Palm Beach County BUSINESS | Summer 2019

Quarterly Economic Development Magazine | Summer 2019

Cleaning

Worlds Oceans

Growing the Life Sciences Cluster 28 New BDB facilitated Projects

Innovative Aquaculture Company

Richard Bernstein_PBCBQ Summer 19.qxp_Layout 1 8/8/19 8:09 AM Page 1

contents

Palm Beach County Business Quarterly | Summer 2019

F E AT U R E S

6

Cleaning the Ocean of Plastic One Pound at a Time

8

12

BDB Leading the Growth of Life Sciences Sector

Twenty New Projects

14 Sector Snapshots

DEPARTMENTS News and Events Max Planck & Scripps Innovation in Aquaculture Positive Outlook for Palm Beach County’s Office and Industrial Markets

4 10 11 17

18

Outreach Missions “Connecting our County to the World”

18

Membership Referral Program

19

Summer Interns Learn About Palm Beach County

20

County Corner

summer 2019 pbc business |

1

InTheKnow from the

CEO

It's been a productive nine

months for the Business Development Board together with our public and private partners in economic development for the benefit of our community. As we approach the end of the fiscal year, we are seeing a tremendous number of business expansions and relocations that are bringing new high-paying jobs and career opportunities to Palm Beach County.

That growth is particularly evident in our life sciences sector, a featured topic in this issue of Palm Beach County Business.

Pharmaceutical and medical device companies have a long history of success in our county, and the arrival of Scripps Research Institute Florida and the Max Planck Florida Institute for Neuroscience has moved our region to the forefront of this dynamic national industry sector.

To take just one example, Expansion Therapeutics, a biotechnology company in Jupiter, is advancing its leading-edge platform. One of The Scripps Research Institute Florida’s largest spinoff companies, Expansion Therapeutics was founded on pioneering work from the lab of Matthew D. Disney, Ph.D. Expansion’s pipeline is focused on the development of small molecule drugs targeting key human disease-driving RNAs. A significant number of financial services, marine, logistics, manufacturing and aerospace/aviation/engineering companies have also expanded or moved their operations to Palm Beach County this spring, contributing to our growing economic diversity.

In fact, there were 28 successful BDB-facilitated projects since October 2018.

Our county is also becoming known worldwide as a hub for innovation. Algafeed has found a new approach to growing nutritional, natural microalgae to serve as a healthy food source for the aquaculture industry. From its base in Boca Raton, 4Ocean is tackling the problem of ocean pollution by removing plastic wastes from polluted waters and shorelines, and raising awareness of the problems caused by single-use plastic bottles.

With our talented workforce, high quality of life and positive business climate, we expect this positive momentum to continue in the months ahead. Thanks again for your support as we continue our focus to bring quality jobs to Palm Beach County.

MANAGEMENT TEAM Kelly Smallridge President & CEO 561.835.1008 Ext. 4121 ksmallridge@bdb.org Gary Hines Senior Vice President – Administration 561.835.1008 Ext. 4111 ghines@bdb.org Lisa Anderson Vice President – Private Funding 561.835.1008 Ext. 4110 landerson@bdb.org Kristen Boyd Vice President - Marketing 561.835.1008 Ext. 4106 kboyd@bdb.org Shereena Coleman Vice President – Business Facilitation & The Glades Region 561.835.1008 Ext. 4125 scoleman@bdb.org Tim Dougher Vice President – Business Recruitment, Retention and Expansion 561.835.1008 Ext. 4131 tdougher@bdb.org Robert P. Mino Vice President, Life Sciences 561.835.1008 Ext. 4109 rmino@bdb.org Shawn Rowan Vice President – Business Recruitment, Retention and Expansion 561.835.1008 Ext. 4108, srowan@bdb.org Tim Tracy Vice President – Member Events 561.835.1008 Ext. 4117 ttracy@bdb.org COVER PHOTO BY: 4OCEAN

PUBLISHED BY

Passport Publications & Media Corporation 1555 Palm Beach Lakes Blvd., Suite 1550 West Palm Beach, FL 33401 561.472.8778 • PassportPublications.com

Kelly Smallridge President and CEO

2 | pbc business summer 2019

Palm Beach County Business Quarterly is published by Passport Publications & Media Corporation, on behalf of the Business Development Board of Palm Beach County, Inc. All rights reserved. No part of this publication may be reproduced without the expressed written consent of the Business Development Board of Palm Beach County and the publisher. © 2019 Passport Publications & Media Corporation

US Realty Management_Summer 19.qxp_Layout 1 8/8/19 8:09 AM Page 1

Flagler Waterview 1515 North Flagler Drive, West Palm Beach, FL 33401 Christy Sullivan Direct 561.881.5417 Cell 314.221.0207 aetnarealty.com

Call For Office Space Availability Today!

