andrews said local and state officials will southern fried,€¦ · triston brownfield, a partner...
TRANSCRIPT
PRST STDU.S. Postage
PAIDPermit #353Columbia, MO
Volume 15Issue 12
January 10, 2009
www.columbiabusinesstimes.com $150
5Business ProfileDip Doctors, a water-transfer printing business, is flourishing as economy falters
Shelter BankOne of Columbia’s biggest banks uses insurance agents to attract customers20
24Financial Advisors Q&APlanners see investment opportunities in bear market
City attracts data center developer
ph
oto
by
jen
nif
er
ke
ttle
r
A real estate development company is likely to build a data center in northeast Columbia that would employ high-wage workers, according to local economic development officials.
The 70-acre “shovel-ready” site being considered for a 100,000-square-foot building is privately owned and was one of the first submitted to the new Missouri Certified Sites program.
Regional Economic Development Inc. Executive Vice President Bernie Andrews said local and state officials will be working during the next few months with development company officials to arrange for tax breaks and other incen-tives to locate here.
The unnamed company from outside the region specializes in developing large data centers and forming partnerships with tenants. Andrews said the company has signed a letter of intent and wants to have 50 percent of the building space leased in advance.
“They like Columbia, they like the location and the site is checking out so far, Andrews said. The data center would need redundant sources of electricity, and the site is near a substation.
Chamber of Commerce Chairman Larry Moore wrote in a chamber news-letter that the data center complex could grow to about 700,000 square feet over time and when fully developed employ up to 250 high-wage workers.
Southern Fried, Family FriendlyMississippi Fish Shack owner Kim Perry learned to cook from her grandmother, and she displays photographs of her grandparents and her suave father in the entryway of the restaurant, which opened on Broadway downtown six months ago and serves home-style dishes.
(Story on Page 14)
SPECIAL SECTION
See Page 20
Banking & FinancialServices
2 January 10, 2009 C
olumbia B
usiness Times | C
olumbiaB
usinessTimes.com
PACE PerformancesTheatre group for children opening dance studio in northwest
22
12
Boone County National Bank ......................28
Business Conference & Showcase .............21
City of Columbia Rolloff & Commercial Waste
Services .......................................................18
City of Columbia Water & Light ...................12
Columbia Turf ................................................5
Corporate Identi-T’s ....................................24
First National Bank ........................................2
Hawthorne Bank ............................................3
Huber & Associates .....................................27
Kansas City Life Insurance Co. ...................13
KFRU - The Morning Meeting .....................17
Midwest CompuTech...................................23
Moresource .................................................16
Paul Land - Plaza Commercial Real Estate .18
Personalized Computers ...............................4
Pro Fitness ....................................................8
Recycled Office Solutions .............................8
Room 38 Restaurant & Lounge .....................7
Shelter Insurance - Mike Messer & Mike
Hatchett .........................................................6
Shelter Office Plaza .......................................9
Socket .........................................................19
The Communications Center.......................22
Triangle Blueprints .......................................18
Van Matre, Harrison, Volkert & Hollis, P.C. ..22
Waddell & Reed ...........................................20
William Woods University ............................25
Williams Keepers - Raymond James ..........13
Willie Smith’s Magic Services ......................17
Candlewood Suites .......................................4Columbia Turf ..............................................18Commerce Bank ............................................4D&H Drugstores.............................................4Dip Doctors .............................................1,5,6Edward Jones ..............................................24Event Solutions..............................................4First National Bank & Trust Co. .............18, 22Hilliard Lyons ...............................................25Landrum Co. ................................................22Mesaba ..........................................................7Mississippi Fish Shack ........................1,14,15Missouri Mowing .........................................18Pure Marketing and Media ............................4Shelter Bank ........................................1,20,21Shelter Insurance Companies .....................20Signs By Woody ............................................5Subway ........................................................18Visionworks Marketing & Communications .....................................4, 19Waddell & Reed ...........................................25Williams Keepers LLC ...................................4Wingate Inn ...................................................4Woodstone Design Gallery ..........................16
Name ChangeFNB to be renamed Landmark Bank after long-running consolidation
27
People You Should KnowTodd Donoho, author, sports-caster and for one night, a professional wrestler
3 January 10, 2009 C
olumbia B
usiness Times | C
olumbiaB
usinessTimes.com
EdItorS wElCOmE
The Columbia Business Times is published every other Saturday by The Business Times Co. 2001 Corporate Place, Suite 100, Columbia, Mo 65202. (573) 499-1830.
Copyright The Business Times Co., 2008. All rights reserved. Reproduction or use of any editorial or graphic content without the express written permission of the publisher is prohibited. Third-class postage paid at Columbia, Mo. The annual subscription rate is $39.95 for 26 issues.
OUR MISSION STATEMENT:The Columbia Business Times strives to be Columbia’s leading source for timely and comprehensive news coverage of the local business community. This publication is dedicated to being the most relevant and useful vehicle for the exchange of information and ideas among Columbia’s business professionals.
Writers in this issue: Jacob Barker, Heath Hooper, Gayle Mooney, Jim Muench, Joanna Schneider, Sean Spence, Bondi WoodColumnists in this issue: Al Germond, Mike Martin, James McNabb, Larry Schuster, Lilli Vianello, Scott Wendling
Chris Harrison | General Manager | Ext.1010David Reed | Group Editor | Ext.1013Rita Flórez | Assistant Editor | Ext. 1009Cody moore | Graphic designerAlisha Moreland | Graphic designer Betsy Bell | Creative Marketing directorJennifer Kettler | Photo Editor | 573-529-1789Cindy Sheridan | operations ManagerBecky Beul | Marketing representativeClaire McNett | Marketing representativeJoe Schmitter | Marketing representative
Editor David Reed
editor@businesstimescompany.
com
A few days after the CBT published an analysis of Columbia’s banking industry (Oct. 18 issue, Page 13, “Local banks relatively stable amid shaky market,” by Jacob Barker), Shelter Bank CEO Ron Wheeling sent us an e-mail pointing out an oversight.
Charts showed the market share and deposits of Columbia’s largest banks, but Shelter Bank was not included.
“I thought you and Mr. Barker would like to know that there is actually another bank headquartered right here in Columbia that usually gets left off of lists your paper compiles, and surprisingly one that is larger than a number of those mentioned in Mr. Barker’s article.”
It was an oversight—I was under the mistaken impression that adding Shelter Bank to the list would be like comparing apples and oranges, because it’s not a tra-ditional bank.
But it turns out that Shelter Bank does operate like a community bank, providing loans, certificates of deposits and other banking products, and is open to the gen-eral public. In fact, the deposit report CBT published in October should have ranked Shelter No. 6.
We hope our story that begins on Page 20 will help make up for our oversight.
I lived in South Carolina, Georgia and Virginia for 15 years while working for The Associated Press, so I’ve eaten a fair share of Southern-style meals.
My favorite restaurant was Duke’s in Orangeburg, S.C., where my parents live. The black-owned and operated restau-
rant serves heaping plates with delicious pulled pork barbeque or fried chicken and side dishes including hush puppies, slaw, black-eyed peas and a rice hash. The place looks like a dive from the road, and the food is served cafeteria-style, on plastic plates, with plastic cutlery.
Hearing that a southern-style restau-rant called the Mississippi Fish Shack was opening on Broadway, I was determined to be one of the first customers through the door. The wild orange paint on the exterior and the modest furnishings were encour-aging, because in this food genre, frills are not a good indication of quality.
Owner Kim Perry’s decision to serve no alcohol was another plus, indicating an adherence to the home-style traditions, but it also made me worry that the restaurant might have a hard time turning a profit. The relatively high margins on beer, wine and liquor are critical to most restaurant operations. Village Wine & Cheese, the previous tenant, went out of business in March 2008. The establishment was open for nearly 20 years with five different owners, and the last operator said the res-taurant drained the family’s savings and had not been profitable for some six years.
Could this simple Southern fare, sans alcohol, make it in downtown Columbia?
You can guess my opinion, since the CBT did a cover story on the restaurant. Yes, the Mississippi Fish Shack has the best fried chicken and fish and “fixins” I’ve had since returning to the Midwest. Judging by the steady business during these lean economic times, the fish shack won’t be another flash in the pan.
(573) 499-1830 | (573) 499-1831 [email protected]
4 January 10, 2009 C
olumbia B
usiness Times | C
olumbiaB
usinessTimes.com
Hirings
Commerce Bank promoted Melissa Lampkins to retail banking officer. She will be responsible for overseeing region-wide deposit opera-tions, supervising branch operation teams and coordinating the region’s operation audit programs. Lampkins is a graduate of Columbia College with a bachelor’s degree in business administration and has 10 years of banking experience with Commerce.
Candlewood Suites named Shelley Sigholtz the new sales director for the Candlewood Suites near the Interstate 70-U.S. 63 intersection. Sigholtz, who returned to her hometown of Columbia after working in St. Louis, will also be assisting with the sales effort at the Wingate Inn next door.
Visionworks Marketing & Communications hired George Young as a broadcast consultant. Young will perform creative services, voice work and production for the agency’s clients. George specializes in client relations, program direction and on-air direction. He has hosted and produced shows for KFRU and a meet announcer for the University of Missouri Swim Team and Columbia Swim Club.
PromotionsNatalie Merrill has been named president and CEO of Event Solutions.
Merrill will oversee and direct all company business and will report to the company’s ownership group. Merrill has also acquired a minority ownership stake in the company. Merrill joined Event Solutions in August 2007 as vice president of special events and was promoted to president in March 2008. Merrill previously owned and operated a spe-cial events business based in St. Louis. Merrill replaced outgoing CEO Brent Beshore, who will now focus on Pure Marketing and Media, as well as a number of other ventures.
GlenMartin Inc., a tower solutions provider based in Boonville, has promoted Tom Ferguson to national sales manager. Ferguson has more than 15 years of experience in management and sales in the construction and telecommunications industry.
Ferguson joined GlenMartin in October 2007 as the northeast region sales manager and will work out of the Pennsylvania office.
AwardsDuring its annual scientific meeting in April, the country’s largest
medical specialty society will honor Dr. Sara Walker, a University of Missouri professor emeritus, with the 2009 Alfred Stengel Memorial Award for her outstanding service. Walker is a past president of the American College of Physicians-American Society of Internal Medicine (ACP-ASIM.) She was a rheumatologist and instructor at MU from 1980 to 2006. In the 1990s she created a program that brought continuing edu-cation to physicians in rural Missouri communities.
AccreditationTriston Brownfield, a partner in D&H Drugstores, announced that the
pharmacy and durable home medical equipment company has achieved the Award of Accreditation from the Healthcare Quality Association on Accreditation, based in Waterloo, Iowa.
AppointmentsWilliams-Keepers LLC announced that the company will be rep-
resented in 2009 on six committees and task forces in the PKF North American Network. PKF is a membership association composed of 88 independent accounting and consulting firms. Those appointed or reappointed are Russ Starr, managing member; Heidi Chick, member owner; Shawn Barnes, director of business development; Ken Lange, director of information technology; and two audit managers, Ryan Henry and Amber Snider.
