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While a federal mandate for large companies to require COVID-19 vaccinations or weekly testing plays out in court, there are things employers can do to be prepared, according to Greg Rouchell, partner and employment team leader at New Orleans-based Adams and Reese.
“Once vaccines became readily available in spring 2021, employers had a decision to make,” Rouchell told New Orleans CityBusiness. “Some employers implemented their own mandatory vaccination policies. Others did not want to force their employees to get vaccinated; instead, they
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INSIDE
Construction CentralFormer BellSouth building to become brewery PAGE 20
News by the numbers .........4
Quick Hits ............................6
Leadoff Spot .....................10
Construction Central .........16
Opinion ............................22
M&A report ......................26
Lists: Banks ......................29
People ..............................32
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Q&A: Federal vaccine mandate
GOOD SHEPHERD SCHOOL EXPANSIONJESUIT HIGH SCHOOL’S NEW BUILDING FOUR SEASONS’ SECOND RESTAURANT
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MILLING BENSON WOODWARD, L.L.P. 125 years young and still going strong
Milling Benson Woodward’s roots run deep in Louisiana. The law firm was founded in Franklin, Louisiana, in 1896. The firm began to grow almost immediately, adding several attorneys, including former Governor Murphy J. Foster who joined the firm in 1900. Milling soon thereafter opened its New Orleans office in 1901, where it has continued to serve the Louisiana business community ever since. The New Orleans office is currently led by senior partner, Hilton Bell, a corporate and tax attorney who has been with the firm since 1972 after having returned from serving his country in Vietnam. In 2018, former Milling partner, and most recently President and Vice Chairman of the Board of Whitney National Bank, R. King Milling, rejoined the firm in the New Orleans office.
Milling opened its Baton Rouge office in 2000 when former Louisiana Commissioner of Administration,
Stephanie Laborde, joined the firm. Stephanie was also the firm’s first female managing partner, having served in that capacity through 2020.
In 2010, Normand Pizza and Chadwick Collings opened Milling’s Northshore office, which has now grown to include nine other attorneys. On January 1, 2021, Mr. Collings became the firm’s managing partner and looks forward to helping lay the foundation for the firm’s next 125 years. Chadwick is focused on growing the firm by adding legal talent that will continue to meet the needs of Louisiana’s business community. “Milling has a well-respected name, and just like with any other name brand, we must continue to protect it by doing what we do best, which is offering the finest legal services possible to our clients” said Chadwick Collings.
Milling Benson Woodward, LLP is best described as a local
firm with regional, national and international impact. Its stellar reputation has its foundation in its tenacious commitment to the development and maintenance of client relationships. With its three offices and diverse talent pool of attorneys, Milling works as a team to provide each client with the highest level of legal representation. The firm provides solutions to issues ranging from litigation, environmental and maritime law, natural resource law, insurance coverage and defense, healthcare law, intellectual property, labor and employment law, taxation and estate law, banking, corporate law, and governmental relations and regulatory matters. Milling looks back with pride on the past 125 years and looks forward to many more years of providing prompt, efficient and the highest quality legal representation possible.
Seated, (L to R): Sheila L. Moragas, Hilton S. Bell, Shannon Howard-Eldridge, James K. Irvin, Jay Corenswet, An-drew C. Wilson | Standing, (L to R): Lauren A. Williams, Chadwick W. Collings, Juan J. Lizarraga, R. King Milling, Chris Burge, Henry M. Weber, Richard E. Santora
Milling’s managing partner, Chadwick W. Collings
NEWS BY THE NUMBERS
No-bid contracts awarded by Louisiana Superintendent of Education Cade
Brumley to a newly-formed consulting firm run by Sharmayne Rutledge, former assistant superintendent for curriculum
and instruction with the East Baton Rouge Parish school system.
$342,000
New jobs expected from Atlanta-based software company Rural Sourcing’s new development
center in downtown Baton Rouge.
150
$5.63 millionUncashed state income tax refunds received by the Louisiana Treasury as of early November. The list includes nearly 22,000 residents and businesses.
900 Workers at the Alliance Refinery owned by Phillips 66 in Plaquemines Parish. The company is closing the facility after it was flooded during Hurricane Ida. It will be turned into a storage terminal.
$10.6 billionAmount that insurance companies are paying to cover Louisiana claims for damage caused by Hurricanes Laura, Delta and Zeta in 2020, according to Insurance Commissioner Jim Donelon.
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Ran for President 2020Seeking Investors
(407) [email protected]
NEWORLEANSCITYBUSINESS.COM4 New Orleans CityBusiness November 19 - December 2, 2021
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QUICK HITS | Analyzing the week’s top news and what you can expect to happen next
What happened: Covington-based Pool Corp. said it will acquire Porpoise Pool & Patio, Inc. of Florida. Porpoise is the parent company of Pinch A Penny, Inc., the nation’s largest franchised provider of swimming pool and outdoor living products to specialty retail stores, and Sun Wholesale Supply, Inc., a wholesale distributor of swimming pool and outdoor living products and a specialty chemical packaging operation, primarily serving Pinch A Penny franchisees. Founded in 1975, Pinch A Penny Pool Patio Spa has grown from one store to over 260 locations across the southeastern U.S. and Texas.
What’s next:The project will create 30 new direct jobs with average salaries of $55,000, plus benefits, Louisiana Economic Development said. LED estimates 45 indirect jobs and 150 construction jobs at peak activity. The company has received a $430,000 award from the state’s Economic Development Award Program and is expected to use its Enterprise Zone program for the expansion.
What happened: Hammond-based S&W Wholesale Foods said it will build a $12 million distribution center near the city. The company said it will move its current operations into a new 100,000-square-foot building near the Pumpkin Center exit on Interstate 10. It will have 30,000 square feet of office space, a culinary test kitchen and a training facility with stadium-style seating. The company distributes meats, seafood, produce, dairy, canned goods, cleaning supplies, paper products, plasticware and more. S&W Wholesale services restaurants, convenience stores, bakeries and multi-unit operations across southeast Louisiana. It was able to continue supplying restaurants and convenience stores in the aftermath of Hurricane Ida, resulting in a 45% increase in sales, a news release said.
What’s next:The acquisition includes both subsidiaries. Pool Corp. expects the net revenue growth contribution to be similar to that realized from other recently completed acquisitions and plans to use borrowings available from its newly expanded revolving credit facility and cash on hand to fund the acquisition. The addition of the Pinch A Penny franchise network to POOLCORP’s North American distribution business “brings substantial growth and operating synergies for both existing independent retail customers and independent franchisees,” Pool Corp. president and CEO Peter Arvan said. The transaction is expected to close by the end of the year.
—CityBusiness staff reports
What happened: New Orleans beverage manufacturing company Big Easy Bucha was acquired by Latin American-based beverage company Beliv. Launched in 2014 by Austin Sherman and Alexis Korman, the company sells kombucha – a natural probiotic tea – and also produces juice shots. It recently debuted its tepache, a prebiotic pineapple soda.
What’s next:Big Easy Bucha will expand its local operations, with plans to retain 47 employees and create 50 new direct jobs locally, a news release said. Louisiana Economic Development estimates the project will result in 119 indirect jobs, and the firm plans to fill many of the 50 new jobs with participants of local job readiness programs, the release said. The transaction will expand Beliv’s footprint in the market and become the first probiotic product in its portfolio. The company also offers juices, soft drinks, water and energy drinks. Beliv has 28 brands in 30 countries.
NEWORLEANSCITYBUSINESS.COM6 New Orleans CityBusiness November 19 - December 2, 2021
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simply encouraged employees to get vaccinated but left the ultimate decision to the employee.”
On Nov. 5, the element of choice changed for many employers when the Occupational Safety and Health Administration officially published its Emergency Temporary Standard (ETS) on Vaccination and Testing, which requires employ-ers with 100 or more employees to either imple-ment mandatory vaccination policies or require weekly testing in lieu of vaccination. Several days later, a federal appeals court temporarily halted the mandate after at least 27 states filed lawsuits challenging it.
What are the key takeaways employers need to know?
Unless the ETS is successfully challenged in court, there are two compliance deadlines that covered employers need to be mindful of. First, covered employers must fully comply by Dec. 6, 2021, with all sections of the ETS except for provi-sions requiring COVID-19 testing of unvaccinated or partially vaccinated workers. Second, covered employers must comply with the COVID-19 test-ing provisions for those workers by Jan. 4, 2022. In other words, the covered employer must adopt a policy and confirm the vaccination status of all employees by Dec. 6, and then, if the employ-
er’s policy allows, begin mandatory testing for COVID-19 for unvaccinated or partially vaccinat-ed workers by Jan. 4, 2022.
What are the questions still to be answered? The biggest question is whether the ETS’s Dec.
6 deadline is the real deadline. On Nov. 6, the U.S. Fifth Circuit Court of Appeals issued a nationwide temporary suspension of the ETS. For now, we are in a holding pattern until things play out in the court system. It’s not likely that the judicial process will have completely run its course by Dec. 6.
Do smaller companies need to be pre-pared, since the federal government isn’t ruling out a mandate for them?
OSHA has concluded that the ETS is economically and technological-ly feasible for businesses with 100 or more employees. OSHA has solicited public comment and is seeking addi-tional information to assess the ability of smaller employers to implement and follow the ETS. Thus, any small businesses that have concerns about the economics and feasibility of complying with the ETS should express those concerns to OSHA during the public comment period. It is possible that OSHA will conclude that the ETS can be extended to smaller businesses once the public comment period ends.
What are the chances of the mandate being struck down permanently?
The answer to this question varies depending on whom you ask in the legal punditry. There are compelling arguments on both sides of the constitutionality question. There are also intan-gible factors at play, including venue for the legal challenges and the makeup of the U.S. Supreme Court. In briefing before the U.S. Fifth Circuit,
the government took the position that because there are challenges pending in other circuit courts, all of the various legal challenges must be consolidated into one proceeding and heard by a court that will be randomly selected by the Judicial Panel on Multidistrict Litigation (MDL). According to the government, the MDL should be in place by November 16.
Should employers make preparations anyway while the legal cases play out?
One thing employers can be doing now is determining whether the ETS
even applies to their business. As a best prac-tice, employers may want to begin preparations in case the courts ultimately uphold the ETS. Otherwise, employers may find themselves scrambling to meet deadlines in order to avoid the risk of hefty government fines for non-com-pliance.
MANDATECONTINUED FROM PAGE 1
Rouchell
A S S O C I A T E D P R E S S
Fines for non-compliance will vary based on a company’s size and other factors. A company might have to pay up to $13,653 per individual violator or up to $136,532 for willful violation of the rules.
NEWORLEANSCITYBUSINESS.COM8 New Orleans CityBusiness November 19 - December 2, 2021
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LEADOFF SPOT
LEAH CLARKCONTRIBUTING WRITER
One is a successful hip hop artist from New Orleans, the other a for-mer science teacher-turned-entre-preneur who grew up in the country. Together, the two women are giving New Orleans musicians and creators fewer reasons to leave to pursue their careers. They also are part of a growing hub of activity that aims to revitalize New Orleans East.
Samantha Davon James, who go e s by he r s t age name “ 3 D Na’ Tee ,” and Roxanne Moray cut the ribbon on 3D Studios on Oct. 20, marking the opening of
Louisiana’s first women-owned and operated entertainment studios. Housed on a penthouse floor in the Executive Plaza on Lake Forest Boulevard, the studios provide a one-stop shop with workspaces and resources for local recording artists, videographers, photogra-phers, podcasters and other con-tent creators.
“I had heard several artists speak of leaving the city; several speak about going to [Los Angeles], New York, Atlanta or all these other plac-es because they feel that they don’t have a resource,” said James, who co-owns the studio with Moray. “So understanding that (3D Studios)
could become that .. I was like ‘Yeah, this is something we need here in New Orleans, especially New Orleans East.’”
James and Moray first joined forc-es in September 2019 when Moray, property manager of the Executive Plaza building, was challenged with attracting tenants for the top floor. The owner of the building wanted drone footage of the 11th floor, so Moray reached out to James’ compa-ny Already Legendary Media.
It was only after the job that Moray realized that she had been working with a successful local rap-per that had caught the attention of industry legends such as Timberland
and Russell Simmons. After a quick Google search, Moray reached back out to James to apologize for not recognizing her.
The partnership grew when Moray needed help completing a recording studio that fell through for another potential tenant.
“I thought of [3D] Na’Tee auto-matically just because of her energy, her vibrations were so positive, and I was like, ‘I know she’s really busy, but hopefully she can help me fin-ish out the recording studio,’” said Moray. “We talked. We vibed, and I’m like, ‘There’s some connection. You know what? You’re the face of this city. You’re an ambassador for
‘We learn from each other’The partnership behind the new, women-owned 3D Studios
Founders and owners 3D N’Tee (left) and Roxanne Moray opened 3D
Studios in October.
The studio offers clients a hair and makeup lounge.
Two recording studios are available for artists and creators.
The conference room overlooks New Orleans East from the 11th floor of the Executive Plaza building.
A green screen sound stage has been used for some of 3D Na’Tee’s music videos.
NEWORLEANSCITYBUSINESS.COM10 New Orleans CityBusiness November 19 - December 2, 2021
New Orleans. Why don’t we do this together?’”
James joined Moray as a consul-tant for the project in October 2020 and later became a full partner, with Moray wanting her to be the face of the company. The two officially founded the studios in January 2021 and began renovating the penthouse floor to become what it is today: a podcasting studio, photography stu-dio, editing suite, conference room, green screen sound stage, hair and makeup lounge and two recording studios. The studio also plans to offer training and classes for up-and-com-ing talent and businesses.
Leading up to the opening, Moray and James shared that the journey was not without challenges. Not only did the two women start a business during the COVID-19 pandemic, but also they renovated a space that — like much of the New Orleans East area — had not been occupied since Hurricane Katrina 16 years ago.
Even with contractors coming in and out of the space, for months the two found themselves doing work as well. Moray took creative direc-tion with much of the space’s decor, and James did various do-it-your-self projects to make pieces such as sound insulation panels that can be viewed on her YouTube channel.
“It’s been a lot of hard work, blood, sweat and tears. We were delayed a little bit by (Hurricane) Ida,” said Moray. “But we were happy
to have the grand opening.”Throughout this process and
partnership, both said they relied on each other. They have since hosted community events such as profes-sional development sessions and open-mic nights in the space. They said their deep admiration for what they bring to the table has grown in the process.
“Even though she’s younger than I am, and I’m a country mouse, she’s city mouse…I think we come with a humble heart, and we learn from each other. We grow. We push each other,” said Moray.
With 3D Studios now open for business, the two have shifted their focus to bringing in clients. Artists and creators can rent the various studios and suites, and the business also offers monthly memberships. These memberships allow clients to not be limited to only one resource that 3D Studios offers and will allow them access to members-only com-munal workspaces. Sign-ups for monthly memberships begin Nov. 1, but those that attended the grand opening were able to enter a raf-fle that gave away memberships as prizes.
“It’s not just about, you know, professionals who have done this and that,” James said. “It’s about peo-ple who are just starting as well as the professionals. Every end of the spectrum, they can come and use this space, be excited about it, and feel like this is a creative hub.”
P H O T O S C O U R T E S Y 3 D S T U D I O S
NEWORLEANSCITYBUSINESS.COMNew Orleans CityBusiness November 19 - December 2, 2021 11
LEADOFF SPOT Donald Link’s Chemin à la Mer joins Four Seasons Hotel
Four Seasons Hotel & Private Residences is opening its second restaurant, named Chemin à la Mer and helmed by New Orleans chef Donald Link.
The restaurant opens Nov. 26 on the fifth floor of the hotel with a menu that includes an oyster bar, specialty steaks and Gulf sea-food. The restaurant will be open daily for breakfast, lunch and dinner, a news release said. Its name is French for “pathway to the sea,” with dishes inspired by Link’s travels.
Diners will find strip steak, filet mignon, cast iron-seared coulotte and a Côte de Boeuf for Two, carved tableside. There is also salmon with French lentils, pan-seared jumbo shrimp with white peans and pistou, lamb with olive tapenade and garlic rosemary, and charcuterie and foie gras. The oyster bar has Gulf Coast oys-ters, snapper ceviche, steamed Louisiana shrimp and a jumbo crab salad.
Link worked with southern artist John Alexander to include artwork in the restau-rant, such as two mural-sized paintings in the main dining area and another anchor-ing the bar. CambridgeSeven served as architect of the space, and Bill Rooney handled interior design.
Floor-to-ceiling windows offer pan-oramic views of the Mississippi River, and there is outdoor seating on the deck.
The hotel opened its other restaurant, Miss River, and its Chandelier Bar in August inside the renovated 34-story tower at the foot of Canal Street that was once the World Trade Center. Hotel availability started Sept. 1.
Led by New Orleans chef Alon Shaya, Miss River is on the lobby level. Signature dishes include whole carved buttermilk fried chicken; dirty rice with seared duck breast, duck egg yolk and scallions; Louisiana oyster patty with flaky puff pas-try, caramelised shiitake mushrooms and citrus zest; and salt-crusted Gulf red snap-per.
The Four Seasons Hotel includes 341 rooms and suites, a fitness center, spa, outdoor pool deck, event spaces and pri-vate gardens and 92 private residences on its upper floors. A cultural exhibition in the space where the World Trade Center’s signature bar was located is still under construction.
—CityBusiness staff reports
P H O T O S C O U R T E S Y F O U R S E A S O N S N E W O R L E A N S
Southern artist John Alexander’s work hangs on the walls of the restaurant.
Located on the fifth floor of the former World Trade Center, Chemin à la Mer is open
daily for breakfast, lunch and dinner.
Salmon with French lentils
The grand oyster bar has Gulf Coast oysters, snapper ceviche, Louisiana
shrimp and a jumbo crab salad.
Lamb with olive tapenade and
garlic rosemary
Some menu items, like the foie gras, were inspired by Link’s travels.
Côte de Boeuf for Two, carved tableside.
NEWORLEANSCITYBUSINESS.COM12 New Orleans CityBusiness November 19 - December 2, 2021
by Kelcy Wilburn
Jessica Brandt, Chief Executive Officer of the Ray Brandt Auto Group, says the com-pany is poised for success, and she believes 2021 will be the Auto Group’s most success-ful year-to-date.
Brandt moved into her role as CEO just a few months before she faced her first sig-nificant challenge: the initial big wave of the COVID-19 crisis.
“As the pandemic unfolded, I had to con-sider how this crisis impacted our business strategy and what the path to business re-newal and growth would be,” says Brandt. “I also needed to be prepared to make high-quality, high-velocity decisions.”
Brandt proved that she was more than prepared. Instead of taking a passive, wait-and-see approach, she jumped into action to ensure her entire team and 19 business-es continued to thrive. She worked with community leaders, including Gov. John Bel Edwards, in her role on the Louisiana Auto Dealers Board of Directors to have the automotive industry deemed an essen-tial business, as only essential businesses would remain open. Brandt was successful in her efforts, and all locations were able to meet the public’s needs.
While businesses rarely make changes to their entire model, Brandt knew that a strategic overhaul was in order. Undeterred by uncertainty, she used this time as an op-portunity to have collaborative discussions with her management team about innova-tive business strategies centered on becom-ing more efficient and effective. Suffice to say, she was determined to emerge from the crisis stronger.
Overseeing over 600 employees across 13 dealerships and six collision centers, Brandt decided to use her position atop the Ray Brandt Auto Group as an opportunity to serve her team, her customers, and her community.
As subsequent supply chain issues contin-ue to affect the automotive industry, Brandt credits her management team with help-ing develop new and creative solutions to challenges. Customers began taking a new approach to buying vehicles, and her team took note.
