Montgomery Business Journal – March 2010 by Montgomery Area Chamber of Commerce

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MARCH 2010

24 5

Letter from the Publisher

Executive Editor’s Column

Calendar

Financial Forecasting: Q&A with Keivan Deravi

Hyundai Unveils 2010 Sonata Pricing

Investor Proﬁle: Goodwin, Mills & Cawood

Member Proﬁle: W.L. Bush

State of the City: Taking the Bulge out of the Budget

State of the County: Local Government Update

The Chamber’s 137th Annual Meeting

Chairman’s Award Winner Connie Harper

West Montgomery Revitalization

Alabama’s Economic Outlook

Business Buzz

Members on the Move

Ribbon Cuttings and Ground Breakings

New Members

Economic Intel

Contents

8 22

20 March 2010 Montgomery Business Journal

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

Randall L. George EXECUTIVE EDITOR

Tina McManama MANAGING EDITOR

Choose the �� best describes this item:

David Zaslawsky COPY EDITOR

Michelle Jones DESIGN

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Montgomery Business Journal March 2010

Copperwing Design PHOTOGRAPHY

Jamie Martin ON THE COVER:

Keivan Deravi, vice chancellor of academic affairs for Auburn Montgomery

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 is published monthly except for the combined issue of 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. Application to Mail at Periodicals Postage Rates is Pending at Montgomery, Alabama. 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.

Letter from the Publisher

SEASON OF CHANGE It is hard to believe that March is already here, and that the ﬁrst quarter of the new decade soon will be behind us. After what most of us would say has been the harshest economic climate in recent memory -- and a winter that seems to be the coldest and wettest – I, for one, am ready for spring. A season of renewal and rebirth, what better time than spring to focus on efforts to revitalize the capital city? And what better place to start than the thoroughfare that each day carries 70,000 vehicles and their passengers to diverse destinations? The I-65 corridor, as vital as it is to Montgomery and the surrounding region, offers little compelling reason for travelers to make a stop (or shop) along the way. The I-65 corridor should be an economic catalyst. For many, that roadway is the only impression of Montgomery they will ever have. It is part and parcel of our image for travelers, and, more importantly, the image we project to ourselves as residents. The I-65 corridor should be a gateway that reﬂects a shining capital city with a courageous past and a world of potential on the horizon. The City’s Gateway Park is a testament to what can be. In this issue of the Montgomery Business Journal, you’ll read about a new initiative to transform Fairview Avenue and the west side through the same type of master planning process that sparked the riverfront renaissance. The initiative will improve the quality of life for residents and kindle new economic opportunities. This project is indicative of the work underway by a partnership of elected and civic leaders committed to “building our place.”

It is important to note that more than 82 percent of all jobs in the River Region are located in Montgomery. Thus, the health of the entire region is married to the health of its urban core. That’s why renewal and rebirth of that core is essential – so that as a city, and as a region, we are optimally positioned to capitalize on opportunity when it knocks. Our job at the Chamber is to recruit that opportunity and bring it right up to the front porch. Analyzing economic opportunity is the job of Dr. Keivan Deravi, this month’s Q&A and MBJ “cover-guy.” Our winter of economic discontent will pass, Deravi says, and the coming spring thaw brings with it ﬁrst stability then aggressive recovery by 2012. As business people and community leaders, now is the time to sow the seeds that will bear fruit when the seasons change. If this issue sparks your interest in renewal, visit the Chamber’s Web site, www.montgomerychamber.com, to ﬁnd networking, training and engagement opportunities that might be just the thing your organization needs to turn over a new leaf. Best regards,

Randall L. George, PUBLISHER PRESIDENT, MONTGOMERY AREA CHAMBER OF COMMERCE

March 2010 Montgomery Business Journal

EXECUTIVE EDITOR’S COLUMN Before coming home to the Chamber, I spent most of my life as a media executive. The Montgomery Business Journal’s business model is very different than the ones I developed in the corporate world. Wild financial success for the MBJ would be to break even. That is why we are able to keep quality high, content relevant, and ad rates affordable. The MBJ’s mission is the same as the Chamber’s mission: Committed to exceptional service, the Montgomery Area Chamber of Commerce (MBJ) works to improve the economic well-being of the business community and enhance the quality of life of the area through the creation and preservation of jobs. The Montgomery Business Journal is a place Chamber Members can promote their “Business Buzz” and “Members on the Move.” From new members to member profiles and ribbon cuttings, the MBJ is for you and about you. It is the news and information you need, and the news and information you need to share. We fill it with information that keeps you ahead of the curve and armed with knowledge that you can use to grow your business. We fill the MBJ with insightful, in-depth stories, discussions with people who make things happen, and compelling photography. The Montgomery Business Journal is an affordable, effective vehicle for marketing your products and services to potential customers. CEOs, company presidents, elected officials, small business owners – professionals just like you receive the magazine each month at work. The 22 Chamber-Member organizations with ads in this month’s issue are reaching the movers and shakers and decision makers (oh my) who can make their companies successful. Are you? Take advantage of this member-only opportunity today. Ad space is limited each month. All the information you need to develop your MBJ print and online marketing plan is at www.montgomerychamber.com/ads. Take a look, and then call Robert Edmonds, MBJ Advertising Director, at 334-221-7948 or email him at mbjsales@montgomerychamber.com. Hope I see you somewhere in the MBJ pages next month!

Tina McManama, EXECUTIVE EDITOR VICE PRESIDENT, MARKETING AND COMMUNICATIONS MONTGOMERY AREA CHAMBER OF COMMERCE

Montgomery Business Journal March 2010

Calendar Montgomery Area Chamber of Commerce Events

MARCH

APRIL

CHAMBER 101 Sponsored by Heartsill Payroll Professionals 9 AM @ Montgomery Area Chamber of Commerce 41 Commerce Street, Montgomery

60 MINUTE COFFEE Sponsored by Alley Station 8 AM @ Alley Station 130 Commerce Street, Montgomery Free event, exclusively for Chamber Members

BUSINESS AFTER HOURS Sponsored by LogoBranders 5 PM @ LogoBranders 1161 Lagoon Business Loop, Montgomery, Free event, exclusively for Chamber Members

BUSINESS TAXATION WORKSHOP 3 PM & 6 PM @ Small Business Resource Center 600 S. Court St., Montgomery No registration necessary

14 28 29

ALABAMA UPDATE Sponsored by Wilson Price IT Noon @ RSA Activity Center 201 Dexter Avenue, Montgomery Registration: www.montgomerychamber.com/alupdate 60 MINUTE COFFEE Sponsored by Down the Street Café 8 AM @ Down the Street Café 2741 Zelda Road, Montgomery Free event, exclusively for Chamber Members LUNCHWORKS Sponsored by Aliant Bank Noon @ Small Business Resource Center 600 S. Court Street, Suite 460 Registration: www.montgomerychamber.com/lunchworks BUSINESS AFTER HOURS Sponsored by The Oaks Plantation 5 PM @ The Oaks Plantation 500 Avenue of the Oaks, Pike Road Free event, exclusively for Chamber Members

Convention Calendar compiled by the Montgomery Area Chamber of Commerce Convention and Visitor Bureau

MARCH 3 6-7

YMCA Collegiate Conference Pilot International Alabama District Convention

11-13

Alabama Grand Council Conclave

13-18

Alabama Rural Water Annual Convention

18-20

Alabama Master Gardener Association State Conference

29-30

Alabama Music Hall of Fame Alabama Education Retirees Association March 2010 Montgomery Business Journal

FINANCIAL FORECASTER Q&A WITH KEIVAN DERAVI Keivan Deravi is interim vice chancellor of academic affairs for Auburn University’s Montgomery campus and a longtime economics professor. He was recently interviewed by Montgomery Business Journal Managing Editor David Zaslawsky. Montgomery Business Journal: You have conducted numerous economic impact reports. What were some of those?

Keivan Deravi, interim vice chairman of academic affairs for Auburn Montgomery, expects a full-blown recovery by 2012.

Deravi: Almost all of the mega-projects that came to the state of Alabama such as the Mercedes expansion site, Honda, Hyundai, Northrop-Grumman/EADS tanker project, which is still under review, Birmingham-Jefferson Convention Complex, The Shoppes at EastChase. These are just a few that come to mind. Many of the projects have been for the state to evaluate what are the beneﬁts so the state can come up with an incentive package. MBJ: Is that area – economic impact studies – your area of expertise? Deravi: My expertise evolved from my economist training and education. My economic impact (study) is a side aspect of our profession – it’s a side aspect that not many people subscribe to or look into. It requires a lot of reading and lot of experience to be able to pick up that component of this research. My formal training when I was in grad school was econometrics, which means a combination of economics and statistics. I was hired when I was out of Oklahoma State in 1982 or 1983 to assist the university with the development of a forecasting economic model. I (helped) build this model of Oklahoma bit-by-bit, piece-by-piece, sector-by-sector. Back then we had to actually write all the equations and make sure everything worked – everything was manual-oriented. That was when I learned all the tricks of building a model and the logic of building a model. It’s something to know how to drive a car, but it’s another thing to actually drive a car. Many

Montgomery Business Journal March 2010

economists know what an economic impact is, but many of them do not know how to do it. I was fortunate enough a hundred years ago when I was in grad school that those skills came pretty easy to me. I was able to take a very complicated theory and put it in a mathematical sense so it would make sense to me and everybody else. I was able to develop that skill to get into “what-if” scenarios – “what if a development is built” or “what if a policy changed” or “what if a new law is passed.” In a sense you write a series of equations to map out an economic motion process. For example, if we look at the gaming industry, all of those are just equations, capture the motions and then we trigger those equations to see what the motion would be if something is changed. MBJ: You conducted an economic impact study for the Hyundai manufacturing facility in Montgomery. Do you ever look back and see how accurate your economic impact study was? Deravi: The parameters that we had at the time were about 2,500 workers maximum at the plant; somewhere close to 20 suppliers and no more than 2,000 supplier employees. We were working with a $400 million to $500 million investment on the ground. Based on those equations, we came up with something close to 6,000 jobs statewide. Those numbers turned out to be conservative. The initial direct impact of the operation was much bigger than what was estimated at the time. I believe we ended up with 30 to 40 suppliers and somewhere close to 4,000 supplier employees. There was also an addition to the plant – an engine facility. MBJ: I think the total Hyundai investment is around $1.4 billion and there were more than 3,300 employees at one point. Deravi: Based on that information we had at the time, the forecast was pretty accurate – the same goes with Honda and Mercedes.

Initially, my task with the state was to come up with an estimate of the impact on the economy so the state can devise an incentive package. All of them have paid off handsomely for the state. My job was to protect the interests of the state. MBJ: The Hyundai plant became an even better investment for the state as the company grew and so did the supplier base. That impact grew more with Kia building a $1 billion manufacturing facility just over the Alabama state line in West Point, Ga. Hyundai is supplying engines to Kia and other River Region suppliers to Hyundai expanded to also supply Kia. Without Hyundai being here with its supplier base, the sister company Kia may not have come to the AlabamaGeorgia border. So the state of Alabama got a much bigger bang for its bucks. Deravi: Absolutely. It was a fantastic deal for the city of Montgomery and the state. MBJ: Because of the growth of Hyundai and its supplier base and Kia’s location, won’t the state of Alabama recoup its initial investment over a much shorter period of time? Deravi: I thought the state could recoup its investment in less than 20 years. With the additions that have been built, I’m convinced that time will be cut in half. MBJ: You’re saying the state will recoup its investment in another three or four years. Deravi: Yes, by 2015 at the very max. MBJ: In the governor’s State of the State address, he proposed a $1,500 tax credit for businesses that hire an unemployed worker. It has to be a full-time job, paying at least $10.55 an hour. Gov. Bob Riley also proposed a $500 tax credit a year for three years for businesses that create a job in the 25 counties with the highest unemployment. The governor said that you estimated the proposals could add 6,000 jobs. Please elaborate and how much would it cost the state for those 6,000 jobs? Deravi: You can do the math. If the state gives a $1,500 tax credit for every job than 6,000 jobs would be near $90 million. The $1,500 tax credit is for the jobs that make more than $30,000 to $35,000 a year. I’ve established an historic formula based on data: how much they pay in sales tax, how much they pay in income tax, how much they pay in property tax. What is the probability that someone making $35,000 buys a home? What would be the utility taxes and

everything else associated with that? I have established all of those links so someone can come to me and create 50 jobs and I know exactly how much taxes someone will pay. MBJ: Is $90 million the breakeven point for the state? Deravi: No, the benefit to the state could exceed $90 million or lower than that. There are two important things to remember (about the proposal): One is the tangible economic impact, which is the dollars and cents people make; and another one is the intangible economic impact that you employ people, give them self confidence and help bring the economy back. MBJ: You’ve said that it may be 2012 “when we see the full-blown recovery in place.” What will it look like? Deravi: I think 2012 will probably look like 2007. Right now we are in economically where we were in 2004. I’ve said all along this recession was a reset – the reset button was pushed. A lot of economic theories and economic relationships that we knew and the way that we were knowing it had to be rediscovered. Home ownership – how many people can own their homes had to be recalculated. Whether you can put 5 percent down and buy a house had to be recalculated. What a state can do for its citizens had to be recalculated in terms of Medicaid and retirement. What businesses can offer in terms of health care had to be recalculated. What businesses can do for job creation had to be recalculated. There are so many elements in place that basically were changed. When the capital market collapsed, capitalism collapsed for a period of two weeks. Everyone had to sit down and see if they could take the same risks. The example that I give to my classroom is: Oxygen did not get to the patient’s brain; the patient went into a coma; we have to get out of the coma; have to go to rehab and learn how to walk and learn how to talk. MBJ: What does the fullblown recovery look like? Deravi: It is 6 percent unemployment rate; 3 percent growth in GDP; inflation under control; deficit 4 percent of GDP at the federal level; and we don’t need any federal government help to create jobs and to keep the banks together. What the recession has done – what the reset has done – is set us back four years.