Iconic Downtown WPB 105 S. Narcissus Avenue, West Palm Beach, FL 33401 Christy Sullivan Direct 561.881.5417 Cell 314.221.0207 aetnarealty.com

NEWS

Local Partnership Develops Breakthrough Stroke Treatment

While the clot-busting drug tPA has been the gold standard to treat stroke for decades, researchers from Florida Atlantic University’s Schmidt College of Medicine and Boca Raton Regional Hospital’s (BRRH) Marcus Neuroscience Institute are taking treatment options to the next level.

Jang-Yen (John) Wu, Ph.D., distinguished professor of biomedical science in FAU’s Schmidt College of Medicine, and Brian Snelling, M.D., chief of cerebrovascular and endovascular neurosurgery and medical director of the Marilyn and Stanley Barry Center for Cerebrovascular Disease and Stroke at the Marcus Neuroscience Institute and BRRH, have joined forces to combine a breakthrough interventional procedure for stroke with a novel drug compound that has neuroprotective properties.

At BRRH’s Marcus Neuroscience Institute, Snelling performs a procedure called a mechanical thrombectomy. He uses a stent within the walls of the artery to retrieve and remove blood clots in stroke patients. This method significantly reduces strokerelated disability and death, and one out of every two patients can walk out of the hospital after they have the procedure. Snelling likens it to the equivalent of giving antibiotics to a patient with pneumonia.

However, time is of the essence.

That’s where Wu’s drug discovery efforts could make all the difference and give Snelling a wider timeframe to perform this procedure, while protecting patients against further damage from blockages. Wu has been developing a therapeutic method to Florida Atlantic University’s Schmidt College of Medicine replenish new brain cells using granulocyte colonystimulating factor (GCSF), an FDA-approved drug used to enhance blood cellular development. The idea is to administer GCSF during a mechanical thrombectomy directly to the site of the blockage, providing a more specific method of drug delivery right to the target. PBCB

BDB Hosts Palm Beach State College’s FUN FACTS HR Business Partnership Council

n

n

n Human resource professionals from diverse backgrounds recently attended Palm Beach State College’s Human Resource Business Partnership Council, an event hosted by the Business Development Board to discuss recruitment efforts at PBSC. The Council plans to establish workplace experiences, which will ultimately lead to job readiness skills for PBSC students through job shadowing and employer site tours. Another goal of the council is to ensure that customized, offsite training is offered to businesses. PBCB

4 | pbc business summer 2019

Claudia Zylberberg, CEO of Akron Biotech - member of the BDB's Life Science Advisory Council - made The Medicine Maker’s List of 2019’s “Top 100 Power Leaders” in America.

For the third time in a row, Florida was ranked No. 1 in America for education by Newsweek.

South Florida Science Center and FAU Brain Institute opened one of the world's most advanced neuroscience exhibits, which will inspire a new generation of scientists, technologists, and medical professionals. PBCB

BDB and South Florida Manufacturing (SFMA)

NEWS BDB Honored for

Enter Partnership

Innovative Strategies

The BDB and the SFMA will be working together to grow the manufacturing industry through a Memorandum of Understanding.

Recently this year, the SFMA announced winners for its 2019 Recognition of Excellence Awards, including Palm Beach County companies HABCO, Tellus Products, and Lockheed Martin, Rotary & Mission Systems. At a separate competition, Tellus Products and Lockheed Martin were also “2019 Florida Sterling Manufacturing Business Excellence” winners, receiving statewide recognition at the Governor’s Sterling Awards Banquet. PBCB

The Business Development Board has been recognized for innovative strategies in promoting Palm Beach County as a premier business location. The Florida Economic Development Council (FEDC) presented three awards in Promotional and Marketing Innovation, which included the BDB’s annual publication, Profile magazine, and the BDB’s quarterly publication, Palm Beach County Business magazine, both of which are published by Passport Publications. The third was the BDB's National Ad Campaign targeting CEOs in the Northeast, a creative strategy developed in cooperation with Alchemy Communications.

Kelly Smallridge, president and CEO of the BDB, accepted the awards at the 2019 Florida Economic Development Conference, which recognized the achievements of Florida’s top economic developers throughout the state. Awards were given to recognize exemplary achievements in innovation and marketing for economic development and innovative/best practices for our communities and abroad. These professionals work in Florida’s 67 counties, 400+ cities, 24 workforce regions, 28 colleges and 12 universities, as well as utilities, ports, airports and industrial authorities. PBCB

Companies making the move

1

2 3 4 5

2

1

3

4

South Florida Science Center's grand opening for the new brain exhibit on 3.13.19 Buyers Edge grand opening on 4.23.19 Gulfstream Aerospace’s groundbreaking on 5.14.19 Gift of Life’s grand opening on 4.30.19 Digital Resource’s grand opening on 5.9.19

5 summer 2019 pbc business |

5

Cleaning the

Ocean of Plastic One Pound at a Time

Andrew Cooper and Alex Schulze are dedicated to cleansing the world’s oceans, removing plastic trash one pound at a time. In 2015, the two friends embarked on a surfing trip to Bali, only to find beaches covered in plastic garbage. Returning home, they created a sustainable business approach to address the global problem, and founded 4ocean in Boca Raton in 2017.

