Montgomery Business Journal – April 2014

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Contents

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Calendar

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Q&A with Montgomery Area Association of Realtors Executive Vice President Brad Owen

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Donations needed to build River Region Freedom Park

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Reporter’s Notebook

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Upscale apartments coming to Maxwell Boulevard

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Foshee Management Co. is transforming Lower Dexter Avenue

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Firm hopes to renovate Dexter Avenue properties

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Member Profile: Hartzell Engine Technologies

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The Alley turns five

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Martha’s Place is just as popular as ever at its new home

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Angel Investor Management Group offers “home run” opportunities

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Developer plans 64 loft apartments on parking lot site

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BBVA Compass officials excited about move to downtown

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Business Buzz

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Members on the Move

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Ribbon Cuttings & Ground Breakings

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New Members

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Economic Intel

April 2014 Montgomery Business Journal

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THE NUMBER ONE BUSINESS SOURCE FOR MONTGOMERY AND THE RIVER REGION PUBLISHER

Randall L. George EDITORIAL

Tina McManama David Zaslawsky Lashanda Gaines Melissa Bowman DESIGN

Copperwing Design PHOTOGRAPHER

Robert Fouts ON THE COVER:

Jerry Kyser is CEO of Jerry Kyser Builder Inc.

ADVERTISING:

Linda Drumheller 334-240-9494 mbjsales@montgomerychamber.com Montgomery Business Journal c/o Montgomery Area Chamber of Commerce Post Office Box 79 41 Commerce Street Montgomery, Alabama 36101 Telephone: 334-834-5200 Fax: 334-265-4745 Email: mbj@montgomerychamber.com www.montgomerychamber.com/mbj The Montgomery Business Journal (USPS NO. 025553) is published monthly except for the combined issues of June/July/August and November/December, by the Montgomery Area Chamber of Commerce, 41 Commerce Street, Montgomery AL 36104, (334) 834-5200, www.montgomerychamber.com. Subscription rate is $30 annually. Periodicals Postage Paid at Montgomery Alabama, 36119+9998, USPS NO. 025553. Volume 6, Issue 4 POSTMASTER send address changes to Montgomery Business Journal, c/o Montgomery Area Chamber of Commerce, P.O. Box 79, 41 Commerce Street, Montgomery AL 36101, or email mbj@montgomerychamber.com. The Montgomery Business Journal welcomes story ideas from its readers. Email to: editor@montgomerychamber.com. Subscriptions are a part of the Montgomery Area Chamber of Commerce dues structure. Subscriptions can also be purchased for $30 per year at www.montgomerychamber.com/mbjsub.

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Montgomery Business Journal April 2014

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Calendar Montgomery Area Chamber of Commerce Events

APRIL

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60 MINUTE COFFEE Sponsored by Walker360 8 AM @ Walker360 2501 East 5th Street, Montgomery Free event, exclusively for Chamber Members BUSINESS AFTER HOURS Sponsored by Infinitus Energy 5 PM @ Infinitus Energy 1551 Louisville Street, Montgomery Free event, exclusively for Chamber Members CONVERSATIONS: ROUNDTABLES FOR PROFESSIONAL WOMEN Presenting Sponsor: Southeast Cherokee Construction, Inc. 11 AM @ Wynlakes Golf & Country Club 7900 Wynlakes Boulevard, Montgomery Details and registration: montgomerychamber.com/2014conversations BUSINESS TAXATION WORKSHOP Business Basics Presenting Sponsor: BWS Technologies Two Sessions: 3 PM & 6 PM @ Small Business Resource Center 600 South Court Street, Montgomery Free event, open to the public BUSINESS PLANNING SEMINAR Business Basics Presenting Sponsor: BWS Technologies April 7th & 21st 4 PM @ Small Business Resource Center 600 South Court Street, Montgomery $10 at the door

Montgomery Business Journal April 2014

MAY

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CHAMBER GOLF CLASSIC Presenting Sponsor: Ropir Industries 11:30 AM @ Robert Trent Jones at Capitol Hill 2600 Constitution Avenue, Prattville Registration: montgomerychamber.com/golf 60 MINUTE COFFEE Sponsored by Alabama Artificial Limb & Orthopedic Services (AALOS) 8 AM @ Montgomery Antiques & Interiors, 1955 Eastern Blvd., Montgomery Free event, exclusively for Chamber Members ALABAMA UPDATE Presenting Sponsor: Beasley, Allen, Crow, Methvin, Portis & Miles, P.C. 11 AM @ Embassy Suites Montgomery Hotel and Conference Center, 300 Tallapoosa St., Montgomery Registration: montgomerychamber.com/ALupdate BUSINESS AFTER HOURS Sponsored by New Park Development 5 PM @ New Park Pool 1507 Morningside Park Drive, Montgomery Free event, exclusively for Chamber Members BUSINESS PLANNING SEMINAR Business Basics Presenting Sponsor: BWS Technologies May 5th & 19th 4 PM @ Small Business Resource Center 600 South Court Street, Montgomery $10 at the door

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HOME, SWEET HOME Q & A WITH BRAD OWEN

© Fouts Photography

Brad Owen is the executive vice president of the Montgomery Area Association of Realtors. He was recently interviewed by the Montgomery Business Journal’s David Zaslawsky Montgomery Business Journal: What are your responsibilities as executive vice president of the Montgomery Area Association of Realtors? Owen: I basically oversee the association for the Realtors here in the River Region. We operate the MLS (multiple listing service) for the Realtors. We handle the lockbox system for the (listings). We handle their education; their code of ethics; any arbitration issues that may come up. Brad Owen oversees 1,000 members as executive vice president of the Montgomery Area Association of Realtors.

MBJ: How many members does the association have? Owen: Just under 1,000 between affiliates and Realtors. MBJ: How do you describe the overall residential real estate market in the Montgomery area? Owen: If you want one word to describe Montgomery it’s stable. Whenever you look at the charts we’re just stable. MBJ: Isn’t stable a good thing at this point? Owen: It’s a great thing at this point. We like to say that we’re stable and that we never saw the gigantic upswing a few years back and we didn’t see the bottom drop out the way a lot of markets did. We’re a lot more stable with subtle changes and that’s good for a market like ours, which is typically a long-term investment type market.

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Montgomery Business Journal April 2014

MBJ: Please talk about the long-term investment market. Owen: A lot of people still see their home as a long-term investment. They are not looking to move every two years. The typical homeowner is not a flipper in Montgomery. You do have those type of investors who come in and do that, but in Montgomery we’re more consistent as far as homeowners and the length of time they stay at their property. MBJ: You said the Montgomery area market did not experience the high highs and low lows that other cities did. What did Montgomery experience? Owen: We were not a California, Arizona, Florida or Las Vegas type of market. We did have issues and still have issues. Building is slowly coming back. I was talking with a builder the other day and they are getting ready to bring about 100 lots on line. We haven’t seen a 100 lots come on line in quite a few years. MBJ: What part of the city? Owen: It’s going to be East Montgomery. MBJ: Could that open the door for other builders? Owen: Others will follow suit and the financing has eased up a little bit. The banks are open to new projects now and are willing to lend money. The developers are then able to move forward with their projects. One of the problems we saw in real estate in the Montgomery area was when the new construction stopped it hurt residential sales because those folks that wanted to move up didn’t really have that new home option to look at. If you had someone who may have been in their first home and wanted to move up to a new home that option wasn’t there so they stayed. The new buyers coming into

the market didn’t have that first-time home market to choose from as well. It was kind of a domino effect.

properties. They are opening up doors and their phones are ringing. You can’t ask for anything more than that. It’s all over town.

MBJ: What is the story that the latest sales numbers tell you?

MBJ: Is that with existing homes or new construction?

Owen: What it tells us is that literally over the last three years we have seen increases in every area of the River Region: Montgomery, Prattville, Millbrook, Wetumpka. And that’s what we needed to see. We needed to see consistency throughout the River Region to show a healthy market and that’s what we’ve seen.

Owen: The new construction is selling as fast as it can come out of the ground for the most part, but it (buying) is across the board. It can be anything from a high end $300,000 house and up to a $50,000 foreclosure. It runs the gamut.

MBJ: What is the percent range of those gains? Owen: Ten percent increases over that threeyear window. MBJ: Is the residential real estate market ready to go beyond stable? Has the foundation been set? Owen: We think so. In talking with our membership, the comments that I get from the members over and over and over again who cover the River Region – ‘I haven’t been this busy in years.’ They are showing

MBJ: Is this the best the real estate market has been in years? Owen: Absolutely. MBJ: Is it back to pre-recession levels? Owen: No. MBJ: Are we still a year or two away from those pre-recession levels? Owen: Two years-plus if we ever reach those numbers again. I don’t know if you can say that was a healthy (time) for real estate. I think you might have had too much easy money in the real estate market.

MBJ: How do you characterize the singlefamily residential market in the River Region? Owen: It’s the lifeblood of real estate. It’s what we sell the most of. It’s what everybody wants. It’s the American Dream. MBJ: And it’s looking better and better here. Owen: Everyday. MBJ: How do you characterize the multi-family market in the River Region? Owen: The multi-family market is actually doing fantastic across the board. Our property managers are as busy as they have ever been. MBJ: Is one of those sectors – single-family and multi-family outperforming the other in the local market? Owen: They are probably close to equal. Montgomery’s rental market is very diverse. You have everything from the condos downtown to again high six-figure properties and everything in between with the apartments. The choice there is very, very broad and again, it’s all over the River Region – Montgomery, Wetumpka, Prattville, Millbrook. There are options everywhere. As CONTINUED ON PAGE 10

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April 2014 Montgomery Business Journal

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the market slowed and the appreciation of houses slowed and the ability to sell a house on a two-year deployment slowed, you tended to see the military shift a little bit more toward rentals than purchasing. I think that was a big factor in the boon in the rental market here. MBJ: Are the military personnel starting to buy more because the real estate market has improved?

MBJ: What are the trends you are seeing for inventory; prices; time on the market, etc?

Owen: Yes. Obviously, they want something nice to raise their family, but I think they do see it as an investment as well.

Owen: Days on the market is probably still a little high at 125 days. We would like to see that move to below 100.

MBJ: Why has the Montgomery residential market led the state in growth the past two years with a 14.6 percent increase last year and 12.1 percent increase in 2012?

MBJ: What about prices and supply?

Owen: I wish I knew. I asked my leadership what do you think is the trend? They said, ‘If we knew we would build everything that we could build to meet that trend.’ No one knows. MBJ: Why is Montgomery a hot real estate market for the past two years? Owen: We rely on the fact that it is the seat of government. You have manufacturing with

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Hyundai. You have the military bases. You have colleges and universities. You have retail. We have such a broad economic community that (supports) that stability. It’s just always been that way. Those are good-paying jobs that allow people to purchase a home – (that’s) why we didn’t see the big peaks and valleys.

Montgomery Business Journal April 2014

Owen: Supply is actually a little low. With the lack of new construction the inventory has gotten a little low. We are hoping that as the builders begin this spring to start building that inventory will come back. MBJ: What is a low inventory? Owen: About 3,200. MBJ: Is there an ideal inventory number? Owen: There’s really not, but I think choice is a big factor when people are purchasing homes.

MBJ: Are prices starting to rise? Owen: Slightly. MBJ: How does that impact people moving up and people buying their first homes? Owen: People with a home seem a little hesitant to sell right now because they think they are going to lose money on their sale, but at the same time they can buy more house than they could four years ago. MBJ: Do people realize that they can buy more house now than in the past few years? Owen: Realtors are saying that when they actually show them (clients) a property and start talking numbers they seem a little surprised. They don’t understand that the values came down across the board. If you are going to move up you might sell your house for a little less than you think it’s worth, but you are going to buy more house than you could of a few years ago. MBJ: Please talk about the three major residential markets in the Montgomery area: East Montgomery, Midtown and West Montgomery. Let’s talk about Midtown first. Owen: Midtown is actually doing very well. Midtown tends to be a different buyer

MBJ: What about West Montgomery? Are you starting to see some activity?

MBJ: Where do you see Montgomery’s residential market in five years?

Owen: Not much. I would say it’s even at best.

Owen: I think we’re still going to be increasing in values, sales and the numbers across the board are going to be better. Without a crystal ball, hopefully the economy across the board is doing better. Having looked at the trends over the last three years, obviously we have nowhere to go but up. With builders coming back and starting to build new homes hopefully that will be the beginning of the next five-year cycle, which shows those increases.

“Over the last three years we have seen increases in every area of the River Region… And that’s what we needed to see.”

MBJ: Isn’t that the key – builders building new homes, which shows they have confidence in the market?

