FORWARD Florida | June 2015 by Forward Florida

ECONOMIC DEVELOPMENT IN THE SUPER REGION

You Seek. We Find. Meet Dehryl McCall

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As a Director of Business & Workforce Development, Dehryl works closely with industry, workforce and economic development, education and other partners to help identify and build talent solutions for Floridaâ&#x20AC;&#x2122;s businesses. Let Dehryl and the CareerSource Florida network help your business meet its talent goals.

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CELEBRATING THE CORRIDOR’S 20TH ANNIVERSARY … We reflect on a number of achievements that this regional economic development initiative has generated over its long partnership. But perhaps the greatest number of all lies in the dollars of economic impact stemming from The Corridor’s signature Matching Grants Research Program. Using dollars invested in us by the Florida Legislature, our three partner universities – the University of Central Florida, University of South Florida and University of Florida – have measured the downstream impact of applied research projects conducted with local high tech companies … translating to an economic impact of $1,177,009,159. That’s a number worth celebrating.

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I.C.Y.M.I.

SOCIAL MEDIA

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in case you missed it

Artist rendering of Brickell City Centre in Miami, courtesy of Swire Properties Inc.

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Banking on Brickell BRICKELL an international banking center? Activity just south of downtown Miami is starting to suggest the answer is, yes. The streets of this urban neighborhood aren’t paved in gold and they don’t measure up to New York’s Wall Street or even those in Charlotte. But it could only be a matter of time. An unofficial count puts the number of banks in Brickell at more than 50, and employment in finance, insurance and real estate represents nearly 20 percent of total jobs within the zip codes of 33129, 33130 and 33131. Brickell is also pulsating with bars, restaurants and cool cafes, while literally rising in prominence with new skyscrapers. Two years ago, Brickell reportedly had more than two-dozen tall buildings in planning or development. Among the newest coming to life these days is BRICKELL CITY CENTRE, a $1.05 billion mixed-use development under construction. More than 5 million square feet of office, residential, hotel, retail and entertainment space are planned. With all due respect to nearby picturesque Biscayne Bay, there are real economic factors that point to Brickell’s emergence, including no city or statewide income tax; growth-oriented land use policies; strong economic freedom fostering wealth accumulation; and the area’s ethnic diversity, roughly 70 percent Latino. Increasingly, Brickell (and Miami) is viewed as a safe haven among them. Brickell also houses a large share of the state’s foreign consulates — from Great Britain, France and Switzerland to Argentina, Brazil and Chile. The result: Brickell is not just on the South Florida map; it’s gone global.

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Duke Energy Pipes Up The SABAL TRAIL pipeline from Alabama to Central Florida has scored a new investor and a new customer. And they both happen to be DUKE ENERGY. The electric utility has purchased a 7.5 percent share in the $3 billion project for $225 million. The 36-inch, 500-mile pipeline will connect to the Transco pipeline carrying natural gas from the Gulf of Mexico. Duke Energy plans to siphon up to 293 million cubic feet of natural gas daily for its proposed 1,640-megawatt Citrus County Combined Cycle plant. This would make Duke one of the largest customers to contract from the Sabal Trail pipeline. With an option to purchase

up to 98 million more cubic feet daily, the utility could eventually account for more than 35 percent of pipeline capacity. Notably, Natural gas plants generate 62 percent of Florida’s electricity. The pipeline’s other major customer will be FLORIDA POWER & LIGHT. Its parent company, NEXTERA ENERGY, owns 33 percent of the project. SPECTRA ENERGY, principal owner and builder, owns 59.5 percent. Spectra Energy was part of Duke Energy until 2007, when it became a separate entity. For Duke, this is the second of two pipeline investments. It is also putting up to $2 billion into the ATLANTIC COAST pipeline, which is not expected to be

complete until 2018. Construction of the Sabal Trail pipeline should start later this year for completion in 2017. Electricity customers will not be charged for construction of either pipeline.

Space Coast Rocks

Bon Appétit If it weren’t already, Florida is becoming a real foodie state. More and more chefs are moving out from behind their aprons and becoming celebrities. Dollars, meanwhile, continue to flow into restaurants like house Merlot during a Wednesday wine-down night. Just to drop a few names, Miami has MICHAEL SCHWARTZ (Michael’s Genuine Food & Drink), MICHELLE BERNSTEIN (Michy’s, Crumb on Parchment) and NORMAN VAN AKEN (Tuyo) plus a bunch of chefs who have turned into rock stars as a result of appearing on TV competitions. Even excluding the big hotels, Orlando has EMERIL LAGASSE, of course, along with KATHLEEN BLAKE (The Rusty Spoon), BRANDON MCGLAMERY (Luma on Park), and JAMES AND JULIE PETRAKIS (Ravenous Pig, Cask & Larder). Most recently in Tampa, the duo of MICHAEL MINA AND DON PINTABONA have a new venture, Farmtable Kitchen. And to sweeten things up, it was just announced that CAKE BOSS BUDDY VALASTRO is opening a new bakery at The Florida Mall in Orlando this summer. It will be part of the mall’s new Dining Pavilion featuring 27 shops and restaurants. No chef surprises here. In 2015, Florida’s restaurants are projected to post a record $36.4 billion in sales. At the same time, the nation’s restaurant industry is on course to set landmark numbers with

SPECTRA ENERGY

Large diameter pipeline construction will be used in Sabal Trail.

more than $709 billion in sales this year, according to the National Restaurant Association. Diners clearly are the big winners, but the state’s economy is feasting, too. For each $1 million spent, Florida restaurants generate an additional 24.4 jobs in the state. Already, restaurants account for 943,600 jobs statewide, about 12 percent of total employment. And more growth is on the menu. In 2025, restaurants in Florida are projected to employ 1,155,300 people — 22.4 percent job growth over the present tally.

MICHAEL'S GENUINE FOOD & DRINK

Florida offers a tasty menu of top restaurants.

With all missions on its schedule successfully lifting off so far in 2015, CAPE CANAVERAL AIR FORCE STATION is on pace to defend its title as the world’s busiest spaceport. To date, SPACEX and UNITED LAUNCH ALLIANCE have combined for nine launches of U.S. military, NASA and commercial telecom satellites. There were 16 from the Cape last year, tied for the highest number there since 2003. This year, 24 missions are penciled in. Most of the launch activity is courtesy of SpaceX, with 14 planned. The first took place Jan. 10 when its medium-duty Falcon 9 booster took a Dragon capsule to resupply the International Space Station. Perhaps most noteworthy was the Feb. 11 launch of the Deep Space Climate Observatory, or DSCOVR. Later this year, the company plans to make the first launch of its new Falcon Heavy rocket. United Launch Alliance (ULA) has also been busy. Its year started on Jan. 20 when an Atlas V took the U.S. Navy’s third Mobile User Objective System communications satellite into orbit. It was the first of eight scheduled ULA missions from Cape Canaveral AFS. The most recent was May 20, when another Atlas V launched the Air Force’s X-37B Orbital Test Vehicle. ULA also launches the Delta II rocket and the Delta IV Heavy rocket, currently the world’s most powerful.

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Florida's Future for Sale Rhode Island is for sale. Well, not quite, but that’s about the size of the land up for sale along the Gulf Coast just south of the Florida Panhandle. The largest contiguous parcel of undeveloped private land east of the Mississippi River — 560,000 acres of forest owned by FOLEY TIMBER & LAND CO. — is expected to elicit $1 billion upon sale later this year. Foley Timber was formed in 1994 to acquire select Florida lands from PROCTER & GAMBLE. Now, it’s on the other side. The company has timber operations on the land that generate about $50 million a year. Today, however, the land sits squarely in a lonely corner of the state and offers a buyer the potential of development or selling development rights. Land conservation and sustainable development will be priorities. In Taylor County, which houses more than 60 percent of the land, Foley has a development plan in place with the county government for 128,000 of the acres, where roughly two-thirds is reserved for open space. The land certainly has a notable past. It has never been hit by a hurricane, and Proctor & Gamble harvested the trees and processed them at a nearby mill to make pulp for Pampers diapers.

Hedging All Bets With apologies to Horace Greeley and the cause of Manifest Destiny, hedge funds have caught the migratory fever and are loading up their wagons — albeit with office furniture — and pursuing new frontiers such as South Florida, which is viewed as being rife with opportunity (and wealthy residents). New York-based SKYBRIDGE CAPITAL joined those ranks in March when it added a Palm Beach Gardens office. The site will serve as regional headquarters for Southeast sales and marketing. The $12.5 billion firm attributes its decision to the encouragement of local economic development officials, highnet-worth potential clients and existing SkyBridge clients. London-based RWC PARTNERS then

JUNE 2015 • FORWARDFLORIDA.COM

A huge parcel of land is for sale south of the Panhandle.

announced in May it was establishing an Emerging, Frontier and Asia equity business effort, with a 15-person investment team previously at EVEREST CAPITAL, and opening a new office in Miami to support activities. In conjunction with the Miami announcement, the $10.1 billion firm announced plans to open an office in Singapore. These moves are part of a concerted initiative of local officials to attract high-volume investment firms to South Florida. The Miami Downtown Development Authority understood the possibilities in 2013 and launched its own campaign.

FOLEY TIMBER & LAND CO.

The first fruit emerged in April 2014 when UNIVERSA INVESTMENTS LP, and its $2 billion portfolio, relocated its Santa Monica, Calif., headquarters to Coconut Grove. The reasons for these moves aren’t the same as American settlers heading west in the mid-1800s. Yet, they are compelling. The families of top executives are attracted to the quality of life, year-round sunshine and good schools. Also, the firms are being enticed by cost-effective real estate options, financial incentives from local governments — with Gov. Rick Scott taking to the phones to assist — and no state income tax.

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Super Bowl Florida Bound? America’s premier sporting event, the SUPER BOWL, may be returning to Florida in 2019 or 2020. Miami and Tampa have been invited to join Atlanta and New Orleans in bidding for the game. There are reports Los Angeles could join the bidding for the 2020 game if there is a definitive plan to build an NFL stadium there and a team has relocated to the city. The winners will be announced next May. The Super Bowl usually gives the host city an economic boost. Arizona officials estimate the game brought $500 million to the Phoenix area, where the most recent game was played. By the time of the 2019 game, it will have been nine seasons since a Super Bowl was played here, the Sunshine State’s longest drought since the game first came here after the 1966 season. Florida has hosted 15 of the 49 Super Bowls played to date, or about one in every three. Miami is tied with New Orleans for the most popular destination, having hosted 10 games (five each in the Orange Bowl and what

is now Sun Life Stadium). Tampa has hosted four and Jacksonville one. However, the 2010 game in South Florida was the state’s most recent. Tampa hosted the game the year before. The next three (2016-18) are committed to Santa Clara, Calif., Houston and Minneapolis. Both South Florida and Tampa have been turned away twice since they last hosted. Tampa’s Raymond James Stadium lost to East Rutherford, N.J., for the 2014 game and Glendale, Ariz., for the 2015 game. Sun Life Stadium finished second in the bidding for the 2016 and 2017 games. Sun Life was rejected specifically because the NFL believed the stadium needed upgrades. Dolphins owner Stephen Ross committed $400 million to address the league’s concerns. The Tampa Bay Buccaneers, meanwhile, are negotiating with the Tampa Sports Authority and Hillsborough County on upgrades to Raymond James.

The coveted Vince Lombardi Trophy

Building What’s Next Throughout Florida From transportation systems to office and retail complexes. From entertainment facilities to hotels and schools. Our expert team of builders, craftsmen, innovators, creators and collaborators are building something special every day in Florida and throughout the U.S. CONSTRUCTION MANAGEMENT | DESIGN-BUILDER GENERAL CONTRACTOR | PUBLIC-PRIVATE PARTNERSHIPS CGC 1511059

CONSTRUCTION MANAGERS

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PROSPERITY by PARTNERSHIP

How will we build a more prosperous region? Regional Action Transportation

Advance Connectivity and Access

Sources of Capital

Position Region as a Center for Innovation and Investment

Florida’s Super Region

Unify and Champion America’s 10th Largest Economy

Talent Pipeline

Attract, Cultivate and Retain Talent – Cradle to Career

International Business

Export to the World via Local-to-Global Trade

Supporting Role Central Florida Water Initiative Central Florida Commission on Homelessness Metro Orlando Defense Task Force (MS&T)

@CFLPartnership #IdeasToResults

Join us by investing in our region and moving our community forward. Call Amanda Muley at 407.835.2512 or find out more at IdeasToResults.org.

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HARRIS TECHNOLOGY CENTER

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DEFENSE

Defense-related businesses in Florida generate $73 billion in annual economic impact and 758,000 jobs, mostly in higher paying STEM-related fields, such as science and engineering. Earlier this year, HARRIS CORPORATION celebrated its new $130 million Harris Technology Center in Palm Bay. The 464,000-square-foot facility will serve as the company’s Florida innovation technology hub, with more than 1,400 engineers, scientists and staff. On May 29, the company closed on its acquisition of Exelis, a McLean, Va.based aerospace, defense, information and services company, estimated at $4.75 billion. Exelis shareholders voted overwhelmingly in favor of the merger. Exelis CEO and President David F. Melcher issued a statement in late May: “The vote today shows our shareholders understand that together, Harris and Exelis will be better positioned to compete more effectively and profitably in the global marketplace.” The newly combined companies will generate $8 billion in annual revenue and employ 23,000 globally.

JUNE 2015 • FORWARDFLORIDA.COM

The newly opened $130 million Harris Technology Center in Palm Bay is the company’s 464,000-square-foot innovation hub for more than 1,400 engineers, scientists and staff.

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LIMBITLESS UNLIMITED

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JOBS THE GREATER FORT LAUDERDALE ALLIANCE had a goal of 1,200 new value-added jobs in Broward County for the fiscal year ended Sept. 30, 2014. The group also had penciled in 20 projects and $50 million of capital investment. The actual recently released tallies: 21 projects and $267.8 million in capital investment, resulting in 1,412 newly created jobs. In addition, the primary economic development organization for Greater Fort Lauderdale/Broward County retained 5,320 jobs, far eclipsing its goal of 1,000.

The PENSACOLA-FERRY PASS-BRENT metro area might never be confused with a sprawling metropolis. Yet, it is showing impressive signs of economic life — gaining 4,900 new jobs in April 2015, year over year. Also, the area’s unemployment rate decreased by 0.7 percentage point over the year to 5.0 percent. Gov. Rick Scott called the news further evidence that Florida is the most business-friendly state in the nation. Industries with the largest job gains in Pensacola: education, health services, leisure and hospitality, trade, transportation, utilities and financial activities.

TECHNOLOGY The headline of the press release earlier this year read “HITACHI DATA SYSTEMS Announces Intent to Acquire PENTAHO to Deliver More Value from Big Data and the Internet of Things That Matter.” What was later learned: Orlando and its steadily developing tech industry were big winners, too. That’s because when the HDS deal is finalized in June for between $500 and $600 million, there are plans to keep Pentaho’s headquarters in Orlando. In late April, spokesperson Katie Watson said, “HDS wants to retain Pentaho talent. …HDS does not anticipate any

Actor Robert Downey Jr. presents young Alex Pring with a new Limbitlessproduced arm with an Iron Man design. Pring was the first recipient of a 3D arm produced by UCF students.

office changes.” Pentaho has a second U.S. location in San Francisco and four others in Europe. The acquisition, the largest private big data acquisition transaction to date, was labeled a transformational event for the industry — one that would accelerate enterprise adoption of big data technologies and solutions through easier, faster deployment, leading to faster ROI. With only a name change to “Pentaho, a Hitachi Data Systems company,” the brand is being maintained, as is the executive leadership. And the Orlando presence.

To infinity and beyond. Apparently, that’s the destination of the University of Central Florida student-led LIMBITLESS SOLUTIONS, which formalized a partnership with UCF to create a hub of innovation that will blend engineering, art and medical science, and ultimately estab-

lish a worldwide resource for 3D printed biomedical solutions. The Center for Applied Biomedical Additive Manufacturing, or CABAM, establishes a research facility and a marketplace to provide standardized, cost-effective, innovative, creative and functional biomedical solutions. The UCF College of Engineering and Computer Science and the College of Medicine will provide space, faculty mentors and expertise to CABAM. UCF’s Venture Accelerator and the Office of Technology Transfer will facilitate the process of taking new discoveries made at the center to commercial development. In March, Limbitless Solutions saw a surge in requests for help when ROBERT DOWNEY JR., a.k.a. Iron Man, featured the group in a short video on his Facebook page. The video was watched more than 50 million times. The team has been flooded with requests from more than 40 countries by virtue of Facebook and global media attention.

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STRAIGHT UNDERLINE

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RECREATION

Miami-Dade County officials want to go above and beyond with the UNDERLINE. A proposed 10mile stretch underneath the Metrorail from the Miami River to Dadeland South is earmarked for pedestrians, bike riders and recreation. James Corner Field Operations was selected as master planner. The firm is noted for success with High Line linear park in New York City, built atop an abandoned elevated railway in Manhattan. Essentially, the economic plan is to use leftover land owned by the public and return it to the community in a way that can raise property values and heighten use. The New York project had a $2 billion economic impact and attracted 4.5 million visitors in 2012, according to reports. The University of Miami School of Architecture created preliminary renderings, and a design concept is due from Field Operations in September. This could be the start of something new in the area. Metrorail’s elevated rapid transit system contains 25 miles of dual track.

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BUSINESS For the fourth consecutive year, Florida has claimed the No. 2 spot in the nation for CEOs to do business. In the 11th annual survey results released by CHIEF EXECUTIVE magazine, 511 CEOs rated states on taxes and regulations, quality of the workforce and living environment. Texas was No. 1, with North Carolina No. 3 and rounding out the top five: Tennessee and Georgia. California took last place for the 11th consecutive year. As a state with more and more resources for women business owners, the FLORIDA SMALL BUSINESS PERSON OF THE YEAR award winner was CAROL CRAIG, founder, CEO and CFO of Cape CAROL CRAIG Canaveral-based Craig Technologies. She chose to relocate to Florida’s Space Coast in large part due to the talent pipeline for her engineering and advanced manufacturing firm. Craig made the Sunshine State proud when she was named runner-up for the 2015 NATIONAL SMALL BUSINESS PERSON OF THE YEAR in Washington in May.

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M A N U FA C T U R I N G W E A L T H

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ENTREPRENEURSHIP The Florida Venture Forum recorded its largest pool of applicants for the Early Stage Capital Conference, ultimately selecting 19 Florida-based companies to present and two companies to exhibit at the May 14 event in St. Petersburg. Those companies featured some of the state’s best prospects for attracting equity financing. As a sampling, among the chosen: BLACKDOVE, a Miami-based global motion art marketplace and distribution platform, enables Internet connected television and display screens to receive curated, customizable content streams of digital motion art. NEURONET LEARNING of Gainesville has created a suite of educational software programs that facilitate learning through movement, an approach based on recent advances in neuroscience that inform how the brain creates and strengthens neural networks through experience and purposeful practice. SWARMIFY, located in Melbourne, has patent-pending technology that can break a video into pieces and then make real-time decisions to load the video from different source locations without the use of plugins, downloads or installs. And, CHUI in Siesta Key offers an intelligent doorbell using facial recognition and proprietary technology to replace traditional doorbells and add mobile functionality.

Womenpreneurs! New name, new locations and new award. The FLORIDA INSTITUTE OF TECHNOLOGY has changed the name of its Women’s Business Center to weVENTURE. The new brand reflects a growing network of business centers in Central Florida, including the opening in downtown Orlando at the Canvs coworking space in March. Florida Tech received a five-year grant of $750,000 from the U.S. Small Business Administration to open the Orlando center, which is modeled after its centers in Melbourne and Rockledge.

