Business Observer / May 26, 2017

M AY 26 - J U N E 1, 2017 | TH R E E D O LL A R S

FLOR IDA’S NE WSPAPER FOR T HE C - SUI T E

Real estate | Developer’s units are small, but he brings big dreams. PG.7 PASCO • H ILL SBOROUG H • PIN ELL AS • P OLK • M A N ATEE • SA R ASOTA • C H A R LOT TE • LEE • COLLIER

Apparel

Attack E-commerce upended retail. But the CEO of a $2.5 billion company crafted a bold strategy to compete for market share.

PAGE 14

Shelley Broader| CEO, CHICO’S FAS

REAL ESTATE

REAL ESTATE

WORKFORCE DEVELOPMENT

COMPANIES

Time to Sell?

Project Teach

Health Matters

STRATEGIES

COMMERCIAL REAL ESTATE

Several markets in Florida boast big gains in home values, according to a new report. Lee County leads the way.

PAGE 6

COMMERCIAL REAL ESTATE The Guy Harvey brand targets lakes and rivers in a new project focused on high-end hospitality.

PAGE 8

DON’T MISS

Window to the World

A British executive learned several lessons when he launched a U.S. unit of his family’s $55 million company.

PAGE 10

Wellness plans sometimes falter. A pair of Tampa entrepreneurs has bold plans to shift that story.

PAGE 12

Legacy Projects

Don Phillips, after sur v iv ing the recession, has a new out look on development.

PAGE 16

Investor buys out partner in Palm Harbor project for $81.3 million. 16 Hotel management firm wins global award. 17 Broker has high hopes for a new way to analyze property values. 18

PAGE

19 Want to hire the best employees? Seek true grit.

224511

Gone Fishing

A $32 million Fort Myers firm scores an A in building a class to help find and train employees.

PAGE 9

cooltoday.com

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BUSINESS OBSERVER | MAY 26 – JUNE 1, 2017

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MAY 26 – JUNE 1, 2017 | BUSINESS OBSERVER

Likability factor A CEO’s job isn’t to be liked — but that doesn’t mean it doesn’t feel nice to get a little love.

That’s the approach behind Silicon Valley tech firm Owler’s debut report on global CEO likeability. Owler, which bills itself as the world’s largest community-based business insights platform, says it parsed through “thousands of CEO reviews from site users to uncover what people truly think of CEOs.” Tampa is one of some 40 cities worldwide Owler analyzed in its report. While all CEOs with a profile on the platform were given a ranking, only a fraction were named Owler top-rated CEOs. A top-rated CEO, Owler says on its website, must have 10 or more votes, be rated higher than 80 points and be at least in the top 100 for his or her industry. Owler says there are at least 1 million “active business professionals who share their thoughts and opinions” on its site.

“This year alone, Owler community members have contributed over a quarter million CEO ratings,” the website states. “Out of the 167,000 CEOs on Owler, we’ll be distributing 1,000 awards to the top CEOs, meaning that only the créme de la créme of corporate commanders — the top 0.60%— will make the cut.”

Two CEOs in Tampa made that cut: John Zettle, CEO of audio-video technology firm AVI-SPL, a $577 million firm with nearly 1,500 employees, and Keith Olsen, CEO of national data center firm vXchnge. Zettle scored 99.1 out of 100, for the No. 1 ranking in Tampa, while Olsen, with a 98.1 score, ranked No. 2. (St. Petersburg-based Raymond James CEO Paul Reilly won an award with a 92.3 score, No. 25 in

LOCAL LIKES CEO: Company Score/out of 100 John Zettel: AVI-SPL.............. 99.1 Keith Olsen: vXchnge............. 98.1 Sean Burke: KiteDesk............. 78.4 Richard Lowrey: Pilgrim Quality Solutions........... 76.2 Arnie Bellini: ConnectWise ......................... 74.3 David Dunkel: Kforce.............. 69.2 Yong Gon Chon: Focal Point Data Risk ............... 65.1 Jack Berlin: Accusoft.............. 60.2 Matt Nachtrab: LabTech.......... 48.3 Dean Mason: Acclaris............. 38.1 Stephen Gray: Syniverse......... 37.3 Source: Owler the finance industry category, but was not included among Tampa winners.)

Other top executives from wellknown brands to make the overall winners list include Delta CEO Ed Bastian, with a 92.9 ranking; Marriott International CEO Arne Sorenson, with a 93.9 score; Ritz-Carlton President and COO Herve Humler; BB&T CEO Kelly King with a 94.4 score; and SunTrust Bank CEO Bill Rogers with a 91.5 score.

Another Florida executive on the Owler award list is Chico’s FAS President and CEO Shelley Broader, who has a 98.3 score, good for No. 7 in the retail and e-commerce category. Read more about the executive who leads the Fort Myers-based specialty retailer on Page 14.

See COFFEE TALK page 5

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“It’s important to us to recognize all the good that businesses and business leaders are doing for our community,” says Charlotte, president of J.E. Charlotte Construction.

“As residents and business owners, we live, work and play here, and we want to acknowledge the positive news as well as the issues facing our area.”

In addition the radio dial, listeners can stream the audio online every Tuesday at SarasotaNewsRadio.com

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RADIO DAYS Two of the more outgoing construction executives in the SarasotaBradenton market, Jack Cox and Jeff Charlotte, are branching out to a new line of work: radio.

The duo is launching “Business Spotlights with Jack and Jeff,” a weekly radio show that will broadcast on Sarasota News Radio’s 1320 AM, 1450 AM and 103.9 FM Tuesdays from noon to 1 p.m. The inaugural show is scheduled for May 30, with Dave Beesley and P.J. Brooks from First Step of Sarasota and recovering former addict Justin Halas to discuss the area heroin epidemic.

“This radio show is a great opportunity to shine a spotlight on the relevant issues that affect our business community,” says Cox, president of Halfacre Construction Co., in a statement. “Jeff and I look forward to highlighting various leaders in the for-profit and nonprofit sections to bring these issues to the forefront.”

The June 6 show will highlight the state of Sarasota County schools, the release adds. Scheduled guests for that show include BJ Ivey, Sarasota County’s 2017 Teacher of the Year, and Superintendent Todd Bowden. Future guests on the show include Sarasota County Sheriff Tom Knight; Manatee County Sheriff Rick Wells; Mireya Eavey, president of the Sarasota Area United Way Suncoast; Gecko’s Hospitality Group co-owner Mike Quillen; Daiquiri Deck President and developer Troy Syprett; Michael’s On East co-

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4 topstories from BusinessObserverFL.com

BUSINESS OBSERVER | MAY 26 – JUNE 1, 2017

BusinessObserverFL.com

SARASOTA-MANATEE

Global company plans 200 jobs One of the largest call center companies in the country, Alorica, plans to hire 200 people for its Sarasota location.

The hires are in addition to the 330 employees Alorica already has in Sarasota, according to a statement. Potential jobs include customer service agents, customer service team managers, quality assurance agents and workforce analysts.

Alorica is based in Irvine, Calif., with offices in North America, Latin America, Asia Pacific and Europe, in addition to a work-at-home unit.

Manufacturer expands to Shanghai Uniroyal Global, which manufactures and sells vinyl-coated fabrics for the auto industry, among several other sectors, is opening a new sales, engineering and marketing office in Shanghai’s Financial District in Pudong.

The office will provide sales, marketing, technical and logistical support, as well as offer a hub of innovation for

quote of theweek I’m much more contemplative now, and interested in the body of work I’m going to leave behind.

Don Phillips | Phillips Development & Realty SEE PAGE 16

what do you think?

the research and development of new vinyl colors, patterns, and designs targeted toward the Asia-Pacific automotive market, the Sarasota-based firm says in a statement. The company currently has markets in the U.S., Europe and across the Asia-Pacific region.

Uniroyal’s coated fabrics and soft trim components are featured in many consumer and industrial applications including automotive seating and interior components, commercial and hospitality seating and medical equipment.

March 2017 increased 14.5% to $214,200, while the median sales price in March for traditional resales increased 9.9% to $220,000.

Pharmacy giant buys area firm

TAMPA BAY

New home starts rise nearly 10% Market researcher Metrostudy’s first quarter report on Tampa housing states 2,318 single-family units were started during the most recent quarter, a 9.8% increase over the first quarter of 2016.

The single-family quarterly closing rate rose 45.3% to 2,482 units in the first quarter compared to first quarter of 2016. That’s the best quarterly move-in rate since the recession, the report adds.

The median home price in

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St. Louis-based pharmacy benefit management company Express Scripts acquired Tampa-based workers’ compensation services and customized pharmacy company myMatrixx.

The companies will merge capabilities to make enhanced pharmacy services available to workers’ compensation clients and injured patients. Terms of the transaction were not disclosed.

The combined workers’ compensation team will be led by current myMatrixx CEO Artemis Emslie.

CHARLOTTE-LEE-COLLIER

Banker pleads guilty to fraud Naples resident Ross Pickard, 63, faces a maximum penalty of five years in federal prison after pleading guilty to conspiracy to commit loan and credit application fraud,

according to a release from the U.S. Attorney’s Office.

Pickard was a senior loan officer at JPMorgan Chase Bank, according to a plea agreement, and conspired to defraud the bank with others by “completing, certifying and submitting mortgage loan applications on behalf of borrowers that contained false and fraudulent statements.”

