Baton Rouge Business Report | February 26, 2019 by Baton Rouge Business Report

SPECIAL SECTION: SMALL BUSINESS GUIDE 2019

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TURF Located on an inconspicuous gravel road in St. Gabriel, Charles Dawson and his GeoSurfaces is a $100 million player in the artificial turf industry, including work with the Super Bowl champion New England Patriots.

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CONTENTS

Publisher: Rolfe H. McCollister Jr.

EDITORIAL

HOME

Editorial director: Penny Font Executive editor: JR Ball Managing editor: Steve Sanoski Editor: Stephanie Riegel Online news editor: Deanna B. Narveson Staff writers: Caitie Burkes, Holly Duchmann, Annie Ourso Landry Digital content editor: Mark Clements Contributing writers: Gabrielle Braud, Tom Cook, David Jacobs, April Capochino Myers, Maggie Heyn Richardson, Meredith Whitten Contributing photographers: Brian Baiamonte, Marie Constantin, Don Kadair, Tim Mueller, Collin Richie

ADVERTISING

Sales director: Kerrie Richmond Senior account executives: Marielle Land-Howard, Kelly Lewis Account executives: Cindy Beaucoudray, Stacy Kaklis, Lauren Jarreau Advertising coordinator: Brittany Nieto

CORPORATE MEDIA

Content strategist: Allyson Guay Account executives: Judith LaDousa, Angie LaPorte

CUSTOM PUBLISHING

Sales director: Erin Palmintier-Pou

MARKETING

Chief marketing officer: Elizabeth McCollister Hebert Marketing assistant: Katelyn Oglesby Events: Abby Hamilton Community liaison: Jeanne McCollister McNeil

ADMINISTRATION

Controller: Jessica F. Sharp Digital manager: James Hume Business associate: Kirsten Milano Business associate: Tiffany Durocher Office coordinator: Tara Lane Receptionist: Cathy Varnado Brown

PRODUCTION/DESIGN

COVER STORY - PAGE 14

COLLIN RICHIE

Production director: Melanie Samaha Art director: Hoa Vu Graphic designers: Gracie Fletcher, Melinda Gonzalez, Emily Witt

AUDIENCE DEVELOPMENT

Audience development director: Benjamin Gallagher Audience development coordinator: Austin Arnold

PUBLISHER’S VIEW

NEWS

THE LIST

6 Why doesn’t government work?

20 Dangerous precedent? An oilfield services company’s recent $2 million judgement against Hancock Whitney is making the banking industry nervous.

58 SBA lenders

22 They broke it, we pay for it While Marquette Transportation is responsible for the damage that closed the Sunshine Bridget, it’s Louisiana taxpayers who will cover most of the repair bill.

60 The Big Picture

STARTUP 8 Executive Spotlight: Shawn Usher 10 Entrepreneur: Trent Luecke and Chris Fairley 11 Business Lunch: Beausoleil Restaurant and Bar

VIEWPOINT 58 Random Thoughts

Volume 37 - Number 12

64 Company News

©Copyright 2019 by Louisiana Business Incorporated. All rights reserved by LBI. The Greater Baton Rouge Business Report (USPS 721-890 ISSN 0747-4652) is published biweekly by Louisiana Business Inc. Reproduction without permission is prohibited. Business address: 9029 Jefferson Hwy., Ste. 300, Baton Rouge, LA 70809. Telephone (225) 928-1700. Periodicals postage is paid at Baton Rouge, La. Subscription rate is $59.00 for 25 issues, with 3 additional issues published annually in April, June and December. POSTMASTER: Send address changes to The Greater Baton Rouge Business Report, 9029 Jefferson Hwy. Ste. 300, Baton Rouge, LA 70809. The Greater Baton Rouge Business Report cannot be responsible for the return of unsolicited material—manuscripts or photographs, with or without the inclusion of a stamped, self-addressed return envelope. Information in this publication is gathered from sources considered to be reliable, but the accuracy and completeness of the information cannot be guaranteed. No information expressed here constitutes a solicitation for the purchase or sale of any securities.

69 Flashback: 2012 Page 25

70 Passion: Stephen St. Cyr

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YOUR BUSINESS 66 Moving Up

SPECIAL SECTION: SMALL BUSINESS GUIDE 2019

A publication of Louisiana Business Inc. Chairman: Rolfe H. McCollister Jr. President & CEO: Julio A. Melara Executive assistant: Millie Coon

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PUBLISHER’S VIEW

Why doesn’t government work?

ROLFE MCCOLLISTER JR. THE LATEST example of government failing its taxpayers and citizens is our recent cover story—“Stung!” by Stephanie Riegel— about the escalating costs and fees for a new headquarters for Mosquito Abatement and Rodent Control. It was approved for $6.5 million and is now up to $11.1 million—with every escalating public dollar spent approved by our Metro Council. The project manager, Gary Beard, had his fee of about $480,000 balloon to $1.2 million—and his firm even had office space in the public building. How does this happen, and what heads will roll? Will taxpayers get a refund? As one reads the details about change orders for windows from Ireland and countertops nicer than those used in our local hospitals—not to mention a giant rat in the lobby, which has an acrylic case that cost $1,800—you can become livid. Many of these expensive changes were challenged by the vendors as unnecessary—yet Beard and the Metro Council approved them anyway. This is an outrageous example of incompetent oversight and dereliction of duty by government officials. Government at work, right? What can you do about it? If it’s not illegal, no one goes to jail for wasting our money. Councilmen Dwight Hudson and Matt Watson met with Todd Walker, MARC’s director, asking him to resign. Walker’s response? An email stating he had consulted with his agency’s board and decided “not to submit a letter of resignation at this time.” Now Hudson and Watson are calling for a hearing to fire Walker. 6

BUSINESS REPORT, February 26, 2019 | BusinessReport.com

Watson acknowledges “there has been a history of lack of oversight but fiduciary oversight is the single most important job of the legislative branch and the buck stops here and it is not going to happen anymore. There is something shady going on out there and when we confronted (the director) he didn’t ask how he could fix it. He argued we were wrong.” Mayor Sharon Weston Broome responded to the controversy, saying, “These findings send a signal that there needs to be tighter oversight of the agency by not only the MARC Board of Commissioners but the Metropolitan Council itself. My administration will work with council members to investigate the situation at MARC and make any necessary changes in order to protect taxpayer dollars and ensure quality delivery of services.” While quick to point out the Metro Council is MARC’s governing authority, Broome conceded “it is the city-parish’s responsibility to be good stewards of taxpayer dollars and ensure fiscally sound management practices are being utilized by all agencies.” She is right, and, as leader of the parish, should hold the Metro Council and all government agencies accountable for spending and oversight. That is their job—and hers, too. Still, this 20/20 hindsight and “fix” doesn’t excuse anyone and, sadly, doesn’t recover a penny of the $5 million in excess taxpayer money spent on the fancy new office with a giant rat statue in the lobby. It is, however, more evidence that government fails to spend wisely as if the dollars were their own. Taxpayers trust elected officials to look out for them. What happened at MARC can appear as corruption and seedy politics that allows “pigs at the trough,” which is part of our history. We deserve better and it makes me angry. The MARC story is but one example of government failure and waste. We here often the cry that “government needs more money.”

Then we read a story like “Stung!” and one wonders if we can even trust government leaders with the money they already have? Maddeningly, there are many other stories we’ve read that speak to the inefficiency and ineffectiveness of government, as well as contracts doled out and folks added to the payroll. Even worse is that the public often passes a dedicated tax to allegedly protect those dollars, only to find it has gone to an unelected board to spend as they please— like the Council on Aging, CATS or MARC. Are there stories there among these government agencies yet to be discovered and told? Fact is, we have already read stories about each of these, which all get millions of tax dollars—and waste many of them. It is an outrage and a crime in my opinion. I personally came out against the dedicated taxes for CATS and the COA. Too much money and poor oversight. Status quo and politics. I may have supported a millage on mosquito abatement because I actually thought the money was going to abate mosquitos. And, I had the Metro Council on duty to protect the dollars collected, right? Wrong. But we all know, government waste isn’t only found at the city-parish level, it’s rampant at the state and federal levels, too. We recently read this headline in The Advocate: “Louisiana Medicaid audit suggests possible wide-spread (sic) misspending, prompts federal probe.” As state officials screamed about deficits, there was $85 million or more in Medicaid spending that was given to folks who didn’t qualify. But don’t worry, it has been fixed and will never happen again. Now some will say, but those were federal dollars (don’t we provide those, too?), not state budget money. But you miss the point. These are the same people in charge and same mindset handling our state dollars. Are you naïve enough to think state dollars aren’t being wasted every day?

What can you do about it? If it’s not illegal, no one goes to jail for wasting our money.

So, how do we deal with these problems? Do we just fire people and clean house of the politicians? Will new folks be any different? Why does government spend your tax dollars so carelessly? Because it’s not their money. Many voters have just decided “no more taxes, period.” They could argue if the system won’t change, then their position won’t change. While being a conservative, I have supported some taxes because I believed they were necessary and beneficial—like in the case of MovEBR and the Bridge Center. You may disagree. But being stung by something as simple as a dedicated tax for mosquito abatement, I may have to admit government may never change if we keep giving it more money. It may only change if forced. GOVERNMENT STANDARDS While I spoke above about tax dollars in government, I also want to touch on operations and the standards set. Specifically, what the mayor and Metro Council expect in treatment of city-parish employees. For example, charges of sexual harassment in the office of the Parish Attorney by a top executive there which have become public knowledge. What will anyone do? I will always presume innocence but expect an investigation. Has that happened? Or is the interim parish attorney going to turn his head along with others? Will we have more of that 20/20 hindsight again? What are our standards and process? I am waiting. TIGERS ON TOP Last week I saw that LSU athletics is riding high in many of the major sports (there may be more). We know that the football team had a 10-win season, capped by a New Year’s Day bowl win and a No. 6 ranking. Last week, the baseball team was ranked No. 1, men’s basketball was 13th, gymnastics was 5th; softball was 7th, women’s track 4th and men’s track 5th. Quite impressive. Kudos to LSU Athletic Director Joe Alleva, the coaches and players. Best of luck for the rest of your seasons.

YOU ARE INVITED TO PARTICIPATE:

PHASE 1:

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Recently featured on CBS’s 60 Minutes:

PROFESSOR SHON

HOPWOOD Former bank robber and jailhouse lawyer, now a legal scholar and prison reform advocate, Professor Hopwood will share his personal story of rehabilitation and re-entry transitional programming as well as overall meaningful incarceration systemic advances.

For more information or to purchase tickets, please visit:: EVENT SPONSORS:

ShonHopwoodBR.org

Coordinated by: Middle District Federal Court

Official Event Printing by: Franklin Data Empowered Direct Marketing

STARTUP THEHeadliners

EXECUTIVE S POTLIG HT

SHAWN USHER PRESIDENT AND CEO, SPARKHOUND

“Technology is the easy part of our job. It’s coordinating and leading people internally and externally that is the most challenging—and most rewarding—part.”

Under review

IN THE NEWS

EAST BATON ROUGE Parish Assessor Brian Wilson says he plans to hire a third-party company this year to review homestead exemptions in the parish and weed out abuse. One of his office’s biggest concerns is regulating homestead exemptions to prevent fraud, such as dual exemptions or those falsely claiming the exemption of a deceased person, Wilson says. In 2018, the parish had $4.2 billion in taxable property, generating more than $500 million in property tax revenue, Wilson says.

In December, the business and technology consulting company celebrated 20 years in business. Since its foundation, Sparkhound has grown to include four offices across three states and 255 employees. Over the past year alone, Sparkhound has seen 24% employee growth and continues to serve hundreds of clients.

NOT ON THE RESUME

A NEW WAY NEW ORLEANS BUSINESS and hotel magnate Joseph Jaeger Jr. plans to enhance the guest experience at Nottoway Plantation in White Castle following his recent purchase of the historic antebellum home. “We want to tie in this property with what we do in New Orleans and sell it as a unique experience,” says Jaeger, who owns 16 New Orleans-area hotels, including various boutique properties in the French Quarter. Jaeger bought the 53,000-square-foot mansion—which sits on more than 30 acres and includes two ballrooms, a restaurant and 40 overnight rooms—for $3.1 million and “other good and valuable considerations” on Feb. 13, according to Iberville Parish land records. The foundation of Australian businessman Paul Ramsay, who owned Nottoway from 1985 until his death in 2014, sold the property to Jaeger.

BUSINESS REPORT, February 26, 2019 | BusinessReport.com

or without accountability and you can find that your company is teetering on bankruptcy. Not delegating means you keep too much on your plate and you become the chief bottleneck in the company.” • As a husband and father of four, striking a healthy worklife balance isn’t easy. “What has worked best for me

over the years is to make the decision to put work on the shelf when I’m not working.” • There’s one thing he tells every client or potential client about Sparkhound. “Our joy comes from client

success. Seeing the impact of our participation in their business is validation worth more than money.” • When entertaining out-of-town clients, he takes

them to Mansurs on the Boulevard for a business lunch. “They like the relaxed environment and we go with

multiple courses: Start with the charbroiled oysters; enjoy a cup of the chicken, duck and sausage gumbo; get any of their premium fish entrees; and wrap it up with the bread pudding.” • Three things he’s determined to do in life: “I would love to speak Spanish and learn to play the piano well, but probably the thing I’m most determined to do is travel the world.” Read the full Q&A at businessreport.com.

DON KADAIR

WIKIMEDIA COMMONS/LUDOVIC BERTRON

• Learning to effectively delegate and hold people accountable are leadership skills he has learned the hard way. “Delegate to the wrong person

Issue Date: 8-28-18 Ad proof #3

• Please respond by e-mail or fax with your approval or minor revisions. • AD WILL RUN AS IS unless approval or final revisions are received by the close of business today. • Additional revisions must be requested and may be subject to production fees. Carefully check this ad for: CORRECT ADDRESS • CORRECT PHONE NUMBER • ANY TYPOS This ad design © Louisiana Business, Inc. 2018. All rights reserved. Phone 225-928-1700 • Fax 225-926-1329

I N BRIEF

LOOKING

State of the union THE SHARE OF Louisiana workers who belong to a union rose to 5% last year, up from 4.4% in 2017. Union membership in Louisiana is on the rise after hitting an all-time low of 4.2% in 2016. Membership peaked in 1993 at 9.4%. Nationwide, union members accounted for 10.5% of employed wage and salary workers in 2018, down 0.2 percentage points from 2017. The state with the highest rate last year was Hawaii, at 23.1%. North Carolina and South Carolina had the lowest share of union members among workers, at 2.7%, followed by Utah (4.1%), Texas and Virginia (4.3%). Since comparable state data became available in 1989, union membership rates in Louisiana have consistently been below the U.S. average. Here’s a look at how union membership in Louisiana has stacked up to the national average since 2008.

GOOD! 129

Set up & Delivered (VST513)

UNION MEMBERSHIP 14% 12% 10% 8% 6% 4% 2% 0%

2008

2009

2010

2011

2012

2013

2014

2015

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UNITED STATES

2017 2018

LOUISIANA

Create a stylish conference room without breaking your budget

SOURCE: U.S. Bureau of Labor Statistics

LOUISIANA OFFICE SOLUTIONS CO

SBA LENDERS IN THE CAPITAL REGION IberiaBank 4451 Bluebonnet Blvd., suite D, Baton Rouge 70809 SBA loan volume at end of fiscal year 2018:

$10.77 million For the full list, see page 58.

Monday-Friday 8am-5pm 7643 Florida Blvd • Baton Rouge, LA 70806 225.927-1110 • losco.com Daily-Report.com | BUSINESS REPORT, February 26, 2019

STARTUP

ENTREPRENEUR

TrentLuecke & ChrisFairley Co-owners, Recalibrated Strength and Conditioning

WHAT THEY DO

Offer a variety of fitness programs designed to develop individuals, athletes and teams; home of Crossfit Kingfish gym

ADDRESS

7872 Anselmo Lane, suite B; and 600 Main St.

NEXT GOALS

Offer sports performance training and offsite group programs

ATHLETIC AMBITIONS FOR AS LONG as he can remember, Chris Fairley has always been involved in something athletic. From playing collegiate soccer and serving in the United States Coast Guard to frequenting a friend’s Crossfit gym in Baton Rouge, Fairley describes himself as your average fitness enthusiast. In 2015, Fairley saw an opportunity to grow the local Crossfit community and opened his own gym, Crossfit Kingfish. The venture later evolved into a mission to create a space that offers functional training for all fitness levels. He teamed up with business partner Trent Luecke to open Recalibrated Strength and Conditioning on Anselmo Lane, and the pair has spent the last two years expanding their business and personal training options to cater to every type of athlete.

