Charleston Regional Business Journal - April 20, 2015

April 20 - May 3, 2015 • www.charlestonbusiness.com

Volume 21, No. 9 • $2.00

April 20 - May 3, 2015 • www.charlestonbusiness.com

Volume 21, No. 9 • $2.00

Union, Boeing ramp up efforts prior to election

By Liz Segrist

Airport upgrades Consolidated security checkpoint opens at Charleston International.

Page 3

Leveraging data

Blue Acorn partners with Demandware, plans to hire 20 new employees.

Page 5

Research center Lockheed Martin opens new North Charleston facility for information dominance. Page 9

Apple Pay

Conversation about payment technology may be changing.

Page 15

T

lsegrist@scbizbews.com

he union election scheduled for April 22 at Boeing South Carolina might not take place if the International Association of Machinists and Aerospace Workers thinks it cannot win.

In the two weeks leading up to the election, the IAM has sent 125 organizers door to door

OH, THE PLACES YOU’LL GO

For more than two decades, concerns

port on April 22 so when you go to work to cast your ballot, you know you’re going to be winning,” Evans said in a video on the local union’s election website. “If there isn’t enough support during this process, we will consider withdrawing just to fall back and educate more going forward.”

Just this month, the IAM canceled its See UNION, Page 6

restrooms south of Broad Street have plagued downtown Charleston.

City leaders think new signs and a mobile app pointing tourists to the 24 public restrooms on the peninsula will end the debate. But some residents think it’s time to return toilets to the Garden so the historic park can become a community venue again.

Full story, page 12

y Heffernan

Photo/Ashle

By Liz Segrist

T

lsegrist@scbiznews.com

he Charleston region has been awaiting a decision from the Pentagon on the location of U.S. Africa Command headquarters for eight years.

The wait is likely to continue.

Africa Command, known as AfriCom, is one of the military’s six regional headquarters.

It was created in 2007 when President George W. Bush consolidated three regional combat headquarters into one.

AfriCom is responsible for coordinating American military affairs in Africa and working with nations on the continent to build regional security, stability and crisis response capacity.

The Department of Defense located the command headquarters in Stuttgart, Germany, in 2007 with the intent of selecting a permanent site in the U.S. later. Charleston has been on the short list of possible sites, according to a 2008 study by the Pentagon, but the move has been stalled for years.

The Pentagon has not determined a timeline for relocating the AfriCom headquarters, but members of the S.C. Legislature, Charleston city leaders and Charleston Metro ChamSee AFRICOM, Page 8

New Jasper plan

The Beach Co. wants to build residential, office and retail space at 310 Broad St. Page 14

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Legislators, chamber continue AfriCom recruitment efforts

about a lack of public

bandstand at White Point

INSIDE Upfront............................. 2 In Focus: Banking and Finance.................. 15 List: Banks.................... 21 At Work.......................... 23 People in the News......... 23 Business Digest.............. 23 Hot Properties................. 26 Viewpoint........................ 27

to Boeing South Carolina workers’ homes to talk about the upcoming election and to gauge their likelihood to vote “yes.”

If the union does not feel it has enough support to win, it will consider withdrawing its petition with the National Labor Relations Board, effectively canceling the upcoming election, according to IAM lead organizer Mike Evans.

“It’s imperative that we have enough sup-

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Upfront:

Briefs, brights and business news

On the Record “Tourism represents an important facet of the city’s and region’s economy. It provides jobs and economic opportunity for our residents while showcasing our city and its cultural resources to people around the world. It also represents a challenge for our community. We must remain vigilant that tourism does not damage the city’s authenticity and sense of place or negatively impact residents’ quality of life.”

— Charleston Mayor Joe Riley

The Charleston economy thanks you for the I do’s Charleston’s reputation as a wedding destination is much-deserved. The city’s history, beauty and overall reputation for ambience pulls in brides, grooms and dollars from around the world. But how much of our economy can be directly related to the wedding industry?

We checked in with industry research company The Wedding Report Inc. to get some hard data on places where people get hitched in South Carolina and in the Southeast. With $160 million in annual wedding revenue, the Charleston metro region accounts for more than 19% of all income coming to South Carolina by way of I do’s.

ECONOMIC IMPACT OF WEDDINGS

Stuck in traffic? You could be more miserable...

People in the Charleston area love to complain about traffic, and we’re among them.

Partly it’s because we’re impatient, we don’t plan our commutes as well as we could and we have so many bridges that one broken-down automobile can jackknife major arteries and alternative routes in one fell swoop.

While we don’t want to deny our traffic problems, or our lack of regional infrastructure and policies that could alleviate and mitigate these looming disasters, we South Carolinians also don’t always have the perspective of other locations with much worse trouble. Even if you don’t have someone from up North to tell you how bad it was when they lived there and how we don’t know how well we’ve got it, we’ll just go ahead and say that they’re right.

TomTom’s Annual Traffic Index recently released data for 2014, identifying the worst places for traffic, and thankfully we’re not on it. Here’s where you’d be stuck in worse traffic if you lived there. Yes, No. 3 Seattle, we’re looking at you.

The thing they all have in common is a large and growing population demographic, something Charleston doesn’t have compared with many large metropolitan areas on the list. But we’re clearly working on that, with a 9.4% increase in population from 2010 to 2014 in the three-county Charleston region, according to the U.S. Census Bureau.

CITIES WITH THE WORST RUSH-HOUR TRAFFIC EVENING PEAK CONGESTION Los Angeles San Jose, Calif.

75%

Seattle

74%

REGION

REVENUE

Charleston

$160 million

6,511

Columbia

$123 million

5,818

Honolulu

68%

Greenville

$107 million

5,116

Houston

68%

Myrtle Beach

$86 million

4,013

San Francisco

68%

Spartanburg

$45 million

2,101

Portland, Ore.

61%

Hilton Head Island

$44 million

1,935

Austin, Texas

61%

Florence

$29 million

1,472

{ {

Virginia Revenue: $1.6 billion # of Weddings: 56,191

North Carolina Revenue: $1.5 billion # of Weddings: 66,951

{

{

Georgia

{

Florida Revenue: $3.4 billion # of Weddings: 142,691

Source: The Wedding Report Inc. for 2013

Atlanta

59%

Chicago

59%

Source: TomTom’s Annual Traffic Index

{

Revenue: $1.5 billion # of Weddings: 60,885

{

# OF WEDDINGS

80%

{ {

South Carolina Revenue: $840 million # of Weddings: 38,548

ONE NUMBER:

{

34.5

Number of people who moved to Charleston’s three-county region every day over the past five years based on population data from the U.S. Census Bureau. That tally of more than 63,000 people represents a 9.5% increase in five years, going from 664,607 in 2010 to an estimated 727,689 in 2014, or more than 1,050 per month.

Source: http://quickfacts.census.gov/qfd/states/45/45035.html

April 20 - May 3, 2015

www.charlestonbusiness.com 3

The Concourse B extension adds five new gates to the airport, as well as new restrooms, a pizza shop and more electrical outlets. (Photos/Liz Segrist)

Concourse B extension, checkpoint open at CHS

By Liz Segrist

A

lsegrist@scbiznews.com

few days before the planned opening of the consolidated security checkpoint and Concourse B expansion at Charleston International Airport, construction workers were still finishing the space.

Both renovations opened in mid-April as part of the ongoing $189 million Terminal Renovation and Improvement Program.

The new security checkpoint combines the two existing checkpoints, which divided up the airlines, into a consolidated security screening for all passengers.

The 19,300-square-foot space has the capacity for eight lanes. Four lanes will open initially increasing to six soon after.

The Transportation Security Administration’s pre-check will be open limited hours each day based on passenger volume. TSA currently employs 130 fulltime workers and five dogs at Charleston International Airport.

Passengers will enter the new security checkpoint from the ticketing hall. Once they are beyond security, passengers can now move between Concourses A and B. “What this is going to allow us to do is become more efficient in the way we use our resources, so by having all of the manpower and all of the equipment in one checkpoint, it will be a more pleasant experience for passengers,” Transportation Security Administration regional spokesperson Mark Howell said.

The previous checkpoint areas will be transformed into an open corridor in the airport.

The Concourse B extension also opened recently after 18 months of construction. The expansion grows the concourse from five airline gates to 10.

The 16,300-square-foot space also includes new restrooms, DeSano Pizza Bakery, floor-to-ceiling windows over-

looking the airfield on three sides, new seating equipped with electrical outlets, various tables with outlets and a six-foot clerestory.

The skylight feature adds windows that run near the top of Concourse B’s walls up to its ceiling. The board recently voted to also add the clerestory feature in Concourse A to maintain design uniformity throughout the airport. That addition will cost an estimated $1.6 million and be completed in January 2016, two months after the overall project is set for completion.

American Airlines, US Airways, Southwest Airlines, Porter Airlines, JetBlue Airways and United Airlines will operate out of the new Concourse B addition. The older part of Concourse B and Concourse A will be renovated next.

“I think when the passengers come in from the old section of Concourse B and walk back here, there’s going to be a ‘wow’ factor because you’re going to see what we’ve been planning and what we’ve been doing for the last year and a half,” Charleston County Aviation Authority airports director Sen. Paul Campbell Jr. said during a walk-through of the airport.

When the terminal redevelopment is complete by the end of the year, the airport will have 15 airline gates.

Campbell said he expects continued passenger growth to spur a need for a Concourse C expansion, possibly within five years, and additional parking garages even sooner. The airport had a record 3.1 million passengers come through in 2014.

“The renovation had to be done. The terminal itself was built in the early ’80s ... when we were probably looking at less than 1 million passengers. Now we are more than 3 million and growing,” Campbell said. cr bj

Reach staff writer Liz Segrist at 843-8493119 or @lizsegrist on Twitter.

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LOWCOUNTRY NEWSROOM Managing Editor - Andy Owens aowens@scbiznews.com • 843.849.3142

April 20 - May 3, 2015

Business news from around S.C.

Senior Copy Editor - Beverly Barfield bbarfield@scbiznews.com • 843.849.3115

European company buying Upstate spec site

Staff Writer - Liz Segrist lsegrist@scbiznews.com • 843.849.3119

A manufacturing company is buying at least some of Anderson County’s planned spec building site near Interstate 85 to construct a facility that will provide up to 49 jobs. County officials are also in the “very competitive stages” for a separate 200-job manufacturer, County Council Chairman Tommy Dunn said.

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Peak Campus project begins in Columbia

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Factory workers produce the Volvo S60L at the company’s plant in Chengdu, China. Volvo plans to produce 100,000 cars a year when its new U.S. plant is operational. (Photo/Volvo)

Volvo confirms plans to build U.S. manufacturing plant Volvo Cars has confirmed it plans to build a $500 million manufacturing facility in the United States.

The global carmaker, which has two factories in Europe and China, has a short list of U.S. locations for the facility.

Details on the location of the factory and the full investment will likely be announced in May. Production is expected to begin in 2018, according to Reuters.

“Volvo Cars cannot claim to be a true global carmaker without an industrial presence in the U.S. Today, we became that,” Volvo CEO and President Hakan Samuelsson said in a news release. “The U.S. is an absolutely crucial part of our global transformation, and today’s announcement makes it perfectly clear that Volvo is in the U.S. to stay.”

The Swedish car manufacturer is in talks with three states, according to The Financial Times. Alabama, Georgia, Kentucky, North Carolina and South Carolina have all been previously mentioned as possible sites for the facility.

South Carolina is home to a growing automotive sector. BMW produced its 3 millionth car recently at its U.S. manufacturing facility in Greer, which was established 20 years ago. And Mercedes-Benz Vans announced earlier this month it plans to build a $500 million Sprinter van manufacturing plant in North Charleston.

— Liz Segrist

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Spartanburg city officials have received $2.4 million to acquire and remove boarded-up, vacant, condemned or blighted structures. The city and five nonprofit partners will use the federal money to acquire properties and maintain them until they are redeveloped or otherwise used.

O’Neal Inc. expanding Greenville headquarters O’Neal Inc., an engineering and construction company, is adding 60 jobs in an expansion of its headquarters operations in Greenville County.

The 40-year-old company is expanding at 10 Falcon Crest Drive.

Sumter plant turns methane into energy

S.C. index rebounds, points to more growth

TerraStride and Pandoodle were among four statewide businesses that received funding from SCRA Technology Ventures’ SC Launch board.

Greenville-based Servosity and Charleston’s First String Research Inc. also earned investments.