JPMorgan Chase suffered about $33 million in losses associated with Pickard’s conduct, authorities contended.

Mall launches renovation project Edison Mall in Fort Myers announced construction has started on a $4 million renovation project.

The renovation will include changes to the mall’s concourse. It will also add a new cut-through in the center of the mall near the Macy’s store for women’s clothing, which is separate from the Macy’s location at the mall with men’s clothing, children’s clothing and furnishings.

The mall also plans to add new retailers and relocate some existing retailers into newly renovated space.

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MAY 26 – JUNE 1, 2017 | BUSINESS OBSERVER

CoffeeTalk FROM PAGE 3

BusinessObserverFL.com

5

your

BRAND deserves BETTER than this

JIM HENDERSON

Power up

See COFFEE TALK page 6

A BETTER BRAND It has been a century since The Association to Advance Collegiate Schools of Business was formed, and leaders at the business education organization thought it was time for a change.

AACSB International Executive Vice President and Chief Strategy and Innovation Officer Dan LeClair tells Coffee Talk the Tampa-based LECLAIR organization’s new mission and vision were critical drivers for the recently debuted AACSB International brand transformation. That includes a new logo and website.

The updated mission and vision were released last year. The new mission? To foster engagement, accelerate innovation and amplify impact in business education. The new vision speaks to AACSB International’s ambitious goal — transform business education for global prosperity.

“In some ways, the brand transformation was a reflection of something we’d already become — more than an accrediting body,” LeClair says. “For 100 years, we’ve been

known best for accrediting business schools. That’s still an integral part of our mission and brand, but it’s not the only part.”

LeClair says the organization saw several key areas of opportunity, such as business schools becoming catalysts for innovation, hubs of lifelong learning and a venue for leadership development, not only for people in the business sector.

LeClair says it’s more common now for people interested in starting social enterprises to go to business school.

AACSB International also offers professional development for business school leaders and benchmark information for schools. And it aims to serve as a thought leader in business education worldwide.

Says LeClair: “We believe business schools need to be more connected with practice, and AACSB plays an important role in that.”

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the value of the property.

The question Henderson gets asked the most about the project is: Will going solar produce a financial return, in future electric and power bills, that makes sense for others to do it?

In a 2015 interview, when Henderson first decided to go solar at his company’s main warehouse, in a conversion project, he pegged the break-even point on the investment at about five years. That included $100,000 in federal tax credits. With the recent addition, the break-even point could now take seven years, he says. But he has no regrets — even if it takes a decade.

“It’s still the right thing to do,” Henderson says. “We have met our goal of having a negative carbon footprint, and we are pleased with that part.”

it deserves

Jim Henderson’s devotion to solar power is heating up.

The founder and president of upscale Naples-based mover William C. Huff Cos., Henderson recently completed a 10,000-square-foot addition to the firm’s now 44,000-square-foot storage warehouse, where rooftop solar panels generate all the power. “We needed more space for our clients,” Henderson tells Coffee Talk, “and at the same time we wanted to see if going solar was viable.”

The 45 foot-high addition, adds Henderson, is also engineered to withstand winds of at least 175 mph, a Category 5 hurricane rating. The addition cost around $240,000, and the total project cost about $1.2 million.

The rooftop solar system produces 214,000 kilowatt hours of electricity a year, about 18,000 kilowatt hours a month. The solar system has brought the company’s energy cost to net zero, says Henderson, and it’s also raised

6

BUSINESS OBSERVER | MAY 26 – JUNE 1, 2017

BusinessObserverFL.com

datasnapshot Rise up Lehigh Acres — once dubbed the American Dream in high reverse by the New York Times — is now a statewide leader in rising home values.

An unincorporated area of Lee County east of Fort Myers, Lehigh Acres posted a median home value of $117,500 in 2015, according to a new report from data firm SmartAsset.

That’s up 68% from $69,900 in 2011.

Of course, in Lehigh Acres, a national leader in foreclosures in the late 2000s, housing values are relative. In 2006, for example, the peak year before the bust, the median home value in Lehigh Acres was $236,700. “The past 10 years have been a roller coaster ride for homeowners in Lehigh Acres,” the SmartAsset report states.

Lehigh Acres is also one of four areas from the region to make SmartAsset’s top 10 list of Florida Rising Housing Markets and one of six to make the top 20. Lehigh Acres and Fort Myers tied for first place on the list with Kendall, outside Miami. In Fort Myers, the report shows, population growth outpaced new housing stock growth by 10.8% from 2011 to 2015. Median home values grew 57% over that same time period.

Riverview, in Hillsborough County, tied for No. 6 with Orlando on the list, and Cape Coral ranked No. 8.

Clearwater ranked No. 17 and Tampa was No. 18. Riverview especially stood out. New people there outgrew new homes by 32.4% from 2011 to 2015, the report states, which led to a

RISING MARKETS

6

1. Lehigh Acres (tie) 1. Kendall (tie) 1. Fort Myers (tie) 4. West Palm Beach 5. Sunrise 6. Orlando (tie) 6. Riverview (tie) 8. Cape Coral 9. Miramar 10. Melbourne

6

10 1

1

4

8

5 9

SOURCE: SMARTASSET

DATA: RISING MARKETS

City Rank Population change Lehigh Acres 1 21.8% Fort Myers 1 16.5% Riverview 6 44% Cape Coral 8 11.3% Clearwater 17 4.8% Tampa 18 6.6% Lakeland 22 5.9% Largo 22 4.2% St. Petersburg 30 4.9% Town ‘n’ Country 32 1% Brandon 40 7.2%

1 Median home value change 68.2% 57.1% 22.7% 55.8% 22% 28.2% -1.4% 13.6% 22.1% 19.9% 19.6%

Index 100 100 83.54 81.01 64.56 59.49 49.37 49.37 39.24 36.71 21.52

22% surge in median home values.

Only one city in the study posted a decline in home values from 2011 through 2015: Lakeland, which was off -1.4%. “Many cities actually saw double-digit home value growth,” the report states.

Smart Asset looked at 42 cities and areas in Florida for its report, using figures from the U.S. Census Bureau’s 2011 and 2015 One-Year American Community Survey. Data points included: n Percent change in median individual incomes from 2011 to 2015; n Percent change in median home values from 2011 to 2015; n Percentage point difference between the percent change in population and the percent change in housing units from 2011 to 2015.

SmartAsset ranked each location across each metric. Then it assigned a score to each city based on its average ranking. The city with the highest average ranking received a 100, while the city with the lowest average ranking received a zero. Lehigh Acres, Fort Myers and Kendall posted a 100, while Spring Hill, in Hernando County, north of Tampa, ranked No. 42, the report shows.

Note: Report didn’t include data from Bradenton, Sarasota and Naples, among other cities.

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MAY 26 – JUNE 1, 2017 | BUSINESS OBSERVER

infocus | real estate |

E

very night, someone cleans the roads at Mirabella.

The Manatee County neighborhood is still under construction, but dozens of homeowners have already moved in. About 55 homes are still to be sold in the 160-home community, which caters to the 55 and up demographic.

The roads are kept clean for the homeowners and potential buyers. It’s an active construction site, but Mirabella developer Marshall Gobuty wants it to look as tidy as possible, which also means keeping the areas around Dumpsters free of debris and making small paint touchups on the exterior of homes.

The same obsessive attention to detail is going into Gobuty’s next development: Hunters Point Resort and Marina in Cortez, a historic fishing village in Manatee County west of Bradenton.

The development plans include 148 cottages and 49 boat slips. Of the cottages, 62 will be hotel rooms, owned by homeowners. In a couple months, Gobuty says, work will start on cottage prototypes. McDougal Architects of Chelsea, Mass., will design the cottages, led by Beth McDougal. She received her master’s in architecture from the University of Florida, where she studied the design of Florida cracker-style homes.

“This isn’t a publicity time, it’s a getit-right time,” Gobuty says. “We have the idea, the look. Now it’s, ‘How can we make it more efficient?’”

Gobuty’s aiming for zero-energy at Hunters Point, with cottages producing the same amount of energy as each one consumes. Gobuty would even like homeowners to sell energy back to power utility Florida Power & Light when they’re out of town and producing extra energy.

Gobuty is no stranger to energy efficiency. His Mirabella community achieved the highest level of Leadership in Energy and Environmental Design, or LEED, certification from the U.S. Green Building Council. The community’s LEED Platinum certification means it received third-party verification of its resource efficiency. Gobuty wants LEED certification for Hunters Point, too.

He’s also working with a solar energy think tank, which he says will give his energy ambitions for Hunters Point strong credibility. “So much solar technology has been developed since Mirabella,” he says.

The other half of the Hunters Point concept is to stay true to the historic cracker cottages that dot the area. “The design of the cottages will be consistent with what Cortez was founded on,” Gobuty says. “We went and shot hundreds of photos of cracker buildings in Cortez and studied photos in books to duplicate them.”

The cracker-cottage concept goes back to Peter and Eva Thurell, the previous property owners. Gobuty says the Thurells bought 50 cracker cottages and moved them to the property. But they ran into difficulty when they couldn’t figure out a way to get the houses above the flood zone. The houses have since been removed.

