north central florida business report august 2012

N O R T H C E N T R A L F L O R I D A

By Chris Eversole

Ed Poppell and Gigi Simmons are catalysts in transforming two

neighborhoods that are less than a half mile apart—Innovation Square and the Porters neighborhood.

The two areas seem to have little in common, but they both are on the move—part of a massive revitalization south of University Avenue at the center of Gainesville.

As head of the University of Florida Development Corp., Poppell’s goal is for Innovation Square to rival other global “live, work and play communities” that are hotbeds for bringing research to the marketplace.

Poppell predicts that Innovation Square one day will be nearly as significant to the Gainesville economy as the University of Florida is today, with a dense, thriving urban environment that

includes stores, restaurants and upscale condos as well as offices and laboratories for innovative companies. “It exciting,” he says. “We’re going to be another Austin, another Silicon Valley.”

As president of the Porters Community Neighborhood Organization, Simmons’ mission is to foster neighborliness and prosperity in the neighborhood in which her family has lived for four generations. The historic area between campus and downtown and just southeast of Innovation Square was the location of the first University of Florida football game and had thriving businesses in the days before desegregation.

“Now is the time for the Porters community to have an identity,” Simmons says. “It’s a lovely neighborhood that has been overlooked.”

By Erica Hurlburt

Places that provide graduate studies and continuing education courses throughout

the region are seeing a trend in the number of people enrolling. Whether they’re trying to change careers completely or just gain a competitive edge, both college students and professionals seem to be diversifying their training.

SWITCHING IT UPWalt Bratcher worked in the

construction industry for 20 years. He co-owned a drafting service and a construction company, both out of Ocala. As the industry started to tank, he sold off his ownership in each of his businesses and tried to make it on his own. He looked for jobs here

and there, but the construction industry was completely falling apart. He was fed up.

Bratcher decided to make a switch. He enrolled in some courses at New Horizons Computer Learning Center and gained the skills necessary to be hired as the IT manager at Prioria Robotics, Inc.

“Basically, the training I had there let me completely change career paths,” he says.

Bratcher’s story is one that has been seen time and again by those in the continuing

education world. “We’ve noticed a slight increase [in

enrollment], and some of that increase are people who have lost their jobs and are going back to school or are preparing themselves for when the market gets a little better,” says Mike Fallon, the community relations coordinator at Webster University in Ocala.

At the Ocala campus, which offers master’s degrees in business and counseling fields, Fallon says their goal is make those students more marketable in the new shape of the job force.

The same is true at New Horizons Computer Learning Center, where courses are geared toward training people interested in information technology.

“Most of our students are career-changers of sort,” says Ted Gilson, the student services director.

People are drawn to programs like that of Webster University and New Horizons because of something the two have in common: convenience.

AUGUST 2012

(continued on page 12)

(continued on page 11)

Workers apply metal shingles like those used in the original construction to the Gainesville Depot while a group of business leaders tour the building.

Chris

Eve

rsol

e

“We teach a lot of folks who are employed and want to increase their skills or knowledge and who want to

advance their place in their company.”— Lisa Gagne, continuing education and

corporate training coordinator, Santa Fe College

MANY GOING BACK TO SCHOOLAugust: a time of fresh notebook paper, scientific calculators and new pencils. It’s time to go back to school. But as the job market continues to be tough, the make-up of students flooding school grounds includes more than 6- to 18-year-olds.

Urban Renaissance Stretches Far and WideDiverse partners are working with the city to revitalize a broad and historic area of central Gainesville that extends to Depot Park.

InsideReal Estate Roundtable Discusses State of Local Housing Climate

20What Works for Gainesville Health and Fitness Owner Joe Cirulli

26SUCCESS STORY: Perry McGriff Approaches New Venture

29Members of the Chamber of Commerce receive a free subscription to The Business Report.

The NorTh CeNTral FlorIDa BusINess reporT AUGUST 20122

www.gainesvillebizreport.com 3


Content August 2012

Contact:PO Box 15192, Gainesville, FL 32604352-377-1402 (ph) l 352-377-6602 (fax)E-mail: [email protected]

07 Building BusinessDo You Know the Lifetime Value of a Customer?

15 In the NewsWhat the Healthcare Ruling Means for Small Business

28 Made in GainesvilleJackson Stoneworks

23 HR RxCoping with Personal Crises on the Job

09 In the NewsPlum Creek Update and More

17 Office SpaceStudent Maid Keeps ItFun–and Clean

29 Success StoryPerry McGriff

24 Calendar + TransactionsMeetings & Start-Ups

11 Cover StoryTech-Related Training in High Demand

19 In the NewsGRU’s Wrestles with Cost of Biomass and More

25 In the NewsGainesville Best for Business and More

26 What Works for...Joe Cirulli, Owner of Gainesville Health and Fitness

06 Editor’s ViewpointIs Gainesville Plugging the Brain Drain?

12 Cover StoryWorking Together Toward an Urban Renaissance

27 In the NewsGainesville Health and Fitness Announces Expansion

20 In the NewsRealtor Roundtable

PresidentKevin Ireland

Editorial DirectorMaghan McDowell

Creative DirectorHeather von Klock

Senior WriterChris Eversole

InternsSarah KinonenChelsea LipfordTaylor GonzalezBradley OsburnJustin RevueltaRachel SaleAlexandria Ugarte

Senior Account ExecutivePete Zimek

Account ExecutivesCarolyne SaltBrandon Stern

Distribution ManagerRyan McDowell

Operations ManagerLori White

WritersGarry BoulardErica HurlburtHeather van Blokland

Contributing ColumnistsVictor HazyJohn SpenceStephen Wycoff

PhotographersElliott DoolittleChris EversoleBradley Osburn

Copyright 2012 by Broad Beach Media.

17 Office Space:Student Maid

29 Success StoryPerry McGriff

N O R T H C E N T R A L F L O R I D A

Bradley Osburn


M onths ago, I was in a meeting with Chamber Chairman Michael Gallagher, when he briefly mentioned that city leaders were doing their best to solve one of

Gainesville’s biggest challenges: the brain drain. Well, I’m excited to report that they just might be well on their way.

For years, Gainesville had the University of Florida, and then it had its residents. They didn’t interact much past the four-year mark. Those who did get a job locally after graduation didn’t stick around for long. Some came back to raise families years later.

It was pretty evident when I began working after college that I was the odd one out. With each graduation rotation, friends decamped to more prosperous pastures while I re-introduced myself to new friends (who were the same age as my old friends, while I was only growing older) and re-acquainted myself with the newest club or restaurant.

Gainesville is still a town full of change, both with new faces and new businesses, but I’m starting to notice a different kind of change: It’s become easier to make, and keep, friends my age. And I don’t mean grad students. I mean people who live and work here, period—not just “in the interim.” At first, I wasn’t sure if it was me, or them.

Turns out, it wasn’t just me. Recent grads are starting to stick around, and it’s both because they realize Gainesville offers a high quality of life and because businesses have more opportunities for them.

Take, for example, Prioria Robotics (page 13). The company could have out-grown Gainesville, but it stayed for these reasons and more.

The other night while I was picking up some dinner downtown, I ran into a group of friends returning from a small entrepreneur roundtable hosted by the Chamber of Commerce.

Among them was Grooveshark co-founder Josh Greenberg. I asked him about the state of the infamous “four-year pit stop.” He agreed that the tides had begun to turn.

When he started the music-sharing and -streaming website in 2006, he had no intentions of making Gainesville home base; he was waiting to save enough money to move to Silicon Valley. Now, he says, he and his growing team are happy to live in a town with both a “cool quality” and a low cost of living—and a place that’s become a welcoming place to raise capital and pitch new ideas. And, he says, recent comparisons to areas like Silicon Valley are a good thing.

“The ‘brain drain’ isn’t a new issue, but Gainesville has started to become more attractive to the start-up and entrepreneurial community,” he said, citing the popular monthly “start-up hour” where he regularly meets with those like Augi Lye, founder of another high-caliber tech employer, Trendy Entertainment.

I also met Fabulous Coach Line founder Ray Land, who was a finalist in BusinessWeek’s 2010 “Best Young Entrepreneurs” competition and who says Gainesville has become an “up-and-coming scene” for young entrepreneurs.

“When I started my business at 17, I often felt alone, that there weren’t many other young people in business—and that was true then,” Land says. “Groups like the roundtable that Kristen (Hadeed, of Student Maid) and Josh (of Grooveshark) are putting together really provide something much nicer than you find in larger metros, and that is close relationships.”

The Business Report recently interviewed SumTotal president John Borgerding, who moved the company from Silicon Valley to Gainesville. When they made the announcement, others in the industry asked, “Why would you do that? You can’t make that work.” Well, in two years,

they’ve added more than 150 employees.

“We actually made it work,” Borgerding said. “We found great talent here, and we continue to grow the business and to be successful. It’s a great testament to the community.”

I recently met with leaders from the local United Way, who shared an exciting new program that starts next month to help foster our next generation of business leaders. It’s called Boardroom Basics, and it’s designed to help young professionals feel confident in accepting a position of leadership as a board member, and to provide them with the baseline skills to be successful in that role—especially in serving non-profits.

Perfect timing, no?And, if Gainesville ends up working out in the long run, I’ve

got good news: AARP The Magazine just named Gainesville one of the 10 best places to retire on a budget, thanks to our high quality of life and low cost of living.

( Editor’s Viewpoint )

by Maghan McDowellIs Gainesville Plugging the Brain Drain?

For exclusive up-to-date local business news straight to your inbox, subscribe to The Insider.

Visit www.gainesvillebizreport.com to sign up.


I am amazed at how often I meet with a business owner and ask them what the Lifetime Value of a Customer (LVC) is for one of their “ideal” customers and they have no idea. In case you’re not familiar with this concept, the goal is to

determine roughly what a loyal customer would spend with you over their lifetime of purchases with your business.

To get a very, very rough idea of what the LVC is for one of your customers, take their average purchase amount, multiply it by the number of times they purchase from you in a year and then multiply that by the total number of years you expect them to be a customer.

For example, I have been eating breakfast at Bagels Unlimited in the 34th Street Plaza for nearly 17 years (I have chased them from location to location as they’ve moved).

When I’m not traveling, I typically eat there once or twice a week and then take my wife in on both days on the weekend. On average, I spend about a hundred dollars a month eating breakfast at Bagels Unlimited. Multiply that by 17 years and you see that so far, my value to that business has been about $20,400.

There is a good chance that as long as Bagels Unlimited stays open, I will be going there for breakfast (and lunch sometimes) for another 17 years—hopefully longer. Therefore,

my total lifetime value as one of their loyal customers is roughly $50,000. Yikes, that’s a lot of bagels, egg whites and iced tea!

This estimation does not take into consideration the fact that I have brought many people there for business meetings and referred many of my friends to Bagels Unlimited, so there is a good chance that I have helped bring them an additional $20,000 or $30,000 of lifetime business.

In the same Plaza is another business I frequent: Aquatropics. I have three koi ponds in my backyard and have been buying fish, plants, fish food and other supplies from them for 15

years. I spend about $60 a month for everything I need for my ponds, which means in the last 15 years, I have spent just less than $11,000 at Aquatropics.

