Feb. 24, 2014 - Charleston Regional Business Journal

February 24 - March 9, 2014 • www.charlestonbusiness.com

Volume 20, No. 5 • $2.00

Charleston School of Law sale in limbo

By Ashley Barker

Concealed carry Questions surround law allowing concealed firearms in restaurants and bars. Page 7

T

abarker@scbiznews.com

he InfiLaw System is committed to buying the Charleston School of Law even if it faces questions from the community and a review by the South Carolina Commission on Higher Education.

InfiLaw – a consortium of independent law schools including the Charlotte School of

Law, Florida Coastal School of Law and Arizona Summit Law School – agreed last July to provide management services for the school.

By the end of August, InfiLaw had signed an agreement expressing its intent to purchase the Charleston School of Law. The move was met with backlash from the school’s students and alumni about the reputation of the system, which has commonly been called a “diploma mill.” But InfiLaw spokes-

One bigger college?

O

Demand growing for commercial greencleaning products.

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INSIDE Upfront............................. 2 In Focus: Energy and the Environment.... 19 List: Heating and Air Contractors............. 24 At Work.......................... 27 People in the News......... 27 Business Digest.............. 27 Hot Properties................. 30 Viewpoint........................ 31

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ne month into the job, Blackbaud President and CEO Michael Gianoni sits down with the Business Journal to discuss his 30 years of experience in the software technology sector, his decision to relocate from New Jersey to Charleston and his plans to grow the Daniel Island-based technology firm.

Clean but green

Shore power debate continues as cruiseline plans to scrub emissions.

Page 22

See LAW SCHOOL, Page 4

Blackbaud’s new CEO talks strategy

Lawmakers file bill to merge College of Charleston, MUSC. Page 11

Plugging in

woman Kathy Heldman said that charge gets leveled at almost all for-profit education institutions.

“It is unfortunate, and untrue for InfiLaw schools,” Heldman said in a statement.

“InfiLaw schools would not succeed or retain accreditation if they did not graduate students who could pass the bar and get jobs.”

See Q & A, Page 12

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Photo/Ashley Barker

Adapting the

Curriculum Laing Middle School sixth graders are ditching traditional classrooms to embrace an interdisciplinary, yearlong greenhouse project designed to make a more well-rounded workforce.

Full Story. Page 8

Photo/ Gibson Pitts

A little boy’s prosthetic hand, a component of a Boeing plane and a new iPhone case all came from a 3D printer.

Page 14

Upfront:

Briefs, brights and business news

On the Record “Clearly, not too many people go into bars not to drink. When you bring firearms and alcohol together, there are consequences.”

— Charleston Police Chief Greg Mullen, who supports a recent change in state law allowing concealed weapons to be carried in restaurants and bars, though he has concerns about enforcement of the law.

See story Page 7

If your flight’s delayed, it might be because of these people It’s amazing that so many years after 9/11, the formation of the Transportation Security Administration and the corps of air marshals that fly on many flights around the U.S., people still try to bring prohibited items, such as firearms, on planes. We dug through the TSA’s stats for 2013 to pull down some numbers, including what was stopped at Charles- Photo/TSA.gov ton International Airport. This does not Charleston include stun guns, knives, inert exploInternational Airport sives or things that just look like weapons, which are typically also banned.

Five firearms were found by TSA agents at Charleston International Airport in 2013, and Airports where most more than half of those were loaded.

firearms were found

Loaded/ Date Kind of firearm in chamber

Airport

Firearms found

1. Atlanta

111

May 12

.45 caliber

Yes/Yes

2. Dallas Fort-Worth

96

June 21

.22 caliber

Yes/No

3. Houston

68

Sept. 9

.38 caliber

Yes/Yes

4. Phoenix

66

Dec. 6

.32 caliber

No/No

5. Denver

51

Dec. 22

9 mm

No/No

TSA by the numbers 2013* 2 million

Number of passengers TSA agents interact with each day.

638.7 million

Number of screenings in 2013.

1,813

Number of firearms found on carry-on bags.

81%

Percentage of those that were loaded.

205

Number of nation’s airports where firearms were found in carry-on bags.

1

Number of TSA agents killed in the line of duty, the first ever.

Source: Transportation Security Administration *Note: It’s not illegal to travel with firearms in checked baggage, but the firearms must first be declared to the airline.

Charleston rental rates on the rise With the ripples of the Great Recession still receding across the U.S., residential rental rates have been rising simply because people that have been ousted from their single-family homes still need a place for their single family to live. Here’s a look at yearover-year rental rates in South Carolina and other regional markets for January. The Charleston metro area had the highest percentage increase for asking and rental prices for any metro in South Carolina, but Greenville had a higher rental price increase than asking price, which indicates a tight market for those seeking rental housing.

Regional rental rates ranked by change in asking price Metro area Asking Price Rental Price Atlanta +14.7% +6.8% Charleston +9.6% +6.2% Charlotte +8.3% +1.8% Columbia +7.8% -0.2% Jacksonville, Fla. +7.7% +4.4% Raleigh +6.5% +2.4% Greenville +4.0% +4.8% Source: Trulia Price Monitor and Trulia Rent Monitor filed January 2014, www.trulia.com

Port-related businesses expand Twelve companies that rely on the Port of Charleston announced plans to set up operations or expand in South Carolina last year.

“With an 8.3% growth in fiscal year 2013 and planned 5.9% growth for fiscal year 2014, new business for our ports also means new jobs and capital investments statewide,” according to the ports authority.

BMW SKD project

200 new jobs The automotive manufacturer is relocating an export operation from Duncan to Greer in a new building adjacent to the South Carolina Inland Port.

Parts headed for export will be railed from the inland port to the Port of Charleston.

JN Fibers

318 new jobs $45 million investment The recycler of plastic bottles into usable textiles will set up a production facility in Richburg.

It imports PET plastic flakes through the port from Asia, Latin America, Central America and Africa.

Keer Group

501 jobs within five years $218 million investment The Chinese textile company will manufacture textile yarn in Lancaster County and export the finished product to China through the port.

Harbor Freight Tools

200 new jobs $75 million investment The company that imports through Charleston plans an expansion of its existing distri-

bution center in Dillon County to accommodate its growing retail presence.

Daimler

60 new jobs $4.6 million investment The van manufacturer plans to expand its Charleston County facility. It exports vehicles through the port.

Element Electronics

500 new jobs $7.5 million investment The television assembly facility in Fairfield County will import parts from China.

Divatex Home Fashions Inc.

The Spartanburg company will use the inland port.

Soft-Tex

The pillow and mattress manufacturer will establish a distribution center in Charleston and will import through the port.

Tides Enterprises

The Tides group will service several import and export accounts related to specialty foods, juice concentrates and pulps sectors from its new

location on upper Meeting Street.

American Tactical Imports

117 new jobs $2.7 million investment The firearms, ammunition and tactical equipment distributor invested in a warehouse and distribution facility in Dorchester County. It will import from Germany, Turkey, Ukraine, the Philippines and China.

Bericap

50 new jobs over five years $29 million investment The plastic closures manufacturer expanded its facility in Cherokee County. It uses the port to export to Puerto Rico, Colombia, Venezuela, Ecuador, Brazil, Chile, El Salvador and Peru.

Colgate-Palmolive

300 new jobs $196 million investment The liquid hand soap producer plans to build a new production facility in Greenwood County.

It uses the port to export its products globally.

Source: S.C. Ports Authority

Feb. 24 - Mar. 9, 2014

www.charlestonbusiness.com 3

Twitter, Facebook, Samsung reps among speakers lining up for Dig South The second annual Dig South, the Southeastern festival on the digital economy, will host 175 speakers over five days this April in Charleston.

The speakers will discuss software and app development, marketing and social media, investment capital and digital publishing, among other topics.

The festival is designed for entrepreneurs, early-stage startups, “C-level” executives and investors in digital technology, marketing, publishing, media and other businesses using a digital platform.

Session topics will include big data, the media, social media, multichannel marketing, cloud computing, mobile platforms, revenue models, entrepreneurship, investment capital, cyber security, digital health, digital publishing, tech culture, branding, gaming and ecosystems.

“Launched last year, Dig South is dedicated to growing and elevating all things digital in the Southeast, connecting entrepreneurs, executives, founders, funders, coders, gamers, designers, dreamers and innovators across the spectrum,” according to a news release.

The interactive, music and digital festival will be April 9-13. Roughly 750 participants are expected at the conference, and 5,000 attendees are expected at the expo, concerts and networking events.

“This slate of top-shelf presenters represents the industries of the future,” Dig South founder Stanfield Gray said in a statement. “With a superb first year under our belt, we’re excited to invite the public to interact, connect with and get inspired by more than 175 leading innovators in technology and other creative industries.”

Top presenters include: • Richard Bullwinkle, head of television innovation at Samsung Electronics in San Francisco.

• Will Marre, CEO of ReaLeadership Alliance in San Diego.

• Scott Lamb, international vice president of Buzzfeed in New York.

• Jesse Redniss, chief strategy officer at Mass Relevance in Austin, Texas.

• Brent Herd, Southeast sales director of Twitter in Atlanta.

• Ben Ortman, social business connector and innovator of global accounts at LinkedIn in New York.

• Marci Zaroff, chief marketing officer of Portico Brands in New York.

• Tige Savage, managing partner at Revolution Ventures in Washington, D.C. • Clay Delk, content strategist at Facebook in Palo Alto, Calif.

• Dan Juengst, product marketing of the cloud business unit for Red Hat in Washington, D.C. • Sid Evans, group editor at Time Inc. in Birmingham, Ala. • Lisa Maki, co-Founder and CEO of PokitDok at Menlo Park, Calif.

• Jim Russell, partner and chief innovation officer at McKinney in Durham, N.C. • Jason Denenberg, entrepreneurship director at LaunchTN in Nashville, Tenn.

• Tim Kelly, founder of Zubie in Charleston.

• Jessica Derrick, vice president and brand development director at Garden & Gun magazine in Charleston.

• Jonathan Jeter, innovation consultant at What If in New York.

• Manoj Govindan, senior vice president of strategic partnership at Merrill Lynch in Charlotte.

100-room hotel to open on Kiawah Island A new boutique hotel is set to open next month on Kiawah Island, according to a news release.

Andell Inn, built on land once owned by the Andell family and located in Freshfields Village, will open in March as the first Local Hotel Adventures LLC property, according to the management company. The hotel will be 72,000 square feet and include more than 1,000 square feet of meeting space.

A study conducted by Bleakly Advisory Rendering/Andell Inn Group estimates construction of Andell Inn represents a $22.8 million economic benefit to Charleston, according to the company. The hotel, which will provide 39 regional jobs, expects annual spending for the county to increase $6.8 million.

The three-story, 100-room inn will feature studio, one-bedroom and two-bedroom units with fully equipped kitchens, living rooms and workspaces. It will also include a saltwater pool, wraparound porches, a business center and fitness club, the company said. Room rates will be about $200 to $750 per night and will vary depending on the season, according to a spokeswoman for the inn.

The inn, located at 300 Farm Lake View Road, is a part of the Marriott International network and will accept Marriott Rewards points.

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In response to community members asking whether the system would increase enrollment, Heldman said it wouldn’t be practical to recruit more students than the employer market could support.

InfiLaw provides its schools access to capital for acquiring or building new facilities and supporting academic programs. Its schools remain independently operated and governed by their own boards, administrations and faculties, according to Heldman. She added that InfiLaw would work with Charleston’s leaders to preserve the school’s culture.

“We believe that we can provide Charleston and its students with the financial resources and expertise to enhance their legal education and to move the school forward into the future – a future that is changing quickly,” Heldman said.

The sale is in limbo as InfiLaw waits for a decision from the state’s Commission on Higher Education about its appli-

If InfiLaw purchases the Charleston School of Law, it will remain independently operated and governed by its own boards, administrations and faculties.

(Photo/Ashley Barker)

cation for a license to operate the school.

Since InfiLaw already operates three other American Bar Association-accredited law schools, its leaders believe it will receive the license and approval from the ABA to transfer ownership.

Julie Carullo, deputy director of the commission, said an external review team completed an investigation in Charleston during the week of Feb. 10. The team — which consists of Charles Arberg, of the Federal Judicial Center; Rhesa Rudolph,

of the Florida Commission for Independent Education; and Robert Wells, of the South Carolina Bar Association — will submit its findings to the commission, which is expected to reach a decision in May or June.

The commission also requested public comment about the school’s academics and curriculum, facilities and infrastructure, libraries, previous educational See LAW SCHOOL, Page 6

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Charleston School of Law timeline In 2002, a group of prominent Charleston judges and attorneys began working on a new for-profit law school.

By the fall of 2003, the S.C. Commission on Higher Education approved a provisional license for the Charleston School of Law, and it opened in August 2004 with 197 students. Some 186 of those students graduated in 2007.

Aug. 5, 2011 The Charleston School of Law received full accreditation from the American Bar Association.

January 2012 Cognizant of pending possible retirements, the school’s board of directors began considering options for a succession plan.

2011

2012

May 2013 Dean Andy Abrams was named president and dean of the Charleston School of Law.