Gobuty read about the Thurells’ idea and decided he wanted to pursue the concept himself for the property. “It was a no-brainer,” he says.

Gobuty bought the Hunters Point property for $10 million in early 2016 with a business partner who is no longer involved. (Gobuty and his previous partners pursued a possible luxury RV project at the site.) Gobuty now has behind-the-scenes investors from Sarasota and Bradenton for the project.

The cottages at Hunters Point will be priced around $250,000. They’ll be 400 to 500 square feet under air, with more living space outside than inside. Gobuty says the cottages’ total size will be 1,400 square feet. “It’s a size people can afford and are happy with,” he says.

Hunters Point now hinges on Manatee County approvals. Outreach to the community will begin soon. “It’s impor-

BusinessObserverFL.com

BY GRIER FERGUSON | STAFF WRITER

Cottage

Industry Developer Marshall Gobuty says his plans for a new development could spark a shift in homebuilding, to smaller, more efficient properties.

RONEN MACHLEB

Area developer MARSHALL GOBUTY’s latest project is Hunters Point Resort and Marina, in Cortez. tant to have the community on board,” Gobuty says.

Gobuty says the development will be a test, of sorts. He could use the same concept for other locations and projects.

“Hunters Point could be the beginning

of a homebuilding revolution,” he says.

“I think this product — Hunters Point and this cottage — could really change home buying.”

7

8 infocus | commercial real estate |

BUSINESS OBSERVER | MAY 26 – JUNE 1, 2017

BusinessObserverFL.com

G

uy Harvey Outpost already has hotels in places like the Florida Keys, St. Pete Beach and the Bahamas.

Yet the outdoor-centric brand started by prominent artist, conservationist and sportsman Guy Harvey wanted to better reach freshwater anglers who make up a big part of its customer base.

“We decided to start looking at how to bring the brand in-shore, away from the beaches to rivers, lakes and streams,” says Guy Harvey Outpost President Mark Ellert.

That led t he For t L auderda le-ba sed company to launch the Guy Harvey Outpost Club & Resort Tarpon Springs in south Pasco County. The project is Guy Harvey Outpost’s first outdoor hospitalELLERT ity resort community.

It a lso ma rks t he brand’s first foray into the recreationalvehicle space, a sector that’s seen some dramatic growth. According to the Recreation Vehicle Industry Association, RV shipments totaled 430,691 units in 2016, up 15.1% over 2015. RV ownership has also reached record levels: more than 9 million households now own an RV. Guy Harvey Outpost targets sites near freshwater access already zoned for RV use. There’s a big void of luxury projects in that market, say company officials.

“A lot of RV parks are aging, underamenitized and not professionally run,” Ellert says. “People are beginning to apply hospitality expectations to their travel experiences, including outdoor active camping and the like, and for the most part the RV industry in our opinion has done a very poor job of reacting to the needs of this new marketplace.”

The 66-acre site sits adjacent to Anclote River Park, about 8 miles north of Tarpon Springs. A popular fishing and boating spot, Tarpon Springs proved a picturesque, Old Florida–style community that could appeal to outdoor enthusiasts interested in either purchasing a spot at the resort or taking advantage of its vacation rentals.

The company began taking deposits in May for the community’s planned 70 cottages and 270 paved RV lots. The 400-to-500-square-foot, one- and twobedroom, solar-paneled cottages are priced from $250,000. The 3,200-squarefoot RV lots start at $150,000 and come with 100-AMP electric service, cable, water and sewer. Planned community amenities include a clubhouse with restaurant and pool, biking trail, dog park, nature discovery center with an observation tower and boat and RV storage. Construction is set to begin this summer with a planned spring 2018 opening.

Several thousand people have already expressed interest, split roughly in half between cottages and RV sites.

Ellert puts the price tag for the project in the $35 million range — so far.

“But it could be substantially above that depending on the demand for the cottages,” he says. “We’re pretty excited about them, and we’ve found so far there’s been a lot of interest, so we may expand from the initial 70 we had budgeted to maybe 100.”

Ellert expects to grapple with the typical risks and challenges that come with real estate development, such as financing. “But the nice thing about this type of project is it can be done in phases,” he says.

There’s also the challenge of introducing a new concept to the marketplace.

“We’re bringing the hotel business to the RV world and the RV world to the hotel business,” says Ellert. “The product’s a little new, but it’s only new because they’ve never really been put together before. I think there’s a huge new market of travelers looking for authentic outdoor experiences, and there’s not a lot of product out there that serves their

BY BETH LUBERECKI | CONTRIBUTING WRITER

Worlds

Collide

The Guy Harvey brand has new ideas for hospitality. ‘We’re excited about the opportunity to do more than one,’ says an executive.

COURTESY RENDERINGS

Renderings show some of the features at the planned Guy Harvey Outpost Club & Resort Tarpon Springs.

Construction is expected to begin this summer. needs.”

The location is likely to be the first of many Guy Harvey Outpost Clubs & Resorts. The company owns a site at Lake Okeechobee and hopes to build something similar to the Tarpon Springs development there. Ellert has been approached by entities for other locations, too.

“Given the great outdoor resources of Florida, and since it’s our home and a very popular tourist and RV destination, our goal is to try to emulate this product in a handful of locations,” says Ellert.

“We’re excited about the opportunity to do more than one of these.”

We’re bringing the hotel business to the RV world and the RV world to the hotel business. Mark Ellert | Guy Harvey Outpost

MAY 26 – JUNE 1, 2017 | BUSINESS OBSERVER

infocus | training |

BusinessObserverFL.com

BY ALICIA CECCARELLI | CONTRIBUTING WRITER

School’s In JIMJETT.COM

BRIAN MANGAN, (center), is the executive director of Fort Myers Technical College. He’s surrounded by students in the school’s Turbine Generator Maintenance, Inspection and Repair course.

A Cape Coral firm took on the challenge of developing a better workforce with vigor. Its efforts have paid big dividends.

W

hen recently retired CEO David Branton of Cape Coral-based Turbine Generator Maintenance thought about his fourdecade career, one accomplishment stood out: a partnership with Fort Myers Technical College to build a program to fulfill the needs of his workforce.

TGM specializes in repairing and maintaining steam and gas turbines for utilities, mining companies and agribusinesses. Like many executives in manufacturing and the trades, Branton knew that to grow quickly, he needed a top-notch workforce. “Back in the steel mill days, there was a huge technical college mechanical training program,” says Branton, “but over the years it’s gone away with computers.”

Branton reached out to FMTC in 2010, but found nothing that fit. So he and Bill McCormick, then the school’s program director, created a program. For qualif y ing graduates, TGM could offer a starting rate of $20 an hour, the ability to travel overseas and long periods off during off-peak seasons. With overtime opportunities, TGM technicians could make sala-

ries of $60,000 to $100,000 a year.

Branton a nd McCorm i c k o v e rcame a series of challenges BRANTON — from creating the curriculum to finding an instructor to getting the right equipment — to build a successful program.

Their experience in doing it from scratch is now a model example, and a road map, for other companies and communities seeking a similar workforce boost.

The course, and the graduates it provided, also keyed a big increase in sales at TGM, says Branton. Annual revenue increased 77% from 2009 to 2014, from $18 million to $32 million.

The primar y challenge in launching the program: Branton and McCormick started w ithout any formal educational framework. “We were opening up not only a brandnew program at our school, but we had to write a curriculum and a training plan for it — and it didn’t exist anywhere else in

Florida,” says McCormick. “The industry itself is heavily dependent on highly skilled, seriousminded technicians.”

Students would need to develop an acute understanding of the massive precision equipment, including tolerances within 1,000th of an inch. “So we had to set it up to be a firstrate quality program,” says McCormick.

The school and company reached out to other entities in the turbine industry for assistance. The final result is a 1,350-hour course that includes physics, electricity, electronics, hydraulic systems and assembly and reassembly of highspeed turbines and generators.

The course is named Turbine Generator Maintenance, Inspection and Repair.

The course, which debuted in 2011, is the only one of its kind in Florida and the second nationwide. The class has attracted students from as far away as New York. The course also boasts a 100% student placement rate since 2014 for graduates. Branton notes the program is “not just a FMTC course but a certified Florida state course in which any col-

That program was probably the highlight of my career, my most lasting contribution.

David Branton | retired CEO, Turbine Generator Maintenance

lege can adapt the curriculum.”

The course also offers a payit-forward twist: Each student must devise a way to improve the class before graduation.

This has prompted innovations including the invention of several gadgets that aid in processes or installation; a system to organize tools; and a method to produce hard-to-come-by widgets using a laser printer.

Instructor Eric Seuffert also hones employability with resume writing and interview skills that have made graduates attractive to a variety of employers. That has led to other companies, even competitors, hiring away graduates from a program co-launched by TGM. Graduates take jobs in a number of areas within the turbine industry including paper mills, sugar plants, power plants, mines and waste energy plants.

“I considered it the ultimate compliment that someone else would want our guys,” says Branton.

Back at TGM, graduates receive more than just high paying jobs. They also have the opportunit y to advance to project managers or technical directors, or use their lucrative earnings to seek a four-year degree and pay for it without debt.

Says Branton: “That program was probably the highlight of my career, my most lasting contribution.”