MBJ: Isn’t Montgomery well positioned to fully rebound during the eventual economic recovery? Deravi: No matter when the recession or reset is over and the full recovery is in place in either 2011 or 2012, Montgomery will be in a much stronger position. We are making the hard investments: Downtown is being built; education system is being looked at; and the airport has improved a lot. It has been recognized that we have to do business differently and we are being conscious about footing the bill for some of the costs. No matter what happens, Montgomery will go forward with being a better and better place. Montgomery is the heart and soul of Central Alabama and as Alabama gets better, Montgomery gets better, too. The single-most important thing we have to do is remove any doubt – any question that remains – in regards to the effectiveness of our educational system and our labor force preparation. We are beginning to see that there is no way that business and education can be separated. The business community and the education community have a vested interest that intertwines. The better the educational system is the more prosperous the business community will be and the more secure the residents will be. MBJ: During an economic conference earlier this year, experts were pointing toward 2011 when the economy recovery heats up. What’s your opinion? Deravi: This year will be a lot better than 2009 – there’s no question. If nothing out of the ordinary happens, 2011 will be better than 2010. It really doesn’t take a ﬁnancial genius to say 2011 will be better than 2010 and 2009. MBJ: Those experts are saying the recovery will take off in 2011. Deravi: What does it require for us to have an economic recovery? Three things have to happen and when these three things happen time-wise then we have the economic recovery. One, banks have to be stabilized – banks have to start acting like a bank. Banks have to assume some risks and start making loans and not be afraid of the balance sheets. Are we there yet? No. It’s going to take a long time before they shake the fear. The second thing that has to happen for an economic recovery is the housing market has to stabilize. Is the housing market stabilized? CONTINUED ON PAGE 10

March 2010 Montgomery Business Journal

CONTINUED FROM PAGE 9

No, it’s not. The housing market is being kept together by a massive infusion of capital from the federal government. Right now there is a lot of activity going on because of the ﬁrst-time homebuyer tax credit of $8,000. Take it away and you’ll see what happens. A lot of people are speeding up their decisions in fear of that tax credit going way. About 80 percent of all the mortgage securitization is by the Federal Reserve system and not the private sector. Freddie Mac and Fannie

we sell, we recover the revenue and pay the bank back. Everything starts from the bank. If the banks are not willing to take a chance – to take a risk – and issue loans and issue lines of credit, then the corporation will not have access to the money needed to run their operation. The businesses, in my opinion, are trying to ﬁnd a new way of doing business. A new way of doing business is to bring down the larger share of variable costs, which is personnel. They have to keep it down until they can make sure they have access to credit when they need it. Everyone is bringing their payroll down, but

No matter what happens, Montgomery will go forward with being a better and better place. Mae are out of business. The Fed has nationalized them. The Fed is acting on their behalf. Once the Fed stops, no one knows what the outcome will be. The third thing that needs to happen for the recovery is jobs have to be created. As I’m sitting in front of you, there are no jobs being created. We had a temporary two months of job losses to be minimized and a small number of jobs created in November. However, January unemployment compensation has gone up. The job market is nowhere near being settled and that’s expected. What is not expected is the long time that it may take for corporations to start hiring. MBJ: Some experts have said that corporations may have been overly aggressive with layoffs and that will force them to start hiring sooner than later. What did you think? Deravi: Yes, but before they can hire they have to have access to bank credit. The way businesses run in the U.S. is very simple: We borrow from the bank, we pay, we produce,

Montgomery Business Journal March 2010

Jefferson Davis’ ﬁrst residence was here… can be cultivated. We are fantastically located three hours from the beach; (about two hours) from Birmingham and Atlanta; and 45 minutes from Auburn. For so long we didn’t have a convention center and not enough hotels. Now, that problem has gone away. For so long, we didn’t have downtown and now we have The Alley, which is a fantastic idea. MBJ: Because of the Renaissance Montgomery Hotel & Spa at the Convention Center, the city can compete for larger conventions. It has opened some doors. Deravi: But the city needs to do more. For the conventions you need a downtown entertainment district. You need taxi service. You can’t just build a hotel and that’s it. The development around the Renaissance is great – that’s a fantastic beginning. MBJ: Do you see the retail sector continuing to grow in East Montgomery?

not because they are mean or they want to – they have to. The largest, single expenditure component of a corporation is payroll.

Deravi: I see no other choice but the retail developments to continue in the east. There still is a long way to go before we run out of land. We certainly can go all the way to the Macon County line. There’s a huge amount of development in the east – that’s where the momentum is. Chantilly Parkway will become the new Taylor Road and we will go further out to the east. East is going to be where the growth is and beside, all the income is on the eastside.

MBJ: As a local economist, what do you see this year for the River Region?

MBJ: What about growth in West Montgomery?

Deravi: The ﬁrst thing is the end of misery; the end of economic contraction; and the end of the recession. I do not, however, see a tremendous growth.

Deravi: West Montgomery is very, very important to the entire development of city simply because a large number of Montgomery citizens are living there. But we need to revitalize the whole area – we have to give it a new direction. We have to have different incentive structures so businesses will locate there. We have to have an investment pool of money. We have to have low-interest rate mortgages for folks that will choose to develop the area. What you’re facing on the west side is nothing unique to Montgomery – people will leave decaying neighborhoods and what’s left behind are businesses that cannot function, housing that loses its value and schools that are not up to par. The decaying didn’t take place over one year or over a decade and the rebuilding will not be completed over one year or a decade. You have to build infrastructure and a reason for people to move to the west side. •

MBJ: With all the development downtown and the riverfront, can that spur the hospitality and tourism industry? Deravi: Absolutely. That is our unpolished jewel. We have a tremendous story to tell. We have a tremendous message to give, but for whatever reason we haven’t done that. The Civil Rights Movement and the Civil War are two episodes that are the centerfold of activities that we can do. We can bring a lot of people here to retrace the Civil Rights Movement – just see how successful the Rosa Parks Museum has been or how much publicity the Southern Poverty Law Center has received. The fact that Montgomery was the ﬁrst capital of the Confederacy or the fact that

Hyundai Unveils Prices for 2011 Sonata from wire services

FOUNTAIN VALLEY, Calif. - Hyundai Motor America has announced prices for the 2011 Sonata. The completely redesigned 2011 Sonata features a starting price of $19,195 for the well-equipped GLS model. The 200-horsepower SE model starts at $22,595 and the top-of-the-line Limited model is available for $25,295. “With the 2011 Sonata, our focus was a no-compromise engineering approach that would allow Sonata owners to have their cake and eat it, too,” John Krafcik, president and chief executive ofﬁcer of Hyundai Motor America, said in a statement. “That focus led to a set of attributes that have not been seen in the midsize car category – attributes such as 35 mpg and 200 horsepower, bold design and an EPA Large Car interior, world-class quality and a class-leading value position. “At Hyundai, we’re big fans of resetting conventional wisdom, and we think we may have done it here with the 2011 Sonata.”

The following are the manufacturer suggested retail price for the 2011 Sonata models:

rating thanks to a new 2.4-liter gasoline direct injection four-cylinder engine.

> GLS with manual transmission: $19,195

In addition to standard XM Satellite radio, the 2011 Sonata features segment-ﬁrst standard Bluetooth hands-free phone system, available HD Radio Technology with multicasting (allowing the broadcast of alternative side-band content on HD stations).

> GLS with automatic transmission: $20,195 > GLS with popular equipment package, automatic transmission: $20,945 > GLS with popular equipment package and navigation system, automatic transmission: $22,645 > SE with automatic transmission: $22,595 > SE with navigation and sunroof package, automatic transmission: $25,195 > Limited with automatic transmission: $25,295 > Limited with navigation package, automatic transmission: $27,395 A freight charge of $720 is not included in manufacturer suggested retail price. The 2011 Sonata boasts a best-inclass 35 mpg highway fuel economy

The Sonata is the ﬁrst vehicle in its segment with advanced touch-screen navigation available on all trim levels. At $22,645, the Sonata GLS with the popular equipment package plus the navigation system is the lowest priced midsize sedan with navigation. The 2011 Sonata standard safety features include front driver and passenger airbags, front seat side impact and curtain airbags, electronic stability control, traction control system, antilock braking system with electronic brake-force distribution, front active head restraints and tire pressure monitoring system.

March 2010 Montgomery Business Journal

Investor ProďŹ le

MAKING

Steve Cawood, president of Goodwyn, Mills and Cawood

THEIR MARK Goodwyn, Mills and Cawood projects showcased throughout the city by David Zaslawsky

Montgomery Business Journal March 2010

Steve Cawood, president of Goodwyn, Mills and Cawood, said his ﬁrm’s design fees are so much greater than others because of all the services it offers. He said some of the others are purely architectural ﬁrms.

It’s easy to see the footprint of Goodwyn, Mills and Cawood in the River Region. The Southern Poverty Law Center – designed by Goodwyn, Mills and Cawood. The Renaissance Montgomery Hotel & Spa at the Convention Center – designed by Goodwyn, Mills and Cawood. The former corporate headquarters for Colonial Bank – designed by Goodwyn, Mills and Cawood. RSA Activity Center and Plaza – designed by Goodwyn, Mills and Cawood. The Lakeview Center at EastChase – designed by Goodwyn, Mills and Cawood. Get the picture? Goodwyn, Mills and Cawood has played key roles in many of the area’s significant structures or residential developments. The firm was involved in Sturbridge Plantation, The Waters, Taylor Lakes, Deer Creek, New Park, Hyundai Motor Manufacturing Alabama, Blount Cultural Park, Gateway Park, Montgomery Zoo’s elephant exhibit and the list goes on and on. The Montgomery-based firm offers the following services: architecture, land surveying, civil engineering, airport planning, right of way, municipal engineering, landscape architecture, environmental engineering, geotechnical engineering, electrical engineering, transportation engineering and community and master planning. “We’re a multi-disciplined firm,” said Andrea Jean, marketing director. “It’s a one-stop shop for all your design needs.” That is why Goodwyn, Mills and Cawood sits atop the 2008 rankings for the top architectural firms in the state, according to Business Alabama magazine. Actually, Goodwyn, Mills and Cawood is comfortably ranked No. 1 with $41.5 million in design fees for 2008. The next five ranked firms have combined design fees of $43.8 million and the No. 2 firm had design fees of $11.5 million.