July 25, 2013 Founders announced they had entered into a management services agreement with InfiLaw Management System, a subsidiary of the InfiLaw System.

Aug. 28, 2013 Founders and directors announced they signed an agreement expressing their intent to transfer ownership of the school to the InfiLaw System pending approval.

2013

Oct. 3, 2013 The S.C. Commission on Higher Education amended the school’s operating license to allow public institutions to discuss acquisitions of the law school.

Oct. 14, 2013 The InfiLaw System announced it was reaching out to the College of Charleston and the University of South Carolina.

Feb. 10, 2014 The school released a study that showed it has a $41.7 million annual impact on the Charleston area economy and supports 393.6 jobs.

2014

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Source: Charleston School of Law

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Feb. 24 - Mar. 9, 2014

The Charleston School of Law’s provisional license prohibited selling the school to a public state institution of higher education. (Photo/Ashley Barker) LAW SCHOOL, continued from Page 4

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achievements and training, course and program outlines, financial soundness, reputation and advertising policies, as well as the character of its owners.

The public comment period ended Feb. 10, and Carullo said those submissions will not be available until after the full recommendation is made.

In January, Richard Sutton, executive director of the commission, said the process was taking longer than expected because of the public attention that the application has received.

“We very much appreciate the civic engagements of all of these individuals and parties in sharing their thoughts and observations, which we will duly consider within the parameters of the commission’s licensing guidelines,” Sutton said during a commission meeting.

Scrutiny of Infilaw intensified when lawmakers began speculating about the College of Charleston purchasing the school.

In the Charleston School of Law’s provisional license from the Commission on Higher Education in 2003, a provision was included that strictly prohibited the school from discussing or considering a transfer of the school to a public state institution of higher education.

After the school announced in August 2013 that only InfiLaw had submitted an application to purchase it, the commission amended the license to allow public institutions the chance to discuss buying the school.

Despite its contract with the school, InfiLaw agreed to allow the Charleston School of Law to consider other options, including CofC and the University of South Carolina.

USC, which runs the state’s only public law school, did not want to meet with InfiLaw, according to Heldman.

However, senior representatives from CofC and InfiLaw did meet in October

2013.

“Proprietary information was shared and the parties may share further proprietary information with each other and meet again in the near future to continue their discussions, but at this time no further developments have occurred,” Heldman said.

CofC is open to discussions about meeting the educational needs of the community, according to Mike Robertson, a spokesman for the college.

“The College of Charleston remains interested in the future of the Charleston School of Law and continues to hear from community members who are concerned about the future of the CSOL,” Robertson said in a statement.

Charleston Mayor Joe Riley has said publicly he supports CofC purchasing the school. He even mentioned the school when he issued a recent statement about a bill proposing the merger of CofC and the Medical University of South Carolina.

“Having eventually Ph.D. programs in chemistry, physics, computer science, aeronautical engineering, perhaps a law school, and even more are the model for the future of a healthy, vibrant region,” Riley said in a statement.

He also wrote a letter to the commission in December urging it to not approve a license for the sale to InfiLaw. He wrote that the city sold a “key parcel of land to the Charleston School of Law to give it long-range expansion opportunities” at a below-market value. Riley, who is also a member of the school’s board of advisors, said the city would have never done that if it thought the school would eventually become part of a national, for-profit system of law schools.

“The Charleston region is not huge,” he wrote. “I believe the Charleston School of Law, with its size and its close connection with the community, is the right fit.” cr bj

Reach Ashley Barker at 843-849-3144 or @AshleyNBarker on Twitter.

Feb. 24 - Mar. 9, 2014

www.charlestonbusiness.com 7

Questions linger about law allowing guns in restaurants

By Ashley Barker

C

abarker@scbiznews.com

harleston’s chief of police supports a concealed carry reform bill that was recently signed into law by Gov. Nikki Haley. But the chief and other Lowcountry leaders have questions about enforcement.

Citizens that have obtained a concealed weapons permit are now allowed to carry their firearms into South Carolina establishments that serve alcohol. The law also allows business owners to ban individuals from carrying guns in their restaurants or bars.

As a permit holder herself, Haley said the law means permitted citizens no longer have to leave their guns in a glove box.

“The idea of going into a restaurant and having to leave it in your car causes concern on whether it will be stolen and causes concern on the fact that it’s not on you,” Haley said prior to signing the bill.

“As a CWP holder, you are responsible for your gun. You want to make sure your gun is on you so that you can say it is with you at all times.”

Chief Greg Mullen said he doesn’t have a problem with concealed-weapons permits and supports the Second Amendment.

“I’m just unsure how this is going to

be enforced,” Mullen said in a statement.

“Clearly, not too many people go into bars not to drink. When you bring firearms and alcohol together, there are consequences.”

He said Charleston police officers are explaining the law to business owners and letting them know they may post signs prohibiting guns. Mullen advises owners to never confront a person carrying a handgun and drinking alcohol. He said it’s best to call the police instead.

The penalties for violating the law include a fine of no more than $2,000 or a maximum of two years of jail time. The CWP also will be revoked for five years.

Kathy Britzius, executive director of the Greater Charleston Restaurant Association, said she has discussed the new law with members of the association’s board, and they still have many unanswered questions.

“The law reads a person can’t be drinking while carrying a gun. Who is supposed to be monitoring, and how do you monitor it? A lot of it just doesn’t make sense,” she said. “There’s a lot of concerns, and the board members have expressed just not getting involved in it.”

Haley thinks restaurants that allow concealed weapons will see less crime.

“We know if the general public knows that people can protect themselves, crime

Statewide CWP statistics • Active permits, as of Dec. 31, 2013: 229,456 • Permits issued in 2013: 83,012 • Permits denied in 2013: 1,272 • Permits renewed in 2013: 38,617 • Permits revoked in 2013: 364 Source: South Carolina Law Enforcement Division

goes down,” Haley said. “They can’t just go to a place and be reckless in the way they handle themselves because there are people who are going to defend themselves.”

The bill was sponsored by senators Sean Bennett, R-Summerville; Katrina Shealy, R-Lexington; Larry Grooms, R-Charleston; and Greg Hembree, R-North Myrtle Beach; among others.

However, Democrats came down on both sides of the issue.

“This is something that we strongly believe in in terms of how South Carolina views the second amendment,” Haley said. “This is not a Republican or Democrat issue; this is a South Carolina issue.”

Bennett emphasized that permit holders should know they are not allowed to drink any amount of alcohol while in possession of a weapon.

“Guns and alcohol do not mix, and that’s why it’s not a guns and alcohol bill,” Bennett said. “It’s a zero tolerance. It’s not even a blood alcohol content level.”

Rep. Mike Pitts, R-Laurens, who is also a police officer and was Haley’s personal instructor when she earned her concealed permit seven years ago, explained part of the bill that removes the eight-hour training requirement for a handgun course.

“You still have to pass all the requirements. You still have to take all the training, and you have to certify that you have all of that training,” he said. “But you can take a class that has experienced people in it and teach it in less than eight hours, and it may take you 12 hours to teach one with novices. It takes a while, and we took away that strict time limit.”

He supports the law because he believes citizens should have the right to defend themselves.

“Average response time across the nation in an urban area is eight to 10 minutes. Average response time in a rural area is 20 to 25 minutes,” Pitts said.

“The average shootout, according to the FBI reports, lasts less than three seconds. That’s why you are your first line of defense.” cr bj

Reach Ashley Barker at 843-849-3144 or @AshleyNBarker on Twitter.

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Feb. 24 - Mar. 9, 2014

STEM curriculum teaches manufacturing skills

By Ashley Barker

T

abarker@scbiznews.com

here’s a place where 11- and 12-year-olds spend their days drilling, hammering and carrying lumber around a construction site.

The production manager stands about 4 ½ feet tall, and he’s followed by a safety director who has pink laces in her sneakers, along with goggles and a hard hat.

Then there’s a marketing specialist, who sports polka-dot pants and documents on her iPad each time a crew member climbs a ladder. A teacher looks on but rarely answers the hard questions.

This is how Laing Middle School believes science, technology, engineering and math — commonly referred to as STEM — should be taught. The administration is embracing a new kind of curriculum that they hope will lead to a more well-rounded adult workforce.

At the beginning of the school year, the sixth-grade teachers introduced a project to their students. The ultimate goal was for each of the nine homeroom classes, totaling 252 students, to build a greenhouse, complete with solarpowered irrigation and ventilation systems controlled by small computers.

The year-long greenhouse project is interdisciplinary: In English, the students researched how greenhouses work, developed a design and presented the concept to a board of architectural review comprised of professors from Trident Technical College.

“The kids had to get dressed up, and they made PowerPoint slides and explained their reasons and how they’re going to do this. They’re very driven,” said Mel Goodwin, a STEM contractor hired by Laing to run the program.

“Rather than doing a book report, they’re doing a presentation on something that really matters to them.”

They’ve also put together books, complete with enhanced features such as popups and lights, to showcase their ideas.

“The English teachers say that as a

Sixth graders at Laing Middle School are working together to build nine greenhouses, complete with irrigation and ventilation systems. (Photos/Ashley Barker)

consequence of that, they (the students) focused a whole lot more on the elements of narrative writing — climax and character development — because they had to figure out which pages to light up and where that would be effective,” Goodwin said.

In science class, the students learned what it takes to grow carrots, cherry tomatoes, ghost peppers, cilantro, honeysuckle and pitcher plants in their greenhouses. Next they put together a budget and determined the lumber measurements for the structures in math class.

The art teachers embraced the STEM curriculum by asking the students to draw buildings and storefronts on posters. Then they had to figure out how

to light the windows of their drawings using strips of copper attached to batteries on the back.

“It’s much more effective than a traditional classroom where the teacher is front and center providing the knowledge and information, and they’re trying to memorize it,” said Principal James Whitehair. “STEM is not just regulated here. It’s infused throughout all subjects and all levels. It’s a continuous learning process.”

Skills to boost the manufacturing industry

Danny Rowland, one of the owners of CMMC LLC, which owns the old Naval

Base shipyard property in North Charleston, recently visited the school. Rowland, who has been in the ship repair and heavy-manufacturing industry his entire adult life, said he was “disgusted at the lack of technical education at schools.”

“I went there reluctantly, because I thought it would be a waste of time. But I’ll tell you, I was pleasantly surprised,” Rowland said. “They’re doing a very good job of introducing technical manufacturing capabilities at a very young age.

I was blown away.”

He said Lowcountry businesses are

Feb. 24 - Mar. 9, 2014

www.charlestonbusiness.com 9

Laing Middle School is infusing the STEM concept into all subjects and at all levels to create a continuous learning process that involves several subjects. (Photo/Ashley Barker)

Crew members that are inside or near one of the greenhouses must wear hard hats and glasses for safety. They also all wear closed-toe shoes. (Photo/Ashley Barker)

desperate to find employees with technical abilities.

“We get people that come in the door that know nothing about a two-by-four.

We have to start from scratch with them,” he said. “Those kids at Laing, if they keep this up, when they come to us looking for a job, they will already have a platform.

We can work with people like that who have a working knowledge, especially here in Charleston County.”

The school doesn’t receive additional funding for its STEM activities, according to the principal. Area companies, like 84 Lumber, donate materials. Rowland suggested creating business and parent advisory councils.

“They should go out and talk to these businesses and get them to do tours too.

They’ll see the enthusiasm,” Rowland said. “They’d get involved financially.

Businesses have gotten frustrated in years past in what schools are producing as far as the technical and manufacturing side.”

The Mount Pleasant school is teaching its sixth graders far more than just how to build greenhouses. The administration is interested in building skills that will be used in everyday life.

“The teamwork, the problem solving,

“We taught them that the way to succeed is to find the answer quickly, give the teacher what she wants and then you can do something fun,” Goodwin said. “They have recall skills, but they don’t like to fail. They get frustrated, dejected, and then they won’t engage.”

Half the battle is just getting the students to turn a mistake or a failure into a positive, he said.

“We tell them an initial failure is something to expect. You don’t get it right the first time, every time,” Goodwin said.

“Human resources directors tell me the majority of terminations are not because the employees can’t do the job. It’s because they don’t have those soft skills like the ability to problem solve.”

Last year, the school did a small-scale version of this project. But it didn’t produce the expected results, so the teachers went back to the drawing board.

“The greenhouses last year were much smaller and often blown over by the wind,” Whitehair said. “We learned where our problems were and where we could improve.”

growing in the greenhouses by the final quarter of the school year.

They haven’t decided yet if they’ll sell the crops, donate them or use them as a way to teach culinary skills. That will be up to the students.

“It’s all student-driven and largely up to their time frame,” said teacher Christian Patton. “Right now, they have to decide what kind of door they want and how they’re going to do the ventilation system. Once they make those decisions, we have to cover it. Then we’ll figure out what’s next.”

Goodwin said letting the students decide and teaching them about products of engineering and technology will make them more responsible citizens.

“We know a lot of students, especially girls, lose interest in science and engineering — if they even know what that is — somewhere between fourth and sixth grade,” Goodwin said. “When we expose them to what it really is and give them the experience of that, we think we’re going to get a lot more students that are potentially attracted to this career.”