- Brad Owen, executive vice president of Montgomery Area Association of Realtors

than East Montgomery. You have beautiful architecture; old homes; trees; convenient to everything. There’s a lot more activity going on. MBJ: In Cloverdale, isn’t most of the activity with existing homes? Owen: There’s a little bit of new construction in Cloverdale, but it’s primarily just existing homes.

MBJ: And East Montgomery? Owen: East Montgomery has fortunately been the majority of the new construction this side of town. It’s actually done very well. When we talk new construction in Montgomery that tended to be in the Pike Road area and the eastside of town. It’s primarily because that’s where the available land and lots were. From 2012 to 2013 we are seeing considerable increases in sales. MBJ: What are you seeing in the surrounding communities of Prattville, Millbrook, and Wetumpka?

Owen: The military loves Prattville. Millbrook is the same way with a lot of military and access to the interstate. Wetumpka is different. There are some military, but more similar to Montgomery. MBJ: Are there particular areas where multifamily units are being built? Owen: Not really. It just seems to be where there is an availability of property.

CONTINUED ON PAGE 12

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Owen: It is. It shows that there are available buyers. It shows that they can get financing. When people buy homes they then go to the store and buy furniture, drapes, dishes – the things that fill up a home. That’s the one big-ticket item that we’ve been missing in the economy is new home construction. It puts people back to work. MBJ: You said that someone is building 100 lots. Are you seeing that anywhere else? Owen: Not really. It’s Lowder New Homes. I was talking with one of their staff and they said they were finally feeling confident in the market and they were going to start putting lots together and building again. That’s showing confidence in the market. The builders are the ones who build the products that our Realtors sell. We have to have new homes because that first-time buyer that bought several years ago wants to move up – wants a new home and wants to choose his colors; maybe design his home; choose exactly what he wants and that’s his dream home. With a lack of construction, we really didn’t have that option. It also took some sellers off the market that probably would have tried to sell had the new market been a little bit better. In the last four or five years, we haven’t had any real development as far as lots go. We haven’t had new lots come on line. That’s why it’s important to look at what Lowder is doing. They are creating new lots and that’s something we haven’t seen in a long time. MBJ: Where are those new lots? Owen: They are going to be out at Woodland Creek, StoneyBrooke (Plantation), The Oaks (at Sturbridge). I think this is big news having these lots come on the market. •

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Montgomery Business Journal April 2014

MONTGOMERY AREA RESIDENTIAL SALES

2010: 3,585 2011: 3,278 2012: 3,514 2013: 3,701

MONTGOMERY AREA NEW HOME SALES

2010: 399 2011: 491 2012: 545 2013: 562

MONTGOMERY AREA EXISTING HOME SALES

2010: 3,186 2011: 2,787 2012: 2,969 2013: 3,139

PIKE ROAD ALL RESIDENTIAL SALES

2010: 90 2011: 252 2012: 260 2013: 240

EAST MONTGOMERY RESIDENTIAL SALES

2010: 380 2011: 495 2012: 552 2013: 596

EAST MONTGOMERY NEW HOME SALES

2010: 104 2011: 264 2012: 285 2013: 285

EAST MONTGOMERY EXISTING HOME SALES

2010: 276 2011: 231 2012: 267 2013: 311

Source: Montgomery Area Association of Realtors

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All the playground equipment has been purchased and the structures for those playgrounds have been put in place for River Region Freedom Park.

Keeping Our Base Covered River Region Freedom Park seeks donations by David Zaslawsky

More than $200,000 has been raised, but more money is needed to complete the nearly $400,000 project on Maxwell Air Force Base. The Greater Montgomery Home Builders Association has done the architectural drawings for restrooms and asked members to donate construction materials to build them. Completing the park is so much more than a place for children to play on equipment; a field to play soccer; and exercise stations along a walking track. Maxwell Air Force Base and Gunter Annex have a combined annual economic impact of $2.6 billion, and that impact would be threatened by a Base Realignment and Closure (BRAC) Commission, which makes recommendations on which bases should be shuttered. A BRAC “is highly likely in 2017,” said Joe Greene, vice president, Military and Governmental Affairs for the Montgomery Area Chamber of Commerce. “They will start looking at the bases as early as 2015. These kinds of projects are very important for protecting and preserving the base. The more partnerships and projects like this (River

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Montgomery Business Journal April 2014

Region Freedom Park) we can have whenever they start looking at bases for closures, the better protected we will be.” He said that Maxwell/Gunter was one of 16 test bases for the P4 initiative of publicpublic and public-private partnerships. “Right now we are being recognized as in the lead on doing those kinds of projects and this (park) is a premier project as part of that. It shows the close relationship that we have with the base and with the Air Force. In order for us to remain out front, we need to proceed and complete this project by the end of spring.” Greene said that $118,000 was needed to complete the playground pods and restrooms. Another $70,000 or so is needed to complete the rest of the park, including pavilions, barbecue facilities and exercise stations. • HOW TO CONTRIBUTE

Checks should be made payable to the Montgomery Area Chamber of Commerce Foundation. The address is P.O. Box 79, Montgomery, AL 36101. For information, call the foundation at (334) 240-9423. All donations are tax deductible.

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WALKER LOVES MONTGOMERY

Reporter’s Notebook

Montgomery County’s newest commissioner, Ronda Walker, said she dealt with seven different counties when she worked for U.S. Rep. Martha Roby, R-Montgomery. “I could see the difference in a county that functioned well and a county that didn’t function well,” Walker said. “The counties that didn’t function well fought; they didn’t cooperate; they didn’t communicate; and they didn’t succeed.” Walker said she has seen how well the City of Montgomery, Montgomery County, Montgomery County Board of Education and the Montgomery Area Chamber of Commerce get along.

by David Zaslawsky

MONTGOMERY IS A SHINING EXAMPLE The City of Montgomery has been named one of the 10 shining examples of economic development by Southern Business & Development. Montgomery was the only Alabama city on the list. The magazine cited Montgomery’s “vast economic diversity,” which in 2013 included the new headquarters of a pharmaceutical company (Mims Management Group); global automotive supplier (DENSO Corp.); major financial operation center (Hancock Bank); and a Department of Defense Core Data Center.

The article also points to Montgomery’s location at the intersection of Interstates 65 and 85; Maxwell Air Force Base and Gunter Annex; and Hyundai Motor Manufacturing Alabama. Montgomery has had more than 5,700 jobs created and $1 billion-plus in capital investments the past five years. “A vibrant economy, the nation’s No. 1 magnet high school, the most post-secondary students in the state, and one of the top 10 largest Shakespeare theaters in the world are just a few reasons Montgomery is the Capital of Dreams,” the magazine stated.

She was appointed by Gov. Robert Bentley to fill the seat of former commissioner Dimitri Polizos, who won a special election for the Alabama House of Representatives. Walker said she grew up in Montgomery. “I know Montgomery very well. I’m a Montgomery girl. I love this area.”

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Montgomery Business Journal April 2014

ALABAMA EXPORTS HIT $19.3 BILLION Alabama exports totaled $19.3 billion last year, which was just shy of matching the record of $19.6 billion in 2012. The state’s top export is transportation equipment, which increased 8.6 percent last year to $8.3 billion. Rounding out the top five exports are chemicals ($2.5 billion); primary metal manufacturing ($1.5 billion); minerals and ores ($1.4 billion); and machinery ($879 million).

Canada remains the state’s No. 1 export market ($4.3 billion) and China is now second at $2.5 billion with Germany third ($2.2 billion and declining); Mexico fourth ($2.2 billion and growing); and the United Kingdom fifth at $693 million. Alabama ranked 23rd nationwide in its dollar value of exports last year.

WIND CREEK HOTEL OPENS The Poarch Band of Creek Indians, which recently opened the Wind Creek Wetumpka casino, has now opened the adjacent, 283-room hotel. There’s more. The tribe just opened a health clinic and an assisted living facility near its casino in Atmore. The Buford L. Rolin Health Clinic is for both tribal members and employees. The Lavan Martin Assisted Living Facility features 24 one-bedroom apartments and eight two-bedroom apartments and four assisted living homes as well as a coffee shop, business center, quilting room and laundry area.

TOP-NOTCH PROGRAM A GAME CHANGER Montgomery Area Chamber of Commerce Board of Directors Chairman Leslie Sanders said the city, county, Chamber, school district and two-year college system had a productive meeting about the future of the Montgomery Public Schools’ Montgomery Technical Education Center. “Probably the most game-changing thing that can happen is to have a real technical program, where we teach skills to our students, where they have a skill set when they graduate.” And can get a job. She talked about a “promising” partnership between the Montgomery Public Schools district and H. Councill Trenholm State Technical College. “There is no reason that Montgomery doesn’t have a state-of-the-art, topnotch program.”

April 2014 Montgomery Business Journal

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debt, build up the city’s reserves or fund projects, Strange said. MONTGOMERY’S TCU MANAGES CONSTRUCTION TCU Consulting Services will manage Huntsville City Schools’ $200 million building program, which includes new buildings and renovations. Plans call for two new high schools; two new elementary schools (Pre-K-6); one new school that is Pre-K-8; and a new freshman academy.

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MONTGOMERY WANNA-BE Mayor Strange said that while he was being introduced at a breakfast the speaker noted that Mobile Mayor Sandy Stimpson had some kind words for Montgomery. He said something akin to “our goal is to be like Montgomery.” Strange said that Birmingham also paid Montgomery a compliment by “taking a page from our playbook.”

A GOOD BUSINESS INVESTMENT Bistro B owner Tracy Bhalla spent $25,000 to $30,000 renovating the former site of The Deli at The Alley, performing furniture repairs and buying and repairing equipment. “My goal right now is just to make a profit,” she said. She hopes to be in the black by April.

SCHOOL PROJECTS The Montgomery-based architecture and engineering firm of Goodwyn, Mills and Cawood has been selected by the Pelham Board of Education to handle new school building and renovation projects. PARTNERSHIPS ARE THE KEY Rep. John Knight said that the state, city and county are working closely together. “I think the more we work together, the more that we can accomplish the things we’re trying to do on a local level.”

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LOST REVENUE IS FOOD FOR THOUGHT Montgomery Mayor Todd Strange is opposed to sales tax on food, but at the same time is concerned that if the state removes its share it could recoup lost revenue from other sources. However, the city would be in a precarious position.

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If the state Legislature agrees to remove the state’s tax on groceries, Strange said there would be great pressure on the city and county to remove their sales tax on food – 3.5 percent and 2.5 percent, respectively. The city’s share results in about $30 million of revenue, according to City Council President Charles Jinright.

and they’re not getting it right now.” Knight supports removing the state’s federal income tax deduction to replace the lost revenue.

Rep. John Knight, D-Montgomery, has introduced legislation to remove the state sales tax on food for years. “The problem is that working-class families and middleclass people really need some tax relief

He said that the state does “everything under the sun in terms of helping where we want to help,” referring to incentives and tax breaks for companies coming to Alabama or expanding.

Montgomery Business Journal April 2014

NEW JOB IS FAST-PACED Rep. Dimitri Polizos said he is making new friends in the Legislature. “I’m enjoying what I’m doing so far.” He is also making some adjustments. He said the new job is more “fast-paced” compared to the county, which “was a little more laid back.” He has introduced a bill to allow Faulkner University to have its own police force.

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Another Birmingham-based developer has announced a project in downtown Montgomery and that was not lost on Montgomery Mayor Todd Strange.

Then, StoneRiver Co. announced a 165-unit, four-story apartment building on Maxwell Boulevard in downtown Montgomery across the street from Wright Brothers Park.

First, Retail Specialists Inc. earlier announced a $10 million-plus project, converting a parking lot at the corner of Commerce and Bibb streets into 64 loft apartments and two restaurants.

“We’ve had some Birmingham companies come and we will have others that will be coming and we’ll have other announcements along the way,” Strange said at a news conference for the estimated $20 million StoneRiver project.