“We are diverse, service-oriented to the clients, entrepreneurial, aggressive, transparent – we run the business very openly,” Cawood said. “We try to put ourselves in our clients’ shoes, we try to help them and be a partner with them in planning their future. “We do very little sitting down and advising them what we think and what they need to do. We listen a lot before we speak. We like to understand what their needs are and what their desires are. That’s probably what separates us from a lot of our competition – we listen well.” Goodwyn, Mills and Cawood has been active in economic development, which “is a big interest that we have,” Cawood said. The company has been involved in recruiting companies to the River Region, including Hyundai. Behind the scenes, the ﬁrm is helping to bring Teach for America to Alabama. Teach for America recruits recent college graduates from all backgrounds and studies to teach two years in urban and rural public schools. “Essentially, you are getting the best and brightest coming out of colleges,” Jean said. “The Black Belt is obviously in need. Eventually, Teach for Alabama will be all over Alabama.” Cawood pointed out that the program is very competitive and that about 4 percent of the college graduates who apply are selected.

NUMBER OF EMPLOYEES

290

DESIGN FEES FOR 2008

$41.5 MILLION*

ESTIMATED DESIGN FEES FOR 2009

$39 MILLION OFFICES

10, INCLUDING FLORIDA, TENNESSEE AND SOUTH CAROLINA *Source: Business Alabama magazine

“Being a good corporate citizen means providing a good environment for your workers; for your staff; for your partners,” Cawood said. “It means giving back to the community and the communities where you work. It’s creating a good environment for opportunities to grow in a wholesome and ethical manner.” Goodwyn, Mills and Cawood started an employee arts committee last year and devised the Can-Structure art competition between local high schools. The ﬁrm’s architects worked with high school teams in creating art from canned goods. The winning high school team from Montgomery Catholic Preparatory School created a giant soup can with 800-plus cans of food.

The ﬁrm also plays a signiﬁcant role in area charities and organizations. “We have been very supportive of the Montgomery Area Business Committee for the Arts,” Cawood said, “and we contributed to the Montgomery Riverfront Development Foundation.”

After the creations were displayed, all the canned food was donated to the Montgomery Area Food Bank. More than 4,000 cans of food – about 3,000 pounds worth of food – was donated to the food bank.

Employees participate in the Hogs & Hens Cook-Off, which beneﬁts Family Promise of Montgomery, and the ﬁrm helps sponsor fundraising walks and runs.

“This allowed our employees the occasion to co-mingle with charitable giving, using the arts as a catalyst,” Bill Wallace, executive vice president and director of architecture at the ﬁrm, said in a press release. “It also provided an opportunity to work closely with the local education community to foster an appreciation of the arts along with assisting a tremendous institution like the Montgomery Area Food Bank.” •

March 2010 Montgomery Business Journal

Member ProďŹ le

The Walter L. Bush Sr. family: W.L. Bush III, W.L. Bush Jr., Sangernita Gilbert Bush, and Walter L. Bush Sr.

Building on the Dream Black architect encourages minorities to join the profession by Tom Ensey

When Walter L. Bush Sr. went to architecture school at Auburn in the mid-to-late 1970s, he said there were about 900 to 1,000 black architects in the entire United States.

Montgomery Business Journal March 2010

Things haven’t changed much. Today, there are no more than 1,300, he said. He doesn’t have a ready answer as to why so few blacks pursue architecture. “I was the second black graduate of the Auburn architecture school,” he said. “That’s not something I am proud of. There should have been more. There should be more black architects now.” Few architects anywhere showed the sheer grit and will it took for him to realize his dream and own his own business – where most of his family work alongside him. His son is a designer, his grandson is a student of architecture at Tuskegee University and his wife – she sits out front and answers the phone as a receptionist. But ask her husband or sons who really runs the place and they’ll quickly tell you it’s Mrs. Bush. She’s the organizer, the one who keeps things on track. Some of the firm’s more notable recent projects are Bellingrath chool and Riverwalk Stadium, where the Biscuits play baseball. Add to that churches, restaurants, shopping centers, multi-family housing and more. W.L. Jr. and W.L. III and Bush Sr.’s wife, Sangernita Gilbert Bush, run their business from a small office nestled into a residential neighborhood on Rosa Parks Avenue. Sangernita Bush is a former educator who helped put her husband through architecture school by working, cutting corners, saving every nickel every way she could. They had two children in private school – St. Jude – and she said they made the plan work “by being thrifty. We paid off all our bills. We lived on my salary, which was about $700 a month back then.” Bush commuted from Montgomery to Auburn and had a work-study job at the university that helped make ends meet. “We planned all of that before we started,” he said. And he agreed that working up detailed plans and sticking to them are necessary elements of the architecture profession. It’s almost unthinkable to anybody familiar with the rigors of architecture school to believe anybody could manage to work his way through architecture school in four years. “I started in 1974 and finished in 1977,” he said. It’s one of the most difficult, time-consuming disciplines a student can undertake. Wouldbe architects work around the clock. “The lights are never off at the architecture school,” Bush said, echoing what any student who took architecture at Auburn will tell you. It’s nothing unusual to see a student catching a quick nap in a corner or a dark room before continuing a project. Working hard and staying focused has always been a big part of Bush’s personality. He was one of the smartest, most talented kids at Carver High School when TV station WSFA asked the principal to send them a talented senior to help design backgrounds for local programs, national and local commercials and weather maps in the days before computers. Though Bush was only a junior, the principal wrote back and said, “This is your guy.” Bush was always a talented artist, but he credits his wife with teaching him the mathematics he had to have to complete his degree.

MAJOR PROJECTS

FIRST RESTORATION OF DEXTER AVENUE KING MEMORIAL BAPTIST CHURCH associated with architect Henderson L. Walker, Washington, D.C.

RIVERWALK STADIUM IN ASSOCIATION with architect w/HOK Sports Venue, Kansas City, MO

THE NEW MEDICAL PLACE THE COMMUNITY VILLAGE PART 2 KNIGHT’S PLAZA RESTORATION OF THE HISTORIC HACKSON COMMUNITY HOUSE GOODSHIP MISSIONARY BAPTIST CHURCH (MILLBROOK) BELLINGRATH MIDDLE SCHOOL with Major Holland Architect “She taught me that.” They’ve been married 52 years. He went on to graduate from Alabama State as a teacher with a major in art. He taught in the public school systems of Huntsville and Montgomery. He also worked as an architectural designer, which led to the life decision to pursue a professional degree from Auburn in architecture – he was about 30 years old. That maturity, along with the help and support of his wife and family helped him become the first black registered practicing architect in Montgomery. He does his part to introduce blacks into his field. He brings in talented students and gives them jobs to see if they have the right stuff for the rigorous profession. He encourages them to pursue mathematics and science in high school and college – it’s unlikely they will have a spouse who can teach higher mathematics. After Bush graduated and went to work, he returned the favor to his wife by supporting her pursuit of two master’s degrees from Troy University. She taught at several local schools and even opened her own private school in the building where their architecture offices are now located. Both are heavily involved in historic preservation on the national, state and local levels. They work pro-bono. Montgomery is their home. They want to see it preserved. They have an emotional reason for it that a person of another race might not understand. When W.L. Bush looks at the historic buildings in his city, he sees things differently from a white person. “I look at these buildings and I think, ‘Blacks built this,” he said. “The handiwork, the artisanship, the construction. We owe it to them to preserve it.” •

“Sines and cosines and all that stuff,” he said, grinning. “He pointed across the table at his wife. March 2010 Montgomery Business Journal

Taking the Bulge from the Budget Saving Jobs Mayor Todd Strange works to shape up city’s ﬁnances by David Zaslawsky

Montgomery Mayor Todd Strange has been busy putting the city’s ﬁnancial affairs in order. He took ofﬁce a year ago and immediately had to cut $8 million from the city budget and simultaneously faced declining revenue because of the recession.

Montgomery Mayor Todd Strange

“Through (the budgeting process) we were able to identify every function of government – the cost and people associated with that and see how we can do it better, more efficiently and with less people and less expense,” Strange told a gathering of business leaders and elected officials at the RSA Activity Center. He said some personnel cuts were made through attrition and some through privatization. “Today, we have about 125 less employees than we did at this time last year,” Strange said. The mayor reorganized the city leadership staff, streamlining the process from 28 direct reports to 10 Cabinet members. He said he gave his Cabinet members the task of “looking critically at what we can outsource; what we can privatize and what we can do without. And let’s look at it to see if perhaps there is a $2 million, $3 million, $4 million or $5 million savings,” Strange said. The mayor was happy to report that the city cut close to $3 million and revenues were $500,000 to $1 million more than budgeted. He estimated that the city could have a $6 million to $7 million surplus, “which is about half of where we would like to be,” Strange said. Some of the cost savings came from encouraging the city’s 2,800 employees and their dependents to use one of two clinics, where patients don’t have to pay a deductible or a co-pay. Strange said if the first-quarter trend continues, the city will save $1.5 million. The city is also helping to generate revenue with the following:

Montgomery Business Journal March 2010

> Creation of the Central Alabama Sports Commission, which will lead the effort to bring youth, recreational, collegiate and professional events to the River Region. > Hiring part-time retail specialist Ken Reynolds, who is recruiting businesses. > Hiring a part-time person to help in the collection of city, county and state business licenses and having ofﬁcials make sure those businesses are paying their taxes. “Every day we wake up we work with the chamber on jobs,” Strange said, referring to the Montgomery Area Chamber of Commerce. “We have unprecedented numbers of people coming in that we are working with every day to locate in Montgomery, Ala. Some (of those companies) are 25 employees; some are 75 and a few of them are 500 to 700. “We are being aggressive. We’ve been working with the state and working with the economic development folks to put incentive packages together that are investments. When you can put in $1 and get a $10 return in three years – that’s an investment you need to make and we’re doing that as we speak.” The mayor said the old Montgomery Mall will eventually have some government service located there as well as some educational element. “Once you get that cadre of people there, then there’s going to be some retailers coming around,” he said. Strange said that development will continue on Bell Street, Dexter Avenue and West Montgomery. “Montgomery has historically been a place where people come to dream and to have those dreams become reality,” Strange said. “The City of Montgomery has a vision statement that goes something like this: ‘We want to sustain a vibrant, growing and safe Montgomery in its entirety that we’re all proud to call home.’ ”

March 2010 Montgomery Business Journal

Local GovernmentSaving UpdateJobs

Montgomery County trims expenses and preserves positions by David Zaslawsky

For the private and public sector alike, layoffs and furloughs are common in these tough economic times.

> The county could save a half-million dollars annually by encouraging employees to use a health clinic.

But Montgomery County Commission Chairman Elton N. Dean didn’t want to do that to the county’s 913 employees, despite budget cuts.

> The county partnered with the city of Montgomery on the Family Justice Center. It partnered with the Hampstead development to open a new library.

“We gave a mandate to the administration that we do not want to lay off anybody and I’m proud to say as I stand here this morning, we did not lay off anybody,” Dean told a group of local ofﬁcials and business leaders at the RSA Activity Center.

> The county, city of Montgomery and the Montgomery Area Chamber of Commerce constantly pursue economic development opportunities. Various projects in the works involve a combined 8,000 jobs, Dean said.

Commission members met with department heads at the beginning of the year and told them “we need you to curb your spending, and they did exactly what we asked them to do,” Dean said.

Montgomery Business Journal March 2010

Montgomery County Commission Chairman Elton N. Dean

After $2.2 million in cuts, the county has a $98 million budget. And although the county cut agency funding by 25 percent, Dean said if tax collections increase, full funding will return. In these tough times, the county has used “innovative approaches” to save money:

“Economic development means jobs and that’s our No. 1 priority – provide jobs to our citizens,” Dean said. “Our goal is making Montgomery the best place to live in the state and the best place to live in the country. We want to be No. 1.” •

March 2010 Montgomery Business Journal

Event Spotlight

1 7 137

ANNUAL MEETING

More than 800 people attended the Chamber’s 137th Annual Meeting, held January 11 at the Renaissance Montgomery Hotel & Spa at the Convention Center. The event featured a dynamic guest speaker, awards and presentations and the passing of the gavel as new leadership took the helm for 2010.

In his remarks, keynote speaker and renowned Charleston, S.C., Mayor Joseph P. Riley said the city of Montgomery had all the potential necessary for becoming one of the most livable cities in the nation.

