Issuu

NEWSMAKERS December 24, 2018 | www.CharlestonBusiness.com | Vol. 24, No. 27

THE YEAR IN NEWS A look back through 2018 in the Charleston area

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LOWCOUNTRY NEWSROOM Executive Editor - Andy Owens aowens@scbiznews.com • 843.849.3142 Senior Copy Editor - Beverly Barfield bbarfield@scbiznews.com • 843.849.3115 Staff Writer - Liz Segrist lsegrist@scbiznews.com • 843.849.3119 Staff Writer - Patrick Hoff phoff@scbiznews.com • 843.849.3144 Editor, Custom Publishing Division Steve McDaniel smcdaniel@scbiznews.com • 843.849.3123 Assistant Editor, Digital Media Ashley Sprouse asprouse@scbiznews.com • 843.849.3145 Senior Graphic Designer - Jane James jjames@scbiznews.com • 843.849.3118 Graphic Designer - Andrew Sprague asprague@scbiznews.com • 843.849.3128 Assistant Graphic Designer - Jessica Stout jstout@scbiznews.com • 843.849.3113 Assistant Graphic Designer - Joel Travis jtravis@scbiznews.com • 843.849.3124

MAKING NEWS ALL YEAR

here did the year go? Excellent question! We have the answer, and you’re holding it in your hands. Newsmakers continues to be a chance for us at the Charleston Regional Business Journal to step back and look at the news that raced across days, weeks and months, along Andy Owens, with the data that Executive Editor gave it context. We’re nearing the second decade of the 2000s, and things look bright if you’re a business owner in one of the primary markets in the Lowcountry. You’ll see throughout these pages that we con-

UPSTATE NEWSROOM Editor - Ross Norton rnorton@scbiznews.com • 864.720.1222 Staff Writer - Teresa Cutlip tcutlip@scbiznews.com • 864.720.1223 LOWCOUNTRY ACCOUNT EXECUTIVES Senior Account Executive - Robert Reilly rreilly@scbiznews.com • 843.849.3107 Account Executive - Sara Cox scox@scbiznews.com • 843.849.3109 Account Executive - Melissa Verzaal mverzaal@scbiznews.com • 843.849.3104

South Carolina’s Media Engine for Economic Growth President and Group Publisher Grady Johnson gjohnson@scbiznews.com • 843.849.3103 Vice President of Sales - Steve Fields sfields@scbiznews.com • 843.849.3110

t is our pleasure to introduce Newsmakers, a collection of the Lowcountry’s most impactful individuals and headlines of the past year. For over 25 years, Choate has lived, worked, and played in the great state of South Carolina. Over this time we have developed many strong relationships and had the

n our business, we strive to provide the financial security and solutions our members need to focus on other aspects of their lives. South Carolina Federal Credit Union has been a loyal, local partner in this region for over 80 years, providing one-of-a-kind service to 135,000 members. Connect with South Carolina

ABOUT THE COVER

CUSTOM MEDIA DIVISION Director of Business Development Mark Wright mwright@scbiznews.com • 843.849.3143 Business Development Executive Elizabeth Hodges lhodges@scbiznews.com • 843.849.3105

Federal Credit Union for products, services and financial literacy through family relationships, employers, geographic areas, or member associations. At $1.8 billion strong, our member-owned cooperative

proudly operates 20 offices in four major markets: Charleston, Columbia, Georgetown and FlorenceDarlington. It is our privilege to be the trusted financial institutions to many readers and introduce this list of 2018 Newsmakers — you have certainly embodied and made the most of our tagline: Less time banking, more time living!

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Events Director - Kathy Allen kallen@scbiznews.com • 864.720.1225

Accounting Manager - Vickie Deadmon vdeadmon@scbiznews.com • 803.726.7541

good fortune to build some of our region’s most critical and challenging projects.

While we are excited to expand into new horizons in the coming year, we will always remain true to the core values and relationship-based approach that have defined our past success. We look forward to sharing a bright and prosperous future with you in 2019.

Green treefrog (Hyla cinerea) taken at Caw Caw Interpretive Center in Ravenel. (Photo/Kim McManus)

Creative Director - Ryan Wilcox rwilcox@scbiznews.com • 843.849.3117

Audience Development & IT Manager Kim McManus kmcmanus@scbiznews.com • 843.849.3116

session or two. As you put the finishing touches on the year, take a moment while the coffee is brewing and the kids are playing. Thumb through these pages, and revel in the fact that we’re a vibrant community that doesn’t mind airing our disagreements. We are facing growth and challenges, culturally and financially. But the push and pull of growth can give us the resiliency to weather a storm. We’re talking about issues before they become insurmountable problems. Ten years ago, we got punched, and we had no idea that today we’d be talking about how to handle thousands of new jobs, thousands of new residents and loads of opportunity. And as you look through Newsmakers, I think you’ll agree with me when I say: I like this better.

FROM OUR SPONSORS

MIDLANDS NEWSROOM Editor - Melinda Waldrop mwaldrop@scbiznews.com • 803.726.7542

tinue to struggle with how to deal with our massive growth, but I would like you to think about something as we continue the debate (discussion) over traffic, affordable housing, education and training — and how to pay for it all: The alternative is much worse. Recall 2008 and 2009. Ten years ago, we didn’t know what was happening. Things were twisting and turning in the global financial markets, and that gutted our ability to control our own destiny. Businesses saw demand for products and services disintegrate. Workers left to find something — anything — and many never returned. Yes, you’re now having trouble finding workers to fill your jobs. You may have to offer some things you haven’t in the past to keep those workers happy, including more pay, remote working and possibly a yoga

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NEWS MAKERS 2018

From the 1.8.18 Issue

Gibbes’ $120M economic impact ripples throughout Lowcountry By Patrick Hoff

An economic impact study by The Citadel’s School of Business Administration found the Gibbes Museum of Art has an economic impact of $120 million on the Charleston region, based on financial records from the museum and surveys of patrons. The money is spent by museum patrons before, during and after their visit to the Gibbes, as well as money spent by the museum and its employees. (Photos/Brennan Wesley for The Gibbes Museum of Art)

study by The Citadel’s School of Business Administration found that The Gibbes Museum of Art has an economic impact of $120 million on the Charleston region, surpassing expectations of museum officials. The study also found that the renovation of the museum, completed in 2016, had an economic impact of $30 million on the region based on construction costs, architectural design of the museum, developer and consulting fees, and relocation of artwork during the renovation. “The arts make money, and anybody who says otherwise is incorrect,” said Angela Mack, executive director of the museum. After the school conducted an economic impact study of the Charleston Symphony Orchestra in 2015, the museum contacted The Citadel following its renovation and applied to be the next nonprofit the school studied. “These studies are pretty cut-andpaste in terms of the methodology for doing them,” said Russell Sobel, a professor who assisted with the framework of the study. “The students did have to do some extensive surveys of patrons and examination of the budget.” Mack said she was surprised by the level of impact the museum has. “Given the size of our budget and the number of people that the institution saw annually before we reopened to the public after the renovation, I assumed our impact would be somewhere around $25 million to $30 million,” she said. “And when they came back with the $120 million, we were just blown away.” Another surprise, Mack said, was that the museum will be able to use the multiplier used in the study to calculate economic impact to continue monitoring the museum’s impact in years to

otherNEWSMAKERS After five years of fundraising and construction, the 16-suite Fisher House Charleston opened at 150 Wentworth St., less than 2 miles from Ralph H. Johnson VA Medical Center. The nonprofit Fisher House Foundation builds guesthouses for families of veterans who are receiving care at VA medical centers around the country. The organization has built more than 70 homes across the country to assist veterans and their families; Charleston’s is No. 73. The first families stayed at Fisher House Charleston in early January.

4 Charleston Regional Business Journal | Newsmakers

Fisher House Charleston, located at 150 Wentworth St. in downtown Charleston, is one of more than 70 Fisher Houses built by the Fisher House Foundation. (Photo/ Kim McManus)

come, which Mack said the museum can use when applying for grants. Students in The Citadel’s class used the Gibbes’ annual budget and surveys of museum patrons to find the economic impact. The Gibbes’ budget for 2017 was $2.8 million, up from $2.2 million in 2015 before the renovation. The average museum patron spent approximately $1,188 on food, lodging, transportation and recreation in the Charleston area per visit. Approximately 57% of patrons traveled more than 50 miles to visit the Gibbes, the study said, and 70% of visitors came from beyond the surrounding tri-county area. Mack said the museum tries to make sure it caters to both patrons who come to the Gibbes to be immersed in Charleston culture and learn more about the Lowcountry, as well as those living in the Lowcountry who want a window to experiences beyond Charleston. “To me, what the study was able to reinforce is this relationship and this balance that we try to achieve every year with our programming between the visitors who come to Charleston and the people who live here,” she said. With the study in hand, Mack said the museum is now implementing a strategic plan that it began writing while the renovation was underway. The primary purpose of the 10-year plan, Mack said, is to focus the museum’s efforts on building its endowment to support larger exhibitions. She added that the museum is committed to continuing its work in impacting the Charleston community both economically and culturally. “The visual arts can have a huge impact on the way people think and absorb information about ... areas that are important to our community,” she said. CRBR

NEWS MAKERS 2018

From the 1.22.18 Issue

WestEdge poised to recruit medical companies By Liz Segrist

plan from the early 2000s to transform part of Charleston’s Westside neighborhood into a hotbed for life sciences firms, medical device companies and innovative medical research is now in motion. The large-scale development known as WestEdge is in the works on land bounded by Lockwood Boulevard, Fishburne Street, Hagood Avenue and Spring Street. The site sits along the Ashley River. A few hotels and office buildings, Brittlebank Park, Joseph P. Riley Jr. Park and expansive gravel parking lots dot that part of the Westside today. WestEdge is the brainchild of the Medical University of South Carolina Foundation and the city. They plan to redevelop much of the site — formerly a defunct landfill that was filled in the early 1970s — into a bustling hub of medical companies, commercial spaces and residences. They hope a mix of apartments, condominiums, restaurants, shops and office spaces in a walkable community, coupled with its proximity to downtown amenities and the waterfront, will entice medical companies to launch Charleston operations. MUSC President Dr. David Cole said the region needs to attract and develop more knowledge-based companies in the bioscience sector to “get to the next level.” “The WestEdge is an engine for building the knowledge-based economy in this region,” Cole said. Three mixed-use buildings are part of the first phase; of those, one is complete and two are under construction. Those projects will yield apartments, offices, laboratory spaces, shops, restaurants, a grocery store and parking garages. Three new streets are also under construction within the project. WestEdge

Rendering/WestEdge Foundation

In January, construction crews cleared a path for new roads and for 22 WestEdge, a commercial project designed for medical companies and research labs. (Photo/Kim McManus)

The eight-story 22 WestEdge will be a mostly commercial building. (Rendering/WestEdge Foundation)

10 WestEdge, which is under construction along Lockwood Boulevard, will have apartments, parking, shops, restaurants and a Publix grocery store. (Rendering/WestEdge Foundation)

Street will act as a central thoroughfare, according to developers. WestEdge encompasses 60 acres of city-owned land, MUSC Foundation-owned land and some private par-

cels, such as the Charleston Marriott. The private land will be considered part of the WestEdge area but not part of the redevelopment plans. The MUSC Foundation and the

otherNEWSMAKERS Eric Bedingfield knows firsthand the pain of the opioid crisis facing the state. Bedingfield, a former state representative from Greenville, lost his 26-year-old son to opioid abuse in 2016. He turned grief into action when he was appointed to lead the S.C. House Opioid Abuse Prevention Study Committee, helping shape a bill that would require the Department of Health and Environmental Control to develop a voluntary non-opioid directive form allowing a person to deny or refuse the administration or prescription of a controlled substance that contains an opioid.

6 Charleston Regional Business Journal | Newsmakers

city formed the nonprofit WestEdge Foundation to implement the project’s master plan and sell some city- and MUSC-owned land parcels to private developers. The WestEdge Foundation has the option to sell about 26 acres. In addition to the first three mixeduse buildings in the works, 12 more projects could be developed over the next 10 to 15 years, said Michael Maher, CEO of the WestEdge Foundation. Maher worked for the city for more than a decade on the project before becoming CEO of the nonprofit leading the development. Planners see WestEdge as an extension of the existing medical district in downtown Charleston. They want to build on the Lowcountry’s research and hospital presence by recruiting biotechnology, medical device and life sciences firms into WestEdge. “We can develop a biotech research cluster in association with the medical district here in Charleston. ... We believe we can help to reinvigorate that component of our economy,” Maher said. City and MUSC leaders envision a cluster of health care companies operating in WestEdge and their employees living in nearby apartments or condominiums. They want to mirror the success seen in Raleigh-Durham’s Research Triangle Park in North Carolina. Cole said he wants to see bioscience firms recruited into the city with the same fervor that manufacturing companies are sought after by the state. Cole stressed that having a diverse set of researchers and companies working close together benefits medical outcomes. “The best science and the best innovation does not come in isolation,” Cole said. CRBJ

NEWS MAKERS 2018

From the 2.5.18 Issue

State of the cities By Liz Segrist and Patrick Hoff

North Chas

CHS

he habitual flooding of some homes, businesses and streets has pushed Charleston to seek a new funding source to battle drainage problems. Charleston Mayor John Tecklenburg said in his State of the City address in January that he wants to see a change in state law to allow municipalities to use tourism revenue to fund flood improvement and drainage projects. Under current law, revenue from state accommodations taxes, local accommodations taxes and local hospitality taxes can fund a variety of tourism-related initiatives, such as festivals, roads, convention centers and marketing efforts. Tecklenburg said the city’s No. 1 focus should be on battling flooding issues. Rising sea levels and new developments exacerbate the flooding prob-

lems the city already faces from high tides, storms and hurricanes, he said. High water often makes roads impassable and damages homes and businesses. “For more than 300 years, the people of Charleston have lived with the threat of hurricanes, high tides and flooding,” he said. “But now, with rising seas, a history of ill-advised development in some areas, and three major flood events in three years, we simply must make flooding and drainage our city’s top long-range priority.” Tecklenburg said funds generated by the 6 million tourists expected to visit Charleston in 2018 would help pay for more drainage improvements. Charleston collected nearly $23 million in accommodations taxes the previous fiscal year, according to state tourism data. CRBJ

orth Charleston Mayor Keith Summey focused his State of the City address on the city’s continuing growth and how much the city has changed since he became mayor in the mid-1990s. “Our city is a modern, diverse community with the quality of life increasing year after year,” he said in a video address. Summey highlighted improvements that have been made in the city, including the transformation of parts of the former naval shipyard into the public Riverfront Park, and the private investment that has turned The Bend into a popular event venue on 17 acres along the Ashley River. Summey also noted the number of small businesses that have opened in or relocated to North Charleston. “Our large employers are essen-

tial, but it’s the small businesses in our community that makes us great,” Summey said. “Remaining inclusively business-friendly, North Charleston is enabling the little guy to start a business here, provide for their family and grow.” Summey pointed to Park Circle as an example of how a “deliberate approach with key investments in the community” can attract business and revitalize an area. The mayor said he wants to see the revitalization continue moving south; he said North Charleston is making investments in that area, including a partnership with Metanoia to repurpose the former Chicora Elementary School on Success Street. “I have great hope for the future of North Charleston, and working together, it will be even brighter,” Summey said.

otherNEWSMAKERS College of Charleston President Glenn McConnell retired over the summer after four years leading the school. McConnell, 70, said in a statement that his age and health played a “significant role” in his decision. “I did not come to this decision lightly, but I know in my heart that it is the right thing to do,” he said. The college’s board of trustees named Andrew Hsu, currently the provost and executive vice president for academic affairs at the University of Toledo in Ohio, as McConnell’s successor. A start date for Hsu has not been set. Glenn McConnell

8 Charleston Regional Business Journal | Newsmakers

CRBJ

NEWS MAKERS 2018

From the 2.19.18 Issue

Work begins on Charleston Harbor deepening By Liz Segrist

harleston Harbor was last deepened more than 14 years ago, when dredges dug into the harbor bottom and added 5 more feet, creating today’s 45-foot depth. S.C. Ports Authority President and CEO Jim Newsome, who was working for a shipping company at the time, said the industry generally did not expect ship sizes to get much bigger than 5,000 TEUs, a common industry measurement representing 20-foot-equivalent containers. Cargo ship capacities have now more than doubled. “We’re sitting here ... years later, talking about ships of 22,000 TEUs. ... Ship sizes progressed fast,” Newsome said. “The ports are playing catch-up in a sense to that.” The Port of Charleston is investing $2 billion into deepening Charleston Harbor, building a terminal in North Charleston and upgrading Wando Welch Terminal in Mount Pleasant, among other projects, to handle the ocean carriers’ deployments of big ships. The harbor deepening — with a goal of reaching 52 feet by the

end of the decade — is at the center of that flurry of infrastructure enhancements. That depth will allow more and larger ships to use the port terminals

without having to wait for high tide. Dredges entered Charleston Harbor in early 2018 to begin the process of deepening the entrance channel to 54 feet and the harbor to 52 feet.

The S.C. Ports Authority said it will continue pushing the Trump administration to fund the federal government’s portion of the harbor deepening project. (Photo/Provided)

10 Charleston Regional Business Journal | Newsmakers

CRBJ

The Army Corps awarded Great Lakes Dredge and Dock Co. the first dredging contracts for the Charleston deepening project. (Photo/Provided)

otherNEWSMAKERS The Medical University of South Carolina and Clemson University unveiled the prototype of a safer, more ergonomic operating room based on two years of research at the schools. The prototype will allow researchers to perform simulations and test the design. The project is being funded by a four-year, $4 million grant from the Agency for Healthcare Research and Quality. MUSC plans to use the new design in its North Charleston ambulatory pediatric campus, opening in the spring.