Letting the students pick

Reach Ashley Barker at 843-849-3144 or @AshleyNBarker on Twitter.

being able to make decisions and resolve differences is what we’re after,” Goodwin said. “They’ll have arguments among themselves about what they should be doing. They have to work it out, not the teacher. That is huge for us.”

Initial failure expected

The STEM concept was foreign to many of the teachers, especially those who specialize in English and the arts, which is why Goodwin was hired two years ago.

“They don’t have to know all the answers. This style of teaching is much more about process than context,” Goodwin said. “The crux of this is, how do you find knowledge, how do you get information, how do you put it together to solve problems? Once they get used to that idea, they say it’s very freeing.”

Goodwin spent six months meeting with members of the faculty, developing ideas and figuring out their interests before the students saw any change.

He said many of the teachers said their students, particularly those designated as high-performing, become frustrated when they don’t immediately see an answer.

Laing teachers expect produce to be

cr bj

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www.charlestonbusiness.com

Feb. 24 - Mar. 9, 2014

Airport redevelopment on track after asbestos found

By Liz Segrist

T

lsegrist@scbiznews.com

he Charleston International Airport’s redevelopment project remains on schedule after asbestos was recently found in some exterior walls.

The airport staff recently reported that the glue used to install waterproofing materials on the airport’s outside walls 30 years ago has tested positive for asbestos.

Construction crews are working to identify any additional asbestos and determine the best way to treat it. So far, testing shows that the asbestos is not everywhere, and work continues on the Terminal Redevelopment and Improvement Program, said Matt McCoy of Michael Baker Corp. during an aviation authority committee meeting earlier this month.

The airport staff and project managers are working with the S.C. Department of Health and Environmental Control to develop a plan of action to remove the asbestos, which will determine whether the redevelopment schedule is affected.

When the $189 million terminal redevelopment project is complete, the airport will have a new security checkpoint,

five new gates, an updated baggage claim and terminal, a rental car pavilion and an updated look with more natural light, glass walls and higher ceilings.

The third baggage carousel recently opened. The 6,200-square-foot rental car pavilion is set to open in mid-March.

The building will be completed and ready for inspections as of March 7. Rental car companies will begin to outfit their spaces this month.

The airport staff and Charleston County Aviation Authority planned to upgrade the airport as passenger growth continues to rise. Nearly 2.9 million passengers arrived at or departed from the Charleston International Airport in 2013, up 10% from 2012.

Industry growth and tourism continue to bring more passengers to the region, in addition to new airlines and improvements at the airport, Airports Director and state Sen. Paul Campbell said in a statement.

“Charleston is no longer a sleepy little airport, but the gateway to one of the top tourist destinations in the world,” TSA Federal Security Director Debra Engel said in a statement. cr bj

Reach Liz Segrist at 843-849-3119 or @lizsegrist on Twitter.

Trident Health to open emergency center this year

By Ashley Barker

T

abarker@scbiznews.com

rident Health is planning to build a nearly $10 million emergency department in North Charleston, according to a news release from the hospital system.

The freestanding emergency department, named “Centre Point Emergency,” will be open 24/7 year-round at the corner of International Boulevard and Emmett Davis Jr. Avenue. The department will accept walk-in patients, as well as patients who arrive via ambulance service, and it will be staffed by board-certified emergency medicine physicians.

“We’re taking the nationally recognized quality care we provide at today’s Trident facilities and making it more convenient and accessible for the Charleston metropolitan area,” said Todd Gallati, president and CEO of Trident Health, in a statement.

CT scans, X-rays and lab work will be available to patients at the new 12,300-square-foot facility that will feature 12 private patient-care rooms.

Trident Health — a Hospital Corporation of America system that comprises Trident Medical Center, Summerville Medical Center and Moncks Corner Medical Center — said there will be 18 different specialists at the new facility.

They’ll range from neurology to cardiology, surgery and others that the physicians can call as backup as needed.

“It’s important for a large and diverse community like Charleston to provide various levels of emergency and urgent care,” Gallati said.

Trident Construction will oversee the project, which should be complete by the end of this year, the hospital system said.

“A freestanding emergency department is an excellent way to provide continuous coverage in a very convenient setting,” said Dr. Preston Wendell, director of emergency services at Summerville Medical Center, in a statement. “We will be able to diagnose and treat almost any type of patient quickly and efficiently.”

North Charleston Mayor Keith Summey said the facility positions the area to “accomodate future growth with quality emergency health care.” cr bj

Feb. 24 - Mar. 9, 2014

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State lawmakers file bill to merge MUSC, College of Charleston

By Ashley Barker

A

abarker@scbiznews.com

bill was introduced recently in the S.C. House of Representatives that would merge the College of Charleston and the Medical University of South Carolina, including the Medical University Hospital Authority.

The bill, H 4632, calls for the creation of Charleston University before July 1, 2016. It says the current college campus would be known as the “Charleston University George Street Campus” and the current university campus would be known as the “Charleston University Medical Campus.”

On July 1, 2014, a third board of trustees, consisting of current board members from CofC and MUSC, would be created to devise how the joint campus will run.

The boards would consolidate into one entity in 2016.

The bill was introduced by Rep. Leon Stavrinakis (D-Charleston) and Rep. Jim Merrill (R-Charleston). It had a first reading and was referred to the House Committee on Ways and Means.

“The General Assembly finds that by merging the extraordinary assets and talents of the College of Charleston and the Medical University of South Carolina to form a full-scale comprehensive research university will enable Charleston to forever solidify its place as a leader in higher education and ensure its continued economic prosperity,” the bill said.

The bill has been a year-long process, according to Stavrinakis.

“These are state agencies, and their No. 1 priority is to best serve what South Carolina needs. It’s our obligation to push them in that direction,” Stavrinakis said.

He added that leaders at both schools were included in the discussions prior to the bill being drafted. He said most have been supportive but that some leaders have had “heartburn at the medical university” when talking about the merger.

Stavrinakis and Merrill issued a joint statement that said the proposal is in response to business demands in the Lowcountry to create a workforce that matches the growing economy.

“The bottom line is this merger is long overdue — it is right for business; it is right for higher education; it is right for the Lowcountry; it is right for South Carolina; and it is our obligation as legislators to deliver,” the statement said.

S.C. Commerce Secretary Bobby Hitt supports the proposal as well.

“Business recruitment and expansion in the Charleston region is one of the many keys to continued economic growth here in South Carolina,” Hitt said in a statement. “Any proposal to create a full-scale, comprehensive research uni-

versity in this region clearly makes sense for businesses in Charleston and across South Carolina.”

Charleston Mayor Joe Riley said the merger is “essential for the future economic success of the Charleston region.”

“Having eventually Ph.D. programs in chemistry, physics, computer science, aeronautical engineering, perhaps a law school, and even more are the model for the future of a healthy, vibrant region,” Riley said in a statement.

MUSC’s board of trustees unanimously passed a resolution against the proposed merger on Feb. 13. Board member Michael Stavrinakis, brother of Rep. Leon Stavrinakis, abstained from the vote.

MUSC leadership said other options for collaboration would be less costly and more effective, and would preserve the missions, cultures and reputations of both schools.

Faculty member says merger would create ‘Frankenstein’

The majority of faculty members at CofC do not support the possible merger with MUSC, according to a poll conducted by a group of faculty committee chairs.

More than 400 faculty members responded to a survey in January, according to the survey’s executive summary.

The survey found 57% of those polled do not support the college merging with MUSC, and 53% do not support the college moving toward becoming a research university. Additionally, 80% of those polled said they came to the college because of “its focus on offering a high-quality undergraduate liberal arts education,” and more than half do not want increased student enrollment.

“While an institution must adapt to remain competitive, the general consensus of comments was that movement away from the liberal arts model undermines our strengths and makes us less competitive and less responsive to the needs of the local community, the state and the nation,” the summary said. “The successful merger of a historically liberal arts institution with a medical university has no precedent.”

More than 30% of those polled agreed a merger would make them more likely to look for another job elsewhere.

“Many comments reflect an overall conviction that building a third high-quality research institution is ‘clearly beyond the reach of South Carolina and that merging with MUSC would create ‘a Frankenstein monster consisting of an underfunded liberal arts college merged with a med school in the red,’ ” the summary said. cr bj

Reach Ashley Barker at 843-849-3144 or @AshleyNBarker on Twitter.

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www.charlestonbusiness.com

Feb. 24 - Mar. 9, 2014

A conversation with Blackbaud’s new CEO

Michael Gianoni Michael Gianoni takes the reigns at Blackbaud amid the company’s report that its non-GAAP operating income rose 34% last year to a record $101.3 million. Former CEO Marc Chardon stepped down in January 2013, and CFO Tony Boor doubled as interim president until Gianoni took the position Jan. 13. Charleston Regional Business Journal reporter Liz Segrist talked with Gianoni about what’s in store for 2014:

Q: What about your background led you to Charleston and attracted you to lead Blackbaud?

A: Coming from Fiserv (a global provider of financial services technology products), their solutions are in areas like mobile, CRM (customer relationship management) and payments ... and so are Blackbaud’s solutions, but for nonprofits. The solutions are a bit familiar to me and the client base is a bit different, but I’ve spent my career in software technology companies. There’s quite a close match between businesses I’ve been in and running and Blackbaud.

Q: How did you first start out in business?

A: I started off as an engineer. ... I’ve spent my more than 30-year career in technology businesses. I spent time in engineering, product management, sales, sales management and systems integration, and then moved into general management basically running business units inside larger companies. I’ve sort of been in the shoes of most of the departments in Blackbaud over the years. It makes me quite familiar with what we do. A lot of executives come up a track of either finance or sales, and I’ve been lucky enough to be in many of those roles over the course of the years.

Q: What do you see as the good things going on in the Charleston tech community, and what challenges is it facing?

A: Charleston is an interesting tech community. I think there are some good things happening. Benefitfocus around the corner is growing fast, and there are a lot of start-ups in the area. I think that’s great. I think it’s a growing tech community. There are probably challenges for the educational institutions to keep up. If they can keep up, we are playing to hire here. We are a tech company so people think we just hire engineers, but we hire people for sales, finance and human resources.

Photo/Gibson Pitts

Q: What has your first month looked like?

Q: What are your plans to grow Blackbaud’s client base?

Q: What is your vision of success for the company five years out?

A: It’s been a lot of orientation. ... I have met hundreds of people here. .... What’s really impressed me is the business has a lot of talented individuals at every level in the company, not just the most senior folks. .... There’s a great talent pool here to take the company forward.

A: We have thousands of clients in pretty much every sector within the nonprofit space. We plan to be more innovative within those spaces. We don’t have any plans to do anything but go deeper in those spaces both domestically and outside of the U.S. We think there are some good growth opportunities internationally.

A: We are making a transition to be a more SaaS and more recurring revenue business, and that’s not just because of the nonprofit sector, but because the software industry is going that way as well.

The end-user of software or nonprofits is expecting that. We’re driving the business that way for nonprofits, but also for their events and their donors. Their donors are experiencing life on mobile devices, and software companies are delivering to mobile devices. ... We’re moving that way as well. .... I will be continuing that and accelerating that. It will help fuel future growth of the company, and it will also provide future solutions for where our clients are looking to go.

Q: In the earnings call this morning, you were talking about what you wanted to focus on in 2014, including increasing revenue and optimizing products. Can you elaborate on what you are hoping to execute this year?

A: We are focused on four things predominantly going into 2014. First, is revenue growth. We have some investments happening in the business to drive future revenue growth. Some of it is new hires in places like sales and marketing to have more folks be out in the marketplace. We’re investing in our products to drive growth.

We will also build upon online fundraising products and mobile solutions and transition to a recurring revenue company.

Q: In terms of product lines, where will the focus be going forward?

Mobile and cloud-based solutions have been highlighted.

A: The company is moving more toward a SaaS (software as a service) or a cloud-based company. A couple of specific areas we’re focusing on are mobile, payments and online. ... We also have a big focus on analytics. We are adding analytic capabilities to our existing platforms, and we’re including analytics in payments. ... It’s to help our clients understand what’s going on in their ecosystems. Who is in and out of their system? How much are the donors giving? It’s really to get under the covers of what is going on in their business.

Those products are integrated with our core products as well, so you can really understand and create reports to focus on what’s happening in the ecosystem of their nonprofit.

Q: What about growth for the coming year in terms of new markets Blackbaud is looking to break into or acquisitions the firm is considering?

A: Acquisitions and growth into markets are always in discussions. The nonprofit space is our space. We can go wider with the nonprofit space. ... I would call it “near adjacencies.” A great example of a near adjacency is that we have a lot of products on the market that don’t yet have our integrated analytics and payments. .... That gets us a little wider into the market. It’s the same market, same client base, but it provides a more comprehensive solution to the clients. .... In some cases it displaces competitive solutions.

Q: Are there any challenges to dealing specifically with nonprofits?

