Greater Jackson Business, Volume 1 Issue 2

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C O N T E N T S

Volume 1 • Issue 2

Publisher/Editor

4

You Should Know...

Eclesius Franklin

Jack Criss Advertising Administrator Mindi Phillips Art Direction/Layout

Success Stories

Business News for Hinds, Madison and Rankin Counties

February 2010

Features

6

BUSINESS

Pevey Creative

Lesley McLin / Fleet Feet Sports

gmpevey@bellsouth.net Columnists Jim Craig, Robert Dienelt,

7

Special to the GJB

Brad Franklin, Marianna Hayes,

Brad “Kamikaze” Franklin

Carl Snell

10

Cover Story

Two Lakes Project

Jeremy Nelson, Julie Skipper,

Contributing Writers Lynne Jeter, Mary Mack Jones, Tom Ramsey, Tom Willard Photography Jack Criss, Mary Mack Jones, Jeff Sanders, Tom Willard

COLUMNS 4 Up Front

22 Exclusive

Jack Criss

8 Craig’s Corner

Jim Craig

16 GJB Special

Carl Snell

18 Julie on Jackson

Julie Skipper

20 Community Works

Tom Ramsey

Room 210

24 Economy

Jeremy Nelson

26 Financial

Robert Dienelt

30 Marianna on Marketing

Greater Jackson Business is published twelve times a year to promote Metro Jackson in an informative and positive manner. We welcome contributions of articles and photos; however, they will be subject to editing and availability of space and subject matter. Photographs, comments, questions, subscription requests and ad placement inquiries are invited! Return envelopes and postage must accompany all materials submitted if a return is requested. No portion of this publication may be reproduced without written permission of the publisher. The opinions expressed in Greater Jackson Business are those of the authors or columnists and do not necessarily reflect the views of the publisher, nor do they constitute an endorsement of products or services herein. We reserve the right to refuse any advertisement.

Marianna Hayes

BUSINESS

Business News for Hinds, Madison and Rankin Counties

P.O. Box 13665 • Jackson, MS 39236 Phone: 601-750-6587 email: jack@greaterjacksonbusiness.com www.greaterjacksonbusiness.com

2 - Greater Jackson Business

U P

F R O N T

Greater Jackson: A Case for Optimism

BY JACK CRISS Publisher

C

onsider this a rah-rah column.

While there are those who seem to take some perverse joy out of any problems Jackson faces (see the recent water crisis) it is crucial to keep in mind that, as our capital city goes, so goes the entire Metro area.

That’s the truth whether it is admitted by our residents or not.

Moreover, since Jackson is the hub of the entire state, it is important that people recognize the critical need to support the city, both morally and economically. Morally, by staying positive about what Jackson offers to one’s neighbors and friends and, economically, by taking advantage of the rich cultural, culinary and retail offerings the capital city has.

While I’m singling out Jackson, we can’t overlook our sister cities in our neighboring counties of Rankin and Madison. Though unnecessary turf wars are still fought in our midst everyday to lay claim to some sort of territorial supremacy the truth is that the tri-county area is only as strong as its’ parts.

My commercial real estate friends have long told me that outside investors and developers

don’t look at Ridgeland, Flowood, Brandon or Jackson: they look at the entire Metro area as an economic composite. So while many natives play the local municipality versus municipality game – with no clear winners, coincidentally – the money we would like to entice into our area looks at us as just that: a Metro area.

Still, I tend to pull for Jackson because it’s my hometown and I am actually now truly seeing some tremendous strides taking place here that bode well for the City With Soul’s future. To wit: a new, emerging group of young entrepreneurs and community leaders, from all walks of life, who have committed themselves to bettering the city on an almost daily basis; a gradual, but significant, overcoming of racial barriers that so often held us back in social progress for many years; a strong and vibrant entertainment and hospitality renaissance in the downtown area that appears to be doing well financially; a new commitment to unique events that will bring out of towners to our city such as the tremendous Blue Cross Blue Shield Mississippi Blues Marathon that was held in January, an event that didn’t even exist four years ago; and a handing down of the leadership torch from the old guard of Jackson to the new, most of whom are idealistic, well-educated and love their city. In addition, a new creative class has emerged in our city, especially visible in the Fondren district that, I believe, will soon be reaping national attention which equates into national attention for Jackson.

I also believe that, in due time, the infighting that has often existed among our cities and counties will fade away as our economic situation continues to change. As I argued in my last column, we are living in the midst of a new business paradigm and we all must, literally, work and trade together to survive. Because of this, I submit that the old geographical barriers will give way to what business deal makes the most sense,

wherever it is ultimately located. That’s why I, personally, shop at Renaissance, Dogwood and Fondren as many others also do. Sure, I try and pick locally-owned businesses to trade with but, as long as these businesses are within the tri-county area, I think we all win.

That point could be argued, but I believe it.

Symbolism also plays a part in the success of Jackson and the Metro. Take the re-opening of the King Edward Hotel: I was present at the ribbon-cutting and even had the pleasure of spending the night there at the hotel and I must say that it is a beautiful, wonderful and well-managed facility that our city, and whole state, can and should be proud of. To think that, just a few short years ago, the serious possibility existed that the whole, grand structure would be razed. And now? The King stands as testament to perseverance, faith, economic ingenuity and the commitment of a whole lot of Jackson businesspeople to bring back the splendor that was the original King Edward. I would say they have succeeded in doing so…maybe even surpassing the halcyon days of the hotel. We shall see.

So, yes, while it is was recently announced that $214 million is needed for repairs in the City of Jackson in light of the water crisis and, yes, crime is a problem, these issues can be addressed. It won’t be easy and I would imagine that unpopular solutions will be proposed, e.g., a commuter tax to raise revenue. However, these kinds of problems are faced by metropolitan cities all over the country and I have confidence that Mayor Johnson and his team will work hard to do what needs to be done for the capital city.

In the meantime, I will continue to enjoy the incredible things – events, restaurants, exhibits, concerts, etc. – that Jackson, and the Metro area, have to offer. And, through the Greater Jackson Business, my staff and I will constantly work to promote the businesses and the people here who strive to make our area a great place to live and do business in while also pointing out our problems and, hopefully, positing feasible solutions to them.

I can say, with full confidence, for the first time in many years, that I honestly believe Central Mississippi’s best days lie ahead.

Intangibly, there’s something in the air.

Tangibly, there are workers on the ground.

I welcome your comments, suggestions and criticisms. Please write to me at jack@ greaterjacksonbusiness.com. Thank you very much! - GJB Greater Jackson Business - 3

Y O U S H O U L D K N O W. . .

A Man Living his Passion Healer, Trainer...Inspiration...Eclesius Franklin

Eclesius Franklin

BY Mary Mack Jones Contributing Writer

W

hen Eclesius Franklin was a seventh grader in Natchez, his nickname was “Vice Grip”–a moniker awarded him by the older boys for the strength of his hands.

Growing up in Natchez as the grandson and son of an electrician and mechanic, Franklin learned early the value of strong hands and the gift of touch.

At Natchez Cathedral School, Franklin was an outstanding athlete–playing football and earning a state championship in track.

After graduation, he entered Mississippi State University and played football as one of Jackie Sherrill’s “Mad Dogs”–walk-ons selected to play on the strength of their athletic prowess.

4 - Greater Jackson Business

After graduating from MSU with a degree in engineering and industrial technology, he took a job with International Paper Company in Natchez for a few years. From 1995 to 1997, Franklin lived in Atlanta where he held a management position with a plastics company. Returning to Mississippi in 1997, he accepted a job with Craft-Co in Morton as an engineer.

The back story on his transition from engineer to healer is a testimony to his art.

While working at Craft-Co, he was approached by a co-worker who suffered tremendous neck pain. In spite of a strained working relationship with her, Franklin agreed to share his gift of touch and after the first neck massage, the pain abated – an act of kindness that secured his first convert.

Realizing that his true calling was a sort of ministry – a laying on of hands – Franklin

began a quest to find a school for massage therapy. At the time, there were few schools for training, but he was able to secure a spot, taking night courses at the Mississippi School of Therapeutic Massage while continuing to work in Morton. His first jobs were chair massages –house calls around the area. As the word spread, clients began to increase and in 1997, he took a risk and started doing massage full-time. These were lean years but his client base continued to grow and in May of 2004, he opened his own business at Fondren Corner and baptized it with the name Gifted Hands.