Lampkins
PEoPLE oN tHE mOvE
Merrill
Walker
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Laptops starting at
$299
...nor are the companies who service them. At Personalized Com-puters our client base is comprised of professionals from almost every fi eld, including health care, engineering, government, retail, professional services, restaurants, school districts and insurance. We provide full-service computer support to clients who are just starting out, all the way up to clients with hundreds of computers in a multi-server environment. We also provide project support and consulting for the largest companies in the region. Our experience allows us to add value to any size network, including yours. Call today to sched-ule an appointment.
207 East Broadway • 877.817.2597 • 573-817-2597 www.personalized-computers.com
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Not All Computers Are Created Equal
Ask about our quarterly maintenance program.
5 January 10, 2009 C
olumbia B
usiness Times | C
olumbiaB
usinessTimes.com
BuSINESS ProfILE | dIP doCtorS
By Bondi wood
Even a bad economy has winners. One of them is a water-transfer printing business in west Columbia, which is flourishing as people decide to refurbish items rather than buy new.
Dip Doctors, Inc. opened in August and is one of only 11 companies in the nation that uses a high-tech hydrographic process. The company will imprint patterns on multiple or individual items.
“We are only limited by our imagination,” co-owner Kent Sapp said. “You can actually trans-form any metal, wood or plastic to look like whatever your heart desires.”
Sapp, Mark Niles, Tim Rector and Junior Gilpin decided to open Dip Doctors as a side business to augment their seasonal work in sign-making and construction. Sapp owns Signs by Woody; and Niles, Rector and Gilpin are in the HVAC business.
But Dip Doctors has exceeded expec-tations. “I originally thought we might have to hire someone to work at Dip Doctors, but now we’re thinking about hiring people to run our other businesses instead,” Sapp said.
The water transfer process uses a water-filled tank, 10 feet long, 4 feet wide and 3 feet deep. The object to be dipped is prepared for the pro-cess by sanding, removing rust or applying a base coat color. A film with an imprinted pattern on it is placed on the water. When the film dis-integrates, a floating ink remains. The object is dipped in the ink and it transfers onto the object, leaving a perfect replica of the pattern. Finally, the object is covered with a high-grade polyure-thane finish.
The process accommodates nearly any object that can retain its shape in water and that can fit in the tank. Thousands of patterns are available, including granite, marble, camouflage, animal print, wood, metal and numerous specialty prints.
The results create converts.“I’ve already been asked numerous times
from people wanting to get a franchise or sub-franchise from me,” Sapp said. However, the initial investment can range from $150,000 to $250,000 and trade secrets are highly guarded, Sapp said.
Niles and Sapp said it took several months to prove to the parent company, which they would not name, that they were up to the task of suc-cessfully operating the business. So it will be a while before they franchise the business, Sapp said. “Right now, we’re the only show in town,” he said.
“There are lots of companies out there now that do mass pro-duction. The ‘wood grain’ in high-end
automobiles is plastic dipped in a burled wood pattern; but those companies have a 1,000-piece minimum. We’ll do one-of-a-kind items,” Sapp said.
Because Dip Doctors, Inc. is the only shop of its kind in the Midwest, they have a customer base from several surrounding states. Sales from their Web site, www.dipdoctors.com, account for the bulk of their work. “We are flat covered up; we keep getting busier and busier and busier,” Sapp said.
Controlling growth has been important as the business owners climbed the learning curve on the technology. The four owners say they have extremely high standards on the finished
Dip Doctors leave an impression
Co-owner Kent Sapp, right, shows his customer, Andrea Botkins, her son's newly-finished Christmas gift, a green hunting bow. Dip Doctors; changed the once pink bow to a patterned green color more appropriate for Botkins' son.
Dip Doctors, Inc. can cover anything from guns to toilet seats. Hunting equipment and car parts are their most popular products to dip.
ph
oto
S b
y je
nn
ife
r k
ett
ler
Mid-Missouri’s two largest grounds maintenance companies,
Missouri Mowing, LLC and Columbia Turf, LLC are joining
forces to better serve you!
Columbia TurfGrounds Maintenance
Columbia LandscapeDesign/Build
Columbia Turf Snow removal
THE NEW COMPANY WILL DO BUSINESS AS
COLUMBIA TURF, LLC WITH THREE DIVISIONS:
6 January 10, 2009 C
olumbia B
usiness Times | C
olumbiaB
usinessTimes.com
product. “Basically, we tell people a two-week turnaround. And we don’t miss our deadlines.” Niles said.
Dip Doctors, has 400 patterns in stock and can order samples of other patterns on request. One such custom job was the application of a patriotic red, white and blue flag pattern to the cane of a war veteran.
Looking to expand into home décor, Sapp is going to dip his kitchen faucet to match the granite countertops in his kitchen. “The product sells itself. You can show someone that you can
dramatically change the look of their kitchen, bathroom, dining room, etc., in this economy, without a lot of cost,” Sapp said. “We can do baseboards, door trim, kitchen cabinets, Formica countertops, furniture. You name it, we can dip it.” v
Dip Doctors Inc.7301 W. Henderson Rd. | Columbia, Mo 65202
875-7903 | [email protected]
BuSINESS ProfILE | dIP doCtorS
Tim Rector washes off the test product after applying the pattern.
Dip Doctors co-owner Mark Niles sprays on a green base coat to a form used to test the printing process.
Co-owners Tim Rector and Mark Niles carefully place the water transfer pattern on the water to sit for a minute before dipping.
After spraying on an adhesive Tim Rector dips the test product into the pattern.
Rector pulls out a freshly dipped product from the water tank.
7 January 10, 2009 C
olumbia B
usiness Times | C
olumbiaB
usinessTimes.com
ECONOmIC INdEx
While nearly all of Columbia’s economic indicators declined in 2008 compared with previous years, two categories show healthy increases: utility customers and airport traffic. Population: 102,169
There has been steady growth in water and electric customers, with about 2 percent growth every month, which generally parallels population growth.
The latest population estimate from the U.S. Census Bureau was 99,173 as of July 2007. Columbia’s popula-tion has grown about 2 percent per year since 2000. (It’s no coincidence, which is why CBT tracks utility hook-ups) So if you assume that the 2 percent growth continued, the city’s population is now slightly above 102,000.Airline passenger target: 30,000
While national figures show fewer people are boarding passenger airplanes during this economic downturn, boarding at Columbia Regional Airport has more than doubled in late 2008. An average of 2,000 passengers a month boarded Mesaba’s Northwest Airlink flights in the past three months, and the air-port’s goal is to have 30,000 passengers in 2009, which would match the usage before the Sept. 11, 2001 ter-rorist attacks caused widespread reductions in traffic.
Mesaba started offering three flights to and from Memphis on Aug. 19. Mesaba recently informed the city that the Columbia airport was among the top five of the 56 cities where it provides air service. Passengers filled an average of 70 percent of the seats on the 32-seat planes, which gave Columbia the dis-tinction of having the highest load factor in Mesaba’s service area.
2007 2008
August 774 327
September 758 1,517
October 849 2,095
November 857 1,990
December 645 2,016
Charting Columbia’s economic indicators Departing Passengers
2006 42,409 42,980
2007 43,673 44,425
2008 44,199 44,919
November 857 1,990
December 645 2,016
Wat
er
Electri
c
8 January 10, 2009 C
olumbia B
usiness Times | C
olumbiaB
usinessTimes.com
Whether it’s replacing a broken chair or expanding workstations, Recycled Offi ce Solutions makes
purchasing offi ce furniture affordable. ROS sells previously owned, name brand offi ce furniture such as Steelcase, Haworth and Kimball. Providing personal service, the knowledgeable sales staff will fi nd you the pieces you need and deliver them to you quickly.
Visit the showroom just east on I-70, exit 133, call 573-449-3876, or visit ROSFurniture.com
You don’t have to resort to tape.
Solving Your Offi ce Furniture Needs
ECONOmIC INdEx
2006 $181,944,785 $146,724,899
2007 $131,406,222 $82,475,847
2008 $67,142,145 $86,351,712
Residential Permits
Commercial Permits
Mike Keevins906 Woodon$1,209,564 New multi-family, five or more units
Tompkins Homes and Development, Inc.6210 Bridle Bend$861,765 New single family detached
Don Houser5609 Saddle Ridge$425,000 New single family detached
David Parmley1219 Fellows$269,711 New commercial amusement and recreation
John Hansman Construction6705 Chelan$230,000 New single family detached
Mays Medical Properties105 N. Keene$227,736 Commercial alteration, nonresidential
Blair Construction3204 Cannery Row$190,000 New single family detached
Lifestyle Homes, Inc.1012 Marcassin$185,000 New single family attached
Lifestyle Homes, Inc.1014 Marcassin$185,000 New single family attached
John Hansman Construction403 Stallworth$180,000 New single family detached
Ryan Clifton4309 Orrine$166,000 New single family detached
Homestyles by Boyer, LLC4905 Rainbow Trout$165,000 New single family detached
Dixon Builders2501 Vandiver$130,000 Commercial addition, nonresidential
Professional Contractors & Engineers, Inc.1907 Gordon$122,374 New commercial stores and customer service
L&J Development, Inc.2011 Corona$96,000 Commercial alteration, nonresidential
CMK Partnership, LLC1603 Chapel Hill$84,903 Commercial alteration, nonresidential
Professional Contractors & Engineers, Inc.4800 Paris$74,138 Commercial addition, nonresidential
General Growth Properties2300 Bernadette$55,000 Commercial alteration, nonresidential
General Growth Properties2300 Bernadette$52,040 Commercial alteration, nonresidential
City construction permits Applications issued in december for valuations above $50,000
Columbia Construction Permits, Annual Value
9 January 10, 2009 C
olumbia B
usiness Times | C
olumbiaB
usinessTimes.com
Darrin M Denbow, President | 3806 Buttonwood Drive Suite 100Offi ce (573) 445-3015 | Fax (972) 692-0880 | [email protected]
Command Commercial Mortgage “We are changing the way Commercial Financing is done”
• Land Loans• Hobby Farms• Farms• Industrial• Assisted Living Facilities• Medical/Dental• Blanket Loans for Duplexes • Hotel/Motel
• Storage Facilities• Merchant Cash Advance• Strip Malls• Restaurants• Car Washes• Gas stations• Developments• Hard Money
100% Commercial Financing for Business Professionals
Multi-Family/ Apartment
5.92% Fixed 35 Year Amortization
(Non-Recource Requires1.18 Debt coverage.)
Rates subject to change. For qualifi ed applicants only.
ECONOmIC INdEx
Top Tax Payers, September Year-to-Date Revenue
10 January 10, 2009 C
olumbia B
usiness Times | C
olumbiaB
usinessTimes.com
From the Roundtable
Economic recovery will require realistic cooperation from all sides
Al Germond
Al Germond is the host of the “Columbia
Business times Sunday Morning roundtable” every Sunday at 8:15
a.m. on kfru. He can be reached at
vOICES
Peering into 2009 leaves me uncertain about local economic conditions given the huge finan-cial upheaval that’s been going on the past few months.
