another free shredding event is planned for the same hours and location on Saturday, Oct. 17. For more information, visit shreddersinc.net.

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O20 Sunday, February 23, 2020

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OUTLOOK2020 Melton Truck Lines looks forward to new growth spurt Only drawback is there aren’t enough drivers to fill the need

elton Truck Lines is starting 2020 off with optimism that the company will continue to grow and the coming year will see a much improved freight environment. The Tulsa-based flatbed carrier is closing in on the goal with some 1,400 trucks delivering steel, building materials and commercial HVAC equipment for Melton across the continental U.S.

“One area of the economy that really started lagging as the year progressed in 2019 was manufacturing,” said Robert Ragan, executive vice president and chief financial officer of Melton Truck Lines.“A lot of that was related to strained trade relations whether it’s China, or in our case, Mexico.” The largest part of Melton’s business is cross-border activity with Mexico.The company moves more flatbed loads in and out of Mexico than any other carrier in the U.S. Any time there is uncertainty in trade relations, it is not good for business and it makes people less likely to spend capital and invest, he said. However, the newly signed trade agreement with Mexico has lent some confidence among investors and should help Melton in regards to their Mexico operations. In general, Ragan said he also has seen an uptick in manufacturing after lagging throughout last year. He believes this uptick will provide good news for the company’s growth.

“We’ve always grown organically. We don’t try to overreact and add a bunch of trucks when freight is really strong or pull them off the road when freight slows. We are just slow and steady and we understand that we go through cycles,” he said. Ragan said he expects Melton to grow about 5 ½ percent this year to 1,500 trucks on the road. “One of our biggest issues will be to find drivers to fill those trucks,” he said.“This country has a shortage of skilled labor and truck drivers are certainly included in that.The pool of qualified safe drivers continues to dwindle.” Robert Ragan, executive vice president and chief financial officer of Melton Truck Lines, expects the company to grow to 1,500 trucks on the road this year.

It is even more difficult when the economy is good to find drivers because they have other choices and often select jobs that keep them home rather than on the road.

those on our trucks because we don’t want to see people get hurt.”

one focused on the driver have saved the company millions of dollars.

Melton offsets that by paying drivers well.The yearly salary for a Melton driver is approaching $70,000.

Despite the company’s excellent safety record, liability insurance premiums keep rising at a tremendous pace.

“It will show what happened and you know the truth.There’s no better defense than the camera,” Ragan said.

Another headwind Melton has to navigate is the skyrocketing cost of liability insurance.

He attributes the higher costs to “outrageous jury verdicts” that have been awarded in some accidents.Those costs are shared by the entire industry regardless of a carrier’s safety record.

Despite challenges, he expects 2020 to improve as it progresses.

Ragan said Melton has a strong safety record and invests millions of dollars each year in safety technology, whether it’s for onboard cameras, anti-rollover stability devices and collision mitigation systems. “They’re not cheap but they’re worth it.They prevent accidents,” he said.“We feel a moral obligation to society to put

“So the litigious nature of our industry is impacting everyone’s premiums regardless of how safe and responsible you are, which is really frustrating,” Ragan said. He noted that the cameras facing forward from the windshield as well as

“I think 2020 will continue to trend upward even though we ended 2019 a little soft,” Ragan said. Melton Truck Lines serves the United States, Canada and Mexico. Its terminals are located in Tulsa; Laredo, Texas; Birmingham, Alabama; Dallas and El Paso, Texas. For more information about Melton Truck Lines, visit meltontruck.com.

Melton Truck Lines 808 N. 161st East Ave., Tulsa, OK 74116 918-234-8000 • meltontruck.com

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Sunday, February 23, 2020 O21

OUTLOOK2020 Cannabis

State sees evolution of medical marijuana Taxes coming in, jobs being made, while prices for marijuana decrease By Anna Codutti Tulsa World

