THE VOICE of FLORIDA’S SUPER REGION
SOCIAL ENTREPRENEURSHIP APRIL | MAY 2014
Improving worldwide economies by raising funds at home
TALENT PIPELINE CareerSource Florida's new job and title
INTERNATIONAL BUSINESS page 47
page Role of University Research Parks
University of Central Florida President John C. Hitt in front of the Partnership Building III, home of UCF’s Institute for Simulation & Training at Central Florida Research Park
As one of “America’s Best Hospitals” according to U.S. News & World Report, Moffitt is as passionate about developing tomorrow’s clinicians as we are about beating cancer. We train more oncologists than any other institution in Florida and more students in the field of oncology than all other institutions in the state combined. Because when it comes to the cure, no endeavor is too grand.
TRAINING ONCOLOGISTS IS LIKE ALL OTHER GREAT TEACHING. YOU LEAD BY EXAMPLE. MOFFITT.org
CLOSER TO OUR PATIENTS. CLOSER TO A CURE.® MOFFITT CANCER CENTER 12902 MAGNOLIA DRIVE, TAMPA, FL
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Go ahead, take it to the next level. We’ll hold you steady. One day you’re zipping around on your trusty tricycle, the next you find your balance and fly. It’s a small change, yet a huge leap. Those are the growing moments we live for. Your business is no different. A shift in the way you operate can change the game and we exist to make that kind of change possible. We’re one of the largest locally-owned public accounting firms in Central Florida and along the I-4 Corridor. With our own unique approach
to consulting and management advisory services combined with audit, tax and accounting expertise, your business can lose the training wheels and really take off.
It’s time to grow. Find out more about our full suite of services at cfrcpa.com.
Orlando 407.841.6930 Winter Haven 863.299.5638 Lakeland 863.937.9520 Tampa 813.321.6869
IN CASE YOU MISSED IT
16 COUNTY REPORT THE SUPER REGION AT A GLANCE
LEADING POINTS OF VIEW
EXPERT TIPS AND ADVICE
Successfully moving from valuation to offers and sales is not a sure thing for young companies. Here's help.
58 PARTING SHOT PEOPLE AND PLACES
GROWING IDEAS INTO ENTERPRISES
‘SPRING’ING INTO ACTION Even with a long history of water conservation, Stetson University is poised to make its biggest splash through the use of research, teaching and a new institute.
LEGISLATIVE DOWN TO THE WIRE Key issues hung in the balance UPDATE POLICY MAKING IN ACTION
as the Legislature raced toward adjournment.
PULSE NEW GLOBAL INTERNATIONAL NEWS
3-D REVIVAL Now playing: Back from the Dead, starring UCF’s Jayan Thomas as a breakthrough innovator who saves the day.
22 DOING THE MATH
For one Florida Tech researcher, the study of breast cancer hits home, and an analysis of mathematical data enables her to do something about it.
CRYSTAL CLEAR OPPORTUNITIES
A look at Florida's thriving international business climate.
YOUR PERSONAL BOTTOM LINE
ALL ABOUT ER
How to save time and money when a medical emergency strikes—for you or your employees.
IF THE SHOE FITS Social entrepreneur Funds2Orgs seeks to help nonprofits step up their fundraising—while improving economies all over the world.
THE BUSINESS OF SPORTS
TIMELY AND TOPICAL
SUNRAIL SPINOFF Along with greater mobility, the arrival of commuter rail brings transit oriented development. Case in point: SunRail’s Altamonte Springs station.
APRIL | MAY 2014 • FORWARDFLORIDA.COM
MONEY BALL According to a recent study, Florida sports net $44.4 billion in total economic output—3.5 percent of the Gross State Product.
EVERY PHOTO IS WORTH A THOUSAND WORDS.
OURS IS WORTH A
This region seen above by satellite looked a lot different in 1995 before our universities joined hands and created the Florida High Tech Corridor Council to grow high tech industry and employment. Today (at right) it shines brighter than ever before with high tech employment at an all-time high. In fact, a recent study showed the Florida High Tech Corridor ranked as the fourth largest tech hot spot for jobs. Thanks to the Corridor’s Matching Grants Research Program, Florida’s investment of $55 million has created 1,200 applied research project partnerships with 350 companies with a verified downstream impact of more than $1 billion generated from sales contracts, patents, federal and other grants … not to mention the jobs our partner companies are creating.
FEATURES EDUCATION ISSUE
/ who we are
FORWARD Florida is the only magazine in Florida solely focused on economic development. The magazine is privately owned by Forward Florida Media Inc.
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WANTED: MORE JOBS, QUALIFIED WORKERS
The magazine’s mission is to educate both internal and external audiences to the tremendous growth opportunities in Florida’s 23-county Super Region. Its targeted distribution list includes C-level executives, Super Region legislators in Washington, D.C., and Tallahassee, economic development professionals, site selectors and targeted industries within the region and across the nation.
CareerSource Florida has undergone a rebranding and refined its role. The task: effectively identify needs, quickly fill positions and ultimately enhance economic competitiveness.
In addition to the magazine, published bimonthly, the website forwardflorida.com delivers news and information, while FORWARD Florida is also represented on social media through Twitter, LinkedIn, Facebook and Google+.
ARTS IN EDUCATION Adding an “A” to STEM studies.
SITE SELECTION IN ACTION India-based Mindtree looked to the Southeast U.S. to expand its global presence. UF and Gainesville won.
RESEARCH RICHES The University of South Florida, under the leadership of Dr. Judy Genshaft, continues to flourish. A host of accolades, high rankings and new initiatives tells the story.
FLORIDA POLY AND THE LADY IN PURPLE Ava Parker has been quietly blazing a trail to open the state’s only polytechnic university this summer in Lakeland.
From Metro Orlando, stretching across the center of Florida to Tampa Bay on the west coast to the Space Coast on the east, northward to Gainesville, southwest to Sarasota and south to Highlands—these 23 counties, interlocked and connected, comprise the Super Region. An economic engine revving up, the Super Region:
Florida leads the nation in the number of university research parks with an impressive nine. An innovation economy holds the future for the state, the country and the world.
TECH BEFORE THEME PARKS The history of UCF and the Central Florida Research Park.
RESEARCH PARK THOUGHT LEADER A self-professed member of the evangelical wing of the economic development party, Rick Weddle of the Orlando EDC shares his views. COVER PHOTO: MACBETH
APRIL | MAY 2014 • FORWARDFLORIDA.COM
20 14 M ED IA GU ID E
STRATEGIC PART NERS
CENTRAL FLO RIDA PARTNE RSHIP FLORIDA HIGH TEC TAMPA BAY PAR H CORRIDOR COUNCIL TNERSHIP
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COVER SMART IS THE NEW RICH
From Metro Orla center of Flor ndo, stretching across the ida to Tampa Bay on the wes to the Space Coa t coast Gainesville, sou st on the east, northward to thwest to Sar Highlands — asota and sou these th connected, com 23 counties, interlocked to and prise The Sup er Region.
is home to more than 90 colleges and universities; includes a high-tech corridor that generates $1 billion in economic impact; enjoys the largest cluster of theme parks in the world; boasts a multimodal transportation system that includes the iconic Kennedy Space Center and Orlando International and Tampa International airports, which move 52 million passengers annually; offers 72 miles of beaches on the Atlantic Ocean (Florida’s longest stretch) and pristine beaches on the Gulf, such as Clearwater and Siesta Key; and has five professional sports teams.
Add in culture and entertainment options and it is no surprise that the Super Region is attracting companies and new residents every day. In fact, the U.S. Census anticipates that in 2014 Florida will grow to 20 million residents and overtake New York as the third most populous state in the country. The Super Region’s three largest universities—the University of Florida, the University of Central Florida and the University of South Florida—anchor the Florida High Tech Corridor Council and have a combined economic impact of $16.8 billion. And with billions of dollars in research, along with successful university business incubators, entrepreneurship is thriving. Tampa Bay and Orlando, the Super Region’s two largest metro areas, combined account for a $269 billion gross regional product, representing the ninth largest U.S. economy and the 40th largest metropolitan economy in the world.
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Want to Make a Soft Landing in the U.S.? Thinking about taking advantage of all the great business opportunities in the United States, but worried about the costly and confusing challenges associated with testing a new market? The award-winning and internationally recognized UCF Business Incubation Program helps international firms, as well as domestic companies headquartered outside the region, quickly adapt and connect to Central Florida, one of the most thriving economic markets in the country.
The Soft Landing Program provides a flexible opportunity for companies worldwide to establish a local presence with services such as: • Office Space with Flexible Short-Term Leases • Domestic Market Research • Connections to the Central Florida Business Community • Access to Experts in Import/Export Law • Intellectual Property Protection Assistance • Assistance with Government documents and licenses • Access to Press Release Creation and Distribution
Begin your soft landing in Central Florida at Incubator.ucf.edu
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Logistics Center Open For Business The arrival of Cabana Bay Beach Resort at Universal Orlando is part of an impressive period of hotel expansion in Metro Orlando.
Reservations For Growth IT’S A NEW SEASON IN METRO ORLANDO. Make that Four Seasons—along with the Cabana Bay Beach Resort and others. A recent spate of activity has brought the construction of an additional 2,400 hotel rooms to the area and the potential of roughly 1,700 new jobs. The 444-room Four Seasons Orlando resort, located on Disney property, promises to help redefine the area’s luxury market through abundant amenities and personal service. The nostalgic Cabana Bay—themed for the 1950s and ‘60s and Universal Orlando's fourth resort—already has more than 600 hotel rooms in place with another 1,200 more on the way. Starwood Hotels & Resorts Worldwide Inc. announced plans to introduce its new Element brand in Central Florida,
scheduled to open as part of the redevelopment of Orlando Fashion Square in July 2015. The 151-room hotel will help drive mall revenue by accommodating travelers who like to shop and is located across the street from Orlando Executive Airport and just three miles from the city’s downtown business district. And, among other hotel talk, there’s the possibility of another new hotel far away from primary tourist attractions, adjacent to the University of Central Florida. The rationale behind the activity is that more choices for consumers creates more demand. Another impact: the encouragement of renovations. For example, with the announcement of the Four Seasons, upscale hotels like the Ritz-Carlton and JW Marriott at Grande Lakes Orlando are now in the midst of multiphase renovations.
And The Winner Is ...
THEN THERE WAS ONE. AMONG THE FOUR GROUPS VYING FOR THE REPORTED $2.1 billion I-4 Ultimate Project, I-4 Mobility Partners has emerged as the winner, with Skanska USA leading the way for a virtual who’s-who in such high-profile construction work. The Florida Department of Transportation selected the group as the Best Value Proposer for the public-private partnership project, which encompasses design, build, finance, operations and maintenance. Skanska and John Laing will handle equity investment and financing, while Skanska, Granite Construction Inc. and Lane Construction Corp. head up
APRIL | MAY 2014 • FORWARDFLORIDA.COM
I-4 Ultimate is designed to improve safety and mobility through the creation of Express Lanes along a 21-mile corridor of Interstate 4.
construction; HDR Inc. and Jacobs Engineering Group are in charge of design; and Infrastructure Corp. of America is
WITH APOLOGIES TO UPS AND ITS POPULAR TV COMMERCIALS, EVANSVILLE WESTERN Railway and its new intermodal terminal are “all about logistics.” The affiliate of CSX began operations at the Central Florida Intermodal Logistics Center in Winter Haven, which is designed to serve as a transportation, logistics and distribution hub for Orlando, Tampa and South Florida. The terminal contains five 3,000-foot loading tracks and two 10,000-foot arrival and departure tracks—enough to process an estimated 300,000 containers a year. In addition, the 318-acre facility is surrounded by 930 acres that are planned for development of up to 7.9 million square feet of warehouse distribution centers, light industrial and office facilities. Tech innovation and environmental awareness also will be integral components, with Tony Reck, chairman and CEO of Evansville Western Railway, calling the facility “one of the most technologically advanced facilities of its kind in the country.”
Winter Haven's new intermodal terminal features five 3,000-foot loading tracks and two 10,000-foot arrival and departure tracks.
tasked with operations and maintenance. Project specifics: reconstructing 15 major interchanges; constructing more than 145 bridges; adding four variable priced toll Express Lanes in the median; and completely rebuilding general use lanes along a 21-mile corridor. Work is expected to start in early 2015 with estimated completion in 2021. Can you say big deal? Says Karl Reichelt of Skanska: “In partnership with Florida DOT, our world-class team will deliver the best value solution to the Orlando region’s residents and businesses, and to the millions of international visitors to this globally popular destination.”
in case you missed it
Tourism On Steroids
USF St. Petersburg is among the state universities that will benefit from new legislative funding next year. The university has plans to construct a business school.
New Dollars to Spend for Higher Education THAT SOUND YOU HEARD DURING THE FINAL DAYS OF APRIL WAS THE COLLECTIVE SIGHS of relief from state university officials. At press time, legislators were still hammering out details of a $75 billion budget, but Florida universities were in line (almost literally) to share more than $250 million in state funding for building projects. Compared to the current year, universities can expect to gain an increase of nearly $83 million for construction projects next year, including $41 million from capital improvement fees that students pay. The funding includes $58 million for maintenance and renovation of existing buildings and $156 million to begin or complete construction of new buildings. Additionally, Florida’s 28 community colleges will have $108 million to slice, including $92 million for new construction. Among the most relieved in the Super Region is University of South Florida St. Petersburg, which stands to receive $8 million for a business school. That new money, plus last year’s $5 million, puts USF St. Petersburg almost halfway toward the projected construction price tag of $27.3 million. Construction could start this fall. Of course, the push for university funding around the state won’t stop. For example, while USF Health received $15 million for its Heart Health Institute, that represents only half the required funding—perhaps to come during the next legislative go-round.
THERE’S A SAYING IN SPORTS THAT “RECORDS ARE MADE TO be broken.” Add Florida tourism to the reference. Both the state of Florida and Orlando are spinning the turnstiles and breaking records faster than Major League Baseball did during the Steroid Era. Earlier this year, Visit Florida—the state’s official tourism marketing corporation—announced that nearly 95 million visitors came to Florida in 2013, an increase of 3.5 percent from 2012’s previous record mark. In early April, Visit Orlando made a bigger splash at the IPW (Pow Wow) international travel conference in Chicago with its own tally: 59 million visitors last year, setting an all-time record for U.S. destinations. The new milestone represents a 3 percent increase over the previous standard set two years ago. For Orlando, the tourism sector is in the midst of one its most significant expansion periods ever. Anchors Disney, Universal
Visit Orlando President/CEO George Aguel helps put the spotlight on Orlando, which established a new high mark among U.S. destinations for total annual visitors.
and SeaWorld each has signature upgrades underway. International Drive continues to reshape itself. And other attractions are stepping up in attempts to keep pace. Of all the numbers, this is most telling: Every 85 visitors to Florida equals one job in the state. That’s roughly 11,765 jobs directly tied to visitors—according to FORWARD Florida math.
Showtime THE PHASE “LIGHTS, CAMERA, ACTION” LIKELY wasn’t heard before the famed selfie was snapped, but the timing sure was appropriate for Florida’s film industry. Stetson University freshman Peter Nyong'o attended the 86th Academy Awards with Lupita Nyong'o, his sister who also happened to win Best Actress in a Supporting Role for her performance in “12 Years a Slave.” He then proceeded to join a starstudded cast for a random photo released by Ellen DeGeneres that drew global attention and crashed Twitter. That same night, Full Sail University in Winter Park received its usual bevy of Oscars. A total of 129 Full Sail grads worked on Oscar-nominated projects, with 30 working on winning films. At about that same time, moves were being made behind the scenes to bolster film production throughout the state. As part of a proposed bill (HB 983), Enterprise Florida—the state’s public-private business recruitment organization—would gain the lead role.
