Charleston Regional Business Journal - May 18, 2015 by SC Biz News

May 18 - 31, 2015 • www.charlestonbusiness.com

Volume 21, No. 11 • $2.00

Charleston startups gain national attention Case pushes S.C. to cultivate startup environment

Dig South connects Southeast tech hubs to investors, ideas By Liz Segrist

By Liz Segrist

lsegrist@scbiznews.com

tanfield Gray went to the Ad Age Digital Conference in New York City in 2011 and was inspired by the innovators, startups and forward-thinking Web and digital companies that presented there. “I came back and couldn’t believe this didn’t exist in the Southeast, particularly in Charleston,” Gray said. See DIG SOUTH, Page 6

Gary Vaynerchuk of VaynerMedia talks marketing with Dig South attendees. (Photo/Adam Chandler)

harleston almost didn’t make the cut for Steve Case’s Rise of the Rest roadshow. Case, the co-founder of AOL and CEO of Washington, D.C.-based venture capital firm Revolution, is visiting budding tech hubs around the country to highlight entrepreneurs outside of the tech giants of

➤

See CASE, Page 8

➤

ECONOMIC

DRIVER

Valor in combat

National Medal of Honor Museum opening in 2018 at Patriots Point. Page 10

Workforce, $204 million in incentives bring Volvo to S.C.

$101M project

Bennett Hospitality building 185-room hotel on former library site. Page 9

By Liz Segrist

INSIDE

Upfront............................. 2 In Focus: Human Capital.............. 13 List: Employee Benefits Brokers........... 16 Executive Recruiting Firms............................. 18 At Work.......................... 19 People in the News......... 21 Business Digest.............. 22 Hot Properties................. 22 Viewpoint........................ 23

lsegrist@scbiznews.com

olvos will now be built in South Carolina. The Swedish automaker plans to build the company’s first U.S. manufacturing plant in Berkeley County, joining BMW and Mercedes-Benz Vans as S.C. automakers. In one of the largest economic development announcements ever made in the Lowcountry, Volvo Cars said it plans to invest $500 million in a facility at the Camp Hall Tract in Ridgeville and create 4,000 jobs there over the next decade.

Photo/Volvo

See VOLVO, Page 3

➤

Another round on Kiawah

The Wanamaker Trophy will once again be up for grabs at Kiawah Island’s Ocean Course. PGA officials announced earlier this month that the PGA Championship will return to the Kiawah Island Golf Resort in 2021. Page 5

Upfront:

Briefs, brights and business news

VOLVO: On the Record “In less than 100 days, we were able to accomplish what normally takes a year or more to accomplish.” — Berkeley County Supervisor Bill Peagler “Global businesses locate near great ports.” — S.C. Ports Authority CEO Jim Newsome “What I believe won Volvo Cars in South Carolina is our workforce because they saw the fact that this is the state where they build planes. We now have three car companies. We have five tire companies. ... If we build it, we build it well. ... That’s something you can’t just find anywhere.” — Gov. Nikki Haley

“The transformation of South Carolina into an advanced manufacturing state has just been an incredible change that continues at a remarkable pace.” — S.C. Commerce Secretary Bobby Hitt “Volvo Cars will do much more than make automobiles in Berkeley County. Volvo will raise the standard of life throughout the Lowcountry and throughout our state.” — Santee Cooper CEO Lonnie Carter “Volvo’s economic impact will help S.C. families for generations to come and ensures Charleston’s global competitiveness in advanced manufacturing.” — David Ginn, Charleston Regional Development Alliance president and CEO

Halls Management Group picks up Maverick Southern Kitchens restaurants Hall Management Group has purchased Maverick Southern Kitchens’ restaurant portfolio, which includes High Cotton Charleston, High Cotton Greenville, Slightly North of Broad and Old Village Post House. The four restaurants will operate under Hall Management Group, owned by Bill Hall, along with Halls Chophouse and Rita’s Seaside Grille at Folly Beach, Photo/Tyler Heffernan according to a news release. Charleston Cooks in Charleston, Columbia and Greenville will continue to be owned and operated by Maverick Southern Kitchens. Dick Elliott, founder of the Maverick brand, sold the restaurants for an undisclosed amount, and Hall said the acquisition was financed by Capital Bank. “Dick Elliott has been a respected and like-minded friend, and I am honored to carry on the legacy of his 25-year labor of love,” Hall said in a statement. The expanded group will keep Maverick Southern Kitchens Director of Operations David Marconi, Executive Chef Frank Lee and several general managers. “In the last 25 years, the restaurants of Charleston have risen to the top tier in the country, and I have been privileged to participate,” Elliott said in a statement. “I am overwhelmingly grateful to all our employees who have been indispensable in building the company’s success, and I am immensely thankful to the Charleston and Greenville communities for their years of loyal support.” Hall Management Group will continue the Maverick Collection customer loyalty rewards program through 2015. The program will not be available at Halls Chophouse, Rita’s Seaside Grille or the Charleston Cooks stores. - Ashley Heffernan

McConnell has ‘not had the time’ to empty Senate campaign account Nearly a year into the job as president of the College of Charleston, Glenn McConnell is still sitting on more than $150,000 in his former state Senate campaign account. McConnell, who was a state senator and lieutenant governor before taking the top spot at CofC, has $157,871 in unused contributions waiting to be disbursed, according to his quarterly S.C. State Ethics Commission filing. By law, McConnell must continue filing quarterly reports with the commission until he distributes the funds to a tax-exempt, 501(c)(3) organization or organizations. They can include churches, charities, college foundations, political parties and the state’s general fund. Last summer, McConnell donated his $260,000 lieutenant governor campaign funds to various organizations, including historical re-enactment and battleground preservation groups, animal charities and a senior services group. He also allocated $110,000 to the CofC Foundation and Photo/College of Charleston $5,000 each to the college’s Cougar Club and and alumni association. McConnell canceled a scheduled interview to discuss the remaining money, but emailed a statement regarding the funds. “To properly close the account, I must account for every penny, and the entire balance of the account must clear in that particular quarter,” McConnell wrote. “As you can imagine, this can be tricky and very time-consuming. I simply have not had the time to get this done; it is much easier to simply ‘refile’ with no changes. Perhaps sometime in the future, I will have an opportunity to get this done.” McConnell’s next quarterly report is required to be filed in July. - Ashley Heffernan

Fig chef takes home James Beard award Fig executive chef Jason Stanhope won the James Beard Foundation’s Best Chef in the Southeast title during an awards gala May 4 in Chicago. Stanhope thanked Mike Lata and Adam Nemirow, who started Fig 12 years ago. “They have empowered me to adopt their philosophies about technical cuisine, unpretentious service. They’ve empowered me to hire people that are better than I am, and they’ve armed with the tools to lead them,” he said. James Beard Foundation President Susan Ungaro kicked the event off by remembering the first James Beard awards gala, which was held 25 years ago in New York. In that ceremony, Wolfgang Puck won the Outstanding Chef award and Emeril Lagasse earned the Best Chef in the Southeast Jason Stanhope, executive title, according to Ungaro, who said the gala is chef at Fig, poses with his known as the Oscars of the food world. James Beard Foundation The final award given in the 2015 gala medal for Best Chef in the was for Outstanding Chef, which finalist Southeast. (Photo/Galdones Sean Brock — chef and partner for Husk Photography LLC) and McCrady’s restaurants in Charleston — ultimately lost for the third consecutive year. Michael Anthony of Gramercy Tavern in New York won the coveted medal. Brock did, however, win top honors for his bestselling book, Heritage, in an awards ceremony held late last month. Nathalie Dupree, who is a cookbook author, television personality and founding chairwoman of the Charleston Food and Wine Festival, was also inducted into the foundation’s Who’s Who of Food & Beverage in America. - Ashley Heffernan

May 18 - 31, 2015

www.charlestonbusiness.com 3

S.C. Commerce Secretary Bobby Hitt said the department will seek funding for Volvo from the Joint Bond Review Committee, the S.C. Budget and Control Board and the Coordinating Council for Economic Development. (Photo/Chris Cox) VOLVO, continued from Page 1

➤

The Volvo facility is another huge win for the Lowcountry’s growing automotive and advanced manufacturing sector. Volvo is the second European company to announce an automotive facility in the region in just over two months. Mercedes-Benz will build a $500 million van manufacturing plant in North Charleston, bringing the total auto-sector investment to $1 billion this year for the Charleston area. “The transformation of South Carolina into an advanced manufacturing state has just been an incredible change that continues at a remarkable pace,” S.C. Commerce Secretary Bobby Hitt said during a news conference at the Governor’s Mansion in Columbia. Talks began with Volvo in July, and Berkeley County officials received their first call about the project in early February. At least five other states, including Georgia and North Carolina, were among the finalists for the plant. The announcement was a culmination of collaboration among state agencies, Commerce officials and recruiting efforts, according to Gov. Nikki Haley and Hitt. They traveled to Europe and New York to meet with Volvo officials, who in turn met with South Carolina companies, including Boeing, to vet operations and workforce capabilities. Incentives also played a big role. South Carolina lured the company with a $204 million incentives package. Among the incentives, an estimated

$120 million will come from state economic development bonds, if approved. About $30 million is expected to come from state Commerce Department grants, and Santee Cooper will provide an additional $54 million. Hitt said the state Commerce Department plans to seek funding in the coming weeks from the Joint Bond Review Committee, the state Budget and Control Board and the Coordinating Council for Economic Development. Most of the funding will be used for public infrastructure, including a new highway interchange and roadways to the industrial park “that right now has no infrastructure whatsoever,” Hitt said. On-site rail is a possibility for the site, though few details on that were available. “Rail is an essential part of the longterm development of the site. ... A strategy is in the works,” Commerce spokeswoman Allison Skipper said. Santee Cooper’s board of directors unanimously approved the purchase of the 6,800-acre Camp Hall Tract a day before Volvo officially announced its plans on May 11. About 2,880 acres of the 6,800-acre site will be used by Volvo. The remaining land will be used for future industrial projects, Volvo suppliers or future Volvo expansions. “We will build an industrial town along Interstate 26 and populate it with 4,000 people over time,” Hitt said of Volvo’s presence in the industrial park. See VOLVO, Page 4

Gov. Nikki Haley, Commerce Secretary Bobby Hitt and state officials celebrated the call from Volvo confirming ld that the automaker will bui nty Cou its plant in Berkeley and employ 4,000 workers over the next decade. (Photo/Zach Pippin)

➤

www.charlestonbusiness.com

May 18 - 31, 2015

LOWCOUNTRY NEWSROOM Managing Editor - Andy Owens aowens@scbiznews.com • 843.849.3142 Senior Copy Editor - Beverly Barfield bbarfield@scbiznews.com • 843.849.3115 Staff Writer - Liz Segrist lsegrist@scbiznews.com • 843.849.3119 Staff Writer - Ashley Heffernan aheffernan@scbiznews.com • 843.849.3144 Editorial Assistant - Steve McDaniel smcdaniel@scbiznews.com • 843.843.3123 Research Specialist - Melissa Verzaal mverzaal@scbiznews.com • 843.849.3104

Graphic/Ryan Wilcox

➤

Associate Editor, Special Projects - Jenny Peterson jpeterson@scbiznews.com • 843.849.3145

VOLVO, continued from Page 1

Senior Graphic Designer - Jane Mattingly jmattingly@scbiznews.com • 843.849.3118

Volvo Cars will be the anchor tenant of the industrial park. Santee Cooper, Edisto Electric Cooperative, Berkeley Electric Cooperative, the S.C. Power Team and Lake Marion Water Agency will provide water, sewer and electricity to the Camp Hall Tract. Berkeley County will eventually own the Volvo site, according to Santee Cooper spokeswoman Mollie Gore. The Berkeley County factory will make the latest-generation Volvo models for sale in the United States and for export to global markets through the Port of Charleston. The S.C. State Ports Authority will work with the company to develop a supply chain at the port, according to CEO Jim Newsome. The company will employ up to 2,000 people initially and up to 4,000 people by 2025, the company estimates. Details on the types of jobs and wages were not yet available. ReadySC, a division of the S.C. Technical College System, is assisting with recruitment and training for positions at the new plant. “There were no auto workers when we announced BMW. There are 9,000 at that plant now. There were no aerospace workers when we announced Vought, which later became Boeing. There are now 8,000 there,” Hitt said. “Basically we have a system that has the ability to act and react and develop a workforce that a company needs, and that’s what we’ll do in this case as well.” Construction of the Volvo plant will begin in early fall, with the first vehicles expected to roll off the assembly line in

