Northwest Florida's Business Climate June 2015

SPECIAL SECTION

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BUILDING HISTORY

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A NEW KIND OF GREEN HOUSE

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START UP PENSACOLA

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PENSACOLA AND THE FELLOWS LOAN FOUNDATION

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AROUND THE REGION nwflbusinessclimate.com | Business Climate | 49

BUILDING HISTORY Four-and-a-half blocks of prime downtown Pensacola real estate are now in the hands of a man who wants to make big things happen, including a breezeway, retail stores, a more open first floor, and maybe even residential properties. What will the next two years mean for downtown’s busiest intersection?

At the corner of Palafox and Garden in downtown Pensacola is a 4.5-acre area rich with restaurants, office space, parking—and opportunity. On this land sit the Blount and Brent buildings, century-old structures that were built by Francis Brent and William Blount for just a few hundred thousand dollars. Earlier this year, Brent’s great-grandson, Robert Switzer, brought the property back under the patriarch’s name for $7.5 million and has big plans for the entire area.

Switzer has managed real estate purchases before, including the Thiesen Building a few blocks down in 2012. Switzer purchased the square block from Durnford Enterprises

BY JOSH NEWBY PHOTOGRAPHY BY GUY STEVENS 50 | Business Climate | nwflbusinessclimate.com 50 | Business Climate | nwflbusinessclimate.com

and the Rainwater family, who have owned and managed the properties for the past 35 years. During their tenure as the property’s

Business Climate SPECIAL SECTION

caretakers, the Rainwaters made significant improvements to the buildings, but much has changed in the past several decades. Today, portions of the buildings are very much intact and retain a historic charm, with wooden

“In a couple years, hopefully we’ll look back on now the way we look back on 2004.”

Switzer first had the idea to modernize the block 10 years ago, but said things just were not quite ready.

“I don’t think I would have known what to do,” said Switzer. “I thought downtown

doors and floors, high ceilings, and expansive

was doing well then, but it’s doing really well

windows. Other characteristics, though, are

now.”

typical of older buildings and require additional renovation.

Then one day, Switzer and business partner Billy Lovelace began talking about the

That is where Switzer comes in, who has

idea and decided to work with the Rainwater

the resources, the motivation and the know-

family to make a mutually beneficial and

how to bring the buildings into the 21st

smooth transition of ownership. After seven

century with some smart renovations that

months of due diligence that included exam-

will include plumbing and electrical work,

ining structural and environmental factors,

exterior refacing and perhaps even geother-

the property closed on April 30 of this year.

mal energy through a partnership with Gulf Power.

“This is a really great property, and of course it was owned by my great grandfather nwflbusinessclimate.com nwflbusinessclimate.com| |Business BusinessClimate Climate| |5151

up until 1980,” said Switzer.

“The structure is in amazingly good shape,” said Lovelace. “The issues we do have are issues that every other building downtown is experiencing, which is some settling. Back when they built these buildings in the early 1900s, they didn’t do all that we do today, like soil testing and paying close attention to the slabs.”

The first priority with the transition, according to Switzer, is making the current tenants happy. Many of them are under current leases and Switzer is determined to honor those, even if it means postponing some of his plans.

“There’s going to be construction on the site for two years,” said Switzer.

“I want to make sure the tenants know what’s coming and we do everything to help them. For a time, we’ll be moving those in the top of the Brent building over to the Blount so we can work over there.

We want to take care of our tenants.”

During this time, huge improvements will be made, both behind-the-scenes and right out on the street. Right now, some floors of the Blount building don’t have restrooms for both genders, the bottom floor has a labyrinth-like layout, and the entrance from the southwest side is somewhat confusing. All these will be corrected in short order while working hard to ensure there is as little disruption as possible to the tenants and the surrounding area.

“Connectivity is a big deal for us,” said Lovelace. “We want the back end to be more connected to Palafox and even make it so that that side of the building has a fresh front. Our buildings should be a functioning corridor to the rest of downtown and a more natural conduit for traffic.”

Switzer wants to help future and current restaurants, like Global Grill, develop outdoor, courtyard dining that is secluded and west-facing to allow patrons to enjoy the sunset.

“You can drive in off of Romana Street [to the south], drop your date off, park right there in the lot, and enjoy outdoor dining,” said Lovelace. “The building will have two faces and each will offer different opportunities.”

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Tenant talk Jason Courtney, a local businessman and tenant of Switzer’s new property, discusses the coming changes.

How do you feel about the new ownership?