Future contracts include achieving 52-foot-depths up the Wando River to the Wando terminal and up the Cooper River to the new Hugh K. Leatherman Sr. Terminal under construction in North Charleston. From there, the Cooper River will be deepened to 48 feet up to the North Charleston Terminal. Officials at the port, the Army Corps of Engineers and numerous politicians have been working for nearly a decade on the harbor deepening project. Work included studying the feasibility of the project, obtaining regulatory approvals, determining environmental mitigation plans, securing federal authorization and fighting to secure the federal money needed for the more than $550 million project. The state and federal government are to split the cost. The state has set aside $350 million to date, while the federal government has set aside $108 million for the work, all of which came from the Army Corps’ Work Plan. The ports authority has said it hopes for funding from the Trump administration in 2019.

Clemson University and the Medical University of South Carolina have spent almost three years developing a safer operating room for doctors and patients. (Photo/ Clemson University)

NEWS MAKERS 2018

From the 3.5.18 Issue

March 5 - 18,

2018 • www.char

Special section on S.C.’s fast-growing one of counties. Page 23

Berkeley County population surge squeezes infrastructure

lestonbusiness.com

SPAWAR hopes effor Berkeley County Growth Report

By Patrick Hoff

phoff@scbiz

Location can indicate health

INSIDE Upfront ................... SC Biz News Briefs ............. 2 ................ 3 Best Advice ................... ....... 4 In Focus: Real Estate List: Homebuilder ..........35 s ............ 40 At Work ................... ...........43 Peer to Peer ................... .... 46 Hot Properties .................... 48 Viewpoint ................... ....... 49 Day in the Life .................... 50

No. 6 • $2.25

First Capital relocates HQ to Charleston

New CEO

Medal of Honor Museum Foundation’s director takes on executive role. Page 12

Labor diversity

Companies find diverse workforce helps increase the bottom line. Page 8

Where you live can determine average health. Page 2

Volume 24,

t lures in nontradit ional companies

nies and academia news.com ment of Defense to participate in Departpace and Naval contracting said. partnership Warfare Systems ter Atlantic between SSC . The project, a CenUnder is launching Atlantic and a project that Pacific, is being led by aims to help SSC will be this process, a third-party Bill Deligne, SPAWAR do executive director contracted company more efficiently. deputy of research traditional and to manage a consortium “The Informatiofor SPAWAR. The Informatio who will conduct nontraditional contractors n Warfare Research ect is a structure n Warfare Research is meant to encourage Proj- the research for time instead SPAWAR all nontraditional Project place with industrythat we’re trying to put of waiting for in request compa- do that’s going to a particular for proposals. research in a allow us to more rapid manner,” Deligne See SPAWAR, Page 13

FINAN

CING RE VITALIZA TION A federal program that provides tax credits to buildings survived developers for the congression al tax code overhaul. renovation of historic renovation projects Proponents say would not happen such without the program. Page 6

The historic Cigar

Factory, located at East Bay and major renovations Columbus streets and now houses in downtown Charleston, offices, restaurants underwent and event space. (Photo/Provided)

By Patrick Hoff

phoff@scbiz news.com

he three banking Charleston will companies based in as First Capital soon become a quartet Bancshares Inc. its headquarte moves rs to the Holy City. First Capital founded in 1999 is not a new bank — it was rinburg, N.C., and has two branches in Lauand Bennettsvil John Russ, vice le, respectively chairman of of directors, the bank’s board. said the corporate move was a great investment headquarters himself and opportunity his partners, who had wanted for bring a community to “As we looked bank to Charleston. around at the opportunities different and one (bank) versus weighed opening a new acquiring an we found First existing one, Capital with a CEO nearing retirement,” that was Russ said. He added that the bank’s shareholde expressed an rs have interest in growing didn’t have the bank but the graphically or means to do so, either geofinancially. Russ tution’s new said the instileadership lion in the company, is investing $30 milbusiness associates. raised from friends and See BANK, Page

By Liz Segrist

Revving up

Volvo getting ready to roll with mass hiring of workers for Berkeley County plant. Page 28

The Nexton Parkway Interchange along Interstate 26 in Summerville has now been completed. (Photo/Provided)

erkeley County has changed from a mostly rural bedroom community into a growing region with new housing developments, growing congestion and international companies. Tim Callanan, Berkeley County’s deputy supervisor of administration, said the county’s ongoing transformation is apparent, particularly compared with when he moved there 20 years ago. “It has been fascinating to see the changes,” he said. “I never thought we would be in the national spotlight like we are now.” The arrival of Volvo Cars’ automotive plant has played a role in that. The Volvo campus, which began producing the S60 this year, will employ 4,000 people and produce two vehicles by 2022.

If the effect of Volvo’s opening is similar to that of other S.C. manufacturers, like BMW Manufacturing Co. in the Upstate, the car campus will bring new residents, stores, housing and suppliers to the surrounding communities over the next several decades. The overall growth of the Lowcountry has driven up Berkeley County’s population to more than 210,000 in recent years. The county gained more than 8,000 residents between mid-2015 and mid-2016, U.S. Census Bureau data show — matching the combined growth of Charleston and Dorchester counties. “We have continued to grow since the economic downturn, and now we have just exploded,” Berkeley Chamber of Commerce CEO Elaine Morgan said. Summerville Mayor Wiley Johnson

otherNEWSMAKERS Manning Hughes lives in a 950-square-foot house in St. George, but says that’s too much space — he’d prefer to live in a “tiny house,” usually defined as a dwelling between 400 and 1,000 square feet. In addition to space efficiency, the smaller space lends itself to lower prices: builder Shaun Laursen, who specializes in tiny houses, said prices usually range between $30,000 and $50,000. Hughes said tiny houses could be an option for people who can’t afford a traditionally sized house, as well as an option for elderly people who want to “age in place.”

12 Charleston Regional Business Journal | Newsmakers

said the town’s more affordable housing options — particularly when compared with Charleston prices — attract residents to the area. Several area leaders said existing roads need more capacity to handle the influx of residents and workers. Johnson said this is especially true for Summerville residents whose jobs are in in other Lowcountry communities. “The main thing that I think all of us have been noticing is the fact that we have so much more traffic now along our main thoroughfares,” Johnson said. “Most folks are concerned about getting to work down I-26 or down (U.S. Highway) 78, but the traffic on Main Street is tremendous now.” Numerous road projects aim to alleviate congestion, such as the new There’s no concrete definition of a tiny house — some say it’s a house that’s smaller than 1,000 square feet, while others define it as less than 400 square feet. Manning Hughes, an advocate of tiny houses, said, though, it’s less about dimensions and more about efficiency of space. (Photo/Shaun Laursen)

Nexton interchange project, which creates a new entry to Summerville from Interstate 26, and the plan to widen U.S. Highway 176. Callanan said the county has been working feverishly to keep pace with the increasing demands on its infrastructure. The county passed penny sales tax increases in 2008 and 2014 to fund road projects. He said the county also is investing in other residential needs, such as fire protection and emergency medical services. “Every year you don’t keep up and you continue to grow, you dig yourself deeper into a hole,” Callanan said. “So, over the past three years, what we’ve been doing aggressively is catching up. ... Once you catch up, you’ve got to keep up.” CRBJ

NEWS MAKERS 2018

From the 3.19.18 Issue

Region faces challenges to its continuing growth

April 1, 2018

• www.char

lestonbusiness.com

ECONOMIC

RECAST: MOSTLYFOSU NNY Volume 24,

No. 7 • $2.25

The Charleston Metro Commerce predicts Chamber of continued growth in the Lowcountr y for the next two years, but issues of affordable housing, transportation and labor supply continue to trouble the region.

Worker training

Clemson University automotive training opens center for manufacturi ng sector. Page 20

Page 10

Trademark dispute

Churches ask federal judge to expand false advertising lawsuit after ruling. Page 7

Healthful partners

Medical University and Volvo Cars form partnership health care initiative. on Page 16

INSIDE Upfront ................... SC Biz News Briefs ............. 2 ................ 3 Best Advice ................... In Focus: Automotive ....... 4 List: Area Attractions ......... 15 .......... 21 Bonus List: Companies Headquartered in the Charleston Region ..............23 At Work ................... ...........25 Peer to Peer ................... Viewpoint ................... .....26 ........29 Day in the Life .................... 30

Union wants to organize Boeing S.C. By Liz Segrist

lsegrist@scb

flight line

fications from iznews.com the Federal Aviation ty that enable Authorithem to approve he Internation flight. an aircraft for families and the community al Association Machinists worked together , just as we have of and Aerospace Union officials for the betterment ers is once Worksaid than 35,000 of more Boeing employees workers at Boeing again trying to unionize approached the union Boeing employees country,” about around the South Carolina. ing concerns Earlier this over manageme organizing, cit- said in IAM spokesman Jonathan month, for the an email. Battaglia as many years, third time in overtime, bonuses and work nt decisions on The union is said some workers rules. The union petition with the Machinists union filed after an election required by law to wait a felt slighted the National a year by certain Board for an Labor Relations employees receiving before filing The union waited election at the for another one. bonuses while Boeing S.C. plant did not. They also said — this time, others election 13 months for 180 flight after its last and inspectors line technicians to be based on increasesthey want pay raises latest in South Carolina before in North to company petition. filing this and fulfillment Flight line workers Charleston. of outlined standards, profits a legal challengeIn response, Boeing than at a manager’s prepare 787 liners for customer with the NLRB, has filed rather determine Dreamdiscretion. which will delivery; they have “We whether to hold certi- improve hope Boeing will work an election. “This union with refuses to hear the lives of BSC employees, us to the clear mestheir See UNION, Page 6

All traffic jokes

By Patrick Hoff

he Charleston Metro Chamber of Commerce forecasted continued Lowcountry growth in its annual economic outlook for 2018 and 2019, but some growing pains are creating scattered clouds for the region’s economy. Mary Graham, former chief strategy officer for the chamber, said the tri-county region can expect growth in most industries, but the region is facing the intertwined challenges of traffic, housing and a tight labor market. Total employment in the Lowcountry is expected to increase by more than 11,000 new jobs in 2019, resulting in a 3% unemployment rate

March 19 -

Natural gas line

Dominion Energy opens pipeline to bring natural through Lowcountry. gas Page 8

A lot of South

Carolina’s

aside

economy is driven by an ever-growing automotive sector. Pages 2, 15

by the end of 2019. Jacki Renegar, director of the chamber’s Center for Business Research, who co-presented the forecast with Graham, said the Charleston region continues to grow by an average of 45 people per day, which adds up to 2.2% growth annually. To keep up with the population growth, Graham said the region needs to build 7,500 housing units each year. The region narrowly missed that mark with 7,373 units added in 2017, the first year that over 7,000 units were added. New home sales rose by 3.3% in 2017 and are expected to continue to grow by 2% in 2019. Graham said that

otherNEWSMAKERS Ladson-based Innovative Vehicle Solutions installs interior parts on completed vans, such as the Ford Transit Connect vans, which will be used as Tesla Mobile Service vehicles for roadside calls. (Photo/Provided)

with such a tight inventory, prices will also continue to rise. The median price for a house in the tri-county area was $259,835 in October, according to the Charleston Trident Association of Realtors, or 3.96% higher than a year ago. The number of single-family homes in the area is expected to increase by 2% for each of the next two years, but Graham said that projection assumes no municipality limits residential construction. Graham said construction in the multifamily market is expected to slow in coming years because of the number of complexes under construction and because public sentiment is typically against new apartment buildings.

“We’re a region of commuters who every day get up, by ourselves in our own car, and drive to another part of the region.” Mary Graham former chief strategy officer, Charleston Metro Chamber of Commerce

CRBJ

The state’s automotive supplier base continues to expand as Sweden-based Volvo Cars and Germany-based Mercedes-Benz Vans began producing S60 sedans and Sprinter vans, respectively, in the Lowcountry in 2018. Volvo S.C. suppliers include Lear Corp., Plastic Omnium, Roechling, Gestamp and Yanfeng Automotive Interiors, all of which are in the Upstate. Isringhausen opened a Ladson facility to manufacture Sprinter seats, and Innovative Vehicle Solutions in Ladson takes completed commercial vans from manufacturers like Tesla and Mercedes-Benz Vans and outfits their interiors. “We are working to localize where we can,” Mercedes-Benz Vans’ CEO Michael Balke said of the firm’s global suppliers. Charleston Regional Business Journal | Newsmakers

NEWS MAKERS 2018

From the 4.2.18 Issue

April 2 - 15,

2018 • www.char

S.C. ASS PRESS OCIA AWA TION

lestonbusiness.com Volume 24,

No. 8 • $2.25

RDS Best News Best Featu Reporting re Best Photo Writing graph Best y Desig n

Growing pains

Lowcountry mayors regional challenges discuss of housing, traffic and density. Page 6

787-10 Dreamliner enters service with Singapore Airlines

DELIVERED

Upgrading Kiawah

The resort plans a new hotel, conference space and other improvemen ts by 2021. Page 8

‘Fun is Good’

Get advice from a local baseball legend. Page 4

Boeing S.C. deliver ed its first 787-10 Airlines, marking Dreamliner to Singapor the 787-10’s entry e Charleston campus to service. Now the North can stake another as the sole builder claim in aviation of the all-new history jet. Page 10

CARTA to launch new service

Downtown workers to park and ride. can opt Page 12

INSIDE

Boeing and airline employees gathered ceremony. (Photos/Kim in North Charleston McManus)

for the delivery

Hotels want shor t-term rentals on level

Upfront ................... SC Biz News Briefs ............. 2 ................ 3 Best Advice ................... By Patrick Hoff ....... 4 In Focus: Education phoff@scbiz and Workforce Developmen news.com Jacob Lindsey, t ..... 21 List: Colleges city of Charleston planning director for he tourism industry the man of , has estimated and Universities are 200 legal the Charleston that there in Charleston short-term rental booming, helped Area Convention List: Computer .................27 is mainly listings online, Visitors Bureau. “Can along by accolades and in the in magazines. you imagine Training Companies outcry that would ough neighborho Cannonborough-Elliot the public Hoteliers are notice, with At Work ................... ...........29 od on the peninsula. bortaking multiple new Lowcountry occur?” built across the properties being all, there are about ........... 31 Peer to Peer ................... 2,000 short-term Over- ough Inn, as Hotels owns the Ansonborcity. listings across .....34 Residents are rental Charleston well as several hotels Hot Properties the city. .................... also taking in North “To put it into , including many trying 36 Viewpoint ................... notice, with a hotelier perspective to capitalize ton North Charleston the DoubleTree by be like if we ........37 on the trend Hilting an extra Day in the Life , it’d and had two – Convention by put.................... bedroom Hilton Garden 38 term rental websites. up for rent on short- Place hotels operating additional Charleston Inn Charleston Center Lowcountry on the peninsula,” Dan Blumenstoc Airport. Hotels is said country Hotels k, director of hotels for Low- bridge Suites location also building a Stayand the immediate in Mount Pleasant, past chair-

playing field

Building skills

By Liz Segrist

A youth entrepreneu North Charleston rship program in enables students run businesses. to Page 21

Singapore Airlines’ plan for 787-10 fleet

Boeing S.C. and Singapore Airlines’ employees and executives celebrated the 787-10 delivery in North Charleston. (Photos/Kim McManus)

oeing S.C. delivered its first 78710 Dreamliner to Singapore Airlines in March amid cheers outside of Boeing’s delivery center in North Charleston. The first customer delivery of a new Boeing jet is significant on its own, culminating years of planning and marketing efforts, facility and tooling preparations, workforce training, flight tests and regulatory approvals. But this delivery also signifies that Boeing S.C. has successfully built a new jet solely in North Charleston. Many thought the Boeing Co.’s 2009 decision to operate an aerospace campus in the Lowcountry — a community that lacks the decades of aerospace experience found in the Seattle area — was doomed to fail. The Boeing S.C. site began building jets with its counterparts in Everett, Wash., in 2011, and its first 787 Dreamliner rolled out of final assembly in 2012. The site has since overcome numerous production challenges from the early Dreamliner days. It has also streamlined its build process and significantly expanded its Lowcountry campus, supplier network and employee count to around 6,700 people.

Boeing S.C. builds the aft- and midbody sections for the entire Dreamliner program, and it assembles Dreamliners at a combined rate of 12 planes per month with the Everett plant. The factories are preparing to build 14 planes per month in 2019. Now the North Charleston campus can stake another claim in aviation history, as the builder of the all-new 787-10 Dreamliner — delivered on time to the plane’s first customer. “It is an honor for us to be the world’s first airline to take delivery of this amazing aircraft,” Singapore Airlines CEO Goh Choon Phong said to a large crowd of airline executives and Boeing employees in North Charleston. All three Dreamliner derivatives are now in service, and Singapore Airlines is the first airline to operate all three models. It already operates 787-8s and 787-9s through its subsidiary, Scoot. The airline has now received seven of its 47 787-10s on order, according to Boeing’s orders and deliveries website. “The 787-10 is indeed a magnificent piece of engineering, and truly a work of art,” Goh said. Boeing also built three other 78710s before Singapore’s first jet; those

test planes will be refurbished for future customers. Those first jets underwent hundreds of hours of flight tests, including the 787-10’s inaugural flight in North Charleston in March 2017. Production began on the dash-10 program in December 2016, followed by the rollout of the plane in February 2017, which was attended by President Donald Trump. Boeing officials said the 787-10 had to be built completely in North Charleston because it is too long to fit on the Dreamlifter, a modified 747 jumbo jet that ferries Dreamliner parts between North Charleston and Everett. The 787-10 is an 18-foot stretch of the 787-9 and 38 feet longer than the 787-8. It is capable of carrying 330 people for 6,430 nautical miles. About 95% of the 787-10 has a common design with the 787-9, which several Boeing officials said smooths the production transition. The jet, which has a composite base, has been lauded for its passenger benefits; the combination of less cabin altitude pressure, more cabin humidity and cleaner cabin air can lessen the headaches and fatigue many travelers feel after longer flights.

otherNEWSMAKERS Leadership at the Kiawah Island Golf Resort has begun a series of renovations and additions, called “Kiawah 2.0,” to prepare the resort for the PGA Championship in May 2021. The largest change is in West Beach Village, where a new, 150-room hotel with two restaurants and a retail area will be built on the former site of the Kiawah Island Inn. Also being built in West Beach Village is a 24,000-square-foot conference center. The resort is also expanding and renovating the Roy Barth Tennis Center, as well as building two new four-bedroom cottages overlooking The Ocean Course.