“Custom orders were once reserved only for luxury brands, but we now proudly offer pre-orders across all of our brands, allow-ing our audience to customize their vehicles and get exactly what they want,” she says.
Brandt’s strategic shift in philosophy—fo-cusing on the customer experience instead of high volume—has resulted in the overall value of the Ray Brandt Auto Group in-creasing exponentially. Known as a hands-on, day-to-day decision-maker, Brandt is driving transformational change.
“We are excited and prepared for all that the future holds,” she says.
In addition to her mission and commitment to providing exceptional and innovative customer experiences, Brandt remains committed to strengthening her commu-nity. Brandt and her late husband, Ray Brandt, both New Orleans natives, founded
the Ray and Jessica Brandt Family Founda-tion. The Foundation supports the commu-nity through fundraisers for schools in the Archdiocese of New Orleans, the American Heart Association, the National WWII Muse-um, St. Jude Children’s Research Hospital, New Orleans City Park, UNCF, East Jeffer-son General Hospital, and LCMC Children’s Hospital.
The Foundation awards The Raymond J. Brandt Legacy Scholarship annually, hon-oring families within the Brandt Family Companies who have school-aged children or grandchildren with exemplary skills in leadership and conduct as well as a nota-ble desire to learn. This year, 15 students received scholarships.
“Ray and I have always been committed to education,” says Brandt. “When we started the Foundation, we wanted to make sure that money was never a barrier to someone getting an education.”
The Ray Brandt Auto Group will team up with St. Jude Children’s Research Hospital for the second consecutive year by donat-ing two “Dream Cars” to the 2022 Dream Home Giveaway. Two lucky supporters will receive the keys to a brand-new 2022 INFINITI Q50.
As CEO, Brandt continues to seek out charitable causes that strengthen the com-munity—her leadership, while focused on steering the ship, is also on partnering the Ray Brandt Auto Group with organizations and institutions that uplift the people of her community, the Gulf South.
“Working with charitable organizations connects us with like-minded individuals who are also driven to meet our communi-ties’ needs,” she says. “These partnerships contribute to the success of the region and, consequently, our business as well,” says Brandt.
Ray Brandt Auto Group Continues Growth of Brand & Community Under CEO Jessica Brandt
Jessica Brandt
Sponsored Content
LEADOFF SPOT
New Orleans startups are making substantial gains in attracting invest-ment funding while also adopting more flexible work options and scaling back their office expansion plans, according to the latest findings from Tulane University’s 2021 Greater New Orleans Startup Report.
The report, compiled by the Albert Lepage Center for Entrepreneurship and Innovation at Tulane’s A. B. Freeman School of Business, is based on a survey of approximately 200 startups in the 10-parish region from the first quarter of 2021, a full year into the COVID-19 pandemic. Now in its third year, the annual report has become the benchmark for tracking entrepre-neurial activity throughout the New Orleans region.
“We can divide takeaways from this report into two broad categories,” said Lepage Center Executive Director Rob Lalka. “First, the data helps us understand what our businesses have experienced since the onset of the pandemic. Second, we saw important developments in early-stage venture financing, which prompt new questions about what the changing landscape of angel investing and venture capital will mean for our region.”
Area startups reported a marked increase in equity financing activity, such as venture capital, angel investing and convertible debt across the region. There was a 21% increase in companies reporting access to ven-ture capital. The amount they have raised also grew, with 57% of survey respondents raising more than $1 million, compared to 42% last year.
Roughly half of survey respondents said they are raising at least 70% of their capital from investors outside the Greater New Orleans area — a 17% increase from last year.
The report’s release comes in a year that has seen record exits for successful New Orleans ventures with local research technology company Lucid selling for $1.1 billion and construction software firm Levelset for $500 million.
“Given our ecosystem’s recent blockbuster exits — the two largest for venture-backed companies in Louisiana’s history — we have reasons to be optimistic about the future of our startup ecosystem,” Lalka said. “Hopefully, these hometown success stories will be a prelude to many more, as investors look for the next Lucid or Levelset, while the experi-enced and accomplished teams who launched these companies mentor and support the next generation of great ventures.”
The report found a large increase in companies shifting to remote work, reflecting national COVID-era trends. Almost half offered remote work options in early 2021, as opposed to only 33% in early 2020.
Space usage saw some significant changes from 2020 to 2021. Firms planning to move to a larger space decreased by 7.3 percentage points in 2021, and there was a slight increase in companies planning to reduce their current office size. Use of home offices increased by 14% while use of leased commercial space decreased by the same amount.
More companies also reported offering employee benefits, including paid time off, medical insurance, dental insurance, vision insurance and 401k matching.
For this year, researchers added questions to see how many compa-nies were able to access COVID-19 relief funding, such as the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL). They found that 95% of white applicants received PPP funding compared to only 77% of Black, Indigenous and People of Color (BIPOC) applicants.
“The Lepage Center’s 2020 Greater New Orleans Startup Report showed that BIPOC-founded firms were less likely than white-founded firms to receive traditional bank loans (8% vs. 16%). Since a similar gap exists in this year’s data, the lack of established banking relationships could have exacerbated challenges in PPP access in our region,” Lalka said.
This year’s report did see some improvements for BIPOC-founded firms in access to equity investment since last year, with 13% increases in access to angel investment and venture capital and an 8% jump in access to convertible debt.
The Lepage team also looked at investment in female-founded compa-nies, finding that while women receive traditional bank loans at similar rates as men, they lag greatly behind men in angel investment, convertible debt and venture capital. Women founders utilized equity financing at approximately half the rate of their male counterparts.
“From a business standpoint, the Greater New Orleans business commu-nity needs to face what these inequities cost us. In a community that is full of incredible female entrepreneurs and BIPOC companies, we are surely missing out by not funding them, especially since studies have shown that diverse teams perform better than homogenous ones,” Lalka said.
The full 2021 Greater New Orleans Startup Report is available at gnos-tartupreport.com.
The above article was written and distributed by Tulane University and appears on the university’s website, news.tulane.edu.
Entrepreneurs in Propeller’s 2021 Impact Accelerator
venture program.
Report shows investment gains for local startups
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CONSTRUCTION CENTRAL
ANDREW [email protected]
Jesuit High School in 2019 under-took an ambitious fundraising cam-paign in an effort to modernize its Mid-City facilities.
A crowd of benefactors, alum-ni and others gathered in early November at the campus to see the latest results: a newly-constructed, 23,800 square-foot administrative building at the corner of South Solomon and Banks streets.
The four-story building blends in seamlessly with the rest of the school and will serve as the new entrance for visitors, replacing the one fur-ther down Banks Street, closer to Carrollton Avenue. In addition to administrative space, the new build-ing includes a reception area, volun-
teer office, the Blue Jay Spirit Shop, admissions office, a maintenance workshop and finance and athletics archives.
The facility frees up space on the first floor of the adjacent 1920s-era structure that will eventually house the student council, student clubs and activities, student ministry, the school’s newspaper and its yearbook. Renovation of this space and the remainder of the building will be the next step in the school’s capital improvement plan, Jesuit president Fr. John Brown said.
“This will now essentially become the hub of student life,” he said.
The new structure was dedicated and named in honor of Madonna Della Strada, a painting of the Virgin Mary enshrined at the Church of the Gesù in Rome. She is the patron
P H O T O S C O U R T E S Y J E S U I T H I G H S C H O O L
Jesuit High School’s new administrative building
Lobby of the building at the corner of South Solomon and Banks streets in Mid-City.
Exterior of the 23,800-square-foot structure.
NEWORLEANSCITYBUSINESS.COM16 New Orleans CityBusiness November 19 - December 2, 2021
saint of the Jesuit religious order, and Ignatius of Loyola, the order’s founder, was said to have been pro-tected by the intercession of the Virgin Mary during battle in his ser-vice as a soldier.
Construction projects locally and across the U.S. have seen delays and increased costs resulting from sup-ply chain problems and rising prices of building materials because of the COVID-19 pandemic. Brown said this project was no different, but the general contractor, Ryan Gootee General Contractors, did a “great job” of not making the school feel the pain from those issues.
“As long as we were patient, they found a way to make it work,” he said.
Mathes Brierre Architects was listed as the architect for the project. A total cost was not disclosed, but a permit summary of the work val-ues the construction at nearly $12 million.
The idea and long-term vision for the “Minds & Hearts Enlightened Campaign” came from former school presidents Fr. Anthony McGinn and Fr. Raymond Fitzgerald about a decade ago. Fr. Christopher Fronk took over as president at the end of 2016, when the silent giving portion of the campaign first started.
The initiative went public at the
beginning of 2019. Brown took the mantle as president in January 2020 and oversaw the culmination of the campaign and the on-campus con-struction.
Frank Stewart Jr., a local busi-nessman and Jesuit alumnus, gave a combined $7 million, and New Orleans Saints and Pelicans owner Gayle Benson donated another $5 million to improve the school’s ath-letics facilities. Pledges for the cam-paign totaled $30 million, according to Jesuit’s website, and also increased the school’s endowment by $5 mil-lion.
Funds were used to renovate all of the classrooms, build a pedestrian bridge over Banks Street that con-nects the athletic facilities with the rest of the school and modernize the gym, now called the Gayle & Tom Benson Arena. Work wrapped up right before students returned to school in August to renovate the caf-eteria, and construction is expected to start soon on renovating the adja-cent structure.
Ryan Gootee General Contractors performed all work at the campus.
“It’s such a great feeling to see all this work come to a finish,” Brown said. “The best part is still to come, and to see the changes that are com-ing to the building next to us. This new building makes all that possible.”
Balcony outside Jesuit president Fr. John Brown’s office.
Conference room
My name is Whitley. I am a single mother of four girls. While my twins receive a high-quality early childhood education from Kingsley House, I am enrolled in a Community Health Worker Apprenticeship, a program that covers my tuition and pays a living wage as I train. Thanks to Kingsley Connections and its partners, I have been supported in ways I never have before. This place makes it possible for me to write a new chapter of my life, one that comes with an exciting, new ending.
We are all this place: the people and services, and everything like our Whole Family Approach which makes educating children, strengthening families, and building community possible. In anticipation of a new name that reflects our mission, vision, and values, we move forward with purpose and optimism for our legacy of service. Share, support, and join us in shaping our future as we commemorate 125 years in service to the community and beyond at kingsleyhouse.org.
Whitley
NEWORLEANSCITYBUSINESS.COMNew Orleans CityBusiness November 19 - December 2, 2021 17
A $300 million, four-year expan-sion of Children’s Hospital ended this month.
Officials celebrated the completion with a grand opening and tours of the campus’ transformation on Nov. 6. It is the most significant expansion project in the hospital’s history, increasing its footprint by more than 50%.
The expanded campus includes 230,000 square feet of new clinical care space, family housing, gardens, playgrounds and green space.
Projects since breaking ground in 2017 have included a parking garage and skybridge, Lauricella Pavilion, Hogs House Family Housing, reno-vation/expansion to pediatric cardiac ICU, emergency care, surgical ser-vices, a comprehensive cancer center, a new ear, nose and throat clinic, a new neurosciences clinic, entry plaza; and a newly-constructed walkway connecting the hospital and State Street campus with rain gardens.
In 2020, the hospital opened a $25 million, 51-bed behavioral health
hospital for children and adolescents adjacent to its campus. It’s one of the largest behavioral health facilities for children in the country.
As one of the final projects in the expansion, the hospital this year opened a new 46-bed emergen-cy department on its Uptown cam-pus. The 32,000-square-foot facility
has fast track and rapid assessment rooms, dedicated trauma bays and a private behavioral health pod. There were previously 29 emergency rooms and 14,000 square feet of space. The project puts the department on one floor instead of the two it was housed in before.
EYP served as architect on the
expansion, and Lemoine led con-struction.
Children’s provides emergency care for more than 50,000 annually, from birth through age 21. It has added 10 pediatric emergency medi-cine providers since August 2020.
—CityBusiness staff reports
CONSTRUCTION CENTRAL
Children’s Hospital completes $300M expansion
I M A G E S C O U R T E S Y C H I L D R E N ’ S H O S P I T A L
The expanded campus has 23,000 square feet of clinical care space, housing, gardens playgrounds and green space.
A 51-bed Behavioral Health Canter was added in 2020.
Imaging center
Infusion center
NEWORLEANSCITYBUSINESS.COM18 New Orleans CityBusiness November 19 - December 2, 2021
CONSTRUCTION CENTRAL
Good Shepherd School plans to expand to a second location, with a campus in the Desire-Florida community.
The school is partnering with the Giving Hope Foundation on the project, and the new school will be named Giving Hope Campus. Built by Ryan Gootee General Contractors, it will be located at 3601 Desire Parkway across the street from the Giving Hope Community Center and next to a green infrastructure academy run by the nonprofit Thrive New Orleans.
The three entities plan to provide summer camps, after-school programming, wellness and education opportunities and job train-ing. The Thrive academy will provide train-ing for community members for jobs in the green industry and will serve as an educational resource for the GSS Giving Hope Campus, a news release said.
The new campus will temporarily be housed in more than 24,000 square feet of modular class-rooms acquired by Troy and Tracy Duhon, found-ers of the Giving Hope Foundation, the release
said. The modular classrooms will be delivered to the new campus site this fall.
Good Shepherd School opened in 2001 to serve pre-K and elementary lower-income students, and in recent years moved from downtown New Orleans to a new campus in Gentilly to accommo-date a growing enrollment.
The school has graduated 189 students and currently serves 275. There are 122 graduates now attending local Catholic, private, public and char-ter high schools.
—CityBusiness staff reports
Good Shepherd School expanding to second campus
NORF Companies, a New Orleans-based real estate company that redevelops properties in federal Opportunity Zones, has begun dem-olition on its latest project, located in down-town New Orleans.
The site at 380 S. Liberty St. is across from City Hall and was purchased by the company in 2019. It was acquired through two of NORF’s investment funds which focus on Opportunity Zones across the U.S. The program was created through the Tax Cuts and Jobs Act of 2017 and provides tax incentives for developers to invest in economically distressed areas.
The building, formerly used as a mechan-ical building for the Warwick Hotel, has sat vacant since Hurricane Katrina. Preliminary plans call for the development of a 12-story, 58,000-square-foot vertical building. NORF is negotiating with several groups interested in becoming tenants and investing in the down-town medical district, a news release said.
The property is part of NORF’s marquee project,1315Gravier, which includes the rede-velopment of the former Warwick Hotel into housing for some of Tulane University’s stu-dents and faculty. Work was also expected to begin at some point this year on redeveloping the former Charity Hospital into a mixed-use facility, where Tulane is expected to lease 350,000 square feet of space for laboratories, classrooms and offices.
Most recently, NORF completed its first Opportunity Zone project in New Orleans, a 25,115-square-foot structure with apartments and commercial space in Mid-City.
In September, the company said it has acquired the former Carlton Hotel in Tyler, Texas, as part of its plan to redevelop historic properties.
—CityBusiness staff reportsDemolition has begun at 380 S.
Liberty St. in downtown New Orleans.
NORF Companies’ latest Opportunity Zone projectP H O T O C O U R T E S Y N O R F C O M P A N I E S
NEWORLEANSCITYBUSINESS.COMNew Orleans CityBusiness November 19 - December 2, 2021 19
CONSTRUCTION CENTRAL
Former BellSouth building to become brewery
The Mid-City building that once served as a base of opera-tions for BellSouth is set for another new chapter.
New Orleans Beverage Group LLC, a company that makes a brand of bitters, syrups and mixers known as El Guapo, plans to start brewing in the building at 3300 Gravier St.
Owned and operated by Christa Cotton, El Guapo’s clients include Total Wine, Whole Foods, World Market, Neiman Marcus and can be found locally at restaurants and bars. The products are sold in 42 states and three countries currently.
Cotton said her company is renting the 32,500-square-foot building, with the right to purchase. A contractor and architect for the project have not been named; she said those details will be shared in 2022.
The building was an operations base for BellSouth before it merged with AT&T in 2006. Cotton said many of the struc-ture’s original features, including the doors once used by horse and carriage, are still intact. For the past few years, the build-ing has been used as a prop and wardrobe warehouse for the film industry, she said. It is located in an Opportunity Zone, a federally-created program that offers developers incentives in state-designated economically distressed areas.
Cotton, a 2021 graduate of The Idea VillageX accelerator program, said her company has been brewing and bottling in a 3,000-square-foot building on Tchoupitoulas Street and has dou-bled its workforce since the COVID-19 pandemic. As it moves into its new location, the company plans to hire 30 employees for sales, manufacturing, shipping and operations, Cotton said.
A news release said El Guapo has contracts underway in Georgia and Tennessee and “is poised for rapid expansion in 2022.” The brand is distributed by Uncorked, also based in New Orleans, and partners with regional farmers producing products made with Ponchatoula strawberries, satsumas, pecans, chicory and more.
Its brewery will be the first to create a brewing process for 100% alcohol-free bitters and build to scale with brewing tech-nology, the release said.
A resident of Uptown, Cotton got her start in the spirits industry by helping her father start Georgia’s first legal distill-ery since Prohibition, 13th Colony, while in college at Auburn University, the release said.
—CityBusiness staff reports
P H O T O C O U R T E S Y N E W O R L E A N S B E V E R A G E G R O U P L L C
3300 Gravier St. is the new home of El Guapo, a locally-grown brand of bitters,
syrups and mixers.
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• Central Penn Business Journal
• 717-236-4300
JUNE 14, 2019
FOOD BUSINESS
Craft-beer boom spurs local hops farmers
By Jason Scott
Pennsylvania leads the nation in craft-
beer production.
But while more beer is being brewed in
places like Carlisle, Harrisburg and York,
brewers here must rely on some key in-
gredients that often travel long distances.
One is hops, which are not widely
grown in Pennsylvania, or on the East
Coast in general.
In fact, most hops come from Washing-
ton, Oregon and Idaho, which account for
the majority of the country’s hop produc-
tion. Washington alone has about 40,000
acres of hops.
Two Cumberland County hop farmers
are hoping to claim a piece of that market
and inspire other Pennsylvania farmers to
consider cultivating the crop for breweries
in Pennsylvania.
“It’s a niche thing. Not too many peo-
ple do it,” said Michael Reifsnyder, who
planted 3,400 hop plants on his 15-acre
West Pennsboro Township property in
2017.
A big reason for the lack of new hop farm-
ers is difficulty in getting started and com-
peting with larger established operations.
“These local houses are up against com-
panies that can reach a better economy
of scale, plus have quality control proce-
dures and logistics plans that have been
in place for decades,” said Brandalynn
Armstrong, co-owner of Zeroday Brewing
in Harrisburg. “It makes it harder for the
small producer to compete.”
Hop growing requires a large trellis for
the twining vines and an irrigation system.
Farmers also need special equipment to
harvest, process and package the hops.
Hops, which take three years to reach
full harvest, also are prone to pests and
diseases and can be difficult to grow in
certain soil types and climates.
But Reifsnyder, who retired in 2011
from the U.S. Navy after 22 years of service,
took a chance on hops after experiment-
ing with grapes and asparagus on his
Carlisle-area farm, dubbed GEMS Farm.
He also saw success at nearby hop yard
Sunny Brae Farms and thought his farm
could provide complementary varieties of
fresh local hops to small breweries.
He and his wife, Sharon, along with
their two teenage daughters, maintain
the hop yard, which is entering its second
year of harvest. GEMS currently grows five
varieties of hops on 3.25 acres, but the plan
is to eventually grow to seven acres, plant
a wider variety of hops and reach more
breweries.