Well they’re (Switzer and Lovelace) working hard to keep as many tenants as they can, and they’re being very nice about it. They’re great guys.

Has your rent gone up at all?

No, it’s actually gone down.

I think they realize that with all the changes and renovations happening that it’s a good thing to lower lease costs for right now.

Do you plan to move offices once things start happening?

We will move, but we’ll just move to the third floor of the Brent building, so still a Switzer-owned building.

How do you feel about the direction Switzer seems to be taking with downtown in general?

I think it’s great. He got Chuck Tessier, who does property management in Asheville, N.C. and helped with the Maritime Park, to come down here. I’ve talked with him a lot. I like that they’re honoring the historical significance of the buildings while still realizing that they need to keep things usable and current. There’s going to be some difficulties, as there always is with these things.

Everything’s still up in the air right now, obviously, but I’m excited to see it all happen. It’ll be good for downtown. I’d like to live down here eventually.

Business Climate SPECIAL SECTION

New Orleans does things,” said Switzer. “I

“Honestly, it’s going to hurt equally for

want everything on the ground floors to be

everybody,” said Switzer. “But that’s okay.

restaurants or retail.”

something unique and historic without being too expensive.

You go to any comparable downtown in the

“These will be elegant apartments,” said

One of the big changes Switzer and

country, and people pay to park somewhere

Swizter. “They’ll have high ceilings, lots

Lovelace are excited about is a 20-feet-wide

often a few blocks away from their destina-

of natural light, and gorgeous facades. It’s

breezeway going through a portion of where

tion, and then they walk and spend time

definitely a smaller, niche market than other

New York Nick’s currently sits. This would

downtown. That means using the Jefferson

current residential developments downtown,

connect Palafox to the rear of the property in

Street parking garage. That might mean

but we think people will appreciate the total

much the same way the Wine Bar’s breeze-

working with the county on their parking

renovation we’re doing.”

way connects Jefferson Street to the rest of

garage or the Downtown Improvement Board

The apartments will be rentals, though,

downtown. Right now, restaurant owner

on how they do things. People need to be okay

not for purchase. As Switzer explained, he

Nick Zangari has a lease through March 2017,

with parking a few blocks away and paying for

will be going after the National Park Service’s

so that part of the plan will have to wait.

it.”

Historic Rehabilitation Tax Credit, and in

Eventually, though, Switzer would like to see

Since Virginia College moved to north

order to earn that to ostensibly keep prices

a restaurant on one side of the breezeway and

Pensacola, a lot of parking space has been

low on the multi-million dollar renovation,

deep retail spaces on the other side.

freed up on the property’s southwest lot, but

he has to retain ownership.

That retail is crucial to the success of this entire project, according to Switzer. Having a drug store, a grocery store, or a place to buy greeting cards or shoes is the type retail

Switzer intends to charge for parking in that area eventually.

“The way I see it, we’re lucky to even have parking on Palafox,” said Switzer.

Some changes are not so dramatic, but will pay huge dividends aesthetically. Many of the offices and meeting space are beautifully historic, and Switzer wants to retain that. Some

environment he is envisioning and that he

Additionally, Switzer foresees the cost of

of the visuals, though, clearly take their cue

believes the coming residential density can

rent increasing slightly, but hopes that those

from the 80s and 90s. Simple paint jobs and

support.

costs will be mitigated for the tenants by all

lighting updates will go a long way to updat-

the people the renovations will bring down-

ing the overall feel of the building.

“I want a bunch of little retail shops that don’t stretch too wide and are less deep,” said

town.

The wood siding on the first floor of the

Switzer, adding to the theory that window

The team is also trying to develop residen-

Blount building will feature metal and glass,

shopping and a new store every few steps is

tial space in the second and third floors of the

for an updated look that still preserves the

the key to successful retail in a growing down-

Brent building. They have not been able to

building’s historic appeal.

town. “Downtown is still in its infancy. If you

nail down an agreeable price for the process

“It’s about 50/50,” said Lovelace. “Fifty

try to do too much before the right time, you’ll

as of yet, but they are thinking the space will

percent of the work will be inside and the

have to subsidize it. But I think the time is

accommodate between 24 and 36 units, four

other 50 will be outside. We want it all to be

right now. It’s all there.”

of which will be two bedroom apartments and

timeless but fresh.”

In order for this to all work, locals will need to be reeducated about what a down-

the rest will be one bedroom. Size will fall closely on either side of 1,000 square feet.