While this swoon in the traditional pattern of business cycles appears to be the most serious dip since the Great Depression of the 1930s, the City of Columbia so far seems to have held up fairly well considering and compared with other communities. The clouds may darken, however, once substantial state funding reduc-tions are in place, particularly at the University of Missouri.
While the city’s management team con-tinues to delicately manage and balance the municipal corporation’s financial affairs, these servants should be concerned about the via-bility and progress of our seven core economic engines: education, health care and medicine, research, insurance, manufacturing, retail and development and contracting. In concert with economic development officials, the city knows it needs to continue to focus its efforts on what’s already here and to foster further growth and expansion.
We’ve already been forewarned about some of the hits education at various levels can be expected to receive. The reduction in state revenue is going to spank the University of Missouri just as the institution’s ability to increase tuition has been legislated away and in the face of an increased demand for its ser-vices. Research is a core and growing compo-nent of the university. Therefore, there’s hope such fields as nuclear medicine and the life sciences will continue to grow and become
the institution’s trump cards in the face of this downturn.
Lower receipts from taxes—sales, use, income and others—will equally threaten the constitutionally guaranteed funding of Missouri’s system of public education. Administrators of grades K-12 are faced with rising costs and brick-and-mortar issues in a state that traditionally has been parsimonious toward education in general.
Reports of personnel cuts and reduced client usage among local health care facilities have been trickling in, although construction continues apace on a variety of new structures. Thus far, it seems a case of “all quiet on the western front” at our two major insurance companies—State Farm and Shelter—as to the size and status of their Columbia workforce, meaning they’re doing OK.
So far, the announced cutbacks in the local manufacturing sector have been relatively modest compared with the upheavals some communities have undergone, with abrupt plant closings tossing hundreds or thousands of people out of work. This reminds me of a tale from the past, which I hope is still true today, of a city official who regularly visited various local employers asking, “Are you happy here?” and “What can we do to help you so you remain that way?”“
The downturn in retail is of course the reflection of the nation’s overall economic malaise shown by various indices of consumer confidence, one corollary to how deeply in debt many of us are. As in the past, we’ve always managed to work out our personal financial
affairs and so time will end up being the cure in this case.
More generally speaking, the key to turning the area’s economy around must come through the maintenance and expansion of the riches we already have and getting Columbia’s economic vehicle moving on all seven cylinders.
That leads me to the tender subject of the sector that has supplanted the factory as the traditional employer of people—development and construction. This is the bête noire to a sub-stantial group of people on the local political scene who otherwise describe themselves as “progressive.”
These “progressives” surface from time to time as legitimate development proposals wind up getting close to being tossed under their rolling bus of opposition at various meet-ings of the Columbia City Council and the advisory Planning and Zoning Commission. “Progressive” to them means denying entre-preneurs the opportunity to invest, employ and hopefully profit from their experience here. The irony here is that the things they consider pro-gressive – and we all know what these luxuries are – are typically cut back or eliminated at the first sign of a swoon in sales tax receipts.
For 2009, progress for Columbia as well as the 13 surrounding counties, the core city stim-ulates will come through cooperation among all constituencies so we can whip the present economic downturn. The so-called “progres-sives” need to realize that construction and development are key components of our eco-nomic engine.
On a recent road trip that included desti-nations to Salisbury and Bowling Green, my youngest son asked why Moberly was called “The Magic City.”
If my knowledge of trivia is correct, Moberly was given the moniker because tor-nadoes seemed to magically avoid the city. Unfortunately, within the last 10 years or so the magic wore off. The pride of Randolph County took a hit from a Missouri twister.
Such may be the case for Columbia as the city endures the current economic upheaval.
We’re officially now in a “recession,” and this chapter of our economic history should be viewed as a time of correction. The last quarter of 2008 and the bulk of 2009 will be a time of reckoning. Our consumer society is getting a wake-up call. We are learning that we cannot indefinitely spend more than we make. Government, business and personal spending habits will be reviewed, redefined and prioritized.
Locally, we have often boasted that our economy is recession proof. With an expansive higher education community, regional medical services and regional insurance company offices, we have falsely believed that hard times would pass us by.
Unfortunately, hard times are the only teacher able to wake us from such senseless notions. Why do we fail to understand that ever expanding affluence is not the norm? The last major jolt of economic tumult was during the Jimmy Carter presidency. Before that was The Great Depression. There have been bumps
large and small along the way, but nothing such as we are in the midst of at this time.
As a society we have literally forgotten our roots. Like it or not we are an agrarian society. We do not understand agriculture, the cycles of nature or the less predictable cycles of life. Far too many of us have no clue of how to feed ourselves if the grocery store does not open tomorrow. As a group, we are not prepared for winter. We do not understand that life ebbs and flows. Now is the time to recognize our roots, study life and adjust accordingly. Fortunately, this cycle too shall pass.
In the meantime we should be frugal, pay down our debt, count our blessings and be mindful that if we cannot afford that which we desire, it’s possible that we do not need it. Such is the case with our college community.
We have all sorts of innovative taxing schemes designed to extract from taxpayers funds that often would not be approved by ballot issues. Tax-Increment Financing, TIFs, and Transportation Development Districts, or TDDs, are designed to provide funds that are not available in routine budgets.
Taxpayers are unusual critters. We despise taxes yet desire all of the embellishments of modern living and wish all the while for someone else to pay the cost. How many of us would vote for an extra 1/2 cent sales tax for streets and traffic signals in the area of Broadway Market Place and Stadium Shoppes? The TDDs seem to possess the most reasonable cost benefit relationship because a long-term, real asset is constructed for public use.
What about TIFs though? Tax money is given to a developer because banks do not see the project as viable (otherwise they would loan the funds) or other locales are competing for a particular employer. The No. 1 pitch to politicians is that the developments provide jobs. Communities need employers. And they need good employers. We do not need any more minimum wage jobs. These jobs are useful for part time-workers and transition workers but cannot be relied upon to build strong economies.
As we consider use of a TIF, we should require that the jobs created be well above minimum wage. In fact, if the jobs created are not technical or professional the project should not be a candidate for TIF funding.
Finally, why are we considering use of emi-nent domain for redevelopment of the south downtown area at this time? The Sasaki report is useful for planning and shaping the future appearance of the area. Should we take prop-erty off the tax rolls and cut sales tax revenues now?
The Historical Society does not have an identified source of funds for the project. Only this past legislative session have funds been appropriated for use as planning dollars. Considering the current economic cycle, let’s slow down, allow the Historical Society to pro-ceed with all due diligence in its site planning and fundraising then discuss condemnation of the ground.
Now is the time to be prudent and delib-erate, not hasty or rapacious.
Soap Box
Year of reckoning ahead as ‘recession-proof’ designation proves illusory
Larry Schuster
Larry Schuster is a former city councilman and political observer.
11 January 10, 2009 C
olumbia B
usiness Times | C
olumbiaB
usinessTimes.com
vOICES
It was, perhaps, the most telling comment from a public official in all of 2008, speaking volumes about the way local government—city, county, and school board—operates.
Boone County Assessor Tom Schauwecker was feeling frustrated, the Columbia Daily Tribune reported—frustrated about a repeat of the same old doom and gloom budget scenarios that were preparing to hand his employees a meager 1 percent pay raise.
He called the raise “insulting” and then said the most astonishing thing to the Tribune’s reporter:
“Adding to his frustration were the recent capital acquisitions, such as the Johnston Paint and Lifestyles furniture buildings, which he said depleted reserve funds and did not go through the budgetary process.”
Two major expenditures totaling nearly 2.7 million reserve-draining dollars did not go through the budgetary process. With this assertion on Jan. 4, 2008, assessor Schauwecker had accused the Boone County Commission of financial malfeasance.
He had also laid waste, in one short sound bite, to an old canard that rules the halls of power in this community with an iron fist: There is no money in the budget.
Not true, at least not when it comes to satis-fying the fiscal appetites of well-paid chieftains for new office space, pet projects and patronage to the powerful.
True to form, local media let Schauwecker’s comment go, either failing to recognize its implications or failing to care. That’s unfortu-nate because falsely labeled gloom-and-doom budgets continue pummeling us from all
sides, implicitly threatening higher taxes and explicitly reducing or denying important human services, from animal control to police protection to reasonable wages for lower level government employees.
Profiting from doomFor most anything that senior staffers want,
there’s money in the coffers. But for basic ser-vices taxpayers and voters need, the money suddenly vanishes.
It’s a game Third Ward City Councilman Karl Skala knows all too well. “The city budget has money under every rock,” he has said. “The trick is in finding it. Only the city manager really knows where all the money’s buried.”
From those buried dollars, a mighty $23 mil-lion city hall is growing. So too a $15 million parking garage, and hefty pay increases for senior city administrators.
Though fiscally prudent in one sense, City Hall’s tight-fisted culture has helped concen-trate too much power in the office of the city manager. Elected council members can approve their priorities—a new sustainability director, for instance—only to have the non-elected city manager overturn them by clamping down on spending.
Facing reduced sales tax revenues this year, Columbia City Manager Bill Watkins—unilaterally and without a council vote— placed “a budgetary hold on all so-called supple-mental items, including additional personnel, approved by the Columbia City Council for the 2009 fiscal year,” the Tribune reported.
“I heard about all this the same way you did,” Skala told me. “By reading it in tonight’s paper.”
Reservations about reservesLate last month, on the heels of creating a
new “public information officer” position, the Boone County Commission summarily denied a much-needed funding increase for the Central Missouri Humane Society (CMHS), which for local government functions as a cheap alterna-tive to a proper animal control center.
After publicly promising to help the agency “with a significant investment,” Northern Boone County Commissioner Skip Elkin joined other county commissioners in voting down their request. Under a city/county contract, CMHS receives $110,000 yearly to take in approximately 4,500 animals as a municipal dog pound, leaving the non-profit group about $300,000 short.
Down from last year’s 1 percent raise, the gloom-and-doom county budget provided no raise for county employees this year, despite nearly $17 million in two rainy-day piggy banks—$11 million in general reserve funds and another $6.57 million in undesignated/unreserved funds on this year’s $51 million budget, according to recent Columbia Tribune reports.
Together, the two funds amount to a whopping 33 percent reserve that dwarfs the Columbia school district’s 16 percent reserve. Nonetheless, Elkin said the commission was cracking down on spending.
“If we invest more, there’s going to be more accountability,” Elkin told the Tribune on Christmas Eve. “Our reserve is not like a slush fund that we can do with whatever we want.”
Tell that to the county assessor.
Citizen Journalist
Boone County’s profits of doom
Mike Martin
Martin is a professional journalist and National
Press Club member. Locally, he operates the Columbia Heart
Beat, an online alternative newsweekly at columbiaheartbeat.blogspot.com. reach
him at [email protected]
Recently, I have given a lot of thought to the plans for the city’s mixed-use parking facility.
One thing I have not seen or heard about is property taxes. I am assuming the city would not be paying the county any property taxes for this building.
Another thing not mentioned is that the scope of this project should allow the retail sites to be built at an economy of scale, thus having a cheaper per square foot cost than a competi-tor’s building.
I believe these two issues will give the city an unfair advantage.