As his business prospered, he found that many of his clients suffered from over training at the gym and were coming to him “beat up” and in pain from overly zealous personal trainers. Realizing that there was a need for proper training at the gym, he expanded his business and created his own gym offering his skill as a personal trainer. Since opening his massage clinic and his gym, Franklin has served over 9,000 clients in massage and has trained over 700 in the gym.

One of his first clients and a dear friend and mentor, Zee Nobles commented on Franklin’s gifts as a therapist: “He is a wonderful person – always trying to help others. There is not enough interest in holistic medicine that involves mind, body and spirit. Eclecius really believes in the therapeutic emphasis of massage. He is the best I have ever encountered and I have had massages in China, Turkey, India. He is the top of the line.”

“I don’t mind making my clients holler!” laughs Franklin. “Some times you have to make it hurt to make it feel better. That’s what makes me different.”

“Eclecius knows exactly where to go to help with the pain. He can find the pain,” comments a client waiting for her appointment.

A look around his office reveals much about Franklin and his interests. Photographs with friends on the snowy slopes of Montana, underwater shots of scuba diving adventures and memorabilia of a life in love with sports fill his small office space. Connecting with clients from many different professions and forging strong friendships as a result of his professional skill, Franklin is reaping the rewards of a man who is living his passion.

For more information or to make an appointment, call Gifted Hands at 601-3667800. - GJB

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S U C C E S S S T O R I E S

Lesley McLin of Fleet Feet Sports She Keeps the Metro Running

Lesley McLin

BY MARY MACK JONES Contributing Writer

F

leet Feet Sports, located in the Trace Station Shopping Center and conveniently situated near the Ridgeland Multi-Purpose Trail, has become a favorite haunt for runners, walkers and weekend athletes. Owner Lesley McLin has created a gathering place for the running community in her retail store. Catering to the interests of the growing number of fitness enthusiasts in the Greater Jackson area, McLin 6 - Greater Jackson Business

has turned her lifelong love for sports into a vocation.

A Baton Rouge native, McLin came to Mississippi on a cheerleading scholarship at Delta State University in Cleveland. A swimmer, diver and gymnast, she is no stranger to the sporting life. After graduation from Delta State with a degree in exercise physiology, she found her first job at the Baptist Healthplex in Clinton where she worked for a year and a half..

In the fall of 2003, she ran her first marathon, thanks to the influence of mentor and friend, Jeff Wells, former owner of Fleet Feet. Recognizing her potential, Wells hired

her to work in his franchise operation, one of 80 Fleet Feet stores nationwide. Wells and Tom Raynor, CEO of Fleet Feet Sports, had founded a company called SRDC (Specialty Retail Development Company) designed to provide an exit strategy for franchisers ready to move out of the business. At the same time, this innovative program allows young entrepreneurs to gradually gain equity in the franchise with a three-year contract, during which time they work toward controlling interest in the business. After completing the program, McLin was able to take sole ownership of the Fleet Feet store in 2008.

Not just a retail store, Fleet Feet in Ridgeland has become the “go to” spot for training beginners and serious runners as well. The No Boundaries program, sponsored

by New Balance is designed to take aspiring athletes from the couch to a 5K run after 10 weeks of training. McLin has also participated as a coach for the Leukemia and Lymphoma Society’s Team in Training program.

“I love what I do,” says McLin “and feel so blessed to have this opportunity. One of my goals is to see my employees prosper and move on to better things, reaching their own goals. I love the idea of “paying it forward” since so many good things have come my way with the help of other people. I feel like this is my spot, my family.”

In spite of the 2009 recession, McLin has seen no sharp decline in business. “I had to get a lot more aware of inventory and keeping an eye on expenses,” she says, “but I was able to exceed my profit goals.”

Fleet Feet carries a full line of fitness apparel and athletic gear from foot wear to injury prevention equipment. “What makes our store stand out is our customer service, “ says Mclin. “Our fit program is designed to be attentive to the shape of the foot and the gait of the customer—tailoring the shoe to the individual.”

The sky is the limit for this motivated young entrepreneur. Combining her gift for connecting people while doing what she loves, McLin is a sure winner. - GJB

S P E C I A L

T O

G J B

I’m PRO-Jack!

I

By BRAD “KAMIKAZE” FRANKLIN Contributing Writer

’m a native Jacksonian, born and raised. To date, I’ve seen the worst, and best, that Jackson has had to offer. I listened to high-school classmates brag about how they were leaving on the first thing smoking out of town, many of them never to return. I watched college buddies grab their degrees and bolt for what they deemed “greener pastures” in other cities.

Many of them never to return. I watched neighbors move their families to suburbia. Some of them to accomodate growing families, some of them victims of propoganda. Many of them will never return. In the midst of what seemingly was a mass exodus, the seeds were being planted for a renaissance. Jackson is poised to rise like the Phoenix from the ashes of apathy and doubt.

What could have been a testament to our failures became a monument to our success. The King Edward re-opened in December 2009, to the fanfare one would expect from such a storied structure. Ironically, pundits told David Watkins he was crazy for even thinking of such an undertaking. The business climate didn’t support such a project, especially in a city like Jackson.

Local banks balked at the idea. Politicians expressed their doubts. The citizens weren’t enthused.

Let’s say support was lukewarm at best. But some of our nation’s greatest visionaries were called crazy. Every new idea seems far-fetched...until it actually becomes a reality. It’s a testament to the resolve of Jacksonians. We are now 186 hotel rooms and 64 apartment units to the better.

You can feel the electricity downtown as new young professionals are decreeing that they want to live, work, and play in an urban environment. And despite what the purveyors of doom say, it is a SAFE downtown!

The entire landscape of our capital city will be different in as little as three years. The Standard Life Building is on schedule to be completed in late 2010/early 2011. Seventy four new apartments? Check. New restaurants downtown to satisfy hungry downtown residents? Check.

Now how do we entertain these new residents? Farish Street, of course.

During the 30’s, 40’s, and 50’s, Farish street was the second most successful Black business empowerment district in the nation behind Harlem. Any one who was anyone in the fields of medicine, law, retail, or entertainment was located in the Farish area. Then NAACP field secretary, Medgar Evers, had his offices located on Farish and this street is home to the 2nd and 3rd oldest church congregations in Jackson. It’s living, breathing history. And in a few short months the blocks betwen Amite and Griffith will be alive with the sounds of Mississippi blues.

The sidewalks will be home to visitors looking for a great meal or great show. Farish won’t be Beale Street. It won’t be Bourbon street. It will be uniquely Farish. A place where folks can be entertained and educated at the same time.

I’m proud to be an investor in this project of nearly 15 years in the making. I’m part of a majority African-American Investment group determined to create new opportunities for young professionals who were once shut out of projects of this type. When all is said and done, Farish Street will cost millions but will sustain itself and be viable for the next century. It’s going to employ nearly 600 people including a stable of full-time musicians. A district marred by Stop and Go’s, now has construction underway with a projected completion date of September 2010.

It’s time to embrace everything Jackson. We have our issues, but when you’re striving to be a big city, you’re going to have big city problems. But...we are the capital city. It’s high time we start getting the respect a capital city deserves. - GJB

Brad “Kamikaze” Franklin is Director of Media and Community Affairs for Watkins Development & Farish St. Group and is also Chair of the Jackson Progressives.