Switzer and Lovelace see the entire project as not just another real estate endeavor

town means, according to Switzer. This means

The envisioned demographic for these

downtown, but rather a catalyst for ushering

changes to how people think about time spent

spaces will be young, single, working pro-

in the an exciting new phase of development

downtown, residential spaces downtown, and

fessionals; empty nesters who are looking

and growth for Pensacola.

yes, parking downtown.

to downsize; and single adults who want

“I think we’re really hitting the market at the right time,” said Switzer. “We’re going to tighten things up and change some stuff around, but hopefully in two or three years this will be a better downtown. Ten years ago, after the sewer plant moved and then the Maritime Park was built, I thought downtown was really starting to do well. Nowadays, there’s so much more. In a couple years, hopefully we’ll look back on now the way we look back on 2004.”

Photo courtesy of One Palafox Place, LLC

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Business Climate SPECIAL SECTION

A New Kind of Green House

FO

SAF E

AF

It’s mold-resistant, fire-resistant and termite-resistant. It can withstand winds up to 160 miles per hour. It’s reinforced with steel wall and roof construction. The house of the future is here, in Pensacola, and it’s only around $150,000.

By Josh Newby

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alking into a greenHAUS, a new kind of sustainable home developed by area visionaries Guy Balencie and Robert Bell, is like entering a home with a Mary Poppins-esque spell placed upon it. One immediately wonders how so much storage space and such expansive living areas fit inside the deceptively minimalist, understated structure. This type of subtle revelation, which continually rewards the resident with low maintenance and decreased energy costs, is the greenHAUS’s calling card.

With seven houses already built and sold and an additional two under construction that are pre-sold, it is a surprise that Balencie and Bell only started with the idea of affordable, sustainable housing just over a year ago. In January 2014, the team began brainstorming an answer to what is many cities’ perennial problem: a lack of affordable, environmentally friendly housing for young people near a walkable and entertaining downtown. Right now, the average listing price of a home in downtown is more than $200,000. In the enviable East Hill neighborhood, that average price balloons to nearly $300,000. Add to that the fact that most of these houses are nearly a hundred years old and feature aging infrastructure and old technology and it becomes quickly apparent that these properties just are not the right choice for most millennials. With help from research partner Caron Sjoberg of marketing agency Ideaworks,

E

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the duo learned what millennials want from housing. They want it to be downtown, with easy access to walkable neighborhoods; they prefer compact, urban homes and value locale and amenities foremost; they also want proximity to culture, they appreciate the value of green building features, and most of all, want to be able to “move in and plug in.”

Using this research with a team of dedicated professionals that included architects and engineers experienced in compact living in places

like New York and San Francisco, Balencie and Bell developed greenHAUS, the housing solution that answers all those challenges with a comprehensive game plan.

“We’re not what you’d consider traditional builders,” said Balencie. “We’re dreamers and visionaries. We want to improve entire neighborhoods and areas of the city by offering a stepup, sustainable quality.”

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How It’s Built

“

We’re not what you’d consider traditional builders.

We’re dreamers and visionaries. We want to improve entire neighborhoods and areas of the city by offering a step-up, sustainable quality.

”

Balencie and Bell answer those problems with more than just words. Using a hands-on approach to selected building materials and ensuring that all products would be American-made, the two made certain that all aspects exceeded Florida building codes while providing stylish, elegant design that consumers want.

Right now, the homes come in two sizes: 1,056 or 1,248 square-feet with a covered porch of 6 by 24 feet or 6 by 16 feet. The homes feature stainless steel appliances that all come with manufacturer warranties, a fiberglass entry door, 18-guage steel wall and 26-guage roof construction to withstand winds of up to 160 miles-per-hour and last up to 40 years, and double-pane insulated windows. All houses also come with vinyl plank flooring and all-wood shaker style kitchen cabinets that have a 10-year warranty. Perhaps most impressive of all, the entire home is fire, mold and termite resistant, thanks in large part to the use of DensArmor interior wall board.

The square-footage may seem on the smaller side, but actually being in a greenHAUS proves that it is all about how you use the space you have. Storage is more ample than in many larger homes, yet seamlessly disappears into the flawless design of the house. The rooms are laid-out in such a way to maximize both privacy and living space, with a sense of togetherness that never feels cramped.

The homes are also supremely wellmade, with tight construction that ensures precious conditioned air never goes to waste.

“We’ve conducted a blowdoor test to determine the home’s integrity and see how well-insulated it is,” said Bell.

“A lower score is better. A lot of homes nowadays score around a 15. GreenHAUS got a 5.”

Gulf Power is carefully monitoring energy use of the greenHAUSes and reports that average electricity bills run about $85, about two-thirds the average electrical bill in Florida.