I realize the city intends to rent the units “at market rate,” but there is a fundamental problem with this concept as it relates to the current economy. Currently, there is a higher vacancy rate than we are historically used to. This forces landlords to both lower rates and relax on terms in order to secure tenants. This natural course of landlords deciding how much they can lower their income and tenants deciding what is acceptable to them in the cur-rent market is what causes the natural ebb and flow of rates and terms.
In a declining market, whoever can afford to offer the lowest rent will fill up faster. Since the city is using tax dollars to build a large-scale project—and I assume they will not pay prop-erty taxes—this puts them in a position to beat out all other landlords.
The problem is there is no “going rate” in this economy. In a stable economy a going rate
is easily attainable, but, in an environment of declining rents, who is to decide what the market rate is? I know the city plans to hire professional management, but their goal will be to fill up the property.
As a broker, I can attest that we work with what we are given to get properties to the income producing stage. It will be difficult if not impossible for a broker to say, “This prop-erty could afford to be leased at $12 per square foot, but the going rate is $14, so we will let this property sit vacant” (this is not necessarily the going rate but simply an example).
Assuming it’s possible to ascertain exactly what the going rate is, and the city can stick to this, I believe this project is unfair and negatively impacts the community for several reasons.
1. Increasing the vacancy rate even more. We are already seeing higher vacancy rates, and adding a new building that starts empty adds even more vacancies to the already abundant selection. This will lead to even more empty storefronts, which are unattractive and counter-productive to the initial goal of making down-town look better while improving parking.
2. Higher vacancy rates softening the market. As vacancy rates increase, rent should techni-cally decrease. This goes back to the initial problem of obtaining a market rate. It will be even more difficult to achieve when the city is pushing rental rates down.
3. Government competing with citizens. Historically, the government—specifically in Columbia—does not compete with citizens. Revenue-producing aspects of the government are typically restricted to citizens, or the bar-riers of entry prohibit citizens from competing.
On a local level there are two specific things that come to mind. The first is public trans-portation and the second is parking. The city has restricted anyone from making money on parking because it is a primary income producer for the City of Columbia. I person-ally can-not think of any past instance where the city has entered into competition with the citizens. It is unfair that the city can choose to compete with us, yet we are unable to compete with the city. Worse yet it is the citizen who is being competed against, paying for his compe-tition (tax dollars fund the city).
Most properties are locally owned by Columbia citizens. Most of these owners simply own either one or a small handful of properties, and they are not large scale devel-opers or people with a lot of extra money to lose. They simply made some wise invest-ments in a beautiful and economically growing community. Now these owners are in trouble. They are losing rents to vacancies, businesses going bankrupt and falling rents, and the city wants to put an even larger burden on them by raising vacancies, lowering rents and unfairly competing with them.
Guest Column
City parking garage with retail space gives city unfair advantage
Scott Wendling
Scott Wendling. Wendling is a
commercial broker/salesman with HoB Commercial realty
Group. Email: [email protected]
12 January 10, 2009 C
olumbia B
usiness Times | C
olumbiaB
usinessTimes.com
AGE:53JOB DESCRIPTION: Author, sportscaster and broadcaster. I host the Tiger radio basketball post-game shows. I have done some broadcast work, recently for Fox Sports Net. I do sports once a week for the Mark and Brian Radio Program, which is based in Los Angeles and syndicated through much of the western United States. I have written two children’s book for Mascot Books. Those books are “Hello, Truman!” and “Hello, Truman! Show Me Missouri!” I also co-wrote and published “MizzouRah! Memorable Moments in Missouri Tiger Football History.” I also write a daily sports column for the Official Sports Report, a daily e-mail sports publication. YEARS LIVED IN COLUMBIA: Four and a half.ORIGINAL HOMETOWN: Munster, Ind. EDUCATION: B.J. from the University of Missouri, 1977. COMMUNITY INVOLVEMENT: Stand By Me Mentor at West Boulevard Elementary School. PROFESSIONAL BACKGROUND: Upon graduation from the University of Missouri in 1977, I was a
sportscaster for WOTV in Grand Rapids, WLWT-TV in Cincinnati (our anchorman and commentator at the time was Jerry Springer), FNN/
Score Network in Los Angeles (where I hosted a sports trivia show called “Time Out For Trivia”), KABC-TV in Los Angeles, KLOS-Radio in Los Angeles, Fox Sports Net in Los Angeles, ESPN Radio in Los Angeles. I’ve also done freelance work for NBC Sports, ABC Sports, Turner Sports and Fox Sports Midwest.
A COLUMBIA BUSINESSPERSON I ADMIRE AND WHY: Cynthia Schreen because I have known her for 30 years, and Gary Evans because he
keeps his golf ball in the fairway.WHY I’M PASSIONATE ABOUT MY JOB: I love sports. I love sports
stories. I love telling those stories in both the written and spoken word.IF I WEREN’T DOING THIS FOR A LIVING, I WOULD: Be teaching. I think we are all teachers.
BIGGEST CAREER OBSTACLE I’VE OVERCOME AND HOW: Too many hurdles to pick out just
one. I think that’s the way it is for most people.
A FAVORITE RECENT PROJECT: My newest book, “Hello, Truman! Show Me Missouri!,” which can be purchased at
bookstores and at www.mascotbooks.com.
WHAT PEOPLE SHOULD KNOW ABOUT THIS PROFESSION: There are no 9 a.m. to 5 p.m. jobs.
Lots of nights, holidays and weekends.WHAT I DO FOR FUN: Golf, gardening, Mizzou sports and family.FAMILY: Wife Paula is an English teacher at Jefferson Jr. High School. Son Kevin is a sales rep in Oklahoma City for
Nestle. Kevin is married to Lauren, who is a second-grade school teacher. They have one daughter, Meghan, who is two months old. Son Jeff is a second-year law student at the University of Missouri School of Law. Son Scott is a junior in engineering at the University of Missouri.FAVORITE PLACE IN COLUMBIA: The first tee at Country Club of Missouri.ACCOMPLISHMENT I’M MOST PROUD OF: I married Paula Gerber on Aug. 18, 1979, and we’re still married.MOST PEOPLE DON’T KNOW THAT I: I was a professional wrestler for one night. I wrestled Pretty Boy Bob Harmon at the old Cincinnati Gardens. I lost. Andre the Giant was also on the
wrestling card that night. I also once bought a hot dog for Magic Johnson at the Chicago airport when Magic was only 17 years old. I have reminded Magic on numerous occasions that he still owes me a hot dog.v
Todd DonohoMizzou Sports Properties, Fox Sports Net, Mark and Brian Radio Show, Mascot Books, the Official Sports
Report, Donoho Ink, LLC.
PEoPLE you SHouLD KNoW
photo by jennifer kettler
13 January 10, 2009 C
olumbia B
usiness Times | C
olumbiaB
usinessTimes.com
vOICES
By James P. McNabb
It’s critical to plan for business continuity, and now is the perfect time of year to either begin or review your process.
The most likely widespread devastating event that could occur in Mid-Missouri would be a tornado. Tornadoes may occur during any month of the year, with the most active season beginning in March. So now is the time to prepare, even more important during this period of economic slowdown.
A disruption may come from a variety of commu-nity-wide natural or man-made disasters, such as a widespread health outbreak, or a specific event, such as a fire, that may only affect your business. If you’re ready now, you can survive.
Small Business Association (SBA) statistics dem-onstrate that after a disaster, 60 percent of businesses within the disaster-involved area will fail—regardless of a direct operational impact or damage. An example would be a commodity-based business that receives and distributes goods. Customers, vendors and suppliers may not be able to gain access to the busi-ness due to debris or roads and bridges being out. Customers, vendors and suppliers may be impacted by widespread utility outages. Staff can be affected by these same burdens and could be unable to get to work. Virtual isolation from the outside world could devastate a business.
Here are some basic points to consider when plan-ning for potential disasters and other emergency situations:
• All employees should be included in the plan-ning process.
• Begin by training yourself and your staff on what to do during an emergency or disaster and what’s expected from each of them. (Remember fami-lies always come first. Caring for families frees the employee from worry and affords them the time and opportunity needed to get back to you and business concerns.)
• By using an all hazards approach, you can be pre-pared for any event that may occur. Rather than plan-ning for each type of event weather, fire, earthquake, or man-made, just know that most disastrous events will create injuries, illness and loss of life, property, infrastructure and utility service. Planning for the impact of these potential issues and not specific types of events, will prepare you for anything!
• Basic considerations for more detailed planning: o business continuity planning o emergency planning for employees
and customers o emergency supplies o sheltering in place or evacuation o practicing your plano supporting and encouraging family and indi-vidual preparedness
• Have a weather-alert radio on site and monitor it—don’t turn it off (NOAA weather radio with SAME notification can be obtained from most stores that sell electronics).
• Have emergency and essential phone numbers readily available at multiple locations—maybe even in your car or at home. Include up-to-date lists of all your shippers, suppliers, customers and other crucial resources. You may be affected by an event that doesn’t directly impact you but may impact your supplier or banker.
• Plan evacuation routes and procedures for employees and customers—and practice it. Include sheltering in place.
• Plan for people with special needs. • What operations are critical to the survival and
recovery of your business? o Which staff, materials, equipment, and
procedures are absolutely necessary to keep your business operating?
o Establish a process for succession of management and each critical position at least “three deep,” if possible.
• Prepare for an occasion where your facility and staff are fine, but your building or facility is inacces-sible, even though it may not be damaged.
• Most importantly, review and practice several times a year. As your business changes, so will your emergency needs. Do not be satisfied with an outdated plan.
• Remember: Your most valuable assets are your employees. Let them know what’s going on during all levels of the process-mitigation, preparedness, response and recovery. Let them plan for their homes and families first and the business second.
• Have a third party out-of-town phone number where employees can get information and leave an “I’m OK” message. Do this for your family as well.
There are many software-based plans and pro-grams available on line or in stores to help with the planning process. Many private companies and firms are available to provide business input analysis, risk assessments and continuity planning.
McNabb directs the Columbia/Boone County Office of Emergency Management
County View
Emergency plan critical to ensure business continuity
The Mississippi Fish Shack is
Brian Rowles prepares a fried chicken dish served with sweet potatoes, greens, red beans and hush puppies.
Frog legs sit in Mississippi Fish Shack’s secret breading recipe. Customers can now buy the breading in the restaurant.
By Joanna Schneider Photos By Jennifer Kettler
After one meal, Eliot Battle was hooked on the Mississippi Fish Shack.
Now, the former Columbia public school administrator comes to Kim Perry’s downtown restaurant twice a day, six days a week. The wait staff knows his order by heart and has his Diet Pepsi waiting.
“I grew up in Mobile, Alabama, and for me this is like home,” Battle said.
The sweet potatoes, greens, corn fritters and pickled beets are his favorites. “And sometimes, some frog legs,” he added.
The home-style appeal of the restaurant, located in the old Villages Wine and Cheese space at Broadway and Tenth Street, goes beyond the food. Perry, who moved the restau-rant from Boonville and opened it six months ago, gets help in the kitchen from her hus-band and a grown son, and in the dining room from her daughter.