14 Charleston Regional Business Journal | Newsmakers

CRBJ

The West Beach Village Hotel will be where the original Kiawah Island Inn was located. (Rendering/Michael McCann for Robert A.M. Stern Architects)

The airline flew the jet back to Singapore, a roughly 20-hour flight, following the delivery ceremony in North Charleston. Singapore Airlines CEO Goh Choon Phong said its fleet of 787-10s will enable more routes for medium haul Goh and regional flights. In May, the airline launched initial 787-10 flights to Osaka, Japan, and Perth, Australia. Goh said the 787-10 is a “very efficient aircraft” to operate, enabling routes that were not possible before. The airline also ordered Airbus jets for its fleet expansion plan. He said the airline does not plan to use the 787-10s for long-haul flights; the plane did not come equipped with overnight crew rests. The airline’s 787-10 was designed to its specifications. Its business class seats turn into beds, and each one has storage space for passengers and moveable dividers between adjacent seats. The coach seats are designed to be more comfortable for passengers with seat backs that contour to bodies; headrests that can be manipulated into six positions; and more leg room.

See HOTELS, Page

NEWS MAKERS 2018

From the 4.16.18 Issue

April 16 - 29,

2018 • www.char

Special section honoring 40 young professional Charleston area. s in the Page 31

Report: Community involvement needed to better public education

S.C. ASS PRESS OCIA AWA TION

lestonbusiness.com

Airline growth

The Class of 2018

Building on Broad

Historic property reflects past and future on Charleston’s iconic street. Page 15

In the zone

Company develops commercial space in foreign trade zone in Summerville . Page 16

All about art

The arts supports tens of thousands of jobs and billion-dollar impact has a on S.C. Page 2

INSIDE Upfront ................... SC Biz News Briefs ............. 2 ................ 3 Best Advice ................... ....... 4 In Focus:

Architecture, Engineering and Construction List: Architecture ............... 15 Firms ......28 At Work ................... .......... 49 Peer to Peer ................... Viewpoint ................... ..... 51 ........53 Day in the Life .................... 54

By Liz Segrist

lsegrist@scb iznews.com

Volume 24,

No. 9 • $2.25

‘SYSTE FAILUREM’ C

McMaster labels Santee Cooper a ‘rogue agency’

Cradle to Career Collaborative urges entire region for children left to share responsibi behind or neglected lty education system by poverty and racisim within slow to change an and hampered by archaic funding models. Page

By Travis Boland and Melinda Waldrop tboland@scb iznews.com mwaldrop@s cbiznews

alling Santee Cooper a “rogue cy,” S.C. Gov. Henry McMaster agenthe S.C. urged cess of selling Legislature to move the prothe during its current state-owned utility forward session. “We’ve had long enough,” in late March during a mediaMcMaster said Statehouse called session at the governor released to address documents the concerning the know (Santee utility. “We Cooper) is believe it cannot in trouble, and I survive any it’s currently longer the way going.” McMaster released more than 1,200 of correspond pages ence between per and its Santee Coolobbyists containing cation about communithe he said contradictsutility’s possible sale that by Santee Cooper assurances given to him executives. shows a Santee One Cooper lobbyist memo state senator asked a to “publicly per is not for say sale” in response Santee Coooffer. to a potential See SANTEE COOPER,

CHARLESTON UNDER CONSTRUCTION

By Patrick Hoff

n 2015, the Tri-County Cradle to Career Collaborative put out its first report on the status of education across the Charleston metro, promising to follow up on the report annually to measure the region’s progress in bettering educational outcomes. “We acknowledge solutions won’t come easily or quickly because the factors influencing student success are vast and varied, but we’re determined to persevere,” Cradle to Career wrote in the initial report. Earlier this year, the organization released its fourth annual report, its thickest and most detailed yet. Colorful charts and graphs still highlight data about where the region’s students stand, but some of the color has been replaced by black lettering, detailing what needs to be done to get the region’s education systems on track. “This is not the same report that we’ve produced the past three years, nor should it be as we have little progress to report,” said Anita Zucker, chair of the Cradle to Career board, during an event unveiling the Regional Education Report: Chapter 4 – Constructive

RDS Best News Best Featu Reporting re Best Photo Writing graph Best y Desig n

taking off at CH

Allegiant Air — launched airport this operations at year, bringing ravelers flying the more nonstop out with them eight expand routes and national Airport of Charleston Internew airlines flights at CHS. vice throughout “This is great 2018. Campbell launch serthan ever with have more choices for the people Airlines will Lowcountr said Alaska eight airlines that nonstop to 28 flying Charleston y,” said Paul Campbell, live in the bly on the likely add a destination airports and , possiWest Coast, spring. 24 cities as of CEO of the County by the this great for the business Aviation Authority. “It’s to accompany its five-days-aend of the year Two new airlines community and to Seattle. -week flights — Frontier Airlines community.” tourism Frontier He said he expects and Allegiant and to add destination Airport officials want to see existing s as they test out airlines See AIRLINE GROWTH, Page 8

Who is Projects, companiesbuilding what in the Charleston , prices, projected area? timelines, photos and stories. Page 15

Disruption. Most notable in this report is the section titled “Constructive Disruption” — named for the title of the report — that includes suggestions for community advocates to change the way education is delivered. “This report is ... more than a series of bar charts to establish the facts on readiness, proficiency, attainment and to tell stories about bright spots,” Cradle to Career CEO John Read said. “It is about systems ... and the need to disrupt the status quo.” Read and Zucker both said the data show that public education in the region is failing substantial numbers of children, especially low-income, black and Hispanic students. Less than half of third-graders, 48%, met reading standards in 2017, and 57% met math standards. Eighth-graders fared worse, with 45% meeting reading standards and 40% meeting math standards. Third-graders and eighth-graders are used as benchmarks because students take statewide tests in those grades; but Sarah Piwinski,

director of data management and analysis for Cradle to Career, said the tests outline trends and don’t paint a holistic picture of what’s going on. Read said civic and business leaders have thus far remained largely silent about the failure of public education because it’s easier for them to claim that education is someone else’s responsibility, such as superintendents and school boards — especially because the “third-rail issues” of poverty and race underlie public education woes. About 20% of children ages 0 to 18 in the Lowcountry live in poverty, and about 50% of students in tri-county schools are black or Hispanic. Across the region, 72% of white third-graders met grade-level expectations; that number dropped to 37% of black students and 43% of Hispanic students. In the eighth grade, the numbers are lower but the gap is similar: 55% of white eighth-graders met grade-level

otherNEWSMAKERS Travelers flying out of Charleston International Airport have more choices than ever with nine airlines flying nonstop to 31 airports and 26 cities. Two new airlines — Frontier Airlines and Allegiant Air — launched operations at the airport this year, adding eight more nonstop flights at CHS. British Airways plans to launch nonstop service to London in 2019. Charleston County Aviation Authority CEO Paul Campbell said the growth is “great for the business community and tourism community.”

16 Charleston Regional Business Journal | Newsmakers

expectations, while 17% of black students and 29% of Hispanic students met the standards. Read said the community needs to put pressure on the region’s public education system to change. “We believe ... that change is impossible unless it is demanded by parents and congregations, by civic, business and community leaders in this room who have remained silent,” he said. “Our community must become advocates for world-class principals leading excellent teachers setting high expectations for kids.” The Cradle to Career report outlines targets for improving educational attainment of students, with a goal of 85% of students reaching grade-level reading and math proficiency in third grade and eighth grade by 2025. “We’ve got to find a way to stand up together to demand that the changes that are necessary happen,” Zucker said.

Allegiant launched service at the Charleston airport in April with nonstop flights to Indianapolis, Pittsburgh and Cincinnati. (Photo/Provided)

CRBJ

Page 6

NEWS MAKERS 2018

From the 4.30.18 Issue

S.C. ASS PRESS OCIA AWA TION

client

Biz advocates

No. 10 • $2.25

By Patrick Hoff

phoff@scbiz news.com

LIN

Multiple chambers commerce now of serving Lowcountry businesses. Page 15

Mount Pleasant bans single-use plastic products

Change reign ites home rule debat e

INSIDE

Anita Zucker and her son Jonathan Upfront ................... ............. 2 Zucker have sold controlling interest SC Biz News Briefs a in the ................ 3 New York businessma South Carolina Stingrays Best Advice ................... to n Todd Halloran, ....... 4 marking the end of an era In Focus: Law for the North ..................... Charleston-based 19 List: Law Firms hockey team. ..................22 At Work ................... ...........25 Page 9 Peer to Peer ................... Viewpoint ................... .....28 ........29 Jonathan Zucker Day in the Life (center), with Anita .................... majority share 30 of the S.C. Stingrays Zucker (from left) and new owner Todd Halloran, after realizing with the hockey the primary focus said his family team, which has decided to sell been in the Charleston of their business prevented a them from working area for 25 years. (Photo/Patrick Hoff)

By Liz Segrist

lsegrist@scb iznews.com

ount Pleasant has passed an nance that will ordiprohibit businesses in the town from using plastic bags, single-use straws and takeout of next spring. containers as Council members, who voted favor, say they 8-to-1 in es’ use of manyhope to eliminate businessunrecyclab fewer Mount Pleasant residentsle products so throughout will use them their on the amount day. They want to cut down landfills and of plastic making its way waterways and into harming wildlife. Caroline Bradner, the Coastal tion League’s Conservaland, water and manager, said wildlife project plastics that cled end up hurting wildlife,cannot be recycan affect the which in turn region’s hospitality industry. Oysters and fish can and tourism plastic, which means humans ingest pieces of do as well, she who eat them said.

SMALL BU

See PLASTCIS,

RESOURCESINESS A guide to help

Guide

navigate the challenges of starting, growing business to its next stage with and moving your information and expertise. Page 12

rentals themselves. In passing its ordinance in April, Charleston City Council chose the latter. On the peninsula, buildings in the Old and Historic District must be individually listed on the National Register of Historic Places and buildings in the Old City District must be at least 50 years old to be used for short-term rentals. Off the peninsula, there are no age requirements for buildings. No matter where in the city a shortterm rental is, it must be owner-occupied, as defined by the 4% owner-occupied property tax assessment; owners must reside on the property overnight while guests are there; and only four adult guests are allowed to stay in a short-term rental at a time. The regulations were the net of almost two years of work, starting with an 18-member Short-Term Rental Task Force appointed by City Council that studied the issue for a year and presented its findings to the Planning Commission. After several meetings and some tweaks, the Planning Commission sent a proposed ordinance to City Council. After much deliberation, Council passed an ordinance that mainly reflects the recommendations of the task force.

The new regulations went into effect in July, and since then, over 700 short-term rental advertisements have been taken down. Approximately 1,615 listings are still online. Dan Riccio, director of livability and tourism, said 259 applications for a short-term rental permit had been approved at the beginning of December and 10 denied. The city had 114 permit applications pending. Riccio said the city had collected about $23,000 in penalties from the 24 short-term rental cases it brought before livability court in October, though 50% of the money goes to the state. Pope said even though short-term rentals have always been allowed on Folly Beach, websites such as Airbnb and HomeAway have facilitated the market for “ultra-short” stays, allowing bachelor and bachelorette parties; high school and college graduations; and others to choose Folly Beach as a destination to celebrate for a day or a

otherNEWSMAKERS Mount Pleasant passed an ordinance that will prohibit businesses in the town from using single-use plastic bags, straws and takeout containers as of next spring. Council members, who voted 8-to-1 in favor, say they hope to eliminate businesses’ use of such products to cut down on the amount of plastic making its way into landfills and waterways. The ordinance does not go into effect until April 2019, giving businesses one year to change to eco-friendly options.

18 Charleston Regional Business Journal | Newsmakers

Map/City of Charleston

weekend. Earlier this year, Folly Beach passed updated short-term rental regulations to help mitigate the effects of what Pope and Wetmore referred to as “special events.” These changes include limiting the number of people attending an event at a short-term rental to 49 people and banning food trucks, mobile vendors and outdoor amplified music. He said some people wanted the city to go further, including outlawing short-term rentals in certain neighborhoods, but the rentals are a “fundamental part of our economy,” he said, including the wages paid to rental managers, cleaners and repair people who work on the houses, as well as the restaurants and shops that visitors frequent. CRBJ

rentals

been something that’s allowed,” administrator zoning olly Beach thrives Aaron Pope said. “Our commu- have a right to do it, nity, from its on short-term ” Pope said. “We als: Between earliest conception rent- been 20% and 30% just assume basically a ... , has always everyone has a right to do budget comes of the city’s summer it. We want to sure everyone Owners of short-term beach destination accommodations. from taxes on short-term make that’s doing it .” properly is properly licensed, rentals must a business license registered, “I think the obtain and and a rental mitigating the paying the proper taxes collect sales most people thing that sets us apart ... effects that could and accommod registration and from who Most municipalit crop up.” ations taxes, short-term rentals are scrambling to regulate rentals may operate ies define a but is that, for us, short-term “We’re not trying in any part of Folly Beach. rental as a property it’s always being rented or when it happens to restrict where it happens than 30 days. for fewer or whether or not people See SHORT-TERM RENTALS, Page 6

CHANEGE

Nexton hopes high-speed data infrastructur e leads to economic developmen t. Page 10

Friend of the

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lestonbusiness.com

Beach town dep ends on short-t erm Volume 24,

Nonprofit helps individuals find affordable legal advice where pro bono leaves off. Page 18

By Patrick Hoff

13, 2018 • www.char

Gigaville

Beach town depends on short-term rentals

olly Beach thrives on short-term rentals: Between 20% and 30% of the city’s budget comes from taxes on short-term accommodations. “I think the thing that sets us apart from most people who are scrambling to regulate short-term rentals is that, for us, it’s always been something that’s allowed,” zoning administrator Aaron Pope said. “Our community, from its earliest conception, has always been basically a ... summer beach destination.” Owners of short-term rentals must obtain a business license and a rental registration and collect sales and accommodations taxes, but rentals may operate in any part of Folly Beach. “We’re not trying to restrict where it happens or when it happens or whether or not people have a right to do it,” Pope said. “We just assume everyone has a right to do it. We want to make sure everyone that’s doing it is properly licensed, properly registered, paying the proper taxes ... and mitigating the effects that could crop up.” Folly Beach city manager Spencer Wetmore said cities that are regulating short-term rentals have to make a choice to focus on limiting the external effects of the rentals or limiting the

April 30 - May

Supply chain

open Inland port in Dillon County to connect companies with ocean carriers at Port of Charleston. Page 8

Page 5

NEWS MAKERS 2018

From the 5.14.18 Issue

May 14 - 27,

2018 • www.charl

estonbusin

Bootstrapping By Liz Segrist

lsegrist@scb iznews.com

S.C. ASS PRESS OCIA AWA TION

ess.com

startups and $50

Venture capitalists, marketers and utives explored harleston’s tech tech execthese and as startups launch,scene continues to grow annual Dig South Tech other topics during the Conference Charleston, tech companies and software in downtown which highlights expand tech firms secure of funding. entrepreneu companies throughout new The the Southeast. rs and enough qualified industry also struggles rounds More than 2,200 to find workers to attendees heard companies. scale burgeoning ers about securing from speakinnovating existinginvestments, scaling businesses, brands and connect with telling stories consumers. that

New aviation company established in Walterboro

Dig South 2018

Next generati

INSIDE

IN PLANE SIGHT

A former Boeing S.C. vice president’s an aviation company plan to build at Airport in Walterboro Lowcountry Regional includes charter aircraft maintenanc flights, e and manufacturi composite light ng of aircraft in Colleton County.