A: I don’t think so. The industry is growing at a healthy clip...and the online part of the industry is growing at sort-of mid double digits, which is faster than the rest of the industry. We’re positioned really well in the online space. The Convio acquisition we did in 2012 helped us to get further down that path, so that’s a big opportunity for us. ... We add thousands of clients a year, and we’re focusing our investments in the technology and solution area where the long-term trend is: mobile, payments and online.

Q: Would Blackbaud’s solutions ever expand past the nonprofit sector?

A: Likely not, but the nonprofit sector is huge, and we’re not serving it all. One example I gave of near adjacencies is adding analytics and payments. That gets us wider into the nonprofit space, but it’s only a subset of that. There’s a huge technology sector that we don’t play in.

We play predominantly in the fundraising space. That’s where we live. That’s our roots. ... But there’s a lot to do in the nonprofit sector that we can start to focus on — like payments, analytics and mobile.

Q: Is there anything we didn’t touch on that you want the Charleston business community to know?

A: We’re committed to this area. Our headquarters is here, and we’re not moving. We are hiring in all different departments, and we will continue to do that. We want to be a good community participant. I think we have been, and that will definitely continue. cr bj

Reach Liz Segrist at 843-849-3119 or @lizsegrist on Twitter.

Feb. 24 - Mar. 9, 2014

Cainhoy Plantation receives rezoning approval from city

By Liz Segrist

N

lsegrist@scbiznews.com

ew zoning for Cainhoy Plantation has received initial approval from the city of Charleston.

Developers plan to turn roughly half of the 9,000-acre site into a mixed-use community, while some residents, historical groups and conservationists have been very vocal about decreasing the development’s density and slowing down the approval process.

The city of Charleston Planning Commission voted 6 to 1 to rezone Cainhoy Plantation as a planned unit development, which is a more stringent zoning regulation than the previous CY zoning that had very few restrictions on what could be built there.

“They (owners) could implement the master plan with the CY zoning they have now, which has no density limitation or building limitation,” Chief Planning Director Tim Keane said during the Feb. 6 meeting. “They have chosen instead to do PUD and present it for approval.’

At least 15 people spoke against the development during the meeting. A few days later on Feb. 11, Charleston City Council unanimously approved the Planning Commission’s rezoning recommendation.

Peter Lawson-Johnston II owns the land through his entities: Cainhoy Land & Timber LLC, Southern Timber LLC and Tract 7 LLC 3, according to city documents.

Matt Sloan, president of The Daniel Island Co. and representative for the landowner, said the planned unit development has more regulations but results in a higher quality development. The development team wants a comprehensive plan, and therefore requested zoning for the full 9,000 acres, as opposed to developing it in sections.

Plans call for Cainhoy to have residential neighborhoods, schools, business centers, commercial space, light industrial space and parks. Sloan said the area

needs more supermarkets, schools and retail options. The development team plans to emulate Daniel Island when building out Cainhoy Plantation.

The development has been rife with issues for many locals. Some are worried about historical assets being lost to development. Others said that the wildlife and longleaf pines will be harmed or that the natural character of the plantation will be too altered by the development’s density.

Many residents are concerned it will no longer be affordable to live there.

“Daniel Island is considered a success story. To me, it’s a horror story. There’s no diversity on Daniel Island ... and no facility for low-income ownership,” said Fred Lincoln, a community activist and Cainhoy resident. “Our version of affordable housing is different than downtown Charleston or Daniel Island ... We want to create an environment for everybody to be able to enjoy some of that property.”

The city and developers have held public meetings about Cainhoy Plantation over the past few months. Sloan has met with roughly 500 people to discuss the development.

City Councilman Gary White Jr. said this is the greatest amount of public outreach he’s seen from a developer on any project since he’s been on the council.

Public comments have influenced some of the plans, including the plan to create affordable housing in parts of the community by mixing low- and moderate-income housing with market-rate housing.

Other changes include the elimination of an industrial zone along Cainhoy Road to allow for residential and commercial space instead.

Keane and Charleston Mayor Joe Riley stressed that this development will take decades to build out. Cainhoy Plantation currently has about 11,400 residents. The city estimates that it will have roughly 40,000 residents by 2050 or 2060. cr bj

-Reporter Ashley Barker contributed to this story. Reach Liz Segrist at 843-8493119 or @lizsegrist on Twitter.

“Daniel Island is considered a success story. To me, it’s a horror story. There’s no diversity on Daniel Island ... and no facility for low-income ownership. Our version of affordable housing is different than downtown Charleston or Daniel Island ... We want to create an environment for everybody to be able to enjoy some of that property.”

Fred Lincoln community activist and Cainhoy resident

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Feb. 24 - Mar. 9, 2014

3D printing: Changing how we manufacture, create

By Liz Segrist

A

lsegrist@scbiznews.com

hopeful family sends design files for a prosthetic hand to a 3D printer at SpaceCraft Studios in West Ashley.

The 3D printer’s robotic arm moves back and forth, jetting out hot plastic layer after layer until 80 different parts are printed. After assembly, a 4-year-old boy in Charleston now has a new prosthetic hand — from a printer.

Local architects come in to the studio to print detailed models of future hotels or homes. Designers come in to print colorful iPhone cases or jewelry.

“It’s a fast, cheap way to get a product designed,” said SpaceCraft Studios Founder and Owner Allison Merrick, who did not want to disclose client names without permission. “I think one of these printers will be in most households in the next 10 years or so. It will be as commonplace as having a microwave.”

Three-dimensional printers enable people to take computer-model designs and send them to a printer to be built within a few minutes or hours, depending on the size. They can design the files themselves or download files from websites like Thingiverse, CADyou, Create This, Cube Hero or Cubify.

Instead of ink jetting out of the printer onto paper, the printer shoots out plastics or metals, for instance, and builds objects from scratch, layer by layer, until a 3D object emerges.

With 3D printing, an entire piece can be printed, removing the need to assemble parts for a car or plane, for example.

If the supply chain is disrupted, manufacturers can print parts in-house rather than slowing or stopping production, said Stacey Witten, investor relations director of 3D systems, a Rock-Hill based 3D printer manufacturer.

The 3D printing technology is poised to revolutionize the manufacturing, health care, design, aerospace, automotive and architecture sectors. The potential is huge — and many companies are already realizing it.

GE plans to build fuel nozzles for Leap jet engines on 3D printers and is investing tens of millions of dollars to expand its 3D capabilities. Boeing uses 3D printers to make plastic air-conditioning ducts for its 787 Dreamliner jets. Nike makes a football cleat with them, and BMW prints hand-tools for automobile assembly and testing. Printers are being used to create medical braces, hearing aids, retainers and prosthetics.

The applications are seemingly endless. Kids could produce their own toys.

Home improvement stores could print parts, rather than having huge warehouses to store them. Electronics or food producers could use the technology. Printers

SpaceCraft Studios Owner Allison Merrick sends a 3D heart file from her computer to the MakerBot 3D printer, which prints a 3D heart in less than 10 minutes. Customers have printed bracelets, masks, iPhone cases, chains and toys on the 3D printer in the West Ashley store. (Photos/Andrew Sprague)

using human cells to create functional, living tissue could be the future solution to organ transplants.

With new technologies come new concerns. Critics are worried about the possibility of people printing guns or bombs using a 3D printer. Solid Concepts, a Texas-based custom manufacturing company, made the first metal gun using a 3D printer last year.

“We’re proving this is possible, the technology is at a place now where we can manufacture a gun with 3D metal printing,” Solid Concepts’ Vice President of Additive Manufacturing, Kent Firestone, said in a statement.

Gartner predicts that 3D printing will have a high impact on consumer products and industrial and manufacturing industries; a medium impact on construction, education, energy, government, medical products, military, retail, telecommunications, transportation and utilities; and a low impact on financial services and insurance.

The hype around consumer 3D printing has made enterprises aware that the See 3D Printing, Page 16

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Rising demand • The number of 3D printers under $100,000 that were shipped worldwide in 2013 is expected to be roughly 56,000 units, according to Gartner Inc.’s first forecast of the 3D printer market for this price range.

• Gartner said that shipments will increase further in 2014, growing 75% to 98,065 units, followed by a near doubling of unit shipments in 2015.

• 3D printing consulting company Wohlers Associates estimates that the 3D printing industry is poised to almost triple to about $6 billion in sales by 2017.

• IDC analysts expect 3D printer shipments to grow 10 times between 2013 and 2017.

Feb. 24 - Mar. 9, 2014

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3D printing, continued from Page 14

Feb. 24 - Mar. 9, 2014

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price and functionality of 3D printers have changed significantly over the past five years, and that realization is expected to increase shipments in 2014, Gartner Research Director Pete Basiliere said.

“Most businesses are only now beginning to fully comprehend all of the ways in which 3D printing can be cost-effectively used in their organizations, from prototyping and product development to fixtures and molds that are used to manufacture or assemble an item to drive finished goods,” Basiliere said. “Now that many people in the organization ... have heard the hype, they want to know when the business will have a 3D printer.”

Manufacturing with 3D

3D Systems, of Rock Hill, made its foray into the printing industry around 30 years ago with Chuck Hull, widely considered the founder of 3D printing. It manufactures 3D printers for GE, Nike, IBM, Boeing, Stryker, Honeywell, Airbus, BMW, Toyota, Alcoa and Siemens, among many others.

3D Systems is working with Hershey Corp. to produce chocolate treats, NOOKA to create 3D watches, and Geomagic Freeform to design implants.

Its printers range from $1,000 to $1 million. Hobbyists, schools, manufacturers, designers, architects and health care providers are buying them, pushing sales

SpaceCraft Studios Owner Allison Merrick bought a 3D printer, which she expects will become a household item in the future.

(Photo/Andrew Sprague)

up nearly 50% in 2013 from 2012.

The transportation, automotive and aerospace sectors were the early adopters and are still its biggest customers, but health care is the fastest growing sector for 3D Systems, Witten said.

“3D printing is definitely a growing, important and profitable space for us,” Witten said. “We believe we can get the consumer price point to $500, down from around $1,000. .... We are increasing capabilities and adding functionality for advanced printing for manufacturing, healthcare, automotive and aerospace sectors, in particular.”

Witten said if a manufacturer is printing hundreds of thousands of the exact same piece, traditional manufacturing might be a cheaper route. 3D printing is more economical for smaller scale or prototyping operations, she said.

The 3D printer is ideal for a manufacturer that often changes tools or parts

for a model, said John Cobb, marketing vice president of Stratasys, a Minneapolis-based 3D print manufacturer.

“Rather than throwing whatever parts away that you have and can no longer use, 3D printing enables ‘just in time’ manufacturing,” Cobb said. “You can print whatever you need right then.”

Stratasys’ growth has been in the manufacturing, education and health care sectors, including a line of implants and prosthetics. Cobb sees the architecture community as the next big market for 3D printing.

Cobb expects 3D printing to become commonplace over the next 10 to 20 years. People will own their own or use them in stores. UPS and Staples offer some 3D printing services for customers.

“At this point in time, 3D printing has no boundaries in terms of its capabilities,” Cobb said.

Prototypes in minutes

Inside her store in the Avondale neighborhood of West Ashley, Merrick places a bright blue plastic spool in the back of the MakerBot printer. She sends the heart design file from her computer to the printer. With the press of a button, a robotic arm begins moving back and forth, spitting out layer after layer of the blue plastic into a heart shape.

A few minutes later, a 3D blue heart object sits on the printer.

“During product development,

designers used to send a design to China to create a prototype, which puts their intellectual property at risk. Now they can print it on their own, and product development will be a fraction of the cost it is now,” Merrick said.

Merrick opened SpaceCraft Studios in July 2012. Spools of thread, scissors, tape measurers and cloth cover the walls of the small design studio. Tables covered in paint and glitter from project pasts and shelves packed with supplies fill the room.

When customers aren’t taking classes on how to make soap, tesla coils or jewelry, they can use the 3D printer. Some have created prosthetics, hotel models, stretchy bracelets, multicolored iPhone cases, eye masks, screws and bolts, a bright green Yoda head and a detailed model of a crab.

Merrick expects more businesses to begin using her 3D printing services, which cost $10 an ounce, plus 10 cents a minute that the printer is in use.

With 3D printers, furniture designers or electronics manufacturers could create prototypes before going to full-scale production. Developers could create small-scale buildings before beginning construction. Hobbyists can create knickknacks, toys, gifts or “whatever else they can imagine,” Merrick said. cr bj

Reach Liz Segrist at 843-849-3119 or @lizsegrist on Twitter.

Feb. 24 - Mar. 9, 2014

www.charlestonbusiness.com 17

The Trolley Barn property, located at 628 Meeting St., will undergo a $1.5 million renovation.

(Rendering/Charleston City Council)

City Council OKs Trolley Barn land deal

By Ashley Barker

college. If you could go around the world and try to figure out what building to build, you’d come up with the exact design of the harleston City Council approved Trolley Barn,” founder John Paul Huguley selling a historic piece of down- said. “It’s about historic preservation and town property to the American putting money back into the taxpayers’ College of the Building Arts on Feb. 11. pockets, but it’s really about the young lives After many hours spent debating the that are going to graduate and save builddeal, including a special meeting on Feb. ings for the future.”