“Ms. Kim,” as her em-ployees and customers call her, decorated the restaurant with family photos and knick-knacks reminiscent of a grand-mother’s living room.
“This place has a little bit of everything,” Perry said. “Woodwork that my son made in shop, trinkets from auctions and yard sales, family photos, my granny’s antique refrigera-tor, a collection of pottery and porcelain fish and craft projects I have done with my employees. I guess I am just a wacky creative artist. It’s all just a lot of fun.”
Mississippi Fish Shack also has become a diverse gathering spot for the community.
“I don’t look at color,” Perry said. “But I do know that people have told me this is the first black-owned restaurant downtown in decades. All I know is that I am here to serve good food, and I love seeing the diversity that walks into my front door.”
Perry decided against serving alcohol in the restaurant, in keeping with her effort to make the restaurant a family gather-ing spot. Perry was an only child but was constantly in the midst of large gatherings and the beneficiary of home-cooked meals prepared by her mother and grandmother.
Perry inherited some of her mother’s ways around a stove and spent years whipping up family favorites — like red beans and rice, potato salad, fried fish and macaroni and cheese — for rooms full of relatives and friends. She always had hot, home-made food on the table.
Before becoming a professional cook, Perry was a chemical safety engineer with General Motors in Mississippi. To spend more time with her children, Perry began her own safety and health consulting company, Safety First, Inc. in 1994. After 13 years of building her business, Perry realized she was traveling too much and spending less and less time with her family — the initial reason for beginning her company.
Perry had family and friends in Boonville, so she made the move to mid-Missouri. A walk through downtown Boonville
in May of 2006 and delicious memories of a Jackson, Miss., fish restaurant, Eddie and Ruby’s, brought inspiration. She spotted a vacant 700-square-foot space, and in January 2006, the first Mississippi Fish Shack opened its doors. It was just a take-out operation with a 10-item menu, but it soon had a slew of devoted patrons.
“Before I ever opened the restaurant I knew my fish was good,” Perry said. “If I fried fish, people would come. We had a small budget and the bare necessities but I knew it would be successful.”
Soon, Mississippi Fish Shack’s popularity had outgrown its space, so Perry moved her restaurant to a larger space in Boonville in November 2006. With a menu four times the size of the original, the restaurant filled with people wanting “good, hot fish,” Perry said.
Perry’s talents are apparently not limited to the kitchen. She is a savvy business woman who recognizes the basic principle of
a successful restaurant: quality, de-licious food. That made it possible for her to not advertise.
“It really was all word of mouth,” she says. “Some people think that’s crazy, but it has always worked for me and has kept people coming in the door.”
When Perry’s mother became ill, she decided to shut down her booming Boonville business in October 2007. But it was temporary respite from the bustling restaurant business. Heeding the pleas of her children, Perry decided to move from Boonville to Columbia. On July 31, 2008, she opened the doors of Mississippi Fish Shack once again.
Perry, who often works 16 hour days, makes all her seasoning from scratch, orders her catfish from Mississippi, hush pup-pies from Tennessee, frog legs and shrimp from Florida and all her produce locally. She has made a point of hiring and mentoring young people from state rehabalitation programs who have had trouble with drugs and alcohol.
“I wanted to give something back that was given to me,” Perry said. “To me, food is love
and I wanted to create a space that was just like home.”Working alongside Perry, her husband, Plas, and grown chil-
dren, Alan and Erica, help to keep the restaurant running, pitch-ing in where needed. Erica often works as a waitress while Plas and Alan help out as fryers in the kitchen.
“I think we have been successful because this is just a dif-ferent kind of food than any other restaurant,” Mcadory said. “The homemade seasoning and breading (Kim) makes sets the food apart and more than being a great cook, she’s a very hard worker.”
In addition to great food, the bond that Perry has with her customers and employees is a true rarity, said head waitress Larisha Jones, who has been working with Perry since the res-taurant’s Columbia opening this summer.
Perry “cares about her employees and they want to come to work,” Jones said. “She loves seeing familiar faces come in week after week, and we develop definite relationships with our cus-tomers. Plus, when you have catfish, corn fritters, greens and ba-nana pudding like we have, people will keep coming back.” v
southern fried, family friendly
The Mississippi Fish Shack is
Mississippi Fish Shack owner Kim Perry
prepares her popular sweet potatoes.
Fried Chicken is one of Mississippi Fish Shack’s most
popular dishes.
Waitress Larisha Jones says staff and customers bond over
the soulful food they serve.
Mississippi Fish Shack929 E. BroadwayColumbia, MO 65201573-814-FISH (3474)Winter hours:M-Th 11 a.m.-8 p.m.F-Sa 11 a.m.- 9 p.m.
16 January 10, 2009 C
olumbia B
usiness Times | C
olumbiaB
usinessTimes.com
NEW BUSINESS UPDATE
Woodstone Design GalleryWoodstone Design Gallery is opening a new showroom and expanding its line of services. The
company is working with Floor to Ceiling and adding cabinets, carpet, tile, fixtures and wood floor-ing to its line of granite and quartz countertops. The new showroom is located at 202 E. Nifong Boulevard, the original location of Woods Auto Gallery, between Shake’s and B&B Bagel.
The location, owner Jeremy McBee said, is ideal because there is no store offering the range of goods and services his store offers on the south side of Columbia.
The expansion is designed to be a full service one-stop-shop where customers can hire a certified interior designer on one end or just buy tile for their floors on the opposite end, he said.
Even though construction has slowed down considerably, McBee said that isn’t affecting his busi-ness. “People are remodeling like crazy,” he said. “They’re fixing up what they have. Things in the economy are slow, so we’re selling to our existing customers.” v
NEW BUSINESS LICENSESCalifornia NailsHuy Ngoc Viet Nguyen573-446-60342300 Bernadette Dr., STE 100Nail salon
Carroll Tire co.Carroll’s, LLC3300 Range Line St.Wholesale/retail tires
Central TaxiMichelle Conole Silvey573-289-81211908 Heriford Rd.Taxicab
It’s A GrindDennis Palmer573-443-52824603 John Garry Dr., STE 1Coffee house
Mattresses For LessDarren Brookman3502 I-70 Drive SoutheastRetail mattresses
63 Auto SalesMoez Aschi573-449-5544922 East Business Loop 70Used auto sales
Blade Runner Sharpening LLCCorby Dehn Roberts4409 Cheryl Ct.Mobile knife sharpening service
Blue Crest VenturesBonnie Maiers573-815-93533114 Dup Wind River Ct.Management consulting
CastlebrideKirstin Fox951-217-79112009 Hilda St.Wedding veils
Cynthia Patz, LMTCynthia Kay Patz314-779-61802801 Rollins Rd, Apt. 4Massage therapist
Hill PhotographyNicole Dawn Hill573-239-86241500 Bldg 5, Fellows Pl., Apt. DPhotography services, shoots, editing, ordering
Hockman Interior DesignSherry Hockman573-443-85102413 Lacewood Dr.Interior decorating
I Got ThatDeborah Lucille Williams573-886-40083908 Oakland Gravel Rd., Apt. DShopping, wake up calls, etc.
Need A Nanny AgencyElizabeth Diane Mashburn573-489-13061509 Marylee Dr.Family nanny location service
Oracle Financial Services, LLCPreston Hammond573-529-6671105 Albany Dr., Apt. DTax preparation, accounting, financial consulting
Tiger Handyman, LLCSteven Leible573-447-44854900 Silver Cliff Dr.Home maintenance, painting and landscaping
ABOVE: Woodstone Floor to Ceiling recently opened its doors in Peach Tree Plaza next to Shake's. The home store specializes in fine cabinetry, countertops, carpet, tile, hard woods, fixtures, blinds and lighting. Pictured here, from left, Sales Representative Jon McCullen, Owner Jeremy McBee and Interior Designer Linda Held. "In granite alone we do 10 to 15 a week for granite countertops," said McBee.
LEFT: Owner Jeremy McBee puts together a Danze faucet display in his showroom located in the Peach Tree Plaza.
NEW BUSINESS PAgE SPONSORED By:
17 January 10, 2009 C
olumbia B
usiness Times | C
olumbiaB
usinessTimes.com
PUBLIC RECORDDeeds of Trust more than $216,930 $5,584,350.00 GRINDSTONE INVESTMENTS LLCCITIZENS BANK & TRUST COSTR 15-49-12 //SW SUR BK/PG: 2788/41 AC 15.530
$3,500,000.00 BAKER FAMILY CO THEPREMIER BANKLT 1 CENTERSTATE PLAT 8
$1,600,200.00 MCVEY INVESTMENTS LLCCALLAWAY BANK THELT 2A1 ROCK QUARRY PUD PLAT 1A
$1,520,000.00 GTM RENTAL PROPERTIES LLCFIRST NATIONAL BANK & TRUST COLT 15 PT FF BEASLEY’S SUB
$1,520,000.00 MORGAN, GREGG T & AMY JFIRST NATIONAL BANK & TRUST COLT 31 MARK TODD SUB
$885,000.00 WARNKEN PROPERTIES V LLCCENTRAL TRUST BANKLT 9 FYFER’S SUB
$835,000.00 CALHOUN, JASON H & KAREN HCOMMERCE BANKLT 60 COUNTRY WOODS SUB PLAT 2
$531,347.00 CARR-YAGER FUNERAL HOME LLCMERCHANTS & FARMERS BANK (FAYETTE)LT 20 PT CONLEY & PERKINS SUB
$520,000.00 LEMONE FAMILY LIMITED PART-NERSHIP LLLP THEFRONTENAC BANKLT 29A CONCORDE OFFICE & INDUSTRIAL PLAZA PLAT 14-
$520,000.00 SMITH, THOMAS RFRONTENAC BANKLT 29A CONCORDE OFFICE & INDUSTRIAL PLAZA PLAT 14-
$417,000.00 PETTIT, TED N & CATHERINE MIEKOBOONE COUNTY NATIONAL BANKLT 110B VILLAS AT OLD HAW-THORNE PLAT 1 THE
$417,000.00 TAYLOR, GARRETT S & TRISHA ABOONE COUNTY NATIONAL BANKLT 10 HERITAGE WOODS PLAT NO 1
$409,571.00 918 BROADWAY LLCFIRST NATIONAL BANK & TRUST COLT 163 PT COLUMBIA
$407,000.00 SZARNECKI, GREG & JOANNABOONE COUNTY NATIONAL BANKLT 11 BRISTOL LAKE PLAT 1
$403,750.00 FETE, TIMOTHY J SR & MARY DESSEX MORTGAGE COMPANY LLCLT 106 SPRING CREEK PLAT 1
$380,000.00 SIGMA CHI FRATERNITY OF MIS-SOURI THEBOONE COUNTY NATIONAL BANKLT 65 PT PRICE ADD
$355,000.00 SIMMONS, JEFF & AMYCENTRAL TRUST BANKLT 161 THORNBROOK PLAT #5
$346,071.00 JAMES, DAREN & JULIATAYLOR BEAN & WHITAKER MORT-GAGE CORPLT 15 THORNBROOK PLAT NO 1
$337,500.00 CEDAR CREEK HOMES LLCMAINSTREET BANKSTR 8-50-13 /E/NE
$327,575.00 MANRING, NOAH D & POLLY JBOONE COUNTY NATIONAL BANKLT 98 CASCADES PLAT 1 THE
$312,772.00 KUCHTA, TIMOTHY N & JUDITH ACOUNTRYWIDE BANKLT 30 HARPERS POINTE BLK 2
$307,000.00 MITCHELL, KERBY LYNN & EVELYN FBOONE COUNTY NATIONAL BANKLT A GREENTREE CONDOS
$300,000.00 DAVIS, ROBERT J & AMYBOONE COUNTY NATIONAL BANKSTR 32-47-11 /S/SW SUR BK/PG: 573/495 FF TRACT 4
$296,000.00 GREENLEE, GARY M & ANNETTEMID AMERICA MORTGAGE SER-VICES INCLT 34 FF CALL’S ADD
$291,000.00 BECKETT, JAMES L REVOCABLE LIV-ING TRUSTMID AMERICA MORTGAGE SER-VICES INCSTR 25-49-14 //S FF WITH EASE-MENT
18 January 10, 2009 C
olumbia B
usiness Times | C
olumbiaB
usinessTimes.com
State Bar establishes resource for debtorsBy Sean Spence
Responding to the nation’s recently declared recession, The Missouri Bar has created an online resource to educate consumers and businesses about their legal rights and responsibilities when fac-ing difficult financial issues such as bankruptcy or foreclosure.