The plant, which represents a $5.3 million investment by Henderson, Nev.-based Blue Earth, will use methane made from the Pilgrim’s Pride poultry facility for purposes such as hot water, electricity generation and usable gas to fuel plant boilers.

February’s index of leading economic indicators posted a 0.49-point gain, rising to a value of 101.87, according to the S.C. Department of Commerce. A total value of more than 100 indicates the economy should continue to grow for the next three to six months.

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Spartanburg receives $2.4M to deal with blight

Columbia companies get SC Launch funds

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The $50 million project at the corner of Gervais and Harden streets will anchor the north end of redevelopment of the Gervais Street Corridor, where projects like the new USC Law School and conversion of the Clarion Hotel are underway. The complex is expected to be ready in August 2016.

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April 20 - May 3, 2015

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Blue Acorn partners with Demandware, plans hires, expansion

By Liz Segrist

B

lsegrist@scbiznews.com

lue Acorn, a Charleston-based e-commerce design and development firm, has expanded its technology portfolio by partnering with Demandware.

Blue Acorn — which builds on e-commerce platforms for businesses such as Rebecca Minkoff, Everlast, Live Nation and Vietri — has developed solely on the Magento platform since its founding in 2008.

It will now also use Demandware’s software-as-a-service e-commerce platform to help clients leverage data and analytics from their sites, according to a company news release.

Blue Acorn founder and CEO Kevin Eichelberger said he reviewed seven platforms over the past year before deciding to partner with Demandware for its focus on digital commerce for retailers, such as Adidas and Brooks Brothers, and on how consumers buy products in store, online and on mobile devices.

In the past year, Demandware has acquired cloud-based management solutions provider MainStreet Commerce, point-of-sale solutions provider Tomax and cloud commerce solutions

provider CQuotient.

“Ultimately, these are the kinds of solutions we’re looking for. ... This (partnership) positions our business to handle commerce solutions more so than just e-commerce,” said Eichelberger, who said Blue Acorn might add other platforms in the future.

The beginning

Eichelberger had the idea for Blue Acorn after he saw gaps in the marketplace while running an e-commerce company with his brother. He said most companies either improve or redesign company websites when working to boost sales for their clients.

Eichelberger said he wanted to take a more scientific approach to e-commerce.

Blue Acorn studies the psychology of why and how people buy things and uses data and analytics to customize their online shopping experience. Blue Acorn employees might design two pages featuring the same products, divide the online traffic between those pages and measure the results to see which design produced more online sales.

“Historically, these decisions were made based on a guess or intuition or a boss saying they want a page to look a certain way,” he said. “We want to mea-

Blue Acorn moved into its new space in Half Mile North last year. (Photo/The Middleton Group)

sure the results to see what’s actually working.”

When he was starting out, Eichelberger said, he imagined Blue Acorn to be a 10-person, boutique e-commerce firm.

He slowly added employees and has not sought outside financing.

“The early days were very different.

We had big ambitions and big goals, and we didn’t really know what the heck we were doing,” Eichelberger said. “It was just a handful of us drinking beer and eating pizza on the floor in our first office because we didn’t have a table to eat off of. ... Then the marketplace really exploded around us.”

Blue Acorn had nine employees at the beginning of 2011, when Eichelberger

went to his first Magento conference and saw an opportunity to take more of the e-commerce market share.

“The first couple of years were really proving the business model and building a foundation and a set of core values. ... We hired as needed and took it day by day,” he said. “Post-2011 was startup mode for us, where we were really growing much faster, and it was taking off for us.”

Blue Acorn tripled in size in 2011. The firm, which now has nearly 100 employees, relocated last year — its fourth move since 2008 — from its Rutledge Avenue office into a 12,000-square-foot office in Raven Cliff Co.’s Half Mile North development at 145 Williman St. on the upper peninsula.

The company is currently renovating an 8,000-square-foot warehouse across the street from its headquarters for future growth.

Eichelberger plans to house 60 marketing and sales employees and two development teams in the new building.

Construction is scheduled for completion by end of July.

Blue Acorn plans to hire at least 20 more people by the end of the year. cr bj

Reach staff writer Liz Segrist at 843-8493119 or @lizsegrist on Twitter.

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April 20 - May 3, 2015

More than 3,100 production and maintenance workers at Boeing South Carolina are scheduled to vote April 22 on whether the IAM should represent them. (Photo/Kim McManus) UNION, continued from Page 1

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attempt to unionize 20,000 flight attendants at Delta Air Lines.

The local election was still scheduled as of press time on April 14. If the election is called off, the IAM will continue local recruiting efforts. If it takes place, more than 3,100 production and maintenance workers at Boeing South Carolina’s 787 Dreamliner campus will decide whether the IAM should represent them.

The IAM intensified its efforts to unionize the 787 Dreamliner plant in North Charleston when it opened an office off Dorchester Road in spring 2014. The NLRB scheduled the election last month after the IAM petitioned with enough signed authorization cards — a minimum of 30% of the production and maintenance workforce — to justify a vote.

Boeing executives and state leaders are digging in to prevent a unionized Boeing South Carolina plant, while the IAM is ramping up recruiting efforts.

Much of the debate has centered on competitive wages for workers in North Charleston compared with their counterparts who also build 787 Dreamliners in Washington state.

High overtime has also been a part of the discussion, as production teams worked longer hours over the past year to catch up on a backlog of unfinished 787-8 Dreamliner work and added 787-9 Dreamliner production and assembly to the North Charleston plant.

The wage debate

Boeing workers in Washington earn an average of $31.43 per hour, for an annual base salary of $65,374, according to IAM 751 spokeswoman Connie Kelliher. This includes a 14-cent cost of living adustment and a 2% wage increase from September 2014.

That’s about $11 more an hour than Boeing production and maintenance workers in North Charleston, who earn an average of $20.59 an hour, or a base salary of around $42,827 a year. That’s up 16.7% from their 2013 wages of $17.65 an hour, according to Boeing.

Political atmosphere The IAM faces an uphill battle in its effort to unionize in the strongly antiunion political atmosphere of South Carolina. Politicians are able to speak more freely leading up to elections than can companies and unions, which must abide by labor laws or risk violations from the National Labor Relations Board.

North Charleston Mayor Keith Summey and Charleston County Council Chairman Elliott Summey, the mayor’s son, both urged Boeing workers to vote against the union in a recent news conference.

Boeing and the IAM have both been running ads espousing their sides for months.

Charleston Mayor Joe Riley spoke in a pro-Boeing radio ad earlier this year, as did Gov. Nikki Haley. Haley shares her aggressively anti-union stances during speeches around the state and on social media. She is known for saying she wears high heels to kick unions past state lines.

Haley said unions threaten the Palmetto State’s economic development efforts and its international reputation for being anti-union.

South Carolina’s union membership rate — at 2.2% — is the lowest it has been in a decade and the second-lowest in the country, behind only North Carolina, according to 2014 data from the U.S. Bureau of Labor Statistics.

“Basically our members’ average wage as of September 2014 was more than 50% greater than the current average wage in Charleston,” Kelliher said.

Workers at both Dreamliner sites can earn more by working overtime. These base salaries do not include benefits such as health insurance and paid time off.

Boeing plans to give S.C. workers a 1.9% raise this fall, bringing hourly wages to $20.99 per hour, or $43,659 a year.

To compare to average hourly wages across South Carolina, machine assemblers make $17.48, aircraft systems assemblers make $18.66 and assemblers

April 20 - May 3, 2015

www.charlestonbusiness.com 7

Average wage of Boeing production and maintenance workers

Washington site

South Carolina site

$31.43/hour

$20.59/hour

or a base salary of $65,374

or a base salary of $42,827

Note: The Washington wages includes a 14-cent cost-of-living adjustment and a 2% wage increase as of September 2014. Neither figure includes overtime or benefits.

Sources: Boeing South Carolina, International Association of Machinists & Aerospace Workers

and fabricators make $11.86, according to 2014 data from the U.S. Bureau of Labor and Statistics.

The Boeing South Carolina wages also do not factor in bonuses. Last May, factory floor workers received 8% of their base pay for the previous 12 months as a bonus for reaching production goals when catching up on the backlog.

Boeing South Carolina Vice President and General Manager Beverly Wyse said similar bonuses wouldn’t be possible under a union contract.

“That’s something we couldn’t do,” Wyse said. “It’s a very different environment. Quite frankly, we can’t be anywhere near as flexible on any of the wages and benefits we offer once under a contract.”

In a brochure given to South Carolina employees, Boeing uses total compensation — including overtime, shift differential, benefits, vacation days and paid sick time — to make the case that a union isn’t needed. The $43,000 base pay plus that other compensation brings the total average to $80,000, the brochure says.

“Something that’s so much a part of this conversation is: ‘How good are our wages and benefits for the area?’ ... You don’t attract the best and brightest in the area if you’re not paying a really competitive, above-market wage and benefits package,” Wyse said on recruiting workers at Boeing South Carolina.

Still the union has made some traction with workers. Four-year Boeing employee Gerald Guerena said in a statement: “We’re trying to build a better life for ourselves, our families and our community.

We feel the best way to do this is with a collective bargaining agreement.”

Point, counterpoint

Much of the IAM’s message has been about its ability to bargain with Boeing leadership for higher wages, less overtime, more vacation and better benefits.

It touts its ability to get workers more respect in the workplace and give them a voice in management decisions.

“This is an important step on the road to a collective bargaining agreement,” Evans said in a statement after the petition was filed. “This is a chance for Boeing workers and their families to substantially

improve their careers and communities.”

Evans has not responded to repeated requests for an interview. In a video on the local union’s election website, Evans thanked Boeing workers for “sharing their issues from the shop floor” and taking the time to hear about the IAM. “The reason they (Boeing) ask for a second chance is to distract you from your opportunity, which is a rare opportunity, to collectively bargain with them by voting ‘yes’ on April 22,” Evans says in the video.

Wyse said she is worried that unionization of the local plant would decrease teamwork and flexibility.

She said mechanics and engineers in North Charleston currently work alongside one another to troubleshoot problems and improve the design and build processes. She said workers already have a voice in decisions with management, such as how to handle overtime.

Wyse said none of that would be legally allowed under a union contract.

“People are far more willing to engage and lean in and get excited about their work if they have some say in how it’s done and have the opportunity to make it better,” she said. “That’s been a huge, huge contributor to the success this site has seen. ... It creates a stronger sense of teams rather than those artificial boundaries of ‘I’m union’ and ‘I’m not.’ ... If the plant is unionized, we will have collectively lost our ability to work together.”

Because South Carolina is a rightto-work state, a unionized Boeing plant would mean that all production and maintenance workers would be covered by the union contract, whether or not they join or pay dues.

When asked if this would present a challenge from a management point of view, Wyse said she is solely focusing on communicating with workers about the election for now. She did, however, say it could be divisive on the factory floor.

For now, both sides are urging all production and maintenance workers at the plant to get informed and vote — if the election takes place. cr bj

Reach staff writer Liz Segrist at 843-8493119 or @lizsegrist on Twitter.

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April 20 - May 3, 2015 AFRICOM, continued from Page 1

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ber of Commerce officials have been touting Charleston for years as an ideal place for the headquarters.

They point to the area’s existing military and sea facilities, such as Joint Base Charleston, Space and Naval Warfare Systems Center – Atlantic and the Port of Charleston, as assets for the command headquarters. A study by the U.S. Government Accountability Office agreed.

“The Charleston community can offer a headquarters location with airlift, sealift and prepositioning assets unrivaled for their proximity to Africa as well as the indispensable, integrated role Naval Space and Warfare Systems Center (SPAWAR) Atlantic will play in meeting AfriCom’s mission,” the study said.

The chamber brought recruitment efforts back into focus this year when it made the relocation of AfriCom one of its 2015 legislative priorities for the region.

The command would bring an estimated 4,300 jobs and a big economic boost to the Charleston region, according to a 2012 study by the Department of Defense. Though most of the jobs would be transfers, those new residents would make a local economic impact of up to $450 million, the study said.

The headquarters would also bring a four-star general and additional military and cybersecurity expertise to the region, which could help recruit other defense companies, according to Mary Graham, the chamber’s chief advancement officer.

Although lobbying is ongoing and plans to eventually relocate the site have not been redacted, the Defense Department has neither determined a new site for the headquarters nor given any timeline for moving the operations.

“Strategically and operationally, United States Africa Command’s current location in Stuttgart, Germany, provides for effective command, control and coordination of activities in the area of responsibility,” Defense Department spokesman Maj. James Brindle said in an emailed statement, noting that the site’s location is evaluated annually.