WORKING IT OUT RECALIBRATED Strength and Conditioning is rooted in community, according to Luecke, whose passion for strength and conditioning coaching is fueled by seeing the personal transformation of his clients. “We get to know our clients and see them in vulnerable states,” he explains. “That bond is really strong, which ultimately helps with referrals and creates more of a community.” One-on-one coaching makes up the bulk of the gym’s programing. Clients also have access to a variety of classes like cycling, yoga, Crossfit and Crossfit Kids. Since joining together as business partners, Fairley and Luecke have refined their vision for Recalibrated Strength and Conditioning, seeking to set themselves apart by offering a challenging, high-quality, personal product.

EXPANDING OPTIONS

“Let’s create this one massive space that can house a variety of programs— like a frickin’ fun house of fitness.” —Trent Luecke

BUSINESS REPORT, February 26, 2019 | BusinessReport.com

FAIRLEY AND LUECKE say Baton Rouge is lacking when it comes to functional fitness spaces. To help fill the void, they opened a second location in downtown Baton Rouge last year. In their opinion, competition breeds good business, so the more they offer, the better. Whether they’re flipping tires or filing payroll, these Crossfitters-turned-business owners are constantly contemplating new ways to serve their members and grow their client base. Fairley is currently pursuing a physical therapy degree in order to provide rehabilitation services. They also plan to begin offering sports performance training and nutrition consultation. “We are working toward creating a facility that holistically encompasses fitness and wellness,” Fairley says. —Gabrielle Braud • Photography by Brian Baiamonte

STARTUP

TASTE

BUSINESS

Lunch

WHEN BEAUSOLEIL opened in 2000, Baton Rouge was at the beginning of a gastronomic reckoning. The restaurant was an early adapter of going beyond a local menu scene that was then dominated by steaks, crabmeat-topped fish and fried seafood platters. The goal of founders Jeff Conaway and Nathan Gresham was to serve chef-driven dishes featuring local and modern ingredients, prepared with classic French techniques in an hip atmosphere. “Being in business for nine years, the city has really caught up to what we started out doing, using new flavors and trying to create more of an experience,” says Conaway, who now serves as executive chef and managing partner following last fall’s departure of Gresham, who left to pursue a new venture in Colorado. “It’s been great to see so many really good new places hit the scene since then.” Beausoleil was also a frontrunner in the brunch game, adding service in 2010. Brunch remains a popular daypart, attracting hordes of diners for detailed sweet and savory dishes—and adult beverages. In 2014, the restaurant completed a physical expansion, increasing seating from 90 to about 160, and adding a second bar and event space. This spring, the lunch menu will see lots of new items, says Conaway, but a remaining favorite is the blackened rainbow trout with stewed okra and Crystal beurre blanc.

BEAUSOLEIL RESTAURANT AND BAR BY MAGGIE HEYN RICHARDSON • PHOTOGRAPHY BY COLLIN RICHIE

The rainbow trout is perfect for blackening, Conaway says, because its natural oil content helps maintain the fish’s flavor and moisture—and helps it cook evenly. It’s seasoned, seared in an iron skillet with the skin on, and served under stewed okra and tomatoes and beurre blanc—the French wine—shallot and butter sauce, whose flavor is enlivened here with Crystal hot sauce. One of the restaurant’s two bars, which feature their own menus of small plates and craft cocktails.

ADDRESS: 7731 Jefferson Highway CUISINE: Contemporary Southern HEAD CHEF AND MANAGING PARTNER: Jeff Conaway MOOD: Quaint and accessible atmosphere, with an outdoor patio PRICING: $$-$$$

The restaurant earned a runner up designation in the 2018 Best of 225 awards in the best craft cocktails category. Daily-Report.com | BUSINESS REPORT, February 26, 2019

COVERSTORY

FIELD OF DREAMS: GeoSurfaces, headquartered in St. Gabriel, got its break into the professional sports world when the Super Bowl champion New England Patriots selected the company to install the artificial turf in the teamâ€™s indoor practice facility.

BUSINESS REPORT, February 26, 2019 | BusinessReport.com

HOME

PHOTOS COURTESY OF GEOSURFACES

IN EARLY 2019, the New England Patriots, a six-time Super Bowl champion, resurfaced their Empower Field House indoor practice facility after more than a year of testing various types of turf and vetting companies across the globe to install the massive indoor surface.

It was a job any major brand name in the artificial turf industry would want. But the Patriots went with a relatively new product called Ironturf, manufactured by GreenFields USA, and installed by its exclusive distribution partner, GeoSurfaces. Landing the Patriots facility marked the first big break into the world of professional sports for GeoSurfaces, a small-town company from south Louisiana that has seemingly flown under the radar for years, while building a business empire headquartered 15 miles south of Baton Rouge on an inconspicuous gravel road in St. Gabriel. GeoSurfaces started out small, with founder Charles Dawson selling turf from the trunk of his car in the early 2000s, but has grown at break-neck pace since then, installing more than 300 sports fields across Louisiana— everything from recreational parks to Division I colleges—as well as facilities in states such as Arkansas, Oklahoma and Texas. By Dawson’s guess, GeoSurfaces has now cornered at least 80% Daily-Report.com | BUSINESS REPORT, February 26, 2019

COVERSTORY

“We want to control the job from start to finish. That’s why our business model has been so successful. Nobody in the world does this, that I’m aware of, except us in little old St. Gabriel.” COLLIN RITCHIE

—CHARLES DAWSON, founder, GeoSurfaces

of the region’s market share. The numbers support his claim, boasting 10% to 15% year-overyear revenue growth in each of the past five years. This year Dawson expects company revenue to hit the $100 million mark. It’s remarkably rapid growth in an industry dominated by bigbrand names like Germany’s AstroTurf, Canada’s FieldTurf and Shaw Sports Turf, owned by Warren Buffett’s Berkshire Hathaway. Dawson’s business model, though, is different from his competitors. It’s about more than just artificial turf, touting a suite of vertically integrated, turnkey sports surface solutions. GeoSurfaces not only constructs and installs, it also designs and develops sports surfaces, with several patented or patent-pending products, including its own structural base, shock 16

BUSINESS REPORT, February 26, 2019 | BusinessReport.com

pad and drainage technology. In 2013, Dawson added sports lighting to the repertoire. So from the surface below to the lights above, GeoSurfaces basically does it all. “We want to control the job from start to finish. That’s why our business model has been so successful,” Dawson says. “Nobody in the world does this, that I’m aware of, except us in little old St. Gabriel.” That turnkey business model makes them unique, but what’s made them a force on the national playing field is a fortuitous partnership in late 2018 with a major player in the industry: GreenFields USA and parent company TenCate Grass, a global provider of synthetic turf components, including Ironturf. Worth noting is that TenCate has been in business for more than 300 years, making it older than the United States. It’s this partnership that paved the way a month later to

land the New England Patriots job. But a small-town company making it the big leagues almost overnight is a perception that worries Dawson. Those who know him attest that he’s fiercely loyal and hands-on when it comes the company and those responsible for its early success. He’s not one to forget where he came from. “We’re not better than you,” Dawson says emphatically, sitting inside his office nestled off the quiet, gravel road in St. Gabriel. “We want people to know that. They still call my cell. I’m the CEO—fancy title, right? But I’m nothing without our people grinding every day. I’m still the guy who will go meet with Parkview Baptist or Louisiana Tech if they make the call.” The business, no matter how wide its reach, remains focused on “the hometown, the

small-time” because that’s where Dawson started. “Sometimes it almost scares me for people to think we’ve maybe outgrown them or they’re not important to us,” he says. “The smallest guy is the most important—because that’s us, too.” ‘IT JUST EXPLODED’ Unsurprisingly, Dawson’s career in sports didn’t begin with GeoSurfaces, but it did lead him to it. Before entering the real world of work, the Arkansas native played professional baseball as a catcher with the Atlanta Braves organization in the mid1990s before finishing his playing career in the Independent Leagues after sustaining an injury. Later he became an assistant coach at his alma mater, Southern Arkansas University. In the early 2000s, Dawson was working for Cal Ripken Baseball in Maryland, where he met

Daniel Daluise, a retired engineer and the inventor of a new type of turf, who was partnering with Ripken to sell the product. Overnight Dawson became a salesman, hitting the road in search of teams interested in installing the turf. His first successful pitch was to West Monroe High School, a north Louisiana football powerhouse with a legendary coach— the late Don Shows—who Dawson happened to know. It also helped that he was growing closer to Louisiana, with his parents moving to Baton Rouge to take a job at Parkview Baptist while Dawson was in college, making the city his new hometown. As one of the nation’s top prep football programs, landing West Monroe was something of a coup for Dawson, with Daluise telling him at the ribbon cutting this was was something he should be doing full-time. Staring down 30, with a wife and small child, Dawson hesitated at the thought of quitting his job—and its steady income— to chase something new. Despite the apprehension, he went for it anyway. He was now on his own, forming GeoSurfaces as a sole proprietorship, but still selling and installing Daluise’s product. He would eventually reform the business as a limited liability company in 2008. “I crawled in the dumpster at West Monroe and cut out samples of leftover turf,” Dawson says. “I had connections because I coached on the college level and played professionally, so I started going door to door with samples saying, ‘Hey, this is what West Monroe did—are you interested?’” Dawson installed his second football field a year later, in 2003, at Shiloh Christian High School in Arkansas; another year later a third field went in at St. Thomas More Catholic High School in Lafayette. Business was steady, but the company’s ascent truly began in 2005, landing its first college football field at Arkansas State University. This was also when GeoSurfaces introduced its shock pad technology, incorporating

TURFING it out

How Charles Dawson built GeoSurfaces into a major, turnkey sports surfacing solutions provider Early 2000s While working for Cal Ripken Baseball after his professional baseball career, Dawson is tasked with selling a new type of turf product to sports facilities.

2002 His first successful sales pitch is to West Monroe High School, a Louisiana football powerhouse, which installs the turf at their football field.

2003-2004 Dawson installs his second football field in 2003 at Shiloh Christian High School in Arkansas and his third in 2004 at St. Thomas More Catholic High School in Lafayette.

2005 Arkansas State University becomes the first college to have Dawson install its football field. This is also when he introduces shock pad technology, which incorporates verticalto-horizontal drainage capabilities, and is GeoSurfaces’ first controlled patent.

2008 After five years operating as a sole proprietorship, Dawson registers GeoSurfaces as an LLC.

2013 GeoSurfaces adds lighting to its growing list of sports facility products and services.

2016 The company develops new patented products, including GeoBase structural technology, and invests in manufacturing equipment to produce its turf, base and shock pad technologies under one roof at a facility in Georgia. The business evolves into a full manufacturing, construction and installation turnkey sports surfaces provider.

2017-2018 Dawson moves his headquarters from Baton Rouge to a larger facility in St. Gabriel. GeoSurfaces also begins opening satellite offices in other states.

Late 2018 One month after GeoSurfaces partners with GreenFields USA and parent company TenCate Grass in October, the new partners land the New England Patriots’ practice facility, opening the door to the world of professional sports for GeoSurfaces.

Daily-Report.com | BUSINESS REPORT, February 26, 2019

COURTESY GEOSPORT

COVERSTORY

TURNKEY OPERATION: GeoSurfaces manufactures its own artificial surface at a facility the company owns in Georgia.

something known as vertical-to-horizontal drainage capabilities. It was the first of what has now become nearly 10 controlled patents for the company. Growth accelerated and soon enough GeoSurfaces had a résumé full of college facilities, including LSU and nearly every major Louisiana university. Dawson also picked up work along the way for well-known companies like Marucci and, most recently, Top Golf in Baton Rouge. Meanwhile, the company began developing more of its own patented products, including the GeoBase structural technology for an improved subsurface, as well as the making of the company’s own turf. Both are manufactured, along with the shock pad, at a Georgia facility that opened in 2014. A few loyal, long-time employees have been with Dawson since his early days, experiencing the successful ride first hand. One of them is Mark Roussel, now the vice president of construction at GeoSurfaces. The Kaplan 18

BUSINESS REPORT, February 26, 2019 | BusinessReport.com

native owned a laser leveling company when Dawson reached out to him in the mid-2000s for help with the field in Lafayette and then another in Zachary. The jobs kept coming so Roussel put his company on the back-burner and joined GeoSurfaces. Growth was slow but steady at first, and then it came all at once. “We were small, doing three to four fields a year. Now, just last week, we did five,” Roussel says. “I thought we’d stay kind of on the smaller end, but it just exploded. I love it. Every time I turn around we’ve got another field to do.” FUTURE OF THE SPORT By 2016, GeoSurfaces was producing its own turf, base and shock pad technologies under one roof at the Georgia facility as well as lighting at its St. Gabriel location, evolving into a turnkey—manufacturing, construction and installation—sports surfaces provider. All the while, the company’s client list continued to expand, even winning over those once skeptical of artificial turf, like Glenn Moore,

the head softball coach at Baylor University in Waco, Texas. A self-described traditionalist, Moore prefers natural grass in his softball field, where he runs one of the nation’s top programs. The thought of switching to artificial turf was something he didn’t want to consider, but his team was losing too much practice time on the field due to rain and maintenance. So Moore did his homework, researching turf options and asking colleagues for advice. As the former LSU softball coach, his connections in Baton Rouge recommended GeoSurfaces. Moore had Dawson’s team come out in December and install the entire field, except for the natural dirt infield, and complete a full LED retrofit for lighting. “I thought my window had closed to get it done this season, but they came and the organization was unbelievable,” Moore says. “It was fun to watch.” Studies show artificial turf over the long-term is more cost effective as it not only involves less ongoing maintenance but it’s also

playable as soon as the rain stops. Studies show the injury risks are similar to those of natural grass. “Everyone I’ve talked to felt this is the future of our sport,” Moore says. It’s taken several decades for the wider sports community to embrace artificial turf as a preferred playing surface over grass. For years, most only knew of the first generation of turf, which gained attention in the 1960s when it was installed at the Houston Astrodome, giving it the name everyone came to know—AstroTurf. But newer turf technologies, like Dawson’s, have since replaced that first-version product, which he acknowledges was abrasive and unforgiving. GeoSurfaces, on the other hand, touts surface products designed by engineers and based on science, offering a vastly superior product to turf’s early days. “We were a bit ahead of the curve,” Dawson says. “Remember old school AstroTurf? This is what replaced that. This is what led to one of first bankruptcies of

$12 WRANGLERS Although GeoSurfaces still flies under the publicity radar in Baton Rouge, it is making quite the name for itself in the regional sports industry. It’s also attracted at least one high-profile local who now acts as an adviser. Paul Rainwater, a former chief of staff under Gov. Bobby Jindal and a well-known strategist, serves as vice chairman of UNASSUMING HOME: GeoSurfaces has become a major player in its industry, but, true to its roots, is headquartered in an the GeoSurfaces advisory unostentatious building off a gravel road in St. Gabriel. board, offering Dawson advice about the company’s fuback patio—but also the foundHe compares the business ture direction. The two met about er’s hands-on approach. model of GeoSurfaces to “somefive years ago through their chil“Charlie knows his projects like thing akin to Sam Walton of dren, who played sports together. the back of his hand, he knows Walmart,” and believes the comBoth had a mutual respect for his crew members, he knows his pany will only continue growing each other’s respective careers. managers,” says Rainwater. “The from here, especially now that it’s What Rainwater finds impresthing about him is he’s extremely broken into professional sports sive about GeoSurfaces is not just loyal to his people and his comwith the Patriots. the “phenomenal” products— munity. The dedication and level In fact, GeoSurfaces recently which he has had installed in his of energy, it’s impressive.” began opening up satellite offices

to handle work in other states. There’s one in New England to build off the Patriots job, as well as offices in North Carolina, Florida and Oklahoma. Plans are also in the works for offices in southern California and Texas. But don’t expect any of that to change Dawson, who Rainwater jokes is “so hands-on, he doesn’t own a (sports) jacket.” Despite heading a company projected to do nearly $100 million in revenue this year, Dawson still looks and dresses more like a baseball coach— which he once was—than a C-suite executive. But that’s who he is. And that person, as he has said, is not better than you. “If I ever have to wear a suit, I don’t want the job,” Dawson says with a straightforward smile. “I still wear my hat to every meeting, and I still wear my $12 Wranglers.” COURTESY GEOSPORT

AstroTurf. The old school nylon pads basically became obsolete almost overnight.”

The numbers are really about making people healthier and that’s really all that matters. As a data scientist, I work with numbers. And I use them to figure out the best way to serve our members. Jack Holloway Data Scientist

01MK6968 01/19 Blue Cross and Blue Shield of Louisiana is an independent licensee of the Blue Cross and Blue Shield Association and is incorporated as Louisiana Health Service & Indemnity Company.

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NEWS

LEGAL MATTERS: After defaulting on a loan, Vaughn Lane, owner of now-idle SMI Companies Global, successfully sued Hancock Whitney Bank; a lawsuit being closely watched by the legal and banking industries.