In just two years, 4ocean has become a worldwide leader in recovering and recycling ocean plastic, advocating for sustainable innovation and inspiring people around the world to reduce their consumption of single-use plastic.

Today, 4ocean has 300-plus employees (half in the company’s Boca headquarters), cleaned the ocean and coastlines in 27 countries, and created partnerships with 15 different charities as well as for-profit companies like Air Canada and Delivery Dudes.

“The overproduction and consumption of single-use plastics is the cause of the ocean plastic crisis,” said Cooper. “The real solution is changing people’s behaviors on land. We have a finite amount of time to act, so education is key.”

4ocean funds its operations through sales of bracelets made with recycled materials, reusable water bottles and other products.

Every bracelet purchased pays for the removal of 1 pound of trash from the ocean and coastlines. Since its founding, 4ocean has removed more than 4.4 million pounds of trash from the ocean and coastlines, and donated more than $300,000 to nonprofits supporting marine conservation.

“We are creating an economy for the removal of plastic from the ocean,” said Schulze. “Our reclaimed plastics are turned into highquality pellets that manufacturers can transform into meaningful and sustainable products.”

Palm Beach County businesses can support 4ocean by providing financial support, such as purchasing multiple products to fund cleanup operations, added Cooper. Businesses in the food and beverage sector can also adopt alternatives to single-use plastics – a major contributor to ocean garbage.

In April, 4ocean announced a partnership with Air Canada to

Photo by: 4ocean

6|

pbc business summer 2019

reduce and eventually eliminate single-use plastics on the airline’s aircrafts and in its lounges.

Through this partnership, Air Canada is also creating the opportunity for its employees to participate in 4ocean’s coastal North America cleanups in 2019.

“We are ecstatic to partner with Air Canada in an initiative to eliminate single-use plastic,” said Tony Chvala, chief operating officer at 4ocean. “We believe Air Canada’s sustainability program is a giant leap forward in this initiative. 4ocean is looking forward to removing thousands of pounds of plastic and waste with Air Canada.”

A few weeks later, 4ocean teamed up with Delivery Dudes to reduce the amount of plasticware included in delivery orders.

Customers now have the option to opt out of plasticware when placing an order through the Delivery Dudes app, website or by phone. The goal is to encourage the use of sustainable substitutions and change consumer habits.

“Offering the option to say 'no' to single-use plastic utensils is a

step in the right direction of creating more sustainable consumer choices,” said Chvala.

Newsweek recently recognized Schulze and Cooper’s innovative approach by naming them to the publication’s 2019 Creative Class, among other leaders developing new solutions for problems like pollution, economic disparities and discrimination.

While ocean plastic is a global problem, some areas are more severely impacted than others. 4ocean opened its first international headquarters in Bali, Indonesia. After identifying the Haitian coast as a high-impact area, 4ocean built a second cleanup division headquarters in Port-au-Prince.

“Our primary goal is to clean the plastic and trash already polluting Haiti by focusing on river mouths where we can intercept and recover it before it enters the ocean,” said Cooper. “We’re also creating and joining local awareness programs to help educate affected communities about the impacts plastic has on the ocean and their local environment.

By sharing these impacts, we can help change behaviors and prevent more plastic and trash from entering the ocean.” PBCB

summer 2019 pbc business |

7

BDB YEAR-TO-DATE LIFE SCIENCE ACTIVITY n 112 meetings with life sciences stakeholders n 50 meetings with local companies to discuss life sciences funding n 18 active leaders of the life sciences advisory council n 17 industry-related networking events n 1 life science microsite dedicated to marketing the life sciences industry n Multiple career talks with local colleges and universities to the future life science workforce n 12 relocations and expansions creating more than 350 jobs

8 | pbc business summer 2019

BDB Leading the

Growth of Life Sciences Sector

For more than a decade,

the Business Development Board has focused on advancing the life sciences sector in Palm Beach County. Working closely with Enterprise Florida, Inc., and city, county and state governments, the BDB helped attract Scripps Research Institute Florida and Max Planck Florida Institute for Neuroscience to Jupiter over a decade ago.

Today, Max Planck and Scripps are the No. 1 and No. 2 research leaders in the world, according to recent rankings by the journal Nature.

The groundbreaking work being done in their laboratories is generating spinoffs, licensing arrangements and other commercial developments.

Overall, there are more than 700 life sciences companies throughout Palm Beach County including pharmaceutical, medical device, R&D and manufacturing operations.

“When we teamed up to recruit Scripps and Max Planck to our county, this was our vision,” said Kelly Smallridge, BDB president and CEO. “Now we are finally seeing momentum.”

On May 17, celebrating a 100 year anniversary, the Palm Beach Medical Society presented the BDB with an award for supporting the growth of the life sciences cluster. Each year, the society recognizes a community partner helping to advance health care innovation.