“Expansion is on our radar,” he said.
Local thirst
In preparation for hop harvest later
this summer and early fall, the Reifsny-
ders recently purchased equipment that
will allow them to pelletize dried hops
— meaning to grind them into powder
and press them into small pellets. Pellet-
ized hops have a longer shelf life and are
what many brewers rely on throughout
the year.
The farm’s hop yard could yield about
5,000 or 6,000 pounds of hops this year.
GEMS expects to pelletize the majority
of its hops this year after selling almost
all of its harvest last fall to local breweries
making wet-hopped beers — also known
as fresh-hop beers that use hops fresh off
the vine.
Wet-hop batches of beer can use five
to 10 times as many hops as pelletized
batches.
Local brewers say they are eager to buy
more local ingredients, including hops,
but purchasing decisions come down to
quality, price and availability.
Jeff Musselman, head brewer at the
Millworks in Harrisburg, said the local
market has struggled to check all three
buckets. Most local hop farms are growing
on one or two acres and not pelletizing.
“The vast majority of local hops are
brewed in late summer or early fall for
wet-hop beers,” he said. “That has been
the big limitation.”
The Millworks and other breweries said
they would like to buy more local hops
year round, especially pelletized hops, to
support farmers.
“I think brewers absolutely want to use
it,” Musselman said, noting the differences
in smell and taste between East and West
Coast hops.
But Musselman said he expects local
hops would cost more than those from
larger West Coast suppliers, given the
lower hop volumes at local farms. Nev-
ertheless, he said he would still buy local
hops for special PA Preferred brews, i.e.,
beers made with Pennsylvania-produced
agricultural commodities, like hops or
grain.
Victor Shaffer and Andrew Lyons start-
ed growing an acre of hops outside of
Mechanicsburg last year. Their company,
called Lion Bines Hop Farm, is expected to
produce a partial harvest of hops this year
and a full harvest next year.
But the partners are investing now in
processing equipment to pelletize their
hops, with an eye on making extra money
by pelletizing hops for other farmers.
“In the future, we would love to process
for other farms so there is less of a cost
barrier,” Shaffer said.
Both Cumberland County hop farms
acknowledged the hops business in Penn-
sylvania is not much more than a seedling.
But through trial and error, they are opti-
mistic hop farms will begin to sprout.
“I hope we see more hop growers,” Rei-
fsnyder said. <
Lancaster County is continuing to draw
more people, with 2018 as the ninth consec-
utive year that the county saw increases in
visitors, visitor spending and tourism jobs.
The nine-year uptick is the result of a
diverse group of businesses and continued
changes in the perception of the county,
the county’s tourist information center, Dis-
cover Lancaster, wrote in a recent report.
Visitors to the county spent $2.24 billion in
2018, up 4.6 percent from $2.14 billion in 2017.
Of that total, $482 million of went to wages and
salaries for the 16,968 people working in the
Lancaster County tourism industry, accord-
ing to the report by Discover Lancaster, which
is based in East Lampeter Township.
The number of visitors to the county also
increased, rising from 8.64 million in 2017
to 8.85 million people in 2018, an increase
of 2.5 percent.
The report’s data was provided by Oxford,
England-based Tourism Economics and
based on hotel-tax collections reported by
the county, average hotel-room rates and
trends in visitor spending.
Lancaster County has had a long tradi-
tion of enticing tourists to its Pennsylvania
Dutch dining, outlet shopping and family
attractions like the Strasburg Railroad in
Strasburg Township and Dutch Wonder-
land in East Lampeter Township.
Those attractions have continued to pull
in tourists from across the globe but now
share the market with new businesses and
destinations.
They include popular restaurants and
bars, revitalized downtowns in places like
Lititz and Columbia, and outdoor activities
like Refreshing Mountain Retreat in Clay
Township, according to Joel Cliff, director
of communications for Discover Lancaster.
“We have worked on broadening our
brand for the last five or six years to expand
people’s expectations of what Lancaster is
all about,” Cliff said. “There are eight or 12
reasons to come to Lancaster not just the
three you already knew.”
The tourism increases also mirror the
economic growth in the U.S. as a whole, ac-
cording to Cliff.
“Clearly the economy has continued to
build itself back after the Great Recession,”
Cliff said. “It was building steam in 2017 and
certainly last year.” <
— Ioannis PashakisLancaster County tourism sees gain in visitors
Mike and Sharon Reifsnyder stand in the hop yard of their West Pennsboro Township
farm. They began growing the crop in 2017 in a bid to make locally grown hops more
available. PHOTO/MARKELL DELOATCH
6
www.CPBJ.com
Central Penn Business Journal
JUNE 21, 2019
OPINION
GUEST VIEWAt risk: A win for health care over big tobacco
A lot has changed since 1998, the year
that Pennsylvania and 45 states stood up
to big tobacco and helped create the To-
bacco Settlement Fund, or TSF. We may
have moved on from CD-
ROMs, dial-up internet
and the Y2K-bug frenzy.
But a few things have
stood the test of time:
Pokémon, “Toy Story”
and Pennsylvania’s com-
mitment to keeping the
core mission of the TSF
dedicated to health care.
It took the 46-state co-
alition years of fighting with major tobacco
companies in order to come to the 1998
Master Settlement Agreement; the funds
weren’t distributed in Pennsylvania until
the Tobacco Settlement Act of 2001.
Throughout that process, The Hospital
and Healthsystem Association of Pennsyl-
vania and the commonwealth’s hospitals
played a big role in ensuring that money
was preserved for health care — not to fill
one-time budget holes or fund other proj-
ects. We worked with health educators, re-
searchers and provider groups to find the
right balance for everyone.
Since Pennsylvania hospitals first began
receiving this money, it has been used to:
• Help people quit using tobacco prod-
ucts• Provide access to health care for ev-
eryone, regardless of their insurance or
health status• Fund research to cure diseases like
cancer, and improve the health of all
Pennsylvanians• Support financially fragile rural hos-
pitals, which serve large proportions of
vulnerable patients
• More recently, help hospitals address
the opioid crisisSpecifically, during fiscal year 2017–
2018, Pennsylvania’s hospitals received
$28.5 million through the TSF at the state
level, which is then matched by the federal
government to total approximately $60
million. This money goes to cover the cost
of caring for the uninsured and underin-
sured.Pennsylvania also received more than
$44 million for CURE grants during the
fiscal year 2014–2015. The grants help
universities, hospitals and research orga-
nizations partner to unlock solutions for
cancer, ways to improve the quality and
outcomes of health care, and how to ad-
dress community health issues.
This year, these hospital dollars and re-
search funds could be at risk.
Gov. Tom Wolf’s budget plan kept the
TSF whole, but we are concerned that this
year some lawmakers want to use tobacco
dollars to pay state debt. You see, during
the 2017–2018 state budget process, the
General Assembly authorized borrowing
against $1.5 billion in future TSF payments
to balance the state’s budget. The bond
payments now are due, to the tune of $115
million during this budget.
Some of the reasons that TSF money
went directly to hospitals to fund uncom-
pensated care is because they are under-
paid by the safety-net payer, Medicaid,
which a recent analysis indicates reim-
burses at 81 cents on the dollar.
There are no hospitals or hospital staff
that treat only the uninsured or patients
insured by Medicaid, and Pennsylvania
doesn’t have a public hospital system. As
a result, the hospital community treats all
patients, regardless of the type of insur-
ance they have — and serves as the safety
net for the underinsured and uninsured.
Even with the improvement in the insured
rate through the Affordable Care Act and
Medicaid expansion, we still have people
who are uninsured and need help.
Our hospitals rely on these funds to
make sure they can stay open and contin-
ue to treat everyone. The state has options
to balance its budget — options that don’t
jeopardize the already stressed financial
situations of many of Pennsylvania’s hos-
pitals.More than a third of Pennsylvania’s
hospitals operated in the red last fiscal
year. Among that group, more than three-
quarters have been operating in the red
for the last three fiscal years. Now, more
than ever, these hospitals are relying on
the enduring promise that the TSF will be
there to help them continue to stay open,
remain financially stable and treat every
patient who walks through their doors.
Trends may come and go, but the Penn-
sylvania hospital community’s mission
remains focused on health care. We call on
the legislature to make sure it remains the
mission of the TSF, too. Don’t rob patient
care to fill budget gaps.•
Andy Carter is president and CEO of The
Hospital and Healthsystem Association of
Pennsylvania in Harrisburg.
AndyCarter
A strong wellness program can be a
differentiator for recruitment, reduce the
cost of health care benefits and help build
a team atmosphere based around healthy
choices. However, communicating the
benefits and program elements of a well-
ness initiative can be hard to navigate. Hu-
man resources and cor-
porate leadership need to
walk a fine line – avoiding
sounding paternal, mor-
alistic or even too per-
sonal while empowering
employees and spurring
participation.How a company com-
municates can make a big
difference. It can boost
enrollment in the wellness strategy and
create more engagement among employ-
ees. Those who are engaged at work will go
the extra mile and demonstrate increased
productivity, which shows up in a compa-
ny’s profitability, turnover numbers, safety
incidents and quality.
Communication is key for an employee
health and wellness program and for a
business overall. Looking to a professional
communicator for ideas and best practices
will help streamline communications sur-
rounding such a program and lead to more
engaged, healthier employees.
What can you do?
• See things from the employees’ per-
spective. How will the wellness program
components benefit them? Why should
they care? Does it affect their work life or
home life? Zero in on key factors affecting
employees and highlight the benefits of
healthy choices.
• Avoid communicating to staff as if
they are marketing targets. Trust them
and communicate with them as if they
are “one of us,” instead of “one of them.”
Use “we” and communicate from a team
perspective, rather than a top-down
standpoint. • Talk about the rewards – not only for
their personal lives, but rewards of the
program. What’s in it for them can be a
powerful motivator to expand participa-
tion. That participation, in turn, can build
a team atmosphere and lead to higher
engagement. • Consider health and wellness ambas-
sadors. Peer-to-peer communication is
powerful and partnering with passionate
team members to communicate can re-
move the paternalistic factor.
• Connect the dots for employees to the
bigger corporate picture. Participation in
wellness programs has the potential to de-
crease company health benefit costs over-
all, which in turn could make a difference
in employees’ premium or out-of-pocket
health care costs.
• Remove jargon, whether health care
or HR wording that might not be easily un-
derstood. Remember, when jargon is used,
it may mean the employees are unlikely to
understand the message.
• Avoid populating emails or messages
with large amounts of information. People
digest details in small chunks, so consider
an ongoing campaign to share bits and
pieces of information, or a web page to
view the full information when employees
are interested and have time.
• Have a sense of humor when commu-
nicating. Loosening up a formal approach
can go a long way to creating engagement
with the communication and getting on
board with the program.
• Make it a two-way conversation. Ask
employees what program components
they’d like to see. Find out what might mo-
tivate them to participate. Ask for ideas on
communicating the details to staff.
• Use social channels to help spread
the word. Whether its an internal social
tool such as Slack or Yammer or a closed
group on Facebook or LinkedIn, encour-
age employees to share pictures of their
healthy choices and/or program partici-
pation. Build a little competition between
company segments and offer content
meant to engage the group – ask ques-
tions, post a quiz or host a ‘meet this goal’
challenge.
• Bring creative ideas to the effort.
Consider interesting program elements to
up the ante of interest and participation.
Think about bringing in a local chef to of-
fer a cooking class, having a local farm
stand bring in their fresh produce regu-
larly or bring in a gardening expert to offer
a hands-on workshop for growing veg-
etables or herbs. At GRIT, team members
in the wellness program are walking miles
(via a step tracker) to earn a free airplane
ticket to anywhere in the world. The more
creative and out-of-the-box the program,
when paired with easy ways to participate,
the more people will want to take part.
• Stay diverse with your communica-
tions focus. If there is a large subset of
staff who bike to work, that’s great, but if
that’s all communications are about, the
company risks losing support from other
parts of the employee base. The same goes
for any topic: if it’s strictly about one thing,
the business might lose the interest of its
whole audience.
Internal communications centered around
health and wellness can make or break pro-
gram participation. Get together with HR,
leadership and a few employees to brain-
storm the best ways to get the message out.
•
Julie Lando is the owner and president of GRIT
Marketing Group, a marketing and communica-
tions firm with offices in York and Lancaster.
GUEST VIEWHealth and wellness communications can be engaging
JulieLando
6 www.CPBJ.com • Central Penn Business Journal • 717-236-4300 JUNE 14, 2019
By Stacy WescoeBridgeTower Media
Stefanie Angstadt started making cheese as a hobby soon after graduating from col-lege in 2008.
After a few years she knew it was some-thing she wanted to do full time.
She opened Valley Milkhouse in a former dairy farm in Oley in 2014 and began to manufacture and sell her cheeses profes-sionally.
Not a dairy farmer, herself, she partnered with other small Berks County dairies to buy fresh warm milk “straight from the udder.”
Her cheeses — mostly a mix of softer and aged styles — were a hit.
“We make everything by hand. It’s very good cheese so there is a demand,” Angstadt said.
In fact, demand often outpaced her sup-ply. Nonetheless, she struggled with the lo-gistics of getting the cheese she was making to the people who wanted it.
While around 80 percent of the cheese she makes is sold wholesale to markets and restaurants, profits were much higher on the 20 percent of the product she was selling at her farm stand and the two farmers markets she attends, the Easton Farmers Market in downtown Easton and one in Philadelphia.
“The question was, how do we reach these people who want to buy our cheese without standing there at a farmers market all day — sometimes in the rain — hoping the right people will come buy it?” she said.
Organizing principalIn 2016, as fate would have it, an old
friend of Angstadt’s, Alex Jones, a prominent organizer of commu-nity-supported agri-culture programs in the Greater Philadel-phia area, had just left a job with a CSA.
In a typical CSA, a group of farmers connect with a group of consumers who want to buy fresh, local produce. They sell shares of their fu-ture crop to the con-sumers, who then pick up weekly or monthly boxes of the farmers’ latest crops, sharing both the risk and the rewards of the farmers’ season and giving those farmers a more reliable source of income.
“My job was to buy products from dozens of local farmers,” Jones said.
She was looking to take her CSA skills and use them in a new way. She thought of Angstadt and another cheesemaker she had met in her old job: Sue Miller of Birchrun
Hills Farm in Chester County.Jones pitched the idea of using the CSA
format to develop a new way of selling craft cheese to cheese fans. That led Jones, Ang-stadt and Miller in 2016 to create the Collec-tive Creamery CSA, based out of Angstadt’s Oley creamery, with Jones as the operations manager and Angstadt and Miller as the two primary cheese makers.
“We thought between the three of us, we could pool our resources and move beyond farmers markets,” Angstadt said.
According to Jones, the trio didn’t invent the idea of a cheese-based CSA. But, she said, “A cheese CSA is still pretty unique.”
Jones said it also makes sense.“You can get subscriptions for anything
today — dog products, beauty products —why not cheese?” she said.
A profitable boostThe Collective Creamery is now heading
into its third year. And while it is still just a small part of each of the cheesemakers’ business, it is an important one.
By eliminating the middleman, the chee-semakers get more of the profit.
Angstadt said her profit margin is gener-ally about 15 percent to 20 percent on the roughly $150,000 in gross sales she has in a year. That makes it a challenge to maintain a capital-intensive operation. Anywhere she can improve the profit margin is a boost.
Profits on the CSA vary from month to month, but she said they tend to average at the higher end of her overall profits.
The current CSA package from the Col-lective Creamery ranges from $180 for a once-a-month pickup of two pounds and four varieties of cheese for four months
to $280 for a twice-monthly pickup of one-and-a-half pounds and three varieties of cheese for four months. CSA packages gen-erally run from five to six months. The current package is shortened since the current CSA season has already begun.
Customers pick up their orders at participating loca-tions. Most are busi-nesses that focus on
local craft foods and products like farm stands or craft brewers, which support “buy local” efforts.
Having a variety of pickup locations in the region helps the Collective’s members spread their cheese sales farther than they could on their own.
Subscriptions can be picked up in two Berks County locations — Hidden River
Brewing Co. in Douglasville and Covered Bridge Farmstand in Oley — and at one location in the Lehigh Valley — Bonn Place Brewing Co. in Bethlehem. Other pickup locations are in the Chester County and Philadelphia areas.
By having a wider client base, the chee-semakers also are able to offer more variety. Angstadt and Miller rotate between six varieties of cheese, including Angstadt’s Witchgrass, her version of a French Valen-cay cheese, and Miller’s Clipper, an aged raw-milk cheese. They also reach out to other cheesemakers in other regions, hop-ing to include their specialty craft cheeses in the CSA to give customers more options.
For example, Miller is currently work-ing with a sheep farmer to blend sheep and cow milk together to make a creamy Camembert-style cheese.
Ultimately, their goal is to turn cheese lovers into die-hard cheese fans.
“We want to cultivate the cheese culture in this area like it is in Europe. We don’t want people to see cheese as a guilty pleasure, but as a food you eat every day,” Angstadt said. “This is a way to grow the cheese community.
“People don’t see fine cheese as a neces-sity,” added Jones. “When they go to the gro-cery store they feel they have to get produce and bread … we want them to think of fine cheese like that, not as a luxury.”
Miller sees the craft cheese industry growing in much the same way the craft beer industry has developed and grown, with those in the industry working cooperatively instead of competitively to boost the entire industry by sharing tips and efforts.
“It’s the whole ‘a rising tide raises all ships’ kind of thing,” she said. “We all benefit from a stronger cheese industry.”
Jones said the trio is focused on being a regional leader in the craft cheese industry. They aren’t planning any major expansion.
But they are on the lookout for more pickup locations along their current route and for pockets of cheese lovers who may want to get in on their offerings.
“We have to be lean and use the resources we have,” Jones said.
One secondary benefit to the women’s local craft cheese making is the small boost it gives to the region’s dairy farmers, which Angstadt said are struggling with low prices on the commodities market.
She said there is a dairy crisis across the nation.
According to the National Family Farm Foundation, America has lost over half its dairy farmers in just the last 16 years, as wholesale dairy prices have dropped below 1970 prices.
“Because of the quality I demand, I pay a premium for the milk,” she said.
Her sources include Spring Creek Farm in Wernersville, an organic dairy farm.
Greg Stricker, a partner in Spring Creek, said he pays special attention to the milk he produces for Angstadt.
“I always try to make the highest-quality milk, but we try to concentrate on making a milk that is higher in protein and butter fat to make her cheeses,” Stricker said.
Stricker said the extra money a cheese-maker like Angstadt is willing to pay repre-sents a needed boost for small farms like his.
“It’s a huge benefit to us when a local business like that uses our product,” he said. “It’s essential to find someone making a higher-end product to compete.” <
DAIRY GODMOTHERS
Specialty cheese biz taps into local dairies
From left, Sue Miller, Stefanie Angstadt and Alex Jones brought together their collective talents to form the Collective Creamery CSA in 2016. PHOTO/SUBMITTED
Honey-Bell is a brie-style cheese made by Stefanie Angstadt in her Oley creamery. PHOTO/SUBMITTED
“You can get subscriptions for anything today — dog
products, beauty products — why not cheese?”
— Alex Jones, Collective Creamery CSA
JUNE 21
, 2019
717-23
6-430
0
•
Cent
ral Pen
n Bus
iness
Journ
al
•
www.CPBJ.c
om
7
Accord
ing
to th
e as
soci
atio
n, dro
nes
will
offer
$82
.1 b
illio
n in ec
onomic
ben
efits
and c
reat
e 10
0,00
0 new
jobs
in th
e U
nited
Stat
es a
lone
by 202
5. Th
e as
soci
atio
n’s go
al
is to
enco
urage
sta
te l
eader
s to
support
the
devel
opmen
t of a
dro
ne in
dustry
– o
r
unman
ned a
ircra
ft sy
stem
s, as
they
are
more
form
ally
know
n – bec
ause
other
stat
es
alre
ady a
re d
oing
so.