Greater Jackson Business - 7

C R A I G ’ S C O R N E R

Don’t fall through the Twenty-First Century Litigation Trap-Door

F

or what seems like the millionth time – What if the supplier of defective merchandise but probably closer to the tenth – one of were allowed to tell the jury that, because you deyour company’s main suppliers has sent leted the emails, they can assume that the emails you damaged or defective merchandise. You go did not protest about the products? And what if to your computer, open your last protest letter the employees in the second case were allowed to to the supplier, and change the date and some have the jury instructed that, because of the autoof the text. You e-mail the letter to the supplier. matic deletions, they can assume that the emails By return mail, you receive a demand letter from and other electronic documents proved that the the supplier for the balance on your account. employees are in the right, and your company is The supplier’s letter acknowledges that you have lying about its defense? withheld partial payment due to your claim that Can that really happen? Unfortunately, yes. the product did not meet your requirements, but But can you be prepared, so that your automatic disputes that fact and threatens a lawsuit if full e-document deletion program doesn’t walk you payment is not received within ten days. into the 21st Century’s biggest litigation trap Nothing to worry about, right? You know the door? Fortunately, yes. truth of the situation. But it turns out that the The legal doctrine that creates this trap is acturoutine deletion program on your company’s ally of 19th Century origin. In Bott v. Wood, 56

BY JIM CRAIG computer server has deleted any prior e-mails Miss. 136 (1878), the Mississippi Supreme Court Contributing Columnist created over thirty days ago. Your system only considered a dispute between family members has the most recent letter and email, because each about a deceased grandfather’s property. The month you “wrote over” the last month’s protest grandson claimed that his grandfather’s will left to create a new letter. Nine earlier protest letters simply aren’t there to him a substantial tract of land, but that his father had destroyed the print. Not only that, all of your emails to your managers older than will after the death and sold the land to pay debts. thirty days have also been automatically deleted. Same with the emails The Mississippi Supreme Court applied the maxim: omnia praeyou received from customers complaining about the merchandise. sumuntur in odium spoliatoris. Yes, it does sound like a spell cast by a Ok, that’s annoying. But the managers are all still working for you, character in a Harry Potter movie. But in English, it simply means: “all and they’ll testify about the problems. And you can tell the court about facts are presumed against (literally, “in hatred of ”) a despoiler.” Or, your correspondence with the supplier. So all’s well, right? more simply, the “spoliation presumption.” Applied to the Bott case, it * * * * meant that the court would presume that the father destroyed the will You’ve been having serious problems with one of your employees. because it would prove the grandson’s case.

His manager has sent the employee a plethora of emails cautioning Fair enough: the father probably wouldn’t have “despoiled” the about the employee’s offensive conduct around his female co-workers. grandfather’s will if he had been the sole heir of the estate. But with He just doesn’t get it. Finally, after one female employee quits in pro- notable exceptions (remember the death spiral of a major accounting test, you decide that enough is enough, and terminate Prince Charm- firm a few years ago?) it’s rare for a company or individual to delibering. Not more than a week later, you receive letters from two lawyers. ately shred troublesome documents. Are all facts presumed against a One represents the female employee, who is going to charge your com- business that inadvertently discards documents? pany with sexual harassment under Title VII. But the other letter is The Mississippi Supreme Court answered that question in DeLaughfrom a lawyer who represents the employee you fired – who claims ter v. Lawrence County Hospital, 601 So. 2d 818 (Miss. 1992). A 70the “real reason” for his termination was his so-called “whistleblow- year old woman died of an aneurysm in the hospital, and her children ing” about alleged issues in products you sold to the Jackson Public sued, claiming malpractice. When the family sought production of Schools. their mother’s medical records, the chart couldn’t be found. It had last You try to collect your proof to defend your company against these been seen in her attending physician’s “out box” with a dictation tape claims. You know the facts would prove you acted as quickly as pos- for the discharge summary to be transcribed. The hospital attempted sible to protect your female employees, and that Prince Charming’s to reconstruct the records, but could only present an incomplete set to “whistleblowing” had nothing to do with his termination. But you the Court. can’t access any emails after December 1, 2009, the day your executive On appeal, the Mississippi Supreme Court held that where a record assistant last purged your system. This purge is performed every few required to be kept by law is unavailable due to possible negligence, months, but not on any particular schedule. Again, that’s bothersome, the jury should be given special instructions. In these instructions, the but not crippling. Or is it? jury should be asked to decide whether or not the hospital (or other * * * * party who lost records) either intentionally destroyed or negligently But what if, instead of just making the defense of these cases dif- discarded the records. If the answer to either question is “yes,” then ficult, the deletion of these emails – in the ordinary course of your the jury should be told that they may infer that the missing original business – actually became a fact used against your business in Court? records contained information harmful to the hospital.

8 - Greater Jackson Business

In a later case, Thomas v Isle of Capri Casino, 781 So. 2d 125 (Miss.

2001), the Mississippi Supreme Court ruled that where a party knows about the existence of a potential dispute, but destroys evidence or documentation related to that suit, the judge or jury may apply the spoliation presumption.

It gets worse. Under recent amendments to the Federal Rules, the spoliation presumption may apply when e-mail or other electronic documents have been deleted by a party knowing that the deletion would effect documentation about a possible dispute. A series of decisions from the federal court in New York City (for obvious reasons, a leader in business litigation trends), the Zubulake decisions, first explored the duties of companies to preserve electronic documents to prevent the application of the spoliation presumption in lawsuits.

In Zubulake v. UBS Warburg, Inc., Laura Zubulake was fired by UBS as the director and senior sales manager on its U.S. Asian sales desk.

Following her dismissal, Ms. Zubulake sued UBS alleging sex discrimination and retaliation. UBS claimed they fired Ms. Zubulake because she undermined associates and disobeyed her superior.

In the course of discovery, it was determined that e-mails relevant to the supervision of Ms. Zublake had been deleted. The federal court found the e-mails had been deleted after UBS was under an obligation to preserve evidence. The court ruled that UBS and its lawyers should have initiated a “hold” on the destruction of any documents, including electronic documents, as soon as they were aware of the threat of litigation. This notice is known as a “litigation hold.”

The Zubulake cases suggest when a business becomes aware of a dispute that could result in a lawsuit, it should take immediate action: 1. Identify all “key players” – the employees who would have relevant information about the dispute; 2. Identify the potential subjects related to the dispute; 3. Issue a “litigation hold” notice to all of the key players, telling them to preserve all electronic documents and communications about the subjects you have identified.

The Zubulake opinions also addressed the responsibility for the cost of restoring back-up tapes. The court found that the producing party should pay for data that is readily accessible. For data that is accessible only through expensive retrieval methods, the business – that means YOU – might have to pay the cost of the document retrieval. The factors that may cause the cost to shift include the following: 1. Did your litigation opponent make a reasonable request for documents, limited only to those relevant to the case?

2. How important are the documents to the case?

3. Are those documents available from other sources?

4. Is the cost of retrieval within the scope of the value of the case (that is, the damages sought in the lawsuit)?

5. Which party is more likely to afford the costs of document retrieval?

It doesn’t take a rocket scientist to figure out that in the case of a customer against a business, these questions are likely to require the business to pay the costs of computer document retrieval, even though those documents will help the customer in the case.

In short, the Zubulake decisions teach us that routine document retention and destruction policies must be suspended to preserve potentially relevant documents when litigation is reasonably anticipated.

The Mississippi Supreme Court has not adopted the Zubulake decisions yet. But the Mississippi Court of Appeals applied the Mississippi spoliation presumption cases to electronic documents in Southeastern Medical Supply v. Boyles, Moak & Brickell Insurance, Inc., 822 So. 2d 323 (Miss.Ct.App. 2002). And the Federal Courts in Mississippi have followed Zubulake. Maggette v. BL Development Corp., 2009 WL 4346062 (N.D. Miss. 2009).

So what guidelines do these cases give you in developing your company’s record retention policy?

The good news is that reasonable “record retention policies”, also known as destruction policies, are allowed. In Zubulake, the court found that even companies in contentious litigation are not required

to keep every “shred of paper, every e-mail or electronic document and back-up tape.... Such a requirement would cripple large operations.”

In addition, apart from the spoliation of evidence and the specific regulations that may apply to your business, a company need only keep electronic information as long as necessary for business purposes.

What are the characteristics of a reasonable record retention policy?

1. They are implemented at a neutral time. If you create a new record retention policy after the termination of Prince Charming and the resignation of his last victim, the court may assume that the policy is a Trojan Horse for deleting documents relevant to the employment disputes.

2. They are content neutral. The policy should describe categories of documents: e-mails, drafts of agreements, letters, etc. Do not categorize by the quality of the document. For example, a policy that calls for deletion of all complaints from customers about your product is not a good idea (I know, it sounds obvious, but I’ve had it come up before).

3. The deletions are performed at specified times. The company in the “Prince Charming” example has handed their former employees a gift because the document deletion was done at the manager’s whim.

A policy that requires deletions at specified intervals – every quarter, every six months, every year – is much more defensible.

4. Back-up tapes are used. These can be deleted at longer intervals – every year, every other year. Some companies sell screening software programs to help search stored data. That’s worth your time to research.

5. Litigation holds are used when a dispute arises. Train your employees so they know what to do when you send a litigation hold notice.

So the company in our first example – the dispute with the supplier – may be in good shape, although their document retention policy isn’t very concrete. They would have been in much better position by following the Zubulake suggestions. But the company that fired Prince Charming may find that they stepped into the trap door.

