2014 October/November Issue of 850 Business Magazine

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From Left: Cindy Eade, Alice Collins, Bentina Terry, Kitty Whitney, Betsy Couch, Jennifer Jenkins, Lisa Barnes, Melanie Lee, Valerie Mincey, Angie Hill



EVEN AFTER GOING 14-0, THERE’S STILL ONE VICTORY WE HAVE YET TO ACHIEVE.

Photo by D’Vel Photography / Jeremy Esbrandt Design and Edit by Joseph Johnson

Last season, FSU captured its third national championship and Seminole fans everywhere rejoiced. But with your help, our biggest victory still lies ahead. Together, we can help Ethan Fisher, who will soon need a bone marrow transplant, and others like him by helping to fund research leading to new treatments, techniques and, one day, a cure for Fanconi anemia. TEXT FA TO 50555 TO DONATE $10 OR VISIT KIDZ1STFUND.COM

TEXT FA TO 50555 TO DONATE $10 OR VISIT KIDZ1STFUND.COM

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850 Magazine October – November 2014

IN THIS ISSUE

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46 FEATURES 33

At the Pinnacle of Success They represent a wide range of success stories across the 850 region, working in places like an HIV clinic, a major power corporation, a farm and a car dealership. Meet the first recipients of the Pinnacle Award. By Linda Kleindienst

PHOTOs BY Matt Burke (p. 46) and courtesy First Commerce Credit Union (P. 22)

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Locked and Loaded Gun shows abound across Florida, drawing in thousands of customers and dozens of vendors each year. Buying are young and old, male and female, longtime gun enthusiasts and firsttimers. By Jason Dehart

Face Off Gov. Rick Scott and his challenger, former Gov. Charlie Crist, talk about their vision for Northwest Florida’s economic development. By Linda Kleindienst

On the Cover: The first winners of the Pinnacle Award are photographed at Capital City Country Club in Tallahassee by Dave Barfield of Impact Visual Media.

In This Issue

Corridors

10 13 19 85 100

CAPITAL

From the Publisher Letters to the Editor News and Numbers Sound Bytes The Last Word from the Editor

92 Gulf Coast Tung Oil is a Leon Countybased business wagering that tung-oil production will once again become a viable industry for the Panhandle.

Emerald COAST

Departments

94 Michael Chou got into the restaurant business by accident but has brought Japanese culinary delight to the region.

THE (850) LIFE 17 Regina Jaquess is a pharmacist and world champion water skier.

Forgotten Coast

20 Don’t stagnate in your office.

96 Once a major contributor to the Apalachicola economy, the sponge industry is being rekindled.

Wi-Files

I-10

Leading Healthy

22 Apple Co-Founder Steve Wozniak talks about Apple, the future of computers and Artificial Intelligence.

THE BOTTOM LINE

98 Senior Dental Care, a company founded in Tony Layne’s spare bedroom in Blountstown five years ago, is now providing dental care to seniors in nursing homes in at least three states.

26 With the end of the year quickly approaching, the experts offer up some tips to get you ready for tax season.

Special Sections

Guest Column

89 What’s trending, what’s selling and what’s hot to buy in the 850.

28 Attorney Josh Aubuchon says business owners should get involved in politics.

Deal Estate

AN 850 BUSINESS MAGAZINE SPECIAL REPORT

2014 Bay County Business Journal

Special Report

57 Bay County Business Journal ECONOM IC DEV E LOPM E N T V I SION | A I R PORT TOU R I SM | HOU SI NG | SPORT S | E DUC AT ION M I L I TA RY | SE A FO OD | M E DIC A L | PORT

From courting new aerospace and aviation companies to reworking school curriculum to provide the best trained workers for high-paying jobs, Bay County’s economic development leaders show they are open for business.

850 Outreach The Jim Moran 30 Institute for Global Entrepreneurship congratulates the 2014 classes that are now ‘graduates’ of the Small Business Executive Program.

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THIS IS

THATplace Where the kids had as much fun jumping into the waves as they did jumping into their bunk beds.

This is the place the kids still talk about, where they played in the surf all day and swam in the indoor pool after dinner every night. There was so much for them to do between the beach, the pools and the Kids’ Club, they never would have slowed down if not for the bunk beds in our suite! Left to them, we’d return to this place every vacation. Maybe we will.

October – November 2014

850 THE BUSINESS MAGAZINE OF NORTHWEST FLORIDA

Vol. 7, No. 1

President/Publisher Brian E. Rowland

EDITORIAL Director of Editorial Services Linda Kleindienst Senior Staff Writer Jason Dehart Staff Writers Chay D. Baxley, Lynda Belcher, Zandra Wolfgram Contributing Writers Lazaro Alemen, Joshua D. Aubuchon, Steve Bornhoft, Lauren Gillespie, Karen Murphy, Todd Patkin, Greg Rohrer, Scott Rusin, Dustin Terry Editorial Interns Mikaela McShane, Katie Mueller, Megan Williams Production Specialist Melinda Lanigan CREATIVE Creative Director Lawrence Davidson Production Manager/Network Administrator Daniel Vitter Senior Art Director Saige Roberts Art Director Jennifer Ekrut Publication Designers Shruti Shah, Rebecca Sumerall Advertising Designers Jillian Fry, Amanda Hartsfield Staff Photographer Matt Burke Contributing Photographers Bryan Anselm, Dave Barfield, Michael Bulbenko, Meredyth Hope Hall, Scott Holstein, Kay Meyer, Nicki Ritcher SALES, MARKETING & EVENTS Marketing and Sales Manager McKenzie Burleigh Director of New Business Daniel Parisi Ad Services Coordinator Lisa Sostre Account Executives Rhonda Murray, Darla Harrison, Tanya Heath, Lori Magee, Tracy Mulligan, Linda Powell, Paula Sconiers, Chuck Simpson, Alice Watts, Drew Gregg Westling Marketing and Sales Assistant Christie Green OPERATIONS Administrative Services Manager Melissa Tease Events AND MEDIA Coordinator Lynda Belcher CLIENT Projects Coordinator Kerri Bryan Staff accountant Josh Faulds Accounting assistant Tabby Hamilton Receptionist Tristin Kroening

+1 800 367 1271 | +1 850 267 9500 HiltonSandestinBeach.com #HiltonSandestin #ThatPlace

WEB Digital Services Manager Carlin Trammel Digital Services Coordinator Jennifer Ireland Digital Services Producer Chelsea Moore 850 Business Magazine 850businessmagazine.com, facebook.com/850bizmag, twitter.com/850bizmag, linkedin.com/company/850-business-magazine Rowland Publishing rowlandpublishing.com SUBSCRIPTIONS A one-year (6 issues) subscription is $30. To purchase, call (850) 878-0554 or go online to 850businessmagazine.com. Single copies are $4.95 and may be purchased at Barnes & Noble in Tallahassee, Destin and Pensacola and in Books-A-Million in Tallahassee, Destin, Ft. Walton Beach, Pensacola and Panama City and at our Tallahassee office. 850 Magazine is published bi-monthly by Rowland Publishing, Inc. 1932 Miccosukee Road, Tallahassee, FL 32308. 850/878-0554. 850 Magazine and Rowland Publishing, Inc. are not responsible for unsolicited manuscripts, photography or artwork. Editorial contributions are welcomed and encouraged but will not be returned. 850 Magazine reserves the right to publish any letters to the editor. Copyright October 2014 850 Magazine, Inc. All rights reserved. Reproduction in whole or part without written permission is prohibited. Member of three Chambers of Commerce throughout the region.

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is your local business Internet and phone provider

• LOCALLY OWNED AND OPERATED • NO AUTO ATTENDANT • BUSINESS TELEPHONE AND INTERNET SERVICE • LONG DISTANCE • TELEPHONE SYSTEM CONSULTING • FIBER OPTICS • HURRICANE-PROOF DATA FACILITY FOR COLLOCATION • WEB AND EMAIL HOSTING

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3 4 1 1 C A P I TA L M E D I C A L B LV D . TA L L A H A S S E E , F L | 2 2 2 . 0 2 2 9 | W W W. E L E C T R O N E T. N E T 850 Business Magazine

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From the Publisher

So True-isms

Do you have moments to share from your life’s ups and downs? Whether it be your business or personal life, there are situations and experiences that often occur that can either bring a chuckle and smile to your face or a disappointed frown. After running through many such experiences that have passed through my swing zone, I did a poll of friends and associates who added many more. You may not relate to them all, however my bet would be that as you read most of them a name or situation will immediately flash across your personal radar screen.

ing to jump in and help in any task, has the positive “can do” attitude and is a pleasure to work with. T hat one song that brings you back to the happiest, or maybe the saddest, time of your life. T he family member that, if he or she weren’t directly connected to you by DNA or marriage, you would have nothing to do with. T hat pair of shoes you cannot part with because they are just so darn comfortable. How about that TV ad when they scream at you to “buy now” because you’ll never be able to get it cheaper than this weekend. Really? T hat one traffic light you pass through nearly every day that is red 99 percent of the time. T he clients who don’t think they should pay their bill until you have called them six times — and then make promises they never fulfill or are indignant you asked for “your” money. T hat employee who, when you do the research, you find that 95 percent of their sick days occur on a Friday or Monday. Funny how weekends and illness coincide. T hat one gas station you pull in to that never has receipt paper, and the flow of gas to your tank runs at the speed of a melting glacier. T hat one charitable or political organization that just keeps calling for more and more, and you don’t have the gumption to say “enough” or aren’t wise enough to know it’s a sales call from a boiler room. T hat one red ant colony that you’ve spent $50 to eradicate with “guaranteed” products — only to

▪ ▪

▪ ▪

▪ ▪

If you have any more of these you would like to share, drop me a line and we’ll print a list sometime in 2015.

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find the red posse raised its mound in another inconvenient location. T hat business or community leader who always says the same thing when you run into them, like “good to see you” or “so, how is your business.” Do they really want to know? T hat friend or couple who when you are out to dinner suddenly develops arm paralysis when the server presents the check to the table. Or, better yet, you’ve had them over for dinner or parties for years, and they have never reciprocated. T hat friend who you have not seen in years but when you do, you start to talk and it suddenly seems like yesteryear. You are standing by the casket at the funeral home and someone says, “Doesn’t she look good?” And you think, “She’s dead and looks awful,” but don’t say it. Y ou’re in the salad bar line and the person in front of you inspects every leaf of lettuce and associated condiment while they build their Taj Mahal. Y ou have that employee who finds it impossible to take responsibility for an error in job performance and always points the finger of blame at others. W hen hosting dinner for business, your dining companions always order the most expensive meal and appetizer. (This is also known as being “surfed and turfed.”)

Brian Rowland browland@rowlandpublishing.com

Photo by SCOTT HOLSTEIN

▪ T he consistent team player on the staff, always will-


Security for your business

e c c A • s m e t Security Sys

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850businessmagazine.com NORTHWEST FLORIDA WEDDINGS & Honeymoon Destination Magazine

Bridal Show The

PRESENTS

H A P P I LY E V E R A F T E R B E G I N S

ON THE GREEN AT GULF PLACE , SANTA ROSA BEACH

Saturday the 1st of November 2014

EXTRA CONTENT ONLINE ONLY

Flip Books: View this issue in a digital book format, and search our Archive section for past articles dating back to 2008.

Video!

» Pinnacle Awards video

Archived Stories: Peruse our vast archive of articles.

and audio: Listen to the

entire awards presentation and watch clips and a recap of the luncheon and photo shoot.

Calendar of Events: See what’s going on around Northwest Florida. Deal Estate Listings: View the latest real estate happenings and listings.

EVERY HOUR ON THE HOUR F R O M N O O N TO F O U R O ’C LO C K

Meet and mingle with some of the regions top wedding planners, designers and vendors. For more information, contact Tiffani Salinas at 850.502.9233 or email gulfplaceevents@outlook.com.

Also Online

» Gun Show Photoshoot

Go behind-the-scenes of the making of the gun shows photoshoot.

Restaurant Listings: Browse our listings of select Northwest Florida restaurants.

V E N D O R S PAC E AVA I L A B L E

S P O N S O R E D

B Y

PRESENTING SPONSOR

Connect with us …

No matter what device or social media, we want to be a resource to you. Find 850 Business Magazine in all the best spots. And be sure to join our group on LinkedIn and engage with other business professionals in the area.

& Honeymoon Destination Magazine

Sign up for more info Want to know the latest from 850 Business Magazine? Sign up for our free e-newsletter and get updates about our website, video previews and additional offers.

THE GREEN

850businessmagazine.com/Newsletter-Mailing-List/

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FROM THE MAI LBAG In looking over this month’s issue of 850 (August/September), I wanted to tell you that it just keeps getting better! It’s so nice to look through the magazine and see our region represented. Northwest Florida has a great story to tell, and I appreciate you helping promote the 850. Which brings me to my question — how can we have some of our local businesses featured in the publication? Today alone I’ve had two Chamber members comment on things they saw in this issue, and I’d love to be able to share stories of some of our leaders, innovators and successes. Kristy H. Terry Executive Director, Calhoun County Chamber of Commerce

that recently opened a location in Tallahassee and Perry. We are a 44-year-old familyrun business, with our main office in Mobile. We are counting on the bricks and mortar business to be around for years to come. I enjoyed your story about great loyal customers as well.

Do you have a story idea for 850? Know a business or a business leader who deserves to be profiled? Noticing certain trends in business that you would like to learn more about? Do you have business questions you would like a professional to answer? Want to tell Northwest Florida about promotions, honors and special happenings in your region? Please send your suggestions/ questions/news to Editor Linda Kleindienst at lkleindienst@ rowlandpublishing.com. Follow 850 Business Magazine on Facebook, Twitter and LinkedIn. Join the 850 Business Magazine Group on LinkedIn, and start a conversation!

Melissa C. Beard Beard Equipment Co.

Congratulations on a great issue of 850! Jeanette DeDiemar Associate Vice President, Florida State University

I thoroughly appreciated “Custom-

ers Bear Responsibilities, Too” (From the Publisher, April/May 2014). Our family owns a John Deere construction equipment distributorship

Love 850! Jeff Rogers, Pensacola

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Melinda Lanigan, production specialist Lanigan has worked for Rowland Publishing since 1995 (with a five-year hiatus) and is known as the “jack-of-all-trades” in the company, working in every department over the years — from answering the phone to running the production department to counting the beans. Her latest endeavor is copy editing — and her fingerprints can be found throughout this issue with every properly placed comma. She loves to spend time with her husband and two girls and pursuing her passion of playing and singing music and coaching her daughter’s softball team.

Dave Barfield, photographer Barfield has 20 years of professional experience including still photography, videography, graphic design and art direction. Before forming his own firm and relocating to Pensacola, he served as the art director for Ron Sachs Communications (now Sachs Media Group) as well as the staff photographer for the National High Magnetic Field Laboratory. Barfield is currently producing a book of photography to raise awareness for homeless issues. To see Barfield’s work visit ImpactVisualMedia.com.

Matt Burke

Dave Barfield

EGG Photography

CONTRIBUTORS

Lynda Belcher, writer Belcher is the Events and Media Coordinator for Rowland Publishing, tasked with the coordination and production of Tallahassee Magazine events such as Top Salon, Best of Tallahassee and Top Singles. She has been a freelance writer for more than 15 years and is author of the book “101 Plus Size Women’s Clothing Tips.” Belcher, who is the prime writer of the Deal Estate section of 850, lives in Tallahassee with her husband and three beautiful daughters.

Interested in writing for 850? Send your resumé and some writing examples to Editor Linda Kleindienst at lkleindienst@rowlandpublishing.com.

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LONG LIVE LOCAL FREEDOM In a lot of businesses, nothing happens until something moves. That’s why so many eets, municipalities, and owner operators depend on First Call Truck Parts. And it’s why Joe depends on us. First Commerce helps Joe keep his business moving forward by giving him the systematic efďŹ ciency of a large bank without the impersonal big bank feel. As one local company helping another, we share Joe’s commitment to personal service and great relationships. And with First Commerce removing unnecessary speed bumps, Joe has the freedom to focus on the road ahead.

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Executive Mindset

) Life The (850    S urvive and Thrive

Making A Splash Regina Jaquess, Santa Rosa Beach Member, USA Water Ski Team Owner/Pharmacist, Emerald Coast Compounding Pharmacy

H

The Early Days

Compassion

In an employee

My first memories on the water are with my family. My parents were into competitive water skiing, and ever since my sister and I were babies we were in the boat. I was two years old when I learned how to stand up on skis by myself.

One of my favorite things about my job is my clients. Compounding specifically for a client is unique because the client, the physician and the pharmacist are involved in every step. We even compound for animals.

I look for someone that has great work ethics. A compound pharmacy has a fast pace and demands accuracy. I am thankful for the crew I have now!

Interest I knew I wanted to be involved in the medical profession from an early age. I was always into math and science, and so medicine seemed to be a perfect fit for my passion for science.

Photo by Matt Burke

Professional Success I excel at my work because I have a passion for compounding (developing a particular product to fit the unique need of a patient) and truly care about my clients.

To unwind after a long day at the office I ski.

Healthful Living Taking care of your health is so important. I work out with the best, Glen Cruz. And thanks to Garden of Life, I take my vitamins every day.

For the Future Having a successful practice that has made a difference in the community is my ultimate business goal. My skiing goal is to stay strong, stay healthy and train hard.

aving an accomplished career and successful business might be enough for some people, but Regina Jaquess isn’t your typical overachiever. “I pretty much have two professions,” blushed Jaquess. “I’m a professional water skier, and I’m also a pharmacist.” For Jaquess, a laidback Georgia gal who relocated to Santa Rosa Beach in her teens, life is all about going with the flow — even if that means getting a doctorate degree in pharmacy whilst breaking world records on the water, one splashing run at a time. On the clock, her energy revolves around keeping her patients healthy by holding her company, Emerald Coast Compounding Pharmacy, to the highest standards of medical professionalism. In her “free time” though, Jaquess is dedicated to absorbing every thrilling second of what her life as a top competitor in the world of women’s water skiing has to offer. She lives on a lake and trains on that lake every day. A member of the USA Water Ski Team and a five-time world champion, Jaquess holds multiple records on the water. As her aquatic abilities and gold medals continue to pour in, Jaquess insists on staying true to her roots and giving thanks to those who helped her become a champion. “My dreams all started falling into place,” recalled Jaquess. “They’re the best and my biggest fans — my family.” – Chay D. Baxley

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Every Friday Night The Stars Shine on PBS Featuring

NATHAN LANE AUDRA McDONALD TONY BENNETT LADY GAGA MICHAEL FEINSTEIN EMMA THOMPSON ALABAMA SHAKES …and many more!

HOSTED BY

Kristin Chenoweth FRIDAYS

Sept 26–Dec 5 8pm pbs.org/arts Guest List Subject to Change

FALL 2014 SEASON | 850.644.6500 OPENINGNIGHTS.FSU.EDU

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#pbsarts

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Executive Mindset

Business Arena Agriculture by the Numbers

A Growing Economy It’s no surprise that Florida’s year-round good weather puts it in a good position to grow fruits and vegetables. But did you know that farming and the processing of Florida produce contributes more than $7.65 billion to the state’s economy? In other words, it’s big business. Indeed, agriculture ranks right behind tourism as one of Florida’s top two industries.

195 47,500 300 Average acreage of a Florida farm

The number of commercial farms in Florida that cover 9.25 million acres.

(Florida ranks 18th in the U.S. in number of farms, 30th in total farmland.)

Florida provides

more than half of the U.S. citrus production. (California

65%

is next at 32 percent.)

The number of commodities grown on Florida farms.

In 2012, Florida had more than $4 billion in international agricultural exports, making it the 7th largest state exporter of ag products abroad. (Main importers included

Photo by content.clearchannel.com

Canada, with more than $960 million, the Netherlands, the Bahamas, the Dominican Republic and Panama.)

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1 Florida is the top national producer of oranges, grapefruit, squash, snap beans, cucumbers, sweet corn and watermelons.

2 Florida’s national ranking for production of bell peppers, tomatoes, tangerines, cabbage, strawberries and peanuts.

The Fresh From Florida Ford was driven by Dakoda Armstrong of Richard Petty Motorsports in the NASCAR Nationwide series. It was also driven by Petty driver Aric Almirola.

3 Florida’s national ranking for the value of honey production.

Number of the Fresh From Florida Ford. This year the Florida agriculture marketing campaign was featured in Nationwide races run at Bristol, Charlotte and Daytona. The Fresh From Florida logo also made a prime time appearance in Darlington on the NASCAR Sprint series.

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Executive Mindset

Leading Healthy Tips to keep you Fit

Desk Workout Just because you’re sitting doesn’t mean you can’t be working out, says physical therapist Scott Rusin.

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Don’t Just Sit There! There are ways to stay fit while you work

Y

our job demands long hours, and most of it is sitting behind a desk or sitting in meetings. Not to mention, you had to sit in your car and drive to and from work to later go home and sit down to eat dinner. You’re exhausted after and give in to any thought of exercise. Be aware, your health is at risk. Alpa Patel’s 2010 study, “Leisure Time Spent Sitting in Relation to Total Mortality in a Prospective Cohort of U.S. Adults,” published in the American Journal of Epidemiology, found “a common link between physical inactivity and cardiovascular disease mortality even after adjusting for smoking, body mass index and other factors.” Got your attention? Yes, sitting at a desk all day is now being compared to the mortality rates of those who smoke. Not to mention, the harmful effects on your posture, which leads to muscle imbalance and later back, neck and shoulder pain. The computer has provided physical therapists with job security because of the amount of people affected. What to do? There are several things we can do, most of which won’t get you fired. You obviously will have a difficult time getting your boss to buy you a treadmill desk, so a cheaper alternative would be the DeskCycle Desk Exercise Bike Pedal Exerciser by DeskCycle (the long way of saying a bike that fits under

Photos by MATT Burke

By Scott Rusin

your desk, or just the pedals). You can find it on Amazon for $150 — a small price to pay for your health. Other options include taking short breaks and walking the staircase a couple times, going for a walk at lunch, doing cardio exercises in place (jumping jacks, jogging, mini-squats, etc.). Just close your office door!

Help Your Posture Your office doorframe is a good prop for an exercise that will help eliminate neck and shoulder discomfort.

Posture is also important. Prolonged sitting causes atrophy of your postural muscles and tightness of the large muscle groups that round your shoulders and tilt your pelvis forward, both of which are major contributors to upper and lower back pain. To improve neck and shoulder comfort, step into the door frame of your office, put your elbows on the frame at shoulder

height, gently lean in and feel a stretch in your shoulders and chest (don’t stick your head out like E.T.), hold for 30 seconds at least three times twice during the day. You can also use a TheraBand. Grab it palms up with both hands at shoulder width and rotate your arms outward, maintaining a 90-degree bend at your elbow while squeezing your shoulder blades together. Do not use your upper traps (shrug) to compensate; squeeze your shoulder blades down and back for high repetitions greater than 30. TheraBands are great for your office, because they do not take up any space and can give you varying resistance to be effective with several exercises. No TheraBand? Sit back against the wall with your knees at 90 degrees and just hold for as long as you can — or just simply sit and stand from your chair until you fatigue. It is easy to give in to the long hours, but you will find yourself more efficient at your job and at life if you get active. Take care of your body — it’s the only one you get!

Scott Rusin is the director of physical therapy services at Sandestin Executive Health and Wellness Center in Miramar Beach. You can read more of his health tips at 850health.com or scottrusin.com and get more exercise tips by emailing him at srusincscs@yahoo.com.