The Web site, “Managing Your Credit and Debt in Difficult Times,” can be found at www.mobar.org/moneyguide.com.
“The more that people understand about the laws affecting debt and credit, the better able they are to limit the damage that a personal financial crisis can bring,” Tom Burke, president of The Missouri Bar, said in a statement.
The site provides links to articles and other resources created by state and federal governmental agencies, organizations and media outlets. In many cases, articles offer practical tips for avoiding or addressing problems; in other cases, contact information is provided for those seeking more in-depth information or direct help.
Topics include “Handling Demands from Debt Collectors,” “Foreclosure and Holding Onto Your House” and “Legal Myths about Credit.”
Michael McCrary is a Columbia attorney who said 70 percent or more of his clients are seeking his help with a personal bankruptcy. He said consumers often get into trouble because they don’t understand how big their problems are until it is too late.
“There is value in the site because it seems to be well presented in a way that is easily digestible for the average consumer,” McCrary said. v
Lafferre helps engineering college meet goalUniversity of Missouri’s College of Engineering was able to reach its $68 million goal for the For
All We Call Mizzou campaign with the help of alumnus Thomas Lafferre and his wife, Nell, who made a challenge donation that resulted in a $5 million estate gift.
“As the end of the campaign approached, we realized that the college would need increased sup-port to achieve the goal,” Lafferre said. “We decided to make an anonymous pledge to encourage other donors to make gifts throughout the last months of the campaign.”
The Lafferres matched the donations and pledges of other donors by increasing the amount of the estate gift as the other gifts were received. The couple has requested that the $5 million gift be desig-nated to an unrestricted fund, allowing MU College of Engineering Dean James Thompson to make strategic investments in the college. The unrestricted fund will be used to update facilities, fund and enhance faculty salaries, and address other needs.
Subway takes bite from sales to fund schoolsFor six Saturdays in January and February, local Subway stores will donate 10 percent of their
sales to the Columbia high schools. “Hopefully, this will help the schools provide the resources the students need” said Jeff Offutt,
owner of Columbia and other area Subway stores. “Computers and books can be very expensive and maybe with the proceeds this generates, some of the costs will be defrayed.”
Offut decided to make the donations after learning that the state budget shortfall could have an impact on education funding, Marketing Assistant Michelle Marcum said.
The 12 subways in Columbia and 2 Subways in Fulton will be participating in the program and the proceeds will be distributed between Rockbridge, Hickman and Fulton high schools.
United Way nearly meets local campaign goalIn October, Heart of Missouri United Way projected that the economic downturn might cause the
organization to fall 10 percent below its goal for the annual fundraising campaign.The local United Way started a supplemental campaign called LIVE UNITED Week in November,
and the organization announced last month that it set a new record for the annual fundraising effort.
The campaign raised $3.25 million, which was 2 percent short of the 2008 goal, according to the campaign chair, Terry Coffelt, a vice president at First National Bank and Trust Co.
The Heart of Missouri United Way will use reserve funds to make up the shortfall, and Executive Director Connie Benton Wolfe informed partner agencies that the organization anticipates no fund-ing cuts for 2009.
“This is what makes Columbia, Boone County and our entire seven county service area so very special,” Coffelt said. “We asked our community for help and they demonstrated their commitment to one cause, one community.”
Local grounds maintenance companies merge Missouri Mowing owner Jed Taylor and Columbia Turf owner Bill McWilliams have formed a
joint partnership and began doing business as Columbia Turf, LLC on Jan. 1.The co-owners will operate three divisions: Columbia Turf – Grounds Maintenance, Columbia
Landscape – Design/Build and Columbia Turf – Snow Removal. Taylor will run the landscape division and McWilliams will run grounds maintenance and ad-
ministrative functions. The company will have more than 50 employees and 24 trucks and will oper-ate out of the Midway facility at 7105 Henderson Road.
BUSINESS BRIEFS
19 January 10, 2009 C
olumbia B
usiness Times | C
olumbiaB
usinessTimes.com
Customer Service » Lili Vianello
Customer servicebooming in a recession
When the economy starts to creep toward a recession, every-one’s gut instinct is to freeze spending. Marketing is typically the first thing to go. I’ll let you in on a little secret, though. Based on advertising industry history and personal experience, slashing your marketing budget may not be the best strategy to help your company endure the economic downturn. A different approach may not only help you survive the recession, it could provide a major opportunity to come out ahead!
There are two main strategies to apply when advertising—re-gardless of the economic climate. One is to motivate consumers to fill a product or service need at the time. The second is an ongoing presence campaign designed to build consumer recognition and top-of-mind awareness for your company or product. If customers are not buying right now, you want to be the first one they think of when they are ready to make a purchase in your category.
Many savvy organizations employ a combination of both strat-egies to accomplish their goals. They are essentially investing in today and tomorrow. If you are one of those smart business own-ers who have successfully invested in advertising efforts over time and you decide now to pull out or sacrifice frequency and reach to cut costs, you are walking away from the equity built from previous advertising investments.
A better move would be to use the relationships you have built with the media, coupled with their need to maintain their rev-enues, to negotiate better rates, better placement or additional value added opportunities. Media outlets are concerned about maintaining their share of your expenditures. Most will be will-ing to work with you to obtain a larger percentage of your buy. What a great way to make your company’s marketing dollars work harder.
Likely, your competitors are going line by line through their budgets to find what they can cut, a respectable method to weath-er the storm. In many cases, advertising budgets will get slashed. This is a big mistake for them, but a lucky break for you. This provides you a golden opportunity to steal market share from competitors who choose to do little or no advertising. With a less cluttered advertising landscape, it will be easier and less costly to reach consumers with your campaign. Also, with competitors less visible, a creative, consistent advertising message for your busi-ness can have dramatically improved effectiveness and increased return on investment.
On the other side of the coin, your competitors may also be wise to this tactic, which means you need to keep your advertis-ing investment stable just to stay competitive. Slashing your mar-keting budget leaves your market share vulnerable to the compe-tition. v
Lili Vianello is President of Visionworks Marketing & Communications, a Columbia-based full service advertising, market-ing and public relations firm offering media planning and placement. Contributions to this article were made by Visionworks staff members. Visit them online at www.visionworks.com.
Based on advertising industry history and personal experience, slashing your marketing
budget may not be the best strategy to help your company endure the economic downturn. A different approach may not
only help you survive the recession, it could provide a major opportunity to come
out ahead!
20 January 10, 2009 C
olumbia B
usiness Times | C
olumbiaB
usinessTimes.com
SPECIAL SECTION | BaNkINg/fINaNCIaL SErVICES
By Jim Muench
When banking, most people don’t have insurance on their minds. But one of Columbia’s largest banks is part of a regional insurance company based in the city.
Shelter Financial Bank, a wholly owned subsidiary of Shelter Insurance Companies, holds more than $152 million in assets, $90 million in deposits and $148 million in loans. Although most of the bank’s customers are Shelter Insurance clients, the bank is open to the general public at 1817 W. Broadway.
Shelter Bank and other community banks in town offer similar products, such as loans for cars and boats, and similar deposit products, primarily certificates of deposit and money market ac-counts. What Shelter does not have is a wide network of physical buildings and drive-through ser-vices. The lower overhead makes for greater efficiency, allowing the bank to pay more for deposits, charge less for loans and pass the savings on to customers, said Ron Wheeling, president and CEO of Shelter Bank.
“We’re a little different from other banks in that we don’t have ‘brick-and-mortar’ locations that we are operating from,” Wheeling said. “We have a physical location here … and of course we have some customers who come in and deal with us in person, but the majority of our business is done through agents.”
Shelter Insurance has 1,300 agents in 14 states who can sell banking products. Bank customers also can submit loan applications and deposits over the Internet.
“I couldn’t ask for better service or better product than what they’ve provided me,” said Mark Pfeiffer, attorney with Bley and Pfeiffer, who is both a commercial and personal customer. “They’re a creative lender; they’re not afraid to step outside the box to find creative ways of putting together a good package for their customers.”
Wayne Powell, who is a client of two other local banks as well as a long-time Shelter Bank cus-tomer, said he often purchases certificates of deposit and says he likes Shelter Bank because of its rates and service. “The rates are always competitive or better,” he said. “I’ve always liked the way they’ve tended business.”
Local Shelter agent Clint Miller said every month some five to 10 of his customers ask about the bank and usually work directly with the bank. Chuck Wilson, another local Shelter agent, said
Shelter Bank, a little-knownlocal banking asset
Shelter Bank President & CEO Ron Wheeling.
ph
ot
os
by
jen
nif
er
ke
tt
le
r
21 January 10, 2009 C
olumbia B
usiness Times | C
olumbiaB
usinessTimes.com
SPECIAL SECTION | BaNkINg/fINaNCIaL SErVICES
his clients request about five or six loans a year. “What’s good for me is it’s so simple,” Wilson said. “They just make it almost effortless to help a client get a loan.”
Shelter began the bank began nine years ago, shortly after the federal government allowed insurance companies to offer banking products, Wheeling said. In addition, he said, the bank grew out of the systemic financial service relationship that already existed between insurance agents and their customers.
“Customers already know and trust their Shelter agents to help them with insurance products – their homes, their cars, life insurance and annuities; it’s a natural extension of that financial services portfolio that a Shelter agent could offer to their customers,” Wheeling said.
The bank chose Columbia for its headquarters rather than a larger metropolitan area because its connection to the company headquarters allowed it to keep overhead low. A move to a larger metropolitan area would have meant much larger physical and operat-ing costs such as those taken on by traditional banks, Wheeling said.
“It would have meant a more retail strategy with bricks and mortar, drive through tubes, and giving out dog biscuits and suckers,” he said. “We’re sort of the Sam’s Club of banking. We’re a little bit ‘no frills.’ We don’t provide every service that typical banks do, but the ones we do provide, we provide with a great deal of personal touch and at a rate that’s typically better than most banks.”