9

10 infocus | companies |

BUSINESS OBSERVER | MAY 26 – JUNE 1, 2017

BusinessObserverFL.com

BY MARK GORDON | MANAGING EDITOR

A

business on two continents, approaching $60 million in combined sales, can trace its birth to a family of impatient — yet opportunistic — entrepreneurs.

The company, Origin, got its start building indoor pools in and around London. Some higher-end clients, says executive Neil Ginger, sought better track doors to get to the pool area. They sought something wide and sleek, but also functional and safe. Ginger and the team, including his father, uncle and his cousin, Victoria Brocklesby, found a German manufacturer that made aluminum bifolding sliding doors. Customers loved them.

One problem: The German supplier quickly ran out of inventory. “That was the seed that started Origin,” says Ginger. “There was a lack of an ability to buy them from someone else. We weren’t looking to start a business.”

That was in 2002. For the first six years, says Ginger, “our biggest constraint is we couldn’t make enough of them.”

The company manufactured 10,000 doors in 2010, the first time it passed that milestone. In 2011, it launched a sales office in Dubai. Based in High Wycombe, 30 miles outside London, the British Origin now has 300 employees, a full-capacity manufacturing plant and $55 million in annual sales.

In 2014 Ginger, with his wife and four children, relocated to the United States, with the goal of duplicating the British success.

The company chose Venice as its American beachhead. Ginger cites the beaches and lifestyle, and a thriving business community, for choosing south Sarasota County. Impact-resistant window and door manufacturer PGT Industries, one of the largest employers in the region, is located less than a mile away from Origin. But Ginger says PGT didn’t factor into the decision of where the company would open an American office.

Origin USA is essentially in a thirdyear transition phase: not yet a mature business, but no longer a baby, with a growing customer base. It did $2 million to $3 million in sales in 2016, says Ginger, and he projects the company will do $4 million to $5 million in 2017.

The company, with 20 employees, recently moved to a larger facility, going from less than 3,000 square feet to 6,000 square feet.

“The interest and confidence is growing every day,” says Ginger. “It’s an exciting time.”

Part of that stems from the product’s spot in the marketplace. Only eight of the largest 100 window and door companies nationwide offer the bifold design, says Ginger. Origin’s products are made with high-grade aluminum, he adds, which makes them more durable and aesthetically pleasing, albeit sometimes more expensive than traditional patio and lanai doors. The doors also pass Florida’s rigorous High Velocity Hurricane Zone testing standards, the company says.

Origin’s unique features present a marketing problem. “The main challenge we face is having a product that isn’t mainstream and isn’t understood,” says Ginger. “An astronomical amount of companies have said, ‘Yes, we want to sell your products.’ But turning those yeses into revenue streams is a long process.”

Origin USA sells its doors and windows to home products retailers, such as ABC Supply Co. Inc. The company’s sales staff, led by Origin USA President Ben Halvorsen, meets with suppliers and vendors, talking up the features of bifold doors and the Origin brand.

“We’re growing extremely well,” says Ginger, “but we are still a long way from where we want to be.”

MARK WEMPLE

NEIL GINGER co-founded bifolding sliding doors and window manufacturer Origin in England in 2002. Ginger opened Origin USA in 2014 in Venice.

See it

Through After a decade of success in Great Britain, a company has brought its different kind of doors stateside. It has some hurdles to overcome.

MAY 26 – JUNE 1, 2017 | BUSINESS OBSERVER

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BUSINESS OBSERVER | MAY 26 – JUNE 1, 2017

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STRATEGIES

BY TRACI MCMILLAN BEACH | CONTRIBUTING WRITER

MARK WEMPLE

Co-founders of Peerfit ED BUCKLEY and SCOTT PEEPLES encourage their employees to workout together in group fitness classes at the fitness studios in Peerfit’s network, such as Tampa’s Epic Boxing.

Framing Fitness Tampa-based Peerfit seeks to disrupt the wellness market.

With nearly $4 million in funding, it’s well on its way.

E

d Buckley imagined the idea for his company Peerfit while teaching a fitness class during graduate school in 2010. He was curious why he was able to double attendance in two weeks.

W hen he asked the class, they told him they liked how he shared the workouts on a board outside the door. It struck him that all of the group fitness calendars on paper really needed to be digitized.

From that day forward, Buckley was obsessed.

The obsession hasn’t subsided, and it has since taken a new direction: He uses a digital platform to help companies offer more effective wellness programs.

Instead of relying on reimbursing big-box g ym memberships, Buckley’s company, Peerfit, provides a platform where employees can sign up for workout classes at the stu-

dios they prefer, using a digital currency paid for by their employer that’s part of the Peerfit platform. “We’re really a financial tech company inside of wellness,” Buckley says.

In the past two years, the 31-year-old CEO and his cofounder, Scott Peeples, have grown the Tampa-based company from four employees to 25, with a target of 33 employees by the end of the year. To date, they’ve raised nearly $4 million to help grow the business. They’ve also grown from one market — Tampa — to more than 30 markets nationwide, including New York City.

Though Buckley declined to disclose revenue figures, he did share that more than 30,000 people now have access to the platform.

And the people who have invested in the company are some of the top names in business and civic life in the region.

The list includes Tampa Bay Lightning owner Jeff Vinik; Lee Arnold, executive chairman of

Colliers International Florida; and former Florida CFO and statewide Bank of America executive Alex Sink.

“He’s special — and that’s a big part of how I judge businesses,” says Arnold, the company’s lead investor. “Both Ed and Scott are superior leaders as well as thinkers and doers.”

GET PHYSICAL Peerfit works by prov iding companies a platform with digital tokens where employees can exchange tokens to sign up for fitness classes at the studios of their choice. Companies can decide how many tokens they want to allot to each employee, and only pay for those employees who take advantage of the program. Employees can share the classes they are going to with coworkers, to make working out a more social activity. Companies can choose from different levels of subscriptions, and pay per month, per bulk amount of tokens or other options.

Peerfit’s success also comes in the face of some recent media reports that say corporate wellness programs, a $6 billion industry, are at best overrated and at worst don’t produce results that justify an investment.

The motivation to succeed at Peerf it is driven by t he founders’ competitive characteristics, Buckley says. He remembers talking to the chief operating officer of Florida Blue about the business, and being told, “Only healthy people are going to use your product, and you’re just making the healthy people healthier. Prove me wrong.”

Buckley says he left the conversation thinking, “Challenge accepted.”

Buckley says the businesses using Peerfit aren’t just “cool, hip, young companies,” he says. It’s been a mix of blue collar, white collar, small, medium and large businesses.

For example, one of Peerfit’s first big customers was St. Vincent’s Medical Center in

EXECUTIVE SUMMARY Company. Peerfit Industry. Corporate wellness, technology Key. Company wants to get platform in front of more users.

MAY 26 – JUNE 1, 2017 | BUSINESS OBSERVER

You can’t half-ass being remote. It’s like wellness.

Ed Buckley | Peerfit

funding of $1.5 million raised last August. The second round of funding came when the company pivoted to targeting employers.

The company soon found a way to get in with insurance brokers, which in turn led to insurance companies placing them as a wellness option, allowing them to start scaling nationwide.

The company now seeks $1.5 million in another round of funding — what Buckley calls “big for Florida, probably not big for San Francisco people.”

Peer f it’s f u nd i ng ef for ts haven’t always been a breeze.

The first time Buckley presented to the Florida Institute for the Commercialization of Public Research he was rejected. The next time he was more prepared, toned down his sometimes exuberant personality and readied himself the personalities across the table.

It took him six months to fix his errors in the first presentation.

He’s since achieved funding from the institute twice.

GREAT STRENGTH Buckley laughs when people tell them that at a certain size, tech companies based in Florida need to move to Silicon Val-

ley or Austin. Buckley doesn’t see the need to move because the company is exactly where it wants to be in partners, progress and validation of its idea.

The climate is the same, if not better than other areas, and he says it’s probably half the cost.

“Is funding difficult here?

Absolutely. Are there less talented people? Sure, because it’s not a mecca people f lock to. Does that mean there is no funding? Heck no. Does that mean there aren’t talented people? No,” Buckley says. “Be a remote company — then it doesn’t matter where people live.”

Buck ley says working remotely is the team’s greatest strength and its greatest weakness. It’s tough when you aren’t physically in the same location, he says, but it has been a challenge they’ve learned to overcome with processes and tools.

“You can’t half-ass being remote. It’s like wellness,” Buckley says.

If you’re not completely dedicated, it’s not going to work, and that starts with the hiring process. There’s a “particular type of person” that excels in a remote environment, he says.

To find an “untraditional person you have to look in untraditional places,” he adds. You can’t look on typical job boards or talk to the same groups of people — you have to go to places where you might not think you’d find a good fit, places that are younger and edgier.

Mom communities can be a good place to start, because

they’re people who are not looking for a traditional 9-5 in an office setting, Buckley says. Younger people coming out of college are also a great talent pool. “They don’t sit in traditional classrooms anymore. They’re used to remote and digital workspaces,” Buckley says. Finally, you can look to hire people who’ve worked for other companies in remote situations.

After finding the right fit, you have to “set up protocols so they are communicated with, they are accountable, and they still feel like they are sitting next to someone,” Buckley says.