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Executive Mindset

Wi-Files Making technology history

A Chat With

Steve Wozniak The man who shaped the computer industry

By Linda Kleindienst

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Photos By Michael Bulbenko (headshot) and courtesy of First Commerce Credit Union

M

ention the word “Apple” and the name Steve Jobs likely comes immediately to mind. But while Jobs was the public face marketing the computer giant, Steve Wozniak was the engineering genius — and equal partner — behind him. Together, with an equal third partner who funded their work, they took Apple from a garage to being the second biggest information technology company in the world. Wozniak, a Silicon Valley icon who helped shape the computing industry with his design of Apple’s first computers, will be in Tallahassee on Nov. 5 to talk about that journey and his own story as part of the Power Forward Speaker Series, co-presented by First Commerce Credit Union and the Florida State University College of Business. While he still receives a “small paycheck” from Apple, Wozniak (nicknamed “Woz”) is currently chief scientist for Fusion-io and became a published author with the release of his New York Times best-selling autobiography, “iWoz: From Computer Geek to Cult Icon.” Earlier this year he was honored with the Hoover Medal, an American engineering prize given for “outstanding extra-career services by engineers to humanity.”


Wozniak, who permanently left Apple in 1987, recently took time out to speak about Apple, his career, his advice to young entrepreneurs and the future of the computer industry. The Apple ‘Connection’ “I’m not particularly tied to them, like what I say could get me fired. I speak honestly and openly so they might hear things from me that add to their own thinking now and then. You know, like directions products could go in.” Apple’s Future Holds No Dogs “Taking phones with keyboards and turning them into a flat panel, that sort of change doesn’t happen very often. It doesn’t happen every year. “Where does Apple get its greatness? Where do they get the royalties from? It’s from brand recognition. And where does that come from? It’s not just the name Apple. It’s what Apple has done over time, which is make one great product after another after another, not take sloppy little intermediate steps that aren’t excellent products. There are no real crappy products; no dogs come out of Apple. “I think great new product ideas are going on inside of Apple. The iPhone was totally unexpected. You develop products in secret. You don’t show them to the rest of the world while you’re doing them or talk about them too openly. That’s the way to get the really great products. “Apple isn’t going to put out something great that can sell. It’s got to be like Steve Jobs used to say, it’s got to be insanely great. It’s got to grab everyone by surprise and be the finest in its class if it’s a new idea. I’m sure that’s going on quite a bit behind the curtains.” Looking Back “My mentality is, don’t look back. I had such a good mind at thinking out the

right solutions given the resources I had; every step I took was A-plus steps in those days. And there’s not a thing I would change now. “I came out with our first computer language, but it didn’t deal with decimal points like dollars and cents. I was working on a computer language that would add that, and then Bill Gates walked in the door and already had one completed that would run on our computer. We just had to add some touches to it. Turned out the Apple II computer (introduced in 1977) was the only successful product in our first 10 years.” Advice to Young Entrepreneurs “First of all, it takes a lot of discipline and a lot of professionalism, which you don’t have when you are young. Steve and I were very young, and our funder (Michael Markkula) was really the leader who told us how to establish a company, what sort of people we had to hire, how much expense should go into which department. He really established the business as a business. That was crucial to us. You need not just engineering, but you need marketing, you need operations, you need

A commercial hit Steve Jobs, John Sculley and Steve Wozniak present the Apple II computer in 1984.

somebody overseeing the whole thing. “Ideas aren’t worth that much because 10,000 people in the world are having the same idea as you. Go and make working models. Be a builder. Actually make things. If you are more a thinker … you’d better link up with someone technical, maybe an engineering student, who can build some things and get some demos, even if it’s just a demonstration on a computer screen. Don’t raise money based just on ideas. “Don’t go after products you think are going to sell and be good for other people in the world. Go after products you want yourself. When it comes from inside your passion, your heart, that’s when you get real great products and the big successes in life and business. “You really need more than one person to be successful in the end. Don’t jump at it because you have a good idea and can convince someone with money to put a little in. Get further along the curve. “Be willing to take a job. When you are young you have such great mental

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Wi-Files

Silicon Icon Steve Wozniak, the engineering brain behind Apple, waited 20 hours in line to be the first Apple customer at the Los Gatos Apple store to buy the new iPhone 4S.

Jobs, Wozniak and the Beginning “The company was built by that third party, an investor, who actually owned as much of Apple as Steve and I did, but you never hear about him because he wasn’t the young guy, the young guy who had no money. “When we did start, I was the engineer. I was not a good person to talk to the press. I avoided them. I did not want to be the face of the company. Steve Jobs, it was a very strong idea of his to be the face of the company, and in the end he communicated to people about why our products, our computers were going to change their life. It was a very important

role. Understanding the customers in my mind is more important than the engineering. His role was critical.” Handling Failure “I had virtually no failures in my life. I was one of those lucky guys that was so advanced in certain areas, electronics, I never had to worry about a job from when I got out of high school. I was designing the hottest products of the time without a college degree as an

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engineer at Hewlett Packard. I got to design some of the newest technologies in the world and the country. “When the Macintosh failed, our stock dropped almost in half in a week, and if you are in the business world you know how critical that is. Jobs didn’t have the execution abilities to work the strategy to get out of it. To save the Macintosh, to save the company … it would take years of hard work to get it to work.”

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and physical energy. Put those into your own ideas in your own time; don’t waste your time away when you’re out of work just partying. You’re limiting your chances for success.”


Classroom Learning “When you get a job in engineering, you find out that almost nothing you took courses for at the university directly applies to the work you are doing. Academic learning is very important to have the skills to be able to make things, but it’s not the essence of where you follow your heart to create things like Apple and Google and Microsoft. They spark from things you are good at that are generally outside of school. “In high school I had an electronics teacher who was pretty unusual. He didn’t use prewritten books to teach his class. He wrote the lessons himself knowing where our heads were at, what we had in our minds and what equipment we had to use. He took a few bright students like myself every year and made agreements where we could go to local industry once a week and we’d be able to do something at a real company. That’s where I got to encounter a computer, because we didn’t have computers at our school. I got to program a computer. “As long as we have a class of 30 kids all learning the same thing, the problems aren’t

going to go away just because we have great computers. The school teaches them the measure of intelligence is the score you get on the test that comes Friday, it covers these pages in the book and the right answer is the same as everyone else’s. It’s not your answer from your thinking. “I taught for eight years, elementary to middle school … and I learned that class size is probably the biggest limiting factor in the way schools are run. I thought computers would be the teacher, but a computer doesn’t have a personality, it doesn’t attract a student to believe in it. It’s just a machine. If computers ever got an attractive personality where they seem to really care about the student, then we would have the possibility of revising education for everyone in a way that’s never been done, but I don’t have great hopes it’s ever going to happen. We’ve gone for too many hundreds of years with education being done the way it is. It’s hard to change something that huge.” Artificial Intelligence “I bought into it, and then I started thinking

about it. The ramifications were so negative. If computers can think faster than us, what is the human brain worth? What are humans worth? A company with no humans is going to outdo the company with humans economically — and the economics always seem to win. So, I started thinking against it. Computers aren’t going to get that smart, because we are at the limit of how much more intelligence we can put in a computer every year. “Computers have grown to become kind of intelligent — they got that smart because we’re able to make them smarter by a certain percentage every year, and this has been going on for about five decades. I think we’re at the end of that. I’m trying to be optimistic about the worth of humans, and I don’t want computers to get as smart as us. We’re at the limit of how smart we can make computers. We’re storing the mathematics of computers in as little as eight electrons. You can’t go much tinier. I think we’re getting at the end of where we can make the computer smart, and that’s good because people will still be in control.”

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Executive Mindset

Bottom Line Plan Now to Save Later

Plan Now To Save in 2015 It’s beginning to look a lot like tax season

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mart business owners and executives tackle end-ofyear tax planning like savvy shoppers take on Christmas: They’re organized, start early, save their receipts and don’t expect a mythical man in a red suit to do everything the night before April 15. Oh, and they save a lot of money doing it, too. At first glance, end-of-year tax planning is straightforward and simple. Do as much as you can to defer income and maximize deductions, write-offs and other tax breaks. But the details of federal tax law (if not the government itself) are the devil. Like the holiday deal-hunter, the savvy business executive knows each tax year is different. The hot new toy from last year is old news, as are many of the large tax breaks and write-offs. That makes paying attention to the granular level of tax laws all the more important. Should your company plunk down the cash for that heavy equipment in December to get that tax

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By Greg Rohrer

write-off and save more in the long run, or wait until the first quarter of 2015 as planned? What about new hires? Should you take on seasonal workers or try to get tax breaks by hiring military veterans full-time? Unfortunately, the gridlock in Congress is not making it easy to determine which tax incentives will be renewed and which will be allowed to expire. “There’s a lot of things we’re in limbo about; we don’t even know,” said Lisa Fairbanks, senior tax and accounting manager with Saltmarsh Cleaveland & Gund, a large Pensacola-based accounting firm. “It makes it hard to plan.” For example, a major tax break for companies investing up to $500,000 in heavy equipment has not been renewed and will be significantly reduced to $25,000 without Congressional action extending the break. The most dyed-in-the-wool political junkies can’t predict with certainty what tax breaks will be extended and which will fall by the wayside in a

dysfunctional Congress. Even apparent no-brainers like a break for hiring disabled workers hadn’t been acted upon by mid-summer. The Work Opportunity Tax Credit provides tax breaks for businesses that hire low-income or disabled veterans, welfare recipients and other target groups. Congress usually will extend the credit, but even the U.S. Department of Labor website won’t say so authoritatively. “At this time, we have no indication whether Congress may pass legislation extending authority for the program beyond December 31, 2013. However, in the past when the program’s authority lapsed, Congress has retroactively reauthorized the program back to the date of expiration,” the website states. Other business tax breaks, like first year depreciation or bonus depreciation, which allowed companies to write-off up to 50 percent of eligible property, and research and development credits also have yet to be extended by Congress. Of course, Congress could, and has in the past, extended tax breaks


Executive Mindset

“retroactively,” although it wouldn’t exactly aid the planning process for businesses. “Especially with it being a political year and a re-election year, the fluidity of tax planning is tremendous because of the uncertainty and what will take place in terms of Congressional action,” said Michael Kalifeh, CPA with Thomas Howell Ferguson, a Tallahassee-based firm serving non-profits, small and large business, insurance and other industry groups. “Businesses don’t operate retroactively; they operate in the here and now.” Adding to the tax uncertainty is the Affordable Care Act — the 2010 federal health care law more popularly known as Obamacare. The law was upheld by the U.S. Supreme Court in 2012, but recent conflicting appellate court decisions over the fate of subsidies and other rulings over a religious exemption to an employer mandate to offer plans that provide birth control have thrown more doubt on how the law will affect individual businesses. New rules issued by the Health and Human Services Department and delays in the implementation of some parts of the law can be tough for business owners to keep up with. “The rules keep changing,” said Steve Riggs, a partner with Carr, Riggs & Ingram, a large accounting firm based in the Southeast with offices across the Panhandle. The vagaries of Washington can be discouraging for business owners hoping to avoid zagging when Congress zigs, but there are ways of hedging against the known unknowns in D.C. One way is to stay in frequent and regular contact with tax advisors and attorneys. That may be difficult for executives busy running the day-to-day operations of their business, but it could make a great difference when it comes time to settle up with the IRS.

“In my experience, businesses are so busy focusing on running their business that they don’t have time to keep up with the ever-changing legal landscape of this,” Kalifeh said. Another way is to be prepared to act no matter what Congress does or doesn’t do. It might make more sense to ink that big deal before the end of the year given the right tax incentive. The same goes for large investments in research and development. But before business owners start getting lost in the sausage making of Congress, tax experts suggest they start with the basics. Riggs says one of the biggest mistakes business owners make is relying on their instincts instead of on sound, black-andwhite details of their finances. “A lot of them don’t have current, accurate financial statements,” Riggs said. “A lot of the time they go off what they think it is versus very detailed financial statements.” Closing a deal, buying equipment and investing in land or other big purchases at the end of the year before thinking through the tax implications are also among the biggest mistakes companies make. Kalifeh says buying office space or other types of real estate — or any other large investments — can have drastic consequences come tax season, especially if they aren’t planned for in advance. “A transaction when it’s completed is very difficult to do any kind of tax planning or tax minimizing. A lot of times at that point it’s done, and it’s just a matter of accounting for it,” Kalifeh said. The overarching advice from tax experts is to start early, be organized and plan ahead with tax season in mind. It could mean the difference between an unexpected bonus and a lump of coal when tax time rolls around.

Tax Planning Tips Start early: Large deals, investments, purchases (even small ones) can take time. Careful planning during end-of-year transactions can save lots of money in the long run. Be organized: Having

your finances in order is a no-brainer, for sure, but that’s what absentmindedness is all about. Check and double check to make sure all important documents are accounted for when it comes time to do the accounting, even for travel and entertainment expenses.

Get professional help: You’re smart, but

you’re not that smart. CPAs, tax attorneys and even insurance agents can help unlock tax breaks or deferments — not to mention prevent costly mistakes.

Start with the basics: Do the end-of-

year financial maintenance — give bonuses or make charitable donations to defer income as needed, set up retirement accounts that make sense for your business and maximize investments with tax breaks in mind.

Explore your options: Don’t just be

prepared, be proactive. There are myriad deductions or ways to defer income, including those you haven’t thought of or didn’t even know existed if you seek them out.

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Executive Mindset

Business Speak Mixing Business and Politics

Forming a PAC Can Be Good for Business By Joshua D. Aubuchon

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Photo Courtesy Holland & Knight

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want to make business-focused political conith state legislators ensconced tributions, it will need to be through a politiin their home districts and the cal action committee. You will need to decide laws they wrote or changed gowhether you want to engage in federal races, ing into effect, it is a good time such as congressional campaigns, state races or to assess what the government is doing for us — both. This decision will determine what kind of or to us — as the case may be. PAC to form. This is also a good opportunity to ask yourCreating your own PAC is a very effective self how much government regulations and way for an organization to show its strong suprules impact your business. Chances are it is a port for a candidate and make a combined conlot. The next question is: What are you going to Josh Aubuchon is an tribution for a larger amount than can be made do about it? attorney with Holland & individually. Not long ago, when the Gallup pollsters Knight in Tallahassee and a Of course, in order for a PAC to give, it must asked small businesses what their biggest chalmember of the government affairs practice. have contributions itself. There are several ways lenge was, the largest number of respondents to raise funds for a PAC, but the simplest way is for (22 percent) said it was complying with governmembers to contribute directly to a PAC or to conment regulations. That number probably isn’t tribute voluntary amounts along with their membership dues surprising given that the actual financial burden of federal to a parent organization. regulations on small business is 36 percent greater than it is on This sounds easy enough, but organizations should be carelarger firms, according to the U.S. Chamber of Commerce. ful when setting up and engaging in political campaign activiGovernment action can make the difference between profit ties as there are myriad other rules and restrictions, including and loss for your business. On top of that, you may even have limits on campaign contributions both to and from the PAC, competitors who are actively attempting to tilt the regulatory how contributions may be solicited, what types of contribuplaying field to their advantage and against yours. Given this tions may be accepted, and reporting and disclosure requiresituation, it is a good time to start thinking about raising your ments. These pitfalls could result in fines or increased tax liacompany’s political involvement by forming a political action bilities for organizations. committee (PAC). It should be noted that forming a PAC to give directly to The primary reason for a business to form a PAC is to help candidates for office is not a company’s only option. In the support and elect those candidates who are like-minded with Citizens United v. Federal Election Commission case, the U.S. your business in their views on government policy. You probSupreme Court ruled that the government cannot prohibit ably saw some situations during the past legislative session companies, organizations and labor unions from making indein which legislators took strong stands supporting those who pendent political expenditures. These are expenditures that are help keep them in office. This is a fundamental American right, not coordinated with a candidate’s campaign but can express upheld by the highest court. an opinion about candidates, government policies or pending Obviously, it is against the law and destructive to democracy legislation. to attempt to buy or sell specific votes with campaign contribuWhether or not you like the laws regarding political camtions. A bright legal line separates support for a candidacy from paign activities by businesses and other organizations, they paying for specific votes. As a result, there are some fairly comremain the rules of the game. Each year, more businesses plex — and continually evolving — regulations that govern decide to consult with an experienced election law attorney political donations. and increase their political profile. The risks of non-involveThe Federal Election Campaign Act regulates participation ment, or limited involvement through a trade group, are getin federal politics and prohibits corporations from contributting too high to ignore. ing directly to candidates in federal elections. Therefore, if you


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SPONSORED REPORT

The Jim Moran Institute for Global Entrepreneurship congratulates the 2014 classes that are now “graduates” of the Small Business Executive Program. These executives were committed to working “ON” their business and as a result of the program, reported more than $2 million in cumulative positive impact to their businesses. The mission of The Jim Moran Institute for Global Entrepreneurship is to cultivate, train and inspire entrepreneurial leaders through world-class education, leading-edge research and applied training, consulting and mentorship, and public recognition.

Small Business Executive Program The program was designed with for-profit and non-profit businesses in mind and created to be a world-class learning experience that accommodates the busy schedule of small business owners. It is ideal for CEOs, entrepreneurs, business owners and presidents of small businesses. Through learning the Lean Business Model, graduates emerge as stronger leaders, ready to capitalize on business opportunities, implement best practice management and turn challenges into strategic advantage.

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THANK YOU TO OUR CLASS I AND II PROGRAM SPONSORS

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SPONSORED REPORT

CLASS ROSTER CLASS I George Avant Kristen Barstow James Clarke Tracey Cohen Linda Durrance Gary Fogleman Jeff Griggs Anthony Martin Tiffany Maruniak Marion McGee Jackie McHaffie Austin Moore Allen Nobles Gloria Pugh Chris Risalvato Dilip Shah Todd Sperry Sam Varn Jay Walker Keith Washington James “Adam” Watson Bill Wert Douglas Wheeler

CLASS II David Ash Erik Askevold Chucha Barber Jay Bostwick John M Buck Becca Bumgarner Keith D Carr Mary M Caudle Tim Center Eddie Chalmers Dr. Walter L Davis, Jr. David Fiore Brian Haley Nicholas Hanley Sharen Denise Hannah Maryann Jacques Amy L Karimipour James Henry King Marina Lickson Mickey Moore Teresa K Myers Pamela W Nobles Shacafrica Simmons Lauren Teal

“Through The Jim Moran Institute’s Small Business Executive Program at Florida State University, I was able to step back from the daily demands of our business and evaluate how the company was operating against the courses provided in the class. I gained valuable insight into issues impacting our business regarding leadership, managing employees, managing finances, marketing/branding, etc. We have implemented much of what I learned through the program, which has benefited the company greatly. I would highly recommend the program to all business owners.” -Gloria Pugh, AMWAT Moving, Warehousing & Storage

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THANK YOU TO OUR CLASS I AND II PROGRAM PARTNERS

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innacle P Introducing thE 2014

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Winners

These 10 women have shown their mettle in life, business and their community

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hey’re moving forces in business and community, A-listers with A-plus personalities who face challenges head-on and are determined to make their world a better place. 850 Business Magazine is proud to present the 2014 winners of the Pinnacle Award, an honor designed to shine the spotlight on women in our region who have set high standards for themselves and exceeded them, who are a moving force in private business and non-profit organizations that help the needy in our society or promote community interests. Our honorees cover a wide range of professions, from a vice president of Gulf Power Company to a farmer to an HIV/AIDS advocate. They are strewn across the 18 counties of the 850, representing urban, suburban and rural areas. Yet when asked to describe themselves in one word, nearly every one said she was either “determined” or “dedicated.” We asked our readers to nominate women they felt deserved the honor. From the names submitted, please meet the winners we selected for 2014. Story By Linda Kleindienst // Photography by Dave Barfield


KITTY WHITNEY ===

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After turning around the Walton Area Chamber of Commerce, Whitney was courted to become the executive director of Sandestin Real Estate, the exclusive brokerage for the world-renowned Sandestin Golf and Beach Resort and a marketleading real estate company.

Whitney, who turns 50 in November, started her working life as an intensive care unit nurse, a stint that helped plant the seed for a business venture she later started with her husband, Todd. Having seen patients sent home only to become homebound and tied to an intravenous tube for medication or nutrition, they invented the idea of an ambulatory infusion that lets the patient administer his or her own doses while being active. “It changed the face of medicine,” she says. “From that moment on, we knew anything was possible.” Within three years they sold the company to a larger medical firm. To bypass Louisiana’s state income tax, the couple moved to Florida and loved it. While pregnant with her son Max, now 10 years old, she got bored and decided to take a real estate class, thinking it would be helpful to have a license. As Whitney works with her sales team at Sandestin, her husband operates two new businesses — Blast Arcade and MooLaLa Ice Cream and Desserts — where she helps after hours and on weekends.

“I just don’t stop until it’s done.” 34

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BENTINA TERRY ===

{

As Gulf Power’s vice president of customer service and sales, Bentina Terry is responsible for bringing in new customers, promoting regional economic development and marketing the utility. She’s worked for the company seven years.

While electric utilities are still a male-dominated industry, Bentina Terry long ago learned to be herself and “just work through it.” She started out wanting to be a high school English teacher, but after a stint of student teaching she realized it wasn’t what she wanted to do for the rest of her life. So she headed off to law school and later practiced for an Atlanta firm whose biggest clients were Georgia Power and Southern Company, the parent company of Georgia Power and Gulf Power. Part of her job now is to help bring in new customers. “Gulf Power has been here for 88 years, and our success is tied to the success of our communities,” she says. “We need to create the climate that allows us to be successful together.” Terry, 44, admitted she was terrified when she went to law school in Michigan because she knew only two people there. “But I said I was going to do it — and it taught me I could conquer any fear.”

“Don’t let fear be what keeps you from doing things.”

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LISA BARNES ===

{

The special projects manager at Eastern Shipbuilding in Panama City, Lisa Barnes admits a shipyard is an unusual place for a woman. But most of her job involves working with elected officials on the company’s behalf and organizing events. a native of bay county, Lisa Barnes was

working as a paralegal in Colorado when she decided to come home eight years ago to help her aging parents. She says it’s ironic that she now works at a shipyard, because during World War II her mother worked in a shipyard for the Maritime Administration. When she first started at Eastern, Barnes was in charge of the program that brought in Guatemalan workers to help build the ships. She wanted to learn more about what the workers did, so she signed up for welding classes to understand the job. “The instructor had been a welding teacher forever, and I was the only woman there,” she remembers. “He said, ‘I can teach anybody to weld.’ He will never say that again. But he did give it his best shot.” Barnes, 55, believes that it is especially important for women to collaborate and cooperate. But the best advice she ever got was, “You can’t change anyone’s behavior but your own.”

“I’m good on details. When I talk to other people I pay attention to what they are saying to me.”

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VALERIE MINCEY President and CEO of BASIC NWFL Inc. in her hometown of Panama City, the 55-year-old Mincey has found her life’s passion in helping HIV/AIDS victims in a six-county area of Northwest Florida.

Following a stint with the U.S. Post Office up North, Mincey moved back home in 1996 and became an outreach advocate for BASIC, which had just won a grant to serve Bay County’s African-American community. “I didn’t know a lot about HIV/AIDS, but I did know my community,” she says. Because of the stigma of the disease, it was hard to make those first inroads, and money was tight. But under her leadership new and diverse funding sources were found, and today BASIC serves six counties — Bay, Calhoun, Gulf, Holmes, Jackson and Washington — and about 300 patients who need help for a variety of needs, from getting medication to finding housing. The agency runs education programs and does testing for the disease. “As I moved up in the administration, I questioned if I was qualified. A friend told me that God would put no more on me than I could bear.”

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===

“I had to think outside the box.”