The bank began originally as a consumer loan business, specializing in automobile loans, but has expanded to offer other types of loans, such as personal and commercial real estate loans. Because it kept a conservative focus and never took on risky loans like other mortgage lenders did, Wheeling said, the bank has not been hurt by the mortgage crisis.
“In fact, we may have been helped by it,” he said. “There was a lot of shenanigans that went on out there in the early 2000s, and we didn’t participate in them. We have not been hampered by having to deal with a large volume of bad loans like some people in the market.”
Wheeling said Shelter Bank had its best year ever in 2008, both in the amount of loans made and profitability. “We are going to break all previous existing records, both in terms of total assets and in terms of earnings as well,” he said.
Wheeling says the Shelter formula is the secret of its success. “We concentrate on safety first, and we concentrate on earnings second,” Wheeling said. “Growth is impor-tant, but we never concentrate on growth to the sacrifice of the previous two.” v
ABOVE: Shelter Insurance agent Nancy Allison helps sell bank loans.
LEFT: Customer Service Representative Teresa Hendren goes over a CD application with Faye Curtis.
22 January 10, 2009 C
olumbia B
usiness Times | C
olumbiaB
usinessTimes.com
SPECIAL SECTION | BaNkINg/fINaNCIaL SErVICES
Van Matre, Harrison, Volkert, and Hollis P.C.
“� e choice of a lawyer is an important decision and should not be based solely upon advertisements.”
In times of uncertainty, you cannot ignore potential problems or fail to plan. The lawyers at Van Matre, Harrison, Volkert, and Hollis,
P.C., have the necessary business and fi nancial expertise to help you plan for the worst and deal with business and legal complications in today’s challenging business environment.
• Business Reorganizations• Loan Work Out Plans • Business Bankruptcy
• Asset Protection Strategies• Tax Planning
• Negotiations with Debtors and Creditors • Business Litigation
• Long Term Business Planning
By Heath Hooper
The decision to change the name of First National Bank to Landmark Bank this spring is part of The Landrum Co.’s long-running con-solidation of its banks in three states, and CEO Andrew Beverley said the new moniker is a good fit.
“We tell people that we’ve been a landmark in the community since 1865,” Beverley said.
The combined worth of the consolidated holdings – which will collectively be known as Landmark Bank, with headquarters in Columbia – will be about $1.3 billion, according to bank forecasts, with capital in excess of $100 million.
Jeff MacLellan, chief executive officer and chairman of The Landrum Co., described the announcement as the culmination of years of work.
The project involving Columbia’s only lo-cally owned bank started in the first quarter of 2008, he said, adding that recent difficulties in the financial markets had nothing to do with the decision.
“However, we look smarter for having done it,” MacLellan said. “Frankly this makes more sense now than maybe it did when we first start-ed it.” The bank announced the change early to offset any fears of change given the current economic situ-ation, he said.
Bank ex-ecutives cited several reasons for choosing Landmark as the title of the consolidated operation.
“It’s a very solid name. A landmark is something that’s been there for a long time,” MacLellan said.
The change comes as the Landrum family cel-ebrates a century in banking. Marquis Lafayette Landrum, the great-grandfather of the latest generation of Landrum children. In 1909, became majority shareholder of the Bank of Mountain View, later renamed First National Bank.
In 1964, the Landrum family purchased Columbia’s Broadway and Eighth Street loca-tion, which was at the time Exchange National Bank. Mark Landrum, a grandson of Marquis Landrum, remains the largest shareholder in The Landrum Company. The name was changed to First National Bank in 1971.
The bank will remain privately held. Although the Landrum Company owns about 81 percent of First National, 19 percent is owned by roughly 140 local shareholders. The company’s employ-ee stock ownership plan also accounts for 25 per-cent of the company’s ownership.
Those shareholders will now own part of the combined bank.
The Landmark name first came into use with the company’s Oklahoma banks about 10 years ago, and The Landrum Co. owns the trademark to the moniker.
The company has banks under three titles: Columbia’s First National Bank and Trust Co., First National Bank in Southern Missouri, and Landmark Bank in Texas and Oklahoma.
The Columbia banks account for about 37 percent of Landrum’s total assets. Southern Missouri accounts for roughly 22 percent, while the Landmark wing holds 41 percent of the assets.
The consolidation has been taking place for years. The company started processing the Oklahoma banks in Columbia in 1988, bringing in the Southern Missouri banks in 1996. Recent years have seen the centralization of human re-sources functions, account services and electron-ic banking. MacLellan said the consolidation has “really been my job” since he became president of the holding company in 1995.
The company hasn’t announced all the orga-nizational changes, but MacLellan said he does not foresee any jobs being cut in the project. Some employees will take on different roles, he added.
“This is not about loss of jobs; this is more about gaining efficiency,” he said. “By putting the banks together, it’s a whole lot easier to be-come more efficient, and make some of these functions more efficient.”
Customers can expect “almost no change,” Beverley said. “What we’re trying to emphasize to people is it’s the same bank, the same owners, the same great people. Just a new name.”
Response has so far been positive, Beverley said. “What c u s t o m e r s want to hear – and are hearing – is that they’ll be dealing with the same people,” he said.
All de-cision-making will remain local, officials said, adding there’s no risk the bank will lose it’s com-munity focus.
“That’s a core part of our philosophy,” MacLellan said. “That started at the top of the list,” of Landrum family concerns as the consoli-dation began taking shape,
“We’re proud of the leadership role that our bankers have in the community. That will not change at all,” Beverley said.
For commercial customers, the consolidation means a larger legal lending limit.
The consolidation will open the door to sev-eral benefits, from easier recruiting to better ac-cess to more sophisticated banking products, MacLellan said.
“The bigger resources of a bigger bank hon-estly allow you access to things you heretofore didn’t have access to,” he said.
The company declined to provide specifics on the consolidation’s cost. “It’s not insignifi-cant, I’ll tell you that. But I think it’s worth the final outcome,” MacLellan said.
The company’s signage won’t change until the project is finished, officials said. Currently the consolidation is slated to finish by spring. It still lacks regulatory and shareholder approval, but MacLellan said he didn’t expect any difficul-ties with either. v
FNB’s new name: Landmark Bank
23 January 10, 2009 C
olumbia B
usiness Times | C
olumbiaB
usinessTimes.com
SPECIAL SECTION | BaNkINg/fINaNCIaL SErVICES
By Larry Lee
“Risk. Innovation. Deal Term Sheets. Flipping the Business.” High-tech words and phrases like these describe the very essence of hundreds of technology companies in the state of Missouri.
For traditional business banks, terms like “con-servative” and “risk-averse” are more appropriate terms...a profile that is very different from the ener-getic technology companies and all of the trappings of entrepreneurship.
Commercial banks usually loan to companies in established industries with long track records of prof-itability and strong financial statements. However, if you own a new high-tech company and are not yet generating a profit, most banks probably won’t talk to you. So where is the middle road for Missouri-based technology companies looking for a banking partner?
Banks that understand technology companies know that traditional attributes may not capture the true value of an enterprise. Such banks are willing to consider other factors. For instance, the expertise and track record of a high-tech company’s CEO and top management adds an element of worth. Another criti-cal factor for start-up firms is whether the company has gained investor backing or other capital such as SBIR research grants. If the company has received in-vestor backing, the larger and more experienced the venture capital firm or angel investment organization is the better chance the company will have to obtain a bank loan. Technology bankers will also assess the company’s intangible assets. For example, patents,
copyrights and trademarks may be considered accept-able collateral.
Solid financial health is an important criterion for today’s technology companies. Your banker is among the many key relationships you must build and de-velop as a technology company, so choose your bank and banker wisely.
Referrals are often the best way to find a special-ized bank that understands the needs of tech compa-nies. Ask your equity investors, attorneys, CPAs, or other advisors for advice. Also make sure you do your own due diligence. Researching and finding the cor-rect bank now can prevent trouble and reap enormous rewards in the future. That’s why knowing what is-sues need to be addressed at the start of your relation-ship are so important.
Tech-oriented companies should consider the fol-lowing points when searching for a solid, long-term banking partnership:• Find tech experience. It is essential to find a bank that does business with technology businesses. They must understand the issues in the tech world. Look for a bank that has the personnel who can help with your unique technology needs. Make sure your bank has experience in international banking and can do letters of credit, wire transfers, electronic payment process-ing, and other instruments that are needed for an in-ternational business.• Learn to communicate. As location is to retail, com-munication is to a great relationship with your banker. Communicate, communicate, and communicate some more. Meet with your banker on a regular basis to re-view the statements from the past reporting period
and provide him or her with notes on that period and projections for the next reporting period.• Create partnership. It is important to understand your company’s relationship with your bank should be a partnership. While you will have needs requiring a bank’s assistance, banks also will have needs. Start building this relationship even before you have lend-ing needs.• Eliminate surprises. It is imperative that you not surprise your banker. Bankers don’t like surprises. Most good tech bankers have seen virtually every sit-uation your financial statements will reveal, and they can help you navigate through any rough water with the bank. It is important that you communicate well. Be honest and realistic and your banker probably will be able to help you in rough times.• Inspire faith. It should be obvious that your bank-er’s main concern is all about making a profit on your relationship. It may be the profit on the transactional accounts that you open, but it is definitely about be-ing repaid on the loan that you obtained. The objective should be to inspire genuine, earned confidence, not to fool the unsuspecting lender.
It is important that a tech company find a bank that can be a great partner and has the experience to help. This type of relationship will help manage the many challenges you will face. This won’t necessarily keep your tech company out of trouble, but it will provide you with a respected business partner who will help make your life easier. v
This story was featured in the MissouriBusiness.net newsletter in December.
Banking considerations for technology companies
24 January 10, 2009 C
olumbia B
usiness Times | C
olumbiaB
usinessTimes.com
SPECIAL SECTION | BaNkINg/fINaNCIaL SErVICES
Financial planners see investment opportunitiesBy Jacob Barker
The conventional wisdom for investors has tradi-tionally been the more diversified you are, the safer your portfolio. But the last quarter of 2008 spared no one and no market niche.
After markets tumbled from all-time highs in 2007 and everyone bemoaned the slide in their portfolios, local financial planners remined clients that the mar-ket has always rebounded.
But communicating that message to every client can be tiring. Retired investors are worried they’ll lose their income. Middle-aged investors worry they won’t be able to retire when they planned. And young inves-tors haven’t seen the market go through a bear cycle before.
More experienced and sophisticated investors are generally less worried than those experiencing a mar-ket downturn for the first time, planners said in inter-views with CBT. They added that many investors do not realize the opportunity they have as stocks fall to bargain prices. The market rarely provides such an op-portunity, they argue, and investors too timid to jump back in could miss out.
While planners anticipate more difficulties in the financial system during the coming months, they remind clients to keep a longer-term view. After all, investment-guru Warren Buffet is buying. Why shouldn’t they?