“Mayor Riley’s example showed us that with vision, leadership, partnership and commitment, we too could become one of America’s great cities,” said W. Daniel Hughes, 2009 Chamber Chairman. Several awards and recognitions were given out, including the Chairman’s Award, given to OIC founder Connie Harper; the Point of Light Award, given to Burnett Civil Contracting; Recognition of Alabama’s Teacher of the Year, Yung Bui-Kincer; Chamber Ambassador of the Year, Katrina Erby; and Total Resource Campaign Top Producer Carol Gunter.

8 1)The meeting was held at the Renaissance Montgomery Hotel & Spa at the Convention Center. 2) Charleston, S.C., Mayor Joseph Riley gives the keynote address. 3) Carol Gunter was the Total Resource Campaign Top Producer. 4) 2009 Point of Light Award winner Owen Burnett of Burnett Civil Contracting. 5) Yung Bui-Kincer receives recognition as the 2009 Teacher of the Year. 6) The reception followed in the Renaissance ballroom. 7) Emerge Montgomery members Carolyn Kinney, Julia Ventress and Taylor Williams attend the reception. 8) The BTW Magnet High School Jazz Ensemble performed at the reception following the meeting. 9) Connie Harper, awarded the Chairman’s Award, receives ﬂowers from a graduate of her Early Childhood Development Center. 10) 2009 Chamber Chairman W. Daniel Hughes Jr. passes the gavel to 2010 Chairman Nimrod T. Frazer Jr.

The meeting concluded with a passing of the gavel from Hughes to 2010 Chairman Nim Frazer. - Michelle Jones

10 20

Montgomery Business Journal March 2010

March 2010 Montgomery Business Journal

7 7 3

ANNUAL MEETING

8 1)The meeting was held at the Renaissance Montgomery Hotel & Spa at the Convention Center. 2) Charleston, S.C., Mayor Joseph Riley gives the keynote address. 3) Carol Gunter was the Total Resource Campaign Top Producer. 4) 2009 Point of Light Award winner Owen Burnett of Burnett Civil Contracting. 5) Yung Bui-Kincer receives recognition as the 2009 Teacher of the Year. 6) The reception followed in the Renaissance ballroom. 7) Emerge Montgomery members Carolyn Kinney, Julia Ventress and Taylor Williams attend the reception. 8) The BTW Magnet High School Jazz Ensemble performed at the reception following the meeting. 9) Connie Harper, awarded the Chairmanâ&#x20AC;&#x2122;s Award, receives ďŹ&#x201A;owers from a graduate of her Early Childhood Development Center. 10) 2009 Chamber Chairman W. Daniel Hughes Jr. passes the gavel to 2010 Chairman Nimrod T. Frazer Jr.

10 March 2010 Montgomery Business Journal

Lending a Helping Hand Connie Harper’s organization steers at-risk youths to the right path by David Zaslawsky

During a guided tour of the Central Alabama Opportunities Industrialization Center Inc. (OIC), two of the center’s instructors were having a serious discussion with a young man as his father stood by. The center’s president and CEO, Connie Harper, stopped to intervene, telling the young man to stop slouching. “Stand up straight – you’ve got good limbs. Let’s stand up!” The boy did as he was told, never lifting his gaze above the ﬂoor. “How are you doing?” Harper asked, and then ordered him to look at her. “Give me some eye contact,” she demanded. Harper was apologetic about the interruption, but made no bones about her belief that the

Montgomery Business Journal March 2010

young man was a bright and natural leader – and she was not about to give up on him. Maybe that’s why Harper was chosen to receive the 2009 Chairman’s Award at the Montgomery Chamber of Commerce’s 137 Annual Meeting. Standing before an audience of 800 Chamber members, elected ofﬁcials and dignitaries, past Chamber Chairman Daniel Hughes handed her the award. Harper was shocked to say the least, and she did not know what to say. “My husband was just so happy,” Harper recalled. “He said, ‘it was the ﬁrst time my wife’s mouth was closed.’” The Montgomery community should be thankful she doesn’t remain silent. One of 10 children herself, Harper can’t help but see the potential in every child.

“I think we’re going to save him” she said. “I told him you are going to get your act together. We are not going to let you loose. We are going to be on you like a pit bull – you are not going to get away.” The mission of OIC, which celebrated its 40th anniversary in 2008, provides job training, job placement and other services to youths up to age 21 who are unemployed, underemployed, unskilled or semi-skilled. The organization also helps youths who dropped out of high school or were expelled to pass the general educational degree (GED) test. That’s what Connie Harper is all about – saving at-risk youths. “We’re getting them into college and we’re getting them into the military,” Harper said.

Tiffany DuBose, executive assistant and education coordinator for OIC, said youths age 16-21 can receive help through the center for up to one year. Staff members routinely assess a youth’s living conditions, sussing out the challenges in their households. The youths also are required to dress properly or they are not allowed in the front door – that means ties for the young men, and no baggy pants. Unfortunately, much of OIC’s time is spent solving problems the youths face outside the classroom. Harper recalled one student who had just one request: lunch. “That is so important to them because they don’t even have food to eat at home,” Harper said. And speaking of homes, add that to OIC’s mission, as well. The organization has helped build more than 180 homes, which sell for about $95,000. Potential homeowners often are living with their children in shacks or public housing. “I believe that when you have ownership, you have value and you have pride,” Harper said.

Connie Harper

The organization ﬁrst received funding from then-Alabama Gov. George Wallace, and has helped more than 20,000 people. Before the state funding, Harper said Wallace personally gave her two $20 bills. It was the ﬁrst donation she received, and OIC has come a long way since then. During a tour of her facility, Harper calls the Early Childhood Development Center “the heart” of OIC. The organization has

about 40 children from ages 2 to 5 and is seeking approval to add 18-month-olds. Some graduates of the early childhood program have become honor students in Montgomery Public Schools. Harper has received numerous awards and recognition for helping others help themselves. Some of those successful graduates were on hand when she received the Chairman’s Award. “I was speechless,” Harper recalled. •

March 2010 Montgomery Business Journal

A NEW

DAWN IN THE WEST Public, private sector join forces to revitalize West Montgomery by David Zaslawsky

Montgomery Business Journal March 2010

If you ask Montgomery Mayor Todd Strange how long the West Montgomery Initiative will take, you get a quick, simple, one-word answer: “Forever.” Ask the mayor how much the West Montgomery Initiative will cost and once again you get that simple, straightforward response: “Millions.” How many millions? Strange explained that properties will be bought and sold and that money will constantly be reinvested in the West Montgomery Initiative.

And speaking of paying for the projects, Strange insists that “none of this is General Fund money.” He said that funding is coming from a variety of sources, including either directly or indirectly from the federal government and the private sector.

“You can’t really put a dollar ﬁgure on it yet because it’s too early in the process,” Strange said. “You may turn the same $1 million over three or four times.”

“What we are doing differently is trying to focus all the resources in speciﬁc areas so that we could do a riﬂe approach to redevelopment and then it creeps to the next area; and it creeps to the next area,” Strange said. “Rather than trying to seed an island, we are trying to put a seed any place where it can grow out.”

Whatever the numbers are, they are big. Government, private sector, neighborhood groups and organizations are all working together – and working on the same page – to revitalize West Montgomery.

The area of focus is generally near the Interstate 65 and Interstate 85 interchange, going south to West Fairview Avenue. The boundaries are, on the west, generally Interstate 65, and on the east, Court Street.

“There is a divide between east and west,” Strange said about regions in the city. “When you’re spending money in West Montgomery you’re not just improving West Montgomery – you’re improving Montgomery because one of the most used accesses to Cloverdale and Huntingdon (College) is West Fairview Avenue. “When you have an eyesore – if you will – and you don’t solve that eyesore, then the whole city is in danger.” The West Montgomery Initiative is a collection of two dozen or so projects “designed to foster an improved residential and commercial development area in a distressed part of Montgomery,” said Montgomery Deputy Mayor Jeff Downes, who is also the mayor’s chief of staff. “We have all these divergent projects going on from Shot Spotter to the Genetta Stream to the facades to the utilities,” Strange said. “We try to put them all into one strategy – one strategy that has a lot of moving parts. But every moving part has the project; has the responsible party; has the timeline; has the action items; and how you’re going to pay for it.”

The city is using federal dollars to create Lanier Place, which will eventually have 67 homes on a 10-plus acre site and a one-acre public use area near the intersection of E.D. Nixon Avenue and West Fairview Avenue. The ﬁrst phase will feature 13 homes. Most of the homes will have three bedrooms and two baths, ranging in square feet from 1,200 to 1,600, according to Downes. About $500,000 will be spent on site development. “Lanier Place is our effort to reestablish the housing market,” Downes said. “We have to reestablish what a comparable purchase of a home should be for ﬁnancing purposes. We have to establish this market. “If you look at the area during the last 12 months, there were 17 building permits for renovation or new construction, which shows very little or any activity in this one-square mile area. We wanted to change that.” Jeff Downes, Deputy Mayor of Montgomery.

“It’s a dense residential area that is marked quite heavily by rental homes,” Downes said. “It is an area that has a section of the Civil Rights Trail. It has a rather robust yet distressed-looking commercial district along West Fairview and has been marked in the past with some issues regarding crime.” Downes said that the West Montgomery Initiative tackles several issues: crime, increasing the number of owner-occupied houses and improving the business district. The city created projects that could show immediate results as well as mid-term and long-term projects. “We didn’t want it to be a ﬂash in the pan, but we also didn’t want it to be so heavily planned out that we showed no action,” Downes said. “We mixed our programs to show a consistent, concerted effort to improve West Montgomery.” One of the goals is reestablishing the housing market in the area. The city as well as the private sector and an organized neighborhood group are working together to build houses on vacant lots, tear down abandoned homes and construct new housing.

But at the same time, Summit America, which has its headquarters in downtown Montgomery, is working to replace the Avon Court housing development with a 56-unit project that will feature garden homes and brownstones. Downes called the current Avon Court cinder-block housing units “one of the biggest eyesores in this target area.” Those units are adjacent to the Cleveland Avenue YMCA. Strange said that there are a lot of apartments next to Avon Court and “we will tell them that this is not going to be able to stay there when this (the new project) gets done or we’ll come down on you, too.” CONTINUED ON PAGE 26

“The idea is the private market in this area is non-existent,” Downes said. “We’re coming in – we’re priming the pump in a distressed area that would otherwise die a slow death. We want to see positive change.”

March 2010 Montgomery Business Journal

CONTINUED FROM PAGE 25

A local organization called ACTS (All Collaborating to Serve) Community Development Corp., which is led by the Rev. Ronnie Washington, will help with infill residential redevelopment in the area. “They will help engage the neighborhood to help themselves,” Downes said. “This is really a partnership.” Downes said the first opportunities to infill homes are renovation projects at 1615 E.D. Nixon Ave., 1619 E.D. Nixon Ave. and 1621 E.D. Nixon Ave. “We have to acquire these vacant properties and put a redevelopment plan in place,” Downes said. Five Star Consortium, LLC, a real estate consulting and development firm based in Phenix City, is developing the northern portion of the target area. Mike Ingersoll, one of four managing partners of Five Star Consortium, said the firm hopes to build between 50 and 80 homes with a first phase of 20 to 25 homes. Before his firm begins building houses, a study is being done on the infrastructure:

Montgomery Business Journal March 2010

sewer, water, storm system, etc. Some of the homes will be built on Grady Street and where Mobile Street intersects Grady. Ingersoll said the homes will be period-style “so they would look like they were built in the late 1800s as well as the early 1900s.” Ingersoll said there will be a variety of housing to accommodate empty-nesters, families and young professionals. The houses will range from about 1,000 square feet to 2,600 and prices will average between $160,000 to $170,000 and more for the larger homes. “We want it to be multi-ethnic and a multiincome community,” said Ingersoll, who hopes to start building homes this summer. Distinctive Homes of Alabama, which has built 50-plus homes at The Waters in Pike Road, is trying to acquire property in West Montgomery. Gary Blackman, a principal in the ﬁrm, said he would like to build traditional homes that would resemble houses constructed 50 years to 70 years ago. The city has already taken steps to reduce crime in the area with the new technology of Shot Spotter, which enables the Montgomery Police Department to

automatically identify gunfire in the target area so officers can respond quickly. The department has already launched “enhanced patrols” in the area, Downes said. The city will eventually build a police precinct/substation in the area of West Fairview and is looking for the best location. “We want to redevelop the commercial district to make it even more viable than it already is,” Downes said. He said the existing sidewalk connections are sporadic, the street connections create what he calls “a transportation nightmare,” the street signage and utility poles create clutter. The city is expecting to receive more funds from a façade program. Other goals are removing the parking from the street to the rear of the retail outlets and relocating utility poles in an alley behind businesses. Meanwhile, Five Star Consortium is planning mixed-use developments on Mobile Street. The first floor of the new buildings would be retail and the second and third floors would be loft apartments or office space, according to Ingersoll.