Robert Mino, BDB vice president, life sciences, accepted the award, noting that the BDB commissioned an industry study in 2015 that generated feedback from local stakeholders. That resulted in an intensified focus on life science workforce development, financial support, and educational programs. “Now, we are creating a life sciences community here where researchers, clinicians, financiers, educators and entrepreneurs can collaborate and join forces,” Mino said.

In fact, the BDB assisted 12 companies to relocate to or expand in Palm Beach County just this year, expecting over 500 jobs within the life sciences sector. Algafeed, Capzer Pharmaceuticals, CSL Plasma, Cytonics, Detraxi, Expansion Therapeutics, Gift of Life, Beacon Pharmaceutical, Secret Sequence, 20Lighter and Beacon of Hope CRO are all companies that are now part of Palm Beach County’s life sciences ecosystem with assistance from the BDB’s economic development efforts.

Providing Support It takes more than great research to build a successful life sciences company. Fortunately, Palm Beach County has a strong support network in place to facilitate each step in the commercialization process.

“Our public and private sectors have invested time, money and energy to grow this sector,” said Ben Boynton, chair, Business Development Board, at the BDB’s Life Science Luncheon on April 18 at the Kravis Center. More than 400 civic and business leaders attended

the luncheon, which highlighted the success of Palm Beach County’s life sciences cluster.

At the event, Mino outlined recent developments in the sector, including the Beacon Center for Life Science and Research, a life science accelerator in Jupiter. The facility, which could be as large as 200,000 square feet, could create 137 new jobs and provide space for up to 50 R&D companies. “Beacon will provide support services to early-stage companies and address some of our needs in this sector,” he said.

Mino then introduced three keynote speakers who discussed the financial and distribution needs of the sector.

Alan Wink, director, Capital Markets, EisnerAmper LLP, focused on venture capital, noting that 2018 was a record-setting year nationally. However, only about 7 percent of deals and 4 percent of VC dollars invested in the Southeast U.S. were for life sciences companies, including biotech, pharmaceutical, medical and service businesses.

Wink also offered advice for early-stage companies considering VC funding. “Raise the amount of capital you need, not the amount you want,” he said. “You should also understand your monthly cash burn— and plan your funding timeline accordingly.”

R. Douglas Armstrong, chief business officer, Dawson James Securities, said a small initial public offering (IPO) on a national exchange (NYSE or NASDAQ) can be an effective funding strategy for emerging growth companies. “If you are looking for $5 to $10 million, this can get you to the next milestone,” he said. “You could also use it to leverage your private capital.”

Armstrong also congratulated the BDB for leading the way to growing this sector in the county. “We are reaching critical mass now,” he added. “It’s not just technology, but professional assistance like patent attorneys, recruiters and investors.”

In his talk, Adam Runsdorf, founder and president, Woodfield Distribution, LLC (WDSrx), outlined how the Boca Raton company has grown in the past decade by providing integrated pharmaceutical warehousing and distribution services.

“We receive products from companies in Palm Beach County, other parts of the U.S. and around the world, store them in our warehouses and ship them out,” he said. “From two employees in 2010, we have grown to seven facilities in four states with 200-plus employees,” Runsdorf said. “Our Boca office has 75 people, and about half are age 26 or younger.”

WDSrx partners with early-stage companies to handle supply chain logistics. “Our slogan is confidence beyond compliance,” he added.

“We create value, reduce costs and increase efficiency, supporting this growing sector. PBCB

summer 2019 pbc business |

9

Max Planck Scripps

&

Ranked

as Top Two Biomedical Scientific Institutes Germany's Max Planck Society,

the research powerhouse that includes the Max Planck Florida Institute for Neuroscience, has been ranked as the top biomedical nonprofit organization in the world by Nature Index. Scripps Research was ranked second in the world and first in the United States among stand-alone scientific institutes for biomedical research, based on discoveries.

The rankings cover prominent research institutions and scientists across the world whose publications profoundly impact biomedical research. In addition to taking the top spot among nonprofit/NGO institutions, the Max Planck Society ranked fifth overall when compared to all research organizations, including major universities and government health agencies.

“The Max Planck Society's unique ‘science-first’ core values create an environment for unparalleled research excellence. We are proud to be a part of the leading nonprofit research organization in the world, and to represent the Max Planck Society in the United States,” said David Fitzpatrick, CEO and scientific director of the Max Planck Florida Institute.

Both Max Planck Florida Institute and Scripps Research Institute Florida are located on Florida Atlantic University's Jupiter campus.

“This new biomedical research ranking by Nature Index, on top of the other recent rankings, reflects the life-changing science that is taking place at Scripps Research, and the curiosity and tenacity of our scientists," said James Williamson, Scripps Research's executive vice president of research and academic affairs. “One of our outstanding features is how we erase the barriers between disciplines such as chemistry, biology, drug discovery and genomics, and that is evident in the breadth and depth of the research taking place here and with our collaborators around the world.”