10, council members agreed to sell the Mayor Joe Riley and Kitty Robinson, 1.64-acre Trolley Barn property, located representing the Historic Charleston at 628 Meeting St., Foundation, agreed for $10. that the proposal is The property investment in the “ If you could go around the an would be subdivided history and architecby the college, and of the city. world and try to figure out ture“We the northern half stand in full would be transferred what building to build, you’d support of this proto Parallel Capital posal,” Robinson LLC, an investor in said during a public come up with the exact the college that has participation period agreed to give the design of the Trolley Barn.” of the meeting. school $1.75 million.

Councilman At least $1.5 million James Lewis resisted John Paul Huguley of that would be founder, American College of the Building Arts the sale. used to renovate the “To me, this is not property. The Trolley a deal, and I’m still Barn portion would be restricted to use going to vote against it,” he said. “We’ve as a school of the building arts. spent six or seven hours on this issue, so The nonprofit institution — currently I really don’t want to discuss it anymore,” housed at the Old Charleston District Jail Lewis said to council members who were — offers liberal arts degrees in building trying to garner his support. “My mind is trades such as architectural stone, carpen- made up.” try, forged architectural ironwork, plaster Due to discussions during City Counworking, preservation masonry and tim- cil meetings about the community’s ber framing. The college has fewer than embrace of the college, Parallel agreed to 50 students, and many of them, along spend $100,000 on outreach. with the founder of the college, showed Reach Ashley Barker at 843-849-3144 up to the meetings to support the sale.

“The building makes total sense for the or @AshleyNBarker on Twitter.

C

abarker@scbiznews.com

cr bj

18

www.charlestonbusiness.com

Feb. 24 - Mar. 9, 2014

In Focus:

Energy and the Environment

List Heating and Air Contractors, Page 24

Walterboro solar farm to serve as model

By Liz Segrist

T

lsegrist@scbiznews.com

he largest solar farm in the state is supplying electricity to more than 300 homes in Walterboro, and is likely the first of many in South Carolina.

Santee Cooper Board Chairman Leighton Lord said utility companies plan to use the 3-megawatt solar complex off Interstate 95 as a model to create more solar farms around the state in the future.

TIG Sun Energy, a subsidiary of North Charleston-based The InterTech Group, is the owner and operator of the 14-acre Colleton Solar Farm. In its first month of production, it produced enough energy to light 753 60-watt light bulbs for eight hours a day.

The site is forecasted to generate approximately 4.5 million kilowatt-hours of electricity in 2014.

“Solar energy is in our future, so we

need to gain experience,” The InterTech Group Chairperson and CEO Anita Zucker said during the dedication last month. “This facility is designed to do that.”

Santee Cooper is collaborating with Central Electric Power Cooperative, a provider of wholesale electric service to the state’s electric cooperative system, and the state’s electric cooperatives.

Together, the entities are purchasing the total energy output of the farm and studying data about the costs and integration of utility-scale solar power.

The data also will help utilities examine system reliability when the sun is not available to produce power.

“Santee Cooper knows that solar power has a bigger role to play in our state’s energy future,” Lord said. “Our challenge is figuring out how to integrate utility-scale solar generation and still keep our customers’ lights on when the cloud cover blocks the sun. We will be using the Colleton Solar Farm to build

that knowledge base.”

The solar array consists of 10,010 photovoltaic panels. Some panels are stationary, while other panels follow the direction of the sun to maximize the production of solar energy. The panels cost around $200 each. Lord said they would have cost $10,000 apiece 10 years ago.

Santee Cooper selected TIG Sun Energy as the solar farm contractor in October 2013, and the farm began producing power Dec. 20. The farm was a roughly $4 million investment.

“This also allows us to diversify the generation of power that turns on the lights and houses in this area,” Lord said.

“Diversification in energy is key to having reliable, inexpensive power in this area.”

Larry Hinz, president and CEO of Coastal Electric Cooperative and board chairman of the Central Electric Power Cooperative, said the project is See sOLAR FARM, Page 23

Colleton S lar Farm 3-megawatts powers 300 homes in Walterboro

In its first month of production, it produced enough energy to light 753 60-watt lightbulbs for eight hours a day.

14 acres

Size of solar farm

The site is forecast to generate approximately 4.5 million kilowatt-hours of electricity in 2014.

10,010

photovoltaic panels

➤

Sparc spins off energy services unit Staff Report

C

harleston-based Sparc plans to spin off its energy services line, 5twenty, to enable it to grow as an independent company.

The technology-based company helps reduce energy costs for buildings.

Sparc initially developed 5twenty to deliver energy efficiency assessments for the Veterans Affairs Department. 5twenty has since expanded into the commercial market to provide energy management solutions to building owners, operators, consultants and other building services providers.

“It makes sense to prop 5twenty up as a stand-alone entity,” Sparc CEO Eric Bowman said in a statement. “The company will always have its roots here at Sparc, but I couldn’t be more pleased with the development of the platform and the achievements of the 5twenty team.”

Jeff Beck, former product manager with Sparc, will take a senior role in the new entity, which will continue to develop its financial analysis tools and more solutions.

“Planning for and executing more in-depth projects has historically been expensive and risky. We’re changing that,” Beck said in a statement. “We are delivering solutions that make those deep energy savings a reality, without that expense and risk.”

Sparc provides software development services for the government and commercial sectors, and develops commercial software products for the executive leadership, human resources, energy management, big data analytics and mobile markets.

Next Issue’s Focus:

Photo/Liz Segrist

Architecture, Engineering and Construction

20

www.charlestonbusiness.com

IN FOCUS: eNergy and the Environment

Feb. 24 - Mar. 9, 2014

Demand for green-cleaning supplies growing in S.C.

By Ashley Barker

N

abarker@scbiznews.com

o scent is the best scent. That’s the philosophy at Anago Cleaning Systems of Charleston.

The commercial cleaning company uses as many eco-friendly or “green” cleaning products as possible, and it is steering its clients away from the prevailing notion that a room must smell like chemicals to be proven truly spotless.

Over the past decade, green products that don’t produce toxic fumes have made significant progress in quality and price, according to Dennis Lott, an account executive with Anago of Charleston, which has more than 20 franchisees.

“There’s really no excuse now for a person not to be using green products,” Lott said. “When the first green products came out several years ago, they were garbage. Manufacturers were just dumping a product on the market that was ‘green.’”

At the time, cleaning companies charged more for a cleaning service that included only green products.

Competition and the demand for effective green products has made them more affordable. There are all-purpose cleaners, carpet and floor cleaners, degreasers, soaps, oven cleaners, toilet-bowl and tile

There are now all-purpose cleaners along with carpet and floor cleaners, degreasers, soaps, oven cleaners and glass and wood cleaners that don’t include ingredients that could be hazardous to humans and the environment. (Photo/Ashley Barker)

cleaners as well as glass and wood cleaners that don’t include ingredients that could be hazardous to humans and the environment.

“There’s still some products that we use that are not green, because there’s not a green product to replace it,” said Dory

Ruyts, vice president of Anago of Charleston. “As a product comes out that’s green, we’ll do some research and look into the background as far as the composite of it.”

Anago uses government certifications to decide which products are up to par.

One popular label is DfE, a Design for the

Environment certification set by the U.S. Environmental Protection Agency.

If a product has the logo, a DfE scientific review team has determined “the product contains only those ingredients that pose the least concern among chemicals in their class,” according to the EPA. Manufacturers of products with the label have invested heavily in research, development and reformulation. They also must maintain or improve the product’s performance, the EPA website said.

Around 25% of Anago of Charleston’s more than 150 current contracts have specifically included requests for green products, according to Ruyts. She estimates that half of new bids and quotes that the company provides include questions about the kind of products being used.

“Green cleaning is one of those things that is now taking hold in our marketplace,” Lott said. “It’s been a lot more up-front in different areas of the country before now.”

Anago of Charleston’s product supplier, Southeastern Paper Group, which started in Spartanburg more than 40 years ago, stocks approximately 25,000 products for janitorial and packaging companies across the country.

PJ Lockard, a sales consultant for the group, said the number of ecofriendly

IN FOCUS: eNergy and the Environment

Feb. 24 - Mar. 9, 2014

www.charlestonbusiness.com 21

Charleston County Council OKs plan to build recycling center

By Liz Segrist

C

lsegrist@scbiznews.com

harleston County Council recently approved plans to build a recycling center at Palmetto Commerce Parkway in North Charleston.

The council voted 6-2 to approve the purchase of the 20-acre site for $2.8 million. Councilmen Joe Qualey and Herb Sass voted against it.

County Council has been debating where to locate the recycling center for about a year, considering sites near the

Anago of Charleston’s Dennis Lott (left), Dory Ruyts and David Ruyts often have requests for green products. (Photo/Ashley Barker)

products is trending up.

“In South Carolina, we’re about a decade behind the West Coast, which got on board with green products quickly,” Lockard said. “Now it’s not just about what a product is made of, but what’s not in the product. There can be no toxic chemicals.”

Green cleaning doesn’t just involve the liquids that a janitorial staff uses. It’s also about keeping products out of the landfill and decreasing electricity usage.

Backpack vacuums – which offer more mobility by attaching the canister to the operator’s shoulders and waist using a harness – are becoming more popular than traditional standup vacuum cleaners for companies that are interested in going green, according to Anago of Charleston President David Ruyts.

“With a backpack-style vacuum, you can vacuum a place a lot faster than with an upright. If you get the job done faster, using an energy-efficient machine, you use less of your client’s electricity,” he said.

Paper towels, traditionally used to clean windows and surfaces, have been replaced as well with microfiber cleaning clothes that can be washed and reused. There are also new options for mop heads that can be washed up to 150 times instead of being disposed of after heavy use.

Trash bags – or can liners, as they are called in Lockard’s industry – are now being produced using renewable resources, such as corn. He said those kind of paper products and the cleaning sprays considered eco-friendly are now “very rarely” priced differently than their non-ecofriendly counterparts.

“If there’s any difference in price at all, it’s less than 5%, but it used to be much larger,” Lockard said. “Manufacturers are just removing stuff that is considered hazardous and adding stuff into the product. It’s still the same basic formula.” cr bj

Reach Ashley Barker at 843-849-3144 or @AshleyNBarker on Twitter.

Bees Ferry landfill in West Ashley and other sites within the Palmetto Commerce Parkway. The site they chose, located within the commerce park, sits adjacent to the Republic landfill.

Councilwoman Colleen Condon voted for the purchase to build the facility but had some concerns about the site, including the heavy industrial zoning by the city of North Charleston instead of light industrial zoning.

“You know I want this done ... but I want to make sure that when we give you the go ahead, you can go ahead ... so we’re

not stopped in three months,” Condon said.

Last month, County Council awarded Sonoco what could be a 10-year contract to run the county’s recycling services.

The contract includes two phases. For the first phase, Sonoco will run the county’s operations at the Romney Street facility for the next 18 months.

Details of the second phase are still being worked out, but it would include the remaining eight years on the contract and potentially running the new facility. cr bj

22

www.charlestonbusiness.com

IN FOCUS: eNergy and the Environment

Feb. 24 - Mar. 9, 2014

Carnival to install devices to reduce air pollution

By Liz Segrist

T

lsegrist@scbiznews.com

he Carnival Fantasy cruise ship will be retrofitted with pollution-reducing scrubbers by 2016 in an effort to reduce harmful emissions in Charleston.

The 25-year-old Carnival Fantasy will be outfitted with several exhaust gas cleaning systems, also known as scrubbers, to comply with new standards on sulfur dioxide emissions. The filtration systems scrub emissions like sulfur dioxide, nitrogen oxide and particulate matter from the ships’ exhaust in an effort to reduce air pollution.

The maritime industry is required to reduce sulfur dioxide emissions within the Emissions Control Area, or the 200mile zone around the U.S. and Canada.

The International Maritime Organization designated this zone, known as “ECA,” in 2010.

In 2012, the organization mandated that ships within the ECA must use fuel with sulfur content no higher than 1%.

This will drop to 0.1% by Jan. 1, 2015.

Compared to the current ECA standard of 1%, the worldwide sulfur limit is 3.5%.

ECA originally called for low-sulfur fuel to replace the high polluting, diesel fuel that powers most cruise ships today.

Carnival wanted to test the scrubber technology to avoid either buying the expensive low-sulfur fuel or investing to retrofit the ships and cruise terminals for shore power.

Local environmental groups are pushing for shore power in Charleston to reduce emissions. Shore power enables a ship to plug into a permanent power supply while docked, allowing the ship to turn off its auxiliary engines and stop the burning of diesel fuel while it’s at port.

S.C. Ports Authority President and CEO Jim Newsome said the scrubbers will achieve better emissions standards than shore power would, while costing less.

Carnival Corp. will spend $180 million to install scrubbers on 32 cruise ships over the next three years under an agreement with the U.S. Environmental Protection Agency and the Coast Guard.

The Carnival Fantasy that calls on the Port of Charleston will be one of those ships, the ports authority said Feb. 19.