As Oklahoma led the way in lawsuits targeting the opioid crisis, patients in the state found an alternative to the prescription pills being pumped by big pharma into all corners of the country. Medical marijuana was legalized through a state question that received 57% support from voters in 2018. Patients with a physician’s recommendation received the first licenses to buy, consume and even cultivate their own cannabis in fall 2018, and since then, about 250,000 patients have been licensed by the Oklahoma Medical Marijuana Authority. More than 9,000 businesses have been licensed, including more than 2,000 dispensaries; however, that number exceeds the amount of actual retail medical marijuana business storefronts. Per-gram prices were as high as $20-$35 during the first days cannabis was on dispensary shelves, and the market took months to stabilize, with many retail shops now offering grams for $10-$18. “Prices have started going down just within the past three or four months,” said Danna Malone, owner of Ye Olde Apothecary Shoppe dispensary in south Tulsa. Malone said the fall harvest of outdoor grows helped increase supply, as well as more growers getting into the business and creating competition, which affects prices. Even though her store has been targeted three times by thieves, Malone says she has

Strains of medical marijuana are displayed at a Tulsa dispensary. IAN MAULE/Tulsa World file

Tax revenue Excise tax 2018: $70,769 2019: $24,156,269 January 2020: $3,271,492 State, local sales taxes 2018: $171,116 2019: $30,594,902 January 2020: $4,348,719

taken money out of her own pocket to help patients who still have problems with pricing. “We also have a compassionate care fund available for cancer patients looking for (highTHC potency concentrate) at cost,” she said. “If somebody has a need, we prefer they come talk to us instead of breaking into our dispensary.” Malone’s business outgrew its first location within two months and, after moving to

a larger site farther south, the dispensary celebrated nearly $1 million in sales last year. Retail sales across the state surpassed $345 million in 2019, and $62.6 million in taxes has been collected since sales started in 2018, according to the Oklahoma Tax Commission. When calculating tax revenue for medical marijuana in Oklahoma, it’s important to note that state and local sales taxes are collected, in addition to the 7% excise tax. In Tulsa County, revenue from the excise tax and state and local sales tax totaled nearly $12 million since 2018. The medical marijuana industry supports 9,412 jobs across Oklahoma, according to a 2020 report from the cannabis-information site Leafly, putting the state at No. 9 for cannabis-relat-

ed employment. New legislation in the session after State Question 788 was passed changed how businesses comply with the state law. Dispensaries are now mandated to get a certificate of compliance from a city or county, though not all local governments have zoning regulations for medical marijuana. Some municipalities have enacted local legislation that puts additional restrictions on medical marijuana businesses and patients, in some cases drawing lawsuits. Among other law changes: Doctors are prohibited from seeing patients inside retail dispensaries, but video consultations are available from services including PrestoDoctor or NuggMD. Waste disposal and lab testing licenses were established by OMMA in the past

year. Oklahoma Compliance Testing Lab in Tulsa started operations in summer 2019 with three employees but now employs 12 staff members. Owner Wendy Stacy said it was more important to hire local talent in the science field than to look for employees experienced in cannabis testing. Stacy said potency, terpene content and possible contaminants are among tests available for licensed patients, as well as growers and processors, and it’s important because cannabis is being used for medical purposes. “Nowhere does it say a higher THC number makes a better medicine,” Stacy said. “Terpenes have a huge effect medicinally. It’s not the psychotropic effect so much as the smell (of the cannabis) that can make a difference with what you’re treating.” Marijuana businesses also have to register with the Oklahoma Bureau of Narcotics and Dangerous Drugs. The bureau has licensed 4,757 growers, processors and dispensaries, but 770 businesses opted not to renew their license for a second year, said spokesman Mark Woodward. “There’s a lot of discrimination going on, even though we are a medical state. It’s still kind of taboo with some people, and I think that’s a shame,” Stacy said. “Israel is the world leader in cannabis research, but the U.S. should be more active. It’s not a miracle drug that cures everything, but it has a huge impact on how we treat patients who are sick.” Anna Codutti 918-581-8481 anna.codutti @tulsaworld.com Twitter: @annacodutti

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OUTLOOK2020

Tulsa’s top employers

Saint Francis Health System’s vast campus in Tulsa helps support the largest employee base in the area. Tulsa World file