For exa
mple
, New
York
is p
utting
up $30
mill
ion to
pay
for a
50-
mile
unm
anned
air
corr
idor b
etw
een S
yrac
use a
nd Rom
e, th
e
asso
ciat
ion sa
id. O
ther
stat
es h
ave
becom
e
feder
al t
est
sites
for
the
drone
indust
ry,
while
oth
ers
have
been j
oinin
g re
gional
partn
ersh
ips t
o dev
elop in
itiat
ives
. As e
ach
day p
asse
s, Pen
nsylv
ania
seem
s to be f
allin
g
furth
er b
ehin
d in d
evel
oping
a dom
estic
drone
indust
ry, o
bserv
ers s
aid.
For now
, th
e as
soci
atio
n isn
’t as
king
Pennsy
lvan
ia’s
lead
ers
for
much
– e
xcep
t
to b
e aw
are
of what
is g
oing
on and to
offer
support
as i
deas
devel
op, se
vera
l peo
ple
said
. One
goal
is to
cre
ate
a w
orkin
g gr
oup
with
in th
e st
ate
avia
tion c
aucu
s –
a le
gis-
lativ
e gr
oup – to
dev
elop a
road
map
that
would
“id
entif
y fu
nding
opportuniti
es t
o
support
criti
cal d
rone
infra
stru
cture
,” th
e
asso
ciat
ion sa
id in
a fa
ct sh
eet.
The a
ssoci
atio
n isn’t
aski
ng for n
ew re
gu-
latio
ns, poin
ting o
ut that
dro
nes ar
e reg
ulat-
ed b
y th
e Fed
eral
Avi
atio
n Adm
inist
ratio
n,
or FAA, w
hich c
ontrols
U.S. a
irspac
es a
nd
alre
ady
require
s co
mm
erci
al d
rone
opera-
tors
to g
et a
lice
nse.
But that
does
n’t m
ean th
ere
is no ro
om
for
actio
n on t
he st
ate
leve
l. In
Oct
ober
2018
, Pen
nsylv
ania
law
mak
ers
passe
d Act
78, w
hich li
mits
the
abili
ty o
f munic
ipal
i-
ties
to r
egula
te u
nman
ned a
ircra
ft unle
ss
auth
orized
by t
he st
atute
.
Local
juris
dictio
ns ofte
n move
to p
ass
ordin
ance
s that
can in
terfe
re w
ith co
mm
er-
cial
oper
ators
, sai
d Dav
id D
ay, e
xecu
tive
vice
pre
siden
t at
Key
stone
Aeria
l Surv
eys
based
in P
hiladel
phia. Th
at m
akes
educa
-
tion cr
itica
l, he
added
.
Keyst
one does
work
nat
ionw
ide
and h
as
found th
at so
me
offici
als i
n stat
es –
such
as
New
York
and N
ew Je
rsey
– ar
e m
ore aw
are
of iss
ues f
acin
g th
e dro
ne in
dustry
than
those
in P
ennsy
lvan
ia. Th
e ad
voca
cy d
ay
was
an e
ffort to
chan
ge th
at, t
oo, h
e sa
id. I
t
also
is h
oped th
at P
ennsy
lvan
ia’s
gove
rn-
men
t age
ncies
will
incr
easin
gly
adopt t
he
tech
nologi
es,
as a
genci
es i
n oth
er s
tate
s
have,
Day
added
.
The
asso
ciat
ion m
ainta
ins t
hat 3
6 out o
f
the
50 s
tate
s hav
e tra
nsporta
tion d
epar
t-
men
ts t
hat f
und cen
ters
or
progr
ams
for
drone
operat
ions.
PennD
OT,
it s
aid, i
s not
among
those
that
hav
e in
itiat
ed o
utsid
e
progr
ams.
Alexi
s Cam
pbell,
PennD
OT p
ress
secr
e-
tary
, sai
d Pen
nDO
T has
an a
ctiv
e in
tern
al
drone
progr
am a
nd has
bee
n flyi
ng dro
nes
for s
ever
al ye
ars.
“We’
ve r
ecen
tly a
dvance
d our
operat
or
train
ing
and c
ertifi
catio
n pro
gram
and a
re
curr
ently
enga
ged w
ith a
pilo
t pro
gram
as-
sess
ing e
ffici
enci
es fo
r the u
se o
f dro
nes fo
r
3D m
odelin
g of s
tock
piles,
exca
vatio
ns and
road
way
slid
e ar
eas,”
she
said
in a
writ
ten
resp
onse to
ques
tions.
Flyin
g into
new ro
les
Seve
ral a
ttendee
s at
the
June
11 e
vent
said
they
thin
k st
ate
lead
ers
will
be
sup-
portive
of i
deas t
o exp
and d
rone
progr
ams
both w
ithin
sta
te a
genci
es a
nd with
com
-
mer
cial
applic
atio
ns once
they
under
stan
d
the
potentia
l.
Task
s such
as b
ridge
insp
ectio
ns or a
eria
l
surv
eys
that
once
took
wee
ks t
o conduct
can n
ow b
e done
in a
day
or s
o, D
ay s
aid.
Farm
ers,
utiliti
es an
d oth
ers h
ave s
een h
ow
drones
can re
duce th
e cost
s of p
roje
cts a
nd
insp
ectio
ns. Th
ey a
lso h
ave
wei
ghed
the
li-
abili
ty ri
sks a
nd real
ized
they
are
bet
ter o
ff
using
drones
.
Gove
rnm
ents
, how
ever
, see
m to
hav
e a
higher
hurd
le t
o ove
rcom
e w
hen li
abili
ty
conce
rns a
re ra
ised
, Day
said
.
Seve
ral e
xper
ts n
oted th
e co
ncern
s ca
n
be ea
sed o
nce t
he optio
ns ar
e ca
refu
lly
wei
ghed
. For e
xam
ple, t
he ris
ks to
surv
ey a
utility
line t
raditi
onally
would
invo
lve w
ork-
ers
using
ladder
tru
cks
to e
xam
ine
high-
volta
ge w
ires,
whic
h is d
ange
rous w
ork th
at
could
take
wee
ks. N
ow, d
rones
with
cam
-
eras
can
insp
ect t
he sa
me
line
in a
frac
tion
of the
time
– an
d with
out putti
ng peo
ple in
harm
’s w
ay.
As peo
ple b
ecom
e m
ore a
war
e of h
ow
drones
can b
e use
d, the
indust
ry h
as ta
ken
off, Day
and o
ther
s sai
d.
Keega
n Flahiv
e is a
rem
ote p
ilot f
or Arg
os
Unm
anned
Aer
ial S
olutio
ns bas
ed in
Liti
tz.
When
the
com
pany
was
founded
in 2
015,
it did
a lo
t of w
ork w
ith re
al e
stat
e co
mpa-
nies t
hat w
ante
d aer
ial v
iew
s of p
roper
ties,
Flahiv
e sa
id. Th
e co
mpan
y now
does
work
for a
num
ber o
f diff
eren
t clie
nts, i
ncludin
g
const
ruct
ion c
ompan
ies,
utiliti
es a
nd gov-
ernm
ent a
genci
es.
The
opportuniti
es fo
r cre
atin
g new
jobs
and busi
nesse
s ar
e va
st,
said
Alber
t R.
Sarv
is, a
n ass
istan
t pro
fess
or of g
eosp
atia
l
tech
nology
at H
arris
burg U
niver
sity
of Sci
-
ence
and T
echnolo
gy. H
U h
as a
dapte
d its
geosp
atia
l pro
gram
s to
incl
ude th
e use
of
drones
and h
as sp
onsore
d sum
mer
cam
ps
for
studen
ts i
n hig
h sch
ool an
d mid
dle
school t
o enco
urage
inte
rest
in th
e tec
hnol-
ogy, S
arvi
s sai
d.
Oth
ers p
ointe
d out that
drones
have b
een
used in
the fi
lm an
d tele
visio
n indust
ries,
as
wel
l as i
n surv
eyin
g ra
il lin
es a
nd in p
olice
and e
mer
gency
applic
atio
ns, su
ch a
s riv
er
resc
ues. O
ne st
ory to
ld d
uring
the
June
11
even
t was
how
cattl
e had
ruin
ed a
portion of
a fa
rmer
’s cr
ops. A d
rone w
as ab
le to
ass
ess
the
tota
l dam
age,
whic
h hel
ped ju
stify
the
insu
rance
clai
m.
Then
ther
e ar
e th
e sp
in-o
ff busin
esse
s.
Ryan B
oswel
l is
the
Philadel
phia-b
ased
sale
s m
anag
er fo
r Phas
eOne
Indust
rial,
a ca
mer
a co
mpan
y bas
ed in
Colora
do.
PhaseO
ne ca
mer
as ca
n be outfi
tted on
vario
us dro
nes to
do a
var
iety
of w
ork fo
r
gove
rnm
ents
, quar
ry o
perat
ors a
nd util
ity
com
panie
s, am
ong oth
ers,
Boswel
l sai
d.
Day
sai
d the
drone
indust
ry i
s co
m-
petiti
ve in
that
anyo
ne ca
n buy
a dro
ne fo
r
around $
500
and s
et u
p shop.
How
ever
,
com
mer
cial
oper
ators
are
require
d to ta
ke
FAA tr
ainin
g to
bec
ome
a lic
ense
d rem
ote
pilot,
he an
d oth
ers s
aid.
At Key
stone,
Day
sai
d, pric
es c
an ra
nge
depen
ding
on the
job a
nd the
loca
tion. A
day of a
eria
l cam
era w
ork w
ith a
licen
sed re
-
mote
pilo
t mig
ht cost
about $
2,00
0 in
som
e
high-d
ensit
y ar
eas i
n New
York
or N
ew Je
r-
sey a
nd per
haps a
bout $1,
000 e
lsew
here.
<
DRONEco
ntinu
ed fr
om pa
ge 1
David H
eath, d
irect
or of t
he PA D
rone A
ssocia
tion, p
repare
s to m
ake rem
arks a
t Dro
ne Advoca
cy D
ay June 11
in H
arrisb
urg. H
eath and o
ther
supporte
rs hope to
encoura
ge state
leaders
to su
pport th
e growin
g drone in
dustry
. P
HOTO/T
HOMAS A
. BARST
OW
“We’v
e rec
ently
advan
ced
our oper
ator t
rain
ing an
d
certi
ficatio
n progra
m an
d
are c
urrently
engag
ed w
ith
a pilo
t pro
gram
asse
ssin
g
efficie
ncies f
or the u
se of
drones
for 3
D modeli
ng of
stock
piles,
exca
vatio
ns and
road
way sl
ide a
reas
.”
Alexis
Cam
pbell
, Pen
nDOT p
ress
se
creta
ry
JUNE 14, 2019
www.CPBJ.com
Central Penn Business Journal
13
NEWSMAKERSPromotions, appointments, hires
ACCOUNTINGChambersburg-based Rotz and
Stonesifer named Dennis Shindle
senior manager. He provides tax,
consulting and financial state-
ment services to closely held
companies. He is a CPA and a graduate of Shippens-
burg University. ARCHITECTURE/ENGINEERING
Lancaster-based RGS Associ-
ates named Jake Krieger proj-
ect landscape architect. He has
a bachelor’s degree from Temple
University. Matthew Fauth was
named a computer aided drafting
and design designer. He also is a
sergeant in the National Guard. He
has an associate degree from York
Technical Institute. Upper Dublin Township, Mont-
gomery County-based McMahon
Associates Inc. named Christo-
pher K. Bauer an associate. He is
general manager of the Camp Hill
office. He has more than 20 years
of project management and trans-
portation engineering experience
and has helped municipalities
through their responsibilities as
local project sponsors on state
and federally funded projects. He
also serves municipalities’ day-
to-day traffic consulting needs.
He is a professional engineer and
professional traffic operations
engineer. Swatara Township-based Skelly
and Loy named LeShelle Smith
marketing spe-cialist. She will be
responsible for graphics coordi-
nation, including preparation of
brochures, charts and exhibit ma-
terials. She will assist with the development of
special marketing and public rela-
tions programs, communications
and media plans and ensuring
that the website is current and
consistent. She has a degree from
Elizabethtown College.
BANKING/FINANCE
Lower Paxton Township-based
Centric Bank named Patricia A.
Kuhn assistant manager of the
Silver Spring
Township Finan-cial Center. She
will cultivate new
customer rela-tionships, man-
age the internal
sales process,
maintain the
branch’s operational proficiency
and mentor her financial center
team. Most recently, she was a cor-
porate social responsibility super-
visor and head teller II with First
National Bank. She has a bach-
elor’s degree from York College.
Lower Allen Township-based
Members 1st Federal Credit
Union named
Alma Jimenez
branch manager
of the location
inside the Gi-ant Foods store
on East Market
Street, York. She
was a branch
manager for PNC Bank. Manheim Township-based
Ambassador Advisors LLC named
Christopher R. Coolidge chief
investment of-ficer. He leads
the wealth man-agement depart-
ment and works
with various oth-er departments.
He is a chartered financial analyst
charterholder. Manheim Township-based
RKL Wealth Management LLC
named William M. Onorato a
senior wealth
strategist. He will
advise high-net-worth families
on multigenera-tional planning,
legacy planning,
business succes-sion and estate
planning. He has 25 years of es-
tate planning and wealth strategy
experience. He has a bachelor’s
degree and an MBA from Loyola
College and a law degree from the
University of Baltimore. Millersburg-based Mid Penn
Bank named Julie A. Bramlitt
financial adviser for Mid Penn
Financial Services. She will help
clients prioritize, organize and
simplify their financial matters
with customized financial solu-
tions. She has 25 years of banking
and financial services experience
and was a financial adviser with
Smoker Wealth Management.
She has bachelor’s and master’s
degrees from Ashford University.
Laura J. Melfi was named senior
vice president and cash manage-
ment officer with Mid Penn’s First
Priority Bank division. She will be
based in Chester County and con-
tribute to deposit growth through
business development activities.
She will also generate fee income
through cash management prod-
ucts and services, and expand and
retain customer relationships. She
has 43 years of financial services
experience. CONSTRUCTIONLancaster-based
Wohlsen
Construction Co. named Manuel
Maza project
manager and es-timator. He was
project engineer.
He has a bache-lor’s degree from
Millersville Uni-versity.
York-based Wagman Construc-
tion Inc. named Joe Corson direc-
tor of business development for
Maryland. He will
expand the firm’s
participation in
o p p o r t u n i t i e s
and enhance
client relation-ships throughout
Maryland. He has
30 years of con-struction industry experience. He
has a bachelor’s degree from the
University of Baltimore. EDUCATIONMillersville University named
John Cheek director of web and
creative services. He will over-
see the creative
production op-eration and serve
the university’s
marketing needs,
focusing on un-dergraduate and
graduate admis-sions, advance-
ment and the president’s office.
He will also oversee design aspects
of the school’s website. He was
creative director of Schiffer Pub-
lishing. He has a bachelor’s degree
from Millersville. GOVERNMENT Harrisburg-based Pennsyl-
vania Public Utility Commis-
sion named Amy S. Goldman
of Philadelphia and Matthew
Hrivnak of Cumberland County
members of the Pennsylvania
Telecommunications Relay Ser-
vice Advisory Board. Goldman
has been a public member of the
board. She is a speech-language
pathologist, has conducted
trainings on the importance of
telecommunications for those
with disabilities and has been
involved with the administra-
tion of Pennsylvania’s telecom-
munications device distribution
program. Hrivnak will represent
the PUC’s Bureau of Consum-
er Services on the board. He
is manager of compliance and
competition in the bureau’s pol-
icy division. Harrisburg-based State Civil
Service Commission named Te-
resa Osborne of Lackawanna
County a commissioner. She was
secretary of the Pennsylvania De-
partment of Aging. HEALTH CARE East Pennsboro Township-
based Geisinger Holy Spirit
named Dr. Ming Jang a member
of Geisinger Ho-ly Spirit Primary
Care. He will see adult patients
and specialize in geriatric care.
He was a clinical assistant profes-
sor of medicine in the division of geriatric medi-
cine at the University of Pennsyl-
vania’s Perelman School of Medi-
cine. He has a medical degree
from Drexel University College
of Medicine. HOSPITALITYAbbottstown, Adams County-
based Hanover Country Club
named John Danehy manager.
LAW East Hempfield Township-
based Russell, Krafft & Gruber
LLP named Ju-lia G. Vanasse a
member of the family law prac-
tice group. For nearly 20 years,
she was a Lan-caster County
divorce master, and she has 30 years of combined
family law experience. She has a
bachelor’s degree from the Col-
lege of William and Mary and a
law degree from Dickinson School
of Law.
Susquehanna Township-based
Mette Evans & Woodside named
Matthew D. Co-ble a sharehold-
er. He represents
insurance com-panies, fraternal
benefit societies,
insurance pro-ducers and third-
party administra-tors in insurance regulatory, trans-
actional and litigation matters.
MARKETINGLancaster-based Godfrey
named Luke Weidner an asso-
ciate creative director. He will
oversee message unification and
brand consisten-cy and align cre-
ative resources with project and
account needs to ensure efficien-
cy. Most recent-ly, he was the
design manager for Artisanal Brewing Ventures.
Weidner has a bachelor’s degree
from Penn State. NONPROFITSPhiladelphia-based Pennsyl-
vanians for Modern Courts named
retired Judge Lawrence
F. Stengel a board
member. He is a shareholder
with Manheim Township-based
Saxton & Stump and former chief
judge for the Eastern District of
Pennsylvania. PUBLIC AFFAIRSHarrisburg-based Triad Strate-
gies LLC named Rob Ghormoz
a senior associate in the govern-
ment affairs practice. He was a
senior adviser to Gov. Tom Wolf’s
re-election campaign and led his
2019 inauguration. He has a bach-
elor’s degree from Penn State.
SENDING NEWSMAKERS
Send announcements concerning
promotions and newly hired
personnel to [email protected].
Save photos at 300 dpi as TIFF
or JPG files. Please do not embed
photos in word documents. Photos
sent through the mail will not be
returned. Releases should include
the municipality in which the
company is located.
Shindle
Krieger
Fauth
Smith
Kuhn
Jimenez
Coolidge
Onorato
Bramlitt
Melfi
Maza
Corson
Cheek
Jang
Vanasse
Coble
Weidner
Stengel
8
www.CPBJ.com
Central Penn Business Journal
JUNE 7, 2019
OPINION
If yours is like many of the
small businesses I’ve studied, the
price you quote
for your prod-
ucts or services
is determined
by a simple for-
mula, based on
your estimated
costs. Feed in
your costs and
your desired
gross margin
and presto, out comes the price.
There’s just one problem
: price
has nothing to do with cost.
When I tell m
y clients their
prices should have nothing to do
with their costs, they usually look
at me as if I have suddenly sprout-
ed a third eye in my forehead. Af-
ter all, they’ve been doing that for
(fill in the blank) years and it has
worked, for the most part.
That m
ay be true, but in do-
ing so they are probably missing
opportunities to increase profits
on some products or services, or
to gain market share with others.
Those two things are what pricing
strategy is about.
When a business creates a
budget, it estimates sales rev-
enue, costs, and a desired gross
margin that will cover overhead
and produce a budgeted profit.