LEGAL

An oilfield services company’s recent $2 million judgement against Hancock Whitney is making the banking industry nervous. BY STEPHANIE RIEGEL IT’S NOT OFTEN that a borrower blames the bank for causing him to default on a loan. It’s even less common for a borrower to sue the bank in federal court—as a St. Mary Parish oilfield services company did in 2016—and win a hefty $2 million judgement. Throw in the fact that the defendant in the case is the venerable Hancock Whitney Bank—which was operating in Louisiana as Whitney Bank at the time of the loan—and you’ve got the story of a lender liability lawsuit that’s raising eyebrows in legal circles and making the banking industry nervous. “The issues in this case are of importance to the entire banking industry in the state,” reads a brief filed by the Louisiana Bankers Association with the U.S. Fifth Circuit Court of Appeals in support of Hancock Whitney. “The present action threatens … the stability of the industry.” The present action is a case involving the now-idle SMI 20

BUSINESS REPORT, February 26, 2019 | BusinessReport.com

Companies Global, which was based in Centerville in St. Mary Parish and specialized in fabricating heavy steel products for the energy and petrochemical industries. In 2015, Whitney issued a specialized $900,000 line of credit to SMI to help the company fulfill a $2 million contract with Halliburton Corp. for eight, 17,500-gallon oilfield storage tanks, worth some $256,000 each, court documents show. SMI and Whitney already had an established relationship; SMI had a $1.5 million operating line of credit dating back to 2012. So when SMI owner Vaughn Lane, a crusty Vietnam veteran, went to his longtime Whitney banker for the second line of credit, it wasn’t a terribly hard sell. Granted, SMI wasn’t in the best financial shape, a fact the bank was aware of at the time, according to court documents. But Lane had a good working relationship with Whitney. More importantly, the $900,000 loan was tied to

Halliburton’s creditworthiness, which was solid, not SMI’s financials, according to the trial judge’s ruling in the case. But almost immediately after Halliburton inked the deal with SMI, the Houston-based corporation put the project on hold for nearly 10 months. By the time it was ready to order the first tank in March 2016, SMI had nearly maxed out the $900,000 line of credit and had just one month before it had to pay off the loan in full. Lane met with his bankers and they agreed to extend the loan for 90 days—from April until July. Everyone knew it wasn’t enough time to complete the Halliburton project but it was better than nothing and—this is important—the bankers verbally agreed to work with Lane and told him they’d try to extend the line of credit. Throughout May and June, SMI ramped up production. By July, all eight tanks were in some form of production and two

TERRI FENSEL

Dangerous precedent? had been completed and delivered, for which SMI—and in turn Whitney—were paid $491,000. But time was running out on the loan maturity date and SMI still didn’t have enough cash to pay the balance. In the meantime, SMI had drawn down all the available funds from its original, $1.5 million line of credit, and that maturity date was also approaching in July. The company’s overall financial situation was bleak, however, made worse by the slump in the energy services sector due to the drop in oil prices. On July 3, both loans came due. According to court documents, Lane pleaded his case with his bankers, arguing that—at least as far as the $900,000 loan was concerned—the only way he could repay the balance was to complete the Halliburton job, which meant he needed another extension. Initially, his bankers gave him verbal assurances and started to work out a plan that would extend the credit and enable him to

pay it off as funds became available, according to Lane’s testimony during the trial. But after just a few weeks and without warning, Whitney turned the case over to its collections department and cut off all communication between Lane and his bankers in the commercial lending department. The plan they’d been trying to negotiate was off. As a result, SMI was unable to complete the Halliburton deal and was forced to permanently close its doors. Some 80 employees lost their jobs, though a group of them have since formed a new company, SMI International. In October 2016, Whitney sued SMI and Lane for the unpaid balance on the two loans plus interest and attorneys’ fees, which totaled more than $1.2 million. SMI countersued, alleging breach of contract, negligent misrepresentation, tortious interference with SMI’s business relationships and breach of duty to negotiate in good faith, as well as several other claims it would later drop. The case went to trial in September 2018. After three days of testimony, U.S. Magistrate Judge Patrick Hanna issued a split ruling that amounted to a major victory for SMI and a black eye for the bank. The judge found SMI liable for defaulting on the original, $1.5 million loan and ordered the company to pay the unpaid balance. But on the second, $900,000 loan, Hanna found the bank liable for breach of contract by “failing to fund the Halliburton project to completion.” In his ruling, the judge noted that the “brief, three-month extension” Whitney had granted SMI between April and July 2016 “made no sense whatsoever in the context since Halliburton had delayed the start of the project by 10 months. … The bank knew the tanks could not be completed by the new maturity date.” He also blamed the bank’s collection efforts for ruining SMI’s relationship with its customers, including Halliburton, which ultimately led to the company’s demise. Hanna gave credence in his ruling to a theory espoused at trial by Lane’s expert witness, Kentucky financial consultant

“No rational lender would ever assume such a broad obligation. … When the loan matured Whitney acted within its contractual rights to demand payment.” ATTORNEYS FOR HANCOCK WHITNEY BANK, in an appeals filing with the U.S. Fifth Circuit Court of Appeals

Tim Finn, who attempted to make sense of why the bank would apparently sabotage its own customer by calling a loan that was funding a job that—if completed—would enable the loan to be paid off. Finn theorized that SMI was the unfortunate victim of a strategic decision made by Whitney at the corporate level to move away from energy sector loans due to unfavorable market conditions at the time. “A corporate decision to cease lending to oil and gas services companies would explain the bank’s change in course,” Hanna wrote in his opinion, citing Finn. “However this change without any notice, evaluation or recognition of the Halliburton line of credit was a not a commercially reasonable standard of fair dealing and was a breach of contract …” Hannah determined Whitney’s actions were responsible for forcing Vaughn to idle SMI Global, the value of which he assessed at some $3.5 million. Thus, the $1.2 million SMI owed Whitney on the first loan was negated by the $3.5 million Whitney owed SMI for messing up on the second. The result was a more than $2 million judgment against the bank. Earlier this month, Whitney filed a lengthy appeal. In its appellate brief, Whitney’s attorneys argue that SMI was a customer in deep financial straits that defaulted on two nearly identical loans—both lines of credit on which had been extended, once each—and was maxed out. More specifically, the bank argues that Hanna made a couple of key errors in his ruling. One was in misinterpreting the terms of the $900,000 loan agreement, which Whitney says was never tied to completion of the Halliburton project. “Nowhere in the loan document does Whitney promise to fund SMI’s project through completion;

nor did Whitney agree to fund the Halliburton project in excess of $900,000,” the brief states. Whitney argues that Hanna— and Lane for that matter—interpreted a “prefatory purpose statement” as a binding loan term that obligated Whitney to fund the loan beyond its contractual maturity date, rendering the date meaningless. Why, Whitney argues, would the $900,000 loan have a maturity date at all if it was to remain open-ended until the storage tanks were all completed and delivered? “No rational lender would ever assume such a broad obligation,” Whitney’s brief states. “What if the Halliburton project was delayed for a year? Two years? Five years? Under the trial court’s judgement Loan 2’s maturity would have been repeatedly extended, perhaps indefinitely. … When the loan matured Whitney acted within its contractual rights to demand payment.” Whitney’s attorneys also argue that Hanna erred in holding Whitney liable for the verbal assurances and offers made to Lane by his Whitney bankers in the summer of 2016 that they would try to work with him. A 1989 state law requires any such communications must be agreed to in writing. As for Finn’s theory that SMI was an unfortunate victim of a change in Whitney’s corporate-level lending strategy, Whitney’s attorneys dismiss the notion as “speculative opinions” regarding “alleged ‘macro’ bank decisions.” Whitney is asking the Fifth Circuit to reverse the lower court’s decision. So what are the odds that it might? Chris Odinet, a Baton Rouge native and associate professor at the University of Oklahoma College of Law, says it’s hard to

predict. The Fifth Circuit is conservative, meaning it would tend to look closely at the wording in the original loan document and base its ruling off of the language in the contract. “Does that mean they side with the bank? I can’t say,” Odinet says. “But I think it would be more in line with their past rulings to look to the four corners of the loan contract rather than to exercise any judicial policy making—but you never know.” The Louisiana Banking Association isn’t taking any chances. On Feb. 19, the industry association filed a “friend of the court” brief in support of Whitney, arguing that the 1989 state law— the Louisiana Credit Agreement Statute—protects banks against claims not based on a written agreement. Until the law was passed, lender liability suits were common and were frequently based on alleged oral agreements and hand-shake deals, which “caused instability and had a chilling effect on economic growth,” the LBA brief reads. It continues: “The LCA Statute and the way it has been applied over the past 30 years have provided stability and certainty which has enabled banks operating in Louisiana to make loans and contribute to our economic growth. … The LCA Statute has provided a bright-line rule of when a valid credit agreement exists … a finding by this court that alternative theories of recovery are permissible based on an alleged oral agreement … would render the statute meaningless and undermine the protection it provides.” There’s no telling when the Fifth Circuit will rule. Sometimes it takes months, if not longer. But the LBA’s involvement speaks to a level of concern about the situation, and makes it worth watching from a legal and banking perspective, Odinet says. “The fact that the LBA is getting involved tells you something about their level of worry,” he says. “They’re worried the district court’s decision would get upheld and concerned about what that would mean for lenders more broadly in the Fifth Circuit states of Texas, Louisiana and Arkansas.” Daily-Report.com | BUSINESS REPORT, February 26, 2019

NEWS

INFRASTRUCTURE

SEWTEX AT ENGLISH WIKIPEDIA

BROKEN BRIDGE: Damage to the Sunshine Bridge, after a crane-mounted barge slammed into it, is estimated to cost $5 million to repair. The company responsible, Marquette Transportation, may pay as little as $1.5 million, leaving taxpayers to cover the rest of the bill.

They broke it, we pay for it While Marquette Transportation is responsible for the damage that closed the Sunshine Bridge, it’s Louisiana taxpayers who will cover most of the repair bill. BY ANNIE OURSO LANDRY AFTER A CRANE-MOUNTED barge slammed into the Sunshine Bridge on Oct. 12, shutting down the Mississippi River span for nearly two months, nearby communities that took an economic hit from the closure quickly learned two frustrating facts: 1) they stood little chance of legally recouping damages for their financial losses, and 2) they, and every other taxpayer in the state, would essentially be on the hook for the cost of repairs, estimated to be some $5 million. In part, that’s because in the days immediately after the accident, attorneys for the barge company involved, Marquette Transportation, raced to court, filing documents seeking to limit Marquette’s liability to $1.5 million, roughly the cost of the vessel. As for the remaining $3.5 million tab? Well, the expectation is the state bear that cost. 22

BUSINESS REPORT, February 26, 2019 | BusinessReport.com

As it turns out, this isn’t so unusual—though it is an extreme example. Accidents that damage state infrastructure happen “all the time,” says Louisiana Department of Transportation and Development Secretary Shawn Wilson, and oftentimes the company or individual responsible does not repay the full cost of repairs. “When we do find out who’s involved, we try to get reimbursed for what we can,” Wilson says. “We rarely get back everything.” A sampling of DOTD’s past legal cases with Marquette and other companies, obtained by Business Report, prove Wilson to be right (see sidebar), though it appears none are as egregious as the Sunshine Bridge incident. Moreover, some claims do get paid back in full, or at least close to it. Maritime accidents, such as

barge collisions with bridges, are often the most costly repairs for the state. But DOTD also has to deal with frequent damage to state highway infrastructure, such as collisions with guardrails, concrete barriers or signage. In many cases, the responsible party is nowhere to be found. It’s impossible to estimate, says Wilson, how much of DOTD’s annual budget is spent repairing damage not paid for by the responsible outside party. That’s because not only are these incidents so frequent but also the amount taxpayers have to cover varies. In East Baton Rouge Parish alone, there have been more than 400 damage claims filed since 1992, according to the DOTD legal department, some of which are still open. Highways officials and legal experts offer practical explanations as to why the state often does not

get paid back in full in the damage cases. Many companies, in defending their practice, cite depreciation as the reason for not having to pay the full cost of repairs for damage they’ve caused to the state’s infrastructure. Consequently, they’re willing to cover only what the piece of infrastructure cost at the time of the incident. Think of what happens if you wreck your car, Wilson says. Let’s say you’re driving a 2005 vehicle and total it. Your insurance won’t pay for the price of a new car, but it will pay what the 2005 car was worth at its depreciated value. LSU’s Paul M. Hebert Law Center Dean Thomas Galligan, who specializes in admiralty and tort law, says if a driver damages a guardrail that was 20 years old and the state has to repair it, it’s is now better off than having a 20-year-old rail.

Taxpayers left to cover the tab

Marquette Transportation, the company responsible for the barge that hit the Sunshine Bridge, filed court papers to limit its liability to $1.5 million, which is far from the total $5 million in repairs, leaving the state taxpayers on the hook for the remaining costs. This is not unusual, though it is an extreme example. In prior damage claims filed against Marquette on behalf of DOTD, none were paid in full. Here are a few examples of prior Marquette damage claims and those with other companies:

“If it’s a bridge, the state may have had to spend a lot of money in 15 years to upgrade the bridge, but now that it’s repaired they’ll have 30 years,” Galligan says. The idea is to make the structure whole again but not to enrich it. The Sunshine Bridge case is somewhat unique, though, in that the company is using the Limitation of Liability Act in its defense. The maritime law dates back to 1851 and was created to protect vessel owners. “It’s a special act that allows the owner of a vessel to limit liability to the post-accident value of the vessel as long as it doesn’t have privity or knowledge of whatever caused the damage,” Galligan says. In other words, high-ranking Marquette executives did not have knowledge of the faults that gave rise to the accident. With all the costs associated with the legal process, Wilson says, sometimes it ends up being cheaper for the state to settle. In the Sunshine Bridge case, it may be the best the state can do. “This is a little more extraordinary,” Wilson says. “It’s probably one of the most expensive cases the state has seen in modern time.”

MH SA

Marquette, 2014: I-20 Mississippi River bridge damage • Damage claim............................. $1.6 million • Amount collected..........................$385,000

Carline Companies, 2005: Bayou Grosse Tete bridge damage • Damage claim.................................. $12,500 • Amount collected............................ $11,750

Marquette, 2013: Sunshine Bridge fender damage • Damage claim.................................$2 million • Amount collected....................... $1.1 million

Ingram Barge Co., 1994: Unknown bridge damage* • Damage claim.................................. $51,500 • Amount collected............................ $38,400

Bertucci Contracting Company, 2011: Leo Kerner Bridge damage • Damage claim............................. $1.3 million • Amount collected..........................$975,000

SOURCE: Department of Transportation and Development

/ FF

IV AT RE

*Report does not clarify which bridge

Dupre Logistics , 2009: US-190 Morganza Spillway bridge rail damage • Damage claim.................................$44,500* • Amount collected............................ $30,300 *Bid for repair project was $32,000

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BUSINESS REPORTâ€™S

SMALL BUSINESS GUIDE 2019 INSIDE

Small Business Profiles How I Did It Student Entrepreneurs Resources for Business Owners

ANNE MILNECK Owner of Red Stick Spice Company

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BUSINESS REPORT’S

SMALL BUSINESS GUIDE 2019 34

CONTENTS 32 Small Business Profiles.......................................................................................... 34 Infographic: Small business in the Capital Region.......................................

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How I Did It.................................................................................................................. Boyce Clark: Responding to a sudden spike in product demand Eric Carnegie and Chad Hughes: Launching a new concept Galen Iverstine: Opening a brick-and-mortar location Anne Milneck: Revamping a company e-newsletter Chris Remson: Rebranding a firm after 20 years in business

40 YEA: Teaching the next generation of entrepreneurs.................................. 42 Getting down to business...................................................................................... 46 An entrepreneurial ecosystem: What’s available?......................................... 52 Infographic: Sizing up business in the Capital Region by industry........ 54 Business incentives.................................................................................................. 55 Spotlighting success: Capital Region Lantern Award winners................. 56 Beyond books: EBR Library offers free business resources....................