Top 10 Tulsa-area employers account for nearly 10% of jobs From Staff Reports

Employing an estimated 2,250 people in the Tulsa area in 2019, QuikTrip moved up from the 23rd largest Tulsa employer in 2010 to eighth in 2019. The top 10 employers in the Tulsa Metropolitan Statistical Area in 2019, as listed in the Tulsa County Comprehensive Annual Report, account for nearly 10% of the MSA’s employment. Three health centers, led by Saint Francis Health System at No. 1, are in the top 10, along with two educational systems — Tulsa Public Schools and Union Public Schools. To arrive at its list, Tulsa County used broad estimates based on data from the Tulsa Regional Chamber. American Airlines, which announced in 2019 the addition of nearly 600 jobs at its maintenance base in Tulsa, tied for fourth in the rankings. Tied for eighth was Tulsabased QuikTrip, which last year completed a $39.5 million distribution center. Tulsa Regional Chamber started an economic development program called Tulsa’s Future in the mid2000s. Now in its third phase (2016-20) and covering a 16-county region, the program has overseen the creation of 69,296 jobs and almost $4 billion in capital investment. (It didn’t use capital investment as a metric until Phase II.) Keeping that commercial engine churning takes a lot of customized handholding. That involves getting plenty of face time at

Walmart is one of the largest employers in the Tulsa metropolitan area. MIKE SIMONS/Tulsa World file

places such as out-of-country exhibitions and out-ofstate main offices. “We try to be as aggressive as we can to A, stay in front of these companies, and to B, if they are not headquartered here, to see them where they may be,” said Mike Neal, president and CEO of the Tulsa Regional Chamber. Closer to home, the chamber works with the city of Tulsa to create regular engagement with local business leaders and state, federal and tribal leaders to assist with their needs. “I want to emphasize the collaboration that happens with our local communities,” said Bill Murphy, senior vice president of economic development for the chamber. “We are a regional chamber. We are a regional economic development program. But we rely on

Tulsa MSA top employers* Saint Francis Health System Wal-Mart/Sam’s Club Tulsa Public Schools Hillcrest Health System American Airlines maintenance base Ascension St. John City of Tulsa Tulsa County QuikTrip Union Public Schools

we’re here for you. If we have problems, we hope you’re here for us.” 2019 2019 2010 ranking estimate ranking Many local firms have shown they’re here for the 1 8,250 3 long haul, a fact reflected 2 (tie) 6,750 1 in the numbers. 2 (tie) 6,750 2 4 (tie) 4 (tie) 4 (tie) 7 8 (tie) 8 (tie) 8 (tie)

5,250 5,250 5,250 3,750 2,250 2,250 2,250

6 4 5 7 13 23 14

* broad estimates based on data from Tulsa Regional Chamber Sources: Tulsa County Comprehensive Annual Financial Report, Tulsa Regional Chamber

the relationships we have with our local development professionals.” When the Tulsa Regional Chamber courts economic development, it’s less about pitching woo and more about exchanging vows. So to speak.

Tulsa World

“What we tell these companies when we recruit them is that we’re not looking to date you; we’re looking to marry you,” Neal said. “When we land a project, we say this is a marriage. We’ll be together through thick and thin. If you have problems,

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Spending on economic development The Tulsa Regional Chamber spends about $4 million a year on economic development, with 80% of those funds coming from the private sector and the balance from public sector partners, Neal said. While new businesses often generate more headlines, 80% to 85% of jobs come from existing companies through retention and expansion, he said. “It is far more affordable to take care of the businesses that you have,” Neal said. With its anchor hospital

on a hill in south Tulsa, 60-year-old Saint Francis has stayed atop the heap by remaining relevant. Bettering the 2019 estimates, the Catholic nonprofit, as of January, had 10,409 employees and an annual payroll of $731 million, said Jake Henry Jr., president and CEO of Saint Francis Health System since 2002. Saint Francis opened a new eight-story patient tower and emergency center in Tulsa in 2014 and paid off all debt in 2015. “In this very changing landscape of health care in America, it’s important to be fiscally viable,” Henry said. Warren Clinic, the physician arm of Saint Francis, has grown from 329 primary care doctors and specialists to 412 in the past three years, he said. “That alone is a significant boost to the economy,” Henry said. “With every physician we recruit, it’s not uncommon for us to have an advanced practitioner that we assign to aid that position, as well as office personnel. We’re in the process of building new offices for those folks.” Saint Francis also is the only major hospital with ownership based in Tulsa. “Because we’re locally owned and locally governed and our board of directors and board of trustees are all local folk, it lets us make decisions quickly, then move quickly to implement those decisions,” Henry said. “Very much what we do here is ground roots up. By all of us living in our communities, we’re able to know what those needs are.”