Looking at the budgeted profit
and loss statement, it is easy to
fall into a trap of thinking, “If we
can just get every sale for the es-
timated cost plus gross m
argin,
we’ll be right on target.” It sounds
simple and scientific, doesn’t it?
The problem
is that what buy-
ers are willing to pay has nothing
to do with the sellers’ costs. You
don’t believe that? I’ll give you
two scenarios.
I wear a Timex Ironm
an
watch that I can buy for about
$35 from a num
ber of retailers.
It is a very accurate watch with a
quartz movem
ent and some very
nice features. “Casual” quartz
watches from Gucci m
ade with
similar m
aterials sell for $275 to
$350. Trust me – I know m
anufac-
turing – there is no possible way
to explain that price differential
based on manufacturing costs.
That’s why you can buy fake
Gucci watches for less than my
Timex on the street. Th
e differ-
ential is totally due to the cachet
of the Gucci brand. The price
is what the market will bear,
the value the buyer puts on the
product. Suppose you have two identi-
cal machines, except one is paid
for and you took out a big loan
for the second one. The per-
son who runs it is a long-time
employee, who m
akes a higher
wage than the guy running the
paid-off machine. Th
e cost of the
second machine is higher than
the cost of the first. Do you be-
lieve you can get a different price
for a product based on which
machine you decide to use? Of
course you can’t.
Pricing is both strategic and
tactical. Working with com
pa-
nies to improve profitability, we
have adopted a strategy of slowly
raising prices above what we
get with the magic form
ula until
customers push back. W
e often
end with prices at a higher, more
profitable level for many, but not
all customers. It’s the custom
er,
not the formula that determ
ines
the best price.
We have experim
ented tactically
with what the market will bear for
change notices, usually much high-
er margins than for the original
orders. In that case the customer is
a captive audience. But sometim
es
we ease up on the change adjust-
ment, and let the custom
er know it
to build good will.
We have som
etimes reduced
prices below the magic form
ula
to build market share or capture
a new account. If the new busi-
ness is incremental, it is all good
on the bottom line.
The m
agic formula gives you
a nice target, but don’t fall into
the trap of thinking that is your
best price.
•
Richard Randall is founder and
president of management-con-
sulting firm New Level Advisors
in Springettsbury Township, York
County. Email him at info@newleve-
ladvisors.com.
In his budget address, Gov. Tom W
olf
stated to applause, “This proposal asks for no
new taxes. Not one dime. Not one penny.”
Yet, as the General Assembly com
bs through
the governor’s proposal, we find that there
are, in fact, tax increases.
One specific tax being proposed by the ad-
ministration is a “double tax” on am
bulatory
surgical centers (ASCs) like
the ones in my district.
ASCs are convenient
health care facilities run
by physicians that provide
same-day surgical and di-
agnostic care for focused
care needs, such as eye
surgeries, colonoscopies,
spine and joint procedures,
and more. Th
ere are 234
Medicare-certified ASCs in Pennsylvania.
The governor expects to take $12.5 m
illion
from these innovative surgical centers, which
is income they would otherwise put toward the
incredible services they provide at lower costs
to patients. ASCs already pay income, sales
and property taxes, as opposed to general hos-
pitals, which do not pay these same taxes.
The governor is correct when he says there
are no “new” taxes in his proposal, as he tried
and was unsuccessful in getting this ASC tax
passed through the General Assembly last
year. It is my hope that the House Republican
Caucus, along with the Pennsylvania Medical
Society and other medical-service advocates,
will prove once more that this tax would be
detrimental to Pennsylvania surgery patients.
First, this tax would cause ASCs to be un-
able to afford state-of-the-art equipment.
Such equipment allows them
to have higher
productivity and healthier patients, but under
this tax plan, this customer care m
ight no lon-
ger be possible.
Another advantage of surgical centers is
that their nurse-to-patient ratios are generally
lower than at general hospitals. These nurses
are trained in one or a few specialized surgical
procedures. This system
ensures that patients
receive the best care possible with the same
nurses caring for them throughout their treat-
ment.Smaller facilities also help surgical hospi-
tals protect patients from spreading infections
among each other. Th
is large reduction in
nosocomial infections is critical in a surgical
environment.
Not only are patients better cared for at
ASCs, but they face lower costs at these cen-
ters than they do at general hospitals. Medic-
aid patients face 50 percent lower costs and
patients with comm
ercial insurance plans
pay as low as 25 percent the costs of a hospi-
tal-based visit.
In addition to saving patients money, these
practitioners also save Medicare $2.3 billion
a year on just the 120 most-com
mon proce-
dures that Medicare patients receive, accord-
ing to UC Berkeley.
UC Berkeley noted in a recent study that
in 2015, Pennsylvania ASCs saved Medicare
$32.6 million on cataract procedures, $1.3
million on upper GI procedures and $6.9 m
il-
lion on cystoscopy procedures.
If the Wolf adm
inistration’s tax proposal
were to be enacted, the Pennsylvania Am-
bulatory Surgery Association, along with a
coalition of state medical societies, warn that
up to 25 percent of these centers may need
to close – pushing thousands of patients into
costly general hospitals and forcing centers to
withdraw from M
edicaid.
This is the very problem
that ASCs were at-
tempting to solve.
This ASC tax would be a blow to com
peti-
tion and innovation in health care. By tying
the invisible hand of the free market in health
care with burdensome taxes, we get less
health and less care.
Another tax on these ASCs would not only
cost the state Medicaid system
, it may even
cost lives.I urge m
y colleagues in the Pennsylvania
House and Senate to vote against this proposal
and I urge Gov. Wolf to visit an ASC like W
est
Shore Endoscopy in Cumberland County to
learn about the progress that is being made by
these entrepreneurial physicians and nurses.
As I meet with physicians and patients in
my district, such as those at W
est Shore En-
doscopy, I have been amazed at the benefits
of their innovative approach.
We all can relate to the phrase, “Surgery is
only minor if it happens to som
eone else.”
Nobody wants to be told they need surgery
and they especially do not want an unpleas-
ant surgery experience.
Thanks to ASCs, thousands of Pennsyl-
vanians have been given a convenient and
quality outpatient experience with positive
outcomes and speedy recovery in the com
fort
of their own homes. A double tax on these
centers would not only be devastating to the
many hardworking physicians in our com
-
monwealth but their patients as well.
For the sake of the health and wellness of
our comm
onwealth, I hope my colleagues in
Harrisburg listen to our physicians and their
patients and reject this tax. •
State Rep. Greg Rothman (R) represents the 87th
House District, which is in Cumberland County.
Proposed tax could harm specialty surgical centers
A formula for profit – or for missing out?
GUEST VIEW
THE WHITEBOARD
Richard
Randall
State Rep.
Greg Rothman
If there’s one constant in health
care, it’s change. UPMC’s invest-
ment in southcentral Pennsylvania
has brought positive change to
our region, including new, highly
specialized services, thousands of
new providers and leading-edge
technology to treat the most
advanced diseases. However, even
positive change can cause confu-
sion. I’d like to take a moment to
clarify a question involving health
insurance plans accepted at UPMC
Pinnacle. UPMC Pinnacle hospitals and
outpatient clinics continue to
accept most major insurance
plans, including Aetna, Capital Blue
Cross, Highmark and UPMC Health
Plan for all services. Changes in the
relationship between Highmark
and UPMC in the greater
Pittsburgh and Erie areas will not
affect the relationship between
UPMC Pinnacle and Highmark.
We look forward to continuing
to care for all of our patients in
2019 and beyond. To learn more
about full, in-network access to
UPMC doctors and hospitals, call
our toll-free help line at 1-833-
879-5013 or visit UPMC.com/
Choice2019. Philip W. Guarneschelli,
President and CEO
UPMC Pinnacle
TO THE EDITOR
8 www.CPBJ.com Central Penn Business Journal MAY 31, 2019OPINIONGUEST VIEW
Latest census data reveals trends to watchThe U.S. Census Bureau recently re-
leased new population estimates that account for and compare the resident population for counties between April 1, 2010 and July 1, 2018. The outcome? There are shifts in population taking place across the nation that may differ from what you might assume. Here are the highlights at a national and local level.
What’s happening locally?Cumberland, Dauphin, Lancaster and
York experience consis-tent growth. The most notable trend between 2010 and 2018 in Central Pennsylvania is that these counties all experienced consistent growth year-over-year. Moreover the growth was fairly even over the last eight years.
Another trend worth noting is that the counties have main-tained the same order of ranking based upon population for eight-plus years. For example, in 2010 the counties in order of smallest population to largest were Cum-berland, Dauphin, York and Lancaster. This is the same ranking we see in 2018,
and every year in between.Lancaster remains the largest and fast-
est-growing county. At 984 square miles, it also is the largest of the four counties. Between 2010 and 2018 it experienced the largest numeric growth at 24,112 people. No. 2 in numeric growth was actually the smallest of the four counties, Cumberland County, which grew by 16,017 people. York County grew by 13,301 people and Dauphin County grew by 8,997 people.
What’s happening nationally?The census data confirmed that coun-
ties with the largest numeric growth are located in the south and the west. In fact, Texas claimed four out of the top 10 spots. Looking at population growth by metropolitan area, Dallas-Fort Worth-Arlington, Texas had the largest numeric growth, with a gain of 131,767 people, or 1.8 percent in 2018. Second was Phoenix-Mesa-Scottsdale, Arizona, which had an increase of 96,268 people, or 2.0 percent. The cause of growth in these areas is migration, both domestic and international, as well as natural increase. In Dallas, it was natural in-crease that served as the largest source of population growth. For Phoenix it was
migration.The fastest growth occurred outside
of metropolitan areas. Surprisingly, no new metro areas moved into the top 10 largest areas. Of the 390 metro areas in the U.S., (including the District of Co-lumbia and Puerto Rico), 102, or 26.2 percent experienced population decline in 2018. The five fastest-shrinking metro areas (excluding Puerto Rico) were Charleston, West Virginia (-1.6 percent); Pine Bluff, Arkansas. (-1.5 percent); Farmington, New Mexico (-1.5 percent); Danville, Illinois (-1.2 percent); and Watertown-Fort Drum, New York (-1.2 percent). The population decreases were primarily due to negative net domestic migration.
North Dakota was home to the fastest-growing county. Among counties with a population of 20,000 or more, Williams County, North Dakota, claimed the top spot as the fastest-growing by percent-age. This county’s population rose by 5.9 percent between 2017 and 2018 (from 33,395 to 35,350 people). The rapid growth Williams County experienced was due mainly to net domestic migration of 1,471 people in 2018. The county also ex-perienced growth between 2017 and 2018
by natural increase of 427 people and in-
ternational migration of 52 people.
There is more growth than decline. Out
of 3,142 counties, 1,739 (or 55.3 percent)
gained population between 2017 and 2018.
Twelve counties (0.4 percent) experienced
no change in population, and the remain-
ing 1,391 (or 44.3 percent) lost people.
Between 2010 and 2018, a total of 1,481 (or
47.1 percent) counties gained population
and 1,661 (or 52.9 percent) lost popula-
tion. Though there has been more growth
than decline overall, the numbers indicate
that this can easily shift year over year.
A deeper dive into the census data
reveals several demographic changes
impacting commercial real estate develop-
ment: household formations, aging baby
boomers, growing millennials, women
in the workforce and migration toward
the South. Today’s demographic changes
present challenges for commercial real
estate developers, but they also offer lu-
crative opportunities to firms creatively
adapting to new demands.•
Mike Kushner is the owner of Omni Realty Group, a real estate firm in Harrisburg. He can be reached through www.omnirealtygroup.com.
Mike Kushner
2018 was a banner year for mergers and acquisitions. Global M&A activity was the second highest on record, with deals totaling $2.72 trillion. Looking ahead, 76 percent of top executives at U.S. compa-nies expect to close more deals this year than last, and a majority predict these deals will be larger, according to a report from Axios. These compa-nies, and others around the globe, turn to M&A deals to increase market share and improve their business models.
Throughout the M&A process, executives are hyper-focused on company synergies and big-picture goals. As a result, one very important fac-tor often goes overlooked – the employer’s retirement plans. There are many details to consider when acquiring a company. Understanding the seller’s retirement plan and how it will fit within the current ben-efit structure is vital to success.
If retirement plans are not considered upfront, executives may learn that the ac-quired company has an underfunded pen-sion plan – which can be a deal breaker – or that the seller’s 401(k) plan does not meet compliance standards.
So, if you’re planning a merger or acqui-sition, consider the retirement plans now to avoid a headache later on.
If the transaction is a stock acquisi-tion – where the buyer takes full owner-ship of the selling company – the buyer then assumes all of the seller’s liabilities, including its retirement plan. The buyer has three options for how to handle the acquired company’s retirement plan. It can either maintain its own plan and the seller’s plan separately, terminate the seller’s plan, or merge the seller’s plan into its own plan.
If the buyer decides to maintain both plans, the newly acquired employees can either be offered the same benefits they had previously, or a new formula for their employer benefits. Maintaining both plans can provide employees continuity of ben-efits with no impact to the buyer’s retire-ment plan. However, operating multiple plans can be burdensome and expensive, and nondiscrimination testing is needed if employees are receiving different benefit packages.
If the buyer is going to terminate the seller’s plan, this decision should be made and the process initiated before the com-panies merge. If the acquired company’s 401(k) is terminated after the transaction, the seller’s employees will face a one-year
restriction before being able to join the buyer’s 401(k) plan, losing out on a full year of tax-efficient savings and employer contributions.
The main advantages of termination are that employees can be integrated into the buyer’s plan with one benefit structure for all; there is only one plan to maintain; and the risk of any liability transfer into the buyer’s existing plan is avoided. The downside is that the employee accounts become immediately accessible. So, if not rolled over into an IRA or other retirement plan, employees could squander retire-ment assets and face penalty taxes for early distribution.
The final option – merging the seller’s and buyer’s plans – requires that both plans be the same type and have a similar plan design. This option can be efficient and cost-effective – one benefit structure, one plan to operate – and it also avoids the negatives of plan termination.
The risk associated with merging are the unknown factors of the seller’s plan. Has it always operated in compliance with all the complex rules associated with retirement plans? If not, the buyer’s plan would be at risk.
Before deciding how to handle the sell-er’s retirement plan, the buyer will need to perform exhaustive due diligence. This
includes confirming past operational and procedural compliance, making sure all plan documents are up-to-date, and con-firming general compatibility between the plans. Examples include reviewing non-discrimination testing results from recent years, the seller’s fiduciary oversight prac-tices, administrative operations such as distributions, payroll and loan processes, and fulfillment of government reporting requirements.
Many companies partner with an out-side consultant to conduct a thorough benefit plan review and help determine the best option. When experts are engaged from the start, they can help ensure the transition is smooth and employees have a clear understanding of the benefits with their new employer.
An organization’s retirement plan should be a consideration from the early stages of an M&A. Though the evaluation process can be lengthy, it’s better to an-ticipate issues that could arise, instead of realizing them in the midst of the merger when it might be too late.
•John Jeffrey is a consulting actuary, specializing in retirement plan consulting and post-employ-ment health care benefits, for Conrad Siegel, which is based in Susquehanna Township, Dauphin County.
GUEST VIEW
Retirement plans should be piece of M&A puzzle
JohnJeffrey
JUNE 7, 2019
717-236-4300 •
Central Penn Business Journal •
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By Jason Scott
Expecting a record year for lending and
more growth, the Lancaster-based Commu-
nity First Fund has been adding staff and
restructuring its executive team.
The nonprofit economic development or-
ganization recently hired Michael Carper, the
former CEO of the Housing Development
Corp. MidAtlantic, to be its chief credit officer.
Community First Fund also contracted with
a finance expert from Chicago to serve as CFO
until it hires someone to the post full-time.
“We’re adding and growing dramatically,”
said Dan Betancourt, the organization’s presi-
dent and CEO.
Community First Fund provides financ-
ing for small businesses, affordable housing
projects and nonprofit organizations located
in low-income communities and serving dis-
advantaged groups, including Latino and Af-
rican-American entrepreneurs. And the need
for services is rising.
The organization, which started out serving
Lancaster, now covers 15 counties in Central
Pennsylvania, the Lehigh Valley and suburban
Philadelphia. Its staff has grown from 20 to 40
over the past five years and it is making more
direct loans to businesses, with volume rising
from about $10 million to $30 million in the
past three years.
The nonprofit also has opened new loan offic-
es in Allentown and Philadelphia where it would
like to add more people to expand lending.
“We expect to go deeper into markets we are
in,” Betancourt said.
But depth, he said, requires a bigger team.
That starts at the executive level.
In addition to adding new execs, the non-
profit has made some internal promotions.
COO Joan Brodhead was recently named se-
nior executive vice president and chief strategic
initiatives officer, while senior vice president of
lending James Buerger was elevated to execu-
tive vice president and chief lending officer.
Community First also has hired staff to work
under each of the C-suite executives.
The growth comes at a time when Commu-
nity First has been positioning itself as a go-to
resource for investors and developers inter-
ested in the federal opportunity zone program,
in which investors can get a tax break on capi-
tal gains by investing in projects in qualified
distressed areas, dubbed opportunity zones.
The investments typically will flow through
what are known as qualified opportunity funds.
Community First has been working to develop
such funds, which could work in combination
with other state and federal incentives.
Among the most notable of those is the
New Markets Tax Credit program, a federal tax
credit program operated by the U.S. Treasury
Department that helps support large urban
redevelopment projects.
Community First is one of two local orga-
nizations that can apply for those federal tax
credits.
The other — Harrisburg-based Common-
wealth Cornerstone Group, a subsidiary of
the Pennsylvania Housing Finance Agency
(PHFA) — recently was awarded $55 million
in the latest round of funding.
Community First was shut out but hopes
its clients still can take advantage of the in-
centives.
“We plan to work with clients and try to
help them find an allocation through another
organization,” Betancourt said.
Community First and Commonwealth Cor-
Pictured, clockwise from bottom left, is Community First Fund’s executive team: Dan
Betancourt, president and CEO; Mike Carper, chief credit officer; James Buerger, executive
vice president and chief lending officer; and Joan Brodhead, senior executive vice president
and chief strategic initiatives officer. PHOTO/SUBMITTED
Tax credit plan
After being shut out in the last fund-
ing round in 2017, Central Pennsylvania will
receive a share of 2018 tax credits under a
new round of funding from a federal program
designed to support large urban redevelop-
ment projects: the New Markets Tax Credit.
The U.S. Treasury Department last month
awarded $55 million in tax credits to the
Pennsylvania Housing Finance Agency’s
Commonwealth Cornerstone Group, based in
Harrisburg.
Commonwealth Cornerstone’s executive
director Charlotte Folmer said the funding
will help the nonprofit tackle a hefty pipeline
of projects seeking funding.
“We have over 40 projects requesting
over $700 million,” she said, noting that the
requests come from across the common-
wealth.
Folmer said she hopes the tax credits will
be able to support about seven projects this
year — likely mixed-use, commercial and
community service projects — with a focus on
those that exceed $5 million.
Developers often have to spend more
money to buy and fix up vacant and blighted
properties than they can expect to get back
in rental rates once construction is complet-
ed. The New Markets program takes private
equity from investors, usually banks, and
turns that money into gap financing to help
developers offset some of the construction
costs and keep rents in line with what a local
real estate market can support.
The investors receive tax credits in return,
which count against their federal income
taxes.Investors can receive credits totaling 39
percent of their investment. They can use the
credits over seven years as such: 5 percent
per year for the first three years and 6 per-
cent for the next four years.
Folmer said it will be several weeks until
Commonwealth Cornerstone receives its
federal allocation, the organization’s eighth.