Graphic Designer - Andrew Sprague asprague@scbiznews.com • 843.849.3128 Assistant Graphic Designer - Emily Matesi ematesi@scbiznews.com • 843.849.3124 MIDLANDS NEWSROOM Editor - Chuck Crumbo ccrumbo@scbiznews.com • 803.726.7542 Staff Writer - Chris Cox ccox@scbiznews.com • 803.726.7545 Special Projects Editor - Licia Jackson ljackson@scbiznews.com • 803.726.7546 Research Specialist - Patrice Mack pmack@scbiznews.com • 803.726.7544 UPSTATE NEWSROOM News Editor - Don Fujiwara dfujiwara@scbiznews.com • 864.235.5677, ext. 106 Staff Writer - Bill Poovey bpoovey@scbiznews.com • 864.235.5677, ext. 104 Graphic Designer - Jean Piot jpiot@scbiznews.com • 864.235.5677, ext. 105 LOWCOUNTRY ACCOUNT EXECUTIVES Senior Account Executive - Sue Gordon sgordon@scbiznews.com • 843.849.3111 Senior Account Executive - Robert Reilly rreilly@scbiznews.com • 843.849.3107 Account Executive - Sara Cox scox@scbiznews.com • 843.849.3109 Account Executive - Bennett Parks bparks@scbiznews.com • 843.849.3126

South Carolina’s Media Engine for Economic Growth President and Group Publisher - Grady Johnson gjohnson@scbiznews.com • 843.849.3103 Vice President of Sales - Steve Fields sfields@scbiznews.com • 843.849.3110 Creative Director - Ryan Wilcox rwilcox@scbiznews.com • 843.849.3117

Audience Development & IT Manager - Kim McManus kmcmanus@scbiznews.com • 843.849.3116 Event Planner - Jacquelyn Fehler jfehler@scbiznews.com • 864.235.5677, ext. 113 Accounting Manager - Vickie Deadmon vdeadmon@scbiznews.com • 864.235.5677, ext. 100 CUSTOM MEDIA DIVISION Director of Business Development - Mark Wright mwright@scbiznews.com • 843.849.3143 Account Executive - Mariana Hall mhall@scbiznews.com • 843.849.3105

cr bj

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

Site plans Phase 1 includes construction of manufacturing and production space, plus administrative offices and a visitor’s center on about 575 acres, according to an application filed last month with the U.S. Army Corps of Engineers, Charleston District. Phase 1 would employ about 2,000 workers. Phase 2 calls for construction of a second manufacturing, assembly and production space on 322 acres. Phase 2 would employ an additional 2,000 workers at full capacity. As a mitigation plan for possible environmental impacts to surrounding wetlands and waters, the applicant proposes that the company should preserve or restore about 1,500 acres of wetlands within 2,500 acres of property. That land would be permanently protected in the Dean Swamp and Walnut Branch watersheds and Four Hole Swamp tributaries, which the National Audubon Society defined as priority areas in need of protection.

Volvo plans to produce 100,000 cars a year from its Berkeley County plant. (Photo/Volvo)

SUBSCRIPTION INFORMATION

Director of Audience Development - Rick Jenkins rjenkins@scbiznews.com • 864.235.5677, ext. 112 Event Manager - Kathy Allen kallen@scbiznews.com • 843.849.3113

2018. The plant will have the initial capacity to produce up to 100,000 cars per year. Volvo Cars, owned by Chinese automaker Zhejiang Geely Holding Group Co., plans to use this plant to transition from an automotive importer to a domestic manufacturer. Volvo began importing cars to the United States in 1955. The U.S. plant is part of the company’s plan to increase U.S. sales, which have been lagging in recent years. Volvo sold 56,000 cars in the U.S. last year, compared with more than 120,000 in 2004. Volvo said that Berkeley County was chosen for its proximity to the Port of Charleston and other infrastructure, a well-trained labor force, experience in advanced manufacturing and attractive incentives. “What I believe won Volvo Cars in South Carolina is our workforce. ... If we build it, we build it well. ... That’s something you can’t just find anywhere,” Haley said.

Charleston Regional Business Journal (USPS 0018-822) is published biweekly, 27 times per year, including one special issue in January, by SC Biz News. P.O. Box 446, Charleston, SC 29402. Periodicals postage paid at Charleston, SC. Mailing address: 1439 Stuart Engals Blvd., Suite 200 Mount Pleasant, SC 29464. Postmaster: Send address changes to: Charleston Regional Business Journal, P.O. Box 446, Charleston, SC 29402

Annual subscribers receive 27 issues of the Business Journal including The Book of Lists and Newsmakers, plus four special supplements: Profiles in Business, Event Planning Guide, Market Facts, and Giving. One year (26 issues) for $49.95; two years (52 issues) for $84.95; three years (78 issues) for $ 119.95. Subscribe, renew, change your address or pay your invoice by credit card online at www.charlestonbusiness.com or call 843-849-3116.

SC Business Publications LLC A portfolio company of Virginia Capital Partners LLC Frederick L. Russell Jr., Chairman

The entire contents of this newspaper are copyright by SC Business Publications LLC with all rights reserved. Any reproduction or use of the content within this publication without permission is prohibited. SCBIZ and South Carolina’s Media Engine for Economic Growth are registered in the U.S. Patent and Trademark Office.

May 18 - 31, 2015

www.charlestonbusiness.com 5

PGA Championship to play another round at Kiawah By Ashley Heffernan

estimated at $193 million, according to a study by the College of Charleston School of Business and PGA of America data. “We expect to build on that success in 2021, with the only all-professional major that features the strongest field in golf,” Sprague said. “It promises to be another milestone in the endearing history of this great championship.” The seven-day event in 2012 was estimated to have attracted more than 50,000 out-of-town visitors who spent about $92 million, the study found. PGA of America estimated that the influx of visitors to local businesses produced $26 million in labor income and supported 832 jobs. The tournament was estimated to generate more than $75 million in media exposure during 154 hours of TV coverage watched in 580 million households, according to PGA of America.

aheffernan@scbiznews.com

ine years after its first visit, the PGA Championship will return to Kiawah Island Golf Resort. The 103rd edition of the PGA Championship will be held August 2021 at the Ocean Course, PGA of America President Derek Sprague said during a news conference on May 1. “It will mark 30 years since the world was introduced to this Pete Dyedesigned masterpiece. I was just a young golf professional at the time, and I was glued to the TV, watching the 1991 Ryder Cup. It’s one of those great American golf memories,” Sprague said. “Major championships are contested on the best golf courses around the world, many of which are located in remote areas that often help to define both their beauty and their distinction. The Ocean Course is no different. It’s one of the finest golf destinations anywhere.” Rory McIlroy won the Wanamaker Trophy in 2012 at The Ocean Course, which is one of four venues to host each of the PGA of America major championships: the Ryder Cup in 1991, the Senior PGA Championship in 2007 and the PGA Championship in 2012, according to Sprague. The course also hosted the 2005 PGA Professional National Championship. The par-72 course has 10 seaside holes, the most of any course in North America, and can be extended to 7,676 yards. Kerry Haigh, chief championships officer for PGA of America, said the course is a fair and honest test for golfers. “When the wind blows, as any of you who’ve played here know, this golf course is as tough a golf course as you can find,” he said. “Some players aren’t happy when you don’t score as well as you want to. But, boy, what a great test of golf it is.”

Kerry Haigh (from left), chief championships officer for PGA of America; golf course architect Pete Dye; Bill Goodwin, chairman of Kiawah Island Golf Resort; PGA of America President Derek Sprague; Roger Warren, president of Kiawah Island Golf Resort; and Gov. Nikki Haley announce the site of the 2021 PGA Championship at Kiawah Island Golf Resort’s Ocean Course. (Photos/Ashley Heffernan)

Future sites of the PGA Championship 97th PGA Championship Whistling Straits – Straits Course, Kohler, Wisconsin Aug. 10-16, 2015

101st PGA Championship Bethpage Black – Bethpage State Park, Farmingdale, N.Y. August 2019

98th PGA Championship Baltusrol Golf Club – Lower Course, Springfield, N.J. August 2016

102nd PGA Championship TPC Harding Park, San Francisco August 2020

99th PGA Championship Quail Hollow Club, Charlotte August 2017 100th PGA Championship Bellerive Country Club, St. Louis, Missouri August 2018

Gov. Nikki Haley said she might not still be in office in 2021, but she expects to attend the PGA Championship regardless. “We have always enjoyed our partnership with the PGA, and I’ll tell you that what makes this announcement so special is we’re still floating from 2012,” Haley said. “South Carolina got $75 million worth of advertising just through

103rd PGA Championship Kiawah Island – Ocean Course, Kiawah Island August 2021 104th PGA Championship Trump National Golf Club, Bedminster, N.J. August 2022

Source: PGA

that tournament alone, and you look at that and you realize, South Carolinians, we love our golf. We really do. Whether it is to close a deal, whether it’s to establish a relationship or whether it’s for fun, that is what we do in South Carolina.”

Fixing issues

Roger Warren, president of the Kiawah Island Golf Resort, said he expects many of the 3,500 volunteers who came to the 2012 tournament to come back in 2021 to help the 1,500-member staff. “We had a great experience in 2012, and we think our fans did too. But we have to acknowledge that we had some problems,” Warren said. “We had problems with traffic, getting people here consistently and at a rate of time that everybody was comfortable with. We had a problem on Saturday with the rain storm, and we had difficulty getting people out of the parking lot. That didn’t meet our standards.” Warren added that the entrances and exits to the course will be reengineered at the next event. “We need a better plan, and we’re going to have a better plan,” Warren said. cr bj

Bringing in the money

The 2012 PGA Championship’s economic impact on South Carolina was

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

www.charlestonbusiness.com

DIG SOUTH, continued from Page 1

May 18 - 31, 2015

➤

Gray set out to showcase the Southeast as a hotbed for technology and innovation with a new kind of conference in Charleston. In early 2012, he began reaching out to Charleston-based tech companies, economic development agencies and accelerators, as well as friends in other cities, to gauge support and recruit presenters. At the same time, his doctor found a lump in his neck, which turned out to be benign. “It inspired me to take a chance, take a risk. It was something I was really passionate about. I believed it would fly,” Gray said. “I felt there was no better time than right now.” He put together a four-person team, including his wife, Sunny, and launched the Dig South Conference in 2013 with the goal of linking investors to the Southeast and showing the country that creative startups can launch, grow and succeed in the region. “We are building a reputation for the Southeast as a place to launch a product, service or platform, raise capital, find clients and recruit talent,” Gray said. The 2015 Dig Conference had 1,470 registered attendees, up from around 450 registered attendees in 2013. These figures exclude several thousand people that attend free Dig events, such as the

Gary Vaynerchuk of VaynerMedia said companies should invest time and money into sharing content on the most popular technologies of the day, like Instagram and Twitter. (Photo/Adam Chandler)

spacewalk, a tour of local tech firms, and nightly concerts. Dig South features local food and drinks and musicians from around the country to make it feel more like South by Southwest and less like a typical business conference. “This year we had a lot of success with venture capital firms getting involved,” Gray said. “The biggest goal for us going forward is to continue helping these startups and leading brands tell their stories and connect with the audience they are looking for.”