PAGE 12

Photo/Patrick

Hoff

By Patrick Hoff

phoff@scbizn ews.com

wo years after an encampmen closing “Tent City,” t of homeless under the people Meeting Street, Interstate 26 overpass off Charleston is a new effort to assist homelessembarking on area. people in the The plan, which discussed earlier Mayor John Tecklenbur g ing with business this year during a owners, includes meethomeless day a new and resource mer Thomas center in the Myers Head forStart Meeting St., down the street School at 529 Tent City site. from the former The center will provide with a place to homeless people wash their clothes, er, and receive take a showmental health services. care and other “The No. 1 thing increase a proactive, to do is to continue and compassionate to homeless outreach individuals in our community and try to help them get the , and try to help services they need them get a roof if that’s at all over their head, possible,” Tecklenbur Tecklenburg said he wants g said. plementary it to be comto the services that the nonprofit See HOMELESS,

Cybersecurity

Roundtable of businesses and security experts offer tips for protecting your company’s assets. Pages 21-25

By Patrick Hoff

Sky Arrow aircraft are equipped with ADS-B technology to allow pilots to see what air traffic controllers see. Right: The footprint for a new hangar, which was completed this year. (Photos/Patrick Hoff)

alterboro is a city of 5,923 people, with a hospital in the center of town and the University of South CarolinaSalkehatchie off the main street of antiques shops and jewelry stores. Former Boeing S.C. vice president Marco Cavazzoni sees potential in the municipality for something bigger: the manufacture of composite light aircraft. Cavazzoni lives in downtown Walterboro with his wife and son, who both also work at Lowcountry Aviation Co., the business he founded after retiring from Boeing last year. Lowcountry Aviation is a holding company for three separate companies: Lowcountry Aviation MRO, which provides aircraft maintenance and repair; Austin Aviation, a charter flight company; and Sky Arrow Aircraft, which

will manufacture composite light aircraft in a facility at Colleton County’s Lowcountry Regional Airport. Cavazzoni said it was important to him that Lowcountry Aviation have the capability to manufacture, maintain and fly aircraft. “The uniqueness of the strategy that we have is that if you take large aircraft manufacturers, typically what they do is they make airplanes and then in some cases ... they maintain them,” he said. Airlines also have only two focuses, Cavazzoni said: flying and maintaining their aircraft. “We’re actually going to make them ... and then we are flying with our charters, and then we maintain them,” he said. “So that’s kind of a cool thing.” The company also has its own fuel farm for its planes, which Cavazzoni said was integral to the company’s abil-

ity to charter and manage its planes and other people’s aircraft. “Some people will decide to base their airplanes here even though they live somewhere else,” he said. “And when they call, we’ll go pick them up. Obviously having the fuel flexibility for us allows us to do that service and not charge, frankly, for that for as much as it would cost.” Cavazzoni said Walterboro is a blank canvas with a lot of potential, especially considering its airport. “You can build all kinds of things, but it’s really difficult to build long runways,” Cavazzoni said. “The process of going through that is crazy. So what Walterboro offered from an infrastructure perspective is this incredible underutilized airport. It’s a white canvas, and a white canvas can scare people, or a white canvas can be

otherNEWSMAKERS Several venture capitalists speaking at Dig South said more investment dollars are funneling through the Southeast than ever before, but scaling startups can still be a challenge. Amy Salzhauer, managing partner of Charleston-based Good Growth Capital, said the Charleston region has seen growth in venture capital firms, as well as successful startups and several exits in recent years. But the region still struggles with both graduating and attracting enough senior-level talent to quickly scale tech companies, said Frank Dalton, partner of Atlanta-based Fulcrum Equity Partners.

20 Charleston Regional Business Journal | Newsmakers

Alexander Chalmers (from left) of IronBridge Capital, Frank Dalton of Fulcrum Equity Partners; Paul Iaffaldano of Buckhead Investment Partners and Amy Salzhauer of Good Growth Capital at Dig South. (Photo/ Adam Chandler)

RDS Best News Best Featu Reporting re Best Photo Writing graph Best y Desig n

Charleston keeps focus on homelessness

Port of call

Next phase of harbor deepening requires cash or more debt. federal Page 29

Buying tech

Upfront .................... SC Biz News Briefs ............ 2 ................ 3 Best Advice .................... ...... 4 In Focus: Ports, and Distribution Logistics .................29 List: Motor Freight Companies ...37 At Work .................... ..........39 Hot Properties .................... Peer to Peer .................... . 41 Viewpoint .................... ....42 ...... 45

No. 11 • $2.25

We collected some voices from the of entrepreneuria l conference held the most compelling in Charleston. Make connections through What does Charleston’s storytelling............................... .............................. tech scene need? Building iconic ...................................................... Page 15 brands ............................... Buy it or don’t; .............................................................. Page 15 here’s the price .... Page 16 ............................... Making the pitch .............................................................. ................................................ Page 16 ................................................ Page 16

Blackbaud buys data analytics, fundraising company. Page 8 Leaders urge businesses to advocate for education, talent developmen t. Page 6

Volume 24,

0M sales pitches

an opportunity.” Sky Arrow planes will be built entirely out of composite, a light but durable material that’s resistant to corrosion. Cavazzoni said the lighter material allows Sky Arrow planes to carry a large number of sensors — up to 250 pounds with a single pilot — which makes the aircraft great for law enforcement to use for surveillance. Farmers can also use the planes to map their agricultural fields. The plane, which Cavazzoni said is relatively easy to fly, seats two people and can be flown from either seat, so a passenger can sit in the front to get a better view through the plane’s cl ear dome. Cavazzoni said his goal is to deliver the first Sky Arrow plane in the first half of 2019, pending FAA approval. CRBJ

Page 14

NEWS MAKERS 2018

From the 5.28.18 Issue

May 28 - June

10, 2018 • www.char

Officials review structural issues on Mark Clark Expressway

S.C. ASS PRESS OCI AWA ATION

lestonbusiness.com

NO GETTING OVER Volume 24,

Biggest resourc

e HR professiona ls offer insight into the changing sector of managing people. Page 17

State Transportation Secretary Christy Hall, Gov. Henry McMaster and Mount Pleasant Mayor Will Haynie walk up the Wando bridge. (Photo/Zach Pippin/Govern or’s office)

s Two Lowcountry restaurant companies opening locations in Columbia. Page 3 Possible OT change

More employees could eligible for overtime. be Page 18

Judicial ruling

Judge suspends Charleston mayor’s oversight of friend after loans. family Page 11

INSIDE

Johns Island maste community begin r-planned Charleston, North s construction locked in annex Charleston ation battle

Upfront ................... By Patrick Hoff SC Biz News Briefs ............. 2 phoff@scbiz they stroll the ................ 3 news.com property that Best Advice ................... lodge’s days ....... 4 of solitude are the In Focus: By Patrick Hoff hunting lodge-turn bered — in a numfew years, The Human Resources phoff@scbiz The acre annexation ed- Co.’s office space Beach news.com master-plan List: Office Supply .............. 17 sits mostopens the door to ly alone on River community ned Kiawah a 2,000-acre Equipment Dealersand Mullet Hall annexone-acre annexation ation of land, will be in Plantation, a .............22 swing, with span of land Bonus List: residents movingfull by challenged which also has been North Charleston the banks of along to their in Employee Benefit the new homes. has the National by Charleston and the potential to Johns Island. Kiawah River on Brokers ..24 Trust. North At Work ................... “One completeThe ly change the Charlesonly by a shed, lodge is joined es that of the great advantag...........25 scenery of Ashley ton passed a pair Peer to Peer ................... we have being about 200 yards of ordinances River Road in December away, that .....26 and Hot Properties here as opposed serves as a annexing both .....................28 that could ripple set a precedent parcels meeting Seabrook to … Kiawah Island space. the Viewpoint ................... of land. Charleston through annexor ation efforts is really our ........29 passed an ordinance Day in the Life Dirt roads proximity across the annexing .................... and earthmovin to downtown,” said according state, acre 30 equipment Carter Redd, to lawsuits parcel because the 2,000g remind filed

See KIAWAH RIVER,

Page 6

the city of it believes, by according Charleston to the pair and the that National Trust North Charlestonof lawsuits, for Historic ervation. Preslacks the See ANNEXATION

, Page 12

By Liz Segrist

Big wins

Rodney Scott and Fig for culinary excellencewin James Beard Awards at event in Chicago. Page 2

State Transportation Secretary Christy Hall, Gov. Henry McMaster and Mount Pleasant Mayor Will Haynie walk up the Wando bridge. (Photo/Zach Pippin/Governor’s office)

RDS Best News Best Featu Reporting re Best Photo Writing graph Best y Desig n

The James B. Edwards Bridge over the Wando inspections of River is broken. the structure. For years, Now that a cable has failed, businesses state officials were worried enough to require say customers daily are afraid of traffic and staying away. PAGE 8

Going to Midland

visitors as

he closure of the westbound lanes on the James B. Edwards Bridge in May felt sudden and unexpected to many Lowcountry residents, but the bridge has had signs of issues since at least 2016. In October of that year, inspection of the interior of the Interstate 526 bridge over the Wando River revealed a damaged cable. That finding prompted the S.C. Department of Transportation to begin inspecting the bridge weekly, and later, daily to ensure it was safe to drive — a signal that the bridge was having reliability issues for years. “We’re doing a much, much more aggressive inspection than what we are required to do by law,” said LeLand Colvin, the state DOT’s deputy secretary for engineering.

No. 12 • $2.25

Inspections involve a full walk through inside the bridge to vet the cables. Federal law requires that bridges undergo inspection once every two years. The frequency of inspections increases when problems are discovered. Some other Lowcountry bridges undergo inspections more often than biannually — including the Arthur Ravenel Jr. Bridge, Isle of Palms Connector Bridge, Ben Sawyer Bridge and Don N. Holt Bridge — but none undergo weekly or daily checks. During one of these walk throughs on May 14, inspectors discovered that one of eight main cables inside the westbound bridge over the Wando River had snapped. Within a few hours, the S.C. Department of Transportation shut down the westbound lanes to prevent a potential catastrophe.

“It is certainly a life-safety issue, otherwise we would not have taken the dramatic action to close this bridge,” S.C. Transportation Secretary Christy Hall said. State officials and contractors scrambled to fix the nearly 30-year-old structure, restoring a vital bridge on Interstate 526 that 35,000 commuters rely on every day. DOT crews also worked to implement two-way traffic on the eastbound lanes of the Wando bridge during the nearly three-week closure of the westbound lanes. DOT reopened the westbound lanes on June 4 after making repairs. Corrosion, caused by water that seeped through the deck of the bridge, cause the cable to break, the DOT said after analyzing the bridge.

otherNEWSMAKERS Charleston County probate Judge Irv Condon removed Charleston Mayor John Tecklenburg from managing an elderly former neighbor’s finances after discovering the mayor took out “self-dealing” loans from her accounts for both himself and his family members’ businesses without prior court approval. Tecklenburg was appointed conservator for the 92-year-old Johnnie Wineglass in 2008 after she fell victim to a series of financial scams. Tecklenburg said he repaid all loans by 2017 and apologized for the questions his actions raised.

22 Charleston Regional Business Journal | Newsmakers

CRBJ

S.C. Department of Transportation workers make temporary repairs on the I-526 bridge over the Wando River. (Photos/S.C. Department of Transportation)

NEWS MAKERS 2018

From the 6.11.18 Issue

June 11 - 24,

2018 • www.char

S.C. ASS PRESS OCIA AWA TION

lestonbusiness.com

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Tides turning for Charleston Sch ool of Law Volume 24,

financial problems on a U.S. Departmenthat landed the school etween 2013 among the best t of Education monitoring and 2015, financial and in the country list. School of Law Charleston for professors quality of “I don’t think of high-profil went through a series The school is life by the Princeton Review. e woes, including the school came anyone realized how ting faculty debt-free, and close of Law to closing down. and facilities, cut- dire,” Charleston School was off lawsuits professors, a said Ed Bell, … It was potential purchase from fired School president of heightened cash the Education Departmen law school Charleston of Law. t’s monitoring payment by for-profit consortium list as of September. Bell said, though, Infilaw System method and turned The 108-memb over a new leaf: the school has now er graduating The school is class of 2018, ranked

Lowcountry businesses

Special publication focuses on business, industry. Inside

No. 13 • $2.25

By Patrick Hoff

phoff@scbiz news.com

See LAW, Page

Machinists union makes inroads at Boeing S.C.

Machinists unio makes inroads n at Boeing S.C.

Investing in health

Small subset of workers vote aerospace to unionize

Roper St. Francis founding members give $50 health care system.million to Page 7

Unloading the base load review

S.C. Senate votes to controversial energyrepeal law. Page 6

INSIDE

Upfront ................... SC Biz News Briefs ............. 2 ................ 3 Best Advice ................... ....... 4 In Focus:

Architecture, Engineering and Construction List: Engineering ............... 17 Special Section: Firms ..... 36 Cyberseurity ................... ... 38 At Work ................... ........... 41 Hot Properties .....................44 Viewpoint ................... ....... 45 Day in the Life .................... 46

OUT WITH THE OL The city of Charleston began tearing down the Piggly Sam Rittenberg Wiggly building Boulevard, a sign near of new beginnings West Ashley area. and revitalizatio What comes next n for the for the property, though, is still up in the air.

Mayor John Tecklenburg front windows.

PAGE 17

took the first swing Target Contractors at the building last month, knocking LLC will finish in one of the former the job over the grocery store’s next few weeks. (Photo/Patrick Hoff)

By Liz Segrist

lsegrist@scb iznews.com

ollowing several years of intense failed attempts and advertising and relations campaigns, public Association the Internation of Machinists al Workers successfully and Aerospace unionized a of Boeing S.C. small group workers. A group of 176 Boeing S.C. technicians and inspectors flight readiness in North Charleston will be unionized following tion. Of the 169 who voted, a May 31 elec61.5%, were 104 workers, in favor or Unions leaders of unionization. move for workers’ called the win a historical rights. Boeing the outcome officials said is divisive for its aerospace pus. camBoeing contests the legality tion for such of an eleca 7,000-employee small group of its roughly workforce in ton, but the National Labor North Charlesgave the election Relations Board the greenlight Boeing plans to occur. to appeal the unionization results to prevent of some of its S.C. workforce.

CHARLESTON UNDER CONSTRUCTION See UNION, Page

By Liz Segrist

Who is Projects, companiesbuilding what in the Charleston , prices, projected area? timelines, photos and stories. Page 17

A number of Boeing S.C. flight line workers voted to be represented by the International Association of Machinists and Aerospace Workers. (Photo/Kim McManus)

ollowing several failed attempts and years of intense advertising and public relations campaigns, the International Association of Machinists and Aerospace Workers successfully unionized a small group of Boeing S.C. workers. A group of 176 Boeing S.C. flight readiness technicians and inspectors will be unionized in North Charleston following a May 31 election. Of the 169 who voted, 104 workers, or 61.5%, were in favor of unionization. Unions leaders called the win a historical move for workers’ rights and promised to fight for better benefits. Boeing officials said the outcome is divisive for its aerospace campus and is not in the best interest of its employees. The union filed for the election in

March, hoping to unionize the flight line workers and finally secure a foothold within the Lowcountry aerospace campus. The National Labor Relations Board gave the election the greenlight to occur. Workers in favor of unionization said they are paid less than their Washington state counterparts. Flight line workers have certifications from the Federal Aviation Administration and prepare 787 Dreamliners for customer delivery. The IAM said the flight line workers approached the union with serious concerns about management decisions regarding overtime, bonuses and work rules. “This election was never just about wages. The men and women wanted dignity and consistency in the work-

place, and this vote put them closer to achieving those goals,” said Mike Evans, the union’s lead organizer in South Carolina, in a statement. “We hope Boeing does the right thing by agreeing to sit down and negotiate in good faith with the dedicated flight readiness technicians.” South Carolina is a right-to-work state, meaning employees in a unionized group are represented whether they choose to pay dues or not and workers do not have to join a union to work in a facility even if that facility has union representation. As of now, Boeing S.C.’s flight line workers are in the union, and the rest of the Boeing S.C. workforce is not. Boeing called the IAM’s unionization of the flight line an unreasonable, isola-

otherNEWSMAKERS The city of Charleston demolished the former Piggly Wiggly at the corner of Sumar Street and Sam Rittenberg Boulevard in West Ashley, part of the city’s West Ashley revitalization plan. The city bought the site in 2017 from Charlotte-based real estate firm Wintergreen Capital for $3 millon, about $1 million more than Wintergreen paid for the property in 2014. The city received public input about the future of the site in July, and intends to release potential plans for the site early next year. Mayor John Tecklenburg said the goal is to make the area more pedestrian-friendly.

24 Charleston Regional Business Journal | Newsmakers

Mayor John Tecklenburg took the first swing at the old Piggly Wiggly in West Ashley in May, knocking in one of the former grocery store’s front windows. (Photo/ Patrick Hoff)

tion tactic. Boeing contests the legality of an election for such a small group of its 6,700-employee workforce in North Charleston. “Our position on this issue has not changed: We strongly believe that this micro-unit is prohibited under federal labor law and is not in the best interests of our teammates, our site or our community,” the company said in a statement. Boeing appealed the election results, but the NLRB has yet to make a decision on the company’s request to forgo the results. If those efforts fail, negotiations would occur between Boeing and union representation and a contract would have to be approved before any terms would take effect. CRBJ

NEWS MAKERS 2018

From the 6.25.18 Issue

June 25 - July

8, 2018 • www.char

S.C. ASS PRESS OCIA AWA TION

lestonbusiness.com

Official warns HUD Digging deeper

Federal, state dollars further progress on Charleston Harbor deepening project. Page 12

By Patrick Hoff

Volume 24,

proposal could push

No. 14 • $2.25

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people out

phoff@scbiz institute. news.com The Center on harleston-area Budget and Policy ton Housing found the Charleston households Authority. “While Priorities receive federal of low-incom metro area’s the definition rental assistance that rent increase e, HUD’s predicted see their could Washington was second only to that of the ple who are at 80% of definition, is peoage of $940 a housing costs rise by an , D.C., area, the area-wide aver- increase year income, public where rents median a federal proposal— over $78 per month housing authorities could ing — if month. $980 per year, or nearly people closer to reform ... are servtance program $82 per to 30%.” goes through, its rent assisThe median “Public housing analysis by according to a national nonpartisan and the Section $57,603 in 2016, income in Charleston an serves the poorest 8 program was research Cameron, of the data from the according to the most recent Census Bureau. president and poor,” said Donald CEO of the Charles-

See HUD, Page

Blackbaud moves into new tech campus

Council of Government s envisions network rapid transit routes.of bus Page 19

Long, widening

road Comment period ends as officials weigh various options for S.C. Highway 41. Page 19

Economic partners

Commerce, Trident readySC to purchaseTech, building. Page 13

INSIDE

Upfront ................... SC Biz News Briefs ............. 4 ................ 5 Best Advice ................... In Focus: Transportati ....... 6 on and Infrastructur e .............. 19 List: Largest Employers ......22 Bonus List: Business Communicat Companies...................ion At Work ................... ......23 ...........25 Peer to Peer ................... .....27 Hot Properties .....................28 Viewpoint ................... ........29 Day in the Life .................... 30

LEGACY BUILDING After 30 years in the Lowcountry , software company the region with Blackbaud has a new tech campus again invested on Daniel Island. in recently opened The first of two for the company office buildings that serves nonprofit fundraising organization s.