And don’t think that utility costs are the only bills that will decrease. Insurance on a

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comparable wood-frame home the size of a greenHAUS costs about $1,200 to $1,300 a year. With all the safety and structural measures in place, however, it costs half that on a greenHAUS. There are also various federal tax incentives in place for investing in green construction.

Those already living in a greenHAUS are wowed by the entire experience, including Seth Hamilton, a realtor and the very first owner of the original greenHAUS. “I was actually showing the house to a client and it wasn’t quite big enough for him, so I scooped it up,” said Hamilton.

“Living there has just been a great experience. I used to live off of Nine Mile but I couldn’t walk or bike anywhere. Now I can do all that, and my utility bills are lower.”

Hamilton talked about the reduced stress of living in such a safe and secure structure.

“Everything in that area is at least a hundred years old, but these units are brand new and can withstand virtually anything,” said Hamilton. “If a hurricane comes, I’ll just cover up the windows and not worry about it. That’s such a great feeling.”

All that, and the home is on the less expensive side of the market. Current two bedroom, two bath houses run $149,000. A three-bedroom model will run you about $159,000. Homes under construction nearer to downtown run just $172,000, perfect for both millennials and

baby boomers who want something a little more economical.

Important to the builders, the residents and of course the world we live in is the long-term sustainability and environmental friendliness of the end product.

Balencie and Bell discovered that early in their research and continue to work hard to implement that attribute throughout the ongoing project.

“We could easily be LEED-certified,” said Bell, referring to the system that rates green building practices.

“It would not add real value, and to keep prices low while keeping quality high, we did not want to pursue the additional expense of getting certified,” added Balencie.

Nevertheless, the attributes of LEED certification are there. Better insulation means lower energy costs for the consumer and less burning of fossil fuels.

Understandably, the demand is huge.

The first prototype greenHAUS was sold in two days. Those looking to buy rental houses are interested, too, because the maintenance costs are so low.

“These homes work great for anyone you can think of,” said Bell.

“So many people have wanted to live in downtown, but have been intimidated by the cost,” said Pensacola City Councilman Brian Spencer. “These houses offer a unique entry into the original downtown neighborhoods by creating an in-fill solution for residential density.”

Business Climate SPECIAL SECTION

The Future The future of greenHAUS is filled with possibilities. Though currently located in downtown Pensacola, greenHAUSes are starting to generate interest near and far.

Eventually, Balencie and Bell would love to see the project expand to international markets to help the less advantaged.

“In a lot of foreign coastal communities, entire neighborhoods can be wiped out by a flood or hurricane,” said Balencie.

“Recently more than 350 people became homeless in Costa Rica because of a mudslide. We’d love to be able to ship these homes over there, give the victims a home and make it one that will stay there.”

Assuming a slab foundation is in place, a greenHAUS can be built by five unskilled workers in just 30 days. Because of the unique construction of these houses, all materials can be shipped in a 40-foot container and assembled on-site. This not only makes these homes extremely versatile, but ensures that anyone anywhere can have a roof over their head without any complications.

“In other countries, if you’re short adaptable. Right now, homes are needed some wood or tools, you can’t just run to everywhere, but the problem is a lack of your nearest hardware store and get what materials and a shortage of laborers.” you need,” said Bell. “Often those supplies The beauty of greenHAUS is that it are an hour or a day solves both those problems by away. With greenproviding the materials in a preHAUS, everything packaged format and makes it The design you need is right so anyone can be a competent is proven and there in that conlaborer. tainer. We include “The concept is proven and the market is all the ingredients.” the market is ready,” said Bell. ready.

The future does Closer to home, Bell is already not just belong to seeing non-traditional applicainternational martions for the greenHAUS that he kets, though. While current greenHAUSes anticipates will continue to expand. are built to Florida state code, the team “Because of the relatively low price and would like to adapt their design in the the great location, some people will use future to meet other codes, such as those this as a vacation house,” said Bell. up north that demand superior roofweight capabilities for snow, or those out west the require strong foundations for possible seismic activity.

“The last great idea hasn’t been thought of yet,” said Balencie. “I like to think this is a really great idea. It’s patented and

“

”

A Changing Cityscape For Balencie and Bell, though, greenHAUS is about so much more than the greenHAUS itself. Their real mission is community betterment, and modern, energy-efficient, durable housing is just a means to an end. Take Strong Street for example, which features the longest stretch of the homes currently available, between 7th and 8th Avenues. The homes sit on manicured lawns behind roofed porches and pop with exuberant colors.