Each of the 32 ships is estimated to get three scrubbers. The scrubbers will work while the ship is in the ECA. The EPA thinks the scrubbers will enable the ships to be in compliance with sulfur emissions requirements by 2015, as well as reduce particulate matter and black carbon emissions that cause health

Scrubbers will be installed on the 32 Carnival ships: • 9 ships in 2014 • 16 ships in 2015 • 7 ships in the first half of 2016 concerns.

“These new controls combine the use of sulfur oxide scrubbers with diesel particulate filters — thus combining technologies well known in the power plant and automotive sectors, but not previously used together on a marine vessel,” the EPA said in a statement.

The push for shore power

A billboard along Interstate 26 shows dark smoke billowing out of a Carnival cruise ship to represent local environmental groups’ concerns about the ship’s pollution harming residents, tourists and the environment.

The Charleston Communities for Cruise Control and the Coastal Conservation League coined February “Shore Power Now” month. They want the city of Charleston and the S.C. Ports Authority to implement shore power at the new $35 million cruise terminal in downtown Charleston where the Carnival Fantasy calls on the port.

“Idling cruise ships produce large amounts of air pollution. ...Because thousands of people are abroad, cruise ships burn far more diesel than cargo ships while docked, and plugging in a Charleston-based cruise ship would have a large impact,” said Katie Zimmerman, program director with the Coastal Conservation League in Charleston.

Zimmerman said the 0.1% sulfur content mandate, effective 2015, will help decrease the sulfur dioxide pollution coming from cruise ships. The issue, she said, is that the requirement does not go far enough to protect people from nitrogen oxide and particulate matter pollutants when the ship is idling.

These nitrogen oxide, sulfur dioxide, particulate matter and carbon monoxide pollutants can lead to asthma, cancer, heart attacks, heart disease, chronic bronchitis and premature death, Zimmerman said.

“The cruise ship basically operates as a small city,” Zimmerman said. “All of the electricity runs off of diesel fuel. If we had shore power capability, the ship could shut off its engines completely and plug into the electric grid while at port.”

Shore power would lower the Fantasy’s harmful pollutants by up to 97% versus See CArnival, Page 23

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IN FOCUS: eNergy and the Environment

Feb. 24 - Mar. 9, 2014 CARNIVAL, continued from Page 22

➤

what the ship would emit burning even the cleanest diesel fuels required in 2015, according to a study commissioned by Charleston-based Southern Environmental Law Center and prepared by the Pittsford, N.Y.-based Energy and Environmental Research Associates, LLC. A new bill aims to earmark funds for shore power at the new cruise terminal at Union Pier. Shore power would require retrofitting the cruise ship, estimated to cost around $1.5 million, and upfitting the terminal. The league estimates the land-side costs would be around $7 million, while the ports authority said they could cost up to $20 million.

Zimmerman said shore power would likely require funding from the ports authority, the state, the city and Carnival.

Would shore power work here?

Numerous factors come into play when considering shore power installations, said Tom Dow, Carnival Corp.’s public affairs vice president.

Carnival has deployed shore power installations at numerous ports along the West Coast, including Seattle, San Francisco, San Diego, Los Angeles and Long Beach, Calif.

In deciding whether to implement shore power, Carnival considers the frequency of cruise ships calling on a port,

the offshore or onshore wind presence, the demand on the electrical grid and the capacity of the grid, and whether an area’s air quality is in agreement, known as “attainment,” with the EPA. Carnival primarily has shore power installations in many West Coast cities because multiple cruise ships are calling on each port several days of the week, Dow said. Charleston has a limit of 104 cruise ships calls each year, which is likely too low to justify the costs of implementing shore power, Dow said.

Charleston’s air quality is also within attainment and it has offshore wind, which pushes pollutants away from the shore, unlike in California, Dow said.

Dow said the scrubbers remain with the ship as it moves away from the dock.

Shore power must disconnect before the ship leaves the port.

Newsome said the investment for shore power could overwhelm the benefits if the scrubbers can achieve or surpass the 0.1% sulfur limit.

Carnival is working on a variety of engine configurations now through mid2016.

“Since the requirement will be .1% sulfur and we’ll be coming in under that ... it makes the case for shore power much less compelling,” Dow said. cr bj

Reach Liz Segrist at 843-849-3119 or @lizsegrist on Twitter.

www.charlestonbusiness.com 23

“Diversification in energy is key to having reliable, inexpensive power in this area.”

Leighton Lord Board Chairman, Santee Cooper

Photo/Liz Segrist sOLAR FARM, continued from Page 19

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an opportunity to learn how to use solar power as a reliable and affordable source of electricity for its customers.

Zucker said South Carolina needs more pro-solar energy legislation to catch up to its neighboring states.

She advocated for legislation that would enable companies to lease solar panels to other entities or individuals, as well as more tax credits for people who wish to install solar panels on residences and businesses.

The InterTech Group installed solar panels on its corporate headquarters in North Charleston and on the roof of the Carolina Ice Palace, which InterTech also

owns in North Charleston.

Companies throughout the state operate their own private solar operations, such as Boeing’s and BMW’s solar installations in North Charleston and Greer, respectively. SCANA has plans to build solar farms as well, but Lord said this is the first of its kind in the state.

“Hopefully this will be the beginning of showing people in South Carolina what this is all about, what impact it can have on the homes it heats or cools and what impact it can have to make our state environmentally moving forward,” Zucker said. cr br

Reach Liz Segrist at 843-849-3119 or @lizsegrist on Twitter.

24

IN FOCUS: eNergy and the Environment

www.charlestonbusiness.com

Feb. 24 - Mar. 9, 2014

Heating and Air Contractors

C.R. Hipp Construction Inc. & Hipp Service Inc. 4981 Dorchester Road, North Charleston, SC 29418 Morelli Heating & Air Conditioning 2470 Faber Road, North Charleston, SC 29405 Total Comfort Solutions 4760 Goer Drive, North Charleston, SC 29406 Charleston Heating & Air 4225 Dale St., North Charleston, SC 29405 Smoak's Comfort Control 1781 Harmony St., Charleston, SC 29407 AGL Services LLC 3226 Maybank Highway, Suite E-10, Johns Island, SC 29455 LimRic Plumbing, Heating & Air 1920 Dunbar St., Suite G, Charleston, SC 29407 Air Concept Solutions, LLC 102 Bayleaf Court, Summerville, SC 29483 C&C Heating & Air Conditioning Inc. 1345 Old Georgetown Road, Mount Pleasant, SC 29464 1st Choice HVAC Services 513C Savannah Highway, Charleston, SC 29407 Johnson Controls Inc. 4415 Sea Ray Drive, North Charleston, SC 29405 Myatt Air Conditioning 1235 Camp Road, Charleston, SC 29412 Olde Towne Heating & Air 443-F Long Point Road, Mount Pleasant, SC 29464

Financing?

Berkeley Heating & Air Conditioning 5915 Loftis Road, Hanahan, SC 29410 Trane 2011 Clements Ferry Road, Charleston, SC 29492

Area of Specialization

Ext. Warranty?

Company

Maintenance?

Ranked by No. of NATE* Certified Technicians

15 39 13 30

Commercial and residential, new construction, geothermal

Y

Y

Y

Commercial HVAC and controls

Y

Y

Y

843-744-4477 www.crhippconstruction.com

10 84

Commercial and industrial HVAC construction, service and installation on all makes, models and systems

Y

Y

Y

843-554-8600 www.morelliair.com 843-747-8877 www.totalcomfortsolutions.com 843-216-9966 www.charlestonheatingandair.com 843-556-9550 www.smoakscomfort.com

10 48 9 15 8 19 8 40

Service, replacement and installation for residential and commercial purposes

Y

Y

Y

Commercial, health care, industrial, manufacturing segments, servicing Trane, Carrier, York and Lennox Residential heating and air sales, service and replacements, specializing in Ruud and Trane

Y

Y

Y

Y

Y

Y

Commercial and residential

Y

Y

Y

Don Oliveto, Gordon Dinger 1958 Dean Hackett 1913 Al W. Hitchcock, Pete L Bailey, David C Gregg 1962 Anthony J. Morelli, Andrew Morelli 1981 Kent Floyd 1976 Blake Miller 2009 Glenn Smoak, William Smoak 1972

843-795-0066 www.aglair.com

7 13

Geothermal equipment, custom homes

Y

Y

Y

Richard Lingle 2004

843-225-2665 www.limric.com 843-323-8814 www.airconceptsllc.com 843-884-5384 www.ccheatingandair.com 843-509-5661 www.1stchoicehvacservices.com 843-744-7144 www.johnsoncontrols.com 843-795-0229 www.myattair.com 843-856-1433 www.oldetowneheatingandair.com

6 30 5 5 5 10 4 4 4 64 4 19 4 12

Residential and commercial replacement, service, maintenance

Y

Y

Y

Commercial and residential

Y

Y

Y

Residential unit replacement

Y

N

N

Commercial and residential duct replacement, sizing and repairs

Y

Y

Y

Full-line service provider of mechanical equipment and systems to control HVAC, FA, lighting

Y

Y

Y

Commercial and residential installation

Y

Y

Y

Commercial and residential installation and maintenance

Y

Y

Y

David Miles 1959 Terri Sowder 2010 Chris Coleman 1972 Bobby Whittmore 1991 Jeffrey Messick 1885 Bernie Myatt 2009 Frank Allen 2009

Phone / Website

NATE* Technicians / Total Employees

843-277-6030 www.berkeleyheating.com 843-375-4775 www.trane.com

*NATE=North American Technician Excellence, www.natex.org. INP=Information not provided. View this list online at www.scbiznews.com/data. Although every effort is made to ensure accuracy, errors sometimes occur. Email additions or corrections to lists@scbiznews.com or go to www.tinyurl.com/joinourlists.

Top Local Official(s) / Year Founded

Researched by Business Journal staff

Feb. 24 - Mar. 9, 2014

IN FOCUS: eNergy and the Environment

www.charlestonbusiness.com 25

26

www.charlestonbusiness.com

Feb. 24 - Mar. 9, 2014

At Work:

People, places and happenings across the Lowcountry

Business Digest

Hot Properties 30 Viewpoint 31

People in the News NONPROFIT

Select Health funds EKG machine for Charleston Southern

South Carolina. Jim Pascutti will serve as general manager of Trace Staffing Solution’s Charleston location. Trace Staffing Solutions operates 11 offices across the Southeast and has more than 1,600 employees throughout the region. The company said it has plans to open additional locations in 2014.

Terry Hamlin was honored at the Giving Back Awards gala last year as the winner of the “Community Catalyst” award for his work with the Hamlin Wounded Warrior Program and the Mobility Impaired Division of the Cooper River Bridge Run. The annual event is co-produced

by Charleston Magazine and the Coastal Community Foundation. Hamlin is a founder of the Charleston Running Club and a co-founder of the Cooper River Bridge Run. After losing his left leg in a 2009 hunting accident, Hamlin decided to use his business and social contacts to give something back to the community. The Community Catalyst Award recognizes an individual who brings about a movement of charitable giving through his/her actions or ideas.

Terry Hamlin’s Carolina One Real Estate office manager, Meaghan Popper, joined him at the Giving Back Awards.

Judge Realty Group opens brokerage firm

LAW

Select Health of South Carolina fully funded the purchase of a refurbished Philips PageWriter Touch Electrocardiogram machine for use at the Derry Patterson Wingo College of Nursing and Allied Health at Charleston Southern University.

This donation will provide students with handson experience measuring the electrical activity of the heart. The machine will be in regular use by faculty and students beginning this month, which is American Heart Month.

From left, Charleston Southern University nursing students Christina Morgan and Alanna Mayernik; President Jairy C. Hunter; Tara Hulsey, dean of the College of Nursing and Allied Health at CSU; Angela Glyder, regional clinical director, AmeriHealth Caritas/Select Health; Cindy Helling, executive director, Select Health; and CSU alumnus Dr. Kirt Caton, medical director, Select Health.

Metanoia receives $50,000 grant from National Fair Housing Alliance

Metanoia Community Development Corp. in North Charleston recently received a $50,000 grant from the National Fair Housing Alliance. The community development organization plans to provide emergency home repairs up to $6,000 for low-income homeowners in the North Charleston area. These repairs could include leaks in the roof or the need to repair a broken HVAC system.

EHE International certifies MUSC Physician Primary Care

EHE International, a health organization that promotes preventive medicine and annual physical exams with a physician network spanning 44 states, has recognized the Medical University of South Carolina’s Physician Primary Care North in North Charleston as an EHE-certified preventive care center.

The Brandon Agency names Wilson Lass partner agency

The Brandon Agency has acquired Colorado-based Wilson Lass, and will operate the agency in Breckenridge under the name Wilson Lass Brandon. The acquisition is a result of The Brandon Agency’s effort to grow beyond the East Coast and Wilson Lass’ desire to broaden its scope of in-house resources, the company said.

With the new partner agency and recent acquisition of Ohio-based Benghiat Marketing & Communications, The Brandon Agency has increased its client base by 15% and has grown to more than 90 employees.