I just hope they don’t find your business down there with them.

Jim Craig is a partner in the Jackson office of Phelps Dunbar LLP, where he represents businesses in commercial and customer litigation at trial and on appeal. Phelps Dunbar’s on-line library was used, in part, in writing this article. - GJB GJB_1/3ad2009_Layout 1 12/9/09 1:39 PM Page 1 Jim can be reached at jim@greaterjacksonbusiness.com.

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Greater Jackson Business - 9

C O V E R

S T O R Y

To flood or not to flood...

“Two Lakes” is the Answer

Island View

BY TOM WILLARD Contributing Writer

Why The Metro Needs This Project...

And Why It Should Be Built.

T

wo Lakes is a dream as yet unfulfilled.

However, it is still very much alive despite a sea of controversy. Greater Jackson Business recently surveyed some of the key players in the Jackson area flood control effort to determine where the project actually stands.

“Two Lakes is seeing a renaissance of interest, energy and momentum,” says John McGowan, author of the dynamic flood con-

10 - Greater Jackson Business

trol, project originally proposed in 1997.

“Public enthusiasm has never been higher, since we are getting closer to the next devastating flood every day,” he says. “We have recruited new blood with a real commitment to this project; and the tide is turning on the political and regulatory aspects of the development.”

McGowan, an engineer - geologist, has been a relentless proponent of the construction of

a lake complementary to the Ross Barnett Reservoir to significantly relieve the threat of flooding from torrential rains in the Upper Pearl River Basin as occurred in the 40s and in more recent memory in 1979 and to a lesser devastating degree in 1983 when hundreds of homes and businesses were inundated by floodwaters.

“Recently we have seen real progress in moving our cause forward. Congressional ap-

proval was achieved via Section 3104 of the Water Resources Development Act of 2007 (WRDA 2007), authorizing the Army Corps of Engineers to implement a ‘flood damage reduction plan’.” says McGowan,” The authorized project to be conducted by the Army Corps of Engineers bears a cost of $205 million using 60% federal money.

As a result, the Levee Board has voted unanimously to rescind its earlier endorse-

Reservoir, primarily a watershed and recreational lake, will be utilized to relieve some pressure on flooding as envisioned by its enabling legislation.

“The Corps has finally released part of the study originally commissioned in 2001. While it erroneously estimates the cost of the project, it underscores the need for something to be done.” McGowan says.

The Hinds County Board of Supervisors

Downtown

ment of the, Lefleur Lakes Lower Lake Plan, in favor of a technical study of alternative plans including the Two Lakes Plan.

The Two Lakes Flood Control Project would eliminate more than 99% of the flooding potential from the Pearl River and it’s tributaries. The Plan would create a second, 4,500 acre pair of recreational lakes (roughly 60% the size of the City of New Orleans). The lakes would comprise thousands of acres of shoreline and more than 700 acres from a series of islands adding more than 600 acres of developable land to the Jackson Central Business District.

The islands and elevated shoreline would be dredged from material recovered from deepening the river and clearing the thick, hardwood tree-studded Pearl River shoreline and adjacent floodplain to the I-20 corridor, which now inhibits water flow, especially at flood stage.

Overall, more than 10,000 acres previously subject to flooding would be made available for development and swampy, often desiccated wetlands will be more than completely replaced with water-purifying lakes and grasses.

A side benefit will be that the Ross Barnett

“The Two Lakes Foundation, a 501(c) nonprofit created to pursue the vision of the Two Lakes approach, has seen the addition of new, younger voices in this cause,” he adds.

The project is estimated to create more than 4,500 new jobs, boosting the economy of Jackson’s inner city core. The overall economic impact will be almost $1billion, and could potentially save more than $1 billion in possible flood losses. The estimated cost of the Two Lakes Plan is $336 million.

Any solution, however, has become mired in a gumbo of controversy and politics, setting up a classic East - West bank debate: The Rankin-Hinds Pearl River Flood Control and Drainage District (Levee Board) together with the US Army Corps of Engineers has primary responsibility over any flood control project.

Not surprisingly, one and then the other has been the primary source of opposition to the Two Lakes Plan.

The Corps and some members of the Levee Board representing Rankin County currently support a plan (“Levees Only”) to raise and replace parts of the existing levee system.

Douglas Kamien, Chief of Planning, Programs and Project Management for the Vicksburg Corps has raised the specter of decertifying the existing levee system which remains unaltered since overtopped during the 1979 flood (Levees Only Plan).

“We should not agree with the Corps’ demand for new and higher levees,” McGowan explains, “because it will repeat the mistakes made when the existing levees were originally designed and built by the Corps. At best it is an expensive system that will only be about

Lake Front

has endorsed the Two Lakes Plan, after a presentation by the Two Lakes Foundation in May; the Levee Board acknowledged that the current Army Corps feasibility study is not a review of the Two Lakes Plan.

“A January poll of Clarion Ledger readers voters rejected the idea of a levee plan by an overwhelming 82%-18% margin.” McGowan notes.

79% effective.

“A two-year feasibility study by the Army Corps draft released in part last August estimated an inflated $1.4 billion for the formerly considered Lefleur Lakes plan - a material alteration of the Two Lakes Plan. Actual engineering estimates of the Two Lakes’ proposed cost would be a substantially lower $ 336 million,” McGowan states.

Greater Jackson Business - 11

Similarly, several environmentalist groups such as the National Wildlife Federation have objected to the project based on the belief that the Two Lakes plan would irrevocably damage existing wetlands, threatening at least two endangered species.

“You can’t depend on federal dollars alone to do a project of this magnitude. Somewhere along the line you’ve got to create new wealth. That’s where economic development comes in,” says McGowan.

Ben Allen, Executive Director of the Downtown Jackson Partnership says, “The levee plan will not assure the downtown area won’t flood unless the City of Jackson purchases 16 pumps at a cost of $90 million. The Levee plan offers no economic benefit.

“In addition to the $90 million for pumps, Rankin and Hinds County will have to vote to raise property taxes 15%20% increase in taxes to more than match the $133 million from the Federal Government. That will never happen.

“I think it is a sad day in Mississippi when a project of this scope is not embraced and studied by whatever powers that be. “The economic benefit of the Two Lakes plan will dwarf the proposed Levee Plan,” Allen concludes.

Economics certainly comes into play in this debate.

Since the 1983 flood, the Lakeland corridor has seen unprecedented business growth in the 200 year flood plain.

Developers and business owners have made what amounts to a $500 per year per $100,000 in value risk management decision. The chances of flood are one-half of one percent in any given year. These land owners are smart, savvy business people. The insurable risk will cost them only $600 per year in flood insurance coverage.

A recently added component would include a finger lake covering the Lynch and Town Creek areas to control annual flooding in those areas as well as provide a revitalization factor to the southern edge of the Central Business District.

Jackson Mayor Harvey Johnson has recently elected to condemn 42 business locations adjacent to the Pearl River along a south-southwest line directly behind the Quarter in advance of the proposed enhanced levee-enhancement project espoused by the East Bank Levee Board membership. Correspondingly, the Two Lakes proposal would not impact a single structure, only unusable swampland that would fall under the Lake’s footprint.

Much of the “Levees Only” plan has been developed by agency fiat rather than through public debate in open forums.

David Watkins, who has redeveloped the King Edward and, together with a group of investors, is overseeing the redevelopment of the Standard Life Building, Farish Street and various Capitol Street sites has deep concerns about the Levees only plan.

“The ‘Levees Only’ plan’ is unacceptable to us as investors in downtown Jackson,” Watkins says. “It would leave downtown unprotected and vulnerable. In that scenario the only way to address the downtown backwater flooding issue is a pumping system with a $90 million price tag, subject to a referendum. “My investors don’t see that as a reasonable probability.” he said.

“As a developer, I think McGowan’s plan has some viability and really has not had an open or fair review. The inclusion of a 35 acre finger lake in the Town Creek area will provide some level of protection. “The key is if it will be environmentally sound. We need to look at it. “I am thirsty for knowledge of a flood mitigation plan that will actually protect the downtown area of Jackson,” Watkins concludes.

According to jackson businessman Socrates Garrett, the Hinds County Supervisors’ representative on the Levee Board, “The position of the Board is that we have asked the Corps to consider all reasonable alternatives for flood control.