Although the surrounding areas are your typical aging homes built atop cinder blocks with dusty yards, the greenHAUSes effectively transform both the space they occupy and the surrounding areas. In effect, greenHAUS helps to set the standard for the surrounding neighborhood.

Improving neighborhoods has been the mission all along, at least for Balencie and Bell, and they are doing just that. No longer the products solely of progressive urban cities, houses that combine style and sensibility with no-nonsense adaptability now find a comfortable home in Pensacola. As our city’s demographics and attitude toward the environment continue to change, so too will the demand for these types of smart structures increase.

“These houses are fabulous, great products,” said Pensacola Mayor Ashton Hayward. “They’re environmentally friendly and perfect for what we continue to need in Pensacola: coastal-

looking residencies that are smart at a great price point.”

Balencie and Bell saw a need and took steps to create a solution.

They are building a brighter future for those here and possibly those far away, one house at a time.

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Business Climate SPECIAL SECTION

STARTING UP PENSACOLA Hidden behind Pensacola’s expansive culture and

historical attributes are some brilliant thinkers and innovators who are designing the ubiquitous technological staples of tomorrow. Thanks to the Greater Pensacola Chamber’s and Pensacola State College’s downtown business incubator, the Center for Innovation and Entrepreneurship, downtown is playing host to those who have invented, among other things, the next great job board, ground-breaking drone technology, and eyesightsaving cameras. ¶ The CIE provides high-growth companies in the

their infancies with the chance to increase their likelihood of success by providing shared, collaborative office space, reduced rental prices, and high-bandwidth internet. By serving as a catalyst for the next big thing, the CIE ensures that great ideas will not be derailed by the often prohibitively high cost of getting a business off the ground.

by JOSH NEWBY

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Tenants are also given access to educational

tests to those who need it

opportunities to help further hone their business

most.

Eventually,

acumen. Most companies spend about three

software should also be

years in the incubator, finessing their product

able to detect glau-

for full market penetration before they are able

coma and macular

to have dedicated office space and a workforce

degeneration.

has experienced about 9 per-

the

cent growth month over month and about 10 percent of customers actually pay for the freemium

that exceeds the CIE’s capabilities. Graduating companies provide metrics on jobs created, salaries paid, revenues earned, technologies commercialized and other economic gains to prove the viability and usefulness of a coworking space downtown.

Recently, six companies demonstrated all

service,

which allows basic

PAY CELL SYSTEMS Another

messaging for free but requires a fee for more advanced

new

offerings and analyt-

business being devel-

ics.

oped in the CIE is Pay

Soon, Lepinay said,

they hope to offer the world in front of commu-

Cell Systems, an e-com-

they will launch on Android

nity leaders and panelists whose backgrounds

merce, app- and phone-based

include marketing, business administration,

platform for independent prepaid

and law.

phones dealers to sell minutes and receive com-

devices and in international markets such as the United Kingdom, Canada, and some nations in South America.

mission. Currently, an independent store that sells prepaid phones will not receive a slice of the profit if the individual does not return to that

IRIS IRIS, or Intelligent Retinal Imaging System, is a really exciting piece of equip-

COGNITIVE BIG DATA SYSTEMS

store to refill their minutes. Pay Cell sells custom

Cognitive Big Data Systems and its team of

platforms for these businesses to sell minutes

dedicated engineers is looking to change the way

easily and after business hours.

computing, data storage and cognitive comput-

ment whose creation as been facilitated by

“We’ve developed Cell Pay, which is a

ers operate. By taking devices that have cameras

the CIE. Jason Crawford is the CEO, who

subscription-based service that independent

or sensors, such as desktop computers, drones

helped develop the software algorithm

carriers can use to make sure they receive com-

and other products, Cognitive’s software can

that is installed on medical cameras that

mission on phones and minutes they have sold,”

convert any image, video or voice recording to

take pictures of the back of a patient’s

said Jibril Sulaiman, founder of the company.

a code replica of that information. Right now,

eye. Using the IRIS software, retinal

“We provide the refill solution that is important

most data is stored as the actual data itself. A

abnormalities can be detected quickly

to so many companies because of the residual

picture is stored as a JPEG, for example. With

and with 98 percent accuracy.

income.”

this new software, however, the data is stored as

At this time, IRIS’s main application

about

the metadata it is comprised of, allowing devices

is with America’s diabetic population, of

$750,000 worth of payments per month, or $9

to learn to recognize and retain memory in a new

whom there are 30 million people. Diabetic

million per year. Of the 20,000 independent

way.