Vaynerchuk: ‘Action has never been more valuable’

“Are you marketing like the year you actually live in?” Gary Vaynerchuk of VaynerMedia asked that question to hundreds of Dig South attendees. The founder of e-commerce site WineLibrary.com said companies are wasting their time and money on executions that worked years ago, rather than using the most popular technologies of today. Companies spend billions of dollars on billboards while everyone is busy staring

at their phones. Many companies are just beginning to create a Twitter strategy. A year ago, firms were deciding whether to use Instagram — the photo app already had more than 100 million users — rather than embracing the medium, he said. “So we sit in these rooms debating and don’t recognize that things are happening so much quicker,” Vaynerchuk said. “Speed has never been more valuable than it is today. Action has never been more valuable, because the market shifts.” Vaynerchuk said startups should invest in technologies that are either gaining traction in the marketplace or booming at that time — like the Instagrams, Twitters and Snapchats of today — and push content from there that will educate and bring value to consumers. “This Internet thing is not going away. ... There’s no going back. This is the world we live in now, and it’s going faster,” Vaynerchuk said. “If you’re not willing to run as fast as the market, it will crush you.”

How to crowdfund your startup

Zack Brown decided to raise money through a crowdfunding campaign on Kickstarter for a bowl of potato salad. It began as a joke for 3,300 people “to get a bite.” People did not get a product. Brown was not launching a business. It was just that — a single bowl of potato

May 18 - 31, 2015

salad. Within a month, he had been interviewed on Good Morning America and raised $55,000 from nearly 7,000 backers. “Whether it’s a joke campaign or something big, people want to be a part of something. It’s human nature,” Brown said. “People want to be a part of something that’s bigger than themselves.” Brown donated most of the profits to the Columbus Foundation, a nonprofit that works to end hunger and homelessness in his hometown of Columbus, Ohio. “One of the key elements to Zack’s success was that it was new and fresh and funny. There was an emotional draw to the campaign,” said Rob Sebastian, executive advisor to Tilt.com, who has managed 30 crowdfunding campaigns in the past two years. Sebastian advises entrepreneurs to use crowdfunding sites, like Kickstarter or Indiegogo, to reach customers, test products and raise money if they do not yet have a large customer base or an avenue to reach consumers. He said crowdfunding could eventually be used by companies to test consumer demand for new products, forgoing focus groups and research and development departments. “Instead, go to consumers and say ‘Do you want this? Yes or no,’ ” Sebastian said. Brown advised ending a campaign if 30% of the goal is not reached in the first

www.charlestonbusiness.com 7

Founder Stanfield Gray wants startups to make connections at Dig South. (Photo/Adam Chandler)

three days, though others have had luck in the remaining hours of campaigns. Sebastian said lack of preparation and storytelling causes crowdfunding campaigns to fail. “One of the keys to success is the ability to create an emotion and a sense of urgency,” Sebastian said. “Figure out how to create a video or some kind of content that’s just not boring. ...You have to entertain people.”

Bidr wins Rise of Rest, Dig South pitch contests

Bidr won its second pitch competition in less than a week — this time reeling in $100,000 from AOL co-founder Steve Case during the Rise of the Rest tour in

Charleston. Eight startups pitched to six judges and hundreds of attendees at the pitch event on board the USS Yorktown. A week prior, Bidr also won first place and $10,200 at the Dig South Wild Pitch event. The Bidr platform helps nonprofits, schools and companies grow their fundraising event revenues by taking the process from paper to text messaging. Attendees can register for events, bid on silent auction items, participate in raffles and pay for items using their smartphones. Bidr says it increases auction revenues by 47% on average. “Fundraising events aren’t making enough money. We are changing that,” Bidr founder Sam Staley said. Bidr graduated last year from a 12-week business accelerator program run by The Harbor Entrepreneur Center. The four-person company plans to use the money to improve its platform, ramp up marketing and hire more programmers. “We make money by helping nonprofits make more money,” Bidr marketing chief Mindy Taylor said. “In less than a year, while building our product to market, we helped 40 events raise more money.” cr bj

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

Overheard at DIG South “If you’re not willing to run as fast as the market, it will crush you.” Gary Vaynerchuk, VaynerMedia

“Do not validate the merits of your business on capital. Be scrappy. Solve problems. Get creative.” Dayna Grayson, partner with venture capital firm New Enterprise Associates

“Execute like a madman. The money will find you.” Derek Willis, senior program manager, SCRA Technology Ventures

“Women want wearable tech but no one is listening to them or trying to court them.” Malarie Gokey, DigitalTrends.com staff writer

“You can have lots of shiny buildings, but a community is what makes coworking spaces and tech hubs work.” Derrick Minor, innovation and entrepreneurship manager with the city of Raleigh

www.charlestonbusiness.com

May 18 - 31, 2015 Steve Case (from left) chats with The New Primal CEO Jason Burke during his visit with Levelwing CEO Steve Parker Jr. at the Levelwing office in Mount Pleasant. Case also stopped by The Harbor Entrepreneur Center, PeopleMatter and Rewined Candles during his Rise of the Rest stop in Charleston. (Photo/Liz Segrist)

the incumbents; it’s trying to help nourish the next generation of companies. Silicon Valley, New York City and Boston. The attackers. The disruptors. The entre“Last year, 75% of venture capital went preneurs. ... I do think states should have to three states: California, New York more of a focus on the role startups play,” and Massachusetts. ... Yet there are great Case said. entrepreneurs in a lot of sectors of the Legislation can help create a frameeconomy building great companies all work for startups to thrive. Case pointed over the country,” Case said. to crowdfunding laws in Virginia that Harbor Entrepreneur Center help level the playing field for entrepreco-founder John Osborne pitched neurs in regions with fewer investors. Charleston as a stop for the Rise of the He said South Carolina should create Rest’s Southeastern tour, which also an innovation plan to help recruit comstopped in Atlanta, New Orleans, Rich- panies, talent and investors. mond, Va., Raleigh and Durham, N.C. Haley said the state is currently conCase said the Revolution team was ini- sidering tax incentives to lure tech comtially unsure about Charleston. panies to either start in or expand to “The momentum is building, but there South Carolina. The state has had much is still work to be done,” he said during success growing its manufacturing base his May 6 stop in the through such incenLowcountry. “But tives, recently with we decided to put it “If you give up too quickly, Mercedes-Benz and on the tour because Volvo, though some we want to be a catyou miss opportunities to argue that incentives alyst to pushing it often benefit compaup to the next level. nies more than resichange the world.” It’s clear there have dents. been some successes The S.C. ComSteve Case co-founder of AOL and in companies here merce Department CEO of Revolution — we met some this launched an Innovamorning — but we tion Office in 2013 to want to see more of grow tech and entrethem.” preneurial businesses. It has since awardCase’s bus rolled into town to visit ed $2.6 million to S.C. organizations, startups, meet with leaders and invest including $250,000 grants to the Charles$100,000 in the winner of a pitch com- ton Digital Corridor Foundation and The petition. Bidr, a silent auction platform, Harbor Entrepreneur Center this year. took home that prize. Case said the region needs more accelCase visited The Harbor Entrepreneur erators, mentorship and capital. CompaCenter, PeopleMatter, Rewined Candles nies going public or getting acquired will and Levelwing. Before hundreds of peo- also help attract more investors. ple aboard the USS Yorktown, Case talkCase said Charleston’s quality of life ed with Gov. Nikki Haley about ways to sells its self, but to recruit more talent creating a thriving startup environment. faster, the region needs to do a better job As an adviser to President Obama on of telling its story of how entrepreneurs jobs and innovation, Case sees startups can successfully grow companies here. as a path toward economic growth and “How do you create that sense of posjob creation. The Kauffman Foundation sibility and opportunity that will attract found that new businesses — those less more of those people, which will end up than 5 years old — account for nearly all creating more jobs, which will end up net new job creation and almost 20% of creating more economic growth, which gross job creation in the United States. will generate more tax revenue, which Case said too many states put most of will pay for more services, infrastructure their economic development efforts on and education?” Case asked. recruiting large manufacturers and reloReach staff writer Liz Segrist at 843-849cating jobs across state lines. “But the real action is not trying to lure 3119 or @lizsegrist on Twitter.

CASE, continued from Page 1

➤

cr bj

May 18 - 31, 2015

www.charlestonbusiness.com 9

CHS secures first nonstop, coast-to-coast flight By Liz Segrist

The proposed hotel near Marion Square will include 185 guest rooms. (Photo/Ashley Heffernan)

Bennett Hospitality building $101M hotel on former library site By Ashley Heffernan

aheffernan@scbiznews.com

wenty-one years after Michael Bennett purchased the parcel at the corner of King and Hutson streets beside Marion Square, and more than a decade after plans for it got underway, Bennett is finally preparing to build a hotel on the downtown Charleston lot. Charleston-based real estate company Bennett Hospitality held a groundbreaking in late April for the $101 million hotel, which will have 185 guest rooms, a lobby lounge and bar, a spa, fitness facilities, meeting space and a rooftop pool, bar and ballroom. The hotel, which has yet to be named, will also include a bar with reclaimed pink marble from the library building that was once on the site and a bilevel restaurant overlooking Marion Square. Bennett, who is the founder and owner of the company, said he began working on the hotel 12 years ago. He spent 10 of those years navigating the courts. “Never did I imagine 21 years ago that it was going to take 10 years to get it approved,” he said. The hotel is expected to be completed in August 2017 and to create about 350 jobs. In total, the hotel will span about 200,000 square feet and will stand eight stories tall with an underground parking garage for guests, according to the company. Bennett said his goal with the hotel is to build “the finest privately built building” during Mayor Joe Riley’s nearly 40 years in office. “Mayor Riley, back then, and it stuck with me, he would always say, ‘Take the hundred-year view. Take the hundred-year view.’ What does that mean? Well, if you want it here in 100 years, build it,” Bennett said. “I drank that Kool-Aid. I drank it 35 years ago, and I’m still drinking it today. I believed it then, and I believe it now. That hundred-year view is a powerful way to think about how to develop in a community like Charleston.” cr bj

Reach staff writer Ashley Heffernan at 843849-3144 or @AshleyBHeff on Twitter.

lsegrist@scbiznews.com

laska Airlines’ new nonstop service will link Seattle and Charleston beginning Nov. 16. The flight between Seattle-Tacoma International Airport and Charleston International Airport is the Charleston airport’s first West Coast connection, according to Sen. Paul Campbell Jr., Charleston County Aviation Authority’s airports director. “With this new service to Seattle on

Alaska Airlines, the door is open to expand passenger service and explore other West Coast destinations,” he said. The Seattle-based airline will fly to Charleston, departing at 8:30 a.m. and arriving at 4:50 p.m., every Monday, Wednesday, Friday and Sunday. The airline will fly to Seattle, departing at 5:50 p.m. and arriving at 9:10 p.m., on the same days. The flight, which will be aboard a Boeing Next-Generation 737 aircraft, will help Boeing employees traveling between the North Charleston and Everett, Wash.,

787 Dreamliner facilities. Outbound flights from Charleston will offer Pacific Northwest-inspired food and beverages; inbound flights to Charleston will offer Southern-inspired food with the airline’s biscuits and gravy breakfast option, the airline said. Alaska Airlines also added nonstop service from Seattle to Nashville, Tenn., and Raleigh-Durham beginning Sept. 23 and Oct. 1, respectively. cr bj

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

www.charlestonbusiness.com

May 18 - 31, 2015

The proposed National Medal of Honor Museum will be built adjacent to the current Patriots Point parking lot near the USS Yorktown. The 107,000-square-foot facility will include three buildings. (Rendering/Safdie Architects for the National Medal of Honor Museum)

National Medal of Honor Museum plans progressing By Ashley Heffernan aheffernan@scbiznews.com

nearly $100 million National Medal of Honor Museum is expected to open in 2018 at Patriots Point in Mount Pleasant. The proposed 107,000-square-foot facility, which would be built in the wooded area adjacent to the current Patriots Point parking lot, will include three buildings, according to Carrie Yoon, a designer with Boston-based Safdie Architects. She presented the plans to the Patriots Point Development Authority board on behalf of architect Moshe Safdie. “One approach was to design a building that fit within the context, something more natural, weaving into the landscape,” Yoon said. “The other approach is to build a building that’s more monumental and maybe more symbolic in its form that would recognize the program of the Medal of Honor Museum. Ultimately, I think what he has designed for this building is a combination of both.” The museum’s entrance and lobby will be housed in a grass-topped land pavilion along with a 240-seat auditorium, a museum shop, curatorial and archival space, and administrative offices. About 560 parking spots are also expected to be built, some of which will be underground. The museum, which will be connected to the pavilion by a two-level pedestrian bridge, will include a 5,000-square-foot Hall of Valor that can be used for public and private events. There also will be a small cafe, eight permanent and two special-exhibit galleries, along with 20,000 square feet of conference, meeting and classroom space. Five galleries will form the museum’s pentagonal structure.