The Florida TRADE Consortium has launched a statewide campaign to place 1,000 students into MANUFACTURING JOBS by April 1, 2016. The consortium — a group of 12 state and community colleges — has started the DRIVE TO 1,000 CAMPAIGN, working in conjunction with MANUFACTURING CareerSource Florida, Florida Department of Economic Opportunity and the Manufacturers Association of Florida’s Center for Advanced Manufacturing Excellence. The message: Today’s manufacturing is high skill and high wage, and companies are looking for employees who seek meaningful careers. Florida is home to approximately 14,500 manufacturers that employ nearly 329,000 people, according to Enterprise Florida, which projects substantial growth, particularly in the two largest manufacturing sectors: medical equipment and supplies along with aerospace products and parts.

“We serve clients from all industry sectors from startup to growth. weVENTURE amplifies the economic impact of women entrepreneurs by helping them accelerate growth and job creation,” said weVENTURE’s Executive Director Beth Gitlin. In May, weVENTURE was awarded the 2015 U.S. Small Business Administration Southeast Region Women’s Business Center of Excellence Award.

VENTURE CAPITAL Florida companies have struggled to find the capital needed to accelerate operations. Since 2010, 70 percent of financing considered “major” has gone to three states (California, Massachusetts and New York). Also, while the 2014 MoneyTree Report cited that venture capitalists placed $862.5 million into 45 Florida funding rounds in 2014 — more than double the dollar total of 2013 and the strongest year since 2001

— Florida’s slice of the venture capital pie was less than 2 percent. However, the winds of change could be starting in the state (along with equity firms). A total of 37 private equity firms were headquartered in Florida last year, 10 more than in 2010, according to CASSEL SALPETER & CO., a Miamibased investment banking company. That might not seem like much, but the greater presence is a positive sign, because funds often prefer to be close to the companies in which they invest, cites Jim Cassel, co-founder of Cassel Salpeter. The upshot: More Florida businesses could be in line for capital and expertise they need to add jobs and grow, and remain in Florida. Call it a leap of faith. Last year, MAGIC LEAP, based in Dania Beach in Broward County, attracted $542 million, the third-largest financing round nationwide. The company creates augmented reality technology. Florida’s venture market is hoping for no such false perceptions.

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TRAINING WHEELS

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TRANSPORTATION

SUNRAIL, Greater Orlando’s commuter rail system, which just celebrated its one-year anniversary on May 1, is gearing up for its Phase 2 South Alignment. Officials announced they should receive $40 million from the federal government in September to begin construction by the end of the year on the 17.2 mile extension into Osceola County. The Federal Transit Administration will need to sign a full-funding agreement this summer for the $186 million expansion. Currently SunRail consists of 31 miles with 12 stations connecting Volusia County and Orange County through downtown Orlando. SunRail is the state’s second commuter rail system after Miami’s Tri-Rail.

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Coral Gables-based ALL ABOARD FLORIDA took another step toward starting passenger train service that connects Miami to Orlando by naming a signaling equipment contractor for the privately funded $2.5 billion train. GE TRANSPORTATION systems will design and manufacture the signaling equipment for the system, which already is under construction in South Florida. GE Transportation’s teams in Melbourne and Jacksonville will lead the high-tech signal design and engineering, and a plant in Warrensburg, Mo., will manufacture the equipment. All Aboard is investing $1.5 billion into improving the existing freight corridor in South Florida and will build a new 30-mile track from Cocoa to Orlando International Airport. GE Transportation will perform a big chunk of this work, including upgrades to grade crossings, communications with approaching trains, gate opening and closing systems, and regulation of train-crossing times. All Aboard Florida will run 235 miles from downtown Miami to Orlando with stops in Fort Lauderdale and West Palm Beach. Initial service from Miami to West Palm Beach is set to begin in late 2016, followed by service from West Palm Beach to Orlando in 2017.

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B E E T L E S C O M I N G T O JA X P O RT

EDUCATION

LOGISTICS

JULIO FRENK, dean of the Harvard T.H. Chan School of Public Health, is on his way to Coral Gables and the UNIVERSITY OF MIAMI. Frenk officially becomes Miami president on Sept. 1, replacing Donna Shalala, who has held the post since June 2001. At Harvard, Frenk was named dean in January 2009 and led JULIO FRENK significant physical expansion as well as enhanced international reach, along with revamping of the curricula. From 2000 to 2006, Frenk was Mexico’s minister of health, where he established a comprehensive health insurance program (Seguro Popular) that expanded access to health care to millions of previously uninsured Mexicans. Miami selected a “world-renowned scholar and leader as its next president,” according to Stuart A. Miller, chair of the University of Miami Board of Trustees.

Expect to see more of the ubiquitous VOLKSWAGEN logo again in and around Jacksonville. The Volkswagen Group of America is moving its import facility and Southeastern U.S. distribution center to the PORT OF JACKSONVILLE, as announced earlier this year. Jacksonville Port Authority also committed nearly $18 million in incentives to the group, while the state agreed to provide $16 million for capital infrastructure improvements. In the 1960s, Jaxport was used as a Volkswagen import site before a plant in Pennsylvania took over those activities a decade later. With the latest move, which MAYOR ALVIN BROWN called “a vote of confidence,” a renovated plant and properties will be used to receive and process factory-new Volkswagen, Audi and Bentley

The NATO MODELLING & SIMULATION CENTRE OF EXCELLENCE, based in Rome, and EMBRY-RIDDLE AERONAUTICAL UNIVERSITY in Daytona Beach have signed a technical agreement that marks the beginning of a program of cooperation in research and education. The Modelling & Simulation Centre of Excellence will establish internships, mutually beneficial research projects and other activities with Embry-Riddle students and faculty to promote the Centre’s work for NATO and member nations in support of operational requirements, training and interoperability. This agreement is the first of its kind with an American university and NATO’s M&S COE, and will encompass computer engineering, computer science, software engineering, unmanned aircraft systems operations and communications programs.

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vehicles. Volkswagen, Audi and Bentley expect to transport 100,000 cars within one year, and approximately 550,000 units in the next five years.

The big get bigger, even in a small place. AMAZON has announced plans to double the operational capacity of its RUSKIN WAREHOUSE in south Hillsborough County and add several hundred full-time jobs. Last September, in a lonely stretch of land just off Interstate 75, Amazon opened a $200 million, 1.1 million-square-foot fulfillment center, hiring more than 1,000 people. Space was reserved for future expansion, and, while an exact schedule hasn’t been announced, the plan is in motion with an eye on increasing product selection and delivery speeds.

Florida as the rocket launch capital of the world? That was the mission of SPACE FLORIDA and PARADISE ADVERTISING, DIGITAL & ENTERTAINMENT as they unveiled their national multimedia promotional campaign in May. The initiative, called WE ARE GO, AEROSPACE features the voice of MIKE ROWE, host of CNN’s Somebody’s Gotta Do It and Discovery Channel’s Dirty Jobs. The goal: To raise awareness that America’s space program is alive and strong, and that Florida is the premier destination to experience rocket launches. With an average of two launch events scheduled every month plus others coming, there are more rocket liftoffs in Florida than ever before, and state tourism entities are working to create launch viewing experiences. The campaign includes digital, social, broadcast, website and outlets such as National Public Radio, In Flight video, Facebook, Twitter and custom e-blasts, among others.

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HEALTH CARE THE UNIVERSITY OF FLORIDA RESEARCH FOUNDATION has presented DR. HUABEI JIANG, chief scientific advisor for a new medical device company Advanced fPAT Imaging Inc., with the INNOVATOR 2014 award for developing a new breast imaging and disease staging technology in the fight against breast cancer. Jiang is a Pruitt Family Professor of Biomedical Engineering at the University of Florida in Gainesville. The new imaging system uses his Functional PhotoAcoustic Imaging, or “f PAT,” to create high-resolution maps within the breast without x-ray radiation, compression or injections. Early clinical trials demonstrated the ability to see into dense breast tissue and to distinguish healthy tissue from suspicious or unhealthy tissue. Clinical studies have shown that dense breast tissue can make it harder to see tumors using digital and 3D tomographic mammograms. The new fPAT provides highquality images of the breast regardless of density. Worldwide diagnostic imaging is a

F I R S T VA H O S P I T A L I N 2 0 Y E A R S

$32 billion sector in health care, expected to increase to $49 billon by 2020. fPAT Imaging Inc. is located in Tampa.

MEDICAL CITY continues to expand near Orlando, and now it’s a gateway. With the opening of GATEWAY AT LAKE NONA in April, patients have convenient access at a single location to UCF HEALTH and FLORIDA HOSPITAL’s physicians, imaging center, laboratory services and rehabilitation program. The facility is being touted as an “innovative and collaborative model of health care that delivers a range of new providers and services.” In addition, patients can take advantage of the academic strength of the UCF College of Medicine’s practice, where all doctors are faculty physicians at the medical school. As a result of the partnership, Gateway Lake Nona is able to offer patients a seamless experience and give physicians increased opportunities to be connected with one another, according to Florida Hospital officials. The emphasis on collaboration extends into other

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areas, such as clinical data sharing, education and research. One distinction at Gateway is the physician’s workspace. Instead of working in their private offices, physicians will literally work together in an open space, which allows them to offer collaborative care.

In a $500 million cash deal in midMay, MEDNAX, a Sunrise-based medical company, announced its entry into telemedicine with the acquisition of VIRTUAL RADIOLOGIC CORP. based in Eden Prairie, Minn. Virtual Radiologic, also known as vRad, operates a network of more than 350 radiologists in 2,100 health-care facilities throughout the country and internationally. The company generates about $185 million in annual revenue. This marks the fourth acquisition this year for Mednax, which had $2.4 billion in revenue in 2014. Advancements in digital cloud sharing is transforming the field of radiology, paving the way for more outsourcing and opportunities for efficiencies and cost-savings.

The first new VA hospital built in the country in 20 years celebrated its official opening in late May. The ORLANDO VA MEDICAL CENTER at Lake Nona is expected to serve more than 400,000 veterans at the 65–acre, $665-million facility upon full completion. It features an advanced diagnostic center, 134-bed inpatient hospital, an emergency department, 120-bed nursing home, and a 60-bed rehabilitation and recovery center for homeless veterans. While delayed by several years, Central Florida veterans are happy to finally have the new facility, which will be fully operational by the end of the year.

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CYBER SAFETY LOCKS

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DOWNTOWN WEST PALM BEACH, here we come. That was the theme in mid-April as four of the biggest names in real estate detailed why they’ve invested so heavily in West Palm Beach, and what they expect for the next decade. The Urban Land Institute and West Palm Beach Downtown Development Authority hosted the event, which was presented by the Chamber of Commerce of the Palm Beaches. The chief reasons cited by representatives of companies RELATED URBAN, NAVARRO LOWREY and CYPRESS REALTY OF FLORIDA, along with developer JEFF GREENE: great vision and commendable leadership of city administrators, waterfront access, security, close proximity to Palm Beach International Airport, strong education options and mobility choices such as the upcoming All Aboard Florida. Respective projects include Greene’s two 30-story towers, one with Class A office space and the other with a hotel and luxury condominiums; Related’s rising Hilton West Palm Beach Hotel and a planned retail project; Navarro’s mixed-use project on an old city hall site; and Cypress Realty’s large development along the waterfront on the city’s north end.

The clustering of tech talent is a prime driver of demand for office space in both large and small markets across the U.S. and Florida is squarely in the middle of the action. Tampa ranked 36th and Orlando 47th among the strongest markets, while Fort Lauderdale ranked 48th and Miami 50th, in the recent CBRE Research report SCORING TECH TALENT, which assesses the top 50 U.S. markets based on their ability to attract and grow tech talent. Although tech talent comprises 3.4 percent (4.4 million workers) of the total U.S. workforce, the high-tech industry accounted for more major office leasing activity than any sector in both 2013 and 2014, the report revealed.

CYBERSECURITY Business leaders from across the country gathered in TAMPA in mid-May to discuss cybersecurity didn’t have far to look for related issues. Tampa is the No. 1 most hacked city nationwide, according to a study conducted by Enigma Software. Cybersecurity is an escalating risk to businesses around the world. Or, as Daimon Geopfert, a

REAL ESTATE

The tropical charm of West Palm Beach is luring major investments from some of the biggest names in real estate development.

national leader of security and privacy consulting for McGladrey LLP, described, “It is no longer a matter of if, but when, a company will experience a data breach. Cyber attackers will attempt to make money from any viable opportunity that crosses their paths, no matter the size.” By the way, Orlando ranked No. 2 on the dubious list, and Miami was No. 13. Why such a problem in Florida? There are numerous computer-illiterate retir-

ees and many computer-dependent young people in the state, the study cited. Further proof of concern: SPACE FLORIDA, the state’s aerospace and spaceport development authority, recently signed a three-year memorandum of understanding with the UNIVERSITY OF WEST FLORIDA CENTER FOR RESEARCH AND ECONOMIC OPPORTUNITY to further develop Florida’s cybersecurity technologies.

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hospitality & tourism |

spending in the sunshine state

The $300 million Skyplex coming to International Drive in Orlando.

The Sunshine State shatters tourism numbers, hosts a world record, and makes way for the tallest roller coaster on the globe.

ourism, a $70 billion industry in Florida employing 1.1 million residents, is hot indeed for the Sunshine State. According to preliminary estimates by VISIT FLORIDA, the state’s official tourism marketing corporation, 2014 brought 98.9 MILLION VISITORS, an increase of 5.1 percent from 2013. This marks the fourth consecutive record year for tourism in the state. “Anyone would be happy to see their business grow year over year. But it is absolutely amazing when an entire industry keeps beating record numbers, while adding jobs and supporting the rest of the state’s economy,” said Andrew Hertz, chair of the VISIT FLORIDA Board of Directors. The state’s hospitality mat greeted 11.5 million overseas visitors and 3.8 million Canadians. And the good news continues. Orlando claimed its own record in 2014 with more than 62 million visitors, making it the most popular destination in the country. Visitation grew 5 percent, local revenue hit $60 billion and a record 32 million room nights were sold in Orange County. “The travel and tourism industry is the largest generator of jobs and economic impact for our region,” said Orange County Mayor Teresa Jacobs. Orange County bed tax revenue supported construction of Orlando’s Dr. Phillips Center for Performing Arts and the Orlando Citrus Bowl

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renovation. Last year, the revenue topped $200 million. On top of it all, quite literally, a world record was also broken in late April atop the new 400foot observation wheel, known as The Orlando Eye. NIK WALLENDA, daredevil and member of the famous Sarasota Wallenda circus family, walked untethered on the spinning attraction, wet from rain that morning, making his feat all the more impressive. NBC’s Today Show broadcast the event live. Located on the famed 11.1-mile International Drive, The Orlando Eye is seeing huge growth in one of Orlando’s long-standing tourist areas. I-Drive 360 is a new $200 million entertainment complex that features Madame Tussauds (opened in early May), SEA LIFE aquarium and restaurants, clubs and shops. Future plans in the area include the iSquare mega-mall and hotel. And the popular I-Drive will also be featuring a $300 million SKYPLEX indoor entertainment complex being developed by Wallack Holdings that includes the Skyscraper, the world’s tallest roller coaster at 570 feet scheduled to open in 2016 and the 450-foot drop ride called SkyFall. Plans were announced in early May for an adjacent 350-room hotel and a restaurant to be located atop the Skyscraper, certain to offer a bird’s-eye view for patrons.

The oldest city in the U.S., St. Augustine, celebrates its 450th birthday this year. Its Castillo De San Marcos National Monument is part of the state's national park system, which had a $909.9 million economic impact in 2014.

Historic Birthdays One of the state’s premier tourist destinations turned 100 with a splash. The MIAMI BEACH CENTENNIAL CELEBRATION held on South Beach fittingly lasted 100 hours from March 22 to 26 and included concerts, fashion shows, tennis exhibitions and weddings. But on “America’s Riviera” the party won’t stop officially until Oct. 31. The economic impact of events such as Art Basel, Auto Show, Art Deco Weekend and SOBE Wine and Food Festival is so large it's difficult to quantify. And while the previous century was cause for celebration, city leaders are looking to the future with the groundbreaking later this year of the new Miami Beach Convention Center expansion. The $592-million project is expected to generate $2.5 billion over 30 years. An additional 70,000 square feet of meeting and ballroom space, a new 5.8-acre park with a veterans’ memorial plaza and 900 onsite parking spaces on the roof of the building are all planned. And the oldest city in the United States is having its own birthday in late summer. ST. AUGUSTINE turns 450 and its celebration is planned Sept. 4 to 8, including music and street festivals and a re-enactment of Pedro Menendez’s momentous landing at the Mission Nombre de Dios.

Marcos National Monument, De Soto National Memorial, Dry Tortugas National Park, Everglades National Park, Fort Caroline National Memorial, Fort Matanzas National Monument, Gulf Islands National Seashore and Timucuan Ecological and Historic Preserve.

Florida Beauty It’s not only Florida’s theme parks that draw visitors, but the state’s natural beauty scores big as well. More than 10.6 million visited NATIONAL PARKS in Florida in 2014, according to a report released in April by the National Park Service (NPS). They spent almost $628 million, generating 9,758 jobs and a cumulative economic benefit of $909.9 million. “Visitors come to have a great experience, and end up having an economic benefit to the communities they visit,” said NPS Regional Director Stan Austin. National parks in Florida include Big Cypress National Preserve, Biscayne National Park, Canaveral National Seashore, Castillo De San

Cruise Industry Forecast: Smooth Sailing Tallahassee-based Florida TaxWatch forecasts more growth for Florida’s cruise industry, already the nation’s largest. In 2013, more than 9 million cruise passengers sailed through state seaports, generating $7.3 billion in direct spending. The cruise industry supported 140,408 jobs statewide, more than half of U.S.-based cruise line employment. Florida is home to three of the world’s most visited cruise ports: PORTMIAMI, PORT EVERGLADES and PORT CANAVERAL, which is expected to become the world’s busiest cruise port by the end of the decade. It is also home of the two largest cruise ships in the world: Royal Caribbean’s ALLURE OF THE SEAS and OASIS OF THE SEAS.

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hospitality & tourism |

spending in the sunshine state

PHOTO BY CHIP LITHERLAND FOR LEGOLAND FLORIDA RESORT/MERLIN ENTERTAINMENTS GROUP

Bricks and LEGOS

Theme Park 411

The colorful 5-story, $26 million LEGOLAND FLORIDA HOTEL in Winter Haven’s Polk County celebrated its grand opening on May 15. The 152room hotel has more than 2,000 Lego models and more than two million Lego bricks. Located adjacent to the Legoland Florida Resort theme park that opened in 2011, it offers guests early morning access to the park. Kids can choose from four designs: pirate, adventure, kingdom and LEGO friends. Building blocks and fun for kids and adults alike.

KING KONG will be roaring back at Universal Orlando in summer 2016. Universal announced that Kong, the eighth wonder of the world, will be residing at Universal’s Islands of Adventure. The new ride will be based on the 2005 film Skull Island: Reign of Kong. Universal also announced a partnership with videogame maker NINTENDO for a new attraction. And Universal’s VOLCANO BAY water park, located on 50 acres south of its Cabana Bay resort, will open in fall 2016. The multiyear and multimillion-dollar transformation of Downtown Disney into DISNEY SPRINGS is in full gear. The 600-seat waterfront Boathouse restaurant opened in mid-April at The Landing, one of four neighborhoods that will comprise the shopping, dining and entertainment area of Downtown Disney more than doubling the number of venues from 70 to nearly 150.

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King Kong returns to Universal Orlando.

Bed Time in Panama City Voters in PANAMA CITY are reaping rewards from their approval of a 5 percent BED TAX levied in 2015. In the first quarter, the bed tax provided the Panama City Community Development Corporation a total of $351,399. Mayor Greg Brudnicki has expressed excitement to see future numbers. The bed tax is charged to guests staying in any of the more than 1,500 hotel rooms in Panama City.