Again, as long as they stay open, there is no reason in the

world to think that I will not continue to buy $60 a month worth of products from them for the next 15 or 20 years. That means that every time I walk into their shop, they should think, “Here comes a loyal customer who’s going to spend $25,000 or more with us to take care of his Koi ponds.”

You can do the same thing with my dry cleaner, lawn service and car dealership. Actually, if you are a loyal customer to a specific car dealership, there’s a good chance that your total lifetime value to that dealership is anywhere from $250,000 to several million dollars if you refer a number of your friends to buy cars from them.

The reason I tell you this is to help you realize how valuable your best customers can be to your business and to show just how important taking extremely good care of them is (like Bagels Unlimited and Aquatropics takes of me). If you look at single transactions, mustering the energy to deliver superior customer service may be hard, but if you think about the total LVC of a loyal customer, you realize that you cannot afford to give them anything less than your very best!

DO YOU KNOW THE LIFETIME VALUE OF A CUSTOMER?

( Building Business )

John Spence is the author of Awesomely Simple – Essential Business Strategies for Turning Ideas into Action. He is an award-wining professional speaker and corporate trainer, and has been recognized as one of the Top 100 Business Thought Leaders in America and also as one of the most admired Small Business Experts in the nation.

By John Spence

TAKE THEIR AVERAGE PURCHASE AMOUNT, MULTIPLY IT BY THE NUMBER OF TIMES THEY PURCHASE FROM YOU IN A YEAR AND THEN MULTIPLY THAT BY THE TOTAL NUMBER OF YEARS YOU EXPECT THEM TO BE A CUSTOMER.


ON THE MOVE

FloridaWorks has been awarded a grant worth $11,954,813 from the Workforce Innovation Fund. The program is designed to expand innovative strategies to help Americans return to work.

Florida Credit Union has appointed Darleen Morgan to its Commercial Lending Team as the new AVP/business relationship manager.

The Department of Veteran Affairs has appointed Thomas Wisnieski to the position of director for the North Florida/South Georgia Health System. He will oversee 4,800 staff members and the care of 121,200 Veterans.

Campus USA Credit Union has raised $1 million through its Children’s Miracle Network VISA Platinum Card since it began the program in 1999. Children’s Miracle Network at Shands receives about $120,000 annually from the credit union, which joins donations from all over Alachua County and its surrounding neighbors.

Ozean owner Alex Patton has announced a decision to focus his company on political consulting exclusively, marketing the firm’s services to Republican candidates and conservative causes.

Bosshardt Realty associates Linda Rabell, Henry Rabell, Patrick Currie, Craig Wilburn and Susan Baird were named to the honorary position of Senior Vice President on May 31. Broker-Associate Bruce Rider was named Vice President.

G.W. Robinson Homes President Gay Robinson has announced that Bosshardt Realty Services LLC will represent the company in marketing and sales. The new sales team will consist of Linda Thomas, Mandy McLean, Terry Lehman, Linda Rabell and Anne Koterba.

Christopher Johnson, executive director and co-founder of the North Central Florida Nonprofit Center, has been awarded the 2012 Black Man Can Award in the nonprofit category. The award is presented by Black Celebrity Giving and The Black Man Can for positive contributions to society.

The Gainesville Community Foundation announced that it has changed its name to the Community Foundation of North Central Florida. The name change reflects its new focus of serving Alachua, Levy, Gilchrist and Branford counties.

Hampton Inn Gainesville and the Best Western Plus Gateway Grand have been awarded 2012 TripAdvisor Certificates of Excellence, honoring their hospitality and consistent outstanding reviews on TripAdvisor. Each recipient must maintain a rating of four out of five during a 12-month period.

The Accreditation Commission for Health Care has awarded Haven Hospice with accreditation after peer review by a private nonprofit organization. ACHC said that Haven has demonstrated a commitment to quality care and services in compliance with ACHC’s nationally recognized standards.

Linda McGurn and David Day have been honored by The Florida Economic Development Council for their contributions to Florida economic development. The two lead the development of the Innovation Gainesville Angel Network, which allows local technology companies to find local funding sources.

Current Assistant City Attorney Nicole Shalley has been chosen as the city commission’s choice for city attorney. Shalley is set to replace Marion Radson, city attorney for almost 30 years.

Copytronics, originally based in Jacksonville before expanding out to other Florida cities including Gainesville, is celebrating 40 years in the copying business. Copytronics specializes in color and black and white copies, as well as printers and fax machines, and works in Gainesville with small businesses and larger institutions such as Santa Fe College.

NEWS BRIEFS

( In the News )N

EWS

Darleen Morgan

Global Leadership SummitThe Global Leadership Summit may be sold out in Chicago,

but you can view the event in Gainesville, joining more than 450 cities worldwide.

The Family Church in Gainesville, at 2022 SW 122nd Street, will host the event on Aug. 9 and 10 from 10am to 6pm. Speakers include author Jim Collins, educator Geoffrey Canada, pastor Mario Vega and former Secretary of State Condoleeza Rice. For a full list of speakers and more info, go to http://www.willowcreek.com/events/leadership/speakers.asp.

University of Florida to Receive Blue Tree Installations

Come October, walking through the UF campus will be a more colorful experience, thanks to artist Konstantin Dimopoulos and his blue tree installations.

Spread across the campus from the stadium to the Reitz Union and down 13th Street and University Avenue, the

installations will include cellphone-guided tours, thanks to the City of Gainesville. The different tree species will be painted using what Dimopoulos calls biologically safe pigmented water, which will naturally fade, allowing the tree to revert to natural coloring.

UF Researchers Discover Plant Root Defense Chemical

Researcher in the University of Florida’s Citrus Research and Education Center have discovered a natural compound called pregeijerene, which, when released by plants in response to a root attack, attracts wormy nematodes to attack the pests.

The chemical is useful in a variety of agricultural habitats, as researchers in Florida citrus groves and a blueberry field in New Jersey both found that the chemical controlled pest larvae up to three times more effectively than without it.

Study author Larry Duncan said in a press release that citrus spraying to control Asian citrus psyllids, which also helps to control root pests, will not be sustainable in the long term, so researchers and farmers will eventually need to address the problem directly, and pregeijerene could be the answer, helping to protect crops in many parts of the country.

Ed Dix has seen study after study about East Gainesville with a few improvements here and there but no major changes. Now, he’s a co-author of a recent study—along with 30 other members of the Envision Alachua Task Force—and he’s optimistic about the turnaround of much of eastern Alachua County. That turnaround will focus on creating manufacturing, agricultural and research jobs in the area.

“For the past 20 years, there would be a feel-good meeting every other year, but nothing like this ever happened before,” Dix says. “I feel a genuineness that will empower people, providing job training and employment.”

The difference between the Envision Alachua study and its predecessors is that the study’s sponsor, Plum Creek, owns a major portion of the land under study, and it’s in a position to implement the study’s recommendations.

Plum Creek is a real estate trust that not only is the largest land owner in Alachua County, holding nearly 15 percent of the county land, but also is the largest landowner in the United States.

Plum Creek created the task force so that it could create a consensus among a diverse group of people about the future use of its 65,000 acres of holdings in the county, says Todd Powell, the company’s senior director of real estate in Florida. The task force held six meetings, conducted the community workshops and sponsored four educational forums over the past year.

Plum Creek is eager to implement the task force’s recommendation that it focus its future development on 10,000 acres between Hawthorne and Windsor, putting its remaining land in the county into conservation, Powell says. This approach is better than developing the land with one home per acre, as the county’s comprehensive plan allows, he says. “Nobody wants to see thousands of five-acre lots,” Powell says.

The task force recommended gearing the first step of development toward creating jobs, with housing, stores and

schools following later. “We have to create the jobs in order for people to be able to buy homes,” Dix says.

The University of Florida can play a big role in the eastern area of the county, says Pierce Jones, the director of the resource efficient communities and an advisor to Plum Creek. Jones says that UF’s Institute of Food and Agricultural

Sciences can use the area for research on increasing crop yields and developing new crops. “I see the possibility of IFAS developing a research park in the area,” he says. “We’re fortunate to have this land right under our nose.”

UF is already involved in agricultural development there, Jones notes. Alto Straughn, a farmer and Extension Service program specialist, is growing 700 acres’ worth of blueberries there—a crop that he developed with UF’s help.

“I can see other forms or agriculture, including pecans and corn, flourishing in the area,” Jones says.

Plum Creek plans to develop 1,800 acres along State Road 121, which it has annexed into the City of Gainesville, Powell says. In both the 10,000 acres in east county and the 1,800 acres in Gainesville, Plum Creek will set aside considerable land for preservation.

Plum Creek is forming a technical advisory committee, which will include members of various local, regional and state governmental

agencies, to develop recommendations for implementing the Envision Alachua plan. The advisory group will work with the task force on what is known as a sector plan, a document outlining future land use in a coordinated fashion, Powell says. As part of the sector plan, Plum Creek would transfer its development rights from the conservation land to the land that would be developed.

“This is one of the largest conservation play in the state’s history,” Powell says. “It’s significant statewide.”

—Chris Eversole

Update: Plum Creek

This map shows the areas the task force recommends for development.


( Trends )

TECH-RELATED TRAINING IN HIGH DEMAND(continued from cover)

A t Webster, courses are in the evening, and at New Horizons, they’re online.

“It’s doable because you can have a life and go back to school,” Fallon says.

Courses are taught at an accelerated rate, which is helpful when the people taking the classes are in need of a job.

In some cases, students used to be in the military and are learning ways to apply their training to a job in the civilian world.

For some, going to school for a master’s is not just about convenience and career change; it’s a life change.

“Some of our students have had other careers but realized something’s missing, and they come looking for it here,” says Bruce Pagel, the director and CEO at Dragon Rises College of Oriental Medicine.

In the past two years he’s been there, he’s noticed growth. Though the college hasn’t hit its 20-student goal yet this year, both the 2010 and 2011 classes were full. Pagel says the students range in age from their 20s to 60s, but one thing they all have in common is an interest in holistic medicine.

Enrolling at Dragon Rises is not something students do on a whim or just because they want a little extra training. This program is more involved than some others in the area.

“It’s a rigorous curriculum,” Pagel says. “It’s 40 months, and it’s a masters program, and it’s no kidding, college.”

GAINING A COMPETITIVE EDGEThe trend is not specific to career changers. There are a lot of

people who continue their education because they have to keep certifications up to date, they want to be more competitive or in some cases, are required by their employer to have some kind of extra training.

Grooveshark University originally began as a way to give prospective employees the kind of computer training they’d need on a daily basis.

“We were having trouble finding developers,” says Paulo Da Silva, a senior software engineer with Grooveshark.

He and his co-workers were noticing that what University of Florida students needed to know and what they were actually learning in class weren’t adding up. They decided to create a way to bridge that gap and provide realistic, hands-on training. What started as a small training course with about 40 applications has grown within a couple years to a program with nearly 250 applicants.