Peerfit uses Trello for project management, Salesforce for tracking leads, Slack for team communication and Google Docs for file sharing. All systems feed to each other so all work is linked together, says Buckley.

Slack is particularly helpful.

The tool allows employees to chat with each other and post to company message boards to stay in touch. Buckley says the company even created a “Random” channel in slack where employees ca n chat about things that have nothing to do with work. That’s how the company has managed to build a family vibe where Buckley says employees feel “weirdly close” to each other, despite remote locations.

“Cu lt u re is ou r g reatest strength,” he says.

13

WHAT’S WELLNESS WORTH? Company spending on wellness has “been insane in the last few years,” says Peerfit co-founder Ed Buckley.

With changing limits on what companies can spend on preventive care with the Affordable Care Act, health wellness spending has increased from $450 per person per year five years ago to $800 per person per year, says Buckley.

“The spending has increased, but the programs haven’t gotten better,” Buckley says. “You should be using data driven decisions of how you’re investing that dollar.”

Beyond money spent on the program, the real key to success is involvement of senior leadership in any wellness program, according to Buckley. If a company wants to leverage Peerfit to build a more competitive and social culture, the execs needs to participate as well. The biggest mistake, he says, is to “fund and walk away.”

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Jacsonville, a 5,000-employee hospital network. With hospitals known for long shifts, Buckley didn’t know how the adoption would be. But he was surprised when participation in the company’s wellness program quadrupled with Peerfit’s technology.

Other surprising case studies have come from Alex Lee Inc., a grocery store company in North Carolina and South Carolina, Canaveral Port Authority, and Laser Spine Institute in Tampa. With the case studies from these companies, Peerfit has been able to score partnerships with big companies such as Aetna, Orange Theory Fitness and Mindbody Online.

Pe er f it w a s fou nde d i n Gainesville, where Buckley and Peeples met during graduate school at University of Florida.

When the company was one of seven accepted to the Healthbox Accelerator in Ta mpa, the duo decided to relocate to Tampa. They quickly fell in love with the city.

After winning $15,000 from the accelerator’s pitch competition sponsored by GuideWell and Florida Blue, they raised $750,000 in a convertible note, which rolled into their Series A

BusinessObserverFL.com

14

BUSINESS OBSERVER | MAY 26 – JUNE 1, 2017

BusinessObserverFL.com

STRATEGIES

S

h e l l e y Br o a d e r stood in front of hundreds of Chico’s FAS Inc. employees last November, iPhone in hand, with a request: Everyone download “Pokemon Go.” B r o a d e r, i n t h e c o m pa ny ’s sprawl i ng 65-acre, 500,000-square-foot Fort Myers campus off Metro Parkway, wasn’t searching for a Pokemon Egg or Charizard, one of the game’s characters. She instead sought more information. How are people using “Pokemon Go?” How easy (or hard) is it to figure out? Why did it resonate with people from diverse ages and backgrounds?

“The frenzy of that app was a phenomenon,” says Broader, who took over as president and CEO of Chico’s in December 2015. “The way they built that brand was really interesting.”

Broader says feedback from employees on something as non-Chico’s as “Pokemon Go” helps her understand what motivates and inspires people.

The nuggets she learned there, and in other similar reconnaissance missions, help guide her thinking at Chico’s, which includes the Chico’s, W hite House Black Market and Soma Intimates brands.

“The power has now switched and is in the hands of the customer, and we have to be astute to that customer,” Broader says.

“It isn’t business as usual.”

Like many retailing peers, Chico’s is in a costly tussle brick-and-mortar retailers are fighting against an onslaught of online options consumers have at their keyboards and smartphones. Some retailers are trying something industry analysts call experience-based retail: an uber-personal customer service approach.

That could be having fresh pressed juice for customers or calling clients after an event to see how an outfit came off, says New York City pop-up store consultant Melissa Gonzalez.

“There will always be transactions,” says Gonzalez, author of “The Pop-Up Paradigm: How bra nds bu i ld hu ma n connections in a digital age” and founder of The Lion’esque Group. “But now people crave experiences more and more.

Selling requires a high touch.”

Customers covet more than feel-good experience, says Ken Perkins, founder of suburban Boston-based research and data analytics firm Retail Metrics Inc. To target millennials — today’s 20- and 30-somethings are Chico’s future customer base — retailers have to be relevant on social media.

That goes for the company’s own posts and providing experiences for customers to post and brag about.

Experience-based retail resonates with Broader, starting with the company’s internal

BY MARK GORDON | MANAGING EDITOR

Chic Chico’s Chico’s aims to bolster margins without weakening its brand. With massive shifts in how people buy clothes, it’s a substantial quest.

STEFANIA PIFFERI

SHELLEY BROADER was named president and CEO of Fort Myers-based Chico’s FAS Inc. in December 2015.

EXECUTIVE SUMMARY Company. Chico’s FAS Industry. Retail Key. Company balances online offerings with traditional stores.

MAY 26 – JUNE 1, 2017 | BUSINESS OBSERVER

AT A GLANCE Chico’s FAS Inc. Headquarters: Fort Myers Employees: 21,000, with about 30% full time President and CEO: Shelley Broader Brands: Chico’s, White House Black Market and Soma Intimates.

Stores: 1,501 in 48 states, Puerto Rico, the U.S. Virgin Islands, and Canada through Jan. 28. Company sells merchandise through 91 franchise locations in Mexico.

2016 Revenue: $2.47 billion Market cap: $1.45 billion Recent share price: $11.52 SOURCE: CHICO’S FAS, GOOGLE FINANCE

call to arms for managers and sales associates: Most Amazing Personal Service, or MAPS. While that mantra has been around the company for years, Chico’s boosted it last year by providing tablets for all its stores. Now employees can easily access customer history and style preferences.

“Our stores can’t just be a place where you go get something.” Broader says.

“Their job isn’t to sell you more stuff.

Their job is to make you feel great about the apparel you just bought.”

THE RIGHT COUNT The seismic shift in retail is a reality Broader, 53, has grown to accept.

“You can embrace that change or fight it,” she says. “I’m not out there hoping 1985 will come back and everyone will be shopping at malls again.”

The stakes are high. Chico’s is a corporate leader in Fort Myers, with 1,230 employees at its main campus and 21,000 full-time and part-time employees companywide. In the top 20 in annual sales among all firms based on Florida’s west coast, Chico’s has some 1,500 stores in the U.S. and Canada. It also sells merchandise through franchise locations in Mexico.

Broader, nearing her 18-month mark as CEO, also takes on the e-commerce fight during a somewhat tumultuous period for Chico’s.

The previous CEO, David Dyer, who retired, turned the company around from a loss in 2008 to profitability. He returned more than $1 billion to shareholders through dividends and share

repurchases. Dyer also led the acquisition of catalog business Boston Proper, which didn’t pan out. The Boston Proper purchase and later sale, within five years, led to an $83 million hit in impairment and restructuring charges in 2016, according to public filings.

Other cuts nicked Chico’s in 2014 and 2015. Sales dropped slightly, from $2.66 billion in 2015 to $2.47 billion in sales in 2016. Takeover rumors were published in several Wall Street publications, including one deal that collapsed. The company launched a cost-savings plan to close stores and layoff 12% of its headquarters staff.

“Chico’s rode a big wave of baby boomer spending in the ’90s and 2000s,” says Perkins. “But now they need to make the smartest and best allocation of resources in order to compete” in the retail environment.

While sales are down, margins are up.

Chico’s officials, in a February earnings report, say the company anticipates “steady improvement in operating margin that will advance its progress toward its target of double-digit operating margin in 2019.”

Executives say there are several steps the company needs to execute on that goal. The list includes managing inventory better, cutting back on promotions and improving marketing decisions.

SunTrust Robinson Humphrey Inc. retail analyst Pam Quintiliano says Chico’s has a lot going for it. Many of its stores are in Class A malls, she says, and standalone locations are in highend areas. Its popular loyalty Passport Program has high-brand recognition.

And its size model, where women get a 1 through 4, is a unique draw.

Quintiliano also says Broader and Chico’s CFO Todd Vogensen make up a dynamic duo, and are the right leaders to navigate Chico’s through industry and internal challenges. “I’ve been impressed by her so far,” Quintiliano says.

“She’s made some tough decisions since she’s come on board. And she’s focused on the core business without taking her eye off the long term.”

SWEET JOBS The down-to-earth Broader also fits Chico’s FAS’s easy-going roots. Marvin and Helene Gralnick founded the company in 1983, when they sold Mexican folk art and cotton sweaters from a small store on Sanibel Island. (FAS

corporatereport | TAMPA-ST. PETERSBURG

World of Beer taps Magic Software for supplier award Tampa-based international craft beer tavern franchise company World of Beer has selected Restaurant Magic Software as its supplier of the year.

The award is presented to the company that has exemplified trust, support, professionalism and shared values, says World of Beer officials in a release. The company has 75 franchise taverns in 21 states, and locations include two in the Fort Myers area and one in Tampa.

World of Beer taverns use the Restaurant Magic software in back-office operations, including management of inventory, workforce, cash and information management and reporting. World of Beer presented the award at its annual management conference.

LEE-COLLIER

Radio station conglomerate appoints new executive Beasley Broadcast Group Inc. subsidiary Beasley Media Group Inc. named Heidi Raphael vice president of corpo-

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stands for Folk Art Specialty).