Commanding Attention Montgomery draws interest from Birmingham developers by David Zaslawsky

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Montgomery Business Journal April 2014

“What this says to us is that we are now commanding the attention of the premier developers because of what’s happening in Montgomery. They are showing confidence in our community and any time that you take the amount of investment that a quality company like StoneRiver and BB&T is willing to lend speaks volumes about the confidence they have in our economy and in this community’s ability to lease these. “It’s not happenstance that they located here. This is a great bridge that connects – if you will – Maxwell to downtown. We’ve always had the goal.” It did take “a number of years” for the project to become a reality, Strange said. “It’s not something that we take lightly to what we put here,” he said. “It has to be stellar. It needs to be our signature,” he said and referred to the site as “prime real estate.” The city sold 5.1 acres on Maxwell Boulevard – 12 parcels, including two on Whitman Street – to StoneRiver for about $600,000 or $120,000 an acre. StoneRiver has options on two parcels on Holt Street and bought four properties on Clay Street, including three that will overlook the project, which is being called

by the city: “Montgomery Bluff Apartments.” There is no official name at this time. The apartments will range from 850 square feet and about 1,150 square feet, said Joseph Welden III, vice president of StoneRiver Co. He said the one- and two-bedroom units will lease for $1.20 a square foot – about $1,000 to nearly $1,400. “We feel like the market here in Montgomery supports this type (of project),” Welden said, He said there is a demand for upscale apartments and called the location “a premier site.” The city’s master plan by Dover, Kohl & Partners said that downtown has a demand for 2,500 housing units. Welden described the units as “condo level” with such features as granite countertops, hardwood flooring, tile backsplash in the kitchen and washers and dryers. The amenities will include a fitness center and pool. “The design, the layout will be well received in Montgomery,” Welden said. The units will have “full-size balconies to allow residents to enjoy the views along Maxwell.”

There will be plenty of parking – more than 2.5 spaces per unit, Welden said. The apartment building will feature 115 parking spaces behind the project and additional spaces on Maxwell Boulevard. Although the apartment building is near Maxwell Air Force Base, the units are not being targeted to military personnel except StoneRiver hopes to complete the project in the second quarter of 2015, “which is strategically the best quarter from a military standpoint,” Strange said. The rents are “well within the housing allowance” for military personnel, according to Strange. Welden said that the company expects “a broad range of residents. It will be designed to attract just about anybody that wants to live in the downtown Montgomery area in this location.” Construction was scheduled to begin in the second quarter and pre-leasing will likely begin toward the end of the year, Welden said. The city will put in parking and crosswalks as part of a Maxwell Boulevard streetscape and will assist StoneRiver building a retaining wall. •

April 2014 Montgomery Business Journal

23

Rebirth THE

OF LOWER DEXTER AVENUE Foshee project brings lofts, restaurants to new Market District by David Zaslawsky

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Montgomery Business Journal April 2014

It does seem like there are plenty of restaurants in the heart of downtown Montgomery, including six at The Alley and another half dozen nearby. Just wait – there are a lot more coming and they will be on Lower Dexter Avenue, which for years has been home to one abandoned building after another. “We think (the area) is ideal for restaurants and service-oriented retail,” said Scott Harris, a senior vice president and broker with Aronov Realty Management Inc. “We are open to reviewing all different options, but we are really focused on restaurants. There are some categories of restaurants that are absent here.” Those categories include Chinese, Pan-Asian, Greek, Mediterranean and a New York-style deli, according to Norman Azar, a commercial broker with Aronov who specializes in restaurant site selection. He said that Lower Dexter Avenue would be good site for something like Bob’s Victory Grille in Tuscaloosa and Auburn – “an entertainment-oriented type of sports bar.” Harris said that you can’t have too many downtown restaurants, especially when you consider the 50,000-plus office workers and the thousands of tourists and conventioneers, not to mention the participants in all those youth and recreational sporting events. Now add the 100,000-plus residents who live within five miles of the heart of downtown. This is the new Montgomery, but with a touch of the past as banks are moving back to downtown and Commerce Street, and Foshee Management Co. is creating what it calls a Market District on Lower Dexter Avenue, which was formerly known as Market Street. The new Market District is as modern as you can get and that means vehicle barriers on the weekends to close off Commerce Street to Perry Street from automobiles. It will be the epitome of a pedestrian friendly area filled with loft apartments, retail shops, restaurants and entertainment venues. The area will be perfectly situated for weekend arts and crafts festivals; car shows; concerts; outdoor seating for restaurants; and an occasional open-air farmer’s market. Children will be playing on the streets. This new Market District is the brainchild of the Foshee Management Co., which formally announced the project on a brisk Friday morning. Foshee Management President Golson Foshee said the firm will be investing $10 million to $15 million on the entire project, which features 100 loft apartments as well as restaurants and retail. Foshee will lease the apartments and manage the properties while Aronov will handle the commercial leasing. CONTINUED ON PAGE 26

April 2014 Montgomery Business Journal

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Bollards would be installed on the weekends that will turn the end of Dexter Avenue into a pedestrian promenade.

CONTINUED FROM PAGE 25

“We think the Market District is a gamechanger for Montgomery,” Foshee said. “We are proud to announce that we are open for business.”

“We will redefine Lower Dexter, and you then redefine the entire Dexter (Avenue) and the entire gateway into Montgomery.” - Montgomery Mayor Todd Strange

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Montgomery Business Journal April 2014

Montgomery Mayor Todd Strange said that “it’s a game-changer in that we will redefine Lower Dexter, and you then redefine the entire Dexter (Avenue) and the entire gateway into Montgomery.” Some of those businesses could include family-friendly entertainment venues such as an indoor rock climbing facility, a trampoline site or boutique bowling alley, Foshee said. The first Market District project is well under way – 35 loft apartments at the 40 Four Building, which will also contain Foshee Management’s corporate office. About 3,000 square feet of space is available for leasing.

Work has already begun at the former Belk building at 36 Dexter Avenue, including Strange taking a swing with a sledge hammer. Foshee said that the canopy would be removed and construction would start in early summer. The site will have 30 loft apartments and 30,000-plus square feet of commercial space. Some of those apartments will be on the ground floor, according to Foshee. He said the loft units should be available in the summer of 2015.

He noted that before he discussed the Market District concept, the City of Montgomery had begun its $6.8 million Dexter Avenue streetscape project, which will mean uniform lighting, trees and sidewalks from One Dexter Plaza to the Capitol. Strange said that the Market District project has “been a vision of the city for many

years. It’s the vision we all shared. It’s the vision that we as a city wanted to do, but didn’t want to interfere in the efforts of private development.� Although vehicle traffic will be prohibited on the weekends, there are two parking decks nearby and one is adjacent to several of the buildings being developed. •

The company will develop 14 buildings and is negotiating with others in the district to develop their properties, Foshee said. “I want to thank the city for being very supportive of our vision,� Foshee said. “We are proud to say this is a private venture and we are eager to build on the existing momentum.�

The former Belk’s department store will be redeveloped as a mix of commercial, retail, restaurants, and loft style apartments. Residents will be able to live, shop, and dine all within the Market District. With the area central to downtown businesses, residents will find a short walk to work a pleasant option.

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April 2014 Montgomery Business Journal

27

FIRM HOPES TO REVIVE DAMAGED DEXTER AVENUE PROPERTIES

by David Zaslawsky

The Market District project on Dexter Avenue, which features restaurants, shops and loft apartments, as well as a closed-off block of the street on weekends, drew a lot of attention. That attention included the owners of New York-based Marjam Supply Co., a major supplier of construction materials with 33 locations in 12 states. The Market District project “was one of the encouraging factors for the Marjam principals to negotiate with us,” said Melanie Golson, outreach coordinator for the City of Montgomery’s Development Department. “They were excited about that and they were excited about being part of that.” They established a new company in Alabama – ELSAJA Dexter, LLC – to buy four Dexter Avenue properties from the city for $800,000. Two of the buildings were sold at market value and the other two were sold below cost, according to Golson. She said

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Montgomery Business Journal April 2014

that cities typically sell buildings in downtown areas below value “to encourage economic development and revitalize that urban core of your city ...” The city paid almost $3.2 million in 2010 for 11 buildings on Dexter Avenue. The Montgomery City Council authorized Mayor Todd Strange to enter into an agreement with ELSAJA Dexter, but as Golson pointed out, “It is a long way from a done deal.” That’s because of the condition of the buildings at 35 Dexter Ave., 39 Dexter Ave., 61 and 67 Dexter Ave. (actually one building), and 71 Dexter Ave. “Those buildings have been in disrepair for many years,” Development Department Director Mac McLeod said in a statement. “We still have a lot of work to do in order to determine if it is even possible to rehabilitate them for future use.” The firm has 60 to 90 days – depending on the building – to perform its due diligence and decide if the buildings can be renovated and whether it is financially feasible. ELSAJA

“It is very possible for the buyers to not exercise their option to close,” McLeod said. Two of the properties – 61 and 67 Dexter Ave. – are known as the Concert Hall Building, and the second-floor ballroom was the site of the inaugural ball of Confederate States of America President Jefferson Davis. ELSAJA Dexter is agreeable to convert the second floor into a ballroom/meeting space similar to that at 129 Coosa St. and Alley Station. The company has no plans for the space, Golson said, but based on patterns of previous developments, the first floors would contain shops or restaurants and the upper floors would have loft apartments. The former Kress Building at 39 Dexter Ave., which was built in 1929, would most likely contain multiple retail outlets, based

on restored Kress buildings in other cities, Golson said. “We still have to negotiate a rehabilitation agreement with them,” Golson said, adding that there is a stipulation that the front facades be restored to their historical look. The wife of one of the company’s principals owns a green products company and she is expected to sell her eco-friendly goods at a store in one of the buildings, Golson said. Only one of the buildings has a tenant and that is the Looking Good clothing store at 71 Dexter Ave., but the business only occupies the front corner. The owner has a 15-year lease with the city and the new building owners will have to negotiate with the store owner.

© Fouts Photography

Dexter could also decide to renovate one or two of the buildings, according to Golson, because each building has a separate contract.

The city will create a pedestrian alley – similar to The Alley – to bring the buildings up to the current fire code, Golson said. • Melanie Golson

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April 2014 Montgomery Business Journal

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Investor Member Profile Profile BUSINESS BUZZ (CONTINUED FROM PAGE 63)

Mike Disbrow is president of Hartzell Engine Technologies.

Top-Flight Hartzell Engine Technologies builds precision airplane components by Jennifer Kornegay

photography by Robert Fouts

The Capital City has a rich aviation history, as home to the Wright Brothers’ flying school a century ago and home to Maxwell Air Force Base today.

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Montgomery Business Journal April 2014

HARTZELL ENGINE TECHNOLOGIES, LLC YEAR FOUNDED

2010 EMPLOYEES

100 Sitting just a stone’s throw from the Montgomery Regional Airport, Hartzell Engine Technologies is adding another chapter to this story as one of the leading manufacturers of precision airplane components used by aviation companies all over the world. “We service all the major players in general aviation, companies that build airplanes like Piper, Cessna, Robison, CubCrafters and more,” President Mike Disbrow said over the steady hum and whir of welders, assemblers and multimillion dollar inspection machines busy making and checking Hartzell’s products. The company’s core product lines include turbocharger systems, alternators, starters, cabin-heating systems and fuel pumps. For each, the company makes and sells new products as well as rebuilding and overhauling existing components, with the breakdown hitting about a 50-50 split between the two each year. Hartzell Engine products mostly serve the general aviation market, with two notable exceptions. One of the company’s larger cabin-heating systems goes on Boeing’s Chinook helicopters used by the military. Hartzell Engine also sells alternators for UAVs (drones). Hartzell Engine, according to Disbrow, can provide the right alternator to meet almost any aviation application need, and that’s made alternators the company’s highest-volume product line. “We sell about 15,000 units a year, both new and overhauled, and that’s high for the aviation market,” he said. Disbrow came to Montgomery in 2010 when Tailwind Technologies Inc., the holding company he worked for, bought an existing business in Montgomery called Kelly Aerospace to complement its other aviation companies. The name was changed to Hartzell Engine Technologies, and since then, Hartzell Engine has bought several other companies, including one that put the company in the environmental systems business, manufacturing cabin heaters for twin-engine general aviation aircraft as well as Chinook helicopters.

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In contrast, Hartzell Engine’s fuel pump line was developed in-house, and the company does other design and engineering work for customers when needed and has an onsite test lab. The company also offers aftermarket support and has a help desk to answer customer questions and address technical issues. The company has spent $4 million for machining, inspection and test equipment in its 80,000-square-foot facility, a major investment in the current market environment, but a necessary one, as Disbrow explained. “The piston engine market in general aviation is our main market and that got beat down over 50 percent in the economic downturn in 2008,” he said. “It has barely budged since then so it has been a challenge for us, but Hartzell Engine has product lines that are vital to this market. We’ve worked hard to develop a good reputation and our investments are more about quality improvement than volume improvement as part of our commitment to our customers.” •

Hartzell Engine’s alternator product line got a big boost when the company bought the Jasco Alternator line in January. “The Jasco Alternator line enables us to begin offering highquality products to new segments of the general aviation markets, including classic and agricultural aircraft and piston helicopters,” Disbrow said.