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JENNIFER JENKINS ===

{

Originally from Boston, Jennifer Jenkins’ job these days is to market Gulf County to tourists through her job as executive director of the Gulf Coast Tourism Development Council, where she is in her third season. She’s worked on tourism accounts for 25 years.

Jennifer Jenkins first got into the tourism business when her ex-husband was in the military and they lived in Walton County. She worked at Seaside and was there when Hollywood arrived to scout for The Truman Show in 1996. The plan was to use one of the houses at Seaside as the Truman house and then build the rest of the sets in California. “I said, ‘Why not build the sets here?’ And they did,” Jenkins says. “Don’t ever be afraid to ask the question.” Since she arrived at the TDC, the 47-yearold Jenkins has built a structure that she feels provides a good system of accountability for how bed tax dollars are being spent to promote the county. She’s gone from two employees to five full-time and seven seasonal workers. Every day, whether it’s cold, rainy or sunny, the staff has a debriefing on the back deck that overlooks the Gulf, a view she considers one of the best benefits of her job.

“I don’t believe in marketing something if I haven’t done it. The first time I went fishing was a year ago.”

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ALICE COLLINS

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She started out her career in banking, but Alice Collins shifted to real estate after she got married in 1960. Today she is president of Collins Realty and president of Collins Vacation Rentals on St. George Island.

Born and raised in Pelham, Georgia, Alice Collins and her husband bought a lot on St. George Island when the only way to get there was by ferry. Their lot cost $500 — beachfront was $2,500. “The ferry ran every day during the summer,” remembers Collins, 74. “You could get nine vehicles on it if one was a Volkswagen.” The first year she started selling real estate on St. George was in 1973. Her office opened on July 1 and closed after Labor Day. She had five rentals that first year. “It was very difficult for a woman in the commercial field (of real estate),” she says now. “But I can stand my own with the best of them.” In 1986, her office was totally destroyed by fire in 45 minutes, but she was up and operating the next day with desks, phones and typewriters given to her by locals. Her office building was rebuilt and operating only 90 days later “because of the good people in this area.”

“You need to think about what you are passionate about, what you really like and learn everything you can about that field.” 850 Business Magazine

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BETSY COUCH ===

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When Betsy Couch was offered the job as executive director of the KCCI Institute, she said it was the job she had been waiting for. Now she gets to work on projects that are designed to improve Tallahassee, her hometown.

The premise of the Knight Creative Communities Institute is to bring community volunteers together to work on projects to improve where they live. Couch, 36, was one of those volunteers in Leadership Tallahassee when her team got behind a project to cultivate Cascades Park. They advocated enhancement of the planned amphitheater and helped develop an area specifically for children’s activities. Not long after the project was completed, KCCI approached her to become director. She works there part time and gets to spend part of her week with her children, “providing that perfect work/life balance,” she says. Before landing at KCCI, Couch worked for Moore Communications, Visit Florida and the Florida Chamber Foundation and taught at Florida State University. She even did a stint writing speeches for the governor’s office. But her heart is in the world of non-profits. “I grew up volunteering and love our community.”

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MELANIE LEE Today, Melanie Lee is vice president and general manager of KIA Autosport in Tallahassee, but her first job there was at the age of 12, cutting grass and washing cars. Her dad, she says, “raised us to work for everything.”

Every Tuesday, Melanie Lee is delivering hot meals to her elderly clients in the Meals On Wheels program. It’s a great experience, she says, but it’s also a way of paying back the help others once gave her family. “My family went through some hard times, but my dad experienced a lot of success,” she says. “I always remember my parents saying we should help others because others helped us once.” Lee, 33, says her family got the KIA dealership when she was 16 years old. She worked her way up in the business, including time in the repair shop and selling cars. She went to dealership school and at the age of 22 came back to run the business. “I’ve been doing this my whole life,” she says. “The people I was washing cars for, I became their boss. But respect is what you earn. I used to come to work every day in a suit, because I just wanted to give that appearance of confidence.” After 12 years, she doesn’t wear that suit every day any more.

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“The path through life to success is not easy. It takes a lot of work to get where you want to go.”

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ANGIE HILL ===

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Leaving the big city behind, Angie Hill returned home to Blountstown to fuel her entrepreneurial spirit. Although trained as a nurse, she’s become a serial entrepreneur and runs several businesses, mostly because it was something she just wanted to do.

After graduating from nursing school in 1992, Angie Hill worked at CalhounLiberty Hospital where she met her husband. The two ended up moving to Atlanta for a change of pace, but it wasn’t too long before friends told her of an ad in the paper that said Merle Norman, a beauty supply store in Blountstown, was for sale. She’d always loved makeup and wanted to own one, so the Hills bought it. Pretty soon Hill had her Merle Norman franchise, a boutique, a party planning service, a beauty salon and a movie rental store running out of a 4,100-square-foot storefront. But those businesses were sold so she could buy the Tavern on the Hill. “It’s something I always wanted to do,” she says of the restaurant, adding that she got the bug several years ago when she went to London to see the royal wedding. “I was in all these cute little pubs and brought back all this décor … .” As for her penchant for starting new businesses, Hill says she is always coming up with new ideas, “and if I don’t do them, someone else will.”

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There are 350 milking cows that depend on Cindy Eade and her husband, who have operated Cindale Farms in Marianna since 1994. The biggest hurdle, she says, was just starting the business.

Cindy Eade grew up a city girl in Pensacola and didn’t even see her first cow until she was 19 years old. But she always wanted animals, so she had an immediate bond with her husband, Dale, who earned a degree in dairy science from the University of Florida. The couple worked for 15 years at Bassett Dairy in Monticello, where Dale was production manager. She was even elected to the Jefferson County school board. But when Bassett Dairy closed down, they took out a loan and decided to strike out on their own. They settled on a herd of 350, as opposed to Bassett’s 2,000 cows, “so if anyone walked off the job we could still operate,” says Cindy, who just turned 58. When their family was young, the couple milked the cows at noon and midnight, to ensure they would have a normal dinner and bedtime ritual for the children. Today, besides running the dairy, she’s also running her daughter’s ice cream business and serving as president of the Jackson County Chamber of Commerce and vice chair of the Farm Credit of Northwest Florida board of directors.

{

CINDY EADE ===

“There are going to be roadblocks in life. You’ve got to figure out how to go over or around them, because that’s part of life.”

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watch behind-the-scenes video at 850businessmagazine.com

{

Pinnacle Award ReCap The inaugural Pinnacle Awards luncheon was held at Tallahassee’s Capital City Country Club on Tuesday, Aug. 19. The event honored 10 dynamic women from across Northwest Florida, each of whom has excelled in her chosen area of business. Also attending were representatives from the event sponsors: Hancock Bank, BMW and Daniel Uhlfelder, P.A. Sherrie Clark and her team from Fuel A Salon & Store were on hand to style each of the ladies. Linda Kleindienst, editor of 850 — The Business Magazine of Northwest Florida, and Publisher Brian Rowland were on hand to present the

custom awards to the recipients. Each of the glass awards was handcrafted by artists at Florida State University’s Master Craftsman Studio. This year’s honorees included women from a wide array of professional fields — from a vice president of Gulf Power in Pensacola to a wellknown beachfront real estate expert to the owner and operator of a large farm in rural Marianna. The diversity of backgrounds, professional experience and personality types of the award winners cemented the importance of such an event in recognizing the contributions of women to the business arena in Northwest Florida.

Photo by Matt Burke

Thank you to the sponsors who made this event possible

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St. George Island come for a visit, stay for a lifetime

60 East Gulf Beach Drive St. George Island, FL 32328-2808 Collins Vacation Rentals Toll Free: (800) 423-7418 Local: (850) 927-2900 collinsvacationrentals.com

Century21 Collins Realty Toll Free: (800) 333-2177 Local: (850) 927-3100 century21collinsrealty.com

We don’t just do business here,

we live here.

At Hancock Bank, we’re committed to serving Florida with convenient locations and comprehensive banking services. Our experienced personal and business bankers are backed by one of the strongest financial service companies in the industry. For more than 24 consecutive years, BauerFinancial, Inc. has recommended Hancock Bank as one of the most financially sound banks in America. Find out more at hancockbank.com. 800-448-8812

hancockbank.com

We operate as Hancock Bank in FL, AL & MS and as Whitney Bank in LA & TX, Whitney Bank, Member FDIC.

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watch behind-the-scenes video at 850businessmagazine.com

Buy, Sell or trade Just about any firearm commercially available today can be found at a gun show.

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The Best Bang for Your Buck

Gun shows educate, enlighten and try to make a buck or two for the dealers, vendors and promoters By Jason Dehart // photography by Matt Burke

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Whether you’re in Tallahassee, Fort Walton Beach or Pensacola, a gun show is the epitome of American capitalism in action. You can buy, sell, trade, socialize, pick up on industry gossip and news, or just hang out with good friends on a lazy weekend. All the while you are helping contribute to a national economy that needs a boost after shrinking 3 percent during the first quarter of 2014. In general, gun shows are microcosms of an important economic power in America. According to the National Shooting Sports Foundation, firearms manufacturing, distribution and related industries account for a direct employment of 111,895 people and an additional 133,850 with suppliers and ancillary businesses. The average wage and benefits paid is $47,709. And as a whole, the industry accounted for $37.7 billion in economic activity in the United States in 2013. The biggest firearms-related tradeshow in the nation is the annual SHOT Show in Las Vegas. The 2014 show attracted a record-setting 67,000 attendees, according to the NSSF. Taken as a business barometer, this means that more and more people are getting involved in shooting-related activities. Entering A Local Show If you’ve never been to a gun show, here’s generally how they work: Once you’ve paid your admission fee and walk in the door, a sheriff’s deputy or staff member will ask if you have any weapons or ammunition. “They’re going to make sure that the weapon is clear and it’s tied, so the action cannot be operated. (Guns) can’t be loaded. If you don’t (have weapons or ammo), he says fine, and he directs you to the next person who takes your money or ticket and they stamp your hand so that you can exit and enter as many times as you like while you’re there,” said Mark Foor, a state tax specialist who has had experience on both sides of the table — as a vendor and as an official making sure all vendors (including private dealers) are registered to collect sales tax at the public venue per Florida law (enforcement of which is nearly unenforceable, he said, due to a lack of manpower). Once inside, it’s simply a matter of scoping out the room and finding a place to start browsing. Once you start talking to vendors, you realize that a gun show may be in your backyard, but the registered vendors can come from just about anywhere. At a recent gun show in Tallahassee there were not only local vendors, but some from Central Florida and Southern Georgia as well. Usually, there are rows and rows of tables and bottlenecks of people trying to do the same thing you are. You can shop at gun shows for handguns, rifles and shotguns to suit a variety of purposes, but you’ll also find shooting and cleaning supplies, ammunition

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fit your hands and might not be a practical weapon for whatever you are using it for. And, as a general rule, a good many people will bring something they already own that they’re not real attached to, to use as trading material,” he said. In another time, wheeling and dealing would be considered part of the fun. Nowadays, though, in a stillrecovering economy, attendees take a very serious look at what they can do to come out ahead. But you have to know something about the economics of gun trading and selling. For example, you’re liable to get the most money from selling a used gun than a new one, according to J.D. Johnson, a retired law enforcement officer and co-owner/COO of Talon Training Group. Johnson said that there is very little markup or profit margin on new guns. When he had a federal firearms license back in the early 1990s he would buy new guns, go to a gun show and trade a new gun for an older gun that has collector value. Then, he would look for an appreciative buyer for that valuable older gun. “I know guys who strictly collect Winchesters and if I could get my hands on a pre-64 Winchester rifle or shotgun, I knew that I could sell that to a collector if it was in good shape and hadn’t been refinished (which would ruin its collector value),” Johnson said. “So I would take guns in on trade that were to most people old and antiquated and they wanted a new gun to hunt with or a new gun to go to the range with. The used gun market is truly where the money is made a lot of times because of the very small margins on new guns. If I can trade you a new gun that I have $200 or $300 in and I know that gun you’re trading me is

and reloading components, non-lethal selfdefense weapons, knives, surplus military guns, range bags, concealed carry holsters and much more. There are charity raffles and food vendors. Places to sit, relax and take it all in. Or, if you want to work toward getting your Florida concealed weapon permit, there are usually classes that are geared to help. And if you have questions about anything at all, just ask. You’ll probably walk away with tons of information from buyers and sellers alike. No matter what they sell, vendors themselves are friendly and engaging, love to talk “shop,” and conversations strike up pretty easily. “The shows are very educational, very informative and you’re going to get to see just about anything on earth that’s commercially available right now,” said World War II aficionado Ed Buist of Tallahassee, who spent eight years setting up as a private vendor before selling off much of his collection. “Plus, you’ll get to see a lot of older stuff going all the way back to muzzle-loading guns and up to more modern stuff. And it’s well worth the trip. It’s a cheap day out, actually.” Foor said that most people who go to gun shows have some idea of what they’re looking for. On the other hand, some people are just there to window shop and are “The shows are very educational, just looking to see what’s very informative and you’re going new. Others want to “try on” a gun they might have to get to see just about anything seen in a magazine. on earth that’s commercially “It looks great in the available right now.” picture, but you know, you get there it might not — World War II aficionado Ed Buist

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Whetting the appetite After a gun show, chances are gun buyers will become regular customers at local gun stores.

worth $500 and I give you $300 for it, then I may eventually make $200 on that purchase. Compared to a new gun, which you’re not making but $50 or $60 on, maybe.” Trading up for something newer and better is a big, big part of gun shows. You might have an old pistol from World War II that you’d like to trade, with a little extra cash, for a more modern gun. And if you don’t like that newer gun, you can come back to the next show and trade for something else. “It’s like trading up in cars,” Foor said. “You know, you have a Pinto and you drive to the local lot and next thing you know, you’ve got a Dodge Dart. You’re stepping up in the world. And the same is true with guns. You might start out with some cheap pocket semiautomatic, but you wheel and deal a little bit, put in a little extra money and you might actually come out with something fairly decent, and later on you trade up or sell and use the money for something else. I’ve done that myself many times.” Whether you trade or buy outright, the price is always negotiable, and haggling is a fun but necessary art these days. “Anybody who’s got a little bit of experience at a show — and I don’t care if it’s a gun show, a boat show, whatever kind of

show — everybody knows there’s the price that’s on it, but that’s not necessarily what you have to pay,” Buist said. “What you’ll hear a lot of is somebody will attempt to point out every slight flaw it may have in order to get the price down. For the firsttimer, it may seem a little strange. But you know, it’s just like coin collectors or stamp collectors. The slightest flaw, they’re going to point it out. Trying to get that price adjusted. I enjoy that. There is a tremendous amount of fun to be had there.” Meanwhile, the licensed dealer has to know what guns are popular at the time in order to make the most of a gun show, Johnson said. If there’s a hot new product on the market that’s generating a lot of buzz, you’ll probably want to add it your inventory quickly and put it out on the table. Such was the case with the Glock 42, a new .380-caliber pocket pistol introduced at the SHOT show back in January. The initial MSRP for the Glock 42 was listed at $480 when introduced at the beginning of 2014. But some prices have been as low as $355. “The demand for that particular weapon was out of sight. Everybody wanted one, everybody had to have one, if you don’t have one you’re not cool. The demand for it

was just phenomenal and still is,” Johnson said. “So as a dealer, to truly be successful at the shows, you’re going to have to know what people are looking for.” Some dealers, though, specialize in particular guns as a way to appeal to specialized buyers. For example, antique and military guns have a huge following, Johnson said. A lot of dealers who have worked gun shows for 20 years have tended to do well by following that niche market. “You know that the guy from ABC gun shop is going to have a nice selection of M1 Garands, and if you’re looking for an M1 Garand you’re going to go to a gun show and look for that guy. ’Cause you know he’s got a nice collection of WWII-era guns,” he said. The venerable semiautomatic Garand (officially designated the United States Rifle, Caliber .30, M1) can be quite an investment and is very popular with shooters and collectors alike. More than six million were made between 1936 and 1957. Most of the ones you find today are arsenal rebuilds with replacement parts. “Original” WWII-vintage Garands with matching parts and numbers are scarce. As with any collectible gun, prices can vary depending on several factors — scarcity being perhaps the biggest. In the case of the M1 (and other obsolete guns), demand may be outpacing supply. New import restrictions are preventing many surplus World War II Lend-Lease firearms from returning to America. That means scarcity for all involved, and prices can only go up. Buist said that at gun shows the M1 can fetch between $900–$1,200. By contrast, another World War II longarm — the rugged, bolt-action MosinNagant rifle — costs far less, simply because so many of them were made. Production of this Russian rifle began in 1891 and ran for some 70 years or more. Millions were made in various configurations and models. Perhaps the most plentiful version, the one you might see most at a gun show, is

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the 91/30. More than 17 million of these were produced between 1930 and 1944. In recent years a collector/shooter could pick up a standard (non-sniper) 91/30 for under $70 or $80, but prices today are creeping into the $100 range or more. Hand-select grades can be had for just under $200 in some cases. Like the Garand, most MosinNagants available today have seen some sort of rehab and refinish, and they have their own devoted following of collectors and shooters. Striking a Deal Saturdays are usually the busiest days at any gun show, but Sundays can be a little bit more laid back because most shows close early and the vendors have to pack up and go home. Additionally, Sunday may be the best time to find a bargain, Foor said, because vendors don’t want to tote something home, or they may need some gas money. “You can get some good deals on a Sunday,” he said. “The best deal, I’ve always been told, is one where both people walk away happy. Basically what most people do is they try to get as close to an even trade as they can get. Especially today … people don’t have a lot of excess income to invest. So they’re trying to get as much bang for their buck as they can.” In other words, it pays to shop around. Buist said that just like shopping for a car, home appliance or whatever, you should take the time to talk with several vendors. “Above all, I think you need to know what it is you’re looking for before you go in that door,” he said. But don’t overlook the

FYI

There are usually two different types of dealers/ vendors at gun shows in Florida. There are the Federal Firearms License dealers who normally own a gun shop and make a living selling guns and accessories. And there are the non-licensed, private collectors who are interested in selling or trading part of their collection. Buying a firearm at a gun show from a federally licensed dealer entails the same paperwork, identification and background checks, fees and

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private vendors. They might have just the thing you’re looking for. More often than not it might be slightly used, so the price might just beat the price of the same item on a licensed dealer’s table. You can Collectibles also find used guns are hot items with the regular The venerable M1 Garand rifle of licensed dealers. It World War II fame is all depends on what a sought-after piece of firearms history. you’re looking for. Savvy buyers can Meanwhile, for find them at gun shows, along with the dealer, a gun other “obsolete” show offers a chance surplus weapons. to do a little selfpromotion to attract some future business to the brick-and-mortar shop. Tristan Shelfer, owner of Red Hills Arms in Tallahassee, said his shop’s presence at a recent show in Tallahassee was more about exposure for his new business than sales. “It’s a chance to hand out business cards. We’ve only been in business for six months, and it was a way to let people know we’re here,” he said. “We’re hoping it will cause a lot more walk-in clientele later on. As far as sales, net proceeds covered the labor and cost of that particular table.” ‘Salesman of the Year’ It’s a truism among gun enthusiasts. If the political climate is bad, and people feel that their Second Amendment rights are being threatened, it’s a good time to be a gun shop owner. And if you go to a gun shop these days you just might see a picture of President Barack Obama with a caption that reads, “Salesman of the Year.”

waiting periods (if applicable) one would expect at the dealer’s gun store. Sale of a firearm by a federally licensed dealer must be documented by federal form 4473, which identifies the purchaser and inventories other personal information and records the make, model and serial number of the firearm. Persons must be 18 years old and a legal U.S. resident to buy a long gun in the state of Florida. Long gun purchases are generally exempt from waiting periods. To buy a

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“The Obama Administration has been fantastic for gun sales, for shooting, for firearms training, for ammunition sales,” Johnson said. “I mean the numbers have gone through the roof. Because he is openly anti-gun. I don’t think it’s a mystery or a secret to anybody.” But it’s not just the Obama Administration. Politics has played a role in gun sales for many years. During the Clinton years and the “assault weapons” ban, pre-ban AR-15 rifles sold for three times what post-ban AR-15s were going for. And there was very little difference between the two, Johnson said. “One had a bayonet lug and a flash suppressor and the other didn’t. They functioned the same way, they fired the same number of rounds,” he said. The more

handgun in Florida, you must be 21 years old and a Florida resident. There is a three-day waiting period for handgun purchases, unless you have a state of Florida concealed weapons permit. When it comes to private collectors, Florida law generally allows private firearm transactions between residents who are legally permitted to own guns. The transaction is not required to go through a federal firearms licensee. This means that private vendors have to rely

more on their gut instinct when considering carrying out a sale, especially with someone they don’t know. Even though no paperwork or questions are specifically required, collector and former vendor Ed Buist said the conscientious private vendor should ask certain questions to ascertain, for example, that the potential buyer is a Florida resident and old enough to buy the firearm in question. “And if you don’t ask, you could find yourself in a bad situation,” Buist said. “I always


restrictive the political climate, the more people want it, Johnson said. Today, guns and ammunition have flown off shelves in record-breaking fashion, and shortages have been common. Some buyers are longtime shooting enthusiasts while others may be brand-new to the culture. “Since the Obama Administration is probably one of the biggest anti-gun administrations this country has ever seen, there are people who would have never considered owning a firearm that have gone out, sought out training, bought ammunition, bought firearms and gotten into the gun culture because the government was threatening to take it away or they felt like the government was threatening to take it away,” he said. “So it’s been a huge upward climb, and every time they get on TV or the media starts talking about gun restrictions, the sales go through the roof. The crime rate also has a lot to do with it. I think fear is a big component of that (surge); it drives people in a way that nothing else does. Fear of either losing their right to own a gun or fear of somebody kicking their door in to do harm to them are two big factors that really push people to act and purchase guns.” However, the “boom” hasn’t necessarily been a good thing for some gun shops, Johnson said. It’s his observation that smaller ones lacking a lot of buying power might find themselves out of inventory and unable to put certain items back in stock. That can be a very bad thing for business and you can lose customers quickly. “If they are not a dealer that can get ahold of a lot of inventory and all of a sudden you

ask two questions: Are you a Florida resident? And when they say yes, I just take a quick look at their driver’s license, and all I’m doing is I’m looking at that and comparing the picture. I’m not looking at your birthday, unless you look a little too young to me to be buying a gun, and I hand it back. The other question is have you any felonies against you or are you a convicted felon? Now, a real convicted felon is going to say no, of course not. But I ask the question. My obligation ended there. If you want to lie to me,

have this huge demand, well, the distributors are going to sell to their bigger customers so the little guys that were getting into the gun business were having a heck of a time getting inventory,” he said. “And the boom ended up hurting some of them, because they could not get inventory to sell. They had people beating their door down wanting to buy a gun and they couldn’t get them, and if you go to a store two or three times to buy something and they don’t have it, what are you going to do? You’re going to go to another store.” A Changing Business Buist, a 68-year-old history buff, is old enough to remember a time when the only firearm vendors at gun shows were the individual collectors who were selling World War II memorabilia, guns and other military items. This goes back to the ’50s and ’60s. “Gun shows were not like they are today. Back then, licensed dealers were not permitted to sell any of their weapons outside of their shop. The gun shows were far more interesting to me anyway because what you would find there were private individuals either selling off part of their collections or you had veterans coming in wanting to sell war trophies and such, and it was like a living history lesson — and I love history,” he said. “So this is why I started going to the shows … and I still do to this day. Now, the gun shows are in some respects a little bit less interesting, because more and more what’s happening is the licensed dealers are there and they usually take up several tables. Little

then OK. You lied to me, but I asked the question. So that’s all you really need to do.” But that’s going above the call of duty, according to fellow gun enthusiast Mark Foor, who said private vendors are not legally obligated to take those steps. “That’s the only downside of what I like to call an armslength trade,” Foor said. The Florida Constitution does provide a “local option” avenue for background checks to apply to private sales at public venues. Article VIII Sec. 5(b), says “Each county shall

by little it seems like the private collector or hobbyist is sort of being pushed out of some of the shows.” Johnson has also noticed that in today’s gun shows, the ratio of licensed dealers to private collectors tends to skew more toward the FFL holder. “You go to the next gun show here in Tallahassee and you might see three or four private individuals with a table, and a lot of them are guys that are trying to liquidate their collection,” he said. “A lot of them have had collections for years and decided that they’ve got too many guns in the safe and would rather have the cash for medical bills.” They may also want the cash to give to their grandkids, Johnson said, since cash is easier to handle and pass along. Some decide they’d rather start a college fund for their grandchildren instead of giving them guns they might not appreciate. That hasn’t been the only change gun shows have gone through in recent years. Computers and smartphones have done much to streamline transactions and increase convenience for buyer and seller alike. “You know, back then … only the big shots had the ability to run a credit card at the show, so you mostly dealt with cash and check,” Johnson said. “Now everybody’s got the cube they plug into their smartphone so they can take your credit card at the scene, and some of the big gun shops now have computerized 4473 ATF forms. It has become a lot easier with the use of computers for dealers to keep up with and maintain their log book.”