Broader grew up in Spokane, Wash., the youngest of four children. Her dad died when she was 14, and her mom turned from homemaker to breadwinner, which left a lasting impact on Broader. “Our mom was so encouraging and helped us believe we could do anything,” says Broader. “That much faith behind you all the time was tremendous.”

Broader studied journalism at Washington State University. Then, for a life adventure, Broader moved to Boston, where she worked in mutual funds and investment banking.” I didn’t know a lot about stocks and bonds,” she says, “but I studied voraciously.”

One of the clients she worked with in banking was the Delhaize Group, a global grocery conglomerate. Broader eventually got a job at Delhaize, and stayed there 17 years. She worked her way up to president and COO of the Kash n’ Karry chain. Broader, based in Tampa then, also led the conversion of Kash n’ Karry to Sweetbay Supermarkets, and was president and CEO. The grocery business was key development point for Broader in her career.

With all the challenges — high volume, low margins, short shelf life and lots of employees — it has a succeed here, succeed anywhere element, says Broader.

‘INVEST HEAVILY’ In chasing success, Chico’s intends to do more than embrace experience-based retail. It also plans to “continue to invest heavily” in all its websites, according to a year-end report filed Jan. 28 with the Securities and Exchange Commission.

The goal is to have the websites complement, not compete with stores and vice versa. “To that end, we often refer to our brands’ respective websites as ‘our largest store’ within the brand,” the company says in the report.

The company also regularly addresses store count. Officials, in another filing, say they anticipate closing about 50 stores companywide in 2017. The anticipated breakdown of closings is 14-18 net closures of Chico’s stores; 14-18 net closures of White House Black Market; and six to 10 net closures of Soma stores. At the same time, there are plans to open at least a dozen stores this year. More than half of those are Soma Intimates, a sales and profit driver.

Broader says there are more elements

15

INSIDE LOOK Chico’s President and CEO Shelley Broader answered some personal questions on a Soma Intimates blog post in March 2016, a few months after she was hired. Excerpts of the interview: What tops your bucket list?

I want to go to Iceland. My kids did school reports on it, and I’m really fascinated by the northern lights.

What did you want to be when you were a child?

When I was really little I wanted to be a shoe salesman. I would put shoes on my dad and ask if they fit. Maybe it was my start in retail! When I was older, I wanted to be a journalist.

What are your favorite motivational songs?

I’m a rocker. “Wake Me Up” by Evanescence and “I Bet You Look Good On The Dance Floor” by the Arctic Monkeys.

What’s the most meaningful item in your office?

My Inukshuk from my son. It’s a spiritual rock figure that means a lot to me.

What are your guilty pleasures?

True crime TV, medical journals and websites — and champagne truffles.

that will drive Chico’s success, beyond what it does to balance e-commerce and traditional stores. The company recently invested considerably in improving its data analytics unit, for example, with the hopes of using the information to increase store and web sales. Chico’s also wants to be an employer of choice in specialty retail.

And while the retail industry is challenging, Broader says she believes “the opportunity is even greater.”

“This is a company that’s been around for decades, and I want it to stay around for decades,” she says.

BY TED CARTER | STAFF WRITER

rate communications.

Raphael most recently was senior vice president of corporate communications at Greater Media Inc. Raphael spent 20 years at t he compa ny i n several roles, including WRIF-FM marketing director; Greater Media Detroit group marketing director; and WMGC-FM new RAPHAEL business development director. In 2006, she was promoted to director of corporate communications at the company’s Braintree, Mass.-based corporate headquarters. She was promoted to vice president in 2008 and senior vice president in 2016. Beasley Broadcast Group acquired Greater Media in 2016.

“We are thrilled to have Heidi join the Beasley Media family,” says Beasley CEO Caroline Beasley in a statement.

“Her vast experience and knowledge of the radio industry, combined with Heidi’s outstanding reputation, make her the perfect fit for our company as we continue to expand our footprint across many platforms within the organization and the industry.”

Beasley Broadcast Group owns and

operates 63 stations — 45 FM radio stations and 18 AM radio stations — in 15 large and mid-size markets in the U.S.

Airport economic impact surpasses $200 million The million-plus passengers who flew in and out of Punta Gorda Airport last year spent freely enough to inject $208 million into Charlotte County’s economy, a study by Indiana-based Volaire Aviation Consulting says.

Volaire put the regional impact at $353 million, according to a statement.

Low-fare leader Allegiant Air and discount carrier Frontier Airlines serve Punta Gorda Airport, under the call letters PGD. The two airlines fly to a combined 35 destinations.

“The study findings explain and reinforce the complete value that Punta Gorda Airport provides to Charlotte County and the greater Southwest Florida region in regards to jobs, local spending and even the benefit our lowcost airfare provides to passengers using other regional airports,” says James Parish, Airport Authority president and CEO, in a statement.

SARAOTA-MANATEE

Sarasota Bradenton airport board members reappointed Gov. Rick Scott reappointed health care executive Dr. Peter Wish and insurance executive John Stafford to the Sarasota Manatee Airport Authority Board.

Stafford will continue to serve in Seat No. 3, Sarasota County, and Wish will continue to serve in Seat No. 2, Sarasota County. Both terms end Nov. 17, 2020.

Wish is the president of Gulfcoast Healthstyle Corp. and serves on boards for various philanthropic and political organizations. Stafford is the former chairman of the board for FCCI Mutual Insurance Co., and serves on several community organizations, including the Shrine Hospitals for Children Investment Committee. He chairs the Sarasota Manatee Airport Authority Board.

Scott recently appointed Kristin Incrocci to fill the vacancy to the Airport Authority’s Seat 1, Manatee County. She will serve until Nov. 17, 2018. Incrocci is a pilot and owner of SRQ Aviation.

commercial real estate

16

BUSINESS OBSERVER | MAY 26 – JUNE 1, 2017

BusinessObserverFL.com

COMMERCIAL REAL ESTATE

Lansbrook deal signals multifamily strength In the latest sign that the region’s multifamily market remains strong for investors, Atlanta-based Carroll Organization has bought out its joint venture partner in K.L. Lansbrook VilMCQUAID lage, in Palm Harbor.

Carroll paid partner Bluerock Real Estate $81.35 million late last month for the 607-unit apartment community, at 3751 Pine Ridge Blvd., according to Pinellas County property records.

Lansbrook, which was built in phases between 1998 and 2014, was purchased by the two companies in March 2014 for $58.6 million, according to Carroll’s website and property records.

The former condominium community features a trio of swimming pools — one is heated and another is saline — a pair of clubhouses, fitness and business center, tennis courts, detached garages and other amenities. Lansbrook is also unusual in that it offers four-bedroom units, its website notes.

Neither Carroll nor Bluerock officials returned telephone calls or emails for comment on the April 26 transaction.

Carroll has been on a buying spree since last year, acquiring mostly high-end suburban properties. Since the start of 2016, the company has spent $950 million to buy 18 multifamily communities, its website states.

In Florida, Carroll owns the Arium Gulfshore apartments, in Naples, for which it paid $47 million; the West Park Village, a mixed-use residential and retail deal it completed for $122.5 million in May 2014; and complexes in Sarasota, Orlando and elsewhere, its website states.

In all, Carroll controls two dozen Florida communities and owns properties in seven other states.

State reduces rent tax The Florida Legislature during its most recent session trimmed the tax businesses must pay annually on commercial real estate leases, a step that advocates hope could lead to the eventual elimination of the fee.

If approved as part of the final state budget to be signed by Gov. Rick Scott, the so-called business rent tax would decline from 6% to 5.8%, which would save See COLUMN page 17

BY K.L. MCQUAID | CRE EDITOR

MARK WEMPLE

DON PHILLIPS, the head of Phillips Development & Realty, based in Tampa, says he wants to focus on “legacy projects” that contribute to the cities they’re built in, rather than be a merchant developer. Among his latest endeavors is a $77 million, mixed-use residential and self-storage project slated for St. Petersburg’s Skyway Marina District.

Smarter,

Not Harder

Don Phillips has refocused in recent years, with an eye to the future.

D

on Phillips is a changed man.

After surviving last decade’s devastating economic recession — when he was saddled with $423 million in recourse debt that he had personally guaranteed — Phillips is focusing on what he calls “legacy projects,” developments that contribute as much to the communities they are built in as they do to his firm’s bottom line.

Exhibit A is the $77 million, mixeduse project he’s planning in St. Petersburg’s Skyway Marina District, which will combine 296 residences with 13,000 square feet of self-storage units and other retail and public art.

Phillips bought the land, once owned

by Home Depot, in February for $4.2 million.

“I’ve come to realize there’s a better future in slow dimes as opposed to fast nickels,” says Phillips, the managing director of Phillips Development & Realty, a Tampa-based firm he started in his native North Carolina nearly a quarter century ago.

He’s also gone lean, trimming overhead and staff while doing fewer projects overall.

At 51, Phillips is mindful of the future, his family of five children and his own legacy.

“I’ve learned production does not reward creativity,” he says. “That’s been a huge transition for me. To have the time to conceptualize and create has been very rewarding.

“I’m much more contemplative

now, and interested in the body of work I’m going to leave behind. What do I want my legacy to be — another apartment complex or something that adds, in a meaningful way, to the community?”