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OUTLOOK2020 BANKING

More banks adapting to fit needs of consumers Banks are having to rebrand and evolve to cater to a younger generation From Staff Reports

As the decades have passed, so, too, have the ways of traditional banking. Trips to the neighborhood Savings and Loan have been largely replaced by taps on an iPhone or computer keyboard. The folks at Tulsa-based Enacomm are well-versed in the evolution of the banking sector. Enacomm is a FinTech provider of intelligent interactions and customer authentication technologies for banks, credit unions and credit card and payments companies. “Tulsa is a great demographic,” said Shawn Hughes, president and chief operating officer at Enacomm. “You have the presence of the most modern banking, like a Wells Fargo or a Bank of America, and you very well could have a community bank on the same block. “When you look across America, community banks and

credit unions have taken on the lion’s share in the United States in the form of the families and businesses. It’s not the mega banks. But these community banks and credit unions historically have not been able to take on the expense of the latest and greatest tech. The landscape is changing big-time.” Customers younger than 40 prefer bigger banks, according to a 2019 retail banking satisfaction study by J.D. Power and Associates, a data analytics and consumer intelligence company. At the time of J.D. Power’s 2009 study, the 10 largest U.S. retail banks managed 39% of industry deposits and 26% of branch bank offices. Currently, they manage 48% of deposits and 31% of branches. Also in 2019, 53% of retail banking customers used mobile banking. Challenger banks, such as Chime, are carving their niche in the industry, as well. Offering lower overhead costs and no physical branches, these online and mobile-only banks have perks that appeal to the younger crowd. FICO, a data analytics company fo-

U.S. consumer banking at a glance Median savings account balance: $7,000 Median checking account balance: $3,400 Percentage of customers who regularly use online and mobile banking: 71% online, 43% mobile Times an average U.S. customer uses debit card: 22.8 times a month Bank operating most branches in the United States: Wells Fargo, 6,087 Percentage of Americans without a bank account: 7% Source: Valuepenguin.com

cused on credit scoring services, found in 2016 that millennials are two to three times more likely to switch banks than other generations. The company also found that 45% of millennials cited high fees as their reason for changing. “These new challenger banks are popping up, and they are signing up millions of people,” said Mike Boukadakis, CEO of Enacomm. “Where are those people coming from? They are coming from community banks and credit unions.” The consumers also are changing. Financial experts predict that baby boomers, those born between about 1944 and 1964, are likely to transfer tens of trillions in wealth to younger generations within the next 25

years. “It’s a fundamental shift on the money assets,” Boukadakis said. To draw more people into physical branches, some banks are enhancing the experience. Vast Bank in Tulsa is one such example. Formerly Valley National Bank, Vast Bank changed its name in 2019 in a rebranding effort to emphasize evolving customer expectations. It followed that up with the construction of a new 100,000-square-foot, mixed-use headquarters and bank branch downtown at 110 N. Elgin Ave. Much more than a place to deposit and borrow money, the structure will feature an artists’ space, several restaurants and a coffee and beer establish-

ment. “You are going to see more of the community banks offer that type of environment,” Boukadakis said. Sector transformations notwithstanding, plenty of room for growth remains for all kinds of financial institutions, he said. “With technologists like Enacomm affording community banks and credit unions the opportunity to have product parity, they are going to be able to compete with the larger box banking companies like Chase and Bank of America,” Boukadakis said. “They are going to be able to compete with this new challenger bank. Will they be able to keep their deposits? Yes. Will they be able to add new customers because they have new technology? Yes. “I believe the community bankers as a whole realize the issues and problems they have, and with technology companies adopting ways to be competitive, they will stay alive and they will flourish. They have to morph. If you’re not growing and you’re not changing, you’re dying.”