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Patents, Trademarks, Copyrights, Litigation

innovations |

focus on research & education

U.S. Senator Bill Nelson and Secretary of Commerce Penny Pritzker announce funding for two initiatives that will advance innovation and capacity-building activities in regions across the country. Thomas O’Neal, director of UCF’s CIE, is in the background.

aining momentum for its continued leadership in innovation and commercialization, the University of Central Florida was awarded two federal grants, totaling up to $750,000, from the U.S. Economic Development Administration’s Office of Innovation and Entrepreneurship in April. The UCF College of Engineering and Computer Science and community partners raised an additional $750,000 in matching funds to supplement the EDA grants. Partners included Harris Corporation, the City of Orlando, Crossroads Investors, Canvs, Rollins College, Starter Studio and Creative Village Orlando, among others. The funding represents $1.5 million to help foster the culture of innovation throughout the Central Florida region. U.S. Commerce Secretary Penny Pritzker participated in a press conference at UCF to make the announcement, as part of the 2014 Regional Innovation Strategies program grants. UCF was one of 24 institutions to receive RIS program

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Community partners rally to generate $1.5 million in matching funds to continue fostering a culture of innovation throughout Central Florida.

funding, a new initiative designed to advance innovation and capacity-building activities in regions across the country, and one of only two universities to earn both an i6 Challenge Grant and a Cluster Grant for Seed Capital Funds. i6 CHALLENGE FUNDS

The i6 Challenge was launched in 2010 as part of the Startup America initiative and is now in its fourth iteration. i6 is a

national competition that makes small, targeted, highimpact investments to support startup creation, innovation and commercialization. Now that the i6 Challenge is included in the new Regional Innovation Strategies program, the funding will support more than just proof-ofconcept centers. Investments will also go toward the expansion of existing centers and in later-stage commercialization centers, helping innovators fine tune and scale their innovations to bring new products and services to the market. The total amount of funding nationwide for the i6 Challenge under RIS is nearly $8 million. The i6 Challenge funds in Central Florida will be used to extend the UCF I-Corps pilot program across the five economically challenged counties (Orange, Seminole, Osceola, Brevard and Volusia), and to help transition the region’s engineering workforce into high growth technology companies that design, manufacture and export innovative products through the Maker Spaces Proof Of Concept Center. This center will also leverage both the statewide Florida Cleantech Accelerator Network (FL-CAN, which was created through a former i6 grant) and the Osceola County Advanced Materials Research Center once it opens. STARTERCORPS FUND

The StarterCorps Fund will directly address the critical gap in seed funding, the largest barrier faced by the region’s technology entrepreneurs. The StarterCorps Seed Fund will directly serve the same five counties referenced above. Ultimately, UCF will raise, deploy and manage a $5 million evergreen StarterCorps Seed Fund to launch innovative technology and advanced manufacturing startups based in Central Florida. StarterCorps’ evergreen fund structure means all investment profits will be returned to the fund to be redeployed in future investments. StarterCorps will provide equity-based funding in a series of milestone-based investments. Milestones will be based on a team’s aggressive progress in transforming commercially viable prototypes (which were developed in Starter Studio and I-Corps programs) into viable technology companies that gain early market traction, have a complete founding team (business and technical skills), secure IP and can prove they are addressing an urgent market opportunity. UCF I-Corps helps teams of innovators go through all the necessary steps before taking an item to market and uses the UCF College of Engineering and Computer Science’s new Maker SpaceLab complex, created with industry partners to help them through idea, design and prototyping. Thomas O’Neal, director of UCF’s CIE, estimates that in the fifth year of the program 195 companies will be established, producing 1,730 new high-wage jobs through these teams. “We are working with regional community partners and industry to make Central Florida an epicenter for innovation, technology and entrepreneurship,” O’Neal says. “These grants will enhance our ability to help more future entrepreneurs across five counties. The awards are a validation and recognition of the Central Florida ecosystem and UCF’s role as the partnership university.”

THE CEO NEXUS CUP GrowFL recognizes Omega Medical Imaging for exceptional success in the niche medical market. GrowFL recently awarded the CEO Nexus Cup to Omega Medical Imaging, a world-class manufacturer of Fluoroscopic Imaging Solutions. The company, based in Sanford, was founded in 1991 and specializes in the niche market of interventional imaging. Examples of products include customized X-Ray C-arms and interventional endoscopy imaging devices. The CEO Nexus Cup is a member-recognition award, lauding those companies that have achieved growth and significant entrepreneurial success, in part due to their collaboration with CEO Nexus, a service group headquartered in Winter Park that helps second-stage companies. Such companies are defined as having 10 to 99 employees, $1 million to $50 million in annual revenue, and the ability and intention to grow rapidly, according to the Edward Lowe Foundation, located in Michigan. GrowFL, in partnership with CEO Nexus, the Center for Advanced Entrepreneurship at Rollins College and The Corridor, host a quarterly CEO Forum in Orlando. These informational presentations and networking opportunities allow Brian Fleming of Omega Medical Imaging receives CEO Nexus Cup from GrowFL. members to meet with and learn from fellow CEOs who have successfully guided and advanced their companies into the next stages of business development. “We have an ambitious plan to grow exponentially during the next few years. Receiving the CEO Nexus Cup solidifies our reputation and good standing in the marketplace,” comments Brian Fleming, president and co-owner of Omega Medical Imaging. He approximates current annual revenue at $6 million, with the goal of increasing that figure to $50 million over the next five years. “The ongoing success of entrepreneurial ventures like Omega Medical Imaging is exactly what makes the GrowFL program so important to our state,” cites O’Neal. “The tools and resources we provide can become an integral part of a company’s growth.”

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innovations |

focus on research & education

lorida is home to more university research parks than any other state with an impressive nine. South Florida’s geographic location gives it a unique opportunity to participate in international trade and Miami, a recognized global brand, is the natural first port of call for many international companies interested in Florida. However, the great thing about this big state is that it has much to offer and can accommodate all newcomers. Look a few miles north, to the geographic center of South Florida, and you’ll land in the Research Park at Florida Atlantic University. In 1985, Broward and Palm Beach counties took a unique approach to economic development, joining forces to

JUNE 2015 • FORWARDFLORIDA.COM

create an independent special district focused exclusively on technology-based research parks. For many years now, the research park has been an engine for Palm Beach and Broward county economic growth and its impacts have not been fully realized. Since 2011, the year I became president and CEO of the park, we have been quantifying the data, and the results are amazing. In 2014, 18 companies were based in the research park while 17 called the Technology Business Incubator (TBI) home. In 2014 alone, 671 new jobs were created for a total of 1,798 with average salaries of $87,000 (almost double the counties’ average). Nearly $50 million in external capital was raised and 37 new patents issued. Long-term sustainability of the economic activity in the research park is important, and having been born and raised in Europe, international growth is important to me; some of our companies are tackling international markets already. One prime example is Pace plc (LSE:PIC), a publicly traded technology

THE RESEARCH PARK company with its headquarters in the United Kingdom. Its president is an FAU graduate and runs the Americas business unit from Pace Americas LLC’s regional headquarters in the research park. Pace Americas contributed 62 percent of the company’s overall revenue in 2014, shipping hybrid products to pay TV operators and service providers in the United States and Canada; growing the group’s after-tax profits 53 percent in 2014. Pace operates in the highly competitive market of subscription television, telephone and broadband services. In order to keep competitive, it invests both human and

financial resources in research and development (R&D) to the tune of almost $150 million in 2014. South Florida’s large metropolitan area and two ocean cable landing sites, as well as its proximity to the Latin American markets, make it an attractive location. Combined with the research park’s mission to create and sustain an environment for innovation and invention, as well as maximize the academic talent and regional resources, the decision to locate the operations made sense. Similarly, Aerospace Technologies Group (ATG) has harnessed not only the academic but the entrepreneurial resources in South Florida to scale its business from startup to successful company with sales around the world. ATG is the largest tier one-supplier of electromechanical aircraft window shade systems, with customers such as Emirates Airlines, Airbus, Boeing and Gulfstream. ATG has developed several patented technologies for window shading systems and has benefited from the proximity to a large body of well-educated and motivated engineers at FAU. In 2015, the company looks to expand its offerings to the aviation market with a wider range of technologically advanced products. The research park’s mission to accelerate economic development and prosperity for South Florida led it to create the Technology Business Incubator (TBI)

AT FLORIDA ATLANTIC UNIVERSITY HOSTS BUSINESSES FROM GERMANY, BRAZIL AND BEYOND.

in 2000 with the aim of providing the region with a pipeline of viable companies that would create technology and jobs for years to come. In 2013, the TBI partnered with TecnoCampus Mataró, an incubator/research park near Barcelona, Spain, in order to form a partnership that would provide South Florida entrepreneurs a resource as they grow into European markets. Another benefit is that as the companies incubated in Spain are validated, they know they have a supportive environment in the United States to scale their businesses. Companies from TecnoCampus can apply for up to three months free rent in the TBI and take advantage of all our resources, all while getting to know South Florida. With the success of Pace and ATG and the growing prominence of South Florida as a center for international technology, more overseas companies are inquiring about how to take advantage of our many resources.

Decora moved from Brazil and Yachtico arrived from Germany to scale their business in the United States. These startup companies have validated their online algorithmic platforms in their home markets and now seek to leverage the resources of the TBI to perfect their technologies and scale their companies to maturity. The TBI offers startup companies low-cost flexible leases with on-demand conference rooms and mail facilities, as well as a common break area in combination with custom mentoring;

mentors include people on our staff who have assisted dozens of small companies achieve success, as well as the expertise of regional business leaders. In addition, resource partners provide seminars in banking, legal and accounting subjects, among others, to keep entrepreneurs abreast of new developments that could impact their growth. The biggest benefit is the community that is created when bright entrepreneurs get together: the energy is electric and explosive! Companies such as Canada’s Pivotal Therapeutics and Norway’s Eyelife have landed at the TBI not only to grow their U.S. presence but also to access new technologies from FAU: the former has partnered with Dr. Ken Dawson-Scully, associate professor of biological sciences, to form a new company called Eco Neurologics based on his neuroscience research, while the latter licensed technology to complement its own and create a wireless ultrasound device. The TBI and the research park companies are as diverse as South Florida and from this diversity comes economic strength. With the economy starting to gain positive momentum, plans are being made by domestic companies to grow into overseas markets and entrepreneurs from overseas are eyeing the United States as a way to scale their companies. The Research Park at FAU is well positioned to accommodate such enterprise and is fast becoming a center for international trade and innovation.

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manufacturing | made in florida

With new key partners signed, the Florida Advanced Manufacturing Research Center continues to take shape in Osceola County.

WAFER PHOTO BY NOVATI, SANDIA NATIONAL LABORATORIES PHOTOS BY RANDY MONTOYA

Clockwise from top left: A close-up of a wafer made by Novati; at Sandia National Laboratories ensuring the lasers are performing at optimal capacity; (opposite page) studying jet flames with laser diagnostics; a laser shoots skyward as part of Sandia’s Laser Applications project; studying a slice of semiconductor material.

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fforts to transform Central Florida into a global manufacturing leader for photonics received another boost in late April when two new corporate partners came on board. Novati, an Austin, Texas-based silicon wafer and semiconductor company, and Sandia National Laboratories of Albuquerque, N.M., will join a team of private, public and educational partners now developing the $70 million, 100,000-square-foot Florida Advanced Manufacturing Research Center (FAMRC) at a 20-acre site adjacent to Osceola Heritage Park in Kissimmee. BLUEPRINT FOR TOMORROW

The team behind FAMRC is the International Consortium for Advanced Manufacturing Research (ICAMR), the world’s first industry-led partnership for commercial development of smart sensors and photonics. Fran Korosec, director of ICAMR’s program management office, believes the consortium can be a blueprint for similar partnerships. “I’m confident that the success of this consortium will be a model for ongoing statewide and regional cooperation,” Korosec says. FAMRC will build and research advanced sensors and high-tech photonics for next-generation computers, appliances, smartphones and communication devices — a market that’s expected to grow to $154.4 billion by 2020, per estimates from BBC Research. “Though this manufacturing facility is being built in Osceola County, these are not just Central Florida-planned initiatives,” Korosec cites. Instead, it’s a leapfrog economic strategy that impacts the entire state. PLANTING THE SEEDS

The project has already succeeded in securing a formidable amount of seed capital from across Florida. Locally, Osceola County committed $61 million, with additional support from the Kissimmee Utility Authority and Toho Water Authority. County officials have lobbied the state for another $25 million annually; the Senate Appropriations Subcommittee on Transportation, Tourism and Economic Development has already recommended $5 million. Universities are also pitching in. “Everyone recognizes that this project will benefit all of the universities in the state system,” says Korosec. The University of Central Florida in Orlando pledged $10 million in startup money and $7 million for faculty. Three other schools are contributing $250,000 annually: the University of South Florida in Tampa, the University of Florida in Gainesville

and Florida International University in Miami. Economic development entities are involved, too. Enterprise Florida has approved $1.9 million from the state’s quick action closing fund. The Corridor (formerly the Florida High Tech Corridor Council) will contribute up to $6.5 million and expand its signature Matching Grants Research Program for even more funding opportunities. Also contributing is the Metro Orlando Economic Development Commission. DoD GRANT

More money may soon be on the way. A $110 million grant proposal for a Department of Defense initiative to build an Integrated Photonics Institute for Manufacturing Innovation (IP-IMI) was submitted by ICAMR and UCF in March (see FORWARD Florida “Digging into Photonics Manufacturing,” October/November 2014). That amount would be matched by investment from institutions and industry. Altogether, the funding represents around $500 million in total scope of work, based on the cost-sharing matching requirements, according to Korosec. To compete for the grant, ICAMR and UCF brought together industry partners and three other schools — Clemson University and the universities of Alabama (Huntsville) and Illinois. Groups from California (University of Southern California’s Information Sciences Institute) and New York (Research Foundation of SUNY and University of Rochester) are also vying for the grant. As part of the selection process, the Department of Defense visited UCF in late April. “We expect to hear who’s selected during the June or July time frame. This grant could take the marketplace for photonics beyond what’s already been made possible by CREOL [College of Optics and Photonics at UCF],” Korosec says. INDUSTRY APPLICATIONS

As a development organization, ICAMR is focusing on manufacturing methods and processes that make it effective for industries to use advanced photonic sensors. “Companies already using sensors are the first targets for this technology,” notes Koresec. “Their current sensors are perhaps larger or less accurate than they prefer, so we can help them address those challenges.” Additional partners could come from aerospace, defense, consumer product, energy, environmental and health-care companies. “Each has material and chemical challenges specific to their application,” Korosec adds. “Some are already looking at ways to modify their expensive semiconductor manufacturing tools to accommodate high-volume advanced photonics manufacturing.” While FAMRC will provide a location for research and development, ICAMR will also try to attract supply chain companies to the surrounding 220-acre research park. “I can’t accurately predict the total number of companies that will eventually choose to locate here. But it could very easily rival the growth that happened in Austin and Albany, N.Y. with SEMATECH and advanced chip manufacturing,” says Korosec. That’s significant. Austin alone is now home to 260 semiconductor companies. The Metro Orlando Economic Development Commission predicts that in 10 years ICAMR and FAMRC could generate up to 80,000 high-wage advanced sensor and photonics-related jobs with earnings exceeding $1 billion. Small sensors. Big impacts.

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manufacturing | made in florida

rom zero to 100 in just over three. That’s not a land or air-speed record. Instead, it represents, in years, just how quickly the Melbourne assembly facility of Embraer Executive Jets reached its milestone 100th jet for its Phenom brand of executive planes. On April 2, Embraer delivered the jet to NetJets Inc. for use in its European fleet. The event was celebrated in a ceremony at the Melbourne facility a little more than three years after the first plane rolled out of the factory in December 2011. “The delivery of the 100th Phenom jet made in Melbourne confirms our customers’ appreciation for revolutionary aircraft,” said Embraer Executive Jets President & CEO Marco Túlio Pellegrini. When other companies were laying low during the Great Recession, Embraer bet on the U.S. market. In media coverage from 2008, Embraer SA president and CEO Frederico Pinheiro Fleury Curado said, “We do not see the current crisis in the United States as a long-term one. We do believe in the recovery of the U.S. economy. We think this is the right moment to invest in the U.S. and be ready when the crisis is over.” That foresight is now paying off. As part of a purchase

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agreement for 50 firm orders and 75 options, the total value of orders by NetJets for Phenom 300s may eventually exceed $1 billion. After taking delivery of the commemorative Phenom 300, NetJets Inc. Senior Vice President Chuck Suma praised the jet’s performance. “It’s proven to be a success in meeting our expectations and, more importantly, the expectations of our customers.” Suma also praised Phenom 300s for being among the most efficient and maintenance-friendly executive jets in the industry, keeping service costs under control. EMBRAER TAKES OFF IN FLORIDA

Though Embraer’s recent success seems rapid, it’s actually been years in the making. The world’s third-largest aircraft manufacturer was founded in Brazil in 1969. Embraer launched its Executive Jets division in 2005. Incentives, sunshine and a skilled workforce (particularly in the wake of the end of the NASA shuttle program) paved the way for Embraer to set up shop along the Space Coast in February 2011. Before landing in Melbourne, the company first came to Florida in 1979 to locate its U.S. headquarters in Fort Lauderdale.

Embraer Aircraft Holding, Inc. handles aircraft sales and post sales activities, including customer service, tech support, shipping and receiving of spare parts. Embraer also operates a manufacturing facility in Jacksonville to assemble aircraft for the U.S. Air Force’s Light Air Support program. Manny Mencia, senior vice president of Enterprise Florida, was quoted last summer in the Sun Sentinel. “They’re arguably the most transformational foreign direct investment in Florida. They’re the first foreign company ever to assemble airframes in the United States…. And that they chose Florida has attracted enormous interest in Florida in the aviation and aerospace world. There now are projections that we will surpass California in the industry.” Embraer employs close to 20,000 worldwide, 1,500 in the U.S. and 800 in Florida. It is not alone, as more than 2,000 privately operated aerospace-related companies call the Sunshine State home, making it one of the nation’s epicenters for aerospace and aviation technology. “We’ve been impressed by the quality of aerospace and engineering talent here,” said Pellegrini. “And it’s so beneficial to have great universities such as Florida Tech and Embry-Riddle close by.” Proximity to North American executive aircraft customers was also key. U.S. buyers account for 40 percent of all of Embraer’s private aircraft sales today, and company officials project that number could rise to 50 percent. Light jets comprise a significant segment of the world’s business aircraft. A high volume of fleet substitution is helping drive recent sales for both used and new aircraft. Among them,

Phenom 300 deliveries have ranked highest in all light-jet categories for two consecutive years. The plane has also achieved a 57 percent market share just five years after entering service. 30 DAYS = 30 YEARS

Phenoms are assembled in a state-of-the-art, 80,000-square-foot, paperless manufacturing environment adjacent to the Melbourne airport. Production is constantly re-evaluated for peak efficiency. All assembly workers are encouraged to participate and suggest methods for improvement. The factory can now turn out a finished Phenom with an expected life cycle of 30 years in just 30 days. In December 2011, Embraer opened the 58,000-square-foot, state-of-the-art Customer Center in Melbourne. Here, clients for the entire range of Embraer Executive Jets can personalize and design their aircraft interiors. Around 200 local vendors along the Space Coast supply many of the design materials. The center is also the delivery site for all U.S.-assembled Phenom jets. In March 2012, Embraer expanded its Melbourne campus with the addition of the $26 million Embraer Engineering and Technology Center USA. The 67,000-square-foot facility is the first of its kind for Embraer outside of Brazil. Here, the company conducts product research and technology development across its entire commercial, executive jet and military business lines. Around 100 engineers work there now, with plans to double that number by 2017. “We’re very pleased with the capabilities and performance of our Melbourne workforce,” said Pellegrini. “That’s why, to me, the future here looks very bright.”