April 2014 Montgomery Business Journal

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Jerry Kyser, president of Jerry Kyser Builder Inc., is owner of Central and 129 Coosa St. reception area at The Alley.

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Montgomery Business Journal April 2014

THE ALLEY COMES OF AGE MONTGOMERY’S MUST-SEE VENUE TURNS FIVE BY DAVID ZASLAWSKY PHOTOGRAPHY BY ROBERT FOUTS

April 2014 Montgomery Business Journal

33

“I have never been more enthused about Montgomery. I think the next five years in downtown is going to be twice or three times as good as these last five years.” - Jerry Kyser, president of Jerry Kyser Builder Inc., and owner of Central and 129 Coosa St. reception area.

A large group of lawyers from all over the country have converged in Montgomery for a conference the past seven years. During a social gathering at the rooftop garden at Alley Station in downtown Montgomery, one lawyer said, “I had no idea Montgomery had this.” Another lawyer said, “We don’t have anything like this in Philadelphia.” Greg Allen, a shareholder in the Montgomery law firm of Beasley, Allen, Crow, Methvin, Portis & Miles, P.C., which hosts that national conference, said, “I enjoy that kind of comment, and when you have Birmingham folks coming down here to look and see what we’re doing – that will tell you something.” What it tells you is that The Alley has become the place to go for not only conventioneers and tourists, but locals as well and in particular the critical young professionals, whom local officials want so desperately to stay in Montgomery. It’s not just Birmingham officials who have come to downtown Montgomery and see what all the fuss is about. Montgomery Mayor Todd Strange said that officials from Huntsville, Mobile, Greenville and even Pensacola, Florida, have visited The Alley in downtown Montgomery looking to develop something similar. The Alley has helped changed perceptions of Montgomery. “What they see and what they say is, ‘this is not the Montgomery I was expecting,’ ” Strange said.

It might also help the perceptions of the Beasley Allen law firm. “It’s one of the better PR (public relations) things that we have ever done,” Allen said. “I guess folks have finally realized that we’re not just bad lawyers that sue folks. We’re also a business – we really are.” Allen and the firm’s founder and shareholder, Jere Beasley, own several buildings in The Alley and Alley Station. It is an area brimming with energy and what you constantly hear – vibrancy. There is such an abundance of energy and vibrancy that Strange said someone told him that he was unable to find a parking spot near The Alley on a Tuesday night. “It’s one of the must-sees,” Strange said. You can be certain that it is on the itinerary for prospects looking to bring a company to town; or a doctor looking to set up a practice; or any number of other people who officials are wining and dining. “It takes more than the fingers on my two hands to tell you the number of times we’ve had prospects that we would have had a nice dinner at Central (in The Alley) or somewhere else and then gone into the AlleyBAR,” Strange said. If Strange is meeting with military officials or executives in the high-tech or cyber security fields, he frequently takes them to the AviatorBAR. Jerry Kyser, president of Jerry Kyser Builder Inc., owns Central restaurant and the reception area above it at 129 Coosa St. He said he talked to an official of a national horseshoe tournament that Montgomery is

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Montgomery Business Journal April 2014

What helped provide that confidence was also across the street: the 347-room, Renaissance Montgomery Hotel & Spa at the Convention Center. It was built by the Retirement Systems of Alabama.

recruiting. The official was eating at Central and Kyser made his pitch for Montgomery. He sometimes meets with physicians being recruited to Montgomery. He said he gives those prospects “my take on Montgomery, having lived here for 70 years and the fact that I have never been more enthused about Montgomery. I think the next five years in downtown is going to be twice or three times as good as these last five years.” That’s right – The Alley is five years old. That’s when Dreamland Bar-B-Que opened its doors – April 9, 2009 – timed when the Montgomery Biscuits opened their 2009 season at Riverwalk Stadium, across the street from Dreamland. Dreamland Managing Partner Bob Parker had no second thoughts about being the first retail business at The Alley. Kyser had opened the 129 Coosa St. reception area three or four months before Dreamland opened its doors. “There was a lot of uncertainty in a lot of other people’s minds – not mine,” said Parker, who had been general manager of a Dreamland restaurant in Birmingham. “I knew what was possible at a well-run, well-located Dreamland. I had seen it.” Although The Alley infrastructure was incomplete, Parker said it would have been “foolish” to wait another year to open. “I would rather be first than safe. You set the tone. I’m not depending on other people’s success. We are going to make or create our own success.” As a 50-year-old company, Dreamland “is not dependent on how other people do,” Parker said.

“The Renaissance changed everything,” Parker said. “When I saw that they were building that hotel that’s when I decided this is where I wanted to be. How many times have you been to a big city near a convention center and there are restaurants around it?” A handful of those restaurants are at The Alley: Dreamland, Central, Wasabi, Bistro B, Sa Za Serious Italian Food and Jalapeno’s in The Alley. “I think (The Alley) complements Riverwalk Stadium and I think the Renaissance and convention center all blended together is what’s making it work,” Kyser said. “No one entity could make it without the other.” The Alley has been successful despite the Great Recession and a slow economic recovery. “The biggest thing to remember is we’ve done this with the worst economic time that I’ve ever seen in business, particularly anything in speculative real estate and restaurants,” Kyser said. While Parker was the first in The Alley (at the entrance of The Alley on Tallapoosa Street near the famous water tower CONTINUED ON PAGE 36

Above Left: Greg Allen is a shareholder in Beasley, Allen, Crow, Methvin, Portis & Miles, P.C., and owns several buildings in the Alley and Alley Station. Left: Montgomery Mayor Todd Strange.

April 2014 Montgomery Business Journal

35

“Just come and hang out and use us as a European-style bistro.” She plans to display her collection of English teapots and would like to partner with Renaissance on an afternoon tea.

CONTINUED FROM PAGE 35

landmark), Bistro B owner Tracy Bhalla is the new kid in The Alley. “The location is perfect,” she said. It certainly is. The 86room Hampton Inn & Suites MontgomeryDowntown is a few doors down; the 237room Embassy Suites Montgomery Hotel & Conference Center is a very, very short walk away as is Riverwalk Stadium; and the Renaissance is across the street. Bhalla, who is from England, also owns Cool Beans on Montgomery Street, but said that even people who know about it have trouble finding it. That is not the case with Bistro B. “Anyone who comes downtown comes to The Alley and we’re right there,” she said, referring to The Alley entrance on Commerce Street. “You can come in, sit and have a latte or cappuccino and use the WiFi or read a newspaper,” Bhalla said.

“I knew what was possible at a well-run, well-located Dreamland. I had seen it.” - Bob Parker, Managing Partner, Dreamland Bar-B-Que

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Montgomery Business Journal April 2014

Even with the new Bistro B, The Alley is still not complete. Kyser has space for two retail venues across from Wasabi. “We need some kind of retail and we also need arts,” Kyser said. “A combination of the two would be extremely good.” The space cannot be used for another restaurant because of offices above it. Allen and Beasley are working on their second ballroom/reception area in The Alley at 150 Commerce St., which was originally slated to be the Children’s Museum of Alabama. Now it’s going to be a “breathtaking” ballroom/ entertainment venue on the second floor, Allen said. They were not able to use the top floors and removed the floor to the third floor. The ballroom will hold about 600 people and is expected to be completed in August or September. Reservations are already being taken because Beasley and Allen’s ballroom at Alley Station is virtually booked for weekends through the end of the year. It holds about 350 people and the roof-top garden holds another 350 people. At 129 Coosa St., Kyser can handle up to 300 people for a reception-type of event and about 150 for a seated dinner. He has space at Central for 48 seats in the River Room; 22 in the cellar and 130 seats in the restaurant’s main dining room. Now that he has Central to handle the catering for his upstairs venue, Kyser said the catering volume is akin to having a medium-volume restaurant. Kyser estimated that when The Alley is completed, the private sector will have invested between $40 million and $50 million, which is double what a city official projected five years ago. CONTINUED ON PAGE 38

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The city’s investment in infrastructure is around $1.8 million, according to Strange. That’s a pretty nifty return on investment for the city – pump in $1.8 million and private developers pump in $40 million to $50 million. That’s only a small part of the story. The city’s sales tax collections from The Alley are probably $15 million a year, Strange said. That’s every year and more businesses will come on line. “What we did was just find a way to make that project come to fruition and it’s a classic example of priming the pump; filling the gap; being the bridge builder between government and the private sector,” Strange said, “We had never intended to be the developer, but we always intended to be the pump primer.” Recently a Southern California couple ate at Dreamland and left what Parker said “was a ridiculous tip.” He said they were crazy about the barbecue. “They said, ‘This doesn’t exist in Southern California.’ ”

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Montgomery Business Journal April 2014

“The location is perfect. Anyone who comes downtown comes to The Alley, and we’re right there.” - Tracey Bhalla, owner, Bistro B and Cool Beans Cafe

Strange said that he envisioned The Alley being part of the entertainment district and that entertainment district would be a hub for young people. “It was fortuitous that it worked out from the standpoint of people have had good success in The Alley. As we have said so often: Success does in fact breed success.” Kyser said that The Alley certainly makes a tremendous first impression. He said all the downtown venues “give the impression of a vibrant downtown and it’s on the move and we are out of the doldrums of yesteryear and now on the cutting edge of things that are happening in technology and what it takes to be successful in business. We offer all that.” •

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Educate the mind to think, the heart to feel, the body to act.

TROY Motto 1887

Martha Hawkins is owner of Martha’s Place.

Making New Friends Martha’s Place is a hit in East Montgomery by David Zaslawsky

photography by Robert Fouts

It may not seem possible, but Martha’s Place, a downtown institution for 23 years before moving to East Montgomery, is still attracting first-time customers.

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a big, old house with my old concept, but it was really hard to find what I was looking for,” she said.

Some of those first-time customers to the restaurant at Somerset Shoppes on Atlanta Highway come back with their mom and sometimes with their grandma. “It makes you feel good that you have a good, quality product that somebody wants,” said owner Martha Hawkins. “It’s been amazing – it really has.” She is a bit surprised when someone says it’s their first visit to Martha’s Place. I say, “Where have you been? People then say, ‘It won’t be my last time.’ ” Even before her restaurant opened at the new location after a long run on Sayre Street, a sign out front had people asking, “Are you that Martha that used to be downtown?” Hawkins said, “It was such a blessing to see how people were excited about me.” And by the way, business at the new location, which opened in February 2012, has been good – “real good,” Hawkins said. The new location is huge compared to the old site. The building is three times larger than the converted house downtown. The kitchen is also three times larger. The seating capacity increased by about 50. “It’s amazing how much food I turn out in that restaurant,” she said. Hawkins estimated that she serves 200 more meals daily. Not surprisingly, sales have been 10 percent to 20 percent better than her best years at the old location. There was no future staying on Sayre Street, according to Hawkins. She had a shrinking client base as all the nearby businesses had closed. “The area died out,” she said. “The only thing left over there was the Federal Courthouse.” Her sales had dropped by 50 percent and there wasn’t enough space. “I outgrew it.”

The new location is more convenient for East Montgomery residents to visit Martha’s Place, while her loyal downtown diners have followed her east. “A lot of people that used to come downtown live out here in this area,” Hawkins said. Some customers have even thanked her for moving out to East Montgomery, she said. Hawkins does hope to someday open a second location, returning to downtown perhaps in the next five years. “I will never stop dreaming,” she said. “There’s not a good Southern food place downtown.” The new, spacious Martha’s Place required more staff and her employees have increased from eight or nine to about 25. There is a room to rent for events at the restaurant. What hasn’t changed is that food, which keeps bringing people back or delighting them for the first time. She brags about the fresh vegetables – potatoes, yams, collards and broccoli. “This is what I love to do,” she said. “I feel like this is what I was born to do – cook, but not only cook, to also intertwine with the customers. I feel like I get to know them. To me, they are not customers. They become my friends because they pass other places and pass other businesses and come into my place. I am truly honored for them to do that.”

