Brewing growth
Panacea offers kombucha and vegan menu Page 19
October 2 - 15, 2020 Vol. 21, No. 19
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WEB EXCLUSIVE Flying higher
ILM’s numbers still down but improving wilmingtonbiz.com
Hospital sale
NHRMC vote coming up Page 4
Supporting business
DBA helps boost downtown Page 11
PHOTO BY MICHAEL CLINE SPENCER
Index
Festive filming: Crews film the Hallmark movie USS Christmas in downtown Wilmington in September.
Health Care ........................................4-5
REELING THEM IN
The List .................................................. 6 Banking & Finance ................................ 7 Economic Development.......................8-9 In Profile...............................................11 Real Estate .................................... 14-15 Business of Life.............................. 22-23
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CAMERAS ROLLING AS MOVIE, TV PRODUCTIONS PICK THE PORT CITY
BY JENNY CALLISON t was Christmas in September in Wilmington this year, as a production crew dusted several locations with “snow” for the proper seasonal backdrop to a Hallmark movie called USS Christmas. That Christmas-in-September theme played out on a broader scale as well. In addition to the Hallmark movie, down the chimney came announcements from film officials that one feature film and one streaming TV series were setting up on the EUE/Screen Gems lot in preparation for production this fall. Feature film Scream 5, referred to as “Parkside” by its studio, has been setting up at EUE/Screen Gems and has been approved for a state film and entertainment grant rebate of up to $7 million, according to a Sept. 15 announcement from Gov. Roy Cooper. His announcement also stated
I
Wilmington will see production of the second season of Hightown, a STARZ series from Lionsgate Television and Jerry Bruckheimer Television. That project, Cooper noted, has been approved for a grant rebate of up to $12 million. Officials are optimistic that more projects will follow – possibly before the end of this year. “We expect to see a steady stream of work here and fully expect to have another production arrive before the end of the year, with others lining up for next year,” said Johnny Griffin, director of the Wilmington Regional Film Commission. Noting that 2019 was a “great year for us” and that 2020 started out strong until COVID-19 concerns shut down film production nationwide, Griffin said that all the elements that make Wilmington an attractive shooting destination are
See REELING, page 10
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| FROM WILMINGTONBIZ.COM | This is a sampling of stories from the Business Journal’s Daily Update. Subscribe at wilmingtonbiz.com.
At River Place, first tenant opens doors (Sept. 22) Axis Fitness opened recently at River Place in downtown Wilmington, the 13-story mixed-use project’s first commercial tenant to open its doors. The gym’s 24-hour access key fob service is expected to be up and running by Oct. 5, said owner Mike Barnhart. The first of the year could see a grand opening for the gym. Other commercial tenants are coming to River Place. Pizza restaurant Mellow Mushroom is expected to open in October. DGX, a highend urban market concept from Dollar General, and Bank of America are set to open this fall. The opening date of another tenant, Nutrition Spot, has not yet been announced. River Place holds 92 condominiums and 79 apartments; 31,400 square feet of retail and dining.
Rental owners await city's next step (Sept. 18)
Castle St. redevelopment takes step forward (Sept. 16)
Vacation rental owners are waiting to see what city of Wilmington officials do next after a judge issued a stay on a ruling repealing the city's short-term rental code. An N.C. Superior Court Judge earlier had perviously deemed Wilmington’s vacation rental code illegal, saying it violates a state law prohibiting municipalities from requiring rental permits. Wilmington short-term rental owners Peg and David Schroeder filed the lawsuit in October last year challenging the code, including its 2% overall cap on vacation-rental properties and requirement of a 400foot separation between vacation rentals. The Schroeders plan to continue the fight if necessary. Peg Schroeder said, “We are hopeful that the city will use this time efficiently to restore citizens’ rights. If not, we will not give up.” City officials did not say whether an appeal will be filed but the Wilmington City Council is expected to discuss it in a closed session Oct. 5.
A project to redevelop the old Wave Transit property into affordable housing and commercial space on Castle Street is “ready to go” once state and city agreements are in hand, the developer told city officials Sept. 15. The Wilmington City Council unanimously approved a resolution allowing city staff to proceed with finalizing an agreement with Hipp Architecture & Development PC for the transfer of the city-owned site at 1110 Castle St. But before work can begin, the developer also needs a brownfield agreement with the state because of some environmental issues associated with the former bus maintenance site. “We spent the last several months trying to finalize the proposal and I believe what you have before you is a strong proposal …We’re excited to have this opportunity. We’re ready to go,” said Clark Hipp of Hipp Architecture & Development to the City Council to the council.
TOP-READ STORIES ONLINE Here are the most popular stories for September 21 - 27 from the Business Journal’s website. 1. Project begins to expand pharmaceutical firm, create jobs 2. In downtown Wilmington, first commercial tenant opens at River Place 3. At Mayfaire, Burney's Sweets & More opening soon 4. Lumber prices through the roof 5. Making room for outdoor dining 6. Malama Cafe offers healthy bites, Counter Culture coffee 7. Save Our Hospital files suit on NHRMC deal 8. Point Break offers delivery of healthy meals 9. Cape Fear Sports Medicine joining EmergeOrtho 10. Rumcow owners launch new restaurant on Grace Street To read more, go to wilmingtonbiz.com
Another Successful Transaction Murchison, Taylor & Gibson, PLLC is pleased to have served as M&A counsel to Carolina Marine Terminal Inc. in connection with the sale to Transportation Infrastructure Partners, a joint venture between Ridgewood Infrastructure LLC and Savage Companies. G. Stephen Diab, Member/Partner W. Berry Trice, Member / Partner Mark A. Allebach, Member/ Partner Faison G. Sutton, Member/Partner
1979 Eastwood Road, Suite 101, Wilmington, NC 28403 | (910) 763-2426
VISIT US AT WWW.MURCHISONTAYLOR.COM Wilmington’s Law Firm since 1955 for Business Law, Mergers & Acquisitions, Litigation, Health Care, Employment, Real Estate Transactions and Estate Planning.
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| HEALTH CARE |
Hospital deal slated for final vote
A
fter more than a year of discussion NHRMC’s future, a vote is scheduled for Oct. 5 to decide whether to sell the county-owned hospital to Novant Health. New Hanover County Commissioners that day VICKY also are slated to vote about how roughly $1.5 billion in sale proceeds to the county would be handled including on the bylaws for a new community foundation to oversee the endowment of that money. The decision comes after months of discussion and negotiations with several health systems interested in New Hanover Regional Medical Center. After reviewing submissions from a request for proposal, hospital trustees and county commissioners picked as the finalist Novant, a not-for-profit system based in Winston-Salem that already owns
JANOWSKI
PHOTO BY MICHAEL CLINE SPENCER
Final countdown: New Hanover County Commissioners are scheduled to vote on NHRMC’s future Oct. 5.
a hospital and physician offices in Brunswick County. County and hospital officials first announced in July 2019 that they wanted to explore outside partnerships, citing strong financials for NHRMC. Officials on Sept. 18 released the
final agreement reached with Novant, which offered $1.5 billion to the county for the health system and pledged to spend $3.1 billion in routine capital expenses and strategic master plan projects on NHRMC over the next decade. During the talks this year, Novant
also forged a deal with UNC Health and UNC School of Medicine to expand their presence at New Hanover Regional. “It outlines the future of possibilities for New Hanover County and for our region,” Joseph Pino, SEAHEC’s president and CEO, said about the 160-page-plus asset purchase agreement with Novant. Pino, who served as vice-chair of the Partnership Advisory Group, was one of the speakers at a public hearing with county commissioners Sept. 28 – the final public hearing before the upcoming vote. “I think in the end what we have here today is an opportunity of a lifetime that brings forth the opportunity to transform our health care system much faster than we ever could independently,” Pino said. Not everyone in the community has been as convinced. Throughout the process, opponents questioned the need to put the health system up for sale and what a change in ownership might mean for health care costs, local oversight and other
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| HEALTH CARE | issues. The group Save Our Hospital tried unsuccessfully to delay the commissioners’ vote by asking a Superior Court judge to issue a temporary restraining order on the basis that the group has pending records requests for information surrounding the deal. Judge Phyllis Gorham on Sept. 25 denied Save Our Hospital’s request for a 10-day delay as part of the lawsuit the group filed Sept. 22 over its records requests. That might not be the only legal complaint that could come up in the process, a state lawmaker said during this week’s public hearing. Sen. Harper Peterson, D-New Hanover, spent much of his allotted time during public comments on the proposed nonprofit community foundation that would manage $1.25 billion from the sale proceeds. The foundation would put the money into an endowment and use its earnings to fund projects in the county ranging in the areas of education to public safety, according to the agreement documents. But how it will operate is not yet set in stone – especially whether it will be a private foundation, which
officials say would give it more leeway for the type of investments it can make, or if it will be a public body considered part of the local government. (For more on those details, turn to page 7.) County officials have talked with the Local Government Commission about interpretation of a state statute governing how local government entities can invest funds. The county maintains that the proposed foundation doesn’t meet the criteria for being considered a unit of the county and because of that should not have to follow the investment restrictions in that state law. Peterson, however, said he disagrees with that. “It is onerous enough that the new foundation will not be honoring open meetings or open records laws, but will now have unrestricted control over how the public’s money is spent,” he said at the public hearing, also questioning the amount of time to review those details before the vote. “Is it the intent of the county to continue with this sale regardless? Are we facing legal action at the taxpayers’ expense? Why the rush?” As of press time, the Partnership Advisory Group was scheduled
to hold its final meeting Sept. 29 to give its recommendation about the proposed agreement. Because the 21-member PAG is an advisory group, its vote is not required. The NHRMC trustees, who do have to sign off on the deal, were slated to meet Oct. 1 to vote. When the county commissioners meet Oct. 5, they are expected to consider and vote on the: • “Asset Purchase Agreement between New Hanover County, New Hanover Regional Medical Center (NHRMC) and Novant Health • Use of net proceeds (which is included in the Asset Purchase Agreement as ‘Exhibit C’ and referred to previously as “Exhibit D” in the approved Letter of Intent) • Bylaws for a community endowment (the bylaws are still under review and being updated, based on Commissioner input from their September 21 board meeting) • The termination of the lease between the county and NHRMC (if the Asset Purchase Agreement is approved, the current lease agreement between New Hanover County and NHRMC would terminate at closing, because properties and facilities being leased would be sold by the
county – making the lease no longer relevant).”