Right

now,

Cell

Pay

processes

retinopathy is the leading cause of blind-

stores in the nation, Pay Cell is active in about

“We take that code and store it in the cloud,”

ness of America, and occurs because of the

300, and Sulaiman is using an aggressive sales

said Lloyd Reshard, who helped found the

microvascular impacts that diabetes creates

technique to get his important software in other

program. “We essentially build and sell sensor-

against the retina. The technology is available

stores soon.

driven neural memories in the form of computer

to stop most of the condition’s destruction in its tracks, but many diabetic patients do not receive the yearly eye exams necessary to catch it early enough. IRIS would change that.

code.”

CLEARSTREAM

Reshard hopes to be able to bring this tech-

Michael Lepinay is co-founder of Clearstream,

nology to the masses, via Microsoft’s BizSpark

a business-to-business mass-texting service that

Plus program to support the development of a

“We have the means to literally save sight,”

offers clean design, automation and ease of

highly scalable cloud-based solution to meet the

said Crawford. “Only about half of those with

use to companies hoping to communicate with

demands of the current disruptive era of smart

diabetes go to the eye doctor. By partnering with

many employees, customers, or potential clients

machines.

primary care doctors and hospitals to put in

at once. The web- and app-based product is FCC

these simple stations, these patients could easily

compliant and was designed to help create and

get a check-up on their annual visits and have a

manage marketing campaigns.

very accurate reading done automatically within 72 hours.”

“This is a product that does already exist,

ACCOUNTINGFLY Accountingfly, formerly known as College Frog, was one of the CIE’s very first tenants and

but it’s been interesting to see how different

has experienced a rebranding, realign-

The algorithm has received FDA approval

businesses use it for different purposes,” said

ment, and renewed interest by a

and IRIS has already begun partnering with

Lepinay. “We’re the only iOS-available service

wide range of industries in just

Johns Hopkins, Cigna, the Diabetes Care Group

and we already have 1,800 customers.”

a few short years.

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Lepinay went on to report that the company

“Job boards are terrible,”

Business Climate SPECIAL SECTION

said CEO Jeff Phillips. “It is expensive, as much as $25,000 to headhunt a viable

and applications in commercial, personal

and

defense

surveillance,

fields.

exploration,

transportation

and

However, the most popular type

more, anything with

accounting candidate, and it’s time-consuming

of drone remains land-based,

an emphasis in rough

with all the necessary paperwork. Accountingfly

yet features many problems

areas.”

streamlines all those problems and creates an

that are disadvantageous for

answer for accounting firms, candidates and

those wanting to make the

Unlimited

universities with inbound recruiting.”

most of the technology. Right

rently seeking about

Right now, there are 80,000 accounting

R o b o t i c s

now, most drones feature either

$600,000

employers in the nation for 1.1 million accoun-

wheels (which are fast but not

tants. There are also 900 universities that offer

suited for all terrains) or tracks (which

master’s programs in the field. Phillips wants

are great for most terrains but terribly slow

to unite all those, so he and his team created a

and energy-inefficient).

is in

curseed

money for hiring additional staff, equipment costs and further development.

The CIE continues to foster inventive

new software in-house that emphasizes targeted

Dr. Sebastien Cotton hopes to solve both

upstarts such as these and Pensacola is better

location and experience to best match candi-

of those problems with Robotics Unlimited, a

for it. By creating new money and opportunity,

dates with future jobs, and vice-versa. The soft-

start-up bringing cutting edge transportation

instead of recycling local money or even bringing

ware is free for potential employees, and the cost

techniques for land-based drones to entertain-

in outside money, the Pensacola Chamber and

is minimal for firms and universities looking to

ment and defense markets. Cotton and his team

Pensacola State College are ensuring a hospi-

recruit workers and students, respectively.

essentially removed the tire from wheel spokes

table environment for innovation and the long-

“All these firms have career pages, so they

to allow the drone to travel across a variety of

term success of the area’s dreamers and doers.

are embedding an ‘apply through Accountingfly’

surfaces very quickly with alternating and paral-

link on those pages so we can have all the talent

lel pairs of between three and eight spokes.

in one centralized location,” said Phillps. “Soon, employers become their own headhunters and students can tailor their job prospects to meet

“It solves both problems and can travel up to 40 miles on one battery charge,” said Cotton.