The interior design of every Phenom 300 assembled at Embraer Executive Jets’ state-of-the-art Melbourne facility is personalized to individual customer specification. Much of the interior materials are supplied by local vendors in the Space Coast area.

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special report | timely and topical USF System President Judy Genshaft's collection of bulls (USF mascot) from around the world affirms her commitment to international studies. PHOTO BY AIMEE BLODGETT/USF

USF PRESIDENT JUDY GENSHAFT HAS A BULLS-EYE VIEW OF THE WORLD t is no accident that President Judy Genshaft’s office is located in the Dr. Kiran C. Patel Center of Global Sustainability building. As the president of the University of South Florida System in Tampa, her passion for her students to be able to receive an international education is contagious. “When you receive the acceptance to the University of South Florida as an undergraduate, in your packet with your letter and other information is an application for a passport,” said Dr. Genshaft. She oversees a system serving more than 48,000 students and beams with pride when speaking of them and their success stories. “No matter whether you’re a first-generation student and one in five of our students is… we will help provide funds so that you can have this international experience.” Panama, China and England came up immediately. “The Board of Governors has the Frost Scholarship Programme. Pat Frost has said, ‘I will pay for 10 individuals to go from the state university system to attend Oxford.’ Last year we had one, the most any institution has was two — this year we now have three.” She added that they were also National Science Foundation Graduate Research Fellowship Program recipients and two of the three were first-generation. “We’re really thrilled. It’s the global part of what we do,” said Genshaft. The Global Citizens Project is an important focus. “We’ve been working on it for a couple of years. It’s about quality enhancement of our curriculum and all that we do at the University of South Florida for undergraduates. We selected the global citizen as our theme,” she said. Goal No. 1 of the university’s 2013-2018 Strategic Plan, the Global Citizens Project is to prepare “well-educated and highly skilled global citizens through our continuing commitment to student success.” It is made possible through the reaffirmation of accreditation process by the Southern Association of Colleges and Schools Commission on Colleges (SACSCOC). Every 10 years USF must develop a Quality Enhancement Plan, or QEP.

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“International and global issues, as well as experiences, are so important to all of our lives. It will change your life having this type of experience. We at the University of South Florida believe it helps students mature, understand, have tolerance and understanding of other people and other cultures,” said Genshaft. She also talked about the added benefit as employers look to employees to have these kinds of attributes and characteristics. “When we took the Global Citizen Project on as our theme for the whole institution, it just matches my passion for international.” Genshaft has backed up her global goals for her students with her own money. She and her husband Steven Greenbaum, created the Genshaft/ Greenbaum Passport Scholars Fund in 2011, with a donation of $1 million.

Through matching funds from the state, it will provide $2 million to USF students who want to study abroad. “From the beginning of my tenure at USF, Steve and I have dreamed that every student would have an opportunity to travel abroad,” said Genshaft at the time of the announcement. Genshaft discussed that when she talks to heads of corporations, particularly multinational corporations, they’re saying to the university presidents that they want employees who are respectful, knowledgeable about world issues and world cultures. Founded in 1956, USF Tampa is the fourth-largest public university in the state of Florida. It is home to 14 colleges, offering more than 80 undergraduate majors and more than 130 graduate, specialist and doctoral-level degree programs. The USF System includes three separately accredited institutions: USF,

USF St. Petersburg and USF Sarasota-Manatee. The USF System has an annual economic impact of $4.4 billion. The university is one of only four Florida public universities classified by the Carnegie Foundation for the Advancement of Teaching in the top tier of research universities. “We are very much an active participant with the EDC here and the Chamber. We connect through all venues as a region. Any way that we can help international trade, we will be there,” said Genshaft. USF’s seal is enveloped by a globe and is very appropriate given the institution’s emphasis on internationialism in an area ripe for international trade and growing rapidly. It has been in use since 1959. Each element has special meaning. The sun represents life to all living things, the lamp

symbolizes learning and the globe signifies the universal expansiveness educational opportunity and challenge. Forty percent of the USF Tampa faculty are either working on an international project, presenting overseas or consulting overseas. Genshaft’s desk sits directly across from her collection of bulls, the USF mascot. Students, friends and colleagues have brought her bull figurines from around the world and she recites each bull and where it is from with encyclopedic knowledge. The collection is symbolic of a woman and her love of foreign cultures, who also happens to oversee a $1.5 billion academic institution. Her students will be able to access international studies. There is no ambiguity of her commitment. With Genshaft’s aim, it is a definite bulls-eye on the prize.

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global pulse |

international news

JAXPORT recently received new business from Nestlé USA with help from the governor.

he state has spent $850 million in seaport infrastructure improvements in the past four years. That fact coupled with Southern California’s months-long labor dispute between the International Longshore and Warehouse Union and the Pacific Maritime Association, which represents shipping companies, seems to have benefitted Florida ports. The labor crisis ended officially in February, but the ripple effect continues from the estimated $2 billion a day loss in trade. Primarily involving the ports of Los Angeles and Long Beach, West Coast commerce was crippled by the dispute. New figures seem to confirm the increased market share. PORTMIAMI’s container volume had its busiest month on record since December 2004. In a report released in late May, the port’s container volumes increased by 17.5 percent year over year to 93,400 20-foot equivalent units in April. And it experienced an 11.8 percent yearto-date increase for the first seven months of the 2015 fiscal year according to officials.

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The FLORIDA PORTS COUNCIL released updated figures for the state’s seaports in late May. Florida’s waterborne international trade increased to $86.8 billion in 2014, a $900 million increase. “What is exciting about this data is that is shows noteworthy gains in cargo and cruise moving through Florida’s ports, a trend data suggests will continue in 2015 and future years. With many of the investments in infrastructure being completed, global companies are seeing our state as a very competitive option to help make their business succeed,” said Doug Wheeler, president and CEO of the Florida Ports Council. Gov. Rick Scott led a trade delegation to California in April to pitch Florida’s ports to shipping companies there in the wake of the labor dispute. He did chalk up a win during his visit, meeting with executives from NESTLÉ USA. The company is shifting a majority of its U.S. to Puerto Rico shipments to JAXPORT from the Port of New York and New Jersey. While technically not a West Coast shipment, new port business is new port business.

Miami Surges eMERGE AMERICAS, the international technology conference held in early May in Miami, drew more than 10,000 attendees from 50 countries and millions around the world participated through NBCUNIVERSAL’s live broadcasts and online streaming. More than 500 companies participated, including 125 startups from throughout the Americas and the world and 200 expert speakers were featured. The event with its 7,500 hotel room nights generated millions in economic impact for Greater Miami. “eMerge Americas 2015 exceeded our most optimistic expectations in its second year and has once again set a high standard for years to come,” said Manual D. Medina, founder and chairman of eMerge Americas. MICHAEL T. RODRIGUEZ was recently named CEO of eMerge Americas, a former vice president and general manager of WLTV and WAMI, Univision’s flagship stations in South Florida. Next year’s dates were also announced and the event will be held in Miami, April 18 and 19, 2016.

Export-Import Bank? The fate of the EXPORT-IMPORT BANK will be known in June as Speaker JOHN BOEHNER has said he will bring Ex-Im Bank reauthorization to the floor in the House if it passes the Senate. Last

year the bank provided $20.5 billion in financing to support sales of U.S. products overseas. The bank’s charter is set to expire June 30. Florida is the second-largest recipient of money from the Ex-Im Bank.

The Sky is the Limit A number of airlines have begun new routes in Florida. EMIRATES airline will begin daily nonstop service from Orlando to Dubai starting in September. Each plane will have eight first-class suites, 42 business class lie-flat beds and 216 economy class seats. MIAMI INTERNATIONAL AIRPORT is the nation’s second-busiest airport for international passengers with more than 20 million travelers for each of the past two years. MIA is adding a total of eight new international service options to its growing route network in 2015, including five new international destinations. Martin Associates took an in-depth look at five of the new flights to determine their value to the local community. Assuming they sustain operations at MIA for one full year, the five new international flights are projected to impact Miami-Dade’s economy as follows: • 3,435 jobs • $457 million in economic impact, which includes: • $143 million in total income • $45 million in local purchases; and • $1.7 million in state and local tax contributions

New international flights and service options included in the Martin Associates’ study are: Thomas Cook Airlines’ twice-weekly service to MANCHESTER, England; American Airlines’ daily FRANKFURT service; Aruba Airlines’ five weekly flights to ARUBA; Austrian Airlines’ five weekly flights to VIENNA; and Turkish Airlines’ daily service to ISTANBUL.

UCF Incubator Goes International The UNIVERSITY OF CENTRAL FLORIDA’S BUSINESS INCUBATION PROGRAM became the first incubator in Florida to be designated a SOFT LANDINGS INTERNATIONAL INCUBATOR by the National Business Incubation Association (NBIA). The NBIA, with more than 2,200 members in 60 nations, identifies incubators that have specialized programs and/or facilities that help provide a “soft landing” for foreign companies looking to enter new markets. “Our organization’s mission is to help diversify Central Florida’s economy by facilitating smarter, faster growth among early-stage businesses,” said Thomas O’Neal, Ph.D., founder of the UCF Business Incubation Program. “While we have traditionally been fulfilling that goal by offering entrepreneurial assistance to local ventures, we recognize that more jobs and economic growth can be generated here by offering similar services that help companies from around the world establish business in Central Florida."

Orlando via Torino Bringing the world to Orlando. The ORLANDO REGIONAL CHAMBER OF COMMERCE sent a travel delegation to the 9TH WORLD CHAMBERS CONGRESS in TORINO, ITALY, June 10-12. The goal: hosting the 2019 World Chambers Congress in 2019 in Orlando. Formed in 1999, the WCC has never been held in the U.S. The Congress is the only international forum for chamber leaders to share best-practice experiences, exchange insights, develop networks, address business issues affecting their communities and learn about new areas of innovation from chambers around the world. This event assembles a global community of more than 12,000 chambers of commerce, their leading business members and influential world leaders. It provides a unique opportunity for interaction between delegates from more than 100 countries. The Orlando delegation included Mayor BUDDY DYER; JAMES BACCHUS, former World Trade Organization director and shareholder, Greenberg Traurig and chair of the Orlando WCC Host Committee; JACOB V. STUART, president, Central Florida Partnership; and JOSÉ A. FAJARDO, executive vice president, Orlando Regional Chamber of Commerce.

An Orlando delegation attended the 9th World Chambers Congress in Torino, Italy.

EDITOR'S NOTE: THE CEOs OF DELTA, AMERICAN AND UNITED AIRLINES ARE LOBBYING THE WHITE HOUSE TO FREEZE NEW ROUTES TO THE U.S. BY EMIRATES, QATAR AND ETIHAD AIRLINES FOR UNFAIR SUBSIDIES BY THEIR RESPECTIVE GOVERNMENTS.

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A patriotic mural on a wall in Varadero, indicative of Cuba's intense political history.

WHAT MAY U.S. CAPITALISM MEAN FOR THIS COMMUNIST COUNTRY?

The historic handshake between U.S. President Barack Obama and Cuban President RaĂşl Castro at the Summit of the Americas in Panama City, Panama, on April 11, 2015. AP PHOTO/PABLO MARTINEZ MONSIVAIS

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What lies beneath the surface of normalized relations and what the future may hold for U.S.-Cuban relations.

ince President Obama last December announced his intent to normalize relations with Cuba, something of a frenzy has emerged. Especially in Florida. There is talk of economic opportunity, of trade ventures, of potential riches for American businesses. It’s as if the mere opening of an embassy can simultaneously erase 50 years of animosity, magically transform the Cuban economy and instantaneously lift up the Cuban people. The reality is that the same regime that the United States vilified when it broke relations with Cuba on Jan. 3, 1961, remains in power today. The system of government is unchanged and the economy is still tightly controlled by the state. As one veteran Washington journalist put it, “Nothing in Cuba has changed. The only thing that has changed is we have an administration willing to normalize relations with them.” And our experience in trying to secure interviews with government officials mirrors that of a totalitarian regime that controls all facets of the country and its information. Just recently, a sticking point in the fourth round of negotiations with U.S. and Cuba was the issue of accessibility at our future

embassy in Havana. Our publication’s focus is on economic development and we started this process hopeful that we could write an in-depth cover story on the opportunities with Florida-based businesses and what a future with normalized relations would look like. That did not happen. After months of communication with the Cuban Interests Section directly and through an embassy in Washington, we were back to where we started. Initially the feedback was positive, but ultimately there was just silence. FORWARD Florida would not visit Havana without scheduled interviews with government officials; we even said it could be officials at any level. But on the record. The time we spent waiting to hear back from Havana, enabled us to really research Cuba and this foreign policy shift. Most media articles have been focused on the opportunities complete with lots of colorful pictures from Havana. But when we dug deeper a more complex and darker picture began to emerge. This is from César Reynel Aguilera, who is a son of the revolution, not an aging exile who still longs for pre-Castro Cuba: “I had a master’s degree in biochemistry and I was willing to jump in the water.” Aguilera’s comment is a clear reminder that in looking to the future we must take a sober look at the present and also understand fully the historic journey that brought us to this moment. CUBA HISTORY

The United States and Cuba have had a difficult history from the moment a mysterious explosion sank the USS Maine in Havana harbor on Feb. 15, 1898, touching off the Spanish-American War. The threeand-a-half month conflict resulted in the U.S. “liberating” Cuba (along with Puerto Rico, the Philippines and Guam) from Spain. Cuba gained independence in 1902, though the U.S. reoccupied the island after disputed elections in 1906 and administered it again for three years. American influence continued to grow even after the Cuban government was restored, and the island became a significant destination for American investment and tourists. The modern chapter really begins in 1952 when Fulgencio Batista — a man who

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FACES OF CUBAN HISTORY (Clockwise from above)

FIDEL CASTRO addressing throngs of people at the Plaza de la Revolucion in Havana. CASTRO circa 1960s with his trademark cigar. Dictator FULGENCIO BATISTA in March 1956 with his wife Marta in Daytona Beach. Federico Fidel Fernรกndez, a Miami Cuban refugee, listens to the famous TV address by PRESIDENT KENNEDY on October 22, 1962 about the missile crisis. ERNESTO "CHE" GUEVARA, co-founder of Cuban revolution in 1960, age 31.

PHOTO OF KENNEDY TV ADDRESS: COPYRIGHT BETTMANN/CORBIS/AP IMAGES. ALL OTHER IMAGES COURTESY OF THE CUBAN HERITAGE COLLECTION, UNIVERSITY OF MIAMI LIBRARIES, CORAL GABLES, FLORIDA.

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helped overthrow a dictatorship in 1933 and who was democratically elected president as a progressive reformer in the 1940s — returned to power after staging a coup and established a repressive right-wing dictatorship himself. Batista established close ties with U.S. businesses and, by all accounts, the American Mafia. Those who were not part of the ruling elite chafed under his regime, allowing Fidel Castro and Ernesto “Che” Guevara to launch the revolution that led to Batista’s ouster on Jan. 1, 1959. President Dwight Eisenhower’s administration had grown weary of Batista’s repression and corruption, withdrew support for the dictator shortly before his fall and immediately recognized the Castro government when it seized power. However, as Cuba began to nationalize U.S. businesses on the island and develop close ties with the Soviet Union, it became clear that Castro was establishing a Marxist-Leninist government. On Jan. 3, 1961 — 17 days before leaving office — Eisenhower severed diplomatic relations with Cuba. A few months later, President John Kennedy gave the green light to the Eisenhower-conceived Bay of Pigs invasion designed to overthrow Castro. Cuban troops routed the invaders in short order, and 50 years of enmity ensued. For more than two weeks in 1962, Cuba, the U.S. and the Soviet Union held the fate of the world in their hands during the missile crisis, arguably the moment when the planet came closest to full-scale nuclear war. From the end of the crisis until last Dec. 17, U.S.-Cuban relations have been marked by increasingly strict American restrictions on business with Cuba and a few brief moments of fleeting rapprochement. At the center of it all then, and today, stands Communist ideologue Fidel Castro. IDEOLOGY, IDEOLOGY, IDEOLOGY

Castro’s co-founder of the Cuban revolution, Guevara, was an Argentinian who was killed in Bolivia by the army in 1967 when he tried to overthrow its government and replace it with a communist state. His image is evident throughout the island and he enjoys close to rock star status. Yet, he is responsible for a number of assassinations and one who did not mince his words. According to Guevara, he would have been happy to see any number of people die, as long as he could institute socialism. “If the nuclear missiles had remained [in Cuba] we would have fired them against the heart of the U.S., including New York City. The victory of socialism is well worth millions of atomic victims.” This is particularly chilling in light of the events of 9/11. He is responsible for meting out revolutionary justice following the Cuban revolution, with the number of executions he committed ranging so widely as to be unreportable. Many in favor of lifting the embargo and trading with Cuba think this will loosen the political chains for the people of the island. But it is naïve to think that after 56 years of iron-fisted control, the next generation of Cuban leaders will not share the same ideology of Fidel and Raúl Castro. “I was not chosen to be president to restore capitalism to Cuba. I was elected to defend, maintain and continue to perfect socialism, not destroy it,” said Raúl Castro upon beginning his second term in February 2013.

Cuban successors mentioned include Miguel Díaz-Canel, one of five first vice presidents, a 55-year-old engineer and former Minister of Education. He grew up under Fidel and Raúl’s tutelage as an obedient and disciplined Marxist. A protégé of José Ramón Machado Ventura, a hardline Communist, Díaz-Canel mirrors the ideological rigidity of his mentor. Raúl has many sons, including Alejandro Castro Espín, a colonel in Cuba’s intelligence apparatus. Aguilera thinks the intelligence network is the country’s most successful asset. “He [Fidel Castro] selects people as an image of himself. They talk like him, they think like him. They act like him. ... They are disguised as pro-Westerners, they are very relaxed people, they can present themselves in any possible way. But deep inside they were selected,” said Aguilera when discussing possible successors to Raúl Castro. Control is the means by which the Castro government has kept its people united. As part of the ideology of revolution a basic tenet is that the people cannot be too rich or knowledgeable. Aguilera lived his first 32 years in Cuba and did not leave until 1995. His mother still lives there and is a revered fighter in the revolution and a staunch Communist. He is highly educated — a medical doctor with a master's in biochemistry. Our paths crossed through mutual friends. He has lived in Montreal since leaving Cuba, now an author and writer, Aguilera is well known in Spanish literary circles. He attended school through college and then received his graduate degree in Cuba. The Cuban government does provide free education and health care to its citizens as part of its socialist society. According to Aguilera, the Cuban government has no interest in improving the way of life of the Cuban people. He was taught about Lenin’s theory of the revolution and how to maintain power. “When people live in extreme poverty, they do not have time or energy to go beyond their everyday life of survival. At the same time, those living conditions cannot be too good or relaxed, as when people live well they do not have any interest whatsoever in making a revolution.

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Taken in May 2014, a broom vendor seated at the door of a house in Trinidad, Cuba, located in the Sancti SpĂritus Province in Central Cuba.