“The first thing is to locate and recruit businesses that provide services like a drugstore, grocery store, cleaners, bank, beauty salons, coffee shops and restaurants,” Ingersoll said. “We don’t have any commitments yet, but we have a lot of interest.” In the first phase, Ingersoll said the firm would construct about 10 buildings – about 55,000 square feet of retail space at the northern quadrant of the intersection of Mobile Avenue and Mildred Street. He said the amount of retail space in the second phase would be determined by the demand from the first phase. His original plan was 200,000 square feet of retail space.

The city secured a site for a park, one of those short-term projects. Ofﬁcials also saw

Ingersoll said that because the historic Civil Rights Trail is in the area, he hopes to recruit some businesses that cater to tourists.

an opportunity to restore the Genetta Stream, which has been covered up. Downes said the stream was once an amenity, and with federal money available to restore streams, it can become an amenity once again.

“Everybody knows what everybody else is doing,” Strange said. “They are just in different sectors.”

Downes said a restored Genetta Stream and a park provides a vastly improved gateway from South Montgomery.

Near the park, the city acquired some houses through drug seizes and bought others for $3,000, $4,000 or $5,000, according to Strange. “And, oh by the way, you come up under the interstate and go right to the new Carver High School and now you also have an outdoor laboratory for the science classes,” Strange said. •

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March 2010 Montgomery Business Journal

STAY TUNED FOR THE LATEST DEVELOPMENTS

the TIF generate? Dover, Kohl brings economists in to help us clarify that.” Downes said that the ﬁndings from the charrette, an intense planning process that features input from residents as well as various agencies, will show “where TIF funds should be to make the biggest economic impact for the area – if we create a TIF.”

by David Zaslawsky Economic redevelopment is coming to the West Fairview Avenue business district. Montgomery Deputy Mayor Jeff Downes, who is also chief of staff to Montgomery Mayor Todd Strange, said that the city has been contacted by nationwide companies wanting to locate on West Fairview Avenue. “Our discussion has been, ‘Where should they be located?’” Downes said. “Is there a market for the services they want to provide? Do they place themselves in a vacant lot or near residential or should they be in a cluster of others? “Should the (old) Sears building be torn down? Should a vacant lot near Lanier Place (a new residential project) be the site of a development?” A week-long charrette was conducted the ﬁrst week in February to answer these and other questions. The charrette was run by Dover, Kohl & Partners, which also brought in an

economist to study the economic feasibility of creating a tax incremental ﬁnancing (TIF) district to help fund the project.

At estimated 150 people attended the charrette’s kick-off presentation and hands-on session, where members of the community told facilitators what they would like to see on West Fairview Avenue. A majority of those in attendance had lived in the area 20 or more years.

With a TIF, the increased values of the properties are used to help fund projects in a speciﬁed area. The city did create a TIF to help fund some downtown projects.

Some of those recommendations were a grocery store, doctor’s ofﬁce, discount store, clothing store, restaurants, theaters, areas for children.

“You wouldn’t create a TIF if the experts tell you that you’re not going to generate enough money in the increase of ad valorem taxes to pay for the debt service,” Strange said.

The charrette ﬁndings will also pinpoint what Downes calls “catalyst projects.” He said, “I can’t tell you today what the catalyst project is. It could be a well-designed shopping center. It could be a well-designed family entertainment facility. It could be some pedestrian-oriented shopping venue.

April Delchamps, a Transportation Planner for the City of Montgomery, assists charrette participants at New Life Baptist Church.

“How big should the TIF be?” Downes asked. “How much money could

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Montgomery Business Journal March 2010

All of those things are going to be studied during the charrette so we can determine what’s the best bang for the buck.” Summit America, which has its headquarters in downtown Montgomery, will be involved in the redevelopment of the West Fairview business district. Downes said that the city wanted to “partner with someone who knows the commercial real estate business and is in the development business.” The city sought a private-sector partner and “Summit America basically stepped up to the table and said we would like to partner with you and help drive that project,” Downes said. “We’re defining commercial redevelopment as an opportunity to grow the businesses in this area and offer things that are needed by people in the community.” Summit America’s Josh Mandell, the legal counsel for the firm, said the company was waiting to hear the findings from the charrette before moving forward on any plans. •

GO WEST: FORUM OPENS PATH FOR FIRM’S INVOLVEMENT IN WEST MONTGOMERY by David Zaslawsky It may be hard to believe that someone accidentally became involved in helping to revitalize West Montgomery.

Mike Ingersoll

But that is exactly what happened to Five Star Consortium’s Mike Ingersoll, who is one of four managing partners. The Phenix City-based ﬁrm specializes in real estate consulting and development.

Ingersoll said that he learned about a meeting where an Alabama State University (ASU) forum was focusing on the devastating impact of the interstates in West Montgomery. Ingersoll, who calls himself quiet and shy, said that he spoke up during a question-and-answer session. He said that his ﬁrm was helping some property owners in Leeds form a land bank. “We would meet once a month with the property owners and teach them about the possibility of forming a land bank and getting a better value for your land,” Ingersoll said. Ingersoll said there were two members from the city’s Planning Department at that ASU forum who were intrigued about the land bank. “And then they said, ‘Oh, by the way, we’re in the early stages of planning and revitalization project. Could you and your partners come and attend (some meetings)? We went and that’s how Five Star became involved in this public-private project.” One of the many projects in the city’s West Montgomery Initiative is establishing a land bank to “encourage reuse of abandoned properties by receiving and clearing title for redevelopment,” according to a city press release. • March 2010 Montgomery Business Journal

A Turn Toward Turning theJobs Corner Saving Alabama’s Uphill Battle to Emerge from the Downturn by David Zaslawsky

Don’t call it a comeback – yet. The state’s economy is expected to rebound this year, but Sam Addy, director of the University of Alabama’s Center for Business and Economic Research, says the real growth is still a year away. The state’s economy will grow about 1.9 percent this year, Addy said, with the actual range for growth to be between 1 and 2.5 percent. But in 2011, the center is forecasting a growth of 3.7 percent. The pattern is the same for employment. Non-agriculture employment will decline .1 percent in 2010, but rise 1.2 percent in 2011, the center says.

“The recovery is going to be an uphill battle, but

we will recover.” Sam Addy, director of the University of Alabama’s Center for Business and Economic Research

Manufacturing – which accounts for about 13 percent of the state’s workers – will lose 4,800 jobs in 2010. That will be followed by an increase of 1,400 jobs in 2011. There are some bright spots in employment: Professional and business services will add about 2,000 jobs (a 1 percent increase); jobs in leisure and hospitality will increase 1.2 percent; education and health care, 1.7 percent; state government, 1.9 percent; and federal government, 3.1 percent. As modest as those numbers seem, they are a far cry from what happened between October 2008 and October 2009 when the state lost 98,700 jobs. Addy said that during that span, “every metropolitan area lost jobs.” “We’ve seen the unemployment rate shoot through the roof,” Addy said during the 2010 Economic Outlook Conference at the Renaissance Montgomery Hotel & Spa at the Convention Center. Addy pointed to a dramatic decline in jobs: > 15,500 jobs lost from December 2007 through June 2008. > 48,900 jobs lost from June 2008 through December 2008. > 47,500 jobs lost from December 2008 through June 2009.

But the job losses from June 2009 through November 2009 were down to 9,800. And what about the three-month period of September 2009 through November 2009? The state gained 9,000 jobs. Addy said that the River Region was actually the sixth of the 11 metro areas to feel the loss of jobs that began in June 2008. Job losses were happening in Dothan about six months before that. The state has lost nearly 240,000 jobs since December 2007. “The recovery is going to be an uphill battle, but we will recover,” Addy said. “The recession hit us, and hit us very hard. It was much worse (here) than the nation.” Some of the state’s metro areas saw unemployment rates double from October 2008 to October 2009. That was not the case with Montgomery, where the jobless rate increased from 5.8 percent to 10 percent. The unemployment rate doubled in the Birmingham-Hoover, Decatur and Tuscaloosa metro areas and nearly doubled in Huntsville. Addy said that about 80 percent of the job losses were in manufacturing, construction, retail trade and professional and business services. Except for the retail trade sector, those are high-paying jobs, which also “resulted in very significant reductions in tax revenues,” Addy said. He is forecasting total tax revenues will be flat this fiscal year (a .3 percent increase), but will grow 1.7 percent in the 2011 fiscal year to nearly $8.6 billion. Here are some other Alabama revenue forecasts for the current fiscal year: > Sales tax: -1.1 percent > Individual income tax: -.2 percent > Corporate income tax: 2.7 percent > All other tax: 1.3 percent > Education Trust Fund: -1.3 percent > General Fund: -2.4 percent

Montgomery Business Journal March 2010

Once again, the outlook for the 2011 ﬁscal is much brighter: > Sales tax: 1.2 percent > Individual income tax: 2.6 percent > Corporate income tax: 3.3 percent > All other tax: .6 percent > Education Trust Fund: 1 percent > General Fund: 1.1 percent The center is expecting an upturn in spending on durable goods (products that last more than three years). The 2010 forecast calls for a 1.3 percent gain in furniture sales and household equipment, 2.1 percent increase in clothing and footwear sales, and a robust 18 percent rise in sales of computers and peripherals. The state has shown remarkable resiliency. “Despite two recessions in this decade, this is shaping up to be one of our best decades – there is no question,” Addy said. Over the years the state’s economy has become much more diverse with biotechnology, health care, aerospace,

FEDERAL RESERVE: SOUND DECISIONS, NOT SOUND BITES by David Zaslawsky After delivering an extensive history lesson and explanation of what went wrong with the economy during the recent recession, a Federal Reserve Bank ofﬁcial left his audience with a simple message: “On your way out, go out and buy something and the more you buy the better,” Thomas Cunningham, vice president and associate director of research for the Federal Reserve Bank of Atlanta, told participants at an economic conference. But his earlier message was about the difﬁculty of communicating the Fed’s policy. “Now we have to walk a delicate line,” Cunningham said. “On the one hand, we have to convince everybody that we are ready, willing and able to pull the plug on all this liquidity on a very short-term basis. “On the other hand, we’re not going to do it right now because now is not the time. We are committed to (removing liquidity), but not right now.”

and Cunningham said that conveying the Fed’s message is very difficult. “The problems are big and therefore they don’t lend themselves to sound bites.” He said that Federal Reserve Chairman Ben Bernanke pointed out that the Fed decided to take money back from the banks during the Great Depression as the markets starting improving. Pulling that money out of the system caused the Great Depression to last another seven years until the start of World War II, according to Cunningham. The Fed’s balance sheet increased from $840 billion to about $2.3 trillion, which showed the magnitude of the distress in the financial markets, Cunningham said. Cunningham said there needs to be financial regulatory reforms, “but if Congress gets it wrong, the costs will be enormous and the problems won’t show up immediately.” Without endorsing any of the proposals whirling around Washington, Cunningham said the reforms “just can’t be cosmetic changes or rearranging the deck chairs.” •

That’s not the best sound bite for 45 seconds in front of the television cameras

CONTINUED ON PAGE 32

March 2010 Montgomery Business Journal

CONTINUED FROM PAGE 31

national defense, automotive, education, steel, shipbuilding and other high-paying manufacturing and white-collar jobs. As a result, one indicator – per capita income – has reached its highest levels. In 1969, the state’s per capita income was 71 percent of the U.S. and now it is 83 percent. The average wage in the state is at 86 percent of the average wage in the country. “Many of our state agencies have been receiving accolades and many of our cities are on lists of best places to live or best places for business,” Addy said. •

SLOW BUT STEADY: IHS GLOBAL INSIGHT FORECASTS ‘SUBDUED RECOVERY’ by David Zaslawsky When he addressed an economic outlook conference in January 2009, one of IHS Global Insight’s chief U.S. economists apologized for a litany of declining numbers and all the gloom and doom. Calling the recession “the worst in the postwar era,” Nigel Gault, managing director of the North American Macroeconomic Group for IHS Global Insight, said that he wanted the conference participants to fully appreciate just how severe the recession would be. “The immediate outlook is bleak,” he said. He said back then, and repeated it in January of this year, that the economy will be improved in 2010. Now, Gault is using such terms as “stabilizing” and “growth” as well as “recovery.” Gault, speaking at the 2010 Economic Outlook Conference at the Renaissance Montgomery Hotel & Spa at the Convention Center, said the GDP is expected to grow 2.6 percent this year and 2.7 percent in 2011. He predicted that the economy may have grown close to 6 percent in the fourth quarter last year and he was right – 5.7 percent. Some other highlights from IHS Global Insight, one of the nation’s leading forecasting ﬁrms: > Retail sales will rise 2.1 this year and 2.2 percent in 2011. > Light vehicle sales will reach 11.5 million units this year and 13.8 units in 2011. 32

Montgomery Business Journal March 2010

> Exports will increase 9.3 percent this year and 5.5 percent in 2011.

months, employment turned positive and stayed positive, Gault said.