Upcoming gun shows in Northwest Florida include: Panama City at the Bay County Fairgrounds, Oct. 25–26; Pensacola at the Interstate Fairgrounds, Nov. 15–16; Fort Walton Beach at the NW Florida Fairgrounds, Dec. 6–7; and Tallahassee at the North Florida Fairgrounds, Dec. 20–21.

have the authority to require a criminal history records check and a 3- to 5-day waiting period, excluding weekends and legal holidays, in connection with the sale of any firearm occurring within such county. For purposes of this subsection, the term ‘sale’ means the transfer of money or other valuable consideration for any firearm when any part of the transaction is conducted on property to which the public has the right of access.” To date, Leon County has not enacted such an ordinance.

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Battle of the

Governors Florida voters will get the chance next month to decide between two governors to lead the state for the next four years — former Gov. Charlie Crist and incumbent Gov. Rick Scott. Both have made jobs a major focus of their campaigns; they just have different ways to get to the same end of better paying employment — and more of it — for Floridians. Scott, the Republican, talks more about tax breaks, cutting back on business regulations and a more aggressive outreach, especially from local officials, to lure in more businesses from across the nation and world. Crist, the Democrat, is pushing for better education funding at all levels to create the work force that will attract more companies to the state. He also prefers tax incentives to encourage alternative energy and believes the state should embark on a concerted effort to boost Florida-based space programs. Elected governor in 2006 as a Republican, Crist ran unsuccessfully for the U.S. Senate as an Independent in 2010. Now he is

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running for the state’s highest office as a Democrat — a political transition that, if it works, will be a first in Florida. Scott was elected governor in 2010, narrowly beating back Democratic opponent Alex Sink by 61,550 votes, even after spending $75 million of his family money to win the job. When Crist left the governor’s office, the state was reeling from the housing bubble burst, the Great Recession and the BP oil spill disaster. The state had lost tens of thousands of jobs and billions were being cut from the state budget. During Scott’s term, the national and state economic picture has undergone a dramatic turnaround. Housing prices are on the rise, tourism is hitting record levels and thousands of jobs have come back. Scott claims credit for the jobs turnaround, although critics point out that a large percentage are low-paying service jobs. As they wind down their campaigns for the state’s highest office, both candidates are expected to keep harping on the best way for Florida to develop its economy. 850 spoke with Crist and Scott to get more specifics.


Who will be best for growing Florida’s economy and workforce? By Linda Kleindienst

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October – November 2014 Ekrut Photo Illustration by Jennifer | 53


850: What about state investment at the port of Port St. Joe? RS: At the state level we turned around

Meredyth Hope Hall

RICK SCOTT, republican

850: What would you do in a second term to improve economic development in Northwest Florida and the state as a whole? RS: I think about this job because

of my upbringing. My parents struggled, and I remember when my dad’s car got repossessed. A dream starts with a job. If you take the Tallahassee area by itself, the value of FSU is significant. When you look at other parts of the country and see the talent that comes out of these universities, it could be a big opportunity. As universities focus more and more on where jobs are, which is happening as we moved the funding model to more of performance funding to what it costs for a degree and when you get a job how much money are you going to make, I think there will be much more focus moving forward on where the jobs are, which I think will be a big opportunity for Northwest Florida because of FSU and the state colleges. I’ve lived in eight states so I’ve seen differences. You think about one big opportunity we have in the

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Northwest area — we should be able to get a lot more manufacturing jobs. Manufacturing jobs are in the rural areas, in general. By getting rid of the sales tax on manufacturing equipment, it allows us to be more competitive in manufacturing jobs. We’ve invested nearly $700 million in our ports; it will total $1.1 billion during my eight years as governor. Between the ports and recruiting many factory companies, Northwest Florida has a gigantic opportunity to attract a lot of those jobs. 850: Where do schools and colleges fit in? RS: Florida State University and the

University of West Florida, along with the state colleges, have done a very good job focusing on where the job opportunities are. And what we’re doing with our high schools is making the goal. When you’re finished you’re ready for a career or you’re ready for college. With all those things together Northwest Florida will have significant opportunity moving forward.

850businessmagazine.com

The Incumbent Rick Scott says the state’s rebounding economy is evidence of his success in bringing more jobs to the state.

our economy — before I became governor the state lost 800,000 jobs, and now we’ve added over 600,000 jobs. Now we have the opportunity to make strategic investments. We’ll be investing in all of our ports as we see the opportunity to do things. All these ports, as they recruit businesses … we can recruit business. We think we can make investments. Same thing with our airports. We invested $7 million with a facility upgrade for hanger space at the Crestview airport. We’re going to invest in our airports, ports, highway system, bike trails. This year we are the No. 1 infrastructure state. When I came in, I told the Department of Transportation I want you to invest dollars where we can get jobs because if we create jobs we’ll have more dollars. And it worked. We have the highest transportation budget three years in a row because we have such growth in our budget, so many people are moving here. The strategic advantage that Florida clearly has over everybody else, in the U.S. at least, is that people want to come here as tourists. We’ve seen record tourism numbers all four years — that’s why we’ve invested almost $700 million in our ports because of the strategic advantages. We are clearly the gateway to Latin America. We have the expansion of the Panama Canal. We’ve got all these opportunities and clearly Northwest Florida has a significant opportunity. 850: Most of the major announcements of new companies coming to Florida have come from Central and South Florida. How do you improve Northwest Florida’s standing? RS: The state can do a lot, but you’ve got

to make sure you have good elected officials that will go out and recruit companies to either expand in or move to Florida. We’ve won over 400 competitve projects where we’ve gotten companies to expand or move to Florida. In the Panhandle, Navy Federal expanded and added 1,500 new jobs. There is iSorona in Panama City and Bing in Tallahassee. Part of my job is that I call on companies all the time and highlight our successes.


850: What role does the state play? RS: I just want to keep looking at any fee,

any regulation we can get rid of, that’s what we’ll do. We worked to get rid of 3,000 regulations. I want to get rid of more. I believe in business people’s opportunity to succeed if they are given that opportunity. We’re winning in our state because we’ve made it an easier place for businesses to succeed. Before I became governor, taxes were raised over $4 billion, regulation was increasing. There were no investments in things that really mattered. Tourism had stagnated because we hadn’t increased our marketing. We have the opportunity to be the No.1 place in the country and world for business, but it’s going to take being aggressive at determining how businesses succeed. They’ll be the ones to add jobs. And if we make smart decisions, strategic investments with taxpayer money, like investing in tourism and our ports and our infrastructure, then we’ll have the money to have a great place to live and the money to build the safety nets we care about.

The Challenger Charlie Crist says Florida needs to focus on education improvements that will lure new business by providing the skills needed for higher paying jobs.

CHARLIE CRIST, democrat

Nicki RiTcher

I’ve been in business all my life. It’s my experience — whoever works hardest, who is it the most important to, who is willing to do whatever it takes for a company to be successful. What you’re seeing around the state, the growth is tied to local officials who want economic development. Do they want to make it a better place for business? Or are they making it a tougher place for business? There’s a book out called “How Money Walks” that talks about how much annual income has moved to Florida over the last few years. It’s directly tied to government policies. It’s tied to regulation, tied to taxes, tied to attitude. If you elect someone who attacks businesses, they won’t come. You wouldn’t go there. What I see around the state is places where the local elected officials like business, they promote business, they highlight business, they talk about business. People want to be in Florida, but they are going to go where they’re wanted the most. You’ve got to compete to win. Companies are solving customer needs, and customers are saying I want your quality, I want your service and I want the lowest price.

850: How do you encourage economic development? CC: Whenever a business is looking at coming to a community, one of the first things business leaders look to is the kind of schools their children will be educated in. Sadly, under Rick Scott, the first year alone he cut $1.3 billion in K-12 education, which affects Northwest Florida and the entire state. He cut $300 million to the universities in his second year in office. You can’t do that and encourage businesses to either stay and grow or for new ones to relocate. It just demoralizes educators and teachers, and that results in fewer companies wanting to come to Florida. To encourage economic development in the Sunshine State, including the Northwest, is to have a refocus on education, appropriate funding to right the wrong of the devastating cuts. 850: How do you channel more money into education? CC: When the new governor gets sworn in

you start working straight away with the new legislators. We’re going to have a new House speaker, a new Senate president. I know them both, and I think we can work together to do what’s right for Florida and

review those education cuts that have been made, reverse them and start getting more funding for education. After all, even during the Great Recession, when I served as governor before, the per pupil funding for education was, when you factor in inflation, $1,200 more than it is now under Rick Scott — and he had an almost $3 billion surplus in his budget. If you are going to have economic development, you have to have good education available to Florida’s young people. Over $400 million in Bright Futures scholarships have been cut down to about $260 million. That’s over 30,000 kids — that’s a whole university. You’ve got to have the education foundation in order to build a stronger economy. 850: Would you consider more tax incentives to lure in new companies? CC: We’re doing that, and it’s been an

abysmal failure. (A Tampa Bay Times and Miami Herald review of 342 job creation deals orchestrated by current Gov. Rick Scott revealed that despite a pledge of $266 million in tax breaks for 45,258 jobs, 96 percent have not materialized.)

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the BP oil spill, of spending virtually two months living there, really getting to know people, spending some quality time there. When I was governor, and as attorney general, we established an office in Pensacola. It’s such an important part of the state. Spending more time there shows you care about it, and the people there are important. Meeting there with new or existing companies would help nurture the economic environment.

Only 4 percent of the promised jobs actually happened. A 96 percent failure rate. That’s stunning in how bad it is. Incentives can be a good thing, but we’ve got to do better than a 4 percent rate of return. That’s just failing miserably. We need to invest the people’s resources in education instead of finding tax breaks for (Rick Scott’s) buddies. We’ve seen enough of that. 850: Are there good incentives? CC: We’ve got to change the laws. Let’s talk

about alternative energy. To encourage solar energy development in Florida, we need to get laws off the books that make it so restrictive and so favor existing utilities and the good ol’ boy network of how we’re dealing with energy development in Florida. To allow billions of dollars to go to companies, even if they don’t build a new (power) plant, it doesn’t make sense. You could use that money to incentivize solar development companies, wind development companies that would provide more innovative and high-tech jobs for our people. It just doesn’t make any sense.

850: There is a major push in the 850 region to bring in more aerospace companies. CC: Obviously the military pres-

ence in Northwest Florida is significant, to say the least, and of the companies that naturally can partner with the military, aerospace is one of them. When I was governor, we significantly improved Embraer’s presence, and we saved Piper from leaving Fort Pierce. I have experience with aerospace — and we could develop it more. You have a beautiful brand new airport in Bay County. Enhancing aerospace development is a natural.

850: What about space program jobs? CC: It doesn’t make sense to me either that

we’re not pursuing more aggressively the development of the space program with public/private partnerships. I just read that SpaceX — I don’t know if the governor met with them or tried to — but they announced that rather than pursuing development in the Space Coast area they were going to go to Texas. It’s a missed and failed opportunity to provide innovative jobs. What’s more innovative than space travel? We’re missing out. 850: What brings companies to Florida? CC: I think it’s hard working Floridians that

bring companies here, and there would be more if Rick Scott weren’t governor. There has been a complete ignoring of our education system. We’ve had four education commissioners in four years. There should at least be a level of competence. It seems like they change the way we test in our schools every other day. So how can you have some consistency or some idea of how our children are doing when you inflate grades, change commissioners? It’s a joke.

850: Would you support improvements at the port of Port St. Joe? CC: I served on the board of The

St. Joe Company when I left office. It gave me the opportunity to become more acquainted with that

October – November 2014

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try for Florida, and there has been virtually zero focus on it, and I don’t know why. It’s a clean industry that provides high paying jobs and promotes the state. Florida should be in the leadership of promoting the film industry. It was a focus for me before, and it would be again. How else would you promote new jobs? CC: There are some obvious things

that would provide a lot of jobs that the administration has turned its back on. One that comes to mind is high speed rail — almost out of the gate Rick Scott rejected it, and there were estimates it could have provided 30,000 to 60,000 jobs. And then not being willing to partner with our federal friends in Washington as it relates to Medicaid expansion, you’re leaving on the table about 120,000 jobs and $51 billion. And most important, there are almost a million of our fellow Floridians who need health care and aren’t getting it because of a lack of effort. It’s appalling. That’s close to 200,000

On Nov. 4, Florida voters will go to the polls to pick our next governor. 850 asked for interviews with both major party candidates and prepared a list of questions on the economy. Gov. Scott answered questions for 14 minutes, former Gov. Crist for 28.

be a help. I had the experience, during |

850: The Legislature this year went home without increasing money to encourage the film industry to come to Florida. CC: It should be an important indus-

2014 Florida gubernatorial election

850: Most of the major announcements of new companies coming to Florida have come from Central and South Florida. How do you improve Northwest Florida’s standing? CC: Spending some time there would

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developing the Northwest part of the state economically. When you have a $3 billion budget surplus it gives you the opportunity to do things like (develop that port) and refocus on education.

850businessmagazine.com

port and the advantages it represents and how it can enhance economic development in the area with the combination of rail. Developing our ports is extremely important. We’re the gateway to the Caribbean and to Central and South America. We don’t have to focus everything on our east coast ports. We could just as well focus on Port St. Joe. It’s a vital link and important component in

jobs, and all you need is a chief executive who has the open-mindedness to say yes. It’s not that complicated, but it’s sure important. How do you think Enterprise Florida is working? CC: I think it can work better. I

would revisit how it’s being run. With a success rate of only 4 percent, it’s not working. It needs to do much better than it is. It’s a failure.


AN 850 BUSINESS MAGAZINE SPECIAL REPORT

2014 Bay County Business Journal

Econom ic Dev e lopm e n t V i sion | A i r porT Tou r i sm | HOUSING | Sport s | E duc at ion M i l i ta ry | Sea fo od | Medic a l | PORT


OUR SITES ARE SET ON FLORIDA’S GROWTH. Gulf Power Company has launched Florida First Sites – the first regional site certification program in Florida to develop project-ready industrial sites. Thirteen locations are now pending certification in six counties in Northwest Florida. All of the sites undergo a rigorous screening process developed by McCallum Sweeney Consulting, providing an objective, third-party analysis to ensure the sites are ready for development.

For more information, contact John L. Hutchinson, Director of Community and Economic Development for Gulf Power Company, at 850.444.6750 or JLHUTCHI@southernco.com.

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1830 West 23rd Street, Panama City 850.785.0910 | thesleepcenter.info 2 / 2014 B ay C o u n t y B U S I N E S S J OU R NA L

FloridaFirstSites.com


Bay County Demographics Population 2013 Estimate Percent Change, 2010–2013 Median Age Under 18 18–64 years 65 years and over Male Female

174,987 3.6% 38.5 years 21.5% 62.6% 15.9% 49.6% 50.4%

RockTenn BookIt.com GAC Contractors Gulf Coast State College

480 440 400 400

Target Industries »» Aviation, Aerospace, Defense and National Security »» Renewable Energy and Environment »» Health Sciences

EDUCATION Educational Attainment (Persons aged 25 and older) High School graduate or higher 87.1% Bachelor’s degree or higher 21% Higher Education Institutions »» Florida State University Panama City »» Gulf Coast State College »» Embry-Riddle Aeronautical University »» Troy University EMPLOYMENT Unemployment Rate (June 2014). 5.6% Average Household Income $62,548 Median Household Income $49,023 Major Employers

photo courtesy Bay County Chamber of Commerce, Cover photos courtesy Andrew Rhodes/Bay Economic Development Alliance

TABLE OF CONTENTS

Tyndall Air Force Base 7,300 Bay District Schools 4,411 Naval Support Activity 3,170 Bay Medical Center 2,000 Wal-Mart & Sam’s Club 1,500 Eastern Shipbuilding Group 1,450 Bay County Constitutional Officers 1,214 Gulf Coast Medical Center 631 Trane 575 City of Panama City 537

»» Transportation and Logistics »» Research and Engineering Services »» Manufacturing »» Corporate Headquarters GEOGRAPHY & CLIMATE Total square miles 1,033.3 Land 763.7 sq. miles Inland and Territorial Waters 29.6 sq. miles Coastline 27 miles Elevation .... 13 to 23 feet above sea level Sunshine per year 320 days Average Air Temperature 67.49° Average Summer Temperature 89° Average Winter Temperature 39° Average Water Temperature 71.57° Average Yearly Rainfall 67.21 inches Distance to Major Southeastern U.S. Cities from Panama City, Florida Dothan, Alabama 80 miles Tallahassee, Florida 100 miles Pensacola, Florida 105 miles Jacksonville, Florida 270 miles Atlanta, Georgia 300 miles New Orleans, Louisiana 315 miles

Sources: U.S. Census Bureau; Florida’s Great Northwest; Bay County Economic Development Alliance; Florida Legislature Office of Economic and Demographic Research

Real Estate Median Sales Price

$170,000

Average Sales Price*

4 A Long Term Economic Vision Bay

County is moving full speed ahead to chase any and all economic development potential.

6 Airport/Port A major Gulf deepwater port and a new international airport have become major economic drivers in Bay County.

10 Military Because it is home to a U.S. Air Force base and a key Navy testing facility, the military is a major contributor to the Bay County economy.

12 Medical Care given by local hospitals and

rehab centers has evolved to where it’s as good as any in the state.

14 Housing The St. Joe Company has unveiled

a 50-year development plan for West Bay, and the county’s old airport is being converted to a new mixed-use development.

16 Seafood Commercial versus recreational

fishing. What does the future hold for each?

19 Education Putting a new focus on how

schools can better train a workforce that will enhance economic development efforts.

22 Tourism The beach is big business, attract-

ing tens of thousands of visitors each year, but so is shopping at Pier Park and attractions like Miracle Strip and Grand Lagoon.

25 Sports Sports of all sorts is big business in

Bay County Single Family Homes For June 2014

Bay County, attracting tournaments from across the country.

$243,749 ( 20.7%)

Median Days on Market*

57 ( 14.9%)

Average Percent of Original List Price Received *compared to June 2013

10

»» Information Technology

Bay County Business Journal is published by Rowland Publishing, Inc. 1932 Miccosukee Road, Tallahassee, FL 32308. 850/878-0554. Copyright October 2014 850 Magazine, Inc. All rights reserved. Reproduction in whole or part without written permission is prohibited.

92.8%

Source: Bay County Association of Realtors

Creative. Print. Solutions.™

rowlandpublishing.com | facebook.com/RPIcreative

2014 B ay C o u n t y B U S I N E S S J OU R NA L

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Economic Development

Neal Wade, Executive Director of the Bay Economic Development Alliance

Taking Care of Business A concerted community effort is aimed at expanding economic development in Bay County By Linda Kleindienst

B

ay County has a lot simmering on the front burner. “We’ve got it in the pot. Now we’ve got to get it cooked and served,” says Neal Wade, executive director of the Bay Economic Development Alliance. “We have a lot of things going on. Our whole effort is obviously to convert those projects into real announcements we can make.” Located in the heart of Northwest Florida, Bay County in 2010 was named the No. 1 metro area in the U.S. for its economic growth potential. It is surrounded by seven military bases, is home to the newest international airport in the country, sits in the middle of the southeastern U.S., aggressively seeks out new economic projects, boasts a bustling and growing seaport and has plans for the development of new retail, housing, marina and commercial projects in the works. “And, of course, our quality of life in Bay County is very attractive to companies that may be looking to move into Florida and the Southeast,” adds Wade, whose agency has

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helped create 3,500 new local jobs since he took over nearly three years ago. “Bay is on an upward trajectory. It’s not going as fast as I would like, but I think we’ll see some great things over the next three to five years.” Carol Roberts likes to compare the county’s economic development efforts to a perfect positive storm getting ready to unleash its power. “Once we get all the pieces together, it will have an amazing effect,” says Roberts, president and CEO of the Bay County Chamber of Commerce. Panama City officials are working on redevelopment of the marina, asking for proposals that will bring a “substantial economic benefit” to the downtown. The idea is to develop a location, somewhat like The Landing in Jacksonville, that will have restaurants, retail and water access that caters to residents and tourists alike. “It’s kind of a diamond in the rough right now,” Roberts says of the marina. “But there is a potential there to generate all sorts of growth and a new image.”

Meanwhile the St. Andrews Bay Land and Development Company is working on a 700-acre project at the old airport in downtown that will have plenty of parks and commercial space, along with public access to the waterfront. And The St. Joe Company has unveiled a 50-year development plan for a mixed-use housing project near the airport that everyone agrees will be “huge” for the community and likely to draw higher earning homeowners to the market. Panama City and Panama City Beach have seen some shops close, “but it isn’t long before a new one pops up,” Roberts says. Pier Park in Panama City Beach even bucked the economic downturn brought on by the Great Recession and has kept opening new stores. Now a North Pier Park has opened and appears to be thriving. “We have had 50 or 60 new stores open up,” says Lance Allison, president and CEO of the Panama City Beach Chamber of Commerce. “Most are in Pier Park.” Tourism-wise, the “shoulder seasons” —


Local Business Incentives

Photos By Scott Holstein (Wade) and courtesy Bay County Chamber of Commerce (airport) And Andrew Rhodes/Bay Economic Development Alliance (Business Incentives)

Beside many state incentives that are available to new, expanding and relocating businesses, Bay County offers a handful of local incentives for businesses to consider when deciding on a location:

basically spring and fall — are gaining more traction with beach visitors. “Businesses don’t even shut down any more like they used to,” Allison says. “In the fall we now have lots of events and concerts. Spring break keeps getting bigger. And this year we had our biggest July ever.” Wade holds monthly meetings with the EDA’s investors (members) to update them on projects. While the individual projects are given code names for the sake of confidentiality, Wade discusses what targeted industry sector each one would touch and how many new jobs it might entail. For instance, at the meeting in June it was revealed that there were 13 active projects in the works — two involved the retention and expansion of existing businesses and 11 were new location projects. Project Curve involved a manufacturing business. Project Second Base was aerospacerelated. Project Apple Blossom was a tech project. The bad news came when Wade announced that Bay was eliminated from consideration for Project Blue Sky because of its time zone, the potential for hurricanes and the relatively small size of the metro area. But that doesn’t dampen his spirit. Wade says the county has four facilities already built that would be perfect for a call center. Meanwhile, state officials say aviation/aerospace is the fastest growing industry sector in Florida — and Northwest Florida is perfectly positioned to attract related companies. Wade has let no grass grow under his feet there, actively reaching out to aviation and aerospace companies to relocate to or set up branches in Bay County. But as part of that drive he says, “We’ve got to make sure we have the workforce. We’re trying to put together a plan to make sure we can train the workers. One of our focuses when we went to Hamburg was to meet with the people who do the training in Germany. I’m hoping we’re going to see an internship program begin to emerge in Bay County and do more training even in high school.” And, of course, there is the new airport, with 1,000 acres available for commercial development, much of it with direct runway access. “The airport remains a magnet for us,” says Roberts. “There is a lot of potential, and companies have been looking at it. We haven’t literally landed one yet, but there is no way a 10,000-foot runway is going to sit there and not be recognized by the aviation industry.”