Bespeckled Peter Nyong'o joined a Hollywood photo for the ages. The region’s film industry is elbowing for a similarly prominent position.
The bill, which ultimately failed, sought a $1.2 billion film incentive package. And, while those scripts still were being written, Tampa Bay was prepping for Bollywood— the International Indian Film Academy’s annual celebration of the Indian film industry. Held in late April, Bollywood reached an estimated audience of 800 million spectators in more than 100 countries. Economic development on a global scale. Center stage for Central Florida’s film industry. Indeed.
etc. … | news, notes and commentary • I N NOVAT I V E R E SE A R C H I N G A I N E S V I L L E L E A D S T O N A SDAQ S Y M B OL •
Henry Marshall and Patricia Getchell, and scholarship donor Vince Amico. From innovative research in Gainesville to NASDAQ. APPLIED GENETIC TECHNOLOGIES CORP. has gone public, with all common stock being offered by the company under the symbol "AGTC." A clinical-stage biotechnology company, AGTC uses its proprietary gene therapy platform to develop products designed to treat patients with severe inherited orphan diseases in ophthalmology. AGTC's lead product candidates, which are each in the preclinical stage, focus on X-linked retinoschisis, achromatopsia and X-linked retinitis pigmentosa, rare diseases of the eye, caused by mutations in single genes.
Lockheed Martin plus Northrop Grumman and U.K. Longbow Apache choppers equal a multimilliondollar deal and a needed shot in the arm for the defense industry's employment strength in Orlando.
Something fishy going on in St. Petersburg? Mayor Rick Kriseman and city officials are mulling plans for the underutilized three-acre PORT OF ST. PETERSBURG, located south of the city. The site has been a source of much discussion during recent years, and there seems to be growing support for an educational focus. The one-terminal port is located close to the largest marine-science complex in the Southeast, home to the National Oceanic and Atmospheric Administration, the National Marine Fisheries Service and the Florida Institute of Oceanography. Marine science companies and local universities would like to showcase St. Petersburg’s thriving marine-science industry along with the research being done by the University of South Florida College of Marine Science. According to media reports, its dean, Jacqueline Dixon, has stated that a marine science hub could bring an economic boost with 800 employees. And it’s estimated the hub could bring in $30 million to the city. LOCKHEED MARTIN Missiles & Fire Control Orlando continues to win contracts for foreign arms. It has received more than $1 billion in such contracts during the past 18 months. Most recently, Lockheed Martin Corp.'s combat-helicopter venture with Northrop Grumman
APRIL | MAY 2014 • FORWARDFLORIDA.COM
Corp. signed a deal worth $96 million to support the United Kingdom's Longbow Apache chopper fleet. With U.S. government spending down, Lockheed Missiles projects its global revenue could reach nearly 40 percent in the next few years—helpful news for sustaining its local workforce. More good news: The company has been adding jobs in Orlando; it employs nearly 7,000 workers in Central Florida. THE NATIONAL CENTER FOR MODELING AND SIMULATION in Orlando inducted its inaugural Hall of Fame class—with a strong military presence. Among them: Rear Adm. Luis de Florez, who institutionalized synthetic training with the Navy during World War II; Richard C. Dehmel, a scientist who developed and implemented the first mathematical flight models for simulations; Ret. Gen. Paul Francis Gorman, who revolutionized Army training and the effective use of simulators; Ret. Gen. John P. Jumper, the 17th chief of staff for the Air Force who set distributed mission training policies for the Air Force; and Edwin Albert Link, the “father” of simulation technology and the inventor of the Link Trainer flight simulator. UCF also was well represented in the inaugural class: UCF President John C. Hitt, former U.S. Rep. Lou Frey, UCF alumni Albert
A $10,000 bachelor’s degree. Gov. Rick Scott asked for it, and, most recently, DAYTONA STATE COLLEGE has delivered. Beginning July 1, first-time-in-college students interested in pursuing one of Daytona State's seven baccalaureate degree tracks in education will be able to do so at a cost of $10,000. The saving is about $3,000 and less than half what it would cost at a school in the state university system of Florida. The move is part of a challenge by the governor and Legislature for the 28-school Florida college system to offer bachelor’s degrees at reduced costs. Daytona State’s plan uses fee waivers authorized by state statute to reduce the cost of upper-division courses for in-state residents attending college for the first time. The waivers are applied while students complete their final 30 credit hours, making the senior year of the program almost tuition free. OK, it’s the Hogwarts vs. the Seven Dwarfs. Not really because both train rides will help drive the region’s $50 billion tourism and hospitality industries. Yet, it’s a natural comparison as each debuts during the next few months. The Hogwarts Express train, connecting UNIVERSAL STUDIOS' Diagon Alley to Islands of Adventure's Hogsmeade Park, is part of an overall Diagon Alley expansion, including new stores, rides and other Harry Potter experiences. The Seven Dwarfs Mine Train tells the famed tale from the perspective of the dwarfs, taking riders on an indoor-andoutdoor trip, with side-to-side swaying
etc. … | news, notes and commentary • M E DIC A L R OB O T IC S C L I N IC I N C L E R MON T F I N D S GL OB A L A PPE A L •
New theme-park additions, like Disney’s Seven Dwarfs Mine Train, are helping to drive the region’s $50 billion tourism industry.
cars. Word is the coaster’s intensity will be somewhere between that of the MAGIC KINGDOM'S Barnstormer and Big Thunder Mountain Railroad. The UNIVERSITY OF FLORIDA has opened a 1,500-square-foot facility in Haiti to help in the battle against tuberculosis. The laboratory—built for less than $150,000 and located near Port-auPrince—will accommodate graduate students from outside Haiti to train Haitian technicians. Those techs will then work at the country’s national lab. Only three other TB labs exist in Haiti. According to the U.S. Centers for Disease Control and Prevention, Haiti has the highest rate of TB in the hemisphere, and nearly 40 percent of the people with TB go undiagnosed. Talk about a Tupperware party. Ground has been cleared to make way for TUPPERWARE BRANDS CORP.’S 427,000-square-foot shopping center, The Crossroads. The $60 million project consumes 68 acres and sits near the future Osceola Parkway SunRail commuter rail station, with the project intended for transit-oriented development when the station is expected to be operating in 2016.
Roughly 85 percent of the available space is committed by lease or letter of intent.
customized coaching, business education, mentorship and networking programs.
Label this as attention any school would want: In HILLSBOROUGH COUNTY, 98 schools are sharing $8.47 million in school recognition bonuses. The funds were awarded based on sustained high student academic performances and substantial improvements in reading, mathematics, science and writing since last year. Schools eligible for recognition awards included those receiving an "A" school grade, improving at least one letter grade from the previous year, or improving more than one letter grade and sustaining the improvement the following school year. Alternative schools were included in the program, funded by the Florida Lottery. (See Page 18.)
Expect more Merlin wizardry in the future. With less than a year to grand opening, MERLIN ENTERTAINMENTS PLC is gearing up to introduce three of its global brands to Central Florida with launches of The Orlando Eye, Madame Tussauds and SEA LIFE aquarium at I-Drive 360 on International Drive in Orlando. Merlin, the second largest visitor attraction operator in the world, already operates LEGOLAND® Florida. The Orlando Eye, for example, will be a little sister icon to London’s famous landmark, providing panoramic views in all directions within fully enclosed, air-conditioned glass capsules.
POPULOUS was the popular choice. The sports venue designer from Kansas City, Mo., was named the lead architect for Orlando City Soccer’s $84 million, 18,000seat Major League Soccer stadium downtown. Barton Malow Co., based in Southfield, Mich., is the construction manager, while stadium development specialist ICON Venue Group is the owner’s representative overseeing the project. The stadium is expected to break ground later this year with funding through a 50/50 public-private partnership. The club has agreed to cover any cost overruns associated with the project. The stadium will be operated by the City of Orlando. Beth Gitlin, director for the Women’s Business Center at the FLORIDA INSTITUTE OF TECHNOLOGY, has been awarded the Small Business Administration State of Florida Small Business Advocate of the Year. The award is presented to one individual in Florida who “assists entrepreneurs through advocacy and other efforts that raise the profile, Beth Gitlin effectiveness, health, vitality, growth, and/or expansion of small businesses.” The Women’s Business Center accelerates growth for female entrepreneurs by providing
At UF, big plans were met with an equally big gift—the largest in school history. Responding to UF’s aspiration to be one of the nation’s top 10 public universities and its business college’s goal to be among the best of its kind, entrepreneur and alumnus AL WARRINGTON IV and his wife, Judy, committed $75 million. The gift will make Warrington, for whom UF’s business college is named, the university’s first $100 million donor. Warrington, the first in his family to graduate from college, earned his degree there in 1958. Notably, Warrington started working at age 8, delivering newspapers in suburban Philadelphia, and worked his way through school with jobs that included cleaning fraternity houses. The Warringtons’ latest gift increases an endowment for business professors that supports curriculum development, research agendas and other activities that contribute to world-class research and teaching. The City of Clermont a global leader in robotic microsurgery? Just maybe. While people might not necessarily think of Lake County as a destination for medical tourism, the PUR CLINIC at South Lake Hospital is changing that perception. On a weekly basis, half a dozen patients from as far away as Australia and Cyprus visit the Clermont facility seeking the highly specialized urology treatments provided by Dr. Jamin Brahmbhatt and Dr. Sijo Parekattil. The two doctors are global pioneers in the field of robotic assisted microsurgery and have performed more than 1,000 such
etc. … | news, notes and commentary • W I N T E R SPR I NG S ' E X A M PLUS F L W I N S S TAT E E XC E L L E NC E AWA R D •
procedures at the PUR Clinic—reportedly more than any other center in the world— since it opened in December 2013. The doctors use the system in their work with male infertility, robotic vasectomy reversal and chronic groin pain. With the assistance of the robotic machine, which was originally designed by the military, the doctors are able to perform less invasive, more precise operations. File this under energy conservation and goodwill. GOODWILL INDUSTRIES OF CENTRAL FLORIDA and NovaSol Energy unveiled a 153.7-kW solar panel system installed on the roof of the nonprofit’s Waterford Lakes store. As part of Goodwill’s Made in America initiative, the 580-panel system was manufactured by Suniva in the U.S. and provides a sustainable energy source that meets an estimated 76 percent of the store’s annual electricity needs. Goodwill received a grant from Duke Energy to cover a portion of the $352,000 project. Orlando-based NovaSol Energy was the project’s developer. In 2017, TAMPA BAY will get a valuable opportunity—to host the Industrial Asset Management Council, a leading organization for corporate location site selectors. The Council has roughly 600 members, mostly in North America, and alternates its spring and fall forums to different cities annually. This would be the first time in 10 years that a Florida city has hosted the event; the most recent stop was in 2007 on
Amelia Island. During its 2013 strategic planning, the Tampa Hillsborough Economic Development Corp. made attracting the forum a priority. EDC sponsorship fundraising is underway. Pinehurst, N.C., will host this year, followed by Palm Springs, Calif., and New Orleans. Rising demand for pilots has prompted a partnership between SEMINOLE STATE COLLEGE and AEROSIM FLIGHT ACADEMY to offer Federal Aviation Administrationcertified graduates a seamless pathway toward a two-year Associate in Arts degree. Certified graduates from the academy are now eligible to earn 27 articulated credits toward an A.A. degree from Seminole State. Aside from pilot demand, the partnership was spurred by more international travel routes, new FAA mandates of 1,500 required flight hours and a strengthening global economy, according to officials. Originally established in 1989 and based at the Orlando Sanford International Airport, Aerosim is the only flight school originally owned and operated by airlines, Comair Airlines and Delta Air Lines. Winter Springs-based EXAM PLUS FL, which administers drug and alcohol testing programs for employers, sports, governmental and law enforcement agencies, was selected for the 2013 Florida Excellence Award by the U.S. Institute for Excellence in Commerce. USIEC recognizes achieved demonstrable success in companies’ local business
Tampa Bay receives another chance to shine during a big 2017 event for corporate site selectors.
APRIL | MAY 2014 • FORWARDFLORIDA.COM
environment and industry categories. Exam Plus FL, a client company of the UCF Business Incubation Program, is a member of the Drug and Alcohol Testing Industry Association and the Substance Abuse Program Administrators Association. Giving help to helpers. That pretty much sums up the story behind the launch of PROFESSIONAL EDUCATION CONSULTANTS LLC. Thanks to the Pasco Economic Development Council Inc.’s microloan program, the company—the 11th to be awarded a microloan—will open The Treehouse Village Early Learning Center in Hudson. PEC, an early education consulting group, assists daycares and preschools throughout Florida with accreditation, marketing, management team development, licensing, teacher training, profitability enhancement and remodeling of learning environments. Pasco’s microloan helps startups and small companies that may have never borrowed from a bank or haven’t been in business long enough to obtain traditional bank financing. With unique discoveries emerging, this is an exciting time for the development of new immunotherapies to fight cancer— and MOFFITT CANCER CENTER in Tampa remains at the forefront. Most recently, Moffitt initiated a phase-one clinical trial for a new immunotherapy drug (ID-G305). Immunotherapy is a treatment option that uses a person’s own immune system to fight cancer. It has several advantages over standard cancer therapies, including fewer side effects and an overall better tolerability. Orlando Mayor Buddy Dyer has announced the creation of a Digital Main Street program, similar to others in the past that unite small businesses in an area. This time, the Digital program doesn’t represent an area; the goal is foster a community that is “attractive to tech companies and allows entrepreneurs to put their mark on this community.” Orlando has partnered with leaders of the local tech industry to create an ORLANDO TECH ASSOCIATION, which already has a board of directors and has raised thousands of sponsorship dollars. Orlando is home to a growing technology cluster.
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county report |
super region at a glance
Mystery solved? Upon arrival, Project Magellan could bring 250 jobs to Brevard County this year and up to 1,800 high-paying jobs through 2020 along with $500 million in capital investment to Melbourne International Airport in real estate, equipment and furnishings over the next 14 years.
Magellan Landing At press time, Project Magellan had Brevard buzzing, but no one was talking.
BREVARD Project Magellan is the worst best-kept secret in Brevard County. A lot of people know at least something about an impending arrival, but the “who” remains a mystery (at press time). Officials are citing confidentiality on a deal that isn’t quite done—but could result in millions of dollars to the local economy. This much we know: The project has the potential to deliver up to 1,800 sixfigure jobs through 2020, including 250 jobs by year end, along with $500 million in capital investment to the airport. And the financial runway has been cleared for takeoff. In March, the Legislature needed mere minutes to approve $20.8 million in incentives. Then, Melbourne Airport Authority unanimously approved a lease arrangement with Space Florida that has Project Magellan constructing a
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216,000-square-foot building on airport property and renovating an existing building. Space Florida would actually sublease the property. A few other details have emerged. A master ground lease for an initial phase is in place for 20 acres with a term of 10 years plus additional lease options. A second phase of development would encompass another 11.6 acres. Intricate (and silent) negotiations with Project Magellan have involved, among others, the Florida Legislature, Space Florida, Brevard County, the City of Melbourne and the Melbourne Airport Authority. No one was talking ... yet. ATLAS AND DRAGON In April, Cape Canaveral once again found itself at the center of the spacecommercialization universe. On April 10, a United Launch Alliance Atlas V rocket blasted off from Space Launch Complex
41 on a classified flight to deliver the NROL-67 satellite into orbit for the U.S. National Reconnaissance Office. Eight days later, Falcon 9, carrying the SpaceX Dragon spacecraft, lifted off from Complex 40. During the mission, Dragon delivered nearly 5,000 pounds of cargo to the International Space Station, including equipment and more than 150 science experiments. MARS SURFACES A simulated Mars environment in Titusville? Maybe. 4Frontiers Corp., based in New Port Richey, has designs on creating Interspace Florida at Space Coast Regional Airport, where visitors can experience the surface of Mars in a 22,000-square-foot themed attraction. At present, NewSpace Center LLC, a subsidiary, is raising the funds needed to begin construction on phase one. Officials hope to begin construction on the “Red Planet” next year.
