Montgomery Business Journal – November December 2014

Q&A WITH KEIVAN DERAVI PAGE 8

ARE YOU READY FOR A BOWL GAME?

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THE FRUITS OF A STRONG FOUNDATION PAGE 52

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334.834.7660

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CONTENTS

40

CHAMBER NEWS 06 Calendar 22 Reporter’s Notebook 63 Business Buzz 70 Members on the Move 73 Ribbon Cuttings & Ground Breakings 74 New Members 76 Economic Intel

NOVEMBER/ DECEMBER 2014

COVER STORY:

Mac McLeod and the Development Department are moving projects forward.

FEATURES 8

Q&A WITH KEIVAN DERAVI Deravi on the 2015 economy

14 TAKING FLIGHT New campaign hopes to lure passengers to fly MGM 18 SOMETHING OLD, SOMETHING NEW Recycled wood takes center stage at The Warehouse at Alley Station 28 KNOW WHERE YOU STAND (FOR FREE) Entrepreneur in Residence counsels Small Business Resource Center clients 30 GUEST COMMENTARY Low foreign rates won’t keep U.S. rates from rising 32 GUEST COMMENTARY Financial experts advocate a well-diversified portfolio

36 FUELING A NEW THINK TANK Air University tackles today’s issues 50 WHOLE NEW BALLGAME Raycom Media Camellia Bowl puts the spotlight on Montgomery 52 BUILDING ON A SOLID FOUNDATION Integrated Computer Solutions succeeds via the Small Business Resource Center 55 LIGHTING NEW PATHS Torchbearer projects touch Montgomery 58 BROADCASTING BEYOND CAMPUS BORDERS Station manager dispels misconceptions about WVAS-FM 60 CAPS AND GOWNS FOR ALL Aiming for a goal of 90 percent high school graduation rate

November/December 2014 Montgomery Business Journal

3

THE NUMBER ONE BUSINESS SOURCE FOR MONTGOMERY AND THE RIVER REGION PUBLISHER

Randall L. George EDITORIAL

Tina McManama David Zaslawsky Lashanda Gaines Melissa Bowman DESIGN

Copperwing Design PHOTOGRAPHER

Robert Fouts ON THE COVER

Mac McLeod is the Director of Business & Commercial Development for the City of Montgomery.

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Linda Drumheller 334-240-9494 mbjsales@montgomerychamber.com

Montgomery Business Journal c/o Montgomery Area Chamber of Commerce Post Office Box 79 41 Commerce Street Montgomery, Alabama 36101 Telephone: 334-834-5200 Fax: 334-265-4745 Email: mbj@montgomerychamber.com www.montgomerychamber.com/mbj The Montgomery Business Journal (USPS NO. 025553) is published monthly except for the combined issues of June/July/August and November/December, by the Montgomery Area Chamber of Commerce, 41 Commerce Street, Montgomery AL 36104, (334) 834-5200, www.montgomerychamber.com. Subscription rate is $30 annually. Periodicals Postage Paid at Montgomery Alabama, 36119+9998, USPS NO. 025553. Volume 6, Issue 9 POSTMASTER send address changes to Montgomery Business Journal, c/o Montgomery Area Chamber of Commerce, P.O. Box 79, 41 Commerce Street, Montgomery AL 36101, or email mbj@montgomerychamber.com. The Montgomery Business Journal welcomes story ideas from its readers. Email to: editor@montgomerychamber.com. Subscriptions are a part of the Montgomery Area Chamber of Commerce dues structure. Subscriptions can also be purchased for $30 per year at www.montgomerychamber.com/mbjsub.

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Montgomery Business Journal November/December 2014

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Montgomery Business Journal November/December 2014

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Keivan Deravi is an economics professor at Auburn University at Montgomery and special assistant to the chancellor.

Q&A

ECONOMIC FORECAST interview by David Zaslawsky

Montgomery Business Journal: What is your 2015 economic forecast for the Montgomery region? n Deravi: I believe that 2015 is going to be a jailbreak for economic activity.

There is so much pent-up demand and pent-up resources and eventually they have to be brought in to the mainstream. By that I mean, if you took a look at the overall Montgomery growth – the metropolitan area – to say that it’s been really, really weak is an understatement. Over the last four or five years (2008 to 2012), the average growth rate in the metropolitan area had been about 1 percent.

I can say with a great deal of confidence that it’s probably the lowest we have had coming after such a deep recession.

Please elaborate. n When you come out of a recession, the growth is going to be overshooting – over-exaggerating, but this has really not been a typical recovery. This has been a very, very slow growth without what I would say acceleration at all.

We had growth with no acceleration, but now we’re going to get acceleration attached to growth.

What percentage increase are you looking at in 2015 for the Montgomery metropolitan area? n For Montgomery itself, somewhere upward of 3 percent as opposed to 1 percent.

That’s significant. n It’s significant, but the problem is that the other counties may have adversely impacted growth for the metropolitan area.

You’re talking about Autauga, Elmore and Lowndes counties. n And Macon County. There really is not much going on in Autauga County in terms of production. Millbrook doesn’t have much manufacturing. The biggest business (in Elmore County) is tourism because of the expansion of the gambling in Wetumpka. The heart and soul of the

8

Montgomery Business Journal November/December 2014

metro area would be Montgomery. Montgomery has underperformed in almost every area. When I look at the metro GDP for 2012, Montgomery underperformed in every year with the exception of durable manufacturing, and durable manufacturing is single-handedly coming from Hyundai. That’s how (Hyundai) grew by double digits in 2011 and in 2012 about 7 to 8 percent and still we hear that the automobile industry has not run out of the cycle.

(August) was a great month for Hyundai. That’s where the growth is coming from.

What other sectors will drive growth in Montgomery next year? n We’re looking at a rebounding in the housing market. The inventory is dwindling to some extent and new housing is overdue. Housing will be pretty much dominated by the demographics of the buyer. We will most likely see a surge in the higher-priced levels then midpriced levels.

Are you talking about $300,000-plus houses? n Yes, simply because the income has been generated for those income-earners in the 1 percent, but that will come to an end. What will happen is there will be more solid job growth because there is pent-up demand in retail. Retail activity will start showing some life, and that’s going to lead to employment and employment is going to lead to even more retail.

Montgomery Mayor Todd Strange talks about how the annual retail sales tax revenue went from $98.2 million in 2007 and fell to $83.7 million two years later. Will Montgomery return to the pre-recession level of $98-plus million? n I think this year we’re going to see about 5 percent growth, which is fantastically better than 2013, which was about 3 percent.

What about 2015? n We’ll probably see about 6 percent or 6.5 percent simply because we think housing is going to have a lot of activity. The second thing is the formation of new businesses, because what was holding back a lot of businesses is uncertainty about the future and banker reluctance of getting engaged.

What do you mean by that? n I simply mean that interest rates are extremely low and banks are basically stealing business customers from each other – cannibalism – and that even pushes the rate lower. In 2015 when the (interest) rate goes up,

banks will be more willing to take a chance. I am absolutely convinced by the end of the first quarter or middle of the second quarter in 2015, the Federal Reserve System is going to raise interest rates.

That’s a bit ahead of the consensus, which is expecting the Fed to raise interest rates in the summer of 2015.

Do you expect the first hike will be 0.5 percent? n Probably go 0.5 percent to not spook the (stock) market. In about a year’s time, the rate on the 10-year Treasury bond will probably be 5 percent. [It was 2.5 percent at the time of this interview.] The Federal Reserve System is looking at how many jobs are being created (monthly) and the average is 210,000 to 215,000.

What about Alabama? n At the state level, we are OK. We are growing about 14,000 this year. We should be growing about 20,000 in an average year for the state.

“I believe that 2015 is going to be a jailbreak for economic activity.” Keivan Deravi Will Alabama hit that 20,000 mark in 2015? n Mostly likely it will hit 25,000.

From what you’re saying, is more of the projected job growth in 2015 coming from retail instead of manufacturing? n Manufacturing led us to this point, but construction is going to come back. It’s going to have a much bigger contribution. Another factor that played a big role in the Montgomery market is the state government. State government had been contracting or right-sizing or however you want to put it. I think that era is over. I think that after we successfully pay back all the money we borrowed from rainy day funds, there will be a large amount of money that can be spent on a variety of programs, especially the Education Trust Fund.

Continued on page 10

November/December 2014 Montgomery Business Journal

9

Continued from page 9

What you have been describing is a very much improved economy in 2015. n It is going to be a good year in 2015 and to some extent 2016, but our biggest fear right now is we are a creature of history – meaning that we predict the future by looking at the past. This recession is long in tooth.

It started in 2009 and if the recovery continues in 2015 and 2016 that we predict it to do, we’re looking at a seven-year recovery, which is a long and enduring recovery on an historical basis. The odds are for a recession to occur after you pass five years (of a recovery). We are looking at statistical odds vs. market reality.

“…housing will be one of the (strong) sectors and there is going to be a rebound in the government sector.”

Keivan Deravi

What are the odds for a recession in 2016 or 2017? n At any point in time, you’re looking at 25 percent odds of a recession, but we’re probably looking at 35 to 40 percent odds. It’s not because of the markets.

I talked to one of the region’s top homebuilders and he expects to see his company’s new home sales increase 20 percent in 2015 and 2016 to reach a previous 17-year average. Will housing lead the recovery next year? n No, I think it’s going to be more broad-based. There have been so many weak sectors, but housing will be one of the (strong) sectors and there is going to be a rebound in the government sector. Professional services – lawyers and accountants – we were negative in that category. I think we’re going to get some positive growth there. Retail is going to be strong, too. What makes me feel better is that it’s going to be a broad-based recovery – it’s going to spread everywhere, but …

There’s always a but … n There’s a new normal in place, meaning that the people who did better in the last recovery won’t do as good this time.

This recovery is going to be very selective in terms of skills. There is going to be pressure on the middle income because of technology and globalization. The middle-income class for the last five years fell behind an enormous amount, so for them, it’s hard to catch up. Any positive recovery still won’t be sufficient to make up the difference. The accelerated recovery is

going to impact the higher skills and the lower skills.

For the middle class, it’s still going to be a recovery, but a slow recovery.

The automotive sector has not slowed down. Analysts at one automotive website raised their 2014 new car sales forecast to 16.4 million, which would be the best year 2006 when sales hit 17 million. What does 2015 look like? n At some point, yes. I think we still have room to go to 18 million, but I’m not as optimistic about the automobile industry as some of the experts are because the success of the past does not mean success in the future – because there is a market saturation at some point.

The average vehicle is still 11 years old.

That leaves a lot of room for new sales growth. n That is high, but my suspicion is that we are in the sweet spot in the automobile industry that will last four or five years and after that, we have to come back to reality. It will probably be another year or two before the sweet spot is history. From my conversations with the bankers, a lot of these cars are being purchased with cash. People are basically saying that (there’s no point in) putting my money in the bank with no interest rate, so I could go ahead and buy whatever I need if I have the cash rather than put the money in the bank and lose it to inflation. A lot of the decisions are very intelligent, economic decisions being made by consumers. Lowinterest (rates) in the bank are changing the tastes and preferences of the consumer in regards to how they spend their cash.

Is that going to continue? n It’s going to continue, but when the (interest) rate goes up it will be different, because rather than buying a brand new car, they can earn about 4 percent in the bank.

I know you review gasoline tax and cardboard and cartons for trends. What are those things telling you about 2015? n The gasoline tax is not standing out like gangbusters. They are holding to 3 or 4 percent.

That means there is a steady flow of packaging, transportation, delivery, which is going on. That will stay at that level because a lot of our retail products will come from overseas.

What other factors impact the economy? n There are some special factors – one is Apple factor and one is CNN factor. The Apple factor is whenever Apple comes up (with a new product) and you have to have it, it disrupts other (spending) plans that you have. The CNN factor is if there is a war or event going on you get glued to the TV and you don’t go out. There’s always these two effects that we have to worry about.

Continued on page 12

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Montgomery Business Journal November/December 2014

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Are there any other sectors in Montgomery that will rebound in 2015? n Right now, we are looking at four areas for growth: housing, professional services and another was government. I think another area is banking and the real estate sector. Banks will begin to start adding folks. You will see some growth because the confidence will lead to more borrowing – businesses will be more confident. A lot of the business that took place in the banking sector was refinancing.

A lot of refinancing made a lot of bankers really, really busy. Business loans are still very slow and bankers are extremely conservative in their approach. A lot of those recession hangover issues will be a whole lot better, but will not go away. I have to admit to you, when we talked last year at this time, I wasn’t as optimistic about 2015 because I was overwhelmed with the new normal of the economy. I’m not saying that this new normal and new economy will not play into (2015), but I’m saying there is so much pent-up demand both from consumers and businesses.

You’re saying that demand means more buying from consumers who have been slow to spend. n Consumers have cleaned up their financial (situation). They saved a lot – the savings rate is much higher than it used to be back before the recession.

Credit card use – we follow that – back in August set a new record.

Are you saying people are spending more? n Yes. After clearing a lot of credit card debt – I’m talking about the average, not everyone – they are beginning to go back to their old habits.

“There’s a new normal in place, meaning that the people who did better in the last recovery won’t do as good this time.”

Keivan Deravi

Spend, spend, spend. n This is a spending economy. This is an economy where we like new toys and we spend on new toys.

What you’re saying is that both consumers and businesses are more confident. n They are more confident and there is less bad news from the state.

Getting back to the city’s retail sales revenue: Will Montgomery get back to the pre-recession of $98.2 million in 2015? n Most likely. Many of the states and many cities have already hit the 2008 level, so they have gone back to where they started. Alabama hasn’t.

For whatever reason, the Alabama economy has been underperforming.

There have been a lot of job announcements, but a lot of those positions have been hired. n The announcements are great, but you have to look at the actual (number of people working).

From 2011 to 2013, I think we created about 29,000 jobs in the State of Alabama. If you look at South Carolina, I think they created 70,000 jobs. If you look at South Carolina, 70 percent of the jobs were in high-paying jobs and ours was 30 percent. We look at that mismatch, which is truly coming from the lack of diversification that we have. They are doing a whole lot better in terms of the new economy.

Why hasn’t Alabama created more jobs during that time span? Is it because of federal and state government cutbacks? n I have a different theory. Even though we can blame state and federal government, if you look at employment and GDP (gross domestic product), state and federal are important. I think they count for 23 percent. We don’t not see huge jobs in state employment, maybe a 10,000 drop. In a 2 million labor force market, that’s not that big. We had a broad-based decline or lack of recovery in almost everything in the state – I think because of the mismatch that we have between the state economy and the new economy. The new economy is being driven by two things: energy and high-skilled folks. Middle income is going to get hurt and low income will get some employment gains, but there is not going to be much.

The state doesn’t have an energy sector such as Louisiana or Texas. n Or South Dakota.

We don’t have that. Yesterday, we were looking at South Dakota. The unemployment rate in South Dakota was 2.3 percent. n

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Montgomery Business Journal November/December 2014

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Taking Flight

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Montgomery Business Journal November/December 2014

New campaign hopes to lure passengers to fly MGM

by David Zaslawsky photography by Robert Fouts

Chip Gentry

A very informal get-out-themessage campaign is having an impact on the monthly passenger totals at Montgomery Regional Airport.

Chip Gentry, vice president, Air Service Development for the Montgomery Area Chamber of Commerce and the Montgomery Regional Airport, and Montgomery Regional Airport Executive Director Phil Perry have been talking to various groups about the importance of flying out of Montgomery. If July, August and September are any indication, they are being heard: >>July’s passenger traffic was 19 percent better than last July. >>August’s passenger total was 14 percent better than August 2013. >>September, a notorious slow month for airlines, saw passenger totals jump 23 percent more than last September.

“The good thing is that this is strictly organic growth,” Gentry said. Money was spent for a study to see “where we start.”

“The good thing is that this is strictly organic growth,” Gentry said.

Money was spent for a study to see “where we start.”

Chip Gentry, vice president, Air Service Development for the Montgomery Area Chamber of Commerce and Montgomery Regional Airport

PERFECT SPACE PERFECT PLACE

Gentry, of course, hopes the upswing in passengers continues, and with a new $200,000 grant in hand to promote the Montgomery Regional Airport, just imagine what the results will be with a formal, well-structured campaign. The campaign, which was expected to launch in October, will tackle the loss of passengers to nearby airports – leakage in the aviation business.