Bay County Economic Partnership The Bay County Board of County Commissioners, in partnership with the EDA, offers a discretionary, negotiated, performance-based cash incentive to new and expanding businesses that meet minimum job creation and wage criteria. Qualified companies may be awarded from $500 to $5,000 for each full-time equivalent, permanent job created. The award amount is based on many factors, including number of jobs, wage levels, employee benefit packages, capital investment, financial history, economic impact and amount of incentive awards from competing communities. To be considered for a Bay County economic incentive award, an applicant must: ▪O perate within a sector that the EDA or State of Florida has designated as a target industry. ▪C reate at least 150 new full-time equivalent, permanent Bay County jobs paying an average wage of at least 115% of the Bay County average annual wage excluding benefits. ▪D erive at least 50% of its sales or revenues from exporting goods or services out of the region. ▪ Make a cumulative capital investment within Bay County over the life of the project that is greater than the amount awarded through the incentive program. Economic Development Ad Valorem Property Tax Exemption The Bay County Board of Commissioners, the City of Panama City and the City of Lynn Haven offer an abatement of the local property tax at the

business location on tangible personal property and improvements to real property for a period up to 10 years. In order to qualify, a company must first meet the definitions of a new or expanding business as stated in s. 196.012 (15) and (16), F.S. CareerSource Gulf Coast Board and Center Services The CareerSource Gulf Coast Board is one of 24 regional workforce boards around the State of Florida. It is chartered to address the workforce and training needs of Bay, Gulf and Franklin counties. The vehicle for providing employer and job seeker services is the CareerSource Workforce Center. Streamlined Permitting The Bay County Board of County Commissioners works together with the State of Florida’s regulatory agencies to provide quicker, less costly and more predictable permitting processes for significant economic development projects without reducing environmental standards. Special Regional Incentive — Oil Spill Recovery Incentive The University of West Florida’s Office of Economic Development and Engagement was tasked with managing and administering $30 million over three years (2012–2014) to aid in job creation and economic diversification within the eight Northwest Florida counties disproportionally affected by the 2010 Deepwater Horizon oil spill. Bay County is one of the eight designated counties. The grant program was intended to support new job creation, not to be a substitute for oil spill damage claims.

Source: Bay County Economic Development Alliance 2014 B ay C o u n t y B U S I N E S S J OU R NA L

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Airport/Port

Bay County’s international airport has 1,000 acres available for industrial development, much of it with direct runway access.

Air and Sea Connections Bay County’s airport and seaport stand ready to earn business By Jason Dehart

I

t has a long name, but officials are hoping the economic reach of Northwest Florida Beaches International Airport is even longer. Since the airport opened in May 2010, nearly three times more passengers have shuttled through its concourse than did at the old airport, Panama City-Bay County International Airport, which was located near North Bay. This makes the “new” airport a blossoming economic power. It’s also been designed to be the first LEED-certified terminal facility in the nation. “I think we have become a regional asset as compared to a downtown Panama City asset, and we’re continuing to enhance our product

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with the addition of new airlines, increased passenger and improved air carrier service as well as being a greenfield for development,” said Parker W. McClellan Jr., airport executive director. “We have land available to those who want close proximity to the airport. I think the airport and the community are poised and set and ready for growth. The airport is excited about being a part of the region’s economic development.” Beaches became the first international airport built from scratch in the United States in more than 10 years. Located in West Bay, near Panama City and Panama City Beach, the airport serves Delta and Southwest Airlines, which provide a host of daily domestic flights,

some to U.S. cities that serve as international gateways. Delta offers daily nonstop flights to and from Atlanta with connecting service to international destinations and, due to strong passenger growth, Delta now considers Beaches a Mainline Station. Southwest continues to provide nonstop service to Nashville, Houston and Baltimore as well as seasonal nonstop flights to St. Louis, and connections to the expanding Southwest’s international destinations. Recently, Southwest announced non-stop service to Dallas Love Field beginning in early 2015, after a federal law restricting direct flights out of Dallas Love Field, known as the Wright Amendment, expires. Southern Airways


NWFl BEaches International By the Numbers ▪1 0,000-foot runway expandable to 12,000 feet ▪1 20,000-square-foot state-of-the-art terminal ▪1 ,400 acres industrial land ▪O n-demand Customs and Immigration Services ▪U nencumbered air space ▪ F ree Trade Zone ready ▪O pened May 23, 2010 ▪P lans call for a 5,000-foot crosswind runway ▪ 100-ton gantry crane ▪ 300-ton fixed crane ▪ Six berths ▪ 4,200 feet of deep-water berthing ▪ Six acres of onsite storage ▪ Mean water depth of 36 feet ▪ 80,000-square-foot multi-bulk terminal ▪2 50,000 square feet of protected space for bulk

and break-bulk commodities

Photos By Scott Holstein (Interior) and Courtesy Panama City Beach CVB

Source: Bay County Economic Development Alliance

Express, operating from the airport’s Fixed Base Operator, offers nonstop flights to cities throughout the South. The airport works closely with the local municipalities, the Bay County Economic Development Alliance, the Bay County Tourist Development Council and the Panama City Beach Convention & Visitors Bureau to encourage the growth of both tourism and business, McClelland said. “That’s one of the things that we as a community are looking at, is ways to improve education and to train so that we have a workforce that is prepared and ready to go to work,” McClellan said. The airport is a great way for tourists and business travelers to go to and fro, but that’s only part of the economic engine in this part of Bay County. West Bay, a regional economic center and master planned community by The St. Joe Company,

surrounds the airport with millions of square feet standing ready to accommodate industrial, commercial and retail uses as well as homes and 900 marina slips. Additionally, there are more than 1,000 acres of “through the fence” land that will give access to the airport runway. Appropriately enough, the first tenant to set up shop here will be The St. Joe Company itself, which is moving its headquarters from Jacksonville to VentureCrossings Enterprise Centre at West Bay, a 1,000-acre development. The new four-story, 72,000-square foot multi-tenant office building has additional office space for lease right in the heart of an important aerospace and defense corridor. Tyndall Air Force Base and Eglin Air Force base are nearby, making this an excellent location for defense-related businesses to set up shop.

Port Panama City International commerce is the watchword at Port Panama City, a small but bustling harbor that annually handles some 1.7 million tons of cargo that’s valued at $3.34 billion. In fact, a recent report indicates that Port Panama City is in the top five Florida ports for cargo value. The port’s warehouses are full of imported aluminum ingots, copper plates and wire, steel and pipe. Meanwhile, tons of wood pellets milled by Green Circle Bio Energy’s plant in Cottondale await export every week to European ports. The Panama City Port Authority is focused on two priorities: supporting industrial development in Bay County and developing modern seaport facilities to promote trade. A number of key investments were made to meet those purposes, and in 2003 the port was dredged four feet to a depth of 36 feet — which makes it more attractive to new customers, particularly in the copper trade. But it also opened the door for the wood pellet export business. Over the last 10 years the port authority invested $75 million in facilities, and that’s paid off in terms of helping attract and retain key customers. For example, a container operator moved to Port Panama City from Katrina-stricken New Orleans. In fact, since 2005, Port Panama City has developed the most active container trade business with Mexico of any U.S. port. It doesn’t end there; the 2014 B ay C o u n t y B U S I N E S S J OU R NA L

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Port Panama City Success Through Diversity ▪P ort Panama City includes the

core 138-acre port located on Dyers Point, just off U.S. Highway 98 at the southwestern boundary of Panama City, and the 250-acre Intermodal Distribution Center on U.S. Highway 231. ▪O n-site rail is provided by the

Bay Line Railroad, which connects to the port’s Intermodal Distribution Center. This 250acre pad-ready inland industrial park features a 150,000-squarefoot distribution warehouse. The Gulf Intracoastal Waterway, a 1,050-mile inland navigable waterway from Carrabelle, Florida, to Brownsville, Texas, is located nearby and provides access to the Mississippi River and many southeastern ports. ▪P ort Panama City is situated on

the Gulf Intracoastal Waterway, which bisects St. Andrew Bay. The Port accesses the Gulf of Mexico via an 8.9-mile channel that runs from St. Andrew Pass (known as the West Pass) to the port. ▪1 0,863 jobs in Florida and the

Panhandle area are in some way related to the cargo activity at Port Panama City. ▪A pproximately $467.8 million in

wages and salaries were generated by Port Panama City’s cargo activity in 2012. ▪T he 2012 cargo activity at Port

Panama City generated $1.4 billion in economic value to the State of Florida and the U.S. ▪ L ocal businesses and suppliers to

the marine cargo industry at Port Panama City made $51.7 million worth of local purchases. ▪$ 43.0 million of state and local

taxes were generated by activity at the cargo terminals, including $24.0 million generated by the related users throughout the state and U.S. Source: Port Panama City; “The Local and Regional Economic Impacts of Port Panama City Final Report,” April 5, 2013.

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copper import business was something Port Panama City really focused on winning from places like New Orleans and Mobile. The container trade tonnage has also steadily increased over time. In 2001, the port handled 400,000 tons, and in 2013 it was looking at 1.7 million tons. Port officials say that over the next five years cargo tonnage will increase to an annual level of approximately 2.1 to 2.4 million tons, and the port has committed to another $35 million in improvements. The investments in the port were made possible as the state of Florida became more aggressive in offering significant financial aid through matching grants over the past decade. Despite some economic slowdowns in years past, the port has the vision to ensure longevity. Port Authority officials say the facility has worked very hard over the past 10 or 12 years to diversify and grow its cargo base because cargo activity shrank in the 1990s — a combination of the shifting of cargo from break bulk ports on the Gulf Coast to East Coast container ports and a decline in export markets for forest products.

But for any port you see, ships are only one part of a larger equation. The other half of that formula involves trucks and railways, getting goods to market faster and more efficiently. With this purpose in mind came the development of the Port Panama City Intermodal Distribution Center about 15 miles north of town. A 150,000-square-foot warehouse was recently built for transferring dry and liquid bulk products between rail and trucks. Rail sidings have been added, and work continues to improve the 250-acre site with the hope that new manufacturing can be brought to the area. Actually, it’s larger than that, because an additional 50-acre site is being prepared for use. Gov. Rick Scott last year announced that the $1.9 million distribution center project would get a $900,000 grant from the Florida Department of Transportation. At the time of the announcement, Florida DOT Secretary Ananth Prasad said, “The Intermodal Logistics Center Infrastructure Support Program is an important part of the department’s commitment to support freight growth in Florida. By enhancing


MORE POWER TO YOU

Phots By Scott Holstein (Worker) and Courtesy of the Bay County Chamber of Commerece (exterior)

Copper Capital — 50 percent of the copper that comes into the U.S. arrives through Port Panama City.

our trade and logistics infrastructure we will create job opportunities and strengthen Florida’s economy.” Port of Panama City Executive Port Director Wayne Stubbs said, “The bulk transfer facility is a key component of the Port’s Intermodal Distribution Center. The ability to transfer dry and liquid bulk products between rail and truck provides additional transportation efficiency for the Port and for the region.” Meanwhile, the port itself continues to support the industries that exist on site, which include long-time tenants like Berg Steel Pipe (a major employer in Bay County that makes large-diameter steel pipe) and newcomer Oceaneering International Inc., which arrived at the port in 2004. Oceaneering invested about $50 million in facilities when it first set up business and just committed to spend another $15 million on more capital projects. Oceaneering makes large-scale underwater cable systems called umbilicals. Port Panama City might be one of Florida’s smaller ports, but Florida DOT officials say it has certainly made a mark for itself and is improving itself all the time to broaden its ability to handle goods and services. “When you look at the Panhandle area, in Panama City for example, you have a port that brings in 50 percent of the copper that comes in through the U.S.,” said DOT district spokesman Ian Satter. “We’re improving these ports so they become more attractive to people bringing in these goods.”

Charging stations and free Wi-Fi available at ECP.

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M ilitary

Economic Force Multiplier

Air Force and Navy join forces to drive a regional economy By Steve Bornhoft

A

n undeniable aspect of Bay County commerce is the significant U.S. military presence here, which puts more than 27,000 people to work and helps America stay strong in the face of growing terror threats abroad. Here, the U.S. Air Force and Navy have found a happy home, and the local community isn’t about to let them go. Their combined presence attracts and supports a sizeable cluster of research centers, defense contractors and related companies. This means a lot of money flows through the local economy. The University of West Florida Haas Center crunches the numbers on a regular basis and provides the data in the Florida Defense Fact Book. The most recent publication suggests that, as a whole, Florida’s defense industry provides an estimated $73.4 billion statewide impact. Closer to home, Northwest Florida contributes $18.86 billion or 32 percent of the Gross Regional Product. According to a 2013 Haas Center study, Tyndall Air Force Base and Naval Support Activity Panama City (along with the Coast Guard and National 10 / 2014 B ay C o u n t y B U S I N E S S J OU R NA L

Guard) generate more than $1.16 billion in military spending and about $2.6 billion in total gross regional product; i.e., the total value of all goods and services produced in the region. Meanwhile, the average military job offers annual earnings of $77,241 — significantly above the state average earnings per worker, according to Tom Neubauer, president of the Bay Defense Alliance. “While the economic multiplier is certainly important, the socioeconomic implications are far more significant,” Neubauer said. “Our bases provide a stable economic environment for all types of business and provide the strong foundation necessary for the growth and development of our medical centers, schools, colleges and civic and charitable organizations.” Tyndall Air Force Base, located in the southeastern part of the county, teaches the art of aerial warfare and is home to the 325th Fighter Wing, which trains F-22 Raptor fighter pilots and support crew. The 53rd Weapons Evaluation Group also calls

Tyndall home and conducts air-to-air and air-to-ground weapons testing and evaluation. Tyndall got a boost in 2014 when 1,000 new jobs were added due to the arrival of a combat-coded F-22 squadron. Neubauer said there are few, if any, installations in the nation that actually grew last year because of cutbacks, so Bay County is fortunate in that regard. “There is tremendous economic pressure on military as leadership is required to find ways to complete the assigned mission with significantly reduced resources,” he said. “This trend continues to place emphasis on the need for a 20-25 percent reduction in infrastructure.” But Bay County bases remain open, and the reason for that is simple. They are significant contributors to national defense and operate productively in an efficient environment. “While much of this is the result of geography and the Gulf Range Complex, the significant support of defense communities and outstanding support by the Florida Legislature, governor’s office and


By the Numbers Combined Economic Impacts – Bay County Military Cluster ▪ 27,338 direct and

indirect jobs ▪$ 2.1 billion in total sales ▪$ 2.578 billion economic

impact ▪3 2 percent of Total Gross On land, sea and in the air, the military is part of everyday life in Bay County.

Regional Product Naval Support Activity Panama City ▪$ 498 million annual

photo courtesy Bay County Chamber of Commerce

economic impact other defense communities who share base practices, add to the value proposition,” Neubauer said. “Additionally, communities are doing a great job of telling the story, pre-empting potential encroachment or security issues through the JLUS (Joint Land Use Study) process, maintaining close contact with our congressional delegation, visiting defense leadership in Washington both as individual communities and as members of the Northwest Florida Defense Coalition.” Neubauer said that each community, together with their military partners, is searching for new ways to make each installation more efficient. They’re also using community and base resources for mutual benefit. “There are already many successes with public-private partnership opportunities, and we’re just getting started,” he said. As Base Realignment And Closure (BRAC) processes started to hit close to home some 20 years ago, the communities of Bay County faced a pretty big economic hit if its military industry disappeared. Community leaders realized early on, though, that Northwest Florida makes significant contributions to national defense. Fortunately, the Department of Defense came to the same conclusion — thanks in no small part to the efforts of the Bay Defense Alliance, a coalition of local economic leaders. “There are several key attributes that make Northwest Florida unique. One obvious

asset is the Gulf Range Complex,” Neubauer said. “The Gulf of Mexico military ranges are essential for surface, subsurface and air operations by multiple commands for R&D, test and training purposes.” Another positive factor is Northwest Florida’s long military training tradition and its reputation as a “defense-friendly military culture.” The physical environment is a great asset as well. After all, who doesn’t want to be assigned to sunny Florida? “It would be difficult to imagine Northwest Florida without the 192,000-plus defense jobs and these outstanding Americans in our communities,” Neubauer said. In Tallahassee, state officials want these efforts to continue and be successful. Earlier this year, Gov. Rick Scott announced that defense partners in Bay County were awarded $100,000 through Florida’s Defense Reinvestment Grant. The money will go toward enhancing the missions of Naval Support Activity Panama City and Tyndall Air Force Base, and to attract and retain industries that complement the military installations. The grant has been used for 15 years and helps sustain Florida’s reputation as a militaryfriendly state. Last year, the Economic Development Alliance of Bay County was awarded a $500,000 grant from the Florida Defense Support Task Force to enable construction of LambdaRail, a high-capacity data link which will connect with Naval Support Activity Panama City. This data link will allow the base to benefit from increased information technology connectivity.

▪2 ,872 military and civilian

labor force ▪$ 150 million annual

payroll ▪6 57 acres and 234 buildings Naval Surface Warfare Center Panama City Division ▪$ 450 million annual

economic impact ▪2 ,292 military and civilian

workforce ▪8 40 scientists and

engineers, 290 of which have advanced degrees ▪7 4 buildings Tyndall Air Force Base ▪E ncompasses more than

29,000 acres ▪A pproximately 7,300

military, civilian and contract personnel are employed at Tyndall, making it the largest employer in Bay County. The base provices support facilities for more than 9,000 military retirees and had a local economic impact that exceeded $642 million in the fiscal year 2009. // Compiled by Steve Bornhoft

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M edical

Keeping Bay County Healthy Medical care has evolved with upgraded facilities and specialized care

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ay County has undergone a multitude of changes over the past decade. The population has grown, industry has blossomed, tourists are arriving in everincreasing numbers and local medical care provided by the region’s hospitals and rehabilitation facilities has evolved to where it is as good as anywhere in the state. Brick-and-mortar expansion, along with innovative and improved technology — with a focus on patient care and quality service sparked by a strong sense of competition — are the hallmarks of change in the region. Not only has growth in the industry brought higher-wage jobs to the area, but the quality of medical care — and its availability — has aided with economic development. And patients who once traveled hours to get specialized services now have more of it available in their own backyard. The non-profit Bay Medical Center (part of the Sacred Heart Health System) and its competitor, the privately owned Gulf Coast 12 / 2014 B ay C o u n t y B U S I N E S S J OU R NA L

Regional Medical Center (owned by the Healthcare Corporation of America), both located in Panama City, have each tried to carve out a special service niche in the community, that special area where they can provide an extra measure of care that no one else can. As a result, Bay County residents are benefitting from centers focused on the treatment of cancer and cardiac patients and improved obstetrics care for women and high-risk newborns. A third specialty hospital, HealthSouth Emerald Coast Rehabilitation Hospital, is the only in-patient rehab facility in the county. Bay Medical Center went through a major $70 million expansion four years ago that included building a five-story patient care tower. The now 323-bed hospital cares for more than 80 percent of the area’s heart cases, is ranked among the top 5 percent nationally for cardiac services and is the only area hospital offering open heart surgery. As of December 2013, it also became one

of Florida’s 44 trauma centers, ensuring trauma surgeons, neurosurgeons and surgical specialists will be available within 30 minutes or less, 24 hours a day. “The major benefit is to injured patients — residents of Bay County, this area of Florida and our many tourists and visitors that come here,” said Dr. Glenn Summers, Bay Med’s trauma medical director. In addition to the main hospital, Bay Medical has diagnostic and rehab facilities in Panama City Beach and Lynn Haven, along with HealthPlex Fitness, a wellness facility. The hospital recently joined Sacred Heart Health System as part of a joint venture agreement between Sacred Heart and LHP Hospital Group. Sacred Heart already has facilities located east and west of Bay County, in Pensacola, Miramar Beach and Port St. Joe. Gulf Coast Regional Medical Center, a 218-bed acute care hospital, cares for the lion’s share of pediatric and obstetrics

Photos courtesy of Bay Medical Center-Sacred Heart Health System

By Linda Kleindienst and Zandra Wolfgram


Bay Medical Center is now part of the Sacred Heart Health System.

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cases. It was named a Top 100 Hospital by Truven Health Analytics, and as of this past spring has the region’s only Level III Neo-Natal Intensive Care Unit — 18 beds for children who previously had to be transferred to Pensacola, Gainesville or Birmingham for their care. Last fall the hospital opened a 42-bed critical care wing that included a 20-bed adult-level ICU and the region’s only four-bed pediatric ICU. “Having the first and only PICU here in Bay County offers a place where critically ill children can receive medical care from highly trained doctors and staff using advanced medical equipment without having to drive long distances,” said Dr. Reynaldo dela Rosa, medical director of the PICU. “It also gives the community peace of mind knowing that in the event something bad will happen to their kids, they can always receive the appropriate care they need in a short period of time.” Gulf Coast has received national accreditation for its Chest Pain Center as well as its work on total joint replacement, peripheral vascular disease, spine, stroke and wound care. It is also an affiliate of the University of Alabama at Birmingham Cancer Care Network and has earned advanced accreditation for oncology care. Although its focus is on rehabilitation, HealthSouth Emerald Coast is licensed by the state as a hospital. It opened in 1997 with 40 beds but has undergone three expansions and now can care for 75 patients. “Because we’re licensed as a hospital, our patients see a doctor (or physiatrist) every day,” said Cindy Carpenter, the hospital’s director of marketing. And, unlike in nursing homes, there is a requirement that each patient receive a minimum of three hours of therapy at least five days a week. Also, RN oversight is provided 24 hours a day. “If we weren’t here, our patients would have to go out of the area, to a nursing home or back home,” Carpenter said. HealthSouth Emerald Coast has been recognized as a stroke rehabilitation center of excellence — one of only 12 in HealthSouth’s nationwide network of 100 hospitals to gain the honor. And it has been accredited by The Joint Commission for its rehabilitation procedures for patients who have suffered a stroke or hip fracture.