That said, it’s not readily apparent that Phillips is slowing down based on the number of projects in which his company is involved.

On the books at present are $200 million worth of developments, ranging from apartment communities in Brandon, Cape Coral and the aforementioned St. Petersburg — slated to begin in July — to self-storage projects in Brandon, Largo and Raleigh, N.C. In all, the projects will result in 769 new apartments and 384,000 square feet of modern, climate-controlled self-storage units.

Still, Phillips insists his attitude is as different as his operation. Geographically, he’s focused on Florida, where he moved his company in 2003, and North Carolina, where he still owns a farm and has family.

It’s a big change from 2008, when Phillips Development was mainly a merchant developer, cranking out a handful of apartment complexes containing roughly 3,000 new units annually.

The work earned the company accolades as one of the largest multifamily developers in the U.S., but it also meant Phillips Development needed a staff of more than 50 and

an annual payroll that topped $5 million.

As the projects ballooned — the company’s Mosaic on Hermann Park in Houston, a 30-story, twin-towered apartment project with 788 units and retail space, cost $215 million — so did the amount of recourse debt Phillips racked up.

“We were plowing through all our revenue, whatever came in went out just as fast,” Phillips says.

Just as debilitating, from his perspective, Phillips was increasingly spending time on what he calls “relationship management” with equity partners and others.

When the recession took hold in 2008, Phillips pared down, and approached his lenders regarding his vast personal debt.

“Don really attacked the Great Recession — he had to,” says Will Weatherspoon, a Raleigh, N.C., attorney who has worked with Phillips for two decades. “Unlike a lot of folks, who waited to see if the next shoe would drop, Don proactively approached his creditors, and that made all the difference.”

Today, Phillips is focused on fewer, but larger and more complex, projects. Many are a mix of uses that play off and complement one another: think apartments, self-storage and retail, rather than a residential-only, suburban community.

“The beauty of mixed-use projects are that they give us the abil-

MAY 26 – JUNE 1, 2017 | BUSINESS OBSERVER

BusinessObserverFL.com COLUMN from page 16

I’m much more contemplative now, and interested in the body of work I’m going to leave behind.

tenants roughly $60 million annually, according to figures compiled by Florida Realtors, a statewide trade group.

More specifically, office tenants that occupy 30,000 square feet of space at a cost of $28 per square foot pay $50,400 in rent tax each year.

With the reduction, which begins Jan. 1, those same tenants will pay $48,720.

“A lot of times, extra costs can be prohibitive, especially for family-owned companies,” says Matt Drews, director of commercial real estate at Sarasota-based Michael Saunders & Co. “For a small business owner, a lot of their money on a percentage basis goes toward their rent and associated costs, so if the state can reduce that then we think that’s a great idea.”

Interestingly, while other states have commercial rent taxes, Florida is the only state where it is built into the state’s tax code, Drews says.

Don Phillips | Phillips Development & Realty ity to take down a larger piece of land, typically, and often the sites are better,” Phillips says.

“And the multiple revenue streams allow us to do fewer overall projects and focus on doing more iconic projects.

From a personal satisfaction standpoint, it’s a much better place to be.”

In the self-storage arena, Phillips has partnered with Dean Jernigan, the chairman and CEO of Memphis-based Jernigan Capital, for financing and expertise.

Prior to forming his own firm four years ago, Jernigan led self-storage companies Storage USA and CubeSmart, both industry leaders.

“I like Don a lot as a person, and that’s my first criteria,” says Jernigan. “We work with about 30 program developers around the country, and they need to be people I trust and they need to be good developers, and certainly Don is both.

It’s really what we consider a perfect fit: He has a nice team, development experience with multifamily projects and we bring expertise in storage.

“We’re lucky to have found each other.”

Phillips says he’s drawn to self-storage because it’s “most closely aligned” with apartments, and because “there’s no end to the stuff that Americans accumulate and need to put somewhere.”

But Phillips’ projects won’t be your uncle’s self-storage variety. Many are multistor y, measuring as much as 100,000 square feet, with air condition-

ing and other amenities.

“He says he wants to slow down, but he has a lot of irons in the fire,” says Weatherspoon. “Don doesn’t hesitate when he sees an opportunity, never has.

The difference is now he’s focused on aesthetics, and he’s always had a very good eye for architecture and color and texture.”

One project Phillips won’t be doing is the long-planned Gas Worx mixed-use development in Ybor City.

After a squabble with Teco Energy and Tampa officials over environmental issues and zoning, Phillips sold the land for the project to Ybor investor Daryl Shaw. Phillips Development still may be involved in developing the 6-acre site, however.

“That site will be to Ybor what the Skyway Marina District will be to St. Petersburg, eventually,” Phillips says. “It’s the piece of land that stands between the eventuality of Ybor and the reality of Channelside.”

Phillips and his employees have enough to do without Gas Worx, though.

Today, the company is composed of seven people, including Phillips, squeezed into a 2,400-square-foot office.

Phillips has shrunk his debt exposure, too, to $3 million of non-recourse loans.

“The downturn gave me a lot of perspective,” he says. “And, it takes a lifetime to get where I am, at my age. I have the conceptual and financial ability now, which I’ve earned through a lot of trials and tribulations.”

McKibbon wins top Marriott award McKibbon Hospitality has been awarded Marriott International’s top hospitality manager award, the only company in Florida to receive the designation for 2016.

The Partnership Circle

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17

Award is given annually to only about a dozen companies nationwide that own or manage 10 Marriott hotels or more and operate at least three different company flags — such as Courtyard by Marriott, Fairfield Inn & Suites and Residence Inn by Marriott. Recipients also must meet performance standards set by Marriott.

McKibbon also received the award in 1995, the first year Marriott made the designations. This year’s winners were presented their awards in Los Angeles, at the Microsoft Theater.

“There’s a lot more competition now,” says Randy Hassen, president of hotel management at McKibbon. “But we’ve tried to stay true to our roots and take care of our associates and always provide excellent service to our guests.”

In 1995, McKibbon managed just five Marriott properties. Today the company operates 53 Marriott-flagged hotels, and has four others in development.

Although McKibbon was the only Florida-based lodging operator to win a Partnership Circle award for last year, Manatee County-based Benderson Development Co.’s Buffalo Lodging subsidiary, which is based in New York, also was recognized by Marriott.

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commercial real estate

18

BUSINESS OBSERVER | MAY 26 – JUNE 1, 2017

BusinessObserverFL.com

COMMERCIAL REAL ESTATE

See the Wizard

BY K.L. MCQUAID | CRE EDITOR

Land O’ Lakes firm hopes its new algorithm will provide easily accessible valuations for commercial building owners.

Rick Narkiewicz hopes the new algorithm he and partners at his Land O’ Lakes-based real estate technology firm have developed someday will be referred to as “the Kelly Blue Book of commercial real estate.”

Space Shifter LLC’s new Property Wizard, a free online platform that provides building valuations, doesn’t yet possess the street credibility that the automobile valuation service does.

But Narkiewicz says the service, which launched in early April and covers industrial properties in Hillsborough, Pasco, Pinellas, Polk, Sarasota and Manatee counties, will become an “ecosystem” for real estate professionals and participants from throughout the industry.

“The very first question I am always asked by a landlord who wants to sell their building is, what’s it worth?” says Narkiewicz, who created Space Shifter in 2013.

“So for users, we’ve created a frictionless experience to provide an opinion of value. It’s free. We don’t ask for your name, your address, your phone number. There’s no URL collection, either.

“We think people will appreciate that we’re not bugging them, and when they’re ready to sell, they’ll call us,” he adds.

Property Wizard interfaces with Google maps to provide building lo-

transactions | DEEDS/MORTGAGES The following real estate transactions more than $1 million were filed in Charlotte, Collier, Hillsborough, Lee, Manatee, Pasco, Pinellas, Polk and Sarasota county courthouses. The information lists the seller, buyer, amount of sale, previous price and date, mortgage and lender, if available, address and book and page of the document.

CHARLOTTE Buyer: NSA Property Holdings Seller: Joanne Lawhorn Address: 6221 Marlympia Way, Punta Gorda Property Type: Storage warehouse Price: $2,275,000 Previous Price: $395,700, November 2002 COLLIER Buyer: Marriott Ownership Resort Inc. Seller: 600 South Collier LLC Address: Naples Property Type: Timeshare Price: $33,296,345.66 Buyer: RC Grund 1 LLC Seller: Christine Desanzo

cations and pictures. Drone videos Narkiewicz and site designer Sourcetoad have imbedded provide additional views.

The site works like Kelly Blue Book: Users type in their address, the type of property, size, clear ceiling height, loading type and configuration and other pertinent data.

Property Wizard then calculates a valuation range based on the criteria entered and public records data.

“It’s a statistical model that we built,” Narkiewicz says. “That’s our secret sauce.”

Property Wizard marks the latest in a series of efforts to cauterize commercial real estate information with advancing technology and online mathematical algorithms in the way travel companies and other internet platforms have over the past decade.

Earlier this month, commercial real estate brokerage SVN Florida launched CRE Capital & Funding, a platform that uses data to connect potential real estate borrowers with more than 150 lenders nationwide.