“I feel like this is what I was born to do – cook, but not only cook, to also intertwine with the customers.” - Martha Hawkins, owner of Martha’s Place

The restaurant launched a new website in February that provides daily menus; coupons; a form to request catering information; and customers can join a mailing list and receive email specials. The restaurant is open 11 a.m.-8 p.m. Monday-Saturday and 10:30 a.m.-3 p.m. Sunday. The prices range from $3.99 for a child’s buffet to $10 for a weekend buffet or a weekday dinner buffet. •

She took some time off after closing her downtown location to promote her book – Finding Martha’s Place – and it took some time to find a new home. “At first, I wanted

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Swinging for the Fences High-stakes angel investor network offers “home run” opportunities by David Zaslawsky

photography by Robert Fouts

For high-net worth individuals looking for a high-risk/high-reward investment, welcome to the Angel Investor Management Group. You must be an accredited investor, which according to the Securities and Exchange Commission means an individual has $1 million net worth not including equity in a primary residence, or have an annual income of at least $200,000. The angel investing network in Montgomery, which is still growing, has business executives, business owners, lawyers, accountants and successful entrepreneurs, according to Carl Barker, president/CEO of ServisFirst Bank in Montgomery and chairman of a local task force that studied angel investor networks. You will also pay annual dues of $1,800, but as AIM Group founder and Chief Operating Officer Jim Corman said, “You don’t have to invest.” Some individuals may want to stay active and hear about activity or join for the social aspects. If someone joins “looking for an overall superior performance on your investment, you need to commit to invest in at least 10 deals,” Corman said. That’s because you are playing the odds. You will most likely lose your entire investment in three or four deals and another three or four you will make a little money or lose a little money. You will make

money on three deals and you need a tidy profit to offset the investments that according to Corman “crash and burn.”

Birmingham, Mobile, Huntsville and Auburn-Opelika in what Corman described as a threeday process he said was a “road show.”

When those deals hit – Corman called it a home run. “We only want to invest in companies where if it does well we have a chance to make 10 times our money in five years, or if it’s a shorter investment horizon of two to three years – our target will be four or five times our money.”

A minimum investment is $5,000 and last year, AIM Group’s investments ranged from a low of $360,000 to nearly $1.1 million. A total of $4 million was invested in seven companies in 2013 and six of those companies were new to the group.

These are not the types of investments for the squeamish. “This group is bringing an opportunity for local folks who want to invest in a non-traditional type of investment,” Barker said. “This is not stocks and bonds. It is a higher risk investment.” The group is about investors and each one decides whether to invest in a company that has been meticulously vetted by AIM Group looking for “what we think are attractive, early-stage investments,” Corman said. About 25 to 30 companies a month seek funding from the AIM Group, according to Corman, and just one is selected. A sixperson due diligence team has to approve a company and negotiates terms of the investment, which is an ownership stake – not a loan. When a company has been approved, it then makes a presentation before each of the investor networks in Montgomery,

Carl Barker

Remember, despite the best efforts of AIM Group to bring attractive targets to the investor networks and numerous precautions including a seat on the board of directors of companies it invests in, failure is common. Corman recommends that individuals invest in 10 deals over the next two to two-and-one half years to hit one of those home runs. The group invests in companies throughout the Southeast because if its potential clients were limited to small markets, there would not be enough deals for investors and the money would eventually dry up, Corman said. “The Southeast is the second-most active angel investing area in the nation and Alabama hadn’t been a part of it (until recently),” said Douglas Jones, vice president, Business Services for the Montgomery Area Chamber of Commerce and executive director of the Chamber’s Small Business Resource Center. The AIM Group in Alabama last year “was the single-largest source of angel capital in the Southeast,” Corman said. •

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ESTABLISHED BUSINESS OWNERS HAVE ALTERNATE FUNDING SOURCE by David Zaslawsky

Business owners looking for another source of funding will be able to apply to the Angel Investor Management Group. This is not a loan, but an equity investment, and is geared toward an established company with a board of directors and top management in place. This is not providing seed money of $20,000 to $40,000 to start a business, said Jim Corman, chief operating officer of the Auburn-based Angel Investor Management (AIM) Group. “We’re going to want to see a completed, vetted business plan,” Corman said. “We’re going to want to see a management team either in place or that will be in place at our funding that is capable of carrying out that business plan.“ We see a lot of interesting business plans. We don’t see that many high-quality (management) teams that are capable of

carrying out the business plan. The big issue with us is the quality and depth of the management team. We say we don’t fund science projects.” He said that the group is looking for companies that can be successful. The group does not make an investment without getting a seat on the board of directors to protect that investment. “Part of what we did in creating AIM is to say, ‘We need a viable, high-quality source of early-stage equity in this state,’ ” Corman said. “We’ve got it now. We put $4 million to work and you give us a quality Alabama company and it’s going to get funded. That wasn’t the case a year or two ago.” The Angel Investor Management Group has been forming a Montgomery network. When a network/chapter has 25 investors a local advisory board is established, and there will be a part-time executive director who is an AIM employee. There is a local option for chapters with 25 investors. If a Montgomery company fails to pass a rigorous screening process or passes that process, but it is turned down by the overall AIM group, the local angel network may invest in that company. The local option is limited to two companies a year.

“This is a way (that) smaller, goodquality local companies can get funded,” Corman said. Montgomery business executives and Montgomery Area Chamber of Commerce staff formed a task force to study angel investor networks. “What we found out was it takes a lot of resources, time, organizational skills to set one up,” said Carl Barker, president/CEO of ServisFirst Bank in Montgomery and chairman of that task force. That’s why the task force contacted Corman, who had already established angel networks in Birmingham, Mobile, Huntsville and Auburn-Opelika. Barker stressed the importance of informing entrepreneurs that there is an alternate source of funding through the AIM Group. He said the task force was created to help companies “find a way to get capital that they might need to expand their business. We can’t forget that. We have to maintain the goal and the idea that this has got to be something that helps Montgomery. “We want to have people that are successful in Montgomery to be able to get the capital and funding they need to become more successful.” •

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A Lot to Offer Firm plans 64 loft units, two restaurants on parking lot site by David Zaslawsky

City of Montgomery officials have worked with Birmingham-based Retail Specialists Inc. to attract retailers to the Capital City. Retail Specialists’ clients include Alabama Outdoors, Dollar General, Dunkin Brands, Five Guys Burgers & Fries, McDonald’s, Marco’s Pizza, Mellow Mushroom and Winn-Dixie, according to the firm’s website. The firm represents its clients with site selection as well as lease negotiations. W. Mead Silsbee III, vice president and chief operating officer of Retail Specialists, said the firm “promotes retail” in Montgomery and said they are a resource. Well, that resource was alerted to some prime downtown real estate through a partner and saw an opportunity for a project similar to one in Birmingham – the Lakeview 29 Seven project – but on a smaller scale because the site is not as large.

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That site in Montgomery is a parking lot on the corner of Commerce and Bibb streets and to locals it is commonly referred to as the former site of the Frank Leu Building. That building, which was built in 1907 as the Gay-Teague Hotel, was purchased by Leu for $1.5 million in 1956. It was demolished in October 1997 and is currently a parking lot. Now it will be the location for a five-story, $10 million-plus project with 64 upscale loft apartments and two restaurants on the ground floor. Retail Specialists paid $250,000 for the property. There are two parking venues nearby with a total of 90 spaces, including the parking deck at the Renaissance Montgomery Hotel & Spa at the Convention Center. “I am delighted to announce additional retail and loft living opportunities,” Montgomery Mayor Todd Strange said at a City Hall news conference, which was moved from the project site because of rain. One of the restaurants, which will occupy 6,200 square feet of the 16,000-squarefoot ground floor, could be announced at any time. Strange said that the restaurant “is in this marketplace and not moving from another location.”

“The vibrancy of The Alley project; the walkability of downtown; the success of the Renaissance and that site being right there made it an easy decision.” - W. Mead Silsbee III, vice president and chief operating officer of Retail Specialists,

The lofts will range from about 750 square feet to about 1,050 square feet and with a rental fee of $1.20 a foot, will cost $900 to about $1,300. There will be 36 one-bedroom units and 28 two-bedroom units. Silsbee said the goal is for the project to be completed in late summer or fall in 2015 “because it’s the best time to lease.” Retail Specialists will handle the leasing while sister company Capital Growth and Buchalter Group are the project’s development company and the owner is CBD Montgomery. Being located across the street from the Renaissance, The Alley and near Riverwalk Stadium “was very attractive” to Retail Specialists, according to Silsbee. “The vibrancy of The Alley project; the walkability of downtown; the success of the Renaissance and that site being right there made it an easy decision,” Silsbee said. He said the firm wasn’t in Montgomery looking for potential projects, but just to promote retail.

D E

MAN

D I N G

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He said the project has grown from 40-plus loft units to 64. “We looked at the demand in the market and realized that we could really utilize the site by adding (units).” The mayor hopes that with the 64 loft apartments, along with nearby projects adding dozens more, the growing number of residents can attract a small, downtown grocery store. Retail Specialists, which has offices in Birmingham and New Orleans, is a commercial real estate firm. •

Th e M o n t g o m e r y A c a d e m y T h e

P u r s u i t

o f

E x c e l l e n c e

admissions@montgomeryacademy.org montgomeryacademy.org Financial Aid Available The Montgomery Academy admits students of any race, religion, national or ethnic origin to all the rights, privileges, programs and activities generally accorded or made available to students of the school.

April 2014 Montgomery Business Journal

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NEW COMPASS POINT BBVA Compass sign sits atop 15-story building by David Zaslawsky

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Montgomery Business Journal April 2014

photography by Robert Fouts

When Montgomery Mayor Todd Strange was traveling from Birmingham to Montgomery a couple of months ago he recalled seeing the bright lights of downtown Montgomery. He said that five years ago you would not have “seen much” or even three years ago or two years ago. Strange said that now “you have the nice lights of banks and you have a new BBVA Compass here.” That’s right, BBVA Compass has moved from Executive Park on the Eastern Bypass to downtown Montgomery on Commerce Street, which once again is becoming home to a thriving banking community. “Major banks, in my opinion, should be downtown,” said Bruce Crawford, city president for the Montgomery area for BBVA Compass. “It’s where commerce is.

Quite frankly, the opportunity to locate on Commerce Street and put your sign on the top of a 15-story building just makes good business sense.” The move from the bypass to downtown is strictly about location and your company’s name in giant letters on a giant building. The BBVA Compass corporate office, which was located at Executive Park for more than 20 years, owned the building with about 30,000 square feet. Now, Compass has about 7,000 square feet. “It’s not only the physical move of being downtown,” Crawford said, “but also the fact that it does give us a much higher profile in the community because we are very visible strictly from a name recognition standpoint. It (increases) the percentage of people who are familiar with your name, and that helps with the overall branding.” He said there were several reasons for making the move to downtown. “First and foremost, we are closer to a significant amount of our clients located downtown,” Crawford said,

“It does give us a much higher profile in the community because we are very visible strictly from a name recognition standpoint.” -Bruce Crawford, city president, Montgomery area, BBVA Compass

referring to commercial banking and wealth group clients. The downtown office also handles retail branch administration, but there is no actual branch. Other factors in the move, according to Crawford, were access to both Interstate 65 and Interstate 85 and the Interstate 65 corridor. CONTINUED ON PAGE 48

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Those attending a ribbon-cutting for BBVA Compass’ new downtown home were (from left) Bruce Crawford, city president, Montgomery area for BBVA Compass; Leslie Sanders, chairman of the board of the directors of the Montgomery Area Chamber of Commerce; Montgomery Mayor Todd Strange; Owen Aronov, president of Aronov Realty Management Inc.; and Ham Wilson, managing partner of the law firm Ball, Ball, Matthews & Novak.

BBVA Compass will have about 20 employees at the downtown corporate office. “Not only am I excited about a new location, but I’m excited about the fact we are located downtown,” Crawford said. “What a tremendous opportunity for us – what a dream come true to be located at 60 Commerce St. on the ground floor with your name on the top of the building.” CONTINUED FROM PAGE 47

The bank is operating on the ground floor of 60 Commerce St. in an open and airy environment that features work stations instead of cubicles. “This is not your grandparents’ bank,” Crawford said at a recent ribbon cutting for BBVA Compass, which has 685 branches nationwide,

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including 90 in Alabama. “It’s a truly collaborative, open environment.” He thanked the local elected leaders and Montgomery Area Chamber of Commerce for “giving us an environment of pro-business … that allows us to be successful.”

BBVA Compass is the No. 2 bank in Alabama by deposit market share and is fourth in Texas and fifth in Arizona. The bank also has branches in California, Florida, Colorado and New Mexico. The bank’s parent, BBVA, has worldwide assets of $826 billion; 50 million customers; 7,500-plus branches; and nearly 110,000 employees. •

Member News

Collin R. Gaston

WSFA 12 NEWS ADDS SPECIALLY EQUIPPED WEATHER TRUCK MONTGOMERY – The WSFA Doppler 12 StormVision team is now equipped with StormTracker 12, a heavy duty 2013 Ford Expedition XLT. The interior of the vehicle has been heavily modified to include a mobile weather lab; broadcastquality cameras; and a mobile transmitter, which utilizes multiple cell phone signals to broadcast a signal back to the station in real time.