Montgomery was just one of 16 communities to receive a $200,000 grant out of 52 applicants and that money will go a long way in a small market, according to Gentry. “This is going to fund our marketing campaign,” he said. “We will spend the money wisely and strategically.”

He said that some airports will spend the grant money trying to attract new service, but that is not the case with Montgomery.

“Until we start using what we have – we can’t attract new service,” Gentry said. “We have to reduce that number (leakage).

We tell people that all the time.”

Continued on page 16

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November/December 2014 Montgomery Business Journal

15

PASSENGER TRAFFIC 2013 VS 2014

Continued from page 15

The goal, according to Gentry, is reducing the leakage by 30 percent next year and 40 percent in 2016. When the leakage has been reduced by 30 percent the airlines will look to either bring larger airplanes or add flights, Gentry said. Airlines keep tabs on what their competitors are doing, Gentry said. â&#x20AC;&#x153;You want to create the mystique â&#x20AC;&#x201C; the interest in your community to where the airlines that are not served here would take an interest in whatâ&#x20AC;&#x2122;s going on.â&#x20AC;?

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Montgomery Business Journal November/December 2014

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Montgomery â&#x20AC;˘ Birmingham â&#x20AC;˘ Charlotte November/December 2014 Montgomery Business Journal

17

While taking a reporter on a tour of The Warehouse at Alley Station, co-owner Greg Allen picks up a couple pieces of paper on a stairway. This is his baby and he wants everything perfect. And it is.

Something Old, Something New Recycled wood takes center stage at The Warehouse at Alley Station

by David Zaslawsky photography by Robert Fouts

18

Montgomery Business Journal November/December 2014

Greg Allen, along with Jere Beasley, are the owners of The Warehouse at Alley Station.

The Warehouse is billed as “rustic, elegant, unassuming” in an ad for the latest project from Allen and co-owner Jere Beasley. Allen is a shareholder in the law firm of Beasley, Allen, Crow, Methvin, Portis & Miles, P.C., and Beasley is the founding shareholder.

Now, their Alley Station property features a ballroom, rooftop garden, loft apartments and The Warehouse, which is better suited for large and larger events.

The seating capacity is about 400 and 560-plus for standing, compared with 350 for the ballroom and another 350 for the rooftop garden.

That’s why The Warehouse at Alley Station was built – because Allen had to turn away events when there was not enough space. “It’s something that we saw a demand for,” he said.

Let’s back get to The Warehouse tour. The second floor is 7,500 square foot – it’s massive and so is the ceiling fan, the largest non-custom product that is made, according to Allen. The fan has a 20-foot diameter.

It definitely is a conversation piece and cost about $10,000. “They are usually used in airplane hangars,” Allen said. “Every decorator that has looked at it – hates it. Every person that is not a decorator loves it.”

Continued on page 20 November/December 2014 Montgomery Business Journal

19

college students from Auburn University. Allen said they hope to add Troy University Greek organizations as well. Not surprisingly, the first event at The Warehouse was a wedding reception Aug. 31. There are 20-plus events scheduled, including concerts. The Muscular Dystrophy Association fund-raiser Jail for Bail was held at The Warehouse.

If you climb a few more stairs there are two rooms, a bathroom and of course, a balcony. Those rooms are for a bride and her bridesmaids or a green room for musicians to relax before a performance.

The stairway at The Warehouse at Alley Station leads to two rooms and a bathroom.

Continued from page 19

There may be no explaining taste, but few would quibble about The Warehouse’s sound and lighting system, which is top notch. There are two sites for a band to plug in their instruments and a state-of-the-art system to control the lights and sound.

When you walk up the stairs and see how immense the room is – well, it’s impressive. It’s huge and the flooring is heart pinewood. The facility is designed for weddings and receptions as well as concerts and socials for

20

Montgomery Business Journal November/December 2014

The $1.5 million renovation, which does not include the ground floor still under construction, might have been a labor of love, but it certainly involved a lot of painstaking labor on a building at 150 Commerce St. that is at least 109 years old. The original third floor was taken out and the ceiling raised. Rafters, beams and flooring were recycled into the building’s flooring, siding and doors.

“Every piece of wood that was taken out was recycled,” said Phillip Pouncey, president of Phillip Pouncey Builder Inc., which handled the rehabilitation project.

It took a lot of ingenuity to bring in a 15,000-pound solid, single beam. “It was an engineering challenge to get that thing in here and get it up on these other

beams that go all the way to the basement,” Allen said.

Those other 53-foot beams, weighing about 3,000 pounds each, were brought in from the roof using a crane, according to Pouncey.

“It took us two months just to shore the building so it wouldn’t fall in when we took everything out from under it,” Pouncey said. “The building was shored all the way from the basement to the ceiling.”

He does have some plans for a name for the building once known as the Loeb Carriage House. Allen said it will probably be named The Carriage House.

The second floor does connect to the ballroom, loft apartments and importantly, to an elevator. An additional fire exit stairwell was added, but using an existing elevator eliminated a loss of floor space, Allen said. ■

The ceiling fan is the largest non-custom product that is made. It has a 20-foot diameter. which is usually used in airplane hangars,

The 15,000-pound beam was too far from Commerce Street to use a crane. “We made four custom wooden carts and strapped that thing to it and rolled it in,” Pouncey said. “Then we turned it sideways and raised it up with eight chain (hoists). It was basically done by hand.”

A New York couple attending at wedding reception at The Warehouse remarked that they had never seen anything like it in New York, Allen said. “We’re trying to combine the old with the new to attract young people,” he said.

Allen still doesn’t know what will be on the 6,500-square foot ground floor. He said he would like to have some retail. A couple of museums have looked at the space. “I have no plans and I’m in no hurry,” he said.

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30 November/December 2014 Montgomery Business Journal 21

REPORTER’S NOTEBOOK

type of retailer with the possibility of a pharmacy inside the store “to serve the daily needs of the residents and work force.”

He said one of the other restaurants will likely be Asian. He said the restaurants will be “recognized brands” and either be regional or national.

New Downtown Eatery

Mellow Mushroom will have its third location in the River Region and second in Montgomery with next year’s expected opening at Montgomery Commerce at Bibb Destination (CBD).

That’s at least the tentative plan for the Birmingham-based Retail Specialists Inc. project at the corner of Commerce and Bibb streets. The site of the former Frank Leu building has most recently been a parking lot. A groundbreaking ceremony was held in October.

Company president Robert Jolly said he expects the four-story, multi-use development to have two more restaurants on the ground floor and a convenience-

22

The project has about 18,000 square feet of retail and the three remaining spaces range from about 3,000 square feet to nearly 5,000 square feet.

There will be 45 onebedroom and nine twobedroom apartments above the retail. The one-bedroom units will range from 740 square feet to 855 square feet while the two-bedroom units will be from 1,100 square feet to 1,185 square feet.

Jolly, who calls Montgomery his hometown, said the project should be completed by October 2015.

Retail Specialists estimates that when the retail space is fully leased, the tenants could generate $5 million in annual sales.

Montgomery Business Journal November/December 2014

by David Zaslawsky

NEW HOME FOR LAMP

‘HEART AND SOUL’

The Loveless Academic Magnet Program High School (LAMP) will move to a temporary home at the former Houston Hill School because the current building is “unstable,” according to Montgomery Public Schools Superintendent Margaret Allen.

During a groundbreaking ceremony for the Montgomery Commerce at Bibb Destination, Montgomery Mayor Todd Strange talked about the importance of a city’s downtown.

There has been talk about relocating LAMP to the former Montgomery Mall, where the school district owns property.

BUDGETS APPROVED The City of Montgomery and Montgomery County both passed budgets.

The city budget of $228 million was about the same as the previous year. The County Commission approved a $102 million budget – the first budget topping $100 million since 2009.

“We keep on talking about downtown because downtown in any community is the heart and soul of that community,” he said.

“If you’ve got a vibrant downtown, then you have a vibrant community. It then causes everything else to happen. Do you think a Whole Foods would be going to Chase Corner (in East Montgomery) if we did not have a vibrant and growing community starting here in downtown Montgomery?”

Alabama ranks No. 4 for Doing Business

4 th 5 no.

Alabama was No. 4 in Area Development

magazine’s fifth annual rankings of the top

states for doing business. It was the second straight year that Alabama was fourth in the national rankings.

Area Development used three major categories to determine its list: business environment, labor climate, and infrastructure and global access, and had 18 subcategories.

“These high rankings mean that site selection

ALABAMA REVS UP WHILE OTHER STATES SLOW

Athens State University business professor Josh Zender said that Alabama’s automotive industry is projected to grow 2 percent this year while the remainder of the U.S. auto industry is expected to decline 4 percent.

The reasons for the state’s growth in the automotive sector are incentive packages; low corporate income tax rate; a focus on “building an automotive cluster;” and the Alabama Industrial Development Training program.

Alabama was fifth in automotive production in 2013 behind (in order) Michigan, Ohio, Kentucky and Indiana.

consultants recognize that Alabama possesses

the advantages that make the state attractive for companies looking to open new facilities or expand their existing operations,”

Alabama Commerce Secretary Greg Canfield said in a statement.

November/December 2014 Montgomery Business Journal

23

ROLLING ALONG

ELANTRA MAINTAINS LEAD

The Hyundai Motor Manufacturing Alabama facility in Montgomery produced 35,709 vehicles in September, surpassing 300,000 units for the fifth straight year.

The Elantra has remained Hyundaiâ&#x20AC;&#x2122;s top-selling vehicle in the U.S. despite the all-new 2015 Sonata.

Hyundai, which manufactured 301,511 vehicles through the first nine months of the year, was about 8,400 vehicles behind last yearâ&#x20AC;&#x2122;s record-setting pace of 309,942 units through September. The company set a production record in 2013 with 399,495 units.

24

Elantra sales in September nearly reached 19,000 and through the first nine months were 176,403 units compared with 164,934

Montgomery Business Journal November/December 2014

sales for the Sonata. The gap this year is much smaller than 2013 when Elantra sales topped Sonata sales by about 42,000 units through September.

Both vehicles are produced at the Hyundai Motor Manufacturing Alabama plant in Montgomery.

Dr e

m s bu i lt h e r e .

in t he Capital of

dreams

While most cities are struggling to rebuild their economies, you don’t have to look far to find a city that’s building success. The Alabama Department of Commerce ranked Montgomery #1 for announced new industries in its latest report. Southern Business and Development magazine called us a “shining example” of economic development that’s working, and we consistently lead the major metros in confidence among business leaders.

A thriving business community is every city’s dream. In Montgomery, we’re building that dream every day.

d r e a m m o n t g o m e r y. c o m

LET THE GOOD TIMES ROLL Wells Fargo senior economist Mark Vitner told the Charlotte Business Journal that the decade’s three best years will be 2014-2016.

Vitner, who is the managing director for Wells Fargo Securities, is forecasting the economy to grow 2.7 percent by the middle of next year and reach 3 percent near the end of 2016. He told the Charlotte Business Journal that the recovery is “more broadly based” than previous ones.

DEXTER AVENUE LOFTS The Foshee Management Co. announced the lofts it is building on Lower Dexter Avenue in the Market District are called District 36 Lofts.

The lofts will occupy three buildings, including the former Belk store.

The buildings are from the late 1800s and 1960s. Lofts will start at $715 a month.

The first floor will contain retail and restaurants.

MONTGOMERY TOURISTS ARE BIG SPENDERS Tourism generates $1.3 million a day in Montgomery, according to data from Smith Travel Research and Young Strategies Inc. The $1.3 million figure is derived from an average daily hotel rate of $75; daily estimated dining expense of $67 and $100 a day for shopping, gas and activities for two people.

With a 62 percent occupancy rate and each travel party representing two people – that’s 8,450 travelers each night.

“Tourism is economic development and produces a significantly high rate of return for this community,” said Dawn Hathcock, vice president of the Montgomery Area Chamber of Commerce Convention & Visitor Bureau.

TOURISM IN MONTGOMERY GENERATES

1.3

$

MILLION PER DAY 26

Montgomery Business Journal November/December 2014

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Entrepreneur in Residence counsels Small Business Resource Center clients

by David Zaslawsky photography by Robert Fouts

Know Where You Stand (FOR FREE) Clients at the Montgomery Area Chamber of Commerce Small Business Resource Center (SBRC) received an email about assessing their company’s financial position at the midway point of 2014.

That email reminded the incubation clients and the co-working space clients to: >> Explain signification differences from budget plans for sales and expenses. >> Determine if the cash position is at a comfortable level, and if not, find out why. >> Determine the accounts receivable and if the number is within industry standards.

Frank A. Jenkins III is the Entrepreneur in Residence for the Montgomery Area Chamber of Commerce Small Business Resource Center.

The email went on to say: “These are only some of the assessments that will help you understand where your business has been and where it appears to be headed. If you are unable to perform one or more of the assessments listed above because your accounting system is not producing the required information or you are unclear as to how to accomplish please contact your accountant or me.”

The “me” is Frank A. Jenkins III, who has 35-plus years of experience in the financial industry; was an accounting professor; and has a master’s degree in business administration from the Wharton School of Finance at the University of Pennsylvania.

He is the Entrepreneur in Residence at the Small Business Resource Center. He is the go-to expert in financial matters and his advice is free to SBRC clients. He has been the Entrepreneur in Residence for nearly four years and in return for his services, he receives free office space.

“Since my forte is accounting, I provide an accounting platform, concerning accounts structure; and the kinds of things you need to start a business,” Jenkins said.

He said many clients have accountants and he is careful not to impact that relationship. He said sometimes clients will ask him questions because his advice is free, but he does remind the business owners to talk to their accountants as he did in the above email.

He works with clients on record keeping; understanding financial statements; choosing an entity type; starting a business; forming a business plan; raising capital; and funding a business.

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Montgomery Business Journal November/December 2014

Jenkins, who is managing director of Jenkins & Associates, said, “As entrepreneurs, you have to be aggressive and think that you have the background and knowledge to run your business.”

But not all small business owners understand all the financial aspects, which can be complicated, or know how or where to seek funding or understand the difference between an employee and an independent contractor.

“As entrepreneurs, you have to be aggressive and think that you have the background and knowledge to run your business.”

Frank A. Jenkins III, Entrepreneur in Residence

A favorite story of his is a banker asking a business owner, “How did you do last year? What were your revenues and expenses?” Jenkins, who served on the Aliant Bank board of directors for 15 years, said, “The banker doesn’t want to hear you use this terminology: ‘Um, about.’ I help them realize that you have to understand where your business is and where’s it’s going. The ‘um about’ method is not a good approach to get funding for your business.”

Other issues include how to set up the company; business licensing; and tax forms. One of the issues he deals with is business owners co-mingling funds.

“People will start a business, and before they are legally organized, they will have their operations run out of their personal accounts.” He said some entrepreneurs cannot answer how much money they invested in their business because they did not track purchases.

He talks to clients about the importance of accounting software so a business owner can track operating results. “It’s important to know your working capital position at all times,” Jenkins said.

Jenkins is a member of Service Corps of Resource Executives (SCORE), which has an office at the Small Business Resource Center. SCORE offers free consulting services. ■

November/December 2014 Montgomery Business Journal

29

GUEST COMMENTARY

Low Foreign Rates Won’t Keep U.S. Rates From Rising

By Brian S. Wesbury, Robert Stein, and Strider Elass

EDITOR’S NOTE: “This article was supplied by Belinda Ressler, Investment Counselor with BB&T Investment Services Inc. The opinions expressed in the article are those of the authors listed.”

Let’s imagine a college basketball team had a 13-1 record in conference play and was 26-4, overall, going into the NCAA tournament.

You might assume it gets a top seed in the tourney and is favored to go deep, maybe even reach the Final Four.

But what if we told you the team was Harvard?

They got a 12th seed in the tourney. No one is, or was, knocking Harvard. The Crimson had an awesome team last year, bumping off Cincinnati (a fifth seed) and then holding their own, until finally succumbing to Michigan State. Everyone knows the12th seed Harvard was given made sense…it’s never just about the win-loss record.