“We were originally targeting UF students, but we have a lot of people now who are professionals who want to update their skills or learn something new,” Da Silva says.

Lisa Gagne, the continuing education and corporate training coordinator at Santa Fe College, has noticed a similar trend.

“We teach a lot of folks who are employed and want to increase their skills or knowledge and who want to advance their place in their company,” she says.

Santa Fe College offers continuing education courses to anyone in the community who would like to obtain licenses for specific fields or learn something new.

“We work with a lot of entrepreneurs in the community who are starting new businesses,” Gagne says. “We have a whole section of classes to help them out.”

Their corporate training is tailored for businesses in the area based on what those businesses would like their employees to know.

She’s seen a demand for technology-related training because the industry is evolving at a rapid pace.

“Social media is big,” she says. “A lot of companies want to make sure that for marketing they’re taking advantage of all aspects of social media.”

For those at work in the world of technology, taking classes on a regular basis is not only recommended. It’s required to keep up. Walt Bratcher, who has taken nearly 20 classes at New Horizons and landed the job he was seeking, says he doesn’t see himself slowing down his training any time soon.

“With new technologies coming out and different things getting implemented, one person can never know everything,” he says.

Elliott Doolittle


( Cover Story )

WORK ON INFUSION TECHNOLOGYCENTER TO BEGIN IN DECEMBER

(continued from cover)

T he work on Innovation Square and Porters are part of larger efforts to revitalize the area between South Main Street and the UF campus. Activity includes:

Constructing the 32-acre Depot Park, which will include • a playground, pavilions and a promenade around a pond that will collect storm water from downtown.Building the Cade Museum for Creativity and Invention.• Rehabbing the historic Depot Building, the oldest part of • which was built around 1860.Converting Depot Avenue into a spacious thoroughfare • with extensive landscaping.Creating a network of bicycle paths that converge at the • upgraded overpass at the intersection of Southwest 13th Street and Archer Road.

The City of Gainesville is taking the lead is building the infrastructure—the streets, utility lines, bike paths and storm water drainage—that are the underpinning of the new development.

The city has been planning the improvements for many years through various agencies, including the Community Redevelopment Agency, GRU and the Public Works Department. Many of the projects are being funded by a blend of city funds, along with federal, state and private dollars.

“Everything ties together, and it’s all coming together magically,” says Diane Gilreath, a project director with the CRA.

While Innovation Square has been praised as a key to keeping Gainesville competitive in attracting innovative firms, Depot Park helps make the city attractive as well, says CRA Director Kelly Fisher.

“We’re competing worldwide for creative class people,” she says. “You can’t understate the importance that Depot Park, with all its green space, and the Cade Museum provide as pieces of the puzzle that make us competitive.”

WILL NEWCOMERS BE ATTRACTED?For Innovation Square, Porters, South Main or Depot Park

to reach their full potential, new investment needs to come.For now, the following is occurring:Innovation Square, which now is anchored by the Florida

Innovation Hub, has two major projects slated—the Infusion Technology Center and the UF INSPIREation Hall.

Porters is seeing some new homes, including a cluster of ones the city built as the Porters Gardens development, and property owners are making improvements.

South Main is becoming the home for new businesses and organizations, including The Warehouse restaurant, Citizens Co-Op, Solano Cycles and the Civic Media Center.

Trimark Properties is a major investor in Innovation Square. Its 150,000-square-foot Infusion Technology Center, which will share an atrium with the Innovation Hub, will be three times the Hub in size, Poppell notes. Construction is scheduled to begin this December and be completed a year later.

The building will feature ground floor space for retail, restaurants and cafes, along with laboratory and office space for innovative companies.

Trimark also plans to build the UF INSPIREation Hall. This dormitory for entrepreneur-minded UF students will have a 150-person meeting room. Completion is planned for 2014.

Some real estate agents believe Innovation Square needs to become more tangible before the market for upscale condos develops.

“The area between downtown and UF isn’t urban enough yet,” says Lauretta Fogg, an agent with Coldwell Bank M.M.

Parrish Realtors. “I had a buyer from Washington, D.C., who insisted that she wanted to live downtown. She wanted that urban lifestyle, where she could walk to everything.

“I said, ‘You’re not getting it. There’s no butcher. There’s no baker. There’s no dry cleaner that you can walk to. There’s not a supermarket.”

A supermarket is in the works, Poppell promises. Investors are also seriously considering upscale residential developments in Innovation Square, he says.

Additional businesses along South Main Street and in the Depot building are likely to be owned by local people who have a track record in business, says Beau Beery, president of Coldwell Banker Commercial M.M. Parrish Realtors.

One local entrepreneur who looked at the Depot building during a recent CRA-sponsored tour was Frank Ruffino, owner of Blue Highway Pizza. While people like Ruffino, who know the community and have a following, may well be attracted to the South Main and Depot Avenue area, out-of-town retail stores probably won’t be, Beery says.

“Retailers look at the demographics first, and the demographics look bad to a company like Talbots,” he says.

The demographics that Beery has in mind include the spending power of people living within a three-mile radius of Main and Depot. The average spending per person is $971 annually, giving it a ranking of 41 on an index in which 100 represents the national average in spending, Beery notes.

“The area can become a cool place to go to eat and stroll around, but my wife isn’t going to drive there to shop with two kids, when the Oaks Mall is much more convenient.”

CITY INVESTMENT PAVES THE WAYThe city is pouring tens of millions of dollars into capital

improvements in both the Depot Corridor and Innovation Square Areas, ranging from cleaning up soil contamination to turning Depot Avenue into a landscaped boulevard.

The most expensive work is the $20 million clean-up of pollution at the Depot Park site and replacement of soil from the days of Gainesville Gas Co., which GRU funded. Another $2.7 million is going to remediation from the rail days, including removing arsenic-contaminated soil and replacing it with clean fill dirt.

Aside from the environmental work, the city is investing $4 million on Depot Park. The budget for all phases of the Depot Avenue work, stretching from 13th Street to Williston Road, is $12 million.

The city has completed the first phase of the Depot Avenue project, running from Main Street to Southeast Seventh Street. A phase from Southwest 11th Street, near P.K. Yonge Development Research School, will begin before the end of the year.

GRU is helping bring the area sewer and water mains from

Members of the Porters Community Center Organization work with organizations from throughout the community. Pictured on the top row are Lakesha Hobdy of the University of Florida’s HealthStreet program and Community Center Organization President Gigi Simmons. At bottom, are Secretary Dave Miller, Vice President Stephanie Seawright and Gainesville Police Department Officer Charlene Collins.


South Main Street to the 13th Street-University Avenue intersection into the 21st Century. The project is needed to increase building densities from an average of five units per acre to as much as 100 units per acre.

“We want to get in front of the curve in helping prepare the area for the development that’s planned,” says GRU’s David Richardson.

ENVIRONMENTAL PAYOFFIn addition to removing pollution, the Depot Park

development is providing storm water retention and treatment for a 100-acre downtown area.

The Depot building’s restoration project relies heavily on original wood salvaged from the building. The major section of the restored depot will operate without air conditioning, relying on the building’s ventilation and paddle fans. This area will include a museum and a restaurant with a large area with open-air seating under the Depot’s roof.

The combined environmentally friendly features contributed to the 10,200-square-foot building being in line for a gold designation in the Leadership in Energy & Environmental Design (LEED) certification program and possibly qualifying for a platinum designation.

SENSE OF COMMUNITY STRONG IN PORTERS

The Porters Community Center is a beehive activity. Programs include a teen lounge, after-school programs, gardening, aerobics classes, creativity training sponsored by the Cade Museum and activities with the nonprofit organization Girls to Young Ladies.

People are working together to erase the stigma that the

neighborhood had in past years as a haven for crime and drugs, Simmons says.

Kenneth Ross, a city recreational aide who works at the community center, applauds Porters’ growing sense of community. “People are comfortable walking around and sitting in front of their homes,” he says.

Simmons welcomes the movement of more whites into Porters. “I see sustainability, not gentrification,” Simmons says. “Everyone is partnering with everyone else.”

Prioria First Firm in Power DistrictNortheast of Depot Park work has begun

in the renovation of a 22,000-square-foot former GRU warehouse into what will

be the headquarters for Prioria Robotics, which develops and manufacture unmanned aerial vehicles.

The warehouse became available when GRU moved its operations center from south of downtown to North Main Street. The Prioria headquarters is the first project in what the city is calling the Power District.

Prioria has outgrown its current space in downtown, and it was being recruited by communities in Georgia, North Carolina and Canada.

Prioria began its life as a start-up in downtown Gainesville. It chose to stay, once it saw the need for more manufacturing space and a more secure location, because of Gainesville’s community support, innovative economic development structure and the talent afforded through the University of Florida and Santa Fe College.

The new facility will open up 40 new positions while retaining the company’s current 31 jobs. Prioria, which offers an average wage of $67,588, is making a capital investment of $2 million.

“It’s very exciting that Prioria, a local start-up company, will continue to expand and invest in Gainesville’s the urban core,” Mayor Craig Lowe says.

( Cover Story )

DEPOT PARK MASTER PLAN


On June 28, the Supreme Court upheld the landmark Patient Protection and Affordable Care Act, which will require individuals and businesses to purchase health insurance or face penalties to fund government health care. The only part of the PPACA the court limited was the federal government’s ability to withhold Medicaid funding from states if they did not expand Medicaid eligibility under the new legislation. We asked insurance expert Victor Hazy to translate what this might mean for you.

WHAT DOES THIS MEAN FOR MY SMALL BUSINESS?The law does not affect your small business right now unless

you’re trying to get tax credits, which I hear is a nightmare. Beginning in 2014, small businesses with fewer than 50 full-time employees will not face a penalty for not providing health insurance. Businesses with 50 or more employees will face penalties of $2,000 to $3,000 per worker each year, in what the Supreme Court upheld as a tax.

WHAT IF I’M TOO SMALL FOR THE PENALTY AND DON’T PURCHASE COVERAGE?

Nothing until 2014. But should an individual or family not covered by health insurance choose not to purchase it, then the individual mandate includes the following penalties:

2014: $95 (person) or $285 (family)•

2015: $325 or $975•

2016: $695 or $2,085; or 2.5 percent of income (whichever • is more).

The ACA requires insurance companies to cover people without regard to pre-existing conditions. The premiums they collect from those who are currently uninsured are meant to cover those who are sick.

What remains to be seen is if the “young invincibles” will decide to pay the smaller penalty instead of purchasing the more expensive insurance.

WHAT IF I HAVE 49 EMPLOYEES?Businesses with up to 49 employees are not affected at all,

but I can see the games that are going to be played now. Some businesses may even be willing to split themselves in order to avoid the penalties.

WILL THE ACA INCREASE OR DECREASE THE COST OF HEALTH INSURANCE?

In my opinion, the cost will increase. There are no free

lunches, and somebody has to pay for all of this. Rates have risen 20 to 25 percent since the removal of the cap on health policies and the rule that now allows children to stay on their parent’s plan until age 26.

With many older people being added to plans, the insurance companies are going to write really high premiums for them because they’re claims waiting to happen. Insurance companies want young healthy people who aren’t getting sick, but the older, sicker citizens will almost certainly get the insurance since they are the ones most likely to use it.