“We were sent a letter of termination by the Corps for the study au12 - Greater Jackson Business

thorized in 2001,” Garrett says. “Yet the study did not include a flood control and economic development alternatives to the ‘Levees Only’ approach.

“This does not allow the Levee Board enough information to make an informed decision. The Levee plan was delivered on a take it or leave it basis. The Levee Board Resolution as passed has considerable enhancements including impoundment, recreation and development along with other enhancements.

“We contracted with a local engineering group to conduct the study, and a considerable amount of time and money have gone into it without delivering an actual cost or benefit.

“The Levee Board recently passed a resolution asking for what we originally contracted for, to which the Corps has not yet responded.

They owe us a response; then we can determine exactly what path to take from here. “It is my understanding that the Department of the Army has instructed the Corps not to terminate the study.

“In short, I am in favor of a fair process,” Garrett states.

Persistent in his approach, despite opposition and regulatory challenges, McGowan says, “The Two Lakes Plan can be a dream realized as early as 2014,” McGowan concludes. “All we must do is create the political will to do what must be done to protect the people, businesses and infrastructure of the City of Jackson and surrounding counties.

“The Plan is in place. The engineering is sound. The economics are heavily weighted in favor of the Two Lakes plan,” McGowan sums up.

Individuals and businesses can contact their local and state officials through a directory located on the Two Lakes website www.twolakesms. com. - GJB

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Greater Jackson Business - 13

Q & A cover story

John McGowan Greater Jackson Business recently had the opportunity for an exclusive interview with John McGowan and the Two Lakes foundation team at McGowan Working Partners.

John McGowan

worth of rain in the ditches and streets. Our city is different, with all the water draining off the hills and converging in downtown Jackson.

The Two Lakes convey water through Jackson, preventing floodwaters from backing up.

GJB: Can the Two Lakes plan go forward without ultimate support from the Corps?

McGowan: The Corps has no ownership in our community; they are looking after the federal government’s interests. Only the local community can decide which plan they support, it is not up to the Corps to decide. The Corps is charged with regulating activities in flood plains and in protecting the environment of the nation. We believe that under the law the Two Lakes plan can and will be permitted by the Corps when the science is provided to comply with federal regulation.

GJB: What’s the economic development impact of the Two Lakes plan?

GJB: Please explain the Two Lakes concept to non-engineers.

McGowan: Floodwater flowing through the Metro Jackson area piles up against obstructions in its path. An old landfill at Gallatin Street backs up water into downtown Jackson. The Two Lakes removes this landfill and other similar obstructions from Richland to the Reservoir. The 200 foot wide river will be straightened and widened to 1,800 feet and deepened by ten feet. The constant lake water level will prevent re-growth of trees and assure a smooth lake bottom. Flooding will be reduced by 5.6 feet in downtown Jackson 14 - Greater Jackson Business

and 10 feet at Lakeland Drive, preventing 99% of the flood damage in another event like the 1979 flood.

GJB: Why do you think Two Lakes is superior to levees in terms of flood control?

McGowan: Jackson is not the proper situation for levees. During floods the levees will hold water in as well as out. Rain will cause lakes to form downtown behind the levees and the pumps needed to remove the water are not economically feasible. Town and Lynch Creeks drain an area 60% the size of New Orleans.

New Orleans is flat and can hold an hour’s

McGowan: Overall, 7,000 acres of previously flooded land would be available for development increasing the tax base of both Hinds and Rankin Counties. Cities throughout the country are developing waterfront restoration projects that generate millions of new dollars into their communities each year.

These types of Urban Waterfront Restoration Projects also attract new businesses, creating thousands of new sustainable jobs in the area. Newly created parks and green spaces along the lakeshore will enhance the overall quality of life in the Metro and spur new developments as well.

GJB: What impact does the Two Lakes plan have upstream and downstream?

McGowan: The Two Lakes will allow the Reservoir to discharge 2-1/2 times more water than it can do now without flooding in Jackson. With this ability, the Reservoir level can be lowered in advance of a flood to reduce flooding downstream by a little

more than a foot. The ability to pre-release water in this manner, required about once every 15 years, will also benefit the Reservoir by eliminating the current requirement to reduce the Reservoir water level about a foot every winter (done since 1983 in anticipation of possible spring flooding). The Two Lakes has no impact north of the Reservoir.

GJB: How does the Two Lakes Foundation propose that the Two Lakes plan be financed?

McGowan: The Two Lakes project is estimated to cost $336 million. The economic development generated by the project will pay for a portion of it. In 2007, Congress authorized $133 million to construct either levees or the Two Lakes. The remaining construction costs can be secured through the issuance of bonds, to be repaid by a combination of ad valorem taxes generated by increased land value on the islands and lake periphery, leasehold rental income from waterfront property, developer fees and assessments. The Corps levee plan will require significant tax increases on the local property owners and state taxpayers, with no economic return.

GJB: Compare the impact on local taxpayers of both the enhanced levee and Two Lakes concepts.

McGowan: The cost of the Corps Levee Plan

with pumps to prevent backwater flooding along Town and Lynch Creeks is over $300 million with $170 million to be paid for locally. A 12-15 mil countywide tax increase for both Hinds and Rankin Counties would be required. The Two Lakes will be financed as described above and will be paid for only by the people and businesses that derive a direct benefit from the project. No county or state general taxation will be required.

GJB: What’s the environmental impact of Two Lakes and how would that impact be mitigated?

McGowan: With Two Lakes, high and low quality wetlands will be converted to lakes. An inventory of the current wetlands, bottomland hardwoods, habitat and other environmental functions will be made and compared to the positive environmental functions of the lakes and their shoreline environmental features. Using EPA and Corps procedures, an environmental accounting will be made to compare the environmental losses to the environmental gains. We believe that the Two Lakes will provide a net environmental benefit. If not, new wetlands will then be used to balance the benefits to the impacts.

GJB: Explain the Corps opposition if the environmental impact isn’t the problem.

based on their claims that the Two Lakes project is only 56% effective and that the cost will be $800 million. These numbers are not accurate. The Two Lakes is 99% effective and will cost $336 million. The Corps refuses to meet with us to resolve the flood benefit and cost differences. Yet people who rely upon our assessments continue to believe us, not the Corps. This can be seen in (last Wednesday’s) Clarion Ledger (1/20/09) poll in which people rejected the levee plan by a margin of over 4 to 1 (82% vs. 18% for levees).

GJB: What’s next and when do you expect a resolution to Metro Jackson’s flood control woes?

McGowan: We do not believe that the Corps has met all of their contractual obligations to study the Two Lakes or their Levee Plan, which are stated in the 2003 agreement between the Corps and Levee Board. The Corps has admitted they never properly studied the Two Lakes Plan.

This past September all Levee Board members signed a resolution asking the Corps for a time and cost estimate to study all reasonable alternatives, which the Corps has not done. Therefore we hope at the next Levee Board meeting, the Board will continue to insist that these studies are completed. GJB

McGowan: The Corps opposition is also

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The SEP. A Simplified Employee Pension plan lets you make contributions toward your retirement and your employees’ retirements. (You can even have a SEP and another kind of retirement plan at your business simultaneously.) A SEP allows business owners annual tax-deductible contributions equal to 25% of your compensation (if you have a corporation) or 20% of self-employment income (for a sole proprietor).3,4 The solo 401(k). Yes, you can have a 401(k) when you are self-employed. A business owner may establish one and include their spouse in the plan, provided the spouse is an employee of the business. A solo 401(k) throws in a profit-sharing twist on the standard 401(k). Solo 401ks may be funded by the employee (deferred compensation) and the business (a percentage of profit). As an employee of your business, you can contribute an amount up to the standard yearly 401(k) contribution limit (catch-up contributions permissible if you are 50 or older). Additionally, solo 401(k) plans allow you to make tax-deductible profit-sharing contributions equal to 25% of your compensation (corporate entity) or 20% of self-employment income (sole proprietor). It is even possible to have a solo Roth 401(k). These plans do require a TPA (third-party administrator).4,5 Profit-sharing plans. Here’s one way to compete with larger companies for prime employees. Contributions are usually deductible at both the federal and state level, with contribution limits equivalent to a SEP. Contributions aren’t mandatory. If your business has a bad year, you don’t have to make them. The assets placed within the plan grow tax-deferred. Again, annual tax-deductible contributions may be made according to the 25%/20% rule depending on your business entity.4,6 New comparability plans. Basically, this is a form of profit-sharing plan that rewards senior or key employees more than others. The classic situation for this plan is when you have a small business whose multiple owners take home similar earnings, but are of different ages. The plan must be tested to meet Internal Revenue Code nondiscrimination requirements, of course. It allows different levels of compensation to different groups within a small business.