Why bring this up? Because we keep hearing comparisons about U.S. interest rates vs. foreign interest rates. Some investors think long-term U.S. rates can’t possibly go up, and might even fall, because many foreign interest rates are lower than U.S. rates. The 10-year U.S. Treasury yield is 2.6 percent, Japan is at 0.6 percent, Germany is 1.1 percent, and France is 1.4 percent. Italy is at 2.5

30

Montgomery Business Journal November/December 2014

percent and even Spain has just a 2.3 percent yield. All these countries have much higher default risk than the U.S. Ask an academic economist how this can happen and he’d probably say something about “interestrate parity” and “forward currency markets.”

This theory says that if we adjust interest rates by expected changes in the value of a currency, then, in fact, interest rates are equal around the world.

So, if you can earn a higher rate, you will pay for it with a falling currency. Do the math, and rates are always at “parity.”

But this “blackboard economics” doesn’t work. The euro and yen have been declining vs. the dollar and should stay on that course as the Europeans and Japanese loosen up monetary policy at the same time the Federal Reserve moves gradually towards tightening and higher short-term rates.

Instead, we think economic fundamentals can explain the current foreign interest rate conundrum, while also pointing to rising U.S. rates. Nominal GDP growth in the Eurozone – real GDP growth plus inflation – is 1.2 percent annualized in the past two years. In this context, it makes sense that German and French long-term rates are 1.1 percent and 1.4 percent respectively, very close to where the fundamentals say they should be.

Interest rates in Italy (2.5 percent) and Spain (2.3 percent) are about 100 basis points higher than in Germany and France. Why? These countries have even slower nominal GDP growth than Europe as a whole. The answer is “default risk.”

In other words, once adjusted for the fundamentals, European interest rates aren’t really “low,” just like a 12th seed in the NCAA tourney for Harvard wasn’t a slap in the face.

It also makes sense for Japan. Although nominal GDP is up at a 1.3 percent annual rate in the past two years, Japan has actually experienced a contraction in total nominal output over the past 20 years. Investors are still waiting to see whether “Abe-nomics” can permanently break this long term decline. You may think Japan should have a higher bond yield, but its longer-term growth data say a 0.6% yield is reasonable.

By contrast, U.S. nominal GDP is up at a 3.7 percent annual rate in the past two years (and 4.4 percent annually over the past 20 years). But longterm rates are only 2.6 percent. In other words, on a relative basis, adjusted for the fundamentals, U.S. rates look really, really low and should move higher in the next few years.

The bottom line is that comparing the level of interest rates across countries with no reference to other economic data risks coming to a very wrong conclusion. You can’t just look at a win-loss record, you can’t just look at yield. Once we adjust for fundamentals, we think rates are headed higher. ■

The bottom line is that comparing the level of interest rates across countries with no reference to other economic data risks coming to a very wrong conclusion.

Brian S. Wesbury is a chief economist for First Trust; Robert Stein is deputy chief economist for First Trust and Strider Elass is an economist with First Trust.

Consensus forecasts come from Bloomberg. This report was prepared by First Trust Advisors L. P., and reflects the current opinion of the authors. It is based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security.

November/December 2014 Montgomery Business Journal

31

GUEST COMMENTARY

Stick With the Fundamentals FINANCIAL EXPERTS ADVOCATE WELL-DIVERSIFIED PORTFOLIO

by Robert Broach and Todd Parsons

It is easy to find worries for 2015, and some are very scary. Topping our list would be the rapid rise of the Islamic State in Iraq and Syria (ISIS), tensions in the Middle East and Russia, slowing of China’s economy, a potential interest rate increase, and the political climate in the U.S., to name a few. Hopefully the 2014 mid-term congressional elections will help move the U.S. away from the unwillingness of the White House and Congress to actually try and work together to accomplish anything.

Robert Broach (left) and Todd Parsons are partners at Parsons Broach Financial Services and Financial Advisors with Raymond James Financial Services.

We have always liked the old saying, “Those who live by the crystal-ball die eating broken glass.” So what does the crystal ball say about how an investor might approach the coming year? We think it might be wiser to ignore it and remember not to let the noise of the day and predictions of the future override fundamentals and current facts.

32

Montgomery Business Journal November/December 2014

With all that said, you might ask if it’s time to run for the hills. Instead of looking forward, let’s take a look back.

If you were to spread out the covers of leading news publications from the past 50 years, many of the stories of today would look very similar. The only thing that seems to be different this time is worries that the price of oil and interest rates may go up instead of down.

Fortunately, when looking for positives, they are many to consider. Two of the areas we believe will have a positive impact over the next several years are the energy and technology sectors. Several studies estimate the U.S. is moving towards energy independence within the next 10 to 25 years. There are still many hurdles to this happening, but the positives would be enormous for the U.S. economy. With energy prices in the U.S. currently lower than many overseas markets, coupled with the increasing productivity of many U.S. factories, we could see even more U.S. firms consider bringing production back to the U.S. And consider that the outflow of cash to pay for oil imports is currently running close to two thirds of our annual trade deficit.

Imagine the effect on the U.S. economy if more and more of that money were to remain in the U.S. Continued on page 34

November/December 2014 Montgomery Business Journal

33

Continued from page 32

In the technology area, the U.S. is still a world leader in innovation and home to many of the most important and influential tech companies. Think of the companies based in the U.S. that have changed our day-to-day lives in the past 20 years. Just over seven years ago, we did not know what an iPhone was. Looking for more answers, it was only eight years ago that the term “google” was added to the dictionary as a as a verb describing an Internet search. It has been said that an individual with a smart phone today has more computing power than was available to Ronald Regan when he was president. I still think Warren Buffett said it best back in 2008 when he noted that “our country has faced far worse travails in the past.” He referenced multiple panics and recessions in the 20th century, rampant inflation, and of course, the Great Depression in the 1930s. He went on to remind us. that “without fail, however, we’ve overcome them,” and “though the path has not been smooth, our economic system has worked extraordinarily well over time. It has unleashed human potential as no other system has, and it will continue to do so. America’s best days lie ahead.”

Well said, Mr. Buffett.

So what’s an investor to do? Many are still wondering when we are going to get the seemingly inevitable stock market correction. But often the market likes to

34

Montgomery Business Journal November/December 2014

do exactly the opposite of what everyone expects. It is possible we are seeing an internal correction with some of the air being let out in specific stocks while the overall market consolidates. Currently, less than 40 percent of stocks are trading above their 40-day moving average. We haven’t seen similar readings since the market lows of earlier in 2014 and December 2013.

Specific to the equity markets, we believe banks and life/health insurance companies have the potential to outperform should we see rates move up. And we remain wary of sectors heavily dependent on dividend yields for investment returns such as REITs, utilities, and energy MLPs. But this is not a reason to make dramatic moves in a portfolio, especially for those invested in these dividend-paying sectors for the income they provide. In a rising rate environment, the odds will be high that the economy is improving; therefore, the underlying fundamental trends of these industries should generally benefit.

And speaking of interest rates, after an over 40-year secular decline in interest rates, we feel something will give soon. We believe it is likely that rates will remain range-bound for the near future and it is unlikely a true breakout in rates will happen without an improving economy and a less-accommodative Fed. The driving factors on this continue to be employment and the strength of the economy. While our expectations are

that the Fed will begin raising short-term interest rates around the middle of 2015, positives or negatives in either of these areas could shorten or lengthen the time the Fed moves on rates. On the employment front, we do expect the rate to remain somewhat higher for the foreseeable future. The reality is, most businesses have learned to be more efficient. Many of the jobs lost may never come back.

As an investor, a key point to remember is that an increasing rate environment is typically negative for fixed income investments, as there is an inverse relationship between interest rate movements and fixed income prices. But there are ways you can position your portfolio to help mitigate the adverse effects of rising rates. A recent Morningstar report showed that corporate and high-yield bonds tend to lose less than government bonds in a rising rate environment.

And stocks showed a slight positive relationship.

Interestingly, the study also revealed there was not much of a difference between the times rates rose slowly versus quickly.

“Though the path has not been smooth, our economic system has worked extraordinarily well over time. It has unleashed human potential as no other system has, and it will continue to do so. America’s best days lie ahead.”

Warren Buffett, chairman and CEO of Berkshire Hathaway

So looking forward to the new year, we still believe in having a well-diversified portfolio, built on thorough research and managed without emotion. So make it a New Year’s resolution to talk to a financial adviser and make sure your investments match your specific goals and risk tolerance. And to close with another old saying – always remember: “Pigs get fat and hogs get slaughtered.” ■

Views expressed in this article are the current opinion of the author, but not necessarily those of Raymond James. Expressions of opinion are as of this date and are subject to change without notice. The information contained in this report does not purport to be a complete description of the securities, markets, or developments referred to in this material, is not a complete summary or statement of all available data necessary for making an investment decision, and does not constitute an offer to buy or sell. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Investments mentioned may not be suitable for all investors.

Commodities are generally considered speculative because of the significant potential for investment loss.

Robert Broach and Todd Parsons are partners at Parsons Broach Financial Services and Financial Advisors with Raymond James Financial Services located at 7050 Fain Park Drive, Suite 14, Montgomery, AL 36117. They can be contacted at (334) 481-6916. Parsons Broach Financial Services is an independent firm securities offered through Raymond James Financial Services Inc. Member FINRA/SIPC.

November/December 2014 Montgomery Business Journal

35

Lt. Gen. Steven Kwast became president and commander of Air University in early November.

FUELING A NEW THINK TANK Air University tackles today’s issues

by David Zaslawsky

36

photography by Robert Fouts

Montgomery Business Journal November/December 2014

The new Air University commander and president said the new marching orders from the top brass are solving existing problems.

Lt. Gen. Steven Kwast, who took over at Air University at Maxwell Air Force Base in early November, said that Air Force Chief of Staff Gen. Mark A. Welsh III and Secretary of the Air Force Deborah Lee James requested the change.

“Even in the beginning stages of this new request… the fire spreading across the informal networks of our Air Force to every captain, major, lieutenant colonel and colonel is astounding,” Kwast said at the River Region Summit held at The Judge Advocate General’s School auditorium.

“There are people wanting to come out of their skin to get here because they know they’ll actually be able to help resolve the problems of the day,” said Kwast, who at the time of the summit was vice commander of Air University and commander of the Curtis E. LeMay Center for Doctrine Development and Education.

He said that allowing Air University students to deal with real strategic problems “is a game-changer.” Kwast said that students will talk to their fellow airmen and say, “ ‘Guess what I did? I worked on this problem and briefed our secretary and it’s now being funded and it is going to revolutionize this part of air power. It is going to be a game-changer in the cost imposition. It is going to allows us to stop terrorists dead in their tracks with a cyber tool that costs us pennies and moves at the speed of light.’ ”

“In order to stay relevant, you have to understand the world and you have to understand humanity. And in order to do that you have to have thinkers.”

Lt. Gen. Steven Kwast, president and commander of Air University

During his presentation at the summit and an informal question-and-answer session with a handful of reporters beforehand, Kwast stressed the importance of relevance. He said that the team at Air University “represent(s) an entire generation of thinkers that are Continued on page 39

November/December 2014 Montgomery Business Journal

37

“There are people wanting to come out of their skin to get here because they know they’ll actually be able to help resolve the problems of the day.”

Lt. Gen. Steven Kwast, president and commander of Air University

38

Montgomery Business Journal November/December 2014

Continued from page 37

here to reinvent our tools of national power to be relevant to a world that is changing in ways we do not fully appreciate. That is the purpose of Air University – to keep air power and the Air Force relevant to our leaders and our world to solve the geo-political problems of the day.

“In order to stay relevant, you have to understand the world and you have to understand humanity. And in order to do that you have to have thinkers. My job here and your job in the community is to push the community and the military … to find new opportunities to grow; to adapt; to change in order to stay relevant.”

Kwast, who was director of the Air Force Quadrennial Defense Review, which studies defense strategy, modernization, financial issues and infrastructure, praised the local community. “In my view, there is no community that has more potential than the Montgomery/River Region area at linking academia and industry and the thinkers that are really adapting and innovating in ways that are more rapid than we could do

in a big bureaucracy. Tapping into that relationship and looking for partnerships where we have common ground is a win-win and key to the future.”

He talked about the potential to partner with the private sector on cyber-related issues “that allow us to benefit from each other’s innovations and a rapid way in which that entire enterprise evolves – and that’s something we have great power here to do.”

The general also talked about “reinventing education” to help build critical thinkers “who act morally and innovate rapidly in our future … If we do not generate the kind of investment in the next generation of leaders in both the community and the military we are missing out on the most powerful foundation of adaptability and change.” He said it has become “more urgent to educate a cadre of people who know how to think.” ■

November/December 2014 Montgomery Business Journal

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The City of Montgomeryâ&#x20AC;&#x2122;s Development Department team (from left) are Mac McLeod, Bill Wilson, Melanie Golson and Lois Cortell.

DEVELOPING THE DREAM From his vantage point on the first floor of One Court Square, the cityâ&#x20AC;&#x2122;s director of development noticed a crane on Lower Dexter Avenue and walked over to see what was going on and if help was needed.

by David Zaslawsky

photography by Robert Fouts

“When he (Strange) asked me to come to work for him at the city, he said, ‘Mac, we have some development that needs to start moving because we announced some things and they never got off the ground.’ ” Mac McLeod, whose official title is director of business and commercial development for the City of Montgomery, likes being where the action is. “I get the biggest kick watching some construction workers walking around out here,” he said. “That’s appealing to me. I like seeing things happen.”

AREAS OF FOCUS FOR THE DEVELOPMENT DEPARTMENT

Monitoring the Lower Dexter Avenue property agreements Cypress Creek development as a long-term project Maxwell Boulevard projects Linking Maxwell Air Force Base to downtown Linking downtown to Cottage Hills Development on Fairview Avenue Bringing a grocery store to downtown

And there is a lot of action on Lower Dexter Avenue – a focus of the Development Department. All of the properties the city bought on Lower Dexter Avenue with a grant from the state have been sold and closed. That includes One Court Square, which the developer closed on in late August.

Another property that closed was the Birminghambased StoneRiver Co., which is spending $20 million on a 165-unit, four-story apartment complex on Maxwell Boulevard across from Wright Brothers Park and near Maxwell Air Force Base.

The current four-person Development Department team has been together less than one year. The staff did lose one employee and McLeod hopes to replace her, but might look for a different skill set.

One weekend day when McLeod went to his office, he read a quote from legendary pro football coach Vince Lombardi: “The achievements of an organization are the results of the combined efforts of each individual.” McLeod wrote that quote on a department bulletin board.

“We are a small team,” he said. “As long as we’re selective and focus our time correctly, we can get a project started. Once a developer takes that project over, then we can monitor that development a lot easier than we can getting it up to that point.

“We all have different skill sets, but we complement each other quite well. We all pull together and we accomplish a lot for just a small number of folks.

I’m proud of them.”

People are noticing the activity and that’s just what Montgomery Mayor Todd Strange wanted when he recruited McLeod from The Colonial Co., where he was president. The firm is involved with single-family and multi-family real estate projects, shopping mall and shopping centers as well as insurance and office buildings. He worked for The Colonial Co. for 14 years and worked for the Lowder family, which owns the company, for 33 years. “I know a lot of people because I’ve been around a long time,” said McLeod, a lifelong resident of Montgomery.

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Montgomery Business Journal November/December 2014

Take a look now. Things are getting off the ground, especially on Lower Dexter Avenue. McLeod does credit the streetscape project on Dexter Avenue to help spur development.

“That had a lot to do with attention brought to downtown and the fact that the city made the commitment to buy those old buildings that had been sitting vacant for years.”

He also credits his experienced team. Senior Development Manager Lois Cortell’s background working with the city of Portland, Oregon, has been invaluable to the Development Department.

“Some of the things we’re trying to do here, she has done before,” McLeod said. She works all those agreements with the developers and is the detail person. Bill Wilson is the design studio coordinator for the department and Melanie Golson, the outreach coordinator, is the public face for the department.