• The I-75 improvement projects in Pasco will support 400 jobs in Tampa Bay. •
THE RACE IS ON There’s no more waiting for the flag to come down on ONE DAYTONA. The planned retail/dining/entertainment complex, located directly across from Daytona International Speedway, waved in its first two anchor tenants through signed leases, Bass Pro Shops and Cobb Theatres. A joint venture between International Speedway Corp. and Jacoby Development, the project is intended to be anything but a pit stop. The $812 million plan calls for up to 1.4 million square feet of mix-used development, also including office, hotel and residential space, even parcels for research and development. Phase one contains 1.1 million square feet, with an early-2016 scheduled opening that would coincide with the anticipated finish of a $400 million renovation at the Speedway, Daytona Rising. Officials expect an economic windfall. Work on phase one will support more than 4,700 construction jobs, resulting in a total economic impact of $583 million to the region. Also, the project is projected to raise area property values and sales tax revenues. Not surprisingly, the City of Daytona Beach and county government contributed a combined nearly $45 million to help with infrastructure costs.
WIDENING OPPORTUNITIES Business in Pasco County received a substantial boost with the state’s approval of $128 million to advance two widening projects along Interstate 75. They hadn’t been scheduled to begin for five years. With the funding, work has started on a 7.8-mile stretch of I-75 just north of State Road 52 to the Pasco/Hernando County line. Also, at press time workers were getting ready to start on an additional 6.7-mile segment of the interstate, from north of County Road 54 to north of State Road 52. The projects are intended to accommodate current and future traffic growth in the area, create jobs, and enhance public safety and emergency evacuation.
ECONOMIC JOLT An expansion of Tampa Electric Co.'s Polk Power Station promises to put a charge into the county’s economy. Tabbed
A potential landmark, ONE DAYTONA plans to capitalize on the World's Most Famous Beach as well as its location at the doorstep of the third-largest consumer region in the U.S. with approximately 17 million people. City and county collaboration put the project on the fast track.
at $700 million, the work is designed to increase efficiency at the station's four natural gas power plants, ultimately generating enough to power more than 100,000 homes. The scheduled completion date is January 2017. TECO serves 69,000 customers in Auburndale, Eagle Lake, Lake Alfred, Mulberry, Polk City and Winter Haven.
SWINGING FOR SPORTS Lake County has added a new tool to attract events—a website dedicated to showing off its sports venues and facilities (sportsinlakefl.com). Developed in-house by the county’s Economic Development & Tourism Department, the website includes a searchable facilities guide and map; a calendar of sports-related events; resources for both visitors and event organizers including hotel, vendor and facility information; and a listing of local contacts. County officials hope to make hosting a sports event a "no-brainer."
Lake’s sports website is designed to tout facilities like Clermont’s National Training Center and the pro-level Hickory Point Beach sand volleyball complex that's coming soon.
leading points of view
FUNDING Financial incentives that drive behavior and reward success will elevate Florida’s universities to new heights. by
MARSHALL CRISER III
lorida universities are enormous drivers of economic growth, generating thousands of jobs and more patents than any other industry in the state. The potential for further impact is greater now than ever before with the leadership of Gov. Rick Scott and the introduction of performance funding by the Board of Governors, which oversees the State University System. For years, the private sector has used economic incentives to drive behavior and reward success. This approach will propel similar advancements throughout the University System.
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The Board’s cutting-edge performance funding model challenges universities to place more focus on individual student success and respond to the changing dynamics of Florida’s economy. It rewards universities based on 10 performance measurements, from average wages of recently graduated students to cost per undergraduate degree. Universities that fail to meet a minimum threshold of performance risk a portion of the existing budget, known as base funding. Performance funding, planned for implementation later this year, ties annual funding to outcomes and incentivizes university leadership to invest resources in areas that have a direct impact on
indicators of student success. One metric, which focuses on job placement, encourages universities to place a high priority on internships and professional mentoring, which prepare our students to connect their interests and skill sets with dynamic careers upon graduation. The University of South Florida is an excellent example of what is possible if universities take deliberate steps to improve, raising its graduation rate by 15 percent in five years. To reach its goal, USF recruited students with higher grade point averages and SAT scores, required freshmen to live on campus for a year, and installed computer tracking systems to monitor student progress. The Board’s performance funding model rewards USF for its improvement, and other institutions are considering similar changes. Our universities are among the best in the country. Combined, they add an annual $80 billion to Florida’s economy, generate 771,000 Florida-based jobs and make up 7 percent of the state’s GDP, according to the Board of Governors’ Economic Impact Study. Furthermore, our universities grow the state’s knowledge economy, attracting businesses, encouraging entrepreneurs and guaranteeing the state’s economic prosperity far into the future. One of the model’s metrics encourages degree production in high-demand areas, including science, technology, engineering and math. By generating graduates in these key areas, Florida has moved to the forefront in recruiting companies who seek a more educated and skilled workforce. Florida’s System is poised to grow even stronger. We are forging excellent relationships with business partners and elected leaders who are committed to job growth, and we are putting that synergy to work for our students. The governor and Legislature have challenged the System to raise the bar, to focus on the needs of Florida’s workforce and to make strategic investments that guarantee student success. Our universities have demonstrated they are up to that challenge. The Board is proud to be a national leader in this effort, which I know will yield enormous results for Florida’s economy and its students. editor’s note: marshall criser iii is the chancellor of florida’s state university system. [flbog.edu]
growing ideas into enterprises
'SPRING'ING INTO ACTION Stetson seeks to distinguish itself by focusing on the unique ecology of freshwater springs, which often shape water management and conservation policy.
Even with a long history of water conservation, Stetson University is poised to make its biggest splash through the use of research, teaching and a new institute. by RONALD WILLIAMSON
he lush, green, postcard-perfect campus of Stetson University in DeLand is hiding something. For many years, the luxuriant landscape of subtropical flowers, fronds and turf that surrounds stately residence halls and classroom buildings marked a community rich with generally imperceptible yet ardent water conservation initiatives. Millions of gallons of water are saved each year through widespread use of drought-tolerant plants, rainwater harvesting, efficient plumbing and energysaving water systems. Native trees, flowers, RESEARCH shrubs and ground covers need little or no irrigation and if they do, recycled water is used. Almost 100 percent of the campus is irrigated with reclaimed wastewater, which after hydrating the vegetation seeps through the sand to replenish the Florida aquifer, the state’s largest source of fresh water. And responsible stewardship of Florida’s water isn’t restricted to two campuses and two centers along the Interstate 4 corridor. The health of Central Florida wetlands and the springs that flow from the aquifer are improved
by students, faculty and staff in projects that remove invasive plants, restore native aquatics, and work to change and improve laws that harm the state’s fragile ecosystems that depend on water. Now, however, a more obvious and concerted initiative is taking shape that goes far beyond the university’s previous efforts. Stetson is moving out from behind the shade trees—and the timing couldn’t be better. Some experts flatly say Florida’s primary aquifer is endangered and, with it, life in Florida as we know it. “We have already damaged the aquifer,” says Clay Henderson, a Stetson alumnus and Orlando area environmental attorney. Springs are a window into our aquifer, he notes, adding they show signs of degradation in both flow and purity: “We have less water and it’s less pure.” Florida’s growing population is using more water than its abundant rainfall can replenish, cites Henderson, a member of the St. Johns River Alliance, a coalition of leaders within the river’s watershed. “This is simply not sustainable,” he asserts. Few disagree. Solutions and preventive measures have been debated for decades, sometimes on Stetson’s campuses. Now, the District
proposes to relieve pressure on the aquifer by pumping 150 million gallons a day from the river when needed, a course some say would spell disaster for what is called Florida’s American Heritage River. Enter a new initiative that promises to be Stetson’s most significant water initiative ever. Last fall, Stetson’s leaders looked seriously into the water crisis and concluded the university should—and will—step into the vanguard of its region’s water predicament and create an environmental institute to focus on water sustainability through research, interdisciplinary teaching and community engagement. A national search is underway to expand faculty expertise with specialists who will join the conversation to help sculpt the institute. Stetson's location is uniquely suited for the study of water issues, according to Karen Ryan, dean of the College of Arts and Sciences. She points to several nearby freshwater springs, the neighboring Atlantic shore and the St. Johns River, not to mention more than 1,500 square miles of conservation lands. Her hope is the institute will quickly develop into a distinctive center for interdisciplinary learning and research related to water-related issues: “It should advance policy development at the forefront of research, develop leadership for solving challenging environmental problems and demonstrate sustainability as a core university value.”
growing ideas into enterprises
feel as if it is happening right in front of you. A holographic 3-D TV is a feasible direction to accomplish this without the need for glasses.” ROBOTIC EXPLORATION FAIR GAME
One UCF researcher may be on the verge of bringing 3-D TV back from the brink of death.
Now playing: Back from the Dead, starring UCF’s Jayan Thomas as a breakthrough innovator who saves the day.
one are the goofy glasses required of existing sets. Instead, UCF Assistant Professor Jayan Thomas is working on creating the materials necessary to deliver a 3-D image that could be seen from 360 degrees with no extra equipment. His work is so far along the road to success that the National Science Foundation has given him a fiveyear, $400,000 grant to develop the materials needed to produce display screens. When 3-D TVs first came on the market in 2010, there was significant hype and the market for new sets was expected to take off. Several broadcasters even pledged to establish special channels for 3-D programming, including ESPN and the BBC. But in the past year, those broadcasters have canceled plans because sales have lagged and the general public simply hasn’t adopted the sets (citing expense and
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equipment bulkiness). Thomas’ approach would use new plastic composites developed through nanotechnology to make the 3-D image recording process exceedinglyfaster than currently available—eliminating the need for glasses. He and his colleagues have developed the specific plastic composite required to create the display screens necessary for effectively showing the 3-D images. “The TV screen should be like a table top,” says Thomas, who has joint appointments in the UCF NanoScience Technology Center, the Center for Research and Education in Optics and Lasers, and the College of Engineering and Computer Science. “People would sit around a table and watch the TV from all angles.. Therefore, the images should be like real-world objects. If you watch a football game on this 3-D TV, you would
Hidden details about the 1964-65 World’s Fair in New York are being brought to the surface by a UCF history professor whose first memory of the event came after most of it had been torn down. Lori Walters, who also serves as a researcher at UCF’s Institute for Simulation & Training, remembers being captivated when, as a small child growing up on Long Island, she would pass the New York Pavilion site in the family car. Now, Walters’ research interests focus largely on the 1950s and 1960s and the technological changes that occurred in that era. To help celebrate the 50th anniversary of the New York World’s Fair, Walters is preparing to debut a digital re-creation of the event, which she has directed for the past four years. In June she will visit the World’s Fair site with 50 to 60 middle school students from neighboring Nassau County to instruct them in a project that will use a toaster-sized FARO LiDAR scanner to record one of the few remaining structures, the New York State Pavilion. Also, she has joined the ranks of a growing and, thanks to online media, increasingly public group of scholars, archaeologists and mystery enthusiasts seeking to study what they believe are the remains of one of the Fair’s lesser-known attractions, the Underground House. The house was designed at a time during the Cold War when many Americans were worried about the potential for a nuclear attack. Walters’ plan is to explore the house
New robotic research puts UCF back in time.
using one of the tools IST is renowned for building: a small robotic device that could offer viewing through an endoscopic camera. She believes the structure was simply covered up after the upperlevel pavilion was torn down along with most of the other exhibits after the Fair closed in the fall of 1965. LCD RESEARCH SHINES
UCF optics Researcher Shin-Tson Wu is lighting the way again. Wu, among the university’s top patent generators as an innovator in liquid crystal displays, has been selected to receive the Esther Hoffman Beller Medal from The Optical Society for his broad and significant impact to academia and industry in photonics education. He has been an industry award recipient for the past several years. Wu and his Liquid Crystal Displays lab team conduct the research that is leading to increasingly lifelike flat-screen displays. Also, the Pegasus professor of optics at UCF has received nearly 80 U.S. patents for his work, both at UCF and at a research lab in California, and has been instrumental in the development of displays that are brighter, more energy efficient, and both bigger and smaller than ever.
“Dr. Wu is an extraordinary example of the influence one exceptional faculty members can have on an industry,” says Bahaa Saleh, dean of UCF’s College of Optics & Photonics. Saleh, who is also a recipient of the Esther Hoffman Beller Medal, said the international recognition such awards generate help the college continue to attract highly regarded faculty and talented students, which in turn generates funding and innovative technology.
Research Professor Gregory Welch will lead efforts in healthcare simulation.
Thanks to a $1 million grant, the UCF College of Nursing has established an endowed chair for health-care simulation. Research Professor Gregory Welch, a computer scientist and engineer, has been appointed to the chair. The Florida Hospital Endowed Chair for Healthcare Simulation will support the research and development of enhanced simulation technology to improve health care education. The endowed chair is the sixth established in the College of Nursing and the second that Florida Hospital has endowed at UCF. The tenured chair includes appointments to the UCF nursing faculty, the Institute for Simulation and Training
and the Department of Electrical Engineering and Computer Science. “We are grateful to our partner, Florida Hospital, for its great generosity,” says Mary Lou Sole, the College of Nursing’s interim dean. “This new endowed chair underscores the College of Nursing’s commitment to becoming a national leader in developing and testing innovative technologies to enhance nursing and health care education as well as patient care delivery. Ultimately, patient outcomes will be improved.” Welch expects the multidisciplinary nature of his appointment to allow him to generate collaboration among computer scientists and health care educators, practitioners and organizations. SOILEAU WINS EDC AWARD
Shin-Tson Wu, Pegasus professor of optics, (shown with students) has been honored for widespread achievement in photonics education.
The first leader of an internationally recognized research institute has been honored again. MJ Soileau, vice president for UCF’s Office of Research & Commercialization and inaugural director of UCF’s Center for Research and Education in Optics and Lasers (CREOL), received the “Chairman’s” Award from the Metro
Orlando Economic Development Commission on April 3. The award, part of the James B. Greene Annual Awards, honors longtime contributions to the Orlando EDC. Soileau arrived at UCF in 1987 and has served as a vice president since 1999. Under his leadership, research funding earned by UCF faculty members has increased to more than $100 million annually for each of the past nine years. UCF also has been recognized for ranking among the world’s top universities for patents earned by faculty members. Additionally, Soileau helped guide UCF’s Business Incubation Program since its founding in 1999. In 2013, the program was named as the National Incubator Network of the Year by the National Business Incubation Association. “MJ’s intelligence, tenacity and passion have helped our university grow into one of the nation’s major metropolitan research universities and, more importantly, have helped UCF make major contributions to the economic growth and diversity of the Central Florida region,” says President John C. Hitt.
growing ideas into enterprises
For one Florida Tech researcher, the study of breast cancer hits home, and an analysis of mathematical data enables her to do something about it.
Florida Institute of Technology assistant professor Munevver Subasi, left, and Roby Poteau, master’s student in operations research, look at the risk stratification of cancer patients. They are comparing the life expectancy of different diseases, including different types of cancer.