55 28

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2019 SMALL BUSINESS GUIDE

From our sponsors THE EAST BATON ROUGE Parish Library is committed to strengthening business, promoting workforce development and supporting entrepreneurship throughout the parish. We continue to enhance our technology services, databases and online resources to meet your needs. We have greatly increased the depth and breadth of the premium business resources offered freely via our website, ebrpl.com/DigitalLibrary—all you need is your library card. We’re conveniently open seven days a week at our 14 libraries, too. The Digital Library provides access to thousands of free employment training courses, educational assistance programs and business-related databases, as well as free online movies, eBooks, magazines, music, foreign language lessons, hobby courses, news, archives and more. We’re especially pleased to present the Library’s SMALL BUSINESS SERVICE to local business owners and entrepreneurs. This new service includes free programs, resources and tools to

help your business grow, and offers free one-on-one consultations with our business librarians. Contact them at smallbusiness@ebrpl.com. Business librarians can guide you in the use of Gale’s Small Business Builder, a step-by-step online planning tool for starting, managing and optimizing a business or nonprofit. The program’s intuitive dashboard walks users through five areas to develop a business plan focused on long-term success: Entrepreneur Profile; Business Ideation; BreakEven Analysis; Business Plans; and Financial Projections. This is just one of a number of business tools available FREE through EBRPL’s Digital Library, including Lynda.com, Mergent Intellect, ReferenceUSA, LexisNexis, Small Business Resource Center (including business plans and legal forms) and Sage Business Researcher. To view all library business resources, visit ebrpl.com/Business. The Library is also upgrading its physical infrastructure with major

renovations underway for the Greenwell Springs Road and Jones Creek Regional branches and the completion of the replacement River Center Branch Library. Each branch will be modern, high-tech and energy efficient, and serve as a center for robust community and government activities and meetings, planning, learning and discovery. These construction projects are fully funded on the pay-as-you-go plan with no bonds or indebtedness, thanks to public support for the Library’s 10-year dedicated property tax. The support you give YOUR LIBRARY makes it possible for us to continue to renovate our older branches and bring them up to date, build new facilities, broaden our services and selections, offer more meeting and study spaces, and provide additional high-tech computers and software, free Wi-Fi and much more.

ON DECEMBER 3, 1910, eight visionary citizens chartered First American Bank and Trust. The bank was originally known as Bank of Vacherie. By 1978, the area served by the bank had grown far beyond the boundaries of the town from which its name was derived, and the name was changed to First American Bank and Trust. First American Bank and Trust has played an integral part in the growth and prosperity of the communities we serve by providing the highest quality of financial services to citizens throughout Southeast Louisiana for over 100 years. Today, First American Bank has total assets of $902 million. First American Bank has always been a lender that provides commercial, residential, and consumer loans. Additionally, First American Bank provides a large number of construction loans both to individuals and contractors. After construction is complete, a large

percentage of those residential loans are maintained in our loan portfolio, providing our customers with exceptional service from local employees. In 2018, First American Bank originated $198 million in loans for its customers. Besides being a great source of loan funding, First American Bank maintains a strong capital base for our customers to deposit their funds. From online bill pay to mobile check deposits, First American Bank offers the latest in banking technology to provide the best possible services for our customers. We are here to assist you with your construction loan, home purchase, business loan, or any financial service you need while providing you with the latest in banking technology from knowledgeable and customer friendly employees. At First American Bank, we are local, we are easy to work with and most importantly

we know how to get things done right. First American Bank is a place where principles, fairness and people still matter. Decisions are still made locally—by local people who care. In addition to a full range of banking services, First American also offers comprehensive financial products and services for investing in a brighter future for its customers. A strong, independent community bank, First American Bank and Trust is closely tied to the businesses, organizations and citizens in each community it serves. Our board of directors is made up of people from our local communities who are visionary leaders committed to making our region stronger, while retaining the traditions that make it special.

Spencer Watts

Library Director East Baton Rouge Parish Library

Ronald J. Falgoust

President & CEO First American Bank and Trust

Daily-Report.com | BUSINESS REPORT, February 26, 2019

2019 SMALL BUSINESS GUIDE

Small business in the Capital Region

WITH A DIVERSE portfolio of more than 60,000 small businesses, the nine-parish Capital Region continues to be a major driver of job creation and entrepreneurship. With a full-time civilian workforce more than 270,000, the region is arguably one of Louisiana’s most important centers for industrial construction, manufacturing, education and government.

CAPITAL REGION POPULATION GROWTH RATE

2010

2017

802,484

834,159

BUSINESS OWNERSHIP

49.7% 40.5% MALE-OWNED

9.8%

+3.9%

FEMALE-OWNED

EQUALLY MALE/FEMALE-OWNED

1000

POPULATION (in thousands)

900 800 700 600 500

48.5%

47.6%

NON-MINORITY OWNED

MINORITY OWNED

400 300 200 100 0 1960

1970

1980

1990

2000

2010*

2017

2030

230,058 285,167 494,151 528,264 602,894 802,484 834,159 954,850 (PROJECTED)

* In 2003, the Baton Rouge MSA was expanded to its current size with the addition of five parishes—East Feliciana, Iberville, Pointe Coupee, St. Helena and West Feliciana— in addition East Baton Rouge, West Baton Rouge, Livingston and Ascension parishes. This nine-parish region had a population of 705,973 in 2000.

BUSINESS REPORT, February 26, 2019 | BusinessReport.com

3.9% EQUALLY NON-MINORITY AND MINORITY-OWNED

SMALL BUSINESS

98.8% 44.3K 81.9%

OF CAPITAL REGION BUSINESSES ARE SMALL, WITH 499 OR FEWER EMPLOYEES

2-9 EMPLOYEES SMALL BUSINESSES OPERATING IN THE CAPITAL REGION IN 2017, A 28.4% INCREASE SINCE 2012

31,286 (70.5%) 7,517 (16.9%)

10-99 EMPLOYEES

100-499 EMPLOYEES OF SMALL BUSINESSES HAVE FEWER THAN 10 EMPLOYEES

5,045 (11.4%)

SELF-EMPLOYED

500+ EMPLOYEES

489 (1.1%) 50 (0.1%)

REGIONAL ECONOMY 82% of the local industry sectors experienced job growth over the past year, led by the construction, and education and health services sectors

2018 JOB GROWTH BY INDUSTRY

JOB DISTRIBUTION

Construction Other services, 4% Manufacturing, 7%

Education and health services, 13%

Financial activities, 5% Information, 1% Government, 18%

Education and health services

Other services

2.4%

Financial services Trade, transportation and utilities, 17%

Construction, 13%

7.6%

Financial activities, 5%

Professional and business services, 11%

2.1% 1.5% 0.7%

Professional and business services

Manufacturing

SOURCES: U.S. Census, Baton Rouge Area Chamber, youreconomy.org, Bureau of Labor Statistics and Louisiana Parish Population Projection Series 2010-2030

Daily-Report.com | BUSINESS REPORT, February 26, 2019

2019 SMALL BUSINESS GUIDE

A LL M S

S S E N I BUS O FILE

Prescription for growth

Finding the sweet spot COUNTERSPACE BR REFLECTING ON THE rapid growth of her popular baking business, Counterspace BR, over the last year, Sarah Joy Hays (pictured above) turns to Drake lyrics to explain. “Zero to 100, real quick,” she says with a laugh. Months after Hays opened her first brick-and-mortar location at White Star Market in June, she announced plans for a second location on Perkins Road, expected to open in February. And the second bakery will be an expanded one, featuring not only Hays’ sweet treats, but also coffee from New Orleans-based Mojo Coffee and grab-and-go lunches from MJ’s Cafe. “I’m excited to get it opened and make it a spot for food creatives to get to together,” says Hays. Like many small businesses, Counterspace BR started as a hobby. Hays, who returned to Baton Rouge in 2015 after working in Washington D.C., began selling her desserts at Mid City Makers Market and local coffee shops, where she amassed a loyal following. Hays prides Counterspace BR on being “simple, fun and affordable.” The focus is to offer something for everyone, to be part of people’s celebrations—a part of the community. “It’s been fulfilling,” Hays says. “On the days when it’s hardest and doubts creep in, it’s almost magical. Those are the days I get a message from a mom thanking me for her kid’s birthday cake or someone tells me my king cake is the best they’ve ever had. At the end of the day, I know this is special.” —Annie Ourso Landry

BUSINESS REPORT, February 26, 2019 | BusinessReport.com

BROTHERS AND ENTREPRENEURS Orlando and Kyle Palmer (pictured below, left to right) are already moving forward with plans to expand Parker’s Pharmacy, the neighborhood pharmacy they opened last year on Florida Boulevard near the Broadmoor Village Shopping Center. After doubling the number of their employees from four to eight over the first year in business, the Palmers are in the midst of planning a second location near South Sherwood Forest and Coursey boulevards, as well as two additional, undisclosed locations slated to open later this year. They aim to distinguish themselves from their big-box competitors by remembering customers’ names and offering free deliveries, among other services. “People ask us, ‘Are you always going to open up next to a CVS or Walgreen’s?’” Orlando says. “My answer is, ‘yes, every time.’” The Palmers also hope to expand their reach within the community. Over the holiday season, they launched a nonprofit called Parker’s Care Foundation, which raised some $1,500 that was distributed to customers who couldn’t afford their prescription copays. Kyle, who handles marketing for the pharmacy, says he’s constantly looking for ways to transcend generational barriers with their approximately 3,500 patients. “When you exceed your biggest goals, it’s like, ‘now what?’” Kyle says. “Now, it’s maintaining a high level of service—but planning for a large amount of growth.” —Catie Burkes

BRIAN BAIAMONTE

COLLIN RICHIE

PARKER’S PHARMACY

Diversification station MORRISON COMPANIES DIVERSIFICATION HAS ALWAYS been key for Shane Morrison (pictured below), founder and CEO of Shane Morrison Companies. Since launching a movie theater business, he’s parlayed early projects into other real estate opportunities. “What led me into real estate development was that theaters were anchors for development,” Morrison says. After adopting that mindset in the early 2000s, Morrison began developing various properties, including Starbucks, Lowe’s, Walmart and early Raising Cane’s locations. Morrison then entered the restaurant management business around 2008—when the real estate market crumbled—by leveraging his stake in Santa Fe Cattle Company restaurants. Among his holdings today, Morrison is the largest WalkOn’s franchisee with the rights to 30 restaurants across five states. Diversifying not only allowed Morrison to vertically integrate his company so that he could own and operate all of his real estate, it also meant he could keep his employees during the time of economic uncertainty. Today, Morrison Companies and its numerous affiliates focus on all three primary business interests: real estate, restaurants and movie theaters. One of his ongoing projects, however, takes him back to his roots. Through his brand, Celebrity Theaters, Morrison—who had an after-school job taking tickets at the Bon Marché Twin Cinema in 1989—is renovating his theater at Jones Creek Road and Coursey Boulevard into a family entertainment complex that will include arcade games, bowling and two large screens, along with luxury reclining leather stadium seats. COLLIN RICHIE

—Catie Burkes

Growing comfortably IN THE ROUGHLY five years since Woolly Threads was launched in a Baton Rouge apartment, the company has significantly expanded its product line, established a brick-and-mortar store and become a multimillion-dollar operation in the process. Inspired by a terry-cloth sweatshirt found in a New England thrift store, LSU grad Natalie John (pictured above) and Mason Dupré started the company in Dupré’s apartment, enlisting the help of his roommates to fill orders—the first of which came from an LSU sorority in the fall of 2014. By the following spring, the company had inked deals with multiple universities in the region. “I knew it was going to be popular with sororities, but I was surprised how quickly we expanded from Greek organizations to colleges,” says John, who has since taken full ownership of the company. Today, Woolly Threads offers signature sweaters for more than 350 colleges, sororities and fraternities nationwide. The Woolies—crafted from a terry-cloth-style fabric made to feel like a sweatshirt you’ve worn for years—remain the heart and soul of the company, but it also sells quarter-zip sweatshirts, hoodies and scrunchies. In November, the company moved into a roughly 1,700-square-foot space along Government Street in Mid City, next to Pop Shop Records. The space serves as the company’s headquarters and includes a small showroom. Moving forward, John is working to bolster online sales and further expand the company’s customer base beyond college campuses. She also plans to begin selling the company’s signature sweaters for high schools.

BRIAN BAIAMONTE

WOOLLY THREADS

—Holly Duchmann

Daily-Report.com | BUSINESS REPORT, February 26, 2019

2019 SMALL BUSINESS GUIDE

S S E N I S U B PR

O FILE

BRIAN BAIAMONTE

THE SUV WITH THE HEART OF A JAGUAR

A LL SM

2019 JAGUAR F-PACE

Beyond the surface STONE AND CLOTH

While it has all of the traits of an SUV, the Jaguar F-PACE was created from the DNA of a Jaguar sports car — with up to 380 horsepower and cat-like agility. There’s no mistaking the F-PACE for anything but a Jaguar. Visit your Jaguar Retailer to experience the 2019 F-PACE. Paretti Jaguar Baton Rouge 13934 Airline Hwy. | Baton Rouge, LA 225-756-5247 www.jaguarbatonrouge.com THE ART OF PERFORMANCE Vehicle shown: 2019 Jaguar F-PACE S with optional equipment. See your local authorized Jaguar Retailer for details. Visit JAGUARUSA.COM, call 1.800.4.JAGUAR or visit your local Jaguar Retailer. © 2018 Jaguar Land Rover North America, LLC

BUSINESS REPORT, February 26, 2019 | BusinessReport.com

YOU MIGHT CALL Kris Klar a cautious opportunist. Though he had ambitions to work for himself after graduating from LSU in 2002, Klar (pictured above) wasn’t settled on a business concept and opted to start his professional career in marketing for a Fortune 500 company. All the while, he recalls “reading everything I could get my hands on, researching business, constantly looking for the industry I wanted to get into.” He eventually began working in residential and commercial construction, focused on granite and marble installation. And then opportunity knocked. After coming across a Florida countertop company that was going out of business, Klar bought it and launched STONE in 2009. “I’ve always had a very positive outlook and look for good opportunities in everything,” says Klar. After about five years of establishing his business as a Baton Rouge area leader for marble, granite and quartz countertops, Klar expanded his offerings to include flooring. In the fall of 2017, he further diversified the product line, launching a custom furniture division called CLOTH. This year, Klar is undertaking yet another new venture. In December, he bought the Jefferson Highway property that’s home to the Dyson House Listening Room with plans to develop a 15,000-square-foot shopping center on the site. STONE and CLOTH will anchor the center, which Klar hopes to have completed by the end of next year. “I truly have fun doing this work, whether it’s running the flooring and countertop business or investing in real estate,” Klar says. “It’s all fun.” —Holly Duchmann

How I did it BOYCE CLARK Founder of Lubricity Labs

THE CHALLENGE: Responding to a sudden spike in product demand THE NEED: When a local TV segment on Lubricity Labs went viral in 2017, thousands of orders for the startup’s hair products began pouring in. Boyce Clark’s small business was featured across the nation on nightly news shows and lifestyle websites. The only problem was Clark had just 50 bottles of product on hand. THE DECISION: “We could not afford to miss this opportunity to rapidly grow our business,” says Clark, who immediatley began hiring additonal employees and purchasing equipment to meet the sudden demand. His team let customers know Lubricity Labs was a small startup and asked them to stick with the company through the growing pains. HOW I DID IT: • Clark quickly got to work, making product 24/7 to fill the orders. • To keep customers updated on social media, Lubricity Labs posted daily photos of Clark—a geochemist by trade—producing and shipping the product.

THE PAYOFF: While the company did have some order cancellations, the vast majority of customers stuck with Lubricity Labs through the process. To this day, the business has a “fiercely loyal customer family” that continues to grow, Clark says. —Annie Ourso Landry

BRIAN BAIAMONTE

• Shipments included handwritten notes, thanking customers for their patience and support, with a discount code for future purchases. “We made the customer part of our journey by communicating openly with them along the way,” Clark says.

ERIC CARNEGIE AND CHAD HUGHES Restauranteurs

THE CHALLENGE: Launching a new concept THE NEED: When Crispy Catch near the Perkins Road overpass closed in early 2018, the building became available for lease and its owners reached out to Eric Carnegie and Chad Hughes (pictured left to right), who have ownership stakes in several local establishments, including nearby Ivar’s and Kalurah Street Grill. They were interested but wanted to come up with a new concept. THE DECISION: After gathering input from local residents, they “felt the area needed something a little more kid friendly,” Carnegie says, as there are already several nearby bars. HOW THEY DID IT: • One day while visiting the building, they “stumbled upon gold” when they realized the structure could support a second-story outdoor rooftop. • Carnegie and Hughes then began the process of renovating and expanding the building, designing the restaurant and crafting a menu.

DON KADAIR

• In December, they announced plans for a family friendly rooftop restaurant and bar called Bumsteers in the 1950s-era building, which was originally a gas station before it housed a Kean’s Fine Dry Cleaning location and later, Crispy Catch. THE PAYOFF: While Bumsteers hasn’t opened just yet, as of late February, Carnegie says everything is turning out just as they envisioned. Opening a new concept is always a challenge, he adds, but it’s coming together. “It was like it was meant to be.” —Annie Ourso Landry

Daily-Report.com | BUSINESS REPORT, February 26, 2019

2019 SMALL BUSINESS GUIDE

GALEN IVERSTINE Owner of Iverstine Family Farms

THE CHALLENGE: Opening a brick-and-mortar location THE NEED: The size of Galen Iverstine’s family farm in Kentwood could support business growth but he had outgrown resale outlets such as the Red Stick Farmers Market, where he had been a vendor for years. He wanted to expand his reach in the Baton Rouge area without reducing profit margins in the wholesale market. THE DECISION: With an expanded product line, Iverstine opened his full-service butcher shop in 2016 in the heart of Baton Rouge, about two years after he purchased land on Perkins Road for the store and began planning for it. HOW I DID IT: • A local realtor helped Iverstine find the perfect location for his business. He decided to keep the physical footprint small to drive down startup and overhead costs. • “We bootstrapped it as much as we could by doing as much of the work ourselves that was allowed,” Iverstine says. • The most important part, though, was building a strong team dedicated to the mission of the business and values of great customer service, he adds.