Insurance companies are concerned that the ACA limits older people’s premiums to three times what younger people would pay. They say they need to charge five times more to be actuarially sound, meaning that insurance companies will have to take on more risks to cover the elderly.

HOW WILL HEALTH MAINTENANCE ORGANIZATIONS (HMOs) INTERACT WITH THE ACA?

HMOs are completely compatible with the ACA. An HMO features a cost-containing gatekeeper doctor who controls access to specialists. It’s important for people to talk to an independent agent for options, because generally people dislike HMOs for their lack of choice.

WHAT ARE MY OPTIONS AS AN EMPLOYER OR AN INDIVIDUAL FOR PURCHASING MY OWN COVERAGE?

You’ll have all of the choices you currently have, but you have to remember that the devil is in the details. A low deductible means a high premium. You might try a health savings account, which is money saved for health purposes. It’s tax-free going in and coming out, as long as it is used for a health-related expense.

WHAT CAN I DO NOW?My advice for any small business or individual is that if you

don’t already have health insurance, then start looking now. Now is the time to find out what your options are and to get a plan before more regulations go into effect.

( In the News )N

EWS

T he Supreme Court’s ruling on the Patient Protection and Affordable Care Act may have settled the

constitutionality of President Obama’s signature legislation, but what hasn’t been settled is what it means exactly for the self-employed and entrepreneurs.

“I’m worried,” says Percy Days, a Gainesville entrepreneur who launched his own IT management service three years ago. “I’m looking at what sort of coverage I can actually afford.” Days currently pays his own medical expenses.

“The truth is that even the least expensive coverage is probably going to be more than I can afford,” Days says.

This is what the new law indicates: Starting in 2014, everyone, including the self-employed, must have qualifying health insurance. Otherwise, they must pay an excise tax of at least 2.5 percent of adjusted gross income. However, if those who are self-employed earn less than four times the poverty level, they will likely qualify for health care subsidies.

The penalty and/or tax will start in 2014 at $95 for anyone making $9,000 to $37,000 and will increase to $695 by 2016.

Self-employed feng shui specialist Teri Aguiar hasn’t made a decision one way or the other yet. Aguiar currently visits the offices of the Alachua County Health Department when she has a health issue. “I’m somewhat nervous,” Aguiar adds. “I keep wondering, if I can’t afford the coverage, what will happen?”

Such questions are not unique to the entrepreneurs and the self-employed.

Because a penalty imposed by the Internal Revenue Service for not having health care coverage will not be collected until 2014, many of the self-employed may decide to forego purchasing insurance for at least the next year. “I don’t think you’re going to see a massive number of those who are self-employed getting insurance immediately,” thinks Kristin Oberlander, a spokesperson for the National Association for the Self-Employed. “Nor do I think will there be that many people walking away from being self-employed because of this.”

“Most of our members in an earlier survey said that they were going to hold out and see what kind of fines they may be looking at,” she says.

Stephanie Travis, a self-employed accountant who started One Source Accounting in 2005, thinks that despite the challenges of the new law, most self-employed people will endure. She spends roughly $1,300 monthly on coverage for herself and one employee.

“They may be upset about new laws or changes in their industry or even the economy,” Travis says. “But most self-employed persons can outsmart such things.

“If they weren’t that way, they probably wouldn’t have become self-employed in the first place.”

Victor Hazy is the president of Insurance World of Gainesville and an independent insurance advisor. Victor teaches “Understanding Medicare” classes and writes the Insurance World blog.

What the Healthcare Ruling Means for Small Business

As told to Bradley Osburn

By Garry Boulard

What to do if you’re SELF-EMPLOYED


OFFICE SPACE( Office Space )

S tudent Maid began when founder Kristen Hadeed started cleaning houses during college to make money. Three years later, the cleaning company that employs students with top GPAs has become a Gainesville success story. Student Maid was named the 2010 and 2011 “Leading Women’s Enterprise” by the Gainesville

Area Chamber of Commerce and recently moved to a new headquarters to accommodate an expansion out of the Santa Fe’s Center for Innovation and Economic Development. They invited us into their “top-secret” digs to share how they “Clean with Class.”

The students will often study in the back room or bring in their dogs. The “Wow Department” is filled with art and craft materials that employees use to create small gifts for both clients and fellow employees. Student

Maid provides snacks—from cupcakes and muffins to a smoothie station—so that employees stay energized and take fewer breaks.

Student Maid has been in its current office since

September. The new space’s warehouse-like location off of Archer Road was

ideal due to its proximity to student (and employee)

apartments and its storage space for cleaning

supplies. The discreet exterior is intentional, and adds to the “hidden club” atmosphere that’s always

open to employees. Student Maid employs 40 to 60

students year-round, with a requirement of a minimum

3.5 GPA, but during the summer they may hire up

to 300 high school and college students. For special

occasions and to train new hires, Hadeed’s present

employees can have their own home cleaned.

The “Wow Wall” dominates the front office. Employees are encouraged to wow their clients and compliments are out in front for recognition and motivation. Hadeed

encourages creativity and entrepreneurship; Student Maid’s book club reads business books. Student Maid presents scholarships of $250 to employees with bright ideas.

Hadeed, 24, and manager Nichols, 23, are the bosses, but they’re just as likely to have fun as everybody else. Nichols once brought a friend’s dog into the office and pretended that she’d found an office pet. The office DJs were brought in after a staff vote. (They vote on everything). They spin from 9am to 6pm every day with a random office soundtrack. Sometimes, the music gets so loud that they jokingly use an air horn to indicate when they’ve sent an email.

—Bradley Osburn (text and photos)

Elaina “E-Money” Nichols started out as a cleaner. Every manager has been out in the field and cleaned before moving up. Student Maid has an impressive record of employee retention, often working with students from their freshman year to graduation. Hadeed says that while the industry average is only three months, Student Maid retains employees from two to four years.

STUDENT MAID


NEW

S BR

IEFS

Santa Fe II Habitat for Humanity Ribbon Cutting

Alachua Habitat for Humanity held a ribbon cutting for the Santa Fe II home on July 19, with partners Bank of America and the City of Gainesville.

The three-bedroom, two-bathroom, 1,248 square-foot home was built in the construction bay of the Charles R. Perry Construction Institute on the Santa Fe College northwest campus by Santa Fe professor Fred Hart’s construction classes.

The pieces of the home were transported to their permanent residence, at 3900 SE 13th Terrace, by flatbed truck and assembled on site. Hart’s classes performed the majority of the work, with help from Santa Fe’s Student Builders Association, SF Student Government and Habitat for Humanity.

SEBIO Announces Semi-Finalists for 2012 BIO/Plan Competition

Southeast BIO has announced the 10 semi-finalists for the 2012 BIO/Plan Competition, and University of Florida researcher Raymond Booth’s serotonin receptor drug program is one of them.

The competition was established to promote the growth of life science companies and corporate partnering in the southeast. Semi-finalist projects included cell therapy delivery systems, antimicrobial drug delivery devices and research into anticancer agents.

Semi-finalists will be paired with a team of experts to begin a three-month mentorship program, after which each team will submit a development plan and four finalists will present at the 14th Annual SEBIO Investor Forum.

The biomass plant being built to serve Gainesville Regional Utilities customers is forcing the utility to rearrange its finances, including refinancing part of its debt.

Two of the three bond rating agencies that the city uses have lowered their opinions of GRU. Standard & Poor’s downgraded GRU’s outlook to “negative,” although it maintained GRU’s AA rating. Fitch Ratings downgraded its rating of GRU’s $932 million in bonds to AA- from AA.

On the other hand, Moody’s Investor Service left GRU’s rating unchanged, at AA, with a stable outlook.

The implications of these moves depend on who you ask. Mayor Craig Lowe and the five city commissioners who approved the refinancing plan say the juggling of GRU’s finances is a necessary result of changes in the energy landscape since the city decided on the biomass plant. Commissioner Todd Chase and longtime opponents of the biomass plant see the financial moves as confirmation that their warnings about the project were right.

All three rating agencies noted that GRU is having trouble with its plans to sell half of the production of the 100 megawatt biomass plant, which is being built by Gainesville Renewable Energy Center. The plant’s production isn’t competitive with power generated by natural gas, the price of which has plummeted.

Moody’s applauded GRU for its response to this

problem, noting that the utility is diversifying its energy production by adding the biomass plant and forecast that it will be able to meet its goal for rates. That goal is that rates for the average home, using 1,000 kilowatt-hours, will increase no more than $10.56 a month when the biomass plant goes into operation at the end of next year.

“We are pleased to see these high ratings, but we also recognize and take their concerns seriously,” said GRU Chief Financial Officer Jennifer Hunt in a press release. “We work hard to balance those concerns with the needs of our community to provide reliable, long-term solutions that will serve our customers for years to come.”

In addition to the debt refinancing, GRU plans not to renew an agreement to purchase power from Progress Energy—which costs $12 million annually—when the agreement expires at the end of next year, Hunt said.

GRU is asking the city commission to consider using money from its reserves for capital projects to pay off some of the debt from the bond refinancing from 2014 to 2019.

GRU is proposing that its base rate electric rates not increase next year, spokeswoman Katie Weitekamp says. The utility is proposing a reduction in natural gas rates, which would result in a savings of $1.73 on the average bill. The average water bill would go up 95 cents, and the average sewer bill $1.50, under the proposed budget.

—Bradley Osburn, Chris Eversole

GRU WRESTLES WITH COST OF BIOMASS

( In the News )N

EWS


We talked to local residential real estate experts to answer key questions about the state of the market in Gainesville today and how it might look in the near future.

Four years have passed since the real estate market crashed locally and nationally. With recent reports indicating some increases in sales and prices, both in Gainesville and in many parts of the country, new questions arise:

Is it time for sellers to become optimistic? • With both prices and interest rates low, why aren’t more • people buying? Is the influx of new residents adding more buyers?• Are foreclosures and short sales still dragging down prices?• The Business Report turned to Lauretta Fogg of Coldwell

Banker M.M. Parrish Realtors, Betsy Pepine of Pepine Realty and Tommy McIntosh, president of Prudential Trend Realty and Trend Management Solutions, for the answers to these questions and more. Their answers might surprise you.

1. ARE MORE PEOPLE IN A POSITION TO BUY RIGHT NOW?

Pepine: More people are able to buy, and they’re able to buy “more house” because prices are down, but buyers are not taking advantage of that. They are being conservative.

They still ask, “What’s the maximum amount I can qualify for?” But then they step back and say, “I want to take a step down.”

When you probe them, more often than not, they say, “If one of us loses our job, we still want to keep our house.” It’s been very enlightening that they’re not trying to max out what they can buy, given what they qualify for.

Fogg: Buyers aren’t necessarily saying, “Just because prices have come down and interest rates are down, now is my time to move up.” They’re staying extremely conservative. They’re happy to be in the home they’re in because they don’t know what the future holds.