“We do get a lot of comments about the success we are having,” McLeod said. “Successes come in the form of real estate closings, dumpsters and cranes. We’re not at the dumpster or crane stages yet.” Although there was that crane on Lower Dexter Avenue.

By the end of the year, the Development Department will have closed on nine real estate projects worth more than $4.1 million. That’s a pretty good start.

There has been some preliminary work on Retail Specialists Inc.’s $10 million-plus project on the corner of Commerce and Bibb streets. The project will have 64 apartments on top of two restaurants.

Development is a slow process, McLeod warned. It takes a lot of time. “Just selling a piece of property is not what we’re about,” McLeod said. “We’re about the highest and best use. What is in the best interest for the city for this building here (One Court Square)? We know the idea they (ELSAJA Court Square, LLC) are kicking around about this building and it will be great for Montgomery and I think everybody will agree.”

“Our goals are economic growth and revitalization of the downtown area, but other parts of the city as well.”

Mac McLeod, director of business and commercial development for the City of Montgomery

The next areas of focus for the Development Department will be: >> Monitoring the Lower Dexter Avenue property agreements >> Cypress Creek development as a long-term project >> Maxwell Boulevard projects >> Linking Maxwell Air Force Base to downtown >> Linking downtown to Cottage Hills >> Development on Fairview Avenue >> Bringing a grocery store to downtown.

He said the natural direction for downtown to go is Five Points. “There is interest in that area right now.

Eventually we will have to expand in that direction,” McLeod said.

The Development Department is a “conduit,” McLeod said, “trying to support the city and the city’s efforts and private industry. Our goals are economic growth and revitalization of the downtown area, but other parts of the city as well. We are the middle man trying to help new growth and new businesses or expansion of existing businesses.”

Chamber of Commerce. That expansion would create 300 jobs. McLeod said the company was buying property from the city and he developed a relationship with company officials.

He said the city owns 18 acres of contiguous property along Maxwell Boulevard and “there is a chance for some commercial and future residential” development there. “We’re not looking to acquire anything unless it fits with other property that we have and that’s rare,” McLeod said. The city has acquired land over the years through tax liens and various means. “We’re looking at ways to use those properties; get them into the private sector. Once you get them into the private sector, there’s property taxes and all the advantages that come from private industry.”

That’s the downside to vacant buildings. “We cut the grass and receive no tax off of it,” McLeod said.

City officials would like to see residential growth in the northern section, which is called the warehouse district. “You see in many cities residential developed around industrial areas,” McLeod said. ■

He has been working on an existing business expansion with Ellen McNair, senior vice president, Corporate Development for the Montgomery Area

November/December 2014 Montgomery Business Journal

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Spanish from Valpariso University in Indiana and a master’s degree in public and international affairs from the University of Pittsburgh.

She said her job is to monitor those agreements, ensuring that developers meet the requirements, such as having a presentable façade completed within one year of the agreement.

Lois Cortell is the senior development manager for the Development Department of the City of Montgomery.

EMPHASIS ON REAL ESTATE

by David Zaslawsky

photo by Robert Fouts

Lois Cortell joined the city’s Development Department about a year ago with a comprehensive background development and revitalization.

She spent 13 years with the Portland, Oregon Development Commission as a senior policy manager, senior development adviser, operations manager and development manager. Her impressive resume also includes working with brownfields for the Salt Lake City Redevelopment Agency.

“We’re actually helping grow jobs.

That’s where it gets exciting.”

44

“Real estate is my emphasis,” said Cortell, senior development manager for the Development Department. She handles all aspects of real estate from property sales to property development to property acquisition.

There are development agreements and rehabilitation agreements and Cortell reads all that fine print. “I write up all the details of the agreements and read the 200 pages,” she said. “It is a lot of details.”

Cortell is proud of a development agreement with ELSAJA Court Square, LLC, whose parent company is New York-based MarJam Supply Co., a building materials firm that is developing properties on Lower Dexter Avenue, One Court Square and the Western Railway site off Court Street.

She asked the developer to use local contractors and suppliers for those projects. “They have committed to maximize the use of locally sourced jobs and materials,” Cortell said. The agreement includes local professional services such as architects. “This isn’t just about a building,” she said, “We’re actually helping grow jobs. That’s where it gets exciting.”

ELSAJA Court Square has 18 months to develop a plan for the railway property, Cortell said. The area is zoned for industry, but the city would like to see the property “more intensely used,” Cortell said. “We feel it’s underutilized.”

She said the properties are the city’s leverage and is used to sell the land with development or rehab agreements attached. “We can sell property at a slightly lesser price than the market (rate) with those stated goals …”

A project is not complete “until they’ve got their certificate occupancy,” Cortell said. “That’s one reason why I love what I do – it’s so complicated in all its phases.” There is a design phase; permits, construction and finding tenants.

She makes sure those details are followed. “That’s how we get the public interest met,” Cortell said. “We sell it (the property) and they have an obligation to renovate those properties. They (developers) have performance dates.”

Cortell’s background includes strategic planning and she led the department’s updated mission statement and reworked goals “so we were better able to organize our projects underneath those goals,” she said. “It helps us frame how we are doing and know what our priorities are. It’s too easy – you could be haphazard in your projects. We don’t have that luxury because we are only four people.

The development agreement on the former Kress building stated that the project “should be compatible with residential living,” said Cortell, who has a bachelor’s degree in international economics and

“We have to be nimble and prioritize. That was one of my contributions to bring my strategic planning to update what the department was going to do to implement the city’s vision for revitalization.” ■

Montgomery Business Journal November/December 2014

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The city is working with a couple of downtown property owners to create murals at their sites.

DRAWING INTEREST WITH PUBLIC ART

by David Zaslawsky photo by Robert Fouts

City officials have actually identified 12 sites that are suitable for murals, which will bring a new dynamic to downtown.

“Public art is important for a lot of reasons,” said Melanie Golson, outreach coordinator for the city’s Development Department. “One, it brings the community out. We have a lot of diversity in Montgomery.

We have a lot of historical markers and a lot of historical art.

“Our goal with the Montgomery Public Art Commission is bringing in a different type of art – a little more whimsical; a little more contemporary.”

Melanie Golson is the outreach coordinator for the Development Department of the City of Montgomery.

She works closely with the Public Art Commission as well as the Montgomery Art Guild, Montgomery Museum of Fine Arts, and the Alabama State Council of the Arts, as well as with local art organizations and networks. The goal is to promote not only public art, but local artists.

“We’ve done a great job with the historical pieces,” Golson said.

“We’ve memorialized Montgomery’s greatest, but when you’re looking at urban living – that’s usually a much younger demographic. You’ve

got to bring in some pieces and things that appeal to them.”

She wants to have art pieces that will have people saying, “ ‘We’re going to Montgomery and we’ve got to see …’ We (will) have something that is a draw.”

Golson talks about the art as conversation pieces.

“Places to meet; to promote green spaces.

The more people that you have living downtown – this is an opportunity for them to have enjoyment outside.”

Perhaps the first major piece of public art was the Wright Flyer replica at Wright Brothers Park.

Working with artists is not new for Golson. She was involved in a retail pop-up last year – Tallapoosa Street Goods, where 33 artists sold their works for three weeks. The breakeven point was $5,000, but the site generated $11,000 in sales. That 600-square-foot site, in the city’s retail incubator on the corner of Tallapoosa and Commerce streets, is available. If it is not rented by early November, Golson hopes the art group will come back.

“We are actively looking and we have a couple of prospects,” she said.

Charlie’s Donuts is located next to the empty space and Shashy’s Bakery and Fine Foods operates the Airstream Bullet food truck at the same location.

The businesses have one-year leases and Golson, who manages the retail incubation program,

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Montgomery Business Journal November/December 2014

expects the food truck “to stay awhile because they are doing so well.” The goal is for the retailers to talk to developers and property managers about permanent locations, Golson said. If some of the Dexter Avenue properties do not have a tenant, those sites may be used in the retail incubation program. “It meets two goals,” Golson said. “It helps an entrepreneur start their retail business, but also possibly to have them as a long-term tenant. The goal is for them to be successful and have made their mark downtown and have a following to be able to support themselves long-term.”

In addition to her roles in public art and the city’s retail incubator, Golson is the face of the Development Department, working with media, and is the point person for television and movie production companies.

She worked closely with the “Selma” filmmakers.

“The production company needed a lot,” she said.

“They had to turn back time to 1965.” The film is a biopic of Martin Luther King Jr. and focuses on civil rights marches he led in Alabama.

Golson also is involved with #revolutionMGM and TEDx events and takes turns with other staff members to attend Downtown Montgomery Business Association’s monthly meeting. ■

Robin H., Graduate Student International Economic Development. Tutor.

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47

MAKING DEXTER WORTH A WALK

by David Zaslawsky

photo by Robert Fouts Bill Wilson is the design studio coordinator for the City of Montgomery.

When design studio coordinator Bill Wilson talks about “missing teeth,” he is quoting an Auburn University professor who taught architecture.

Wilson learned his lesson. The Auburn University graduate, who received a bachelor’s degree in architecture, said empty storefronts and even office buildings impact urbanism.

“If the first floor has reflective glass, it’s the same as it being empty because there is no activity,” said Wilson, who works in the city’s Development Department. “We want things to feel alive and the best way to do that is have open glazing; have people walking in and out; and just having active storefronts. It’s important for us to have first-floor retail for that reason.”

He explained that people have a walking pace and when there is a blank space or a dead space – “all of a sudden their pace increases.” That increased walking pace means that pedestrians are likely to move past the next storefront.

“We want to make sure the walking environment is as important as driving,” said Wilson, who received a master’s degree in real estate development + urbanism at the University of Miami.

He is helping transform Montgomery into a more pedestrian-friendly and bicycle-friendly city.

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Montgomery Business Journal November/December 2014

Wilson, who is “technically” the city’s urban planner, said that “we want to make sure what we’re doing always has a good urban context.

We were a major metropolitan city at some point and we dropped off. We want to be able to get back to that. We want to have that downtown environment, where it’s bustling again.”

One of his many roles is either designing public parks or having the design “vetted.” He has been working on the Selma-to-Montgomery Historic Trail for the 50th anniversary of the civil rights march next year.

Working off an existing plan, Wilson said the scope was reduced to finish the project on time.

The design included where to put sidewalks and improve existing sidewalks; improve street conditions; signage; and crosswalks.

There will be a green-screen fence with vines along the trail. Wilson said that the city worked with local horticulturalists to select vines that would grow as fast possible and trees that would bloom in March.

The Development Department has been busy with the old Montgomery Fair building annex at 29 Dexter Avenue, which is being removed to create public access to the area for future loft apartment tenants. The staff is creating a pocket park, which will have green space and decking.

A local architectural firm was hired to design the 5,000-square foot space. There will be a passageway underneath the façade, said Lois Cortell, senior development manager. Each tile

from the old façade was removed one at a time. The new façade will have steel bracing. “It’s going to be amazing,” she said.

Another work in progress is connecting the stairway at Wright Brothers Park to the Intermodal pedestrian tower. The walkway will be near the downtown urban farm, which is behind the Montgomery Advertiser.

Once completed, there will be access from the Riverwalk to Maxwell Boulevard. Wilson is designing that final piece of the walkway, which will be lined with plants and trees.

The Development Department is often a liaison between the city and private sector, Wilson said.

“While we provide design expertise for the city, we’re not taking it from the private citizens’ hands,” he said.

“Our doors are open for people to come talk to us.

What we’re trying to do is get the private sector to take off. We want to do strategic private and public partnerships to help (bolster) development.”

“...we want Dexter alive again. Everybody on all fronts is working toward that goal.”

He said that “once we hit critical mass … we’ll just be guiding things. That’s really what we want to be doing.”

And what exactly is critical mass? “There’s enough residential units; there’s the right type of retail and it’s really the demand. When there’s an empty building, there’s enough demand for a private developer to buy that building and retrofit it.”

He reviews developer’s drawings and will make suggestions and let them know what the city is looking for. “When we have partners, everybody is striving for the same goal,” Wilson said. “We want to maximize every bit we can – we want Dexter alive again. Everybody on all fronts is working toward that goal.”

He works with students from Tuskegee University’s architectural program on a downtown project as well as students from Auburn University’s architectural program and master’s program in landscape architecture. “What this does is provide us an opportunity for these young minds to start to understand urbanism,” Wilson said. And missing teeth. ■

MORE ROOFTOPS EQUALS A DOWNTOWN GROCERY

by David Zaslawsky

Potential downtown Montgomery grocery store owners are quietly taking head counts, but they are not alone.

Mac McLeod, director of business & commercial development for the City of Montgomery, is also counting downtown residents. And yes, the number is growing ever so closer to the magical figure of 1,000 and a grocery store. Downtown does have the recently opened Knicker Knacker Market on Lee Street and a mini-mart has been announced for Commerce Street. George Trawick, co-owner of Sous La Terre and SLT Package Store, told the Montgomery Advertiser he is converting Choices Chinese restaurant into a mini-mart. McLeod is looking for something more substantial.

“We want a full-service grocer that is at least 5,000 square feet,” he said. “That’s what we need – someone that sells meats, breads, eggs and all the fresh products.”

residents. If you consider 77 units planned for the Bell building; another 64 units on Commerce Street and 160-plus apartment units on Maxwell Boulevard that brings the number of downtown residents near that 1,000 plateau, including residents in nearby Cottage Hills and Capitol Heights.

“I don’t know when we’re going to get one (grocery store), but I can tell you we are working on it,” McLeod said in response to the question that he is frequently asked.

There will be more loft apartments on Lower Dexter Avenue – a lot more units. “I would not be a bit surprised if (grocers) are not watching those numbers right now,” McLeod said.

He said that developers monitor those numbers as well as conduct studies and make site visits.

“We’re getting there,” he said. ■

The wait for that fullservice grocer may be sooner than later – finally for the downtown

November/December 2014 Montgomery Business Journal

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Montgomery really will get a second chance to make a positive impression when the sporting world will be focused on the inaugural Raycom Media Camellia Bowl at Cramton Bowl this December.

The bowl game’s executive director, Johnny Williams, said the game “means a three-and-one-half hour national television appearance for our community.

Literally every sports bar and restaurant in the United States that televises sporting events will have our game on because it’s the only football game in America during that time slot.”

Raycom Media Camellia Bowl puts spotlight on Montgomery

That is not being lost on governmental agencies, which plan to air ads promoting Montgomery. “They will promote positives about our community,” Williams said. “To me, it’s an industrial development opportunity.

It’s a tremendous vehicle for us to market what is very positive about our community. It’s one little piece – it’s not an end-all.”

WHOLE NEW BALLGAME

by David Zaslawsky photography

by Robert Fouts

Dawn Hathcock, vice president, Montgomery Area Chamber of Commerce Convention & Visitor Bureau, told WSFA 12 News: “We really feel like we got a whole new city for people to come and visit and the mayor likes to say, ‘If you haven’t seen Montgomery in the last five years, you haven’t seen Montgomery.’ ” Those more recent amenities, including the Renaissance Montgomery Hotel & Spa at the Convention Center, Montgomery Performing Arts Centre and The Alley, helped Montgomery land the bowl game.

“There are communities around the country that have worked years to try to secure a bowl game,” Williams said. “For us to secure one is a great accomplishment.”

He praised the City of Montgomery, Montgomery County Commission, Montgomery Area Chamber of Commerce, and Central Alabama Sports Commission, as well as various companies, including a local title sponsor – Raycom Media.

The game, which will be televised 8:15 p.m. Saturday, December 20, on ESPN, features the No. 3 team from the Sun Belt Conference against the No. 4 seed from the Mid-American Conference at the 25,000-seat Cramton Bowl.

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Montgomery Business Journal November/December 2014

Success for Williams is a crowd between 15,000 and 20,000. “We’re not going to sell it out every year,” he said. “Our goal is not to hit a grand slam our first year.

This is a marathon – this isn’t a sprint. We want to put our best foot forward; get an understanding of what our capabilities are; and each year, build on what we have done the year before.”

The Cramton Bowl has been the site of numerous all-star games, drawing spectators from near-by. The Camellia Bowl could “easily draw anywhere from 5,000 to 15,000 out-of-town visitors to Montgomery for that weekend, which will have a significant impact on the economy not only in Montgomery, but the surrounding region,” Williams said.