Employees have

PAGE 16

moved into the

four-story building

with a second

office set to open

in 2023. (Photo/Blackb

From the deck the Yorktown of

By Liz Segrist

aud)

By Liz Segrist

lsegrist@scb iznews.com

antee Cooper wants kind of industrial to create a different park, one that beyond the goes and warehouse usual manufacturing plants facilities. The utility plans to develop Camp in Berkeley Hall tract County — which encompass es the Volvo Cars commerce park campus — as a mixed-useants, including with onsite amenities for tena and restaurants health center, day care, shops . The industrial Interstate 26 park sits along off exit 187. “We started Camp Hall apartthinking about: What will set from other industrial … We really parks? started to focus What does on the worker. the worker at a commerce need?” said Pamela park senior vice presidentWilliams, Santee Cooper’s Santee Cooper of corporate services. mer timber farm bought the 6,800-acre forfrom Meadwestv to recruit industrial aco tenants to the in 2015 attempt to secure area and for South Carolina.the Volvo Cars investment When a Dorchester County site small for Volvo’s needs, the Camp proved too Hall tract See CAMP HALL, Page 8

Patriots Point set to attendance record. break Page 7

lackbaud began its tenure in the Lowcountry in 1989, relocating its home base here eight years after launching in New York City with a single customer. After nearly 30 years of operating its global headquarters in the Lowcountry, the Daniel Island-based software firm has more than 40,000 customers in 50 countries. Blackbaud’s software platform focuses on fundraising for the nonprofit and education sectors. The company’s continued revenue and employment growth, a series of acquisitions, and the shortcomings of its existing space spurred the buildout of its new tech campus, also on Daniel Island. The company moved into its new office building in June and has another on the way to handle its Lowcountry workforce of about 1,400 people. The tech firm employs 3,400 people globally. The new site, at 65 Fairchild St., is about a mile from its existing office at 2000 Daniel Island Drive, where the company has been since 2000. Blackbaud CEO Mike Gianoni said those offices are outdated and the layout scatters employees among various floors and buildings. Gianoni said the company needed a new space that corresponded to how employees work. He envisioned a modern tech campus filled with open spaces and communal areas where workers can collaborate, brainstorm and solve problems. Employees and company executives gathered to commemorate the opening of the first of two new Blackbaud buildings. The investment also involves the hiring of 300 workers over the next five years. “It’s a big day for us. This

is our new global headquarters,” Gianoni said. “This building will serve as the engine to drive the intersection of innovation focused on social good, because that’s what we do for a living here at Blackbaud. ... Today marks the culmination of a multiyear effort.” The new building is a four-story, 172,000-square-foot structure with floor-to-ceiling windows. Developers and designers sought employee feedback on what they wanted in their new building, said Grace Finnan, Blackbaud’s project coordinator with JLL, which assisted with project management, brokerage and relocation. The first floor has meeting rooms, a vending machine filled with electronics, a game room with pingpong tables, a Starbucks and a large cafeteria area. The second through fourth floors have clusters of desks in an open work area around the perimeter of the building, with offices in the center, allowing more light to come through the windows. Many of the desks are adjustable from sitting to standing. Conference rooms, smaller meeting rooms and phone booths are sprinkled throughout. Designers wanted employees to have the option to work in spaces beyond their desks. Each floor has a space in the middle for workers to gather at tables, chairs or booths. Cold-brewed coffee, kombucha and healthy snacks are up for grabs. About half the workforce has moved into the new building; the remaining employees will continue working in the space along Daniel Island Drive until the second building is completed, expected in 2023. The second building will be about 188,000 square feet, for a total of 360,000 square feet of office space across the campus.

Employees work in the new four-story building on Daniel Island. (Top photo/Blackbaud) (Other photos/Kim McManus)

CRBJ

otherNEWSMAKERS IT ON

254896

ADMIT

25489 7 254896

25489 7

ADM

ONE

26 Charleston Regional Business Journal | Newsmakers

Santee Cooper plans industrial site with commercial space

In the fast lane

Patriots Point Naval and Maritime Museum broke its annual paid visitor attendance record by more than 10,000 visitors in the 2018 fiscal year and saw the seventh year in a row that museum attendance has grown. The previous attendance record of 297,371 was set in 1987; Patriots Point surpassed 310,000 paid visitors at the end of June, which coincides with the end of the museum’s fiscal year. The attendance record does not include approximately 21,000 campers who slept overnight on the USS Yorktown as part of the museum’s camping program. The Patriots Point Development Authority board of directors also approved a $13 million budget for the 2019 fiscal year at its meeting in June.

NEWS MAKERS 2018

From the 7.9.18 Issue

July 9 - 22,

2018 • www.char

Volvo launches U.S. production in Lowcountry By Liz Segrist

S.C. ASS PRESS OCIA AWA TION

lestonbusiness.com

Court opens doo New leadersh

ip Medal of Honor Museum’s CEO plans to make community-involvedproject a effort. Page 10

Upstate aerospa

ce Lockheed to build latest version of F-16 at Greenville manufacturing site. Page 3 Mark Clark’s

future

State Infrastructur e Bank votes to end its involvment in the 526 project. Page 5

Daniel Island upgrades

r for collecting

By Patrick Hoff

phoff@scbiz news.com

Volume 24,

No. 15 • $2.25

UNVEILED

Office space gets $2.5 million overhaul. Page 16

INSIDE Upfront ................... SC Biz News Briefs ............. 2 ................ 3 Best Advice ................... ....... 4 In Focus:

Commercial Real List: Commercial Estate ..... 15 Real Estate Companies At Work ................... .......22 ...........23 Peer to Peer ................... Viewpoint ................... .....26 ........29 Day in the Life .................... 30

Volvo shows off S60 sedan made in South for a glimpse Carolina as world at the Sweden-ba turns to Ridgeville sed company’s first U.S. manufactur ing site. Volvo officials

said they hope

PAGE 6

the S.C.-made

vehicle and a

presence in the

U.S. will continue

to boost domestic

sales. (Photo/Kim

McManus)

Citadel Mall revitalization

Developers see new use for “underutilized” property. Page 12

Volvo officials said they hope the S.C.-made vehicle and a presence in the U.S. will continue to boost domestic sales. (Photo/Kim McManus)

olvo Cars’ unveiling of the new S60 at its Lowcountry factory marked its foray into U.S. car production — a significant move for the Swedish manufacturer. The same can be said for South Carolina. The opening of Volvo’s Berkeley County campus makes it the third major international automotive company to plant roots and build vehicles in South Carolina. BMW Manufacturing Co. came to Greer in the ’90s and Mercedes-Benz Vans located to Ladson in the 2000s. Volvo and BMW build new models from start to finish at their S.C. factories; Mercedes expanded its campus

to transition from a reassembly site to handle full van production. The Volvo Car Charleston Plant in Berkeley County is the sole producer worldwide of the company’s new S60 sedan. “After 90 years, this is the first Volvo car ever to be made on American soil,” said Anders Gustafsson, Volvo Cars’ senior vice president of the Americas, at the Ridgeville plant in June. The decision to open the plant creates thousands of new jobs and brings more work to suppliers in the state. Volvo is on its way to employing 2,000 people initially, with plans to launch a second vehicle, the XC90,

and employ 4,000 people by 2022. The cost to build the automotive campus is around $1.1 billion. “It is really a historic milestone for our company today because we are achieving two things: From now on, we are a truly global company, but more importantly, we are finally local in the USA,” Volvo Cars’ President and CEO Hakan Samuelsson said. When domestic sales began dipping about a decade ago, the Sweden-based, Chinese-owned company wanted to start manufacturing in the U.S. in the hopes of reigniting American consumer interest in the brand. The Lowcountry secured the Volvo

project with aggressive recruitment, a last-minute showing of a large, rural site in Berkeley County, a huge incentives package, proximity to the Port of Charleston and a guarantee to create a customized workforce program through readySC to train employees. Lex Kerssemakers, the president and CEO of Volvo Cars North America, said the new plant has been instrumental in boosting year-over-year sales in the U.S. He said the S.C. operation reinfused car dealerships with confidence about Volvo models. The S60 sedans headed to North American dealerships in late 2018 and will be sold globally in 2019. CRBJ

otherNEWSMAKERS Tradesman Brewing Co. finished the renovation of its new brewery and taproom on the Upper Peninsula in June, joining seven other breweries located in that area. Tradesman opened in 2014 as the first brewery on James Island, but the company quickly outgrew its space, and it closed down the James Island location in September 2017. Chris Winn, co-owner of Tradesman, said the new space is about 2.5 times larger than the space on James Island and has much more parking. Tradesman Brewing’s new facility on King Street Extension is more than twice the size of the brewery’s former location on James Island. (Photo/Patrick Hoff)

28 Charleston Regional Business Journal | Newsmakers

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online sales tax

ers with a physical presence in decided by the state, Quill U.S. Supreme 1992. The court Corp. v. North Dakota as nesses at a 5% to 10% Court decision ing states to disadvantage in found, though, allow- e-commerc versus an collect sales that “modern out-of-state online retailer, e does not align out-of-stat tax from Municipal Association according to analytically with test that relies some applauding e online retailers the on the sort of of South Carolina. has defined The Supreme a now-levele physical presencea field between in Quill.” d playing brick-and-m however, placing Court decision changes In South Carolina, ortar retailers that, e-commerce, and on online retailersthe responsibility for the but critics residents who say the decision something from an could create tax buy a burden out-of-state “The court’s instead of individuals. er are required online retailPrior to the court’s on smaller retailers. to S.C. DOR (S.C. decision affirms what usually reported pay a “use tax” on the 5-4 decision in South Dakota the Department item, long on state of Revenue) v. Wayfair, states last month a report lect sales tax has from the S.C. income tax returns; ers maintained — that large could colonly from those who Revenue and online retailonline retail- Affairs Office said voluntary Fiscal doing enjoy the benefits and privileges of business in low. This puts compliance South Carolina local brick-and-m is should be ortar busiSee SUPREME COURT, Page 9

NEWS MAKERS 2018

From the 7.23.18 Issue

July 23 - August

5, 2018 • www.char

Regional fintech companies hiring and growing. Page 19

Food hall enthusiasm spreading to the Lowcountry

Banking on Charleston

By Melinda

Page 8

Upstate compan hires next CEO y

Upfront ................... SC Biz News Briefs ............. 2 ................ 3 Best Advice ................... ....... 4 In Focus: Banking and Finance ......... 19 List: Banks ................... Bonus List: Executive ......22 Recruiting Firms ................23 At Work ................... ...........25 Peer to Peer ................... .....27 Hot Properties .....................28 Viewpoint ................... ........29

Workshop at Pacific

Reworkin restaurantgs Box & Crate is

currently the Lowcountry’s

only food hall.

(Photo/Patrick

As food halls multiply across the country, industry see potential experts for the concept to take off in the Lowcountry.

PAGE 12

buy Raycom Media, including WCSC-TV and Raycom Sports, being sold to Gray Television for $3.6 billion. Page 3

owned by Michael Shemtov, who founded Butcher & Bee. “The basic premise of food halls and food courts, which is providing a variety of options under one roof that are quick, is really strong,” Shemtov said. “Food halls have exploded.” There is no industry standard for what a food hall is, but commercial real estate company Cushman & Wakefield defines it as a market space with a mix of food-inspired retail, food vendors and restaurateurs. Although similarities exist between the shopping mall food court and the modern-day food hall, the biggest difference, Cushman & Wakefield said, is that food courts are an amenity for shoppers, while food halls are a primary attraction on their own. Food halls are also focused on local and artisanal foods, while food courts are often based around fast food. John Lewis, owner of Lewis Barbecue on North Nassau Street in downtown Charles-

ton and one of the original tenants at Workshop, said he had some bumps in the road during his time at the food hall, such as modifying how to cook authentic Mexican food for on-the-go consumption. He said a food hall is great for established chefs who want to test a new idea and for newer chefs who are trying to get their start in a market. Shemtov said when he started Workshop, he envisioned it as a series of rotating vendors, which is why all of the original tenants have been replaced. “Most people who are starting a restaurant, especially their first restaurant, they just don’t have the financial capacity to weather delays and cost overruns and all the things that are just part of opening a restaurant,” Shemtov said. “We thought that it would be helpful to those people if we could mitigate their risk by building the space out for them.” He added that this allows vendors to either fail at a much lower cost

Workshop at Pa is currently th cific Box & Crate e only food hall. Lowcountry’s (Photos/Patric k Hoff)

otherNEWSMAKERS On July 31, 2017, S.C. Electric & Gas Co. and state-owned partner Santee Cooper abandoned construction of the 1,117-megawatt nuclear reactors being built at the V.C. Summer Nuclear Station in Fairfield County. The decision came after the utilities spent more than $9 billion on the project. A firestorm of controversy ensued, and more than a year later, the discussion is ongoing to determine what’s next. Continue to read SC Biz publications for ongoing coverage as this story develops. (Photo/High Flyer)

30 Charleston Regional Business Journal | Newsmakers

Hoff)

Waldrop

mwaldrop@s cbiznews.com

ne year ago this by two utilities month, the decision to abandon construction of spending billionstwin nuclear reactors after of dollars of ers’ money their ratepaytouched off a firestorm only grown that has fiercer. On July 31, 2017, S.C. Electric and state-owne d partner Santee & Gas Co. doned the 1,117-mega Cooper watt nuclear abanbeing constructed at the V.C. Summerreactors ar Station in NucleFairfield principal subsidiary County. SCE&G, the of Cayce-base Corp., owned 55% of the project. d SCANA per owned the Santee Cootious plan that remaining 45% of the ambistate’s power was supposed to shore up grid and provide the growth. capacity for its The utilities the reactors, poured around $9 billion into with footed by SCE&G about $2 billion of that customers But a series of cost increases as of January. tion delays played and construcWestinghouse’s a role in project contractor in March 2017,Chapter 11 bankruptcy filing and four months later, the See V.C. SUMMER, Page 6

than if they opened their own restaurant or to establish a brand and move into a standalone facility like pizza restaurant Slice Co. did earlier this year. Lancaster said he’s looking for permanent vendors, not rotating ones, for Garco Mill, similar to his approach at Krog Street Market. Most of the leases at Krog Street, he said, are at least 10 years long. Lancaster added that he chose Garco Mill for a food hall because of Park Circle’s growth and because Garco Mill is an older building. “We tend to stick to old buildings,” he said. “We believe they have some character and create an ambiance that you can’t really reproduce when you build new.” Lancaster said he expects Garco Mill to have about two dozen retail and dining tenants. CRBJ

trade

Few answers in nuclear saga 1 year later

Financial institutions choosing Charleston commercial, retail area for operations. Page 20

Moving forward

Milliken & Co.’s board selects Halsey M. Cook. Page 3

RDS Best News Best Featu Reporting re Best Photo Writing graph Best y Desig n

more expensive to bring into the country. The Trump he Trump administra in the U.S.A.,” wants the tariffs administration has said Trump imported products tion’s tariffs on lars’ worth of — which tax billions of it Boeing South Carolina said during a visit to have set for a global dol- last year goods — to in trade war, and the stage companies for the unveiling North Charleston ufacturers are to change trade pressure Chinese Dreamliner S.C. manof the new 787-10 expected to vent theft of policies and . feel the force The first round U.S. preChina retaliated of tariffs enacted of it. has also pushed intellectual property. this month Trump to U.S. tariffs for increased earlier placed by imposmanufacturing ing taxes on $34 billion steel and aluminum,a 25% tax on imported in the United States. worth of American goods, including making those “Our goal as cars and products United States on imports and a nation must be to rely has since said soybeans. The less more on products it plans to roll made here out See TARIFFS, Page 10

Plans for an intermodal site in North Charleston under final review.