> Residential investment will increase 5.7 percent in 2010 and 24.8 percent in 2011.

Even with positive indicators in job growth, the consumer will not be the driving force behind the recovery, Gault said. He calls the consumer “the weak link” because they are saving more and paying down debt, which translates into less spending. He said consumer credit is declining because of the use of cash and debit cards and that “consumers are wary of borrowing and banks are wary of lending.”

> Industrial production will grow 3.6 percent this year and 3.7 percent in 2011. “We expect the recovery to be rather subdued, but we are certainly not expecting a double-dip (recession) in this economy,” Gault said. “We are not expecting a return to recession, but we do expect a rather subdued expansion. Clouds have lifted in the ﬁnancial markets, but we’re certainly not back to normal yet.” He said export growth will be one of the economy’s bright spots this year because of the declining dollar and that exports declined so dramatically in the ﬁrst half of 2009. But in the third quarter of 2009, exports were growing in the 15- to 20percent range, according to Gault, and he is forecasting a growth rate of more than 20 percent in the fourth quarter. “Exports are growing very robustly and that’s a very powerful support for the U.S. economy,” Gault said. But it all comes down to jobs. “The key determinant of the recovery going forward is going to be what happens to the job market,” Gault said. “When the job market starts to turn, that supports incomes and that supports spending. We’re not quite there yet.” There are some encouraging signs. First, there was job growth in November, but that was followed by a loss of 85,000 jobs in December. In January, the economy shed 20,000 jobs, but the national unemployment rate fell to 9.7 percent.

Nigel Gault

The average length of the work week is slowly creeping higher and according to Gault, that signiﬁes a growing conﬁdence among employers. One of the strongest indicators is in the temporary employment market, where there have been 50,000 new hires a month for three straight months. Gault said the last time there was a three-month increase in temporary employment was July-September in 2003. After those three

There are signs the manufacturing sector is improving, Gault said, referring to positive indicators in both orders and production. That’s because manufacturers cut their inventories too aggressively and are now building up those inventories. He said the inventory ramp-up has added more than 3 percent to the fourthquarter’s GDP. But he added that it is a temporary boost to the economy. Meanwhile, commercial real estate will be a “restraint on growth,” according to Gault. Calling it a “slow-motion crisis,” Gault said that the outstanding commercial real estate loans “will make an important dent in the economy.” But he is confident that lenders will roll over or extend commercial real estate loans, hoping that the properties’ value will increase in three, four or five years and the banks will be better able to recoup some of their losses. Gault said that smaller banks have more exposure to commercial real estate loans than the larger banks, which is depleting the smaller banks’ capital and makes them less willing to lend. “We don’t need to build new retail developments right now,” Gault said. “We don’t need to build new offices right now. We also built a lot of hotels during the boon.” He expects construction spending to decline for “a long time. Banks have taken big losses in the commercial real estate area and naturally are reluctant to lend into that market.” Gault said that businesses are spending money on software and equipment – not construction. •

SEEING THE QUARTER AS HALF-FULL ALABAMA’S BUSINESS CONFIDENCE INDEX INCHES HIGHER by David Zaslawsky

ABCI QUARTERLY BREAKDOWN

When the University of Alabama’s Center for Business and Economic Research first began conducting its quarterly survey of state business leaders, the overall index was positive for 24 straight quarters. There was one stretch when the overall Alabama Business Confidence Index enjoyed nine straight positive quarters in the ’60s – a very positive outlook. But now, the index has just extended its negative outlook to nine straight quarters. Yet, with an overall first-quarter index of 48.8, that’s a marked improvement from the dark days of 2009’s first and second quarters (32). It also shows a slight, but continuing trend of increases in the overall index – 46 in the third quarter last year; 47 in the fourth quarter of 2009 and now 49 in the first quarter of 2010. The first-quarter index still shows contraction, but five of the six individual components have increased and two are actually above 50, which means expansion in the survey of 222 participants. The following is a breakdown of the six components: NATIONAL ECONOMY The individual index was the only one to decline from the 2009 fourth quarter. The index fell six-tenths of a point to 48.5, but this component was at 24.7 in the second quarter last year. About one-third of the respondents expect the U.S. economy to remain the same as the third quarter and another one-third expect it will be somewhat better. Nearly 7 percent of those polled anticipate a much worse first quarter, and 26 percent expect a somewhat worse quarter.

ALABAMA ECONOMY Survey participants are upbeat about the first quarter as the component has an index of 52.5. The component increase seven-tenths of a point from the fourth quarter. More than 70 percent of the respondents expect the first quarter to be either the same or better than the fourth quarter. About 25 percent forecast a decline. Industry sales – This component was the highest at 52.8 and had the greatest increase from the fourth quarter (3.6 points). Nearly three-fourths of the survey participants expect sales to be at least the same or better in the first quarter. The construction and wholesale trade sectors are the most upbeat about sales increasing. The health care sector expects sales to remain the same. INDUSTRY PROFITS The component is up marginally – six tenths of a point – to 46.4. Those expecting profits to decline outnumber those who anticipate profits to climb – 38 percent to 27 percent. About 35 percent expect first-quarter profits to match the fourth quarter. The construction sector panelists expect profits to increase; transportation, information and public utilities sectors expect profits to remain unchanged; and profits are forecast to decline in all the remaining sectors with health care and wholesale trade sectors expecting the worst declines. INDUSTRY HIRING The component showed a strong increase of 2.3 points to 46.8. Almost 24 percent of the panelists expect hiring to decline in the first quarter while about 17 percent expect hiring to increase. That leaves 59 percent seeing no change from the fourth quarter. But in the fourth quarter of 2009, those forecasting a decline in hiring were in a two-to-one majority.

Year

2002

2003

2004

2005

2006

2007

2008

2009

2010

Source: University of Alabama’s Center for Business and Economic Research

The sectors expected to increase hiring are construction, transportation, public utilities, professional, scientific and technical services. The sectors expecting job losses are finance, insurance and real estate. CAPITAL EXPENDITURES Although the component increased 2.5 points from the fourth quarter, it still had the lowest index at 46. Fifty percent of the respondents expect no change in the first quarter; nearly 30 percent expect a decrease and 20 percent expect to increase spending. Spending is expected to increase in the manufacturing, transportation, information and public utilities sectors. The sectors expected to see the greatest declines in spending are health care, finance, insurance and real estate. About 60 percent of the panelists in the professional, scientific and technical services sectors expect no change in spending. •

March 2010 Montgomery Business Journal

Montgomery Business Journal March 2010

Member News

BUSINESSBUZZ From left, MAX Credit Union President and CEO Greg McClellan, Beverly Nettles and the Rev. Edward Nettles pose with the 2010 MAX Community Achievement Award.

REV. NETTLES RECEIVES MAX COMMUNITY ACHIEVEMENT AWARD MONTGOMERY – MAX Credit Union honored the Rev. Edward Nettles with its 2010 MAX Community Achievement Award. Nettles was honored for his vision in advocating the “Enough is Enough” campaign to end violence in the community.

Award,” said Greg McClellan, president and chief executive ofﬁcer of MAX Credit Union. “Pastor Nettles’ vision for the ‘Enough is Enough’ campaign is truly making a difference in our community. The campaign strives for a better Montgomery and believes in the difference it is making in the lives of those it touches.” Nettles received the award at the seventh-annual MAX Community Reception. The annual event brings together business, political and community leaders to celebrate community successes and recognize organizations and individuals who have made a signiﬁcant difference in the quality of life in the River Region.

“Max is honored to present Pastor Nettles with the 2010 MAX Community Achievement

“Harriet’s House is thrilled to have been chosen by the Beasley Allen law ﬁrm for its Wii Give Back Program,” said Susanna Smith-Naisbett, executive director of Harriet’s House. “The provision of safe entertainment for the children and adults that reside at Harriet’s House can be challenging, at best. “I know this gaming system will be the source of a lot of in-shelter fun and will bring a smile to many faces. I want to thank Beasley Allen for reaching out and giving back to those in need in Alabama in such a positive way.” The law ﬁrm will donate one Wii gaming system each month this year to an Alabama charity.

Nettles worked with the court system for years to try and provide a second chance for teens in trouble by mentoring and offering hope. He then developed the “Enough is Enough” campaign, which is now in its third year. Nettles and a group of men who call themselves “coaches” lead the campaign. They visit crimeridden neighborhoods and build relationships with the community, educating children and teens about making good decisions and offering hope to those who need it.

for victims of domestic abuse and serves people throughout West Alabama and beyond.

Beasley Allen’s public relations coordinator Helen Taylor, right, presents a Wii gaming system to Sandy Baker, vice president of the board of directors for Harriet’s House, and Susanna Smith-Naisbett, executive director of Harriet’s House.

HARRIET’S HOUSE RECEIVES Wii GAMING SYSTEM FROM BEASLEY ALLEN LAW FIRM MONTGOMERY – The Beasley Allen law ﬁrm donated a Wii gaming system to Harriet’s House in Demopolis. Harriet’s House is a not-for-proﬁt shelter

Charities from throughout the state are eligible for the Wii Give Back program. Nominations will be accepted throughout the year on the ﬁrm’s Facebook page (www. facebook.com/beasleyallen) or by e-mail at public. relations@beasleyallen.com.

MAC ENTERPRISE SOLUTIONS COMES TO RIVER REGION MONTGOMERY – Peter Waldo recently opened Mac Enterprise Solutions to serve the River Region. The ﬁrm provides Applecentric information technology consulting and support services.

Peter Waldo

The firm will address the needs of business Mac users and to ease the transition for companies switching to the Mac from PC-based networks. Mac Enterprise Solutions performs assessments of existing networks and makes recommendations on improvements in areas such as work flow, application software, network security and backup strategy. The firm also deploys solutions, emphasizing proper installation, configuration, migration, integration with existing networks, PCs and training. Once an installation enters the support/maintenance stage, Mac Enterprise Solutions provides both remote and on-site support services. Waldo, president of Mac Enterprise Solutions, spent 25 years in the high-tech sector in San Diego. The company is focused on several areas of business: law and medical practices, small offices, government, retail and education. Waldo said his goal is making computing, sharing and security work simple. (CONTINUED ON PAGE 36)

March 2010 Montgomery Business Journal

BUSINESS BUZZ (CONTINUED FROM PAGE 35) AUM CONTINUING EDUCATION OFFERS NATIONAL PERSONAL TRAINING COURSE

Terry Winemiller

AUBURN MONTGOMERY PROGRAM RENEWS $750,000 GRANT MONTGOMERY – Auburn Montgomery’s Geographic Information Systems program was recently awarded the Intergraph Corporation Education Grant of about $750,000 for software and equipment. “I have to apply for and renew the grant every two years,” said Terry Winemiller, associate professor of sociology. “We’ve had the grant since 2004.” To apply for the grant, Winemiller had to design teaching exercises which instruct students how to use Intergraph Corp.’s software and products. “It’s an ongoing process,” Winemiller said. “To renew, we have to continue to expand the program.” As part of the grant, each student enrolled in the program gets a one-year license to run Intergraph Corp.’s software and products on their personal computer, including all maintenance and updates. “That’s equivalent to about $1,400 for each student,” Winemiller said. Winemiller said students theoretically will have access to the software for up to three years – as long as they are enrolled in the program.