The concrete and glass structure, tinted gray-blue to match the nearby Yorktown aircraft carrier, will be built on pylons so the museum will sit level with the carrier at about 128 feet above ground, according to Yoon. Another bridge will connect the museum to a 140-seat chapel that will overlook the harbor. “Recipients wear the Medal of Honor for every man and woman who has served in America’s armed forces, many of whom never came home from the battlefield,” Medal of Honor recipient Patrick H. Brady said in a statement. “Our interest is not in a monument to ourselves, but rather a learning center that focuses on sending important messages to our youth about patriotism, leadership and courage.” Bob Wilburn, president and CEO of the museum foundation, said construction will likely start in the first quarter of 2016 as long as the project is approved by the town of Mount Pleasant. All three buildings are expected to open in the first quarter of 2018. The museum is projected to cost about $50 million to build. An additional $10 million will be spent on site development, $6 million on parking, $20 million on exhibit design and fabrication, $6 million on fundraising and administrative costs and $6 million for contingency purposes, bringing the project’s preliminary budget to $98 million. Wilburn said those estimates will likely change as the project progresses. So far, the foundation has raised about $14 million for the museum from individuals and foundations across the country, according to Wilburn, with most donors coming from California, New York, Chicago and Texas. The S.C. Legislature

May 18 - 31, 2015

www.charlestonbusiness.com 11

Left: The design concept for the museum gallery focuses on World War I and II and the courage of American soldiers. (Rendering/Gallagher & Associates for the National Medal of Honor Museum) Below: The Medal of Honor star will be seen in the floor of the Hall of Valor and in the museum ceiling. (Rendering/Safdie Architects for the National Medal of Honor Museum)

Medal of Honor facts

• Awarded for valor in combat • Only military medal worn around the neck • 3,510 Medals of Honor presented to 3,490 servicemen and one servicewoman (19 men received two medals) • First medals were presented in 1863 to six Union Army volunteers • 646 medals have been presented posthumously • 79 living medal recipients, as of March 14 Source: National Medal of Honor Museum Foundation

also agreed last year to contribute $1 million toward the museum, and lawmakers are debating another allocation this year. In addition to Safdie Architects working as the architect on the project, Marylandbased Gallagher & Associates was hired for museum planning and design. Greenvillebased McMillan Pazdan Smith Architecture, which has offices in Charleston, is supporting Safdie on the project. The facilities are designed to meet the silver level of Leadership in Energy and Environmental Design certification, which is determined by the U.S. Green Building Council.

Impact on Patriots Point

When the National Medal of Honor Museum opens at Patriots Point, the smaller Medal of Honor Museum onboard the Yorktown will likely become a space for visiting exhibits, according to Patriots Point Executive Director Mac Burdette. “They would put in brand-new exhibits that would certainly be similar to what’s there but bigger, better, more expansive, more glitzy, more Disney, everything,” Burdette said. “That museum cost about a million bucks, the one we have right now. This (new) museum, the internal workings and all the things that will be going in there, will probably be worth $30 million, and that doesn’t count the building.” Burdette said visiting exhibits — a Titanic exhibit, for example — and rotating exhibits are what his team is envisioning for the vacated space. The Patriots Point Development Authority is the National Medal of Honor Museum’s landlord, leasing land to the museum for $1 per year for 99 years. Because the museum and Patriots Point are separate organizations, visitors might be required to buy separate tickets to enter

each attraction. “They are their own entity. But we are certainly going to look for partnerships with them,” Burdette said. “I can’t say there wouldn’t be some joint ticket prices, there could be. But we are way, way away from talking about those kinds of things.” In January, an engineering company determined the Yorktown needs about $40.5 million worth of repairs. The development authority expects to pay for maintenance and restoration of the Yorktown and the USS Laffey destroyer by leasing property and growing the area as a tourist destination over the next century. Charleston-based real estate company Bennett Hospitality is leasing property at Patriots Point and planning to build $300 million worth of hotels, office space, restaurants and retail, and the development authority still has about 55 aces available for development. “We should be able to generate close to $400 million over the next 100 years just from leases,” Burdette said. “That’s more than enough money to do what we have to do with the ships and the property and the pier and that sort of thing.” He said about 1 million people visit the Patriots Point peninsula each year, including bridge walkers and visitors of the College of Charleston athletic fields, the Patriots Point museum, golf course and other amenities. “That’s a big deal. People mean money and investment,” Burdette said. “We think that number will be closer to 1.5 million and then 1.6 million once we have the museum, what we’re doing and what (Bennett Hospitality owner) Mike Bennett might do.” cr bj

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

www.charlestonbusiness.com

May 18 - 31, 2015

In Focus:

Human Capital

LIST Employee Benefits Brokers, Page 16 BONUS LIST Executive Recruiting Firms, Page 18

Employment gains and losses by sector

The latest employment reports for February show which sectors saw the highest job growth and most losses across the state by looking at the largest metro areas compared with the same month a year ago. Hospitality and tourism led in all three metro areas for February.

Largest gains Charleston Sector % increase Hospitality/Tourism +8.4 Professional services +6.3 Information +6.0 Joe McGrew teaches classes to Turning Leaf participants about improving relationships with their families and developing problem-solving skills to help them shift their way of thinking. (Photo/Ryan Wilcox)

A different path to a second chance By Liz Segrist

lsegrist@scbiznews.com

elling drugs was just a way of life for Kelvin Dayse. Growing up in the Gadsden Green housing project in downtown Charleston, Dayse said he was taught to think with a pack mentality and to do whatever was needed to make money. He said he was charged with tax evasion and money laundering from his time selling drugs. He spent more than two years in jail waiting to be sentenced before he met Amy Barch. Barch, the founder and director of Charleston-based Turning Leaf, is tackling recidivism with a new type of immersion program for former inmates. Most re-entry initiatives provide job training, food stamps, housing options or Barch financial assistance to help integrate former inmates back into society. Barch said none of those factors really matter, however, if the person does not change his way of thinking or care whether she hurts someone. “People think if someone has a house when they get out that they won’t commit

a crime again. That’s not true,” Barch said. “The biggest risk factors that lead people to commit a crime are their way of thinking, personality, beliefs, values, criminal peers and dysfunctional families.” Turning Leaf participants work part time at jobs with the city of Charleston and attend classes 16 hours a week at the program’s center, located in a two-story

“If you want to help people change their behavior, you just have to help them change their thinking.” Amy Barch founder and director, Turning Leaf

warehouse at 2718 Azalea Drive in North Charleston. Classes focus on the importance of family, cognitive therapy, crime impact, financial planning and critical thinking skills to help participants understand how their crimes hurt people and how they can shift their behaviors to create a new way of life. “If you want to help people change their behavior, you just have to help them change their thinking,” Barch said. “You

have to help them develop problemsolving, social and decision-making skills, as well as a sense of accountability.” The program accepts only men who are pre-sentenced — those who have committed crimes in the past and are waiting in jail to go to court. The program does not accept anyone with sex-related charges. Most participants have drug, robbery or assault charges. Barch focuses on those at high risk for recidivism. Dayse, a current program participant, attends class at the center a few times a week and works part time for the city doing maintenance and road work, in lieu of serving time in federal prison. Charleston Police Chief Greg Mullen and Charleston Mayor Joe Riley partnered with Barch to provide jobs and the city provided $65,000 to the program. Dayse said the program has helped him change the way he thinks. He said he considers other people now before acting, and he cares about work for the first time in his life. The position with the city is Dayse’s first job; he is 29 years old. “Growing up in the community I was in, I was always thinking as a pack. Now I’m thinking for myself,” Dayse said. “I don’t have to look over my shoulder anymore. I don’t have to worry about anyone running up on me or in my mama’s See TURNING LEAF, Page 15

➤

Columbia Sector % increase Hospitality/Tourism +9.3 Manufacturing +7.3 Professional services +4.5

Greenville Sector % increase Hospitality/Tourism +6.1 Construction +5.7 Education/Health +4.8

Largest losses Charleston Sector % decrease Government -0.3

Columbia Sector % decrease Information -1.8 Education/Health -1.1 Construction -0.7 Financial services -0.3

Greenville All sectors gained percentage increases for the month in the Greenville area. Source: U.S Bureau of Labor Statistics

Next Issue’s Focus:

Architecture, Engineering and Construction

www.charlestonbusiness.com

May 18 - 31, 2015

IN FOCUS: HUMAN CAPITAL

Telecommuting cuts costs, increases productivity — for right workers By Barry Waldman

Contributing Writer

oy Tyson sees her children off to school and day care, then sits down to work at 8:30 a.m. Tyson is a public relations account manager for The Caliber Group, based in Tucson, Ariz., but her office is in her home in Goose Creek. Tyson is one of a growing number of people avoiding the daily commute by working remotely. Management experts say the future of the workplace includes many such employees. The technology fully supports it, and people prefer the flexibility. But they say managing virtual employees requires careful planning and supervision to avoid a host of issues. The number of people in the United States who telecommute nearly doubled to 3.3 million from 2005 to 2012, according to a report by Global Workplace Analytics, an organization advocating for more workplace flexibility. They represent 2.6% of the workforce, not including self-employed people, the study said. With technology today, there is little that cannot be accomplished remotely. “I suppose it would be difficult for firefighters to work remotely,” said William Money, associate professor of information systems in the school of business at The Citadel. Giving employees flexibility to work at least some hours outside the office can be a boon for a company, Money said. He cites improved morale and worker satisfaction, increased productivity and reduced costs among the benefits. The advantages are tangible for companies, too. Most of Arie Ball’s 95-person department at Sodexo, for which she is vice president of talent acquisition, works from their homes around the country, including in Charleston. She says she can hire the best people regardless of geography and doesn’t have to relocate them. Telecommuting breaks down geographic barriers in other ways, as well. Ball says she has a vacation home in Florida and can go there and still be at work. And a high-performing employee didn’t have to leave the company after moving to Hawaii for her husband’s job. Dell recently announced that it wants half its staff working remotely by 2020. Companies can’t go remote without significant preparation, though. Money said companies must examine their business goals and opportunities before determining what the value is to them. They then need to assess their IT security needs. Some companies have large amounts of information, such as customer lists and strategic plans, that they wouldn’t want stolen from an unsecured

connection, he said. “You need to keep secure anything your competition might wish to see,” he said. Businesses also need to establish policies and procedures before employees begin working outside the office. Policies preceded practice at Sodexo, Ball said. “You have to be very intentional about how you manage people. A home office has to be treated like a regular office,” she said. For example, she said, employees need to arrange for child care even if they’re home. Tim Marsac operates that way. He lives in Charleston and works as a salaried regional business developer for Kale Enterprises Inc., a Mooresville, N.C.-based distributor of erosion control products. One room in his house is strictly used as an office, and he starts each day at 8:30 a.m., just as he would if he were heading to his company’s office. “I view this job as if it were my own company, because if I don’t shake the trees, no one is sending me business,” he said. Marsac said telecommuting allows him to multitask at home. He can work while awaiting a repair person, for example. But Tyson said she won’t break away for mundane distractions such as doing laundry. “When I come into my office, I’m at work,” she said. Managers and employees say businesses need to have a system to track remote employees’ work, whether by having them available via phone and email during business hours or just by being accountable for their results. But the opposite is a larger problem, according to a Gallup poll that found that telecommuters work an average of four more hours a week than office dwellers. More important is the need to fight isolation, according to managers and employees. Tyson says she’s a social person who misses person-to-person contact. She visits the home office occasionally and keeps up with co-workers on social media. Sodexo takes it a step further: All employees go through orientation in person and then meet weekly by videoconference. During those weekly meetings, staff members celebrate accomplishments and throw virtual anniversary parties and baby showers. They also meet in person once a year. Employing people who work remotely at least some of the time is the future, says Money. The real question is whether businesses will get it right. “There are risks and you must manage it,” he said. cr bj

May 18 - 31, 2015

IN FOCUS: HUMAN CAPITAL Kelvin Dayse, a Turning Leaf participant who works part time for the city of Charleston, said the program is helping him understand that his actions affect the community. He said he wants kids in his neighborhood to see a life beyond selling drugs. (Photo/Ryan Wilcox)

TURNING LEAF, continued from Page 13 ➤

house. The money comes slower, but it’s safer. The money comes slower, but you can keep your freedom.”