Tom BaumgardnerInvestment Representative, Edward Jones
While many stockbrokers have had the most hectic months of their careers since the markets be-gan to plunge in September, Tom Baumgardner had called most of his clients early in the year. At the outset of 2008, he started to prepare them for a year that would not “be a bed of roses.” After over 40 years as
a broker, he didn’t think he was going out on a limb. Turns out he wasn’t.
“There are just some things you know are coming,” Baumgardner said. “Some people can tell you when we’re going to have an earthquake. It’s not because they’ve got the Farmer’s Almanac printed in blue ink. They’ve just been around long enough.”
The trouble that began to emerge in the real estate market late in 2007, coupled with what he said was an obvious dissatisfaction with the political leader-ship, was enough to make him anticipate significant market turmoil. But even so, the speed and severity with which this downturn hit were unlike anything he’s seen in his lifetime, he said.
Since then, Baumgardner has had to reassure cli-ents there’s not going to be another Great Depression, and he’s had to convince more than one that “You don’t just abandon the equities market!” Younger cli-ents with no experience in a bear market are especially challenging.
“That’s where you, as a broker, earn your keep, explaining to those people that, this too shall pass,” he said.
When asked how long he does think the downturn might last, he had a quick response.
“Better question: How long will it be until the op-portunity will have dribbled off the edge of the table?” he asked. “Who makes money? It’s the people who buy at the sale, not the people who buy at the high. What’s Warren Buffet doing? He’s buying!”
Those who don’t invest in 2009, Baumgardner said, will have missed a rare opportunity. Turn off the TV and stop getting your investment advice from the Today Show, he said. Quit reading newspapers and listening to radio shows that try to compare this downturn to 1929 or 1931 or 1987.
“I like to compare this market to the period be-tween 1972 and 1981,” he said, walking to his white board already covered in numbers and dollar signs. He’s obviously used the analogy recently, because he circles a 1972 next to a 1981.
“If you put in $100,000 in 1972 and held it for 10 years, over that same period of time, the market came back to where it was,” Baumgardener explained, con-necting the two numbers with a large U. He turned around excitedly: “But, if you invested it properly, that same $100,000 grew to $617,000.”
The point is that things come back around, it just takes the stomach for a downturn, patience and a be-lief in the system, he said. And common sense can al-ways put you on track for long-term gains.
Tom Baumgardner
25 January 10, 2009 C
olumbia B
usiness Times | C
olumbiaB
usinessTimes.com
SPECIAL SECTION | BaNkINg/fINaNCIaL SErVICES“Own highly rated and regarded compa-
nies in very vital and necessary industries, and within those industries, get the pick of the litter,” Baumgardner said. “You want to be able to see not just as far as you can, you want to be able to see slightly over the curve of the earth.”
Andy StewartWaddell & Reed, Managing Principal, Columbia and Springfield offices
Andy Stewart, like every financial planner, has had a busy couple of months. He’s had discussions with all of his clients about their portfolios, putting in the additional time it takes to squeeze in those ex-tra phone calls each day.
“I’ve heard concern from every age group,” he said. “With times like they are now, people need to talk to their advisors.”
But Stewart, while acknowledging that it’s not pleasant to watch your investments slide 30-40 percent, sees the market now as an exciting opportunity. Most money, he said, is typically made coming out of a bear market.
“There is an incredible opportunity right now for people to create wealth,” he said. “This is the best buying opportunity I could see in my lifetime.”
While many investors are fleeing the market and keeping their cash on the sidelines, Stewart is suggesting to clients with larger cash reserves to take advantage of the market today.
“For people whose retirement is 30 years away, they’re really in a great position to buy low,” he said.
Stewart said he’s adjusted many of his cli-ents’ investment portfolios, but most of those adjustments have been suggested by him rather than nervous clients. He’s been able to reassure clients wanting to get out of the market.
“Would you sell your house now, after its val-ue has gone down and buy it back after it goes back up?” he asked. “Warren Buffett, a pretty smart investor, says risk comes from not know-ing what you’re doing.”
Stewart got into the financial planning busi-ness in January 2001, in the midst of the bursting dot-com bubble and NASDAQ decline. While much of the decline then was concentrated in technology investments, the difference in late 2008, he said, was there wasn’t a safe haven anywhere.
One of the safer havens last year was the bond market, which outperformed stocks as a whole. But Stewart hasn’t suggested clients shift their money to bonds for the coming year. Anything can happen, he said, and anything that happens affects Wall Street.
“It just doesn’t make sense to me to sell a los-er to buy last year’s winner,” he said.
For investors looking for a quick return over the next year, Stewart suggests small-cap stocks, which tend to pick up faster as the market in-creases. Of course, there’s always the chance things can continue to decline over the next year, in which case the small-cap stocks will decline faster than larger companies’ stock.
“Think of it as a Porsche and a semi going down the highway and there’s an accident up ahead,” Stewart said. “Which one’s easier to turn? The smaller vehicle. But when they go down, they bounce a little bit harder.”
Stewart’s advice to investors is to step back, take a deep breath and don’t panic. The S&P 500,
he noted, is already up 20 percent from its Nov. 20, 2008, low. “Every day, there are always good solid companies making money,” he said. Greg ChurchHilliard Lyons, Columbia branch manager
Greg Church, a financial planner for 15 years, said the forces that drive the market can be boiled down to two emotions: fear and greed. And right now, it’s fear.
When things are going well, Church said, no one wants to sell for a profit when
they can keep riding along. And when things start to go bad, everyone “jumps on the band-wagon as negative, negative, negative.”
“I tell a lot of people, it’s never as good as what they say it is, and it’s never as bad as they say it is,” Church said.
Church said about 10 percent of his clients have wanted to pull out of the market and go to cash alternatives. This downturn has been dif-ferent than those in the past, he said, because it took almost everyone by surprise and more people “hunkered down and sold everything in their portfolio.”
While there are opportunities in a bear mar-ket, like high dividend paying stocks selling at an all-time low, Church stressed that the most important advice he can give is to keep your portfolio diversified and match it with the risk you can afford to take.
“If you’re an elderly client and you’re retired and can’t risk your principal, you need to be in CD’s (certificates of deposit), treasuries and those fixed-income investments that are the saf-est you can find,” he said.
Church said the main problem in the market now is the volatility. When the Dow goes up 600 points one day only to drop 800 the next, that’s what really scares people. And the fact that ev-erything from corn and oil, to gold and real estate has been affected is not reassuring either. But the money that has left the market is “going to flow back into the market eventually,” he said.
Even so, there are still too many unknowns to predict when the recovery will begin, Church said. A particular concern of his is how the retail sector will fare in this quarter. There have been reports, he said, that thousands of retailers could close in 2009. He’s waiting to see what happens.
“Christmas kept them going,” Church said. “And now, Christmas is over.”
What about opportunities in the next year? With the incoming Obama administration talk-ing about massive public works spending, in-vestments in construction or infrastructure could be a good bet, Church said. And large-cap stocks seem like a sensible investment in a downturn.
“People are skeptical; they’re scared. Where are they going to go with their money when they invest? They’re going to go with companies that have been around a long time, that provide some sort of good or service that people need,” he said. “Those are typically large-cap companies.”
Once the market stabilizes, he expects people to start reinvesting slowly. But in the meantime, investors should really get to know their plan-ner, if they haven’t already, he said.
“We’ve had several bear markets over the years, and we’ve rebounded out of those and al-ways gone higher,” Church said. “I don’t think there’s any reason to believe that that’s not going to happen again. It’s a matter of when.” v
Andy Stewart
Greg Church
27 January 10, 2009 C
olumbia B
usiness Times | C
olumbiaB
usinessTimes.com
By Gayle Mooney
Having just celebrated its fifth anniversary, Performing Arts in Children’s Education, a theatre group for children better known as PACE, is staging a challenging production at the University of Missouri’s Jesse Hall this month and opening a dance studio in northwest Columbia on Feb. 9.
Angela Howard, PACE’s artistic director, said the new studio is just another extension of the not-for-profit organization.
“We are very serious about educating students in all forms of theatre, and want to offer children as many opportunities as possible to appreciate the performance arts, whether it is acting, dancing or singing,” Howard said. “Last year we had a lot of things happening, with our partnership with the university and moving to our professional home. I look toward this year and I just see great things for the kids. The dance studio is just the beginning.”
Since its formation in December 2003, PACE has worked with hundreds of children, ages 4 to 18, to stage more than 30 productions and provide numerous classes such as theatre lighting, stage makeup and acting. PACE youth also engaged in community outreach projects involving University of Missouri Health Care.
“As a partner in Art in Healthcare, we provide monthly performances for patients in the Pediatric and Adolescent wards,” Howard said. “We’ve also committed to one production at year, staged in Jesse Hall, to educate people about children health issues.”
The second stage performance in the series, The Jellybean Conspiracy, runs Jan. 15-18 at Jesse. It deals with the difficulties of special-needs children and includes several students with special needs in the cast.
PACE has used facilities at Benton Elementary for rehearsals and classes, and Smithton Middle School and Hickman High School for performances, along with the pre-renovated historic Missouri
Theatre. When the renovation of the Missouri Theatre was completed last year, PACE was once again able to expose youth to a professional the-atre setting.
“Our ideal loca-tion at the Missouri Theatre Center for the Arts is a dream come true,” Howard said. “Just think–our young people get to perform on a stage that was graced by vaudeville acts almost 100 years ago!”
The non-competi-tive dance studio will
be located in a 6,000-square-foot building off the Midway exit that PACE acquired last year. The building is used for storage space and recently was renovated to include a costume shop and a place to build stage sets for productions.
Howard said that 1,500 square feet of the Midway building is being converted into the dance studio, which will be marketed especially to the west side of Columbia. PACE hopes to also reach clients in Boonville, Midway, Fayette and Rocheport.
Howard says the studio is a response to several needs she saw in the community. “I realized there were no studios in northwest Columbia, and after talking to a lot of the kids
I found out most of the studios that were here were geared toward competitive dance,” Howard said.
The new studio will offer beginning ballet, jazz, modern dance and musical theatre. At some point, PACE hopes to expand it’s curriculum with classes in tap, hip-hop and funk.
Howard stressed that the emphasis is not to have students involved in a show, but rather on personal growth for each student. Classes are open to everyone and there is no requirement to be involved in PACE productions.
The studio teacher will be Jacqueline Rash, who worked with PACE as the choreographer for CATS! during the 2007 season. She has a bachelor’s degree in dance from Stephens College and has worked for a professional company in Chicago doing modern dance.
Rash anticipates each class having about 10 students. “That way, I can give specific feedback one-on-one,” she said. “I don’t want the kids to feel pressure from other students. I don’t want to try to fit the students into a box and say this is what I want. I want to draw the artistry out of the child at whatever level they are.”
Howard recently took a role in a musical. “I had to call on everything I’ve ever learned to do this part,” she said. “But the thing is, I remembered. That’s what I want for the kids, an opportunity to learn everything they can about performing and have it stay with them the rest of their lives.” v
For more information about the new dance studio, located at 7430 Hwy 40 West, contact Jacqueline Rash at 573-289-5851 or register for courses at kidsintheact.org
PACE opening dance studio
PACE preformance of “Cats!”