BRIAN BAIAMONTE

THE PAYOFF: After two years in business, Iverstine has met his initial projections. The business model has also allowed Iverstine to pursue additional opportunities for growth, including the recent launch of a home delivery subscription service and plans to expand wholesale products to other retailers. —Annie Ourso Landry

ANNE MILNECK Owner of Red Stick Spice Company

THE CHALLENGE: Revamping a company e-newsletter THE NEED: Anne Milneck wanted to broaden her customer base as well as increase organic consumer engagement. THE DECISION: With 3,500 engaged subscribers, Red Stick Spice Company’s email list already proved a valuable asset to the business. But when Milneck took over the company in 2012, she believed that to bring it to the next level, she’d need to make several critical improvements to the existing e-newsletter. HOW I DID IT: • Milneck enlisted the help of her husband, Greg, founder and president of local production studio Digital FX, to completely redesign the e-newsletter and add a sign-up option to the website. • She transformed the e-newsletter into a platform for innovative recipes after noticing that’s what most customers seemed interested in. “That answered the question of, ‘What do I do with your products?,’” says Milneck, who is also a chef. • Though she began outsourcing management of the e-newsletter to Gatorworks in late 2018, Milneck still maintains an active role with creating its content, much of which she bases upon the analytics Gatorworks tracks.

DON KADAIR

THE PAYOFF: Seven years later, the Red Stick Spice Company e-newsletter has some 13,000 organic and engaged subscribers—a 270% increase. —Catie Burkes

BUSINESS REPORT, February 26, 2019 | BusinessReport.com

CHRIS REMSON Principal, RHH Architects

THE CHALLENGE: Rebranding Remson | Haley | Herpin Architects after 20 years in business THE NEED: The firm wanted to continue attracting more clients working on larger-scale projects by giving the brand a more “corporate feel,” says Chris Remson. THE DECISION: Rebranding to a shorter name and more recognizable logo better represented all 15 of the firm’s employees, reflecting its team-oriented nature as well as its growth over the years. HOW I DID IT: • About two years ago, the firm hired a consultant who forced them to revisit every aspect of their business, Remson says. Unsatisfied and frazzled, the firm dropped the consultant, let the dust settle and determined exactly what they wanted out of a rebrand: presenting themselves as a larger, people-oriented company. • The firm then hired a new consultant, SASSO Agency, with a detailed list outlining their findings from the previous consultant. They worked closely together for nine months, regularly soliciting feedback from employees, clients and the professionals at SASSO, who changed the company’s name and logo in January.

FILE PHOTO

• RHH now lets SASSO handle all of its public relations and educate them on how to make the most out of their new brand. THE PAYOFF: The brand overhaul has already attracted some new clients, Remson says. “People are acknowledging it’s not just a new logo, but a new attitude,” he says. “They treat us as though we’re going through a major change, and we’ve gotten exposure from it.” —Catie Burkes

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Daily-Report.com | BUSINESS REPORT, February 26, 2019

DON KADAIR

2019 SMALL BUSINESS GUIDE

Beyond books

TAKE IT WHERE YOU FIND IT: Laurence Williams, a job development leader for Goodwill Industries in Baton Rouge, uses the free Reference USA tool at the Main Library to find jobs for individuals with disabilities or other barriers to employment.

The East Baton Rouge Parish Library offers a number of free resources for small business owners, entrepreneurs and nonprofits. BY ANNIE OURSO LANDRY WHEN TONI PHILLIPS launched a fitness program for seniors in 2017, she knew she would need legal assistance, especially for a business venture that involves potential injury and liability risks. But, as a budding business owner, Phillips could not afford an attorney. So she turned to her local library for assistance instead. The East Baton Rouge Library System offers several free business resources geared toward entrepreneurs like Phillips, including programs such as the Gale Small Business Builder, Gale Small Business Resource Center and Reference USA for marketing research. 40

BUSINESS REPORT, February 26, 2019 | BusinessReport.com

Phillips used Gale LegalForms for the documentation she would need to ensure her senior fitness program—which is called One Up and helps seniors prevent falls— is protected. “As a small business owner, the library’s resources are incredible,” Phillips says. “These are things I could never find on my own, let alone afford if I tried to purchase them. Resources like a library support system, demographic data, tools to develop marketing and a business plan—anything a small business needs to start up, they have it.” And it’s not just business owners who can benefit from the library programs.

LIBRARY BUSINESS RESOURCES: Gale Small Business Builder: An interactive, step-by-step online planning tool for starting, managing and optimizing a business, with an intuitive dashboard that walks users through five areas of exploration to develop a business plan. Gale Small Business Resource Center: A database of detailed information for starting and operating a business, covering everything from accounting and human resources to management, marketing and taxes. Reference USA: A source of area business and residential information that helps users find jobs, research local employers, develop marketing and small business plans and locate specific people or demographics. Merchant Intellect: Similar to Reference USA but it offers data from a different provider. Gale LegalForms: A collection of commonly used legal documents, covering topics such as standard leases, bills of sale, taxes and more. Small Business Reference Center: Offers access to small business reference books, as well as business tools, videos and advice.

Laurence Williams, for instance, who is a job development leader for Goodwill Industries in Baton Rouge, uses the Reference USA tool to find jobs for individuals with disabilities or other barriers to employment. Reference USA is

a database of business and residential information for research, marketing and job searching. “My job is to go out and meet business owners to see if they’re interested in hiring people with disabilities or

Issue Date: 2-26-19 Ad proof #6

• Please respond by e-mail or fax with your approval or minor revisions.

AMY HOLCOMB

re-entry individuals,” Williams says. “I use Reference USA to find certain jobs that match up with their skills or interests.” The cornerstone of the library’s business resource offerings, though, is the Gale Small Business Builder, says library Reference Services Coordinator Andrew Tadman. The program provides a step-bystep, interactive business planning tool. “The best part about it is that it breaks down the business plan into small sections,” Tadman says. “Fill in the blanks, and when it all comes together, you’ve got a real, professional looking business plan.” The Gale Small Business Resource Center works in tandem with the small business builder program, Tadman adds. The resource center provides detailed information to assist users as they develop their business plans. Not everyone realizes, however, what the library has to offer in terms of small business resources, and people are often pleasantly surprised to learn their local library conveniently provides such programs like Gale—and at no cost. “People are really blown away by it,” says Assistant Library Director Mary Stein. “Some think the library is just storytime and homework help, but we have a lot to offer grownups and businesses here.”

• ADsays WILLthe RUN AS ISfree unless approval or final revisions WORKING IT OUT: Toni Phillips (pictured at right) various business assistance resources she used at the Main Library to help are received bynever the close of my business today. launch her One Up senior fitness business were•“things I could find on own, let alone afford if I tried to purchase them.” Additional revisions must be requested and may be subject to production fees. Carefully check this ad for: CORRECT ADDRESS • CORRECT PHONE NUMBER • ANY TYPOS This ad design © Louisiana Business, Inc. 2019. All rights reserved. Phone 225-928-1700 • Fax 225-926-1329

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Secretary of State Kyle Ardoin Daily-Report.com | BUSINESS REPORT, February 26, 2019

COLLIN RICHIE

2019 SMALL BUSINESS GUIDE

STUDENTS WHO MEAN BUSINESS: The inaugural Young Entrepreneurs Academy of Baton Rouge featured a class of 26 area students who attend weekly classes at LSU’s E.J. Ourso College of Business.

Meet the next generation of Capital Region entrepreneurs BY CAITIE BURKES 42

BUSINESS REPORT, February 26, 2019 | BusinessReport.com

IN ITS FIRST year, the Young Entrepreneurs Academy of Baton Rouge spurred 15 registered businesses from students representing various Capital Region schools. The program—brought to life last year by former Starmount Life Insurance President Deborah Sternberg—allows a select group of high school students to generate business ideas, write business plans, pitch to a panel of investors and launch their own startups. Here’s what 18 members of its first class had to say about their experiences with the fivemonth program, which will be offered again later this year. Students interested in participating in the fall program can get complete details and apply online at yeabr.org/apply.

Mary Elizabeth Barrow, 18 West Feliciana High School

Episcopal School of Baton Rouge

Abhay Basireddy, 15

Akshay Basireddy, 13

MOST VALUABLE LESSON LEARNED: While this process has been extremely grueling, it has also given me the opportunity to see real fruition from long hours of hard work.

MOST VALUABLE LESSON LEARNED: Investors are looking at you as a deciding factor more than your business.

MOST VALUABLE LESSON LEARNED: With a little dream and a lot of effort, you can make the impossible easy.

ENTREPRENEURIAL DREAM: Become a knowledgeable CEO and support myself enough to be able to donate to my favorite charity.

ENTREPRENEURIAL DREAM: To evolve from an eighth grader to an eighth grader who can do anything he sets out to achieve.

YEA BUSINESS IDEA: Native Bash, an app that teaches native culture and customs, as well as slang and idiomatic expressions, to people learning a new language.

YEA BUSINESS IDEA: Instabrush, a toothbrush head that attaches to toothpaste.

ENTREPRENEURIAL DREAM: Pair my entrepreneurial knowledge with engineering knowledge to create innovative solutions to today’s problems, accessible to the global community. YEA BUSINESS IDEA: BikeStream, an eco-friendly colored smoke emitted from bicycles to alert motorists of their presence.

Chelsea Buckley, 16

Channing Hall, 16

Episcopal School of Baton Rouge

Jack Hosford, 18

Cristo Rey Baton Rouge Franciscan High School

Baton Rouge Magnet High School

West Feliciana High School

MOST VALUABLE LESSON LEARNED: How to take your passion and apply dedication and hard work to your dream.

MOST VALUABLE LESSON LEARNED: It’s okay to ask for help when running a business.

MOST VALUABLE LESSON LEARNED: Work together and plan ahead.

ENTREPRENEURIAL DREAM: Own an OB/GYN practice.

ENTREPRENEURIAL DREAM: When people are looking for a product, they choose us (E.As.E).

ENTREPRENEURIAL DREAM: Own my own successful business. YEA BUSINESS IDEA: YouCube, a quiet, customizable fidget cube for grade school-aged students with ADD and ADHD. Co-developed with Gabby Sylvester.

YEA BUSINESS IDEA: Backstage, an app allowing community theater users to communicate and easily share information before and during productions.

YEA BUSINESS IDEA: E.As.E, a retro, big-screen tabletop arcade that allows multiple players to play their favorite video games. Co-developed with Lilly Ray.

Daily-Report.com | BUSINESS REPORT, February 26, 2019

2019 SMALL BUSINESS GUIDE

Tyshawn Howard, 18

Sarah Israel, 14

Lois Leyerle, 15

MOST VALUABLE LESSON LEARNED: It’s okay to mess up at times, and always take your time.

MOST VALUABLE LESSON LEARNED: So much more goes into starting a business than just having a good product—all the planning, risks and rewards that come with being an entrepreneur.

MOST VALUABLE LESSON LEARNED: Even though the work is tedious, difficult and seemingly never-ending, you have to push through and complete it all to grow yourself and your company.

ENTREPRENEURIAL DREAM: To one day see my grooming bags on lots of cages at the livestock show.

ENTREPRENEURIAL DREAM: Being successful by completing specific tasks I’ve set for myself, as well as being healthy, kind and an inspiration to those around me.

Southern University Lab School

ENTREPRENEURIAL DREAM: Have one of the fastest-growing establishments this world has ever seen and be one of the best entrepreneurs in the world. YEA BUSINESS IDEA: Never Alz Alone, a watch that notifies caregivers of Alzheimer’s patients when their loved one has left a secure area. Co-developed with Brea Miles.

Central Private School

YEA BUSINESS IDEA: Triple-S Show Supplies, a fully stocked online shop for livestock show products, including ready-made grooming kits.

Homeschooled

YEA BUSINESS IDEA: Radiant Face, an environmentally friendly skin care company that sells a coffee-infused, chocolate-scented face scrub line.

YE A T IGH PITCH N ER WINN

West Feliciana High School

Lilly Ray, 18

Episcopal School of Baton Rouge

Charlie Roth, 16

Condoleezza Semien, 13

MOST VALUABLE LESSON LEARNED: Trying to do things by yourself all the time isn’t necessarily the best option. I’ve learned how to deal with many personalities and take constructive criticism.

MOST VALUABLE LESSON LEARNED: The importance of building an extensive network of people who are willing to guide you.

MOST VALUABLE LESSON LEARNED: Focusing on one piece of material at a time rather than trying to multitask, and how to manage my time more efficiently.

ENTREPRENEURIAL DREAM: Run my own company and be as successful as I can. YEA BUSINESS IDEA: E.As.E, a retro, big-screen tabletop arcade that allows multiple players to play their favorite video games. Co-developed with Jack Hosford.

BUSINESS REPORT, February 26, 2019 | BusinessReport.com

ENTREPRENEURIAL DREAM: Experience success in business and pay it forward by sharing my knowledge and expertise— maybe even to future students of this class. YEA BUSINESS IDEA: Reaction Relief, a reversible cooling and heating pack for injured athletes that doesn’t require a microwave or freezer.

Westdale Middle School

ENTREPRENEURIAL DREAM: Despite everyday struggles, I want my customers to feel that they can be helped and have a good night’s sleep. When someone sees my company name, they will also recognize a brand that represents people who want to make a difference to the general public that they serve. YEA BUSINESS IDEA: Beluga Bliss, aromatherapy-filled pillows to assist people with depression and chronic illnesses with going to sleep.

Carsen Manuel, 15

Brea Miles, 18

Zoe Patton, 18

University Laboratory School

Lee Magnet High School

University Laboratory School

MOST VALUABLE LESSON LEARNED: Listen to people who have had first-hand experience with creating small businesses and expand upon them.

MOST VALUABLE LESSON LEARNED: Creating a business isn’t as easy as Google says. It takes a lot of patience and you have to learn to grow from your losses.

MOST VALUABLE LESSON LEARNED: My business can’t depend on me alone. I need other players to execute and contribute to my business because nobody gets to the top of the mountain by themselves.

ENTREPRENEURIAL DREAM: Build a successful architectural firm in the not-too-distant future, and somehow tie my newly developed application into my firm.

ENTREPRENEURIAL DREAM: Get my name out there, actually help people with my product and make a difference; letting my actions speak volumes.

ENTREPRENEURIAL DREAM: Reach as many teenagers in foster care as possible through peer tutoring and mentoring with my nonprofit organization, Ohana Hub.

YEA BUSINESS IDEA: Archi-Self, an app that allows users who are building or remodeling a home to design layouts, drag and drop different features and amenities, and communicate with architects and designers.

YEA BUSINESS IDEA: Never Alz Alone, a watch that notifies caregivers of Alzheimer’s patients when their loved one has left a secure area. Co-developed with Tyshawn Howard.

YEA BUSINESS IDEA: Ohana Hub, a nonprofit peer tutoring and mentoring program aimed for local foster youth.

Gabby Sylvester, 16

Roland Toups, 16

Trevor Turner, 15

MOST VALUABLE LESSON LEARNED: Always yield advice and help from people more experienced than you to get a different perspective. Humble yourself.

MOST VALUABLE LESSON LEARNED: It takes a lot of work to harness your entrepreneurial spirit and turn it into a business.

MOST VALUABLE LESSON LEARNED: How to positively respond to adversity.

Baton Rouge Magnet High School

ENTREPRENEURIAL DREAM: After officially launching YouCube, I’d ultimately like to open up a family entertainment center as a family business. YEA BUSINESS IDEA: YouCube, a quiet, customizable fidget cube for grade school-aged students with ADD and ADHD. Co-developed with Chelsea Buckley.

Catholic High School

ENTREPRENEURIAL DREAM: Make a profitable company with enough influence to help solve the world’s problems, such as cleaning out polluted oceans and helping underdeveloped nations. YEA BUSINESS IDEA: Multi-Vue, a photography company that specializes in using drones to market landscaping and real estate projects.

Catholic High School

ENTREPRENEURIAL DREAM: Forming a company that uses biomedical engineering to create better health care treatment for people. YEA BUSINESS IDEA: DormMenity, a storage and delivery service for college move-in days.

Daily-Report.com | BUSINESS REPORT, February 26, 2019

2019 SMALL BUSINESS GUIDE

Getting down to business Everything you need to know about starting a company in Louisiana.