THE MATH 22
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The unfortunate truth is there are few degrees of separation when it comes to the average American and cancer. So many have dealt with the relentless disease personally or watched as family or friends waged their own battles. That includes Munevver Mine Subasi. An assistant professor in Florida Institute of Technology’s Department of Mathematical Sciences, Subasi’s involvement in a research project on breast cancer has both personal and professional connections. “I was motivated to get involved in breast cancer research during my post-graduate studies,” she says, noting an abundance of opportunities through several projects. “However, in observing the devastation of cancer in my own family and with close friends, I gained a better understanding about the impact of cancer research.” Subasi, who earned her Ph.D. in operations research from Rutgers University in 2008, counts a grandmother and a cousin as cancer survivors in her own family and saw two close friends lose their mothers to aggressive pancreatic and bone cancers in recent years. With a background as a mathematician, and a B.S. and M.S. in mathematics from Cukurova University in Adana, Turkey, Subasi was not initially intending to focus on cancer research specifically. Driven by a strong curiosity about the causes of disease in humans, however, she began to explore cancer biology. She credits Gyan Bhanot at Rutgers’ BioMaPS Institute as having helped her bridge the gap between mathematics and physical science. Subasi’s current project focuses on tamoxifen, a drug taken orally in tablet form, which has had intermittent success in the treatment of estrogen-positive (ER+) breast cancers. In some cases, tamoxifen has had tremendous impact, eliminating primary tumors while preventing long-term metastasis; in others, the drug has proven less effective or not effective at all. Through a rigorous analysis of microarray breast cancer data, Subasi aims to develop
Are Your Trade Secrets Escape Proof? mathematical tools to identify tamoxifen-resistance in individual patients. While clinical, molecular and genetic differences among the many subtypes of breast cancer have been identified, researchers have had difficulty predicting drug resistance and which patients are at greatest risk in each subtype. Subasi hopes her mathematical expertise will help her develop ways to mitigate the erratic performance of tamoxifen, identify new gene targets and suggest alternative therapies for
the most beneficial outcomes. “The successful results of this research are expected to lead to the discovery of novel biological information, improving breast cancer risk management,” she says. “Risk stratification would directly help clinicians to identify the patients most likely to have early disease recurrence who might benefit from more aggressive therapy. The proposed research activities [could then] be extended to the analysis of other human cancers."
Florida Tech's aviation training is reaching new heights.
Global Aviation Florida Tech is pioneering new partnerships aimed at enhancing its role as an international leader for flight training. The university’s flight training organization, FIT Aviation, has earned authorization from the European Aviation Safety Agency (EASA) to become the first Approved Training Organization (ATO) to achieve compliance under new European standards. Florida Tech is the first university in the U.S. with an independently approved EASA ATO certification. “This gives us the authority to provide flight training towards EASA pilot certificates and ratings,” says Ken Stackpoole, Florida Tech vice president for aviation programs. “This is important because the European airlines operating the European,
Middle East and Asiatic routes in many cases require EASA pilot certification to pilot their airliners.” Stackpoole said Airbus heard of Florida Tech’s progress towards gaining EASA ATO authorization and asked to visit the campus and flight training operation. The company and the university are working together to develop innovative training solutions for Airbus customers. “Florida Tech is pleased to be on the leading edge of these developments with EASA and Airbus,” comments Anthony J. Catanese, Florida Tech president and CEO. “We are excited to be a unifying force in the aviation industry, with the goal of offering the best aviation training programs possible to a range of clients from around the world.”
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GRAY MATTER MATTERS W FORWARDFLORIDA.COM
social entrepreneurship |
Social enterprise Funds2Orgs seeks to help nonprofits step up their fundraising—while improving economies all over the world.
he question is a fundamental one that pervades the world of nonprofit organizations: how to raise funds with limited time and resources? Published reports indicate the overwhelming majority of the more than 1.5 million nonprofit organizations registered in the U.S. are unable to sustain the revenues they need to carry out their missions. Compounding the challenge is the fact that fundraising can be an arduous and timeconsuming task.
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Haitian economics: Funds2Orgs, an Orlando-based As part of the company established in April 2013, offers fundraising an answer. Moreover, led by Wayne program, locals Elsey, a footwear executive turned social create secondary entrepreneur, Funds2Orgs promises to markets for the salvaged goods. This aid economies worldwide while also street vendor sells reducing post-consumer waste in U.S. refurbished sneakers landfills. And his request is not to simply in Haiti. take his word—but to kick the tires (then donate your shoes). Essentially, the company helps nonprofits raise funds by hosting fundraising events that collect gently worn used shoes. This year, the company is looking to expand collections to include clothing, purses, mattresses, cell phones and other electronic goods. Participating nonprofits are paid for what they collect, and the articles are distributed to support and sustain micro-enterprise ventures by low-income entrepreneurs in disadvantaged countries. Locals create secondary markets for the salvaged goods by selling them in places such as Haiti, Uganda and India. Such a micro-enterprise could entail a single table used to sell sneakers in an open marketplace or a street vendor peddling purses laid out on a blanket. Developed over the past decade, micro-enterprises have become a global movement affirmed by governments, business leaders, not-for-profits, researchers, social change advocates and others. The concept adheres to the old saying “Give a man a fish, he will eat for a day; give him a way to fish, and he will eat for a lifetime.” Elsey estimates the secondary market for the items sold by Funds2Org’s micro-enterprises can represent more than 80
“This business model removes the financial risk of event-based fundraising while making it as easy as possible to generate critically needed funds for our partner organizations.” — Wayne Elsey percent of commerce in developing countries like Haiti. Imagine your Nikes finding their way to Grand Goâve, where 90 percent of city structures were destroyed during Haiti’s 2010 earthquake? This is far from a short sale of candy bars and baked goods, Elsey asserts. "We help organizations create their own branded shoe drives, and we give ongoing consulting, marketing, public relations and event support materials like collection bags, and even coordinate, handle and pay for the shipping of collected goods,” he says. “This business model removes the financial risk of eventbased fundraising while making it as easy as possible to generate critically needed funds for our partner organizations.” The most recentFunds2Orgs Fundraising Challenge ended on March 1, and involved charity, school, church, nonprofit and civic groups across the U.S. Organizations received payments in exchange for shoes, with groups raising more than 7,500 pounds also receiving iPad Minis. Elsey points to a United Kingdom study that reveals women typically own 20 pair of shoes but only wear five. “If that statistic is correct, every woman could donate up to 15 pairs of shoes alone,” he notes.
Micro-enterprises have become a global movement affirmed by governments, business leaders and others. They often represent a large share of the commerce in developing countries.
Since April 2013, the average nonprofit is generating more than $5,600 in revenue per event through Funds2Orgs, he adds. For Elsey, the endeavor is a natural extension of his professional background. He began working in the footwear industry at 15 as a stock boy in a shoe store and advanced to fill a variety of executive roles. From 1999 to 2004, he was president/CEO of Footwear Specialties International, growing revenues by more than 400 percent. In 2005, he was named president of Kodiak-Terra USA, a footwear manufacturer in Texas. A year later, he founded Soles4Souls, a not-for-profit in Tennessee that to date has distributed more than 19 million pairs of shoes in 127 countries to victims of natural disasters and those living in abject poverty. Elsey recalls the 2004 TV images of devastation in and around the Indonesian island of Sumatra, where more than 250,000 lost their lives following an earthquake and subsequent tsunami. Among the scenes was a lone shoe washing ashore, “rocking his world” and spurring the creation of Soles4Souls. In 2012, Elsey moved to Orlando to launch Wayne Elsey Enterprises, a threetiered company that includes Funds2Orgs and works with both nonprofit and forprofit organizations on strategy, branding and development. “As the founder and former CEO of a vibrant nonprofit, the branding, educating and fundraising were painful challenges for myself and fellow nonprofit leaders,
keeping us up at night,” Elsey says. Funds2Orgs continues to evolve. Last April, Funds2Orgs introduced Mini, Flash and Mega shoe-drive fundraisers to better utilize various levels of fundraising efforts. The Mini drive, for example, enables organizations to generate roughly $1,000 for collecting approximately 2,500 pounds of shoes. Also, a new Micro-Enterprise Curriculum, available free of charge online, introduces students of all ages to micro-enterprises and the world of businesses. “Students uncover the basics of business and marketing, create their own business plans, learn how to create a budget, and discover how micro-enterprises are impacting the environment and their communities,” Elsey says. Each curriculum level has five modules: Basics of Business, Basics of Marketing, MicroEnterprise Fundamentals, Creating a Micro-Enterprise Business Plan and Finances. In addition, the first Funds2Orgs DEPOT in Haiti is opening in late 2014. Serving as a direct hub for micro-enterprise partners, the outlet will provide training and support for vendors to further fuel street-level operations and their overall local economies. “It is all about offering hope to those hurting with whatever mission a charity pursues,” Elsey concludes. “We want to go right alongside nonprofit leaders to increase their reach and exposure while creating opportunities abroad for people to lead better lives.”
SUNR SPINOFF Along with greater mobility, the arrival of commuter rail brings transit oriented development. SunRail’s Altamonte Springs Station offers a case study in preparation and opportunity.
FOR STARTERS, EXACTLY WHAT IS TRANSIT ORIENTED DEVELOPMENT? MIKE CARRAGHER: A TOD neigh-
Top: Jim Hall and Michael J. Carragher of VHB have been integral parts of SunRail’s development team for the nine years. Above: The Altamonte station is being designed to drive economic growth through walkable settings and sustainability.
While the debut of SunRail, Central Florida’s new commuter rail system, is grabbing headlines, there’s potentially a bigger economic impact in the form of transit oriented development (TOD) surrounding some of Phase 1’s 12 stations. Case in point: Altamonte Springs, where city officials have been working with Vanasse Hangen Brustlin Inc. (VHB) for the past several years to set the stage for residential, retail and commercial growth—all built around transit. Also notably, since 2005 VHB has been a key member of the SunRail team, providing a wide range of services from transit planning to stormwater design. Michael J. Carragher, VHB’s Southeast regional manager, and Jim Hall, VHB’s Florida director of planning and urban design, spell out the details on SunRail TOD.
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borhood typically has a center with a transit station or stop. TOD involves creating places where we all want to be, where we feel safe and where we feel healthy—all around transit. VHB is helping to restructure how projects are approached. It’s exciting, and it’s the way we see successful community development going. In terms of ROI, it depends on the location of the station. The downtown Orlando station is six acres, and the land value is there. For others, the land value is also there. But for Altamonte Springs, the land had moderate value. So there will be great increases in taxable values. Then you can put that money back into the neighborhood and into the TOD. You can build more and more infrastructure, which begets more development of the type you want, which generates taxes and raises revenues. It’s a great economic redevelopment tool. HOW DOES A STATION GET DEVELOPED—IN THIS CASE THE ALTAMONTE SPRINGS STATION? JIM HALL: There is no one recipe
for how the development starts. Typically, though, there needs to be a champion. It could be a land owner, or the champion could be the local government. For
Altamonte Springs, [city] officials wanted to use SunRail and all the nearby transit elements to really drive economic growth. A transit nexus can do that for a city—if you approach it in the proper means. WHAT ARE THE “PROPER MEANS”? HALL: There are really three
things to consider. First, the number of different types of transit, along with their frequency, dictates the density of what can be created. The more buses and trains at the stop, along with bicycles, and the more walkability that can be established, the denser the development can grow. Second, there has to be a commitment by the local government and the political will to develop something denser than typically occurs in Central Florida. The thinking can’t be “not in my backyard.” Third, it’s taking a peoplecentered approach to the planning, design and management of what you are building. The pedestrian becomes the guiding principle for design decision making, and the auto is relegated to a secondary role in design. But, what was great about Altamonte Springs was the city’s vision and thought process. City officials posed the question: How could this station become a center of urban economic and mobility activity? They city answered by looking at a quarter-mile radius
AIL Altamonte city officials have established a “catalyst site”—adding the infrastructure necessary to accommodate future growth.
around the station and carefully considered how to create a place that has connectivity to the transit station and a place where people would want to live, shop and have fun, and a place that would attract office development and urban retail development. The vision was to create a nexus of people and economic activity.
PHOTOS: THOMAS J. AQUILINA
providing that palette, if you will, for its vision to evolve. This will be a dramatic centerpiece for Altamonte Springs.
SO, WHILE THERE IS NO DEVELOPMENT NOW AT THE ALTAMONTE STATION, WHAT CAN PEOPLE EXPECT IN THAT QUARTERMILE RADIUS? HALL: Today, there are 400 parking spaces
and a concrete platform with a trellis roof and a bus station. The interesting thing is that area is the absolute best land for redevelopment—it’s right next to the SunRail station. Additionally, in the case of Altamonte Springs, to the east of the rail line is a fair amount of lower-valued vacant land. So the east side of the rail line offers a great opportunity for development. ... The city has stepped in as master developer and is adding urban streets, a park and a master stormwater system to accommodate future development. This sets up what is called a “catalyst site.” Now, there will be vacant affordable land that is ready for development. Developers will come in and think this makes all the sense in the world. We have finished the studies that identified the development standards, and the city has adopted them. This is a dramatic change. This is about employment; this is about offices with a minimum of six to eight stories. This is about being truly urban. CARRAGHER: What can people expect?
Just imagine if I get off at the Altamonte SunRail station and I’m on the platform scanning the area. I might see a streetside cafe in front of a six- to eight-story medical office building. If I walked three
HOW MUCH OF A CONCERN IS ENVIRONMENTAL SUSTAINABILITY WITH THIS KIND OF URBAN DEVELOPMENT? HALL: TOD is inherently sustainable
or four minutes, I would be in a park with a half-shell for concerts and fairs. And there’s a beautiful water feature. On the other side of the park, there are townhomes and a few more small retail shops. All of these things make me want to spend time in the area of the station. So, it’s no longer just a drop-off and pick-up site. It’s the nexus of activity mentioned earlier. WHAT IS THE TIMEFRAME FOR SUCH DEVELOPMENT? HALL : The VHB planning team is
designing the first phase of the infrastructure today. You could have development occur there probably not this year but certainly next year. CARRAGHER: The city staff is now revising
the comprehensive plan, which will likely be done in the summer. Also in the summer, the VHB planning team will refine the building code in this “downtown.” That should be complete near the end of the year. So, when developers come in, the comprehensive plan will be refined, and the codes will be updated. There will be roads plus a stormwater system and utilities will be in the ground. The local government is
because it’s not just predicated on the car and the suburban style of development. And as you go vertical, you’re incentivizing density and the outcome is more sustainable . ... It weaves together very nicely in that if you have TOD, sustainability just is part of the fabric. SIMILARLY, WHAT ABOUT THE IDEA OF HEALTHY COMMUNITIES IN TOD? CARRAGHER: One example of healthy
community planning, away from Altamonte Springs, is VHB’s work with the City of Orlando’s Parramore neighborhood comprehensive plan. The planning is predicated on addressing key issues and questions. We are asking residents to help answer this question: How do I live in an environment that has human social networks, is a pleasant place to be, and offers the opportunity to walk and bike to my transit station or place of business? Essentially, the redesign of the community will change life patterns for the residents and create a healthier setting. There is a whole social, cultural change. Working with residents and the city, the idea is to create connectivity into the urban core, into SunRail, into more recreational activities, into more shopping and into more healthy food opportunities. This creates a whole new vision for what a community can be.