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The revolution only happens in that narrow area in which people live badly enough to complain and have enough wealth to get organized. The problem with Lenin’s theory is while being a manual to reach power; it is also a clear explanation of what to do in order to then protect it. That is why every time a Communist organization reaches power, it starts closing all those democratic spaces — considered as weaknesses — they exploited in order to obtain that power. For them, the most important of those spaces is, of course, the living conditions of the people. They always manage to create a state of poverty and scarcity in which the revolution can never happen,” said Aguilera. DOLLARS AND SENSE

To some, Obama’s Dec. 17 announcement ("D17") seemed to signal the beginning of a great Cuban Gold Rush. That there is some opportunity is undeniable, but what exactly awaits U.S. business? In seeking to answer that question, it is important to keep four things in mind: 1) Cuba is a poor nation that has implemented only limited economic reforms; 2) there already is significant trade with Cuba; 3) Congress, not the president, holds the key to future American investment; and 4) many have discovered there is a dark, dangerous side to doing business there. In reforming its economy Cuba does not appear likely to follow the path of China and Vietnam, Communist nations that have embraced capitalism to a significant degree. The Cuban government instead is promoting the transformation of some state enterprises into cooperatives. Call it private ownership, socialist-style. The state no longer runs the enterprise, but the new private venture is collectively owned and, in theory at least, democratically operated. This has worked reasonably well in Cuba’s agriculture sector, where 5,200 co-ops employ about 600,000 people. Legislation passed in 2012 sought to bring the co-op concept to urban areas, but despite a government pledge to create 10,000 new co-ops by 2017 (starting with the restaurant sector), only 500 have been approved so far. The result of the transition to date has been a widening gap between those who work in the quasi-private sector and state employees. The latter group is paid in regular Cuban pesos, not the dollar equivalent convertible pesos (CUCs), face food shortages and still must rely heavily on the various state subsidies. Those paid with CUCs have enhanced buying power, creating an under-motivated state work force. The Cuban government has been trying to raise salaries for state workers but that has put a heavy burden on a budget already running a significant deficit. There have even been visits by Cuban entrepreneurs to the Greater Miami Chamber of Commerce as reported in the Miami Herald, part of an entrepreneurial exchange organized by the Cuba Study Group — an organization that favors increased engagement with Cuba. And while the entrepreneurial class is growing, there are concerns about the nascent middle class and what this will mean for a growing economy in terms of income disparity. THE EMBARGO

So as we look at the whys and why now comes a key piece of the puzzle. It has been widely reported that one of the reasons Obama

took this action is his legacy. A consistent stumbling block in U.S. relations with some of its Latin American neighbors is the ongoing Cuban embargo. Every year since 1992, the United Nations votes on a resolution to condemn the embargo — only two countries vote against it: the United States and Israel. Even critics of the rapprochement, understand the intent of the embargo has not worked. If anything it has added to the machismo of Fidel Castro and his government that they survived without the United States all these years. And the economic sanctions did not bring about regime change. However, while Obama has gone out on a limb with his political opponents and his presidency, if the Cuban government continues on its path of arrogance and unreasonable demands — they could very possibly cause Obama to walk away. Right out of the gate, the Cuban government asked for the end of the economic embargo and reparations as a result estimated to be in the hundreds of millions (last year it was reported to be $1.1 trillion) and the return of the U.S. naval base at Guantanamo Bay. It has been reported after the fourth round of U.S.-Cuba talks on May 21 that diplomatic access in Havana by the U.S. embassy remains a sticking point. “I do remain an optimist but I am also a realist about 54 years that we have to overcome,” said Roberta Jacobson, the chief U.S. negotiator. The U.S. enjoys freedom of movement in Russia, China and Vietnam. The Cuban government does not want diplomats talking to dissidents, which Castro recently called an “illegal” infringement on Cuba’s sovereignty. A part of the diplomatic snafu is the training of journalists, which has also become an issue. The U.S. Interests Section in Havana has offered classes in journalism, English and how to use the Internet. Cuba tightly controls its stateowned media and according to Reuters, blocks websites from independent journalists. Obama took action and removed Cuba from the U.S. list of state sponsors of terror, which took effect on May 29. Given the

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Valle de ViĂąales, Cuba. This lush area in Pinar del RĂo Province in Western Cuba is where tobacco and other crops are cultivated on the bottom of the valley, mostly by traditional agriculture methods. The majestic cliffs are called mogotes.

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official definition of state-sponsored terrorism, this was not too difficult a task for the administration. Though Cuba still seeks to export socialism, it no longer engages in the same type of activities as, say, Iran. But, as the president himself acknowledges, it will take Congress to fully open trade with Cuba. In 1996, President Clinton signed into law the Helms-Burton Act, which not only wrote into statute many of the embargo policies the U.S. had been employing since the early 1960s, it also established a series of penalties for foreign companies that defied the U.S. embargo. Almost no one in Washington thinks the current Congress is likely to repeal Helms-Burton. And while many American companies are engaging, many of the bigger players will not consider Cuba, until the embargo is lifted. That doesn’t mean there will be no trade with Cuba. In 2000 Congress passed legislation allowing some limited trade with Cuba, primarily sales of American agricultural products and medical supplies. Cuba did not engage in trade (having turned down food aid in the past) until buying food from the U.S. in the aftermath of Hurricane Michelle in November 2001. However, there was a catch: Cuba could not buy on credit. All sales had to be in cash. Last year, the U.S. exported slightly less than $300 million worth of goods to the island and was on pace through the first quarter to do the same in 2015. This is down from 2008, when the U.S. sold a record (for the Castro era) $788 million in goods to Cuba but that year’s sales gives a pretty good indication of the upper limit of trade with Cuba as long as Helms-Burton remains law. Following the “D17” announcement, the U.S. did relax some export rules, allowing telecom equipment, construction materials to help the aging infrastructure and products to help private entrepreneurs. In addition the import of some products by the new self-employed entrepreneurs known as cuentapropistas is allowed. BANKING ON THE FUTURE

In late May, Stonegate Bank, headquartered in Pompano Beach, Fla., officially became Cuba’s bank in the United States. The bank will handle the government’s financial transactions for its future embassy in Washington. “We hope this is the initial step to normalize banking ties between the two countries, which will benefit American companies wanting to do business in Cuba, as well as the Cuban people,” said Dave Seleski, president and CEO of Stonegate in a company statement. Founded in 2005 in Fort Lauderdale, the company operates a network of 22 branches with assets of $2.26 billion at the end of March. In its corporate profile, the bank’s mission is to be the premier “private bank for business.” PROCEED WITH CAUTION

And while on the subject of money, Cuba does have a long history of trade deficits due to its dependence on food imports and low productivity. As a result of its many defaults, it has a low credit

score. In April 2014, Moody’s downgraded Cuba’s credit rating to Caa2, a very high risk. However this past January, Moody’s rated Cuba again Caa2, but with a stable outlook given the easing of U.S. restrictions. Cuba has been courting foreign investment for many years now. On April 16, 2014, Cuba published its new law on foreign investment (LFI) in the Official Gazette of the Republic of Cuba. The LFI replaces Law 77, enacted in 1995, with a more detailed act intended to attract foreign capital with tax and other incentives and guarantees. The number being reported is $2.5 billion Cuba hopes to attract in FDI. However, the details in the LFI confirm the government’s central role in controlling and approving all foreign investment opportunities. Meanwhile on the other side of the island sat Cy Tokmakjian in prison. A successful businessman, he had spent more than 20 years doing business in Cuba where he sold transportation, mining and construction equipment. He was even photographed with Fidel Castro accepting a business award. His privately held Concord, Ontario-based Tokmakjian Group did an estimated $80 million in annual business in Cuba. They were instrumental in supplying crucial equipment during a severe economic crisis after the collapse of the Soviet Union. Ironically, his son Raffi was there in 2011 speaking to a group of Canadian businesses about how to conduct business in Cuba, three days later his father was taken in on orders from Raúl Castro. The charge was bribery. For the first two and a half years, Tokmakjian was not charged. In late Setember 2014 in what his family referred to as a show trial, he was sentenced to 15 years in prison. Peter Kent, a member of the Canadian Parliament, visited him in Cuba and was quoted in the Canadian press, “Not very nice conditions for a 74-year-old man among criminals, rapists and so forth.” At one point Tokmakjian was imprisoned in one room with 47 other men. Lee Hacker, vice president of the company and spokesperson during a press conference on Sept. 29, 2014, said, “There is

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There has been a spike in Cuban migration to South Florida following the â&#x20AC;&#x153;D17â&#x20AC;? announcement. Between January and March, 2,701 Cubans arrived in South Florida, according to the Customs and Border Protections statistics. That figure is up 212 percent year over year. A fear in a change in the Cuban Adjustment Act (wet-foot, dry-foot) may be a factor. During the first two weeks of May, 185 Cuban migrants either landed in South Florida or were intercepted and turned away. Pictured is a make-shift raft. U.S. COAST GUARD PHOTO

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no rule of law in Cuba. For the first two and a half years the investigation was a secret. This was not espionage — it was a commercial situation. … We did not gain any access to the files and then had two months to prepare our case.” Out of 18 witnesses the defense wanted to testify, the Cuban court allowed only four. The company said it had audited financial records, Cuban legal experts and Canadian officials. “We did not have a trial by any standard. Cy was not afforded the opportunity to refute what they have accused him of,” said Hacker. His family said that Tokmakjian could have been released earlier but he would not admit to wrong doing and vowed to fight to clear his name. “His ordeal is a cautionary tale to any investor who thinks the Cuban playing field is level,” said Kent. Ultimately Cuba confiscated $100 million of the company’s assets and he was released in February 2015. Tokmakjian was far from alone. Businessmen from France, Britain and Mexico were imprisoned and money confiscated. Another Canadian, Sarkis Yacoubian of Canada’s Tri-Star Caribbean, was also convicted and sent home after all his assets were seized. “Canada sends over 1 million tourists to Cuba. If you know the risk why do business there? … Keep a close eye on the situation and know your facts — know your real facts,” warns Tokmakjian’s son, Raffi. Article 91 of Cuba’s Criminal Code provides for sentences of 10 to 20 years or death for anyone “who in the interest of a foreign state, commits an act with the objective of damaging the independence or territorial integrity of the Cuban state.” According to legal scholars, the laws may be written in certain ways and interpreted differently by functionaries on any given day. And that leads to our last discussion point, uncertainty. UNCERTAIN FUTURE

Aguilera is extremely articulate on this term and what it means to him as a Cuban. When I asked him about potential risk doing business with Cuba, he said that “risk” was the wrong word. Businesspeople deal with risk and it is inherent in business. “Risk has a probability that is known, for example slot machines in a casino. The opposite is uncertainty. Uncertainty the probability is unknown — uncharted. And I think that what the Cuban government is trying to do is turn an uncertain situation into a risk situation. If you want to advise investors, don’t talk to them about risk because they know about risk. Their job is to take risk, the higher the risk, the more potential money, low exposure risk, etc. “The Cuban government does not want people to know it is not a risky investment. It is an uncertain investment — there is no probability of anything because the government conducts itself arbitrarily. One day we had a Farmer’s Market, one day you woke up and it was closed and there was no food in Havana. You can wake up in the morning and be brought to jail and you don’t know why. “There is no written way of pressuring the Cuban government to reconsider whatever they want to do. That doesn’t exist. They

are isolated, ergo they can do whatever they want. It’s an uncertain situation, not a risky situation. “Nobody knows what will happen from one day to the next. That’s uncertainty and that’s what they don’t want people to know. There is no certainty in Cuba. It just doesn’t exist. “And the uncertainty is the only explanation why Cuban people jump into the water of the Florida Straits,” said Aguilera. THE CUBAN PEOPLE

The one constant about Cuba, it stirs passions. I was told that a Cuban woman tells people she is from Belize to avoid the drama of her homeland and the opinions it elicits. And something everyone can agree on is the hope for improvement in the lives of the Cuban people. We are essentially in the midst of a foreign policy science experiment, thawing a relationship that has been on ice since 1959. Ice melts too quickly and creates problems. Everyone must work in whatever capacity to ensure the Cuban people are helped. The problem is how to best accomplish this? It is concerning that since the “D17” announcement, the level of attempted migration from the island has more than doubled. And people continue to die trying to leave. There needs to be a balance and all parties must compromise. There is so much at stake. The lives of the Cuban people most of all. Too many people would not go on the record with us out of fear, including a South Florida pastor who recently returned from a mission there. A Cuban pastor he visited was being closely watched by the government and taxed more due to his growing congregation. He was worried about him. AT PRESS TIME, FORWARD FLORIDA RECEIVED AN UPDATE ABOUT THE CUBAN PASTOR REFERENCED ABOVE. PASTOR ARMADO RAMIREZ OLIVEROS OF MARANATHA FIRST BAPTIST CHURCH IN HOLGUÍN, CUBA, GOT WORD OUT THROUGH A WRITTEN STATEMENT ASKING FOR HELP BECAUSE HIS 800-MEMBER CHURCH WAS CONFISCATED BY THE GOVERNMENT IN MAY. TO VIEW HIS STATEMENT AND FOR MORE CUBA COVERAGE, GO TO FORWARDFLORIDA.COM.

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CUBA

EDUCATIONAL CASE STUDY

Plaza Vieja, Havana, Cuba

As Stetson University puts an emphasis on study abroad, a classroom to the south continues to emerge.

BILL ANADREWS

ill Andrews considers Cuba a whiteboard for learning. Andrews, chair of the International Business department in the School of Business Administration at Stetson University, first visited Cuba with students in 2002. Two years earlier, the U.S. House of Representatives had approved the sale of food and medicine to Cuba. Andrews took a second trip to Cuba with students in 2003, just before U.S. Under Secretary of State John Bolton accused Cuba of trying to develop biological weapons, adding the country to Washington’s list of “axis of evil” countries. For the next seven

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years, academic permits for travel to Cuba were suspended. “You could hardly find a single American down there in 2003. Frankly, it was absolutely fascinating and wonderful … like going back in time 40 years,” Andrews remembers about the trip. His most recent visit brought a much different Cuba into focus. “By the time I went back in 2012, things were beginning to thaw,” he says. “There were more American tourists there. ... You could see [Cuba] losing its nostalgic ambiance, but social progress was also afoot. Fidel Castro’s influence was diminished, buildings were being rehabilitated, the economy that had been locked for the last 50 years was beginning to stir.” Through the years, Cuba has endured uneven times, for certain. Much of the world has, too. Regardless of changes abroad, and actually because of them, Andrews relishes the chance to travel with students. In addition to Cuba, he

also led student trips to Spain and Panama. “If you really want to promote international experience at the university level, you need to build it into the graduation requirements,” he says about global study. “Many students are eager to travel overseas, but it needs to move them toward graduation. At Stetson, we are very careful to attach relevant history, culture and geography to our travel courses to ensure that the experience is academically relevant. It’s such a life-changing experience for students who have never done so. “While geography, customs and biomes can be enchanting, it is the individuals whom you get to know that are most revealing. To me that’s the biggest reward — just seeing how people are different, how they view the world, their perceptions of the United States. … what makes them tick.” As part of earning a degree in international business at Stetson, students are required to complete approved international study or work experience. "You might be surprised that very few programs [outside of Stetson] require an international experience," notes Andrews, who began integrating international education into the business curriculum in the mid-1990s shortly after his arrival at Stetson. Across the DeLand campus, Stetson believes in such globalization. During the 2014-15 school year, 244 Stetson students studied abroad, a nearly 13-percent increase from 2012-13. Also, Stetson currently has 157 students on campus from 61 countries, a 65-percent jump since 2011. By comparison, international students at U.S. colleges and universities increased by 8 percent in the 2013-14 academic year, while the number of American students abroad for academic credit from U.S. colleges and universities increased 2 percent, according to the 2014 Open Doors Report on International Educational Exchange, published by the Institute of International Education. When it comes to global education, those numbers put Stetson ahead of the curve. Stetson’s interdisciplinary international studies program has historically built on the university’s curriculum, including foreign languages, and also on study abroad. Students in the major have

An easing of travel restrictions may result in more students studying abroad.

the chance to design individual programs of study that address global issues or perspectives of special interest to them. A minor in international studies also provides a dimension to almost any discipline of study. Stetson has nearly 30 exchange options with more than 400 different programs. WORLD: The David and Leighan Rinker International Learning Center coordinates university efforts in “comprehensive internationalization,” with the focus on “campus culture as an intercultural and transnational intellectual community.” (WORLD stands for World Outreach, Research, Learning and Development.) Among the holistic initiatives, for example, is WORLD WISE, involving the WORLD center along with the Office of Academic Affairs, the Division of Campus Life and Student Success, the Office of Diversity and InterCultural Initiatives and the Center for Community Engagement. The goal is to develop cutting-edge programs with high-impact learning using interconnected curricula. “The positive outcomes for international learning at Stetson University are the result of a targeted strategic plan to expand the number and locations of Study Abroad opportunities, exchange programs, course offerings, the number of international students receiving a Stetson degree and more,” comments Rosalie A. Richards, Ph.D., associate provost for Faculty Development and a professor of chemistry and education. “With these and other important elements, Stetson University is well positioned to shape and deepen our

community’s intercultural competencies and global citizenship.” Cuba, with even greater changes on the horizons, offers a case study. In January, new Treasury Department and Commerce Department regulations significantly loosened restrictions on U.S. trade and investment in Cuba. The move could have a profound impact on U.S. students visiting there. Education is among the reasons Americans would be permitted to travel to Cuba under a U.S. general license, meaning they don’t need to apply for a separate license. From a personal perspective, Andrews sees a country that requires an infrastructure overhaul to accommodate the expected influx of new tourists as the two nations warm. “It will take years and years of investment for them to meet the demand,” says Andrews, who prior to academia worked with import/export trading firms and graduated from the Thunderbird School of Global Management at Arizona State. Also, Andrews believes entrepreneurialism already abounds in Cuba. Given the monthly incomes on the island, Cubans have supplemented them by selling a variety of goods through unauthorized channels or by running small enterprises from their homes, he says. Andrews adds that challenges such as a burdensome tax structure, poor access to wholesale goods and lack of business rules serve as impediments to economic growth. “The people are very entrepreneurial. Whether you have big investment capital for infrastructure projects or you’ve got smaller slices of capital for entrepreneurs, I think there’s just a huge opportunity. ... It’s a giant market,” he says. For Stetson students, the chance to learn in Cuba promises to be enticing. In previous trips, students have met relatives for the first time and have been forced to quickly adapt in a foreign culture. “Just about every time I go overseas, there’s something significant that goes wrong. ... One of the things that these international experiences really drive is the ability to think on your feet, to be flexible, to be adaptable. That’s a skill that is increasingly valuable forever, wherever you go,” Andrews cites. Take notes, he concludes, because Cuba beckons — and there are lessons to be learned.