Doctors and private business owners are feeling uncertain about the future. Even if they can afford a home over $1 million, they aren’t buying one. There are 20 houses priced over $1 million in Alachua County. Since January, three of them have sold, and they all closed just under $1 million. In contrast, in 2010, we had 10 houses close over $1 million.

2. DO YOU SEE PEOPLE REMODELING INSTEAD OF BUYING A BIGGER HOUSE?

McIntosh: There are some pretty significant remodelings going on. In general, our economy in this town is driven by the state budget, and there has been a lot of uncertainty in the state budget. When there is uncertainty, people tend to hunker down where they are until they feel a little more optimism or have a little more certainty.

There a lot of people who could be taking advantage of the low prices and interest rates who are choosing not to stretch.

3. HOW IMPORTANT IS THE INFLUX OF PEOPLE MOVING HERE?

Fogg: With a few exceptions, they are the people who are buying. But I’ve lost sales to medical residents who were

looking at other locations of a similar size, such as in North Carolina and Tennessee, because of our high property taxes. It’s not so much the principal and interest but the taxes that are added to that mortgage payment that hurt. It’s hard, because the taxes make the cost of living here look really expensive.

If people moving here have a home to sell where they’re coming from, they’re going to be renters. That scenario is making the rental market strong.

McIntosh: In the summer, there are folks who are getting job offers, and they have

to find a place so they can be ready for school to start. Many of them are wanting to rent. In addition, we’ve had a couple of significant employers coming to town, and that’s starting to touch our market.

4. IS IT A GOOD IDEA FOR SELLERS TO RENT OUT THEIR HOME WHEN THEY MOVE UP TO A BIGGER HOUSE?

McIntosh: The rental business is a tough business. It’s not for the faint-hearted.

Before you become a landlord, you need to get some sound advice. The decision about whether you should sell your house or rent it out doesn’t have a quick answer. Part of what you have to consider is what you’re going to do with the money from the sale of your house and what kind of rate of

return you can get on the money.When you look at things this way, you become a savvy

investor.The normal homeowner may not want to be burdened by

a rental, to get the midnight phone call that says that the air conditioner went out in July when it’s 102 degrees and you’ve got to get a new one in there today.

A lot of times, the homeowner needs to decide, particularly if the house is not worth what they paid for it or what they owe, if they want to recognize the loss now or if they want to recognize it over time.

Pepine: A lot of sellers who consider renting think they can just rent it for a year and ride out the market. I say, “No, you’ve got to be in this for five to 10 years to ride the market out.”

Fogg: I don’t believe we’re going to see much change in this market in the next four years. We may see some fluctuation. We may see a leveling out of inventory so that things move along a little more smoothly, but we’re certainly not jumping back to pricing like we had.

McIntosh: As soon as you see an uptick in buyer activity, you’re going to see the builders come back. Then that seller who’s sitting on a five or six-year-old house will be competing with a new home.

5. WHO IS HAVING TROUBLE QUALIFYING FOR MORTGAGES?

McIntosh: Everybody. Even if you have pristine credit, the process right now is very cumbersome. In years past, the underwriters were trying to verify that things were correct and make the loan. Now, it seems like they’re trying to find something that is incorrect and stop the loan. We’re having more issues with title and with income verification than we’ve ever had.

People who you think would cakewalk through are getting stopped in the process. It doesn’t make any sense. The pendulum has swung too far.

Pepine: People end up getting the loan, but the delays and the paperwork are problems. I had a buyer’s lender call human resources on the day of the closing to make sure the buyer was still employed. The amount of checking and rechecking is crazy.

The people who don’t get the loans have a credit issue. It’s something on their credit report that they didn’t know about, or they’re a first-time homebuyer who has a lack of credit history.

( In the News )

NEW

S

REALTOR ROUNDTABLE

By Chris Eversole

A lot of sellers who consider renting think they can just rent it for a year and ride out the market.

—Bestsy Pepine, Pepine Realty


( In the News )N

EWS

Fogg: The appraisals have become a problem. I had an out-of-state lender order an appraisal from an appraiser from outside the area. I emailed the lender and said that this appraiser has no access to any of our local data, except for data from the tax rolls, and has no knowledge of our area. Fortunately, the lender canceled the order and reordered the

appraisal from a local appraiser.When an appraiser doesn’t know our neighborhoods and

their idiosyncrasies, you get inaccurate appraisals.

6. DO YOU ADVISE SELLERS TO OWNER-FINANCE THEIR HOMES?

Pepine: No. Owner-financing is a red flag. The only reason someone would want owner-financing is that they don’t have good credit. The seller doesn’t want someone who doesn’t have good credit.

7. IS IT DIFFICULT FOR SELLERS TO ACCEPT THE LOW VALUES IN THE MARKETPLACE?

Fogg: Some sellers are starting to get it, but some are angry.

Facts are facts. Although property valuation is a subjective science, there is a basis for value. It may have a range of three to 10 percent, but there is a range of value that holds true, and you need to follow it. Many sellers, especially ones in the high end, just aren’t there yet.

Pepine: One way to get people to understand that you’re serious about your valuation of their home is to say that you’re willing to walk away from the listing rather than list

it at a price that isn’t realistic. You have to say, “Why don’t you try somebody else? Call me if it doesn’t work out.”

Then they realize you’re serious, that you’re willing to give up the business because you don’t want an over-priced listing. That’s when reality hits home.

Fogg: Right now you need motivated sellers. If the sellers don’t have a strong motivation,

such as an impending relocation or a financial situation, they’re probably not going to sell their house. Some of them can’t be motivated because of what they have in it. Others can’t be motivated because they refuse to understand the reality of the market.

McIntosh: Everything we’re talking about illustrates the fact that real estate is becoming more localized, and local experts are going to determinine if you’re going to have a smooth process or a challenging one. The Realtors who don’t spend enough time learning the market may not be giving the best advice.

If you’re going to have an intelligent conversation with a seller, you’ve got to know the market. It’s not what happened a year ago. It’s what’s happening right now. It can vary by street in some neighborhoods.

People trust us with their biggest asset. We owe it to them to be educated when we talk with them.

Fogg: Where a house is actually going to sell depends on motivation, of both a buyer and a seller. A lot of sellers have a hard time understanding that there is a range of value, but we can’t predict exactly where a house is going to fall within that range.

If you price it right, you have a better chance of selling it. If you’re willing to sell it at the market—not above the market—so that buyers can have a sense of urgency and know that you’re a serious seller, you’re probably going to sell.

Don’t set your price five percent over what the last one sold for, or one percent over it. Set it at the market or slightly below, and the house will sell more quickly.

I n 2008, I wrote a blog post warning homeowners against the pitfalls of becoming a landlord. Times were different back then. Prices were

declining rapidly, and there seemed to be no light at the end of the tunnel. It was better to sell and get out than rent and hold onto a house that faced future declines in value. Rental prices were declining and there was a high vacancy rate in both single-family and multifamily rentals.

Here we are in 2012, and things look differently. Single-family homes are in demand in the rental market. Vacancies for a quality home are rare, and rents have actually being trending up.

At Bosshardt, we raised rents on the single-family homes we manage by 5 percent last year. Extra incentives to attract tenants have all but vanished.

We all can’t afford to start buying commercial properties, so becoming a landlord can be a great strategy to build wealth. Sometimes it’s better to gradually build your real estate portfolio with residential properties.

Here are some pros and cons of becoming a landlord:

Pros:Generational lows in pricing and financing costs • means acquiring real estate now and financing it inexpensively could be the best investment decision you’ll ever make. For buyers who are moving up, the opportunity is fantastic. You buy a new home and get low interest on your mortgage, then rent out the home you left.Foreclosures and short sells present some great • opportunities for the savvy investor.Rents are rising, and vacancies are low.• The timing is right for purchasing real estate for • investment, while the stock market is fickle and risky.You will build wealth by tenants paying off your • mortgage. This can be worth all the hassles of being a landlord.

Cons:Evictions can be costly. Do your homework and • make sure to screen your tenants well or hire a professional to help you. You need to have enough reserves to cover several • months of vacancy. If you’re renting out the home you’re leaving, your • taxes will rise because you will lose your homestead exemption.The cost of buying and selling real estate is high • compared to the cost of trading in stock and bonds.Since most foreclosures and short sales can have • considerable deferred maintenance, you’ll need a thorough inspection before you buy.Managing property can be stressful.•

Because of the stress of managing property and the challenges of finding tenants, you may want to have a professional manage property for you, and the management fees can be worth the cost. A good management company will have a great partner that screens prospective renters, a lease that holds renters accountable for their wear-and-tear on the property and a system to quickly rent your property for market rent and competitive terms.

Aaron Bosshardt is chief operations officer of Bosshardt Realty Services.

Stylish homes on small lots, such as this one in Longleaf Village, are selling well.

BECOMING ALANDLORD

By Aaron Bosshardt

If the sellers don’t have a strong motivation, they’re probably not going to sell their house.

—Lauretta Fogg, Coldwell Banker M.M. Parrish Realtors

(continued on next page)


( In the News )

NEW

S

8. ARE THERE SOME NEIGHBORHOODS IN WHICH DEMAND IS HIGH?

Pepine: Longleaf Village [off of Archer Road] has high sales. I attribute that to the prices and what the builders are putting in the new homes—stainless steel appliances, tank-less hot water heaters, wood floors, granite counters. It’s hard to beat that, plus the location is close to Shands and UF and the area has an A-rated school.

Westchester Manor [off of Northwest 43rd Street] has high sales too. It got rezoned to Talbott Elementary earlier this year, which really helped that neighborhood take off.

Fogg: In both these neighborhoods, the builders were holding a lot land. They knew that if they were able to slash their price, they were better off than holding onto that land. They were able to adjust their pricing to a price point at which the buyers responded.

Westchester had gone through foreclosure and was repurchased, so the developers were able to acquire the land at very favorable prices.

McIntosh: And builders are building much smaller homes than was the trend five to six years ago.

9. TO WHAT EXTENT ARE FORECLOSURES AND SHORT SALES—THE “DISTRESSED SALES”—HOLDING DOWN PRICES?

McIntosh: I think some of the headlines that tout the increase in the median sale price are very deceiving, because it just depends on how many distressed properties closed in the last 30 days.

The median can go from $149,000 to $157,000 from one month to the next, and all of a sudden people think that prices are rising. That’s anything but the truth. Prices are not rising. It just depends on how many of the low-end properties closed in the last month.

McIntosh: Stories about price increases nationally give the wrong impression to sellers. The takeaway is that sellers can sell their houses at market value. There is a strong market at market value.

Pepine: I’ve had several properties, both as a selling agent and listing agent, in which a home has had multiple offers within a week of listing. When a home is priced right, and it’s in a good condition, it will sell quickly.

Upgraded kitchens with granite counters and stainless steel appliances are common in today’s new homes.

There are a lot of people who could be taking advantage of the low prices and interest rates who are choosing not to stretch.

—Tommy McIntosh, president of Prudential Trend Realty and Trend Management Solutions


We all know as professionals to leave our personal issues at home, but sometimes this is easier said than done. After all, divorce, death and other serious problems don’t go away just because you’re in the office.