Robotics Unlimited recently inked a deal with toy manufacturer WowWee to license the

their ambitions and where they want to live.” the

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nwflbusinessclimate.com nwflbusinessclimate.com| Business | BusinessClimate Climate| 61 | 61

PENSACOLA and the

operating policies and setting up the Fellows loan funds. The five trustees were Dixie Beggs; Rev. Henry Bell Hodgkins; Clyde Miller, M.D.; Dakin Ferris of the brokerage house of Merrill, Lynch Pierce Fenner and Smith; and Harold Smith, a great nephew of Mrs. Fellows.

Under Mrs. Fellows’ will, the new fund would have assets in 1961 of about $600,000 which would produce a modest operating income. Criteria was established for qualification of loan applicants who wanted to study medicine, nursing, medical technical subjects, and the clergy.

Arrangement was made for the president of the Pensacola Junior College and his assistants to serve as consultants for promoting and processing loan applications.

Audit procedures were put in place to protect the fund and its procedures. The Trust Department of a local bank was appointed to serve as agent for closing and servicing loans. These elements were finalized and in 1962, the first 11 loans were confirmed, nine for medical school training and two in nursing school. Each of the loan recipients agreed to a basic policy that upon graduation he or she would practice skills learned for a minimum of five years in either Escambia, Santa Rosa, Okaloosa or Walton county.

All of that was more than 50 years ago.

Since 1961, the four counties have enjoyed a huge collective population growth.

Hospitals have been added, expanded, or relocated; specialties within hospitals or in clinics have multiplied (ultrasound, respiratory therapy, physical therapy, occupational therapy, physicians assistants); and the introduction of Medicare and Medicaid have created a great stimulus for healthcare. As specialties were introduced, the Fellows Fund trustees provided for loans as appropriate. Meanwhile, the investment practices of the trustees enabled the original fund’s capital to increase more than 10-fold.

In those 50 years, the chairmanship of the Fellows Loan Foundation’s trustees have been held by just three men: Dixie

FELLOWS LOAN FOUNDATION

by John Appleyard

Health care continues to be one of Northwest Florida’s major growth services in 2015. With local hospitals increasing patient capacity and adding technical options, there is a steady rise in the need for qualified medical staff. While our area’s medical capabilities have expanded, along with population, there has long been a shortage of doctors and nurses, especially in more remote communities. That was the principle reason for establishment of the Fellows Loan Foundation as a student loan resource more than 50 years ago.

Establishing the fund was the dream of Dr. J. Hugh Fellows and his wife, J. Earle.

Dr. Fellows had practiced as a Pensacolabased physician and surgeon for over 45 years. Dr. Fellows was greatly concerned about the medical skills shortages present in the four northwest Florida counties (Escambia, Santa Rosa, Okaloosa and Walton). A number of communities did not even have a physician. Hospitals, physician offices, and the rising number of technical laboratories were chronically short of trained nurses. Clinical laboratories and radiology centers often could not obtain skilled people. Dr. and Mrs. Fellows reasoned that the shortages often were the result of prospective medical and nursing students simply being financially unable to pursue their education. As a dream, Dr. and Mrs. Fellows hoped to address that problem.

Following her husband’s death, Earle Fellows took action. Her consultant was respected Pensacola attorney, E. Dixie Beggs. He included in Mrs. Fellows’ will a plan for a low-cost student loan fund that could assist prospective students.

Following her death, five trustees assembled on Sept. 1, 1961, to further the plan of Mr. Beggs and Mrs. Fellows by preparing 6262| Business | BusinessClimate Climate| nwflbusinessclimate.com | nwflbusinessclimate.com

Beggs, Rev. LeVan Davis, and Judge Roger Vinson. Only 18 persons have sat as trustees. All of the presidents of Pensacola Junior College, now Pensacola State College (Drs. Henry Ashmore, T. Felton Harrison, Edward Hartsell, Charless Atwell, Thomas Delaino, and Charles E. Meadows) have served as originally planned. Ms. Virgina Santoni has served as marketing consultant. Over the past half century, more than 400 men and women have been granted student loans. By practice, loans are not scheduled for repayment until a reasonable time has passed for the recipient to begin a successful practice. Interest charges are modest, as the original planners had specified they should be.

From the first, the organizational structure of the Fellows Loan Foundation has remained small and operating costs are negligible. Attorney Gary Leuchtman is now the legal consultant. Trustees are not compensated. All work is done to make the program known to students of area high school, colleges, or universities.

Communication also is maintained with hospitals, clinics, and special care givers whose staffing needs might be met through the Fund’s loans. One unique note with the Foundation’s records has been the continuing escalation in the cost of health care education. The Fund’s practice has been to adjust the loan maximums to meet those changes.