Family medicine practice opens in Southport A new practice – Robert A. Wilson, MD – opened in mid-September in Southport. Physician Robert Wilson’s office opened at 717 N. Howe St. The practice offers family, urgent, occupational and telemedicine care. Wilson also is an FAA-designated aviation medical examiner and able to help those needing their FAA flight physicals.
Dosher urgent care office moves to wellness center The Dosher Urgent Care Clinic at 4222 Long Beach Road closed Sept. 25 to move locations. It will reopen Oct. 5 at the Dosher Wellness Center, 3009 Medical Plaza Lane, as Dosher Convenient Care, according to a press release. There, providers will continue to treat common, nonemergency medical conditions and offer extended hours for patients 8 a.m.-6:30 p.m. Monday through Friday.
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| THE LIST |
Advertising and PR Firms
Ranked by total number of employees FIRM ADDRESS PHONE EMAIL RANK WEBSITE
1 2 3 4 5 6 7 8 8 10 11 12 12 14 15
Wilmington Design Company 3517 Wrightsville Ave. Wilmington, NC 28403 910-395-9997 bill@wilmingtondesignco.com www.wilmingtondesignco.com Tayloe/Gray 221 N. Second St. Wilmington, NC 28401 910-795-4831 sales@tayloegray.com www.tayloegray.com Sage Island 1638 Military Cutoff Road Wilmington, NC 28403 509-7475 info@sageisland.com www.sageisland.com Proclaim Interactive 703 Saint Joseph St., Suite 101 Carolina Beach, NC 28428 795-4143 hireus@proclaiminteractive.com www.proclaiminteractive.com DesignLoud Inc. 10 N Front St, Unit C Wilmington, NC 28401 910-302-3286 Contact@DesignLoud.com www.DesignLoud.com Morvil Advertising + Design Group 1409 Audubon Blvd., Suite B3 Wilmington, NC 28403 342-0100 jeff@morvil.com www.morvil.com Viamark Advertising 720 N. Third St., Suite #502 Wilmington, NC 28401 763-5222 bea@viamark.com www.viamarkcarolinas.com Bon's Eye Marketing 228 N. Front St., Suite 302 Wilmington, NC 28401 399-2700 info@bonseyeonline.com www.bonseyeonline.com Maximum Design & Advertising Inc. 7032 Wrightsville Ave., Suite 201 Wilmington, NC 28403 256-2320 Amy@MaximumRocks.com www.MaximumRocks.com Plan A Advertising 3710 Shipyard Blvd., Suite B Wilmington, NC 28403 910-769-1730 angi@planaad.com www.planaad.com Colonial Marketing 3901 Oleander Drive, Suite E Wilmington, NC 28403 343-1933 info@colonialmarketing.com, rodf@colonialmarketing.com www.colonialmarketing.com Eagle Eye Marketing 1427 Military Cutoff Road Wilmington, NC 28403 338-1364 info@eagleeyemarketinginc.com eagleeyemarketinginc.com Ford Design Group LLC 311 Judges Road, Suite 6C Wilmington, NC 28405 202-0096 greg@forddesign.com www.forddesign.com Signal Remote locations Wilmington, NC 28401 (800) 231-9632 info@signalinc.com www.signalinc.com Right Point Media Inc. 311 Judges Road, Suite 7F Wilmington, NC 28405 264-6263 info@rightpointmedia.com rightpointmedia.com
NO. OF LOCAL FULL-TIME EMPLOYEES
SPECIALTIES
23
Award-winning, full-service digital growth marketing agency: branding and logo design, web design and development.
22
Marketing and brand strategy, graphic design and creative, digital and interactive design, web and social marketing, technology and application development.
North East Bank, Pay Tel Communications, Bradford Products, Velocity Solutions, Liquidlogic Kayaks, G-Code, Pay for Art, Evasive Motorsports, Marshall Pet Products, Max Pro Window Films, New Hanover Regional Medical Center, Valsource
Nathan Tayloe CEO
2009
20
Website Design, Social Media, Video Production, Branding, Content Marketing, Digital Advertising, Traditional advertising, Hosting and software application development
Work on a variety of services for: www.flooringmarkets.com; www.amytyndall.com; www.lowcountrylandscaping.com and www.lowcountryinteriors.com; www.appleanniesbakeshop.com; www.historicwilmington.org; www.michelleclarkteam.com; www.warehouseskateboards.com
Mike Duncan President/CEO
1997
14
Branding and positioning, messaging, digital marketing strategy, website design, search engine optimization (SEO), social media marketing, pay-per-click (PPC) management, email marketing, ecommerce, reputation management, logo design, video production
South Atlantic, Pinnacle Trailers, Builders Discount Center, Conway Medical Center, Lower Cape Fear Hospice, Mountain Valley Hospice, Diatech USA, American Orff-Schulwerk Association, Bone and Joint Surgical Centers
Spence Hackney President
1999
13
Social Media Marketing, Search Engine Optimization, Pay-Per-Click Advertising, Website Design, WordPress
Atlanta Falcons, La Belle Vie Plastic Surgery, SWELL Systems
Derek Schmidt Founder & CEO
2011
12
Full-service marketing, advertising and graphic design, including corporate ID, branding, advertising campaigns, marketing strategy and collateral, TV and event production, web design and development, SEO, interactive marketing, media planning and buying, business-to-business, business-to-consumer
Brunswick Forest marketing, Liberty Senior Living branding, EmergeOrtho full marketing, Morris & Associates trade show materials, Advanced GYN Solutions animated video series, Java Estate Roastery signage, NHRMC “Let’s Make Healthier Happen” and more, Cape Fear Commercial website and GHK website
Jeff Morvil President/Creative Director
1985
11
Advertising/marketing, services include creating and marketing strategic advertising campaigns through: brand inception and/or Serves a wide range of industries such as automotive, telecom, medical, brand awareness and enhancement, TV/radio media placement, fitness and retail. The Wilmington office purchased the Viamark franchise in direct mail, both web design and app design and development, social Charleston, S.C., and maintains the two offices. media marketing.
Bea Raybourne, President Gayle Brown, Vice President
2006
9
Cape Fear Collective, Catawba Research, Center for Pain Management, Logo design, print and ad design, PR strategy, video production, web Clean Eatz, Copiers Plus, Historic Wilmington Foundation, Isosceles development, writing and messaging Pharmaceuticals, Julia's Florist, Manhattan Pizza, Seniors Helping Seniors, Step Up Wilmington, Surf City Dental, WHQR.
Stephen Bon President
2006
Amy Tharrington Kelly Burnette Partner Principals
1998
Angi Israel Owner/President
2013
Rod Flinchum President
2002
Jennifer Bloech Jessica Kirst Co-Owners
2019
Greg Ford President and Creative Director
1992
9
Destination and lifestyle marketing: strategic planning, digital marketing, branding, full-service advertising and design, website design and development
NOTABLE PROJECTS
The Grove, TN; Boot Ranch, TX; Windsong Ranch, TX; Logan Homes, NC; Landfall, NC; Las Campanas, NM; Tapestry, CA; St Joe, FL;
Results-focused marketing solutions for your business. Full-service Atlantic Appliance, Cape Fear Community College, The Wilson Center at marketing, advertising and creative services. Strategic campaigns Black's Tire & Auto Service, Excite Credit Union, Cricket Wireless, across all traditional media and digital platforms. Specialties include CFCC, Wilmington Eye, Island Appliance, TruFIT branding/rebranding, campaign development, multi-market strategy, Wilmington Plastic Surgery, Gym, TF Fitness + Nutrition. media buying and graphic design
7
Full-service marketing agency, servicing clients in nearly every industry, with an expanding operational footprint in multiple North Carolina and out-of-state markets; company’s core fundamentals are on media placement, focusing on investment in qualitative/ qualitative research
6
Full-service marketing and advertising agency serving clients across Alpha Mortgage, Atlantic Roofing Company, Budget Blinds, Cape Fear the East Coast; traditional media platforms of TV, radio and print; Cleaning Solutions, Chief Roofing, Glo Med Spa, Hamm Hearing Aid digital strategies of SEO, SEM, video pre-roll, display ads, OTT, Center, Kurtis Chevrolet, Lookout Ford, Mattress Furniture Liquidators, social media and website development; creative development with Moe’s Southwest Grill, Morgan Scheibel Insurance, New Bern Auto Group, logos, branding, corporate Identity; media planning and buying, Ocean City Chevrolet, Salt Air Heating & Cooling, Smart Style Salon research media and market analysis Logo design/corporate identity, branding, marketing, print media, graphics, printing, web design, internet marketing, photography, trade show services, billboard design and package design, promotional items, embroidered and screen printed apparel
YEAR LOCALLY FOUNDED
Bill Hunter PPD, Dentsply Sirona, Audioengine, Kuraray, Alcami, Bitty & Beaus, River Keith Riggs, Marketing Bluffs, Nourish, Red Door Homes, Manager President
8
6
TOP LOCAL OFFICIAL
After experiencing a shift in traditional media markets with the onset of more robust digital ad buys, Colonial has formed new partnerships that ensure continued adaptation to the exponential growth seen in the digital marketplace over the past few years. Opened a second office in the Greensboro, NC market.