First of all, each team’s party will have between 125 and 150 people, not including bands and cheerleaders.

The teams will stay at least four days in Montgomery – arriving December 17. The bands/cheerleaders are staying two days.

Bands range from a small pep band of about 75 members to a large band of 400, according to Williams.

The teams coming to Montgomery will be announced December 7 and their head coaches are scheduled to hold a news conference two days later.

The major Camellia Bowl events begin December 17 when the teams arrive. There will be team dinners December 17 and 18, presented by the Chamber, MAX Credit Union and Alabama Gulf Seafood.

Some of the highlights for December 19 include hospital visits by each team; a street fest and pep rallies sponsored by the Montgomery Advertiser; a Christmas parade; a gala at The Warehouse at Alley Station; and three dinner events.

There will be a fan festival December 20 at Paterson Field, across the street from Cramton Bowl. A Corporate Tailgate Village will be at both Paterson Field and the Multiplex at Cramton Bowl. There were 12 to 15 signups as of October 1 for the Corporate Tailgate Village, Williams said. ■

GAME TICKETS: INEXPENSIVE TO LUXURY SEATING Tickets for the 2014 Raycom Media Camellia Bowl range from a $20 general admission seat to $150 for what is billed as a “luxury lounge with Southern hospitality” at the ESPN Zone at The Multiplex at Cramton Bowl.

Fans to the game, which pits the Sun Belt Conference against the Mid-American Conference at 8:15 p.m.

Dec. 20, may also join the Camellia Bowl Legacy Club for free. If you purchase one to three $25 reserve game tickets by Dec. 1, you receive access to the legacy club, which entitles members to priority seating for subsequent games with annual renewal and more importantly - free parking.

Johnny Williams is the executive director of the Raycom Media Camellia Bowl.

If you buy four or more reserved tickets, you will also receive a souvenir game program.

“We’re trying to create local participation to build a legacy,” said Johnny Williams, executive director of the inaugural Camellia Bowl.

He said that legacy members will be invited to a special function or event, which this year may be attending the bowl announcement party Dec. 7, when the teams for the game will be revealed.

BY DAVID ZASLAWSKY

The ESPN Zone seating includes food and two drink coupons as well as a television, leather furniture and carpeting. There will be football legends mingling with the guests, Williams said. The amenities include commemorative gift, game program, parking pass and a collectible stadium cup.

Field suite tickets, located behind the north end zone, are $100 each and include food, two drink coupons and the same amenities as the ESPN Zone tickets.

Group rates are also available.

Tickets are $50 apiece to attend the team luncheon Dec. 19 at the Renaissance Montgomery Hotel & Spa at the Convention Center, honoring the Regions Alabama Football Legend. The ticket includes a commemorative gift.

For information about tickets to the 2014 Raycom Media Camellia Bowl at Cramton Bowl, visit camelliabowl.com or call (334) 239-0546.

November/December 2014 Montgomery Business Journal

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BUILDING ON A SOLID FOUNDATION Integrated Computer Solutions succeeds via Chamberâ&#x20AC;&#x2122;s Business Resource Center

by David Zaslawsky

photograpy by Robert Fouts

Steve Golsby is president/CEO of Integrated Computer Solutions.

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Montgomery Business Journal November/December 2014

Steve Goldsby founded Integrated Computer Solutions Inc. working nights building networks for small businesses or writing a piece of software. He was also working full time.

He had no business plan then and freely acknowledges had no idea how to run a business.

Entrepreneurs “don’t know what they don’t know,” he said. That describes Goldsby, president/CEO of Integrated Computer Solutions (ICS), which he first established in his home and now occupies about 6,000 square feet of office space on the 11th floor of a Commerce Street building. Oh by the way, he has 76 employees – many of whom work offsite – and uses 18 subcontractors.

The company’s annual revenue is more than $10 million, but back in the late 1990s “it was kind of let’s go see what sticks and that’s how we’ll go.” That’s not a strategy for building a successful business.

When Goldsby moved his 2-year-old, home-based business to the Montgomery Area Chamber of Commerce Small Business Resource Center, he had to meet certain requirements to take advantage of belowmarket rents and a ton of amenities. He had to attend the Chamber’s Entrepreneurial University, devise a business plan and review that business plan quarterly.

Goldsby credits that experience with “refocusing me on what’s the plan; what’s the strategy; what’s the budget; how are we executing against the plan. And then having a third party that peeks in and says, ‘Have you considered this or have you considered that?’ ” Goldsby said.

“I’m good with this technology stuff, but I didn’t know anything about HR (human resources), accounting, finance, funding, personnel issues,” he said. “There are a multitude of things that go into running a business.

I have a degree in math – not business.”

He learned how to be a business owner through a variety of resources at the center, including Chamber staff and fellow entrepreneurs. Goldsby is a testament to the Small Business Resource Center’s history of success.

“There is a lot more risk involved if I had not had the resource center available as a resource,” Goldsby said.

He added, “We got discipline.”

“There is a lot more risk involved if I had not had the resource center available as a resource.”

Steve Golsby, president/CEO of Integrated Computer Solutions

Continued on page 54

November/December 2014 Montgomery Business Journal

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Continued from page 53

He talked with fellow entrepreneurs at the center about handling a variety of issues. “There were entrepreneurs in the center that already solved a bunch of the problems that I was facing,” Goldsby said. “Maybe it wasn’t the perfect answer, but a really good answer in two minutes instead of researching it for two weeks.

There is a lot of value in that.”

He said that being able to reach out to people who know the correct answer helps a business “go fast and move faster.” He now talks to entrepreneurs about velocity and acceleration, which he described as moving fast and figuring out how to go faster. “The resource center was great for that,” Goldsby said.

Being around all that expertise saves a budding entrepreneur time and money. “It’s easy for an entrepreneur to get in a bubble,” Goldsby said. “You end up running down rabbit trails for things like HR issues, payroll issues or if you just completely outsource it – you may make the wrong decision or a non-optimal decision.

“If you’re working out of your home you can get in a bubble and sometimes when you research a problem

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Montgomery Business Journal November/December 2014

“Having those people available that you could run ideas by – there is a lot of value in that.”

Steve Golsby, president/CEO of Integrated Computer Solutions

and ‘oh, it’s obvious what the answer is’ – it turns out you were completely wrong.”

That’s why it was so critical to his company’s success to ask the experts and entrepreneurs at the resource center how they handled particular issues. One of those entrepreneurs was Jim Binion, who formed Advance Computer Technologies, and was further along than Goldsby as were some other entrepreneurs there.

“Having those people available that you could run ideas by – there is a lot of value in that,” Goldsby said. All he had to do was walk down the hall and he could discuss what he called “typical small business stuff.”

He credited the Chamber staff with guiding him in the right direction, whether it was research or a document or talking to somebody. “They were really good at telling you what you didn’t know and then pointing you in the direction to go find that information,” Goldsby said.

Plus, having a business at the center greatly reduced his operating costs. “It freed up capital to grow the business,” Goldsby said. He didn’t have to pay for a receptionist or rent a conference room when he was using one occasionally. ■

Cheryl Carter is the EMERGE Montgomery executive director.

LIGHTING NEW PATHS Torchbearer projects touch Montgomery

by David Zaslawsky

photo by Robert Fouts

One of the key issues to increasing the number of local high school students attending a postsecondary school was involving their parents in learning about scholarships, and in particular, getting acquainted with those dreaded forms.

One of the most common forms and a must to fill out for scholarships is FAFSA (Free Application for Federal Student Aid).

While several Torchbearer class projects have dealt with assisting students with FAFSA, it was time to get the parents involved. A Torchbearer group, which is part of the EMERGE Montgomery young professionalsâ&#x20AC;&#x2122; organization of those 22 to 40 years old, worked with a high school. An announcement

was made at a basketball game that during halftime, FAFSA representatives would be available in the lobby to meet with parents. There was only enough time to give the parents some literature developed by a Torchbearer class that explained what FAFSA was; when FAFSA workshops would be available; and what the advantages were.

That is just one example of a Torchbearer class project that impacts public education and economic development by encouraging students to stay in school and get their diploma, which is essential for work force development. There are six to seven projects in each Torchbearer class of about 45 participants.

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November/December 2014 Montgomery Business Journal

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Continued from page 55

There are plans for a Torchbearer project to have workshops in English classes, where the students would fill out a mock FAFSA form and have students at another grade level fill out an actual form â&#x20AC;&#x153;so they get comfortable with it when they get to the12th grade,â&#x20AC;?

EMERGE Montgomery Executive Director Cheryl Carter said.

â&#x20AC;&#x153;A lot of what we are seeing downtown is actually germinating in these classes, but carried on later.â&#x20AC;?

Cheryl Carter, EMERGE Montgomery executive director

Another class project brought college admission counselors to talk to students and â&#x20AC;&#x153;to tell them what they need to keep in mind when they are choosing their courses â&#x20AC;&#x201C; and that there is scholarship money available,â&#x20AC;? Carter said. The admissions director for Huntingdon College told students that it might look expensive to attend Huntingdon, but there are scholarships. The students were told that they had

to fill out paperwork and step No. 1 was the FAFSA form. â&#x20AC;&#x153;You canâ&#x20AC;&#x2122;t get a Pell grant; you canâ&#x20AC;&#x2122;t get anything unless you fill out the FAFSA form,â&#x20AC;? Carter said.

Another Torchbearer class project involved all ninthgraders at Jefferson Davis High School â&#x20AC;&#x201C; between 700 and 800 students. The students visited college campuses over a two-day period. They could tour two of the eight schools: Alabama State University, Auburn University at Montgomery, Troy University, Huntingdon College, Faulkner University, Tuskegee University, South University and H. Councill Trenholm State Technical College. Students were exposed to different aspects of the schools to give them an idea of what college is all about. They might visit academic buildings at one site and dorms and athletic facilities at another.

Some of the tour guides were college students, who said they never thought they would go to college. Carter said, â&#x20AC;&#x153;A guide got on the bus and told the students: â&#x20AC;&#x2DC;I was where you are a couple of years ago, but now here I am at Alabama State and I love it.â&#x20AC;&#x2122; â&#x20AC;?

Some of the class projects have been videos for the Montgomery Public Schoolsâ&#x20AC;&#x2122; Career Academies and a 30-second spot to highlight positive aspects of the district.

BOLDLY GO, KNOWING WEâ&#x20AC;&#x2122;VE GOT YOUR BACK

Warren Averett Members Richard Stabler, CPA Tommy Sisson, CPA and Ray White, CPA

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Montgomery Business Journal November/December 2014

There are a number of categories for Torchbearer class projects and some of the standard ones deal with public education, economic development and poverty – “addressing the needs of the underserved,” Carter said. A class a few years ago had categories including nightlife and recreation, civic engagement, diversity and Montgomery’s image.

Sometimes class projects are springboards, Carter said.

There have been a number of Torchbearer projects dealing with public art in downtown. A comprehensive study was conducted, which became the foundation for an event in which artists gathered at an empty downtown building, and painted and sold their works.

Although there was not enough time to implement a class project, it was an idea from a Torchbearer class that led to the Bark Park at Blount Cultural Park.

Carter recalled that a Torchbearer group said, “ ‘We need a place to walk; we need a place to bike ride; we need a place for walking dogs.’ ” After that class graduated – each class is from April to November – one of participants took the concept of a dog park to Montgomery Mayor Todd Strange.

“A lot of what we are seeing downtown is actually germinating in these classes, but carried on later,” Carter said. “Some of the projects are blueprints.”

Some of the Torchbearer projects are rolled over to Leadership Montgomery and some of the Leadership Montgomery class projects are rolled over to the Torchbearers, Carter said.

EMERGE is a program of Leadership Montgomery in partnership with the Montgomery Area Chamber of Commerce.

One of the more unusual public awareness Torchbearer projects was Dining in the Dark. The idea was to understand and support the region’s blind community, Carter said. The event was held at Alley Station and those who purchased tickets had a meal served in the dark – the wait staff used night goggles. The diners ate in the dark. Money was raised from the tickets to buy a Braille reading machine for the Alabama Library for the Blind. Library officials said they had a difficult time getting donations because people were not aware about the organization and don’t understand what it is like being blind.

The diners didn’t know what they were eating. They did wear ponchos, which came in handy. Carter said that one of the diners at her table was blind from birth. At the end of the dinner he stood up and said “how he learned to cope with blindness,” Carter said. He said, ‘I’m actually happy that I’m blind because I don’t judge people by what they look like. I judge by what’s inside.’ Carter said, “It really was an impactful event.” ■

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November/December 2014 Montgomery Business Journal

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Member Profile

WVAS-FM

Station manager dispels misconceptions about WVAS-FM

by David Zaslawsky

As station manager for WVAS-FM 90.7, Candy Capel goes out in the community and educates the public about what the station is and isn’t.

She keeps very busy combating the notion that WVAS-FM is a college radio station that just reaches the campus borders. Nothing could be further from reality. Capel said that people think that “you have students in there (radio station) playing around and playing what they want to play, but it’s not,” Capel said. “We are a fulltime, professional station. We’re on 24 hours a day – 24/7, 365.”

WVAS-FM, which is located on the Alabama State University campus, is a public radio station with 10 full-time employees and 10 parttime employees. The radio station has the thirdstrongest signal in the area – 80,000 watts – according to Capel, who has been at the station for 13 years during three stints. She started working in 1984 as a part-time announcer for one year. Capel came back in 1991 and handled public affairs before becoming station manager. She left in 1995 and returned in 2006 as the station manager.

Candy Capel is station manager for WVAS-FM 90.7

photography by Robert Fouts

The station’s reach goes far beyond the campus borders. WVAS-FM broadcasts are heard in 17 southcentral Alabama counties and those listeners hear a variety of jazz, news and special programs.

The station plays mainstream or classic jazz; contemporary jazz; and smooth or light jazz as well as some R&B. “We’re proud of the fact that we can expose people to music they might not have ever heard before,” Capel said. “We can expose them to new and up-and-coming artists.”

Listeners are also exposed to seven live daily newscasts, ranging from five minutes to seven minutes. The news staff has four full-time reporters and one part-time reporter. “There has been a real dedication to news and public affairs as it affects our immediate community, but also our region and our state,” Capel said. “That’s always been an important part of what we’ve done at the radio station.”

She pointed out that other radio stations do not have reporters.

The station carries National Public Radio broadcasts for national and international news. “Anything that is local originates from here,” Capel said. The station will broadcast events live such as the Montgomery Area Chamber of Commerce Eggs & Issues, when elected leaders discuss a wide range of topics.

In addition to the jazz and news, the station airs a weekly one-hour interactive talk show; a weekly 30-minute legal program from the law firm of Beasley, Allen, Crow, Methvin, Portis & Miles, P.C.; a coach’s show with ASU Head Football Coach Reggie Barlow; and the university’s music department has its own show about the arts.

“We don’t have some giant media conglomerate in the middle of Kansas or somewhere programming our station. That’s what is happening with a lot of your commercial stations. These people don’t have any connection to the community. They couldn’t tell you what is going on in Montgomery.” WVAS-FM can and does. “We have air time to devote to community issues, community topics, community events, community conversations.”

WVAS-FM applied for and received a $25,000 grant to help veterans find jobs and housing. The station participated in the recent Hiring Our Heroes career fair.

What also sets WVAS-FM apart from commercial stations is being what Capel called “a training laboratory” for communication students at ASU. “This is one of the few places in the universe where a student can actually have hands-on training,” she said. That hands-on training is critical when walking into a radio station and being asked what experience you have. Some students may be on the air, but others prefer working behind-the-scenes in production or in community affairs, Capel said.

The students do have their own high-definition channel – Bama State Radio HD 2 – that is available from the station’s website: wvasfm.org.

There are live shows Wednesday and Friday from 6 a.m.-8 a.m., 11 a.m.-1 p.m. and 3 p.m.-6 p.m., when students play clean (lyrics) hip hop and R&B.

“We’re proud of the fact that we can expose people to music they might not have ever heard before.”