1. CHOOSE A STRUCTURE

One of the first steps in forming any new business is to determine the type of business structure you will use. There are several structures to choose from, including sole proprietorship, partnership, corporation, limited liability company and limited liability partnership. Each has advantages and disadvantages as well as tax consequences. You may wish to consult a tax practitioner, accountant, attorney or other resource. To operate in Louisiana, register as one of the following: • Individual or sole proprietorship: A business where only you, or your spouse, own the business, even though you may have employees. • Partnership: A business where two or more people own the business jointly. • Corporation: A business treated by law as an entity. It has a life separate from its owners or stockholders. Many corporations begin as sole proprietorships or partnerships. • Limited liability company: An entity that is an unincorporated association having one or more members organized and filing articles with the secretary of state. It is designed to provide the limited liability features of a corporation and the tax efficiencies and operational flexibility of a partnership. • Foreign corporation: A corporation organized outside the state may obtain a certificate of authority in Louisiana by filing an application with the secretary of state’s corporations section and by appointing a registered agent to accept service of process.

Coordinating and Development Corp. What: Publishes a business plan guide. Phone: 318-632-2022 Web: cdconline.org Dixie Business Center What: Offers free counseling and business plan guides. Phone: 225-655-0809 Web: dixiebusinesscenter.org Louisiana Economic Development What: Publishes a resource guide. Phone: 225-342-3000 Web: opportunitylouisiana.com LSBDC at Southern University Baton Rouge What: Publishes a business plan guide. Phone: 225-771-2891 Web: lsbdc.org/subr/ LSU’s Stephenson Entrepreneurship Institute What: Offers business plan guide and management consultation. Phone: 225-578-0313 Web: lsu.edu/business/ sei/index.php Service Corps of Retired Executives [SCORE] What: Publishes a guide and hosts workshops, which aids in developing a business plan. Phone: 225-381-7130 Web: batonrougearea.score.org/ Small Business Administration What: Publishes a business plan guide. Phone: 504-589-6685 Web: sba.gov

3. CHOOSE A NAME

2. DEVELOP A BUSINESS PLAN

A business plan defines your business, identifies your goal and serves as your firm’s résumé. The components include a current and pro forma balance sheet, an income statement and a cash flow analysis. Start with the Small Business Development Center nearest you to develop a plan.

BUSINESS REPORT, February 26, 2019 | BusinessReport.com

Before you submit articles of incorporation, articles of organization and trade names, the Secretary of State’s Office recommends you conduct a preliminary check of the corporation or trade name. If the name you want is available, you should formally reserve it with the Secretary of State’s Office or wait for confirmation of your filing before obtaining stationery, business cards, phone listings, etc. Secretary of State What: Preliminary checks and formal reservations for corporation or trade name. Names can be reserved for a fee of $25 and a period of 60 days. Two 30-day extensions are available upon request. Phone: 225-922-0880 Web: sos.louisiana.gov

Note: If you are an existing business coming to Louisiana from out of state and you have a trade name/trademark/ service mark filed with the U.S. Patent and Trademark Office, you should contact an attorney. Filings with the Louisiana Secretary of State’s Office are not cross-checked.

4. REGISTER YOUR BUSINESS Registration is required on local and state levels for businesses before they can operate. What: Registration is required in the parish where an entity is doing business for unincorporated businesses such as sole proprietorships. Phone: 225-389-3960 Web: ebrclerkofcourt.org Louisiana Department of Revenue What: Registration is required for any business engaging in sales of any kind. Phone: 855-307-3893 Web: rev.louisiana.gov Office of the Secretary of State What: Registration is required for corporations, partnerships and limited liability companies. Phone: 225-922-0880 Web: sos.louisiana.gov

5. OBTAIN AN EIN AND TAX INFO An employer identification number, or EIN, is also known as a taxpayer identification number, or TIN. A sole proprietorship that has no employees (and files no excise or pension tax returns) and an LLC with a single owner (where the owner will file employment tax returns) are the only businesses that do not need an employer identification number. The sole proprietor uses his or her Social Security number. All other businesses must apply for a federal EIN.

City-Parish Finance Department Revenue Division What: Contact for information regarding local sales tax policies and requirements. Phone: 225-389-3084 Web: brla.gov/635/Revenue-Division Internal Revenue Service What: EINs for those businesses needing to file form SS-4, Application for Employer Identification Number. Information is also available on income tax withholding and federal unemployment tax forms. Phone: 225-343-8625 Web: irs.gov

What: Mandatory zoning clearance/inspections are required along with a business’s physical address. Physical address, survey map, legal description of property, scale of layout proposal and various fees are required for application to change zoning. Phone: 225-389-3205 Web: brla.gov/458/ Permits-Inspections

Louisiana Department of Revenue and Taxation What: Contact for state sales tax registration, state ID number and income tax withholding. Phone: 225-219-7356 [sales] 225-219-0102 [income] Web: rev.louisiana.gov

6. SELECT A LOCATION

AND SITE

Consider the nature of your service or product and your target market when choosing a location. While retail businesses may desire visibility or easy access for walk-in trade, wholesalers and distributors typically need more space at a lower cost per square foot and truck or loading access. Business and professional services tend to look for office buildings or professional centers. You can find searchable databases online with information on available properties. Certificates of occupancy are also issued by the local or parish government upon determination your type of business is located in the proper zone. City of Baker Inspections Division What: Mandatory zoning clearance/ inspections are required along with a business’s physical address. Physical address, survey map, legal description of property, scale of layout proposal and

various fees are required for application to change zoning. Phone: 225-778-0850 [Inspections Division], 225-775-5584 [Public Works] Web: cityofbakerla.com/wp/inspections City of Central Municipal Services What: Mandatory zoning clearance/ inspections are required along with a business’s physical address. Physical address, survey map, legal description of property, scale of layout proposal and various fees are required for application to change zoning. Phone: 225-262-5000 Web: centralgov.com

City of Zachary Inspections Division What: Mandatory zoning clearance/inspections are required along with a business’s physical address. Physical address, survey map, legal description of property, scale of layout proposal and various fees are required for application to change zoning. Phone: 225-654-6873 Web: cityofzachary.org/ city-services/inspections Louisiana Economic Development What: Provides databases on sites and buildings, parishes and communities, geospatial data, geographic suitability and featured megasites. Phone: 225-342-3000 Web: opportunitylouisiana.com

City-Parish Department of Public Works Inspections Division

7. OBTAIN PERMITS/LICENSES

Proper federal, state and local business licenses and permits allowing a legal entity to operate in Louisiana must be obtained before the start of business, including permits, occupational licenses and certificates of occupancy. Geauxbiz.com What: Streamlines registration, licensing, permitting and tax process and can direct you to the proper state and local licensing and taxing authorities. Phone: 225-922-0880 Web: geauxbiz.sos.la.gov

ENVIRONMENTAL Department of Environmental Quality What: A range of licenses and permits is granted to businesses in compliance with state and federal regulations. Its Small Business Assistance Program is a non-regulatory, non-enforcement program to help business owners comply with state and federal regulations. Phone: 225-219-5337 Web: deq.louisiana.gov

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2019 SMALL BUSINESS GUIDE

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Environmental Protection Agency What: Oversees all federal environmental legislation and has jurisdiction over the issuance of various permits and licenses, though this jurisdiction does not extend over all states for all matters. Phone: 214-665-2200 or toll-free 800-887-6063 Web: epa.gov Office of Environmental Services What: Oversees permits, licenses, registrations, certifications, authorizations, pre-permit meetings, small business assistance, customer assistance, outreach, complaints and community relations. Phone: 225-219-3181 Web: deq.louisiana.gov/directory/office/ office-of-environmental-services

FOOD/BEVERAGE City of Baker ABC Office What: Businesses selling alcohol must contact the appropriate local office for requirements and fees. Phone: 225-778-1751 City-Parish Attorney’s Office of Alcoholic Beverage Control What: Businesses selling alcohol must contact the appropriate local office for requirements and fees. Phone: 225-389-3364 Web: brla.gov/460/ Alcoholic-Beverage-Control-Office

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BUSINESS REPORT, February 26, 2019 | BusinessReport.com

East Baton Rouge Parish Health Unit Sanitation Section What: Business address, zoning clearance and fees are required from businesses that will sell food and/or alcohol. Phone: 225-242-4860, ext. 5 Web: brla.gov/704/East-BatonRouge-Parish-Health-Unit

City-Parish Finance Department Revenue Division What: Local occupational license determined by type of business. Requirements include picture ID and corporate charter/partnership agreement and fees, which vary. Phone: 225-389-3084 Web: brla.gov/635/Revenue-Division Occupational Safety and Health Administration What: Requires no licenses or permits, but employers must display a poster describing relevant rights and responsibilities. Most employers must keep a log of work-related injuries and illnesses, which must be accessible to employees. Phone: 800-321-6742 Web: osha.gov

HOSPITAL/NURSING HOME/CHILD CARE Department of Social Services What: Licenses are required before a day-care center may be opened. Phone: 225-342-0286 Web: dss.state.la.us/ Louisiana Department of Health and Hospitals, Health Standards Section What: Licensing by the state is required before a hospital or nursing home may be opened. Phone: 225-342-0138 Web: ldh.la.gov/

Office of Alcohol and Tobacco Control What: Any business selling beer, liquor or tobacco must obtain a state alcoholic beverage and/or tobacco license. Phone: 225-925-4041 Web: atc.rev.state.la.us

GENERAL City of Baker Finance Department What: Local occupational license determined by type of business. Requirements include picture ID and corporate charter/partnership agreement and fees, which vary. Phone: 225-778-1751 Web: cityofbakerla.com/wp/finance City of Central Municipal Services What: Local occupational license determined by type of business. Requirements include picture ID and corporate charter/partnership agreement and fees, which vary. Phone: 225-262-5000 Web: centralgov.com

8. OBTAIN FINANCING If you are a small business and are unable to obtain sufficient funding through personal and family sources, the U.S. Small Business Administration offers several types of loans to prospective small business owners: loans made by private lenders [usually banks] that are guaranteed by the SBA. The SBA is not a bank, but extends guarantees or participation when a bank is unable or unwilling to provide the small business’s entire financing by itself.

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Prior to applying for financial assistance, a prospective small business owner must prepare a business plan, which should identify a market, choose a location, determine capital requirements, project cash flow, establish a credit rating and outline the nature and principles of the business. Loans, venture capital and financing programs are also provided by various state and local agencies.

Phone: 225-408-3000 Web: stonehengecapital.com U.S. Small Business Administration What: Provides financial assistance, including 7[a] Loan Guaranty Programs, SBA 504 Loan Programs, Community Express Pilot Loan Programs and 7[m] Microloan Programs. Phone: 504-589-6685 Web: sba.gov

Downtown Development District What: Offers programs to encourage new businesses to move downtown, including Downtown Low Interest Loan Program, Historic Rehabilitation Tax Credit, Five-Year Property Tax Abatement on Improvement to Structures, Downtown Storefront Grant Program and Economic Development Zone. Phone: 225-389-5520 Web: downtownbatonrouge. org

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9. CHOOSE KEY VENDORS

City-Parish of Baton Rouge, Office of Community Development What: Coordinates municipal programs designed to foster community and business development, including administration of the Restoration Tax Abatement Program, a state program allowing businesses that fix up old buildings to pay property taxes at the pre-approved rate for at least five years. Phone: 225-389-3039 Web: brgov.com/dept/ocd/

Louisiana Department of Insurance What: Can help you learn more about your insurance needs as a business, including liability and other standard coverages. Phone: 225-342-5900 Web: ldi.state.la.us

Small Business Investment Companies What: Privately owned, managed, empowered and licensed by the SBA to provide institutional sources of venture capital for small businesses.

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Louisiana Economic Development What: Provides financial guidance, including: Small Business Loan Program, Business Linked Deposit Program, Microloan Program, Contact Loan Program and Ex-Im Bank City/State Program. It helps with venture capital through Venture Capital Match Program, Venture Capital Co-Investment Program, Minority Venture Capital Match Program, BIDCO Investment Program, Specialty BIDCO Investment Program and Seed Capital Investment Program. Phone: 225-342-3000 Web: opportunitylouisiana.com

Rural Development State Office What: Finances programs that provide leadership in building competitive businesses and sustainable cooperatives, that help build healthy communities offering decent and affordable housing and essential services and that lead rural communities in improving the quality of life by administering their electric, telecommunication, water and waste programs. Phone: 318-473-7920 Web: rd.usda.gov/la

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Louisiana Bankers Association What: A financial institution will help you handle all of the transactional necessities of doing business. Phone: 225-387-3282 Web: lba.org

Louisiana Society of CPAs What: Accounting advice and recordkeeping are essential for doing business. Phone: 504-464-1040 Web: lcpa.org Louisiana State Bar Association What: An attorney will be able to help you comply with the law, check out a business opportunity, prepare legal documents and negotiate deals. Phone: 504-566-1600 Web: lsba.org Office of Workers’ Compensation What: Can help you learn more about your insurance needs as a business, including workers’ compensation insurance. Phone: 225-342-7555 Web: laworks.net

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Daily-Report.com | BUSINESS REPORT, February 26, 2019

2019 SMALL BUSINESS GUIDE

10. KNOW THE LAWS

buildings must be approved, and on-site inspections may be required. Phone: 225-389-3205 Web: brla.gov/458/Permits-Inspections

Starting and operating a business comes with a slew of strings attached. While we can’t print every law for you, here are a few categories along with resources to help you swim through the rest.

STATE

FEDERAL Foreign Trade Zone What: Information on tax exemption and duties for goods exchanged in the Foreign Trade Zone. Local example: Greater Baton Rouge Port Commission Phone: 225-342-1660 International Trade Division What: Information on trade laws and tax exemption for imported items. Phone: 225-342-5361 Web: trade.gov Occupational Safety and Health Administration What: Information on federal laws and regulations regarding working conditions and employee safety. Phone: 225-298-5458 Web: osha.gov U.S. Department of Labor What: Information on legal requirements and standards about minimum wage, employee compensation and employer record-keeping. Phone: 504-589-6171 Web: dol.gov

U.S. Equal Employment Opportunity Commission What: Information on federal and equal opportunity laws about hiring, firing, recruitment, promotion and retention of employees. Phone: 1-800-669-4000 Web: eeoc.gov U.S. Food and Drug Administration What: Information on federal regulations and the production, marketing, transporting, handling and sale of foods, drug products, medical devices, cosmetics, biologics and veterinary products. Phone: 888-463-6332 Web: fda.gov

U.S. Patent and Trademark Office What: Information on applying for a registered patent, brand name or trademark. Phone: 800-786-9199 Web: uspto.gov U.S. Securities and Exchange Commission What: Information on capital formation and federal securities law. Phone: 202-942-8088 Web: sec.gov

LOCAL

Louisiana Department of Revenue What: Defines several types of taxes that must be either paid or collected by businesses. Phone: 225-219-7462 Web: revenue.louisiana.gov/ Office of the Louisiana Secretary of State What: Provides information about corporate and trademark registration or partnership agreement. Phone: 225-922-0880 Web: sos.louisiana.gov Office of Workers’ Compensation Administration What: An employer is liable for the related medical expenses and weekly benefit payments of any employee who is injured in his or her job. Phone: 225-342-7555 Web: laworks.net State Fire Marshal What: All plans for new or renovated buildings must be reviewed by the state fire marshal. Phone: 225-925-4911 Web: sfm.dps.louisiana.gov

City-Parish Department of Public Works Inspections Division What: Plans for new or renovated

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companies can have a tough time securing the right financing from banks—because to many banks, new ventures are seen to be very risky.” It is not enough to verbally approach a

“Even a startup with the best concept will fail due to a lack of capital, not their idea.” MICHAEL NIZZO Market President, Business First Bank lending institution and tell them what you need. According to Nizzo, researching and preparing a detailed business plan is the best way to get started. Nizzo says, “Banks want to see that the business is properly capitalized and is prepared for unexpected problems that could occur.” A large national bank will typically herd loan applicants to an online application that simply

passes judgement on their metric ratings instead of assessing the proposal as a whole. “To an experienced small business banker, this is more than just a credit decision,” says Craig Livingston, senior vice president and senior banker with Business First Bank. Not all local lenders can help small businesses the way Business First Bank does— some banks are too small and approve only collateral-based loans. “We are just right for small business,” added Shane Lacombe, senior vice president and senior commercial banker. Right-sized regional banks like Business First are more invested in their local clients because they live in the community with them. “We see our clients at the grocery and at church. We are neighbors and we value this important role in growing Baton Rouge businesses,” explained Livingston. To learn more, contact the experts at b1bank.com.

BANKABLE BUSINESS: THE FIRST STEP TO SECURING FUNDING Do your homework—In order to gain confidence, provide prospective lenders with a clear and concise business plan. Without strong assets, it may be helpful if the plan includes keeping a primary job until the business gains momentum.