Stormtracker12 has a roofmounted camera encased in a clear glass dome for tracking storms across Alabama. Laptops inside the StormTracker give the station’s meteorologists access to radar – allowing them to track storms as they travel through Alabama. “StormTracker 12 will help us get a meteorologist close to threatening weather to provide instant expert analysis of an approaching storm,” Scott Duff, news director for WSFA 12 News, said in a statement. “Being able to observe storms in the field and out of the studio, will give our meteorologists in the studio more data to help keep viewers safe when faced with severe weather.” The vehicle will also be an important promotional tool at special events, including school visits. A 42-inch rear-mounted

BUSINESS BUZZ HDTV monitor will enable meteorologists to showcase the technology when they visit schools and civic groups. “StormTracker 12 is an important tool for WSFA 12 News, it will allow our team to bring real-time and accurate information to our community at an unprecedented speed,” Vice President and General Manager Collin R. Gaston said in a statement. “This information can save lives and that’s our main goal: to keep our viewers safe and out of harm’s way.”

Leonardo Maurelli III

CENTRAL CHEF FEATURED IN EXCLUSIVE LISTING MONTGOMERY – Chef Leonardo Maurelli III of Central has been included as one of the best chefs in the South in Best (CONTINUED ON PAGE 50)

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BUSINESS BUZZ (CONTINUED FROM PAGE 49) Chefs America Presents: The American South.

Gold ADDY Awards and also received a Public Service Award.

In 2013, Best Chefs America introduced the first-ever comprehensive, peer-review guide of chefs in the U.S., highlighting the top 1 percent of chefs in the country. The book was the result of more than 5,000 one-on-one interviews with chefs across the country to find out who chefs think are the best. This is the first in a five-part series of regional guides.

WCOV Fox 20 captured the Best of Show Broadcast for a 30-second television commercial.

“I am thrilled to be selected by my peers and included in The American South,” Maurelli said in a statement. “This recognition is truly an honor and gives me yet another reason to be appreciative of my fellow professionals and chosen profession.” Maurelli, who is the executive chef of Central Restaurant located in The Alley in downtown Montgomery, is a native of Panama and came to Alabama in the early 1990s.

Jim Leonard

Camille Leonard

LWT COMMUNICATIONS WINS FOUR TOP ADDY AWARDS

There were 16 Gold ADDY Awards and 27 Silver ADDY Awards; seven student Gold ADDY Awards; and 15 student Silver ADDY Awards. The 151 entries were judged based on creativity, originality and creative strategy. Other Gold ADDY Award winners were: Auburn University Office of Communications & Marketing; exploreMedia; Candice Butterfield Design; Studio Elle Designs; and Joe & Robin Do Something.

“This is our fifth year in business, and the sixth straight year we have been nominated for a Pollie,” Chairman David Mowery said in a statement, referring to a nomination he received before his company was incorporated. “I am grateful to my friend Danne Howard and the entire Alabama Hospital Association organization for entrusting us with the public affairs campaign that led to these nominations.” Mowery Consulting is a political consulting and public relations agency headquartered in Montgomery. In 2013 and in 2012, Mowery Consulting was nominated and won a total of five awards, and since 2008 has a total of eight statues. Mowery was named a Rising Star by Campaigns and Elections Magazine in 2011.

MONTGOMERY – LWT Communications received four of the top awards at the American Advertising FederationMontgomery ADDY Awards. The firm, which since has merged with Reid/O’Donahue Advertising to form Stamp Idea Group, won the Best of Show Interactive and the Best of Show Print categories. Meanwhile employees Camille Leonard won Art Director of the Year and Jim Leonard won the Copywriter of the Year award. LWT won nine

received nominations for Best in Show, Best Website and Best Web Video.

David Mowery

MOWERY CONSULTING NOMINATED FOR MULTIPLE AWARDS MONTGOMERY – Mowery Consulting Group was nominated for multiple Pollie Awards, which will be presented at the 2014 American Association of Political Consultants Convention in San Diego. Mowery Consulting was nominated for “What Is Trauma” – a Public Relations campaign for the Alabama Hospital Association in the new Public Affairs Campaign Division. The firm

“It is great that our nominations this year coincided with an emphasis on the public relations side of our work,” Mowery said. “Bringing campaign style strategy, tactics and speed to public affairs communications is where the future nexus of the public relations world is headed. We intend to be there to capitalize.” NATIONAL LAW JOURNAL RECOGNIZES BEASLEY ALLEN FIRM ON ‘HOT LIST’ MONTGOMERY – Beasley, Allen, Crow, Methvin, Portis & Miles, P.C. has been selected for inclusion on the National Law Journal’s Plaintiffs Hot List, which identifies the most successful practices. The NLJ asks its readers to nominate firms in the United States that have done “exemplary, cutting-edge work on the plaintiffs’ side.” Criteria

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BUSINESS BUZZ to serve customers through the bank division.

for selection include “at least one significant plaintiffs’ win between Feb. 1, 2013 and Jan. 21, 2014 and “an impressive track record of wins in the past three to five years.� The magazine will spotlight the firm for two cases in particular: an October 2013 Oklahoma City jury verdict and settlement against Toyota Motor Corp. and Toyota Motor Sales for litigation related to sudden unintended acceleration, which was handled by Jere Beasley, Cole Portis, Graham Esdale and Ben Baker; and ongoing litigation related to average wholesale price/ Medicaid fraud, and in particular the Mississippi average wholesale pricing ruling against Watson Pharmaceuticals. Dee Miles, Roman Shaul, Clay Barnett, Chad Stewart and Ali Hawthorne handled the case.

Alan Worrell

STERLING BANK CELEBRATES 25 YEARS MONTGOMERY – Sterling Bank celebrated 25 years of serving customers and communities in March. The division was founded in 1989 and still operates under its original name. Alan Worrell, President and CEO of Sterling Bank, and Forrest Neeley, executive vice president, helped establish and continue

“We are excited and proud to reach this milestone for our organization, and we are grateful for the loyalty of our customers and unwavering commitment of our team who serves them,� Worrell said in a statement. “We are looking forward to many more years of investing in the economic progress of the Montgomery market and contributing to the quality of life in this community.� Sterling Bank, a division of Synovus Bank, operates four branches in the Montgomery and Prattville markets. EIGHTEEN RUSHTON STAKELY ATTORNEYS NAMED BEST LAWYERS 2014 MONTGOMERY – The law firm of Rushton, Stakely, Johnston &

Garrett, P.A., announced that 18 attorneys were chosen for the 2014 edition of The Best Lawyers in America. The selected lawyers are: Dennis R. Bailey, communications law, bet-the-company litigation, commercial litigation, litigation - banking & finance, litigation - intellectual property, litigation - labor & employment, litigation - real estate, and product liability litigation - defendants; Jeffrey W. Blitz, real estate law; L. Peyton Chapman, medical malpractice law - defendants; Ronald G. Davenport, personal injury litigation - defendants; William I. Eskridge, real estate law; James W. Garrett Jr., personal injury - defendants, mediation, and insurance law; Richard B. Garrett, medical malpractice law – defendants and personal injury litigation - defendants; (CONTINUED ON PAGE 52)

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April 2014 Montgomery Business Journal

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BUSINESS BUZZ (CONTINUED FROM PAGE 51) William S. Haynes, medical malpractice law – defendants and personal injury litigation defendants; J. Theodore Jackson Jr., litigation & controversy - tax, tax law, trusts & estates; Paul M. James Jr., personal injury litigation - defendants; Thomas H. Keene, medical malpractice law – defendants and personal injury litigation - defendants; Daniel L. Lindsey, tax law and trusts & estates; Patrick M. Shegon, medical malpractice law - defendants; Christopher S. Simmons, litigation & controversy - tax, employee benefits (ERISA) law, public finance law, tax law, and trusts & estates; Frank J. Stakely, medical malpractice law – defendants and personal injury litigation - defendants; Fred W. Tyson, medical malpractice law – defendants and personal injury litigation - defendants; Robert C. Ward Jr., mediation and insurance law; and Helen Crump Wells, tax law and trusts & estates. Best Lawyers has been regarded as the definitive guide to legal excellence in the United States for 30 years. Inclusion in the Best Lawyers list is based on a rigorous national survey of almost 50,000 leading U. S. attorneys, and Corporate Counsel magazine has called Best Lawyers “the most respected referral list of attorneys in practice.”

has held the certified financial planner designation for more than 13 years.

Brandy Kydrick

WELCH HORNSBY INVESTMENT ADVISORS OPENS NORTH CAROLINA OFFICE MONTGOMERY – Welch Hornsby Investment Advisors announced the opening of a new office in Charlotte, N.C., and named Brandy Hydrick the head of financial planning for the firm and manager of the Charlotte office.

“It’s a very exciting time for our firm, and this is a key strategic position for us,” Chairman John Hornsby said in a statement. “With Brandy Hydrick’s background, depth of experience, and dedication to developing comprehensive financial plans for clients, we are delighted to welcome her to Welch Hornsby.” Welch Hornsby, which was founded in 1988, has its headquarters in Montgomery and offices in Birmingham and Charlotte.

Welch Hornsby is an independent, fee-only investment adviser serving clients in 12 states across the Southeast. “Welch Hornsby has worked to become a regional firm over the last 25 years,” President and CEO Edward V. Welch Jr. said in a statement. “A presence in Charlotte establishes us in this important Southeastern hub and fits our strategy of providing a solid base for future expansion in the region.” Hydrick brings more than 16 years of financial planning experience in advising high-net worth individuals and families in a fee-only environment. Prior to joining Welch Hornsby, she owned an independent financial planning practice. A graduate of The University of Alabama, she

John Yelverton

“This expansion was a matter of first listening to our customers,” Noble Yelverton said in a statement. “Over the years, many asked us for recommendations about other types of contracting services. We recognized that we could meet their requests best by applying the same high-quality and professionalism that they expect from us in the creation of a new division for plumbing.” Noble Yelverton said, “We didn’t just cross-train electricians to become plumbers. We started from the ground up. That included conducting customer surveys to find out what our customers really wanted and needed and then hiring experienced plumbing professionals who met our rigid standards. From that, we also relied on both customer and professional input to create a plumbing division that served at the highest level.” MONTGOMERY ZOO SELECTS VOLUNTEERS OF THE YEAR MONTGOMERY – Janie Jenkins was selected as the Montgomery Zoo’s Docent of the year and Adriana Bloodworth was chosen the Zooteen of the Year.

Noble Yelverton

DIXIE ELECTRIC AND PLUMBING LAUNCHES NEW DIVISION MONTGOMERY – Dixie Electric and Plumbing has introduced a new division to provide residential and commercial plumbing services. The 105-year-old company is now headed by the founder’s great-grandsons John and Noble Yelverton.

There are about 50 docents and zooteens who combined volunteered 15,000 hours last year. “Each volunteer is an integral part of the education department and we could not run this department without volunteers,” education curator Jennifer Hutcheson said in a statement. The docents and volunteers clean and feed the animals in the education department; participate in zoo events throughout the year; and assist with presentations to children, churches and nursing homes and help with birthday parties. Those interested in being a volunteer should contact Hutcheson at (334) 240-4909 or jhutcheson@montgomeryal.gov. •

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Member News

Grant Sexton

Lisa Riley

RUSHTON, STAKELY, JOHNSTON & GARRETT ANNOUNCES SHAREHOLDER

MICROLENDER NAMES DELTA REGION VP

MONTGOMERY – T. Grant Sexton Jr. has been named a shareholder in the law firm of Rushton, Stakely, Johnston & Garrett, P.A. Sexton’s practice is devoted to litigation in state and federal courts. He has been selected for inclusion in Alabama Super Lawyers 2012-2014 as a Rising Star in Medical Malpractice Defense. He is licensed to practice in Alabama and Oklahoma.

BIRMINGHAM – The nation’s largest microlending organization, Accion Texas Inc., has promoted Lisa Riley to vice president of the Delta region. Riley, who previously served as Delta region manager, will remain based in Birmingham and will continue her ongoing responsibilities throughout Alabama and oversee Accion’s small-business lending and education programs in Arkansas, Kentucky, Mississippi, Missouri and Tennessee.