U.S. Rep. Jim Clyburn, D-S.C., said that although efforts have not been successful thus far, he will continue to make the case that the best permanent home for AfriCom is in Charleston.

Recruiting AfriCom

Capt. Ken Ryan worked to build military partnerships throughout Europe and Africa while he was stationed with the U.S. Navy in Italy, during which time AfriCom began operations in Germany.

Upon returning to Charleston, Ryan worked with chamber officials and state leaders Sen. Lindsey Graham and Rep. Joe Wilson, both Republicans, as well as Clyburn to recruit the command to Charleston.

“I’ve been thoroughly convinced upon coming back to the U.S. that Charleston

would be the right move for the military, the Department of Defense and the Africa Command itself,” Ryan said. “The excuse a few years ago was that AfriCom was too new to move, and then sequestration happened, but the command is mature now. I feel we are one year closer to ‘yes.’”

Graham of the Chamber pointed to synergies between Charleston and Africa: similar climates, Joint Base Charleston’s C-17 aircraft that fly to Africa for missions, ships carrying goods between the Port of Charleston and Africa, and SPAWAR’s cybersecurity efforts throughout the continent.

“We started working on this right after the command was created,” Graham said.

“We started looking at Charleston’s assets and how they would support the Africa Command, and it made sense.”

The chamber launched the Africa Command Relocation Task Force in 2009 and drew up plans for a 300,000-squarefoot facility on the Joint Base Charleston campus.

Amid this work, relocation plans stalled. Defense Department officials visited Charleston a few years ago to see the site and said that the command would remain in Germany “for the foreseeable future.”

Former Defense Secretary Leon Panetta announced plans in 2013 to keep the headquarters in Germany “for the time being,” to strengthen relationships with African and European partners.

He did, however, say it would be more cost-effective to bring the command to the United States, with the GAO saying such a move would save the Defense Department up to $70 million annually.

The local task force’s study also found that more than half of the travel from AfriCom headquarters comes to the United States.

The GAO reviewed the Defense Department’s decision and said: “It was not supported by a comprehensive and well-documented analysis that balanced the operational and cost benefits of the options available. ... Until the costs and benefits of maintaining AfriCom in Germany are specified and weighed against the costs and benefits of relocating the command, the department may be missing an opportunity to accomplish its missions successfully at a lower cost.”

Although no specifics about relocation have been confirmed, Graham said recruiting efforts will continue.

“How can you admit the department could save tens of millions of dollars in operational costs in moving a facility like this but not even be willing to discuss it?”

Graham said. “It’s not just about Charleston to us. It’s about saving the American taxpayer money and enhancing the command’s mission by locating it in the country.” cr bj

Reach staff writer Liz Segrist at 843-8493119 or @lizsegrist on Twitter.

April 20 - May 3, 2015

www.charlestonbusiness.com 9

Lockheed opens research and technology center in North Charleston

By Liz Segrist

T

lsegrist@scbiznews.com

wo years after setting up a presence in Charleston, Lockheed Martin has officially opened its 2,200-square-foot Center for Information Dominance at 4055 Faber Place Drive in North Charleston.

This is the ninth Lockheed center of its kind in the United States. It joins a global network of such centers in Australia, Romania, Abu Dhabi, the United Kingdom, Romania and Japan.

The new research and technology center offers government customers and private-sector partners access to Lockheed’s information technology solutions, management services and expertise in cybersecurity, aeronautics, information technology, cloud services and missiles.

“We do everything from Navy work to supporting the Department of Defense and providing IT services to the federal government,” said Mark Martin, director of information dominance programs at Lockheed Martin, who runs the local center. “Now, we are building that foundation here and bringing all of those capabilities to Charleston.”

One undisclosed customer of the center wanted to determine whether commanders in the field were being observed by enemy satellites. The center used a Lockheed tool called Compass, which tracks satellites and field positions, and reversed the technology so commanders could know if and when they are being watched.

“If a commander in the field is getting ready for a mission, we could tell him or her to avoid being in this area at this particular time because this satellite will be able to detect them,” Martin said.

“That can change their whole operational parameters.”

The center is designed to solve problems for companies and the government regarding information technology, simulations, cyber security, cloud services or satellite monitoring for military missions,

Director Mark Martin said government and private sector customers can use Lockheed’s technology to solve problems. (Photo/Liz Segrist)

to name a few.

“They’ll bring us their hard problems, but sometimes it might not even be realizing what a problem could be a year or five years from now,” Martin said. “That’s where we come into play. We’re looking strategically down that road.”

The Lockheed research and technology centers troubleshoot problems and share solutions globally. Software developers also work together to expedite projects at the centers — when a U.S. developer completes work on a project

for the day, a developer in Australia will begin working on it, for example.

“Bring the problem to us. If we don’t have the expertise here, we will reach back to the corporation and see if there is already a solution that we can bring here to do the development and deployment for it,” Martin said.

Lockheed decided on Charleston for its ninth research and technology center in the country for its proximity to SPAWAR and its workforce, Martin said.

Lockheed currently employs 75 people in

Charleston.

Customers can rent space in the center for a day or longer term. Specific pricing was not disclosed, though Martin says it varies based on customer needs.

Martin declined to disclose the investment in the new center, but said he envisions expanding throughout the entire floor of the building within the next five years. cr bj

Reach staff writer Liz Segrist at 843-8493119 or @lizsegrist on Twitter.

10

www.charlestonbusiness.com

April 20 - May 3, 2015

Federal lawsuit alleges Kiawah resort underpaid Jamaican workers

A

Staff Report

federal lawsuit alleges that Kiawah Island Golf Resort underpaid its Jamaican guest workers and failed to reimburse their recruitment fees over the past three years, according to the Southern Poverty Law Center.

The resort hires some of its employees through the federal H-2B guest worker program, which allows the temporary hire of foreign workers if the employer can verify that it cannot find enough local workers to fill its needs.

The H-2B program requires that employers reimburse workers for recruitment fees. The lawsuit alleges that the resort did not reimburse the workers for these fees, such as the costs of obtaining guest worker visas and traveling from Jamaica. The lawsuit estimates fees were $600 per guest worker.

These expenses, the lawsuit says, meant the Jamaican workers’ wages did not meet minimum pay required by the Fair Labor Standards Act and the H-2B program, according to the Southern Poverty Law Center.

The lawsuit also claims that the resort charged the workers excessive fees for housing and transportation. Workers stayed in an apartment complex about an hour from the resort and were bused to Kiawah Island for work.

Additionally, the lawsuit claims the resort ignored a wage increase mandated by the U.S. Department of Labor in 2013 that would have raised wages by as much

as $2.20 per hour for some positions.

“Kiawah Island Golf Resort has been an active participant in the H-2B guest worker program for the past 15 years. We value all of our employees and have operated our H-2B visa program in accordance with the applicable laws,” the resort said in a statement. “Kiawah Island Golf Resort intends to vigorously defend the lawsuit, which is replete with misstatements and untruths.”

The lawsuit did not say how many guest workers were affected. It did say they worked as housekeepers, servers and bell persons at the resort from 2012 through 2014.

“These workers left their country for what they thought would be a great job opportunity. Instead, they were taken advantage of by an employer unwilling to pay them the wages they were owed,” Southern Poverty Law Center attorney Sarah Rich said in a news release.

Kiawah Island Golf Resort has five golf courses, including The Ocean Course, which hosted the 2012 PGA Championship and 1991 Ryder Cup. Rooms at the resort’s Sanctuary hotel cost from $600 to more than $1,000 per night. Conde Nast Traveler has named Kiawah Island the No. 1 island in North America and the No. 2 island in the world.

Nancy Bloodgood of the Charleston office of the Foster Law Firm is serving as co-counsel for the Southern Poverty Law Center. The center is based in Montgomery, Ala., with offices in Atlanta, New Orleans, Miami and Jackson, Miss. cr bj

Detyens Shipyards awarded $15.8M contract to repair Navy cargo ship

D

Staff Report

etyens Shipyards Inc. of North Charleston was awarded a $15.8 million contract to inspect, service and repair a Navy cargo ship.

The 689-foot-long USNS Lewis and Clark delivers food, repair parts, fuel and ammunition to other ships at sea.

The U.S. Navy’s Military Sealift Command awarded the contract out of two offers. Detyens will perform the work in North Charleston and has a July 3 deadline.

Work includes annual service of the bridge equipment; overhaul of the main diesel generator and sea valves; annual certification of the life rafts; inspection of the propeller shaft; cleaning and painting of the underwater hull and freeboard; blasting and coating of tanks; and renewal of the non-skid on the flight deck, as well as drydocking of

Detyens Shipyards will overhaul and drydock the USNS Lewis and Clark. (Photo/U.S. Navy)

the vessel.

The contract includes options that would bring total work to $16.1 million if exercised.

The Navy’s fiscal 2015 operations and maintenance contract funds are being obligated at the time of the award for the work. Contract funds will not expire at the end of the current fiscal year. cr bj

April 20 - May 3, 2015

www.charlestonbusiness.com 11

12

www.charlestonbusiness.com

April 20 - May 3, 2015

Decades-long debate swirls around peninsula restrooms

By Ashley Heffernan aheffernan@scbiznews.com

A

lfred Ray, who has been a tour guide on the Charleston peninsula since 1979, remembers going to White Point Garden as a child for family picnics and get-togethers. He fondly recalls running beneath the low-hanging branches of the large oak trees at The Battery and spending time with his mother as the breeze floated across the harbor.

Back then, restrooms below the bandstand were open to the public. With those gone, Ray doesn’t think families will have those kinds of memories anymore.

“We’re going to have to have an adult conversation about restrooms south of Broad Street,” said Ray, the immediate past president of the Charleston Tour Association. “One thing that makes Charleston such a special place is our long tradition of kind consideration of others. A lack of restrooms south of Broad, well there is no kind consideration there.”

The bandstand restrooms were closed in the 1970s, according to Ray, and the facilities were removed when the bandstand was lowered to its current level in 2009. Now, the nearest public restroom to White Point Garden is at Charleston City Hall, about a half mile away.

Ray said the area has turned into a passive park instead of a community venue.

“Being a native Charlestonian, one of the things I remember as a child, and most of the people in here would as well, is the picnics and the events that were held at White Point Garden. Of course, those events were held there because of those horrible, dingy bathrooms,” Ray said after a city tourism meeting. “If the bathrooms

The Charleston City Market between Meeting and East Bay streets has three restrooms that are open to the public. (Photo/Ashley Heffernan)

weren’t there, people would have to move on. That’s happened now today. The idea of having a family picnic at White Point Garden is a thing of the past.”

City planning director Tim Keane said the main reason the restrooms were removed was because the below-sea-level plumbing was a constant issue and the city felt that the centerpiece of the park shouldn’t be a restroom.

“We can’t have restrooms basically at our monument to the most important park and the most historic park in the city. That’s why they were eliminated,” Keane said.

Ongoing issue

Concerns about a lack of public restrooms south of Broad Street have plagued downtown Charleston for at least the past 20 years.

BEFORE

The city’s Tourism Management Plan in 1994 cited the lack of restrooms as a problem. Other issues discussed then were the potential “Disneyfication” of Charleston, traffic congestion and parking — all of which are still being debated today.

Since then, rumors have spread during public meetings about South Battery residents being awakened at night or interrupted during dinner by tourists knocking on their doors asking to use their facilities.

Earlier this month, Charleston leaders released an updated Tourism Management Plan and addressed the restroom topic by deciding to add signs pointing guests in the direction of restrooms. They also plan to create a free mobile application to help tourists find public facilities.

New signs in White Point Garden

AFTER

Photo/Provided

Photo/Ashley Heffernan

The restrooms under White Point Garden’s bandstand were removed and the structure was lowered to its current level in 2009. Today, the closest public restrooms to the Battery are located in Charleston City Hall, about a half mile away.

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April 20 - May 3, 2015

www.charlestonbusiness.com 13

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Kevin McQuade, chief concierge at the Courtyard by Marriott hotel at the corner of Calhoun and Meeting streets, has been helping tourists find their way for nearly 16 years and said they don’t seem to have problems locating places to

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A handful of downtown neighborhood associations wrote letters to the city last year when leaders began updating the Tourism Management Plan, which was created in 1978.

Representatives from the Charlestowne Neighborhood Association mentioned that public restrooms were a concern but didn’t support adding new ones.