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CUBA

TRAVEL & TOURISM

Tourism is the first industry taking off in the rapprochement with Cuba.

or decades, Cuba was like a roomful of expensive wine locked away in a cellar. Now that American travelers can finally peek through a crack in the door, they hunger for their first taste of what was once forbidden. To help slake this thirst, Floridabased air charters and ferry operators are rushing to create new connections to Cuba. A study by marketing firm Sojern shows online searches for travel there from the U.S. in the first three months of 2015 were up 184 percent compared to the same period last year. But it may be awhile before Americans can travel to Cuba without restrictions. Those wanting to go must still qualify in one of 12 licensed travel categories, such as education or cultural tours. Millions of vacationers from Canada, Europe and elsewhere already visit Cuba on a much less restricted basis. Though U.S. citizens are not banned from the island, it’s still illegal for them to spend money there. Cuba is the only country to which the U.S. government restricts travel. Removing these barriers will require an act of Congress. Jeff Flake, R-Arizona, Jim McGovern, D-Massachusetts, and Mark Sanford, R-South Carolina, all back a lifting of restrictions. But many Republicans oppose it, fearing that American tourist dollars will only end up with the Cuban government, not the Cuban people. TAKING FLIGHT

With no commercial flights serving the island, charters remain the only direct option to flyers. According to the Official Airline Guide, around 365,000 passengers flew on chartered planes from

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the U.S. to Cuba in 2014. But with demand now exploding, the number of air routes is quickly expanding. In April, Island Travel & Tours (ITT) announced direct flights to Havana from Orlando International Airport starting in July. ITT already offers flights to Havana from Miami. Mambi International Group started flying from Key West in March. Charter flights also originate from airports in Miami, Fort Lauderdale and Tampa via ABC Charters, Airline Brokers, C&T Charters, Cuba Travel Services, Gulfstream Charters, Marazul Charters, Wilson International Services and Xael Charters. A typical round-trip charter flight from Miami costs around $500. The most recent announcement was a partnership between Eastern Air Lines and HavanaAir. Currently HavanaAir operates 65 flights a month to Havana from Miami. The agreement will result in service from two other U.S. cities this summer. And Eastern will offer twice daily service to Havana and weekly service to Camaguey and Santa Clara in Cuba for HavanaAir. Customers can also book licensed charters or flights from Florida through third countries to Cuba on CheapAir.com, but costs vary widely, depending on connections. SETTING SAIL

Another option is nearing shore. The Treasury Department’s Office of Foreign Assets Control recently issued ferry licenses to a few select companies. In Florida, they include Airline Brokers and Baja Ferries USA, both based in Miami, Havana Ferry Partners of Fort Lauderdale and United Caribbean Lines,

Cuba is known for its beautiful beaches and 1950s cars.

based near Orlando. Others hope to be approved soon. Jacksonville-based CubaKat plans to start service from Key West on a 200-passenger catamaran. Company President Brian Hall is not worried that he still awaits a license. “In just a couple of years, up to 5 million travelers are forecast to travel to Cuba annually,” said Hall. “No one company can handle all that traffic — our company can only accommodate up to 120,000, even sailing six days a week. That means there’s plenty of business to go around.” Though the Treasury Department has already granted a handful of ferry licenses, there are still several hoops to jump through on the Cuban side before any company can put boats in the water. Appearing at a legal conference at the University of Florida in Gainesville, José Cabañas, chief of the Cuban Interests

CUBA’S CURIOUS CAR CULTURE From a very early age, I was fascinated by cars. It was the late 1950s and each model looked different. Most all of them were American-made. So it was mere child’s play, even as a toddler, to watch the road and play guessing games with my uncle. I could name every car from a distance. Today, even up close, it’s not so easy. Cars come from all corners of the world and most are a largely homogeneous mix of interchangeable designs hatched on a computer and tested in a wind tunnel. Not so in Cuba. There, time has stood still since 1959, at least when it comes to classic cars. Since the embargo, the only American vehicles allowed on the island were those previously registered for private use and acquired before the revolution. An estimated 60,000 vintage classics have been preserved for decades

Section in Washington cautioned that Cuba’s approvals may be slow. “These companies (still) have to go to our authorities, they have to introduce their ideas,” Cabañas said in an interview with the Cuba Standard. “Some of them we already know. But they are not all equal. Some of them have just a license, not the capital, not the ships.” And CubaKat has none of these — yet. The company is still in the process of raising $500,000 to fund operations and is soliciting potential investors — and vouchers for discounted tickets — via its website. But these challenges do not concern Hall, who’s confident of CubaKat’s selection. “We’ve already been working on securing government permission for some time with our contacts in Cuba.” Hall does acknowledge there will be strict conditions, fees, inspections and personnel requirements all ferry

through Cuban ingenuity and tender-loving care. They’re a beautiful yet motley blend of homemade parts, discarded household items and pieces scavenged from other vehicles. But now, time may finally become unstuck. In late 2013, Cuba eased restraints on car imports and acquisitions. And now, the U.S. is putting decades of obstructive international policy in the ditch. Though newer cars are still too expensive for many Cubans, fewer restrictions and improving relations with the U.S. could finally push some of the older American classics to the side of the road. What’s to become of them? Will hungry collectors from the U.S. swoop in and buy these relics for themselves? Will their Cuban owners hang on to them, or cash in and buy much newer cars? All we can do now is watch the road ahead and try to guess what’s coming.

operators must meet to satisfy Cuban officials. CubaKat plans to start preparing its first catamaran by midsummer and start serving Havana around Sept. 1. Round-trip tickets will be $338. Baja Ferries USA also plans to be in operation by September, according to Joseph Hinson, company vice president. Already on CubaKat’s drawing board are smaller, faster catamarans that can sail at speeds up to 35 knots. “They’ll be capable of making the trip in two hours, 45 minutes,” said Hall. In addition to fast crossings, CubaKat will also offer 4’ x 4’ rental storage containers to passengers who want to bring items from the U.S. to Cuban relatives. Boats from the other ferry companies may not be as fast as those of CubaKat, but will instead feature more luxurious, on-board amenities targeted to vacationers. Baja Ferries USA will offer

overnight accommodations and meals. “By contrast, we’re all about getting people to Cuba quickly and safely,” said Hall. The challenge for the growing tourism sector is Cuba’s aging infrastructure and lack of hotel rooms. Answering the call is Airbnb, a San Francisco-based company that has emerged as the economic development winner in the loosening of restrictions with Cuba. The internet travel accommodations broker connects travelers with homes or rooms in 190 countries. The company shared its Cuba stats: it took three years for San Francisco and Berlin to grow to 1,000 listings and it took Cuba two months; since entering Cuba on April 2 it received 500 new hosts/ listings; 30 different cities in Cuba are available, with 40 percent of them in Havana and searches for Cuba have increased by 27 times.

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special report | timely and topical

THE STATE IS RED-CARPET READY... TAX CREDITS NEEDED TO KEEP CAMERAS ROLLING 5656

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hat’s my motivation? It’s not just a question from actors to directors. It’s also what filmmakers have asked lately about Florida when considering it for a major role in their productions. Not so long ago, film, TV and video projects flocked to the state. Beginning in the early days of silent movies, Florida itself was as much a star as any film celebrity. Oliver Hardy launched his film career in Jacksonville. Johnny Weissmuller wrestled vicious crocodiles at Wakulla Springs. Esther Williams gracefully swam across a Florida-shaped pool at Cypress Gardens. Frank Sinatra battled ruthless thugs in Miami. Bill Murray chased a pesky gopher around a Fort Lauderdale golf course. After California and New York, the Sunshine State was where they all came to make movie, TV and video magic. “But today, Florida must compete with 37 other states and many foreign countries that offer some type of film incentive program,” said John Lux, chief operating officer of IDEAS, an Orlando-based media production company. “To be fiscally responsible, today’s filmmakers will first consider locations offering tax incentives to help defray production expenses.” Before anyone had ever heard or thought of incentives, Florida’s natural attributes made the state a mecca for movie makers. It all started more than 100 years ago in Jacksonville, which soon became the “Winter Film Capital of the World.” Back then, film companies were based in New York City, but needed a warm winter climate for location shooting. Jacksonville beckoned with exotic backdrops, a ready labor pool and easy rail access. Beginning in 1908, filmmakers began migrating South. Eventually, more

“GEORGIA AND LOUISIANA ARE BEATING US TO THE PUNCH. THE STATE MUST RECLAIM THIS LUSH AND VIBRANT ECONOMIC TERRITORY.” — REP. MICHELLE REHWINKEL VASILINDA, D-TALLAHASSEE

"FLORIDA MUST COMPETE WITH 37 OTHER STATES AND MANY FOREIGN COUNTRIES THAT OFFER SOME TYPE OF FILM INCENTIVE PROGRAM." — JOHN LUX, C.O.O. OF IDEAS

than 30 satellite studios were established in Jacksonville. For a while, the city and the film industry were a perfect match. But Jacksonville residents complained about some of the wilder public antics of silent movie making: car chases, fights, simulated robberies and fires. In 1917, a conservative city administration was elected to tame Jacksonville’s film industry. As California emerged as a movie production center and the major New York studios relocated there, the curtain quickly fell on Jacksonville’s role as a top film location. But even after movie companies moved west, Florida long remained a popular place for film and TV productions (see “Top 10 Movies” and “Top 5 TV Shows” in sidebars). As recently as nine years ago, the state was ranked the third most popular filming location in the United States. This lofty standing helped keep local production talent busy. But a January report from the Legislature’s nonpartisan policy analysis office noted that Florida had lost considerable ground to neighboring states. “Georgia and Louisiana are beating us to the punch,” said Rep. Michelle Rehwinkel Vasilinda, D-Tallahassee, in an article she wrote for Florida Restaurant and Lodging. “The state must reclaim this lush and vibrant economic territory.” Ironically, some of the states now competing with Florida have actually copied much of their tax credit language from the Sunshine State’s previous incentive program. “It has performance-based qualification criteria that governments favor,” said Lux. “Productions must spend money here or with companies based here before any tax incentive can be awarded.” In 2010, Florida earmarked nearly $300 million in tax credits for film production, hoping it would stretch over six years. But high demand caused it to disappear in only three. “As recently as 2013, we worked on over 20 entertainment projects in a single year,” said Lux. “But in the last two years since no new tax credits were available,

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Based on Florida’s illustrious movie past, Film Florida’s dream of reinvigorating the state’s film industry via a replenished film tax credit is far from a Hollywood dream. Hundreds of amazing motion pictures have been made in the state, so it isn’t hard to see why many envision an even brighter economic future for moviemaking here. To celebrate the past while the Florida Legislature debates the future, we decided to take a look at the great films that were made here and come up with our own 10 Best Florida films. To make this list, the film had to be set in Florida and have a substantial portion of the movie filmed here. This eliminates movies ranging from Ron Howard’s comedy Parenthood to the 1950s horror classic, The Creature from the Black Lagoon, where Florida doubled for other locales. We reluctantly nixed some other major films — from Midnight Cowboy to Get Shorty to James Bond movies Goldfinger and License to Kill — that have brief, important moments set and filmed in Florida but primarily take place elsewhere. With those disclaimers, the Top 10 are:

1 | Body Heat (1981)

4 | The Heartbreak Kid (1972)

In writer-director Lawrence Kasdan’s update on 1940s film noir, Kathleen Turner exudes such raw sensuality that by the time slow-witted lawyer William Hurt suggests murdering her husband, most men in the audience are thinking, “Sure . . . sounds like a reasonable plan.” Add in a memorable Mickey Rourke cameo, atmosphere that has the audience feeling the South Florida heat and a spectacular final twist, and you have a modern classic.

This twisted, comic look at love, fidelity and social climbing stars Charles Grodin as a man who leaves his wife for another woman (Cybill Shepherd) while on his honeymoon, much to the dismay of her blue-blood father (Oscar nominee Eddie Albert). It is considered director Elaine May’s answer to her former comedy partner Mike Nichols’ The Graduate.

2 | Absence of Malice (1981)

5 | There’s Something About Mary (1998)

Acclaimed director Sydney Pollack examines what happens when a Miami-based investigative reporter’s zeal for the front page leads her to put “accuracy” ahead of the truth. Paul Newman turns in an Oscar-nominated performance opposite Sally Field . . . and then Wilford Brimley shows up in the last 20 minutes and steals the movie from them both.

3 | The Yearling (1946) Only Gregory Peck’s fifth movie, this film helped launch him to stardom. A heart-warming, at times tear-jerking movie set in post-Civil War Florida, it tells the story of a boy and the pet deer that can’t possibly stay a pet forever.

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The movie that cemented the Farrelly Brothers’ reputation as masters of raunch. Ben Stiller, Cameron Diaz, Chris Elliott, Brett Favre (yes, NFL quarterback Brett Favre) and a defibrillated dog make for a hilarious film that ensures you’ll never look at hair gel or prom tuxes the same way again.

6 | Cross Creek (1983) If you want to know how No. 3 on this list came to be, then watch this uplifting film (nominated for multiple Academy Awards) about Marjorie Kinnan Rawlings (Mary Steenburgen) and her move to rural Florida, where she wrote . . . “The Yearling.”

7 | Scarface (1983) Critics originally derided but now have come to embrace this South Florida, Cuban-centric remake of the 1932 gangster classic. The film returned Al Pacino to the spotlight, saved budding star Michelle Pfeiffer from the wreckage of Grease 2 and featured a script penned by Oliver Stone. It also may have set a record for the number of times the f-bomb is dropped in a single movie.

8 | Sunshine State (2002) Indie master director John Sayles crafted this slice-of-life tale that touched on themes of love, longing and race set in the midst of a northern Florida community torn about the possibility of new land development.

9 | The Birdcage (1996) If Elaine May’s Florida movie makes the list, then Mike Nichols’ Florida movie deserves to be here, too. Robin Williams, Nathan Lane and Gene Hackman more than do justice to the 1978 French classic, La Cage aux Folles.

10 | Caddyshack (1980) The characters don’t make a big deal of the fact that the country club is in Florida, but they also don’t pretend it’s elsewhere either. This Chevy Chase-Bill Murray-Rodney Dangerfield comedy gem was filmed entirely in South Florida and has become almost as beloved as writers Doug Kenney and Harold Ramis’ previous masterpiece: Animal House.

SPECIAL CASES: Key Largo (1948) and Some Like it Hot (1959). Key Largo has it all: Bogart, Bacall, Edward G. Robinson, gangsters, a hurricane and tight, tense script. Problem is only the movie’s first scene was shot in Florida (other Florida exteriors were stock shots from other movies). As for Some Like it Hot, true locals know the “Florida” resort in the movie is really San Diego’s Hotel del Coronado. So, neither film can quite make the list. But, if they could, make no mistake: They would be tied for No. 1. HONORABLE MENTION: Ace Ventura: Pet Detective, Bad Boys, Big Trouble, Cocoon, The Devil’s Advocate, Edward Scissorhands, Matinee, The Mean Season, Miami Rhapsody, Monster, Porky’s and Wild Things. — Joel Brandenberger

PRODUCTION COMPANIES THAT CAME TO FLORIDA DURING FISCAL YEAR 2012-13 SPENT AN ESTIMATED $39.8 MILLION ON LODGING AND $20.4 MILLION ON FOOD. — OFFICE OF FLORIDA FILM AND ENTERTAINMENT

we’ve worked on just three.” To convince lawmakers to refill Florida’s incentive funding pool, Lux personally met with legislators, attended legislative delegation meetings and testified on a panel before the House Finance & Tax Committee in Tallahassee. In addition to Vasilinda, film industry supporters in the state Legislature include Rep. Mike Miller, R-Winter Park, and Sen. Nancy Detert, D-Venice. Both sponsored new legislation in 2015 to replenish film tax credit incentives. “Florida has done a lot in film in the last few years,” said Detert in an interview with the Miami Herald. “Then, we kind of lost our standing.” Vasilinda agrees and says that any incentive program must be consistent. “I think we [should] just say this is a regular thing we fund,” she said. “They need to know year to year that they can rely on it.” Other Florida legislators oppose tax credits on principle and argue it’s not government’s responsibility to offer incentives to any private enterprise. They believe as the water level rises, it should rise on its own. “I’m not going to question that position on its merits, as I respect it,” said Lux. “But when you’re competing with close to 40 other states that already have incentive programs, you have no choice but to play the same game so this industry can grow in Florida.” Some legislators believe tax credits for film production don’t provide enough return on investment. Lux and other supporters argue that it has created jobs, boosted tourism and helped small businesses in Florida grow. “Beginning in 2010, the previous tax credit allocation of $296 million led to $1.5 billion in direct spending on Florida companies and Florida residents,” said Lux.

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Television series used to not venture very far from Los Angeles and New York. Moving a production that films half the year from the studios’ bases was considered too expensive a proposition. Things have changed, though, as tax breaks have encouraged TV series to explore new locales. First, it was cult hits like Northern Exposure, the X-Files and Friday Night Lights that filmed away from L.A. and NYC, but lately, mega-hits such as The Walking Dead (shot in neighboring Georgia) film on the road as well. Here, too, Florida was a pioneer, with a pair of 1960s family favorites filming in the Sunshine State. Both made our Top Five. As with the movie criteria, the series had to be set and substantially filmed in the state to make the list. — Joel Brandenberger

4 | Dexter

1 | Miami Vice The other shows were fighting it out for No. 2. Starring Don Johnson, Philip Michael Thomas and Edward James Olmos, this iconic 1980s series made pastels cool, socks passé and popularized the T-shirt-under-an-Armani look. The producers also seemed to think the Miami-Dade Police Department had unlimited money to spend on undercover cars and paid its detectives enough to live on luxury sailboats. Despite (or perhaps because of) the creative licenses, it was an incredibly influential, quintessentially 1980s television series that perfectly blended music video sensibilities with the classic cop show format.

5 | Gentle Ben

2 | Bloodline This new Florida Keys-based family mystery started streaming in March on Netflix and features Sissy Spacek, Sam Shepard and Kyle Chandler. It debuted to rave reviews and has been renewed. There is award buzz for actor Sam Mendelsohn.

3 | Flipper How far did you think we’d go before getting to the original Florida show? Boomers everywhere: close your eyes, hear the theme song and envision the dolphin star using his bottlenose to make mincemeat of yet another shark. All of it was filmed in the beautiful Keys (well, there and a Miami studio soundstage).

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This pick is more recent and probably more to the average critic’s liking, but no way a serial killer – even one trying to do “good” – was going to beat out Florida’s favorite dolphin. (NOTE: This barely qualified. It was filmed primarily in California, but the first few episodes were shot in South Florida.)

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This story of a brown bear and his human friends featured a between-Gunsmoke-and-McCloud Dennis Weaver and Ron Howard’s little brother, Clint (their dad, Rance, was in the show too). Filmed primarily in the Everglades, it’s an often-overlooked Florida classic.

THREE OUT OF FOUR NEW VISITORS TO THE CLEARWATER MARINE AQUARIUM CREDITED THE DOLPHIN TALE MOVIES FOR THEIR TRIPS TO THE AQUARIUM, RESULTING IN AN ESTIMATED $580 MILLION ECONOMIC BOOST.

VERY HONORABLE MENTIONS The Jackie Gleason Show (1960s version). This series might be the first television show to double as an economic development vehicle. Filmed mostly at the Miami Beach Auditorium, Gleason and his announcer referred to their host city as the “sun and fun capital of the world.” The show was credited with spurring a boost in South Florida tourism. Burn Notice ran from 2007 to 2013 on USA Network and was an excellent drama set and filmed in Miami. NOT FILMED HERE There are a number of great shows that were set in Florida but never filmed here (outside a few establishing shots). Among the best (in alphabetical order): Cougar Town, CSI: Miami, Golden Girls, I Dream of Jeannie and Invasion.

It also successfully attracted TV shows, commercials and films, such as Dolphin Tale. Both it and its sequel, Dolphin Tale 2, were shot in Clearwater. A study there by the University of South Florida found three of every four new visitors to the Clearwater Marine Aquarium credited the movie for their trips to the aquarium. City officials estimated the resulting economic boost in 2013 alone was $580 million. No matter the location, money spent by movie, TV and video production often ends up in local pockets. According to the Office of Florida Film and Entertainment, production companies that came to the state during fiscal year 2012-13 spent an estimated $39.8 million on lodging and $20.4 million on food. Lux says during the past three years, producers were constantly calling local Florida film offices to ask if any more credits had been found. “But without sufficient tax incentives, it just wasn’t fiscally responsible for them to come here.” He continues to say tax incentive supporters are not greedy and are perfectly happy with an allocation that fairly reflects the economic impact and jobs generated by the film, TV and video industry. But no matter what dollar amount is placed into the tax credit program, he admits that it will never completely satisfy demand. “The sheer volume of productions that want to come to Florida, hire in Florida and shoot in Florida is huge,” said Lux. “With a tax credit incentive program that’s adequately funded over a multiyear period, this state will once again win far more projects than it loses.” At PRESS TIME: The film industry tax credit legislation was not on the agenda for the special session in June. But industry leaders were hopeful funding could be worked out.