Candy Capel, station manager, WVAS-FM 90.7

“No one would have ever suggested on a stuffy, public radio station that you would hear a hip hop channel anytime, anywhere,” Capel said. “And we do. It’s exciting for the students.”

She said students had complained for years about wanting their own station. Now they play music from artists who are frequently passing through the area as well as local artists, “who would never have had their material played on a commercial station,” Capel said.

“Now, we get a chance to hear them.” ■

Sounds a lot like NPR with jazz. “It is and that’s what most public radio stations are,” Capel said. “They are the local community voice.”

As a public radio station, WVAS-FM does not have a piped-in playlist. “We develop our own playlists and we are not confined to a specific period,” Capel said.

November/December 2014 Montgomery Business Journal

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CAPS AND GOWNS FOR ALL story by David Zaslawsky photography

by Robert Fouts

Jay Love (left), is finance chairman and Joe Morton is president and chairman of the BEA.

If the statewide

Every year after 2020, a 90 percent high school graduation rate has the economic impact of a megaproject such as Mercedes-Benz coming to Alabama or Airbus. Each year after 2020:

high school

> 1,167 jobs would be created

graduation

> 5,463 more students would graduate from high school

rate is improved from 80 percent to 90 percent

> Those students graduating from high school would earn a combined $68 million more than at the 80 percent graduation rate. > The economic impact of a 90 percent statewide graduation rate by 2040 is staggering: > About 34,000 additional jobs

by 2020, the

> $1.7 billion in new earnings

economic

> $2.6 billion increase in the real gross domestic product (GDP)

benefits are off the charts.

> $100 million in additional tax revenue for the Education Trust Fund and $18 million more to the General Fund.

The economic impact study was conducted by Auburn University at Montgomery economics professor Keivan Deravi, who performs similar types of models for state projects.

Deravi, a special assistant to the AUM chancellor, conducted the study for the Business Education Alliance, a non-profit organization with one goal: Raise the statewide high school graduation rate from 80 percent to 90 percent by 2020.

That goal was determined after talking to numerous stakeholders. “It’s the one topic that people can rally around,” said Joe Morton, the former state superintendent of schools and the chairman and

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Montgomery Business Journal November/December 2014

president of the Business Education Alliance (BEA). “It has no political position of any kind,” he said. “It’s just about enabling young people to achieve their potential.”

Deravi, who projects the high school graduation slowly inching its way to 90 percent with increases ranging from 1.3 percent to 1.5 percent a year, concluded that the economic impact in 2020 would be the following: > About 22,500 more high school graduates > $284 million in new net earnings > $328 million increase in real GDP > $42 million in additional tax revenue for state/local.

Morton, along with finance chairman Jay Love, the former state representative, have devised a comprehensive approach to achieving the 90 percent goal. Any program or idea or plan or process that does not stay the course would not be used, according to Morton. Everything about the report, “Obstacles Into Opportunities,” is a step-by-step guide to achieve the goal of a 90 percent high school graduation rate.

“What we said is, what is the best way to get there, and that’s what we tried to point out in the research and let that guide us,” Morton said. “What really needs to happen in terms of things we’re doing right and if we need to make changes, what ought to be changed so that we can get there without cutting corners, lowering standards – but actually raising standards.”

The research identified five key elements, which are separate chapters in the report: “Start early; set high expectations; break down barriers to learning; seek continuous improvement in teaching and leading; equip every student with a plan for success and a pathway to prosperity.”

Starting early means full participation in the state’s highly acclaimed pre-K program and fully funding the program for all 4-year-olds by 2022. Funding has been raised from $10 million to $40 million, but that needs to reach $144 million, Love said.

Alabama’s College and Career Ready Standards, adopted in 2010, have helped raise educational standards, but Morton stressed the importance of assessments, which now will be handled by the ACT Corp. He said that it would cost about $6 million for the assessments of every student in the state.

One of the barriers to education is excessive absences.

“If kids aren’t in school, they can’t learn,” Love said.

Ten schools were involved in a pilot program that reduced excessive absences by 25 percent. Midfield High School, which was in the pilot program, has seen its graduation rate increase from 46 percent in 2011 to 60 percent in 2012 to 80 percent in 2013.

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Another key factor in breaking down barriers is community involvement, Morton said. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s looked at that (90 percent graduation rate) is a goal of the entire community.â&#x20AC;?

He talked about the importance of teacher training. â&#x20AC;&#x153;Letâ&#x20AC;&#x2122;s focus professional development for teachers around topics that get us to this 90 percent graduation rate,â&#x20AC;? Morton said.

Dual enrollment, where students in the 11th and 12th grades can take classes at a two-year school at the same time as their high school classes, â&#x20AC;&#x153;is a gamechanger,â&#x20AC;? Morton said. He gave the example of a dual enrollment student becoming a licensed practical nurse 90 days after graduating high school and taking two summer classes.

Equipping each student with a plan for success and a pathway to prosperity means the hiring of additional career coaches, who will work closely with students to keep them on that path. There are around 30 career coaches for 400-plus high schools. It will also mean expanded career tech courses.

â&#x20AC;&#x153;Many kids donâ&#x20AC;&#x2122;t graduate because they are not intellectually challenged; theyâ&#x20AC;&#x2122;re bored; they get into trouble because there is nothing thatâ&#x20AC;&#x2122;s of interest to them in high school,â&#x20AC;? Morton said. â&#x20AC;&#x153;This (dual enrollment) opens up a whole new interest door for high school kids.â&#x20AC;?

Joe Morton, chairman and president of the Business Education Alliance

â&#x20AC;&#x153;Many kids donâ&#x20AC;&#x2122;t graduate because they are not intellectually challenged; theyâ&#x20AC;&#x2122;re bored; they get into trouble because there is nothing thatâ&#x20AC;&#x2122;s of interest to them in high school,â&#x20AC;? Morton said. â&#x20AC;&#x153;This (dual enrollment) opens up a whole new interest door for high school kids.â&#x20AC;?

â&#x20AC;&#x153;The pathway is not cast in stone so they canâ&#x20AC;&#x2122;t change, but at least it focuses the students and their families on some goal,â&#x20AC;? Morton said. â&#x20AC;&#x153;It goes back to that goal of first graduating, but then graduating so that they are achieving their goal. The embedded goal is to follow that career pathway.â&#x20AC;? â&#x2013;

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Montgomery Business Journal November/December 2014

BUSINESS BUZZ BEASLEY, ALLEN LAW FIRM NAMED TO ELITE TRIAL LAWYERS LIST MONTGOMERY – Beasley, Allen, Crow, Methvin, Portis & Miles, P.C. has been selected for inclusion in the National Law Journal’s inaugural Elite Trial Lawyers list.

The list identifies law firms nationwide that have demonstrated the most creative and substantial work on the plaintiff’s side. To create the Elite Trial Lawyers list, more than 100 firms were vetted and 50 firms were selected for inclusion on the list.

“It is an honor to have the work of our team of lawyers and staff recognized by the National Law Journal,” Thomas Methvin, managing shareholder for Beasley Allen, said in a statement. “We are dedicated to our firm’s mission of ‘helping those who need it most,’ and make it our goal through our work to secure justice for our clients.

We hope that our efforts can hold Big Thomas Methvin Business and Big Pharma more accountable and increase public safety.”

To qualify for inclusion, firms had to have at least one significant plaintiff’s win between Jan. 1, 2013, and June 30, 2014, and possess an impressive track record of wins within the past three to five years. Firms also had to devote at least 50 percent of their litigation resources to plaintiffs work and derive half or more of their revenue from plaintiffs-side activities.

Firms with higher percentages of plaintiffs-side work were considered.

CHRISTIE STRATEGY GROUP CELEBRATES 20 YEARS MONTGOMERY – The Christie Strategy Group is celebrating its 20th anniversary.

Martin Christie Martin Christie founded the governmental relations firm in 1994 with one client, and over the years clients have included the Business Council of Alabama, U.S. Steel, T-Mobile, Alabama Cable Telecommunications Association, Alabama Railway Association and the City of Montgomery.

“Our firm’s success is built on an in-depth knowledge of Alabama government developed over many years,” Christie, president of the firm, said in a statement. “We have worked with six successive administrations and legislative bodies. Throughout this time, we have built and maintained solid relationships with public officials on both sides of the aisle.

“Most importantly, people in and outside of government know our word is good. We have a reputation for ethical conduct and that has been the most important key to our success.”

Christie Strategy Group is a fullservice public affairs/lobbying firm located in Montgomery, representing businesses, trade associations and local governments throughout the state.

MEMBER NEWS

“Clients come to Christie Strategy Group because of our strong track record of success in solving problems in the legislative and government arena,” Christie said. “They stay with us because they receive a level of service which is second to none.”

STARKE AGENCY RECEIVES PRESTIGIOUS HONOR MONTGOMERY – Starke Agency Inc. was selected again as a Best Practice Insurance Agency.

Each year since 1993, IIABA and Reagan Consulting Trey Starke join forces to study the country’s leading agencies in six revenue categories. More than 1,100 agencies throughout the U.S. were nominated to take part in the annual study, but only 217 agencies qualified for the honor.

“We are pleased to have been nominated nationally by our peers,” Starke Agency President Trey Starke said in a statement. “This is the eighth straight year we have been recognized, and we are the only independent agent in our area to receive this accolade. We have established a leadership structure and team approach to move our agency forward.”

Starke Agency, Inc. is an insurance brokerage and risk management company based in Montgomery.

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November/December 2014 Montgomery Business Journal

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GOODWYN, MILLS AND CAWOOD RENOVATES UAB HEALTH FACILITY BIRMINGHAM – The University of Alabama-Birmingham celebrated the grand opening of its new Student Health and Wellness Center.

The facility renovation, which transformed two former locations, was designed by Montgomerybased Goodwyn, Mills and Cawood Inc. The new 23,000-square-foot center, which is more than five times the size of the previous locations combined, is equipped with counseling space, exam rooms, laboratory spaces, an immunization area, X-ray room, waiting rooms, administrative areas and offices.

An estimated 12,000 to 15,000 patients a year will be treated at the facility.

RIVER BANK & TRUST WILL OPEN MILLBROOK BRANCH PRATTVILLE – River Bank & Trust announced plans for a new location at the intersection of Highway 14 and Old Prattville Road.

Jimmy Stubbs

The locally owned and operated community bank already has five other locations serving the River Region in Montgomery, Prattville and Wetumpka.

“Millbrook is a great place to do business,’ Jimmy Stubbs, president and CEO of River Bank & Trust, said in a statement.

“Under the leadership of Jon Foshee, Millbrook residents and businesses will have one of their

64

Montgomery Business Journal November/December 2014

own, a highly respected banker in their own backyard, to assist them with their financial needs.”

Foshee, senior vice president and relationship manager, said in a statement: “I’m excited about working through the regulatory approval process, finalizing building plans and getting some construction under way.”

ALABAMA TECHNOLOGY FOUNDATION AWARDS LOCKHEED MARTIN SCHOLARSHIPS MONTGOMERY – The Alabama Technology Foundation awarded two $2,500 Lockheed Martin spring semester scholarships.

“This is an exciting time for Alabama Technology Foundation,” Rob Pirnie, Rob Pirnie president of the non-profit, volunteer organization, said in a statement. “During 2014, we have ramped up our scholarship efforts in the River Region with the help of multiple local business supporters like Lockheed Martin, New York Life and Integrated Computer Solutions Inc., to name a few.

“We look forward to growing our efforts delivering scholarships and filling many more local IT jobs in the coming years. We are committed to a strong technology sector in the River Region and Alabama as a whole.”

The organization has its headquarters in Montgomery.

R&B ICON WILL HEADLINE GRAND OPENING FOR WIND CREEK WETUMPKA FACILITY WETUMPKA – Charlie Wilson will headline the inaugural concert in the newly completed Wind Creek Wetumpka Entertainment Center.

Wilson, a seven-time Grammy nominee, has received numerous awards, including a BET Lifetime Achievement Award in 2013.

Wilson was the lead vocalist for the GAP Band with hits “Outstanding” and “You Dropped A Bomb On Me.” As a solo artist he has topped the Billboard charts with numerous hits including “Charlie, Last Name Wilson,” “Magic,” “There Goes My Baby,” “Can’t Live Without You,” “You Are,” “Life of the Party” and “My Love Is All I Have.”

The campus-wide policy prohibits the use of all forms of smoking, tobacco products as well as e-cigarettes, water pipes or vapor devices. The policy covers all areas owned or controlled by the university.

“Tuskegee University is committed to providing a healthy and safe environment for all students, faculty, and staff,” the policy states.

Those breaking the tobacco ban could be fined $25.

CHAMBER’S CONVENTION & VISITOR BUREAU RELEASES NEW SMARTPHONE TOOL MONTGOMERY – Visitors and residents of Montgomery have a new way to find out what’s the city has to offer at their fingertips.

The concert is scheduled for 8 p.m. Nov. 14. Tickets start at $45 and are on sale at ticketmaster. com or Essentials inside the Wind Creek Casino & Hotel Wetumpka.

Texting “MGMAL” to the number 313131 will bring a response text containing a link to the Montgomery Area Chamber of Commerce Convention & Visitor Bureau’s mobile-enabled website.

Clicking the link on a smartphone will take users to a simple, easyto-read page offering links to lists hotels, restaurants, attractions, a calendar of events and more.

TUSKEGEE UNIVERSITY BANS TOBACCO ON CAMPUS

Smartphone users can also save a link to the mobile enabled web site to their home screens to have quick access to all things Montgomery all of the time.

Wilson played to a sold out crowd earlier this year at WCW’s sister property, Wind Creek Casino & Hotel Atmore.

TUSKEGEE – The Tuskegee University campus recently became a tobacco-free facility.

The Tobacco Free Policy applies to the entire university community, including contractors, vendors, recruits and visitors.

Signage directing visitors to the text service will be placed at entry points to the city including the Montgomery Regional Airport, the Montgomery Visitor Center, hotel lobbies, attractions and Maxwell Air Force Base and Gunter Annex.

CONTINUED ON PAGE

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November/December 2014 Montgomery Business Journal

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Ben Stakely

LaTora Jackson

Golson Foshee

ZZ TOP, JEFF BECK COMING TO MONTGOMERY IN APRIL MONTGOMERY – ZZ Top along with Jeff Beck will perform April 9 at the Montgomery Performing Arts Centre at the Renaissance Montgomery Hotel & Spa at the Convention Center.

Robert Granfeldt

Audrey Napier Matthews

Mike Tidwell

SEVEN APPOINTED TO MEDICAL CAMPUS ADVISORY BOARD MONTGOMERY – The advisory board of the Montgomery Regional Medical Campus of the UAB School of Medicine recently appointed seven new community leaders to be members of the board.

Established in 1981 by the late Dr. Jack Kirschenfeld, the role of the advisory board is to advocate for the regional campus in the River Region; to provide counsel and advice to the regional dean and the internal medicine, family medicine, and emergency medicine residency program directors; and support the sponsoring institutions – the UAB School of Medicine and the respective teaching hospitals.

The new board members are Golson Foshee, president of Foshee

66

Management; Robert C. Granfeldt Jr., publisher and president of the Advertiser Media Group; LaTora Todd Jackson, health adviser at Auburn University at Montgomery; Audrey Napier Matthews, professor of biologic sciences at Alabama State University; Ben Stakely, CEO of Kowa Pharmaceuticals; Mike Tidwell, director of organization department at the Alabama Farmers Federation; and Marty Vignes, executive director of the Southeast Alabama Area Health Education Center.

Montgomery Business Journal November/December 2014

ZZ Top announced: “We’d like to thank our friends, fans and followers for all the support through the recent interruption. We’re happy to say the engine is firing on all cylinders and we’re ready to double back again . . . and then some.”

GILPIN GIVHAN ATTORNEYS NAMED BEST LAWYERS 2015 MONTGOMERY – The law firm of Gilpin Givhan, P.C., announced that five Montgomery attorneys were selected for the 2015 edition of The Best Lawyers in America.

The selected lawyers were: Robert E. L. “Bobo” Gilpin, litigation and controversy – tax, and tax law; John Ward Weiss, health care law; Simeon F. Penton, employment law – management; Robert M. Ritchey, closely held companies and family business law; and Davis H. Smith, tax law.