Arts EDUCATION IN
Adding an 'A' to STEM studies.
istorically, scientists and engineers led the technological breakthroughs that drove domestic economic growth. Then, in the late 20th century, we saw new computer and information technologies changing the way we live and work, leading to today’s high-tech economy. These technologies help us solve problems we didn’t know we had through innovation. To maintain our global competitive advantage moving forward, we need science, technology, engineering and math (STEM) graduates … or do we? Well, actually, we need quite a bit more than that if we are truly going to compete on a global scale. Over the years we have continued to innovate our way through unforeseen opportunities, yet (to quote Steve Jobs) as we move ahead, “technology alone is not enough.” It was Mr. Jobs who said that it is technology—married with liberal arts and married with humanities—that yields us the results that make our heart sing. Jobs was clear that putting the "A" for arts into STEM, resulting in STEAM … was the way forward. Unfortunately, one of the byproducts of today’s innovation economy is decreased attention spans. We’re all used to receiving information at the speed of light and struggle to stay focused on tasks at hand. Today’s students are incredibly bright and will serve as the engine of our future high-tech economy, but inspiring that generation to pursue high-tech studies can be challenging. Yet it is proven that Mr. Jobs thought process was sound: Students become much more engaged in their STEM-related studies
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The thinking behind STEAM: Students become more engaged in their STEM-related studies when inspired through the arts, which could inpact the next generation of high-tech workers.
when inspired through the arts. In fall 2013, a team of Michigan State University researchers released an economic impact report that studied a group of MSU Honors College graduates who majored STEM disciplines. They found of that group, those who own businesses or patents received up to eight times more exposure to the arts as children than the general public. According to Edutopia.com, arts integration uses teaching practices that have been shown in brain-based research to improve comprehension and long-term retention. For example, when students create stories, pictures or other nonverbal expressions of the content they are learning—a process researchers call elaboration. They are also helping to better embed the information. Simply stated: Integration of the arts helps students learn and retain technical information. At Brevard Cultural Alliance, we are working with Central Florida schools to inspire local youth to engage in STEM studies in new and innovative ways by integrating the arts into their traditional
STEM-based curriculum. With the severe cuts to liberal arts education in our public school system, this has been a concerted effort on our part to direct state and federal funding specifically toward programs that embed fine artists into classrooms and integrate the arts into graded science and math curriculum in ways that engage students better than ever before. We hope these types of programs will serve as a best practice for other school districts to adopt similar strategies by engaging their local arts organizations in partnerships. The September 2013 Interbrand Report: “Every so often, a company changes our lives, not just with its products, but with its ethos. This is why, following Coca-Cola’s 13-year run at the top, Best Global Brands has a new No. 1, Apple.” Apple knew the winning combination: technology married with design equals economic impact. Let’s all take a lead from today’s most innovative company and embrace a shift in the way we approach STEM education. editor’s note: neil levine is executive director of the brevard cultural alliance in viera.
SERVICE NOW AVAILABLE SunRail is proud to provide FREE service to all riders from May 1–16, 2014
BENEFITS OF SUNRAIL
Leave the car at home and discover how much time and money you’ll save by using SunRail as your commuting alternative. With free parking at suburban stations, free on-board WiFi and AC power outlets, you’ll have more time to get an early start to your day.
SunRail is a commuter rail system designed to operate Monday through Friday only. During peak commuter hours, SunRail will run service every 30 minutes. During non-peak hours, SunRail will offer service every two hours. A complete listing of all train schedules can be found under Train Hours at SunRail.com
SunRail passengers will utilize a Tap-On/Tap-Off system that allows for a fast and efficient way to pay your fare and manage your SunCard account.
On May 1, 2014, SunRail will operate 12 stations:
Pricing begins at $2 per trip with a $1 up-charge every time you cross county lines. Discounts apply for round trip ticket purchases, stored-value programs, monthly and annual passes, as well as for seniors, students, children and ADA approved riders.
• Winter Park
• Florida Hospital Health Village
• Lake Mary
• LYNX Central Station
• Church Street
• Altamonte Springs
• Orlando Health/Amtrak
• Sand Lake Road
For more information visit SunRail.com
Trains Can’t Stop Quickly, But You Can.
Aerial view of the Central Florida Research Park, the largest in the state, adjacent to UCF.
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SMART RICH IS THE NEW
BY SUSAN REVELLO
Florida leads the nation in the number of university research parks with an impressive nine. An innovation economy holds the future for the state, the country and the world. W FORWARDFLORIDA.COM
If research is the heart of an innovation economy, then university research parks are how we measure its pulse. The universities and the park’s tenant companies supply the blood flow through a system of veins, all connected. The commercialization of the research translating into new companies and products entering the market—literally breathes life into the economy. A simplistic explanation for a complex concept. Partnership III is one of 59 buildings at the Central Florida Research Park. PHOTO: MACBETH
“Florida has more research parks than theme parks,” says Joe Wallace, executive director of the Central Florida Research Park in Orlando. He is correct. Actually, Florida has the most university research parks of any state in the country. There are nine university research parks located throughout Florida, and the Super Region is home to four of them. The Central Florida Research Park (CFRP) affiliated with the University of Central Florida is the largest in Florida located on 1,027 acres with 126 companies, 59 buildings and 10,000 employees. It is also the fourth largest in the nation based on number of companies and the oldest in Florida. If you were solving a puzzle, what would be the answer to the following clues: World War II; President John F. Kennedy’s speech in 1961 about landing a man on the moon; the Cuban missile crisis; military defense training; technology and Central Florida? The answer would be the history of the UCF and by extension its associated research park. (See sidebar on Page 36.) Dr. John Hitt has been president of UCF since 1992. Hitt made one of his top 5 goals of “partnership” official last September, when UCF trademarked the slogans, “America’s Partnership University” and “America’s Leading Partnership University.” “In the Central Florida Research Park adjacent to our campus, UCF shares three partnership buildings with military, modeling and simulation agencies, which form the cornerstone of our region’s $5 billion industry,” notes Hitt. “We are seeking state funding this year to begin planning for a fourth partnership building that would help the industry continue to grow.”
UNDER THE MICROSCOPE Austrian economist Joseph Schumpeter, author of the 1942 book “Capitalism, Socialism and Democracy” coined the term “creative destruction” and is widely viewed as the father of innovation economics. According to the Information Technology & Innovation Forum, innovation economics holds that it is innovation that drives growth and that the most important economic task for government is to promote productivity growth and innovation, even if
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Florida has more research parks than any other state with nine. Four of them are located in the Super Region.
such policies “distort” the market. While markets get it right some times, when it comes to spurring innovation and productivity, innovation economics holds that markets and price signals alone are not enough. Therefore, innovation economics holds that policies to help institutions (i.e., entrepreneurs, firms, industries, universities, regions and governments) to act in ways to increase innovation and productivity should be at the center of economic policy. Among other tools, this entails an array of public-private partnerships and public investments in the building blocks of innovation. As we emerge from the worst recession in the U.S., arguably since the Great Depression of the 1930s, the importance of an innovation-based economy has never been more evident. Knowledge is the new currency in today’s competitive business environment. Smart is the new rich. Entrepreneurs, thought leaders and researchers are today’s equivalent of industry captains of the early 1900s. A key difference is that potential revenue is a click away or an IPO, and overnight we have seen examples of startups generating millions and in some cases billions of dollars.
The Research Park Concept Universities, federal labs, non-profit R&D institutions
• • • •
Creation of new companies Flow of talent Exchange of ideas Access to labs and specialized equipment
Communities generating innovation, technology and knowledge
Growth of existing companies
Commercialization of intellectual Property Creation of new companies
Generation of Jobs and Income courtesy of a new report, "driving regional innovation and growth" prepared by battelle's technology partnership in partnership with the association of university research parks.
Protection of intellectual property has become so important it was center stage during President Obama’s trip to Asia in late April to promote the Trans-Pacific Partnership (TPP) free trade deal with 12 Pacific Rim countries. When IP rights are protected through a strong legal framework, companies are more confident in trading with and investing in those countries, which also increases exports and economic growth. Innovation knows no global boundaries. Rick Weddle, president and CEO of the Orlando Economic Development Commission, has invaluable insight into university research parks globally and here in the U.S. He headed the Research Triangle Park in North Carolina from 2004 through 2011 and is currently serving his final year as the first American president of the International Association of Science Parks and Areas of Innovation. (See Page 37.) “Because across the world there is a transition underway, we’re moving from contained spaces with research parks being purely geographical, to nodes of knowledge, where research parks are elements in the larger geography of innovation. … It’s not the dirt that makes the difference. It’s the things that happen on the dirt, and the people that dwell on the dirt, and the degrees of the interconnectivity between town and gown,” says Weddle.
COMPETITIVENESS (STEM) The U.S. is still lagging behind many other countries in our population’s science, technology, engineering and math (STEM) skills. While we are addressing this, we still have work to do.
The future of scientific research holds the key to a successful innovation economy.
Investment in STEM is increasingly seen as a method to help our economy and contribute to job growth, especially in the manufacturing sector. According to a report by the Information Technology & Innovation Foundation in 2010, the number of STEM graduates will have to increase by 20 to 30 percent by 2016 to meet the projected growth of the U.S. economy.
With that in mind the Legislature approved the state’s first polytechnic university. In August, Florida Polytechnic University is opening in Lakeland. The university will focus heavily on applied research. (See Page 44.)
Jerry D. Parrish, Ph.D., chief economist and executive director of the Center for Competitive Florida in Tallahassee, is bringing light to the issue in Florida. “What I’m trying to do is to show the people of Florida and the legislators all the components of an innovation economy that we need to keep going, so Florida can transfer to a high-wage economy and something that’s very diverse that will withstand the next recession we have,” he says.
“At UCF, we produce the third-largest number of STEM graduates in the state university system of Florida,” says Hitt. “For the first time in 2012-13, we awarded more than 1,000 bachelor’s degrees in engineering and computer science.”
Parrish is conducting several studies and writing about Florida’s innovation economy, including tech transfer, incubators, angel adventure capital, university research parks and commercializing research. The need for diversification and a highly skilled workforce was brought to the forefront during the state’s economic downturn. There is a need for STEM curriculums.
Patti Breedlove, director of the Sid Martin Biotechnology Incubator in Alachua, sees the economic impact up close. “Progress Park is more than an academic hub – it’s an economic powerhouse. The discoveries that research parks make are creating high wage, STEM jobs that propel Florida’s economy forward,” she says about the research park that houses her incubator.
“Some of my research shows that Florida had a much longer recession than just the U.S. The U.S. had a 19-month recession; Florida had a 35-month recession,” says Parrish. The tourism and real estate sectors were heavily impacted.
The $9 million research and development tax credit in Florida for the 2013 calendar year has been allocated. If the federal government authorizes the credit for 2014, taxpayers will be able to apply beginning on March 20, 2015.
What I’m trying to do is to show the people of Florida and the legislators all the components of an innovation economy that we need to keep going, so Florida can transfer to a high-wage economy and something that’s very diverse that will withstand the next recession we have.”
PROBING THE PARKS The youngest of Florida’s nine research parks is Florida Tech Research Park, which opened in April 2013. The director of the park is former astronaut, Capt. Winston Scott, the Florida Institute of Technology’s senior vice president for external relations and economic development. The Florida Tech Research Park, located within the Melbourne International Airport, represents the largest research, science and technology park located at an FAA-approved airport.
JERRY D. PARRISH | CENTER FOR COMPETITIVE FLORIDA
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We want every company that comes into the research park to consider themselves part of the university, even if they don’t license our technology. If they have their own technology that they brought, they are still going to consistently work with professors in the future and take interns from among our students. This is important for an ecosystem.” DR. PAUL SANBERG | USF'S SENIOR VICE PRESIDENT FOR RESEARCH AND INNOVATION
Global airports are an important asset to university research parks. “One of the things that I like to look at when I do an economic analysis is the number of direct flights,” Parrish says. “Certainly Orlando is ranked highly there, and Tampa as well. When you get more direct flights you have not only more innovation economy growth, you have more business relocation to that area.” The University of South Florida Research Park is part of the ninth largest public research university in the nation, located in the heart of Tampa’s “Innovation Zone” on the school’s campus. The USF Research Park is an important piece of the high-tech economic development mosaic for the Tampa Bay region. Its metropolitan setting, just minutes from interstate highways I-75, I-275, and I-4, is less than 15 minutes from Tampa International Airport. Dr. Paul Sanberg, USF’s senior vice president for research and innovation, describes the synergy at his facility and research parks overall. “They generally help to create a culture of innovation. And that’s true at USF. The research park is attached to the university. Every faculty member drives to the university and sees the research park.” He adds, “We want every company that comes into the research park to consider themselves part of the university, even if they don’t license our technology. If they have their own technology that they brought, they are still going to consistently work with professors in the future and take interns from among our students. This is important for an ecosystem.” Sanberg also pointed out that some faculty groups share a building at the research park with some companies.
Dr. Paul Sanberg (on left) talks with Randy Berridge, president of the Florida High Tech Corridor Council, and Hillsborough County Commissioner Mark Sharpe (right).
“There’s a synergy—a collision—between faculty and company people. These collisions can create new opportunities for research for the faculty and new opportunities of technology for the companies.” There is also a great deal of activity at the 204-acre Progress Park, located 20 minutes from the University of Florida campus. This private research park in the city of Alachua has been at the epicenter of a rapidly maturing, UF-related life science industry cluster. The Sid Martin Biotechnology Incubator was the recipient of three first-place international awards in 2013. An independent survey found that Sid Martin companies and graduates created 1,467 local jobs from 2004 to 2010 with a local economic impact of $100 million annually and more than $1 billion in funding in mergers and acquisitions. Meanwhile farther south, the Research Park at Florida Atlantic University is a separate and independent special district created by Palm Beach and Broward counties in 1985. Its purpose is to create and sustain the ideal environment for innovation and invention, maximizing the academic and entrepreneurial talent and regional resources in South Florida to accelerate economic development and prosperity. “The Research Park and the Technology Business Incubator bring community entrepreneurial talent to the university community, infusing their creativity into the educational process,” says Andrew Duffell, president and CEO. Florida’s university research parks are all unique with their structures, organizations and governance, but they share the same vision of connectivity, knowledge, innovation and a future full of promise driving economic development down a road we can only imagine. editor's note: at press time the legislature approved $8 million to begin designing a fourth partnership building in the cfrp, allowing for more growth for defense agencies located there.
TECH BEFORE THEME PARKS The history of UCF and the Central Florida Research Park
few years before Walter Elias Disney surreptiously bought huge tracts of land in Central Florida, another visionary had purchased 10 square miles of pasture and orange groves southwest of Orlando to expand his company and namesake, the Glenn L. Martin Co. An aviation pioneer, Martin started his company in 1912 in California. The Orlando operation was built in 1956-1958 for the Army’s Pershing tactical ballistic missile and later the Patriot defense missile. In 1961, it merged with the American-Marietta Corp., forming Martin Marietta Corp.
President John F. Kennedy and the space program, along with deep military roots in Central Florida, led to technology and simulation
During World War II the industries setting the stage for UCF and the CFRP. Orlando Airport (today Orlando Executive Airport) was taken over by the military. They built Eventually the synergy of military trainan auxiliary field, McCoy Air Force Base, ing and missile production and Cape 10 miles south of Orlando to train pilots. Canaveral’s space programs made it Orlando was swarming with military and clear the state needed a university to training operations. support these technical jobs. Florida Senate Bill No. 125 creating the new However, in 1965 the Air Force left university passed both the House and Central Florida and it was “Anchors the Senate in 1963. Aweigh”—the U.S. Navy arrived. Florida Technological University (FTU), In a political deal in 1966, Robert H.B. located halfway between Martin Baldwin, then Under Secretary of Marietta and the Kennedy Space Center, the Navy, announced that the City of opened in 1968. Its first program was in Orlando had been chosen as the site of computer science and engineering. the Navy’s newest and most modern training facility. The closed air force base Since FTU already had an established was renamed the Naval Training Center relationship with the Kennedy Space Orlando. Center and Martin Marietta (now Lockheed Martin), a natural fit was in the With President Kennedy’s goal of space field of simulation. FTU’s first president, travel and landing a man on the moon, Charles Millican, quickly saw the Navy and the advent of the Cold War, Central had many engineers and a connection Florida’s technical and aerospace induswas formed. The new university was tries were bustling. Martin Marietta was thrilled to task the needs of the Navy. pivoting out of aircraft and into guided missile, space exploration and space FTU got into simulation and trainutilization industries. ing rather rapidly. When the Navy
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arrived they brought engineers (hardware and software), technical writers, computer engineers and more. In the late 1970s, the FTU leadership, led by its second president, Trevor Colburn, decided to bring companies close to the campus and follow a model similar to the Research Triangle Park or Silicon Valley. The school had grown so large at that time that the name was changed to the University of Central Florida in December 1978. A large tract of land was purchased south of the campus and the Central Florida Research Park was formed in 1981. In an appropriate nod to the military that helped inspire the university, the Navy was approached to locate to the Research Park on a 40-acre parcel. The Navy accepted the deal and in 1988 they opened their doors as the third building. And with that, the whole Research Park came to life.