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2019 SMALL BUSINESS GUIDE

IN THE KITCHEN: Lindsey Kelly and Sarah Vincent of Hooked on Re: make croutons at the LSU AgCenter Food Incubator.

An entrepreneurial ecosystem WITH A WEALTH of resources at their fingertips, Capital Region entrepreneurs and innovators can easily find the help they need to prosper in the regional market. Here’s a closer look at some of the many resources local startups can utilize to take their ventures to the next level.

RESOURCES:

Nexus LA Launched in April 2016 as an arm of Louisiana’s Research Park Corp., the goal of Nexus La. is to implement regional initiatives that convene, connect and strengthen the innovation ecosystem in the Baton Rouge area and connect entrepreneurial resources across the state. The ultimate goal: Improve Louisiana’s ability to compete for jobs, talent and public/private funding, ultimately helping the state to emerge as a model and resource for accelerating the success of innovation ecosystems. nexus-la.org (225) 218-0001 Baton Rouge Area SCORE This nonprofit association provides free and confidential business counseling tailored to meet the needs of small businesses and their personal objectives. SCORE also offers periodic seminars and workshops for both startup entrepreneurs and small businesses already in operation. batonrougearea.score.org (225) 215-0080

BUSINESS REPORT, February 26, 2019 | BusinessReport.com

LSU Innovation Park Located four miles just south of the LSU’s main campus, the research park operates numerous business incubators and resources to assist in its goal of creating economic growth. It also offers international trade assistance for companies who wish to export, with training, translation, international trade, marketing experts and logistics experts. lsu.edu/innovationpark (225) 578-7555 Louisiana Small Business Development Center at LSU Established November 2018, the LSBDC at LSU offers high-quality technical assistance to existing and start-up small businesses, and to small business entrepreneurs in Louisiana at no cost to the client. The LSBDC services include no-cost business consulting and affordable training seminars designed to help businesses attract customers, improve operations, increase sales and successfully access capital. The LSBDC at LSU office is located in suite 2200 of the LSU Business Education Complex, 501 South Quad Drive. lsbdc.org/lsu/ (225) 578-2174 Louisiana Small Business Development Center at Southern University Since 1996, the LSBDC has been providing individual consulting services, training programs/seminars, and information assistance to potential and existing small businesses in the greater Baton Rouge region. lsbdc.org/subr (225) 771-2891

ANGEL NETWORKS/ VENTURE CAPITAL:

Innovation Catalyst Innovation Catalyst, formerly Step One Ventures, is a Baton Rouge-based nonprofit Venture Development Organization formed by community leaders to strengthen and broaden Louisiana’s entrepreneurial ecosystem and drive new high-tech company formation through education, connections and capital. By collaborating with existing resources in the state, Innovation Catalyst is able to identify, engage and educate Louisiana entrepreneurs by connecting them to the right sources to accelerate their business. innovationcatalyst.us/ (844) 225-4332

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INNOVATOR: Innovation Catalyst CEO Louis Freeman leads the nonprofit venture development organization, which uses its Catalyst Fund to investing in start-up companies with high growth potential. Companies in its portfolio include Waitr, Lubricity Labs and MasteryPrep, among others.

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MAKING IT HAPPEN: Jason Hugenroth, president and founder of Inventherm, turned to the LSU ProtoStripes Center when his company began receiving defective rubber gaskets from a vendor. LSU engineering students were able to assist with and eventually solve the problem, saving Inventherm weeks of time.

INCUBATORS:

Louisiana Business and Technology Center This 65,000-square-foot incubator houses more than 30 technology startups in the LSU Innovation Park and provides comprehensive consulting services. The Center also offers a prototyping facility, ProtoStripes, to create rapid prototypes and computer renderings to expedite commercialization of their products. lsu.edu/innovationpark (225) 578-7555

LSU AgCenter Food Incubator This business incubator specializes in the development of emerging food ventures and providing technical services to existing and emerging companies. It is under the umbrella of the LBTC and is located on the LSU campus in Baton Rouge adjacent to the Department of Food Sciences. lsuagcenter.com/foodincubator (225) 578-4161

Louisiana Technology Park A business incubator located in Bon Carré on Florida Boulevard that provides high-tech startup companies with the resources to bring their products and services to market faster. Louisiana Technology Park also has a separate digital media incubator, Level Up Lab. latechpark.com (225) 218-1100

LSU Student Incubator This small business incubator for LSU undergraduate and graduate students is located in Innovation Park. The shared workspace encourages like-minded students to develop ideas into profitable businesses with the assistance of the LBTC staff and community mentors. lsu.edu/innovationpark/student-services (225) 578-7555

Louisiana Emerging Technology Center Falling under the umbrella of the LSU Research and Technology Foundation, this incubator focuses on the biotechnology, life sciences, agricultural and environmental industries. Designed specifically as an incubator for companies with wet-lab needs, it serves small and startup businesses developing and commercializing university technologies. laetc.com (225) 615-8901

Pennington BioTech Initiative This incubator is specifically designed for companies that are creating medical devices, medical software and medical technologies. The initiative is a partnership among LSU, the LBTC and Pennington Biomedical Research Center, which contracts out the use of its labs for a fee to companies in the incubator. (225) 578-7555

Southeast Louisiana Business Center This business incubator and resource center for startups in Washington, St. Tammany, Tangipahoa, Livingston and St. Helena parishes is located on the campus of Southeastern Louisiana University in Hammond. southeastern.edu/admin/slbc/services/index. html (985) 549-3199 Level Up Lab Level Up Lab is a project of Louisiana Technology Park that aims to create and bring new digital media companies to Louisiana, building on Louisiana’s focus on the digital media and high-tech sectors. Its services include a motion capture studio, sound recording studio, game design hardware and software, Sony and Nintendo development kits, marketing and accounting, and industry-specific consultation. leveluplab.com (225) 218-1100 Dixie Business Center Founded in 1992 by DEMCO, this Denham Springs incubator helps fledgling businesses compete by providing shared services, as well as 33,000 square feet of office space and warehousing. dixiebusinesscenter.org (225) 665-0809

Daily-Report.com | BUSINESS REPORT, February 26, 2019

2019 SMALL BUSINESS GUIDE

Size of businesses in the Capital Region by industry AS THE FIGURES below show, small businesses are the heartbeat of the Baton Rouge economy. Big businesses often get much more ink and public attention, but the majority of businesses in every industry here have fewer than 20 employees, and many more have fewer than 100. Of the nearly

18,100 established firms in the region, about 14,850â€”82%â€” have fewer than 20 people on their teams, and another 14% have 99 or less employees. Medium size companies with between 100 and 499 account for 3.4% of all businesses, while those with 500 or more employees make up just 0.3%.

INDUSTRY

Micro

Small

Medium

Large

Accommodation and food services (1,594)

990 (62.1%)

574 (36%)

28 (1.7%)

2 (0.1%)

Administrative, support, waste management and remediation services (860)

679 (79%)

143 (16.6%)

35 (4%)

3 (0.3%)

Agriculture, forestry, fishing and hunting (45)

38 (84.4%)

6 (13.3%)

1 (2.2%)

0 (0%)

Arts, entertainment and recreation (231)

166 (71.9%)

58 (25.1%)

6 (2.6%)

1 (0.4%)

Construction (1,478)

1,244 (84.2%)

172 (11.6%)

52 (3.5%)

10 (0.7%)

Educational services (257)

179 (69.6%)

63 (24.5%)

15 (5.8%)

0 (0%)

Finance and insurance (1,337)

1,230 (92%)

85 (6.4%)

20 (1.5%)

2 (0.1%)

Health care and social assistance (1,907)

1,491 (78.2%)

326 (17.1%)

82 (4.3%)

8 (0.4%)

Information (234)

182 (77.8%)

43 (18.4%)

8 (3.4%)

1 (0.4%)

Management of companies and enterprises (121)

82 (67.8%)

27 (22.3%)

10 (8.3%)

2 (1.7%)

Manufacturing (578)

387 (67%)

141 (24.4%)

41 (7.1%)

9 (1.6%)

Mining, quarrying, and oil and gas extraction (85)

68 (80%)

16 (18.8%)

1 (1.8%)

0 (0%)

Other services (except public administration) (1,849)

1,679 (90.8%)

155 (8.4%)

15 (0.8%)

0 (0%)

Professional, scientific and technical services (2,249)

2,029 (90.2%)

183 (8.1%)

33 (1.5%)

4 (0.2%)

Real estate, rental and leasing (869)

820 (94.4%)

45 (5.2%)

4 (0.5%)

0 (0%)

Retail trade (2,841)

2,369 (83.4%)

390 (13.7%)

81 (2.9%)

1 (0.1%)

Transportation and warehousing (520)

410 (78.8%)

92 (17.7%)

17 (3.3%)

1 (0.2%)

Utilities (61)

40 (65.6%)

16 (26.2%)

4 (6.6%)

1 (1.6%)

Wholesale trade (955)

769 (80.5%)

175 (18.3%)

10 (1%)

1 (0.1%)

(Number of establishments)

<20 employees

20-99 employees

100-499 employees

>500 employees

SOURCE: US Census Bureau Some industry percentages do not add up to 100% due to rounding.

BUSINESS REPORT, February 26, 2019 | BusinessReport.com

INCENTIVES

SPECIAL PROGRAMS FOR SMALL BUSINESSES

ARE YOU THINKING about expanding, relocating or staring a business? Louisiana’s tax credits and incentive programs give companies a competitive edge. Here’a summary of the incentives available through Louisiana Economic Development. You can find more details online at opportunitylouisiana.com/business-incentives.

FROM ENTREPRENEURIAL startups to small business growth and expansion, Louisiana offers a comprehensive array of educational, managerial and financial programs that cultivate small business opportunities.

FEDERAL OPPORTUNITY ZONES Provides a federal tax incentive for investors to re-invest their capital gains into Opportunity Funds.

BONDING ASSISTANCE PROGRAM Provides access to quality bid, payment and performance bonds at reasonable rates from surety companies when bonding capacity is needed on public or private jobs.

TIM MUELLER

INDUSTRIAL TAX EXEMPTION Property tax abatement for up to eight years on a manufacturer’s new investment and annual capitalized additions.

CURRENT AFFAIRS: Welder Jake Thibodeaux works on a belt channel as he builds a drive frame for a Go-Devil boat motor. Go-Devil Manufacturing Company of Louisiana builds engines and hunting boats designed for shallow water environments, producing over 1,800 engines a year.

CEO ROUNDTABLES Peer groups that give executives the opportunity to discuss business practices and management strategies with other executives who deal with similar growth challenges.

LIVE PERFORMANCE PRODUCTION PROGRAM Up to 25% tax credit for musical and theatrical productions, refundable or transferable on a onetime basis.

ECONOMIC GARDENING INITIATIVE Provides customized core business strategies, market research, qualified sales leads and improved internet and technology tailored to your growing needs.

MOTION PICTURE PRODUCTION PROGRAM Up to a 40% tax credit on eligible in-state production expenditures, including resident and non-resident labor.

HUDSON INITIATIVE Certification program offers greater access to purchasing and contracting opportunities at the state government level. LOUISIANA CONTRACTORS ACCREDITATION INSTITUTE-BUSINESS AND LAW Provides small and emerging construction businesses critical information about construction management and operating a construction-related business.

LED FASTSTART Consistently ranked the nation’s No. 1 workforce training program by Business Facilities magazine, FastStart creates customized employee recruiting, screening and training solutions—at no cost to eligible companies.

LOUISIANA CONTRACTORS ACCREDITATION INSTITUTE-GENERAL CONTRACTORS Provides foundational technical knowledge that is essential to a general contractor in order to sustain and grow a business within the construction industry.

ANGEL INVESTOR TAX CREDIT Up to a 25% tax credit for individual investors who invest in early stage, wealth-creating businesses that seek start-up and expansion capital. TIM MUELLER

DIGITAL INTERACTIVE MEDIA AND SOFTWARE PROGRAM A 25% tax credit for in-state labor, and an 18% credit for eligible production expenditures.

GETTING IN TUNE: Tim Lawson, owner of Tim’s Guitar, restores a Jackson Professional electric guitar at his shop located on Dallas Drive in Baton Rouge.

ENTERPRISE ZONE Either a $3,500 or $1,000 tax credit for each certified net, new job created and either a state sales/use tax rebate on capital expenses or 1.5% investment tax credit for qualifying expenses.

MUSIC JOB CREATION PROGRAM A 10% or 15% credit on annual wages to qualified music industry-related companies (QMC) that create a minimum of three well-paid net new jobs for Louisiana residents.

ENTERTAINMENT JOB CREATION PROGRAM A 15% or 20% tax credit on annual wages to qualified entertainment companies (QEC) that create a minimum of five well-paid net new jobs for Louisiana residents.

QUALITY JOBS Up to a 6% rebate on annual payroll expenses for up to 10 years and either a state sales/use tax rebate on capital expenses or a 1.5% project facility expense rebate for qualifying expenses.

TIM MUELLER

RESEARCH AND DEVELOPMENT TAX CREDIT A tax credit up to 30% to existing businesses with operating facilities in Louisiana to establish or continue research and development within the state.

MEASURE TWICE: Kenny Minor of Cajun Cypress Hardwoods Inc. trims the legs from a cypress door as he builds a custom door from reclaimed cypress.

RESTORATION TAX ABATEMENT A 100% property tax abatement for up to 10 years for the rehabilitation of an existing structure. SOUND RECORDING PROGRAM A production credit of 18% for eligible production expenditures.

LOUISIANA VETERAN ENTREPRENEURSHIP PROGRAM Provides training to give veterans the tools needed to develop their business ideas, including business planning, marketing, financing, capital formation and other aspects of business development. MENTOR-PROTÉGÉ RECOGNITION PROGRAM Connects Louisiana-based small and emerging businesses to technical and developmental assistance provided by mentor companies. SMALL AND EMERGING BUSINESS DEVELOPMENT PROGRAM Provides for developmental assistance, including entrepreneurial training, marketing, computer skills, accounting, legal and industry-specific assistance. SMALL BUSINESS LOAN AND GUARANTY PROGRAM Provides loan guarantees to banks and other small business lenders in association with the SSBCI ranging from $5,000 to $1.5 million. STEP GRANT Provides financial awards to state and territory governments to assist small businesses with export development. VETERAN INITIATIVE Helps veteran-owned and service-connected disabled veteran-owned small businesses gain greater access to purchasing and contracting opportunities at the state level.

Daily-Report.com | BUSINESS REPORT, February 26, 2019

MARIE CONSTANTIN

2019 SMALL BUSINESS GUIDE

Tin Roof Brewing Co. owner William McGehee

Spotlighting success LED HAS RECOGNIZED the commitment to excellence within the state’s manufacturing sector for nearly 40 years with its Lantern Awards. Selected by Louisiana’s eight Association of Planning and Development districts, the recipients are manufacturers who demonstrate innovation throughout their businesses and exceptional service to their communities.

CAPITAL REGION LANTERN AWARD RECIPIENTS: 2018 Tin Roof Brewing Co. Baton Rogue

2017 Gnarley Barley Brewing Hammond

2016 Methanex USA LLC Geismar

2015 Pod Pack International Baton Rouge

2014 PreSonus Audio Electronics Inc. Baton Rouge

2013 Moran Printing Inc. Baton Rouge

BUSINESS REPORT, February 26, 2019 | BusinessReport.com

TRANSFORMATIONS A SPECIAL PROFILE SECTION COMING IN THE MARCH 26 ISSUE Show Baton Rouge how your designs and development projects come together!

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ENT AND CEO Kusserow’s Paul vision for the landscapes company’s new from the com headquarters munities it was to offer serves, icon our employe ic “street sign a collaborative, es s” such as Broadway and open work envi Route 66, and ronment with plenty of patient pholight and lots tos. The Ame disy values (Ser of energy. The open space vice, Passion, makes it easi Inte grity, Respect, er for employe to interact with Innovation and es are also prom Talent) each other and inently displaye enhances the flow of info d. rmation and teamwork. Colleagues can A COLLABO turn to each other for RAT advice or assi stance and inte VIBRANT WO IVE AND ract RKP ion is generally mor LACE e frequent and Not only did informal. Amedisys wan In addition to t to transform the phys work stations ical space, it , the space features a num also wanted to transform ber of “neighb the way the orhoods” for collabora Baton Rouge tive working team viewed com and improm ing to work meetings, and ptu and they worked. spaces for mor how The building e private discussions, was previous if needed. used as a call ly center and was Employee feed sectioned off with wall back was solic s, dark hallw ited on design, wor ays, closed off rooms and was kstations and serv difficult to navi ices offered—such gate. as yoga, mob The new build ile car wash, ing features healthy market a lot of glass and light thro and dry clea ning. ughout the spac Since Amedisy e to visually represen s is in 34 stat t the company es across the country, ’s transparent the design inclu culture (the few executive des regional offic es are all glass and avai lable to any employee to

reserve for mee tings when not in use). The building includes a train ing room to accommoda te 100 people, three coffee bars, a wellness room with wor kout equipment, a larg e break room with healthy market vend ing and huge patient photos throughout to connect the corporate team with the com pany’s mission of taking care of its patients where they mos t want to be—in the hom e. In fact, Ame disys has recently leas ed the space next door for expansion, inclu ding moving the Baton Rouge home health and hosp ice care centers to America n Way. It’s a collaborative and vibrant workplace whe re employees feel excited and energize d to work.