The Nature Index is compiled by Nature Research, part of Springer Nature. The Nature Index 2019 Biomedical Sciences supplement is the latest in a series of focused rankings in areas such as collaboration, innovation and biomedical research. The new biomedical research rankings are based on papers in 27 fields of biomedical research published in 55 journals from 2012 to 2018. The tables rank institutes based on fractional count, which considers the share of authorship on each article. PBCB

10 | pbc business summer

Innovation in

The Business Development Board of Palm Beach County (BDB) assisted the expansion of Algafeed, an algal production company located in Jupiter.

Algafeed grows high-density, nutritional, natural microalgae to be used as live feed for shrimp, shellfish and fin fish farms. With a capital investment of $6 million, the company plans on adding 40 new jobs to its existing workforce of 13 to meet the increased demand in production, laboratory and administrative needs.

Algafeed uses life sciences tools to generate a high-density, indoor-grown, living algae supply for aquaculture. It has exclusive licensed access to a patented technology that promotes the growth of microalgae, allowing it to deliver custom orders of any type, amount and in any location. Unlike current feeds, which either need large plots of oceanfront land or are sold freeze-dried, the Algafeed algae can be grown anywhere and delivered alive. As a result, shrimp and clam aquaculture yields are many times higher per acre.

“The role of live microalgae in global aquaculture is tantamount.

Algafeed’s breakthrough technology to produce 100-percent live, high-density, high-volume microalgae is breaking industry barriers that have existed for decades. The Algafeed team long appreciates the Business Development Board’s continual support and recent recognition in the fast-growing life science industry in PBC,” said Scott D. Hollingsworth, CEO of Algafeed. “Our Jupiter, Florida founding headquarters has consistently provided the ideal climate; bountiful, professional human resources; and business environment stimulus for our evolving technology. Our tightly focused commercial plans are making exciting ripples in both national and global markets alike.”

Algafeed installs and leases its algal production technology to the world’s leading aquaculture hatcheries and also supplies microalgae to Floridian and U.S. Eastern Seaboard aquaculture needs including shrimp, oyster, clam and fin fish hatcheries.

The Business Development Board provided technical support in connection with the Small Business Development Center, which also included support for exporting needs. “Algafeed has overcome previously insurmountable technical barriers by developing a method to produce high-density microalgae on a commercial scale indoors.

We’re glad that this technology is happening right here in Palm Beach County,” said Kelly Smallridge, president and CEO, Business Development Board. PBCB

summer 2019 pbc business |

11

Twenty New Projects Bringing Hundreds of Jobs to Palm Beach County

This summer, the Business Development Board has announced 28 relocation and expansion projects that are bringing 1,800 jobs to Palm Beach County. Here are 20:

1 Algafeed: 53 jobs, Life Sciences, Jupiter

6

Grows high-density, nutritional, natural microalgae to be used as live feed for shrimp, shellfish and fin fish farms.

CSL Plasma: 55 jobs, Life Sciences/Corporate HQ, Boca Raton One of the world's largest collectors of human plasma has made two expansions this year.

2 Buyers Edge Platform: 50 jobs, Infotech, Lake Worth Beach

7 Cytonics: 2 jobs, Life Sciences, Jupiter

The leading nationwide restaurant and food service procurement platform.

A biotechnology R&D company with game-changing therapies in the osteoarthritis sector.

3 Capzer Pharmaceuticals: 10 jobs, Life Sciences,

8 Detraxi: 3 jobs, Life Sciences, Jupiter

Lake Worth Beach A world-class cGMP testing and development laboratory.

Developing products that enable the preservation of cells and tissue for research and diagnostics as well as fluid replacement for the veterinarian market.

4 Caraustar: 25 jobs, Manufacturing, Riviera Beach One of the nation's largest integrated manufacturers of 100-percent recycled paperboard and converted paperboard products.

5 Convergence Investment Partners: 10 jobs, Business/Financial Services, Palm Beach Gardens A boutique investment manager dedicated to managing outstanding long-short equity strategies. The company relocated here from Wisconsin.

12 | pbc business summer 2019

9 Digital Resource: 107 jobs, InfoTech, West Palm Beach A full-service digital marketing agency, ranked the 262nd fastestgrowing private company in America of 2018, by Inc. magazine.

10 Expansion Therapeutics: 16 jobs, Life Sciences, Jupiter A drug discovery and development company pursuing the vast potential of small molecule medicines for RNA-mediated diseases.

11

Gift of Life: 60 jobs, Life Sciences, Boca Raton Saving lives for those suffering from certain blood cancers by matching marrow and stem cell donors with those in need.

12

Gulfstream Product Support Corporation: 25 jobs, A/A/E, West Palm Beach (unincorporated) Produces advanced business aircraft, while offering global product support and service.

Detraxi

Buyers Edge Platform

13 PGA of America: 100 jobs, Corporate HQ, Palm Beach Gardens One of the world’s largest sports organizations, with nearly 29,000 PGA professionals who grow interest and participation in the game of golf.

14

TechGarage: 8 jobs, Infotech, Belle Glade A year-round competitive robotics program at FAU Tech Runway in the Research Park at Florida Atlantic University that recently expanded to hire Palm Beach State College students in Belle Glade.