Staying productive on the job during personally trying times, however, is critical. You don’t want to add “unemployment” to your list of troubles by getting fired for poor work. And more importantly, staying focused on the day-to-day tasks of your job can help you get back on your feet by helping you regain the confidence and sense of order you need to carry on.

It’s not easy to keep on working when other pressing matters are pulling at you. But when stressful personal issues arise—and they do for all of us at some point—there are a few basic strategies you can use to help you pull through, both personally and professionally.

Recognize that you’ll need time to recover from your o trauma. If you feel you need to take a few days off from work, then do it, if at all possible— you probably won’t be able to do your best work anyway.

Use this time to focus on healing and treating yourself well. Take walks and allow yourself to enjoy the sunshine and fresh air. Protect your health by eating right and exercising. Concentrate on comforting and healing yourself emotionally as well; meditation and prayer (if you’re so inclined) are known stress-relievers.

When you do return to work, do your best to give o it your all. This is both for your professional and personal well-being. Throwing yourself into your work can be a healthy distraction from whatever else is going on in your life.

Even the most mundane tasks of your workday can be therapeutic. Treat each modest accomplishment, from getting dressed to attending meetings, as a small step leading you back to your normal life.

While at work, try to focus fully on everything you do, from planning your projects to collaborating with colleagues. You may be surprised to find that hours can go by without your personal problems crossing your mind—and you’ll have the satisfaction of knowing your day has been filled with positive, constructive activity.

If the therapeutic benefits of work don’t provide o you with ample motivation to focus, remember that other people are counting on you. When you’re going through tough times, it may seem that your troubles are the only thing in the world that matters, but be mindful that you’re still a critical part of the team at work. Your colleagues have always depended on your skills and knowledge so they could get their jobs done, and they need you to be as reliable and professional as you have always been.

Likewise, your children or other family members also still need you, no matter what else you have to deal with. Remember, your friends, family and colleagues have always been there for you, so don’t forget to return the favor.

Recovering from traumatic personal events will take time and effort. Following these principles can help you navigate the rocky road back to normal life safely.

Stephen Wycoff is the franchise owner of the Remedy Intelligent Staffing office in Gainesville, Lake City and Ocala, Fla. Visit their website at www.remedystaff.com.

By Stephen Wycoff

WHEN MATTERS GET PERSONAL: Coping with Personal Crises on the Job

( HR Rx )


Transactions(All content comes from city, county and state official records.)

VACANT LANDAddress: 12700 NW Highway US 441 Alachua, FL. 32615Property Type: (COM)CommercialSeller: CNL BankList Agent: Michael RyalsList Firm: Bosshardt Realty Services LLCSell Agent: Michael RyalsSell Firm: Bosshardt Realty Services LLCPrice: $905,000Buyer: Charles Pinkoson & Rainer Pinkoson

COMMERCIAL SALESAddress: 4611 NW 53rd Ave. Gainesville, FL. 32606Property Type: (COM)CommercialSeller: PNC Bank, N.A.List Agent: The Beery Rainsberger GroupList Firm: Coldwell Banker/MM ParrishSell Agent: The Beery Rainsberger GroupSell Firm: Coldwell Banker/MM ParrishPrice: $325,000Buyer: Equilease Northwest 1, Inc.

COMMERCIAL LEASESAddress: 203 SW 2nd Ave. Gainesville, FL 32601Property Type: (RES)Rest/Food/Drink FacilityList Agent: Rick CainList Firm: Coldwell Banker/MM ParrishSell Agent: Rick CainSell Firm: Coldwell Banker/MM ParrishPrice: $3,506 Buyer: Freak Baby, Inc.

Address: 2555 SW 76th St. Gainesville, FL 32608Property Type: (RET)RetailLessor: Tower 24, LLCList Agent: Michael RyalsList Firm: Bosshardt Realty Services LLCSell Agent: Michael RyalsSell Firm: Bosshardt Realty Services LLCPrice: $4,881Buyer: Spa Royale, Inc.

Address: 14180 West Newberry Road Newberry, FL 32608Property Type: (RES)Rest/Food/Drink FacilityLesser: Jonesville Realty

Holdings LLCList Agent: The Beery Rainsberger GroupList Firm: Coldwell Banker/MM ParrishSell Agent: The Beery Rainsberger GroupSell Firm: Coldwell Banker/MM Parrish Buyer: McDonald’s USA, LLCPrice: $7,083

Address: 7328 West University Ave. Gainesville, FL 32607Property Type: (OFF)OfficeList Agent: James RoopList Firm: Bosshardt Realty Services, LLCSell Agent: James Roop Sell Firm: Bosshardt Realty Services, LLC Buyer: Law Office of John SalterPrice: $1,015

Address: 6011 NW 1st Place Gainesville, FL 32653Property Type: (OFF)OfficeList Agent: The Beery Rainsberger GroupList Firm: Coldwell Banker/MM ParrishSell Agent: The Beery Rainsberger Group

Sell Firm: Coldwell Banker/MM ParrishBuyer: University of Florida-OncologyPrice: $12,484

FICTITIOUS NAMES2ND AVE. OYSTER HOUSE114 SE FIRST ST., STE 1Gainesville

AFAD SMACK BUTTONS5511 SW 35TH DRIVE, APT. #3Gainesville

AIRFLOW SOLUTIONSPO BOX 140433Gainesville

AMERICERT INTERNATIONAL2603 NW 13th ST. #228Gainesville

APPS FOR DOCS2601 SW ARCHER ROADGainesville

CATHY’S SUPER NAILS915 NW 13TH ST.Gainesville

CECS250 SW 36TH TERRACEGainesville

CLEAR VISION EYE CLINIC AND OPTICAL2216 NW 40TH TERRACE, STE BGainesville

CROM ENIGINEERING AND CONSTRUCTION SERVICES250 SW 36TH TERRACEGainesville

CRYSTAL CLEAR JANITORIAL SERVICES205 SE 16TH AVE. 7CGainesville

DOORS & MOREPO BOX 285Melrose

THE ESPLANADE AT BUTLER PLAZA2935 20TH ST.Vero Beach

E.S.T. JANITORIAL SERVICES2117 NE 13TH AVE.Gainesville

FLY HIGH6419 NEWBERRY ROADGainesville

GAINESVILLE PROCESS SERVICE1330 NW SIXTH ST.Gainesville

GATORS TOBACCO101 SE SECOND PLACEGainesville

HOUSE OF HOPE OF ALACHUAPO BOX 12113Gainesville

HYDE & ZEKE RECORDS & VIDEO402 NW 10TH AVE.Gainesville

K ARTS DANCE THEATER603 SW SECOND TERRACEGainesville

THE MINAGERIE1015 NW 21ST AVE. #406Gainesville

OAKS FAMILY DENTISTRY12240 SW STATE ROAD 45Archer

OPINIONPULSE2114 NW 40TH TERRACE,

SUITE A-1Gainesville

PRESTIGE PET RESORT3811 NE 13TH ST.Gainesville

R. ENTERPRISES LTD494 TURKEY CREEKAlachua

RIDGEMAR COMMONS380 UNION ST., STE-300West Springfield

STAR FOOD MART303 SW EIGHTH ST.Ocala

TEAM HOPE BASKETBALL19946 NW 247TH ST.High Springs

THE UPS STORE #22313603 NW 13TH ST.Gainesville

VERDANT COVE4260 SE 10TH PLACEGainesville

WORLDWIDE LESSONSPO BOX 2135High Springs

GAINESVILLE AREA NETWORKING GROUPNorthwest Grille, Second and Fourth Wednesdays of every month, 11:30am

PHOENIX AUCTION SERVICES1832 SE 3rd Ave., Trenton, Every Thursday, 6:30pm

SUNRISE ROTARYUF Hilton Conference CenterEvery Thursday, 7am

BREAKFAST CLUB OF GAINESVILLEUF Hilton Conference CenterEvery other Friday, 7am

ROTARY CLUB OF GAINESVILLEParamount Resort and Conference CenterEvery Tuesday, noon

GREATER GAINESVILLE ROTARY CLUBNapolatano’sEvery Monday, noon

KIWANIS CLUB OF UNIVERSITY CITYUF HiltonEvery Tuesday, noon

KIWANIS CLUB OF GAINESVILLE Paramount Plaza Hotel and SuitesEvery Wednesday, noon

ROTARY CLUB OF DOWNTOWN GAINESVILLEVilla EastEvery Wednesday, noon

GAINESVILLE AREA WOMEN’S NETWORK Sweetwater Branch InnThird Wednesday of every month, 11:30am

INTERNATIONAL ASSOCIATION OF ADMINISTRATIVE PROFESSIONALSAyers PlazaSecond Tuesday of every month, 5:30 pm

THE GAINESVILLE BOOKKEEPERS ASSOCIATIONThird Wednesday every monthTimes may vary, see gaines-villebookkeepersassociation.com

CALENDARJULY 26, THURSDAYRESTAURANT WEEK KICK-OFF 2012Causseaux, Hewett & Walpole, 5pm

JULY 27, FRIDAYWOMEN’S LEADERSHIP COUNCILFundraiser & Champagne TastingHome of Jane Adams, 5:30pm

JULY 31, TUESDAYGAINESVILLE CHAMBER OF COMMERCEConnect Me, 4pm

AUGUST 7, TUESDAYPROFESSIONAL WOMEN’S ROUNDTABLE4pm (Location TBD)

AUGUST 9, THURSDAYTHE GLOBAL LEADERSHIP SUMMITThe Family Church

AUGUST 10, FRIDAYTHE GLOBAL LEADERSHIP SUMMITThe Family Church

AUGUST 14, TUESDAYGAINESVILLE CHAMBER OF COMMERCESummer Lunch Series – The Zen of Effective CommunicationSanta Fe CIED, 10am

GAINESVILLE CHAMBER OF COMMERCEConnect MePet Paradise, 8:45am

ATRIUM OF GAINESVILLERibbon CuttingAtrium of Gainesville, 5pm-7pm

Hosted PPIRThe Atrium, 5:30pm

AUGUST 16, THURSDAYGAINESVILLE CHAMBER OF COMMERCESummer Lunch Series – Economic ForecastBest Western Gateway Grand, 11am

AUGUST 22, WEDNESDAYGAINESVILLE NETWORKING CHALLENGESabore, 5:30pm

AUGUST 27, MONDAYGAINESVILLE CHAMBER OF COMMERCEChamber After HoursUF Hilton, 5:30pm

AUGUST 28, TUESDAYGAINESVILLE CHAMBER OF COMMERCEConnect Me4pm (Location TBD)

REGULAR MEETINGS

SUBMIT YOUR BUSINESS

EVENT to editor@

gainesvillebizreport.com to be included in the

monthly calendar (as timing and space allow).

( Monthly Meeting Calendar ) ( Transactions )+


NEW

S BR

IEFS

( In the News )N

EWS

Gainesville Regional Airport Renovations

The Gainesville Regional Airport began Phase III of its renovation plans on June 18, focusing upgrades on the front exterior of the commercial terminal. The most obtrusive renovation involves reconstruction of the walkways for the curbside drop-off and pick-up areas, as well as the disabled parking area at the front of the short-term lot.