The beginning

Barch moved to Charleston from Washington, D.C., in 2010 and started volunteering teaching at area jails. She taught an “Impact of Crime” class where victims came to the jail and shared with inmates how crime affected their lives. “Those classes show them that their actions actually hurt other people and had a ripple effect into the community,” Barch said. “It taught them that they need to take accountability for their actions.” With research based in restorative justice teachings, Barch wants to work with repeat offenders to change how they think and feel. She quit her job at a nonprofit in 2011 to focus on building Turning Leaf and achieving nonprofit status. From November 2011 to November 2014, the nonprofit had no money, but hundreds of applicants were vying for 20 spots in the class. Soon, judges were sentencing people to her program. “I started to realize that maybe the system was ready for something different; maybe South Carolina was ready for something different,” Barch said. “I know that many wanted to be in the class so that they had something good to show the judge. But I don’t care why someone is in my class, as long as I can shift their thinking once they are there.” Demand grew and Barch launched the program outside of the jail. Thirteen people were sentenced to the first round of the nearly six-month program. One participant has disappeared, and a warrant has been issued for his arrest. The remaining 12 participants attend class at the center and work at the city each week. They are paid for both. They must do homework and show up every day. Being late for class or a shift means a deduction in pay. Riley and Barch hope to study the results of the Turning Leaf initiative and make it a national model. The program needs more public and private sector partners to provide funding, teach classes or offer job opportunities for participants. “As soon as a hardened criminal gets out, he is likely to immediately go back

to selling drugs and robbing someone,” Riley said. “If just one of those people comes out and is ready emotionally and spiritually to begin a new life as a constructive working member of society, I cannot even begin to put a price tag on the value that brings to our neighborhood and community.”

A different kind of class

Twelve students file into a small room at the Turning Leaf center. They sit four to a table and take out workbooks. The projector lists problem-solving skills like “stop and think,” “set a goal” and “think of consequences.” Joseph McGrew, the program manager known as “Joe” to participants, asks the students how many had parents who told them, “I love you” or “I believe in you.” Four raise their hands. McGrew asked how they and their families felt when they got out of jail. Students shouted out answers: Disappointed. Resentful. Guilty. Insecure. Fearful. Embarrassed. Disrespected. “They don’t trust me at all. And they don’t have a reason to. My family doesn’t keep an eye on me because I’ve let them down so many times,” one student said. McGrew said students need to talk things out with their families, even if family members are not willing to listen. Students shared their own ideas: Keep trying with their families. Show up. Do not let resentment build up. Spend time with their kids. Set a good example. “Is this one class going to change your lives? Probably not. But it’s all about the process,” McGrew said. “The next six months really matter if you want to change your life and show your family that you care.” Dayse said the program has helped him see that his actions affect others. Upon graduating in a few months, Dayse wants to work full time for the city in maintenance or as a firefighter. “I know now that by being locked up, it doesn’t just affect me, it affects my family and the community,” he said. “You don’t want to fill your community with drugs. I don’t want to see the little kids who grow up under me to follow in my footsteps of selling drugs, trying to make ends meet. I want something different.” cr bj

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

www.charlestonbusiness.com 15

www.charlestonbusiness.com

May 18 - 31, 2015

IN FOCUS: HUMAN CAPITAL

Employee Benefits Brokers Ranked by No. of Employee Benefits Agents in the Charleston Area Company

Phone/ Website

David M. Gilston Insurance Agency Inc. 15-A Gamecock Ave. Charleston, SC 29407 Merrill Lynch Wealth Managment 941 Houston Northcutt Blvd. Suite 100 Mount Pleasant, SC 29464 Hibbits Insurance, Inc. 140 B West Richardson Avenue Summerville, SC 29483 Cornerstone Wealth and Tax Advisory Group 89 B Old Trolley Rd; Suite 200 Summerville, SK 29485 McLaughlin Smoak & Clarke Benefits 710 Johnnie Dodds Blvd., Suite 102 Mount Pleasant, SC 29464 Southern Benefits LLC 990 Lake Hunter Drive, Suite 201 Mount Pleasant, SC 29464 Benefit Concepts Inc. 1334 Ashley River Road Charleston, SC 29407 Jones, Pounder & Associates P.C. 7 Gamecock Ave., Suite 704 Charleston, SC 29407 WebsterRogers LLP 40 Calhoun St., Suite 320 Charleston, SC 29401 Gallagher Benefit Services 1012 eWall St. Mount Pleasant, SC 29464 Assured Neace Lukens 3860 Faber Place Drive Suite 400 North Charleston, SC 29405 State Farm Insurance - Troy W. Herndon 1711 Savannah Highway Charleston, SC 29407 Beckham Insurance Group 767 Coleman Blvd Suite 6 Mount Pleasant, SC 29464

843-571-1155 www.dgilston.com mensminger@dgilston.com 843-971-4573 www.merrilllynch.com donald.i.rhodes@ml.com 843-871-1095 www.hibbitsinsurance.com jack@hibbitsins.com 843-376-3350 www.cswta.com administration@cswta.com 843-972-5414 www.mclaughlinsmoak.com ryan@mclaughlinsmoak.com 843-881-7636 www.southern-benefits.com 843-763-7718 www.benefitconceptsinc.net info@benefitconceptsinc.net 843-571-3114 www.jonespounder.com 843-577-5843 www.websterrogers.com jhicks@websterrogers.com 843-884-2513 www.gallagherbenefits.com lori_humphreys@ajg.com 843-552-3400 www.neacelukens.com danielle.barrett@neacelukens.com 843-766-5579 www.troyherndon.biz troy@troyherndon.biz 843-766-3393 www.choosebeckham.com marshall@beckhaminsurancegroup.com

Top Local Official(s)/Year Founded

Benefit Brokers/ Total Agents

Specialization

Thomas D. Swayne 1962

100 100

Health, life, dental and disability insurance, wellness programs, worksite benefits, 401(k), payroll, senior products and employer-required notification support

Laura Clark 1914

100 100

Financial advisory services, employee benefit programs, retirement planning, 401(k) plans

Jack Hibbits 1971

75 75

Employee benefit consultants specializing in group and individual health, life, disability, dental, vision and Medicare insurance

David Armbruster, Michael Haskett, Scott Grow 2009

50 50

Retirement planning, health insurance, life insurance, long term care, annuities, disability, medicare advantage, and medicare supplement

Colin Smoak, Trey McLaughlin 2010

8 11

Large employers

Dave Kay 2005

8 10

Large and small group employee benefit plans

Lynne M. Bernthal 1989

7 38

In-depth market and benefit analysis, plan design, oversight throughout underwriting, evaluation of plans and full-service support to individuals and businesses

Douglas Pounder, Harry Jones, Douglas Szubski, Joseph Beck II 1975

7 12

Erisa Plans, DCAA, HUD projects

Debra A. Turner 1984

7 22

Certified Public Accountants and Consultants

Brandon Guest 1989

6 8

Group medical benefits, group dental, vision and disability insurance, individual health insurance, property and casualty insurance, personal coverage

James H. Suddeth Jr., Jon Taylor, Kerri Colditz 1991

5 15

Employee benefits, commercial property and casualty, personal Lines

Troy W. Herndon 1973

5 8

Mutual Funds, Life, Annuities, Health

C. Marshall Beckham III 1966

4 4

Employee Benefits, health insurance, life insurance

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 Melissa Verzaal

May 18 - 31, 2015

IN FOCUS: HUMAN CAPITAL

www.charlestonbusiness.com 17

Employee Benefits Brokers Ranked by No. of Employee Benefits Agents in the Charleston Area Company

Phone/ Website

HUB International Southeast 2430 Mall Drive, Suite 280 Charleston, SC 29406 C.T. Lowndes & Co. 966 McCants Drive Mount Pleasant, SC 29464 Crosby Insurance Group 802 Coleman Blvd., Suite 101 Mount Pleasant, SC 29464 M&A Prime Benefits LLC 709 Gamecock Avenue Charleston, SC 29407 Commonwealth/Brown & Brown Insurance 7515 Northside Drive, Suite 150 North Charleston, SC 29420 The O'Laughlin Agency 4790 Trade St. North Charleston, SC 29418 Taylor Agency 147 Wappoo Creek Drive, Suite 502 Charleston, SC 29412 Wells Fargo Insurance Services USA Inc. 176 Croghan Spur Road, Suite 300 Charleston, SC 29407 Workplace Benefits LLC 295 Seven Farms Drive, Suite C137 Charleston, SC 29492 Andy Anderson Insurance 1525 Sam Rittenberg Blvd. Charleston, SC 29407 Conover Consulting 105 Lamplight Circle Summerville, SC 29483 The Ellis Co. 260 W. Coleman Blvd., Suite B Mount Pleasant, SC 29464 Hines Wealth Management LLC 125E Wappoo Creek Drive, Suite 101A Charleston, SC 29412 Keenan Suggs Bowers Elkins 1240 Winnowing Way, Suite 102 Mount Pleasant, SC 29466

843-529-5470 www.hubinternational.com info@hubinternational.com 843-884-3159 www.ctlowndes.com billy@ctlowndes.com 843-971-5386 www.crosbyinsurancegroup.com 843-556-2594 www.mackeyonline.com jason@mackeyonline.com 843-572-4567 www.cbbins.com sherron@cbbins.com 843-767-9685 www.olaughlinagency.com george@olaughlinagency.com 843-406-1174 www.tayloragency.com hpalmer@tayloragency.com 843-573-2600 www.wfis.wellsfargo.com 843-856-3757 www.benefitwork.com 843-769-5322 aainsser@aol.com 877-423-9990 www.reevewillknow.com reeve@reevewillknow.com 843-856-1430 www.theellisco.com dean@theellisco.com 888-674-6777 www.hineswealthmanagement.com info@hineswealthmgmt.com 843-568-9323 www.kbsellc.com -

Top Local Official(s)/Year Founded

Benefit Brokers/ Total Agents

Specialization

Michael S. Chapman, Allison A. Rhyne 1998

4 14

Fortune 500 solutions for middle market businesses

Carl Morrison Allen III, Rawlins Lowndes, Ian Philpot 1850

3 99

Property and casualty and employee benefits

Rick M. Crosby, Davis Crosby 1994

3 4

All forms of employee benefits for large and small groups

Jason Mackey, Dalton Mackey 1989

3 3

Small to medium group employee benefits. We provide a no cost analysis of savings of the new health care law to your current benefits.

Todd R. Tyler 1997

2 10

All lines of benefits

George O'Laughlin 1984

2 2

Employee benefit consulting, CMS certified to enroll individuals and groups on the federally approved Marketplace.