What plan might work for you? If you are reading this, you are probably thinking about putting a plan into place or switching to a retirement program more easily administered than the one you have now. But which one should you choose – and what is the next step? Take a big step today and take advantage of all that is available in the marketplace - consult an independent financial professional to review your options and find the program that fits your needs. - GJB Carl Snell has been a registered representative since 1994 , and he is currently an Independent Financial Representative with LPL Financial. He offers investment and insurance solutions for his clients. His office is located in Jackson, Mississippi. He grew up in West Jackson and attended Hinds CC, Jackson State and is currently enrolled at Marylhurst University. He resides in Terry Mississippi with his wife Valerie of 28 years. Carl also is co-owner of a family real estate practice. For more info please visit www.lpl.com

16 - Greater Jackson Business

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Greater Jackson Business - 17

J U L I E O N J A C K S O N

Give me the Night...in Jackson I

’ve been thinking a lot lately about nightlife. Specifically, the nightlife in downtown Jackson.

We have one, you know.

Since I live downtown, I’m excited to have new places open. But I have another perspective

from which I view it. I see nightlife not only as a patron and resident of the neighborhood, but because, as a part-time job, I work at one of the newest night spots, Underground 119. Since I love downtown and want everyone to come experience it, I’ve been thrilled at the overwhelmingly positive response to the bar since it opened in August. On weekend nights, when there’s a line of people waiting outside the door to get in, I get a little giddy. The sight of hundreds of people coming to downtown. On a weekend night. It’s fantastic.

BY JULIE SKIPPER Contributing Columnist

But it’s more than that. What really excites me is what I see in a larger picture sense when working there. I’m at the door, so I greet every single person who comes through. I see older people, young folks, parents with their grown children, single people, couples, black, white, Hispanic. All having a good time, enjoying music—together. I love it because I know that—that coming together—is what will make Jackson work. What I see happening is bigger than one bar.

It gives me faith that we are moving forward, as a people and as a city.

That’s not to say that things are perfect. Downtown still faces a perception problem, particularly among those who haven’t been here recently. Working one night, I answered the phone and was asked by the woman on the other end if we are “in a safe area.” I assured her that I had walked there that night and was perfectly safe. (Not only that, but I know my police officers and have their cell phone numbers – something I cannot say about any other place I’ve ever lived.

And for the record, downtown is statistically one of the safest places in the Metro.) But unfortunately, at least for now, that’s not an uncommon concern throughout downtown. The key is for people not to let that prevent them from coming, because inevitably, once they arrive, they

A native of Meridian, MS, Julie Skipper is the Development Officer for the Community Foundation of Greater Jackson. She graduated summa cum laude from Millsaps College with a degree in art history and received her J.D. from Vanderbilt University Law School. After returning to Jackson, she practiced law for three years until starting her current position. Julie is actively involved in the Jackson community.

She is a proud resident of downtown.

She currently serves as chair of the YP Alliance, a board member of the Women’s Fund of Mississippi, on the advisory council for Downtown Jackson Partners, a board member of the Jackson Progressives, and president of the Downtown Neighborhood Association.

She is a 2007 graduate of Leadership Greater Jackson.

18 - Greater Jackson Business

have a wonderful time and return with friends.

Along with perceptions (even if unfounded) about safety is the simple fact that the renaissance is still underway. That means that sometimes those of us living here feel like pioneers of sorts. It means, for instance, that we don’t yet have a corner store; if I want a Diet Coke on a Sunday, I have to get in my car and drive somewhere. It means that residents and guests at the King Edward pause to think about whether they should drive from their place down to Tye’s or Underground 119, instead of walking. When I go from my apartment to places in other parts of downtown at night, I wonder the same thing. It’s not that I wouldn’t be safe, but there’s simply not much (at night) between the two ends of downtown yet. I know that it will change, though, and soon I won’t give walking from one end to the other at night a second thought. How do I know this? Because of the energy I see each day—and night. Because as more and more people live and play here, the demand for more establishments and services will grow, and they will come. Maybe those first developers had to take a field of dreams approach—they built it, and we came. Now that we’ve come, they’ll continue to build more. - GJB

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Greater Jackson Business - 19

co m m unity works

The Consequence of Distance

BY TOM RAMSEY Contributing Writer

I

get some ribbing from my friends about the way I end my Facebook status updates.

After every banal posting about “Tom is grocery shopping” or “Tom is walking the halls of the Capitol,” I end with “...and is keeping an eye on his kids’ Facebook activities.”

It started as a tongue-in-cheek way to remind my kids of my rule about online postings. From the time they were allowed to wander about in cyberspace I told them “Don’t post anything that you would not sign your name to, print on paper and hand to your grandmother for inspection.” That one simple rule should apply to everyone online.

What makes this a great rule is that it shortens a great distance. Online, the kids can hide in the distance but handing the printed word to Grandma brings it back to a face-toface situation. This distance can be blamed for much of the incivility in our world today.

To see just how far we have migrated away from civility and manners, take the time to read George Washington’s pamphlet “Rules of Civility & Decent Behavior.” There you will find 101 rules (adopted from a Jesuit manuscript) that hold many truths, but seem quaint and outdated. Today, civility is often seen as a display of weakness but here is a pamphlet on civility authored by a man whose courage and backbone helped to forge the strongest nation on Earth. He wasn’t some prissy commentator or panelist on a morning talk show. He was a fierce warrior, a dominant politician, a respected leader and a feared 20 - Greater Jackson Business

adversary, yet he carried himself with dignity and civility.

Why have we abandoned the example set for us? We have grown distant. When Washington wanted to get his point across, he had to either travel the country and speak in front of large crowds or publish articles bearing his name.

He had to pull his audience close to him and allow them to look into his eyes or his heart. If George was around today, I doubt if he would defend his positions online while hiding behind the screen name of CherryTree76 or POTUS#1.

So why do we lurk in the shadows of anonymity? Why do we hurl incivilities at strangers? Simple: if we don’t have any fear of being caught, we let our baser emotions run amok. When there are no consequences, the level of poor judgment escalates. Another way of thinking about this is from the perspective of watching a football game. If you are at home, alone, in front of the television people can hurl the worst profanities at the referee on the screen and not think twice about what is shouted. That distance is infinite. In the stands, among a group of fans, but with some distance between you and the ref, the shouts would be biting and nasty but more civil than if you were at home alone. If you were lucky enough to snag a sideline pass, the shouts might even get reduced to “C’mon ref!” as he passed ten yards in front of you. If by some strange circumstance, you happened to be at a party after the game with that same ref in the buffet line beside you, the exchange would likely be “You know, from where I was sitting, it sure looked like Snead’s arm was making a forward motion. From on the field, did that really look like a fumble?”

Now, take that same diminishing level of venom and apply it to the web in the form of a mathematical equation with rudeness represented by “R”: “NoBama22” + newspaper online forum + hot issue = R10 “Bob_in_Belhaven” + newspaper online forum + hot issue = R3 “BobJohnson” + newspaper online forum + hot issue = R “BobJohnson” + Name and address in the post + newspaper online forum + hot issue = r See how this works? I know what you are thinking...“Sure Tom, that explains the web, but what about Joe Wilson’s ‘You lie!’ and Kanye West rushing the stage at the VMA awards?”

My explanation goes along with the ideas

put forth in the book Fixing Broken Windows

by George Kelling and Catherine Coles. They propose that if a building has a few broken windows that go unrepaired, vandals will continue breaking windows and eventually break into the building. Once squatters are in the building, criminals will utilize the structure as a place of business and you end up with a crack house. The same goes for litter. If litter goes un-cleaned on a sidewalk, eventually it will attract more litter until trash bags and broken appliances are dumped and the property rapidly declines in value. People become desensitized to their surrounding and tend to react to their environments. Rudeness begets rudeness. Rancor on the web seeps into everyday life and before you know it our normal conversations start to resemble backlot football trash talking.