Over time, medical students with loans from the Fellows Fund have taken their degrees from 18 different universities; 26 training facilities have been utilized by nurse education candidates.

Judge Roger Vinson, who has served as the Foundation’s chairman for almost 20 years, offered this summary comment: “The objectives envisioned by Dr. and Mrs. Fellows over 50 years ago remain the same today: to make financial resources available to young people who may proceed with medical careers to strengthen this area’s health resources. Our Trustees continue to study medical needs, the costs of medical and nursing schools, and ways to make our loans available to the young people of Escambia, Santa Rosa, Okaloosa, and Walton counties. I’m sure that today Dr. and Mrs. Fellows would be very pleased with what their estate has provided for the health care of Northwest Florida.”

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64 | Business Climate | nwflbusinessclimate.com

Business Climate SPECIAL SECTION

around the region

United Way accepting applications for Loaned Executive Program United Way of Escambia County is accepting applications for the 20152016 Loaned Executive Leadership Program.

Loaned Executives (LEs) are volunteers who are “loaned” to United Way by their employers to support the United Way’s Workplace Campaign through leadership and advocacy.

This program is a perfect opportunity for you to make a HUGE impact on Escambia County’s nonprofit community while developing your leadership skills and professional network. As a Loaned Executive, you will be on the front lines of community change. Not only will you learn about the needs in Escambia County, but you will also work to meet these needs by supporting the United Way Workplace Campaign, which annually raises over $2 million for local nonprofit programming.

Training for LEs will be provided. If you are interested in serving your community in an impactful way through United Way’s Loaned Executive program, download an application today at www.unitedwayescambia.org/LE. Applications will be accepted through May 29, 2015. For more information, e-mail frank@unitedwayescambia. org.

Saenger recognized as top performing attraction Pensacola’s Saenger Theatre recently announced that it has received a TripAdvisor Certificate of Excellence award. Now in its fifth year, the award celebrates excellence in hospitality and is given only to establishments that consistently achieve great traveller reviews on TripAdvisor.

Certificate of Excellence winners include accommodations, eateries and attractions located all over the world that have continually delivered a superior customer experience.

AppRiver executive team expansion AppRiver, LLC, a leading provider of email messaging and Web protection solutions recently announced it has expanded its executive team, adding a new executive appointment and three promotions to round out its world-class management team.

In newly created roles, Jeff Malone has joined AppRiver as vice president of Sales, Michael Hamstra has been promoted to vice president of Marketing, Chris Cain has been promoted to vice president of Software Development and Doug Coleman has been promoted to Chief Financial Officer. The four bring to AppRiver decades of experience in sales, product, marketing and financial development.

AppRiver was founded in 2002 and has experienced a compound growth rate of 74.7 percent, increasing revenue in the last financial year alone by 23.5 percent to $53.9 million globally. The company has also seen significant Europe, Middle East and Africa (EMEA) growth with revenues up 120 percent and seat activations up 362 percent since this time last year. AppRiver also grew staff numbers and expanded operations in Atlanta, Austin, Texas and Barcelona, Spain.

UWF political science professor selected for a Fulbright U.S. Scholar Grant Dr. Alfred G. Cuzan, Distinguished University Professor of Political Science at the University of West Florida, is the recipient of a prestigious Fulbright U.S. Scholar Grant. Cuzan will be affiliated with the University of Tartu, the national university of Estonia, where he will be teaching American politics and Latin American Politics during the spring 2016 semester.

Founded in the 17th century, UT is one of the oldest universities in northern Europe, and the largest and most highly ranked institution of higher learning in Estonia.

LBA Hospitality names Hampton Inn & Suites Pensacola hotel of the year LBA Hospitality, a full-scale hotel management, development and consulting firm based in Dothan, Ala., recently announced Hampton Inn & Suites Pensacola has been named its 2014 Hotel of the Year.

According to LBA Hospitality’s President Beau Benton, Hampton Inn & Suites Pensacola is known for its consistency, reliability and dependability, which are all qualities that were apparent when the hotel was graded using the company’s balanced scorecard. The hotel also has associate satisfaction scores of 90 percent and a quality assurance score of 90.91.

HCA Award of Distinction winners focus on patient-centered philosophy and peer collaboration at Fort Walton Beach Medical Center Fort Walton Beach Medical Center announced last week the recipients of its 2014 HCA Awards of Distinction. The winners of the Frist Humanitarian Awards, which recognize one physician, one employee and one volunteer who each demonstrate extraordinary concern for the welfare and happiness of patients and their community, are Dr. Eric Duffy, Priscilla Moore and Mariece Herring.

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