Further planned changes include new energy-efficient glass for storefronts, vestibule entryways to replace sliding doors, new crosswalks, landscaping and energy-efficient exterior LED lighting.

The estimated cost of Phase III is $1.67 million, and the airport has already completed $8 million worth of renovations since 2007. Progress on the upgrades will be posted at FlyGainesville.com, as well as the airports social media sites.

The resurfacing is expected to be complete within a month, but the larger renovations will continue through the rest of the year.

UF&Shands Family Medicine at Main

East Gainesville has received an approximately $8 million investment in the form of a University of Florida Physicians practice that will relocate Family Medicine at Fourth Avenue into a two-story, 24,200-square-foot facility at 1707 N. Main St.

A press release estimated approximately 25,000 patient visits in the first year with up to 36,000 visits in subsequent years. The staff will be comprised of UF physicians, a clinical social worker, midwife and College of Pharmacy faculty member.

The facility will offer adult and pediatric comprehensive care, orthopedic and sports medicine, dermatology, podiatry, OB/GYN, prenatal care, pharmacy education, several medical tests and minor surgical procedures such as skin biopsy.

Gainesville Best for Business in State

In its annual list of the “Best Places for Business and Careers,” Forbes Magazine ranked Gainesville as the best in the state of Florida. Gainesville beat out 16 other cities in the state for the top spot, and was ranked as No. 101 on a national level.

Fort Lauderdale was the last among Florida cities, while the best nationwide was Provo, Utah.

The rankings were based on factors such as job metrics, costs, income growth, education of the labor force, quality of life and more. The listing included quality of life (2.4 percent above the national average); average commute (20 minutes); and median household income ($41,594).

Of the ranking, city manager Russ Blackburn found this news encouraging. Overall, his vision of Gainesville sees it becoming a top 10 mid-size city in the nation, which includes those cities with populations in the 100,000-300,000 range—of which there are about

200. (Gainesville’s is estimated at about 266,200).

Blackburn also stressed that while high rankings are important, he’d rather see Gainesville at the top spot in some areas, rather than No. 1 in everything. Another ranking he was happy with? Gainesville’s transit system—one of the top 10 in the nation, with the highest per capita ridership in the state, according to Blackburn.

In other Forbes lists, Gainesville is ranked as No. 93 for the “Cost of Doing Business,” No. 130 in “Job Growth” and No. 22 in “Education.”


What is the best, and worst, business advice you ever received?

I worked for many companies that went through bankruptcy. I never had anyone I could go to for help in business, so I read books and listened to tapes. I read Think and Grow Rich at 21, and it changed my life. I accomplished the goals I set then 11 years later.

I never feel sorry for myself. I ask instead, “What does this teach me about myself? How does it help me deal with obstacles and challenges?”

What gadget is most valuable to you?My iPad. With it, I keep track of

all my long-term ideas and thoughts throughout the day. It also helps me stay up-to-date with flying news. I am a pilot and when I go flying, I have all the information I need in one place.

What’s your best tip for staying organized?

I spend time every week thinking—not just doing. Then I work on a plan. Usually Friday is “think and plan day.” It’s important to designate a specific time each week. Everything is known at the beginning of the week so when Monday morning arrives—there is no wasted time.

What are the best and worst parts of your job?

The best part is I love what I do, so work isn’t work.

There really is no worst part. The hardest part of any business, generally, is your people. I have an extensive program for hiring people, so the least of my problems are the staff. When someone new comes in, they fit right in, and it’s like they’ve been here forever.

Any new hire goes through multiple interviews and is tested for holding the same core values and company culture as the rest of the staff. I believe in getting the right people from the start. When hired, people mesh immediately without a problem.

My main focus is figuring out what I’m going to do next—making the next plan—and keeping myself in top condition.

What is your schedule like? Monday mornings start at 8am,

Tuesdays 9am, Wednesdays at 7:45am, Thursdays at 6am and Friday is think day. I do cardio in the evening. I have a new program for weight training twice a week and cardio four times a week.

My diet is very healthy. I eat four times a day, and I do not eat dessert. The last couple of months, I’ve been asked to speak pretty regularly. When asked to speak overseas, I always bring someone else from my staff. We just got back from Italy, where we are helping develop roundtables.

Who do you admire? I admire author and psychologist

Dennis Waitly. I’ve gone through The Psychology of Winning 40 times. Years ago, there was a guy who said bad things about me. So, one day I sat him down and told him my story. Then I listened to him and told him he’d never be successful because he had a self-defeating attitude. He was going on a job interview so, I lent him my tapes of this book and told him to come back to me after promising he’d listen to them on his trip. He came back and told me the tapes changed his life. He got the job and thanked me.

What advice would you give to someone just starting out?

Creating something brand new is tough. Read every business book and talk to every person you can find before you start. If someone wants to go into a business, go to work in that business about 14 hours a day for two years, do every job in that business and work for every person in that business first.

What is your personal philosophy?“If you help enough people get what

they want out of life, you will get what you want out of life.”

—Interview by Heather van Blokland; additional reporting by Alexandria Ugarte and Rachel Sale

( What Works for... )?

WHAT WORKS FOR… JOE C IRULL IOwner, Gainesville Health & FitnessGainesville Health and Fitness owner Joe Cirulli’s lifestyle

is action-packed, but he has found that spending more time thinking can lead to a successful business. Cirulli,

who recently served as president of the Gainesville Area Chamber of Commerce, runs a powerhouse of health and fitness, but he began cultivating his entrepreneurial talents long before the multimillion-dollar center hit its stride. Books, unsuccessful ventures and a strong will have set Cirulli on this path to success. Here’s what works for him.


I n 1978 and with just three employees, Joe Cirulli opened the first Gainesville Health and Fitness Center above a bank on Archer Road.

The original location was 1,500 square feet. Fast forward to 1996, when it moved to its current location on Newberry Road. The original space is now the lobby of the 60,000-square-foot Main Center.

Now, in what Cirulli calls the Quest for Better, the Main Center of Gainesville Health and Fitness is preparing for yet another project. Cirulli shared that the health club model is changing as well as the broader retail model.

“Thanks to new technology and years of planning, we’ll be expanding our building over the retention pond adjacent to Newberry Road,” Cirulli explains. The expansion is set to begin this month, and is expected to take nine months. The expansion is the brainchild of Cirulli and a specialist architect from New York.

The new project will include a two-story, 12,000-square-foot addition that will greatly expand the free weight area, personal training studio and stretching space, which will almost triple in size. Other changes include moving ReQuest Physical Therapy to the front of the building to give patients easier access, doubling the size of the cycle studio as well as moving the

cardio equipment to face the new floor-to-ceiling windows.

“Expanding enables us to make every part our center exceptional, allowing us to create an even better experience,” Cirulli says.

Beyond the current plans for expansion, the goals that Cirulli aims for haven’t gone unnoticed. Gainesville Health and Fitness has been named one of the Top 20 health clubs in the nation and received recognition as Business of the Year by the Gainesville Area Chamber of Commerce two years in a row.

In 2009, we interviewed Cirulli as he began his term as president of the Gainesville Area Chamber of Commerce. Of the down economy, he said, “It gives us an opportunity to really shine against competitors, because we’ll be looking at how we can get better where a lot of other people will be looking at how they have to contract.

“We will continue to move forward in everything we do.”

Cirulli’s commitment to the members and the community of Gainesville is evident. “One part of our Core Purpose says that we will inspire people to become their best,” Cirulli says. “We can only do that by example, by living up to our tagline, ‘The Quest for Better.’”

Gainesville Health & Fitness Announces ExpansionBy Danielle Michels

( In the News )N

EWS


The leaders of Jackson Stoneworks, a family-run business, look back on a decade of building local trust from the ground up.

By Bradley Osburn

If you walk into a Lowes anywhere in the country, you can get your granite from Jackson Stoneworks, from right here in Gainesville. Tyler and Jack Ryals have turned a father-son project into an incredible local success story, reaching thousands of customers from their one-stop shop.

RIGHT PLACE, RIGHT TIMEBack in 2002, Tyler was getting out of college, Jack was

retiring from a previous business and the two were looking for a project they could do together. They decided to head to China for a trade fair and became interested in both bamboo flooring and pre-fabricated granite countertops.

Tyler mortgaged his house to purchase the first container of bamboo flooring, which they used to build sales displays for flooring stores. They initially presented their flooring product to Lowes, which Tyler says was hungry for product and looking to reach out to women, since its stores were mainly targeting men. The Ryals took a trip up to the Lowes corporate office in Mooresville, N.C., where their bamboo displays were well received. Unfortunately, a larger company beat them to it.

In a twist of fate, the director of the vanity countertop department had died soon before they arrived, and the interim director offered them another meeting. It was a classic case of being in the right place at the right time. He took a look at their granite countertops and told them to take a shot at marketing with the company.

“The way Dad works is that if you give him that opening, he’s in there,” Tyler says. “He took that as a green light to go.”

The two tried to sell through their bamboo supply so that they could focus on stone. They took the money they made from the bamboo sales and bought a container of granite countertops, which back then were all standard sizes and not custom.

For two years, they worked out of an apartment rented out from Tyler’s grandmother, and produced about 30 store displays per month in her garage. (They have since moved into a 30,000-square-foot office space at 1111 SE 22nd Ave. that features four truck docks for easy shipping.)

In between cutting stone, the two would travel around, taking their displays to Lowes stores around the East Coast and the South, ending up out in San Antonio and as far north as Massachusetts. They would be gone for 10 days at a time putting displays in stores, and soon enough Lowes called them in for a line review, unaware of how far the Ryals had gone with the informal “go ahead” the interim director had given them.

“They didn’t know they had given us that kind of green light,” Tyler says. But fortunately, the people at Lowes headquarters (still) liked what they saw.

LARGER THAN LIFEJackson Stoneworks went from providing just six colors

to 10, and soon bought tools of its own for custom work. The Ryals were eventually called back in for a larger line review.

The father-son duo was very good at creating the appearance that it was a much larger company than they actually were, Tyler says. In a turning point for the business, Lowes began to put out the displays for them, freeing up time and energy for other work.

“It was like the Oklahoma land grab,” Tyler says. “We just did more than everybody else.”

Taking advantage of a growing trend for construction

material to be built in China, the Ryals were able to offer standard-sized granite tops at affordable prices. “If you’re going to say you’re the best, then you need to be the best,” Tyler says.

Things started coming together for the company. Technological advances lowered production costs, and the cost of the stone went down. A kitchen that would have cost $50,000 in 2002 would cost $5,000 now, Tyler says. Uba-Tuba, which is now one of the cheapest colors, was five times more expensive then.

The more the public saw the granite, the more it wanted it, and the Ryals took advantage. After the move into the new location, Jackson Stoneworks experienced its largest growth period. Then the company’s bank pointed out that the Ryals had all of their eggs in one basket, which could have greatly diminished the likelihood of being able to take out loans. So they started their own custom kitchen business. Purchasing used equipment, such as saws and line polishers, helped save on costs.