Pender County, Hyster-Yale, Rulmeca Corp., New Hanover County Sheriff’s Office, Cape Fear Distillery, Balfour Beatty, Blockade Runner Resort, and Quality Chemical Labs. New Project: Branding Brunswick County.
2003
5
Brand strategy, digital strategies, graphic design, web development, application development, content development, social media, John Deere, GE, GlaxoSmithKline, Bald Head Island, Ingersoll Rand, Mack traditional/online advertising, direct/email marketing, mobile Trucks, Blue Cross Blue Shield of NC, Schneider Electric applications
Ricky Haynes President
1995
3
Television, radio, print advertising placement and strategy/social Dr. Egg Pediatric Dentistry (animated TV commercial), Cape Fear Pick-Nmedia management/video production/creative concepts/web, training Pull (animated TV commercial), Well Care Home Health 30th Anniversary and industrial video/360 virtual reality web videos, Rodzik Law Group (TV commercials)
Chris Varner Owner/Founder
2001
List is based on voluntary responses to a Business Journal survey.
Want to be considered for The List? Request an industry survey by emailing lists@wilmingtonbiz.com. The Business Journal will feature the following lists in upcoming publications: Physician Groups • Hospitals • Homebuilders
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October 2 - 15, 2020
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| BANKING & FINANCE |
Fueling foundation’s investment power W “ hile the New Hanover County Board of Commissioners’ move toward a sale of New Hanover County Regional Medical Center has received much public attention, JENNY a parallel effort has not. That effort – laying the groundwork for a community foundation that would invest and manage roughly $1.25 billion from the proposed sale to Novant Health – has been undertaken by county management. The investment of those funds and the expected income from that investment could vary significantly depending on how the foundation’s governance is structured, said Lisa Wurtzbacher, New Hanover County’s chief finance officer. Wurtzbacher presented some of the related issues to the commissioners at their Sept. 21 meeting. If the foundation is considered a governmental agency, investment of its so-called “idle funds” must be done in accordance with the N.C. General Statute 159-30. The statute, Wurtzbacher said at the meeting, “restricts investments to 12 types, most of which are lowrisk and low-yield. We’re trying to structure the foundation so it is not bound by the statute.” While there is no way of predicting how the markets are going to behave, she continued, NCGS 159-30-approved investments have an average yield of 2.81%. If, however, the foundation had a wider range of investment options, “it would be reasonable to assume the foundation portfolio could generate 5% in income.” Several commissioners have pointed out that a foundation subject to the statute would be more limited in its community impact, said County Manager Chris Coudriet in an interview Sept. 28. “If the foundation was subject to 159-30, the annual proceeds would be significantly different, and it would be unable to do the same amount of good work in the community,” he said. “A 2% annual return versus a 5% annual return would significantly affect what the foundation
CALLISON
would be able to do year over year.” The plan would be to use only that income from the $1.25 billion to fund projects and agencies that would advance the health and wellbeing of the county, Wurtzbacher said. “The real goal is that [the principal] grows over time,” she said. “The foundation will have an investment plan and an allocation plan. The board will do what they think is right.” Coudriet added that there will be a methodology governing budgeting for the foundation’s outflow, based on a five-year rolling average of the income, so that there would not be peaks and valleys in funding levels for community projects. In exploring ways to constitute the foundation so it would not be considered an agency of local government, New Hanover County has consulted the state’s Local Government Commission. “The LGC staff has offered an opinion that the foundation … would possibly be considered an agency of New Hanover County and therefore subject to NCGS 159-30,” county spokeswoman Jessica Loeper wrote in a memo last Friday. “They found facts that would exempt the foundation from investment oversight and also found facts that would subject it to investment oversight. The NC Treasurer and Commission have not offered an opinion on this, so this is just the opinion of the LGC staff based on the framework presented for the foundation earlier this month.” While there are several factors that would affect this determination, Coudriet said, one obvious one is the composition of the foundation’s board. If the county appointed the majority of the 11-member board, it would be seen as controlling the foundation, thus making the foundation an agency of local government. Wurtzbacher said that the foundation’s draft bylaws currently specify that the county would appoint five board members, with the remaining six would be appointed by the NHRMC board. Coudriet explained that, assuming the sale goes through, the NHRMC successor board would have 17 members and be self-perpetuating, with general oversight by the Novant corporate entity. It would have no connection to New Hanover County.
A 2% annual return versus a 5% annual return would significantly affect what the foundation would be able to do year over year.” CHRIS COUDRIET New Hanover County manager
“It’s not just the [composition of] the foundation board that determines whether the foundation is an agency of county government; there are other factors too,” he said. “There are other things that we have to achieve to absolutely exempt it [from NCGS 159-30]. But we think that the county appointing the minority of members is the ‘first among equals’ issue.” New Hanover County commissioners are slated to vote Oct. 5 about the final agreement with Novant as well as the bylaws for the proposed community foundation. (For more about the upcoming vote, turn to page 4.)
Live Oak Bank adopts new cloud-native core system Live Oak Bank has adopted a new, cloud-native core system to run its digital banking ecosystem, according to a recent news release. The provider of that core, Finxact, is well known to the bank’s parent, Live Oak Bancshares: Investments by its subsidiary have helped Finxact develop and grow. Live Oak Bancshares Chairman and CEO James “Chip” Mahan has known Finxact co-founder and CEO Frank Sanchez for decades, and was instrumental in getting Sanchez to develop the core-as-a-service platform, according to a Jan. 19, 2019 piece in American Banker. In 2017, Live Oak made an initial seed-stage investment in the new platform, and was part of a $30 million funding round in early 2019. Currently, Live Oak Bancshares, through Canapi, owns a 16% interest in Finxact, Fintech Futures magazine reported Sept. 23.
In the recent past, Live Oak Bank deployed Finxact’s core banking platform to power its digital banking ecosystem. Then, in late September, the bank began offering business savings and CDs on the Finxact platform to Live Oak’s rapidly growing deposit customer base, the release stated, adding, “Finxact is also currently powering the bank’s PPP loan portfolio that is helping over 10,000 small businesses, including both new and existing customers.” Finxact’s core system runs in the cloud on Amazon Web Services, but, unlike many other cloud-based core systems, it is sold as software-as-aservice (SaaS), meaning that clients pay for it with a per-user monthly subscription fee, rather than having to make a large capital outlay and perform hardware maintenance, a Jan. 19, 2019 article in American Banker pointed out, adding that payas-you-go plan potentially makes it affordable to community banks. In choosing Finxact’s core computing platform for its retail operations, the release stated, “Live Oak is now able to better meet the evolving needs of its customers during this era of rapid change by improving integration among banking channels, lowering operating costs, and shortening the time to market for new products.” Live Oak officials believe their investment in Jacksonville, Florida-based Finxact is paying off in efficiencies for the bank. “This is a significant milestone for Live Oak Bank. We have put an incredible amount of energy into recreating the financial services landscape, and a modern core is key to that transformation. “As we move forward, the possibilities of what we can build for our customers are endless,” Mahan said in the release. Finxact’s Sanchez said his firm worked closely with Live Oak Bank and other best-in-class fintech providers to create a scalable, agile and regulatory compliant system that would allow the bank to innovate and evolve its business on its own terms, and to “implement their vision of the future of banking in the digital era.” Huntley Garriott, president of Live Oak Bank, said in the release, “We believe the Finxact core is the new standard for the industry.”
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Greater Wilmington Business Journal
| ECONOMIC DEVELOPMENT |
Slow hiring trend expected to continue
H
iring trends across the region are picking up, but at a slow pace, said Adam Jones, a regional economist with the University of North Carolina Wilmington. There are still constraints for businesses, CHRISTINA HALEY however, that are impacting the overall recovery. “I expect we’ll continue to see employment growth across the board but stronger in areas that ‘normalize’ more quickly,” Jones said. “For example, as we get better at treating COVID and the medical sector normalizes, we’ll see more demand for nurses, doctors, etc., because regular visits will resume and the backlog of nagging problems that haven’t been addressed in six months will have to be handled.”