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Housing

New Direction For West Bay St. Joe sets sights on retirees for long-term expansion By Kimberley K. Yablonski

L

aying out a 50-year plan may seem impossibly ambitious for most companies operating in today’s economic realities. But for a company that has nearly 80 years of history and success in Florida, it’s just another day at the office. The latest endeavor for The St. Joe Company, the historic timber and paper company turned developer and manager, is an expanded West Bay Sector Plan which, upon approval, will include residential communities for active retirees. St. Joe plans to expand the original decadeold West Bay Sector Plan to hit a market they view as a perfect fit for the Northwest Florida beach area. Similar to The Villages, the hugely successful retirement community in Central Florida, the revised West Bay plan will include a number of retirement communities. The development will be called

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Watersound (not to be confused with St. Joe’s WaterSound Beach developments) and will cater to retirees with easy access by foot, bike or golf cart to restaurants, shops and convenience stores. St. Joe also plans to incorporate more than 100 miles of trails with a complete trail network linked with existing trail systems. Residents will have access to beachfront clubs and be able to access the Gulf of Mexico by boat through intracoastal waterways. The original West Bay Sector Plan was approved by the Bay County Board of County Commissioners in 2002. The revised plan will expand the western boundary into Walton County and add an additional 53,000 acres to the original 75,000-acre land use project. All the property is contiguous to West Bay and will be one unified project. “If you look at the original West Bay Sector

Plan, it was done pre-financial crisis of 2008,” said Park Brady, chief executive officer of The St. Joe Company. “That crisis really affected the economic growth from an industrial factor and is still affecting us today. We sat and looked at the large retirement communities. They have been the least affected by economic downturns, and the numbers are very large. We also did a lot of studies looking at the retirement demographics, and we know over 15 million people will retire in the next 15 years and a lot of them want to come to Florida. We thought, ‘We have a piece of land that really fits well in a plan to make that happen.’ It made a lot more sense for us to focus on this market.” Two primary financial drivers in the Northwest Florida area are military and tourism. The military sector looks pretty stable, but there is never a 100 percent guarantee it will stay that way, Brady explained. And tourism is seasonal, so it can be difficult to operate, he added. “This would provide a third strong economic leg for the stool. These people don’t put big demands on the communities’ infrastructure,” Brady said. “At The Villages, people say they ‘stay on campus.’ We felt this was a great fit. This is a 50-year plan, and very few communities can offer the continuity of one owner.” The original plan, which included the creation of the Northwest Florida Beaches International airport, focused on developing business diversity around the airport. St. Joe

Renderings courtesy St. Joe/Hart Howerton Partners, LTD

Several town centers will be scattered through the development.


wanted to generate economic activity through commercial and industrial business sectors. “The original idea was to use the land around the airport for economic development, and we are still doing that,” said Jorge Gonzalez, senior vice president of development. “We have a commerce park with infrastructure in place to accommodate business. We have one tenant who has been there a couple of years. We have pad-ready sites. We are not changing any of that.” What has changed is the acreage that will be used for development from 75,000 acres to 128,000 acres within one unified project. The West Bay Preservation Area aspect of the plan was designed to protect 33 miles of undeveloped shoreline and 44 miles of creeks and tributaries. Under the new plan, the amount of land set aside for protection will also increase, from about 40,000 acres to 53,000 acres for conservation. “We spent two-and-a-half years and millions of dollars planning this project — a process that included a very detailed inventory of all of our land from an environmental input,” Brady added. “It is very important for us to know every square foot of our property.” As far as the comparison to The Villages goes, Brady notes that development’s success. “We admired The Villages for what they have done on 25,000 acres. We think we can provide a better venue,” he said. “Almost 50 percent of our acreage won’t be developed. We will offer access to the Gulf of Mexico, lakes, the bay and 15 miles of intracoastal waterways as well as preservation land. Retirees want a healthy lifestyle as well as an environmentally conscious lifestyle. We want the residents to take ownership in the well-being of the land.” Added Gonzalez, “The Villages started their development in the 1960s. They have their time and place, and we have our time and place. The

land here is quite different. We are taking a different approach.” Watersound Origins will be the first development offered within Watersound. As St. Joe brings other communities on board over time, they will have other names besides Origins, but the common thread will be Watersound. The company anticipates the majority of the Watersound project will be age restricted and the rest age targeted. The expectation is that some buyers will use their homes as second homes for vacations until they actually retire. However, they also expect to have a lot of traditional residential for support that will not be age restricted or targeted. Prior to submitting any formal application to the state, St. Joe held numerous public forums to explain the project and receive input from the community. St. Joe also hired planners to overlay plans that would have minimal impact on the land and met zoning and regulatory requirements. Now, the formal application has been submitted to the state. St. Joe will work with Bay and Walton counties as well as the state to move the planning process forward. The goal is to gain approval on the master plan from all parties sometime in mid to late 2015. Once the long-term master plan is approved St. Joe will incrementally do Detailed Specific Area Plans (DSAPs). These very specific plans deal with smaller geographic areas, and the counties get to review them. “It is a 50-year plan. That is very ambitious. It is important to remember that the build-out will be a very gradual implementation based on how the public responds,” Gonzalez said. Founded in 1936 as The St. Joe Paper Company, JOE, as the now public company is listed on the New York Stock Exchange, has certainly morphed along the way. Remnants of its roots as the single largest landowner in Florida still remain although they are waning.

Earlier this year, the company sold 380,000 acres of timberland and rural land in Northwest Florida to subsidiaries of Utah-based AgReserves Inc. for $562 million. AgReserves, an affiliate of the Mormon Church, reportedly intends to continue agriculture and timber uses of the land. The sale included the majority of St. Joe’s timberlands in Bay, Calhoun, Franklin, Gadsden, Gulf, Jefferson, Leon, Liberty and Wakulla counties. With this sale, St. Joe’s land ownership was reduced to 185,000 acres. The company will continue its forestry operations but on a limited basis. St. Joe does, however, still have rural land and forestry programs in place with sustainable forest management, timber management, land management and conservation programs in place.

How Sweet It Is

SweetWater to provide homes, businesses and green space at old airport site By Linda Kleindienst Bay County’s abandoned airport is being transformed into the largest master planned development in the history of Panama City. The airport authority sold the 700-acre site to Leucadia National Corporation in February of 2011 for $51.4 million. This spring, the developer broke ground, predicting a 10–20 year build out that will provide homes for more than 3,000 residents and 700,000 square feet of commercial space. Leucadia, represented locally by the St. Andrew Bay Land Company, developed Rosemary Beach in nearby Walton County, and is expected to incorporate some of the same features, including open green space and parks for community use. Homes will be built for permanent residents, not for vacationers. The project also includes an elementary charter school run by Florida State University.

St. Joe’s development plans provide lots of green space and homes with easy access to shopping and restaurants. For more information, visit bay-waltonsectorplan.com.

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Seafood

A Tale of Two Fisheries Commercial survivors OK; recreational fleet is reeling

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Catches made from commercial boats are limited by Individual Fishing Quotas (IFQs). Boats are equipped with vessel monitoring systems and monitored by National Marine Fisheries Service personnel. Offloading operations are overseen by NMFS observers and catches deducted from quotas. Abrams supports the extension of that system to the recreational charter boat fleet, but Anderson views it as too burdensome. “All the data the government needs is available dockside,” she says. “We go out and return to the same slip. We’ve got to get our customers back to their cars.” And accurate data, she is convinced, would result in a larger overall recreational quota. Abrams, meanwhile, after fervently opposing IFQs for a year and a half, has made peace with them. “Quotas became a reality, and I had to adapt,” Abrams says. “It’s not the best tool, but the government gave us a tool and we can catch our fish when we want to. The market

Photo Courtesy of Capt. Anderson’s Marina

G

explosion, she added, “This is their second reg Abrams walked into G. Foley’s ‘BP,’ and it’s worse than the first.” Restaurant on 23rd Street in Panama For the casual saltwater angler, the red City on a recent Wednesday aftersnapper may be the perfect fish. It’s pretty, noon, encountered owner George Husum and it tastes good and it’s easy to catch. They declared, “I know what you’ve got and I know are voracious feeders, leading Abrams to call what I’ll have.” them “saltwater piranha.” Abrams, the owner of a Panama City Curiously, both the commercial and the seafood operation and the Tarpon Dock recreational fishing sectors agree that there Seafood Market, was aware that one of his are too many red snapper in the Gulf, to the drivers had delivered an order of black grouper point where grouper populations are suffering. filets to Husum that morning. Abrams has made a point of sending photos of “Grouper sandwich, write it up,” Abrams juvenile grouper removed from snapper bellies directed Husum, and when the meal arrived, to federal authorities. Abrams would say later, “It was out of this world.” The sectors agree, too, that regulators It was a Wednesday, what Abrams calls his don’t have a good handle on recreational “good day,” when seafood house operations catches. Estimates based on telephone are slowed to allow for “getting things cleaned surveys and a small number of dockside up and reorganized.” Such respites never intercepts are crude at best, they concur. last long. Boats loaded with golden tilefish, The regulators, themselves, find that better yellow-edge grouper and Warsaw grouper accountability measures need to be put in were on their way in. place. But there is deep disagreement on Business was slow, too, at Capt. Anderson’s how to improve the system. Marina on Grand Lagoon in Panama City Beach, but not pursuant to any plan. Headboats were running at far less than their 60-angler Charter fishing fleets capacity, and most of the charter face an uncertain future. boats that operate from the marina were tied up at the dock. To blame, according to marina operations manager Pam Anderson, is this year’s severely abbreviated red snapper season, so short, at nine days, that it came to be known as Snapper Week. “Our captains looked forward to the snapper season, such as it was, so they could catch up on their fuel bills and slip rental,” Anderson said as a headboat displaying modest catches of white snapper and beeliners arrived at the dock. “Now they are hurting again.” With reference to the Deepwater Horizon oil platform

By Steve Bornhoft


doesn’t get flooded, we get top dollar for our fish and our customers get fish of high quality.” Anticipating the arrival of a quota system like that in place today, Abrams bought up lots of boats — he has a fleet of 14 vessels from which pole fishing is conducted — and collected lots of permits and assembled lots of catch data. As a result, he did well when IFQs were handed out. Equal parts fishmonger and logistics expert, Abrams runs an operation of a scale far larger than all but insiders realize. He owns eight Peterbilt tractor-trailer rigs that make regular runs to cities including Atlanta, Baltimore, Philadelphia and New York, delivering seafood and returning (in season) with produce from New Jersey and fish bait (Boston mackerel, prized because of its oiliness) from Delaware. Twenty-eight independent boats unload their catches at Greg Abrams Seafood. Abrams employs 12 truck drivers and 37 office, warehouse and retail store employees. A total of 91 contract employees comprise the teams that man his boats. He spends $40,000 to $60,000 on diesel fuel every 10 days. Locally owned businesses supply him with his tackle and hardware. Boats leave his docks with $1,200 of groceries on board. Machines at the Panama City fish house turn out 40 tons of ice daily. He owns another fish house in Leeville, Louisiana. He handles fish delivered to Port Panama City by ships out of Progreso, Mexico, an opportunity that developed after Hurricane Katrina severely disrupted port operations in Gulfport, Mississippi. All of this is big stuff for someone who started out selling shrimp from the back of a pickup truck in 1977. Shrimp remains a mainstay of Abrams’ business along with snapper, tuna, swordfish, grouper and scamp. Tuna catches have been exceptional this year. Anderson fears that if “BP II” persists for another two or three years, charter boat fishing will have been largely extinguished. “We have options. We could sell this property to a developer and come out all right. But we are committed to perpetuating the fishing legacy of this place for as long as we can.” Abrams, too, can foresee the day when his seafood business is snapped up by a large corporation. But he hopes there always remains an opportunity for those people who “can’t stand to work on land” to make a living at sea.

Catches made from commercial boats are limited by Individual Fishing Quotas (IFQs). Boats are equipped with vessel monitoring systems and monitored by National Marine Fisheries Service personnel. Offloading operations are overseen by NMFS observers and catches deducted from quotas.

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RECENT PROJECTS

BEFORE

AFTER

AD

The Panama City Community Redevelopment Agency is investing TIF monies into four districts, improving blighted areas; building and repairing roads and infrastructure; cleaning polluted land and developing vacant and underused property for the people of Panama City. Each district offers numerous unique community assets, a full schedule of festivals and events and volunteer citizen groups who are redeveloping their communities into award-winning, dynamic urban centers. The City’s investments in these areas are repaid through improved, productive properties that become revitalized, permanent revenue generators.

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AFTER

Panama City Community Redevelopment Agency

819 E. 11th Street, Suite 11, Panama City, FL 850.215.3869 | pcgov.org 18 / 2014 B ay C o u n t y B U S I N E S S J OU R NA L


E ducation

Back to the Easel Emerging coalition strives to boost student achievement By Steve Bornhoft

photo Courtesy of Bay District Schools

S

eventeen years ago, Bay County undertook a “visioning process” intended to identify the community’s shared priorities, determine baselines and goals related to them and outline strategies and tactics for achieving success. A facilitator was hired, committees were established and prominent people from assorted walks of life gathered around easels in brainstorming sessions. A report was produced, sure enough, centered on priorities whose emergence could have been predicted: employment, education, environment, etc. But, alas, the visionaries soon lost sight of their work. Five years later, in 2002, the Citizen Leadership Institute at then-Gulf Coast Community College sought to revive the project. It conducted meetings aimed at discovering whether the community’s priorities had shifted since the first visioning process — they really hadn’t — and again went about listing objectives in a 15-page document titled, “Better Bay County Plan, 2002–2022.” “The citizens of Bay County have spoken,” signed off the writers of the report, but their words didn’t reverberate for long. Kim Bodine is aware of this history as she goes about spearheading a new priority-and-goal-setting exercise, this one to be patterned after Alignment Nashville, an effort trained on “public school success, children’s health and the success of our community as a whole.” It was founded in 2004 by civic leaders concerned about low graduation rates, low standardized test scores, high teen pregnancy rates and the large-scale defection of public school students to charter schools. The Nashville project was begun in 2004 and has been instrumental in bringing about dramatic, well-documented progress. Nashville’s high school graduation rate has gone from 58 percent to 82.9 percent. The teen pregnancy rate has dropped by 25.5 percent and the average age of gang members has increased from 16 to 22. In April, Bodine, the executive director of CareerSource Gulf Coast, and Ann Leonard, a career and technical education director, pulled together a meeting of some 200 people, most of them business men and women, to talk about Alignment Nashville and assess the appetite for pursuing a similar initiative in Bay County.

Education of a smart workforce needs to start early.

Sydney Rogers, Alignment Nashville’s executive director, addressed the group along with Bay County Superintendent of Schools Bill Husfelt. EDUCATION Most were flabbergasted to learn from Educational Attainment Husfelt that 57 percent of Bay County (Persons aged 25 and older) public school students qualify for free High School graduate or reduced-price lunches, and that or higher ������������������������������87.1% the district works with more than 800 Bachelor’s degree students who are homeless. or higher �������������������������������� 21% Rogers acquainted the group with the Higher Education Institutions Alignment Nashville model and then ▪ F lorida State University challenged her audience, noting that Panama City “very often in communities, there is too ▪ Gulf Coast State College much planning and not enough results. ▪E mbry-Riddle And there are lots of well-intentioned Aeronautical University organizations that work in silos. They ▪ Troy University don’t interact for maximum effect.” Bodine was pleasantly surprised when meeting-goers, without exception, endorsed the idea of going forward with a local alignment project. Funding for the project will be community based. She is making appeals to local foundations. “There’s a big difference between setting goals and implementing action plans,” says Bodine. “People recognize that there are problems affecting our schools that the schools, alone, can’t solve and they want to move beyond just talking about them. “We need to be concerned about the sustainability of our community. When people are leaving town because they can’t make enough money to support their families, we are reaching a tipping point. Wages in Bay County have declined over the past 10 years, and poverty is a big factor in student performance.” In August, Bodine and Leonard were working to assemble a 25-person board of directors and anticipated that the group would meet for the first time in mid-September. Alignment Nashville comprises a governing board, an operating board and 24 tightly focused committees, including an Adolescent Sexual Responsibility 2014 B ay C o u n t y B U S I N E S S J OU R NA L

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Committee and a Refugee and Immigrant Support Committee. But it started out with just three: the Pre-K and Elementary School, Middle School and High School committees. “We’re going to start with the same three committees here,” Bodine notes. “K-12 education is universal to everything. Our schools of higher learning, employers and society as a whole all take delivery of the work product of our public schools. Additional committees will be formed based on the recommendations of the superintendent and our board of directors.” Bodine stresses that it’s the district that drives the (school) bus. “We aren’t going to tell them what to do,” she says. “District personnel are the folks who are charged by the state with educating our children. We will help the district achieve its strategic plan by removing obstacles in its path.” Nashville committees all relate to tactical plans that are remarkable for their specificity. Each includes strategies, tactics, outputs and measures. For example, the Adolescent Sexual Responsibility Committee, which has somehow managed to bring representatives of Planned

Parenthood and Catholic Charities together, is tactically committed to employing online media to facilitate continuing communication between itself and youth-serving professionals. “It’s not easy to keep volunteers engaged and on task,” Leonard points out, “but the outcomes that result from significant people who all have their oars in the water can be amazing.” Nashville identified school readiness as a serious concern and committed to seeing that all 3- and 4-year-olds in the city were exposed to a set of books deemed “essential pre-K literature.” Printing companies, trucking firms, libraries and financial contributors combined to saturate the community with books such as “Pete the Cat: I Love My New Shoes” about a black feline with white sneakers. A local college developed instruction sheets listing discussion points and detailing activities to extend the reading experience. (“What would happen if you ruined a pair of new shoes? How would you feel? How did Pete feel?”) Husfelt, Leonard and Bodine agree that the Bay County community’s support for schools is “fragmented.” People have a tendency to support their neighborhood schools or their

high school alma mater without thinking about what is good for all. “We’ve got to get the right people working together and, historically, we haven’t been very good at that,” Husfelt concedes. Bodine cautions that results will not be immediate and that the education of parents will be a key to improving student performance. “We’ve got a lot of work to do,” she says. “Many parents have no real idea about what their child must do to graduate from high school. I hear people say that kids come out of high school unable to add or subtract, and I have to tell them that students are required to pass algebra and geometry to graduate. Parents don’t know that students must complete two advanced science courses to get their diplomas.” Bodine finds that the district has done a fine job providing opportunities, such as the International Baccalaureate program for advanced students, but must do more to provide paths to success for the other 70 percent of students. “There are students in Bay County who shave before driving to middle school,” she says. “We’ve got to have tracks that enable them to advance.”

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Tourism

Tourism Strong

Bay County’s tourism industry has grown from a fleeting summer fling to a year-round love affair — with millions to show for itself By Chay D. Baxley

A

respite during the sweltering summer months, Bay County’s impressive 27-mile stretch of crystal clear coastline has been attracting seasonal visitors for decades. A longtime summer destination for those living in the Southeastern United States, the county’s most alluring attraction has always been its breathtaking natural resources — namely, the world-renowned Panama City Beach. While vacationers gush over the county’s beautiful vistas and vibe on its classic, true 22 / 2014 B ay C o u n t y B U S I N E S S J OU R NA L

American beach-town atmosphere, when it comes to the local economy, visitors’ enduring (and profitable) presence can only mean one thing: in Bay County, tourism is king. And the king’s reign is expanding. “We do recognize that it is our No. 1 industry in Bay County,” stated Carol Roberts, the president and CEO of the Bay County Chamber of Commerce. “We certainly respect that.” To help show its support, the Chamber has successfully upgraded National Tourism Week — celebrated annually during the first week of

May — to an entire month of fun-filled festivities. Of course, their admiration has been dutifully earned, with the total amount of visitor spending reaching well over $1 billion (at an average of $3,112,676 per day) in 2013 alone. Overcoming a series of economic hardships, including the Great Recession and the infamous BP oil spill, wasn’t easy — but Bay County tourism has managed to endure. Sources say, they’re stronger than ever before. “We weathered the storm better than most,” explained Dan Rowe, president and CEO at Panama City Beach Convention & Visitors Bureau. “During the Great Recession, we saw an increase in our Tourist Development Tax collection, which is a direct reflection of an increase in lodging revenues. We were one of two communities that I’m aware of in the state of Florida that saw positive growth during 2009, the other one being the Florida Keys.” The Tourist Development Tax, commonly referred to as “bed tax,” funds the marketing activities of the Panama City Beach

photo Courtesy of Steve Beaudet/Panama City Beach CVB

Bay County’s beaches remain its top tourism draw.


Convention & Visitors Bureau; and is also used for beach cleaning and grooming, product improvement and beach re-nourishment. In 2013, nearly $16 million was collected. As of July, numbers for 2014 are up. Way up. According to Rowe, it was the loyalty of vacationers from far and wide that kept the county afloat during the darkest of days. On more than one occasion in the midst of 2010’s Deepwater Horizon oil spill, Rowe says visitors took to social media to refute claims that oil was “lapping up” on Florida’s Emerald Coast. Their accolades encouraged fellow travelers to check out the beach for themselves. “People doubled down on Panama City Beach,” shared Rowe. “What we heard from our visitors was that ‘this is our beach, too.’ ” With the national economy finally gaining upward traction, so too has Bay County’s chief moneymaker. In 2013, sleeping room sales climbed to 2,306,800 — an increase from 2012 of 4.6 percent. First time visitor sales were up, too: 4.7 percent in winter, 17.2 percent for spring, 9.8 percent during the summer and a whopping 24 percent during the fall season. PCB TOURISM All this newfound By the Numbers in 2013 attention has trans▪T otal visitor spending was formed Panama $1,135126,851 — a 7.3 City Beach from the percent increase from 2012. summer destination of ▪T he average visitor’s daily yesteryear and a spring spending was $79 in the breaker’s paradise, to winter season, $86 in the a year-round hotspot. spring, $94 in the summer Ma ny Ca nad ia n and $71 in the fall. retirees have found ▪2 ,306,800 rooms were sold over-wintering in the — a 4.6 percent increase county an attractive over 2012. option for their quick ▪8 4 percent of visitors Florida-fix to the cold planned on returning within weather of the North. one calendar year. 59 percent For local business had been to PCB. owners, their continued ▪P anama City Beach Tourist patronage has made all Development Tax collected the difference. $15,734,252 , compared to “There were times, $14,526,264 in 2012. I recall, after Labor Day, people closed up shop on Panama City Beach,” reminisced Roberts, who’s been a part of the business scene in Bay County for 37 years. “You could go, and this is probably an exaggeration, for (what seemed like) hours and not have a car on Front Beach Road.” Those days appear to be long gone, though. Experts are optimistic as to where the county’s tourism industry is headed — and what the bump in revenue could potentially mean for the local economy. “We’re very excited about the future,” enthused Rowe. “There’s a lot of opportunity here for the residents. Restaurants and shopping opportunities, the bay … our best days are definitely in front of us.” 2014 B ay C o u n t y B U S I N E S S J OU R NA L

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Sports

Frank Brown Park

Diamonds are Panama City Beach’s best friends By Steve Bornhoft

photo by Matt Burke

B

aseball officials are concerned that youths are becoming increasingly disinterested in the National Pastime. The game is too slow, they fear, for children growing up in a world built increasingly on instantaneity, not waiting on a good pitch to hit. Hall of Famer Joe Torre, Major League Baseball’s executive vice president for baseball operations, considers that finding ways to engage young people will be new baseball commissioner Rob Manfred’s greatest challenge when he relieves Bud Selig in January. Maybe he should call Larry Thompson. Thompson, the owner of Grand Slam Sports, makes his living promoting, organizing and hosting youth baseball tournaments in divisions ranging from “8-and-Under” to “18-and-Under.” He founded his business in Columbus, Georgia, 10 years ago, before moving to Panama City Beach early in 2013. Thompson didn’t yield to a hydrotropism in moving to the Gulf. Rather, it was the dirt infields and grassy outfields of Frank Brown Park that brought him to Bay County. A few years after the park, located near the intersection of U.S. 98 and Highway 79, was expanded in 1998 and 1999 to include five new ballfields, Thompson approached Panama City Beach’s Parks and Recreation Department seeking permission to hold a “Grand Slam World Series of Baseball” at the facility. First held in 2003, Thompson’s World Series attracted 62 boys’ baseball teams and was conducted in a week. This year’s series was held over four weeks and involved 500 teams from 20 states.