Jackson Stoneworks now does custom jobs, in addition to standard vanities, and reaches 49 states, excluding Hawaii. As it’s continued to grow, the local sales from its kitchen and bathroom work have overtaken its Lowes sales. It’s expanded its offerings to include quartz glass, which is used in products like shower wraparounds, and for the last two years has been able to offer full local services.

As the economy declined, Tyler says, people began to improve their current homes instead of selling, which helped the company position itself as the premier stone company in the area with the largest product yard and the most colors.

LOCAL MEETS NATIONALTyler says marketing nationally can prove to be difficult,

and that when you’re marketing to millions, you need to be creative. One of the company’s early ads said that there were two stones in a woman’s life: the diamond ring and the granite countertop.

“We’re trying to come up with marketing that people find interesting and not just another piece of mail.”

Jackson Stoneworks trains Lowes staff on how to promote its granite, and it is active on social media like Facebook, Twitter and Pinterest. It was the first granite company to feature its line on the Lowes website.

Locally, the Ryals are trying to promote a one-stop shop, so almost everything they sell they install themselves. While they

still have to contract out plumbing and electrical, they have their own cabinet designers, tile setters and glass installers.

“We’re part of your community,” Tyler says. “We provide something interesting and when you’re ready to do that project, we’ll be here.”

Annually, Jackson sells just under $3 million. Tyler says that it’s split about 60/30 between Lowes and local. The company recently signed a large contract with LG to install quartz countertops. Tyler hopes that the move will double sales.

“The key is to get people to like you,” Jack says. “People buy from you because they trust you and they like you, not because you have the lowest prices.”

Jackson Stoneworks may have a higher volume of sales these days, but it maintains the same values it started with. Thirty percent of Jackson’s sales have come from referrals and the company’s focus on a local, limited group, Tyler says.

Tyler says that it feels like a long time since they started. Almost none of his original employees work there, and he is very selective in hiring. There’s no school for stonework, he says, so all of his workers are highly skilled tradesmen. Prospective hires are brought in on Saturdays to make granite Lazy Susans, which is a simple test of their skills.

The quality of the company’s stonework has gone up considerably, he says. “We’re dealing with the public, and they are a demanding group.”

But to Tyler, success is simple; it just means a lot of hard work.

“Do more than the next guy,” he says. “Try to learn as much as you can from the past, deal with the present and position for the future.”

( Made in Gainesville )

JACKSON STONEWORKS Offers Local Quality and Friendly Faces


Most people might recognize Perry McGriff, but for each person, it might be for a different reason. McGriff has been a fixture in the business, charitable

and civic communities of Gainesville for half a century. And now, he’s returning to one of his first roles—insurance agent.

Two years ago, State Farm Insurance forced him to retire as one of its agents, at a time when the carrier was considering leaving the state.

“I wasn’t ready to retire,” McGriff says. “I had insured the second, third and even fourth generation of families, and I wanted to help meet people’s needs.”

At first, after giving up ownership of his State Farm agency, McGriff worked with his son, Mark, who had taken over the business. But he wanted his own business again. So he approached Faye Johnson, who owned Johnson-Fletcher Insurance, an independent agency that represents a wide group of companies. Although Johnson initially rebuffed him, she eventually agreed to sell the agency to McGriff. Johnson remains active in the agency, now known as Perry McGriff Johnson & Fletcher Insurance Agency.

Before buying the agency, McGriff had been planning another cross-country bicycle ride on behalf of the Five Points of Life, which encourages people to give blood and bone marrow and become tissue donors. McGriff has donated 310 pints of blood and has undergone apheresis, in which platelets are removed from blood, 174 times. He ultimately decided against the ride in order to get to work on expanding the insurance agency.

McGriff has always been physically active. He starred in both baseball and football at the University of Florida. He was named an All-American in baseball and played two years in the Kansas City Athletics farm system.

In addition to running the insurance agency, today McGriff is president of the Community Foundation of North Central Florida (formerly the Gainesville Community Foundation) and on the board of the Cade Museum Foundation.

One thing McGriff has retired from? Politics, following what he calls an “ugly” campaign for state senate in 2010, which he lost to Steve Oelrich.

McGriff and his wife, Noel, have five children and 12 grandchildren. “The Lord has blessed me with a good family,” he says. We talked to the former mayor about his lifelong commitment to helping others, and what led to his success in business, politics and more.

How are you approaching your new business?I approach it like anything else. I wrote down my plans. I

set my goals. I want to expand our business in five years. I

want to add employees and provide them with a profession and good-paying jobs. I’m eager to give people a job in a professional career.

How was it starting your State Farm agency in 1962?

I started from scratch with no policyholders. Because I was a local yokel—went to the public schools, played both baseball and football at the university—my name was in the paper. As I got started in my insurance career, people knew me. I can’t say thanks enough to athletics because it opened doors for me.

State Farm trained me by bringing in booklets. One was about how to build a fortune, starting with how much you can save if you save $10 a month. They had a little flip chart in a notebook for auto insurance. You just read the words and flipped the pages. They gave me my rate books and the flip charts, and they said, “Sic ‘em.” I learned by the seat of my britches.

A lot of times, I was at someone’s kitchen table at suppertime. It was long, hard hours. At the end of five years, I saw a light at the end of the tunnel. In 10 years, I felt I was on the right path, doing the right things, for the right reasons.

As I grew, I was asked to join a study group of top producers from Florida and other parts of the country. We met once a year, and we would share ideas about how to increase business. We had an agent in South Florida during the building boom who wrote 5,000 policies in five years. How do you do that?

He said it was very simple: He sat down and asked “centers of influence” to help him get referrals. I realized that that made sense. I could do that.

In the 1970s, I made the top 50 agents in State Farm in fire insurance. There were 17,000 agents, and I was in the top 50.

How did your civic involvement and political life develop?

I got involved in the Jaycees, and I was elected president. We did “get out the vote,” we did a seatbelt safety campaign, we did Christmas tree sales. And I got involved in the University City Kiwanis.

In 1968, a group of people, like my dad’s peers, came to me and said, “We want you to run for political office.” Well, I had no intention of running for political office. I didn’t come from a political background.

Merle Haines, an architect who had been on the city commission, had called me a number of times and asked me to run for the commission. I had put him off. One day he

called me and said, “I want to talk to you.” I said, “Merle, if it’s about politics, I’m not coming.”

He said, “No, it’s about insurance.”I said that I would be there at 4 o’clock. I walked into his

office, where he had a big room. It was packed. There was one chair, and they sat my butt down. They “hot-boxed” me, and I held my ground. I knew my excuse was my wife, Noel. So I went home, and I said, “Here’s what it is.” She looked at me, and she said, “We need good young people to run, and you ought to do it.”

I said, “OK, if you believe that, we will go back to the group.”

I was 31 years old when I was elected to the city commission [in 1968].

What were the issues at that time?Integration of Gainesville High School occurred the year

that I was the mayor. We had an open forum at city hall. We tried to make sure anyone could talk. I think we handled it very well.

The year when I was elected, we were selected as an “All-American” city. [Editor’s note: At that time, commissioners rotated as mayor.]

How did you enjoy serving in office?When I was mayor, there was an ongoing battle between

two commissioners because one of them knew that another commissioner had been put in jail during an ugly divorce. The first commissioner kept pushing to pass an ordinance requiring commissioners to reveal their criminal background, but no one would second the motion.

It kept getting worse and worse. Finally, the story about the time in jail came out in the Gainesville Sun, which also revealed that a third commissioner had been charged with mail fraud.

About a third of the way into my year as mayor, I announced that I was not running for reelection. They could

I’ve had an opportunity to make a decent living, and it allowed me to give back. This is a great community in which to live, and it’s an honor to be able to serve.

By Chris EversoleMcGriff and his wife, Noel, celebrate McGriff’s donation of 55 gallons of blood.

Perry McGriff

(continued on next page)

( Success Story )

This Gainesville leader is a legend, but he’s not slowing down any time soon. We talked to athlete, philanthropist, insurance agent and former state representative Perry McGriff about why this town is worth giving back to—and why he’s undertaking a new venture.


have this job—lock, stock and barrel.In ’74, people came to me, asking me to run for the

Legislature. I said, “Over my dead body.” They said, “How about the county commission?” I said, “I don’t even know whose district I’m in.”

I ran and beat an incumbent. In 1980, I resigned from the city commission and ran for the state senate. That was when George Kirkpatrick was elected.

After you left office, what were the highlights of your civic involvement?

From 1980 until 2000, I stayed out of office. During that time, we created the Five Points of Life Bike Ride. I was involved in formation of the Gainesville Sports Organizing Committee, which is now called the Gainesville Sports Commission. It has generated about $200 million of economic impact.

I also was involved in founding Millennium Bank (now part of PNC Bank), which has created jobs and economic development.

In 2000, folks asked me to consider running for the Legislature. I ran for a house seat and won.

I think I made a contribution in the legislature because, being older, I wasn’t a threat to the leadership that was from a different party. I served on the education and insurance committees, where I had some expertise. I felt like I made a difference.

After my first term, the legislature was reapportioned. I lost by 35 votes after 55,000 Democrats were taken out of Alachua County and 55,000 Republicans from Marion County were put into the district.

What motivates you to be so active civically?It’s my make-up. The Lord has blessed me with good

health. I’ve had an opportunity to make a decent living, and it allowed me to give back. This is a great community in which to live, and it’s an honor to be able to serve.

The community foundation is a way we can let people leave

a legacy. People can feel proud of making a difference in the place in which they live.

The Five Points of Life Bike Ride saves people’s lives. I hear stories about people who were healthy one day, and the next day they needed platelets because they got cancer, or they needed blood because they were in an accident. If these products are not available, you die. I respond when someone says, “I’m alive because someone cared enough.”

We did the first Five Points of Life ride in 1997. We rode across America in 42 days. We started in May, and we ended in June, so it was hot. We got to Gainesville, and my Dad was put into the hospital, and he died. He was 88 years old. He had a bad heart and a bad kidney.

I thought I was pretty well-informed about what the Five Points of Life does. The nurse turned to me and said, “You’re going to donate organs and tissue from your dad.” I said, “You’re kidding. He had a bad heart and a bad kidney.” She gave me the phone number for the tissue bank, so I called it. They said they could use bone products, ligaments, his cornea and his skin. No matter what age you are, you can make a difference.

Do you think that people are involved as much in the community today as they always have been?

In this community, people will give because they care. The reason the community foundation is doing so well is because Dr. [Robert] Cade

made the first major donation. He cared enough to give back to his community.

Everybody has a hot bottom. The community foundation will put the money in your legacy to work the way you want it targeted. It can be art. It can be music. It can be scholarships.

What is your philosophy as a businessman and community member?

Do unto others as you would have them do unto you. I have been blessed. There are people who need help, and I feel like I need to give back. That’s what life is all about.

Perry McGriff’s family joined him after he received the University of Florida’s Distinguished Alumnus Award in 2003.

( Success Story )

north central florida business report august 2012

Documents

porters neighborhood

webster university

training people

construction industry

center of gainesville

lovely neighborhood

ocala campus

continuing education