15 Beacon Pharmaceutical: 137 jobs,

PGA of America

Gulfstream Product Support Corporation

Life Sciences, Jupiter A planned state-of-the-art life sciences accelerator and biologics synthesis facility to support up to 50 companies in which the firm plans investments.

16

Secret Sequence: 3 jobs, Life Sciences, Jupiter A DNA sequencing company allowing clients to obtain their DNA data anonymously. It’s a startup with plans to open an office in Jupiter to participate in FAU Tech Runway’s new Jupiter programming.

17

20Lighter: 3 jobs, Life Sciences, Boca Raton A telehealth company specializing in cutting-edge health-related and quality-of-life outcomes. They are relocating their corporate headquarters from Wyoming to Boca Raton to participate in FAU Tech Runway.

Convergence Investment Partners

Cytonics

18 Beacon of Hope CRO: 10 jobs, Life Sciences, Boca Raton They signed a lease at the Research Park at FAU’s Technology Business Incubator and will facilitate drug development in expanded access programs through the Right-to-Try (RTT) law.

19 Levatas: 127 jobs, Corporate HQ, West Palm Beach Levatas will open its new headquarters in Rosemary Square in early 2020 with the goal to provide the most desirable work environment in the state.

Gift of Life

Algafeed

Digital Resource

TechGarage

20

ORBCOMM: 32 jobs, Infotech, Boca Raton A global leader and innovator in the industrial IoT with plans to transform its current office into its regional headquarters.

summer 2019 pbc business |

13

Marine Industries Snapshot n n n n n

Over 2,100 marine industries jobs $1.35 billion estimated economic impact Home to the Palm Beach International Boat Show, one of the top 10 boat shows in the country 47 miles of Atlantic Ocean coastline Over $78 million of appraised value of marinas and boatyards in Palm Beach County

Life Sciences Industry Snapshot n

n

n

Over 711 companies primarily engaged in R&D or manufacture of biotechnologies, medical devices, pharmaceuticals, and in the environmental and biological sciences Over $255 million in capital expenditures in the life sciences and health care industries due to BDB relocations and expansions since 2012 3,462 direct jobs supported since 2012 in the life sciences and health care industries due to those relocations and expansions

2019 Palm Beach County Rankings n n n n n

Palm Beach County is only one of 2 counties ranked in the U.S. for the way we attract talent by Emsi.

Top 10 counties for STEM Job Growth by Business Facilities.

Top 100 leading locations in America by Area Development.

Top 50 metro areas for business and careers by Forbes.

Top 10 counties for millennials in Florida by Niche.

14 | pbc business summer 2019

Photo: Robert Sadler Clark

Sympatico_Summer 19.qxp_Layout 1 8/8/19 8:35 AM Page 1

Elevating Commercial Real Estate

561.681.0221 222 Lakeview Ave, PH 5 | West Palm Beach, FL 33401 1926 10th Ave N Suite 304 Lake Worth FL 33461

BROKER PROFILE: KEVIN S.PROBEL With high demand

and limited new construction, Palm Beach County’s office market is in a strong position at midyear, according to Kevin S. Probel, first vice president, CBRE Transaction & Advisory Services in West Palm Beach.

“Our market remains very active, and vacancies are decreasing,” said Probel, a 25-year commercial real estate veteran. “We are seeing local businesses and professional firms expanding, along with a steady flow of new-to-market companies as well.”

Probel recently assisted several financial and professional services firms moving to Palm Beach County, including CIBC Wealth Management, BBVA Compass Bank, Glenmede Trust Company, Northrop Grumman, Norwest Equity Partners, Amneal Pharmaceuticals and Michael Baker Engineering. “Firms like these often look for 3,000 to 7,000 square feet of space to establish an office,” he added. PBCB

16 | pbc business summer 2019

Photo: Robert Sadler Clark

POSITIVE OUTLOOK for Palm Beach County’s Office and Industrial Markets

Strong job growth is driving demand for Palm Beach County’s office and industrial space, according to recent CBRE market reports.

“Business development activity and employment growth are anticipated to continue bolstering the Palm Beach office market,” said a CBRE analyst. “As a result, positive net absorption and falling vacancy rates will follow, as Palm Beach continues to be an attractive office market option.”

Demand for office space remains strong throughout the county with 72,574 square feet of net absorption in the first quarter. The overall vacancy rate was 12.5 percent as of March 31, and the overall asking rate was $22.48 per square foot.

Currently, there are six projects under construction. The Gardens Corporate Center in North Palm Beach will add 223,834 square feet of Class A space with two new towers. Phase 1 of Atlantic Crossing, a mixed-use project composed of six buildings, will have 83,000 square feet of Class A office space, with 41,500 square feet going vertical initially, and 4th & 5th Delray, a mixed-use project, delivered 46,233 square feet in the first quarter.

In West Palm Beach, One West Palm at 550 N. Quadrille Blvd. recently started pile foundation work. One West Palm is slated for 328

luxury apartments, about 200,000 square feet of Class A office space, a 201-room all-suites hotel, and 20,000 square feet of ground-level retail. Nearby, 360 Rosemary is a 297,000-square-foot Class A development now under construction.