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real estate |

big deals

Miami 62

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hen is going to the mall not just about shopping? When the mall you visit is conceived, designed and developed by a Canadian-based company, Triple Five. Although you might not have heard of Triple Five, almost everyone knows about Minnesota’s Mall of America — until now, the country’s largest mall. Well, move over Minnesota — the Sunshine State is about to make way for a 4-million-square-foot complex named American Dream Miami, a shopping and entertainment theme park that will be twice as large as the one in the “Land of 10,000 Lakes,” with the potential to be Miami-Dade County’s largest private employer. Triple Five knows malls and entertainment as evidenced by the fact they have developed, owned and managed the world’s first, second and third largest tourism, retail and entertainment complexes of its kind: the Mall of America, the West Edmonton Mall in Edmonton, Canada where the company is based, and the soon-to-beopened American Dream Meadowland Mall in New Jersey. Combined, these three projects alone will attract more than 112 million visitors annually, which represents more visitors to those three properties than both Disney properties, Times Square, the Las Vegas Strip, the French Quarter, Yellowstone National Park and the Grand Canyon. Large numbers of visitors does not even begin to describe the potential of this development. “Although there are still hurdles to be overcome, this

will pay $7.25 million to the Miami-Dade County School Board, which has a leasehold interest on 45 acres of the property. The development will be located on the western edge of Miami-Dade’s development boundary on vacant land currently covered with trees and cow pastures. Triple Five does not intend to hook into the county’s water system, instead preferring to rely on water from nearby Hialeah and its new water plant. If for some reason the project does not create 7,500 jobs in 15 years, Triple Five will pay up to $5 million to Miami-Dade County. Miami-Dade Mayor Carlos Gimenez said he turned down Triple Five inquiries on county subsidies, but that he expects the company to seek state help. He also said Miami-Dade will hold at least five public hearings on the American Dream project as it works through the county’s regulatory process, which includes the zoning change needed to approve the complex. The Miami-Dade Board of County Commissioners voted 11-2 to help speed along the development. The county’s school board also voted unanimously to surrender its lease in exchange for a $7 million payment from Triple Five, in addition to $1 million for internships and academic programs in hospitality, finance, engineering, IT and others. State officials also must approve the transaction. Details of the American Dream Miami entertainment complex will ensure visitors have more than enough to attract their attention and their wallets with a mall fea-

“WE ARE VERY EXCITED BECAUSE [AMERICAN DREAM MIAMI] WILL BRING OVER 40,000 DIRECT AND INDIRECT JOBS TO THE AREA AND REPRESENTS A $4 BILLION INVESTMENT, PLUS $100 MILLION IN PROJECTED ANNUAL TAX REVENUE.” — LARRY WILLIAMS, PRESIDENT AND CEO OF THE BEACON COUNCIL

project has our full support,” said Larry Williams, president and CEO, The Beacon Council, the official economic development partnership organization for Miami-Dade County. “We fully anticipate that all the moving pieces will come together, and the project will move forward. We are very excited because it will bring over 40,000 direct and indirect jobs to the area and represents a $4 billion investment, plus $100 million in projected annual tax revenue. Triple Five did a magnificent job of coordinating the various parcels of land as it was ideal for this type of development.” As a multiuse and significantly large development stretched across more than 200 acres, the proposed American Dream Miami project is planned for Miami Lakes, at the intersection of the Florida Turnpike and I-75. Large destination complexes of this nature often attract significant foot traffic from wealthy international tourists based on the demographics seen thus far at the developer’s other complexes. Gov. Rick Scott and his cabinet in mid-April approved the sale of 82 acres of state land for Miami-Dade County, which in turn will sell the land to Triple Five. The developer also

turing 500 stores, a rollercoaster, a water park, an indoor beach, a ski slope, a lake with real submarines, a skating rink, a mini LEGOLAND theme park, a sea lion show, hotels, condos and some additional as-yet-unnamed features and a large selection of restaurants. Speaking of American Dream Miami, Greater Miami Chamber of Commerce CEO Barry Johnson said, “This project would bring jobs at all levels … and place us in the upper tier of encouraging local and international tourism in our county.” As if this development project is not enough — Triple Five, has also expressed interest in relocating its Canadian headquarters to Miami-Dade County. Triple Five Worldwide is a multinational diversified conglomerate, development and finance corporation with offices in major U.S., Canadian and global cities that currently employs more than 5,000 people. Considering about 10 percent of Canadians already flock to sunny Florida during the winter months, it shouldn’t be a hard pitch to those employees to relocate. They will probably already have friends or family in Florida, at least part of the year.

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special report |

timely and topical

we are what we eat, it can also be said we are what we build. Look around Orlando, Tampa and Jacksonville. What do these cities and suburbs reveal about their planners, real estate

Public health is no longer solely the business of health professionals. Planners and engineers also play a vital role in a community’s health.

investors and residents? A simple observation: cars rule. They are all prime examples of what resulted from the increase in automobile ownership in the 1950s and 1960s. Subsequent zoning laws encouraged low-density, disconnected street networks and the replacement of sidewalks with extra lanes for more cars. More than a half century later, the only way to get from one place to another continues to be by car, not by foot. The consequences are being felt today with the rise in obesity, diabetes and depression negatively impacting our economy, as well as our health. Good news: there’s a way to fix it. Better news: experts and local officials are already working on it.

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“ ‘HEALTHY COMMUNITIES’ IS NOT Jim Sellen remembers listening to a lecture a few years ago by Richard Jackson, a medical doctor and author of Making Healthy Places: Designing and Building for Health, Well-being, and Sustainability. At the Urban Land Institute gathering, Jackson spoke about doctors being “at the wrong end of the pipe” — too late to prevent patients from getting sick because they’re already ill by the time he sees them. Jackson explained we can’t change our genes, but we can change the design of our communities. He called on the planners, architects and engineers — the professionals who design their communities — to take the lead in prevention. The reasoning is a twist of the notion “build it and they will come,” by creating a community that encourages its residents to be active — specifically in how they travel — those residents will become healthier. Jackson’s idea stuck with Sellen, who is the Florida planning practice leader for VHB, a national, integrated planning and design services firm with offices in Orlando, Sarasota and Chipley. Sellen was already aware of what the Centers for Disease Control (CDC) labels an “alarming” crisis. More than 29 million people in the United States have diabetes and another 86 million have prediabetes. Jackson’s comments intersected with CDC data. “What I had pictured as something that would reduce the rate for juvenile diabetes, asthma, heart disease and other problems became a little more holistic. I went ‘Wow, this really resonates,’” Sellen recalls. At the time, Sellen’s 35-year career was focused on transforming traditional highway corridors and infill locations from underused and auto-centric to sustainable, market-based and transit-supportive. That thinking wasn’t substantially distant from healthy communities, and he pivoted in that new direction. “Public health is no longer solely the business of health professionals. There is a relationship between our built environment and our health,” says Sellen. “ ‘Healthy communities’ is not about the infrastructure, it’s about the people who use it. It’s not about the cars, it’s about the people driving them. That is what’s going to make planning better. It’s about what people really need, as opposed to simply

The Parramore Comprehensive Neighborhood Plan is the first local plan of its type to incorporate healthy community principles in a program to revitalize an inner city community.

ABOUT THE INFRASTRUCTURE, IT’S ABOUT THE PEOPLE WHO USE IT.” — JIM SELLEN, FLORIDA PLANNING PRACTICE LEADER FOR VHB

widening a road because it’s over capacity.” Sellen is not alone among industry brethren. The Urban Land Institute has established a Healthy Corridors National Working Group to reinvent underperforming urban and suburban corridors into healthy places. ULI District Councils in Los Angeles, Denver, Nashville and Boise are serving as demonstration corridor sites. One core element of their mission is to advance a new, healthier vision for both urban and suburban corridors and surrounding land. They’re also developing and refining replicable typologies for holistically healthy corridors. Notably, Ken Schwartz, VHB’s planning practice leader in Massachusetts, is a member of ULI’s working group. In Orlando, the Parramore Comprehensive Neighborhood Plan — the first local plan of its type to incorporate healthy community principles in a program to revitalize an inner city community — serves as a blueprint for the healthy community concept. In January, the Orlando City Council accepted the plan created through collaboration with the community, the City of Orlando’s planning staff, and VHB to be the “next great Orlando neighborhood.” Jackson, who worked at the CDC for 15 years and has chaired the American Academy of Pediatrics Committee on Environmental Health, contributed to the plan. It’s built around existing city assets, such as the local shuttle line and SunRail, and upcoming new investments, including a K-8 community school, Orlando Magic entertainment complex, Orlando Lions’ soccer stadium and further development of Orlando’s Creative Village. The plan also recommends major public safety changes, including surveillance cameras and community policing; a community school and higher education hub within Creative Village; new mixed-income infill housing in the K-8 school renaissance zone; the establishment of a Parramore Avenue historic corridor; and creating an Orange Blossom Trail/Church Street Gateway anchored by a grocery store. “The bottom line for Parramore is the school,” Sellen says. “When you look at healthy community design, a school is really the heart of the neighborhood.” The Parramore school will be pre-K through eighth grade. “Research shows education at the pre-kindergarten level is critical to a child’s success in not only school, but in life,” Sellen emphasizes. Sellen, meanwhile, has been working in north Jacksonville on redevelopment in Mayport, where a neighborhood focal point is sought. “Residents there are totally dependent on their personal automobiles,” says Sellen. “What we’ve tried to do in all of these cases is connect people. “Whether it’s connecting them to jobs, connecting them to health care or simply getting them to a grocery store.” Similarly, Schwartz of VHB worked in Bridgeport, Conn., on the Barnum Station Feasibility Study. As in Parramore, the surrounding community suffered from depressed economic conditions and low academic achievement. The Barnum study evaluated a proposed commuter rail station in East Bridgeport on a number of vacant brownfield sites. Ultimately, the project was highlighted on The White House Blog as a best practice in 2013, demonstrating the station can catalyze revitalization and create a healthy, livable community with mixed-income housing and employment at key transit nodes. Sellen is heartened by such success in moving healthy communities forward. And, he concludes, it’s not an especially difficult sell. “The thing about healthy communities is that people understand it and can communicate it,” he says. “They get it. It’s about their health and the health of their community.”

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social media | now trending in florida

More and more businesses engage in social media. Here is a sampling of interesting Florida tweets. Please join in our Twitter conversation! @ForwardFla

Florida Chamber @FlChamber

"12% of our state's population owns and operates a business" @FloridaSBDCN @HernonMfg @BaronSign #IntlDays15

Jeb Bush @JebBush

Good luck @StationDRKelly during your #yearinspace. You make our country proud.

Orlando City SC @OrlandoCitySC

Bring the whole family. Friday night vs. DC United - 7 pm. Tickets: orlan.do/ORLvDC #TheFutureIsPurple #ORLvOC

FORWARD Florida @ForwardFla

#Tech news: Monday, 3/9, is "Spring Forward" event for #AppleWatch. Wearable #app big biz - time will tell.

Guy Harvey Outpost @GHOutpost

Shining stars over a setting sun - Happy Memorial Day from the Florida Keys! Credit: Shane Kent. #OutpostAttitude

GSDO Program @NASA_go4launch

#DYK The @starwars #DeathStar could hold over 250 million #VAB. #MayThe4thBeWithYou #StarWarsDay

Tampa'sLowryParkZoo

@LowryParkZoo

Congrats to the Tampa Bay Lightning! So proud of our hometown team! #GoBolts # WeWantTheCup #UnlockTampaBay fb.me/2ft44fgwi

Enterprise Florida @EnterpriseFL

2015 Florida Spring Training up 8.1% in total attendance, all 15 teams topped 2014 attendance. @Fla_Sports flgov.com/2015/04/08/gov

Paula Dockery @Paula_Dockery

House picked up its toys and went home... 3 days early fb.me/2iEoQhysg

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S T

special report | |timely and topical transportation on the fast track

In less than a year, Welton Cadwell has accomplished much in steering the Central Florida Expressway Authority on a course to the future.

FORWARD FLORIDA: YOU ARE COMING UP ON YOUR ONE YEAR ANNIVERSARY SERVING AS CHAIR OF THE CENTRAL FLORIDA AUTHORITY. WHAT WOULD YOU SAY IS MOST NOTABLE ABOUT THIS NEW BOARD? WELTON CADWELL: Outside of me, there are real smart people [chuckle]. Seriously, something momentous is happening at CFX, and I believe it’s because of the leadership and make-up of this board. First, the state Legislature was smart in mandating that an elected official serve from each of the four counties — Lake, Orange, Osceola, and Seminole — and the City of Orlando, alongside three governor appointees. This is good not only for public accountability, but also it forces us to look at issues from a regional, not a county, lens. Think about it. Our future project decisions now cover an area larger than the state of Delaware and impacts more than 2.2 million residents. The scale alone forces us to think regionally and really plan ahead. We’re not talking about what is needed this year or even what is needed this decade. This is about what the region needs to stay competitive and be mobile for the next

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hen Lake County Commissioner Welton Cadwell was tapped as chairman of the new Central Florida Expressway Authority (CFX) in July 2014, he was lauded for his regional approach, no-nonsense style and understanding of what the traveling public wants — the freedom to get where they want, when they want and how they want more efficiently. One month earlier, Gov. Rick Scott had signed Senate Bill 230 to create CFX, superseding the existing Orlando-Orange County Authority and broadening its scope. The agency’s board was increased from five to nine members; jurisdictions were expanded WELTON CADWELL to also include Lake, Osceola and Seminole counties; and multimodal responsibilities were added. Cadwell, a Lake County Commissioner since 1992, is charged with charting a new course for the agency. At the top of the list is rebuilding public trust. Cadwell talks about progress and purpose since that time:

20 or 40 years. Second, I have been around long enough to have worked or served with each of these elected folks on other boards or committees. Let’s say there wasn’t a courting period. We jumped in starting day one and got down to business. The last thing I would say is that this board cares. Caring, it turns out, takes effort. It’s raising the bar to the point where we really got to stretch. Some days it’s uncomfortable, but we all agree it’s worth it.

FF: FDOT'S CONSTRUCTION ON THE $2.3 BILLION I-4 ULTIMATE PROJECT IS GEARING UP. SIX YEARS OF CONSTRUCTION WILL HAVE A SIGNIFICANT IMPACT ON PEOPLE WHO NEED THEIR CARS TO COMMUTE TO WORK. DOES CFX HAVE PLANS TO EASE THE COMMUTERS' BURDEN? WC: It was Seminole County Commissioner Brenda Carey and Governor Appointee Michael Scheeringa who asked the same questions months ago, especially since many Seminole residents take I-4 to work. And, what

the board talked about is if there is a perception out there that ‘I can’t afford to use the Expressway.’ So we wanted to do everything we can to do help them out. CFX staff got to work and presented several options that were in line with our bond convenants. We pushed for discounting tolls for volume drivers during the construction period and dropping the minimum opening balance on E-PASS accounts. The board approved it. And, starting July 1, 2015, those drivers taking S.R. 414, S.R. 429 from Apopka to Disney and S.R. 417 from University Boulevard to International Drive will see relief — both in time and money.

FF: CFX RECENTLY SECURED A $194 MILLION LOAN AT A 1.23 PERCENT RATE FROM THE FEDS — A TIFIA LOAN. HOW WOULD YOU DESCRIBE ITS SIGNIFICANCE FOR CFX AND THE REGION? WC: It’s significant. … Any time you go out and issue a bond, it’s a pretty arduous process, but getting a loan from the feds tops it. So it was only a few months ago, CFX

With all that in mind, it boils down to figuring out ways we can enhance the partnerships we already have and create new ones. If you look at areas throughout the country that have been successful, even in the downturn, the constant is people can get to places easy. That’s because the DOTs, transit, rail, expressways, planning agencies and even trail folks all worked together with the same purpose in mind. And, ultimately we’re going to try to do that here.

FF: VISIONING AHEAD 25 YEARS IS A LITTLE DAUNTING. WHAT COULD WE BE SEEING? WC: People in Florida are used to having their cars and that’s great, but I expect in 25 years there will be other options. By doing this visioning work today, I’m confident we’re going to be a player in those options tomorrow. And, taking into account the footprint of Central Florida continues to grow, even in a downturn, if the transportation network is not there, then it’s all for naught. I’ve seen it in the 23 years I’ve been on the Lake County Commission. Even when you have the greatest project in the world, if people can’t get there and get back, it doesn’t work. received a $194 million TIFIA loan after working on it for years. (TIFIA stands for the Transportation Infrastructure Finance and Innovation Act and is administered by Federal Highway Administration.) These federal funds will help speed up CFX's portion of the $1.6 billion Wekiva Parkway project, possibly taking 18 months off the schedule. That means we would be finished with our sections in 2018 — which will help complete the beltway around Metro Orlando much sooner than expected. I would like to add that Wekiva Parkway is one of those transformational projects transportation folks like to talk about in trade journals. I won’t get technical, but let’s just say we’re completing the beltway around Metro Orlando, giving customers another choice to get to work, get home or get wherever they want. It’s one of the projects that my grandchildren’s children will talk about, wondering what life was like without the Wekiva Parkway.

FF: YOUR 2040 MASTER PLAN HAS BEGUN. HOW DOES THAT PLAN MESH WITH THE CENTRAL FLORIDA EXPRESSWAY AUTHORITY’S BROADER POWERS THAT NOW ALSO ENCOMPASS MULTIMODAL TRANSPORTATION? WC: Our 2040 Master Plan is going to be created with community input across Central Florida — much further beyond traditional planning councils, transportation planning MPOs and chambers. Not only will we involve more people in the process, but also the scope will be larger because the legislature added multimodal to CFX’s mission. The timing coincidently couldn’t have been better. Look around you. All the talk in transportation circles centers on greater connectivity. Look no further than SunRail expansion, All Aboard Florida, OIA (Orlando International Airport) connections, LYNX’s Bus Rapid Transit (BRT), and the list goes on and on. Multimodal conversation is nothing new to this community. But what is new is that the region’s local tolling authority, CFX, now has a seat at the table. What that looks like? That’s for our customers, the community and the board to work out.

FF: THE END OF THE FORMER ORLANDOORANGE COUNTY EXPRESSWAY AUTHORITY WASN’T PRETTY, WITH ALL THE QUESTIONS ABOUT ETHICS. HOW DO YOU MAKE NEGATIVE PERCEPTIONS GO AWAY AND HAVE PEOPLE BELIEVE IN THE NEW CENTRAL FLORIDA EXPRESSWAY AUTHORITY? WC: I would say that only in the last maybe 60 days news stories and TV stories haven’t started with “scandal.” … We thought it might take a little longer. We even talked about it. You just have to suck it up and realize that every article might start with the past. This is a new board and new agency as it relates to our mission and how we do things. Fortunately we have inherited a solid organization and staff. I think we’re getting to a better place quicker, and I think hopefully with the work we’re doing and with the customer outreach we’re doing, we can show people that we care, that we’re truly engaged. I am looking forward to what the future holds for us.

EDITOR'S NOTE: JUST PRIOR TO PRESS TIME, THE CENTRAL FLORIDA EXPRESSWAY AUTHORITY NAMED LAURA KELLEY AS ITS FIRST EXECUTIVE DIRECTOR. PREVIOUSLY, KELLEY WAS DEPUTY EXECUTIVE DIRECTOR OF FINANCE AND ADMINISTRATION FOR CFX.

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site selection |

a closer look

AIRBUS IN ALABAMA = JOBS IN FLORIDA Mobile’s new facility is a plus for the Sunshine State economy.

he landing of a $600 million A320 aircraft building facility from international juggernaut Airbus in Mobile, Ala., has economists in Florida excited. They’re excited not just because the French manufacturer is coming to an adjoining state — it’s because Airbus’ arrival signifies major growth opportunities in Florida, particularly from other companies setting up shop in orbit of Airbus. The Mobile plant, Airbus’ first U.S.-based production facility, will assemble A320 aircrafts via parts shipped overseas. The facility, which begins operations this year, is expected to have its first plane completed and delivered in spring 2016. Airbus made the decision to build a plant in the United States after it lost a $35 billion contract to build U.S. Air Force refueling tankers to Boeing in 2011. According to media reports last December, Allan McArtor, chairman and CEO of Airbus Group, Inc., said, “We’ve already had seven to eight years of orders for a single-aisle aircraft from around the world. But the U.S. is the largest market for this kind of airplane. There’s about 4,600 airplanes of this class that will be required in the next 20 years.”