W. Lee Taylor Jr., Harry T. Palmer, Diane N. Palmer 1979

2 20

Full-service agency that provides comprehensive business and personal insurance, employee benefits and other financial services

Carol D Baxley 1868

2 8

Consulting, actuarial services, benefits administration, communications, technology assistance and implementation, wellness and clinical strategies

Reese McFaddin Gately, Bob Gately 2006

2 2

Traditional health, health savings accounts, dental, life, disability, long-term care, 125 cafeteria plans, flexible spending accounts, health reimbursement accounts

Andy Anderson 1986

1 1

Individual health, Group, Life,LTC, Auto, Home, Business

Reeve Conover 1990

1 1

Consulting and implementation of health care reform for small businesses; retirement plan compliance; areas of employee benefits

Dean Ellis 2000

1 1

Employee benefits, Affordable Care Act, dental, disability, life, voluntary benefits, health savings accounts, flexible spending accounts

Eugene H. Hines 2011

1 1

Group health, disability, vision, life insurance, key person individual life insurance, benefits, buy-sell programs, 401(k), SEP/Simple IRA plans, executive solo defined benefit, individual and group long-term care

Brent Jonas 1949

1 1

Health insurance, deferred compensation, retirement, long term care, life insurance

Researched by Melissa Verzaal

www.charlestonbusiness.com

May 18 - 31, 2015

IN FOCUS: HUMAN CAPITAL

Executive Recruiting Firms Ranked by No. of Recruiters in the Charleston Area Company

Phone / Website Email

Top Local Official(s)/Year Founded

Aerotek Inc. 4401 Belle Oaks Drive, Suite 400 North Charleston, SC 29405

843-746-5800 www.aerotek.com -

Bryan Stefani 1983

Globalpundits Inc. 1240 Winnowing Way, Suite 102 Mount Pleasant, SC 29466 Trace Staffing Solutions 1064 Gardner Road, Suite 309 Charleston, SC 29407 AppleOne Employment Services 2000 Sam Rittenberg Blvd., Suite 3002 Charleston, SC 29407 Hammes Staffing Services 7685 Northwoods Blvd., Suite 8H North Charleston, SC 29406 MAU Workforce Solutions 1470 Tobias Gadson Blvd., Suite 200 Charleston, SC 29407 Randstad USA 4952 Centre Pointe Drive, Building 2A, Suite 106 North Charleston, SC 29418

843-566-5678 www.globalpundits.com jackie@globalpundits.com 843-277-6900 www.tracestaffing.com charleston@tracestaffing.com

Carolina Legal Associates 950 Houston Northcutt, Suite 101 Mount Pleasant, SC 29464 Dunhill Staffing Systems 1459 Stuart Engals Blvd., Suite 300 Mount Pleasant, SC 29464 Charles Foster Staffing & Executive Search 3436 Rivers Ave. North Charleston, SC 29405 Gallman Consulting 4986 Calvin St. North Charleston, SC 29418 Johnson Service Group Inc. 4975 LaCross Road, Suite 157 North Charleston, SC 29406 McNaughton Staffing LLC 1243 Savannah Highway Charleston, SC 29407 Phillips Staffing 3125 Ashley Phosphate Road, Suite 120 North Charleston, SC 29418 Management Recruiters of the Lowcountry LLC 125-E Wappoo Creek Drive, Suite 202A Charleston, SC 29412 Remedy Intelligent Staffing 604 St. James Ave., Suite J Goose Creek, SC 29445 ATC Healthcare 718-B Wappoo Road Charleston, SC 29407 Fulcrum Staffing 496 Bramson Court, Suite 140 Mount Pleasant, SC 29464 Innovative Partners Staffing 1942 Sam Rittenburg Blvd. Charleston, SC 29407 Kudzu Staffing Inc. 7455 Cross County Road, Suite 5 North Charleston, SC 29418 McClain Group LLC 12-B Carriage Lane Charleston, SC 29407 Miller & Associates 361 Culver Ave. Charleston, SC 29407 OneinaMil, LLC 1041 Johnnie Dodds Blvd., Suite 2-C Mount Pleasant, SC 29464 Signet Human Resource Management Consultants 103 Spring Hall Drive, Suite B Goose Creek, SC 29445 The CLB Group 950 Houston Northcutt Blvd., Suite 101 Mount Pleasant, SC 29464 Hire Performance 383 Fern House Walk Mount Pleasant, SC 29464 HospitalityStaff 4 Carriage Lane, Suite 402 Charleston, SC 29407 Sweet Spot Operations P.O. Box 21671 Charleston, SC 29413

Placement Specialization

Contingency or Retainer

40 45

Health care, call center, administrative, accounting, purchasing, manufacturing, general labor, assembly, skilled trades, engineering and design, architecture, software engineering, defense industry, avionics technicians, aviation final line mechanics

Contingency

Manoj Devulapalli, Jackie Dlugolecki, Joe Doyle 2000

10 10

Information technology, engineering, aerospace

Both

Jim Pascutti 1996

10 91

Accounting, finance, legal, clerical, sales, customer service, management, data entry, logistics, manufacturing, Contingency engineering, IT

843-852-2297 www.appleone.com charleston@appleone.com

Lindsay Mazell 1964

7 85

Accounting, administrative, medical, legal,Logistics, management, Human Resources, executive support, and medical office

Both

843-554-4720 www.hammeshr.com mike@hammeshr.com

Mike Powers, Brett Hammes 1965

7 23

Manufacturing, import/export representatives, warehouse and distribution, accounting, administrative, customer service, IT

Both

843-767-7610 www.mau.com alana.davis@mau.com

Randall Hatcher 1973

7 43

Engineering, industrial, manufacturing, human resources, production management, accounting and finance clerks, general office support

Both

843-745-8329 www.randstadstaffing.com lisa.stackhouse@randstadusa.com

Lisa Stackhouse 1960

7 15

Office and administration, manufacturing, logistics

Contingent

843-881-1832 www.carolinalegalassoc.com msilver@carolinalegalassoc.com

Marsha W. Silver, Terry L. Kelley 1996

5 50

Permanent and temporary placement of attorneys, paralegals, legal assistants, litigation support and all legal personnel for law firms and corporate in-house legal departments

Retainer

843-375-0031 www.dunhillstaff.com jobs@dunhillstaff.com

Neil Whitman, Katie W. Henderson, Keri Seay 1952

5 28

Aircraft manufacturing, engineering services, administrative professionals, sales and marketing, personnel management, business services

Contingency

843-572-8100 www.charlesfoster.net cfs@charlesfoster.net

Dottie Karst 1969

4 27

Accounting and finance, engineering, information technology, sales and marketing, administrative and clerical, legal and customer service

Both

843-554-5555 www.gallman-consulting.com gallmanconsulting@gpsjobs.net 843-329-0987 www.jsginc.com charlestonjobs@jsginc.com 843-556-1505 www.mcnaughtonstaffing.com jobs@mcnaughtonstaffing.com

Jeff Gallman 1985

4 25

manufacturing, engineering, human resources, logistics, construction management, insurance, collision repair, executive placements, contract/consulting staffing

Contingency

Melissa Medlin, Miranda L. Jones, Patrick Layden 1983

4 18

Engineering and IT

Both

Amy McNaughton 2008

4 25

Administrative, clerical, hospitality, accounting, medical clerical, manufacturing, engineering, IT

Both

843-569-3535 www.phillipsstaffing.com charlestonoffice@phillipsstaffing.com

Greg Lewis 1968

4 10

Human resources, light industrial, manufacturing, distribution, executive, management, technical, clerical, entry-level positions, warehouse

Both

843-628-5021 www.mrlowcountry.com tom@mrlowcountry.com

Tom Sykes 2011

3 14

Engineers, plant managers, IT, C-level, directors and vice presidents

Both

843-576-0800 www.remedystaff.com br3sc@remedystaff.com 843-556-0303 www.atchealthcare.com ldion@atchealthcare.com 843-388-5280 www.fulcrumstaffing.com info@fulcrumstaffing.com 843-744-0404 www.innovativepartnersinc.com office@nowservingcharleston.com 843-225-0123 www.kudzustaffing.com 843-225-2840 www.pipability.com info@mcclaingroupllc.com 843-571-6630 amillerjr@aol.com

Ray Sokolowski 1964

3 22

Manufacturing, production, assembly, clerical, health care, Both third-party logistics

Lynn B. Dion 2000

2 20

Nurses

Contingent

Jamiel C.J. Kadri 2008

2 15

Accounting and finance

Contingency

Greg S. Hart 1994

2 50

Hospitality, food and beverage industry

contingency

Chris Hall, Will M. Jones 2006

2 50

Construction, skilled trades, manufacturing, clerical, administrative, medical, and hospitality

Contingency

Richard G. Davis Jr. 1992

2 25

Medical equipment, medical devices, hospice, home infusion, home health, IT professionals

Both

Al E. Miller Jr., Helen C. Miller 1993

2 12

Engineering, quality, design, manufacturing

Both

843-655-4716 www.oneinamil.com talent.ninjas@oneinamil.com

Lee-Anne Scalley, Ashley Senfield 2014

2 100

Technical roles

Both

843-266-8800 www.signethrm.com contactus@signethrm.com

Debbie Williams 1985

2 10

IT and technology, aircraft, human resources, engineering, Both C-level, management

843-606-0481 www.theclbgroup.com recruiting@theclbgroup.com

Courtney LaBlaine Byrd 2010

2 0

All Industries

Both

843-216-7956 www.hire-performance.com stephanie@hire-performance.com 843-763-7774 www.hospitalitystaff.com carolinas@hospitalitystaff.com 843-620-1571 www.sweetspotoperations.com info@sweetspotoperations.com

Stephanie McDonald 2013

1 65

Technology, start-ups, executive

Hourly

Gary J. Ricozzi, Ralph W. Brownewell, Richard L. Jones 2004

1 40

Hospitality, food service

Contingency

Rebecca Guthrie 2014

1 4

Executive recruiting

Both

Recruiters/ Placements Made

Researched by Melissa Verzaal

At Work:

People, places and happenings across the Lowcountry

Hot Properties 22 Viewpoint 23

People in the News

Business Digest

GOVERNMENT

Stubbs Muldrow Herin Architects receive regional design award Stubbs Muldrow Herin Architects of Mount Pleasant received a Best Design award at the Council of Educational Facility Planners International Southeast Regional Conference, for the firm’s work on Buist Academy in downtown Charleston. The Charleston County School District project consisted of renovations and seismic improvements to the original 1921 building and a three-story addition. Cumming Corp. was the construction manager, and general contractors included MB Kahn Construction Co. for the new addition and HG Reynolds Co. for the retrofit.

Federal Capital Partners acquires East Central Lofts in Charleston

Federal Capital Partners has purchased East Central Lofts in Charleston through a joint venture with Kane Realty Corp., Randolph Development and Canongate Capital. East Central Lofts comprises 72 studio, one- and two-bedroom loft apartments. The joint venture is also considering the possibility of developing the adjacent parcel into additional Class A apartment units and street-level retail.

Tori Burke-Koskela (from left) with the Greater Summerville/Dorchester County Chamber of Commerce; Dorchester County Councilman Bill Hearn; Education and Testing Solutions owner Nancy Bell; Nancy Bailey, admissions for Pinewood Preparatory School; Brooks Crom, director of marketing for Pinewood Prep; and Marlana Preston, coordinator for Education and Testing Solutions celebrate the grand opening.

Education and Testing Solutions celebrates grand opening LS3P Associates designed MWV’s headquarters.

LS3P gains national magazine recognition

Charleston-based architecture and design firm LS3P Associates has been ranked among the top 100 Interior Architecture and Design Giants as published in Interior Design magazine’s 2015 Annual Giants Survey. The firm was listed at 68th place in the survey. Recent notable interior projects include MWV’s corporate headquarters in Summerville, Live Oak Bank’s headquarters in Wilmington, N.C., and The Vendue in Charleston. LS3P has six regional offices in Charleston, Columbia, Greenville, Charlotte, Raleigh and Wilmington.

The Greater Summerville/Dorchester County Chamber of Commerce and Education and Testing Solutions LLC held a ribbon-cutting ceremony to celebrate the company’s grand opening on the campus of Pinewood Preparatory School, at 1114 Orangeburg Road, Suite A, in Summerville. Education and Testing Solutions is an education consultation center that provides consultations, tutoring, testing and parent counseling.

Patriots Point receives grants from National Park Service and SCANA

The National Park Service has awarded the Patriots Point Naval & Maritime Museum a $26,228 grant to help restore the USS Yorktown’s engine room. The Park Service’s National Maritime Heri-

tage Grant will be combined with other funds provided by SCANA Corp., the USS Yorktown Foundation and Patriots Point Development Authority to pay for the project that will become part of the living history portion of the museum’s master plan. Design of the engine room project is expected to begin in the summer, and the exhibit is projected to open in 2016.