Larry Thompson came to Bay County for the grassy fields, not the beach.

The growing youth baseball business in the Southeast is recession proof, Thompson has found. And hurricane and oil spill proof. “We experienced no drop-off from the BP scare,” Thompson says. “It’s a priority for parents to provide their boys with a competitive baseball experience in a tournament atmosphere. And Panama City Beach gives folks an opportunity to make the baseball games part of a family vacation.” Thompson conducts 250 tournaments across the Southeast each year, eight of them at Frank Brown Park. Most serve as Grand Slam World Series qualifier events. “Frank Brown Park is a diamond in the rough,” Thompson says, unaware of his wordplay. “It’s a top-notch multi-purpose facility with fields that can accommodate softball, baseball, soccer and lacrosse.” Too, the park includes an aquatic center, tennis courts, a 20-acre festival ground and a

Miracle League plastic-turf field reserved for disabled youths, including children in wheelchairs. “The only way I know to make Frank Brown better is to make it bigger — add more fields,” Thompson says. As it happens, the Panama City Beach Convention and Visitors Bureau has plans to do just that. It is actively looking for land for park expansion and has squirreled away BP money for that purpose. In addition, the CVB has banked $1 million in excess bed tax revenues the last two years. “We’ve got about $7 or $8 million in total in a capital improvements fund, and more fields is our top priority,” says Richard Sanders, the CVB’s vice president for sports and events. “Without them, we’re turning away 300 youth teams a year.” Sports will result in more than 100,000 room nights and $60 million in direct spending 2014 B ay C o u n t y B U S I N E S S J OU R NA L

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in Panama City Beach this year. Activities held at Frank Brown Park will account for 60 percent of that total, according to Sanders. Spending is calculated using a formula devised by the Florida Sports Foundation, a part of Enterprise Florida Inc. That formula assumes spending by adults of $150 per day and $75 daily by children. Girls’ fast-pitch softball is the top draw at the park followed by boys’ baseball and youth soccer. Lacrosse is on its way. The park hosted the first lacrosse tournament in its history in July. Sixteen teams traveled to Bay County from Atlanta, Pensacola and several Louisiana locales. Frank Brown for years hosted lacrosse spring training for dozens of teams from northern colleges and universities, but the activity outgrew the park and moved to West Palm Beach. “Lacrosse is what’s next,” Sanders predicts. “The —Richard Sanders, the Panama City Beach Parks and Recreation DepartCVB’s vice president ment is going to pilot a for sports and events lacrosse program this fall. Arnold High School (in Panama City Beach) is looking at adding it as a club sport.” Sanders attends annual conventions, including those held by the National Association of Sports Commissions and Travel, Events and Management in Sports (TEAM), where he meets with event right holders and may land business for Frank Brown. But he emphasizes the importance of homegrown, locally based activities whose presence can be counted on from year to year. “You go to a convention, you bid on an event and you may win the bid this year but next year it goes up for bids again,” Sanders notes. In addition to adding fields to Frank Brown, the CVB has an indoor special events center on its white board. Conceptual conversation about that project has become serious, according to Sanders. The center would be designed to accommodate basketball, gymnastics, cheerleading, dance and volleyball competitions and would include space for sports medicine practitioners. It could handle trade and boat shows. Sanders anticipates that it may result from a private/public partnership. “The center would make us a year-round sports destination,” Sanders enthuses. “Right now, we lack an appropriate venue for winter sports. A basketball tournament may require that we use five different gyms from across the county.” Sanders would much rather see bed tax dollars invested in an events center than a minor league baseball park, an idea that seemingly surfaces in Bay County every few years.

“We realized that you had to put on tournaments in places where people could make a vacation out of their trip, and Panama City Beach was the perfect model for that. We promote our events by encouraging people to make an extended stay out of them, and a lot of businesses benefit.”

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“Minor league baseball might be a good thing for the community, something we could rally around, but it’s not the best use of tourist dollars,” Sanders said. “A minor league team would play a 71-game home season and generate about 1,500 to 2,000 room nights in total. You’re looking at $30 million for a stadium and that’s a lot to spend for that kind of return. “We host numerous events that generate more room nights in a weekend, and we don’t have a dime invested in them.” Sanders says that Thompson helped him realize in 2004 or so that the softball and baseball game had changed. No longer were families devoting weekend after weekend to traveling to tournaments in locations that didn’t have much to offer beyond the action on the field. “We realized that you had to put on tournaments in places where people could make a vacation out of their trip, and Panama City Beach was the perfect model for that,” Sanders says. “We promote our events by encouraging people to make an extended stay out of them, and a lot of businesses benefit.” Sports activity provides a big boost to amusement parks, retailers, restaurants and hoteliers. Traveling teams each tend to have unique pins. Like Olympic athletes, players gather at venues including Rocket Lanes to trade them. Does Sanders share the concern of those who fear that youths aren’t embracing sports as they once did? “I’m concerned about technology,” he concedes. “We need to get our kids off the sofa and onto the grass and dirt. When I was a boy, I dragged bats for my daddy’s church league softball team. That’s where it starts.”

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28 / 2014 B ay C o u n t y B U S I N E S S J OU R NA L


BUSINESS NEWS

SoundByteS

Capital

New Beginnings

» Nan Hillis, a

veteran banker and former BB&T region president, has been named chief strategy officer for Prime Meridian Bank, Tallahassee. Hillis previously oversaw Hills bank operations for BB&T’s Central Florida region.

» Lorne Sim-

mons has been promoted to health care manager in the Tallahassee office of Moore Stephens Lovelace, a regional certified public accounting and business advisory services firm.

& Sams — State and Federal Government and Administrative Practice.

» Rumberger, Kirk & Caldwell

attorney Brian Hayden is one of 21 members selected as part of the inaugural class of Thunderdome Tallahassee, a hands-on legal group training program designed by the Legal Aid Foundation of the Tallahassee Bar Association to provide education, mentoring, networking and leadership to a new generation of lawyers serving Leon County.

Local Happenings

» Two of Florida’s largest

Simmons

» Lisa Garcia has

been promoted to senior vice president of public relations at Sachs Media Group.

» Florida

TaxWatch, an Garcia independent taxpayer research institute, has made two additions to its professional staff: Gabriela “Elle” Piloseno and Dave Aussicker Ph.D. Aussicker is the new vice president for development, and Piloseno is a research analyst for the TaxWatch Center for Smart Justice.

Legal Happenings

» Veteran

insurance attorney Nate Wesley “Wes” Strickland has joined Colodny, Fass, Talenfeld, Karlinsky, Abate & Strickland Webb as a partner to head the firm’s Insurance Regulatory practice in Tallahassee.

» John Loar

has joined the Broad and Cassel Tallahassee office as an associate in the Commercial Litigation and Health Law practice groups.

Loar » Three Tallahassee lawyers are among 165 statewide who recently earned Florida Bar board certification. They are: Courtney Brewer of The Mills Firm in Tallahassee — Appellate Practice; James W. Gustafson Jr. of Searcy Denney Scarola Barnhart & Shipley — Civil Trial; and Susan Lynne Stephens of Hopping Green

organizations serving the association industry will soon become one. Tallahassee Society of Association Executives and the Florida Society of Association Executives (FSAE) will join forces in 2015 under the FSAE brand. They bring together hundreds of professionals working in the association sector and more than 400 organizations in the Tallahassee area alone.

» Eduardo Gonzalez Loumiet of

Uber Operations will be teaching this fall at Florida A&M University’s School of Allied Health Sciences as an assistant professor of Health Technology.

Local Honors

»

MCCi and The Bean Team of Tallahassee have been selected as two of 50 leading second-stage companies chosen from more than 500 nominations statewide as this year’s Florida Companies to Watch winners presented by GrowFL. The awards program celebrates privately held second-stage companies headquartered in the state. To be eligible, applicants must employ between 6 and 99 full-time equivalent employees and have between $750,000 and $50 million in annual revenue or working capital in place.

» Chef Terry

White, owner of Tallahassee’s Sage restaurant, was crowned King of American Seafood in a competition against 18 chefs from other states White in the 11th Annual Great American Seafood Cook-Off in August.

» Julian Dozier of

Thomas Howell Ferguson P.A. has been chosen as one of 38 young CPAs to participate in the American Institute of CPAs 6th Leadership Dozier Academy in Durham, North Carolina, this fall.

» Sachs Media Group won the

Silver Award in the national Bulldog Reporter recognition for the best PR agency for non-profits in the 2014 award competition.

» Alpha Foundation Special-

ists has earned the coveted 2014 Torch Award for Marketplace Ethics presented by the Better Business Bureau. Joshua Griffin, a system design specialist with the company, received the 2014 BBB Customer Service Excellence Award that recognizes individuals who go above and beyond in their customer service.

» Sonitrol/Redwire of Tallahassee,

a provider of verified electronic security to businesses, schools and homes, has been named one of the nation’s top 100 security providers in 2014, according to SDM Magazine. Now in its 41st year of publication, SDM Magazine has ranked the 100 largest security companies in the United States each year since 1991.

Appointed by Gov. Scott

» Linda DiGonzalez, 59, of

Tallahassee, the director of volunteers for senior citizens for Westminster Oaks, to the Florida School for the Deaf and the Blind Board of Trustees.

» Courtney D. Heidelberg, 36,

of Tallahassee, to the Florida is for Veterans Inc. Board of Directors.

» Dhyana Ziegler, 65, of

Tallahassee, the Garth C. Reeves imminent scholar chair of journalism at the Florida A&M University, to the Florida Commission on the Status of Women.

Emerald Coast

Local Happenings

» In its signature fall “500/5000”

issue, Inc. magazine named Northwest Florida-based Sunshine Shuttle & Limousine as “One of America’s Fastest Growing Private Companies.” Located in South Walton County, the company has grown its menu of services to include privately funded public transportation along Scenic Highway 30A, Panama City Beach during Spring Break, Seaside employee rideshare and shuttle service covering the 2,400-acre Sandestin Golf & Beach Resort.

» The Studer Institute and the

University of West Florida have created a partnership that will allow Rick Harper, the University of West Florida’s assistant vice president of economic development, to become director of the Institute.

» The Greater Pensacola Chamber officially celebrated its 125th anniversary in September.

850 Business Magazine

»

The Federal Aviation Administration has published its latest revision to FAA construction standards and it includes the new P-601 Fuel Resistant Hot Mix Asphalt Pavement specification developed by AVCON in Niceville as a new federal standard.

» The Pensacola International

Airport has launched its newly improved, mobile-friendly website FlyPensacola.com. The redesigned site showcases sleek graphics, vibrant photos and new navigational tools to enhance the user experience and offers in-depth information about airport operations and air travel to and from Pensacola International Airport.

New Beginnings

» Footbridge Media, a provider

of marketing services to the home improvement industry, has moved to a new location to accommodate a growing staff and expanded services for contractors throughout the U.S., Canada and U.K. The company has relocated to a larger facility downtown on Palafox Street.

» Indian Motorcycle of Pensacola

has opened at 6330 Pensacola Blvd.

» Anne Kachelhoffer, RN, has

joined White-Wilson Medical Center’s Senior Leadership Team as the administrator of the Emerald Coast Surgery Center, where she will oversee all aspects of the ambulatory surgery center’s operations.

» The Ropella Group has added

new headhunters to its Executive Search consultant team — Jess Kelly, Megan Williams, Adam Klempa, Michael Melendez and Scott Schmieder.

Local Honors

» Dr. Olivier

Broutin of Bluewater Bay Dental was recently awarded Mastership in the Academy of General Dentistry (AGD) — an Broutin honor earned by fewer than 2 percent of all general dentists.

» Two local Realtors were honored at

this year’s Florida Realtors Conference and Trade Expo. Justin Lindsey, a former Army captain, was awarded Newcomer of the Year. Bob Hudgens was given the Realtor Achievement Award — for the second time.

» Hilton Sandestin Beach Golf Resort & Spa has garnered four more awards from national industry trade publications: the Pinnacle Award from Successful Meetings magazine, the Award of Excellence from Corporate & Incentive Travel, Best of the South from Meetings Focus

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October – November 2014

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BUSINESS NEWS

SoundByteS

magazine and Gold Key winner from Meetings and Conventions.

» Three area lawyers are among

165 statewide who recently earned Florida Bar board certification. They are: D. Michael Chesser of Chesser & Barr P.A. in Shalimar — City, County and Local Government Law; Donna Sessions Waters of Pensacola — Education Law; and Erick M. Drlicka of Emmanuel Sheppard & Condon in Pensacola — Labor and Employment Law.

» SPROUT Content, an inbound

marketing firm, has achieved the Silver Level Agency Partner Certification from HubSpot. The tier structure is based on revenue, retention, engagement and client satisfaction.

» Wells Fargo

Advisors has designated Chris J. Ogle, first vice presidentinvestment officer, as a member of the firm’s Premier Ogle Advisors Program, a distinction that reflects his achievement of professional success by meeting or exceeding Wells Fargo Advisors’ high standards as measured by

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October– November 2014

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one or more of the firm’s criteria for revenue generation, educational attainment and client-service best practices.

» Kathleen Baldwin, a CPA with

Warren Averett, has been elected to the executive committee for the Construction Industry CPAs/ Consultants Association.

Appointed by Gov. Scott

»

Jamie Bristow, 45, of Pensacola, president of Nonprofit Match Inc., to the Florida Council on Arts and Culture.

Forgotten Coast Local Honors

» The Apalachee Regional

Planning Council, based in Tallahassee, has received a 2014 Innovation Award from the National Association of Development Organizations Research Foundation for the Wakulla Environmental Institute project. A project of regional importance of Tallahassee Community College, the Institute will develop and train the next

850businessmagazine.com

generation of environmental professionals, tour guides and park managers. The new campus, located south of Crawfordville, will offer associate degrees and certificate programs. Many of the programs will be offered online to facilitate career development of working adults.

Bay

Local Happenings

»

The Business Innovation Center in Panama City has entered into a partnership with FINALE ENTERPRISES/ FINALE INTERACTIVE to offer consultation and act in an advisory status to current and potential BIC customers. FINALE INTERACTIVE will act as a liaison and advisor to BIC customers and its board, educating and guiding new business where to spend precious capital in the areas of online marketing, digital strategy, technology development, social marketing and offline media.

» Maxis360, a firm that supplies and manages computer and telecommunications technology infrastructure for organizations

throughout the Southeastern U.S. and the Caribbean, has almost doubled in size and added new product lines with the acquisition of Panama City-based Inacomp. Inacomp, which also provides and manages data and telecommunications network infrastructure and has been in the market for 30 years, adds an additional 250 customers in a new geographic market to Maxis360’s client roster. The acquisition will include 15 Inacomp employees who will continue to service current as well as new clients.

» The Association

of Chamber of Commerce Executives has designated Lance Allison, president/CEO of the Panama City Allison Beach Chamber of Commerce, as a Certified Chamber Executive — the only national certification for chamber professionals.

» Wyndham Bay Point Golf Resort & Spa in Panama City has hired Evan Fuller as the new general manager. Fuller, a 30-year veteran of hospitality management, will


lead the resort through upcoming renovations and service upgrades with a focus on quality and customer service.

Appointed by Gov. Scott

»

Springfield Police Chief Philip Thorne, 59, of Panama City, to the Statewide Council on Human Trafficking.

I-10

Local Happenings

»

Jay Ayers and Craig Colton have joined Honey Lake Plantation in Madison County. As the new Colton Hunt Master, Ayers will serve as a personal ambassador to hunting guests by planning and coordinating hunting, fishing and sporting activities. Colton is the new director of Food and Beverage for the plantation and its Whispering Pines Restaurant.

» In the first deal of its kind in

the state and only the sixth in the country, First Commerce Credit Union and First National Bank of Crestview (FNBC) have entered into an agreement for First Commerce to purchase FNBC. The agreement has been approved by the boards of both financial institutions and includes the purchase of assets and assumption of liabilities. The transaction will require the approval of four state and federal regulatory agencies, which the financial institutions hope will allow them to close on the purchase by late 2014/early 2015.

»

To benefit local agriculture and farmers, Farm Credit of Northwest Florida will share $4 million in profits with its members in 2014 through the cooperative’s patronage refund program. Since 1988, Farm Credit of Northwest Florida members have benefited from $74 million in patronage refunds or profit-sharing declared by the cooperative’s board of directors.

Appointed by Gov. Scott

» To the Campbellton-Graceville

Hospital Corporation: J. Chris Franklin, principal of Riverside Elementary School; Peggy Moore, vice president of branch operations for Covenant Hospice; Alice Pate, a registered nurse with the Jackson County Health Department; Pat Pelham, owner

of Pat Pelham Insurance; Linda Wheatley, a retired teacher. All are from Graceville.

»

To the Madison County Health and Hospital Board: Rosa Richardson, 64, executive director of the Senior Citizens Council of Madison County Inc.; James Sale III, president of Sale High Point Farm Inc. Both are from Madison.

»

Joseph Jernigan, 74, of Graceville, owner of Jernigan Forest Products and Arnold Lumber Company, to the Early Learning Coalition of Northwest Florida.

Do you know an outstanDing woman Business LeaDer?

»

Michael Williams, 55, of Madison, a financial advisor with North Florida Finance Corporation, to the North Florida Community College District Board of Trustees.

Regional

Local Happenings

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Summit Bank, First Commerce Credit Union and Panhandle Educators Federal Credit Union have been named to the 2014 edition of the Top 200 Healthiest Institutions in America just released by DepositAccounts. Summit ranked No. 25 out of 6,500 banks. First Commerce Credit Union was No. 16 and Panhandle Educators ranked No. 51 out of 6,600 credit unions.

»

New federal regulations and heightened community awareness have created challenging environmental compliance and management issues for companies across the Southeast. To address these issues from a real world perspective, the UA Safe State division of The University of Alabama, and its partners, is planning “The Alabama Environmental Conference” on Oct. 20–21 in Orange Beach, Alabama.

»

State Employees Credit Union and First Florida Credit Union have merged and will operate under the First Florida Credit Union charter. The merger will allow the credit unions to offer services to 60,000 members with 15 branches throughout the state.

850 — The Business Magazine of Northwest Florida is looking for your help in recognizing women in our region who have demonstrated outstanding leadership skills in their businesses and communities.

Nominations are now open at 850businessmagazine.com Ten women will be selected to receive the 2015 Pinnacle Award — women of character and integrity, our leaders, mentors and community servants. These honorees will be profiled in the 2015 October/November issue of 850. Nominees must be a private sector business owner, CEO, primary manager or top executive in their companies. Nominees must have: 1) demonstrated professional excellence and outstanding leadership in her business or profession; 2) actively participated in civic and/or business-related organizations; 3) served as a mentor to others.

SponSored By

» Caitie Mook is the new

Northwest Florida regional manager for Regulatory Compliance Services, a subsidiary of the Florida Restaurant and Lodging Association. Compiled by Linda Kleindienst

For additional sponsorship opportunities, contact McKenzie Burleigh at mburleigh@rowlandpublishing.com

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Counts Real Estate Group, Inc. 850.249.3615

www.countsrealestate.com EXPERIENCE COUNTS SERVING ALL OF NORTHWEST FLORIDA FROM PENSACOLA TO TALLAHASSEE

INVESTMENT SERVICES | BROKERAGE & LEASING | PRIVATE EQUITY | DEVELOPMENT SERVICES | CONSULTING

CHRIS MCCALL Senior Advisor 850.249.3623 chris1@countsrealestate.com

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COUNTSCOMMERCIAL.COM

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Commercial Real Estate Advisors


Deal Estate It’s Just Business

Kiku Japanese Steak House, Panama City

Destin

Photo By Matt Burke (Kiku)

» The popular Destin Commons shopping center has undergone a major facelift in the last year, adding an additional 100,000 feet of space and a slew of new retailers to the open-air lifestyle center. At least 22 new retail and restaurant spaces opened within the expansion, including Uncle Buck’s Fishbowl & Grill, H&M, Zoe’s Kitchen, Destin Stars, Icing by Claire’s, Yogo Mongo and Everything But Water. In the final steps of tenant fitout and projected to open in the coming months are Guess Factory, Blend Lounge, World of Beer and BCB Generation. The expansion extends from the clock tower and playground area to the southwestern corner of the property, at the corner of Highway 98 and Mid-Bay Bridge Road. Panama City

» Kiku Japanese Steak House has opened

a new location on 23rd Street in Panama City. Top quality beef, locally sourced,

fresh Gulf seafood and a slew of other traditional Japanese offerings dot the menu. The restaurant’s chefs were trained in New York City and have mastered the art of devising unique culinary creations.

Tallahassee

» Nonprofit outfit Tallahassee Teen

Challenge opened the Super Thrift Store at 2645 W. Tennessee St. The group is hoping to use the store to generate revenue to support its programs that target families and individuals struggling with a variety of different issues. The faithbased group offers room, board, education, counseling and life-skills training to those that are able to take advantage of its services. The local organization is part of the larger initiative, which has groups in 93 countries around the world, and more than 200 centers in the U.S. alone.

Pensacola

» A Colors on Parade franchise

has opened in Mary Esther, offering the Northwest Florida region ding and dent repairs, headlight restoration and wheel refinishes. Covering an area from Pensacola to Tallahassee, the shop offers a warranty on any repairs done for the life of the vehicle. This is the first Colors on Parade franchise in the Northwest Florida area.

— Compiled by Lynda Belcher

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Deal Estate Just Listed

Downtown Pensacola Office Space Offers Numerous Amenities Securing office space to lease can be a challenge when the fit needs to be just right. From location to the layout of the space, there are a number of considerations that make a potential property right for a prospective buyer or leasee. The property at 119 W. Garden Street in Pensacola offers a versatile array of amenities to attract potential leasees. Situated in the historic downtown corridor of the city, the property is currently listed for lease at Address: 119 W. Garden St., $9,584.25/month for a three-year Pensacola term. The lease includes electricity, water, sewer, trash, janitorial, List price: $9,584.25/month repairs and maintenance. Square feet: 5,898 The property spans 5,898 square Contact: Logan DeVries, feet of interior space, which sits on Broker Associate, NAI .15 of an acre. In addition to the Halford, (850) 501-6868

Quick Look

NAI Halford

By Lynda Belcher

desirability of the location, the building provides a setting well-suited for a professional office that houses a variety of businesses. There is a large lobby area, reception space, copy room and eight private offices with windows on the first floor. A restroom, break room and dedicated server space are also located on the first floor of the property. On the second floor, there are five private offices with windows, a large conference room (with built-in bookshelves) and additional break and server rooms. The main entrance of the office space faces Garden Street, where there is a great deal of on-street parking. However, there is also a private parking lot at the rear of the building, with another entrance that could be used for employees.

WILL YOUR ROOF PROTECT YOU? Call us for a FREE Video Roof Inspection to ďŹ nd out.

Tallahassee Area: 1408-3 Capital Cir NE

850.877.5516

Panama City Area: 2609 W 23rd Street

850.785.7777

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www.whentrustcounts.com


Deal Estate Just Sold

South Florida Investment Group Purchases Magnolia Centre II

Kelsey Appellate Law Firm, P.A. Florida Appellate Practice

By Lynda Belcher

SUSAN L. KELSEY

Tallahassee | Admitted 1988

Craig Commercial Realty

kelseyappellate.com

Situated near the corner of Governor’s Square Boulevard and Magnolia Drive, the building at 1211 Governor’s Square Boulevard was recently sold to a South Florida investment group. Plans for the Magnolia Centre II include an offering of interior space(s) for tenants interested in 2,500 to 30,000 square feet. Built in 1989, the Centre boasts plentiful parking and geographic desirability. Downtown Tallahassee is mere minutes from the building, and it is also situated near a budding development project slated for retail and lodging. Address: 1211 Governors Square Blvd., Tallahassee This new development includes plans for a Hilton brand hotel, Sold Price: $1,785,000 Starbucks and varied retailers. Square Footage: 48,000 The largest regional shopping Contact: Jeff Billingsley, mall is just two blocks south, Craig Commercial Realty, as are many of the city’s most (850) 668-3333 popular eateries and shops. Amenities within the interior of the building include kitchenette/break room spaces in each suite and bathrooms that are centrally located near the elevator lobby. The 48,000-square-foot space is located near the Florida Lottery building and is slated to undergo significant renovations in the coming months.