O’NEAL
Statewide measures to slow the spread of the coronavirus are keeping many businesses from operating at full capacity or operating at all. Some firms, however, are opening and hiring, as the restrictions lift in phases. But many are still adapting to the new COVID-19 business climate. Across the board in the Cape Fear region, unemployment figures have slowly started to trend down, but percentages are still above 2019 counts. New Hanover County, for example, reached a high this year at 15% in April, compared to 3.3% last April. The unemployment rate slowly started to reduce in the following months before trending up slightly from 7.6% in June to 8.4% in July. August figures at the county level were not released as of press time. One sector in New Hanover County hit hard by the job loss situation is the leisure and hospitality industries, Jones said. Jones said those industries made some strides in employment recov-
ery in May and June, but smaller increments of recovery happened between June and July. “There are two reasons for the slowing: the initial reopenings brought back a large number of jobs, and by July, the seasonal effects of tourist season were in full effect. Summer businesses do their hiring before the peak season. That said, we are still about 7,000 leisure and hospitality jobs below where we were last year in the summer peak,” Jones said, adding that those jobs are likely to be slower coming back because of capacity limits as well as the fact that consumers are still minimizing their exposure to some extent. “Capacity constraints and comfort levels will normalize with time, but it’s likely to be a slower process going forward, unless there is a major breakthrough on the public health front such as a vaccine or readily available therapeutic,” he said. Jones also expects gains in the construction industry, especially in
PHOTO C/O ON TARGET STAFFING
On the job: Sierra Briney, staffing coordinator with On Target Staffing, helps a participant during a recent drive-thru hiring event.
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| ECONOMIC DEVELOPMENT | the area of home improvement work, he said. “As employees begin to work from the office again, the demand for construction and renovation projects are likely to increase,” Jones said. Construction jobs were some of many involved in a drive-thru hiring event in September. The event took place in New Hanover County with On Target Staffing and garnered 115 people looking for work, said Erin Easton, business engagement manager with the Cape Fear Workforce Development Board. Other types of positions involved in the September event included housekeepers, line cooks, pool techs, nurses, shipping and receiving and warehouse workers. The job openings were for various skill levels. Salaries for open positions also varied, Easton said. A national retailer also announced a round of local jobs for a location soon to open at Independence Mall. Dick’s Sporting Goods plans to hire 20 part-time positions and 20 temporary positions for the new mall location expected to open in October, a news release stated. There are also trends on the side of job seekers, some of whom are searching for a change in their line of
work due to the crisis, Easton said. “We really have to analyze and see what [employers] need to offer so that they can get some of these folks in,” Easton said. “People are having to change industries. As we know the hospitality industry is huge here … and most of our job losses have come from that. So, these folks now need to figure out what they can do. There are people available to work and we need to help [businesses] find those people.”
Leaders gauging COVID-19 impacts on businesses A partnership has formed to evaluate the impacts of the COVID-19 crisis on minority-owned and women-owned businesses in the Cape Fear region. The initiative is being undertaken by Genesis Block and Cape Fear Collective, which teamed up with ResilNC to distribute in early September the ResilNC Small Business Needs Assessment Survey in the Southeastern North Carolina business market. The small business needs assessment was released to help determine what the COVID-19 impacts are to the local landscape of minori-
ty-owned businesses; what resources are needed; and how to direct those resources to where they are needed most, said Tracey Newkirk, who co-founded Genesis Block with her husband, Girard. ResilNC has gathered community partners across the state to help collect data, and find and fill the voids in resources and financial backing to support minority-owned and women-owned businesses, said Napoleon Wallace, co-founder of Partners In Equity, which started the ResilNC initiative. “What we know is that … in every major recession, communities of color are more deeply impacted and their businesses fail at a higher rate,” Wallace said. The National Bureau of Economic Research found that nationally, Black-owned businesses were hit particularly hard by the effects of COVID-19. The number of African American business owners plummeted from 1.1 million in February 2020 to 640,000 in April, according to the report. Similarly, Latinx business owners dropped 32% from 2.1 million to 1.4 million February to March. Meaghan Lewis, director of pro-
grams of Wilmington-based nonprofit Cape Fear Collective, said that ResilNC’s local business assessments are part of a broader economic development strategy and data collection effort, she said.
Economic Outlook event set to be held virtually UNCW’s annual Economic Outlook Conference is going virtual this year due to the COVID-19 pandemic. The October conference will focus on “moving from crisis to opportunity while leading with resilience and agility,” according to a news release. Speakers will talk about global, national and regional forecasts, on top of how to respond to the changing business climate. This year’s speakers are Adam Jones, regional economist at the University of North Carolina Wilmington; Abigail Dunne-Moses, global director for the Center for Creative Leadership; and Lauren Sanfilippo, vice president and marketing strategy analyst at Bank of America. The virtual conference will take place 8 a.m. to 9:30 a.m. Oct. 8. Visit uncw.edu/swain/outlook to register.
ECONOMIC CONFERENCE Featuring a panel discussion with:
THURSDAY, OCTOBER 8, 2020
8AM - 9AM
SPONSORSHIPS STILL AVAILABLE
FROM CRISIS TO OPPORTUNITY Abigail Dunne-Moses Global Director, Center for Creative Leadership
Adam Jones
Regional Economist & Department Chair for Economics & Finance, Cameron School of Business
Lauren Sanfilippo Vice President & Marketing Strategy Analyst, Bank of America
PRESENTED BY
R E G I S T E R N O W AT
AN EEO/AA INSTITUTION.
uncw.edu/swain/outlook
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still in place: the state’s incentive program, Wilmington’s abundance of experienced crew members and the presence of sound stages at EUE/Screen Gems. But, he added, “some projects that had hoped to be here this fall are pushing into 2021 because of talent, distribution issues, etc. During this whole COVID time the interest in North Carolina has not diminished. The only issue has been COVID and projects being able to go forward. Studios are telling us, ‘When we get the greenlight to move forward, North Carolina is definitely PHOTO BY MICHAEL CLINE SPENCER on our list of locations.’” Safe holidays: Crew members wear masks as part of COVID-19 protocols as they Bill Vassar, executive vice presifilm USS Christmas in downtown Wilmington in September. dent of EUE/Screen Gems in Wilmington, said he is almost certain that one additional project will land here visions with less-stringent ones. That Assembly has made the program before the end of the calendar year. legislative modification was enough permanent. “We did a project with them last to lure back to the state several stu“What has made the grant inyear, and they had a really good dios and others in the film industry centive more attractive is that it has experience,” Vassar added. “They who refused to bring projects here been stable,” Griffin said. “What could even go back-to-back with a while there was strong anti-transgenproductions don’t like is, [a state] second project.” der legislation on the books. gets a new incentive; it takes studios While Wilmington’s Christ“HB142 expires Dec. 1; that’s a while to study it and run some mas-in-September bundle consisted what has been agreed to by the polimodels. Then they tell their team, of three projects, a bundle of two ticians,” Gaster said. we approve it, and they start looking projects came down the chimney for But some in the film industry for projects. It takes six months or the greater Charlotte area. One is a weren’t mollified by HB142 and conmore to get in the groove. Then the made-for-television movie, A Nashtinued to give North Carolina a wide legislature changes it. ville Christmas Carol. The other is berth, Griffin said. “We now have $31 million a year Delilah, a new TV series from War“We’ve still got some companies and have been able to carry over ner Bros. Television for OWN. that absolutely will not come here, unused funds. It’s encouraging, and The film industry is dealing with period. But they have all said, with productions see that. They like a a classic situation of supply and the bill set to expire at the end of simple program like ours where you demand. Demand for new content this year, ‘We will come there and do do an audit, then the check gets is on the rise from a public confined business.’ I hope that will open up cut.” to their home screens, while creation more business for us.” Griffin said the state’s film incenof new movies and series has been Griffin said he is in conversation tive does have limits. There is a cap, held up until the recent development with some companies that are eyeing and when the state’s commitments of production protocols that would that Dec. 1 sunset and will update approach that cap, producers beprotect against the coronavirus. them on what happens. come wary. And, of course, any film Asked if he shared Griffin’s and Vassar said he has talked with incentive program exists at the mercy Vassar’s optimism about projects the head of incentives and producof the General Assembly. heading to North Carolina, the tion for a major Los Angeles-based “Our industry monitors the mood director of the N.C Film Office in studio that put North Carolina on a of the [state] legislature,” Griffin Raleigh was enthusiastic. restriction list. Because of the anticisaid. “Occasionally we do see bills “Absolutely,” said Guy Gaster. pated HB142 expiration, its position come up that would take the knees “The industry is getting back up and is changing. out from under us.” going worldwide. There are proj“We’ve been taken off the restricIncreasing numbers of state legects that want and need to go right tion list, so they are allowed to look islators have recognized the benefits away. The fact that we have projects at North Carolina again,” he said. to North Carolina from film activity, starting within the next 45 days is The second evolving factor is officials said. And, said Gaster, film a signal to others: ‘If you are ready studios’ attitude about North Carstudy programs in several North to go, North Carolina is a place you olina’s grant incentive. When the Carolina schools – including Cape can get started.’” state’s incentive program changed Fear Community College and UniBesides having the experience and from a fairly open-ended tax credit versity of North Carolina Wilmingcapacity to handle multiple projects program to a capped grant rebate ton – have been an asset. on short notice, North Carolina program in 2014, studio executives “It goes to the training of a workappears to be benefiting from two were reluctant to commit to projects force,” he said. “The program at changing situations. here, fearing that the grant pool of UNC School of the Arts has gained The first is the impending expi$10 million per year would be dried national attention, and that has reration of House Bill 142, enacted up before they put in their claims. ally helped. Part of the team behind in 2017. The bill repealed the state’s Since it was initiated, however, Halloween and Eastbound and Down HB2 – the state’s so-called Bathroom the grant pool has increased to $31 have strong UNCSA connections Bill – and replaced several of its promillion per year, and the General and wanted to film in this area.”