Tricera Capital acquired the Palm Beach Post campus in West Palm Beach and plans to transform the campus into “The Press.” A 140,024square-foot office building will be renovated, and the 125,000-square-foot warehouse on the property will be converted into a lifestyle shopping and entertainment building.

Palm Beach’s industrial market is also performing well. “Last mile logistics as well as ecommerce are having a significant positive impact on Palm Beach County’s trade and logistics markets and are expected to support demand over the next economic cycle,” said the report.

As of March 31, total vacancy for the Palm Beach industrial market was 2.4 percent, and the average asking rate was $9.95 per square foot. Leasing demand is primarily from tenants requiring less than 15,000 square feet.

The county’s industrial market currently has four buildings under construction and an industrial park composed of nine single user buildings.

The total inventory under construction is 189,131 square feet. PBCB

summer 2019 pbc business |

17

Outreach Missions

Connecting our county to the world

11 6 9

10 7

8 2 1 3 4 5

1. National Business Aviation Association (NBAA) - Business Aviation Convention & Exhibition - Oct 18, Orlando, Florida 2. Aerospace Alliance Summit, November 1-2, Point Clear, Alabama 3. Enterprise Florida TeamFL Marketing, November 8, Orlando, Florida 4. Florida Power & Light Powering Florida Illumination, November 29-30, Jupiter, Florida 5. National Business Aviation Association Regional Forum, February 6, West Palm Beach, Florida 6. Enterprise Florida TeamFL Marketing, February 7, Washington, D.C. 7. Team Florida IAMC Spring Forum Dinner, May 6, 2019, Santa Barbara, California

8. Area Development Site Consultant’s Forum, June 3-5, 2019 Charlotte, North Carolina 9. Enterprise Florida TeamFL Marketing in-mark event, July 17, 2019 New York, New York 10. Logistics Development Forum, August 5-9, 2019; Vail, Colorado 11. Team Florida IAMC Fall Forum Dinner, September 14-18, 2019, Milwaukee, Wisconsin

Membership Referral Program The Membership Referral Program is our ongoing initiative that makes it as easy as possible for you to refer a membership prospect to our organization. With this referral program, we have streamlined the process of obtaining new members by relying on YOUR opinion and expertise in knowing who is a great candidate for new membership.

By contributing to the Membership Referral Program, you receive added exposure to more than 350 firms and more than 1,200 active peers at BDB events and in the BDB e-newsletter. You'll also receive a gift card to one of the finest shopping destinations Palm Beach County has to offer. We truly appreciate our long-standing supporters, as it is YOUR ongoing commitment that maintains the BDB’s progressive approach as Palm Beach County’s Economic Development Resource.

18 | pbc business summer 2019

SUMMER INTERNS FROM ACROSS THE NATION

LEARN ABOUT PALM BEACH COUNTY

Summer Interns from BDB member companies such as: n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n n

Bank of America BDO Belcan Boynton Financial Group Campus Management Chamber of Commerce of the Palm Beaches CBRE Colliers International Daszkal Bolton Discover The Palm Beaches Florida Power & Light Fox Rothschild LLP GarciaStromberg Greenberg Traurig HBK CPAs and Consultants Holland & Knight Ideabar JP Morgan Chase Kimley-Horn and Associates Leadership Palm Beach County Leo A Daly Architects Lockheed Martin Marcumm LLP Moss & Associates NAI/Merin Hunter Codman NCCI Oxbow Carbon Palm Beach County SBA Communications Sharp Communications Verdex Construction Wells Fargo

THE BDB BROUGHT TOGETHER summer interns from across the nation to show them why Palm Beach County is an ideal place to start a career and enter the workforce. Nearly 50 interns from different BDB member companies participated in the first-of-its-kind series.

The first event, hosted at the BDB, provided a fresh perspective of the area’s business climate. The second event, hosted at Banko Cantina, included a panel of four young, successful leaders in the workforce. The panelists shared their stories about what brought them to Palm Beach County, what's kept them here, and why they like living and working in the area.

“In order to work hard, you have to play hard. Palm Beach County has the best environment for that,” said Douglas Whipps of Daszkal Bolton. “Treat every day like it's an interview,” said Diana Ngyuyen of Florida Power & Light. Javier and Paula Cue of Pratt & Whitney talked about the positive work-life balance in Palm Beach County as a married couple living here and working in the aviation/aerospace/engineering industry.

The BDB's education initiatives came full circle when a participant said she attended the Claim Your Future Showcase a couple years ago, an event showing high school students the possible career paths available in the county. She is now an intern for Bank of America.

“This new series is a great way to provide soon-to-be professionals with a broad group of peers,” said Kelly Smallridge, President and CEO of the Business Development Board.

In fact, the group was so broad that interns spanned from local Palm Beach County academic institutes to out-of-state schools like Duke, Harvard and Yale University. They were all within the same age group interning for the summer in different industries throughout Palm Beach County.