INSIDE

No. 16 • $2.25

By Liz Segrist

lsegrist@scb iznews.com

Major media

By Patrick Hoff erritt Lancaster was struggling to find a purpose for some real estate in downtown Atlanta, an old industrial building that he originally envisioned as the retail side of a mixed-used project. The problem, Lancaster said, is that industrial buildings don’t lay out particularly well for a typical retail-sized space. So when a local chef suggested that Lancaster, the principal of Paces Properties, visit some food halls on the West Coast to get some ideas, he flew out and realized a food hall would be a great fit. Four years later, Lancaster is bringing the lessons he learned starting Krog Street Market to the Lowcountry, starting a food hall in Garco Mill in Park Circle. It will be the Lowcountry’s second food hall in three years. The other, Workshop, in the Pacific Box & Crate development on Upper King Street, is

S.C. ASS PRESS OCIA AWA TION

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S.C. companies stress need for free Volume 24,

Financial tech trending up

NEWS MAKERS 2018

From the 8.6.18 Issue

August 6 -

19, 2018 • www.char

No. 17 • $2.25

Charleston’s master plan for West Ashley solidifies to implement two years of input the various ideas from public meetings, on housing, land-use, but the work greenspace, transportat is just getting started ion and economic development. PAGE

Furman University ovine assistance employs to trim lawn care costs at Poinsett Highway solar farm. Page 3

Island living

Kiawah Partners working with Big Rock Partners on senior living developmen t. Page 13

Cast iron cook ware company

INSIDE

Upfront ................... SC Biz News Briefs ............. 2 ................ 3 Best Advice ................... By Andy Owens ....... 4 In Focus: aowens@sc about what biznews.com Architecture, he Engineering ing inspiration wants to use, and then and Construction takfrom vintage hen Isaac Morton ................11 List: Heating cast iron from started Smithey decades ago to expand and Air Ironware Co. on his ideas. Contractors ................... The company in 2014, his was has goal boxy Bonus List: Commercial .....22 industrial spot grown from a small, cookware he to make the kind of cast iron 5,000-squa would Moving and Storage on James Island Four years later, use in his own kitchen. re-foot production to a Companies................... the company mer Navy base site to a larger commercia has moved in North Charlestonon the forAt Work ................... ......23 l space and The company ing its product ...........25 is expandPeer to Peer ................... also hired Will . Copenhaver sion, Smithey line. Along with the expan- as vice president .....27 Hot Properties of marketing also added an .....................28 to the team. and sales. industry veteran Copenhaver spent 10 Viewpoint ................... years with and also worked ........29 Day in the Life Morton’s designs with Nautica, Le Creuset .................... for the company’s sulting firm 30 brand cast iron conLandor,

cookware come

line of from him thinking

Rendering/City

expands, nam es new

Page 9

Derrick Myers seasons cast iron skillets at Smithey Ironware’s North Charleston site. (Photo/Andy Owens)

CHARLESTON UNDER CONSTRUCTION

By Patrick Hoff

Who is Projects, companiesbuilding what in the Charleston , prices, projected area? timelines, photos and stories. Page 11

(Rendering/City of Charleston)

of Charleston

Tribeca Film Festival

See CAST IRON,

harleston began implementing its master plan to revitalize West Ashley earlier this year, investing in several projects across the area. Plan West Ashley, developed by the West Ashley Revitalization Commission, is the largest, most wide-ranging master plan in the city’s history, according to Jacob Lindsey, director of Charleston’s Department of Planning, Preservation and Sustainability. “We have done specific planning efforts for other parts of the city, including downtown, Folly Road, Johns Island, and it was time for West Ashley to get its own dedicated master plan,” he said. The revitalization of West Ashley was a priority for Mayor John Tecklenburg on the 2015 campaign trail and has been a main focus since he took office. The

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GUIDING GROWTH

Chemical company locating its global headquarter s at former industrial site near Park Circle. Page 11

Lamb mowers

West Ashley revitalization effort gaining momentum

S.C. ASS PRESS OCI AWA ATION

lestonbusiness.com Volume 24,

Ingevity bringing HQ to Garco

city formed the West Ashley Revitalization Commission in August 2016, with public meetings to develop the master beginning in spring 2017. “The quality of life in West Ashley really is great,” Lindsey said. “But we want to provide some needed enhancements for public space, recreation, mobility, and obviously to improve how we handle stormwater and drainage.” The plan is broken up into five chapters, each covering a different aspect of revitalization: community design and land use; transportation; green infrastructure and sustainability; housing; and economic development. Each chapter outlines the current conditions, concerns voiced by the community, a vision for improving the situation and a list of implementation goals.

Prior to the passage of Plan West Ashley, Tecklenburg stipulated that implementing all parts of the plan would cost “millions and millions” of dollars over the next few decades. Funding mechanisms for different projects are suggested throughout the plan, such as using grants; the transportation half-cent sales tax allocation; and Charleston County transportation funds that come from taxes on gasoline. Tax increment financing, for which part of West Ashley along the Sam Rittenberg Boulevard corridor has already been designated, was also suggested. That funding vehicle reallocates tax revenue from increased property values in the designated area to make public investments, such as improved transportation infrastructure and new parks

otherNEWSMAKERS When Isaac Morton started Smithey Ironware Co. in 2014, his goal was to make the kind of cast iron cookware he would use in his own kitchen. The company has since expanded its product line and moved into a 5,000-square-foot production site on the former Navy base in North Charleston. Morton’s designs for the company’s line of cast iron cookware come from him thinking about what he wants to use, and then taking inspiration from vintage cast iron from decades ago. Products are sold online and by 60 retail vendors in 17 states, the District of Columbia and Bermuda.

32 Charleston Regional Business Journal | Newsmakers

Derrick Myers seasons cast iron skillets at Smithey Ironware’s North Charleston site. (Photo/Andy Owens)

and recreation facilities, to try to stimulate private investment. Peter Shahid, councilman for District 9 in West Ashley and chairman of the West Ashley Revitalization Commission said, though, that the city will be looking for “low-hanging fruit” that doesn’t require a lot of financial investment. “Some of that could be ordinances, dealing with particularly sustainability,” Shahid said. “How do we deal with ordinances to make sure that things that we planned for avoid flooding issues; on the business development side, issues dealing with making the Design Review Board more streamlined approach so that business and developers have a quicker response to encourage permitting.” CRBJ

NEWS MAKERS 2018

From the 8.20.18 Issue

August 20 -

September

By Melinda

Below the surface

By Patrick Hoff

S.C. ASS PRESS OCIA AWA TION

On the edge

Third building in the WestEdge developmen underway in Charleston.t Page 10

Waldrop

mwaldrop@s cbiznews.com

Volume 24,

No. 18 • $2.25

to wait — for now

the General Assembly repealed a allowed SCE&G s legal wrangling to raise rates state law that expressed of the V.C. to recoup costs concerns Summer tric & Gas Co. between S.C. ElecDominion and about in January.” and state lawmakers failed — Richmond, nuclear project, which continues proposed $14.6 SCANA Corp. announced bidding to acquire to unfold, the company Energy said its patience Va.-based Dominion potential deal billion merger in January. a could run out. “Our goal has ny is, like other the utility’s parent compaThe received a quick from the board interested players, ting everything always been to avoid see how everything of Cayce-base endorsement waiting to getd SCANA and said Chet Wade, tied up in long litigation,” was approved by the But if recently shakes out. company’s shareholde Dominion’s in July; but it passed legislation corporate communica vice president has rs stands — tions. “Unfortuna of Legislature, whichrun into speed bumps in what is happening the also finds itself tely, today is exactly embroiled what we See SCANA, Page 11

MONUMENTAL Reactions to

Still working

Program helps seniors part of South Carolina’s stay labor force. Page 18

the two new

Medal of Honor

PAGE 6

INSIDE

Architect Moshe Safdie's two new created using designs were public input gathered (Renderings/ in June. Medal of Honor Museum Foundation)

Manufacturing

Port: Growing volumes support big investments By Liz Segrist

lsegrist@scb iznews.com

.C. Ports Authority CEO Jim Newsome said he wants cargo volumes to use the increase the Port of Charlestonto make the case in should be eligible that more federal funding for its for project. harbor deepening “It was the best year in our history,” some said of Newfiscal The multiyear 2018, which ended June 30. more than $500 deepening project will cost harbor depth, million and yield a 52-foot granting containersh to port terminals ips access at any time during high of day, not just tides. The port is now working Corps of Engineers with to recalculate the Army benefit-cost the project’s ratio, value it will bring to determine how much and how much Newsome said that is worth. the port should more cargo coming through higher benefit-cosbetter justify the need for a t ratio. This the chances of more federal could increase intense nationwide funding amid competition pool of money. for the same Federal funding has fallen short port’s projections of the thus far. The state respond-

designs have Museum been mixed, but one sentiment clear: Everyone is still wants the museum to be in Mount Pleasant. built

Upfront ................... SC Biz News Briefs ............. 2 ................ 3 Best Advice ................... ....... 4 In Focus: Health The Business Care: of Elder Care .. 15 List:

Retirement Communities ....22 Bonus List: Home Care (Nonmedical ) ... 21 At Work ................... ...........25 Peer to Peer ................... .....27 Hot Properties .....................28 Viewpoint ................... ........29 Day in the Life .................... 30

See PORT, Page

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The museum would have used one of these two designs had it been built. (Renderings/Medal of Honor Museum Foundation)

hen retired Gen. Patrick Brady envisions the National Medal of Honor Museum, he pictures a museum that’s “unique among all the museums in the world,” honoring Medal of Honor recipients from the Civil War to the present day. “We want a kid to walk in the front door of that museum, where he’s going to see superheroes wearing dog tags, not capes, and we want him to walk out the back door a different person,” Brady said to a group of Mount Pleasant residents at a public forum over the summer. He received the Medal of Honor in 1968. For now, though, a Medal of Honor museum won’t find a home in Mount Pleasant after the Patriots Point Development Authority terminated the Medal of Honor Museum Foundation’s 99-year lease in early December. After hiring Joe Daniels, former

(Photo/File)

Then, in October, the foundation announced that it would consider other locations for the Medal of Honor Museum. “All I can say is I had zero intention, the organization had zero intention, of coming in and kind of taking the project away because we still think this is such a special place,” Daniels told Mount Pleasant Town Council. He added that the foundation recently added new five new board members with no geographic ties to Mount Pleasant or South Carolina, which played into the decision. “They’re just sitting there saying, ‘We have a fiduciary responsibility to create this museum that is going to be what we call America’s next national treasure,’” Daniels said. “And that means we need a lot of people, as many people as possible.” Ray Chandler, chairman of the Patriots Point Development Authority board, said in October that he was upset

by the decision. “I was very disappointed that they were not committed to Patriots Point and to Mount Pleasant after Patriots Point Development Authority has spent literally hundreds of hours and a vast amount of dollars in attempting to ensure that this project was an integral part of Patriots Point and Mount Pleasant,” he said. Thus, the authority’s board voted unanimously to cancel the foundation’s lease, citing the foundation’s recently nationwide search for a new location; a lack of progress in obtaining zoning approvals from Mount Pleasant; and a halt to the work to move Patriots Point Road. “We waited and waited and waited, and we just can’t wait with the state’s resources,” he said. The resolution invites the foundation to reconsider Patriots Point for the Medal of Honor Museum after the nationwide search is completed. CRBJ

otherNEWSMAKERS South Carolina is seeing an increasing demand for aging-related services as more of the baby boomer generation enters retirement years, several experts said. This increase of people ages 65 and older, as well as the influx of retiree transplants, strains existing long-term care service providers and retirement communities, which is driving up costs. It costs around $50,000 annually for many in-home care services and more than $100,000 each year for nursing homes or senior communities. S.C. aging experts said families need to discuss how to pay for care well in advance of needing it.

34 Charleston Regional Business Journal | Newsmakers

at scmanufacturingconference.com

PRESENTED

president and CEO of the National 9/11 Memorial and Museum, as its fourth CEO in five years, the foundation spent most of the summer asking for public opinion on three redesigns of the museum. Some controversy arose, though, when some members of Mount Pleasant Town Council, including Mayor Will Haynie, said they didn’t feel like the foundation had truly redesigned the museum. The foundation’s original design had been rejected by Mount Pleasant’s Planning Commission its proposed height. “The designs were not completely new submittals,” Bustos said. “They were just a variation of the exact same submittal. So because we had given them three deferrals and a waiver and offered them to work with staff and do anything we could to help them bring back something that was within the zoning ordinances of the town, I was a little disappointed.”

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lestonbusiness.com

Dominion Energy content

Market Facts provides an annual guide to information and the data the region’s economy.driving INSIDE

Medal of Honor museum turmoil brings project to a close

2, 2018 • www.char

NEWS MAKERS 2018

From the 9.3.18 Issue

September

3 - 16, 2018

Dorchester County lawsuit says campaign of misinformation led to costly opioid abuse

S.C. ASS PRESS OCIA AWA TION

lestonbusiness.com

Recruiting tool

BAD

Mount Pleasant-ba sed platform gets infusion cash from investors. of Page 25

Back pay

Nuclear plant workers receive back pay after filing complaint on notification.

MEDICINE

Faced with mounting health care costs, lost productivit y and dozens of deaths, Dorchester County is suing a group of retailers, doctors, drug representa tives and pharmaceu tical manufactu rers; they say they’ve done nothing wrong.

PAGE 19

Page 10

Labor pool

Proponents say law clearing felons’ records could increase workforce help in S.C. Page 26

INSIDE

Upfront ................... SC Biz News Briefs ............. 2 ................ 3 Best Advice ................... ....... 4 In Focus: Education and Workforce Developmen t .....25 List: Postgraduate Degree Programs Bonus List: Private ...............29 Schools .. 31 At Work ................... ...........33 Peer to Peer ................... .....35 Hot Properties .................... 36 Viewpoint ................... ....... 38

INSIDE PAGE 20: Opioid-rel ated deaths by county PAGE 21: Who is being sued by Dorcheste PAGE 22: Why r County? lawyers don’t want this to become a federal case

Volume 24,

No. 19 • $2.25

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Negotiations yet to start after union win at Boeing

By Liz Segrist

lsegrist@scb iznews.com

ore than three International months after the Association Machinists of ers won an election and Aerospace Workto represent of Boeing South a contingent Carolina workers, ations have occurred no negotiaerospace campus. at the North Charleston The tensions the May electionthat mounted leading up to have continued ongoing debate amid tion itself and over the legality of the an eleca after the union refusal by Boeing to negotiate victory. The Machinists union has aggressively to unionize workers at tried the North Charleston campus since 2015, including election and a canceled a workers. Boeing,major loss with production business leaders, along with state officials and public statementshas matched that fervor with paign in an effort and an advertising camand the state’s to keep the plant union-free unionization for recruiters rate low enough to brag about recruitment during company pitches. The latest unionizatio n attempt centered on fewer than 200 Boeing workers. The flight readiness S.C. flight line inspectors in technicians and North Charleston testing, first flights and customerprep 787s for The workers deliveries. resentation on voted in favor of union repIn a right-to-woMay 31, by a vote of 104-65. rk state, all of will be represented those workers , regardless of choose to join whether they or pay The union win union dues. is significant that has been in a red state union efforts incredibly unwelcoming over the years. to Gov. Henry See UNION, Page

By Patrick Hoff n illegal drug ring has been operating unchecked in South Carolina for the better part of a decade, according to attorneys for Dorchester County. Members of the drug ring come to work every day wearing business suits and lab coats, sitting in meetings and giving professional advice to people who trust them. In May, a central figure in the alleged drug ring was toppled. Dr. Mackie J. Walker Jr., a former podiatrist in Aiken, was sentenced to more than 15 years in federal prison for selling prescriptions of oxycodone without any legitimate medical purpose. Walker is one of 42 defendants in a Dorchester County lawsuit that accuses opioid manufactur-

• www.char

SPECIAL REPOR

Going west

Construction, real estate expected to continue grow across region. to Page 6

Debate over architec

ture Design chosen for Medal of Honor Museum as Mount for time to explore Pleasant asks new ideas. Page 12

ers, distributors and prescribers of neglecting their duty to protect the public from drug abuse, leading to excess prescriptions and overuse of a variety of opioid medications. The U.S. Attorney’s Office for the District of South Carolina said Walker earned as much as $1,000 per prescription, and he wrote enough prescriptions to be considered a drug dealer — over 1 kilogram worth. In South Carolina, 792 people died from opioid overdose in 2017, 28 of them in Dorchester County. Across the country, opioid misuse has an economic impact of $78.5 billion per year, according to the Centers for Disease Control and Prevention, including the costs of

health care, lost productivity, addiction treatment and law enforcement. Opioids are approved by the Food and Drug Administration for management of moderate to severe pain, typically for a few days or more. The drug companies accused in the lawsuit have denied any wrongdoing. “Those bringing lawsuits would be better served addressing the root causes, rather than trying to redirect blame through litigation,” John Parker, a senior vice president at the Healthcare Distribution Alliance — a trade association that includes McKesson Corp., Cardinal Health Inc. and Amerisource-Bergen Drug Corp. — said in a statement. CRBJ

“The sales techniques were at the very least unethical, if not illegal, and resulted in the market being flooded with opioids that were not needed.”

“Those bringing lawsuits would be better served addressing the root causes, rather than trying to redirect blame through litigation.”

Paul Tinkler One of five attorneys for Dorchester County in the opioid lawsuit

John Parker senior vice president, Healthcare Distribution Alliance

otherNEWSMAKERS New office buildings, houses, mixed-use projects and industrial warehouses are in high demand in the Lowcountry, often reaching tenant capacity before construction finishes. Significant market growth in the years since the recession has spurred demand for commercial and residential product, according to several real estate professionals at a Power Breakfast held by the Business Journal earlier this year. All sectors — office, industrial, retail, residential and multifamily — are benefiting from the influx of people and jobs over the past decade, the panelists said.