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| IN PROFILE |
Group works to highlight city’s downtown BY JENNY CALLISON owntown Business Alliance (DBA) is highly visible these days as a program it pushed for – Downtown Alive – earns high marks from business owners and customers alike. Born of the frustration of downtown restaurateurs and retailers at COVID-19 restrictions, Downtown Alive expands those businesses’s access to outdoor space for dining or merchandising by closing off two blocks of Front Street and one block each of Princess and Dock streets during specified hours Thursday through Sunday. More recently, the city extended the original timeframe for Downtown Alive and allowed other businesses in the Central Business District to create “parklets,” dining or retail space in front of their establishments defined by barricades. “There is a total of 32 businesses participating,” said DBA President Terry Espy. “The Cotton Exchange grabbed three barricades, and the vendors inside the building are taking turns setting up in that space. They have live music in the courtyard. “The goal of Downtown Alive is to bring people downtown safely and to increase the possibility of them going into your shop and buying your merchandise,” Espy added. “One of the points we made to the city was this program enabled restaurants to remain open and thrive.” When one business segment, such as restaurants, is shut down, surrounding businesses die, Espy said, pointing to examples in the Triangle. “In downtown Raleigh, the windows are still boarded up,” she said. DBA advocated for the concerns of the businesses; the city responded by creating and staffing the Downtown Alive program. Joan Loch, a former downtown business owner and longtime DBA board member, said the organization worked closely with 15 city staff members to get it in front of the Wilmington City Council for a vote and served as a bridge between the downtown business community and the city on the project, which is managed by Cool Wilmington. Downtown Alive has been funded through Oct. 18 by the city, Wilmington Downtown Inc. (WDI) and DBA. “We’ve gotten the city to agree that any extension proposal does not
D
PHOTO BY MICHAEL CLINE SPENCER
The business of downtown: Terry Espy, shown on Front Street in Wilmington, is president of the Downtown Business Alliance, an organization that pushed for the outdoor dining expansion program Downtown Alive.
have to go before city council, but can go directly to [City Manager] Sterling Cheatham to decide,” Espy said. The Downtown Alive collaborative, with DBA’s efforts led by Espy and Loch, is the most recent example of the organization’s advocacy since its founding in 1956. But the muscle DBA has been able to put behind this COVID initiative speaks to the organization’s growth in recent years. “My first experience with DBA was 13 years ago, when I was asked to speak to a DBA meeting at Orton’s Pool Hall,” Espy recollected. “There were six people seated around a pool table. The organization was on life support.” Six years ago, Espy agreed to join the board. Five years ago, she was in Taos, New Mexico, when she received a phone call from Loch. “Joan said, ‘You’ve been elected president,’” Espy said. She recalled promising the board to serve for a year and insisted that she wanted a board that was active, congenial and progressive. She also told the board it needed to include the North Fourth Street, Castle Street and South Front Street areas in its downtown purview. “In October I will finish four years
as president and have been told I need to do one more year,” she said, noting that Loch, her colleague at MoMentum Companies, continues to be a moving force within the organization as well. Today, the DBA newsletter goes out to 350 individuals and businesses and enhances communication within its five districts: Central Business, Brooklyn Arts, North Waterfront, Castle Street and South Front Street. And that’s especially important in difficult economic times. “It’s like after Hurricane Florence; [COVID issues] have brought people together and given them opportunities for collaboration and getting acquainted,” Loch said. “We serve our members but we also help nonmembers. Every bit of money goes back into the association.” Espy pointed to several of the organization’s accomplishments. “We were the impetus behind the Downtown Trolley realignment,” Espy said. “And the designation of [downtown] districts – we took the lead on that. The Convention and Visitors Bureau had studied it and had identified the districts, but nobody was running with it. “We hold seats on several city committees, and one of those is
downtown parking,” she added. “Our group thinks beyond the minute to what we need to plan for.” One upcoming issue is WAVE Transit’s move to do away with the downtown trolley, which DBA sees as an important business connector as well as a service that reduces the need for parking spaces downtown. Currently, one trolley plies the route while the other is on standby. DBA recommends that both trolleys run on a regular schedule, which would decrease wait time from 40 minutes to 20 minutes and perhaps would attract greater ridership. DBA also sponsors street events downtown such as Rims on the River and the American Craft Walk. To ensure that downtown businesses benefit from all special events downtown, the organization has crafted guidelines on booth spacing and placement that all festivals will need to abide by. In its efforts to boost downtown, DBA works closely with WDI. Espy explained that the two organizations have complementary missions. “WDI is the economic driver, looking at things from 10,000-foot view,” she said. “Once businesses are here, DBA holds their hands. It’s a good marriage.”
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ful DISCUSSIONS Sponsors’ Content Distributed By Greater Wilmington Business Journal
BUSINESS ADAPTABILITY DURING COVID-19 to emerge from bankruptcy in a way that protects their employees and their customers. My partners and I are helping clients with lease negotiations or re-negotiations, revisiting agreements with lenders, vendors, and service providers, and talking through a plethora of employment issues. I have to say, I continue to be deeply impressed by our business clients and the creativity and resiliency they display every day. It will take awhile to get back on even footing, but everyone wants to return to the pre-virus state as soon as possible.
KEN BART Business and Securities Attorney, Ward and Smith, P.A.
www.wardandsmith.com (910) 794-4800
HANK HARRIS Director of Consulting, Ward and Smith Business Consulting
www.wsbizconsulting.com
(252) 672-4853
COVID-19 has brought stressors on businesses that were unheard of just a year ago. What should business owners be thinking about strategically at this moment in time? HANK HARRIS: I think the one thing that all business owners need to consider is how their business will transition to the next leader or generation of leadership. In the big picture, all businesses have only two fates – they are either sold or they are liquidated. An internal transition is just a form of sale. It may be to family, or employees, and discounted; but it is still a transaction. Three things are different today. First, privately-held business models are less homogenous than they used to be. Widely held ownership in a private company is more common in today’s world. Second, there are more exit strategy options available to owners today. At this time in particular, it’s worthwhile for owners to understand their exit options and prepare, even if that time is still a decade away. And third, with COVID-19, everyone is thinking through scenarios that just a year ago would have been unimaginable. No one saw this coming. KEN BART: I’m hearing from business owners who are stressed about the impacts of closure, reopening to fewer customers, or needing to sell their business in order to gain access to capital. I’m talking with a few clients about bankruptcy protection afforded to businesses that will allow them to restructure
Businesses in the pandemic are faced with managing a slew of employee-related issues. What issues are you seeing recently? BART: We’re seeing some employers struggle with considering downsizing or closing. When downsizing a workforce or closing a business is on the table, our employment attorneys advise employers in order to decrease potential employer liability. For example, companies employing 20 or more employees are subject to the Age Discrimination in Employment Act, which protects employees from age discrimination. Likewise, other protected categories under Title VII of the Civil Rights Act of 1964 (applicable to employers with 15 or more employees) such as race, gender, gender identity, national origin, pregnancy, and disability also can create the unwanted appearance and potential liability of discrimination where there is actually none. We also remind clients that, depending on the number of employees employed, if there is a “plant closing” or “mass layoff” under the federal WARN Act, there are certain and specific notice requirements that, if not met, expose businesses to liability as well. HARRIS: I’ve spoken with clients about multiple employment priorities. One that some owners haven’t considered is the need to safeguard key employees who might be sought-after and prone to advances from recruiters. If you have a key employee, now is the right time to be sure that person understands you need them. Business owners are also keenly aware that now is the time to protect critical relationships with vendors and customers, and do what you can to reinforce your company culture, even if some of your employees are working remotely.
“...there are several alternatives available to companies that require capital to either expand the business, make strategic acquisitions, purchase additional products, or hire employees or consultants.” KEN BART Business and Securities Attorney, Ward and Smith, P.A.
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This may be a good time to look at expansion for some businesses, particularly in transportation, healthcare, and logistics. What are potential funding strategies for companies looking to expand, acquire an existing business, or to increase working capital reserves? BART: This is what I do for a substantial amount of my practice, so I’ll take this question. Traditionally, companies would look to a bank for a direct capital loan to be repaid over time. However, there are several alternatives available to companies that require capital to either expand the business, make strategic acquisitions, purchase additional products, or hire employees or consultants. A private offering of equity is a beneficial option for viable businesses that are able to show potential growth and operational success. In addition, while direct stock or unit offerings are a common method of raising capital, for companies that are concerned about ownership dilution, debt offerings, whereby the company conducts an offering raising a certain amount of money through promissory notes or other debt instruments are also a possibility. Some business owners are surprised to hear that if they do not have access to accredited investors, venture capital groups, or other funding sources, they may also hire a licensed broker to act as an underwriter for the equity or debt offering, meaning that the broker would be responsible for securing investors who will participate in the offering.