“Palm Beach County is an exciting place to be. The BDB is a big part of the economic engine and business environment here,” said William Shepherd, Partner at Holland & Knight LLP. Shepherd is a member of the BDB Financial Services Task Force and actually shared this idea for the new series at a prior meeting.

Together, BDB members are ensuring that the future of Palm Beach County’s workforce will choose to stay here over competing locations and retain top talent as they start their careers. PBCB

summer 2019 pbc business |

19

COUNTYCORNER Palm Beach County Business Loan Program: Providing Big Help To Small Business

By Sherry Howard, Deputy Director Palm Beach County Department of Housing and Economic Sustainability

S

mall business is big business in Palm Beach County. According to the U.S. Small Business Administration (SBA), small businesses are independently owned and operated and typically have less than 1,500 employees and $7.5 million or less in annual receipts. In Palm Beach County, over 80 percent of all businesses have less than 10 employees, and 90 percent have less than 20 employees. The Palm Beach County Business Loan Program is designed with these small businesses in mind. Administered by the Palm Beach County Department of Housing and Economic Sustainability (HES), the program provides long-term loans with low interest rates to small businesses looking to grow in Palm Beach County. Often, these businesses have difficulty Sherry Howard accessing conventional financing, so HES partners with community-based banks and SBA Certified Development Companies (CDCs) to leverage funding and diversify risk. Involving these partners in project financing also lowers the amount of equity investment required by borrowers.

To date, the County’s Business Loan Program has contributed financing to Palm Beach County-based small business projects totaling more than $98 million. In total, 46 small business owners have borrowed more than $26.79 million through the County’s Business Loan Program to support business needs, including acquisition of machinery and equipment, working capital and construction costs. Funding for these loans comes from federal agencies including the U.S. Department of Housing and Urban Development, the United States Department of Agriculture, the

Environmental Protection Agency and the Department of Energy. Job creation is a Program requirement. In general, a borrower must create one new job for every $35,000 borrowed, and at least 51 percent of new jobs must be filled with individuals who have low to moderate income levels at the time of hire. Loan Program borrowers have created 1,943 new jobs to date.

As the Business Loan Program is not designed to serve as the primary source of funding, leverage is critical. Program loans are leveraged by more than $71.3 million in other funding, including: $39.2 million from commercial lenders, $8.3 million from CDCs and $20.6 million in borrowers’ equity. In fact, every $1 loaned through the County’s Loan Program is leveraged by $3.66 from other funding sources.

The Palm Beach County Business Loan Program addresses the complex financing needs of Palm Beach County’s small businesses. With Business Loan Program support, these businesses: create new jobs as they expand in Palm Beach County; access additional funding from traditional lenders; diversify and strengthen the local economy and tax base; and generally contribute to an increased quality of life in Palm Beach County.

To learn more about the Department of Housing and Economic Sustainability or the Palm Beach County Business Loan Program, please contact me by phone at 561.233.3653, by email at showard@pbcgov.org, or through our website, at discover.pbcgov.org/hes. PBCB

Program loans are leveraged by more than $71.3 in other funding, including: $39.2

million

million from commercial lenders,

$8.3 million from CDCs and $20.6 million in borrowers’ equity.

20 | pbc business summer 2019

Easy. Convenient.

Less Stress.

9th Best Domestic Airport

Travel + Leisure Magazine, 2018 World’s Best Awards

5th Best Medium Airport

2017 J.D. Power North America Airport Satisfaction Survey

#1 in U.S. Airports for Overall TSA Wait Times U.S. Customs and Border Protection

#yPBI

Less Stress. Fly PBI. pbia.org

Frankel Loughran Starr & Vallone_PBCB Summer 19.qxp_Layout 1 8/8/19 8:10 AM Page 1

Tax Advisors & Accountants

Global Sophistication, Personal Service

FLSV® is a premier and forward thinking tax advisory and accounting firm of over ninety professionals with a strong connection to the financial services industry and its leaders.

Professional diversity from CPAs with tax and accounting backgrounds, JDs with advisory and consulting backgrounds, and MBAs with a business management background.

FLSV believes in investing in its people and is proud of the natural growth of the firm over the last twenty-four years. Many of our senior professionals began their careers with FLSV. The FLSV team gains the technical, personal, and global institutional knowledge necessary for offering the highest quality of client service across all levels. ®

At FLSV® we understand the importance of building a longstanding and valued relationship with our clients and remain committed to upholding the values on which our firm was founded.

n

High Net Worth services

n

Income tax planning, tax compliance & advisory services

n

Estate, gift and trust planning

n

Unique lifestyle Investments

n

Residency planning

n

Family office services

n

Business Group services

n

Private equity investment partnerships and Hedge funds

n

Real Estate

n

Entrepreneurial businesses

West Palm Beach: 777 S Flagler Drive, Suite 225 East, West Palm Beach, FL 33401 Office: 561-567-7900 New York: 1475 Franklin Avenue, Garden City, NY 11530 Office: 516-874-8800