Founded in 1981 by Tony Wilson and Meg

Lass, Wilson Lass’ client list includes Breckenridge Ski Resort, Rocky Mountain Vein Institute, The Summit Foundation and The Summit County Care Clinic.

Geocent honored with Boeing Performance Excellence Award

Geocent, an information technology and engineering firm in North Charleston, which is headquartered in Metairie, La., has received a silver Boeing Performance Excellence Award for its work with Boeing in 2013. The award is part of Boeing’s annual program to recognize supplier performance. This year Boeing had more than 5,000 suppliers and is awarding 457 silver trophies. Geocent placed in the top 10% of those 457. Geocent earned the recognition by maintaining a silver or gold composite performance rating for each month of the 12-month performance period; having an annual contract payment value of more than $100,000; and earning a positive General Performance Assessment rating. Having earned the silver BPEA, Geocent is now in the running to receive a Boeing Supplier of the Year award. Geocent supports Boeing on the design and manufacturing of the company’s Space Launch System in Huntsville, Ala., and the Michoud Assembly Facility, in New Orleans.

Snelling Staffing Services becomes Trace Staffing Solutions

Trace Staffing Solutions, a staffing agency formerly known as Snelling Staffing Services, recently launched in Charleston, offering strategic temporary and fulltime solutions for employers throughout

Judge Realty Group recently opened a brokerage firm that will offer clients advice and brokerage services for residential property, including purchasing, leasing, disposition, management and consulting. The firm also plans to offer home design services, including interior design, staging and some renovation projects.

Company President Vonnie Judge has more than 15 years’ real estate experience.

Staymobile opens Mount Pleasant location

Staymobile, a mobile device repair and accessories franchise company based in Columbia, recently opened its seventh location in the Whole Foods shopping center in Mount Pleasant. The franchisees, who also own Free Fly Apparel in Mount Pleasant, recently relocated to South Carolina from the Pacific Northwest where they worked for Nike. Staymobile has two stores in Columbia and locations in Orangeburg, Spartanburg, Charlotte and Charlottesville, Va. The company also provides contract service to schools and businesses in each market.

See BUSINESS DIGEST, Page 30 ➤

Popper

Sewanee, The University of the South, has elected G. Mark Phillips, a partner in Nelson Mullins Riley & Scarborough’s Charleston office, to its board Phillips of trustees. Phillips earned a Bachelor of Arts degree from the Tennessee school in 1983. His litigation practice focuses on product liability. He has tried asbestos personal injury cases to verdict in 11 states and participated in asbestos personal injury trials in nine others. He has tried a number of product, construction and general liability cases in South Carolina and in other venues across the U.S. during more than 26 years of practice.

Nexsen Pruet has elected George Bullwinkel as a partner in the firm’s Charleston office. Bullwinkel, who will handle real estate, joins three other new partners and eight new associates in the firm’s statewide offices.

See People, Page 29

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28

www.charlestonbusiness.com

Feb. 24 - Mar. 9, 2014

The federal budget — better, but still bad

Following four consecutive years with budget deficits in excess of $1 trillion, the deficit for fiscal 2013 shrank to $680 billion. This year it should be $500 billion. It is tempting to conclude that the worst is over and budget problems will simply go away. Unfortunately, retiring baby boomers guarantee that will not be the Stephen D. case. Eventually the Slifer president and Congress still need to take action. But with budget deficits well in check for the next several years, nothing of consequence is going to happen until after the 2016 presidential election.

The projected deficit of $500 billion this year represents 3% of GDP, which equals its average over the past 40 years.

By 2016, the projected deficit once again begins to climb and reaches 4% of GDP by 2024, but that still does not appear to be ominous.

However, the Congressional Budget Office anticipates that the GDP will grow continuously from now until 2024.

That almost certainly is not going to happen. This expansion began in June 2009.

The longest expansion on record lasted exactly 10 years. For the economy to continuously grow through 2024 implies that this particular expansion will last a record-breaking 15 years. That is not a very good bet. If the economy slips into recession, revenues will decline, expenditures will rise, and the deficit and outstanding debt will grow accordingly.

The real problem for the budget deficit occurs beyond the 2024 forecast period. The long-range budget forecast done in September showed the budget deficit climbing to 6.5% of GDP by 2038, which is more than double its 40-year average.

The deficit explodes largely because the baby boomers are retiring. As each year passes, more and more of them begin to collect Social Security benefits and become eligible for Medicare. An aging population and the rising cost of health care will create budget problems for another 25 years. As a consequence, government spending is projected to reach 26% of GDP by 2038 compared to an average of 20.5% over the past 40 years. It has not been that high since the end of World War II. This sharp increase in spending is being driven by the major health care programs like Medicare and Medicaid, Social

Security, as well as interest payments on the public debt. All of those expenditures fall into the “mandatory” spending category. Indeed, such programs will climb to 14% of GDP, which is twice the 7% average of the past 40 years. In contrast, “discretionary” spending (including defense spending, highway construction, foreign aid, housing, education, and the like) will drop to just 7% of GDP, which will be the smallest share of the economy since the 1930s. To a large extent, that dropoff in discretionary spending reflects the impact of the sequester.

Every time the country runs a budget deficit, the Treasury must issue an equivalent amount of debt to finance it. If we have a $1 trillion budget deficit, the outstanding debt climbs by $1 trillion. That brings up an even bigger problem. Debt is projected to climb to 110% of GDP by 2038. Economists generally think a debt/GDP ratio of anything higher than 90% can be a problem for a variety of reasons. First, when the debt is that large, the government has far less flexibility to use tax and spending policies in the event of some unexpected challenge. Second, interest payments will become a progressively larger chunk of total expenditures. Third, there is some risk of a financial crisis — like Greece or Portugal or Ireland — if investors worry about the ability of the U.S. government to repay its debts. They could demand very high interest rates to compensate for that risk.

Somewhere along the line our policy makers in Washington must make significant policy changes. The problem is clearly on the expenditures side. The various entitlement programs like Social Security and Medicare are spiraling out of control. Congress could reduce Social Security benefits for wealthier recipients, gradually increase the retirement age to 68, and/or increase the payroll tax maximum from $117,000 to perhaps $150,000. They could also raise the eligibility age for Medicare to 68, cut back the generous benefits offered by Obamacare, and take other compensation into consideration before awarding judgments in malpractice suits. There is much that can be done to resolve these issues. What is needed is the will to do so. Unfortunately, given shrinking budget deficits for the next several years and the inability of our government to act other than in a crisis, it is hard to envision any action to address these issues prior to the 2016 election. cr bj

Reach economist Stephen D. Slifer at steve@numbernomics.com.

Feb. 24 - Mar. 9, 2014

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People in the News manager/staff architect; Emily Tinkler and Patricia Sy, project coordinators; Ryan Jennings, intern architect/construction administrator.

BANKING & FINANCE Hemingway

Hogg

Carlock, Copeland & Stair recently hired Matthew T. Hemingway and Suzanne E. Hogg as associates in the company’s Charleston office. Hemingway will focus on general liability, and Hogg will focus on general civil litigation.

Amy Foster Bower has joined the litigation practice in the Charleston office of Haynsworth Sinkler Boyd, where she will focus on personal injury defense as well Bower as business, financial, real estate and land-use litigation. She previously served as industry affairs assistant for the National Beer Wholesalers Association. Bower earned a law degree from the Charleston School of Law and was managing editor of the Charleston Law Review.

ARCHITECTURE

McGahey

Eric Wooten joined BNC Bank’s new location on East Bay Street as vice president. Wooten will be responsible for commercial banking, including real estate, Wooten commercial and industrial lending. Wooten has more than 34 years’ banking experience, including the last 24 years in the Charleston market.

Wooten holds an undergraduate business degree and an MBA from The Citadel.

CresCom Bank has promoted Ellen Cavanaugh to senior vice president.

Cavanaugh will continue as loan department manager, overseeing the commercial and consumer loan operations staff based out of the bank’s West Ashley branch. Cavanaugh joined CresCom Bank in 2008. Previously, she served as the loan-servicing manager at First Federal Savings and Loan.

First Citizens has hired John Douglass as commercial underwriter and vice president. Douglass has nearly 10 years’ financial services experience, previously serving as a relationship manager and credit analyst for Wells Fargo. An Atlanta native, Douglass holds a bachelor’s degree in business administration from the College of Charleston.

King

Greer

Tinkler

Sy

Jennings

Novus Architects Inc., which specializes in health care, recently hired several employees: Ann Wells McGahey, medical planner; Barrie Elizabeth “BB” King, interior designer; David J. Greer, project

Jamin Hukik, executive vice president at the West Ashley branch of CresCom Bank, has been selected to join the Federal Reserve Bank of Richmond’s Fifth District Payment Advisory Council through May 2016.

CresCom Bank recently hired April Hewett and Griffin Morrow. Hewett will work as a retail assistant at the bank’s West Ashley office. Hewitt previously served as Morrow the front office coordinator for international programs at the University of North Carolina at Wilmington. Previously, she worked as a customer service representative with Corning Credit Union in Wilmington, N.C., and the Navy Federal Credit Union in Charleston. Morrow joins Crescom’s retail mortgage group as a new mortgage

loan officer. Previously, Morrow spent nearly a decade in the bank’s commercial lending department. Morrow will operate out of the bank’s West Ashley branch.

He received a master’s degree in banking from Louisiana State University.

BB&T has promoted Maggi M. Bryant to vice president. Bryant, who joined the bank in 2005, is a mortgage loan officer in the bank’s Summerville branch at 904 N. Main St. She earned her bachelor’s degree in accounting from the College of Charleston.

CONSTRUCTION Ryland Homes has named Frank L. Finlaw vice president of land acquisitions for the Charleston/Myrtle Beach division.

Finlaw is a graduate of The Citadel with a Finlaw degree in civil engineering, and has more than 30 years’ experience with national homebuilders in acquisition and real estate development.

J. Musselman Construction Inc. has hired Robin Crider as a site manager to be primarily responsible for site coordination, management of budgets, schedules and construction teams. Crider has 21 years’ experience in commercial construction, previously working for Ruscon Construction and Mashburn Construction. Crider also has experience in real estate development.

Twin Rivers Capital has added Andy Mitwol as a development partner. Mitwol will be responsible for sourcing opportunities for both single-tenant and multi-tenant development projects in the Southeast including site acquisition and approvals from municipalities. Previously, Mitwol was an acquisitions manager in the Carolinas for a Florida-based pharmacy and grocery regional developer.

Mitwol also was an investment advisor for a boutique investment sales brokerage firm in Atlanta, representing retail developers and investors of both shopping centers and single-tenant properties. He is a graduate of the University of Florida, where he studied business administration and communications.

MARKETING & PUBLIC RELATIONS The Brandon Agency has hired Christie Calhoon as account manager in Charleston where she will be responsible for implementing strategy, creative and messaging on behalf of the agency’s clients.

HOSPITALITY & TOURISM Woodlands Mansion recently hired Christi Dangerfield Warthan as marketing director. The Charleston Southern University graduate previously worked as a civilian employee for both the Army and the Air Force. Most recently, she was special events coordinator for Northwood Baptist Church.

Victoria J. Luke has been selected as youth program coordinator at Magnolia Plantation and Gardens. Luke earned a master’s degree in parks, recreation and tourism management from Clemson University, where she also received an undergraduate degree in wildlife and fisheries biology. At Clemson, Luke taught a flora and fauna identification course in an outdoor classroom and a camping and backpacking course.

GOVERNMENT The S.C. Legislative Audit Council has elected Mallory Factor as council chairman. Factor also serves as the John C. West Professor of International PoliFactor tics and American Government at The Citadel; president of Mallory Factor Inc., an independent merchant bank and financial consultancy; and he is a member of several corporate and not-for-profit boards. Factor is the co-founder and host of The New York Meeting, a gathering of elected officials, journalists, business leaders and conservative authors in NYC, and The Charleston Meeting, held in South Carolina. Factor also is the New York Times best-selling author of Shadowbosses. His latest book, Big Tent, will be released by HarperCollins in April.

ENGINEERING Jill Meyer of DWG Inc. Consulting Engineers recently earned her South Carolina professional engineer license.

DWG also has promoted Brian Bates to vice president of operations. Meyer holds a Bachelor of Science in mechanical engineering from the University of Cincinnati. Bates holds a Bachelor of Science in electrical engineering from Western Michigan University.

HEALTH CARE Taryn Dominguez has joined Care For Life Inc., a locally owned, geriatric care management and in-home care agency.

Submit items to editorial@scbiznews.com with “People,” “Business Digest” or “Hot Properties” in the subject line. Publication is subject to editorial discretion.

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Feb. 24 - Mar. 9, 2014

Business Digest able in-house for customers to browse.

Kinslow plans to hold special events and offer classes at the shop for all styles of homebrewing.

Robert Ivey Ballet receives grant from S.C. Arts Commission

Nucor Steel Berkeley partners with Daniel Island Community Fund

Employees of Nucor Steel Berkeley recently partnered with the Daniel Island Community Fund to deliver 60 new computers to Cainhoy Elementary and Middle School in Berkeley County. The 60 new Dell computers will help the school to update its computer lab.