FEATURING RESIDENTIAL & COMMERCIAL PROPERTIES

TO ADVERTISE, contact Kerrie Richmond at 225.421.8154 or krichmond@businessreport.com Daily-Report.com | BUSINESS REPORT, February 26, 2019

LISTMAKERS

Louisiana SBA lenders

UPCOMING LISTS:

Ranked by FYE 2018 SBA loan volume in the Capital Region PREV. RANK

NAME ADDRESS PHONE | WEBSITE

LOAN VALUE

LOANS MADE IN REGION

TOP LOCAL LOANS

LOCAL/ TOTAL LOCATIONS

YEAR EST. LOCALLY

IberiaBank 4451 Bluebonnet Blvd., Suite D, Baton Rouge, LA 70809 225-923-5561 | www.iberiabank.com

$10.77 million

Workbox LLC - $4.44 million Rivet Holdings LLC - $2.5 million Beach Pizza Management LLC - $1.91 million

7 217

2004

Regions Bank 400 Convention St., Suite 100, Baton Rouge, LA 70802 800-734-4667 | www.regions.com

$6.45 million

Louisiana Event Rentals LLC - $2.76 million CNS Dental Property LLC - $1.87 million TTA Services LLC - $1.73 million

24 1,476

1997

BancorpSouth Inc. 6100 Corporate Blvd., Baton Rouge, LA 70808 225-768-1100 | 888-797-7711 | www.bancorpsouth.com

$5.28 million

Brown Eagle Warehouse LLC - $5 million Vascular Advantages of La. LLC - $278,800

5 289

2004

United Community Bank 11280 Coursey Blvd., Baton Rouge, LA 70816 225-293-8344 | www.ucbanking.com

$4.48 million

Shulka Learning Academy - $3.33 million First Ballot Enterprises Inc. - $1.15 million

4 10

2015

The Cottonport Bank 6500 Corporate Blvd., Baton Rouge, LA 70809 225-231-6606 | www.cottonportbank.com

$3.24 million

Louisiana CSI LLC - $2.25 million Dankerrco LLC - $791,500 The Grove of LA LLC - $200,000

3 12

1998

Capital One Bank 6920 Bluebonnet Blvd., Baton Rouge, LA 70810 225-381-7550 | www.capitalone.com

$2.66 million

Perniciaro APCC - $1.17 million Razorback Rentals LLC - $825,000 Coleman Consulting Group LLC - $350,000

22 604

1987

Newtek Small Business Finance Inc.(1) 1981 Marcus Ave., Lake Success, NY 11042 www.newtekone.com

$1.91 million

Southern Oaks Athletic Club LLC - $1.46 million Moore Care LLC - $208,000 Kajun Martial Arts LLC - $150,000

0 4

Fidelity Bank 5643 Corporate Blvd., Baton Rouge, LA 70808 225-201-0864 | www.bankwithfidelity.com

$1.90 million

Performance Fitness LLC - $773,000 DGB Footwear LLC - $425,000 MT Coffee LLC - $288,700

1 17

2005

Hancock Whitney Bank 445 North Blvd., Baton Rouge, LA 70802 225-381-0424 | www.whitneybank.com

$1.89 million

Post Trauma Institute of Louisiana LLC - $587,300 T Truong Investments LLC - $400,000 Prestigious Painting and Janitorial LLC and Templet Management LLC - each $350,000

31 201

2014

JP Morgan Chase 451 Florida St., Baton Rouge, LA 70801 225-332-4022 | www.chase.com

$969,200

Yellow Brick Properties LLC - $408,000 Derise Kitchen LLC - $237,400 Fusionstak LLC - $120,000

33 5,144

2004

Essential Federal Credit Union 21925 Highway 1 S., Plaquemine, LA 70765 225-353-8238 | www.essentialfcu.org

$742,700

Fortune 45 Properties LLC - $350,000 Caliente Mexican Craving LLC - $75,000 Patterson Legacy Group LLC - $70,000

7 7

1972

Business First Bank 500 Laurel St., Baton Rouge, LA 70801-1811 225-248-7600 | 877-614-7600 | www.b1bank.com

$583,800

Ascension Golf Carts LLC - $350,000 PTG2 LLC - $208,800 Gulf South Animated Motion Technologies Inc. - $25,000

9 18

2006

Readycap Lending LLC(2) 420 Mountain Ave., New Providence, NJ 07974 800-453-3548 | www.readycapital.com

$425,000

MAF Investments LLC - $425,000

0 3

Florida Parishes Bank 1300 W. Morris Ave., Hammond, LA 70403 985-345-2265 | www.bankfpb.com

$420,000

Republic Rouge LLC - $420,000

0 7

TruFund Financial Services 8550 United Plaza Blvd., Suite 702, Baton Rouge, LA 70809 225-284-1355 | www.trufund.org

$222,000

DMK Automotive LLC - $222,000

1 3

2005

LiftFund Inc. 4323 Division St., Suite 103, Metairie, LA 70002 504-458-6601 | 888-215-2373 | www.louisiana.liftfund.com

$150,000

Louisiana Casual Living LLC - $150,000

0 21

State Bank and Trust Co. 665 Florida St., Baton Rouge, LA 70801 225-389-1110 | www.statebank1898.com

$38,935

Patin Engineers and Surveyors Inc. - $38,935

12 36

2005

DBA-doing business as FYE-fiscal year ending NA-not applicable NR-not ranked SBA-Small Business Administration To be featured in the Business Report's Listmakers, SBA lenders must have at least one office in Louisiana, and had at least one SBA 7A loan approved for a Capital Region company during the past fiscal year, Oct. 1, 2017, through Sept. 30, 2018. Fiscal year loan information came from the U.S. Small Business Administration, with additional information from the Federal Deposit Insurance Corp., the individual lenders and other Business Report research. The Business Report presumes the information is accurate. Information about all 36 lenders that made Capital Region SBA loans last year will be available to subscribers on our website. Email research@businessreport.com for more information. Published Feb. 26, 2019. (1) Facilitates loans through banks and subsidiaries, acting as an "SBA back office" for more than 400 lending institutions around the country; domiciled in Louisiana as Wilshire Louisiana BIDCO LLC and related entities (2) Wholly owned subsidiary of Sutherland Asset Management Corp. and sister company of residential mortgage firm GMFS, which is based in Baton Rouge All rankings are determined solely through independent research. Highlighted entries are for those companies that pay a fee for an upgraded listing after their eligibility for the list has been determined.

3/12 Law firms 3/26 Residential real estate firms 3/26 Commercial real estate firms

BUSINESS REPORT, February 26, 2019 | BusinessReport.com

Researched by Alaine Keisling

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VIEWPOINT

THE BIG PICTURE

Another one bites the dust

STEPHANIE RIEGEL BATON ROUGE LOST one of its architectural gems earlier this month. You probably didn’t hear about it. Not many people did. Issues related to historic preservation don’t generate a whole lot of buzz in this community. But you probably passed the structure often, even if you didn’t particularly notice it, because it was located on the busy S. Acadian Thruway, just north of Interstate 10. A quick glance by an untrained eye might have found the structure to be rather unremarkable, if not outdated. It was an example of Mid-Century Modern architecture, which has a limited appeal in a town with pedestrian tastes that tend to favor quaint Acadiana-style homes and garish Mediterranean McMansions. But to anyone who knew, this classic ranch-style home was special—not only because it showcased with understated elegance the elements of the last truly vernacular style of American architecture, but because it had a story: Built in 1957, it was the home of C.B. “Doc” Pennington, the optometrist-turned-oil tycoon, who was the richest man in Louisiana

REFLECTIONS

STRESS BUSTER #2 This feature is a tribute by our publisher in honor of Business Report founder, Rolfe H. McCollister Sr.

BUSINESS REPORT, February 26, 2019 | BusinessReport.com

at the time of his death in 1999, and whose fortune endowed a generous foundation and the world-renowned biomedical research center on Perkins Road that bears his name. It always seemed somewhat remarkable to me that a man of Pennington’s means lived in a home that didn’t drip with pretension. But then, that was one of the characteristics of the home that made it so appealing. It was a testament to a man who didn’t spend his money on flash and glam to impress. He spent it on things that matter. Not that this home was shabby. On the contrary, it sat on an expansive lot of more than two acres, set far back from the street, with lush live oaks, shady elms and leafy magnolias that partially obscured its wide circular drive, brick façade, huge glass picture windows and red tiled roof. It was also much larger than it appeared from the street—more than 5,000 square feet—with a swimming pool in the rear. As it turns out, Pennington’s family made the call to raze the old house. Doc Pennington’s great granddaughter, local real estate agent Paige Pennington, owns the property and applied for the demolition permit. Broker Gloria Carter, with whom Pennington works, says Pennington is exploring options for redevelopment that might include an office park or low-density residential use. “It’ll be nice whatever they do,” Carter says. “I promise.” One cannot blame Pennington for making what was no doubt a difficult decision. Restoring or renovating the home, which was used by family members as an office for

the past several years, would have been costly, perhaps prohibitively so. The driving force behind real estate is to always seek the highest and best use for a property. But it’s unfortunate that the term—highest and best use—is meant only in a financial sense, not in the sense of what would most enrich the social and cultural fabric of a community. Which is what a structure like the old Pennington home did. It was a pristine example of MidCentury Modern architecture, a uniquely American style that doesn’t have the widespread appeal, perhaps, of Victorian-era townhomes or craftsman-style bungalows, but is no less historically significant. As such, it added to the diversity of Baton Rouge’s visual landscape and enhanced its sense of place. This is no small thing. Sense of place has become a key element in the development of communities. The more authentic and unique the better. It’s an intangible quality but it’s very real and it factors into decisions about where companies and creative class professionals locate. Every place has gated communities with zero-lot-line “estate” homes. Only Baton Rouge had the Pennington home. Not that Baton Rouge has much appreciation for even the more charming styles of historic architecture. You may remember the hard-fought battles of the early 2000s to create the city’s Historic Preservation Commission. It oversees the city’s historic districts, which number just two— Spanish Town and Dreher Place. Other neighborhoods considered

WHILE THE LAST Reflections dealt with focal points to relieve, this one couples two passages of provision and contentment. One thing that creates stress is “the worry of the world and the deceitfulness of wealth choke the Word, and it becomes unfruitful,” as Matthew 13:22 states. Romans 8:32 says, “He who did not spare His own Son, but delivered Him over for us all, how will He not also with Him freely give us all things?” In other words, the Father gave His Son for our redemption, can He not also meet our physical needs? So, why worry? The secret of contentment brings peace. Philippians 4:11-13 states, “Not that I speak from want, for I have

becoming historic districts but ultimately didn’t want government telling them what they could and couldn’t do. LSU architecture professor and historic preservation expert Michael Desmond—son of Baton Rouge’s best known MidCentury Modern architect, the late John Desmond—says the issue is deeply rooted in the local culture, which has demonstrated, time and again, an aversion to thoughtful planning, development and preservation. “There is no citywide protection of these kinds of structures here,” he says. “Part of it is no appreciation for Mid-Century Modern, but part of it is there is no sense of community identity.” Perhaps the best hope is legislation that will incentivize the preservation of historic homes. Until recently, the state had a historic building tax credit for residential properties. But it was a casualty of legislative belt tightening several years ago. Fairleigh Jackson, executive director of Baton Rouge-based Preserve Louisiana, hopes to bring a bill to the Legislature that would restore the program. But that likely won’t happen until 2020. Her organization’s efforts this year will focus instead on extending the sunset provision of the more impactful commercial tax credit program, which expires in 2021. Whether a state tax incentive will make it that much more financially attractive to restore a historic home is debatable. But it certainly won’t hurt, and as Jackson points out, “without the incentive there’s really no incentive for anyone to save these structures, unless they just love historic preservation.”

learned to be content in whatever circumstances I am. I know how to get along with humble means, and I also know how to live in prosperity; in any and every circumstance I have learned the secret of being filled and going hungry, both of having abundance and suffering need. I can do all things through Christ who strengthens me.” The secret of contentment learned through times of humble means and times of prosperity, equips us with the strength of Christ to keep us within our means, and content. —Chaplain (COL) Jeff Mitchell, State Chaplain, Louisiana Army National Guard

VIEWPOINT

RANDOM THOUGHTS

The death of small towns enough cash to pay even the most basic of public-sector bills. Many have barely functioning water systems. One bet big—and lost—on a save-the-day sports complex. Others are in the deathgrip of unfunded retirement debt. All are hemorrhaging residents, who are either fleeing to another state or a Louisiana city with something resembling an actual pulse. Sad, no doubt, tragic even—but the question is what should we do about it? THOSE OF US in Baton Rouge Nothing. who actually pay taxes to the state Let ’em die. of Louisiana probably don’t reTime, the desires of where alize it, but we have a growing and how young people live, and problem on our hands. So, too, do the demands of the tax-paying residents of New a global econOrleans, Lafayette, Lake Charles omy powered by and Shreveport. knowledge, reWith each passing month, search, creativity more and more of the tax dollars and innovation coming from one of the state’s are conspiring to semi-thriving metropolises is make these places going to the rather pointless effinancially unfort of keeping some dying, rural sustainable. And town on life support. the taxpayer cost Just this month, state governof keeping them ment came to the rescue of two alive for nostalgia more cash-strapped cities— sake isn’t worth it. Bogalusa and Sterlington—lifting To borrow the us to seven towns in the midst of business word a state bailout. Of greater condu jour, these cern: there are eight others likely places never to soon join this critical care list, saw—or failed to and all-in, according the legislasee—“disruption” tive auditor’s office, as many as coming, and in 60 Louisiana communities are on an adapt-or-die the brink of financial disaster. world these towns wouldn’t or Simply put, these once-charmcouldn’t adapt. Issue Ad3 proof #5Take Bogalusa, for instance. ing andDate: quaint2-26-19 hamlets now • Please respond by e-mail or fax with your approval or minor revisions. find themselves on approval death’sor door• AD WILL RUN AS IS unless final revisions The paper mill town has seen its are received by the close of business today. step, no longer able to generate population drop by 50% since

JR BALL

1970, to roughly 12,300; yet the place still is financially maintaining as many streets, according to The Advocate, as Metairie and is on the hook for the salaries of 29 police officers and 31 firefighters. Seriously, why does a town of 12,000 need 29 cops? But what’s putting Bogalusa out of business is the place only has enough cash to fund 17% of its local pension obligations, and the money it does have to cover the retiree tab could run out by as early as 2021. As it stands now, Bogalusa’s problems—and those of 59 other dying towns across Louisiana— are quickly becoming the state’s problems. And the state’s problems are being bankrolled by those of us living in sorta solvent cities like Baton Rouge. Instead of the dollars we send to the state helping fund a new, much-needed bridge over the Mississippi River, it will, instead, cover some other place’s retirement bill, or build a new water system for a place that’s dying of natural causes. Let’s be clear, if throwing money at the problem would actually bring the dead back to life then these state bailouts might—just might—be a defendable position. The concern shouldn’t be how

Time, the desires of where and how young people live, and the demands of a global economy powered by knowledge, research, creativity and innovation are conspiring to make these places financially unsustainable.

• Additional revisions must be requested and may be subject to production fees.

much or how little state government (or any other government) is spending, but, rather, what’s the return on those tax-dollar investments? Frankly, the wiser investment is to simply cut each family in these dying towns a check to help them relocate to a place that can actually afford to sustain itself. That won’t happen. What will happen—in a bit of hypocritical irony—is people will plead for a big government-style bailout. It’s amazing how the people of this state—who allegedly adore small government, abhor taxes, believe public dollars are generally wasted, love Donald Trump and wrap themselves in the flag of self-reliance when it comes to poor black people—can so easily embrace the glory days of Huey Long-style populism when it quenches some self-serving thirst. And it’s not just those in dying towns. Officials in Livingston Parish, one of the state’s fastest-growing parishes and home to some of its most conservative voters, went begging for state dollars a few years ago to build surface roads to alleviate local traffic woes. Why is that a state problem? Without question, it’s a shame these rural towns are dying, but nothing at this point can stop their demise. The only practical option is to let them simply fade away.

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Daily-Report.com | BUSINESS REPORT, February 26, 2019