The previous seven allocations have helped
fund 38 developments in the state, including
the Hamilton Health Center in Harrisburg,
Lancaster’s Keppel Building and the renova-
tion of Gettysburg’s Schmucker Hall.
In the meantime, officials are narrowing
down mixed-use and commercial projects
across the state that could receive the tax
credits. Part of that selection process could
include working with Lancaster-based
Community First Fund, which did not receive
tax credits this year but has its own backlog
of projects.
The two midstate nonprofits have part-
nered on tax-credit projects in the past,
including the redevelopment of the former
Bulova building in Lancaster. Commonwealth
Cornerstone poured $10 million in tax cred-
its into the project, while Community First
added another $8 million.
Folmer said project announcements could
come this fall.
Community First Fund
expanding executive team
please see EXPANDING page 7
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• Central Penn Business Journal
• 717-236-4300
JUNE 14, 2019
FOOD BUSINESS
Craft-beer boom spurs local hops farmers
By Jason Scott
Pennsylvania leads the nation in craft-
beer production.
But while more beer is being brewed in
places like Carlisle, Harrisburg and York,
brewers here must rely on some key in-
gredients that often travel long distances.
One is hops, which are not widely
grown in Pennsylvania, or on the East
Coast in general.
In fact, most hops come from Washing-
ton, Oregon and Idaho, which account for
the majority of the country’s hop produc-
tion. Washington alone has about 40,000
acres of hops.
Two Cumberland County hop farmers
are hoping to claim a piece of that market
and inspire other Pennsylvania farmers to
consider cultivating the crop for breweries
in Pennsylvania.
“It’s a niche thing. Not too many peo-
ple do it,” said Michael Reifsnyder, who
planted 3,400 hop plants on his 15-acre
West Pennsboro Township property in
2017.
A big reason for the lack of new hop farm-
ers is difficulty in getting started and com-
peting with larger established operations.
“These local houses are up against com-
panies that can reach a better economy
of scale, plus have quality control proce-
dures and logistics plans that have been
in place for decades,” said Brandalynn
Armstrong, co-owner of Zeroday Brewing
in Harrisburg. “It makes it harder for the
small producer to compete.”
Hop growing requires a large trellis for
the twining vines and an irrigation system.
Farmers also need special equipment to
harvest, process and package the hops.
Hops, which take three years to reach
full harvest, also are prone to pests and
diseases and can be difficult to grow in
certain soil types and climates.
But Reifsnyder, who retired in 2011
from the U.S. Navy after 22 years of service,
took a chance on hops after experiment-
ing with grapes and asparagus on his
Carlisle-area farm, dubbed GEMS Farm.
He also saw success at nearby hop yard
Sunny Brae Farms and thought his farm
could provide complementary varieties of
fresh local hops to small breweries.
He and his wife, Sharon, along with
their two teenage daughters, maintain
the hop yard, which is entering its second
year of harvest. GEMS currently grows five
varieties of hops on 3.25 acres, but the plan
is to eventually grow to seven acres, plant
a wider variety of hops and reach more
breweries.
“Expansion is on our radar,” he said.
Local thirst
In preparation for hop harvest later
this summer and early fall, the Reifsny-
ders recently purchased equipment that
will allow them to pelletize dried hops
— meaning to grind them into powder
and press them into small pellets. Pellet-
ized hops have a longer shelf life and are
what many brewers rely on throughout
the year.
The farm’s hop yard could yield about
5,000 or 6,000 pounds of hops this year.
GEMS expects to pelletize the majority
of its hops this year after selling almost
all of its harvest last fall to local breweries
making wet-hopped beers — also known
as fresh-hop beers that use hops fresh off
the vine.
Wet-hop batches of beer can use five
to 10 times as many hops as pelletized
batches.
Local brewers say they are eager to buy
more local ingredients, including hops,
but purchasing decisions come down to
quality, price and availability.
Jeff Musselman, head brewer at the
Millworks in Harrisburg, said the local
market has struggled to check all three
buckets. Most local hop farms are growing
on one or two acres and not pelletizing.
“The vast majority of local hops are
brewed in late summer or early fall for
wet-hop beers,” he said. “That has been
the big limitation.”
The Millworks and other breweries said
they would like to buy more local hops
year round, especially pelletized hops, to
support farmers.
“I think brewers absolutely want to use
it,” Musselman said, noting the differences
in smell and taste between East and West
Coast hops.
But Musselman said he expects local
hops would cost more than those from
larger West Coast suppliers, given the
lower hop volumes at local farms. Nev-
ertheless, he said he would still buy local
hops for special PA Preferred brews, i.e.,
beers made with Pennsylvania-produced
agricultural commodities, like hops or
grain.
Victor Shaffer and Andrew Lyons start-
ed growing an acre of hops outside of
Mechanicsburg last year. Their company,
called Lion Bines Hop Farm, is expected to
produce a partial harvest of hops this year
and a full harvest next year.
But the partners are investing now in
processing equipment to pelletize their
hops, with an eye on making extra money
by pelletizing hops for other farmers.
“In the future, we would love to process
for other farms so there is less of a cost
barrier,” Shaffer said.
Both Cumberland County hop farms
acknowledged the hops business in Penn-
sylvania is not much more than a seedling.
But through trial and error, they are opti-
mistic hop farms will begin to sprout.
“I hope we see more hop growers,” Rei-
fsnyder said. <
Lancaster County is continuing to draw
more people, with 2018 as the ninth consec-
utive year that the county saw increases in
visitors, visitor spending and tourism jobs.
The nine-year uptick is the result of a
diverse group of businesses and continued
changes in the perception of the county,
the county’s tourist information center, Dis-
cover Lancaster, wrote in a recent report.
Visitors to the county spent $2.24 billion in
2018, up 4.6 percent from $2.14 billion in 2017.
Of that total, $482 million of went to wages and
salaries for the 16,968 people working in the
Lancaster County tourism industry, accord-
ing to the report by Discover Lancaster, which
is based in East Lampeter Township.
The number of visitors to the county also
increased, rising from 8.64 million in 2017
to 8.85 million people in 2018, an increase
of 2.5 percent.
The report’s data was provided by Oxford,
England-based Tourism Economics and
based on hotel-tax collections reported by
the county, average hotel-room rates and
trends in visitor spending.
Lancaster County has had a long tradi-
tion of enticing tourists to its Pennsylvania
Dutch dining, outlet shopping and family
attractions like the Strasburg Railroad in
Strasburg Township and Dutch Wonder-
land in East Lampeter Township.
Those attractions have continued to pull
in tourists from across the globe but now
share the market with new businesses and
destinations.
They include popular restaurants and
bars, revitalized downtowns in places like
Lititz and Columbia, and outdoor activities
like Refreshing Mountain Retreat in Clay
Township, according to Joel Cliff, director
of communications for Discover Lancaster.
“We have worked on broadening our
brand for the last five or six years to expand
people’s expectations of what Lancaster is
all about,” Cliff said. “There are eight or 12
reasons to come to Lancaster not just the
three you already knew.”
The tourism increases also mirror the
economic growth in the U.S. as a whole, ac-
cording to Cliff.
“Clearly the economy has continued to
build itself back after the Great Recession,”
Cliff said. “It was building steam in 2017 and
certainly last year.” <
— Ioannis PashakisLancaster County tourism sees gain in visitors
Mike and Sharon Reifsnyder stand in the hop yard of their West Pennsboro Township
farm. They began growing the crop in 2017 in a bid to make locally grown hops more
available. PHOTO/MARKELL DELOATCH
6
www.CPBJ.com
Central Penn Business Journal
JUNE 21, 2019
OPINION
GUEST VIEWAt risk: A win for health care over big tobacco
A lot has changed since 1998, the year
that Pennsylvania and 45 states stood up
to big tobacco and helped create the To-
bacco Settlement Fund, or TSF. We may
have moved on from CD-
ROMs, dial-up internet
and the Y2K-bug frenzy.
But a few things have
stood the test of time:
Pokémon, “Toy Story”
and Pennsylvania’s com-
mitment to keeping the
core mission of the TSF
dedicated to health care.
It took the 46-state co-
alition years of fighting with major tobacco
companies in order to come to the 1998
Master Settlement Agreement; the funds
weren’t distributed in Pennsylvania until
the Tobacco Settlement Act of 2001.
Throughout that process, The Hospital
and Healthsystem Association of Pennsyl-
vania and the commonwealth’s hospitals
played a big role in ensuring that money
was preserved for health care — not to fill
one-time budget holes or fund other proj-
ects. We worked with health educators, re-
searchers and provider groups to find the
right balance for everyone.
Since Pennsylvania hospitals first began
receiving this money, it has been used to:
• Help people quit using tobacco prod-
ucts• Provide access to health care for ev-
eryone, regardless of their insurance or
health status• Fund research to cure diseases like
cancer, and improve the health of all
Pennsylvanians• Support financially fragile rural hos-
pitals, which serve large proportions of
vulnerable patients
• More recently, help hospitals address
the opioid crisisSpecifically, during fiscal year 2017–
2018, Pennsylvania’s hospitals received
$28.5 million through the TSF at the state
level, which is then matched by the federal
government to total approximately $60
million. This money goes to cover the cost
of caring for the uninsured and underin-
sured.Pennsylvania also received more than
$44 million for CURE grants during the
fiscal year 2014–2015. The grants help
universities, hospitals and research orga-
nizations partner to unlock solutions for
cancer, ways to improve the quality and
outcomes of health care, and how to ad-
dress community health issues.
This year, these hospital dollars and re-
search funds could be at risk.
Gov. Tom Wolf’s budget plan kept the
TSF whole, but we are concerned that this
year some lawmakers want to use tobacco
dollars to pay state debt. You see, during
the 2017–2018 state budget process, the
General Assembly authorized borrowing
against $1.5 billion in future TSF payments
to balance the state’s budget. The bond
payments now are due, to the tune of $115
million during this budget.
Some of the reasons that TSF money
went directly to hospitals to fund uncom-
pensated care is because they are under-
paid by the safety-net payer, Medicaid,
which a recent analysis indicates reim-
burses at 81 cents on the dollar.
There are no hospitals or hospital staff
that treat only the uninsured or patients
insured by Medicaid, and Pennsylvania
doesn’t have a public hospital system. As
a result, the hospital community treats all
patients, regardless of the type of insur-
ance they have — and serves as the safety
net for the underinsured and uninsured.
Even with the improvement in the insured
rate through the Affordable Care Act and
Medicaid expansion, we still have people
who are uninsured and need help.
Our hospitals rely on these funds to
make sure they can stay open and contin-
ue to treat everyone. The state has options
to balance its budget — options that don’t
jeopardize the already stressed financial
situations of many of Pennsylvania’s hos-
pitals.More than a third of Pennsylvania’s
hospitals operated in the red last fiscal
year. Among that group, more than three-
quarters have been operating in the red
for the last three fiscal years. Now, more
than ever, these hospitals are relying on
the enduring promise that the TSF will be
there to help them continue to stay open,
remain financially stable and treat every
patient who walks through their doors.
Trends may come and go, but the Penn-
sylvania hospital community’s mission
remains focused on health care. We call on
the legislature to make sure it remains the
mission of the TSF, too. Don’t rob patient
care to fill budget gaps.•
Andy Carter is president and CEO of The
Hospital and Healthsystem Association of
Pennsylvania in Harrisburg.
AndyCarter
A strong wellness program can be a
differentiator for recruitment, reduce the
cost of health care benefits and help build
a team atmosphere based around healthy
choices. However, communicating the
benefits and program elements of a well-
ness initiative can be hard to navigate. Hu-
man resources and cor-
porate leadership need to
walk a fine line – avoiding
sounding paternal, mor-
alistic or even too per-
sonal while empowering
employees and spurring
participation.How a company com-
municates can make a big
difference. It can boost
enrollment in the wellness strategy and
create more engagement among employ-
ees. Those who are engaged at work will go
the extra mile and demonstrate increased
productivity, which shows up in a compa-
ny’s profitability, turnover numbers, safety
incidents and quality.
Communication is key for an employee
health and wellness program and for a
business overall. Looking to a professional
communicator for ideas and best practices
will help streamline communications sur-
rounding such a program and lead to more
engaged, healthier employees.
What can you do?
• See things from the employees’ per-
spective. How will the wellness program
components benefit them? Why should
they care? Does it affect their work life or
home life? Zero in on key factors affecting
employees and highlight the benefits of
healthy choices.
• Avoid communicating to staff as if
they are marketing targets. Trust them
and communicate with them as if they
are “one of us,” instead of “one of them.”
Use “we” and communicate from a team
perspective, rather than a top-down
standpoint. • Talk about the rewards – not only for
their personal lives, but rewards of the
program. What’s in it for them can be a
powerful motivator to expand participa-
tion. That participation, in turn, can build
a team atmosphere and lead to higher
engagement. • Consider health and wellness ambas-
sadors. Peer-to-peer communication is
powerful and partnering with passionate
team members to communicate can re-
move the paternalistic factor.
• Connect the dots for employees to the
bigger corporate picture. Participation in
wellness programs has the potential to de-
crease company health benefit costs over-
all, which in turn could make a difference
in employees’ premium or out-of-pocket
health care costs.
• Remove jargon, whether health care
or HR wording that might not be easily un-
derstood. Remember, when jargon is used,
it may mean the employees are unlikely to
understand the message.
• Avoid populating emails or messages
with large amounts of information. People
digest details in small chunks, so consider
an ongoing campaign to share bits and
pieces of information, or a web page to
view the full information when employees
are interested and have time.
• Have a sense of humor when commu-
nicating. Loosening up a formal approach
can go a long way to creating engagement
with the communication and getting on
board with the program.
• Make it a two-way conversation. Ask
employees what program components
they’d like to see. Find out what might mo-
tivate them to participate. Ask for ideas on
communicating the details to staff.
• Use social channels to help spread
the word. Whether its an internal social
tool such as Slack or Yammer or a closed
group on Facebook or LinkedIn, encour-
age employees to share pictures of their
healthy choices and/or program partici-
pation. Build a little competition between
company segments and offer content
meant to engage the group – ask ques-
tions, post a quiz or host a ‘meet this goal’
challenge.
• Bring creative ideas to the effort.
Consider interesting program elements to
up the ante of interest and participation.
Think about bringing in a local chef to of-
fer a cooking class, having a local farm
stand bring in their fresh produce regu-
larly or bring in a gardening expert to offer
a hands-on workshop for growing veg-
etables or herbs. At GRIT, team members
in the wellness program are walking miles
(via a step tracker) to earn a free airplane
ticket to anywhere in the world. The more
creative and out-of-the-box the program,
when paired with easy ways to participate,
the more people will want to take part.
• Stay diverse with your communica-
tions focus. If there is a large subset of
staff who bike to work, that’s great, but if
that’s all communications are about, the
company risks losing support from other
parts of the employee base. The same goes
for any topic: if it’s strictly about one thing,
the business might lose the interest of its
whole audience.
Internal communications centered around
health and wellness can make or break pro-
gram participation. Get together with HR,
leadership and a few employees to brain-
storm the best ways to get the message out.
•
Julie Lando is the owner and president of GRIT
Marketing Group, a marketing and communica-
tions firm with offices in York and Lancaster.
GUEST VIEWHealth and wellness communications can be engaging
JulieLando
6 www.CPBJ.com • Central Penn Business Journal • 717-236-4300 JUNE 14, 2019
By Stacy WescoeBridgeTower Media
Stefanie Angstadt started making cheese as a hobby soon after graduating from col-lege in 2008.
After a few years she knew it was some-thing she wanted to do full time.
She opened Valley Milkhouse in a former dairy farm in Oley in 2014 and began to manufacture and sell her cheeses profes-sionally.
Not a dairy farmer, herself, she partnered with other small Berks County dairies to buy fresh warm milk “straight from the udder.”
Her cheeses — mostly a mix of softer and aged styles — were a hit.
“We make everything by hand. It’s very good cheese so there is a demand,” Angstadt said.
In fact, demand often outpaced her sup-ply. Nonetheless, she struggled with the lo-gistics of getting the cheese she was making to the people who wanted it.
While around 80 percent of the cheese she makes is sold wholesale to markets and restaurants, profits were much higher on the 20 percent of the product she was selling at her farm stand and the two farmers markets she attends, the Easton Farmers Market in downtown Easton and one in Philadelphia.
“The question was, how do we reach these people who want to buy our cheese without standing there at a farmers market all day — sometimes in the rain — hoping the right people will come buy it?” she said.
Organizing principalIn 2016, as fate would have it, an old
friend of Angstadt’s, Alex Jones, a prominent organizer of commu-nity-supported agri-culture programs in the Greater Philadel-phia area, had just left a job with a CSA.
In a typical CSA, a group of farmers connect with a group of consumers who want to buy fresh, local produce. They sell shares of their fu-ture crop to the con-sumers, who then pick up weekly or monthly boxes of the farmers’ latest crops, sharing both the risk and the rewards of the farmers’ season and giving those farmers a more reliable source of income.
“My job was to buy products from dozens of local farmers,” Jones said.
She was looking to take her CSA skills and use them in a new way. She thought of Angstadt and another cheesemaker she had met in her old job: Sue Miller of Birchrun
Hills Farm in Chester County.Jones pitched the idea of using the CSA
format to develop a new way of selling craft cheese to cheese fans. That led Jones, Ang-stadt and Miller in 2016 to create the Collec-tive Creamery CSA, based out of Angstadt’s Oley creamery, with Jones as the operations manager and Angstadt and Miller as the two primary cheese makers.
“We thought between the three of us, we could pool our resources and move beyond farmers markets,” Angstadt said.
According to Jones, the trio didn’t invent the idea of a cheese-based CSA. But, she said, “A cheese CSA is still pretty unique.”
Jones said it also makes sense.“You can get subscriptions for anything
today — dog products, beauty products —why not cheese?” she said.
A profitable boostThe Collective Creamery is now heading
into its third year. And while it is still just a small part of each of the cheesemakers’ business, it is an important one.
By eliminating the middleman, the chee-semakers get more of the profit.
Angstadt said her profit margin is gener-ally about 15 percent to 20 percent on the roughly $150,000 in gross sales she has in a year. That makes it a challenge to maintain a capital-intensive operation. Anywhere she can improve the profit margin is a boost.
Profits on the CSA vary from month to month, but she said they tend to average at the higher end of her overall profits.
The current CSA package from the Col-lective Creamery ranges from $180 for a once-a-month pickup of two pounds and four varieties of cheese for four months
to $280 for a twice-monthly pickup of one-and-a-half pounds and three varieties of cheese for four months. CSA packages gen-erally run from five to six months. The current package is shortened since the current CSA season has already begun.
Customers pick up their orders at participating loca-tions. Most are busi-nesses that focus on
local craft foods and products like farm stands or craft brewers, which support “buy local” efforts.
Having a variety of pickup locations in the region helps the Collective’s members spread their cheese sales farther than they could on their own.
Subscriptions can be picked up in two Berks County locations — Hidden River
Brewing Co. in Douglasville and Covered Bridge Farmstand in Oley — and at one location in the Lehigh Valley — Bonn Place Brewing Co. in Bethlehem. Other pickup locations are in the Chester County and Philadelphia areas.
By having a wider client base, the chee-semakers also are able to offer more variety. Angstadt and Miller rotate between six varieties of cheese, including Angstadt’s Witchgrass, her version of a French Valen-cay cheese, and Miller’s Clipper, an aged raw-milk cheese. They also reach out to other cheesemakers in other regions, hop-ing to include their specialty craft cheeses in the CSA to give customers more options.