Information from more than two dozen variables is sorted and filtered, and clients receive the names and contact information for the top three lenders that might best provide a loan.

“Think of it as the Priceline of commercial lending. I see this as a real game changer in the industry,” says

COURTESY PHOTO

RICK NARKIEWICZ, a senior managing director with commercial real estate brokerage Newmark Grubb Knight Frank and a principal in Space Shifter LLC, believes a new Space Shifter offshoot called Property Wizard will allow landlords to better understand the values of their buildings.

Jerry Anderson, SVN Florida’s executive managing director.

Property Wizard is quick to point out that its service is no substitute for an appraisal, which provides a more exact valuation of a property’s worth by professionals who are specifically trained in that area.

Nor does Narkiewicz believe the site could ever supplant a broker.

“You’re always going to need that human element in real estate,” he says. “Every building, every situation is different.”

For now, the site focuses exclusively on industrial buildings from 20,000 square feet to 200,000 square feet, which account for the majority of the market in the six counties covered.

By the end of the year, however, Narkiewicz hopes to expand the site to include retail and office properties as well, and hone the site criteria to include power capacity and designate value by zip code. He’s considering seeking a building’s net operating

income, as well, to help calculate the capitalization rate a property might generate in a sale.

“There’s no reason why we couldn’t eventually do the entire country,” Narkiewicz says.

For now, though, he’s hoping to persuade a major trade organization, such as the Society of Industrial and Office Realtors, the Building Owners and Managers Association or the National Association of Office and Industrial Parks to include Property Wizard on its website and help promote it to its members.

And he’s lining up local backers through test drives on the Property Wizard site.

“I would use it,” says John Jenkins, a CBRE Inc. veteran who now runs Jenkins Property Advisors Inc., a Tampa commercial real estate brokerage firm. “The software they’ve developed helps bring valuable information closer to the end user. It’s a great idea, and it works.”

BY STEVEN BENNA | CONTRIBUTOR

Address: Naples Property Type: Vacant land Price: $5,300,000 Buyer: 101 Building Development LLC Seller: 101 Development Group LLC Address: 101 Eighth St. S., Naples Property Type: Vacant commercial land Price: $1,912,000 Previous Price: $2,080,000, October 2006 HILLSBOROUGH Buyer: 1820 Massaro Boulevard LP Seller: Tampa East Industrial LLC Address: 1820 Massaro Blvd., Tampa Property Type: Warehouse Price: $15,200,000 Previous Price: $21,375,000, March 2007 Buyer: JPM Realcan LLC Seller: Sam & Pete Inc. Address: 8731 N. 30th St., Tampa Property Type: Multifamily units Price: $2,575,000 Buyer: North Edison Holdings

LLC Seller: Superior Enterprises of Tampa Bay Inc. Address: 909 W. Kennedy Blvd., Tampa Property Type: Restaurant Price: $1,600,000 LEE Buyer: Captiva 16560 LLC Seller: James and Justine Mullen Address: 16560/562 Captiva Drive, Captiva Property Type: Multifamily units Price: $5,712,500 MANATEE Buyer: Gopher Hill Farm Inc. Seller: Giuliano Florida Realty Development Group LLC Address: 28551 Gopher Hill Road, Myakka City Property Type: Agricultural land Price: $2,650,000 PASCO Buyer: Cottage Court Apartments LLC Seller: FL Village Square LLC Address: 10700 Buckingham Court, Port Richey Property Type: Apartment units Price: $6,700,000

Previous Price: $4,200,000, February 2015 PINELLAS Buyer: Lansbrook Fee LLC Seller: BR Carroll Lansbrook LLC Address: 3894 Lancaster Court, Palm Harbor Property Type: Apartment units Price: $81,352,500 Previous Price: $58,593,000, March 2014 Buyer: Everest Autumn Chase Holdings LLC Seller: Autumn Chase Condominium Association Address: 2200 Gladys St., Largo Property Type: Condominium units Price: $6,608,000 Previous Price: $1,300,000, September 2010 Buyer: 49th Avenue Apartments LLC Seller: Waterside Village LP Address: 3600 49th Ave. N., St. Petersburg Property Type: Apartment units Price: $5,700,000 Previous Price: $2,612,500, May 2000

POLK Buyer: Winter Haven Leased Housing Associates I LLC Seller: Not listed Address: Winter Haven Property Type: Vacant commercial land Price: $24,000,000 Buyer: Peace River Village Trust Seller: Peace River Village LLC Address: Bartow Property Type: Vacant commercial land Price: $2,216,000 Previous Price: $709,286, May 2014 SARASOTA Buyer: David W. Winsor Seller: Sarasota 2011 LLC Address: 3709 N. Tamiami Trail, Sarasota Property Type: Retail store Price: $4,500,000 Previous Price: $3,500,000, November 2011 Buyer: Centex Homes Seller: Buffalo-Northport Associates II LLC Address: North Port Property Type: Vacant land Price: $3,152,100

MAY 26 – JUNE 1, 2017 | BUSINESS OBSERVER

out of the office | EXECUTIVE SESSION |

BusinessObserverFL.com

19

BY MARK GORDON | MANAGING EDITOR

First Look Want to find and retain top talent? Look for one factor above all else, says a top HR executive: true grit.

I

t makes sense that Laura Sorensen has built a career helping big companies, in retail and hospitality, find the best people to work at a host of jobs.

Sorensen herself never shied away from work. As a teenager outside Syracuse, N.Y., she worked every where from a health club to Kaufmann’s Department Store, where she sold men’s suits. “I always had a few jobs growing up,” says Sorensen. “My parents always wanted me to get out of the house.”

Sorensen has turned that ethic into a career that recently landed her a plum spot: chief people officer at breakfastbrunch-lunch chain First Watch Restaurants, one of the fastest-growing restaurant companies nationwide.

Sorensen comes to east Manatee County-based First Watch from Orlando-based Darden Restaurants, where she oversaw human resources for the LongHorn Steakhouse brand. (Sorensen says she loved that gig despite one significant oddity: She doesn’t eat meat.)

Prior to Darden, Sorensen was the director of human resources at Fort Myers-based women’s retailer Chico’s FAS. Sorensen joined First Watch in September — the first-ever companywide human resources executive post. She recently sat down with the Business Observer to talk about her career and her new role. Edited excerpts follow:

CAREER

LIFELONG LEANER: Sorensen went for her MBA at the University of Miami right after she graduated from the school in 1994 with a degree in marketing. She was a college kid in shorts and flip-flops in a sea of mostly men in suits holding briefcases in her MBA classes. But the experience, beyond education, built her confidence and taught her tenacity. Sorensen paid her own way for the MBA. “You paid by the semester, so I knew I had to finish in one year,” says Sorensen.

STARTING OUT: Armed with her MBA, Sorensen thought her first job would be with a “big office and a window.” Instead she started out as a store manager at Federated Department Stores, working for the Burdines unit based in Miami. She had a staff of 18 people she recalls, and no one spoke English as their first language. But Sorensen says the experience helped teach her how to work well with others, and she eventually became one of the top managers in the company.

One key lesson there: By conforming to others, she earned her staff’s trust and loyalty.

TAKE A SHOT: Fort Myers-based Chico’s FAS executives reached out to Sorensen in 2003 for an HR spot. Her experience was mostly in operations, she says, “but they wanted to take a shot on me, so I gave it a chance.” The chain grew from 300 to 1,000 stores in

FILE PHOTO

LAURA SORENSEN was named chief people officer at east Manatee County-based First Watch in September.

Sorensen’s seven-year tenure. It also launched new lines, acquired brands and introduced new products. Says Sorenson: “I had the opportunity to work with so many new things.”

PEOPLE PERSON: The First Watch opportunity, like Chico’s, and later Darden, caught Sorensen off guard.

At the urging of a headhunter, she met with longtime First Watch executive Ken Pendery. Sorensen was familiar with the brand, having frequented an Orlando location with her family while with Darden. Meeting Pendery persuaded her to take another career chance. “He’s a sharp and astute businessman,” says Sorensen, “and he really cares about people.”

ROLE

FILL UP: Sorenson’s chief role at First Watch is to make sure the company has top managers and a bench of young up-and-comers who can rise to new roles. The chain has more than 300 restaurants in 26 states, including 95 locations under the Egg & I brand.

GOOD FINDS: Sorensen often conducts behavior-based interviews. She asks candidates to tell stories from

situations at past or current jobs, with the idea that the most accurate window into future performance comes from previous work in similar circumstances. Sorensen also puts a premium on grit. “It’s a combination of talent and perseverance,” Sorensen says. “It’s the person who will stick with something to see it through.”

INDUSTRY

ON THE TRAIN: Sorensen’s HR philosophy is centered on a quote from famed entrepreneur Richard Branson: “Train people well enough so they can leave, treat them well enough so they don’t want to.”

NO REST: The HR industry is in a technology-infused flux, especially in using social media to find and retain people. First Watch, for instance, recently launched a Twitter campaign that changes job ads every seven minutes.

“In the past, you just had to hang up a help-wanted sign,” Sorensen says.

“Now it’s about leveraging technology to reach folks. You have to constantly have a pipeline of talent. In this industry you can never sit back on your laurels.”

BUSINESS OBSERVER | MAY 26 – JUNE 1, 2017

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