JUNE 2015 • FORWARDFLORIDA.COM

JOBS, JOBS, JOBS

Robert Weissert, vice president of Tallahassee-based Florida TaxWatch, said the facility will be a “major boon” for the economy of Mobile and the surrounding areas — which includes Northwest Florida. “This will create high-wage, high-skill jobs,” he said. According to Brice Harris, Ph.D., director of Strategic Initiatives at the University of West Florida in Pensacola, Airbus will bring 1,000 jobs to its facility. This will have a much wider-spanning effect on the surrounding areas’ economies, bringing a standard economic multiplier of four jobs created for every one direct job with Airbus. “You’ll get one direct, high-wage manufacturing job, and four other jobs in the

Airbus’ first U.S.-based production facility in Mobile, Ala., will begin assembly of A320 aircraft by spring 2016.

area, in industries like suppliers, restaurants, dry cleaners and more,” Harris said. He noted that predicting job creation is “not an exact science.” While the facility will come to Mobile, the size and scope of the project will have an impact in Florida and Mississippi. “We can assume half of the jobs will be created in Mobile. The remaining 50 percent could be equally divided between Northwest Florida and Southern Mississippi.” The Airbus facility not being directly located in Florida is actually a “best-case scenario” for the state. Harris went on to say, “Florida is in close proximity to the facility, and can reap the benefits of it without having to leverage economic development incentive programs or deal with the strain on the infrastructure. Any

project this size has a need for public services in bulk. We’re getting a great deal with the facility being located in Alabama.” Larry Sassano, president of Florida’s Great Northwest, said the presence of multiple military bases in the area may serve as an enticing factor for Airbus when deciding where to hire its employees. Florida’s wide range of bases, from Navy to Air Force to Army and more, means many veterans will stay in Florida after they have served. Additionally, the majority of veterans are young enough to start second careers, so they can take jobs like the ones offered by Airbus. “They are able to use their skill sets from the military and transfer them to the private work sector,” Sassano said. “They are hard workers, disciplined and they already have medical benefits from the military, so Airbus doesn’t have to worry about that.” Through its schools, Florida can continue to train future engineers and manufacturers, Sassano said — a practice he has already seen in Airbus hiring. “Colleges have welding programs to get graduates certified, and then they are picked up by Airbus.” Weissert said schools should be motivated to continue offering educational opportunities to students who want to focus on high-skill manufacturing jobs, adding that, “We have a number of educational institutions that focus on those jobs.” THE RACE TO ATTRACT SUPPLIERS

Airbus, as a large manufacturer, could attract parts suppliers to set up shop in the region as well — and Florida will be in “stiff competition” with Mississippi and Alabama to attract those suppliers. Harris said suppliers looking to come to the area may be enticed by programs like CareerSource Florida’s Quick Response Training, which “provides grant funding for customized,

skills-based training and design, through partial reimbursement, to new or expanding businesses in Florida’s targeted industries,” according to its website. Much of the rest of the suppliers’ decisions on where to settle comes down to factors such as cash incentives, tax rebates and workforce training grants. Personal taste may also play a role, as they look for areas with a certain quality of life and good schools. An incentive for new businesses following Airbus to come to Florida is a special tax exemption for aircraft equipment, Weissert said. The exemption in question allows aircraft manufacturers a tax exemption on replacement of parts, engine, equipment and labor on planes exceeding 2,000 pounds in maximum certified takeoff weight. This is an expansion of older tax exemptions that were more restrictive, and the restrictions have been loosened now to make Florida more competitive with nearby states. With the new facility in Mobile, parts manufacturers in Europe and Asia may start to consider the margin and rates of return on their sales when they have to ship to America, Harris said. At some point, they may not be making enough money to justify shipping their parts across continents and oceans. “I’m not sure about other plane assembly companies coming here, but parts suppliers may decide to relocate here,” Harris said. “It’s likely just as expensive to send parts to the United States as it is to generate them locally.” Sassano said he has seen interest in Florida from suppliers all around the country and even internationally. “I go to conferences in Paris, California, Seattle,” he said, “and I see many suppliers from aircraft companies like Boeing, with a serious interest in making facilities here. The key is the availability of a skilled work force. We have that.”

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business of sports |

keeping score

Grapefruit vs. Cactus

Spring training is the longest-running economic development engine in Florida sports and 2015 didn’t disappoint. According to the office of Gov. Rick Scott, spring training attendance at games in the Sunshine State’s GRAPEFRUIT LEAGUE reached almost 1.6 million fans. Once again, Arizona’s Cactus League drew more fans — almost 1.9 million — and once again, the numbers don’t tell the whole story. As we noted in an earlier blog, all but one of Arizona’s spring training stadium seats more than 10,000 fans while most Florida stadiums retain the smaller, more intimate setting traditionally associated with spring training. Additionally, five Cactus League stadiums host two teams,

JUNE 2015 • FORWARDFLORIDA.COM

while there are currently only two Grapefruit League stadiums sharing teams. The multi-team arrangement can skew the numbers as fans of both teams will attend in roughly equal numbers, regardless of the official home team. Bottom line: Florida 2015 spring training games once again were played in stadiums filled to almost 90 percent capacity while Arizona games on average were played to less than 70 percent capacity. There’s no question that spring training’s hottest ticket continues to be Florida — spring training’s true home.

Though attendance is growing at Arizona spring training games, Florida’s Grapefruit League remains the hotter ticket with stadiums filling almost to capacity.

Florida is poised for a major investment in sports facilities. Orlando City's Stadium

Stadium Funding

ORLANDO CITY SOCCER has taken the traditional professional sports team playbook and torn it to shreds. Rather than publicly funding the team’s new stadium, as originally planned, the Lions reversed field and in late May announced they would build the soccer-only stadium solely with private financing. Not only that, the team is purchasing the land on which the stadium will be built from the City of Orlando and will pony up about $3 million for storm water retention work at the site. Team officials touted the move as a major investment in Orlando and acknowledged it was driven by two factors not anticipated when Orlando SC was granted a Major League Soccer franchise: delays in expected state funding (see next item) and stronger fan support than Lions officials anticipated. The latter issue is a great problem for any team to have. The Lions are averaging 37,000 fans in the ORLANDO CITRUS BOWL and, even allowing for the novelty of the team to war off, a 19,500-seat stadium (as originally envisioned) no longer seems adequate. The re-imagined venue will seat as many as 28,000 and likely will exceed the original cost estimate of $115 million.

The Florida Legislature, meanwhile, is looking as if it may punt the whole issue of stadium financing. First, the Joint Legislative Budget Commission decided early this year not to exercise its authority to divvy up $7 million in sales tax revenue for stadium construction or upgrades and passed the issue to the Legislature. Lawmakers then adjourned their regular session without agreeing to a budget, leaving stadium financing in limbo. The Orlando soccer stadium ironically was rated as the top project by the Legislature’s Office of Economic and Demographic Research, followed in order by upgrades to Jacksonville’s EVERBANK FIELD ($1 million annually for 30 years), SUNLIFE STADIUM ($3 million for 30 years and DAYTONA MOTOR SPEEDWAY $3 million for 30 years). As the Legislature begins its special session (see Legislative), it is unclear whether the funding will survive budget negotiations. Downtown stadiums have been credited with revitalizing neighborhoods. Stadiums built in suburbs seem to have a lesser economic impact on their immediate neighborhoods but may have community wide economic benefit if they host a major event like a Super Bowl. A lack of stadium upgrades has been cited as a reason the state has not hosted the big game since 2010 (see ICMYI, page 13). For now, the clock is winding down, and the outcome very much in doubt.

Jacksonville’s EverBank Field is one Florida stadium where funds can help finance upgrades to stay competitive, but the Legislature may not view professional sports as an economic development priority.

As the Rays Turn St. Petersburg Mayor Rick Kriseman says the Memorandum of Understanding (MOU) he negotiated with the TAMPA BAY RAYS provides a viable future for Major League Baseball in the area. Others on the City Council believe it lets the Rays leave Tropicana Field too cheaply and actually might make it easier for them to leave Tampa Bay altogether. Waiting in the wings is a city that lost its Major League franchise for the exact same reasons the Rays’ future in St. Petersburg remains in doubt. Got all that? A late May City Council “workshop” on the Rays’ future did little to clarify the situation. The Rays are contractually bound to Tropicana Field through

2027 but are having a difficult time drawing fans to the stadium, routinely finishing last in MLB attendance. All of which led Forbes to determine the team is the least valuable in baseball. Some City Council members have signaled they might support the MOU if the price tag for the Rays leaving Tropicana Field is increased beyond the current $2 million for each year they leave early. Council member Steve Kornell suggested $55 million, citing the $45 million Seattle extracted from the NBA Supersonics to break their lease in 2008 and move to Oklahoma City (Kriseman contends that’s a false analogy because the MOU only permits the Rays to look for a new home in Pinellas

County or neighboring Hillsborough County, not leave the area entirely.) Meanwhile, Montreal is being less than subtle in indicating the Rays would be welcome there — ironic considering that city lost the Expos to Washington after the 2004 season because it could not deliver an alternative to Olympic Stadium. As was the case with the Rays, the Expos fielded competitive teams in the 1990s and finished above .500 as late as 2003, yet crowds in the Expos’ last few seasons in Montreal make attendance at Tropicana Field look positively robust. The Expos averaged only 9,300 fans per game the last season there while the Rays drew almost 18,000 per game in 2014.

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business of sports |

keeping score

Orlando City Soccer Roars Before leaving soccer and economic development behind, it should be noted that several estimates indicate the home opener for the ORLANDO CITY LIONS had a $4 million economic impact on the city. The match, which drew 62,000 fans to the renovated Orlando Citrus Bowl, had another impact as well: the team is rethinking its attendance goals going forward. Almost immediately after the game, the club announced it was increasing available seating at future matches to 23,000 (the huge crowd at the opener always was expected to be a one-time phenomenon). Attendance for the second home match, against the Vancouver Whitecaps: 31,072. Looks like the City Beautiful is sitting pretty financially.

Build it Like Beckham? OK, maybe all those predictions from 25 years ago about the impact youth soccer would have on America are coming true, because here’s yet another soccer item. Soccer superstar DAVID BECKHAM continues to struggle with funding and a site for his Miami MLS franchise, scheduled to start DAVID BECKHAM play in 2017 (or maybe 2018). Miami-Dade leaders and Beckham still have not agreed on a location — something near Marlins Park now is in the mix — or a financing plan. Funding from the state remains suspect and city leaders are uber-cautious about local funding after the recent Marlins stadium package. And, in what may or may not be an ominous sign, Major League Soccer moved ahead with granting a new franchise to Minnesota, one that appears more certain to begin play by 2018.

JUNE 2015 • FORWARDFLORIDA.COM

THE ASSOCIATED PRESS

NCAA Tournament games in March, including North Carolina-Arkansas, and new initiatives from the NFL Jaguars have given Jacksonville’s sports scene a boost.

Resurgent Jacksonville Speaking of Florida teams in strange places, talk of the NFL JAGUARS moving to London seems a little more ridiculous with each passing day. Yes, the team will continue playing an annual game in Wembley Stadium, but the city’s credentials as a sports town are getting stronger every day. Besides the possible upgrades to EverBank Stadium noted earlier, Jacksonville enjoyed significant economic benefit from hosting the first two rounds of the NCAA MEN’S BASKETBALL TOURNAMENT at Veterans Memorial Arena. March Madness lived up to its name in North Florida, as Georgia State upset third-seeded (and trendy Final Four pick) Baylor and mighty North Carolina fended off a strong upset bid by Harvard (yes, THE Harvard). Having the Tar Heels play was an economic boon all by itself, as one fan told the Jacksonville Journal that Carolina

fans alone “filled half the arena.” The Jaguars, meanwhile, are looking to burnish their image as a business opportunity for Jacksonville companies. The team lags behind many of its NFL counterparts among season ticket holders who use their packages as business opportunities, so the team has launched “JAGUARS BLACK,” a B2B program designed to allow corporate season ticket holders to maximize the value of their packages. Customers who participate in the program will receive a “playbook” detailing how to target business prospects for invitations to the game, ways to enhance the experience at the stadium and tips for how to follow up after the event. Oh, and the JACKSONVILLE ARMADA FC of the North American Soccer League set a new attendance record for the minor league, when more than 16,000 fans turned out at EverBank Field in April for the team’s first match.

Other Stadium Updates In other sports facility news: UNITED STATES TENNIS ASSOCIATION officials and local leaders broke ground in April on the new $60 million tennis facility — the largest tennis facility in the country —at Lake Nona in Orlando. Construction also began in April on the $27 million SEMINOLE COUNTY SPORTS COMPLEX near Orlando Sanford International Airport. The facility will include softball, baseball, football, soccer and lacrosse fields and other facilities to accommodate those attending events there. The largest ICE SKATING COMPLEX in the Southeast is set to open in Pasco County this fall. The $20-million, privately owned facility will be located in Wesley Chapel (north of Tampa) off Interstate 75 and will include four rinks, one of them Olympic-sized and will accommodate all ice sports, from hockey to figure skating. The ORLANDO SOLAR BEARS minor league hockey team also announced plans to build a two-rink, 115,000-square-foot facility near Winter Garden. The complex also will include shops and restaurants. The $400 million “DAYTONA RISING” upgrade to America’s most famous NASCAR speedway continues apace. The latest change is the demolition of the iconic Sprint Tower.

STREAMSONG

Streamsong Resort is adding a new black course to its acclaimed blue (shown here) and red golf courses.

Coates Golf Championship Golf remains Florida’s biggest sport from an economic development standpoint because it encompasses both the professional tours and the weekend duffers. So, it’s worth noting that for the first time in more than a decade, the LPGA tour kicked off in the Sunshine State, with the COATES GOLF CHAMPIONSHIP presented by R+L Carriers. Played in January at the Golden Ocala Golf and Equestrian Club and featuring a $1.5 million purse, the $225,000 top prize was captured by South Korea’s Na Yeon Choi. In other golf news, a third course has been announced at the prestigious STREAMSONG RESORT in Polk County. Joining the acclaimed blue and red courses, is the black course, being designed by Gil Hanse and opening in 2017.

Farewell to a Legend Finally, this feature would not be complete without noting the passing of legendary University of Florida head football coach and athletic director RAY GRAVES. Graves took over the football team and athletics department in 1960 and served as the Gators’ head coach for a decade. His teams posted a 70-31-4 record (including 4-1 in bowls), and he is best remembered for coaching Heisman Trophy winner (and future UF coach) STEVE SPURRIER. He stayed on for another decade as AD, and generally is credited with building both an athletic and academic powerhouse in Gainesville. More than 90 percent of his players graduated, and half of them went on to earn advanced degrees. While coaching at UF in the mid-1960s, Ray Graves confers with Heisman Trophywinning quarterback (and future UF coach) Steve Spurrier.

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legislative update |

policy making in action

Florida lawmakers try to put the difficult ending of the regular session behind to write a state budget and insure 800,000 Floridians. Session Agenda It wasn’t exactly the same as taking your ball and going home with it, but the Florida House certainly put action behind its rhetoric when it walked out of the LegislaTALLAHASSEE ture’s regular session three days ahead of the scheduled adjournment. The walkout was prompted largely by House-Senate disputes over the state budget and Medicaid expansion, and the result is the special session that got under way June 1. Both issues were included on the special session agenda announced last month by House Speaker Steve Crisafulli, R-Merritt Island, and Senate President Andy Gardiner, R-Orlando, along with bills that would remove a regulatory hurdle for hospitals wishing to increase their number of beds, permit more medical professionals who are not doctors to write prescriptions and divert a portion of documentary stamp funds to water and land protections approved under Amendment 1. The two chambers ended the regular session more than $4 billion apart on spending out of an $80 million budget. Nothing in the joint proclamation resolved the budget impasse but both Crisafulli and Gardiner said the Legisla-

JUNE 2015 • FORWARDFLORIDA.COM

ture would meet its obligation to have a state budget in place before July 1. The session is currently scheduled to end June 20. The budget deadline is important because Florida’s bond rating — currently AAA, the highest possible — could be at risk if investors perceive the state’s budget process as unreliable. The U.S. bond rating suffered in 2011 when Congress waited until the last minute to broker a deal raising the U.S. debt ceiling. A Medicaid solution, meanwhile, appears elusive. The regular session impasse centered on how to replace the Low Income Pool STEVE CRISAFULLI (LIP) program, a state-federal program the federal government is ending. LIP’s demise could leave as many as 800,000 Floridians without health insurance. Shortly before the special session began, Gardiner announced support for a compromise introduced by Sen. Aaron Bean, R-Fernandina Beach, that would alter the Florida Health Insurance Affordability Exchange (FHIX) program the Senate passed during the regular session. The Bean legislation would eliminate Phase One Medicare enroll-

ment from the proposed program, allowing eligible Floridians to move straight to FHIX. The program is targeted at Florida residents who make 138 percent of the federal poverty level or less, and participants would pay a monthly premium of between $3 and $25, depending on their income level. “Passage of the FHIX plan will help mitigate the impact to our economy as we transition from LIP to a more sustainable long-term solution,” said Sen. Rene Garcia, R-Hialeah. Though Crisafulli agreed to put Medicare expansion on the special session agenda, he and Scott began the session still opposed to taking any federal dollars for health insurance.

Florida and the White House

Other Key Bills Despite all the drama surrounding the Special Session, the Legislature did tackle a number of other issues during its session. Key bills that passed included legislation allowing for online voter registration, a measure that allows tax-free savings accounts to help defray the cost of caring for special needs children, a repeal of the stateâ&#x20AC;&#x2122;s gay adoption ban and a measure that makes extra land available in Palm Beach County to build a new, joint spring training facility for the Houston Astros and Washington Nationals. Significant bills that failed included water resource legislation that was a

high priority for Crisafulli, a bill that would have expanded table games and slot machines in South Florida, a measure extending the Seminole gambling compact, a bill to establish new regulatory oversight for rideshare programs like Uber and Lyft, legislation to expand medical marijuana usage and a bill to outlaw texting while driving. In unique limbo are bills to provide new stadium funding (see Sports, page 72) and another reinstating performance-based tax credits for the Florida film industry (see Premiere Florida, page 56). Both face an uphill struggle in the special session but may have a narrow path to enactment via the budget negotiations.

Congress continues to plod at a relatively slow place but Florida has captured a unique spot on the national political landscape â&#x20AC;&#x201D; there are four people who have homes in the state running for president. Even in a crowded GOP field where it seems easier to keep track of who is not running, the Florida Four stand out. Two are candiJEB BUSH dates whose political careers were bred and nurtured in the Sunshine State: former Gov. Jeb Bush and U.S. Sen. Marco Rubio. Bush, the son of one former president and the brother of another, has not BEN CARSON officially declared his candidacy but is raising significant amounts of campaign cash. Rubio, a Tea Party favorite, announced his candidacy in April. The other two canMIKE HUCKABEE didates have political roots elsewhere and either moved to Florida after retiring from their primary careers or live significant portions of the year in a vacation home here. Former ArkanMARCO RUBIO sas Gov. Mike Huckabee, who sought the nomination in 2008 and was born in the same small town as Bill Clinton, has a home in Blue Mountain Beach, though he still considers Arkansas his political base. Ben Carson, a retired neurosurgeon, was raised and educated in Michigan and achieved his greatest medical triumphs working at Johns Hopkins Hospital in Baltimore. However, after retiring, he moved his family to Palm Beach.

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parting shot |

people and places

Since the launch of the Hubble Space Telescope in April 1990, our view of the universe has never been the same. Through Hubble’s lens, we have been able to view many never-before-seen images of space, but the “Pillars of Creation” photograph may be the most breathtaking and memorable. To celebrate Hubble’s 25th anniversary, a larger view of this iconic photo has been released using a compilation of multiple images using the telescope’s Wide Field Camera 3. The photo gives a glimpse into new star formation in the Eagle Nebula. The original was taken in 1995. CREDIT: NASA/ESA/HUBBLE HERITAGE TEAM (STSCI/ AURA)/J. HESTER, P. SCOWEN (ARIZONA STATE U.)

JUNE 2015 • FORWARDFLORIDA.COM

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