“Public restrooms would not be welcome or appropriate additions to residential neighborhoods,” the association letter said. “No resident should face the prospect of viewing restroom lines from their home or seeing evidence of unsafe or unacceptable activity nearby.”

Jack Evans, president of the Dockside Association, said there is a need for “more upscale restrooms,” and Susan Bass, president of the French Quarter Neighborhood Association, insisted on more signs for current restroom locations instead of new facilities.

Vangie Rainsford, president of the Garden District Mazyck-Wraggborough Neighborhood Association, said the public outcry for additional restrooms needed to be addressed immediately.

“Royal portalets, which are often seen at upscale Kentucky Derby events, the British Open and The Masters golf tournament, could be a point of discussion,” Rainsford wrote. “These could be brought to a site with an attendant present on a temporary basis until more permanent facilities could be built.”

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now send visitors to 24 restroom sites on the peninsula, including City Hall. The restroom there is open to the public from 8:30 a.m. to 5 p.m. Monday through Friday and from 10 a.m. t. to 4 p.m. Saturday n Sweekend and Sunday. The hours started r u b in December Fish as a result of public comments during meetings about the new tourism plan.

“Those are very nice, well-kept, conLo veniently located restrooms that now ck have wo availability for more people in town od weekends,” Charleston Mayor Joe on the Dr adding that restroom availRiley said, . ability is something that seems to always be under review.

“It’s an issue that warrants attention. But it’s not like this is some kind of remote place. There are lots and lots andSt. un lots of restrooms on the peninsula Calho that are in restaurants or places that tourists visit,” Riley said.

The new app, which is still in the early planning stages, would likely include information about parking, popular destinations in the city and public restroom locations, according to Keane.

Broad St.

No Public Restrooms South of Broad Street

Public Restroom = According to city maps, the Charleston peninsula has 24 public restrooms, mostly within parking garages. They are all located north of Broad Street. (Map/Ryan Wilcox)

use the restroom.

“I think it’s — to be honest — a little overplayed. People do find their way.

They find hotels. They find restaurants, and they kind of figure it out,” said McQuade, a member of Les Clefs d’Or, an international association of hotel concierges with two members in Charleston, four in South Carolina and about 500 in the country.

He said the obvious answer is to put a restroom in White Point Garden, but he said he fears doing so would destroy the beauty and integrity of the park and cause it to become an eyesore.

“My concern is if you put a bathroom down at White Point Garden, six months later you’re going down there, and you know what you see? You’ll see a couple of tour buses loading off their tourists, lining up for this bathroom, and suddenly you feel like, ‘Am I in a real city, or am I in Disneyland?’” McQuade said. “The Disneyfication of Charleston is already escalating, so it’s like don’t sell your soul to tourism.”

McQuade said he can probably count on one hand the number of times throughout his career that tourists have

returned to the hotel angry because of a lack of restrooms.

“It’s not that often. I just don’t get that concern,” he said.

McQuade does maintain his own map of public restrooms in the area that he’ll give to visitors, but he said many don’t need it.

He said most hotels — including the one for which he works — don’t mind tourists using their lobby restrooms, as long as it’s not late at night when visitors who are not hotel guests could be construed as security risks.

“To me, it’s like free advertising,” he said. “If you’re smart, you don’t say, ‘Can I use the restroom?’ The thing is, how do we know? We’re not going to ask if they’re a guest.”

Adding weekend hours to the City Hall restrooms was probably the best option for the city, according to McQuade.

“From The Battery to, say, the City Hall bathrooms, that’s a 12- to 15-minute walk,” he said. “It’s not like you have to go to Moncks Corner to find a bathroom.” cr bj

Reach staff writer Ashley Heffernan at 843-849-3144 or @AshleyBHeff on Twitter.

14

www.charlestonbusiness.com

April 20 - May 3, 2015

Beach Co. updates Jasper redevelopment plan

By Ashley Heffernan aheffernan@scbiznews.com

A

bout a month after withdrawing its request with the city of Charleston to rezone the Sergeant Jasper parcel, The Beach Co. has come up with a new plan for the 310 Broad St. development.

The company is now proposing a primarily commercial site that will include about 118,000 square feet of Class A office space, 40,350 square feet of retail

space and 80 luxury residential units.

Dan Doyle, a vice president at the company, said there will be two separate buildings on the parcel.

The building closest to Barre Street will include retail space on the bottom floor and six floors of office space on top.

The tower closest to Moultrie Playground will stand about 20 stories tall and will include six floors of parking within 18 total floors of residential living space and a penthouse area with mechanical equipment on the roof, Doyle said.

About 780 parking spaces will be built in an internal parking garage, which will be accessible from three locations.

The city’s Technical Review Committee must approve the plan before it advances to the Board of Architectural Review, which Doyle said he expects will occur in about two to three months.

Construction is expected to begin in mid-2016 and take about two years. cr bj

Reach staff writer Ashley Heffernan at 843-849-3144 or @AshleyBHeff on Twitter.

The new plan for the Sergeant Jasper parcel on Broad Street includes residential units, office space and retail space. (Rendering/The Beach Co.)

In Focus:

Banking and Finance

LIST Banks, Page 21

Regional Banking Data Post-recession commercial banking continues to be an economic foundation for many business activities in the Charleston region. Wells Fargo continues to have the greatest market share of deposits across the state. Here’s how South Carolina’s financial data looks in the primary markets of the state:

New payment technology leaves some skeptical

Banks Headquartered in S.C. Metro area Number Greenville 20 Charleston 17 Columbia 16 Banking Deposits Market Share by Region

CHARLESTON/NORTH CHARLESTON

22.74%

Wells Fargo

TOTAL DEPOSITS: $2.4 BILLION

15.04%

South State Bank

TOTAL DEPOSITS: $1.6 BILLION

13.62%

Bank of America

Community banks are eyeing

TOTAL DEPOSITS: $1.4 BILLION

COLUMBIA

Apple Pay warily, while larger

30.57%

Wells Fargo

TOTAL DEPOSITS: $4.9 BILLION

institutions look to meet

24.77%

Bank of America

customer demands quickly.

TOTAL DEPOSITS: $4.0 BILLION

13.27%

BB&T

TOTAL DEPOSITS: $2.1 BILLION

GREENVILLE/ANDERSON

17.20%

Wells Fargo

By Barry Waldman

E

Contributing Writer

ven as recently as a century and a half ago, the primary method of purchasing goods and services in America was through the physical exchange of American legal tender: cash.

The array of choices available today includes cash, checks, credit cards and new electronic technologies. At each step, banks have adapted to keep up with customer demands.

The latest in the commerce evolution is the mobile wallet, through which customers can do all their banking and purchasing with their phones and leave that leather wallet behind.

To make purchases as part of a mobile wallet, customers hold their device over a reader and automatically charge a credit or debit card.

Although the technology dates to the turn of the century, it has yet to become widespread in the United States.

That may soon change, however, as Pay

“The digital space is rapidly changing. The concept of the digital wallet is here to stay.”

Leila Carr senior group execuive for business intelligence, Synovus Bank

Pal, Amazon, Google and Apple have unveiled mobile payment systems.

With Apple’s entree into the market in October, the conversation about the viability of mobile payment may be changing.

Apple claims that 83% of large banks have created the necessary infrastructure to accept Apple Pay — though most retailers lack the point-of-sale systems to support the technology.

Apple says shopping with Apple Pay is more secure and private than using credit

or debit cards because cashiers don’t see the name, credit card number or security code on the card.

Concerns have been raised, however, about the ease of use of stolen cards.

Some analysts estimate the fraud rate with Apple Pay could be 60 times higher than with ordinary credit card use.

Community banks are eyeing Apple Pay and other mobile payment systems warily. Fred Green, president of the Columbia-based S.C. Bankers Association, says the conversions required to accept mobile payment and the marginal fees involved in each transaction have many banks researching mobile payment but holding off on commitments until they see a marketplace imperative.

“For it to be commonplace, every merchant needs to accept Apple Pay. That is not currently the case,” he said.

Holding a phone up to a reader is no easier than swiping a credit card, said Jamin Hujik, COO of Charleston-based See APPLE PAY, Page 20 ➤

TOTAL DEPOSITS: $2.4 BILLION

12.89%

Bank of America

TOTAL DEPOSITS: $1.8 BILLION

11.71%

BB&T

TOTAL DEPOSITS: $1.6 BILLION

Adjacent State Data NORTH CAROLINA

BRANCHES

2,571

DEPOSITS: $339.9 BILLION BRANCHES

2,526

GEORGIA

DEPOSITS: $197 BILLION SOUTH CAROLINA

BRANCHES

1,358

DEPOSITS: $69.9 BILLION

Source: Federal Deposit Insurance Corp., June 2014

Next Issue’s Focus:

Ports, Logistics and Distribution

16

www.charlestonbusiness.com

IN FOCUS: BANKING AND FINANCE

April 20 - May 3, 2015

‘Financial therapy’ brings two disciplines together

By Barry Waldman

F

Money is the third leading reason for divorce after basic incompatibility and infidelity, according to a survey of members by the Institute for Divorce Financial Analysts. The national organization certifies, educates and promotes the use of financial professionals in the divorce arena.

(Photo/File)

Contributing Writer

inancial planners say they often run into behavioral issues when working with clients, and therapists report that money is one of the leading causes of marital discord. And according to a survey by a divorce financial analysts group, money is the third-leading reason for marital breakup, after basic incompatibility and infidelity.

As financial advisers and counselors have found the lines of their practices blurring, a nascent movement advocates for integrating their disciplines.

“Many times when financial professionals are helping clients, they encounter personal issues, and when therapists are helping clients, they encounter financial issues,” said Ginger Phillips, administrator of the 6-year-old Financial Therapy Association, whose purpose is “to foster the integration of cognitive, emotional, behavioral, relational and economic aspects that promote financial health.”

Financial therapy brings together financial advisers and therapists to address the issues underlying clients’ financial planning woes.

Rick Kahler, a certified financial planner at Kahler Financial Group in Rapid City, S.D., and president of the Financial Therapy Association, said roughly one-third of his clients have some sort of psychological block preventing them from executing a logical financial plan.

Consequently, he teams with a licensed professional counselor during goal-setting exercises with new clients.

Dave Jetson is one of the counselors who works with Kahler. He has clients draw pictures of their earliest money memories, unlocking their subconscious feelings about money.

“Ninety-one to 99% of decisions have a subconscious component,” he said.

“This is where some financial planners

might have some indigestion.”

The combination of financial planning and therapeutic expertise forces clients to examine their spending habits and their attitudes towards money. The cross-discipline remains in its infancy, with 250 Financial Therapy Association members nationwide — and none in South Carolina.

The model is being used here, however.

Melissa Mitchell-Blitch is a Mount Pleasant-based counselor and family business consultant who also has a CPA and has worked as a financial planner.

She saud she believes most therapists are uncomfortable talking with their clients about money, and that has opened a niche for her.

In one of her businesses, she combines her clinical expertise with a financial planner’s to help clients.

For example, a couple might come to her with conflicting spending-saving priorities. Working with a financial

planner, Mitchell-Blitch might spend a year exploring the issue with her clients and helping them address their challenges.

“It’s important to plant a seed of hope,” she said.

Although Mitchell-Blitch has the financial planning background, she serves only as behavioral coach and leaves the financial advice to her partner.

In other clinical practices, counselors refer patients to financial planners, or vice versa, when the need arises, without the formal interconnectivity.

When certified financial planner Diane Blackwelder has encountered clients struggling to understand their money biases, she has put their financial planning into a holding pattern and referred them to counselors.

“It can be a tricky conversation,” said Blackwelder, of Charleston Financial Advisors.

One of her clients facing divorce was paralyzed by fear about money but need-

ed to make some important monetary decisions. Blackwelder referred her to a counselor first before returning to the financial plan.

Not everyone is sold on the integration of the two disciplines.

Ward Lassoe, a Charleston-based licensed professional counselor, said that he thinks the need for therapy is greater than the demand and that he appreciates anything that will coax the wary into therapy.

He said that he believes financial planners can serve as fine referral sources but that he is dubious about combining the two.

“There needs to be a firewall between the financial aspect and other parts of a client’s life. I would want to maintain that confidentiality,” he said.