MONTGOMERY – The Continuing Education Department at Auburn Montgomery will offer the World Instructor Training Schools (W.I.T.S.) Personal Trainer Certification course as part of its professional development program. Virginia Beach, Va.-based W.I.T.S. provides educational opportunities for aspiring and established fitness professionals and fitness industry business owners. They currently partner with hundreds of colleges and universities in 39 states and national fitness companies such as Gold’s Gym. The course is scheduled from 9 a.m. to 4 p.m. on Saturdays from April 3 to May 8. The classroom portion of the course will be taught at the Auburn Montgomery campus. The university has partnered with Gold’s Gym to host the practical portion of the course. “We are excited about partnering with Auburn University Montgomery and W.I.T.S. on their Personal Fitness Trainer Certification course this spring,” said Annette Roberts, general manager at Gold’s Gym. “AUM decided to make the W.I.T.S. class available because it couples classroom and practical instruction with a required 30-hour internship served at local fitness facilities and wellness centers,” said Brenda Ward, program planner at AUM’s continuing education department. “This combination is important if you want to start a successful career in personal training.” For information about W.I.T.S. and its programs call Jay Del Vecchio, chief executive officer of W.I.T.S. at (888) 330-9487.

Montgomery Business Journal March 2010

The restatement decreased the ﬁrm’s earnings by nearly $505,000 or 9 cents per diluted share.

Brian Belsterling

THE COPY CENTER OF MONTGOMERY CHANGES NAME TO COMMERCE PRINT STRATEGIES MONTGOMERY – The Copy Center of Montgomery Inc. has changed its name to Commerce Print Strategies Inc. “During the 40 years serving businesses in Montgomery, we felt The Copy Center name no longer represented what we do and the wide variety of services we offer,” said Brian Belsterling, president and owner of Commerce Print Strategies Inc. A full-service company, Commerce Print Strategies offers both offset and digital printing, mailing services and display graphics. Additionally, marketing services, Webto-print solutions and order fulﬁllment are high growth areas for the ﬁrm. Commerce Print Strategies is located at 31 Commerce St. For information about the company, which was founded in 1969, call (334) 2623811, visit the Web site www.commerceps.com or contact Belsterling directly at brian@commerceps. com or (334) 657-3259. The former Web site and e-mail addresses will continue to be active for the foreseeable future.

SERVISFIRST BANCSHARES RESTATES FOURTHQUARTER EARNINGS BIRMINGHAHM – ServisFirst Bancshares restated its fourth-quarter earnings.

The corrected statement dropped the company’s proﬁt to about $2 million in the 2009 fourth quarter. The restatement reﬂected an $800,000 payment to the Federal Deposit Insurance Corp. The 2009 fourth-quarter earnings showed a 1 percent increase over fourth-quarter earnings from 2008. ServisFirst has bank branches in Montgomery, Birmingham, Huntsville and Dothan.

BEASLEY ALLEN ATTORNEY COACHES STUDENT MOCK TRIAL TEAM MONTGOMERY – A team made up of seven junior and senior level students from Saint James High School in Montgomery has been selected to represent the state at the National Mock Trial competition May 5-9 in Philadelphia. The students came out on top of 66 teams from throughout the state that competed during the annual YMCA Youth in Government Youth Judicial event. Beasley Allen attorney Clay Barnett is the team’s head coach. The Alabama YMCA Youth in Government Youth Judicial Program is Alabama’s only statewide high school mock trial competition. Students from throughout the state participate in a three-day event in Montgomery, where they try an actual case and are scored by elected student judges. About 500 young people participated in the event. Student teams work with professional attorneys from the community who volunteer as coaches, working with the

BUSINESS BUZZ teams over the course of several months to prepare them for the mock trial competition. Students may participate as attorney, witness, bailiff or sheriff, or be elected as a judge, as they work with their coaches to learn the judicial process. Barnett has been head coach of a team for the last six years, and has coached this St. James team for the past three. This team will be the second Alabama team Clay has prepared and taken to Nationals. Coaches for the Junior/ Senior team are Barnett, Kevin Davidson and Scott Green. Davidson and Green are both prosecutors with the Montgomery County District Attorney’s Ofﬁce

Blackwell. Recent recruitment efforts have now seen the plan come to fruition.

Taylor Blackwell

WALKER PRINTING CHANGES NAME TO WALKER360 MONTGOMERY – Walker Printing has announced a name change to reﬂect that the company will now offer comprehensive advertising and marketing services as well. The diversiﬁcation of the company to become a fullservice advertising agency has been a goal of Walker Printing for several years, according to Walker President Taylor

“We’ve recruited and hired national award-winning creative talent with a proven track record of producing exceptional results for a wide range of clients,” Blackwell said. “We can now offer the full circle of services you’d expect from a traditional advertising agency, with the skills and abilities to help our clients grow their businesses through effective, targeted communications.” The new agency offers a range of services, from graphic design and copywriting for radio, TV, print, outdoor, direct mail, Web sites, and packaging, to marketing plans and strategies that include virtually any marketing medium.

“Our advertising, marketing and public relations strategies are determined by our clients’ needs and goals, and may or not involve printing,” Blackwell said. “If printing is a part of the mix, however, we can accomplish that in-house without the need to pass markup costs along to our clients.” The company, which has ofﬁces in Montgomery and Atlanta, has been in business for 60-plus years and serves local, regional, national and international clients. To submit your business news for publication, email a press release to editor@montgomerychamber. com. Montgomery Area Chamber of Commerce Members only.

Fair Winds Travel is now

More travel options. Maximum travel value. While our name has changed, we remain locally owned and operated by Eliot and Morris Capouya, with the same dedication and personal service you’ve come to expect. Whether it’s business travel management, meetings & events, incentive travel or vacation planning, our local travel professionals leverage their experience and relationships, to transform your speciﬁc needs into quality travel options ensuring maximum value.

DAILY TRAVEL SPECIALS Call 334.213.2000 for the latest or visit travelleaders.com/montgomeryal

March 2010 Montgomery Business Journal

MEMBERS ON THE MOVE CAPELL & HOWARD, P.C. NAMES TWO SHAREHOLDERS MONTGOMERY – Michael P. Dalton and Catherine “Caty” H. Richardson Michael P. Dalton have been named shareholders at Capell & Howard, P.C. Dalton joined the ﬁrm’s business department in 2005, after practicing law in Chicago. His practice focuses primarily on mergers and acquisitions, general business, corporate law and intellectual property law. He has represented a number of private businesses in mergers and acquisitions and other reorganization transactions as well as a variety of entrepreneurs in establishing and growing new businesses.

Montgomery Business Journal March 2010

Dalton graduated from Auburn University in 1998 and received his juris doctorate from Vanderbilt University Law School in 2002. In 2003, he received an LLM in taxation from Northwestern University Law School. Richardson has practiced with the ﬁrm since her admittance to the bar in 2004. She practices primarily in the ﬁelds of estate, trust and tax planning and estate and trust administration and litigation. She also manages other probate court matters including guardianships, conservatorships, and adoptions. Richardson received a bachelor’s degree in journalism from Auburn University in 2001 and her juris doctorate from the University of Alabama School of Law in 2004.

METLIFE FINANCIAL GROUP OF THE SOUTH HIRES FINANCIAL SERVICE REPRESENTATIVE MONTGOMERY – Bo Wills has joined MetLife Financial Group of the South as a ﬁnancial service representative. Bo Wills

Wills, a St. James High School graduate who attended Troy University, is a registered representative and licensed to offer life and health products in Alabama. MetLife Financial Group of the South, an ofﬁce of MetLife, offers a broad array of ﬁnancial products and services including life, disability income, longterm care insurance, annuities, mutual funds and investment products.

WALKER PRINTING HIRES SENIOR CREATIVE DIRECTOR MONTGOMERY – Walker Printing has announced the hiring of a senior Robert Hatfield creative director as part of its move to offer comprehensive advertising agency services. Robert Hatfield comes to Walker with more 20 years of advertising and marketing experience, during which he has produced award-winning work for a wide range of business-to-consumer and business-to-business clients. “Rob was a perfect fit for us as we move from Walker Printing to our new name, Walker360, and new business model,” said Taylor Blackwell, president of Walker Printing. “Not only is he extremely creative, he also has an innate ability to think strategically. He creates work that gets noticed and produces exceptional results for his clients. Rob and I have

known each other for almost 20 years from when I used to work with him when he was creative director at Britton Advertising here in Montgomery.”

CENTURY 21 BRANDT WRIGHT REALTY ANNOUNCES THREE SALES ASSOCIATES

Hatfield spent 18 years with Britton Advertising, where he directed highprofile ad campaigns for Baptist Health, Montgomery Cancer Center, Troy University, Citizens National Bank, Mobile Infirmary Medical System and Plastic Surgery Associates.

MONTGOMERY – Century 21 Brandt Wright Realty Inc. announced that Cleg Bender, Susie Dunn and Sheila Woodham have joined its ﬁrm as sales associates.

He was recruited as a creative director/ broadcast producer at Hellman & Assoc. in Waterloo, Iowa, where he worked for several national clients, including 3M and General Electric. During his career, Hatﬁeld has won numerous awards, including 17 National Telly Awards, 20 National Healthcare and Admissions Marketing Awards, three Regional ADDYs and scores of local ADDYs from both Montgomery and Waterloo. With head shots of Cleg Bender, Susie Dunn and Sheila Woodham

Cleg Bender

Susie Dunn

Sheila Woodham

“We are thrilled to have Cleg, Susie and Sheila join our team,” said owner Brandt Wright. “It’s an exciting time to be with the Century 21 system as we increase our market presence in the Montgomery area.”

March 2010 Montgomery Business Journal

RIBBON CUTTINGS & GROUND BREAKINGS

HERE WE GROW AGAIN

TRENHOLM STATE TECHNICAL COLLEGE 1225 Air Base Blvd., Bldg. E Montgomery, AL 36108 420-4200 Sam Munnerlyn, President Colleges & Universities

C & D ENTERPRISES 4317 Virginia Loop Montgomery, AL 36111 395-5392 Carole Orum Smiley, Owner Printers/Copy Centers

MEDICAL NECESSITIES 1305 Mulberry Street Montgomery, AL 36106 265-5337 Kevin Bradley, Owner Medical Equipment & Sales

Montgomery Business Journal March 2010

ALABAMA CASTING SERVICES, LLC P.O. Box 231265 Montgomery, AL 36123-1265 318-9552 Renee Williams, Owner Entertainment & Recreation

ALABAMA AG CREDIT (formerly Federal Land Bank Association) 7602 Halcyon Summit Drive Montgomery, AL 36117 270-8686 Douglas Theissen, Chief Executive OfďŹ cer Mortgage/Finance

New Members Advertising Agencies CHAMELEON CONSULTING GROUP, LLC 334-782-1335 THE SOUTH AGENCY 334-230-9998

Architects

Insurance Companies/Services CAPITAL INSURANCE & INVESTMENTS, LLC 334-558-0032

Marketing/Mktg. Research

GODWIN JONES ARCHITECTURE & INTERIOR DESIGN 334-387-0240 Ext 113

CHAMELEON CONSULTING GROUP, LLC

Associations/ Non-Proﬁt

Publications

ALABAMA STATE WESLEY FOUNDATION 678-428-7997 CHILD EVANGELISM FELLOWSHIP, INC. CENTRAL ALABAMA CHAPTER 334-213-7388

Construction Services PEARSON MANAGEMENT GROUP, INC. 334-270-9500

Credit Union ALABAMA TELCO CREDIT UNION 334-271-4526

Employment Agencies ASPIRE STAFFING, INC. 334-396-3710

Fund Raising Games, Merchandise & Supplies SPIRIT OF AMERICA FUND RAISER 334-273-4630