36 Charleston Regional Business Journal | Newsmakers

843.554.3466 pdastage.com

Corporate | Galas & Parties | Special Events | Festivals | Weddings

NEWS MAKERS 2018

From the 9.17.18 Issue

September

17 - 30, 2018

Mercedes-Benz Vans now building Sprinters in Lowcountry

• www.char

S.C. ASS PRESS OCIA AWA TION

lestonbusiness.com

City pivots to volu ntary certificat ion for judge Volume 24,

Google this

Tech giant to add another $600 million to Berkeley County data center. Page 17

Charging cars

SCE&G executive

says

businesses have vital role to play in electric car charging. Page 7

Business partners

MUSC joins with Siemens Healthineers to check and improve health costs results. Page 11

Sarah Leverett

State says goodbye legal pioneer who to mentored generations of attorneys. Page 8

Reactions mixed after By Patrick Hoff

phoff@scbiz

strikes down

SPRINTI AHEAD NG B For the first time in Vans now produces its history, Mercedes-Ben z finish in the United Sprinters from start to States, after a decade of reassembling more than vans in Ladson. Production rates and hiring are ramp up through expected to 2020. PAGE 12

INSIDE Upfront ................... SC Biz News Briefs ............. 2 ................ 3 Best Advice ................... ....... 4 In Focus: Information Technology ..... 17 List: IT Services and Networking Companies At Work ................... ......22 ...........25 Peer to Peer ................... Viewpoint ................... .....28 ........29 Day in the Life .................... 30

Experiencing

Solar heats up in S.C. as busin ess installations surge By Andy Owens

aowens@scb iznews.com

usinesses and residents have ed more than $30 million collecttives from in incenlaunching solar South Carolina’s utilities for projects since 2014. That’s when the law went ing privately into effect allowowned solar electricity back operations to sell some industry to the state’s power grid. And ities think it’s officials, businesses and utiltime for the incentives and state to expand access to solar tion. power generaAct 236 outlined parameters for ing, a system net meterfor collecting selling it to solar energy electric companies and agreed-upon at a specific, rate that is then usage. credited against The net-meterin g act put how much can be produced limitations on consumers — by businesses and 2% generation from of the state’s average peak how much can five previous years — and be facility, depending produced by any particular Danny Kassis, on the size. vice president relations and of customer renewables for Gas Co. Inc., S.C. Electric said Act 236 wasn’t intended & to See SOLAR, Page

STEM

production capabilities for the Sprinter vans to the United States, investing $500 million to expand the existing campus beyond a reassembly site. Company executives said the decision to create a van manufacturing campus in South Carolina speeds up production for Sprinter vans. Production is underway and vans are rolling off the final assembly line at the manufacturing campus along Palmetto Commerce Parkway, just outside of North Charleston. The site employs 900 people today, up from around 150 several years ago. More hiring will continue through 2020 — up to 1,300 people — as production ramps up over the next two years. Company officials declined to share production rates. Volker Mornhinweg, head of Mercedes-Benz Vans, described the plant as technologically advanced, agile and adaptive — incorporating robots, computer-assisted technology and automation into the build process. Inside the body shop, workers and robots weld parts together to create the Sprinter van bodies before they are painted. The paint shop uses emu feathers to clean the surface of vans ahead of painting. Cleaned vans enter a large tank to undergo a 360-degree rotation for painting. Robots then perform much of the final painting work. After painting, the vans head to final assembly, where workers install interior parts such as dashboards and wiring to ready the vehicles for customers. “Now we are here again to celebrate the opening of a world-class facility that produces Sprinter vans for the entire North American market and continues to bring many jobs into the North American market,” Balke said. CRBJ

(Photo/Kim McManus)

otherNEWSMAKERS Businesses and residents have collected more than $30 million in incentives from S.C. utilities for launching solar projects since 2014. That’s when the law went into effect allowing privately owned solar operations to sell electricity back to the state’s power grid. Some industry officials and businesses think it’s time for the state to increase incentives and access to solar power generation, such as expanding Act 236. The law outlines a system for collecting solar energy and selling it to electric companies at an agreed-upon rate that is then credited against usage.

38 Charleston Regional Business Journal | Newsmakers

lucrative indust ry

SPAWAR encourages science, technology, students to pursue engineering and math careers with hands-on experience. Page 20

n summer 2016, Mercedes-Benz Vans’ executives and state officials dug shovels into the ground, pushing up dirt to signify the start of the automaker’s large-scale campus expansion in Ladson. A flurry of hiring, training and construction over the past two years has yielded a new body shop, a new paint shop and an expanded final assembly building — transforming the van reassembly site to a full-scale production operation. “The last two years have been a massive undertaking,” said Michael Balke, president and CEO of Mercedes-Benz Vans. The German company unveiled the American-made Sprinter van in September. Company executives and workers cheered as Balke drove the newest version of the Sprinter van onto a stage. S.C. politicians, economic developers and business leaders were among the crowd. Sprinter vans are now being produced from start to finish in the Lowcountry, rather than importing them in pieces from Europe. Since 2006, Mercedes has reassembled Sprinter and Metris vans at its Lowcountry plant. The company decided in 2015 to bring fullscale

Solar panels line the roof of Kion North America’s plant and U.S. headquarters on U.S. Highway 78 in Summerville. (Photo/Andy Owens)

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tour guides

news.com Charleston filed a motion on U.S. District Sept. 4 asking Judge David fter a judge struck down Norton to recon- ant in the city,” said sider his ruling mandatory training and Susan Herdina, declaring the guide testing for tour mandatory tour corporation counsel in Charleston for Charleston deputy guides time, licensing unconstitutional. last month, . “We are In the mean- ready and hopeful we’ll though, the instituting a be city voluntary certificationthe city is tour guide certification will offer a voluntary the mandatory licensing able to reinstitute as it fights to program get the judge’s regulations as as a court allows program. “We didn’t order overturned soon us to do so. frankly, a mandatory . we thought want to scrap it entirely We think because a licensing program licensing program that, was importis the See TOUR GUIDES, Page 10

Photo/Kim McManus

By Liz Segrist

No. 20 • $2.25

mandatory testing for

NEWS MAKERS 2018

From the 10.1.18 Issue

October 1 -

14, 2018 • www.char

S.C. ASS PRESS OCIA AWA TION

lestonbusiness.com

Good Business

Event Planning

2018

Tips, tricks, checklists and vendors to help make your event a success. Inside

By Patrick Hoff

Volume 24,

By Liz Segrist

lsegrist@scb iznews.com

o begin addressing the region’s sive shortage masof the Lowcountr affordable housing, y needs housing that rent for units less Michelle Mapp, than $1,000 a month, said CEO of the S.C. Community See HOUSING, Page 13

Local First’s Hoff)

Business leaders say tariff battl e hurting industry

Labor issues

S.C. manufacture rs to see continued expect workforce shortages. Page 15

Cybersecurity

By Liz Segrist

lsegrist@scb iznews.com

.C. manufactu nomic experts ring executives, ecoand the head of Charleston of the Port istration’s ongoing say the Trump admintrade war is misguided and will likely against China desired results. not yield the

Small businesses increasingly targets online criminals. of Page 17

INSIDE

Upfront ................... SC Biz News Briefs ............. 2 ................ 3 Best Advice ................... In Focus: Manufacturin ....... 4 g..... 15 List: Manufacturer s ............... 21 Bonus List: Industrial Staffing Agencies ...............23 At Work ................... ...........25 Peer to Peer ................... Brewers are looking .....27 Hot Properties for ways to stand .....................28 out from big beer another as the Viewpoint ................... companies and Charleston craft ........29 Day in the Life from one beer market continues .................... 30 to expand. Page 6 David McLain owns Fatty’s Beer Works, one of eight breweries in Charleston’s Brewery District. (Photo/Patric k Hoff)

The administrat ion wants to iffs — taxes on overseas goods use the tarChina to change — to what President pressure Trump calls Donald unfair trade practices and icies related to U.S. technology poltual property, including forcingand intellecpanies to transfer U.S. comtechnology counterparts. to Chinese “We have been of changes that very clear about the type have given Chinaneed to be made, and we every opportunity us more fairly,” to treat Trump said “But, so far, in a statement. China change its practices.” has been unwilling to Jim Newsome, president and S.C. Ports Authority, CEO of the said that while the tariffs

By Patrick Hoff he number of craft breweries in the Charleston region has nearly tripled in the past five years, causing breweries to find ways to distinguish themselves from both local competitors and big, national beers. The Brewers Association, a nonprofit trade group for craft brewers based in Boulder, Colo., defines a craft brewer as small, producing fewer than 6 million barrels per year; independent, meaning less than 25% of the brewery is owned or controlled by a non-craft brewer; and traditional, which

No. 21 • $2.25

Traffic, transpo rtation issues tied to housing affordability

phoff@scbiz news.com

teve Palmer used to think ny’s culture of a compaas a feel-good notion. “I always thought ... culture was, yeah, Google, they ‘Oh there’s pingpong have this great culture, and tables and beer and there’s a Karalee Nielsen Fallert (left) and See RESTAURATE Steve Palmer spoke during the opening URS, Page 12 keynote of Lowcountry Good Business Summit. (Photo/Patrick

Charleston brewers looking for ways to stand out

See TARIFFS,

Page 10

Going bigger

Joe Riley Waterfront cleared for 400-foot Park expansion along Charleston Harbor. Page 9

means a majority of its products is beer, and not flavored malt beverages such as spiked seltzer or hard soda. “There are more challenges than ever,” said Julia Herz, craft beer program director for the Brewers Association. She added: “It’s not just about the beer lover and information, but because those acquired brands are in the mix from the largest of large breweries, they have much more muscle at the distributor level and much more attention to get on the restaurant menu or

David McLain owns Fatty’s Beer Works, one of eight breweries in Charleston’s Brewery District. (Photo/Patrick Hoff)

liquor store shelf.” To help craft breweries stand out from bigger beer companies and the craft brewers they’ve acquired, the Brewers Association created a logo that identifies the brewery as a craft brewer. Almost all breweries in the Charleston area use the logo. Eight Charleston breweries in the Upper Peninsula have also banded together to form

The Army Corps of Engineers has granted approval for the planned expansion of Joe Riley Waterfront Park. The park’s riverwalk will be extended by approximately 400 feet, starting at the park’s entrance on Concord Street and ending at Cumberland Street. The expanded park will also enlarge the dock access facility from a single water taxi drop-off to a marina facility for the water taxi and for the public. Construction is expected to begin in 2019. Lowe, a real estate development company, is also planning a 225-room hotel adjacent to the expanded park at 176 Concord St.

40 Charleston Regional Business Journal | Newsmakers

the Charleston Brewery District, which allows the breweries to share resources and collaborate on marketing campaigns and brewing beers. “It’s just a way to kind of get together and help save cost and also get the word out there and help differentiate ourselves in a very crowded market,” said Jamie Martin, co-owner of Cooper River Brewing Co. CRBJ

Chris Brown of Holy City Brewing said as big beer companies buy formerly independent craft breweries, it can be hard to determine each brewery’s ownership. (Photo/Patrick Hoff)

otherNEWSMAKERS

Lowe, a real estate company, is planning a 225-room hotel, including a cafe, restaurant, retail space, and rooftop terrace and spa, adjacent to the expanded Joe Riley Waterfront Park. (Rendering/Provided)

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Summit explores Charleston’s chall enges

Restaurateurs say culture critical to compan ies’ success

NEWS MAKERS 2018

From the 10.15.18 Issue

October 15

- 28, 2018 •

As jobs keep flowing in, region struggles to supply workforce

S.C. ASS PRESS OCIA AWA TION

ness.com

of the city. The only issue t the end of March, of funding, which was an undisclosed amount company and said he’s normally before an energetic Ben Leedle stood had yet to be with business not involved Six months crowd of Charlesaspects of projects, ton residents later, everything secured. talking. packed into Community did the house in West The Schoolmembers seemed had changed. Ashley and A Blue Zones tain and more uncerBlue Zones announced Project “only LLC, that on the potential funders of the works … if project were the private sector and the gram, had deemeda community wellness fence when pro- Zones, Leedle, the CEO public want it and there’s the city ready on a five-year returned for an appetite for sector both further discussionof Blue Buettner said project to improve to embark initiative innovation,” at the at Charles of the the health He added, “I’m time. Dan Buettner, Towne Landing. not sure if this who founded community the for-profit See BLUE ZONES, Page 10

Decade-old I-526 project back on again

n Higher education, K-12 and athletics facilities going up across the region. Page 13 Crafting an industry

Small, independen t traditional: Craft and brewers filling up the Palmetto State. Page 2

Health care merger

INSIDE

Upfront ................... SC Biz News Briefs ............. 2 ................ 3 Best Advice ................... ....... 4 In Focus: Architecture, Engineering and Construction List: Landscape ............... 15 Architecture Firms At Work ................................23 ...........25 Peer to Peer ................... Viewpoint ................... .....28 ........29 Day in the Life .................... 30

No. 22 • $2.25

By Patrick Hoff

phoff@scbiz news.com

Building educatio

Greenville, Midlands hospital systems rebrand combined health care business. Page 3

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National health company exits Charleston

The Lowcountry manufacturing sector needs up like Mercedes-Ben to 500 more local z Vans in Ladson, graduates each which is currently trying to hire hundreds year to fill openings at companies of workers. (Photo/Kim McManus)

FILLING THE GAPS An expected 35,000 new jobs in the Charleston region to companies already in the next five struggling to fill years will add more pressure existing openings. apprenticeships Business leaders and certification are advocating programs to avoid for more costly out-of-state recruitment. PAGE 6

By Liz Segrist

lsegrist@scb iznews.com

nterstate 526 is back on the table after a 5-2 vote by the S.C. Transportation Infrastructu which has been re Bank to revive the project, than a decade. on again, off again for more The vote at ing means the the recent SIB board meet$420 remains designated million set aside in 2006 for the Charleston County is still 526 project, and coming up with on the hook for ed to build out the remaining funding needthe highway. The county Transportation and the S.C. Departmen t of within 45 days will negotiate a new contract of the vote, line in mid-Novem putting the deadThe plan calls ber. for extending Expressway the Mark Clark about 8 miles from West Ashley, where it currently terminates at 17, onto Johns U.S. Highway James Island Island and continuing over near James Island to Since the 1980s, County when the interstatePark. opened, people first have debated the road’s constructio continuation of n. Sen. Hugh Leatherman , a Florence Republican who sits on the bank board and voted

CHARLESTON UNDER CONSTRUCTION See 526, Page

By Liz Segrist he No. 1 concern for companies considering a move to the Lowcountry is whether they can find the workers they need, said Mike Graney, the Charleston Regional Development Alliance’s vice president of global business development. “Ninety-nine percent of the companies we talk to, the first question they ask is about talent,” Graney said. “We have to convince them that we either have it, we can train it or we can recruit it. And if we can’t do that, they’re moving on. Even if we have the best site, the best infrastructure, the best incentives in the world, it’s not going to matter if they can’t find the talent.” Many industries — including construction, health care, hospitality, manufacturing and technology — report ongoing struggles to find enough local workers with the needed skills to fill jobs. Charleston is not alone in the workforce struggle. Nationwide, a strong economy, a low unemployment rate and an increased demand for skilled work-

www.charlestonbusi

Volume 24,

Holy City Linen

Glimpse behind the curtains of a company that services hospitality businesses. Page 30

Who is Projects, companiesbuilding what in the Charleston , prices, projected area? timelines, photos and stories. Page 13

ers in many industries are creating challenges for companies to find and train people for the positions for which they are hiring. More than ever before, the Lowcountry needs workers with science, technology, engineering and math skills, for example, according to the 2018 Talent Demand Study from the Charleston Metro Chamber of Commerce and CRDA. The problem, Graney said, is a nationwide mismatch between the jobs that are available and the skill sets and degrees people have or are working toward. “Charleston is a microcosm of the U.S. ... The job mosaic in the U.S. is changing,” Graney said. “A lot of people who have skills for job A and B, particularly lower- and middle-skilled jobs, those jobs are leaving or have left, and people are not necessarily equipped for the new-economy skills required by jobs C and D, and so I think that

is a huge issue.” Continued job growth could exacerbate the problem. The Charleston region will add 35,000 new jobs over the next five years, the Talent Demand Study anticipates — up 32% from the 2016 study. Talent supply gaps are already apparent. Companies hiring production and mechanical workers need 300 to 500 more local graduates each year to fill job openings in the Lowcountry, data show. Software and IT companies need up to 300 more local graduates each year; 250 more workers are needed for hospitality jobs every year; and 200 more skilled workers are needed annually for construction positions. Matthew Brewer, division manager of Choate Construction in Mount Pleasant, said the U.S. construction sector desperately needs more skilled craft workers. He said Charleston is in need of plumbers, electricians, pipe layers, carpenters, masons, and heating and air technicians. Economic developers, recruit-

otherNEWSMAKERS The extension of Interstate 526 onto Johns Island and over to James Island is back on the table after the S.C. Transportation Infrastructure Bank voted 5-2 to revive the project, which has been on again, off again for more than a decade. The vote means the $420 million set aside in 2006 remains designated for the 526 project, and Charleston County is still on the hook for coming up with the remaining funding needed to build out the $770 million highway.