For example, Miller is currently work-ing with a sheep farmer to blend sheep and cow milk together to make a creamy Camembert-style cheese.
Ultimately, their goal is to turn cheese lovers into die-hard cheese fans.
“We want to cultivate the cheese culture in this area like it is in Europe. We don’t want people to see cheese as a guilty pleasure, but as a food you eat every day,” Angstadt said. “This is a way to grow the cheese community.
“People don’t see fine cheese as a neces-sity,” added Jones. “When they go to the gro-cery store they feel they have to get produce and bread … we want them to think of fine cheese like that, not as a luxury.”
Miller sees the craft cheese industry growing in much the same way the craft beer industry has developed and grown, with those in the industry working cooperatively instead of competitively to boost the entire industry by sharing tips and efforts.
“It’s the whole ‘a rising tide raises all ships’ kind of thing,” she said. “We all benefit from a stronger cheese industry.”
Jones said the trio is focused on being a regional leader in the craft cheese industry. They aren’t planning any major expansion.
But they are on the lookout for more pickup locations along their current route and for pockets of cheese lovers who may want to get in on their offerings.
“We have to be lean and use the resources we have,” Jones said.
One secondary benefit to the women’s local craft cheese making is the small boost it gives to the region’s dairy farmers, which Angstadt said are struggling with low prices on the commodities market.
She said there is a dairy crisis across the nation.
According to the National Family Farm Foundation, America has lost over half its dairy farmers in just the last 16 years, as wholesale dairy prices have dropped below 1970 prices.
“Because of the quality I demand, I pay a premium for the milk,” she said.
Her sources include Spring Creek Farm in Wernersville, an organic dairy farm.
Greg Stricker, a partner in Spring Creek, said he pays special attention to the milk he produces for Angstadt.
“I always try to make the highest-quality milk, but we try to concentrate on making a milk that is higher in protein and butter fat to make her cheeses,” Stricker said.
Stricker said the extra money a cheese-maker like Angstadt is willing to pay repre-sents a needed boost for small farms like his.
“It’s a huge benefit to us when a local business like that uses our product,” he said. “It’s essential to find someone making a higher-end product to compete.” <
DAIRY GODMOTHERS
Specialty cheese biz taps into local dairies
From left, Sue Miller, Stefanie Angstadt and Alex Jones brought together their collective talents to form the Collective Creamery CSA in 2016. PHOTO/SUBMITTED
Honey-Bell is a brie-style cheese made by Stefanie Angstadt in her Oley creamery. PHOTO/SUBMITTED
“You can get subscriptions for anything today — dog
products, beauty products — why not cheese?”
— Alex Jones, Collective Creamery CSA
JUNE 21
, 2019
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that
would
“id
entif
y fu
nding
opportuniti
es t
o
support
criti
cal d
rone
infra
stru
cture
,” th
e
asso
ciat
ion sa
id in
a fa
ct sh
eet.
The a
ssoci
atio
n isn’t
aski
ng for n
ew re
gu-
latio
ns, poin
ting o
ut that
dro
nes ar
e reg
ulat-
ed b
y th
e Fed
eral
Avi
atio
n Adm
inist
ratio
n,
or FAA, w
hich c
ontrols
U.S. a
irspac
es a
nd
alre
ady
require
s co
mm
erci
al d
rone
opera-
tors
to g
et a
lice
nse.
But that
does
n’t m
ean th
ere
is no ro
om
for
actio
n on t
he st
ate
leve
l. In
Oct
ober
2018
, Pen
nsylv
ania
law
mak
ers
passe
d Act
78, w
hich li
mits
the
abili
ty o
f munic
ipal
i-
ties
to r
egula
te u
nman
ned a
ircra
ft unle
ss
auth
orized
by t
he st
atute
.
Local
juris
dictio
ns ofte
n move
to p
ass
ordin
ance
s that
can in
terfe
re w
ith co
mm
er-
cial
oper
ators
, sai
d Dav
id D
ay, e
xecu
tive
vice
pre
siden
t at
Key
stone
Aeria
l Surv
eys
based
in P
hiladel
phia. Th
at m
akes
educa
-
tion cr
itica
l, he
added
.
Keyst
one does
work
nat
ionw
ide
and h
as
found th
at so
me
offici
als i
n stat
es –
such
as
New
York
and N
ew Je
rsey
– ar
e m
ore aw
are
of iss
ues f
acin
g th
e dro
ne in
dustry
than
those
in P
ennsy
lvan
ia. Th
e ad
voca
cy d
ay
was
an e
ffort to
chan
ge th
at, t
oo, h
e sa
id. I
t
also
is h
oped th
at P
ennsy
lvan
ia’s
gove
rn-
men
t age
ncies
will
incr
easin
gly
adopt t
he
tech
nologi
es,
as a
genci
es i
n oth
er s
tate
s
have,
Day
added
.
The
asso
ciat
ion m
ainta
ins t
hat 3
6 out o
f
the
50 s
tate
s hav
e tra
nsporta
tion d
epar
t-
men
ts t
hat f
und cen
ters
or
progr
ams
for
drone
operat
ions.
PennD
OT,
it s
aid, i
s not
among
those
that
hav
e in
itiat
ed o
utsid
e
progr
ams.
Alexi
s Cam
pbell,
PennD
OT p
ress
secr
e-
tary
, sai
d Pen
nDO
T has
an a
ctiv
e in
tern
al
drone
progr
am a
nd has
bee
n flyi
ng dro
nes
for s
ever
al ye
ars.
“We’
ve r
ecen
tly a
dvance
d our
operat
or
train
ing
and c
ertifi
catio
n pro
gram
and a
re
curr
ently
enga
ged w
ith a
pilo
t pro
gram
as-
sess
ing e
ffici
enci
es fo
r the u
se o
f dro
nes fo
r
3D m
odelin
g of s
tock
piles,
exca
vatio
ns and
road
way
slid
e ar
eas,”
she
said
in a
writ
ten
resp
onse to
ques
tions.
Flyin
g into
new ro
les
Seve
ral a
ttendee
s at
the
June
11 e
vent
said
they
thin
k st
ate
lead
ers
will
be
sup-
portive
of i
deas t
o exp
and d
rone
progr
ams
both w
ithin
sta
te a
genci
es a
nd with
com
-
mer
cial
applic
atio
ns once
they
under
stan
d
the
potentia
l.
Task
s such
as b
ridge
insp
ectio
ns or a
eria
l
surv
eys
that
once
took
wee
ks t
o conduct
can n
ow b
e done
in a
day
or s
o, D
ay s
aid.
Farm
ers,
utiliti
es an
d oth
ers h
ave s
een h
ow
drones
can re
duce th
e cost
s of p
roje
cts a
nd
insp
ectio
ns. Th
ey a
lso h
ave
wei
ghed
the
li-
abili
ty ri
sks a
nd real
ized
they
are
bet
ter o
ff
using
drones
.
Gove
rnm
ents
, how
ever
, see
m to
hav
e a
higher
hurd
le t
o ove
rcom
e w
hen li
abili
ty
conce
rns a
re ra
ised
, Day
said
.
Seve
ral e
xper
ts n
oted th
e co
ncern
s ca
n
be ea
sed o
nce t
he optio
ns ar
e ca
refu
lly
wei
ghed
. For e
xam
ple, t
he ris
ks to
surv
ey a
utility
line t
raditi
onally
would
invo
lve w
ork-
ers
using
ladder
tru
cks
to e
xam
ine
high-
volta
ge w
ires,
whic
h is d
ange
rous w
ork th
at
could
take
wee
ks. N
ow, d
rones
with
cam
-
eras
can
insp
ect t
he sa
me
line
in a
frac
tion
of the
time
– an
d with
out putti
ng peo
ple in
harm
’s w
ay.
As peo
ple b
ecom
e m
ore a
war
e of h
ow
drones
can b
e use
d, the
indust
ry h
as ta
ken
off, Day
and o
ther
s sai
d.
Keega
n Flahiv
e is a
rem
ote p
ilot f
or Arg
os
Unm
anned
Aer
ial S
olutio
ns bas
ed in
Liti
tz.
When
the
com
pany
was
founded
in 2
015,
it did
a lo
t of w
ork w
ith re
al e
stat
e co
mpa-
nies t
hat w
ante
d aer
ial v
iew
s of p
roper
ties,
Flahiv
e sa
id. Th
e co
mpan
y now
does
work
for a
num
ber o
f diff
eren
t clie
nts, i
ncludin
g
const
ruct
ion c
ompan
ies,
utiliti
es a
nd gov-
ernm
ent a
genci
es.
The
opportuniti
es fo
r cre
atin
g new
jobs
and busi
nesse
s ar
e va
st,
said
Alber
t R.
Sarv
is, a
n ass
istan
t pro
fess
or of g
eosp
atia
l
tech
nology
at H
arris
burg U
niver
sity
of Sci
-
ence
and T
echnolo
gy. H
U h
as a
dapte
d its
geosp
atia
l pro
gram
s to
incl
ude th
e use
of
drones
and h
as sp
onsore
d sum
mer
cam
ps
for
studen
ts i
n hig
h sch
ool an
d mid
dle
school t
o enco
urage
inte
rest
in th
e tec
hnol-
ogy, S
arvi
s sai
d.
Oth
ers p
ointe
d out that
drones
have b
een
used in
the fi
lm an
d tele
visio
n indust
ries,
as
wel
l as i
n surv
eyin
g ra
il lin
es a
nd in p
olice
and e
mer
gency
applic
atio
ns, su
ch a
s riv
er
resc
ues. O
ne st
ory to
ld d
uring
the
June
11
even
t was
how
cattl
e had
ruin
ed a
portion of
a fa
rmer
’s cr
ops. A d
rone w
as ab
le to
ass
ess
the
tota
l dam
age,
whic
h hel
ped ju
stify
the
insu
rance
clai
m.
Then
ther
e ar
e th
e sp
in-o
ff busin
esse
s.
Ryan B
oswel
l is
the
Philadel
phia-b
ased
sale
s m
anag
er fo
r Phas
eOne
Indust
rial,
a ca
mer
a co
mpan
y bas
ed in
Colora
do.
PhaseO
ne ca
mer
as ca
n be outfi
tted on
vario
us dro
nes to
do a
var
iety
of w
ork fo
r
gove
rnm
ents
, quar
ry o
perat
ors a
nd util
ity
com
panie
s, am
ong oth
ers,
Boswel
l sai
d.
Day
sai
d the
drone
indust
ry i
s co
m-
petiti
ve in
that
anyo
ne ca
n buy
a dro
ne fo
r
around $
500
and s
et u
p shop.
How
ever
,
com
mer
cial
oper
ators
are
require
d to ta
ke
FAA tr
ainin
g to
bec
ome
a lic
ense
d rem
ote
pilot,
he an
d oth
ers s
aid.
At Key
stone,
Day
sai
d, pric
es c
an ra
nge
depen
ding
on the
job a
nd the
loca
tion. A
day of a
eria
l cam
era w
ork w
ith a
licen
sed re
-
mote
pilo
t mig
ht cost
about $
2,00
0 in
som
e
high-d
ensit
y ar
eas i
n New
York
or N
ew Je
r-
sey a
nd per
haps a
bout $1,
000 e
lsew
here.
<
DRONEco
ntinu
ed fr
om pa
ge 1
David H
eath, d
irect
or of t
he PA D
rone A
ssocia
tion, p
repare
s to m
ake rem
arks a
t Dro
ne Advoca
cy D
ay June 11
in H
arrisb
urg. H
eath and o
ther
supporte
rs hope to
encoura
ge state
leaders
to su
pport th
e growin
g drone in
dustry
. P
HOTO/T
HOMAS A
. BARST
OW
“We’v
e rec
ently
advan
ced
our oper
ator t
rain
ing an
d
certi
ficatio
n progra
m an
d
are c
urrently
engag
ed w
ith
a pilo
t pro
gram
asse
ssin
g
efficie
ncies f
or the u
se of
drones
for 3
D modeli
ng of
stock
piles,
exca
vatio
ns and
road
way sl
ide a
reas
.”
Alexis
Cam
pbell
, Pen
nDOT p
ress
se
creta
ry
JUNE 14, 2019
www.CPBJ.com
Central Penn Business Journal
13
NEWSMAKERSPromotions, appointments, hires
ACCOUNTINGChambersburg-based Rotz and
Stonesifer named Dennis Shindle
senior manager. He provides tax,
consulting and financial state-
ment services to closely held
companies. He is a CPA and a graduate of Shippens-
burg University. ARCHITECTURE/ENGINEERING
Lancaster-based RGS Associ-
ates named Jake Krieger proj-
ect landscape architect. He has
a bachelor’s degree from Temple
University. Matthew Fauth was
named a computer aided drafting
and design designer. He also is a
sergeant in the National Guard. He
has an associate degree from York
Technical Institute. Upper Dublin Township, Mont-
gomery County-based McMahon
Associates Inc. named Christo-
pher K. Bauer an associate. He is
general manager of the Camp Hill
office. He has more than 20 years
of project management and trans-
portation engineering experience
and has helped municipalities
through their responsibilities as
local project sponsors on state
and federally funded projects. He
also serves municipalities’ day-
to-day traffic consulting needs.
He is a professional engineer and
professional traffic operations
engineer. Swatara Township-based Skelly
and Loy named LeShelle Smith
marketing spe-cialist. She will be
responsible for graphics coordi-
nation, including preparation of
brochures, charts and exhibit ma-
terials. She will assist with the development of
special marketing and public rela-
tions programs, communications
and media plans and ensuring
that the website is current and
consistent. She has a degree from
Elizabethtown College.
BANKING/FINANCE
Lower Paxton Township-based
Centric Bank named Patricia A.
Kuhn assistant manager of the
Silver Spring
Township Finan-cial Center. She
will cultivate new
customer rela-tionships, man-
age the internal
sales process,
maintain the
branch’s operational proficiency
and mentor her financial center
team. Most recently, she was a cor-
porate social responsibility super-
visor and head teller II with First
National Bank. She has a bach-
elor’s degree from York College.
Lower Allen Township-based
Members 1st Federal Credit
Union named
Alma Jimenez
branch manager
of the location
inside the Gi-ant Foods store
on East Market
Street, York. She
was a branch
manager for PNC Bank. Manheim Township-based
Ambassador Advisors LLC named
Christopher R. Coolidge chief
investment of-ficer. He leads
the wealth man-agement depart-
ment and works
with various oth-er departments.
He is a chartered financial analyst
charterholder. Manheim Township-based
RKL Wealth Management LLC
named William M. Onorato a
senior wealth
strategist. He will
advise high-net-worth families
on multigenera-tional planning,
legacy planning,
business succes-sion and estate
planning. He has 25 years of es-
tate planning and wealth strategy
experience. He has a bachelor’s
degree and an MBA from Loyola
College and a law degree from the
University of Baltimore. Millersburg-based Mid Penn
Bank named Julie A. Bramlitt
financial adviser for Mid Penn
Financial Services. She will help
clients prioritize, organize and
simplify their financial matters
with customized financial solu-
tions. She has 25 years of banking
and financial services experience
and was a financial adviser with
Smoker Wealth Management.
She has bachelor’s and master’s
degrees from Ashford University.
Laura J. Melfi was named senior
vice president and cash manage-
ment officer with Mid Penn’s First
Priority Bank division. She will be
based in Chester County and con-
tribute to deposit growth through
business development activities.
She will also generate fee income
through cash management prod-
ucts and services, and expand and
retain customer relationships. She
has 43 years of financial services
experience. CONSTRUCTIONLancaster-based
Wohlsen
Construction Co. named Manuel
Maza project
manager and es-timator. He was
project engineer.
He has a bache-lor’s degree from
Millersville Uni-versity.
York-based Wagman Construc-
tion Inc. named Joe Corson direc-
tor of business development for
Maryland. He will
expand the firm’s
participation in
o p p o r t u n i t i e s
and enhance
client relation-ships throughout
Maryland. He has
30 years of con-struction industry experience. He
has a bachelor’s degree from the
University of Baltimore. EDUCATIONMillersville University named
John Cheek director of web and
creative services. He will over-
see the creative
production op-eration and serve
the university’s
marketing needs,
focusing on un-dergraduate and
graduate admis-sions, advance-
ment and the president’s office.
He will also oversee design aspects
of the school’s website. He was
creative director of Schiffer Pub-
lishing. He has a bachelor’s degree
from Millersville. GOVERNMENT Harrisburg-based Pennsyl-
vania Public Utility Commis-
sion named Amy S. Goldman
of Philadelphia and Matthew
Hrivnak of Cumberland County
members of the Pennsylvania
Telecommunications Relay Ser-
vice Advisory Board. Goldman
has been a public member of the
board. She is a speech-language
pathologist, has conducted
trainings on the importance of
telecommunications for those
with disabilities and has been
involved with the administra-
tion of Pennsylvania’s telecom-
munications device distribution
program. Hrivnak will represent
the PUC’s Bureau of Consum-
er Services on the board. He
is manager of compliance and
competition in the bureau’s pol-
icy division. Harrisburg-based State Civil
Service Commission named Te-
resa Osborne of Lackawanna
County a commissioner. She was
secretary of the Pennsylvania De-
partment of Aging. HEALTH CARE East Pennsboro Township-
based Geisinger Holy Spirit
named Dr. Ming Jang a member
of Geisinger Ho-ly Spirit Primary
Care. He will see adult patients
and specialize in geriatric care.
He was a clinical assistant profes-
sor of medicine in the division of geriatric medi-
cine at the University of Pennsyl-
vania’s Perelman School of Medi-
cine. He has a medical degree
from Drexel University College
of Medicine. HOSPITALITYAbbottstown, Adams County-
based Hanover Country Club
named John Danehy manager.
LAW East Hempfield Township-
based Russell, Krafft & Gruber
LLP named Ju-lia G. Vanasse a
member of the family law prac-
tice group. For nearly 20 years,
she was a Lan-caster County
divorce master, and she has 30 years of combined
family law experience. She has a
bachelor’s degree from the Col-
lege of William and Mary and a
law degree from Dickinson School
of Law.
Susquehanna Township-based
Mette Evans & Woodside named
Matthew D. Co-ble a sharehold-
er. He represents
insurance com-panies, fraternal
benefit societies,
insurance pro-ducers and third-
party administra-tors in insurance regulatory, trans-
actional and litigation matters.
MARKETINGLancaster-based Godfrey
named Luke Weidner an asso-
ciate creative director. He will
oversee message unification and
brand consisten-cy and align cre-
ative resources with project and
account needs to ensure efficien-
cy. Most recent-ly, he was the
design manager for Artisanal Brewing Ventures.
Weidner has a bachelor’s degree
from Penn State. NONPROFITSPhiladelphia-based Pennsyl-
vanians for Modern Courts named
retired Judge Lawrence
F. Stengel a board
member. He is a shareholder
with Manheim Township-based
Saxton & Stump and former chief
judge for the Eastern District of
Pennsylvania. PUBLIC AFFAIRSHarrisburg-based Triad Strate-
gies LLC named Rob Ghormoz
a senior associate in the govern-
ment affairs practice. He was a
senior adviser to Gov. Tom Wolf’s
re-election campaign and led his
2019 inauguration. He has a bach-
elor’s degree from Penn State.
SENDING NEWSMAKERS
Send announcements concerning
promotions and newly hired
personnel to [email protected].
Save photos at 300 dpi as TIFF
or JPG files. Please do not embed
photos in word documents. Photos
sent through the mail will not be
returned. Releases should include
the municipality in which the
company is located.