Much of RTP’s lasting success comes from what I call transgenerational legacy leadership. It involved academic, government and business leaders who were willing to commit and devote their full measure of energy, effort and resources to a task so big, so huge, they knew they would never see it finished in their lifetime. ORLANDO: A NEW CANVAS Orlando is certainly well known, but it’s poorly understood. I consider myself pretty knowledgeable about this business, and I had no idea of the depth and breadth and providence of Florida’s research community before coming here. Discovery and innovation are about doing something that hasn’t been done. That’s what appeals to me about Orlando, and it’s why I came to Florida. No one here says to me, “I can’t do that” or “it can’t be done here.” Good ideas are embraced, embedded and taken full advantage of to the benefit of the region.
RESEARCH PARK THOUGHT LEADER
resident and CEO of the Orlando Economic Development Commission, Rick Weddle served as president and CEO of the Research Triangle Park (RTP) in North Carolina for seven years immediately prior to his arrival at the Orlando EDC in 2011. He currently serves as the first American president of the International Association of Science Parks and Areas of Innovation. His 35 years of economic development experience have given him both regional and global perspectives. A self-professed member of the evangelical wing of the economic development party, he shares some of his views. RAGS TO RICHES In the mid- to late-1950s, North Carolina realized that it was suffering from a
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serious brain drain. The region was educating its children, but then they left for New York, Philadelphia and other cities for jobs after high school or college. Back then the Research Triangle (then known as Raleigh-Durham-Chapel Hill) was the poorest region in North Carolina per capita income and one of the two or three poorest in the Southeast. Today it is the richest region in North Carolina and boasts one of the largest concentrations of PhDs in the nation. When RTP started, they called the high-tech industry—new line industries. In 1959, 11 percent of the workforce was employed in this sector. Today, more than half of the workforce in RTP is in hightech sectors, and more than two-thirds of the high-tech employment in North Carolina is in the Research Triangle.
So when you look at Orlando, what you begin to see is a wholly networked innovation system. It is early in its development but correctly organized for the future. There is not an effort to contain everything in one location. Instead, you have universities embedded in 10 or so incubators around the region—embedded in Medical City, embedded in the Creative Village downtown. It isn’t so much about creating one central location; it’s about the connectivity of people and knowledge across this region. SUCCESSFUL RESEARCH PARKS First and foremost is a vision, a task, an objective—of such scale that it could in and of itself become an organizing principle for the region. Scale is necessary to be able to have a blended mix of large firms and small firms, and research institutes and academic endeavors together. It’s very important that a research park is sufficiently large to achieve scale. The role of universities and research is transformative, and people and institutions must be willing to embrace new ideas and ways of doing things. Medical City is a national example of this, because it is a willful, purposeful, deliberate effort to be transformational.
SITE SELECTION IN ACTION India-based Mindtree looked to the Southeast U.S. to expand its global presence. UF and Gainesville won. by Nathalie McCrate
Mindtree evaluated locations in South Carolina, Louisiana and Pennsylvania before selecting Gainesville. The move has been a boon to area graduates and has spurred growth in the city’s tech sector. Mindtree has announced plans to create 400 jobs over the next five years.
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t a time when many U.S. corporations are cutting labor costs by shipping tech jobs abroad, Mindtree Ltd. is expanding its American hiring and software development operations. The India-based global information technology company has 13,000 employees and a client list that includes industry giants like Microsoft, Unilever and Volvo. It has more than 200 clients and offices in 14 countries. The company, though, wanted a more pronounced U.S. presence. It chose Gainesville. “We have seen a large number of our customers interested in having some of their development work done here in the U.S., as opposed to overseas,” says Joelle Smith, general manager for Mindtree’s U.S. Delivery Center. “To get ahead of that curve, we wanted to make an investment in the U.S. ... and give our current customers [and new ones] the option to have this work done locally.” In 2012, Mindtree committed $2.92 million toward establishing its first major U.S. Delivery Center (USDC) in Gainesville’s Ayers Plaza just across the street from the University of Florida’s Innovation Hub. The IT product engineering company has pledged to create 400 jobs over the next five years. The primary drivers for the new USDC: quicker delivery time and improved data protection. The Florida center allows Mindtree to avoid the time zone difficulties that often plague offshore companies and serve its U.S. clients without delay. The center also enables the company to satisfy government security regulations that limit where some sensitive data can be located. Mindtree explored locations in South Carolina, Louisiana and Pennsylvania before tying the knot with Gainesville. Access to qualified engineering talent was a crucial element in the site selection process. “First and foremost, we wanted a large research university that had double-digit growth in its engineering department. And the University of Florida absolutely provides that,” Smith says. The university’s strong alliance with city and state groups, and its consistent commitment to economic growth, was the linchpin behind Mindtree’s decision to build there. “Some of the other areas had a couple of alliances ... but Gainesville was the only one, by far, to have all three [entities] aligned at every single level from the top down,” she says.
“Mindtree has not only made it possible for UF students to stay in the Gainesville area and pursue opportunities in IT, it has also helped open doors to other companies that will create even more opportunities for our graduates.” — Cammy Abernathy UF COLLEGE OF ENGINEERING
“No matter where we went, no matter who we spoke with, every single person had the same answer when they talked about Innovation Square and what we’re trying to do here: They all said they wanted to create jobs.” With nearly 150 new employees to date, Mindtree is right on schedule with their hiring plan. Notably, while some of their hires are recent college graduates, Mindtree has had success recruiting “bounce back” Gator alumni who want to move back to Gainesville for the opportunity. Unlike most universities, land-grant universities have a unique commitment to economic development, according to Cammy Abernathy, dean of the UF College of Engineering. “It’s part of our mission just as much as research and education are,” Abernathy says. “We’re very focused on blurring the lines between business and academia. “Mindtree has not only made it possible for UF students to stay in the Gainesville area and pursue opportunities in IT, it has also helped open doors to other companies that will create even more opportunities for our graduates.” The company’s move symbolizes a kind of renaissance for the Gainesville software sector. A few months after Mindtree’s 2012 decision, Mobiquity—a mobile solutions provider for business—chose Gainesville as its next expansion site, promising to create 260 jobs over the next three years. Technology firms IngagePatient, Azalea Health and Optym have followed suit and pledged to create more than 140 jobs cumulatively. “We’re beginning to build a cadre of talent,” Abernathy says. “I think this is the nucleus of something much bigger down the road. “Our graduates are among the most sought-after by industry, and over the past decade we’ve seen a huge jump in the number of jobs that our graduates have been able to find without leaving town.”
GAINESVILLE IS ON THE RISE.
“There’s a very positive, upbeat feeling in the community,” Abernathy concludes. “There’s a sense that this is a growing place with a strong upward trajectory. People want to be a part of that.” With the help of Mindtree, UF is “very focused” on blurring the lines between business and academia.
Dr. Judy Genshaft: "We are also very focused on connecting our research and innovation to economic development."
RICHES The University of South Florida, under the leadership of Dr. Judy Genshaft, continues to flourish. A host of accolades, high rankings and new initiatives tells the story.
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hen Dr. Judy Genshaft arrived as president of the University of South Florida in July 2000, she made no secret about her goal of going toe-to-toe with the nation’s best research universities. Done. USF is one of the nation’s top 73 “very high” public research
universities and ranked 43rd for research expenditures among all U.S. universities, public or private. In fiscal year 2013, it was awarded a university-record $413.6 million in research contracts and grants. Additionally, USF is one of only four Florida public universities classified by the Carnegie Foundation for the Advancement of Teaching in the top tier of research universities, a distinction attained by only 2.3 percent of all universities. (The other state institutions are University of Florida, University of Central Florida and Florida State University.) The focus on research hasn’t dimmed. As part of USF’s 2013-2018 Strategic Plan, “advancing research, innovation and sustainability” is high on the agenda. In turn, Genshaft wants USF to help “reignite the economy and provide a workforce that is adaptable, entrepreneurial and resilient.” She offers explanation:
WHAT IS YOUR BIGGEST INITIATIVE FOR 2014?
Actually, we have several major initiatives that are really exciting. We’re putting a major emphasis on the new Florida Center for Cybersecurity that is located at USF, which will very quickly create education and research programs to supply skilled professionals who will fight cybercrime, one of Florida’s biggest problems. We’ve also broken ground on our new USF Health Heart Institute, which combines advanced research and technology with the best cardiovascular care to benefit patients with heart disease, diabetes and stroke. We are hard at work at building a new College of Business at USF-St. Petersburg, and we’ve set a goal for ourselves to become the most veteran-friendly university in the nation. All of these efforts culminate in creating a cutting-edge, metropolitan research university that’s having a real impact on our region.
diversify our economy, and that means producing a highly skilled workforce that will allow our tech start-ups to thrive and attract companies to relocate to Florida. Our goal is still to produce a wellrounded student with critical thinking skills, a strong foundation in the humanities and knowledge of other cultures, but we also know that our students want to be competitive in growing fields and that demands world-class “STEMM” programs. As a research university, we’re putting a strong emphasis on undergraduate research so our students are gaining an edge in the “STEMM” fields through experiential learning, which makes them more competitive for internships, advanced degrees and landing that first job right out of college. We are also very focused on connecting our research and innovation to economic development; USF is in the top 15 in spinoff companies and in the top 25 in licenses and options.
WHAT ROLE DOES STEM PLAY IN THE FUTURE OF HIGHER
HOW IS YOUR UNIVERSITY ENGAGED WITH YOUR LOCAL
The knowledge economy demands a strong emphasis on science, technology, engineering and math, and I believe there should be one more “M”—for medicine. In the same way, the American space race put an emphasis on engineering and math, we should consider the challenges we are facing now or will in the near future. We know for our region to create a sustainable and resilient economy we have to
We are not only one of the largest employers in our region, but we have great partnerships with some of our leading industries, such as Raymond James, TechData, Nielsen, Jabil and in the health-care industry with our strong programs at USF Health. I’ve worked hard since I’ve been at USF for the past 14 years to build bridges with the private sector so we hear what our major employers want in new hires. They’ve told me they want students who have a global perspective and real-world experience, so we’ve emphasized practicums, co-op opportunities, international internships and study abroad programs. Companies such as Nielsen and the Tampa Bay Lightning are involved in our academic programs so that our students are gaining the skills they need to be ready to work the day after graduation. In fact, Nielsen even has an office here on campus where they are interacting with our students throughout their college careers. USF has been one of Nielsen’s deepest hiring pools. In recent years the majority of college-level hires at Nielsen’s Global Technology and Information Center in Tampa Bay—the company’s largest among 800 offices worldwide—have been USF grads. We’re eager to have those kinds of productive partnerships all over the region, which is why we also created a special portal for business to work with USF in meeting workforce needs (usf.edu/partner/).
EDUCATION IN FLORIDA?
COMMUNITY TO MEET ITS WORKFORCE NEEDS?
Successful conclusion of the first phase of the USF: Unstoppable campaign in June 2013 resulted in all students pictured receiving scholarships. PHOTO: AIMEE BLODGETT
WANTED: MORE JOBS, QUALIFIED WORKERS CareerSource Florida has undergone a rebranding and refined its role. The task: effectively identify needs, quickly fill positions and ultimately enhance economic competitiveness. by
This isn’t Albert Einstein's E=mc2 formula. But it does deal with space and time. Namely jobs. For a variety of industries, including STEM and other disciplines. Further, while Einstein’s famous theory of relativity took decades to evolve, the need for skilled workers and employment opportunities is here and now. You might say CareerSource Florida=jobs2. And then some. In February, Florida led the way
APRIL | MAY 2014 • FORWARDFLORIDA.COM
becoming the first state to achieve a unified brand and logo for all of its workforce development boards and career centers. The move was prompted by research that showed multiple names— Polk Works, Tampa Bay Workforce Alliance, Suncoast Workforce, et al.— resulted in confusion for both employers and job seekers. All are now under “CareerSource,” where brand alignment is designed to better connect businesses with job seekers and meet ever-increasing labor needs. That was the simple part. More difficult: Each of the state's 24
regional workforce organizations and nearly 100 career centers must deal with mounting pressures—immediate needs vs. filling the talent pipeline—as job expansion continues. And with that new economic growth they must almost predict the unknown of industry reconfigurations and new job discoveries that are “moving at the speed of thought.” So says Robin King, CEO of CareerSource Flagler/Volusia, whose office is coincidentally located a tire-iron toss from the Daytona International Speedway: “The more that our economic development partners are attracting new businesses, yes, there is urgency. “What occupations do we need to start training for now, based on the jobs being brought, and what have we heard that might be brought in? ... Jobs are being created that no one had thought of previously. There are no job descriptions for them.”