42 Charleston Regional Business Journal | Newsmakers

Interstate 526 is a heavily traveled commuter route connecting employees to their workplaces and homes across the Charleston region. (Photo/Andrew Sprague)

ers and business executives are pushing the notion that a four-year college degree is not always the best route to a well-paying job in the Lowcountry. The talent study stresses a need for more targeted workforce training programs and apprenticeships. “Schools are working to align their offerings with the needs to address the issue, but we need more of it,” said Claire Gibbons, CRDA’s global marketing director. “We’re still not at the volume that we need to be. We’re still not producing enough local talent whose skills are aligned with the current — much less the projected — openings.” Tina Wirth, the Charleston Metro Chamber’s senior vice president of talent advancement, said investing in workforce programs is critical. “Charleston can’t only import talent to meet the demand. ... We owe it to the people who live here and the young people who are going to become tomorrow’s workforce ... to show them very clear pathways to good-paying jobs and economic prosperity,” Wirth said. CRBJ

NEWS MAKERS 2018

From the 10.29.18 Issue

October 29

- November

11, 2018 • www.char

S.C. ASS PRESS OCIA AWA TION

lestonbusiness.com

‘We just haven’t Blockchain building

By Patrick Hoff

phoff@scbiz news.com

Volume 24,

No. 23 • $2.25

cacy at the chamber, said the report word “attainabili uses the afford new report a house here, from the Charleston ty” because the ty” rather than “affordabili Company funds Metro Chamber also. That seems government project with of what has definitions pretty reasonable goal. of Commerce like a cryptocurrency data behind ” puts Scott constitutes affordable housing, The Charleston what many technology. residents have said which 38 metro region Page 15 known for the Lowcountry chamber is important but isn’t people a day, is growing by Attainable housing what the past few years: is trying 10 of whom are born “Really, what to address with this report. and 28 who move from Charleston region. is hard to come by we’re looking in the body elsewhere. Manyhere the migrants for to be able to Ian Scott, senior of attain housing is every- eastern locales,are moving from other vice president their needs,” Souththat meets Scott said. “If of advoSpartanburg, such as Columbia, Greenville, this region, you’re working Photo/Nick Morrish/British Charlotte and we think you Atlanta. This Airways should be able in to See HOUSING, Page 6

New nonstop flights to connect Charleston, London next year

Medal of Honor museum to look at other locales

Billions served

Food and beverage in billions to South brings supporting more Carolina, than 200,000 jobs. Page 2

Buy now, pay

later

CALLING ON W

South Carolina among with lowest average states card debt nationally. credit Page 15

Electric assets

Duke Energy proposes program to deploy electric infrastructur e for transportation. Page 3

INSIDE

Upfront ................... SC Biz News Briefs ............. 2 ................ 3 Best Advice ................... ....... 4 In Focus:

LONDON

When British Airways launches twice-weekl in April, South y nonstop service Carolina begins between London its first ever trans-Atlanti and Charleston run through October, c commercial flight. although customer The seasonal flights demand could increase the frequency. PAGE 10

Financial Services List: Credit Unions .............. 15 .............. 21 Bonus List:

Accounting Firms ...............22 At Work ................... ...........25 Hot Properties ................... Peer to Peer ................... ..27 Viewpoint ................... .....28 ........29 Day in the Life .................... 30

Photo/File

Building 787s

By Liz Segrist

By Patrick Hoff

phoff@scbiz news.com

hen Joe Daniels of the Medal took over as CEO of Honor Museum Foundation, one of his was to get public input on the main goals museum. design of the “We want to time,” he said do this right from the first intention is to in a June interview. “So listen, and it’s our tive of how we’re going to be reflecgoing forward. going to build this museum It’s going to open, transparent be a much more the folks from , collaborative endeavor with Charleston, and then the surrounding Mount Pleasant, counties and Six months later, though, his focus, state.” foundation’s, and the has design to finding shifted gears from finding a a new location. ning of the month, At the beginthe foundation directors voted ’s board of to begin a targeted search of potential national The search will new sites for the museum. consider market en tourism — size, provboth overall and community and support for U.S. “patriotic” — “All I can say history. is I had zero organization had zero intention,intention, the and kind of taking the project of coming in we still think away because this is such a special place,” See MEDAL OF HONOR, Page 8

Take a look behind Boeing’s assembly the scenes at in North Charleston.facilities Page 30

(Photo/Nick Morrish/British Airways)

harleston business and tourist travelers will be able to fly nonstop to London next year aboard a British Airways 787-8 Dreamliner; it will be the state’s first trans-Atlantic service. The new nonstop flights connecting Charleston and London will boost tourism and give the state an edge during recruitment conversations with international companies, according to more than 10 state and Lowcountry officials. Six years of recruitment talks, $1.3 million in incentives and growing pas-

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kept up’: Repo rt quantifies hous ing woes

senger volumes at Charleston International Airport persuaded British Airways to launch the twice-weekly flights between London’s Heathrow Airport and Charleston beginning April 4. The seasonal service will run through Oct. 24, at which point the airline will evaluate whether to continue, increase or halt the service. “It will be the commercial performance that dictates where we go,” said Simon Brooks, British Airways’ senior vice president of North America, during a visit to Charleston. “I have such a good

feeling about this though.” A large cohort of airport and airline officials, business executives and elected leaders gathered at Charleston International Airport in October for the announcement. Many called the flight “a game changer” for the airport and the state. S.C. Commerce Secretary Bobby Hitt and David Ginn, CEO of the Charleston Regional Development Alliance, said the service to London will help market South Carolina as a place for international companies to grow or expand.

The nonstop flights also will benefit existing S.C. companies with European ties, offering business travelers better connectivity, several officials said. From a tourism perspective, Charleston will serve as a gateway to the rest of the state for European travelers. “The average international visitor stays longer, spends more and visits ... several destinations when they come,” said Duane Parrish, director of the S.C. Department of Parks, Recreation and Tourism. “Charleston will be a hub for that.” CRBJ

(Photo/File)

otherNEWSMAKERS A new report from the Charleston Metro Chamber of Commerce puts data behind what many Lowcountry residents have known for the past few years: Attainable housing is hard to come by. The chamber says solving the housing shortage will require public and private entities working together to create a better development climate through expansion of development options on public land and abandoned property; reduction of red tape by zoning for diverse housing types; and taking advantage of markets through incentive-based inclusionary zoning.

44 Charleston Regional Business Journal | Newsmakers

NEWS MAKERS 2018

From the 11.26.18 Issue

November

26 - December

9, 2018 • www.char

S.C. ASS PRESS OCIA AWA TION

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lestonbusiness.com

Public Service Com mission tackles thorny topic of rate relief By Melinda

Plastics ban

Charleston City Council takes first steps toward prohibiting plastic and packaging. straws Page 10

Volume 24,

No. 25 • $2.25

Waldrop

mwaldrop@s that criticized cbiznews.com the abandoned V.C. project management of the Richmond, he first nine Summer days of a monthlong Lawyers representin nuclear reactors. Va.-based Dominion ing to decide hear- in the Dominion has Energy. one the most failed nuclear g all parties involved presented two ed issues ever complicatwould lessen plans its says SCANA subsidiary project, jointly owned faced by the Service Commissio SCE&G ratepayers’ S.C. Public by shorten S.C. Electric state-owned costs and the timetable retaliatory behavior;n included allegations & Gas and utility Santee of payments the nuclear of a parade Cooper, questioned discussions reactors, abandoned related to lihood of a of witnesses of the likeSCANA Corp. in July 2017 mine a permanent as the PSC tries to deter- after the project owners the revelation bankruptcy; had poured rate for SCE&G’s and that at least two bined $9 billion a comofficers have senior SCANA electricity customers. 730,000 struction. into their decadelong never read a scathing report be a de facto ruling That decision will also conon the fate Dominion has $14.6 billion repeatedly said merger between of a proposed that it must SCANA and

See SCE&G, Page

Self-serve bars catching on By Patrick Hoff

Uncork Charleston (top and bottom) and Pour Taproom, both on King Street in Charleston, are among several bars in the area that allow customers to pour their own drinks. (Photos/Patrick Hoff)

Tariffs could hobble Volvo production

Up and away

Aerospace sector

continues skyward Lowcountry and trend in across S.C. Page 11

Divesting Denny’s

Denny’s, which is headquartered in S.C., to sell most company- plans owned locations. Page 3

Test plots

Charleston Hemp Co. working to develop new cash crop for Palmetto State. Page 22

INSIDE Upfront ................... SC Biz News Briefs ............. 2 ................ 3 Best Advice ................... In Focus: Aerospace ....... 4 ............11 List: Aviation and Aerospace Companies ........ 16 Bonus List: Regional Airports ............... 15 At Work ................... ........... 17 Peer to Peer ................... Viewpoint ................... ..... 19 ........ 21 Day in the Life .....................22

NO BARTENDER REQ UIRED Several bars have opened in the Charleston area that allow patrons to serve themselve s beer and wine and taste drinks one sip at a time. Page 6

Uncork Charleston (top) that allow customers and Pour Taproom, both on King Street to pour their own drinks. (Photos/Patric in Charleston, are among several bars in k Hoff) the area

Dreamliner for

By Liz Segrist

lsegrist@scb iznews.com

he ongoing tariff battles China and the between U.S. could cause to build Volvo plant, said Jeff fewer vehicles at its new S.C. Moore, head Charleston Plant. of the Volvo Car Volvo workers in Berkeley production of County began the midsize luxury S60 — the company’s new automaker planssedan — in September. to ramp up production The the next year, over with half of the intended for North American S.C.-made S60s half going to customers, overseas buyers. and The vehicles are slated to at North American begin dealerships this arriving company plans year. The to begin exporting international S60s to customers in 2019. “Our volumes continue to year, and that’s increase next so to the degreebased on that export volume, export volume, that the tariffs impact that we would build said Moore, fewer cars, also manufacturing Volvo Car’s vice president ” for the Americas. of China and the U.S. have been enacting See TARIFFS,

United

United Airlines takes delivery of the company’s first plane fully assembled 787-10, a at Boeing’s facility in North Charleston. Page 13

fter Mike White’s children left for college, he and his wife were looking for a way to give back to their community. “We wanted to open a place where people could appreciate wine as much as we do,” said White, a commercial real estate broker. “I want wine to be more approachable, less pretentious.” Their solution was to open Bin 526 on Daniel Island, a self-service bar that allows customers to pour their own drinks in their own amounts, from samples to full glasses, by inserting a card with a smart chip into the dispensing machine and choosing the number of ounces they want poured. “A lot of places will serve you by the glass, but you’re stuck with that glass,” said Ken Schneider, owner of Uncork Charleston on King Street. “If you don’t like it, you can’t really say to the bartender, ‘I really don’t like this.’ They’re not going to take it back. ... But with us, you can buy an ounce, which is a taste.” White, founder of Daniel Island’s Bin 526, said the overall concept of selfserve bars started with beers — in the Charleston area, one of the first selfserve bars was Pour Taproom on King Street. Unlike beer, which can be stored in kegs for three months, wine is usually only good for up to 72 hours after a bottle is opened, according to Schneider. To counteract that, the wine bar’s dispensing machines pump argon gas into the bottles as they pour to keep the wine fresh for up to two months. “But of course, we go through them in two days,” White said. “Or two weeks at the max.” White said one of the hurdles he’s had to overcome since opening Bin 526 is helping customers get comfortable with using the self-serve machines. “It did take some customer education to accept this as an application of

technology,” he said. “It’s disruptive to the industry, no doubt. But it empowers the customer, and therein lies its real secret strength.” Brook Bristow, founder of the law firm Bristow Beverage Law, said the main legal concern for self-serve bars is about liability. “To let the customers go on their own, they’re going to need constant checks just to make sure they’re not overserving themselves,” Bristow said. Steven Burritt, executive director of S.C. Mothers Against Drunk Driving, said he doesn’t have any direct experience with self-serve bars, but he’s also concerned about overserving. “It is definitely illegal to serve an intoxicated patron in this state ... but any one (business) where you’re perhaps removing staff from the point of sale certainly seems to potentially increase the possibility that that is ignored,” he said. At Bin 526, the card allows customers to dispense up to 40 ounces or $100 of wine, whichever comes first, and the chip cards expire at the end of each night, which means patrons have to get a new card each time they come in and cards can’t be exchanged. Schneider said Uncork has similar measures in place to prevent customers from overindulging. Bonnie Swingle, spokeswoman for the S.C. Department of Revenue, said in an email that the state has no special regulations for self-serve bars and they are not required to take any special precautions. She added that the department asks applicants during the licensing process what the machines do, how they function and the level of involvement of the staff in the self-serve process. The State Law Enforcement Division also inspects the machines before a license is issued. CRBJ

otherNEWSMAKERS Charleston joined the likes of Folly Beach and Mount Pleasant when City Council passed an ordinance that outlaws plastic bags, straws and other single-use plastics starting Jan. 1, 2020. Businesses can apply for an additional year of transition if the ordinance creates “an undue burden or practical difficulty not generally applicable to other persons in similar circumstances”; specific exemptions can also be made if a business can prove a public health and safety requirement or medical necessity.

Charleston Regional Business Journal | Newsmakers

Page 5

NEWS MAKERS 2018

From the 12.10.18 Issue

December

10 - 23, 2018

Business Journal and partners honor Charleston’s Health Care Heroes. Page 35

Folly Beach restricts ‘formula’ businesses

• www.char

S.C. ASS PRESS OCIA AWA TION

lestonbusiness.com

College presiden

t College of Charleston selects Andrew Hsu to take Glenn McConnell. over for Page 13 Changing bottles

Fathers revamp baby bottle after some tired nights; U.S. home base is in Charleston. Page 8

No. 26 • $2.25

By Patrick Hoff

phoff@scbiz news.com

frustrated by what licensing process. they feel is a labyrinthin ive months e times as after Charleston long. Krystal Halvorson, term rental regulations ’s short“The lack of went into effect, on Marginal Road in whose property is the city has with the peopleorganization in the process West slowly been enforcement. ramping up process to obtain a permit Ashley, said the to Nearly 700 help me was and technologies tasked ed, time “was complicatshort-term advertisements rental Halvorsonconsuming and felt patched together,”surprising. It felt randomly disorganized. removed since within the city have now was initially she said. “I have ” a business been month enforcement told it would applied for license in Charleston began. to receive a permit; Short-term rental take a to do and a lot via email. it ended up twice as long. operators, however, I had to drive was able are persistence She said had it not been taking es more than to the officonce for this , it probably for process.” would’ve taken her three See SHORT-TERM RENTALS, Page 6

UNCHAINED Folly Beach joins Sullivan’s Island as one of the first ‘formula’ businesses cities in the region in parts of the to prohibit municipality, but the movement could be growing. Page 10

Harbor deepeni ng gets federal cash

Mount Pleasant looking to limi t homebuilding through 2024

Army Corps of Engineers includes Charleston in budget. Page 12

INSIDE Upfront ................... SC Biz News Briefs ............. 2 ................ 3 Best Advice ................... ....... 4 In Focus: Architecture, Engineering and Construction List: Commercial ............... 17 Property Management Companies .... 31 At Work ................... .......... 49 Peer to Peer ................... Viewpoint ................... ..... 51 “Formula businesses” ........53 Day in the Life .................... services and products.are stores and restaurants that 54 look virtually They are no longer allowed in downtown identical and offer the same Folly Beach. (Photo/Patrick Hoff)

By Liz Segrist

lsegrist@scb iznews.com

ount Pleasant wants residential building to slow down in the town by limiting the number of permits awarded each year. A new ordinance that would new residential allow 600 year received permits to be allocated each unanimous approval Council on first reading last month.from Town An exception is being made new units the town anticipates for around 220 year as part of being built each previously approved communities. Permitting needs large-scale Park and Liberty for Carolina grandfathered Hill Farms developments into the ordinance. are This brings permits allowedthe total annual residential to 820 per 2024. For comparison year through , the town around 1,200 residential permits has approved months of 2018. in the first 11 Many residents have voiced cerns over the town’s growing strong consaying they population, want to slow the number of new See BUILDING PERMITS, Page 14

CHARLESTON UNDER CONSTRUCTION

By Patrick Hoff

Who is Projects, companiesbuilding what in the Charleston , prices, projected area? timelines, photos and stories. Page 17

“Formula businesses” are stores and restaurants that look virtually identical and offer the same services and products. They are no longer allowed in downtown Folly Beach. (Photo/Patrick Hoff)

f you’re looking to buy a Big Mac, you won’t find it in downtown Folly Beach. And that will continue to be the case after Folly Beach City Council voted to bar so-called formula businesses in certain areas of the municipality. The Institute for Local Self-Reliance, a nationwide nonprofit that advocates for sustainable community development, defines “formula businesses” as stores and restaurants that look virtually identical in physical appearance and in the services and products they offer. Stacy Mitchell, co-director at the institute, said “formula businesses” is used over “chain businesses” because restricting formula businesses doesn’t stop a chain from opening — but it does

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Short-term rent als continue to be contentious Volume 24,

Honoring heroes

require the chain to open a business that’s distinct from its other outlets. “Most chains have no interest in actually doing that, so most chains don’t bother to create a unique version of themselves in places that prohibit these stores,” Mitchell said. Spencer Wetmore, Folly Beach city administrator, said Folly Beach’s ordinance is a logical next step from the city’s restriction on drive-through establishments. Folly Beach’s ordinance is focused mainly on restricting formula businesses downtown, and allowing those types of businesses to continue populating the northernmost part of the city. “Our corridor commercial district, which is what’s zoned along Folly

Road, is intended to be a more intense commercial use,” Wetmore said. The gas station and adjoining Subway restaurant are allowed to stay, classified as “legal nonconforming,” but Wetmore said if either of those establishments was to close down, it would take an act of City Council to reopen them as formula businesses. Lewis Dodson, president of the Folly Association of Business, said he likes that the ordinance requires formula businesses in Folly Beach to fit the community’s aesthetic, but he has “mixed views” on the ordinance overall. As a business owner, he wants to protect his business, but he generally believes in letting the market dictate what works and what

otherNEWSMAKERS Ayal Lanternari’s frustrating experience of trying to safely, quickly and evenly reheat breastmilk to feed his son led him to launch a company with his best friend, Asaf Kehat. They created a baby bottle with a wider shape that spreads milk out into a thinner layer to enable quick reheating while maintaining nutrients. Nanobebe products are now sold by 2,000 stores, including Amazon, Target and Buy Buy Baby. The Israeli company launched its U.S. headquarters in Charleston in the fall.

46 Charleston Regional Business Journal | Newsmakers

The Nanobebe bottle has a wider shape than traditional bottles to help reheat milk evenly. (Photo/Nanobebe)

doesn’t. “It didn’t seem very necessary currently,” he said, adding that he hasn’t heard about an influx of chains coming to Folly Beach. More than 20 other communities across the country have passed some type of restriction against formula businesses, including Sullivan’s Island. Some municipalities’ restrictions allow formula businesses as long as community members are notified and don’t ask for a public hearing; others, like Folly Beach, ban them completely. Lowcountry Local First is also in discussions with businesses in the Park Circle area of North Charleston about trying to pass an ordinance restricting formula businesses there. CRBJ