Aaron Justice, a certified financial planner for First Citizens Bank Wealth Management, agrees. Although he said See THERAPY, Page 17

➤

IN FOCUS: BANKING AND FINANCE

April 20 - May 3, 2015

they’ll need. Wealth managers may be less likely to confront monetary hanghe has encountered clients who seem to ups than financial planners with more need therapy more than financial plan- middle-class clients, said First Citizens’ ning, he’s never referred any for help. But Aaron Justice. he added that he can’t conceive of providAt Family Services Inc., a North ing his services without first listening to Charleston-based nonprofit providing the customer’s needs. professional financial and housing coun“Our decisions seling services, would be made low- to moderin a vacuum if we “There needs to be a firewall ate-income famdidn’t know the ilies often arrive client and their between the financial aspect in a debt crisis or goals,” he said. foreclosure situaThe Financial and other parts of a client’s tion.

Therapy AssoFinancial educiation’s Kahler life. I would want to maintain cation manager said those kinds Kristin Bastian of responses are had never heard of that confidentiality.” not unusual, and financial therapy, Ward Lassoe he said therapists but she has joked Charleston-based licensed have been less with her colprofessional counselor receptive to finanleagues that she is cial therapy than sometimes a marfinancial planners riage counselor. have.

“By no means am I an expert in psycholBut financial therapy is slowly gaining ogy,” she said, but she has advised clients ground. Kansas State University in Man- that they need to work out their underlying hattan, Kan., now offers a minor in finan- issues before she can help them. cial therapy, and Kahler teaches a course Mitchell-Blitch, the local theraon the subject at Golden Gate University pist who works with financial advisers, in San Francisco. said, “Money is always a symptom of In many respects, financial planners emotional issues — never the cause — say the socioeconomics of clients helps because it’s dependent upon the value determine how much hand-holding we assign to it.

THERAPY, continued from Page 16

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www.charlestonbusiness.com 17

Heritage Trust to open student-run branch in Goose Creek this summer

By Ashley Heffernan aheffernan@scbiznews.com

H

eritage Trust Federal Credit Union is opening a student-run branch at Goose Creek High School in August, according to a news release from the school.

Students in Goose Creek High’s Academy of Business and Information Systems will receive formal employee training during the summer and will learn to open new memberships, process transactions and issue debit cards. The student employees will serve students, faculty and staff members at the new facility on campus.

“We have been working on this initiative for several years, looking for the right

place to start…What better way to prepare students for their future than by providing the tools and resources needed to learn the correct way to manage finances while still in high school?” Heritage Trust President and CEO Jim McDaniel said in a statement.

Rodney Thompson, superintendent of the Berkeley County School District, said the in-school branch will be the first of its kind in the tri-county area.

“This partnership will provide our students with the opportunity to be collegeand career-ready in the multifaceted world of business and finance,” Thompson said in a statement. cr bj

Reach staff writer Ashley Heffernan at 843-849-3144 or @AshleyBHeff on Twitter.

Signing a career academy partnership in March were Berkeley County School District board members Jim Hayes (from left) and Kathy Schwalbe; Berkeley County Schools Superintendent Rodney Thompson; and from Heritage Trust, President and CEO Jim McDaniel, Executive Vice President Steve Wichmann and Senior Vice President of Development Emily Reynolds. (Photo/Jordan Hensley/Berkeley County School District)

18

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IN FOCUS: BANKING AND FINANCE

April 20 - May 3, 2015

Standard & Poor’s increases Berkeley County School District credit rating

By Ashley Heffernan

S

aheffernan@scbiznews.com

tandard & Poor’s Ratings Services raised Berkeley County School District’s credit rating by one notch, from AA- to AA, according to a news release.

The district’s long-term rating for appropriation debt also went up, from A+ to AA-.

S&P said the district has shown continued economic growth, a strong financial profile and an ability to produce positive operations.

S&P credit analyst Timothy Barrett said the district’s rating is not expected to change again within the next twoyear outlook period.

“If the district’s economy were to show continued growth with an increase in income factors, coupled with positive operations that lead to

reserve growth and the maintenance of a moderate debt profile, we could raise the rating,” Barrett said in a statement.

“Although we do not expect this to happen, if the district cannot produce balanced operations, causing a reserve drawdown, we could lower the rating.”

Berkeley County School District Superintendent Rodney Thompson said the rating upgrades add value from an investor’s perspective, meaning more bidders on future bonds.

“This also pleases current investors because they are now holding bonds that are more valuable,” Thompson said.

CFO Brantley Thomas said the upgrades mean savings for taxpayers.

“The rating upgrade is a very positive reflection of the school district’s commitment to fiscal responsibility, and it shows our focus on maintaining good fiscal policy,” Thomas said. cr bj

South Atlantic Bank leasing space for 2nd Mount Pleasant branch

By Ashley Heffernan

S

aheffernan@scbiznews.com

outh Atlantic Bank is leasing about an acre of land in Mount Pleasant to build a full-service branch that is expected to open next year, according to a news release.

The Myrtle Beach-based bank opened its first Lowcountry branch in Mount Pleasant last year at 1127 Queensborough Blvd. and plans to put a second facility nearby on Johnnie Dodds Boulevard, in front of the Publix-anchored shopping center.

Construction will likely begin later this year on an 8,000-square-foot, two-story facility, which will include space for the branch on the first floor and tenants on the second, the news release said.

“While the new building will be just minutes away from our current office, customers will find its central location even more convenient,” South Atlan-

tic Bank CEO and Chairman K. Wayne Wicker said in a statement. “The new office will feature the latest in technology provided in a warm and welcoming atmosphere with a strong emphasis on customer service.”

Barbara Marshall, senior vice president and director of marketing for the bank, said that the current branch will likely close once the new branch opens but plans have not been finalized.

The 1.36-acre parcel is owned by an affiliate of Jupiter Holdings LLC, and the bank was represented by Ben Kelly of NAI Avant in the transaction.

South Atlantic Bank, which was founded in November 2007, operates additional offices in North Myrtle Beach, Murrells Inlet, Pawleys Island and Georgetown. At the end of 2014, the bank’s net assets totaled $363 million, net income was about $2 million and total loans grew 20% from the previous year to nearly $263 million, according to the bank’s annual report. cr bj

South Atlantic Bank already operates a branch at 1127 Queensboough Blvd. and plans to open another office nearby on Johnnie Dodds Boulevard next year.

(Photo/South Atlantic Bank)

IN FOCUS: BANKING AND FINANCE

April 20 - May 3, 2015

Office space, restaurants and retailers will be within walking distance of each other in Nexton.

(Rendering/MWV)

CPM Federal Credit Union buys property in Nexton development

By Ashley Heffernan aheffernan@scbiznews.com

C

PM Federal Credit Union has purchased 0.7 acre of land in MWV’s Nexton development for $825,000 with plans to open a full-service branch in the new Summerville community.

Mike Chodnicki, vice chairman for the credit union, said the 3,400-squarefoot branch is expected to open next year.

“Nexton is in the heart of the region’s most vibrant growth area and a community focused on the future,” Chodnicki

said in a statement. “Our new branch will be a modern, one-story, full-service facility on the corner of Brighton Park Boulevard and Rose Drive with dedicated parking, two drive-up teller lanes, drive-up ATM, night drop and safe deposit boxes.”

CPM Federal Credit Union, formed in 1955 by Charleston Paper Mill employees, now serves 64,000 members and has $267 million in assets. It operates branches in Beaufort, North Charleston, Summerville, Greenville, Greer, Simpsonville, Spartanburg, Orangeburg and Port Royal. cr bj

Bank of South Carolina Corp. earnings jump nearly $250,000

By Ashley Heffernan

B

aheffernan@scbiznews.com

ank of South Carolina Corp.’s first-quarter earnings were up 26% from the same quarter in 2014, according to a filing with the U.S. Securities and Exchange Commission.

The Charleston-based bank’s earnings totaled $1.2 million, or 27 cents per share, for the quarter that ended March 31. That’s up from the $955,798, or 21 cents per share, the bank earned in the first quarter of 2014, the filing said.

“With the improving economy in Charleston, we’re off to a good start with better-than-anticipated loan volume and

solid production from our mortgage department,” Bank of South Carolina President Fleetwood S. Hassell said in a statement. “Strategic changes within our investment portfolio and excellent control of expenses continue to drive our efficiencies and have resulted in a strong contribution to our bottom line.”

Returns on average assets were 1.32% and returns on average equity were nearly 13% during the first quarter, the filing said.

The Bank of South Carolina operates branches in downtown Charleston, Summerville, West Ashley and Mount Pleasant and trades on the Nasdaq under the symbol BKSC. cr bj

Bank of South Carolina Corp. earnings report BKSC common stock Book value per share Total assets

March 31, 2015 4,461,388 shares $8.52 $376,587,308

Source: Bank of South Carolina Corp.

March 31, 2014 4,461,388 shares $7.91 $336,618,121

www.charlestonbusiness.com 19

20

www.charlestonbusiness.com

APPLE PAY, continued from Page 15 ➤

CresCom Bank, but some customers will prefer to do everything with their phones and avoid carrying a wallet.

“There’s a material segment (of the marketplace) who want to use it,” he said.

“We’re not sure it’s going to go gangbusters. We need to offer options to all our customers.”

Unlike large banks, CresCom has avoided jumping in feet first on mobile payment; but unlike small community banks, it is surveying the landscape and ready to build the infrastructure when customers begin demanding it.

Hujik says once Apple, major retailers and large banks establish protocols, other providers will fall in line, smoothing the process for all who follow.

Protocols will be especially important in the process of tokenization, through which card numbers and security codes are converted into random numbers that can’t be translated back without the conversion key.

Larger regional banks, like South State Bank, based in Columbia, and Synovus Bank, which includes NBSC in Charleston, are not waiting.

South State Bank is poised to present Apple Pay to its customers in May, said Jeff Fulp, executive vice president of retail banking.

Synovus will roll out Apple Pay for

April 20 - May 3, 2015

IN FOCUS: BANKING AND FINANCE

all its banks this year and plans a complete mobile wallet unveiling at some point after 2015, according to Leila Carr, senior group executive for business intelligence.

First adoption is not part of the business plan for most small community banks, like The Bank of South Carolina, whose conservative portfolio relies primarily on loan interest and personal relationships.

Fleetwood Hassell, president of the Charleston-based bank, said he is content to ride in on the tail-end of the mobile payment wave.

“Some banks use technology to replace customer service. We use technology to enhance customer service,” he said.

Like many small banks, The Bank of South Carolina has no plans to implement a mobile payment system until it has to.

That approach worked for the bank with respect to online banking, which it waited to adopt until its competitors had worked out the kinks.

By the time The Bank of South Carolina came aboard, the technology had been perfected and costs had dropped dramatically.

Synovus’ Carr said she believes that time has already come.

“The digital space is rapidly changing,” she said. “The concept of the digital wallet is here to stay.” cr bj

Trump calls Charleston investment ‘pretty interesting,’ won’t say more

By Ashley Heffernan

I

aheffernan@scbiznews.com

nternational real estate mogul Donald Trump has an investment in Charleston, but he said it’s not the appropriate time to discuss it yet.

Calling the investment “pretty interesting,” Trump declined to release more details after speaking to state treasurers during the national State Financial Officers Foundation meeting in Charleston.

“I think Charleston is a fantastic place, becoming an unbelievable tourist destination, one of the finest in the country,” Trump said. “I like Charleston very much, and I like the people very much.”

He also talked about the country’s political scene and the possibility of his running for president.

“We’re going to make a decision very soon as to whether or not I run. I hate what’s happening in this country. Politicians are all talk, no action,” Trump said.

“They’re destroying the country. They’re destroying the fabric of our country, and I’ll be deciding very soon. I think people are going to be very surprised with what I do. We’ve done very well in the polls, and

Donald Trump spoke during the national State Financial Officers Foundation meeting in mid-April in downtown Charleston. (Photo/Ashley Heffernan)

everyone thinks I’m not running.”

Trump, who has debated the idea before, said Republican candidate Mitt Romney was embarrassed during his campaign against President Barack Obama in 2012.

“I’ve always had an ability to make a lot of money and to make things great and to fix things. If I run and if I win, I won’t care about my business. My kids would run my business,” Trump said. “If I run and if I win, I will devote 100% of my energy to making our country great again and rich again, because it can’t be great unless it’s rich.” cr bj

Reach staff writer Ashley Heffernan at 843-849-3144 or @AshleyBHeff on Twitter.