Best Lawyers has been regarded as the definitive guide to legal excellence in the United States for more than 30 years. Inclusion in the Best Lawyers list is based on a rigorous national

survey of around 50,000 leading U.S. attorneys, and Corporate Counsel magazine has called Best Lawyers “the most respected referral list of attorneys in practice.”

Gilpin Givhan, founded in 1983, has its headquarters in Montgomery and offices in Birmingham.

AMERIFIRST BANK FORMS PARTNERSHIP WITH PARSONS BROACH FINANCIAL SERVICES MONTGOMERY – AmeriFirst Bank has partnered with the independent firm of Parsons Broach Financial Services.

Parsons Broach will provide bank customers with comprehensive securities brokerage, financial planning and asset management services as well as capital markets capabilities through Raymond James Financial Services.

“I am pleased to announce the partnership between our bank and Parsons Broach Financial Bob Ramsey Services,” AmeriFirst Bank President and CEO Robert “Bob” Ramsey said in a statement. “I have worked with Todd Parsons and Robbie Broach over the last 15 years. This continuing relationship should indicate to AmeriFirst clients that we are dedicated to working with some of the very best in the industry.

It also demonstrates our bank’s commitment to client service.”

Broach has more than 20 years of experience and holds Series 6, 7, 24 and 65 Securities Licenses as well as the certified financial planner certification. His focus is on corporate retirement plan design and management, financial planning,

mutual fund and ETF portfolio construction and management, and non-profit endowment funds.

Parsons also has 20-plus years of experience and holds Series 6, 7 and 65 securities licenses. His areas of focus include individual security portfolio construction and management, municipal bond management, financial planning and corporate retirement plans. â&#x20AC;&#x153;Having worked with Bob for many years now, I believe this will be a great fit as our firm continues to grow,â&#x20AC;? Broach, branch manager for Parsons Broach Financial Services, said in a statement. â&#x20AC;&#x153;He offers the type of experience and leadership necessary to keep up with the rapidly changing world of banking and financial services. Importantly, the bankâ&#x20AC;&#x2122;s values and business style align with the Parsons Broach values of client-first, supported by conservatism, independence and integrityâ&#x20AC;?.

Ramsey, Parsons and Broach previously worked together at Sterling Bank, a division of Synovus Financial.

STEVEN CURTIS CHAPMAN TO HEADLINE A MONTGOMERY FAMILY CHRISTMAS MONTGOMERY â&#x20AC;&#x201C; Christian artist Steven Curtis Chapman will headline the 10th anniversary celebration of â&#x20AC;&#x153;A Montgomery Family Christmasâ&#x20AC;?

Dec. 2 at the Montgomery Performing Arts Centre.

One of the most decorated artists in Christian music, Chapman has been lauded with 57 Dove awards, five Grammys and 47 No. 1 singles.

Joining Chapman for the event are Brandon Heath and Jillian Edwards.

Tickets are $35 for theater seating; $25 for balcony seating and groups of 10 or more will receive $5 off of each ticket purchased. Tickets can be purchased directly through

the Montgomery Performing Arts Centre box office (800-745-3000) or through Ticketmaster at ticketmaster.com.

The event is presented by the Baptist Health Care Foundation and benefits Baptist Hospice.

For information, call the Baptist Health Care Foundationâ&#x20AC;&#x2122;s office at (334) 273-4565.

COLLEGE GROUP DISTRIBUTES $33,950 IN SCHOLARSHIPS MONTGOMERY â&#x20AC;&#x201C; The Alabama Association of Independent Colleges and Universities has distributed $33,950 in UPS Scholarships to 14 low-income students at private colleges and universities in the state.

The scholarships were made possible by a grant from the UPS Educational Endowment Fund administered by CONTINUED ON PAGE

68

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67

the Council of Independent Colleges (CIC) in Washington, D.C. Nationally, CIC and the UPS foundation teamed up to provide nearly $1.5 million in student scholarships this year, which will be distributed through state-based private college associations around the country.

Colleges in Alabama that received UPS Scholarships this year from AAICU include Amridge University, Faulkner University, Huntingdon College and Tuskegee University.

HARTZELL ENGINE TECHNOLOGIES RECEIVES APPROVAL FOR FUEL PUMPS

Mike Disbrow

MONTGOMERY – Representatives of Hartzell Engine Technologies LLC, announced that the company has received FAA Parts Manufacturer Approval (PMA) for is new 202F series fuel pumps.

“We designed, developed and certified our new 202F series fuel pumps to fill a need in the market,” Hartzell Engine Technologies President Mike Disbrow said in a statement. “The original Crane/Lear Romec RG9570 pumps required for certain Lycoming engines are no longer in production. Now owners of these engines have a new alternative.”

Disbrow explained that the HET 202F series pumps not only provide equal performance to the Crane/Lear Romec units they replace, the new HET pumps offer some significant design advancements.

“One of the most significant differences between the new HET fuel pumps and the old Crane/Lear Romec pumps is that our units use new carbon vanes, whereas the priorgeneration units use steel vanes,” Disbrow said. “Because they are less abrasive than steel vanes, our

68

Montgomery Business Journal November/December 2014

new carbon vanes can dramatically reduce overall wear to the pump’s liner, which is the heart of the pump and a very expensive component to replace.”

JACKSON HOSPITAL, ALL MED PHYSICIANS FORM PARTNERSHIP MONTGOMERY – All Med Physicians and Jackson Hospital announced a joint venture Joe Riley partnership that will enable them to provide better access to health care for the River Region.

Both locally owned organizations have been expanding specialty care services throughout the community.

Combining resources and efforts will benefit patients in all levels of medicine.

Within one year, All Med plans to break ground on free-standing primary care locations in both Millbrook and East Montgomery. All Med Physicians, one of the largest primary care groups in the River Region with nine physicians and five mid-level practitioners, established three new primary care and minor emergency locations. Those locations as well as the organization’s All Med for Women and All Med for Wellness will continue operating as they have been.

All Med Medical Director Dr. Don Brobst said in a statement, “We have been very impressed with the Jackson medical staff and how much they have reached out to us. This partnership will help us meet the challenges presented by the Affordable Care Act and other changes being introduced by insurers.”

2015 SOUTHERN LEAGUE ALL-STAR GAME COMING TO MONTGOMERY

“The partnership between Jackson MONTGOMERY – The 2015 Southern Hospital and All Med was created League All-Star Game presented from our mutual goal to enhance

by Wind Creek Hospitality access to both primary and returns to Montgomery specialty care services,” after nine years on Joe Riley, president and Tuesday, June 23.

CEO of Jackson Hospital, said in a statement. “As Festivities will begin two organizations with a June 22 with the long history of providing Southern League high-quality care for the All-Star Social and River Region, we’re looking autograph session at Sherrie Myers forward to meeting our The Alley. patients’ needs together.”

All-Star festivities will resume the This partnership will link All Med evening of June 23 at Riverwalk patients directly with Jackson Stadium with the Southern League Hospital’s specialists, outpatient All-Star Home Run Derby. The Allimaging centers, diagnostic centers Star game will follow the home run and hospitalists. “Most people derby and after the game, there will have a hard time understanding be a MAX Fireworks Spectacular. the health care system,” Dr. Curt Tickets for the 2015 Southern McLemore of All Med said in a League All-Star Game are $22 for statement. “We try to make things reserved seating and $15 for general simple for patients. This partnership admission. Single-game tickets will will make that connection go on sale March 23. Ticket prices even easier.” include admission to the 2015 Southern League Home Run Derby.

The Montgomery Biscuits announced their 2015 promotional schedule, which includes 22 MAX Fireworks Spectaculars and the introduction of “MAX Fireworks Fridays,” a weekly promotion where every Friday game will include MAX Fireworks.

“Working with MAX Credit Union and our fireworks vendor, Pyro Shows, we’ve been able to construct a truly fan-pleasing show that is much more intimate and up close for those attending Biscuits games at Riverwalk Stadium that gives them a frontrow seat to the excitement,” Biscuits co-owner Sherrie Myers said in a statement.

Other promotions, include Hot Dog Festival, Rays Night, NASCAR Night and Back to the Future.

For ticket information, call the Biscuits’ front office at (334) 323-2255 or visit BiscuitsBaseball.com.

AUBURN MONTGOMERY OUTREACH STRATEGICALLY REORGANIZED

consulting, technology solutions, training solutions and community engagement.

Organizational consulting solutions authorities provide clients with solutions designed to promote organizational effectiveness. They also offer client guidance on complex issues such as talent management, strategic planning and economic analysis.

Technology solutions experts provide clients with a wealth of information technology resources including application development, managed services and project support services as well as IT project management and procurement.

Training solutions specialists produce customized education and training. These professionals develop computer training, professional development and executive leadership programs for individuals, businesses and nonprofit agencies.

Community engagement connects Auburn Montgomery Outreach to the community through a variety of initiatives.

Community engagement programs include the Business Breakfast Series, K-12 youth programs, and the Lifelong Learning Institute, along with several professional conferences throughout the year.

MONTGOMERY – Emerging from reorganization earlier this year, Auburn Montgomery “The reorganization Outreach is provided us an now better opportunity to better serve positioned to extend Katherine Jackson our clients by creating more the resources of Auburn University at Montgomery efficient processes and a broader to individuals, businesses and the range of services to meet their needs,” Katherine Jackson, vice communities it serves. chancellor for outreach and Auburn Montgomery Outreach strategic initiatives, said in a assists clients by providing statement. “These improvements opportunities for them to will allow us to grow strategically, expand their professional ensuring we provide programs knowledge and prepare for the that meet our clients’ needs now challenges of the future through and in the future.” ■ the resources provided by four core units: organizational November/December 2014 Montgomery Business Journal

69

MEMBER NEWS

MEMBERS ON THE MOVE SCARBROUGH JOINS EXIT REALTY MONTGOMERY – Katelyn Scarbrough joined EXIT Hodges Real Estate in Montgomery.

“We’re excited to welcome Katelyn to EXIT Realty,” Paul Hodges, broker of the EXIT Hodges Real Estate, said in a statement. “EXIT is growing and attracting quality business people like Katelyn each and every day.”

Scarbrough, who was raised in Montgomery, has been in the real estate business since 2014.

RUTLAND NAMED PRESIDENT FOR LOWDER NEW HOMES MONTGOMERY – Lowder New Homes Inc. announced that James W. “Jimmy” Rutland IV has been promoted to president.

Rutland, who has been with the firm for 15 years, was serving as vice president. He has 20-plus

Jimmy Rutland

years in the real estate development and homebuilding industry and was responsible for the initial development of the 800-acre Deer Creek master planned community in Montgomery.

Rutland is a certified Graduate Builder and Green Professional GOODWYN, MILLS AND Builder by the National CAWOOD HIRES Association of Home ARCHITECT FOR Builders. In 2005, the HEALTH CARE Greater Montgomery DIVISION Home Builders BIRMINGHAM – Architect Association named Bonnie E. Austin has him the Builder of joined Goodwyn, Mills the Year, and, in 2010, and Cawood Inc.’s health the Home Builders Bonnie Austin care division.

Association of Alabama named him the State’s Home Builder A 1992 graduate of Auburn of the Year.

University with both a bachelor’s “Lowder New Homes is fortunate to have Jimmy Rutland as our new president,” Colonial Co. Chairman James Lowder said in a statement. “Jimmy’s dedication to our homebuyer’s satisfaction, his accomplishments, experience, and professionalism and the respect he has earned from his peers, all contribute to our pride in Jimmy as our new president.”

Rutland said in a statement, “I am honored and excited to continue working with one of the most respected families and businesses in the Southeast. Lowder New Homes’ foundation was established almost 60 years ago with a vision

70

Montgomery Business Journal November/December 2014

and a goal of building homes and neighborhoods that people could be proud of. As president, I look forward to continuing that vision in the River Region and beyond.”

degree in architecture and building construction, Austin’s experience includes women’s and infants’ facilities, rehabilitation facilities, intensive care units, hyperbaric chamber outpatient clinics, senior and assisted living home facilities and medical office buildings.

Austin will be based in the firm’s Birmingham office, but will also spend significant time in the Atlanta office as the company continues to expand its health care presence in Georgia.

Austin was the architect of record for The University of AlabamaBirmingham Women and Infants Center and the adjoining HazelrigSalter Radiation Oncology Center in Birmingham. The Hazelrig-Salter Radiation Oncology Center, a 630,000 square-foot, nine-story medical building, houses the nation’s largest single-room neonatal intensive-care unit.

Early Winter Pool Pricing She served as the project coordinator for the building fit-out, which consisted of a 56-bed neonatal intensive care; 52-bed continuing care nursery; 40-bed well-baby nursery; 59 private ante-partum and post-partum rooms; 30 gynecology and gynoncology exam rooms; 13-room maternity evaluation unit; five post-anesthesia care unit rooms; four operating rooms; and 17 labor, delivery and recovery rooms specializing in highrisk patients.

MORGAN STANLEY WEALTH MANAGEMENT ADDS FINANCIAL ADVISER MONTGOMERY – Rebecca Baker recently joined Morgan Stanley Wealth Management, Rebecca Baker after 10 years serving as an adviser and certified public accountant at Aldridge Borden.

She is a licensed financial adviser with the Series 7 and 63 certifications. Baker graduated from The University of Alabama's Culverhouse School of Accountancy with a bachelor’s degree in commerce and business administration. She received a master’s degree in business administration from Auburn University at Montgomery.

Baker became a certified public accountant in 2007.

WIND CREEK HOSPITALITY HIRES CORPORATE EXECUTIVE CHEF

Easy & automated, water- & energy-efficient, virtually chlorine-free pools, spas & remodels

ATMORE – Wind Creek Hospitality (WCH) hired Chef Peter D’Andrea as the corporate executive chef.

He has more than 30 years of experience in the food and beverage industry.

One of his most exciting cooking experiences was cooking with renowned chef Julia Child at her 80th birthday party.

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D’Andrea spent five years at Gaylord Opryland Resort and Convention Center. He said that “one of his greatest honors” was receiving three James Beard invitations to cook at the townhouse in New York City.

He will be responsible for the creation and development of the culinary brand as well as the quality of food and beverages offered to WCH guests at Wind Creek Casino & Hotel Atmore, Wind Creek Casino & Hotel Wetumpka and Creek Casino Montgomery. He will continue the WCH tradition of purchasing local ingredients for recipes as often as possible.

CONTINUED ON PAGE

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71

AUM OUTREACH DIVISION HIRES SENIOR MARKETING MANAGER

BALCH & BINGHAM WELCOMES 11 NEW ASSOCIATES BIRMINGHAM – Balch & Bingham LLP announced 11 new associates to the firm, expanding offices in Birmingham, Montgomery and Gulfport, Miss.

MONTGOMERY – Rebecca W. Thomas has Rebecca W. Thomas The new associates will joined Auburn bolster the business, University at Montgomery as environmental, litigation senior manager of marketing in the and financial industries outreach division. sections of the firm.

She has spent her career at MAX Jacob Harper, who will Credit Union, where she was hired work in the Montgomery as a business development officer office, is a member of in 2006 and held various marketing the litigation section. roles before being promoted to He received his law degree from assistant vice president of marketing The University of Alabama School in 2014.

of Law and a bachelor’s degree in biosystems engineering from Auburn University.