Pam Nabors agrees. The CEO of CareerSource Central Florida acknowledges the task isn’t easy by pointing to this paradox: While there are still unemployed workers in Metro Orlando, there are employers needing help. In order to address this issue, guardians of the region’s labor pool have turned to analytics. In partnership with the Florida High Tech Corridor Council, CareerSource offices in several Central Florida counties have recently wrapped up a talent/skills survey that included focus groups. “The survey is of businesses having difficulties filling and keeping positions,” says Nabors. Aside from technology, entertainment, hospitality, health care and financial sectors were included. Notably, a similar effort in Tampa Bay revealed important talent gaps in information technology and led to the creation of Grow Tampa Bay Tech. Initiatives now underway include the expansion of internship opportunities, an increase in technical training available for students, and practice labs that are integrating educational programs with business. Grow Tampa Bay Tech is part of the Tampa Bay Technology Forum, which helped to spearhead the survey, and provides a central point of contact. While analytics is a start, action is integral to any equation to bring about change, says Lisa Rice, president of CareerSource Brevard. Her example: The retirement of NASA’s Space Shuttle program set strategies in motion to both assist aerospace workers and their employers. “What we said when it all started was all hands on deck. Everything we can figure out to do, let’s give it a try,” says Rice, noting that continual industry shifts have only heightened the challenge. For the first time, CareerSource Brevard is focusing on training prospective entrepreneurs, changing the mindset from “find a job” to “create my job.” Also, a career progression specialist is helping workers cope with job loss. A class called Five Steps aids the long-term unemployed with their approach to the job search. A CareerSource presence at Patrick Air Force Base targets defense contractors who were suddenly out of work because of government sequestration. “One of the ways we’ve tried to approach this challenge is to think differently,” Rice says. CareerSource Flagler/Volusia is leveraging partnerships. King points to the CareerSource’s statewide rebranding as a catalyst. A less-bureaucratic approach now enables each regional board to create its own targeted list of employment focuses,
“This is not what some of us grew up with, where it was packaging and dirty. It is high tech; it is clean; it’s individuals finding solutions to problems that are out there.” — Robin King
| CAREERSOURCE FLAGLER/VOLUSIA
quickening response times in addressing local needs. Among her pressing initiatives is to prepare a workforce for an old industry that has become new: advanced manufacturing. “This is not what some of us grew up with, where it was packaging and dirty,” she says. “It is high tech; it is clean; it’s individuals finding solutions to problems that are out there.” A manufacturing academy for simulation training is in the works at Pine Ridge High School in Deltona. Daytona State College is another advanced-manufacturing partner. Also, entrepreneurs are being trained through a 10-session program called Startup Quest™. Trainees are unemployed and underemployed professionals and veterans with an interest in building a start-up business. Begun as a local pilot, the program expanded statewide in May 2013. Likewise, at CareerSource Central Florida, most training dollars are leveraged through partnerships to address immediate needs. Through the University of Central Florida, an eight-week paid internship is available to job seekers with experience in STEM. A partnership with Valencia and Lake-Sumter State colleges trains and certifies 911 dispatchers, along with students who specialize in digital forensic investigations. Another training partnership at Valencia targets advance manufacturing and computer numerical control. Through a Second Harvest Food Bank’s Culinary Arts program, participants prepare for jobs in the food industry. Satellite offices have been opened at local nonprofit organizations such as Harvest Time International and Goodwill Industries of Central Florida. At the same time, as with all CareerSource locales, attention is paid to the front end of the talent pipeline, Nabors cites. Her efforts range from raising the awareness in K-12 schools of under-publicized careers such as construction trades to internships intended to move youth from jobs to careers. There are other factors at play, as well, such as promoting helpful free services to businesses and the concern of workforce mobility across county borders. Notably, “belt buckle” Polk County is a case study on the issue of transit. In both the Tampa Bay and Metro Orlando job markets, Polk supplies the third most number of workers, essentially knotting the Super Region. Such labor mobility only adds complexity because transportation must also be considered. “Give me an issue and I can show you how it relates to workforce, because it absolutely does,” Rice concludes. It’s not rocket science. Or the theory of relativity. Yet, for labor pools to run deep, talent pipelines to overflow and the Super Region’s economy to reach new heights, the numbers must add up.
va Parker gets a C. Not for chief operating officer, but for calm, cool and confident. As the executive force behind Florida Polytechnic University, the state’s 12th public university, opening in August, she knows the clock is ticking. Actually the clock sits front and center in their current reception area in Lakeland. Its face reads 115 days to opening.
FLORIDA POLY AND
LADY IN PURPLE THE
Ava Parker has been quietly blazing a trail to open the state’s only polytechnic university this summer in Lakeland.
APRIL | MAY 2014 • FORWARDFLORIDA.COM
Parker, an attorney, was brought on by the board of trustees in December 2012 to basically organize the new university. “We have something called Poly Time, where we have a lot to do in a very short period of time. … We come together as a team,” says Parker. Her duties include overseeing construction of the campus, hiring faculty and recruiting students, with an eye toward achieving regional accreditation as early as possible. Having served on the Board of Governors since 2002, along with a previous seat on the University of Central Florida’s board of trustees, this native Floridian possesses a keen knowledge of higher education in the state. “I think that the cool thing about starting from scratch is we don’t have quite as many committees to put a decision through. ... Faculty can sit at the table and the whole process is streamlined.” Approved by the Legislature in 2012, the new school will be Florida’s only polytechnic university with a focus on STEM programs, specifically
“You know Florida Poly is a once-in-a-lifetime opportunity, and I think that I’ve been very fortunate to lead what I consider a historic effort, to really transform the economy of the state.” — Ava Parker Florida Poly’s $60 million IST Building, designed by famed architect Santiago Calatrava, is intended to set the stage for the culture of the institution: high-tech innovation.
technology and engineering. The reason behind the university is one of economic development. “The Legislature looked closely at our economy and what we need. The conversation involved placement of new companies and jobs. We are not retaining high-tech companies because we don’t have the workforce or the research to support them. And it’s from that conversation that we came out with this very unique model of an engineering and innovation technology institution,” Parker explains. Anyone looking for the status quo need not apply to Florida Poly. The university is unabashedly entrepreneurial. From its stunning $60 million Santiago Calatrava-designed Innovation, Science and Technology (IST) Building visible from Interstate 4, to its policy of multiyear contracts for faculty in lieu of tenure, the school is cutting edge. Students and faculty with creative, out-of-the-box thinking need apply. And for the first graduating class of 500, that means a full four-year scholarship for each student. Graduate students are not left out; they will receive full scholarships for their two-year programs. Parker is working with the school’s foundation for funding. Eventually the 172-acre campus will host about 5,000 students. And Parker emphasizes there is value in keeping the student-teacher ratio smaller. “We want to remain a small, high-tech focused institution.” “We are looking for students who are innovative, who are technology driven, who are entrepreneurial,” said Parker. She explained that the world famous Spanish architect who designed the 162,000-square-foot IST building really sets the stage for the culture of the institution. “It’s a wow building. I think it is helping us to really send a message about what we’re doing and what we are going to offer that is different for our students.” Florida Poly will offer six degree programs. The College of Innovation and Technology will offer bachelor of science degrees in advanced technology, computer science and information technology and science and technology management, in addition to a master of science in innovation and technology. The College of Engineering will offer bachelor of science degrees in computer engineering, electrical engineering and mechanical and industrial engineering with a master of science in engineering. To date they have received about 1,300 applications from faculty across the country for 55 positions and just recently announced the university’s first president, Dr. Randy Avent, who has been serving as associate vice chancellor of research development at North Carolina State University. Avent will assume his new position this summer.
The school’s history goes back to 1988 when it began as a satellite campus of the University of South Florida in Tampa and shared its grounds in Lakeland with Polk State College (then Polk Community College). Florida Sen. J.D. Alexander initiated a campaign for Florida Poly to become an independent university. On April 20, 2012, Gov. Rick Scott signed into law Alexander’s budget for the state university system, including a provision that created Florida Poly as an independent institution. The law took effect on July 1, 2012. “You know Florida Poly is a once-ina-lifetime opportunity, and I think that I’ve been very fortunate to lead what I consider a historic effort, to really transform the economy of the state. I really see it like that. … I was a former chair of the Board of Governors of the state university system and I am aware of how special our state system is and how unique each university is. But I think this is the time to do something and make a difference. I feel blessed to be a part of this experience, and I’m looking forward to opening the university and seeing the future we’ve envisioned unfold,” says Parker. Most of the university’s marketing has taken place online, a good place to find like-minded techies. The 5,000-squarefoot admissions building opened in December and purple hard hat (the school’s primary color is purple) tours are conducted regularly to showcase the rest of the campus under construction. In the midst of all the activity, a Chrysler Ram truck commercial was filmed there in late December in front of the striking IST structure and aired in February. A bemused Parker said, “They contacted us for their modern marvel theme. … Unfortunately a lot of people out of state have not figured out it is our institution.” Not for long. Come August Florida Poly will be ready for its close-up.
global pulse |
Crystal Clear Opportunities
A look at Florida's thriving international business climate.
he 2013 opening of Crystal Lagoons’ U.S. headquarters in Miami represents the next phase in the ongoing global expansion of the Chilean-based company founded by biochemist and real estate developer Fernando Fischman. This innovation company has developed and patented technology that allows for low-cost construction and maintenance of unlimited-sized bodies of water for recreational business, as well as industrial applications in closed-circuit cooling, water desalinization and mining. Designed to be self-cleaning, the lagoons use significantly less chemicals than traditional systems and only 2 percent of the energy required by conventional filtering technologies, making them very sustainable. Formed in 2007, the company is involved in 300 projects in more than 60 countries, including the U.S., Egypt, Jordan, the United Arab Emirates, Saudi Arabia, Indonesia, Singapore, Brazil and
APRIL | MAY 2014 • FORWARDFLORIDA.COM
Chile. Currently the company is unveiling eight mega projects in the Middle East and parts of northern Africa. The new projects include the Radmis Egypt lagoon and two major developments in Saudi Arabia. MOU SPELLS TRADE Port Tampa Bay’s trade ties with Latin America received a boost in April, when the CEOs of Florida’s largest port and the Colombian Port of Barranquilla signed a sister port memorandum of understanding in Tampa. The MOU strengthens the commercial relationship between the two ports by encouraging shared trade and marketing initiatives, technical expertise and best practices. The signing builds on the longstanding sister city relationship between the cities of Tampa and Barranquilla and follows up on the December 2012 Team Florida trade mission to Colombia led by Gov. Rick Scott, as well as a Tampa Hillsborough Economic Development Corp.-organized trade mission to Barranquilla led by Tampa Mayor Bob
The company's first lagoon in the San Alfonso del Mar community in Algarrobo, Chile.
Shanghai is very much in Florida's sights. China is the third largest trading partner of Florida. In 2013, China’s trade with Florida grew 7.9 percent to $9.65 billion.
Buckhorn. Located at the mouth of the Magdalena River, Barranquilla is the largest multipurpose port along Colombia’s Caribbean coast, handling a wide mix of cargo, including containers, dry bulk, liquid bulk and break bulk commodities such as steel. ... Panama Canal Authority CEO Jorge Quijano spoke at the University of Florida in late March as part of the UF Center for Latin American Studies’ 63rd Annual Conference, “Panama Considered: Remembering the Past, Embracing the Future.” It was his first public speech in Florida in more than a year. He confirmed work on the Panama Magazine staffer Nathalie McCrate Canal expansion was shares a smile with Jorge Quijano, the Panama Canal Authority's CEO and a new underway and that an FORWARD Florida "global ambassador." agreement with the consortium was reached regarding cost overruns. FORWARD Florida’s February issue cover story, “Ripple Effect,” detailed the significant impacts on Florida ports in the wake of the Panama Canal’s widening. ...
Orlando Mayor Buddy Dyer and representatives from Orlando International Airport conducted a trip to the Middle East in late April to meet with airline representatives in the United Arab Emirates and Turkey to discuss more international flights to Orlando. Along for the ride was Orlando City Soccer Club President Philip Rawlins. With play starting in 2015 for the new Major League Soccer League franchise, Orlando is anticipating even more international interest in the City Beautiful. ... According to the South China Morning Post, Florida’s strategic position as a gateway to Latin America is one of the factors attracting mainland Chinese and Hong Kong investors to buy real estate in Florida. Charlie Rosier, a director of Blackfish, a consultancy that helps Asian clients invest in U.S. properties, said Florida was a gateway to Latin America in the same way as Hong Kong was for mainland China: “As such, it is the thirdlargest wealth management center in the world after New York and London.” ... China is the third largest trading partner of Florida, after Brazil and Colombia. Last year, China’s trade with Florida grew 7.9 percent to $9.65 billion. Enterprise Florida, the economic development arm for the state, announced two new offices in China—in Hong Kong and Shanghai. ... Florida companies are reporting more than $60.5 million in total projected marine industry export sales through participation in three international trade shows: Cannes International Boat Show, METSTRADE (METS), Amsterdam and Dubai International Boat Show. Recreational boating had a $10.3 billion impact in Florida in 2012, more than any other state.
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expert tips and advice
EQUITY INVESTMENT While successfully moving from valuation to offers and sales is not a sure thing for early stage and startup companies, these five steps help clear the path. by ED ALEXANDER
The only way to achieve a high enough return on an investment in a startup (to compensate for the very high risk of failure) is through an equity investment or a hybrid debtLAW equity investment. So, how is an equity investment accomplished from a legal perspective? There are five distinct steps. STEP 1: VALUATION . First, an estimated value of the company for investment purposes must be established. This valuation methodology is focused on the key elements of any startup: gross margin and cash flow. Using this method, you’ll have a somewhat defensible position on how you’ve come up with a pre-money valuation for your company and a gauge on whether your company can raise outside money. Of course, this is subject to negotiation with the ultimate investors. In addition to the detailed method, there is a rule of thumb method (of course, best used for measuring thumbs) that states the first $1 million of investment in an early stage, pre-revenue company should purchase 33 to 40 percent of the company. If your number from the detailed valuation process is out of line with the rule of thumb, there has to be a “special factor” to show why your company is unique Usually this is due to the company already generating cash flow and customers. But be careful about your figure being too high. It’s just one more reason for an investor to reject your company. If, on the other hand, your valuation is too low (and you have to give up too much equity to raise the capital you need), it means your business model may not be able to support outside investment.
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STEP 2: CAPITALIZATION TABLE. After a value is established, a capitalization table is assembled. A capitalization table (or “cap” table) shows the ownership interests in the company over time in a snapshot format, starting with the founding and stepping through the various capital changes, showing the dilutive effects of each subsequent issue of equity by the company. The valuation is used to calculate how much equity must be issued to raise the desired amount of capital and the purchase price of each share (or other security). The cap table creates the game plan for the ownership structure of the entity as each amount of money is raised. STEP 3: TERMS SHEET. Next, a terms sheet is prepared, describing the investment based on the cap table. This step is optional, but it can be a good practice to avoid the cost of preparing the investment documents and either having no purchasers or having to revise them because of deal term changes. The terms sheet is used during discussions with potential investors and is intended to secure indications of interest and comments on the proposed arrangement. Because the securities laws (state and federal) govern the offer and sale of securities, the terms sheet isn’t actually an offer. There’s no obligation on either side. STEP 4: INVESTMENT DOCUMENTS.
Once the deal terms are fairly well established, the legal documents to complete the investment are prepared. These documents (as well as the offer and sale) must comply with federal and state securities laws.
First are the entity-related documents. If the startup was organized as a limited liability company, it will usually be converted into a corporation. If it is a corporation, the capital structure may have to be revised, and the governing documents and corporate housekeeping updated or revised. Changes to the capital structure can include increasing the number of authorized shares or creating a preferred class of stock. Then offering-related documents are prepared. They include the stock purchase agreement, private offering memorandum, investor questionnaire, shareholders agreement and the board of directors’ written consent for the sale. Finally, the documents to be filed, including an SEC Form D, are prepared and filed. STEP 5: OFFERS AND SALES. The last step involves the offers and sales of stock. The founders (usually without additional compensation) make offers and sell the stock to the investors. Investors sign the documents and submit checks for the purchase. For certain offerings, these are held in escrow until a minimum amount of capital has been raised. For others, the funds are immediately available to the company. When the sale is complete, the company issues a stock certificate to the investor as well as copies of the signed documents. Also, no later than the time of the first sale, a Form D is filed electronically with the SEC. editor’s note: ed alexander is founder of the entrepreneurship law firm, pl, in orlando and author of the book “10 common and costly business killing legal mistakes and how to avoid them.” [orlandobusinesslawyer.com]
An asset for all of Florida Simulation is state’s growth industry. Since the 1940s, when some of the earliest military flight simulators were developed in Central Florida, Metro Orlando has been center stage in the creation of simulation and training tools. Today the region hosts the largest concentration of industry and military simulation activity in the country: ■ 1,000+ companies ■ More than 27,000 direct jobs ■ Average salary of nearly $70,000 ■ Employment impact exceeds 60,000 jobs ■ Navy, Marine & Army Simulation Commands ■ World-renowned Institute for Simulation & Training at UCF ■ Annually home to I/ITSEC … the world’s leading simulation trade show
Metro Orlando … the World’s Epicenter of Modeling & Simulation
www.OrlandoSimulation.com Use of military photos does not imply or constitute endorsement by the U.S. Department of Defense.
legislative update |
policy making in action
undocumented student who is granted in-state tuition is still not eligible for state financial aid. Because the bill differs from the version originally passed by the House, representatives had to vote again on the bill. They passed it, 84-32, and sent it to Scott for his signature.
Bringing them to their feet: House members give a standing ovation to House Appropriations Chair Seth McKeel, R-Lakeland, after approval of the House budget proposal April 3, 2014.