The U.S. Senate has confirmed Dan Thompson’s commission in the U.S. Foreign Service. He will be covering political risk, immigration and border security issues relating to the United States and the state of South Carolina. Thompson is an Operation Iraqi Freedom veteran who has a master’s degree in international relations from the Fletcher School of Law and Diplomacy at Tufts University. He is a fellow of the Royal Geographical Society in London and most recently served as a public affairs executive for the Department of Defense in Europe and South Korea.

NONPROFIT Amanda Cote has joined the Charleston Parks Conservancy as director of operations. She will manage the conservancy’s main office, providing human resources support and assisting with financial and fundraising management, among other duties. She previously was director of operations for the Charleston Promise Neighborhood for nearly four years and is a graduate of Clemson University. De Daltorio, director of humane education for the Charleston Animal Society, has been named to the board of directors for the Association of Professional Humane Educators. Daltorio has created programs that impact more than 20,000 Charleston-area school students each year.

MARKETING

Mac Baughman (from left), board chairman for the Greater Summerville/Dorchester County Chamber of Commerce; Rita Berry, chamber president and CEO; Summerville Mayor Bill Collins; and owners Jason Benjamin and Laurie Benjamin celebrate the opening of Lowcountry Olive Oil in Summerville.

Lowcountry Olive Oil celebrates grand opening

The Greater Summerville/Dorchester County Chamber of Commerce and Lowcountry Olive Oil held a ribbon-cutting ceremony to celebrate the company’s grand opening at 103-D S. Main St. in Summerville. The store sells more than 50 infused olive oils and vinegars, plus local gifts and foods. See BUSINESS DIGEST, Page 22 ➤

The Reynolds Group has rehired Graham L. Ervin as an account supervisor for marketing and new business development in its Charleston office. Additionally, Lacey Outten has relocated from the Atlanta office and was promoted to account supervisor. Ervin served as director of special events and institutional advancement at the Charleston School of Law for more than six years. She holds a bachelor’s degree in communication from the College of Charleston and a master’s degree in journalism and mass communication, with a concentration in public relations, from the University of Georgia. Outten graduated summa cum laude with a bachelor’s degree in public relations from the University of Georgia. E. Boineau & Co. has named Melissa Pluta Parker as senior account director and added Haley Marie Metcalfe as assisSee PEOPLE, Page 21

➤

www.charlestonbusiness.com

May 18 - 31, 2015

Exceeding the speed limit

verybody wants the economy to grow quickly to eliminate the “slack” that developed in the wake of the 2008-2009 Great Recession. However, that “slack” in the economy will disappear by year’s end. If growth continues at a 3.0% pace next year, inflation will become a problem. Once inflation begins to rise, Stephen D. the Federal Reserve Slifer will be forced to raise rates more quickly. That, in turn, will begin the countdown toward the end of the expansion. It is far better for the Fed to start early and raise rates slowly than to fall behind and have to play catch-up later. The economy has a longer-term speed limit, which is generally believed to be about 2.0%. That growth rate is determined by the growth rates for the labor force and productivity. The economy needs to expand quickly enough to keep pace with growth in the labor force. If it does so, everyone who wants a job will have one and the unemployment rate will bounce along at its full employment threshold, generally regarded as about 5.5%. Because the labor force is highly volatile on a monthto-month basis, one needs a relatively long-run average to determine the trend. Since the end of the recession, the labor force has grown at about a 0.5% rate so perhaps that is a reasonable guesstimate for the first part of the equation. If employers provide their workers with the latest technology, productivity will grow and more goods can be produced. Productivity growth is also volatile. Since the end of the recession, it has grown by 1.5%, so perhaps this is a decent guess for the second part of the equation. If the labor force grows by 0.5% and productivity by 1.5%, then the economy’s speed limit — known as “potential growth” — is about 2.0%. From that growth rate we can calculate the level of gross domestic product that is necessary if everyone in the country who wants a job has one and if our factories are running at full speed. That potential GDP path should be regarded as the Fed’s wish list. Occasionally, the economy hits a speed bump and slips into recession. Consumers panic and reduce their purchases of cars, houses and lots of other items. Businesses slow their rate of production. Workers get laid off and the unemployment rate climbs. As a result, actual GDP slips below its potential growth path. The gap between the two

“Once inflation begins to rise, the Federal Reserve will be forced to raise rates more quickly. That, in turn, will begin the countdown toward the end of the expansion.” reflects the degree of “slack” in the economy and is a visual representation of the deepness of the recession. The 20082009 experience was the worst downturn since the Great Depression. At its peak in 2009, the unemployment rate was 10.0% (versus full employment of about 5.5%). The factory utilization rate dipped to 64% (versus its long-term average of about 78%). There was lots of “slack” in the economy. Once the recession ends, the economy grows fairly quickly and can exceed the speed limit for a while. If it grows at 3.0% and potential growth is 2.0%, then the slack in the economy begins to shrink. If that continues for a long enough period of time, that slack will eventually disappear. That is where the economy is now. By year’s end the economy will have returned to its potential growth path. For the past six years the economy needed considerable stimulus because so much “slack” existed and the Fed wanted to do everything in its power to boost growth and eliminate the gap between actual and potential GDP as quickly as possible. But by the end of this year that slack will disappear. If the economy continues to grow at a 3.0% pace in 2016, actual GDP will rise above potential. Shortages will develop. Firms will be unable to find the workers they need. Wages will begin to climb. Factories will run at full speed. Manufacturers will take advantage of that opportunity to raise prices. Inflation will accelerate. Actual GDP above potential is not a good thing. It is time for the Fed to adopt a different policy stance. The economy no longer needs 0% interest rates. If the Fed lets actual GDP rise too far above potential and inflation begins to accelerate, it will be forced to raise rates more quickly. The faster rates rise, the sooner the expansion will end. The Fed needs to start early and stay ahead of the game. Just do it. cr bj

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

May 18 - 31, 2015

www.charlestonbusiness.com 21

People in the News tant account executive. Parker, who joined the firm in 2006, has more than a decade of experience in public relations. She holds a doctorate in English from the University of South Carolina and earned master’s and bachelor’s degrees from the College of Charleston, where she majored in English and minored in mass media communications and dance. Metcalfe graduated from Radford University with a Bachelor of Science from the School of Communication. She majored in public relations and minored in management.

ARCHITECTURE SGA Architecture has hired Mike Nixon as a project architect. He has more than 18 years of experience in educational, commercial, corporate, institutional and residential projects.

Nixon

Luczkowiak

Windsor

Ryan T. Luczkowiak and Karen Windsor have joined Goff D’Antonio Associates. Luczkowiak will serve as an intern architect. He has a Master of Architecture degree from the University of Massachusetts. Windsor is an interior designer and has a degree in interior design from the University of Florida.

The S.C. Association of CPAs board has named Christopher Jenkins CEO. Jenkins succeeds Erin Pate, who led the association for 10 years. Jenkins will lead strategic planning initiatives, foster relationships with strategic partners, and promote and develop member services.

REAL ESTATE Richard von Werssowetz and Margaret von Werssowetz have joined Handsome Properties. Richard von Werssowetz has an electrical engineering degree from Georgia Tech and is a graduate of Harvard Business School. Margaret von Werssowetz has 24 years of experience selling real estate. Bryan McDonald has joined Southern Shores Real Estate Group LLC. He is a 2001 graduate of Newberry College with a bachelor’s degree in mass communications. He worked previously as an operations coordinator for Kinder Morgan energy company. He will be based at the company’s West Ashley location. Associates Elyse Chubb and Hagood Morrison in the Charleston office of Colliers International have been recognized as 2014 CoStar Power Brokers, based on transaction volume in commercial property sales and leases in their markets. Chubb was named a top retail leasing broker, and Morrison was named a top industrial leasing broker. David Kent, a partner with Charleston-based Real Buyer’s Agent, has been named president-elect for the S.C. Association of Realtors. He will take over as president in 2016.

ACCOUNTING

Curtis Little has joined KW Commercial, a division of the Keller Williams Charleston-Mount Pleasant Market Center. He previously worked for Cushman Little & Wakefield Thalhimer in Charleston, where he focused on retail tenant representation and retail value-added acquisitions.

WebsterRogers LLP has hired Jill M. Kovalich as director of practice development. She has more than 20 years of experience in marketing, sales and business development. Kovalich holds a Bachelor of Arts in communication arts from Marywood University in Scranton, Pa., and a Master of Arts in business and organizational communications from Emerson College in Boston.

Rare Charleston real estate firm has hired Justin Dean Albright and Timothy Seabrook Mallard. Albright previously worked in the construction industry, focusing on residential improvements and contractor project management. Mallard, a former Charleston city councilman, serves on the board of directors for the Berkeley-Charleston-Dorchester Council of Governments. He also was previously a

Greg Soyka has been promoted to principal in the Charleston office of LS3P, and Laura McLeod and Dan Scheaffer have been promoted to associate principals. Soyka joined the firm in 1999. McLeod has been with the company since 2005 and is involved in research for high-performing and Net Zero designs. Scheaffer joined the company in 2003.

member of the Charleston County Aviation Authority board. Jeremiah Oswald has joined Carolina One Real Estate at the Trolley Road office in Summerville. Additionally, Meaghan Popper and Tim Walter have accepted new management positions in the company. Popper has been named general sales manager overseeing sales for the 11-office brokerage, replacing Jim Reese, who will continue to work with the company in agent training and development. Walter will take over as broker in charge of the Mount Pleasant North office, the position formerly held by Popper. He has 25 years’ experience in real estate and property management and is a graduate of Wofford College with a degree in economics. Popper is a graduate of the University of Colorado and has been with Carolina One since 2005. Reese’s focus over the past 15 years has been on teaching managers and sales associates. Charleston Preferred Properties has hired Jordy Schaffner and Jimmy Kaiser as broker associates. Schaffner has more than 14 years’ experience in Lowcountry real estate. Kaiser is a former nonprofit executive with experience in medical sales and fundraising.

RETAIL Glasspro has hired Robyn Sportsman and Jill Settle. Sportsman is an auto glass technician and will be primarily responsible for glass replacement and repairs. He has more than 20 years’ experience in the industry. Settle has rejoined the company as a business development representative. She previously spent more than 10 years in mortgage sales and real estate and has a Bachelor of Science in business administration and finance from the University of South Carolina.

EDUCATION Charleston County School District has hired Sean Hughes as director of operational planning as part of the finance, operations and capital programs team. Hughes will lead the district’s efforts to forecast enrollment changes that will impact the need for classroom space and facilities throughout the district. He will also manage the district’s vacant real estate and land portfolio, among other duties. Warren Peper has been hired as director of the graduate school at Charleston Southern University. Peper, a columnist and former multimedia director for The Post and Courier newspaper, will pro-

mote the school’s six graduate programs and six certificate programs to businesses and organizations. College of Charleston hospitality and tourism professor Steve Litvin has been named a Fulbright Ambassador. He will serve as a representative of the Fulbright Scholar Program and help with outreach efforts to the higher-education community. He earned an undergraduate degree from Bentley College, an MBA from Babson College and a Doctor of Business Administration degree from the University of South Australia’s International Graduate School of Management. Lt. Gen. John B. Sams Jr. has been named chairman of The Citadel board of visitors. He will begin his new post July 1, after current chairman Lt. Gen. W. Michael Steele completes his term June 30. Sams is a 1967 graduate of The Citadel with a degree in history and has served on the 14-member board since 2011. He is owner and president of JBSJ & Associates LLC, an aerospace consulting company, and retired from the Air Force in 1999.

TECHNOLOGY Geocent LLC has hired Jesse Daines as systems administrator II, Megan Rascoe as a technical analyst writer II and Morgan Blackstock as front office administrator. Dynepic Inc. has hired Joel Goobich as director of business development. He will work on the company’s Internet of Toys platform, a connected open architecture and cloud platform built to drive child-friendly content on the Web.