“We are truly honored to welcome these talented new attorneys to Balch,” Alan T. Rogers, managing partner, said in a statement. “They represent the most brilliant graduates and truly embrace our collegial culture and commitment to delivering legal excellence and predictability to our clients.” ■

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Montgomery Business Journal November/December 2014

CHAMBER NEWS

HEALTHSOUTH REHABILITATION HOSPITAL OF MONTGOMERY 4465 Narrow Lane Road, Montgomery, AL 36116 334-284-7700 • www.healthsouthmontgomery.com Linda Wade-CEO • Hospitals/Clinics

RIBBON CUTTINGS & GROUND BREAKINGS

KNICKER KNACKER MARKET 163 Lee Street, Unit A, Montgomery, AL 36104 334-261-4001 • www.c1corpunlimited.com Ron Dean-Owner • Convenience Store

LITTLE RED CUPCAKE

HOLIDAY INN EXPRESS MONTGOMERY EAST

PHOTOGRAPHY BY DIANNA PAULK

638-A South Hall Street, Montgomery, AL 36104 334-202-2017 • www.littleredcupcake.com Nita Johnson-Co-Owner • Fred Johnson-Co-Owner • Bakery

5135 Carmichael Road, Montgomery, AL 36106 334-270-9199 • www.hiexpress.com/montgomeryEI85 George Sanders-General Manager • Hotels/Motels

6009 A Monticello Drive, Montgomery, AL 36117 334-324-9533 • www.diannapaulk.com DiAnna Paulk-Owner • Photographers

HUNGRY HOWIE’S PIZZA

THE CHURCH AT EASTERN OAKS

RENFROE’S FOODLAND

1712 Carter Hill Road, Montgomery, AL 36106 334-262-8988 • www.hungryhowies.com Joel Easterwood-Managing Partner/Owner Restaurants-Pizza

7505 Wares Ferry Road, Montgomery, AL 36117 334-396-9811 • www.easternoaksbaptist.org Daniel Gillenwater-Senior Pastor • Churches/Ministries

9168 Eastchase Parkway, Montgomery, AL 36117 334-801-9021 • www.renfroesfoodland.com Robert Renfroe-Owner • Groceries-Retail

ADAMS DRUGS

SWEET HOME BUFFET

PARKER LEADERSHIP CONSULTING

9168 Eastchase Parkway, Montgomery, AL 36117 334-386-7068 • Mike Vinson-Owner Pharmacies

6050 Atlanta Highway, Montgomery, AL 36117 334-279-5149 • Jin Yoon-President Restaurants-Southern

8730 Robins Look Court, Montgomery, AL 36117 334-430-0632 • www.johnmaxwellgroup.com/roderickparker Roderick Parker-Leadership Coach • Consulting Services

November/December 2014 Montgomery Business Journal

73

CHAMBER NEWS

NEW MEMBERS THE UNIVERSITY OF ALABAMA SYSTEM Porter Banister 770 Washington Avenue, Suite 520 Montgomery, AL 36104 334-242-2262

ASSOCIATIONS/NON-PROFIT

ALABAMA RURAL WATER ASSOCIATION Kathy Horne 2576 Bell Road Montgomery, AL 36117 334-396-5511

AUTOMOBILE REPAIR SERVICES

ALABAMA TECHNOLOGY FOUNDATION Rob Pirnie P.O. Box 240036 Montgomery, AL 36124

B.Y.O.P. AUTOMOTIVEMONTGOMERY Valerie Sheperd 2899 East South Boulevard Montgomery, AL 36116 334-288-8900

MONTGOMERY CENTER FOR INDEPENDENT LIVING Kent Crenshaw 345 Molton Street Montgomery, AL 36104 334-240-2520

CAR WASH & DETAIL

WASH ME FAST MONTGOMERY Roderick Jones 2395 East South Boulevard Montgomery, AL 36116 334-288-1106

COMMUNICATIONS EQUIPMENT

DENTISTS

ADTRAN, INC. Barry Derrick 901 Explorer Boulevard Huntsville, AL 35806 1-800-923-8726

MICHAEL V. LEGRAND, DMD, PC Michael LeGrand 8324 Crossland Loop Montgomery, AL 36117 334-279-1166

CONTRACTORS

ELECTRIC CONTRACTORS

PHILLIP POUNCEY BUILDER, INC. Phillip Pouncey P.O. Box 11693 Montgomery, AL 36111 334-288-6000

TRUSTWORTHY SERVICES, INC. Randy Jones 517 Oliver Road Montgomery, AL 36117 334-215-1782

CREDIT CARDS/SERVICES

ALPHA & OMEGA PROCESSING Nate Roulston 9599 Pleasant Drive Daphne, AL 36526 866-242-4325

EVENT PLANNER

THE CANA AGENCY Danielle Golston P.O. Box 241541 Montgomery, AL 36124 334-544-0447

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Montgomery Business Journal November/December 2014

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GROCERIES-RETAIL

RENFROEâ&#x20AC;&#x2122;S FOODLAND Robert Renfroe 9168 Eastchase Parkway Montgomery, AL 36117 334-801-9021 HOSPITALS/CLINICS

AFC PRIMEDATLANTA HIGHWAY Felicia Fortune 4305 Atlanta Highway Montgomery, AL 36109 334-323-2260 AFC PRIMEDTAYLOR CROSSING Felicia Fortune 34 Taylor Road North Montgomery, AL 36117 334-323-1510 AFC PRIMED-VAUGHN ROAD Felicia Fortune 2815 Eastern Boulevard Montgomery, AL 36116 334-323-2050

EASTSIDE FAST CARE, LLC Sagar Vadlamudi 14 Mitylene Park Lane Montgomery, AL 36117 334-524-3266 INSURANCE COMPANIES/SERVICES

COASTAL INSURANCE COMPANY, INC. Margaret Nekic P.O. Box 211359 Montgomery, AL 36121-1359 CURRIE INSURANCE AGENCY Donald Currie 2921 Marti Lane, Suite 8-B Montgomery, AL 36116 334-462-3307 LEGAL SERVICES-ATTORNEYS

THE HARRIS FIRM, LLC Steve Harris 4144 Carmichael Road Suite 100 Montgomery, AL 36106 334-782-9938

LEGISLATIVE MONITORING, TRACKING & REPORTING

ALABAMA LEGISLATIVE READING & RESEARCH SERVICE Stephen Morris 4171 Lomac Street, Suite D Montgomery, AL 36106 334-834-0011 PHARMACIES

WALGREENS DRUG STORE #2203 Tamara Stinson 3892 Atlanta Highway Montgomery, AL 36109 334-270-0757 WALGREENS DRUG STORE #9456 Terry Criswell 2920 Carter Hill Road Montgomery, AL 36106 334-262-1169

RESTAURANTS

SPORT SHOOTING

WINGERS Lee Pena 7929 Vaughn Road Montgomery, AL 36116 334-396-3279

MONTGOMERY INDOOR SHOOTING COMPLEX Lilly Gibbs & Frank Manuel 5765 Carmichael Parkway Montgomery, AL 36117 334-215-2255

RESTAURANTS-SOUTHERN

SWEET HOME BUFFET Jin Yoon 6050 Atlanta Highway Montgomery, AL 36117 334-279-5149 SAFETY PRODUCTS

TRANSPORTATION SERVICES

PREMIER TRANSPORTATION Allan Medici 125 Sixth Street Montgomery, AL 36104 321-243-5304

SHARP COMMUNICATION Rex Reynolds 2209 South Forbes Drive Montgomery, AL 36110-15 800-548-2484

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November/December 2014 Montgomery Business Journal

75

CHAMBER NEWS

ECONOMIC INTEL UNEMPLOYMENT

Civilian Labor Force SEPTEMBER P 2014

AREA Montgomery MA

AUGUST R 2014

Unemployment Rate

SEPTEMBER R 2013

SEPTEMBERT P 2014

AUGUST R 2014

SEPTEMBER R 2013

162,437

164,620

165,633

6.40%

7.40%

6.80%

Autauga County

24,807

25,124

25,283

5.40%

6.30%

5.70%

Prattville City

15,846

16,046

16,142

4.70%

5.60%

5.00%

34,186

34,582

34,818

5.60%

6.50%

5.90%

Elmore County Lowndes County Montgomery County

3,856

3,880

3,912

12.50%

12.80%

12.40%

99,588

101,033

101,621

6.60%

7.70%

7.10%

Montgomery City

89,160

90,424

90,918

6.60%

7.70%

7.00%

Birmingham-Hoover MA

518,047

522,364

526,188

5.40%

6.30%

5.70%

Birmingham City Huntsville MA Huntsville City Mobile MA Mobile City Alabama United States

87,257

88,149

88,755

7.20%

8.20%

7.60%

208,559

211,593

211,489

5.30%

6.20%

5.50%

88,599

89,821

89,808

5.40%

6.10%

5.50%

178,586

179,945

182,445

7.00%

8.00%

7.50%

83,094

83,714

84,898

7.40%

8.40%

7.90%

2,109,922

2,130,844

2,135,208

6.10%

7.10%

6.50%

155,903,000

156,434,000

155,536,000

5.70%

6.30%

7.00%

MA=Metropolitan Area. pPreliminary rRevised Estimates prepared by the Alabama Department of Industrial Relations in Cooperation with the Bureau of Labor Statistics, based on 2013 benchmark.

SEPTEMBER 2014

SEPTEMBER 2013

Montgomery County

$3,319,856

$3,295,057

City of Montgomery

$8,193,550 $173,640

Prattville Millbrook

SALES TAX

Pike Road

YEAR OVER YEAR % CHANGE

YTD 2014

YTD 2013

YEAR OVER YEAR % CHANGE

0.75%

$30,599,742

$29,975,845

2.08%

$8,040,735

1.90%

$72,958,965

$71,231,387

2.43%

$154,397

12.46%

$1,437,775

$1,454,314

-1.14%

$1,592,505

$1,633,799

-2.53%

$15,198,975

$15,088,291

0.73%

$527,144

$486,948

8.25%

$4,484,075

$4,381,307

2.35%

Autauga County

$619,803

$617,023

0.45%

$5,834,887

$5,897,118

-1.06%

Wetumpka

$464,043

$462,295

0.38%

$4,256,256

$4,514,827

-5.73%

Sources: Montgomery County Commission, City of Montgomery, City of Pike Road, Autauga County Commission, City of Prattville, Elmore County Commission, City of Wetumpka, City of Millbrook. Note: YTD numbers are January 2014 thru current month.

MONTGOMERY METRO MARKET HOME SALES* SEPTEMBER 2014

AUGUST 2014

MONTH/MONTH % CHANGE

YEAR/YEAR % CHANGE

STATEWIDE SEPTEMBER 2014*

Median Price

$140,000

$137,000

2.19%

$130,000

7.69%

$129,511

Average Price

$157,657

$159,254

-1.00%

$155,438

1.43%

$153,990

2,723

2,882

-5.52%

2,983

-8.72%

32,992

7.3

7.8

-6.41%

11.3

-35.40%

8.3

Units Listed Months of Supply Total # Sales

372

368

1.09%

265

40.38%

3,957

Days on Market

127

131

-3.05%

112

13.39%

148

Source: Alabama Center for Real Estate (ACRE), The University of Alabama

76

SEPTEMBER 2013

Montgomery Business Journal November/December 2014

QUARTERLY REPORTS

NAME

QUARTERLY REVENUES

NET INCOME

EARNINGS PER SHARE

EARNINGS ESTIMATE

YEAR-AGO REVENUES

YEAR-AGO NET INCOME

RadioShack

$673.8M

(-$137.4M)

(-$1.35)

(-$0.66)

$861.4M

(-$52.2M)

Men’s Wearhouse

$803.1M

$12.3M

$0.25

$1.06

$647.3M

$42.9M

Comparable sales rose 4.4%

Darden Restaurants (Olive Garden, LongHorn Steakhouse)

$1.6B

(-$19.3M)

(-$0.14)

N/A

$1.5B

$42.2M

LongHorn Steakhouse revenue up $9.7M to $356.9M

Rite Aid

$6.5B

$127.8M

$0.13

$0.06

$6.3B

$32.8M

Revenue increased 3.9%

$418.6M

$9.2M

$0.10

$0.13

$395.6M

$17.8M

Sales rose 5.8%

Walgreens

$19.10

(-$239M)

(-$0.25)

$0.74

$17.9B

$657M

Recorded non-cash loss of $866M to buy Alliance Boots

AutoZone

$3B

$373.7M

$11.28

$11.23

$2.9B

$347.8M

Profit up 7.4%

Bed, Bath & Beyond

$2.9B

$224

$1.17

$1.14

$2.8B

$249.3M

Sales increased 4.3%

Yum Brands (Pizza Hut, KFC, Taco Bell)

$3.4B

$404M

$0.89

$0.83

$3.4B

$152M

China same-store sales declined 14%

Costco

$35.5B

$697M

$1.58

$1.52

$31.8B

$617M

Same-store sales rose 7%

Family Dollar

$2.6B

$34.5M

$0.30

$0.77

$2.5B

$102.2M

Sales increased 4.5%

Ruby Tuesday

$281.2M

$2.6M

$0.04

(-$0.12)

(-$21.9M)

$289.7M

Same-store sales at companyowned restaurants up 1.1%

Pier 1 Imports

BUILDING STARTS

Building Permits SEPTEMBER 2014

AUGUST 2014

Warns about the possibility of filing for Chapter 11 bankruptcy

Building Valuations

SEPTEMBER 2013

SEPTEMBER 2014

AUGUST 2014

SEPTEMBER 2013

New Construction

31

41

31

$2,214,000

$3,917,797

$22,030,000

Additions and Alterations

86

90

70

$11,493,302

$4,471,589

$4,429,400

Others

25

19

26

$95,000

$236,565

$58,500

142

150

127

$13,802,302

$8,625,951

$26,517,900

Total

NOTABLE

Source: City of Montgomery Building Department

November/December 2014 Montgomery Business Journal

77

HYUNDAI SALES

AIR FARES

VEHICLE

AUG 2014

AUG 2013

YTD 2014

Accent

4,724

5,117

42,743

40,113

Sonata

21,092

16,917

150,016

138,830

Elantra

22,845

24,700

157,555

174,902

SantaFe

9,302

8,102

69,962

56,105

511

898

5,214

7,618

Tucson

5,266

3,886

33,369

Veloster

2,981

3,093

0

6

Azera

Veracruz Genesis

Roundtrip airfare comparisons from Montgomery, Birmingham and Atlanta airports to key destinations.

DESTINATION

MONTGOMERY

BIRMINGHAM

ATLANTA

Baltimore (BWI)

$315

$263

$268

Boston (BOS)

$315

$334

$269

Charlotte, NC (CLT)

$238

$242

$287

Chicago (ORD)

$277

$252

$124

30,042

Cincinnati (CVG)

$267

$330

$246

20,188

21,005

Dallas/Ft Worth (DFW)

$341

$290

$129

1

175

Denver (DEN)

$315

$374

$204

Detroit (DTW)

$290

$371

$141

Houston (HOU)

$276

$287

$155

Indianapolis (IND)

$277

$318

$215

Las Vegas (LAS)

$499

$486

$357

Los Angeles (LAX)

$384

$396

$317

Memphis (MEM)

$271

$262

$262

Miami (MIA)

$387

$351

$260

Nashville (BNA)

$396

$396

$327

New Orleans (MSY)

$397

$256

$226

New York (JFK)

$387

$312

$272

Orlando (MCO)

$309

$221

$94

Philadelphia (PHL)

$292

$226

$114

Pittsburgh (PIT)

$277

$332

$223

St Louis (STL)

$261

$245

$230

Seattle (SEA)

$404

$402

$385

$1,566

$1,485

$1,241

Tampa (TPA)

$261

$239

$234

Washington DC (DCA)

$277

$246

$247

3,029

2,947

20,065

22,191

253

435

2,335

2,135

70,003

66,101

501,448

493,116

Equus Total

YTD 2013

Source: Hyundai Motor America

Seoul (SEL)

Date of travel: Dec. 9-14, 2014. Date of pricing: Oct. 12, 2014.

Source: travelocity.com

MONTGOMERY REGIONAL AIRPORT STATS SEPTEMBER 2014 Air Carrier Operations

SEPTEMBER 2013

YEAR OVER YEAR % CHANGE

YTD 2014

YTD 2013

YEAR OVER YEAR % CHANGE

883

910

-3.0%

7,824

8,078

-3.1%

6,370

5,841

9.1%

48,861

45,380

7.7%

Enplanements

15,395

12,477

23.4%

123,096

121,732

1.1%

Deplanements

15,470

11,997

28.9%

124,315

121,297

2.5%

Total Passengers

30,865

24,474

26.1%

247,411

243,029

1.8%

Total Operations

Source: Montgomery Regional Airport (MGM) Dannelly Field

78

Montgomery Business Journal November/December 2014

November/December 2014 Montgomery Business Journal

79

Post Office Box 79 Montgomery, AL 36101