IN FOCUS: BANKING AND FINANCE

April 20 - May 3, 2015

www.charlestonbusiness.com 21

Banks

Ranked by Market* Share Institution

Top Local Official(s) /Year Founded

Phone Website

Wells Fargo & Co. 177 Meeting St., Charleston, SC 29401

Leonard L. Hutchison III 1852

843-727-2969 www.wellsfargo.com

South State Bank 2440 Mall Drive, North Charleston, SC 29406

Bill Medich, Jack Goettee 1933

Bank of America N.A. 200 Meeting St., Charleston, SC 29401

Holding Company

Market Deposits

Holding Company

Holding Company

22.74%

$2,353,431,000

25

Wells Fargo & Co. Sioux Falls, SD

843-529-5800 www.southstatebank.com

15.04%

$1,556,685,000

35

South State Holding, South State Holding Charleston, SC

Mark Munn 1904

843-579-5492 www.bankofamerica.com

13.62%

$140,938,200,000

16

Bank of America Corp.

Charlotte

First Citizens Bank & Trust Co. Inc. 182 Meeting St., Charleston, SC 29401

Tom Trouche, Sharon W. Bryant 1913

843-722-5801 www.firstcitizensonline.com

6.64%

$687,458,000

20

First Citizens Bancorp. Inc. Columbia, SC

NBSC, a division of Synovus Bank 158 Meeting St., Charleston, SC 29401

Charles W. Garnett, Robert G. Phillips 1905

843-724-7023 www.banknbsc.com

6.62%

$659,506,000

9

Synovus Financial Corp.

Columbus, GA

BB&T (Branch Banking & Trust Co.) 1962 Sam Rittenberg Blvd., Charleston, SC 29407

J. Frank Bullard III 1872

843-852-5050 www.bbt.com

5.93%

$590,480,000

13

BB&T Corp.

Winston-Salem, NC

CresCom 288 Meeting St., Charleston, SC 29401

David L. Morrow 1997

843-723-7700 www.haveanicebank.com

5.39%

$536,884,000

8

Carolina Financial Corp.

Charleston

Southcoast Community Bank 530 Johnnie Dodds Blvd., Mount Pleasant, SC 29464

L. Wayne Pearson 1998

843-884-0504 www.southcoastbank.com

3.28%

$327,139,000

11

Southcoast Financial Corp.

Mount Pleasant

The Bank of South Carolina Corp.

256 Meeting St., Charleston, SC 29401

Hugh C. Lane Jr., Valarie Stone 1986

843-724-1500 www.banksc.com

3.07%

$305,593,000

4

The Bank of South Carolina Corp.

Charleston, SC

SunTrust Bank 276 East Bay St., Charleston, SC 29401

Mark Lattanzio 1891

843-937-8918 www.suntrust.com

2.34%

$232,833,000

13

SunTrust Banks Inc. Atlanta

Harbor National Bank 134 Meeting St., Suite 201, Charleston, SC 29401

Charles H. Stuart 2006

843-654-7838 www.harborbankgroup.com

2.31%

$230,088,000

4

Harbor Bank Group Inc. Charleston

TD Bank N.A. 40 Calhoun St., Suite 100, Charleston, SC 29401

W. Dixon Woodward 1852

843-577-4600 www.tdbank.com

2.30%

$228,965,000

6

TD Bank Cherry Hill, NJ

Tidelands Bank 875 Lowcountry Blvd., Mount Pleasant, SC 29464

Thomas H. Lyles 2003

843-388-8433 www.tidelandsbank.com

2.29%

$227,709,000

4

Tidelands Bancshares Inc. Mount Pleasant

Regions Bank 170 Meeting St., Charleston, SC 29401

Christopher Riley, Brian Ball 1928

843-937-8979 www.regions.com

1.32%

$131,774,000

5

Regions Financial Corp.

Birmingham, AL

Farmers & Merchants Bank of South Carolina 221 E. Main St., Moncks Corner, SC 29461

Thierry P. Longueville, Steven M. Sabback 1912

843-761-8888 www.fmbsc.com

1.20%

$119,722,000

3

FMB of S.C. Bancshares Inc. Holly Hill

First National Bank of South Carolina 415 N. Main St., Summerville, SC 29483

Ron Anderson, Tammie Taylor 1905

843-873-3310 www.fnbsc.com

0.91%

$90,809,000

6

FNB Corp.

Holly Hill

Ameris Bank 834 Savannah Highway, Charleston, SC 29407

Charles Hudgens 2007

843-821-5075 www.amerisbank.com

0.78%

$78,063,000

4

Ameris Bancorp Moultrie, GA

Enterprise Bank of South Carolina 102 Main St., Ridgeville, SC 29472

W.H. Varn Jr. 1920

843-871-0225 www.ebanksc.com

0.46%

$45,930,000

2

-

First Reliance Bank 25 Cumberland St., Charleston, SC 29401

Ben Brazell 2005

843-789-1000 www.firstreliance.com

0.40%

$39,867,000

2

First Reliance Bank Florence, SC

Park Sterling Bank 140 East Bay St., Charleston, SC 29401

J. Emory Ware Mr 2006

843-714-2182 www.parksterlingbank.com

0.35%

$6,164,000,000

1

Park Sterling Corporation Charleston, SC

PNC Bank N.A. 100 Calhoun St., Charleston, SC 29401

Nate Harrison 1990

843-958-1400 www.pnc.com

0.32%

$32,092,000

2

The PNC Financial Services Group Inc. Wilmington, DE

BNC Bank 291 East Bay St., Floor 1, Charleston, SC 29401

Mary D. Garcia, Thomas Bouchette 1991

843-606-9166 www.bncbanksc.com

0.31%

$31,276,000

3

BNC Bancorp Thomasville, NC

Palmetto Heritage Bank & Trust 3102 U.S. Highway 17 N., Mount Pleasant, SC 29466

Jerry A. Vereen 2005

843-884-2404 www.palmettoheritagebank.com

0.29%

$28,819,000

1

Palmetto Heritage Bancshares Inc. Pawleys Island

First Federal of S.C. 5561 W. Memorial Blvd., St. George, SC 29477

Keith M. Kinard, Arnold A. Zipperer III 1962

843-563-2391 www.1stfederalofsc.com

0.27%

$27,151,000

1

-

Southern First Bank 480 East Bay St., Suite F, Charleston, SC 29403

Len Howell, Eddie Tuttle 2012

843-725-5099 www.southernfirst.com

0.26%

$25,842,000

1

Southern First Bancshares Inc. Greenville

The Citizens Bank 5730 W. Memorial Blvd., St. George, SC 29477

H. Blake Gibbons Jr. 1943

843-563-6141 www.thecitizensbank.cc

0.23%

$22,437,000

1

Citizens Bancshares Corp.

Olanta

First Palmetto Savings Bank 5 Sumar St., Charleston, SC 29407

David Ryan 1904

843-852-2665 www.firstpalmetto.com

0.19%

$18,449,000

3

First Palmetto Financial Corp.

Camden

Bank of Walterboro 6225 Savannah Highway, Ravenel, SC 29470

Gwendolyn P. Bunton 1989

843-889-6953 www.bankofwalterboro.com

0.17%

$16,807,000

1

Community Corp.

Walterboro

Capital Bank N.A. 651 Johnnie Dodds Blvd., Mount Pleasant, SC 29464

Rick Manley 1999

843-971-6977 www.capitalbank-us.com

0.16%

$15,811,000

1

Capital Bank Financial Corp.

Miami

Woodforest National Bank 4920 Centre Pointe Drive, North Charleston, SC 29418

1980

843-554-9275 www.woodforest.com

0.02%

$1,540,000

2

Woodforest Financial Group Employee Stock Ownership Plan Spring, TX

CertusBank 174 Meeting St., Charleston, SC 29401

Logan Bagley, Forrest M. Edwards 2011

843-708-5369 www.certusbank.com

0.00%

$0,000

1

Certusholdings Inc. Easley

Wilmington Trust N.A. 7301 Rivers Ave., Charleston, SC 29406

Todd Tautfest 2011

800-982-4620 www.wilmingtontrust.com

0.00%

$0,000

1

M&T Bank Corp.

Wilmington, DE

*Market includes Berkeley, Charleston and Dorchester counties. Source: Federal Deposit Insurance Corp. deposit market share report as of June 30, 2013. View this list online at www.scbiznews.com/data. Although every effort is made to ensure accuracy, errors sometimes occur. Email additions or corrections to lists@scbiznews.com or go to www.tinyurl.com/joinourlists.

Researched by Business Journal staff

22

www.charlestonbusiness.com

April 20 - May 3, 2015

At Work:

People, places and happenings across the Lowcountry

Hot Properties 26 Viewpoint 27

People in the News

Business Digest

CONSTRUCTION

Select Health participates in Principal for a Day program Executives from Select Health of South Carolina participated in the Charleston Metro Chamber of Commerce’s Principal for a Day program. Rebecca Engelman, market president at Select Health, and Dr. Fred Hill, chief medical officer at Select Health and chief regional medical officer at AmeriHealth Caritas, learned about the day-to-day operations of a school and offered business-world perspectives to the principals. Engelman shadowed Principal Sherry Peterson at Murray-LaSaine Elementary School on James Island, and Hill shadowed Principal Marty French at the Daniel Island School. Engelman and Hill visited classrooms, read to children and met with school leaders.

Rebecca Engelman (right) reads to students at Murray-LaSaine Elementary School as part of her day of shadowing Principal Sherry Peterson (left).

Flat-fee real estate listing firm now serving Charleston area

S.C. Flat Fee Real Estate, a fee-for-service real estate company, is now serving customers in the Charleston area. The company offers Multiple Listing Service access to owners trying to sell their homes and will work with homeowners to help them promote their homes online.

Lincoln Harris relocates Charleston office to Bank of America building

Lincoln Harris has relocated its Charleston property management and real estate office to the Bank of America building at 200 Meeting St. The firm’s new office is 2,844 square feet.

Fay Bell (from left) and Alicia Smith of the Greater Summerville/Dorchester County Chamber of Commerce; Rita Berry, chamber president and CEO; Joann Brooks of the chamber; chamber board Chairman Mac Baughman; Alison Covington of Transworld Systems; and Tori Burke-Koskela, Susan Worthy, Tina Zimmerman and Sue Sanders of the chamber.

Lowcountry Local First honored as Ally of the Year by SBA

Wiley Johnson (from left), Greater Summerville/ Dorchester County Chamber of Commerce member; Kimberly Newman, owner of Simply Elegant Event Rentals; Summerville Mayor Bill Collins; and Dan Moon, relative of Newman.

Simply Elegant Event Rentals holds ribbon-cutting for new location

Steinway Piano Gallery opens in West Ashley

The Greater Summerville/Dorchester County Chamber of Commerce and Simply Elegant Event Rentals recently held a ribbon-cutting ceremony to celebrate the company’s relocation to 214 Old Trolley Road in Summerville. Simply Elegant carries a variety of rental items, including tables, chairs and linens and specialty items.

The Steinway Piano Gallery of Charleston has opened in West Ashley near the Ashley Landing Shopping Center. Chris Clark has been named president of the gallery, which is at 1664 Old Towne Road, Suite A. The store sells a full line of Steinway & Sons grand and upright pianos, as well as Steinway-designed Boston and Essex pianos.

Bill Amiot has joined J. Musselman Construction Inc. as a superintendent.

He has been a project superintendent for more than 20 years in the Charleston area.

Jessica Rowe Bazaco has joined the Daniel Island office of Energy One America as residential projects coordinator. She is a graduate of Clemson University. EnerBazaco gy One specializes in foam insulation applications, crawl space services and mold prevention.

ACCOUNTING

Charleston-based Lowcountry Local First has been named South Carolina’s Small Business Ally of the Year by the state chapter of the Small Business Administration.

Whitten

Transworld Systems holds grand opening ceremony

The Greater Summerville/Dorchester County Chamber of Commerce and Transworld Systems Inc. recently held a ribbon-cutting ceremony to celebrate the company’s grand opening. Transworld Systems assists businesses in collecting payment from slow-paying accounts.

Derek Skipper has joined Mashburn Construction as a health care project manager. He graduated from Clemson University with a degree in construcSkipper tion science and management and has more than 10 years of experience in health care construction.

Palmetto Moon opens Savannah-area location

Charleston-based Palmetto Moon has opened its 10th location in the new Tanger Outlets Savannah in Pooler, Ga. The new store opened during the center’s grand opening on April 16. Palmetto Moon sells Southern-focused collegiate apparel, specialty gifts and accessories.

See BUSINESS DIGEST, Page 26 ➤

Eberhardt

Jarrard, Nowell & Russell LLC has hired Frances Lester Whitten as office manager, Laura Eberhardt as a process accountant and Aaron Gaspar as Gaspar a staff accountant.