We touched on remote work earlier. Given that such a large segment of the workforce is still working remotely, what advice do you have to ensure a successful remote work arrangement? HARRIS: Managing morale in-person can be difficult and doing so remotely is a herculean task. We have recommended normal, weekly video conference check-ins for employee teams. The most important thing, in our view, is for leadership to be visible, communicative, and responsive to employees. People make up their own narratives when they don’t have the facts, so arming your workforce with information is a key priority for leadership at this juncture. BART: Our employment lawyers have spent months working with businesses on that question. One thing we tell our clients is to have a written Remote Work Policy in place to clarify expectations. Having a written progressive discipline policy in place, and following it, also is important. Also, our employment attorneys say that providing employees who are not meeting performance or work attendance expectations with written warnings is important to help defend against possible claims of wrongful termination and to possibly challenge an employee’s claim for unemployment benefits.
What are potential exit strategies for companies due to the current pandemic and issues related to COVID-19? BART: During the previous several years, private equity groups have been at the forefront of the mergers and acquisitions market. Due to the impact of COVID-19, the mergers and acquisitions market is beginning to shift, with large private or public companies becoming more active in acquiring competing businesses in an effort to gain a greater market share and eliminate competition. I suggest that business owners who desire to exit their business
“Managing morale in-person can be difficult and doing so remotely is a herculean task. We have recommended normal, weekly video conference check-ins for employee teams.” HANK HARRIS Director of Consulting, Ward and Smith Business Consulting
through a company sale look to their larger competitors for a potential buyout. One side note….after helping numerous clients through this process, I have to stress how important it is to prepare for a potential sale by ensuring that all corporate books and records, financial statements, organizational documents, tax returns and other important corporate documents are well maintained and kept in an easily accessible location and format. Any potential buyer is going to require a due diligence process that will involve a thorough inspection of a company’s corporate documents. You’d be surprised how often businesses don’t have that information readily accessible. HARRIS: I could not agree with Ken more. Often, we on the consulting side are able to come alongside a company’s management team and help them gather and source the materials they will need to position themselves in the best light for investment or sale. That’s part of the planning we do with clients that they sometimes don’t know they need help with until the deal is staring right at them, and then they wish they had more experience getting this pre-funding phase in order. Clients need lawyers to make the deals happen, and we can help before the attorneys get involved to smooth that transition and help management prepare for the change at hand, whether that be an acquisition or a sale.
You’ve talked about succession planning and exit strategies a couple of times. What should business owners or managers consider in succession planning? HARRIS: Owners with family in the business may face a number of complexities. A common one is a generational transition involving children that want to be in the business and other children who do not. How do you set the business up for success, but also treat all of the children in an equitable fashion? This can relate to one of the biggest issues, which is establishing a clear set of goals for the transition. Business owners often want to pursue technical or tax-driven transition methods, but this can often add to the confusion if the goals and people issues are not clear. If an owner can lay out exactly what he or she wants to see happen, the right technical answers will follow pretty naturally. BART: We spend a lot of time with clients on what Hank is calling the technical answers. We help them with getting a business valuation, negotiating operating agreements and buy-sell agreements, and advising on issues related to the overall transition process. We have found that a comprehensive strategy that addresses both the business transition need and the owner’s estate planning and tax planning needs typically serves everyone’s interests.
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| REAL ESTATE | Thinking outside the ‘box’ BY CECE NUNN he signs advertising sales are gone and the lights are out at Wilmington’s two Pier 1 stores. The national home decor, furniture and accessories retailer announced earlier this year that it would be closing all of its stores after filing for bankruptcy in February. At Hanover Center, 3501 Oleander Drive in Wilmington, the 11,000-square-foot space that previously held a Pier 1 location could hold more than one store in the future. Breaking up retail space, or “boxes” as they’re sometimes referred to in the commercial real estate industry, to make way for more than one tenant is already expected to happen at the former Rite Aid space at Hanover Center. The center dates back to the 1950s and was the first outdoor shopping center in what was then the city’s suburbs. The Rite Aid closed a couple of
T
PHOTO BY CECE NUNN
Multiple tenants: The former Rite Aid space at Hanover Center is expected to be broken up for more than one tenant to fill.
years ago. Another store at Hanover Center, clothing retailer SteinMart, was still in the midst of closing its doors as of Sept. 23 this year. “We are close to executing a lease
for one-third of the Rite Aid space [which totals about 9,000 square feet] and still await final bankruptcy liquidation of both Pier 1 and SteinMart before being able to
market those spaces,” said Randy Kelley, principal of Harbour Retail Partners, one Hanover Center’s joint venture owners. “However, we have interest from a number of tenants.” He added, “We will likely break up both boxes into smaller spaces that will coincide with a facade remodel, which will include more activated storefronts.” It’s part of the changes planned for Hanover Center, which also call for the addition of more than 260 apartments and creating a new outparcel on Independence Boulevard behind the Bank of America branch at the center. In the world of commercial real estate, the word “box” doesn’t always have anything to do with cardboard. Brokers use the term to describe various sizes of stores, from big boxes, which are typically at least 50,000 square feet and larger, depending on who you ask, to junior boxes whose sizes also vary depending on who’s
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| REAL ESTATE | writing the marketing material. One thing some brokers agree on is the need for creating smaller spaces within much larger ones if it’s possible.
“
It will be interesting to see how creative some of these developers/ landlords get with how they redesign these larger retail spaces going forward …” Bryce Morrison Cape Fear Commercial
“Most likely, landlords will have to figure out a way to divide the larger retail space up into smaller, more marketable units going forward,” said Bryce Morrison, broker with Wilmington-based commercial real estate firm Cape Fear Commercial. “Of course, they will have some constraints as to how they do that depending on the depth of some of
these larger retail spaces.” Shopping center owners are used to adapting to changing demand. “They may ultimately have to create space with smaller retail frontage and shallower depth,” Morrison said, “to make it functional on the front portion of these ‘big boxes’ and have to get creative with what they do with the remainder of the space in the back behind the new retail bays, such as leasing it out as climate-controlled storage, bulk-warehouse storage or some other unique use.” The changes have their benefits. “With this kind of redevelopment of the big-box space, the landlord should be able to generate a higher per-square-foot rental rate on the smaller retail storefronts that are created with additional income potential generated on the remainder of the space leftover in the rear,” Morrison said. He added, “It will be interesting to see how creative some of these developers/landlords get with how they redesign these larger retail spaces going forward, if they do end up with some large retailers vacating.” Challenges remain, said Hansen Matthews, broker and partner in Wilmington-based commercial real
estate firm Maus, Warwick, Matthews & Co. “Although I am an optimist, for every really cool idea that someone can offer for repurposing or subdividing big-box retail space, there are often at least three significant obstacles which stand in the way. The physical, cost and legal issues associated with reletting big-box spaces are enormous,” Matthews said. He said that as with the dwindling number of big-box retailers, there is also a dwindling number of junior-box retailers. “Other uses such as entertainment venues make good replacement tenants, but ceiling heights may preclude them,” Matthew said. “Likewise, ‘last-mile’ distribution centers are popular choices, but this means turning large areas of the parking lot into queuing areas for trucks.” At Independence Mall at 3500 Oleander Drive in Wilmington, a Lidl grocery store that had not yet opened as of Sept. 2 stands where the Sears used to be, and exterior-facing stores that include Dick’s Sporting Goods and Five Below line the spot where the Sears wing once stood. Dick’s is scheduled to open this
fall, and mall officials have said that much of the redevelopment project could be done by the holidays. “Aside from finding new merchandise retailers, some popular choices have been grocery stores and large medical clinics,” Matthew said of replacing big-box stores. “These tenants will continue to draw many customers to the shopping center on a regular basis and they will benefit the existing tenants.” Matthews added, “In more extreme cases, some landlords are completely razing the big-box structure and constructing multi-story apartments to create a mixed-use development.” Mayfaire Town Center, where Wilmington’s other Pier 1 store was located, holds not only the former Pier 1 among its empty spaces but also an empty former location for children’s clothing retailer Justice and the spot formerly occupied by Portrait Innovations. While Mayfaire officials did not say specifically what is expected to be done with the former Pier 1 store, Paige Coniglio, specialty leasing manager and marketing director for Mayfaire, said, “We look at all viable options.”
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| BIZ LEADS | Reader’s Guide BizLeads is a collection of information gathered from greater Wilmington courthouses, state government offices and informational websites. These listings are intended to help the business community find new customers and stay on top of happenings with current customers, vendors and competitors. New Corporations lists firms that were recently incorporated in the state of North Carolina. All information is gathered from the North Carolina Secretary of State website. Addresses listed may not be the actual address of the business.