The cure for this is simple. First, lead by example. Then fix the broken windows, pick up the trash and make an example of the vandals and litterers. After you read this article, go to every web forum where you regularly post and change your screen name to readily identify yourself. I post under Tom Ramsey or TomRamsey if the site doesn’t allow spaces. Believe me, it makes you think more about what you post and when doing so, the message gets clearer and not diluted by nastiness that people just ignore anyway. When you do this, you have staked out the moral high ground and can call out incivility when you see it. Challenge others. My grandfather used to say that rot is easily cured by sunlight and fresh air. If you want to make your online community (and thereby your everyday life) a more civilized place, run off the vandals by exposing them for the cowards they are. If you see a racist online posting or a nasty rumor being spread simply post this: “BigGuyMS – you seem very passionate about your views.

To allow us to take your post seriously, own your message and tell us who you are. I think your views are way off-base and I would be happy to debate you in a public forum. You pick the time and place and I’ll bring snacks for when we finish.”

Your online community will thank you and you might even spark a truly “civil” revolution.

- GJB Tom Ramsey is a Lobbyist and former investment banker. He is a Partner in the firm Athena Government Relations. When not roaming the halls of the capitol he feeds his passions by teaching private cooking lessons and writing short stories.

BUSINESS

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G J B E X C L U S I V E

Room 210

B

ack in the days when the Sun-n-Sand was in full bloom and you could still smoke in the Capitol, if you wanted to eavesdrop on the latest political gossip, you just had to hunker down in a dark corner of a proverbial smoke-filled back room and keep your ears open. Rumors overheard were filtered out slowly in personal conversations and phone calls and eventually ended up finding their way to the ear of a reporter who published his scoop in the next morning’s paper. A lot has changed since then.

The smoke-filled back rooms are gone now that the favorite political hangouts went smoke-free. And rumors don’t trickle anymore. They are shot out of a cannon and quickly broadcast over tweets, Facebook posts, blogs and text messages. By the time they make the papers, they are already yesterday’s news.

Besides that, most rumors now are just spin.

But in the midst of all this change, one thing has remained constant: Room 210.

This formerly smoke-filled back room is where the lobbyists congregate during the session to simultaneously listen to the floor debates in the House and the Senate over loudspeakers mounted on the room’s east and west walls. Like a nebula is a nursery for stars, Room 210 is the birthplace of rumors, spin, conjecture and innuendo.

Each month, Greater Jackson Business will recruit some of the denizens of Room 210 and buy them lunch or coffee. We’re hoping that the shock and awe of them not having to reach for the check will loosen their tongues and we can be let in on the “inner circle” talk.

To protect their identities, we will write the column and answer questions without direct quotes, using composite answers from all of the participants. It’s what these sultans of spin, these maestros of mission statements, like to call “plausible deniability.” - GJB To have your questions answered by our star-chamber panel, just send them to ask210@ greaterjacksonbusiness.com. We’ll select the best questions and bring you the answers.

22 - Greater Jackson Business

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E C O N O M Y

The outlook for 2010 2

009 started with stock market volatility reaching record highs, the S&P 500 heading towards its worst decline since 1932, and credit spreads soaring. Everyone was wondering if we were heading into Great Depression II. What a difference a year makes. The Great Recession is over, the S&P 500 is up nearly

500 points from its March 2009 lows, and a collapse of our banking system has been averted.

With the New Year upon us, investors are left pondering where we are in the current market cycle. Will we see a correction? What sectors will lead the market? What are the long-term ramifications from all of the government intervention? How will the economy fare?

BY JEREMY NELSON Contributing Columnist

Based on the research of the investment team at Pinnacle Trust, we are looking for 2010 to unfold in three stages. Stage one will be a continuation of the 2009 rally, stage two will be a correction, and stage three will be a recovery.

Our best guess is that the market will continue to rally through the first quarter. This continuation stage should be highlighted by leadership in the technology, materials, and energy sectors. Continued strength in commodity prices is expected, and we believe small cap stocks with moderately outperform large cap stocks.

The second stage, or the correction, will begin in the second quarter and last through the third quarter.

During this period we expect to see the defensive sectors such as utilities, health care, telecommunications, and consumer staples outperform. We will also likely see a correction in commodity prices during this period.

After the correction phase, we expect to see a resumption of the current cyclical bull market. We anticipate leadership again, from the technology, materials, and energy sectors. The recovery should last through the end of the year.

Regarding the economy, we are looking for GDP growth of 3.1%. We do not expect a strong consumer as there are many headwinds. Factors such as sluggish job creation, high unemployment, and lack of credit, will make it difficult for growth in consumer spending to reach historical norms. The growth in the economy will, in all likelihood, come from restocking inventories, a favorable interest rate environment, and government spending.

Globally, we still favor emerging markets and resource based economies. Emerging markets and resource based economies are currently in long-term or secular growth trends. That being said, we do expect a correction around the second or third quarter.

After the year is done, we expect 2010 to have been a positive year for investors and the economy alike.

Despite a correction in the stock market in the middle of the year, the current recovery should last. Beyond 2010, we are concerned about the potential for inflation, rising interest rates, and the continuation of the secular bear market that we have been in since 2000. But that is a story for another day. - GJB

Jeremy Nelson, CTFA is VP & Investment Officer, Pinnacle Trust, located in Ridgeland. He may be contacted at jnelson@pinntrust.com (601) 707-9221 24 - Greater Jackson Business

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F I N A N C I A L

For Richer or Poorer E

very spousal financial relationship is unique. Through the years, couples develop their own systems for handling financial matters. Sometimes it is one partner’s responsibility to manage all finances, sometimes the other’s and sometimes a combination. Whatever the situation, certain information should be shared.

Couples should consider mutual responsibility for and knowledge of:

BY ROBERT DIENELT Contributing Columnist

26 - Greater Jackson Business

Retirement plans: Take time to fully acquaint each other with employer retirement benefits.

Both partners should have current knowledge of pension plans, 401(k) accounts and IRAs. For a complete picture of expected retirement benefits, become familiar with each other’s Social Security benefits, as well. Understanding retirement benefit information will bring clarity and facilitate retirement planning.

Credit card documents: This one can be scary. Some may prefer to not know how much credit card debt their spouse has accumulated. But it’s wise to know where to find account numbers in case one loses his or her wallet and needs the other to help cancel the card. Also, mutual awareness of credit card debt amounts will help with developing a family’s overall financial plan.

Power of attorney: It is generally a good idea to have power of attorney on any individually owned assets, just in case one becomes ill or otherwise unavailable. Power of attorney can be limited to specific functions for a certain period, such as selling stocks or withdrawing money while traveling. A broad document that authorizes each partner to handle almost any situation in the other’s absence is also a consideration.

Wills, trusts and life insurance: It’s especially important to share information about wills, trusts and life insurance if either has been married before. There could be restrictions on how some assets may be used and beneficiaries left unchanged by mistake. Most important, make sure each partner knows where to find wills and will be able to easily access it if something were to happen.

Health insurance policies: Most insurance companies will cover care administered in the first 24 to 48 hours of a medical emergency, even if the coverage details have not been sorted out. But the situation isn’t as clear with hospital visits that are less urgent. If each partner is covered under a different insurance plan, both should be familiarized with the requirement “hoops” they may have to jump through.

If one spouse had a sudden illness, would the other know which doctor to call first to get an okay for treatment? If not, they risk running up big bills at an out-of-network doctor.

Business loans: If one spouse owns a business or is a partner in a professional firm, both should know about any personally guaranteed loans. It is critical to be aware of liabilities since household assets can be hit if the business can’t repay the loan.

While many don’t necessarily need to know everything about their spouse’s finances, maintaining a working knowledge of the above points can help maintain proper, balanced control over a family’s financial affairs. - GJB

Robert A. Dienelt, AAMS (Accredited Asset Management Specialist) is a Financial Advisor with Raymond James Financial Services, Inc. Member FINRA/SIPC. Dienelt’s office is located in Brandon, MS. www.RobertADienelt.com

This material was prepared by Raymond James for use by Robert A. Dienelt, AAMS of Raymond James Financial Services, Inc. Member FINRA/SIPC).