MEMBERS ON THE MOVE She continues to be responsible for the management and performance of the nonprofit organization’s loan programs throughout the region, supervising all lending staff, fundraising, public relations, marketing and more. “Lisa has proven herself a valuable member of our team and we are proud of her contributions to Accion - especially her leadership in the Delta region,” Chief Lending Officer Dan Lawless said in a statement. “We continue to move forward with our mission and continue helping

entrepreneurs and existing smallbusiness owners in Alabama and the Delta Region.” Riley, who helped launch Accion’s Alabama operations in January 2012, is currently majoring in business at the University of West Alabama. Since opening in Alabama in January 2012, Accion Alabama – with offices in Birmingham and Mobile - has made nearly $700,000 in loans to more than 60 businesses. Throughout the Delta region, Accion has disbursed nearly $2 million since 2012. (CONTINUED ON PAGE 54)

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(CONTINUED FROM PAGE 53)

a customer,” Dixon said in a statement. “We can service the whole truck, offer leasing whatever the customer needs, we can provide.”

Timothy Gallagher

SASSER, SEFTON, BROWN, TIPTON & DAVIS NAME SHAREHOLDER MONTGOMERY – Sasser, Sefton, Brown, Tipton & Davis, P.C., announced that Timothy J. Gallagher has been named a shareholder of the law firm. Gallagher joined the firm in 2007 after graduating from The University of Alabama School of Law. He is a member of the litigation, creditor rights and bankruptcy and financial services practice groups.

Although Dixon will be based out of the Tifton, Ga. location, his goal is to increase sales for all locations including Montgomery, Dothan, Tallahassee, Fla., and Valdosta, Ga. He will work with all Four Star service managers at all five locations. “This job was a good opportunity to do something on a broader level,” he said. “I want customers to know that Four Star is always available to help at anytime. We can work after hours and around their schedules to make sure they’re never down and without a truck.”

the members’ best interests in mind,” ASE Credit Union CEO Ned McHenry said in a statement. “ASE Credit Union is very fortunate to have her on board as an important member of our management team and we look forward to seeing where she takes our credit union in the future.” Garner comes to ASE after Melanie Math, former vice president of lending, retired last year. She had been with ASE Credit Union for 12 years and helped the loan department expand. ASE Credit Union, which was established in 1954, operates four offices in Montgomery, Millbrook and Wetumpka.

Mark A. Crosswhite Candace Garner

Scott Dixon

FOUR STAR FREIGHTLINER HIRES FLEET SERVICES MANAGER TIFTON, Ga. – Scott Dixon has been hired by Four Star Freightliner to focus on solutions for local and national fleet customers in the company’s dealership network. Dixon, the new fleet services manager, will have a range of duties including searching for service and parts opportunities, including additional leasing and mobile maintenance solutions. “One thing that Four Star does is offer a complete solution to

54

ASE CREDIT UNION HIRES VICE PRESIDENT OF LENDING MONTGOMERY – The Alabama State Employees’ Credit Union (ASE Credit Union) has hired Candace Garner as vice president of lending. Garner, a graduate of Prattville High School and Auburn University at Montgomery, has nine years of experience in the financial industry, including four years with credit unions. She received a bachelor’s degree and master’s degree in accounting from AUM. “Because of Candace’s strong interest in the credit union movement, we believe that she will create loan programs with

Montgomery Business Journal April 2014

ALABAMA POWER BOARD OF DIRECTORS ELECTS PRESIDENT/CEO BIRMINGHAM – The Alabama Power Board of Directors has elected Mark A. Crosswhite as the new president and CEO of the company. Crosswhite also will join the board of directors of Alabama Power. He succeeds Charles McCrary, who is retiring after more than 12 years as the company’s leader. McCrary will remain chairman of the board of directors of Alabama Power until May 1, when Crosswhite is expected to assume the role. “It is an honor to rejoin the ranks of the 6,700 employees of Alabama Power who, for

more than a century, have been dedicated to serving communities across our state,” Crosswhite said in a statement. Crosswhite, 51, returns to Alabama Power from Southern Co., Alabama Power’s parent, where he served as chief operating officer. In that position, Crosswhite oversaw Southern Co.’s operations organization, which includes generation, transmission, engineering and construction services, system planning, research and environmental affairs, fleet operations, and trading. He also had responsibility over wholesale energy providers Southern Power and Southern Wholesale Energy. Crosswhite first joined Southern Co. in 2004 as senior vice president and general counsel for Southern Co. Generation. Prior to joining Southern Co., he was a partner in the law firm of Balch & Bingham LLP in Birmingham, where he practiced in the energy section for 17 years. He first joined Alabama Power in 2006 as senior vice president and counsel, where he oversaw the company’s legal matters. In 2008, he was named executive vice president for external affairs at Alabama Power, where he directed regulatory affairs, economic and community development, public relations, environmental affairs and governmental affairs. Crosswhite served as president and chief executive officer of Florida-based Gulf Power, also a Southern Co. subsidiary, from 2010 until 2012. A native of Decatur, Crosswhite received a bachelor’s degree in 1984 from The University of Alabama in Huntsville and a law degree in 1987 from The University of Alabama School of Law.

Wallace Drury, David Heflin and Josh Melson. Cox is the Area 2 organization director and his territory covers Cullman, Fayette, Franklin, Lamar, Marion, Walker and Winston counties. Wallace Drury

Bradley Cox

David Heflin

Josh Melson

ALABAMA FARMERS FEDERATION NAMES AREA ORGANIZATION DIRECTORS MONTGOMERY – The Alabama Farmer Federation has named five area organization directors: Bradley Cox, Preston Roberts, Preston Roberts

“The most important function the federation serves is being an advocate for farmers,” Cox said in a statement. “My family has a long history as members of the organization, and I’m proud to be part of a group that defends the rights of farmers.” Cox, who graduated from Auburn University at Montgomery in 2012, is an Arab native. “With his background, Brad understands the day-to-day tasks of farming and, as a former ag teacher, knows how to make farming appeal to the younger generation,” Federation Organization Department Director Mike Tidwell said in a statement. “I know Brad will

work hard to represent our farmers and members in a very positive manner.” Roberts is the Area 7 organization director, who oversees Barbour, Bullock, Chambers, Lee, Macon, Randolph and Russell counties. He graduated from Auburn University in 2011 with a degree in fisheries and grew up on a catfish and cattle farm in Hale County. “The Alabama Farmers Federation is a great organization that truly feels like a family,” Roberts said in a statement “I am very thankful to have the opportunity to work alongside farmers to promote and advance agriculture in Alabama.” Before joining the Federation, he was an environmental scientist with the Alabama Department of Environmental Management. “With his background in environmental science and his (CONTINUED ON PAGE 56)

April 2014 Montgomery Business Journal

55

(CONTINUED FROM PAGE 55)

Auburn education, Preston has a wealth of knowledge and experience that will be great benefits to the Federation,” Tidwell said. Drury is in charge of Bibb, Greene, Hale, Jefferson, Pickens and Tuscaloosa counties as the Area 6 organization director. He received a horticulture degree from Auburn University in 2011 and previously worked as an Alfa Insurance agent. “I am very excited and privileged to be with the Alabama Farmers Federation,” Drury said in a statement. “Growing up on a family farm, I developed a strong passion for agriculture at a young age. I am honored to work with our farmers across the state.” Tidwell said that Drury’s experience with Alfa Insurance

and a background in farming will serve him well in his new position. “Wallace is extremely committed to this organization, and he understands both the insurance and farming sides of the business,” Tidwell said. Heflin, the Area 5 organization director, is responsible for Autauga, Butler, Chilton, Crenshaw Elmore, Lowndes and Montgomery counties. “The opportunity to work with such a great group of people is a dream come true,” he said in a statement. “This organization has a proud history of serving its members and I’m humbled to help carry on this tradition.” Heflin graduated from Auburn University in 2007 with a

degree in forestry economics. He previously worked six years with Alabama Power Co. and was responsible for vegetation management in a sevencounty area.

“Knowing someone invested time and money into my agriculture education with the scholarship was a tremendous driving force for me to succeed,” he said in a statement.

“David will be working in the community where he was raised, and I know his experience working with the public and his dedication to farming will serve him well in this position,” Tidwell said.

“The federation stands for the same values I have. It’s a great journey ahead.” Prior to joining the federation, Melson worked as a broiler field representative with Wayne Farms.

Melson is the Area 1 organization director and his territory covers Colbert, Lauderdale, Lawrence, Limestone, Madison and Morgan counties.

“Previous work experience in the poultry industry combined with his Auburn education provided Josh with a great understanding of agriculture in Alabama …” Tidwell said.

A 2012 Auburn University graduate and past federation scholarship recipient, Melson said he looks forward to working alongside the state’s farmers.

The Alabama Farmers Federation is the state’s largest farm organization with more than 365,000 members. •

Ribbon Cuttings & Ground Breakings

HERE WE GROW AGAIN

56

CIVIL HERITAGE TRAIL 300 Water Street Montgomery, AL 36104 334-834-2044 Jeff Andrews-Past President, Downtown Business Association

GRAYBAR ELECTRIC 520 North Eastern Boulevard Montgomery, AL 36117 334-819-5200 www.graybar.com Mark Adams-Branch Manager Electronic Equipment & Supplies

SPOTLESS, LLC 26 C Penser Boulevard Millbrook, AL 36054 334-531-7231 Jennifer Burr-Owner Maid Services

THE LAW OFFICES OF ZACKERY L. BURR LLC 8 Commerce Street, Suite 410 Montgomery, AL 36104 334-245-0725 www.montgomery-lawyer.com Zackery Burr-Attorney Legal Services-Attorney

BISTRO B 130 Commerce Street, Suite 100 Montgomery, AL 36104 334-539-6271 Tracy Bhalla-Owner Restaurants

BBVA COMPASS 60 Commerce Street, 1st Floor, Suite 100 Montgomery, AL 36104 334-409-7445 www.bbvacompass.com Bruce Crawford-City President Banks

Montgomery Business Journal April 2014

NEW MEMBERS Apartments

Churches/Ministries

BARRINGTON PLACE AT SOMERSET Debbie Killough 280 New Haven Boulevard Montgomery, AL 36117 334-356-6850

THE CHURCH AT EASTERN OAKS Daniel Gillenwater 7505 Wares Ferry Road Montgomery, AL 36117 334-396-9811

HILLWOOD APARTMENTS Shandra Johnson One Gatsby Drive Montgomery, AL 36106 334-834-3400

Consulting Services

Associations/Non-Profit AARP ALABAMA Lisa Billingsley 201 Monroe Street, Suite 1880 Montgomery, AL 36104 334-954-3059 CHILDREN’S HARBOR Jim Ray 1 Our Children’s Highway Alexander City, AL 35010-8620 334-857-2133 PROJECT MANAGEMENT INSTITUTE/ MONTGOMERY CHAPTER Bruce Ward 417 Interstate Park Drive Montgomery, AL 36109 334-395-6491 URBAN SEED XCHANGE Joshua Conley 1623 Mobile Road Montgomery, AL 36108 337-501-0966

Beauty Salons/Spas GOLDEN SHEARS AND MORE Reginald Miller 1801 West 3rd Street Montgomery, AL 36106 334-220-6061

Business Brokers ALBRITTON & ASSOCIATES, LLC John N. Albritton P.O. Box 1189 Montgomery, AL 36101-1189 334-269-9040

Catering Services WEST WING & CATERING Dondi Wright 3307 Mobile Highway Montgomery, AL 36108 334-356-8080

THE LOWRY GROUP, LLC Ted Lowry 1532 Old Park Row Montgomery, AL 36117 334-315-9466

Credit Union GUARDIAN CREDIT UNION Summer Rowe 2755 Taylor Road Montgomery, AL 36117 334-241-8769

Gifts & Specialty-Retail EDIBLE ARRANGEMENTS Michelle Wood 3000 Zelda Road Montgomery, AL 36106 334-270-2888

Insurance Companies/ Services DOZIER INSURANCE AGENCY Woody Dozier P.O. Box 242068 Montgomery, AL 36124 334-420-3798 WILL PARSONS.COM William Parsons 353 Cloverdale Road Montgomery, AL 36104 334-546-3354

Investment Advisors/ Brokers AIM GROUP Jim Corman 2124 Moores Mill Road, Suite 230 A Auburn, AL 36830 334-321-2291

Legal Services - Attorneys

PharmaceuticalSupplies/Equipment VITRUVIAS THERAPEUTICS LLC Carl L. Whatley P.O. Box 241028 Montgomery, AL 36124-1028 334-669-4092

Real EstateCommercial/Investments BLUE RIDGE CAPITAL, LLC Fritz McPhail 3715 Northside Parkway, Suite 2-450 Atlanta, GA 30327 404-358-2888

Restaurants WEST WING & CATERING Dondi Wright 3307 Mobile Highway Montgomery, AL 36108 334-356-8080