NEW CORPS AUG. 16- 31
107 NORTH DRIVE LLC 5228 Us 421 N Wilmington 28401 Agent: Chris Wilhoit 1515 GROVE LANE LLC 1515 Grove Lane Wilmington 27411 Agent: Kathryn Dennison 2010 LOBLOLLY LLC 2210 Loblolly Court Wilmington 28411 Agent: Lauren Seclur 213 SOUTH 4TH AVENUE TOWNHOME OWNERS ASSOCIATION INC. 1112 S. Lake Park Blvd. Carolina Beach 28428 Agent: Quinn Marlow 2202 OVALBERRY LLC 2202 Ovalberry Ct Wilmington 28411 Agent: Lauren Seclur 302 TENNESSEE AVENUE OWNERS ASSOCIATION INC. 1510 Robert E Lee Drive Wilmington 28412 Agent: Patrick Alderson 421 LLC 8155 Malpass Corner Road Currie 28435-9459 Agent: Wesley A Wooten 5 SUDS LLC 6362 Bryson Drive SW Ocean Isle Beach 28469 Agent: Mark C. Suddreth A BRIGHTER DAY HOME CARE AGENCY LLC 1005 Shallowford Dr Wilmington 28412 Agent: Angela Davis A&D MALDONADO UPHOLSTERY LLC 508 Rochelle Road Wilmington 28411 Agent: Dilcia MaldonadoNoriega ACQUALUCE LLC 1744 Kings Landing Rd Hampstead 28443 Agent: Matthew Prauner ACTIVE CYBER LLC 609 Hollingsworth Rive
Wilmington 28412 Agent: Chayse Roth ADDED WORKS INC. 6740 CAMPBELLS RIDGE DR SE Leland 28451 Agent: Deborah Starkey AK GIBBS LLC 6211 Wrightsville Ave. Unit 158 Wilmington 28403 Agent: Ashley K Gibbs ALL THAT JUNK LLC 1001 Nautilus Dr Apt 12 H Wilmington 28412 Agent: Spencer Journey ALW INVESTMENTS LLC 1022 Bryan Avenue Wilmington 28403 Agent: April L. Williams AMERCIAN GRUNGE APPAREL LLC 157 Bell Swamp Connection NE Winnabow 28479 Agent: John H. Gilbert AMERICAN WINE SOCIETY OIB CHAPTER 1257 Frisking Lane SW Ocean Isle Beach 28469 Agent: 2020 Tobacco & Vape Inc AMN CAPTURE CONSULTANTS LLC 599 Meadowbrook Lane Calabash 28467 Agent: Michael Navetta ANGEL GROOMERS LLC 6727 Clearview Dr NW Ocean Isle Beach 28469 Agent: Maria A. McCarthy ANNE E REX LLC 20 Sea Gull Trail Bald Head Island 28461 Agent: Anne E Rex ATLANTIC COAST LAUNDRY JACKSONVILLE LLC 3819 Park Ave Wilmington 28403 Agent: GM Entity Services Inc. ATLANTIC COAST LAUNDRY WILMINGTON LLC 3819 Park Ave Wilmington 28403 Agent: GM Entity
Services Inc. ATLANTIC SIERRA LLC 66 Reston Bluff Hampstead 28443 Agent: Andrew Smith B&L CRAFTSMEN LLC 2740 Pinecrest Dr SE Southport 28461-8488 Agent: Lawrence Pollare BAD COMPANY FREELANCE & OUTFITTERS LLC 315 Hedingham Lane Wilmington 28412 Agent: Mitchell H. Stone BARON N626H LLC 4345 Airport Rd Southport 28461 Agent: Jessica Ward BE SWEET BAKERY LLC 1727 Pepperwood Way Leland 28451 Agent: Tria Brown BEEGEEZUS HOT SAUCE LLC 4913 Pleasant Oaks Dr. Wilmington 28412 Agent: Theresa Walsh BIRDBROS PROPERTIES LLC 6404 Amsterdam Way Suite 500 Wilmington 28405 Agent: Bobby Lee Lancaster Jr. BKD SERVICES LLC 110A Egret Landing Ct Surf City 28445 Agent: William A Pitts III BLUE HERON REAL ESTATE LLC 500 Sericea Court Wilmington 28412 Agent: Rebecca LaForest BLUE RIVER VALUE CAPITAL LLC 1904 Eastwood Road Suite 302 Wilmington 28403 Agent: Christopher Bennett BLUEWATER SERVICES LLC 4408 Mockingbird Ln Wilmington 28409 Agent: Taylor Treanor BOHEMIAN HWY LLC 102 Seminole Trl Wilmington 27409 Agent: Blair Genette Leach BOTANAS LOCAS LA COMADRE LLC 4606 Maple Ave Wilmington 28403 Agent: Crisatos Mendoza BOW CANDY INC. 5024 College Acres Drive Wilmington 28403 Agent: Drechsel Professional Painting LLC BROADWAY PLUMBING AND GAS LLC 536 Chattooga Place Dr Wilmington 28412 Agent: Alexander Scott Broadway BROTHERS LANDSCAPING & TREE
SERVICES CORP. 162 Richard Everett Rd Burgaw 28425 Agent: Jose Cruz Godinez BRUNSWICK BUTTERLIES INC. 4825 Oakview Drive Southport 28461 Agent: Shawn Lane BULK BANDIT WATER HAULING LLC 1590 Blockhouse Rd SE Bolivia 28422 Agent: Sean A. Snow C & C SEAMLESS GUTTERS & PRESSURE WASHING LLC 6041 Goshen Lane NE Leland 28451 Agent: Craig E. Hughes CABINET MEMBERS LLC 3819 Park Avenue Wilmington 27403 Agent: GM Entity Services Inc. CALABASH COTTAGES LLC 411 32nd St Sunset Beach 28468 Agent: James Rivell CAMMHBDC LLC 152 NE 11TH Street Oak Island 28465 Agent: Craig L Hartung CAMPERO LLC 610 Plum Nearly Lane Wilmington 28403 Agent: Diego Campero CANDI KOI STUDIO LLC 311 Judges Rd Unit 8a Wilmington 28405 Agent: Candis Smith CAPE FEAR STONEWORKS LLC 1319 Military Cutoff Road Suite Cc #304 Wilmington 28405 Agent: Carlstedt CAPTAINJAMESROSS LLC 417 Lakeview Dr. Hampstead 28443 Agent: James A Ross CAROLINA BOAT FUEL INC. 806 Bailey Harbor Lane Wilmington 28411 Agent: Maura Patton CAROLINA DOG SPORTS LLC 117 Maypop Lanw Wilmington 28412 Agent: Deborah Russ CELINE BAREFOOT LLC 323 Chablis Way Wilmington 28411 Agent: Celine Barefoot CHUBBIES LIMITED 253 Bonnet Way Southport 28461 Agent: Charles Geisel CLAY HILL FARMS NC LLC 7695 Clay Hill Rd SE Winnabow 28479 Agent: David J. Bloch COACH MARTIN REALTY LLC 6027 Willow Glen Drive Wilmington 28412 Agent: Anthony J. Martin
Greater Wilmington Business Journal
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October 2 - 15, 2020
Page 17
ful DISCUSSIONS Sponsors’ Content Distributed By Greater Wilmington Business Journal
DESIGN AND BUILD OR RENOVATE – WHICH IS BEST FOR MY BUSINESS? liken ourselves to an orchestra leader working with a group of well-trained composers and musicians. It is our responsibility to determine the goals of the owner and meet the owner’s budget and scheduling expectations. We keep the planning process moving in the right direction. The result is a smooth construction process.
Would renovation still afford me the opportunity to customize the space to meet my business’ needs?
chambliss-rabil.com 910.350.0554 YATES CHAMBLISS VP, Business Development & Projection Operations, Chambliss & Rabil Contractors, Inc.
NORMAN CHAMBLISS III Owner/COO, Chambliss & Rabil Contractors, Inc.
What should I consider when making the choice to build a new building or renovate an existing commercial space? The decision to build or renovate can be complicated. When it comes to making real estate decisions, it always boils down to location. That is followed by cost. We do a lot of work with physician groups, dentists, and veterinarians. In the medical field, an existing practice may not want to take the risk of moving to a new location even if their office is outdated. Similarly, a shop keeper may have found that “one of a kind” building in a perfect setting that has become an integral part of the business’s charm and reputation. If you don’t need a significant amount of special features, renovation can be faster and less expensive; especially if you do not have to use the space during renovation. New construction offers total freedom over location, design, and specialty features. New construction can take advantage of design and engineering in order to control critical items like energy consumption and can make better use of advances in building materials that can provide a longer life cycle and require less maintenance costs.
Considering new construction seems complex. How can Chambliss & Rabil help the process run smoothly if I were to proceed with a new build? Construction becomes more complex when the goals of the owner are not clear or if the design and construction team is not working together efficiently. We stress effective design and construction teamwork from start to finish. In new construction, you start with a clean sheet of paper. You can control design and features. We stress to our staff, clients, and design team that a successful construction project starts tracking in that direction long before construction starts. The outcome of the pre-construction phase defines the success of the project. As our projects move through pre-construction into construction, we
In most cases, renovation affords the owner the opportunity to customize an existing space to meet their needs. There may be limitations. Existing conditions may dictate that the path we have to take to achieve the owner’s requirements are challenging and costly. There can be unknowns and surprises. A surprise leads to added costs. Renovating an existing space can require extensive retrofitting. The cost of upgrading the plumbing, electrical, HVAC and finishes can be high. The cost of building code compliance, environmental remediation, exterior improvements, and roof repairs can wreck a budget. An owner may get significant benefits from renovating. You can typically complete a renovation project in less time. If the building is in good shape and your requirements are not in conflict with the space, costs could be significantly less than new construction. If you love the location, that’s even more reason to accept the limitations, risk the unknowns and start renovation.