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Greater Jackson Business - 29

M A R I A N N A O N M A R K E T I N G

Revolutionize your Business:

A Story Worth Telling

E

arly in my career, I was invited to teach become a media buzz-word referencing locally a small business marketing seminar in owned and operated businesses, regardless of what was then widely considered to be specific geographic location. By the latter definiMississippi’s banner Main Street program. I had tion, if a business is “locally owned and operated,” admired this community from afar for its diverse it is part of America’s economic “Main Street.” wealth of independent retail businesses and its Regardless of definition, my own early expericharming downtown experience. ence on Main Street – and dozens of similar expe After the well-attended seminar, I offered the riences since then – remind me that whether it’s attendees a free consultation – a time to privately a case for historic preservation or simply support pick my brain. An overwhelming percentage of of the local Little League team, failing businesses the downtown business owners took me up on often take their community down with them – that offer. and growing local businesses usually develop far A little surprised, but then inflated with ego more than themselves.

BY MARIANNA HAYES and plenty of youthful energy, I approached the Contributing Columnist downtown businesses owners assuming that Time for a Revolution their successful façade told the entire story. What I’m pleased to report that the Mississippi comhappened next changed my mindset forever. It munity I described is once again thriving and altered the course of my life. self-sustaining. Nearly all of the local businesses are back on track and Instead of stable businesses looking for the next level, I found fab- working together to achieve a more secure future for their businesses ulous business models crumbling behind beautiful facades. Most of and the next generation of local entrepreneurs. those retailers had experienced severely declining revenues over the But how did they do it? Here’s the system this community of busipast five years, some to the point of showing losses in the previous nesses followed. Maybe these steps will help you and your business as year. Business owner after business owner shared their desperation and well. willingness to change, and I realized that good Southern pride and per- Admit the need for a revolution. Webster’s Dictionary defines “revosistence was all that held these businesses afloat. lution” as a “far-reaching change in ways of thinking and behaving.”

Unfortunately, a mix of poor marketing choices and complacent Always be on the lookout for complacency. Bad habits live there that habits by the business owners and a lack of awareness to spot the warn- will sink your business. There is always room to improve. ing signs of entrepreneurial distress by their local Main Street program What business are you in? As a business owner, you must acknowlleft an entire community dangling on the brink of economic peril. edge that you aren’t selling goods or services anymore. We live in an ex My unexpected baptism into the reality of entrepreneurship hum- perience economy, and customers are buying feelings and experiences bled me. These business owners taught me a lesson and ignited a pas- from you. Identify the “business” you are in, then craft a customer exsion in me: to encourage small business owners and equip them with perience that affects all five senses in a concrete way. the right tools for success.

Take inventory. Detox your business marketing and otherwise. In

a word: simplify. Complicated messages, multi-channel communications methods, confusing offers, and low-margin or time-intensive What is “Main Street?”

Officially, “Main Street” is a term held tightly by the National Trust products are wasting your time and money! Get rid of them. Only confor Historic Preservation’s National Main Street Center. The National tinue what’s working best, and you will free up your time and money Main Street Center’s mission is to generate economic revitalization of to work on your business not just in your business. Eliminating waste commercial districts through historical preservation. Their system ad- fuels passion. vocates the Main Street Four-Point Approach® of Organization, Eco- Develop a written road map to success. This is your marketing plan nomic Restructuring, Design and Promotion. (For more information and should contain step-by-step goals, timeline, tactics, budget, meavisit www.mainstreet.org.) Lately, however, the term “Main Street” has surement, and review and revision techniques. It doesn’t have to be 30 - Greater Jackson Business

long and complicated, but it does have to be written. In my experience, when small business owners wrote down their measureable goals and a roadmap to achieve their goals in the form of a cash-flow projection, they accomplished the goals 100% of the time. Seriously.

Focus on retention first. Improve existing customer value and communication first.

Many businesses can experience significant growth to their bottom line by focusing 100% of their marketing budget on customer retention and improved customer loyalty.

Establish appropriate partnerships. These include cooperative marketing programs, promotional alliances with other businesses marketing to the same target audience, partnering for special events, cause-related marketing with non-profit organizations, etc.

Offer samples. Offer samples or low-cost ways to sample your products, service or business experience. Detailed customer references and testimonials also fall under this category.

Social media also offers unique opportunities to extend samples of both product and experience.

Shamelessly promote your brand. Brand = reputation + visual representation of the same (logo, color scheme and Internet domain name). If you don’t have the visual part covered – get it created. By a professional. Use your brand in a consistent familiar format on everything you distribute.

Be open 24 hours a day. Use e-commerce, web sites, e-mail marketing, social media, and other web-based tools to maintain a 24 hour a day, seven day a week presence and relationship with your customers.

Walk the talk. Don’t put forth the effort to create a plan for success and then fail to execute the plan. As the owner of the business, you must lead by example. Show your employees how to follow your lead – don’t just tell them. Your enthusiasm and example will rub off on them; your passion will be contagious. Everything is marketing – including your attitude and that of your entire team.

Consciously avoid potholes. It is tempting to fall into a pothole and be derailed by looking at your competitors or listening to a good salesperson instead of following your own plan. Your marketing plan knows your business and its unique experience best. Your marketing plan will lead to your success.

When you listen, listen to your customers – not the dozens of other voices that would seek to undo you.

Measure, Review & Revise. During the planning phase (Step 4), decide what metrics will measure success, then monitor and measure those – and those only. Do not get distracted from your success mission by analysis paralysis. Above all else, always have a systematic method for collecting customer feedback – good and bad. Use the results of your measurement to adapt your plan for the future or to meet new challenges or opportunities. You are a small business after all – flexibility is one of your core strengths.

These steps are a system we developed called the “12 Steps to Revolutionize Your Business” – the key to YOUR Results Revolution. For more details on how to implement these “12 Steps” in your business, stay tuned here, I’ll be digging deeper into the “how-to” of each step and sharing specific case studies with you over the next few months.

But don’t take my word for it...

Beginning Tuesday, March 2, you’ll be able to learn how other small business owners achieve revolutionary marketing results.

Every week, we’ll interview a successful small business owner. And every week, you’ll learn from experience–the road-tested, real-life experience of everyday Main Street marketers just like you.

Visit www.resultsrevolution.com to learn more about the Results Revolution, including business owner of the week, marketing topic, broadcast times, and how to chat with us online or at our live broadcast location. - GJB

Marianna Hayes Chapman is founder of the Results Revolution (www.resultsrevolution. com), an integrated, multi-channel effort dedicated to educating, connecting and promoting locally owned and operated small businesses across America. Marianna is also a nationally-recognized marketing speaker and coach at HALO Business Advisors. Marianna and her husband Andy Chapman advise clients on a broad range of marketing related decisions including the crafting of exceptional marketing messages for new media and the social web. www.facebook.com/TeamHALO - www.halobusiness.com - www.twitter.com/resultsrev

Open Doors.

Tougaloo College • 500 West County Line Road • Tougaloo, MS 39174 1-866-42-GALOO | 601-977-7871 | www.tougaloo.edu Ask about our 22nd Annual Tougaloo College Business Luncheon February 26, 2010 | Hilton Jackson Hotel | 601-977-7871 for information / table purchases

Visit us online at

www.greaterjacksonbusiness.com Greater Jackson Business - 31

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JBHM Education Group begins 10th anniversary with announcement of HCC scholarship JACKSON – Nearing its 10th year as a school-improvement company, JBHM Education Group has established a $5,000 scholarship opportunity at Hinds Community College for graduates of Hinds Agricultural High School.

Hinds AHS was the first school in which JBHM Education Group began providing services to strengthen instruction and leadership in 2000-2001, according to Dr. Mike Walters, president and a co-founder of the company.

“As we begin our tenth year, helping districts meet increased accountability demands and higher achievement standards, we are proud to acknowledge our first school partner,” Walters said, announcing the scholarship.

JBHM Education Group has more than 250 specialists working in school districts across several states during the current school year.

The deadline for applying for the JBHM Education Group scholarship is March 1, 2010. The recipient must maintain full-time enrollment status at any Hinds Community College location and meet other eligibility criteria, including at least a 2.5 cumulative high school and/or HCC grade point average.

The scholarship winner may retain the scholarship for up to four consecutive fall/ spring semesters as long as requirements established by JBHM Education Group and HCC are met.

For more information on eligibility criteria and the application process, contact the Hinds Community College Enrollment Management Office, 601-857-5261.

JBHM Education Group, based in Jackson, Mississippi, provides on-site, job-embedded improvement consulting in schools from South Carolina to New Mexico and supports state education departments and local districts in

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increasing the effectiveness of school leadership and classroom instruction. Teacher coaching, principal mentoring, and services for struggling learners and special education students are also offered. For more information, visit JBHMEdgroup.com.

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