Whitten previously served as district sales assistant for the Sacramento, Calif., office of Paychex Inc. In her new role, she will oversee the processing of tax returns. Eberhardt previously served as vice president of operations for Queen Street America, an insurance marketing firm in Charleston. Prior to that, she worked in business development in Charleston for LS3P and McMillan See PEOPLE, Page 25

➤

24

www.charlestonbusiness.com

April 20 - May 3, 2015

First-time homebuyers are back

H

omeownership has been falling steadily for a decade. Several factors are at work. First, the housing bubble made homeownership affordable for a large number of lower-income Americans as down payments fell to 0% and income verification ceased to be a requirement.

Unfortunately, many of those people Stephen D. should never have Slifer become homeowners. When the Fed raised short-term interest rates in 2005 and 2006, adjustable-rate mortgages re-priced upward and monthly payments increased dramatically. Many people fell behind on their payments and eventually lost their homes to foreclosure and were forced to rent. Thus, a large part of the drop in homeownership reflects the bursting of the housing bubble.

Although homeownership has declined for every age group, it has been concentrated among younger Americans, specifically the under 35 and 35-to44 age brackets. In the wake of the Great Recession, these younger people faced a high unemployment rate and slow wage growth. Many were saddled with student debt. As a result, they lived in their parents’ homes for a much longer period of time than generations in the past and were forced to take whatever low-paying jobs they could find. Their lack of interest in homeownership may also reflect a desire not to be tied down. Whether by choice or simply because they are unable to qualify for a mortgage, many of these young folks have chosen to rent.

What has not been clear is whether this reflects a cyclical adjustment or a more long-lasting change in behavior.

As the economy completes its sixth year of expansion, younger adults are finding jobs more readily. They also appear to believe that mortgage rates will remain low for some time even as the Fed begins to raise short-term interest rates.

As a result, they are beginning to leave their parents’ homes and venture out on their own. The Census Bureau recently reported a sharp increase in household formation. In fact, it is now rising at the fastest rate in a decade.

This has enormous implications for the housing sector. First-time homebuyers account for 40% of all home purchases. Thus, a pickup in the pace of household formation should stimulate sales of both new and existing homes, particularly for lower-priced homes. Indeed, new-home sales unexpectedly surged in December, January and February. They climbed at an astonishing 80% annual rate during that period of time. Now we

“As a result, they lived in their parents’ homes for a much longer period of time than generations in the past and were forced to take whatever low-paying jobs they could find.” know why. Looking ahead it is easy to envision a selling rate of 560,000 by the end of this year, which would be the fastest pace in eight years.

Existing home sales have not yet demonstrated a similar pickup, but pending home sales surged in February, which implies that existing sales will climb in the months ahead.

Given the pickup in the pace of newhome sales, the available inventory of unsold homes fell to a 4.7-month supply in February, which is far below the 6.0month supply that is generally regarded as the point at which the demand for and supply of new homes are roughly in balance. Thus, the pressure is on builders to step up the pace.

The problem is that builders are having difficulties finding an adequate supply of labor. Many immigrant workers once relied upon by builders left the country once the housing bubble burst.

Builders are also reporting challenges in finding available lots for development.

And credit remains tight for speculative projects. That said, we expect single-family starts to climb 15% this year to 800,000 while multifamily units jump 38% to 500,000. If housing starts reach the 1.3 million mark by the end of this year, that would be the fastest pace of sales since August 2007.

The robust demand for new homes should boost home prices considerably.

Right now the Case-Shiller Index has risen 4.4% in the past year. However, in the most recent three-month period, prices have been climbing at a steamy 10.3% pace. If builders are unable to keep pace with the ambitious construction schedule described above, home prices could increase at a double-digit pace this year, which would negatively impact sales later this year. As it stands, we expect home prices to rise about 8.0% in 2015.

The important point is that first-time homebuyers have resurfaced. This will boost the pace of home sales, housing starts and home prices more sharply than we anticipated at the beginning of this year. cr bj

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

April 20 - May 3, 2015

www.charlestonbusiness.com 25

People in the News Pazdan Smith. Gaspar will be responsible for preparing corporate and individual tax returns, bookkeeping and payroll taxes. He has a master’s degree in accounting from Purdue University Calumet and a bachelor’s degree in management from Purdue University.

transactions, and business and commercial litigation. He joined the firm in 2010.

Dukes practices in the areas of family law, employment law, education law, personal injury and appellate work. She is a graduate of the Charleston School of Law and joined the firm in 2009.

Moody CPAs & Advisors has hired Raymond Lightfoot as a senior associate.

He will be responsible for audits, compilations and business and individual tax Lightfoot return preparation.

He is a graduate of the University of Kentucky and has a bachelor’s degree in accounting. He has six years of public accounting experience.

Motley Rice LLC has added T. David Hoyle, James W. Ledlie and Lance Oliver as attorneys. Hoyle practices corporate litigation in areas such as catastrophic incidents, asbestos exposure and environmental contamination.

Ledlie focuses on client advocacy and has represented military veterans in wrongful death and serious personal injury cases. He earned a juris doctorate from the University of South Carolina School of Law and a bachelor’s degree from Wofford College. Oliver focuses his practice on class actions, mass torts and other complex litigation. After graduating from Samford University in Birmingham, Ala., and Duke Law School, he served as a law clerk to James Hughes Hancock of the U.S. District Court, Northern District of Alabama.

STAFFING Keri Seay has joined Dunhill Staffing Systems. She has experience in personal finance, insurance, business marketing and sales.

Seay

Kelly Services has hired Jonathan Owen as a business development representative and Lisa Libby as a staffing supervisor.

Owen has more than six years of staffing experience and Libby has more than six years of human resource and staffing experience.

ARCHITECTURE Steven Coe has taken over as sole owner of the Charleston-based architectural firm Rosenblum Coe Architects. He has been a partner since 2001 and succeeds his business partner and founder, Jeffrey Rosenblum, who is stepping down after 43 years. Rosenblum will continue with the firm in consulting, guidance, quality control and coordination of projects.

Batchelder

Clark Batchelder has joined Goff D’Antonio Associates as an intern architect. He has a degree in architecture from Norwich University and studied in Berlin with Lexia International.

LAW John Rosen and Rene Stuhr Dukes have been named non-equity members of Rosen Hagood. Rosen practices primarily in the areas of business and corporate

HOSPITALITY & TOURISM Andrea Roskowski has been hired as head pastry chef at Caviar & Bananas in downtown Charleston. Roskowski previously worked with Charleston’s B. Gourmet Catering and for Driftwood Restaurant Group in Cleveland.

Jennifer Colangelo has been named general manager and Jennifer Arnold has been named director of sales of the new Hilton Garden Inn in Mount Pleasant.

Philip Guiry has been named director of operations for the Charleston RiverDogs. Guiry is a 2007 graduate of the University of Florida and most recently worked as the assistant general manager for the Bakersfield Blaze in California.

He will be in charge of operations at Riley Park throughout the 2015 season.

TECHNOLOGY Darren Cumbie has joined CodeLynx as a software engineer. His new role entails providing supporting infrastructure and deployment support across multiple internal and client-facing project teams.

REAL ESTATE Carolina One Real Estate has hired Mary Marshall Grace and Paul Blake Lalli in the Mount Pleasant Coleman Boulevard office; Marjonah Ibadah Ibraheem and Abby Whiten Miller in the Goose Creek Crowfield Boulevard

office; Mallory Erin Molony in the Folly Road office; Gale J. Smith in the Summerville Trolley Road office; and Paul Franklin Smith and Vicki Roberts in the Summerville Main Street office.

Grace is a graduate of Clemson University and was previously employed by the Charleston County School District.

Lalli has worked the past 23 years in the information technology field. Ibraheem has a Bachelor of Arts degree in business administration from Strayer University and was an elementary school teacher in Washington, D.C. Miller has a Bachelor of Arts degree in communications from the College of Charleston and worked for Boeing Co. for six years.

Molony has a Bachelor of Arts degree in criminal justice from the University of South Carolina and previously worked for the Motley Rice Law Firm.

Smith has a degree in early childhood education from Trident Technical College. Smith graduated from Clemson with a degree in information systems management. And Roberts has a degree in human resource management from Trident Technical College.

NAI Avant has hired Jered Wilkerson in the company’s Charleston office. He previously held an associate position with Keller Williams Commercial in Southlake, Texas, where he facilitated land, office, multifamily and retail transactions. Wilkerson has a bachelor’s degree in finance from Texas A&M University.

Coldwell Banker Commercial Atlantic has hired David Mantek as a broker specializing in retail and investment properties. He has a bachelor’s degree in comMantek munications from Central Michigan University and has worked as a real estate investor for the past 21 years.

CBRE has promoted Brendan Redeyoff to senior associate and hired Dave Lansbury as an appraiser in its valuation and advisory services group. Redeyoff speRedeyoff cializes in industrial real estate. He joined CBRE in 2006, after graduating from the College of Charleston, where he studied business with an emphasis in real estate and global logistics. Lansbury has a bachelor’s degree from the University of Tennessee and a master’s degree from the College of Charleston, where he studied economics and collaborative management.

Southern Shores Real Estate Group LLC has hired Bryan McDonald at its West Ashley location. He graduated from Newberry College in 2001 with a bachelor’s degree in mass communications and previously worked as an operations coordinator for Kinder Morgan.

BUSINESS SERVICES Carolina Time & Parking Group has promoted Frank Claud to general manager; Tana Humbert to office administrator; Kyle Micko to lead technician 3; and Robert Heredia and Charles Dodds to field technicians 2. The company has hired Dwayne Mitchell as a field technician 1.

Gerald Moore, owner of The Little Gym of Mount Pleasant, has been selected by the International Franchise Association to be co-chairman for the national “Save Local Business” coalition.

HEALTH CARE Dr. Gail W. Stuart, dean of the Medical University of South Carolina College of Nursing, has been appointed to a fouryear term on the National Advisory Stuart Council of the Substance Abuse and Mental Health Administration. Stuart’s clinical and research areas of focus involve the study of depression, anxiety disorders, clinical outcomes and mental health delivery systems.

Marisa Ferguson has joined Bishop Gadsden as director of the James Island retirement community’s home-care entity. She graduated from York College in Pennsylvania with majors in communications and gerontology. She will be in charge of developing a new marketing plan to offer nonmedical services to people outside of Bishop Gadsden.

NONPROFIT ORGANIZATIONS Darkness to Light, a Charleston-based group focused on prevention of child sexual abuse, has appointed interim CEO Lyndon Haviland to the organization’s leadership team, and Cathy Huber and Viola Vaughan-Eden as board members. Haviland has more than 25 years’ experience in domestic and international public health and has led public health campaigns, initiatives and organizations.

Huber will work to expand child sexual abuse prevention education and awareness efforts in the Pacific Northwest.

Vaughan-Eden has provided child and family counseling services in southeastern Virginia for more than 25 years.

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April 20 - May 3, 2015

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

Cross County Road in North Charleston. CJ Garrett of Lowcountry Property Management represented the buyer.

Oliver Mathewes of Carolina One Commercial Real Estate represented the tenant, Marolina Outdoors Inc.

Mark Erickson of Cushman & Wakefield Thalhimer represented the tenant, On The Go Deliveries Inc., in the lease of 11,953 square feet of industrial space at 1005 Bankton Circle in Hanahan.

Drayton Calmes of Norvell Real Estate Group LLC represented the buyer, Marshall Bridge Capital LLC, in the sale of an 18,500-square-foot office and warehouse building at 3445 Buffalo Ave. in North Charleston to HD Supply for $1.5 million.

Charlie Moore of Carolina Commercial represented the seller.

Ed Kercher of Cushman & Wakefield Thalhimer represented the tenant, Parsons, in the lease renewal of 25,700 square feet of office space at 2457 Aviation Ave. in North Charleston.

Todd P. Garrett of Avison Young represented the landlord, GGT&S LLC, in the lease extension of an 8,000-squarefoot office and warehouse building at 7385 Industry Drive in North Charleston to Horizon Landscape Management Services.

Todd P. Garrett of Avison Young represented the landlord, Nancy Crockett Cooper, in the lease of a 2,400-squarefoot office and warehouse building at 3281 Associates Ave. in North Charleston to Horizon Landscape Management Services.

Carl Michael Harrison of The Beach Co. – Beach Commercial represented the landlord, Majestic Square LLC, in the lease of 1,880 square feet of retail restaurant space at 159 Market St. in Charleston to Milmat LLC, dba Cafe Framboise.