What can I expect Chambliss & Rabil’s “design and build” service to include? In the Design-build method of delivery, you can expect Chambliss & Rabil to coordinate everything from early planning through pre-construction and construction. Our clients often want our input in qualifying a potential site from a feasibility and development cost standpoint. In Design-build, the construction team is assembled early to work directly with the architect and engineers during the design phase. Budget development and review starts early. This delivery method creates a collaborative environment for the design and construction team to provide the best building possible at the most efficient cost while reducing construction time. Potential design concerns and conflicts can be identified and mitigated during the pre-construction period. The team works side by side through design, budget development and into construction. When construction starts, everyone knows their role. The results are a smooth project that finishes on time and in budget.
I’m still managing my business while I upgrade my space. How can Chambliss & Rabil help me stay involved and informed during the construction process? That’s an important question with a simple answer. Feeling involved and informed comes through effective communication (and lots of it). With today’s technology, there is no excuse for our clients to feel left out or uninformed. At Chambliss & Rabil, we provide a weekly snapshot of the project (past, present and future), with photographs. We identify items that require attention and decisions. We address the schedule. The client can stay at work, at home or on vacation and feel involved and informed.
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Chef Ryan Trotter and local business owner and radio personality Jason “Foz” Fosdick have partnered in a new meal delivery venture, Point Break. It’s designed to take the stress out of putting a healthy, flavorful meal on the table by offering free delivery and meal subscription options. “I wanted to provide healthier takeout options,” Trotter said. Orders for family bundles that feed two to four or four to six can be placed online and currently include a choice of Point Break Original or Jamaican Jerk Grilled Chicken Wings, Sand Dollar Potatoes, Surfer Salad and Grilled Chicken Wrap, along with house-made dipping sauces. On Fridays, Point Break delivers to area businesses, with lunchtime meals for $9.99 per person, with a five-person minimum. Trotter and his director of operations, Stacey Hays, prepare the meals at their Castle Street kitchen and plan to roll out additional menus, including breakfast options in the coming weeks.
New chef takes the helm at Grand Cru Food & Wine James Dolce has recently been named executive chef at Grand Cru Food & Wine at Lumina Station. Prior to accepting the Grand Cru position, Dolce worked for the Cape Fear Country Club and Fat Tony’s in downtown Wilmington, as well as several family-run restaurants in his native upstate New York. Dolce said he was inspired by the challenge of working with a new customer base at a restaurant specializing in high-end food and wine. He was also eager to accept the challenge of working in a new style of kitchen – one that has no open flame and utilizes induction cooktops, as well as convection and Alto-Shaam ovens. Dolce spent his first week under the direction of former executive chef Joseph Heskin, who helped him navigate the equipment and trained him on some of the restaurant’s most popular dishes, which Dolce plans to keep on the menu.
But he rolled out a new menu with his own spin that features local seafood that is delivered fresh daily from Intracoastal Seafood, and seasonal ingredients. One of his favorite fall foods is sweet potatoes, which are in three new dishes: seared scallops with a sweet potato puree, broccolini and a slow cooked bourbon bacon jam; a sweet potato and spinach risotto with parmesan cheese; and a sweet potato crème brulee.
Extended time provided beach’s farmers market Wrightsville Beach Farmers’ Market has announced plans to extend its season through mid-December. It’s the first time the market has ever been extended, according to market manager Katie Ryan. Ryan said because of COVID-19, the market opened a few weeks later than usual, but has been very well received throughout the summer. Ryan presented the idea to the Wrightsville Beach Parks and Recreation department’s advisory board and they voted to extend the market through Dec. 14 instead of ending it at the end of September. Ryan said that the majority of her vendors were eager to stay on through December, particularly because so many of the fall festivals that they normally participate in have been canceled.
On Grace Street, Tacobaby opened by Rumcow owners Rumcow owners Joseph and Abigail Sena, along with partner Ivan Moore, have opened the doors to their newest concept, Tacobaby, 124 Grace St. Joseph Sena said he received notification of the building’s availability in early spring and that it was a site he’d had his eyes on for a while. The menu is built around slowcooked foods like duck confit, braised short ribs and pork belly incorporated into tacos and topped with fresh fruits, vegetables, cheeses and salsas. Chef Jose Garcia, a third generation cook from Oaxaca, Mexico, heads the kitchen at Tacobaby. For now Tacobaby will serve dinner Tuesday through Saturday, starting at 5 p.m., with plans to open for lunch once Phase 3 of reopening is in place. - Jessica Maurer
Greater Wilmington Business Journal
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October 2 - 15, 2020
Page 19
| BUSINESS OF LIFE | Panacea Brewing taps into growth BY SHEA CARVER ealth is at the forefront of all Panacea Brewing Company offers the community. Founded in 2016, Panacea originally started as a company churning out locally brewed kombucha. Artie and Robin Hill sold the fermented elixir at local farmers markets out of their Boochbus — a custom-built tap system installed in their 1975 Volkswagen Westfalia. Panacea eventually parked its wheels on Eastwood Road in 2017, continuing to roll out new flavors over three years, and by early 2020 had expanded its taproom into a fullscale eatery. Panacea grew into a new spot at 4107 Oleander Drive, where the staff continues perfecting nonalcoholic kombucha, plus hard kombucha (beer) and a vegan menu. “As busy entrepreneurs and parents, we noticed our diets and health had suffered since opening our business,” Robin Hill said. “We wanted to make a choice that was more sustainable for our own health going forward, so part of choosing a plant-based menu was selfish.” Yet, the Hills also polled the community on its wants and needs, and found many of their customers responded quite well to going 100% vegan. “Although it was risky, and a little bit outside our wheelhouse at the time, we decided we would commit . . . both for our health and to meet the needs of the community, and we couldn’t be happier with our choice,” Robin said. In March, as the brewery and restaurant was planning a St. Patrick’s Day celebration, COVID-19 stopped the nation in its tracks. Panacea closed for three weeks, and the owners re-evaluated how to operate in such precarious times. Reorganizing became top priority. They pulled from storage their old taproom bar to place at the front door for to-go orders and installed a three-sink system across from their relocated kegerator for easier access to kombucha refills. They also began offering family meals, like Chicky Fajita Box (spiced soy-based chicky strips served with brown rice, fresh grilled peppers, onions, seasoned black beans, pico de gallo, served with a fresh bag of fried tortilla chips) and their Mac and Cheese Box (choice of gluten-free pasta or Cavatappi, tossed with
H
PHOTO BY MICHAEL CLINE SPENCER
Brewing success: Artie (from left) and Robin Hill are shown at Panacea Brewing Company, along with Head Chef Dennis Myers, Head Brewer Alex Urquhart and Bethany Carpenter, event coordinator and social media assistant.
cheesy cauliflower cream sauce, and choice of either Beyond Sausage or roasted vegetables), each $14 to feed two people or $25 to feed four. “These were meals already cooked that included reheating instructions,” said Bethany Carpenter, social media manager and event coordinator. “We wanted to offer an additional way for customers to submit contactless payment, so now we have an online ordering system in place that features daily specials. It was an adjustment we had to make due to COVID-19, but one we’ll gladly keep, even after the health crisis is over.” Although projected 2020 sales are down, according to the Hills, Panacea’s kombucha business, both retail and wholesale, has remained stable—it makes up half of all sales. Because the Hills reinvested in their restaurant’s infrastructure, expenses are higher than anticipated for the fiscal year. “We were forced to lay off restaurant staff to stay in the black,” according to Artie. “Sales are steadily climbing again, but are not to preCOVID levels, and can’t possibly be until capacity restrictions are lifted.” Right now, Panacea operates at
50% capacity for dine-in customers. Their chef, Dennis Myers, has continued to edit the menu to appeal to their mission of serving fresh flavors and healthful options. “Our most recent changes are gluten-free options and insignias on our menu to help customers easily identify the items that fit their dietary guidelines,” Myers said. “Our most ordered and enjoyed item remains the plant-based burger on our housemade vegan brioche bun. . . . served with our signature beetroot ketchup, fire cider pub sauce and our fermented Kosher dill pickle spear.” Myers works with the Impossible and Kind Culture brands to appeal to all palates. He keeps ingredients locally sourced as much as possible and rotates specials often. Panacea added brunch most recently on Sundays, available from 11 a.m. to 3 p.m., which includes scrambles, burritos, plus French toast and sweet-potato pancakes. “We are looking to expand the offerings with local coffees and maybe even offer [brunch] more than just on Sundays,” Myers said. Eighty flavors of kombucha are switched out regularly, too. Summer
HOW PANACEA BREWING COMPANY MAKES KOMBUCHA
“
Our kombucha is made by first brewing sweet tea, then we introduce the SCOBY (Symbiotic Culture Of Bacteria and Yeast) to the sweet tea along with ‘starter’ kombucha from the previous batch. This process kickstarts the fermentation of the new tea batch. The SCOBY then starts to consume the sugars that are in the sweet tea and turn them into probiotics that are good for our gut and certain acids that lead to its sour taste.” ALEX URQUHART Panacea Head Brewer saw the popularity of Panacea’s piña colada flavor, while the fall equinox’s recent arrival is welcoming more cozy tastes, like sweet potato pie, mulled apple cider, caramel apple and plum chai. The hard kombucha also will have new flavors soon, including cranberry-ginger and raspberry limeade.
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