Quick Look

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Capital Corridor

Gadsden, Jefferson + Leon Counties

Reviving the ‘Pink Clouds’

Once lucrative tung oil industry may be making a comeback By Lazaro Aleman

A

crop that once covered vast acreage across North Florida and helped fuel rural economies — and whose springtime pink blossoms graced the countryside and the nut of which provided a vital oil for such varied products as wood finishes, printing inks and cosmetics — is possibly making a comeback.

Greg Frost, at least, is wagering that tung tree planting and tung oil production will once again become viable industries in the Panhandle. Frost, administrative services director for the Tallahassee Police Department, launched Gulf Coast Tung Oil LLC in 2011 and has since planted a combined 50 acres of tung trees in Leon and Jefferson counties. “We’re talking roughly 5,000 trees,” Frost says of the two orchards. “The trees

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are about two years old. They typically start producing nuts during their fourth year, and by seven or eight years they’re in full production. You then probably get another 25 years of nuts out of them.” Frost’s business model calls for setting up a small oil-pressing mill in Tallahassee. He foresees his orchards producing about 2,000 gallons initially and increasing to about 4,000 gallons once the trees mature. He plans on mostly wholesaling the oil, with some local retailing on the side. Ultimately, of course, oil output will depend on the total acreage planted in tung trees. Which entails other landowners planting the trees, a proposition Frost recognizes is not without risk. So far, however, the response has been encouraging. “There’s actually been a lot of interest,” Frost says. “And I think once we’re actually producing oil, more are going to see this is a good way to use their lands.” Tung trees require climate and soil conditions ideally found within 100 miles of the Gulf of Mexico along a crescent stretching from central Florida to Sustainable east Texas — South Resource Oil from the nut of Georgia included. the tung tree has “In its prime, the a variety of uses, including biodomestic tung oil aviation fuel now industry spanned being developed in China and six states,” said Germany. Whitney A. Snow, assistant professor at Midwestern State University and tung industry historian. “Newspapers and magazines like Tung World and American Tung News referred to the Gulf

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Coast as the Tung Belt. Attracted by the tree’s beautiful blossoms, tourists traveled from all over the country to tour the orchards. Down South Magazine even referred to the tung industry as ‘Pink Clouds in Dixie.’” Frost himself talks of Leon and Jefferson counties having been centers of the industry. Notably, a 1988 Monticello News article identifies several Jefferson County plantations as one-time big tung oil producers, including the 38,000-acre Tungston Plantation, reputed to have been “the largest tung oil producer in Florida.” The article further talks of fortunes made and millions generated through cultivation of the trees. Native to China, where tung oil has been produced for centuries, tung trees were introduced to the South in the early 1900s and soon became a viable cash crop for Gulf Coast farmers. Indeed, the oil’s importance was such at one time that it was declared a strategic defense item prior to WWII. Domestic production peaked in the late 1950s but thereafter began declining. “Foreign competition, cheaper oilseeds (like soybean or canola), synthetic oils and shifting parity prices led many growers to seek other crops,” Whitney said. Not to mention freezes in the ’50s and ’60s that devastated many of the commercial orchards. Hurricanes Betsy and Camille — in 1965 and 1969, respectively — accomplished the rest, with the latter storm effectively sounding the industry’s death knell. Given the industry’s demise in the 1960s, what makes Frost think the time is now propitious for its revival? He cites several factors, among them increasing interest in sustainable resources, development of new products that require tung oil, and efforts in China and Germany to develop a tung oil based bio-aviation fuel. “They’ve been successful enough that they’ve actually flown several commercial planes using this fuel,” Frost offers. Most importantly, he says, a stable niche market has continued to exist in


this country all along, comprised of manufacturers that rely on the oil for their products. “These manufacturers must now import the oil from Argentina, China and Paraguay,” Frost said, adding that not only must they order in bulk, wait Hoping For a Comeback months for delivery and risk Greg Frost has inconsistent qualities, but planted about 5,000 tung trees they pay high prices to boot. on 50 acres in He believes domestic proLeon and Jefferson counties. duction can beat the foreign competition on all counts, particularly on delivery. “If you needed three 55-gallon drums, we could have that at your facility within three or four days, versus you’ve got to wait months to get it to your doorstep,” Frost said. His company, moreover, is in a unique marketing situation, he added. “We actually have buyers lined up and waiting for us to produce the oil,” Frost said, citing as examples a California chemical supply company and a Vermont wood finish manufacturer. “These folks say if we can provide good quality oil at a competitive price, they’ll never buy it from overseas again.” Frost attributes the idea for the enterprise to his longtime interest in woodworking, his familiarity with tung trees and his wife’s suggestion that they make their own tung oil for a small table they were finishing. Once he started researching how to make tung oil and learned about the existence of the niche market and this area’s rich history in tung oil production, he was hooked. “Once I realized that, it was like, let’s see if we can put a small agribusiness together and have another domestic supply,” Frost said. “And it just grew from there.” Besides his immediate family, Frost has partnered with Jeff Phipps, who owns the land on which the Leon County orchard is planted. He has since also secured an agreement with the USDA giving him access to a cultivar specifically developed to bloom later than the traditional trees and so avoid late season frosts. “The future orchards that we’ll be expanding will have this cultivar available, which hopefully means we’ll have better oil and more oil and few crop losses due to late season freezes,” Frost explained. n

For more information, call (850) 524-2852 or email gulfcoasttungoil@gmail.com.

Photos by Matt Burke

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EMERALD COAST Corridor

Cooking Up Success

Coastal Escambia, Santa Rosa, Okaloosa + Walton Counties

restaurants, Chou had never thought he would work in food service for very long. He emigrated from Taiwan in order to get a university education in the U.S. — and that is when his career Michael Chou went into the restaurant business began … by chance. when he couldn’t find a job By Lauren Gillespie “In San Francisco, I worked part-time at a restaurant. Then when I graduated and couldn’t allahassee and Destin diners know find a good job, I decided to go into the restauOsaka Japanese Steakhouse for its rant business,” Chou said. fresh sushi and tasty hibachi, but With a large Chinese population, San there is more to this restaurant than Francisco has a famous collection of Chinese meets the eye. Owner Michael Chou has been restaurants that represent every region in bringing his high standards to Asian cuisine in China. Chou was working for talented chefs, Northwest Florida for more than two decades. making lifelong friends and learning the Though happy with the success of his

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tricks of the trade. Before long, he was looking for a place to build his own restaurant. “One of my friends told me that there were Chinese restaurants in Tallahassee, but no one was cooking Szechuan style,” Chou explained. So he decided to bring variety to Florida, buying property in Northeast Tallahassee and opening Chou’s Dynasty in 1990. But while the restaurant was a success, after a few years he felt the need to change. The problem? Chou looked around and realized that all he saw were Chinese buffets. After evaluating other businesses in Tallahassee, he decided to try something new — a Japanese steakhouse he thought “would be better for the market.” Thus was Osaka born and still sits near the intersection of Capital Circle NE and Interstate 10.


Embracing Change Michael Chou turned to Japanese-inspired cuisine learned from his homeland of Taiwan to change the restaurant landscape in Tallahassee and Destin.

Turning to Japanese-inspired cuisine wasn’t a stretch for Chou, who grew up in Taiwan where his father landed after following a junket ship from China. Indeed, Taiwan’s unique history allowed him to dabble in both Chinese and Japanese cuisine. “Japan occupied Taiwan for 50 years,” he explained. “Most of the older generation all speak Japanese, and there are many Japanese restaurants in Taiwan. That is why I am able to say this is good or this is not good.” Over the years, Chou built Osaka into more than just a restaurant; he believes the name is a brand that represents fresh ingredients and quality service. His Japanese restaurant became so popular that soon he was ready to expand again — to the Emerald Coast. “When I was in Tallahassee, I liked to go to Destin and to the seaside. I like the area and all of the restaurants,” Chou said. On one visit, he noticed something. “I looked around, and there were no Asian restaurants.” As an astute businessman, he immediately recognized the vacation mecca of Destin as the perfect location for his second steakhouse. “Destin does good business,” Chou said, adding, “In the summer, there are a lot of tourists.”

Photos by Matt Burke

In 2003, Osaka Destin opened its doors and has since seen success similar to that of its sister sushi spot in Tallahassee. Chou firmly believes his three principles of business have propelled his ventures to financial success. First, keep it clean. “That means inside and outside,” he said. Next comes “actual service,” which requires a dedicated staff. “I look for loyalty and hard work in employees,” Chou said. “The goal is to ensure the best experience for customers.” Lastly, consistently deliver quality food. He has worked with all his chefs for a long time, bringing some from Tallahassee to the Destin Osaka. “When Osaka opened in 1998 it was very successful. But the market has changed,” Chou said. “Everyone is looking for the bargain, for the prices. I’m stubborn. Our food quality has never dropped. We serve fresh sushi, never frozen, so we can’t do Buy One Get One.” There is another aspect that makes Osaka unique. The Tallahassee restaurant is managed by Chou’s son, Gregory, which makes fine dining a family affair. “We’re a team, a unit,” said Gregory Chou.

“When you care about your boss, basically everything you do goes back to the house. He’s very well organized, and people respect him for that. He cares about every aspect of the restaurant.” Gregory Chou, who has been working at Osaka since its opening day, describes his father as very demanding and strict. Michael Chou agrees. “People like him. He’s nicer than me,” Michael Chou said with a laugh. “I’m very straight and tight. He’s more relaxed.” Still he credits his son with helping the business evolve. “He said to me, ‘Dad, times change. The younger generation will take over. We do business in a different style.’ ” Michael Chou has moved to Destin with his wife to manage the restaurant there. Still, every week, he makes the journey from Destin to Tallahassee’s Osaka to make sure the restaurant is keeping to his high standards. “Osaka has our style, no matter what,” Michael Chou said. “Not only for profit, not only for sales. This is for our reputation.” Plans are in the works for a new Osaka in Panama City. No doubt, the blend of diligence and family love will yield the same success as his other ventures.

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forgotten coast Corridor

Gulf, Franklin + Wakulla Counties

Rekindling History Gerald (Jerry) Garlick, the only sponge dealer in Northwest Florida, shows off a recent harvest.

A Shadow of Apalachicola’s Past Untouched for 70 years, sponge grounds off the Forgotten Coast are reopened for harvesting By Karen Murphy

U

nderneath the clear, shallow waters of the northern Gulf of Mexico lies an incredible community of sea life that once was a major contributor to the economy of Apalachicola … but we’re not talking oysters.

Like tumbleweeds on the desert, natural sponges dot the tall, rocky ledges beneath the beautiful Gulf waters between Cape San Blas and St. Marks. Untouched for nearly 70 years, these extensive sponge grounds were recently re-opened for harvesting. A new generation of sponge divers and an Apalachicola sponge dealer are working to rekindle this unique industry and preserve its history.

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To say that the current sponge industry in Apalachicola is any more than a shadow of its former self would be a vast over statement. In 1879 there were 16 boats in the fleet, just in Apalachicola. Today there are only two or three boats harvesting sponges in the northern Gulf and only six total. In the late 1800s, sponges were Apalachicola’s most lucrative fishery. There were two sponge warehouses in Apalachicola, employing approximately 100 men. The waterfront was teeming with tough, mostly Greek, men unloading their sponges and taking them to the Apalachicola Sponge Exchange where the sponges were

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auctioned to dealers, who inspected the catch and made sealed bids. The sponges were later shipped to St. Louis, Baltimore, San Francisco and New York. Today’s sponge industry in Apalachicola is a small niche market. Gerald (Jerry) Garlick, owner of Apalachicola Sponge Company, is the only sponge dealer in the Panhandle. He sells sponges, honey and antiques in his store and sells natural sponges wholesale all over the country to unique gifttype stores, spas and to those in the green market, like New Leaf in Tallahassee. “I enjoy the creative niche that I’ve brought to Apalachicola. It’s one of the reasons tourists come here.” Garlick is also an expert on the sponge industry and its history. The historic Apalachicola Sponge Factory Exchange was the location of his first store and the inspiration for his current business. Today Garlick’s Apalachicola Sponge Company is located in the historic district at


31 Ave. E. There he enjoys educating the public about Apalachicola’s sponge industry. He says sponge harvesting is similar in a lot of ways to the past, but there are some big changes. Sponge divers aren’t necessarily Greek anymore and in rare cases aren’t even male. A couple of brave women have dived into this previously all-male world. Tracy Kocjancic is one of only two female sponge divers operating in the northern Gulf. Gone are the old heavy brass helmets and lead in the shoes. Today’s sponge divers wear basic skin suits or lycra in the summer and light-weight water shoes for protection. Scuba tanks only get in the way. Instead, a 300 ft. tube pumps air from the boat to the diver. Kocjancic carries a serrated knife to cut the sponges, a bag to place them in and wears a 50 pound weight belt across her hips. While not as physically challenging as in the past, “sponge diving is not for the frail,” says Garlick. To harvest a sponge today, the sponge is cut three inches from the bottom, leaving tissue that can regenerate. Divers also squeeze the sponges after cutting to release the spores by which they reproduce. They are then placed in a bag and raised to the boat. “It’s hot, very hot. You spend several days out on the boat, no air conditioning,” Kucjancic laments. And you really have to watch the weather. Once you’re under the water, there’s a lot more to it than just cutting the sponges with a knife. “When I first started I had to learn how to figure out which way the tides were going. When I began I would just dust myself … sand and everything flying up, and I couldn’t see. There’s a lot more to it than you think. If it was easy, everyone would do it.” Kocjancic always wanted to be on the water and started off as a deck hand. But that’s not easy work either. According to Garlick, it’s Wide Variety a hot, stinky job. Boats A shelf in can’t even come into port Garlick’s store, Apalachicola until the sponges are Sponge Company, shows off the clean because the smell different types of is so offensive. Once sponges, shells and coral found in the sponges are cut and the northern Gulf. loaded onto the boat, they are covered with a tarp and the degrading process begins. The membrane that covers the sponge begins to

Photos by Bryan Anselm

rot and then is washed off, squeezed out and stomped on over two or three days. Once cleaned, the sponges are put in bags out of the way on top of the boat. In addition to being a deck hand, though, Kocjancic wanted the challenge of being a diver. “I wanted to go beyond my boundaries. We’re not made to walk around down there on the bottom. It was a challenge overcoming my fear to get down there and see something new and experience the beauty of the Gulf of Mexico.” She says it shows how hard she can work. “I’m not into women’s lib. I don’t want to go burn my bra, but I want to do this.” In her eighth season harvesting sponges, Kucjancic loves bringing the sponges to market. Florida’s tough, soft sponges are considered to be some of the best in the world. Divers harvest Wools, Yellows, Vase or Curios sponge grass, Knobbie, Lettuce, Finger and small flower-like Mermaids’ Purse sponges. Sponges from the northern Gulf, like the Rock Island Wool, are denser than other Florida sponges because of the colder water. Many of them are harvested just off of Dog Island. They are much stronger, more durable and more absorbent than synthetic sponges. In 1939, sponge harvesting was banned in the northern Gulf waters due to Red Tide and over-harvesting. In 2007, the Florida

Fish and Wildlife Conservation Commission (FWC) extended the area where harvest of commercial sponges is allowed by diving from west of 84 degrees west longitude, near Cabell Point on the eastern border of Jefferson County, to Cape San Blas. Kucjancic says that on a good day they can harvest about 200 sponges. Harvesting begins for Kucjancic just after Easter and usually runs until October. She and her partner, Mike Palmer, begin harvesting from the northern Gulf in June, after the water clears. “It’s really pretty down there.” Kucjancic explains, “The water in the northern Gulf looks like you are looking through sunglasses because of the tannic quality of the water caused by the rivers dumping into the Gulf up here.” The run-off from the rivers and other potential pollutants are a concern. According to Garlick, “Sponges are a touch stone for the health of the Gulf. Because they are stationary the sponges are directly affected when pollutants enter the Gulf.” They can be a signal that something is wrong in the environment of the Gulf waters. Unlike the sponge harvesters of the past, Garlick explains, “Today’s sponge diver knows he or she has to be a good steward of the Gulf. Cut sponges are a renewable resource.” If treated well they should continue to grow just off the Forgotten Coast and remain a contributor to the economy of Apalachicola.

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i-10 Corridor

Northern Escambia, Santa Rosa, Okaloosa + Walton Counties and Holmes, Washington, Calhoun, Jackson + Liberty Counties

Suitcase Dentistry

Blountstown grassroots startup Senior Dental Care expanding nationally By Chay D. Baxley

A

merica’s health care industry is evolving — and Tony and Cassie Layne of Blountstown aren’t afraid to change with the times. As part of an up-andcoming industry known affectionately as “suitcase dentistry,” this duo is revolutionizing oral hygiene for the elderly, one assisted living facility visit at a time.

“We got together five years ago and recognized that two things existed,” explained Tony, the CEO and co-founder of Senior Dental Care. “The first, a serious area of neglect of care. And the second was that (the situation) offered a good opportunity for business. So we studied the situation and determined that it was really just a good chance to build a business that would make a difference.” The couple’s successful entrepreneurial endeavors took root back in 2009, when Cassie was a freelance dental hygienist and Tony was a struggling real estate agent. With long-standing familial ties to dentistry (both Tony’s father and brother are dentists in Blountstown), the pair possessed a rare degree of insight, allowing them to see a gap in patient care that other business-minded folks had missed. Addressing the importance of convenient and accessible oral care for senior citizens with limited mobility residing in ALFs was the first thing on their to-do list. After things shifted into gear, it didn’t take long before they were off and running. In the early days, the newly established Senior Dental Care was only a local provider — with services stretching only as far from the company’s Blountstown home office as the Fort Walton area. Say Ahhhh Hundreds of nursing Peddling the services from home patients are one facility to the next, getting affordable dental care brought Senior Dental Care slowly to them, thanks to a expanded its territory. Blountstown couple.

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Cleanings, fillings and oral cancer screenings and biopsies have always been the company’s mainstay; nothing cosmetic or surgical is included in their scope of practice. “We’re focused on a couple of goals,” emphasized Tony, “and that’s to keep the residents healthy and to keep the residents happy. To do that, we’re well aware that one of the last freedoms that you have as your body begins to give you the challenges of aging is the pleasure of eating. We really want to keep people eating and maintaining their weight. A tremendous factor in that is the quality of their oral health.” Remarkably, pretty much every tool a dentist or hygienist needs can be made portable and can fit in (as the nickname undoubtedly suggests) a suitcase. Though Senior Dental Care isn’t the first mobile dentistry company, it is one of the few that offers dental insurance — which, according to Tony, is a major selling point for many of the facilities they cater to. “Most organizations don’t utilize an insurance funding approach,” said Tony. “Most organizations simply operate on a fee-for-service system where they bill Medicaid, and Medicaid reimburses them on a fee basis. “With it being an insurance that we’re intimately involved with we’re able to tailor the coverage to what this population needs and deserves with their care. It offers us the chance to have flexibility in the benefits that we allow.” That flexibility has aided in this grassroots company’s rapid expansion. In 2011, their first move was to branch into Alabama. As of March of 2014, they were in at least six states. Which states, exactly, the Laynes would not disclose due to the “competitive nature” of the mobile dentistry industry. Senior Dental Care’s growth hasn’t always come easy, though. As any business owner whose company’s been in a state of flux knows, progress can be stressful. “I started off with one person,” admitted Cassie. “I did the clinical. I did everything. I wore all the hats. “It’s been a huge learning experience,” she continued. “I’ve learned a lot of stuff

Photos by Matt Burke

about myself and a lot of stuff about management. We started off with just a few nursing homes, five or 10. Now we’re in several states and close to 400 nursing homes. Our goal is to be in well over 500 by the end of the year.” The kind of expansion the budding company has experienced can only be accomplished through a team effort. To date, Senior Dental Care employs roughly 40 full-time employees, as well as one part-time — and that’s not including the dentists and hygienists the company contracts with to deliver services nationwide. Tony and Cassie are quick to attribute their success to the professionals they surround themselves with. According to Cassie, the logistics of staffing their growing company has, at times, been challenging. “What’s been stressful and what I’ve learned is finding the right people for the right position,” shared Cassie. “When

Mobile Dentistry Tony Layne and his team have set up mobile dental units in several states.

you fit someone to doing what they love to do, and it fits their personality, they’ll naturally excel in that position. Knowing what questions to ask and how to weed out people (is important), but once you have a good asset in a person, finding the right fit for them is key.” As for the future, the Laynes have big plans — none of which include abandoning the 850 region as home base. These “multi-generational Apalachicola River people” aren’t going anywhere. Their company, however, seems to be destined for greatness. Predicted Tony: “We really feel like that, given the right amount of time, we will take this from fifth-bedroom-of-the-house concept to a national brand in one of the fastest growing sectors of our country.”

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The Last Word

When I told my father I wanted to study journalism, he was less than happy. His goal was to have me earn a business degree, although I’m not sure what kind of business he saw in my future.

LINDA KLEINDIENST, EDITOR lkleindienst@rowlandpublishing.com

Photo by kay Meyer

In the mid-1960s, the worlds of journalism and business were dominated by middle-aged white men. So I figured it would be a tough climb no matter what I decided to do. Finally, I opted to stick with my dream and did get a mass communications degree from the University of Miami. My first job was at the Miami Beach Sun, covering the city of Miami Beach. My bosses and the city officials were all men, and I still remember the city attorney yelling out to me, “Hey Legs!” whenever I came into a meeting. You see, women didn’t wear slacks to work. My bosses thought it was pretty funny. My next job was in Fort Lauderdale, where one day I asked the managing editor if I could wear a pants suit to work the next day as I planned to spend it out in the fields with migrant workers for a story I was working on. “Why would you do that?” he asked. “What do you think I hired you for?” When I just kind of looked at him in amazement, he blurted out, “Your legs!” I walked out of his office, ignored his comments and went to work with slacks on — and a new attitude — the next day. Luckily, times have changed. Many of the men who ruled the roost are now sharing the seat of power with their female colleagues — and those women are getting more and more accolades for a job well done. While there is still a ways for us to go and

more glass ceilings to crack, women are now generally treated with more respect and some have risen to amazing heights. To recognize women in the 850 who have achieved some of these feats in their business and community, we have established the Pinnacle Awards. I’m sure you recognized some of the names or the faces that appear on our front cover. A couple of them have previously been featured in some way on the pages of this magazine. But hopefully you learned something new about these amazing women in the special section we set aside for them. They are 10 of many who are making a dramatic difference in our region every day, and we thank them for their work to make the 850 a better place to live. The Pinnacle Awards will be an annual effort of 850 to shine a light on the achievements of our women business leaders, and I hope that when we put out a call for nominations next spring you will have some names in mind to send our way. The women we have chosen for 2014 remind me of a quote from Sojourner Truth, the African-American abolitionist and women’s rights advocate born into slavery but who escaped with her child to freedom. “If the first woman God ever made was strong enough to turn the world upside down all alone, these together ought to be able to turn it back and get it right side up again.”

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850businessmagazine.com


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