HOUSING

‘Exciting year’ expected for housing starts Area home construction in 2019 jumped 17.6% over the previous year From Staff Reports

A perfect cocktail of factors helped the Tulsa area experience a banner year for housing. “We’d been seeing positive numbers all year long,” said Mike Fournier, president of the Home Builders Association of Greater Tulsa. “We were kind of expecting it to be over 10% from the previous year.” Tulsa-area home construction in 2019 jumped 17.6% over the previous year. The number of housing starts (3,080) also were the most since 4,303 were recorded in 2007, according to data from Tulsa-based New Orders Weekly. “You have consumer confidence at a 40-year high and you have nationwide unemployment at a 57-year low,” said Fournier, owner of The Sonrise Cos. “You have those items working in place with the low interest rates. There’s just a huge resurgence of new types of building. Looking at 2020, it looks like it’s going to be another exciting year.” Broken Arrow and the original midtown Tulsa area are going through a “massive resurgence with infills,” he said. Broken Arrow led in housing starts last year with 589, followed by Tulsa (564), according to New Orders Weekly. Neighborhoods such as Stone Canyon east of Owasso are “blowing the socks off” building numbers, Fournier said. “People are seeing new styles and price ranges that are affordable for any income level,” he said. “There are a large selection of locations and types and prices of homes to choose from.” He added that many Tulsa remodeling companies had a record year in 2019. A couple of national kickstarters have kept home building at a brisk pace. Thanks to the recent passage of a new tax extenders bill, the energy efficient home credit, which provides eligible

Workers construct a house in south Tulsa.

Tulsa-area housing starts Totals

2019: 3,080 2018: 2,618

By city (county) in 2019

Broken Arrow: 589 Tulsa: 564 Unincorporated Wagoner County: 423 Unincorporated Rogers County: 258 Bixby: 232

contractors with a $2,000 tax credit for each energy efficient dwelling unit, has been retroactively extended for 2018, 2019 and through the end of 2020. Also, in September 2019, the treasury and the Federal Housing Finance Agency (FHFA), acting as conservator to na-

TOM GILBERT/Tulsa World file

tional mortgage financiers Fannie Mae and Freddie Mac, announced amendmentsto the respective Senior Preferred Stock Certificates that will permit Fannie Mae and Freddie Mac to retain earnings beyond the $3 billion capital reserves previously allowed through the letter agreements of 2017. Fannie Mae and Freddie Mac now are permitted to maintain capital reserves of $25 billion and $20 billion, respectively. “Fannie Mae and Freddie Mac coming back from receivership and being able to have accumulated assets. ... That’s going to open up a lot more opportunities for lenders using them as a source for financing for homeowners,” Fournier said. “Every sign is just so exciting for the housing industry right now.”

There still is room for improvement, however. Fifteen percent of households in and surrounding downtown Tulsa are extremely cost-burdened, meaning more than 50% of the payer’s income goes toward housing. That information was contained in the draft of a housing market demand study and strategy presented in January to the Tulsa Development Authority. The city commissioned a housing study in 2010, and since that time, $1.4 billion in downtown building permits have been filed, the study found. Over the next decade, it is estimated that 60% of new jobs in the region will pay less than $35,000, highlighting the need for affordable rents ($850 a month or less). To address issues such as

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those in the single-home and multifamily housing markets, more workers are needed, Fournier said. Build My Future is a program designed to inspire young people to pursue careers in the skilled trades. “When you realize that the national average age of builders is 58, we are working so diligently to get more skilled trades for kids that are in high school, getting them into the vo-tech schools,” he said. “This is something that takes decades to do. “It’s going to be our No. 1 goal to be able to sustain and even improve on these numbers. When you have a limited pool of skilled workers available, there is a maximum that you can do until you get a large pool of skilled trades to work from.”

O24 Sunday, February 23, 2020

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Forbes names Saint Francis Health System one of America’s Best-in-State employers. In a nationwide market-research study conducted by Forbes, Saint Francis Health System was named one of Oklahoma’s best employers. We are the only Tulsa-based private employer to receive this honor. Being named a best-in-state employer starts by employing those who are the best at what they do. Delivering the best care starts with the best people, and we firmly believe that we have the best healthcare team in the state. We are grateful to every employee for their efforts in providing award-winning care, and for supporting the mission of Saint Francis Health System: To extend the presence and healing ministry of Christ in all we do.

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