Homebrew supply shop opens in Charleston

Charleston’s first homebrew supply shop, Yeast – Everything Homebrew, opened this month at Belle Station Boulevard in Mount Pleasant. The shop offers brewing equipment, supplies, kits and ingredients and provides support through demonstrations and advice for beginners. A library of owner and Mount Pleasant resident Peter Kinslow’s personal collection of homebrewing books also will be avail-

The Robert Ivey Ballet was recently awarded a $1,278 grant by the South Carolina Arts Commission for the fiscal year to help the organization continue to provide quality classical ballet performances on public stages and to provide exposure to classical ballet for school audiences.

Several companies, organizations and individual donors are helping the Robert Ivey Ballet meet its goal to match the commission’s grant with local dollars.

Ashton Woods Homes named most trusted builder

For the second consecutive year, Ashton Woods Homes has been named Most Trusted Builder in America, according to a Lifestory Research study. The Lifestory Research 2014 Most Trusted Builders in America study evaluated the attitudes of 43,200 new-home shoppers and tracked 133 home builder brands. It found that three out of four customers think trust is paramount in choosing a new-home builder.

The Brandon Agency wins 59 ADDY Awards

The Brandon Agency received 59 ADDY awards, including the Best of Show award, at the annual ADDY awards ceremony in Myrtle Beach on Jan. 25. This year, The Brandon Agency received 13 Gold, 25 Silver and 19 Bronze ADDY Awards. The company also received a Special Judges Award for its Powering South Carolina Button logo and a Best of Show Award for its video, Surf City Surfboard Shaper – The Making of a Surfboard. The agency received ADDY awards for work created on behalf of clients such as Horry Telephone Cooperative, Farmers Telephone Cooperative, Myrtle Beach Golf Holiday, Beaufort Chamber of Commerce, Elms Digestive, Williams Knife Co., Glory Foods, MyrtleBeachHotels.com and Golf Academy of America.

First Choice remains highest-ranked Medicaid plan

First Choice, by Select Health of South Carolina, continues to be the highestranked Medicaid health plan in the state, and now ranks as one of the top 40 Medicaid health plans nationally, according to new information released by the National Committee for Quality Assurance. The organization’s Health

Insurance Plan Rankings 2013-2014 Medicaid put the First Choice plan at No. 40 in the nation, climbing from No. 42 in 2012-13. The committee uses three main reporting categories for insurance plan rankings: consumer experience, prevention and treatment.

From left, Area 12 Governor Vito Scarafile, Dollie Ritchie, Chris Wheeler, Ike Archibald, Sudie Archibald, Charles Schuster, Theresa Dinius, Pat Buckley and current Dolphin Club President, Kraig Keyes.

Toastmasters Club attends Toastmasters Leadership Institute

The Dolphin Toastmasters Club recently attended the Toastmasters Leadership Institute hosted by the Toastdawgs Toastmasters Club at The Citadel.

Hot Properties The following commercial real estate transactions were recently completed in the Charleston area. For weekly updates on commercial deals, see the Hot Properties feature every Monday in the Daily Journal email or online at www. charlestonbusiness.com. To submit items for the feature, send email to dailyjournal@ scbiznews.com.

Chad Yonce of Southeastern Management Group represented the seller, Ameris Bank, in the $300,000 sale of 3.42 acres of vacant commercial land at 8421 Patriot Blvd. in North Charleston to the buyer, North Charleston Church of Christ.

Chad Yonce of Southeastern Management Group represented the seller, Meeting Street Properties LLC, in the sale of 137 Calhoun St. in Charleston to the buyer, Newington Associates L.P., for $850,000.

Chad Yonce of Southeastern Management Group represented the seller, 350 King Land Co. LLC, in the sale of 350 King St. to buyer Newington Associates L.P. for $1,385,000.

Will Sherrod of Lee & Associates Charleston represented the landlord, GP Land LLC, in the lease of 9,548 square feet of office

and warehouse distribution space at 2209 Mechanic St. in Charleston to the tenant, TalkTools. Chad Yonce of Southeastern Management Group represented the tenant.

Trey Lucy and Blair Belk with Belk Lucy represented the landlord of the Shops of Mt. Pleasant in leasing 1,200 square feet to a smoothie and juice bar concept, which plans to open in the spring.

Blair Belk and Trey Lucy with Belk Lucy represented the landlord of New Market Centre in the lease of 4,200 square feet at 1145 Johnnie Dodds Blvd. in Mount Pleasant to tenant Iron Tribe Fitness.

Robert H. Nuttall Jr. of Lee & Associates Charleston represented the seller, Napanee LLC, in the $940,000 sale of a 4,780-square-foot office building at 1011 Lake Hunter Circle in Mount Pleasant to Premier Patient Advocates LLC. Brent Case and Tradd Varner of Coldwell Banker Commercial Atlantic represented the buyer.

Robert Pratt at Re/Max Pro Realty represented landlord P.R. Properties of Summerville LLC in the lease of a 2,584-squarefoot condominium suite at 9225 University Blvd. in North Charleston to tenant Dr. Jeffrey Selman LLC.

Robert Pratt of Re/Max Pro Realty represented the seller, Tricom Associates LLC, in the sale of a 50,765-square-foot building at 219 Varnfield Drive in Summerville to buyer Just Plane Properties LLC. Todd P. Garrett of Avison Young represented landlord R.J. Semm LLC in the lease extension of a 26,000-square-foot office-warehouse at 1850 Ashley River Road in Charleston to G&S Supply. Mike Ferrer of Lincoln Harris represented the tenant.

Mark Mattison with Colliers represented the landlord, GPF-Portside LLC, in the leasing of 4,054 square feet of office space at 421 Wando Park Blvd., Suite 230, in Mount Pleasant to tenant Sabal Homes. Gordon Geer of Lee & Associates Charleston represented the tenant.

Student Transportation of America Inc. Mark Erickson of Cushman & Wakefield Thalhimer represented the tenant.

Mark Erickson and Philip Owens of Cushman & Wakefield Thalhimer represented the seller, 2745 Investments LLC, in the sale of 2745 West 5th North St. in Summerville to Carr Properties LLC. Carr Properties purchased the 32,000-square-foot light industrial property for $775,000 for development of a self-storage facility.

Charles Carmody of CBRE Carmody LLC represented the landlord, 304 Meeting Street LLC, in the lease of 1,071 square feet of office space at 306 Meeting St. in Charleston to LEO Events SC LLC. Len Meyer of The Peninsula Co. LLC represented the tenant.

Gordon Geer of Lee & Associates Charleston represented the seller, Wells Fargo, in the sale of 31 residential lots located in the White Gables subdivision in Summerville to buyer Mungo Homes Coastal Division LLC.

Justin Schad of Faison & Associates LLC represented the landlord, Patriots Plaza Inc., in the lease of 863 square feet of retail space in Patriots Plaza Shopping Center in Mount Pleasant to StayMobile. Len Meyer of The Peninsula Co. LLC represented the tenant.

Reid Davis and Pete Harper of Lee & Associates Charleston represented the landlord, GPF-885 IPD LLC, in the lease of 5,631 square feet of office space at 885 Island Park Drive on Daniel Island to tenant

Richard Morse of Palmetto Commercial Properties Inc. represented the landlord, Rica Properties LLC, in the lease of an office at 533 Rutledge St., Suite A, in Charleston to tenant Ginger Brewton Interiors LLC.

Submit items to editorial@scbiznews.com with “People,” “Business Digest” or “Hot Properties” in the subject line. Publication is subject to editorial discretion.

Viewpoint: Our Opinion

General Assembly shoots first without asking enough questions

T

he gun law recently passed by the S.C. General Assembly and signed by Gov. Nikki Haley puts another burden on restaurants and bars by forcing them to take sides on a politically divisive issue for little or no return.

The law allows concealed carry permit holders to bring firearms into an establishment that serves alcohol as long as they don’t drink, something not allowed by the previous version of the carry law. Businesses can disallow firearms in their establishments by putting up signage.

We’re not going to wade into the debate over laws that allow citizens in South Carolina to carry firearms. Aside from the application and background checks that concealed carry permit owners must go through, proponents argue that it’s safer for wouldbe criminals to not know who might be carrying at any particular place and time.

But if one benefit of the concealed weapons law is to make sure criminals don’t know if they’re picking on the wrong law-abiding citizen, then making businesses put up a sign saying “No Concealed Weapons Allowed” has the opposite effect.

Additionally, negative signage also detracts from the ambience of patronizing local eating establishments. It’s doubtful that high-end restaurants in Charleston will carry signage telling patrons they can’t do something, especially if that signage competes with other details that are thoughtfully interwoven into branding.

The law should not have given restaurants a choice. Just tell businesses that if you want to open in South Carolina, you have to allow people to carry guns.

Sure that’s taking the decision away from business owners, but lawmakers have done that already by requiring them to take a stance on gun laws when they’d rather just be doing business.

Correction In the Feb. 10-23 edition, the bank branch scheduled to open in the Ingleside development was misidentified. The development will soon see a Bank of South Carolina branch.

Views, perspectives and readers’ letters

Charleston Harbor funding key to state’s economic future T

wo weeks ago the Maritime Association of S.C. celebrated its 88th year of existence — an existence that is tied directly to Charleston Harbor and the $60 billion in goods that travel through it every year.

But MASC is not the only entity impacted directly by Charleston Harbor. Its existence has a profound impact on our entire state economy — accounting for one in 11 jobs and $12 billion in state wages with an overall $50 billion annual economic impact. Whether moving automobiles, chemicals, D. Loy heavy machinery, agriculture, raw Stewart Jr. materials, furniture or appliances, an efficient, effective and competitive Port of Charleston with a deep harbor is a vital component in the supply chain and operations of these industry sectors.

As a trade association whose mission is to promote, protect and advance our state port system, we would argue that Charleston Harbor is our state’s most important natural asset — and that mainPam taining its depth while endeavorZaresk ing to deepen it are two of South Carolina’s most important economic development priorities.

And let’s be clear — maintaining its current depth and deepening Charleston Harbor are two separate but intertwined projects, both essential to South Carolina’s current and future prosperity. The recent Omnibus Appropriations Bill had funding for both of these projects ($14.8 million and $1.2 million, respectively), which is why its passage was so significant.

While the Port of Charleston boasts the deepest water in the Southeast at 45 feet, this depth must be continually maintained, to the tune of $15 million per year, in order to simply remain competitive. These funds are part of the annual appropriation process and come out of the Harbor Maintenance Trust Fund, which is populated from fees collected at various ports like the Port of Charleston. It is fully funded by these fees and not by any other revenue source.

At the same time, a 50-foot depth is being studied to meet future shipping demands imposed by a new generation of post-Panamax ships that are now part of the supply chain. The importance of this study cannot be overstated. A deeper channel will facilitate a huge increase in new cargo traversing our docks, resulting in waves of economic growth to every corner of our state. While not an annual appropriation, nor allocated from the Harbor Maintenance Trust Fund, money to continue the feasibility study is vital since it must be completed and approved before deepening can move forward.

Make no mistake — these are federal responsibilities. While in some cases a state match is required (as with the study), the General Survey Act of 1824 established the U.S. Army Corps of Engineers’ role as the agency responsible for our country’s navigation system.

As such, Congress must fund the Army Corps if these projects are to come to fruition. Simply put, our Port and our economy will dry up without these Army Corps appropriations.

The S.C. State Ports Authority, the maritime business community and business interests across the state have gone to great lengths to help educate our congressional delegation about the importance of these initiatives, where the funding comes from and the need for their unified support. Thankfully, a majority of our delegation — including Sen. Lindsey Graham, Rep. Jim Clyburn, Rep. Joe Wilson, Rep. Mick Mulvaney, Rep. Trey Gowdy and Rep. Tom Rice — demonstrated their support for our port and their commitment to our state by voting in favor of the recent Omnibus Appropriations Bill that included funding for both of the aforementioned projects.

It’s that type of support and leadership that prompted the Maritime Association of S.C. to honor Sen. Graham and Rep. Clyburn, previously, at our annual gala. They clearly understand the huge role the Port of Charleston plays in attracting new capital investment to South Carolina, $5.4 billion last year, as well as its daily operational impact.

It’s tremendously encouraging that our delegation members from the Upstate, Pee Dee and Midlands all placed port funding high on their priority list and voted to invest in South Carolina’s future rather than vote to jeopardize it.

Those who voted in favor of the spending bill should all be commended. Hopefully our entire congressional delegation will follow suit in fiscal year 2015 and beyond, and realize the Port of Charleston is both our past and our future.

The Maritime Association of S.C. is a nonprofit trade association whose mission is to promote, protect and advance South Carolina’s port system and associated businesses. D. Loy Stewart Jr. is president of Detyens Shipyards and is the 2014 chairman of MASC. Pam Zaresk is the president of MASC.

We want to hear from you Write: Andy Owens, Managing Editor Charleston Regional Business Journal, 1439 Stuart Engals Blvd., Suite 200 Mount Pleasant, SC 29464 E-mail: editorial@scbiznews.com Comment on the Web: www.charlestonbusiness.com

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