Restaurants-Barbeque DREAMLAND BAR-B-QUE Bob Parker P.O. Box 468 Montgomery, AL 36101-0468 334-273-7427

Security Systems ADT SECURITY SERVICES, INC. Ricky Scott 5911 Monticello Drive Montgomery, AL 36117 334-395-5771

Telecommunications WINDSTREAM COMMUNICATIONS Sean Silbernagel 3100 Cottage Hill Road, Suite 500 Mobile, AL 36602 251-544-4658

Web Design/Web Hosting SQUARE ROOT INTERACTIVE Mark Cline 4249 Lomac Street Montgomery, AL 36106 334-832-4340

RED OAK LEGAL, P.C. Raley L. Wiggins 401 Madison Avenue Montgomery, AL 36104 334-239-3625

April 2014 Montgomery Business Journal

57

Unemployment Data Civilian Labor Force AREA

JANUARY p 2014

DECEMBER r 2013

165,723

165,534

166,523

6.90%

5.90%

7.50%

25,282

25,332

25,443

5.90%

5.10%

6.60%

Montgomery MA Autauga County Prattville City Elmore County

Montgomery City Birmingham-Hoover MA Birmingham City Huntsville MA Huntsville City Mobile MA Mobile City Alabama

JANUARY r 2013

JANUARY p 2014

DECEMBER r 2013

JANUARY r 2013

16,072

16,130

16,231

4.70%

4.00%

5.70%

34,960

34,946

35,163

6.40%

5.40%

7.10%

Lowndes County Montgomery County

United States

Unemployment Rate

380

3,823

3,975

11.80%

9.60%

14.00%

101,601

101,435

101,943

7.20%

6.10%

7.60%

90,930

90,794

91,238

7.10%

6.00%

7.50%

527,190

525,941

527,907

6.00%

4.90%

6.60%

88,940

88,495

89,134

7.90%

6.70%

8.60%

210,383

208,733

212,793

5.90%

4.90%

6.30%

89,362

88,667

90,431

5.90%

4.90%

6.40%

180,926

180,130

183,978

7.80%

6.60%

8.50%

84,185

83,769

85,460

8.10%

6.90%

8.70%

2,120,217

2,113,260

2,142,812

6.80%

5.70%

7.40%

154,381,000

154,408,000

154,794,000

7.00%

6.50%

8.50%

MA=Metropolitan Area. pPreliminary rRevised Estimates prepared by the Alabama Department of Industrial Relations in Cooperation with the Bureau of Labor Statistics, based on 2013 benchmark.

Sales Tax Collections FEBRUARY 2014

FEBRUARY 2013

YEAR OVER YEAR % CHANGE

YTD 2014

YTD 2013

YEAR OVER YEAR % CHANGE

Montgomery County

$2,918,926

$3,014,488

-3.17%

$6,777,326

$6,933,671

-2.25%

City of Montgomery

$6,769,622

$6,765,724

0.06%

$15,755,638

$15,936,413

-1.13%

Pike Road

$164,375

$180,277

-8.82%

$329,409

$334,556

-1.54%

Millbrook

$432,605

$429,230

0.79%

$991,060

$982,132

0.91%

Autauga County Prattville Wetumpka

$576,604

$601,709

-4.17%

$1,304,607

$1,313,802

-0.70%

$1,427,975

$1,447,765

-1.37%

$3,563,994

$3,617,648

-1.48%

$408,795

$434,536

-5.92%

$926,509

$1,004,594

-7.77%

Sources: Montgomery County Commission, City of Montgomery, City of Pike Road, Autauga County Commission, City of Prattville, Elmore County Commission, City of Wetumpka, City of Millbrook Note: YTD numbers are January 2013 thru current month.

Building Starts Building Permits FEBRUARY 2014

Building Valuations FEBRUARY 2013

FEBRUARY 2014

JANUARY 2014

FEBRUARY 2013

New Construction

20

15

29

$2,971,000

$11,635,000

$8,923,600

Additions and Alterations

71

47

59

$10,727,700

$3,985,700

$6,026,700

Others

20

10

32

$152,400

$37,200

$402,800

111

72

120

$13,851,100

$15,657,900

$15,353,100

Total Source: City of Montgomery Building Department

58

JANUARY 2014

Montgomery Business Journal April 2014

5_10654

7.625x10 4c

Take your business to new places

If you’ve got a vision, an SBA loan can help you get there. Our longer terms and lower down payments can help your business grow and keep our communities strong and vibrant. An SBA loan can help you: • Purchase commercial real estate • Acquire a business • Expand your business • Buy equipment • Build inventory

1 SBA lender*

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for the 5th year

Borrow with confidence

Stop by and talk with a banker today. You can also give us a call at 1-800-545-0670 (Monday – Friday, 7:00 a.m. – 7:00 p.m. Central Time) or visit us at wellsfargo.com/biz to learn more.

*

Wells Fargo is the #1 SBA 7(a) lender by dollars according to the U.S. Small Business Administration as of September 30, 2013. All financing is subject to credit approval and SBA eligibility. Š 2013 Wells Fargo Bank, N.A. All rights reserved. (1162415_10654)

B [ F LQGG

$0

Montgomery Metro Market Home Sales MONTH/MONTH % CHANGE

STATEWIDE FEBRUARY 2014

JANUARY 2014

Median Price

$139,000

$119,500

16.32%

$125,000

11.20%

$122,298

Average Price

$147,072

$140,541

4.65%

$133,504

10.16%

$147,298

2,751

2,686

2.42%

2,651

3.77%

31,692

Months of Supply

10.8

12

-10.00%

10.5

2.86%

10.9

Total # Sales

255

223

14.35%

253

0.79%

2,914

Days on Market

137

132

3.79%

117

17.09%

153

Units Listed

FEBRUARY 2013

YEAR/YEAR % CHANGE

FEBRUARY 2014

Source: Alabama Center for Real Estate (ACRE), The University of Alabama

Montgomery Regional Airport FEBRUARY 2014 Air Carrier Operations

FEBRUARY 2013

YTD 2014

YTD 2013

YEAR OVER YEAR % CHANGE

634

816

-22.3%

1,451

1,644

-11.7%

4,288

4,203

2.0%

9,228

8,051

14.6%

Enplanements

11,270

12,211

-7.7%

21,698

24,879

-12.8%

Deplanements

11,096

12,223

-9.2%

22,511

25,641

-12.2%

Total Passengers

22,366

24,434

-8.5%

44,209

50,520

-12.5%

Total Operations

Source: Montgomery Regional Airport (MGM) Dannelly Field

60

YEAR OVER YEAR % CHANGE

Montgomery Business Journal April 2014

Airline Fares Roundtrip airfare comparisons from Montgomery, Birmingham and Atlanta airports to key destinations. DESTINATION

MONTGOMERY

BIRMINGHAM

ATLANTA

Memphis (MEM)

$456

$456

$287

Baltimore (BWI)

$379

$302

$274

Miami (MIA)

$342

$348

$224

Boston (BOS)

$438

$436

$280

Nashville (BNA)

$459

$459

$313

Charlotte, NC (CLT)

$264

$279

$293

New Orleans (MSY)

$505

$355

$218

Chicago (ORD)

$440

$216

$290

New York (JFK)

$391

$299

$259

Cincinnati (CVG)

$394

$399

$253

Orlando (MCO)

$395

$367

$229

Dallas/Ft Worth (QDF)

$314

$377

$183

Philadelphia (PHL)

$370

$300

$238

Denver (DEN)

$382

$345

$198

Pittsburgh (PIT)

$400

$396

$229

Detroit (DTW)

$387

$351

$262

St Louis (STL)

$337

$228

$257

Houston (HOU)

$348

$408

$295

Seattle (SEA)

$461

$458

$342

Indianapolis (IND)

$390

$442

$218

Seoul (SEL)

$1,558

$1,199

$1,205

Las Vegas (LAS)

$548

$472

$396

Tampa (TPA)

$384

$283

$241

Los Angeles (LAX)

$481

$396

$357

Washington DC (DCA)

$390

$262

$290

Date of travel: April 15-20, 2014. Date of pricing: March 9, 2014. Source: travelocity.com

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April 2014 Montgomery Business Journal

61

Hyundai Sales VEHICLE

FEB 2014

FEB 2013

YTD 2014

YTD 2013

5,925

4,750

10,165

8,245

Accent Sonata

11,190

16,007

21,005

29,254

Elantra

16,393

16,219

31,719

28,393

6,993

6,339

13,714

12,330

596

795

1,358

1,592

Santa Fe Azera Tucson

3,956

3,444

7,489

6,937

Veloster

2,083

1,905

3,904

3,664

Veracruz Genesis

0

65

1

97

1,607

2,517

3,066

4,989

260

270

587

523

49,003

52,311

93,008

96,024

Equus Total

Source: Hyundai Motor America

Quarterly Reports NAME

Home Depot

NET INCOME

EARNINGS PER SHARE

EARNINGS ESTIMATE

YEAR-AGO REVENUES

YEAR-AGO NET INCOME

NOTABLE

$17.7B

$1B

$0.73

$0.71

$18.2B

Dillard’s

$2B

$119.1M

$2.71

$2.99

$2.1B

Bloomin’ Brands (Bonefish Grill, Outback Steakhouse)

$1B

$59M

$0.46

$0.26

$998.4M

Lowe’s

$11.7B

$306M

$0.39

$0.29

$11B

Sears Holdings

$10.6B

(-$358M)

(-$3.37)

(-$1.82)

$12.3B

Best Buy

$14.5B

$293M

$0.85

$1.01

$14.9N

Kohl’s

$6.1B

$334M

$1.56

$1.54

$6.3B

J.C. Penney

$3.8B

$35M

$0.11

(-$0.81)

$3.9B

(-$552M) Same-store sales up 2%

$2B

$63.2M

$0.86

$0.51

$2.2B

(-$3.7M) Revenue dropped 10.3%

Abercrombie & Fitch

$1.3B

$66.1M

$1.34

$1.04

$1.5B

$157.2M Profit fell 58%

Gap (Old Navy, Banana Republic)

$4.6B

307M

$0.68

$0.65

$4.7B

$128.8B

$4.4B

$1.36

$1.59

$127B

$21.5B

$520M

$0.81

$0.79

$22.7B

TJX Companies (TJ Maxx)

$7.8B

$582.3M

$0.81

$0.83

$7.7B

$604.8M Comparable store sales up 3%

L Brands (Bath & Body

$3.8B

$489.6M

$1.65

$1.61

$3.9B

$411.4M Profit rose 19%

$592.4M

$33.1M

$0.08

$0.09

$629.9M

$2.8B

$218M

$1.02

$1.02

$2.8B

$661.7M

$54M

$1.96

$1.95

$571.6M

$2.2B

$213M

$1.02

$1.05

$2.2B

Chico’s FAS

$610.2M

$5.9M

$0.04

$0.16

$651.9M

Haverty Furniture Companies

$196.2M

$9.7M

$0.42

$0.39

$182.3M

$3.2B

$151M

$0.49

$0.49

$3.8B

RadioShack

$93.5M (-$191.4M)

(-$1.46)

(-$0.14)

Costco

$26.3B

$463M

$1.05

$1.17

$24.9B

PetSmart

$1.8B

$131.5M

$1.28

$1.21

$1.9B

AutoZone

$2B

$192.8M

$5.63

$5.56

$1.9B

$1.8B

$121M

$0.81

$0.75

$1.7B

Barnes & Noble

Wal-Mart Target

Works, Victoria’s Secret)

Wendy’s Ross Stores Panera Bread Dollar Tree

Marriott International

Foot Locker

62

QUARTERLY REVENUES

Montgomery Business Journal April 2014

$1B Raised quarterly dividend 21% to 47 cents $161.4M Sales fell 3.4% $18.4M Brazilian transaction resulted in $38.6M gain $288M Sales up 5.6% (-$489) Sales declined 14% (-$409M) Sets target of $1B in cost cuts $378M Sales fell 3.8%

$351M Profit declined 12.5% on aggressive discounting $5.6B Profit dropped 21% $961M Profit decline of 46% related to massive data breach

$26.4M Profit jumped 25% $236.6M Juniors was best-selling category %2M Revenue jumped 16% $228.6M Comparable sales up 1.2% $32.7M Sales increased 6.4% $6.8M Comparable store sales rose 9.5% $181M Revenue per available room up 4.3% to $98.22

$1.2B (-$63.3M) Plans to close up to 1,100 underperforming stores $547M Profit fell 15% $134M Merchandise sales declined 4% $176.2M Same-store sales rose 4.3% $104M Same-store sales increased 5.3%

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