Hotels/Motels FAIRFIELD INN & SUITES 334-260-8650

Individuals CALVIN WHITESELL 334-284-2950

Industrial Maintenance TRINITY CONTROLS, LLC 334-356-1115

334-782-1335

PRIME MONTGOMERY MAGAZINE 334-202-0114

Public Relations CHAMELEON CONSULTING GROUP, LLC 334-782-1335

Real Estate-Agents EXIT REALTY PREFERRED 334-491-3948 INTERVEST REALTY AFFILIATESDAMON MONTGOMERY 334-649-3389

Real EstateCommercial/Industrial MERIWETHER PROPERTIES 334-244-5000

RestaurantsLocal Favorites NOBLES 334-262-3326

Telecommunications TW TELECOM 205-263-2211

Travel Agencies/ Services GLOBAL LEARNING TOURS, LLC 334-669-9983

Vending Services MAC’S VENDING 334-567-9907

Windows WINDOW WORLD OF MONTGOMERY, LLC 334-396-5105

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Get complete member information at montgomerychamber.com/directory March 2010 Montgomery Business Journal

ECONOMIC INTEL 2010 Begins with Slight Increase in Food Prices MONTGOMERY – Shoppers who filled up on black-eyed peas for luck and greens for prosperity at the start of the New Year may find themselves thankful for adhering to this Southern tradition. Alabama shoppers experienced a slight increase of 1.5 percent, or 78 cents, this month for 20 basic market items, which had a total average cost of $52.37, according to the latest results from the Alabama Farmers Federation’s monthly food price survey A significant portion of this increase came from several items in the meat case. Pork chops were up 13 cents to $3.27 a pound; T-bone steaks were up 34 cents to $7.90 a pound; ground beef was up 5 cents to $2.31 a pound; chuck roasts were up 7 cents to $3.18 a pound; and chicken breasts were up 8 cents to $2.11 a pound. Whole fryers stayed the same at $1.19 a pound. While most meats were higher this

Montgomery Business Journal March 2010

month, shoppers did ﬁnd savings on bacon and Boston butts. Bacon was down 15 cents a pound to $3.93, and Boston butts were down a penny to $1.60 a pound. Eggs were down to $1.62 a dozen, a savings of 4 cents from December. News on the produce aisle was a little better this month as prices decreased on average 3 cents. Lettuce was up 7 cents to $1.66 a head, and sweet potatoes were up 9 cents a pound to 84 cents. Savings found on tomatoes and red potatoes made up for the increase on the other vegetable staples. Tomatoes were down 13 cents this month to $1.96 a pound, while red potatoes were down 15 cents a pound to 74 cents. In the dairy case, shoppers looking for ice cream and butter found an increase in prices, while those who bought cottage cheese noticed a slight decrease. Ice cream increased 17 cents to $4.16 a half-gallon and butter increased 26 cents to $3.62 a

pound. Cottage cheese decreased a penny to $2.63 a pound. Shoppers in the market for milk this month noticed no change, as milk remained $2.94 per half-gallon. Though Alabama’s food prices increased this month, prices nationwide have decreased for the ﬁfth consecutive quarter and are signiﬁcantly lower than one year ago, according to the latest survey from the American Farm Bureau Federation. Regional reports collected by volunteer shoppers throughout the state showed the market basket averaged $50.58 in Northwest Alabama, $51.05 in Northeast Alabama, $52.92 in Central Alabama and $55.71 in South Alabama. Alabama Farmers Federation, a member of the American Farm Bureau Federation, is the state’s largest farm organization.

2010 Montgomery Building Starts Building Permits

Building Valuations

Current Month JAN 10

Last Month DEC 09

Last Year JAN 09

Current Month JAN 10

Last Month DEC 09

Last Year JAN 09

New Construction

$2,456,000

$1,661,800

$1,404,000

Additions and Alterations

$4,225,800

$6,062,000

$2,593,000

Others

$722,600

$190,600

$2,878,800

Total

$7,404,400

$7,914,400

$6,875,800

Source: City of Montgomery Building Department

Montgomery Metro Market Home Sales Current Month DEC 09

Last Month NOV 09

Month/Month % Change

Last Year DEC 08

Year/Year % Change

260

293

-11.26%

254

2.36%

2,892

Median Selling Price

$128,848

$124,500

3.49%

$124,603

3.41%

$124,447

Average Selling Price

$146,808

$143,610

2.23%

$143,327

2.43%

$144,475

-4.30%

2.30%

146

2,954

0.00%

3,074

-3.90%

36,329

Total Home Sales

Average Days on Market Total Homes Listed

Statewide DEC 09

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

Unemployment Data Civilian Labor Force

Unemployment Rate

Dec p 2009

Nov r 2009

Dec r 2008

Dec p 2009

Nov r 2009

Dec r 2008

163,704

164,460

170,858

9.90%

9.60%

6.60%

Autauga County

23,353

23,428

24,331

9.50%

9.00%

5.90%

Prattville City

15,027

15,093

15,739

7.70%

7.40%

4.70%

34,108

34,290

35,851

9.00%

8.70%

6.30%

4,678

4,718

4,874

15.60%

15.70%

12.40%

101,564

102,025

105,803

10.10%

9.80%

6.60%

91,969

92,432

95,881

9.90%

9.60%

6.50%

502,532

506,045

524,807

9.80%

9.40%

5.70%

95,045

95,893

98,636

12.00%

11.80%

7.40%

196,356

197,158

203,217

8.10%

7.60%

4.80%

86,081

86,436

89,428

7.70%

7.30%

4.80%

181,479

181,924

186,233

11.30%

10.80%

6.40%

85,170

85,406

87,443

11.50%

11.00%

6.70%

2,063,619

2,072,643

2,153,918

10.60%

10.20%

6.50%

152,693,000

153,539,000

154,349,000

9.70%

9.40%

7.10%

Montgomery MA

Elmore County Lowndes County Montgomery County Montgomery City Birmingham-Hoover MA Birmingham City Huntsville MA Huntsville City Mobile MA Mobile City Alabama

Not Seaonally Adj.

United States

Not Seaonally Adj.

p Preliminary r Revised The numbers are not seasonally adjusted. Estimates prepared by the Alabama Department of Industrial Relations in Cooperation with the Bureau of Labor Statistics, based on 2008 benchmark. Montgomery MA is Augtauga, Elmore, Lowndes and Montogmery counties. Birmingham - Hoover MA is Bibb, Blount, Chilton, Jefferson, St. Clair, Shelby and Walker counties. Huntsville MA is Limestone and Madison counties. Mobile MA is Mobile County .

March 2010 Montgomery Business Journal

Montgomery Regional Airport

Airline Fares

Current Month JAN 10

Last Year JAN 09

Yea/Year % Change

945

879

7.5%

5,790

5,404

7.1%

Enplanements

12,737

9,462

34.6%

Deplanements

13,201

10,072

31.1%

Total Passengers

25,938

19,534

32.8%

Air Carrier Operations Total Operations

Source: Montgomery Regional Airport (MGM) Dannelly Field

Hyundai Sales VEHICLE

Roundtrip airfare comparisons from Montgomery, Birmingham and Atlanta airports to key destinations. Destination

Montgomery Birmingham

Atlanta

Baltimore (BWI)

$206

$226

$149

Boston (BOS)

$266

$286

$190

$149

$154

$167

Chicago (ORD)

$281

$336

$229

Cincinnati (CVG)

$254

$219

$237

Dallas/Ft Worth (QDF)

$287

$267

$249

Denver (DEN)

$326

$393

$269

Detroit (DTW)

$271

$309

$179

Charlotte, NC (CLT)

Jan-10

Jan-09

Accent

5,747

3,560

Houston (QHO)

$303

$295

$237

Sonata

5,306

8,508

Indianapolis (IND)

$269

$238

$217

Elantra

7,690

3,307

Las Vegas (LAS)

$453

$424

$395

Tiburon

390

Los Angeles (LAX)

$316

$412

$289

Santa Fe

7,204

5,024 Memphis (MEM)

$429

$388

$194

269

294

2,216

974

Miami (MIA)

$395

$459

$289

222

Nashville (BNA)

$207

$172

$290

Veracruz

401

1,177

New Orleans (MSY)

$352

$350

$290

Genesis

1,670

1,056

New York (JFK)

$250

$300

$219

30,503

24,512

Orlando (MCO)

$328

$272

$251

Philadelphia (PHL)

$315

$243

$219

Pittsburgh (PIT)

$241

$286

$170

St Louis (STL)

$271

$240

$219

Seattle (SEA)

$342

$368

$310

$1,220

$1,341

$1,232

Tampa (TPA)

$356

$272

$219

Washington DC (DCA)

$286

$189

Azera Tucson Entourage

Total Source: Hyundai Motor America

Seoul, Korea (SEL)

Date of travel: March 15-21. Date of pricing: Feb. 7, 2010. Source: travelocity.com

Montgomery Business Journal March 2010

National Retail Sales Target

Costco

JCPenney

Kohlâ&#x20AC;&#x2122;s

Gap

CVS

Rite Aid

(Monthly)

Year

January

2010

0.5%

2009

-3.3%

2010

0.0%

2009

4.0%

2010

-4.6%

2009

-16.4%

2010

6.5%

2009

-13.4%

2010

2.0%

2009

-18.0%

2010

4.9%

2009

3.6%

2010

-2.1%

2009

1.0%

U.S. same store sales compiled from 10-Q and 10-K forms (excluding fuel sales) Source: RetailerDaily.com

March 2010 Montgomery Business Journal

Quarterly Reports QUARTERLY REVENUES

NET INCOME

EARNINGS PER SHARE

EARNINGS ESTIMATE

YEAR-AGO REVENUES

YEAR-AGO NET INCOME

Starbucks

$2.7B

$241.5M

$0.28

N/A

$2.6B

$64.3M

McDonald’s

$6.0B

$1.2B

$1.11

$1.02

$5.6B

$985.3M

Proﬁt rose 23%

Regions Financial Corp

N/A

(-$606M)

(-$0.51)

(-$0.34)

N/A

(-$6.2B)

Opened 246,000 new accounts in the quarter

BB&T

N/A

$194M

$0.27

$0.21

N/A

$307M

Earnings declined on loan provision

Tractor Supply Co.

$862.5M

$38.3M

$1.04

$0.88

N/A

$24.7M

Proﬁt surged 55%

Energen

$362.8M

$58.6M

$0.81

$0.87

$375.8M

$65.3M

Earnings fell 10%

$3.5B

$250.9M

$0.31

$0.30

$3.8B

$185.6M

Proﬁt jumped 35%

$142.6M

$5.5M

$3.82

N/A

$130.7M

(-$3.4M)

One-time investment gain of $312M

$6B

(-$101M)

(-$0.24)

(-$0.23)

$6.6B

(-$1.8B)

Sales dropped 8%

$645.4M

$50.2M

$0.37

$0.34

$634.1M

$44.43M

Proﬁt increased 13%

$3.4B

$216M

$0.50

$0.52

$3.4B

$204M

Operating proﬁt rose 24% in China

N/A

$1.1M

$0.02

N/A

(-$3.5M)

Net interest revenue up 11.9%

$781.9M

$18.3M

$0.21

$0.22

$949.4M

NAME

(Alabama Gas Co.)

Southern Co.

(Alabama Power)

Steak n Shake International Paper Burger King Yum Brands

(Taco Bell, KFC,

Pizza Hut, Long John Silver’s)

BancTrust Financial Group Brinker International

(Chili’s)

NOTABLE Operating margin increased from 5.8% to 17.3%

(-$21.8M) Revenue dropped 18%

Source: PR Newswire and Charles Schwab wire services

Sales Tax Collections Current Month JAN 10

Last Year JAN 09

Year over Year % Change

Montgomery County

$3,707,673

$3,948,060

-6.09%

City of Montgomery

$8,418,155

$8,326,550

1.10%

Pike Road

$185,420

$44,654

Autauga County

$673,695

$667,842

0.88%

$1,524,835

$1,547,930

-1.49%

Elmore County

$912,711

$854,995

6.75%

Wetumpka

$505,602

$520,180

-2.80%

Millbrook

$535,700

$492,876

8.69%

Prattville

Sources: Montgomery County Commission, City of Montgomery, City of Pike Road, Autauga County Commission, City of Prattville, lmore County Commission, City of Wetumpka, City of Millbrook

Montgomery Business Journal March 2010

315.24%

March 2010 Montgomery Business Journal

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