CONSTRUCTION SouthCon Building Group LLC has hired Brandon Needham as a project manager and Andrew Kay as an assistant project manager in its Mount Pleasant office. Needham Needham previously worked for Frank L. Blum Construction, Vannoy Construction and Lagle Crane and Steel LLC. He is an East Carolina University graduate with a Bachelor of Science degree in construction management. Kay is a 2011 graduate of Clemson University with a Bachelor of Science degree in construction science and management. Prior to joining SouthCon, he was an estimator for Pepperdam Construction Co.

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

www.charlestonbusiness.com

May 18 - 31, 2015

Business Digest DesignBuild Mechanical Corp. opens North Charleston office

DesignBuild Mechanical Corp., a commercial and industrial mechanical design and contracting firm serving the Southeast, has opened a new office in Pepperdam Plaza, at 3215 Fortune Drive, Suite 102, in North Charleston.

ly, Tom Black joins the company as executive vice president and COO and Keaton J. Green serves as director. Frampton offers planning and design support, preconstruction, construction services and sustainability services throughout the Carolinas.

Rainbow Child Care Center breaks ground at Nexton

Employees of Nexton, Rainbow Child Care and JRF Construction held a groundbreaking for a new child care center in Nexton, just outside Summerville. The new center is scheduled to open later this year. Frampton

Black

Frampton & Associates becomes Frampton Construction

Frampton & Associates, which was founded as Limehouse & Frampton in 1977 and became Frampton & Associates in 1993, will now become Frampton Construction. The new management team will be led by Chad Frampton, son of founder Charles Frampton; additional-

American Association of Political Consultants honors UPT Strategies

Charleston-based political consulting and communications firm UPT Strategies has been awarded two Pollie Awards from the American Association of Political Consultants. UPT Strategies was recognized for the Best Get Out the Vote Program in the country in 2014. UPT led the efforts for the Republican Party of Maine, which

had the highest-percentage voter turnout of any state in the country. The firm was also recognized for the Best Use of Illustration for a mail design in a municipal election in New Jersey.

Ishpi gains recognition from Homeland Security Department

The Department of Homeland Security presented Ishpi Information Technologies Inc. of Charleston with the Small Business Achievement Award at the 11th annual Small Business Awards Ceremony in Washington, D.C. Ishpi was one of two companies to receive this award in 2015, and the company received it for its support for the Coast Guard. Ishpi helped the Coast Guard significantly cut the maintenance and down time of its aircraft.

Departure Media launches ad campaign in Richmond airport

Charleston-based Departure Media Airport Advertising and Hospital Corp. of America have installed 15 HCA-branded hand sanitizer displays throughout

Richmond International Airport in Virginia, in locations including ticketing, baggage claim, concourse areas and parking decks. The program was devised by Jon Mathiesen, Richmond International Airport CEO, and Leslie Bensen, founder of Departure Media Airport Advertising.

Trident medical facilities earn echocardiography accreditation

Trident, Summerville and Moncks Corner medical centers have been granted three-year terms of accreditation by the Intersocietal Accreditation Commission in the areas of adult transthoracic echocardiography and adult transesophageal echocardiography. Accreditation means these facilities have each undergone a thorough review of operational and technical components by a panel of experts. The commission grants accreditation to facilities found to be providing quality patient care, in compliance with national standards through an application process including detailed case study review.

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. Bob Caldwell and Shep Benjamin of Caldwell Commercial represented the landlord in the lease renewal of 25,700 square feet of office space at 2457 Aviation Ave. in North Charleston. Ed Kercher of Cushman & Wakefield Thalhimer and Bob Walker of Serten Advisors represented the tenant. Alex Irwin of Newmark Grubb Wilson Kibler represented the tenant, PortWatch Logistics, in the lease of 12,324 square feet of warehouse space at 4500 Goer Drive in North Charleston from Montague Overpass Venture. Hagood Morrison of Colliers International represented the landlord. Kristen Krause of Coldwell Banker Commercial Atlantic represented the landlord, Glick Boehm & Associates, in the lease of a 1,920-square-foot retail space at 493 King St., Unit 101, in downtown Charleston. Mike Ferrer of Lincoln Harris represented the buyer, Lionheart Trucking, in the purchase of a four-acre site with a small warehouse at 4350 Piggly Wiggly Drive

in North Charleston from JLW PW II LLC for $1.15 million. Robert Barrineau Jr. and Brendan Redeyoff of CBRE represented the seller. Thomas G. Buist of Lee & Associates Charleston represented the seller, Atlantic Avenue Partners LLC, and the buyer, Rancho McBog LLC, in the sale of a 23,000-squarefoot industrial building at 3265 Fortune Drive in North Charleston for $1.166 million. Pete Harper of Lee & Associates Charleston represented the landlord, Liberty National Associates L.P., in the lease of 1,392 square feet of office space at Fairfield Office Park, 1064 Gardner Road, Suite 111, in Charleston to The S.C. School for the Deaf and Blind. Tradd Varner of Coldwell Banker Commercial Atlantic represented the landlord, PV II LLC, in the lease extension of a 1,156-square-foot office space at 1037 Chuck Dawley Blvd. in Mount Pleasant. Blair Belk and Trey Lucy represented the landlord in the lease of 521 square feet of space at 1002 Anna Knapp Blvd., Suite 201, in Mount Pleasant to The Guarantee Co. of North America USA. Johnny Bevon of Avison Young represented Wando-BOI LLC in the purchase of a 23,760-square-foot office and warehouse building at 483 Long Point Road in Mount Pleasant from Withers Enterprises LLC for $1.491 million. Phil Rose of Twin

Rivers Capital LLC represented the seller. Joe Keenan of Palmetto Commercial Properties LLC represented the owner, 241-243 East Bay St. LLC, in the sale of a 9,200-square-foot office building at 241243 East Bay St. to 241-243 E. Bay Holdings LLC. Frank Thornhill of Places Real Estate represented the buyer.

Benji Cooke of Oswald Cooke & Associates represented the buyer. Charlie Moore of Carolina Commercial LLC represented the seller in the sale of 21.51 acres of land at 4475 Betsy Kerrison Parkway on Johns Island. Jackie Walker of Carolina One represented the buyer.

J. Ryan Welch of Lee & Associates Charleston represented the landlord, Northwoods Center Business Park LLC, in the lease of a 1,977-square-foot office suite at 2154 N. Center St., Suite 203, in North Charleston to Family Medical Transport LLC.

Amanda Reeves and Will Sherrod of Lee & Associates Charleston represented the landlord, Wescott Shop LLC, in the lease of a 1,500-square-foot retail space in The Shops at Wescott, 9730 Dorchester Road, Suite 103, in Summerville to Pisani Chiropractic LLC, dba AlignLife.

Dewey B. Golub of Keller Williams Realty Charleston represented the buyer, JJR Developments, in the purchase of a 6,080-square-foot building at 1314 Rutledge Ave. Jennifer Liverett of Keller Williams Realty Charleston represented the seller.

Todd P. Garrett of Avison Young represented the landlord, Palms Preferred Properties LLC, in the lease extension of a 2,100-square-foot office and warehouse space at 7187 Bryhawke Circle in North Charleston to Cutting Edge Cabinets LLC.

Will Sherrod of Lee & Associates Charleston represented the owners of Pier Pont Crossing in the lease of 1,355 square feet of retail space at 2408 Ashley River Road in Charleston to State Farm Insurance. John Crosby with Brand Name Real Estate represented the tenant.

David Grubbs of NAI Avant’s Charleston office represented the seller, Floyd Family Investment Co. LLC, in the sale of 0.25 acres at 241 & 243 Calhoun St. in Charleston for $850,000. Phil Rose of Twin Rivers Capital represented the buyer.

Will Sherrod of Lee & Associates Charleston represented the seller, Tanglewood Station LLC, in the sale of 8966 University Blvd. in North Charleston to Carolina Child Care Properties for $2 million.

Kathleen Boswell of Coldwell Banker Commercial Atlantic represented the seller in the sale of 1 acre of land at 11111115 Bacons Bridge Road in Summerville. Jim Rowe of Carolina One Real Estate represented the buyer.

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

Economic impact of the arts goes beyond the box office

ost people would agree without much hesitation that the arts are good for business in Charleston. You can look at it from an aerial level — 6.7% of the area’s workforce are in the creative industries, bringing a whopping $1.4 billion annual revenue into the economy. (Source: Regional Mike Technology StrateGibbons gies, May 2010). Or you can look at it from the common sense street view. When someone goes to, say, a show at a local theater, they also often pump money into the economy with a dinner before the show. They pay for parking. They may buy a new outfit for the evening out. And they may fill up their tank on the drive in. The economic impact is far beyond the ticket price for the show. Any way you cut it, Arts Matter, and they matter immensely to our economy. In November, Charlestonians will elect their first new mayor in nearly 40 years. Under the leadership of Mayor Joe Riley, the arts have been a cornerstone of a growing and thriving community. Mayor Riley has been an instrumental supporter of some of the centerpieces of the arts that define Charleston — Spoleto, the Gibbes renovation, the Gaillard Center. He has been an advocate for the arts throughout his tenure, and his successor will be passed a bright arts torch to carry into a new administration. To that end, will the new mayor keep the flame burning, or see it diminish over time? It is in Charleston’s best interest to see that a new administration actively supports and endorses the continued growth and success of the wide array of arts in the Holy City. To date, six candidates — Ginny Deerin, William Dudley Gregorie, Leon Stavrinakis, John Tecklenberg, Paul Tinkler and Maurice Washington — have thrown a hat into the mayoral ring, and all six say they will take the opportunity to tell the voters how the arts will factor in their administration. On June 9, from 9-11 a.m., the Charleston Regional Alliance for the Arts will host the 2015 Arts Matter Mayoral Summit at Woolfe Street Playhouse. The event is co-sponsored by Charleston Magazine and www.IfYouWereMayor.com.

The 38th season of Spoleto Festival USA opening ceremony was hosted by Charleston Mayor Joe Riley on the steps of City Hall on May 23, 2014. (Photo/Ashley Heffernan)

Undoubtedly, these candidates will express support for the arts. Charleston’s rich and vibrant arts scene is one of the critical threads in the amazing fabric that makes this area what it is. Combine our arts with food, history, architecture and good old Southern hospitality and it’s easy to see why Charleston is the No. 1 place in America people want to visit, and why so many of them want to subsequently make it their permanent home. It’s easy to stand up and say, “Hooray for the arts!” It’s another thing to weave support of the arts into your administration. Which of these six will reveal a plan for a public arts initiative? Who will unveil a strategy to assist arts organizations in building acquisition or infrastructure maintenance? Who will boast a campaign plank that promises increased financial incentives for arts organizations growing educational programs? In short, who is willing to step up and provide concrete and definable ways

they believe Arts Matter, along with a series of goals and milestones that they are willing to be held accountable for should they become the next mayor of Charleston? And just as important — will you be there on June 9 to hear what they have to say? And even more important that that — will you be there after the election, to hold our next leader accountable and ensure that, in fact, the Arts Matter for Charleston’s future? This is a historic time in Charleston’s future. Many challenges will greet the next mayor. Traffic, development, education, housing costs. But we must make sure that arts receive the attention they deserve as Charleston continues to grow and evolve. Because Arts Matter, and they need to matter to Charleston’s next mayor. Mike Gibbons is the executive director of the Charleston Regional Alliance for the Arts. He will moderate the Arts Matter Mayoral Summit on June 9.

Arts Matter Mayoral Summmit The Charleston Regional Alliance for the Arts, Charleston Magazine and If You Were Mayor are holding a summit to discuss the role of the arts for candidates’ for mayor of Charleston. Time: 9 - 11 a.m. Date: June 9, 2015 Place: Woolfe Street Playhouse, 34 Wolfe St, Charleston, SC Website: www.IfYouWereMay.com

We want to hear from you Write: Andy Owens, Managing Editor Charleston Regional Business Journal, 1439 Stuart Engals Blvd., Suite 200 Mount Pleasant, SC 29464 Email: editorial@scbiznews.com

www.charlestonbusiness.com

May 18 - 31, 2015