DOWN TO THE WIRE
Key issues hung in the balance as the Legislature raced toward adjournment.
TUITION FOR THE UNDOCUMENTED. With two weeks left in the legislative session, a bill to grant in-state college tuition to many undocumented Florida students appeared all but dead in the Senate. As the session drew to a close, the bill was set to become law. What changed? First, the bill’s Senate Sponsor—Jack Latvala, R-Clearwater –found a way around Appropriations Committee Chairman Joe Negron’s attempts to block the bill from having a hearing, allowing Latvala to bring the measure straight to the Senate floor. Second, the bill picked up endorsements from Gov. Rick Scott and former governors Jeb Bush and Bob Martinez. Finally, an increasing number of educators have been clamoring for it. All supporters say a college education will allow these students to make a significant contribution to the state’s economy. As a result, the measure (H.B. 851) passed the Senate on the session’s next-to-last day by
APRIL | MAY 2014 • FORWARDFLORIDA.COM
At issue: whether to charge in-state tuition to the children of Florida's illegal immigrants.
a 26-13 margin. The Senate version of the bill differs in some regards from the version that passed the House earlier in the year, but it does contain some key restrictions on undocumented students receiving in-state tuition: the students must have attended a Florida high school for three consecutive years before graduation and apply for college within two years of graduation. Additionally, an
RECONCILING THE BUDGET. Immediately after Easter, the House and Senate began the process of reconciling their respective versions of Florida’s $75 billion budget for 2013-14. The House budget is $412 million higher than the Senate bill. The biggest difference between the two is in education, where the House provided $362 million more than the Senate. According to Florida TaxWatch, the roughly $19 billion proposed by both chambers for the Florida Education Finance System–which funds K-12 public schools–is a new record for the state. However, the organization points out that both versions of the budget call for more than $6,900 in per-student spending, below the record $7,126 spent in 2008. Other significant differences between the two chambers is in Environment and Transportation, where the House has proposed $204 million more than the Senate and General Government, where the Senate bill calls for $111 million more than the House. Despite the differences, the Legislature reached a budget agreement before the end of the session. (See Page 11 .) MEDICAID EXPANSION. The Florida Legislature again decided not to expand Medicaid eligibility, an option available to states under the Affordable Care Act (aka “Obamacare”). Scott supports expansion and the state Senate approved it last year, but most House Republicans are opposed because of the potential long-term financial exposure. U.S. Sen. Bill Nelson (D) did step into the fray with a proposal to utilize local tax dollars to pay for the expansion. The proposal failed to
• Lawmakers in Washington already are jockeying for post-election political advantage. •
HOUSE BUDGET VOTE. As expected, the fiscal détente that has prevailed in Washington has begun to erode as the November elections approach, and lawmakers already have been jockeying for post-election political advantage. A clear sign of the coming battle was the early April House vote on an FY 2015 budget resolution. The measure passed, 219-205, and the vote predictably was along party lines, with no Democrats supporting the resolution and only eight Republicans voting against it. One of those eight was newly elected Rep. David Jolly, R-Indian Shores, who said he was keeping a campaign promise to protect Medicare. Otherwise, all Super Region Republicans voted for the budget and all Democrats against. Medicaid expansion failed again in the Legislature, but the state's Medicaid costs are sure to rise.
sway the Legislature in the near-term, but some medical professionals have lauded the senator for re-opening the debate. Regardless, the state’s Medicaid costs will increase anyway. The Center for Medicare and Medicaid Services recently reported that Florida’s Medicaid enrollment grew by 8.2 percent in February, the largest jump of any state that did not expand the program. STRIKING AT COMMON CORE. The Legislature has passed a bill that could weaken the controversial Common Core educational standards in the state. Sort of. The legislation, S. 864 by Sen. Alan Hayes, R-Umatilla, originally would have declared that local school boards have a constitutional duty to select the educational materials. The House revised the measure and it still allows school districts to decide whether they want to choose their own textbooks, but they now must have a public hearing first. While clearly a swipe at Common Core, the bill still requires the material selected to comply with state standards, and local boards may not have sufficient resources to review all materials. The battle against Common Core opened a second front in March, when opponents attacked the Florida Department of Education’s decision to hire the American Institute for Research (AIR) to create new accountability tests to measure students’ progress in meeting state standards. State Education
Commissioner Pam Stewart is standing behind AIR. MEDICAL TOURISM. Visit Florida for the … hospitals? At least two legislators think that’s the next big wave in the state’s massive tourism industry. Sen. Aaron Bean, R-Fernandina Beach, and Rep. Patrick Rooney, R-West Palm Beach, introduced bills authorizing Enterprise Florida and the Department of Economic Opportunity (DEO) to spend $5 million annually for four years to promote the state’s health care system. Bean hoped to bring 100 million medical tourists to the state annually, to benefit from Florida’s health care system and also enjoy the other tourist amenities. Bean’s bill passed the Senate unanimously, but Rooney's bill died in the House.
RECESS BLUES. Congress took its usual two-week Easter/Passover recess, and– unable to make news in Washington–legislators worked hard to make news back home. Most of what happened during the recess were the bread-and-butter events of retail politics: town hall meetings, chamber of commerce events, parades and congratulatory tweets to local arts contest winners. There was even the ultimate recess weapon: the congressional field hearing. In this case, it was the Senate Commerce Subcommittee on Science and Space, and the field hearing was in Miami on Earth Day. Citing what the subcommittee said is a five-to-eight-inch rise in coastal sea levels during the last 50 years, the hearing’s subject was climate change’s impact on Florida tourism and insurance industries. The hearing chairman? Florida’s own Sen. Nelson. All in all, a textbook congressional recess. A healthy investment in medical tourism? One Florida legislator hoped to attract 100 million medical tourists to the state annually by promoting the health care system.
your personal bottom line
EMERGENCY ROOM VS. URGENT CARE
How to save time and money when a medical emergency strikes—for you or your employees. Medical emergencies can happen without warning—anytime, anywhere and to anyone. But have you ever thought about where you should go in the case of such an emergency? What type of facility can treat you and your loved ones (or your employees) the fastest based upon your condition? An emergency room can certainly take care of most issues that may arise. But is the ER always necessary? Is there a more costeffective alternative?
The truth is that options do exist when it comes to getting treatment for medical emergencies. If you formulate an emergency plan, you can save valuable time and money later. What does a medical emergency plan look like? Three simple steps can help get the care you need, when you need it most. One: Know where to go. Two: Know what to expect when you get there. Three: Be prepared.
STEP KNOW WHERE TO GO.
Identifying the right medical facility for what ails you is perhaps the most important step to getting the emergency care you need. You can choose an ER or an urgent care facility depending on the type of care you require. ERs are specifically designed for serious medical conditions or symptoms caused by an injury, sickness or mental illness that arise suddenly and require immediate care and treatment to avoid death or disability. By contrast, minor cuts, breaks, sprains, colds and the like can ideally be treated at an urgent care facility and are often faster and less costly. Quality is key when it comes to choosing emergency care. Look for experienced, compassionate care backed by the highest quality hospital network in your area.
STEP KNOW WHAT TO EXPECT.
Once you arrive at the emergency care facility of your choice, you will immediately begin a triage evaluation whereby a registered nurse (RN) performs a quick assessment of your medical condition. During triage, the RN will request some general information about who you are and the main reason for your visit. Your vital signs (blood pressure, temperature, etc.) will be checked, and the seriousness of your condition will be determined so that proper treatment can be administered.
BE PREPARED. Medical emergencies can be very stressful for everyone involved. In order to alleviate stress and expedite treatment, it’s important to have a few vital pieces of personal information handy at all times. Aside from your insurance card and photo identification, it’s a great idea to create a medical information card for yourself and your loved ones. This card should include your name, the telephone number of your primary care physician, a list of medications you are currently taking and a list of any drug allergies you have. You can go a step further by including advanced directives such as a living will, do-not-resuscitate orders and power of attorney documents. Today, high-tech mobile apps exist as well, that can help you determine wait times, locations, directions and what type of facility is best for your emergency condition. Check your mobile device and “know before you go.” Now that you know the ins and outs of emergency care, you’re ready to save valuable time and money when a medical emergency strikes.
APRIL | MAY 2014 • FORWARDFLORIDA.COM
COMMON REASONS TO VISIT AN ER Heart attack Stroke Chest pain Difficulty breathing Compound fractures (bone visible) Ingestion of poisons Major head injuries Major trauma Seizures Severe burns Shock Snake bites Uncontrollable bleeding
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keeping score |
business of sports
According to a recent study, Florida sports net $44.4 billion in total economic output—3.5 percent of the Gross State Product.
BUCS’ NEW UNIS. Give this to the
Pro and college sports statewide pale in comparison to the economic impact of golf and other activities.
SPORTS’ ECONOMIC IMPACT GROWS. John Webb has proven
quite the forecaster. When asked last year about the $36 billion economic impact that sports and recreation has on the state’s economy, the president of the Florida Sports Foundation noted the figure was based on a 2005 study and predicted a new study would show a significant increase in that impact. “It’s probably about 20 percent higher,” Webb said in late November. “It’s a long process on gathering a bunch of information ... but it’s a big impact and it brings in a lot of visitors.” The study he was referring to was released in March, and it showed a total economic output of $44.4 billion—a 23 percent increase from the most recent estimate. “This state has the advantage of being able to host sports events on a year-round basis and with the professional efforts of the 26 sports commissions, there’s not a day during the year when a sporting event can’t be held,” said Webb. That economic activity represents 3.5 percent of the Gross State Product (GSP), more than 430,000 jobs and more than $16 billion in labor income. The report also found the 26 sports commissions hosted more than 2,500 events that attracted 3.1 million sports tourists. While professional and college sports grab the most headlines, their combined impact (10 percent of the total) is surpassed by golf (32.9 percent) and fishing, hunting and other wildlife activities (23.1 percent). Those two are bringing more than 4.3 million visitors to the state annually, compared to about 3 million for professional and college sports. Last year, Webb noted the impact of amateur sports, with the latest figures anything but amateurish: a total economic output of $5.4 billion (including more than 4.3 million visitors). And 75.8 percent of amateur sports’ contribution to the GSP came from events sponsored by the various sports commissions.
APRIL | MAY 2014 • FORWARDFLORIDA.COM
Tampa Bay Buccaneers—the team isn’t afraid of living on football fashion’s cutting edge. When they debuted in 1976, the Bucs had a flamboyant pirate helmet logo (nicknamed “Bucco Bruce”) and orange jerseys likened by many to a “creamsicle.” Tired of a look some derided as inappropriate for football, the team in 1997 ditched the orange jerseys for red, toughened up the helmet logo with an Oakland-esque skull and crossed swords and introduced pewter helmets and pants to the NFL. The style held for 17 seasons, but in March the team unveiled an updated look. The makeover is less radical than the one in 1997, but the team is showing us that pewter has more than one shade (who knew?), a helmet logo can never be too big and even the toughest pirate is secure enough for a little creamsicle in his wardrobe. Featuring a logo unchanged but much larger, a new shade of pewter that borders on charcoal, a chrome facemask and jerseys with pewter-and-orange shoulder yokes, the team is updating for the future while honoring the past. That may be, but the Bucs and the NFL also are looking to the bottom line. Merchandise sales are big business, generating more than $2 billion in annual revenue and contributing almost $40 million to each team’s income. Since all merchandising profits are distributed equally among all 32 teams, it is in the entire league’s interest for teams lagging in sales (the Bucs are not in the current top 10) to make uniform changes that might boost revenue. So, how will the new uniforms go over with the fans? For an appraisal, we turned to Paul Lukas’ influential
At left: The Bucs' new look, unveiled in March, could translate into greater merchandise sales, although there is no assurance of full fan acceptance. Above: Prospective sites for Miami's new downtown soccer stadium near PortMiami are still being kicked around by team and local officials.
officials in early April, and the superstar may need extra time to bring the project to fruition. On April 7, Miami-Dade commissioners declined PortMiami’s plan to relocate a fuel spill facility, a step necessary for construction of the new stadium. Three days later, the Miami Downtown Development Authority offered its support for building the stadium on the port’s Dodge Island. That support came with a caveat: Beckham and his investors must privately finance refurbishing of an existing drawbridge to help facilitate traffic to the park. The odds of a solution remain favorable since Beckham’s franchise is contingent on a stadium deal, and MLS is pressing hard to re-establish a presence in the Southeast after the Miami and Tampa Bay franchises folded in 2001. Orlando City SC is set to begin play in 2015, and Atlanta recently was awarded a new franchise, coming in 2017. Miami remains the only one of the trio without a stadium deal. Orlando City opens play at the Citrus Bowl, and its new stadium may be complete before the inaugural season concludes. The Atlanta franchise will share the NFL Falcons’ new stadium, though it may play one season in the Georgia Dome. Even New York City FC, also debuting in 2015, appears close to a deal to play in Yankee Stadium until a permanent facility is built. GAMING’S FUTURE. The future of gaming in Florida is a sure bet, but even
While David Beckham was a global superstar on the field, his efforts to build a Major League Soccer stadium at PortMiami are testing his political skill.
“Uni Watch” at espn.com. Lukas gave a mixed grade, awarding high marks for the chrome face mask (“very, very good”), the shoulder yokes on the white jerseys and the contrasting patches on the left and right sleeves. He was less thrilled about the enlarged helmet logo (“much too big”), the new shade of pewter and the uniform number font. MIAMI SOCCER’S NEW HOME. David Beckham’s
efforts to build a Major League Soccer stadium at PortMiami played to a draw with South Florida
the most daring gambler might think twice before wagering on exactly what that future will look like. For a time, it looked like gaming expansion would be linked to a phase out of greyhound racing. Legislation passed unanimously by the Senate Gaming Committee would have allowed tracks to operate gaming rooms without live racing. The bill was backed by animal rights groups but private gaming interests believed it could have allowed dormant racing permits to be revived and given some tracks advantages over others. Greyhound racing’s popularity in Florida has declined, despite having the most active tracks in the country, to the point where it costs the state $3 million more annually to regulate the industry than it receives in tax revenues. All eyes are now fixed on negotiations between Gov. Rick Scott and the Seminole Tribe over the gambling compact that has governed the tribe’s gaming operations for years. A central question is whether the compact will remain unchanged or whether some enhanced operations will be allowed. The outcome of that discussion will determine the next move for private gaming operators in their efforts to expand in the state. Until Scott’s negotiations are complete, it is unlikely the Legislature will consider significant gaming legislation.
parting shot |
people and places across the super region
NEXT STOP, THE FUTURE
APRIL | MAY 2014 • FORWARDFLORIDA.COM
The train has left the station. The 31.5 miles of SunRail’s Phase One represent only half of a journey that began with the new millennium. But what an important ride for the region. The basics: Officially beginning May 1, the commuter railway connects DeBary with Sand Lake Road near the Orlando International Airport via 12 stations. Construction on Phase Ttwo begins this summer with another 30 miles, extending the line north to DeLand and south into Poinciana. The economic story: SunRail has fueled uncommon regional collaboration among four counties (Orange, Osceola, Seminole and Volusia) and delivered a critical component to Central Florida’s transportation infrastructure—one that promises to not only expedite movement, but also serve as a development catalyst for decades to come. A toot of the horn, please.
Downtown Orlando's LYNX Central Station is one of 12 stops for the new SunRail. PHOTO: COURTESY OF SUNRAIL
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7 E R L O C AT I O N S T H R O U G H O U T C E N T R A L F L O R I DA
FORWARD Florida Magazine is the definitive resource for and about economic development and the emerging growth companies of Florida’s Super...
Published on May 8, 2014
FORWARD Florida Magazine is the definitive resource for and about economic development and the emerging growth companies of Florida’s Super...