Alex Irwin of Newmark Grubb Wilson Kibler represented the seller, Fsisub LLC, in the sale of a 12,500-square-foot industrial building on 3.91 acres at 7365

Edward Robinson of The Beach Co. represented the tenant, National Medal of Honor Museum Foundation, in the lease of 1,399 square feet of office space at 528

Business Digest

Johnnie Dodds Blvd. in Mount Pleasant from Marshland Management LLC. Dan Henderson of CCBG Real Estate Group represented the landlord.

a 27,900-square-foot warehouse at 2718 Azalea Drive in North Charleston for $1.4 million. Thomas Buist of Lee and Associates of Charleston represented the seller.

Blair Belk and Trey Lucy represented the landlord in the lease of 1,450 square feet of space at 217 Lucas St., Unit G, to Teacups and Trucks LLC. Jason Ogden of The Cassina Group represented the tenant.

Charlie Carmody and Chip Shealy of CBRE Inc. represented the seller, AT&T, in the sale of an 80,903-square-foot office building at 385 Meeting St. in downtown Charleston to Jupiter Holdings for $15.61 million.

Pete Harper of Lee & Associates Charleston represented the landlord, Acquired Capital II LP, in the lease expansion into 4,962 square feet of Class A office space at the Atrium Northwoods, 7301 Rivers Ave. in North Charleston, to Dan Ryan Homes.

Reid Davis and Pete Harper of Lee & Associates Charleston represented the buyer, Holder Properties, in the sale of land at 1 Central Island Plaza on Daniel Island for $1.05 million for the development of a 75,000-square-foot office building.

J. Ryan Welch of Lee & Associates Charleston represented the landlord, Wando Park Investors LLC, in the lease of a 2,190-square-foot office suite at 502 Wando Park Blvd., Suite 109, in Mount Pleasant to Alder Energy Systems LLC. Dexter Rumsey of NAI Avant represented the tenant.

Jack Owens and Bob Nuttall of Lee & Associates Charleston represented the seller, Pierpont Baptist Church, in the sale of a 20,117-square-foot church building at 2498/2508 Ashley River Road in West Ashley for $1.1 million. Bud Poston of Century 21 Properties Plus represented the buyer.

Gordon Geer and Miles Barkley of Lee & Associates Charleston represented the seller, EPSR Group LLC, in the sale of 2.51 acres at 2520 Ashley River Road in West Ashley for $600,000. Bud Poston of Century 21 Properties Plus represented the buyer.

Dorchester County Councilman Bill Hearn (third from right), along with chamber staff and members, and friends and staff of Swain Family Chiropractic celebrate the company’s opening.

Swain Family Chiropractic holds grand opening ribbon-cutting

The Greater Summerville/Dorchester County Chamber of Commerce and Swain Family Chiropractic recently held a ribbon-cutting ceremony to celebrate the company’s grand opening at 931 Orangeburg Road in Summerville. Swain Family Chiropractic offers health and wellness options to individuals of all ages.

In attendance were Penny Wilson, chairwoman of the board of trustees of Mason Prep; Charleston Mayor Joe Riley; Charleston City Councilman Mike Seekings; the Rev. Dick Campbell; representatives from project architect Goff D’Antonio and Associates and builder Trident Construction; Mason Prep’s capital campaign steering committee; relatives of founder Harriett Mason; and families and friends of the school.

Mason Preparatory School dedicates new lower school building

Mason Preparatory School held a ribbon-cutting and dedication ceremony for its new lower school building this month.

The Harriett Starr Mason Lower School Building, named for the school’s founder, will hold first and second grades as well as the school’s first kindergarten classes.

Pete Harper of Lee & Associates Charleston represented the landlord, STH LLC, in the lease of 4,706 square feet of office space at 3125 Ashley Phosphate Road, Suites 117 and 118, in North Charleston to Serco Inc. Lee Allan of Jones Lang LaSalle represented the tenant.

Pete Harper of Lee & Associates Charleston represented the landlord, STH LLC, in the lease of 3,554 square feet of office space at 3125 Ashley Phosphate Road, Suites 109 and 110, in North Charleston to Eagle Fire Inc. Lee Allan of Jones Lang LaSalle represented the tenant.

Chip Shealy of CBRE Inc. represented the buyer, 1906 LLC, in the purchase of

Chip Shealy of CBRE Inc. represented the tenant, Lasik Vision Institute, in the lease of office space at 1801 Old Trolley Road in Summerville from Sal Investments LLC. Markus Kastenholz of CBRE Inc. represented the landlord.

Charles Constant of Domicile Real Estate Brokerage represented the tenant and landlord in the lease renewal of 1,655 square feet of retail space at 363 King St. in Charleston.

Charles Constant of Domicile Real Estate Brokerage represented the tenant, Roberta Roller Rabbit, in the lease of 1,425 square feet of retail space at 336 King St. in downtown Charleston. Jennifer Davis of Domicile Real Estate Brokerage represented the landlord.

Robert Pratt of Re/Max Pro Realty represented the landlord in the lease extension of 630 square feet of space at 100 S. Main Street, Suite L, in Summerville to Cypress Engineering LLC. Todd P. Garrett of Avison Young represented the tenant, City Electric Supply Co., in the lease extension of a 5,000-square-foot office and warehouse space at 2200 Heriot St. in North Charleston from G.S. Carter & Son Inc. Will Martin of Holcombe, Fair & Lane represented the landlord.

David Grubbs of NAI Avant’s Charleston office represented the seller, CEC Partners LLC, in the sale of 2.24 acres of land at the corner of Stockdale Street and Park West Boulevard in Mount Pleasant to Losajes Ltd. for $1 million. Scott Benedict of Carolina One Real Estate represented the buyer.

Will Sherrod of Lee & Associates Charleston represented the owners of Pier Pont Crossing at 2408 Ashley River Road in Charleston in the lease of 2,460 square feet of retail space.

Pete Harper of Lee & Associates Charleston represented the owner of West Charleston Business Center, 1941 Savage Road in Charleston, in the lease renewal of 2,080 square feet of office space to Integral Solutions Group.

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

Viewpoint:

Views, perspectives and readers’ letters

Proposed EPA regulation threatens affordable energy in South Carolina

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s part of President Barack Obama’s Climate Action Plan, the U.S. Environmental Protection Agency recently proposed a regulation that limits carbon dioxide emissions from existing coal-fired power plants across the country.

This may sound like a good idea, but there is little evidence the reguJohn Eick lation would have much of an impact in addressing climate change.

In neither the 654-page proposed rule nor the 376-page regulatory impact analysis does the EPA explain the supposed climatic benefits of the plan.

Using a climate model developed in part by the EPA, the Cato Institute determined that if the proposed EPA regulation is implemented in its entirety, the regulation would avert a total tempera-

ture increase of 0.018 degrees Celsius by the year 2100, an almost imperceptible amount.

Nevertheless, the EPA expects states — including South Carolina — to make significant changes to their electricity generation fuel mixes that have been carefully crafted and tailored to fit the unique circumstances of their own state.

Furthermore, as a result of market forces, carbon dioxide emissions nationwide are already on a downward trajectory and are nearing 1994 levels.

This is because advances in drilling technologies have made natural gas — which emits less carbon dioxide than coal when burned — less expensive and more widely available for electricity generation.

Despite all of this, South Carolina likely will be expected to reduce total carbon dioxide emissions by 51% by 2030. And this will all come at a cost.

Energy Ventures Analysis, a Virginiabased energy consulting firm, predicts the average South Carolinian’s electricity

and gas bill will increase by 13% and 50%, respectively, by 2020. These increases are a result of the current proposed regulation and other EPA regulations.

The same study suggests S.C. industries could see electricity rates increase by 30%.

As goods become more expensive to manufacture because of rising electricity rates, the cost will, as always, be passed along to the consumer.

The rule could also create reliability problems. The EPA expects eight coalfired power plants in South Carolina to be shut down by 2020 in order to comply with the regulation.

Altogether, these eight electricity generation units represent more than 3,500 megawatts of installed capacity, which is roughly the amount of electricity needed to power 1.8 million homes in South Carolina under normal conditions.

In the proposed rule, the EPA calls for an extremely ambitious compliance timeline. States must begin making changes in 2020 and be fully compliant

by 2030.

Replacing such a significant amount of installed coal-generating capacity with alternatives in such a short time frame will be a challenge.

Finally, such a regulation would represent yet another case of the federal government significantly encroaching upon state regulatory authority.

Since the New Deal era, the regulation of local distribution and retail sales of electricity has been a sovereign state function.

If this rule is finalized, the EPA’s power grab will come absent any congressional authorization or electoral mandate.

The prospect of these electricity systems being nationalized should concern anyone who relies on readily available access to affordable and reliable electricity.

John Eick is the director of the American Legislative Exchange Council Task Force on Energy, Environment and Agriculture.

Learn more at www.alec.org/task-forces/ energy-environment-and-agriculture.

Researchers need crowdsourced funding to cure major diseases

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bout 60% of science and engineering research in the United States is funded by federal government agencies, such as the National Institutes of Health and the National Science Foundation.

The grant application process is lengthy, consumes an estimated 40% of a researcher’s time and results in less Joseph than 18% of proposHelpern als being funded.

A consequence of this arduous process is that young scientists are losing hope.

Additionally, researchers often propose more conservative ideas — which are more likely to get funded over those that are “outside-of-the-box” and riskier, but also cutting-edge and highly promising.

This approach is dangerously close to stifling innovation and scientific progress.

As a physicist involved in medical research for the past 35 years, I know this firsthand. I have watched NIH funding levels decline dramatically over the past few years, and we are now at a crisis stage where we are losing the next generation of scientists. There needs to be a public outcry, and alternative mechanisms for

funding research need to be established.

In an attempt to address this problem, we recently founded Donors Cure.

This nonprofit crowdfunding platform provides a forum through which donors can support specific, qualified biomedical research projects led by researchers at institutions and universities across the United States.

The hope is that Donors Cure can kick-start young scientists who are working on important projects that have high potential.

The essence of this crowdfunding approach to supporting medical research is that it makes philanthropy more accessible to the public. Corporate and philanthropic giving are still definitely important, but Donors Cure expands the donor base by encouraging people to give smaller amounts.

In other words, it’s easier to get 1,000 people to give you a dollar each than it is to get one person to give you $1,000.

We’ve seen the model work for other sectors — why not apply it to research and finding cures?

There are other crowdfunding websites out there, but none of them is focused solely on medical research.

Donors Cure is the only crowdfunding site to have the credibility of established universities like the Medical University of South Carolina behind it.

Our primary challenge is to connect researchers with donors and the general public who don’t typically have scientific backgrounds. Writing a grant for NIH is very different from directly asking a donor for support. We need to make this approach compelling for someone without a science background. At the end of the day, everyone knows someone who is fighting a major disease, which is what connects each of us to the cause.

That’s why we developed the “Cure-ator” approach. Cure-ators are “on-campus” liaisons between researchers and potential donors, and they are responsible for managing projects and helping researchers communicate with the public. They also provide donors with periodic updates on the progress of the research they are funding so that donors are treated as partners in the scientific process. This open communication gives us a level of accountability that other crowdfunding sites don’t have.

Researchers will share messages like these with donors: • Thank you for your donation; we have recruited 15 additional participants for our trial. This means we can continue in the lab for another three months toward the path of another treatment option for prostate cancer.

• I’ve completed analyzing 80 of 100 samples for my experiment; I’m see-

ing a recurring pattern in the data, which means we are getting close to a deeper understanding of how yogic breathing alters body chemistry.

• I had a long day in the lab today, with not much to report at this time. Please continue to support me in the coming weeks, as I believe we are close to getting to the next phase in our research.

• And the all-aspiring: I have found a cure!

Donors Cure is currently promoting projects on various cancers, autism spectrum disorder, attention deficit hyperactivity disorder, global health initiatives, yogic breathing and a variety of other diseases and disorders. This list will only grow as the organization expands.

Donors Cure is launching a pilot program in Charleston during April. Given that each of our research projects taps into a different audience, our marketing approach focuses on a tiered plan for reaching the masses, with the hub of the conversation focusing on social media through our #CureIt and text-to-donate campaigns. Our website is up and running, and we are eligible to accept donations through www.donorscure.org.

Dr. Joseph Helpern is a professor and vice chairman for research in the Department of Radiology at MUSC and the co-founder of Donors Cure.

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