Shindle
Krieger
Fauth
Smith
Kuhn
Jimenez
Coolidge
Onorato
Bramlitt
Melfi
Maza
Corson
Cheek
Jang
Vanasse
Coble
Weidner
Stengel
8
www.CPBJ.com
Central Penn Business Journal
JUNE 7, 2019
OPINION
If yours is like many of the
small businesses I’ve studied, the
price you quote
for your prod-
ucts or services
is determined
by a simple for-
mula, based on
your estimated
costs. Feed in
your costs and
your desired
gross margin
and presto, out comes the price.
There’s just one problem
: price
has nothing to do with cost.
When I tell m
y clients their
prices should have nothing to do
with their costs, they usually look
at me as if I have suddenly sprout-
ed a third eye in my forehead. Af-
ter all, they’ve been doing that for
(fill in the blank) years and it has
worked, for the most part.
That m
ay be true, but in do-
ing so they are probably missing
opportunities to increase profits
on some products or services, or
to gain market share with others.
Those two things are what pricing
strategy is about.
When a business creates a
budget, it estimates sales rev-
enue, costs, and a desired gross
margin that will cover overhead
and produce a budgeted profit.
Looking at the budgeted profit
and loss statement, it is easy to
fall into a trap of thinking, “If we
can just get every sale for the es-
timated cost plus gross m
argin,
we’ll be right on target.” It sounds
simple and scientific, doesn’t it?
The problem
is that what buy-
ers are willing to pay has nothing
to do with the sellers’ costs. You
don’t believe that? I’ll give you
two scenarios.
I wear a Timex Ironm
an
watch that I can buy for about
$35 from a num
ber of retailers.
It is a very accurate watch with a
quartz movem
ent and some very
nice features. “Casual” quartz
watches from Gucci m
ade with
similar m
aterials sell for $275 to
$350. Trust me – I know m
anufac-
turing – there is no possible way
to explain that price differential
based on manufacturing costs.
That’s why you can buy fake
Gucci watches for less than my
Timex on the street. Th
e differ-
ential is totally due to the cachet
of the Gucci brand. The price
is what the market will bear,
the value the buyer puts on the
product. Suppose you have two identi-
cal machines, except one is paid
for and you took out a big loan
for the second one. The per-
son who runs it is a long-time
employee, who m
akes a higher
wage than the guy running the
paid-off machine. Th
e cost of the
second machine is higher than
the cost of the first. Do you be-
lieve you can get a different price
for a product based on which
machine you decide to use? Of
course you can’t.
Pricing is both strategic and
tactical. Working with com
pa-
nies to improve profitability, we
have adopted a strategy of slowly
raising prices above what we
get with the magic form
ula until
customers push back. W
e often
end with prices at a higher, more
profitable level for many, but not
all customers. It’s the custom
er,
not the formula that determ
ines
the best price.
We have experim
ented tactically
with what the market will bear for
change notices, usually much high-
er margins than for the original
orders. In that case the customer is
a captive audience. But sometim
es
we ease up on the change adjust-
ment, and let the custom
er know it
to build good will.
We have som
etimes reduced
prices below the magic form
ula
to build market share or capture
a new account. If the new busi-
ness is incremental, it is all good
on the bottom line.
The m
agic formula gives you
a nice target, but don’t fall into
the trap of thinking that is your
best price.
•
Richard Randall is founder and
president of management-con-
sulting firm New Level Advisors
in Springettsbury Township, York
County. Email him at info@newleve-
ladvisors.com.
In his budget address, Gov. Tom W
olf
stated to applause, “This proposal asks for no
new taxes. Not one dime. Not one penny.”
Yet, as the General Assembly com
bs through
the governor’s proposal, we find that there
are, in fact, tax increases.
One specific tax being proposed by the ad-
ministration is a “double tax” on am
bulatory
surgical centers (ASCs) like
the ones in my district.
ASCs are convenient
health care facilities run
by physicians that provide
same-day surgical and di-
agnostic care for focused
care needs, such as eye
surgeries, colonoscopies,
spine and joint procedures,
and more. Th
ere are 234
Medicare-certified ASCs in Pennsylvania.
The governor expects to take $12.5 m
illion
from these innovative surgical centers, which
is income they would otherwise put toward the
incredible services they provide at lower costs
to patients. ASCs already pay income, sales
and property taxes, as opposed to general hos-
pitals, which do not pay these same taxes.
The governor is correct when he says there
are no “new” taxes in his proposal, as he tried
and was unsuccessful in getting this ASC tax
passed through the General Assembly last
year. It is my hope that the House Republican
Caucus, along with the Pennsylvania Medical
Society and other medical-service advocates,
will prove once more that this tax would be
detrimental to Pennsylvania surgery patients.
First, this tax would cause ASCs to be un-
able to afford state-of-the-art equipment.
Such equipment allows them
to have higher
productivity and healthier patients, but under
this tax plan, this customer care m
ight no lon-
ger be possible.
Another advantage of surgical centers is
that their nurse-to-patient ratios are generally
lower than at general hospitals. These nurses
are trained in one or a few specialized surgical
procedures. This system
ensures that patients
receive the best care possible with the same
nurses caring for them throughout their treat-
ment.Smaller facilities also help surgical hospi-
tals protect patients from spreading infections
among each other. Th
is large reduction in
nosocomial infections is critical in a surgical
environment.
Not only are patients better cared for at
ASCs, but they face lower costs at these cen-
ters than they do at general hospitals. Medic-
aid patients face 50 percent lower costs and
patients with comm
ercial insurance plans
pay as low as 25 percent the costs of a hospi-
tal-based visit.
In addition to saving patients money, these
practitioners also save Medicare $2.3 billion
a year on just the 120 most-com
mon proce-
dures that Medicare patients receive, accord-
ing to UC Berkeley.
UC Berkeley noted in a recent study that
in 2015, Pennsylvania ASCs saved Medicare
$32.6 million on cataract procedures, $1.3
million on upper GI procedures and $6.9 m
il-
lion on cystoscopy procedures.
If the Wolf adm
inistration’s tax proposal
were to be enacted, the Pennsylvania Am-
bulatory Surgery Association, along with a
coalition of state medical societies, warn that
up to 25 percent of these centers may need
to close – pushing thousands of patients into
costly general hospitals and forcing centers to
withdraw from M
edicaid.
This is the very problem
that ASCs were at-
tempting to solve.
This ASC tax would be a blow to com
peti-
tion and innovation in health care. By tying
the invisible hand of the free market in health
care with burdensome taxes, we get less
health and less care.
Another tax on these ASCs would not only
cost the state Medicaid system
, it may even
cost lives.I urge m
y colleagues in the Pennsylvania
House and Senate to vote against this proposal
and I urge Gov. Wolf to visit an ASC like W
est
Shore Endoscopy in Cumberland County to
learn about the progress that is being made by
these entrepreneurial physicians and nurses.
As I meet with physicians and patients in
my district, such as those at W
est Shore En-
doscopy, I have been amazed at the benefits
of their innovative approach.
We all can relate to the phrase, “Surgery is
only minor if it happens to som
eone else.”
Nobody wants to be told they need surgery
and they especially do not want an unpleas-
ant surgery experience.
Thanks to ASCs, thousands of Pennsyl-
vanians have been given a convenient and
quality outpatient experience with positive
outcomes and speedy recovery in the com
fort
of their own homes. A double tax on these
centers would not only be devastating to the
many hardworking physicians in our com
-
monwealth but their patients as well.
For the sake of the health and wellness of
our comm
onwealth, I hope my colleagues in
Harrisburg listen to our physicians and their
patients and reject this tax. •
State Rep. Greg Rothman (R) represents the 87th
House District, which is in Cumberland County.
Proposed tax could harm specialty surgical centers
A formula for profit – or for missing out?
GUEST VIEW
THE WHITEBOARD
Richard
Randall
State Rep.
Greg Rothman
If there’s one constant in health
care, it’s change. UPMC’s invest-
ment in southcentral Pennsylvania
has brought positive change to
our region, including new, highly
specialized services, thousands of
new providers and leading-edge
technology to treat the most
advanced diseases. However, even
positive change can cause confu-
sion. I’d like to take a moment to
clarify a question involving health
insurance plans accepted at UPMC
Pinnacle. UPMC Pinnacle hospitals and
outpatient clinics continue to
accept most major insurance
plans, including Aetna, Capital Blue
Cross, Highmark and UPMC Health
Plan for all services. Changes in the
relationship between Highmark
and UPMC in the greater
Pittsburgh and Erie areas will not
affect the relationship between
UPMC Pinnacle and Highmark.
We look forward to continuing
to care for all of our patients in
2019 and beyond. To learn more
about full, in-network access to
UPMC doctors and hospitals, call
our toll-free help line at 1-833-
879-5013 or visit UPMC.com/
Choice2019. Philip W. Guarneschelli,
President and CEO
UPMC Pinnacle
TO THE EDITOR
8 www.CPBJ.com Central Penn Business Journal MAY 31, 2019OPINIONGUEST VIEW
Latest census data reveals trends to watchThe U.S. Census Bureau recently re-
leased new population estimates that account for and compare the resident population for counties between April 1, 2010 and July 1, 2018. The outcome? There are shifts in population taking place across the nation that may differ from what you might assume. Here are the highlights at a national and local level.
What’s happening locally?Cumberland, Dauphin, Lancaster and
York experience consis-tent growth. The most notable trend between 2010 and 2018 in Central Pennsylvania is that these counties all experienced consistent growth year-over-year. Moreover the growth was fairly even over the last eight years.
Another trend worth noting is that the counties have main-tained the same order of ranking based upon population for eight-plus years. For example, in 2010 the counties in order of smallest population to largest were Cum-berland, Dauphin, York and Lancaster. This is the same ranking we see in 2018,
and every year in between.Lancaster remains the largest and fast-
est-growing county. At 984 square miles, it also is the largest of the four counties. Between 2010 and 2018 it experienced the largest numeric growth at 24,112 people. No. 2 in numeric growth was actually the smallest of the four counties, Cumberland County, which grew by 16,017 people. York County grew by 13,301 people and Dauphin County grew by 8,997 people.
What’s happening nationally?The census data confirmed that coun-
ties with the largest numeric growth are located in the south and the west. In fact, Texas claimed four out of the top 10 spots. Looking at population growth by metropolitan area, Dallas-Fort Worth-Arlington, Texas had the largest numeric growth, with a gain of 131,767 people, or 1.8 percent in 2018. Second was Phoenix-Mesa-Scottsdale, Arizona, which had an increase of 96,268 people, or 2.0 percent. The cause of growth in these areas is migration, both domestic and international, as well as natural increase. In Dallas, it was natural in-crease that served as the largest source of population growth. For Phoenix it was
migration.The fastest growth occurred outside
of metropolitan areas. Surprisingly, no new metro areas moved into the top 10 largest areas. Of the 390 metro areas in the U.S., (including the District of Co-lumbia and Puerto Rico), 102, or 26.2 percent experienced population decline in 2018. The five fastest-shrinking metro areas (excluding Puerto Rico) were Charleston, West Virginia (-1.6 percent); Pine Bluff, Arkansas. (-1.5 percent); Farmington, New Mexico (-1.5 percent); Danville, Illinois (-1.2 percent); and Watertown-Fort Drum, New York (-1.2 percent). The population decreases were primarily due to negative net domestic migration.
North Dakota was home to the fastest-growing county. Among counties with a population of 20,000 or more, Williams County, North Dakota, claimed the top spot as the fastest-growing by percent-age. This county’s population rose by 5.9 percent between 2017 and 2018 (from 33,395 to 35,350 people). The rapid growth Williams County experienced was due mainly to net domestic migration of 1,471 people in 2018. The county also ex-perienced growth between 2017 and 2018
by natural increase of 427 people and in-
ternational migration of 52 people.
There is more growth than decline. Out
of 3,142 counties, 1,739 (or 55.3 percent)
gained population between 2017 and 2018.
Twelve counties (0.4 percent) experienced
no change in population, and the remain-
ing 1,391 (or 44.3 percent) lost people.
Between 2010 and 2018, a total of 1,481 (or
47.1 percent) counties gained population
and 1,661 (or 52.9 percent) lost popula-
tion. Though there has been more growth
than decline overall, the numbers indicate
that this can easily shift year over year.
A deeper dive into the census data
reveals several demographic changes
impacting commercial real estate develop-
ment: household formations, aging baby
boomers, growing millennials, women
in the workforce and migration toward
the South. Today’s demographic changes
present challenges for commercial real
estate developers, but they also offer lu-
crative opportunities to firms creatively
adapting to new demands.•
Mike Kushner is the owner of Omni Realty Group, a real estate firm in Harrisburg. He can be reached through www.omnirealtygroup.com.
Mike Kushner
2018 was a banner year for mergers and acquisitions. Global M&A activity was the second highest on record, with deals totaling $2.72 trillion. Looking ahead, 76 percent of top executives at U.S. compa-nies expect to close more deals this year than last, and a majority predict these deals will be larger, according to a report from Axios. These compa-nies, and others around the globe, turn to M&A deals to increase market share and improve their business models.
Throughout the M&A process, executives are hyper-focused on company synergies and big-picture goals. As a result, one very important fac-tor often goes overlooked – the employer’s retirement plans. There are many details to consider when acquiring a company. Understanding the seller’s retirement plan and how it will fit within the current ben-efit structure is vital to success.
If retirement plans are not considered upfront, executives may learn that the ac-quired company has an underfunded pen-sion plan – which can be a deal breaker – or that the seller’s 401(k) plan does not meet compliance standards.
So, if you’re planning a merger or acqui-sition, consider the retirement plans now to avoid a headache later on.
If the transaction is a stock acquisi-tion – where the buyer takes full owner-ship of the selling company – the buyer then assumes all of the seller’s liabilities, including its retirement plan. The buyer has three options for how to handle the acquired company’s retirement plan. It can either maintain its own plan and the seller’s plan separately, terminate the seller’s plan, or merge the seller’s plan into its own plan.
If the buyer decides to maintain both plans, the newly acquired employees can either be offered the same benefits they had previously, or a new formula for their employer benefits. Maintaining both plans can provide employees continuity of ben-efits with no impact to the buyer’s retire-ment plan. However, operating multiple plans can be burdensome and expensive, and nondiscrimination testing is needed if employees are receiving different benefit packages.
If the buyer is going to terminate the seller’s plan, this decision should be made and the process initiated before the com-panies merge. If the acquired company’s 401(k) is terminated after the transaction, the seller’s employees will face a one-year
restriction before being able to join the buyer’s 401(k) plan, losing out on a full year of tax-efficient savings and employer contributions.
The main advantages of termination are that employees can be integrated into the buyer’s plan with one benefit structure for all; there is only one plan to maintain; and the risk of any liability transfer into the buyer’s existing plan is avoided. The downside is that the employee accounts become immediately accessible. So, if not rolled over into an IRA or other retirement plan, employees could squander retire-ment assets and face penalty taxes for early distribution.
The final option – merging the seller’s and buyer’s plans – requires that both plans be the same type and have a similar plan design. This option can be efficient and cost-effective – one benefit structure, one plan to operate – and it also avoids the negatives of plan termination.
The risk associated with merging are the unknown factors of the seller’s plan. Has it always operated in compliance with all the complex rules associated with retirement plans? If not, the buyer’s plan would be at risk.
Before deciding how to handle the sell-er’s retirement plan, the buyer will need to perform exhaustive due diligence. This
includes confirming past operational and procedural compliance, making sure all plan documents are up-to-date, and con-firming general compatibility between the plans. Examples include reviewing non-discrimination testing results from recent years, the seller’s fiduciary oversight prac-tices, administrative operations such as distributions, payroll and loan processes, and fulfillment of government reporting requirements.
Many companies partner with an out-side consultant to conduct a thorough benefit plan review and help determine the best option. When experts are engaged from the start, they can help ensure the transition is smooth and employees have a clear understanding of the benefits with their new employer.
An organization’s retirement plan should be a consideration from the early stages of an M&A. Though the evaluation process can be lengthy, it’s better to an-ticipate issues that could arise, instead of realizing them in the midst of the merger when it might be too late.
•John Jeffrey is a consulting actuary, specializing in retirement plan consulting and post-employ-ment health care benefits, for Conrad Siegel, which is based in Susquehanna Township, Dauphin County.
GUEST VIEW
Retirement plans should be piece of M&A puzzle
JohnJeffrey
JUNE 7, 2019
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By Jason Scott
Expecting a record year for lending and
more growth, the Lancaster-based Commu-
nity First Fund has been adding staff and
restructuring its executive team.
The nonprofit economic development or-
ganization recently hired Michael Carper, the
former CEO of the Housing Development
Corp. MidAtlantic, to be its chief credit officer.
Community First Fund also contracted with
a finance expert from Chicago to serve as CFO
until it hires someone to the post full-time.
“We’re adding and growing dramatically,”
said Dan Betancourt, the organization’s presi-
dent and CEO.
Community First Fund provides financ-
ing for small businesses, affordable housing
projects and nonprofit organizations located
in low-income communities and serving dis-
advantaged groups, including Latino and Af-
rican-American entrepreneurs. And the need
for services is rising.
The organization, which started out serving
Lancaster, now covers 15 counties in Central
Pennsylvania, the Lehigh Valley and suburban
Philadelphia. Its staff has grown from 20 to 40
over the past five years and it is making more
direct loans to businesses, with volume rising
from about $10 million to $30 million in the
past three years.
The nonprofit also has opened new loan offic-
es in Allentown and Philadelphia where it would
like to add more people to expand lending.
“We expect to go deeper into markets we are
in,” Betancourt said.
But depth, he said, requires a bigger team.
That starts at the executive level.
In addition to adding new execs, the non-
profit has made some internal promotions.
COO Joan Brodhead was recently named se-
nior executive vice president and chief strategic
initiatives officer, while senior vice president of
lending James Buerger was elevated to execu-
tive vice president and chief lending officer.
Community First also has hired staff to work
under each of the C-suite executives.
The growth comes at a time when Commu-
nity First has been positioning itself as a go-to
resource for investors and developers inter-
ested in the federal opportunity zone program,
in which investors can get a tax break on capi-
tal gains by investing in projects in qualified
distressed areas, dubbed opportunity zones.
The investments typically will flow through
what are known as qualified opportunity funds.
Community First has been working to develop
such funds, which could work in combination
with other state and federal incentives.
Among the most notable of those is the
New Markets Tax Credit program, a federal tax
credit program operated by the U.S. Treasury
Department that helps support large urban
redevelopment projects.
Community First is one of two local orga-
nizations that can apply for those federal tax
credits.
The other — Harrisburg-based Common-
wealth Cornerstone Group, a subsidiary of
the Pennsylvania Housing Finance Agency
(PHFA) — recently was awarded $55 million
in the latest round of funding.
Community First was shut out but hopes
its clients still can take advantage of the in-
centives.
“We plan to work with clients and try to
help them find an allocation through another
organization,” Betancourt said.
Community First and Commonwealth Cor-
Pictured, clockwise from bottom left, is Community First Fund’s executive team: Dan
Betancourt, president and CEO; Mike Carper, chief credit officer; James Buerger, executive
vice president and chief lending officer; and Joan Brodhead, senior executive vice president
and chief strategic initiatives officer. PHOTO/SUBMITTED
Tax credit plan
After being shut out in the last fund-
ing round in 2017, Central Pennsylvania will
receive a share of 2018 tax credits under a
new round of funding from a federal program
designed to support large urban redevelop-
ment projects: the New Markets Tax Credit.
The U.S. Treasury Department last month
awarded $55 million in tax credits to the
Pennsylvania Housing Finance Agency’s
Commonwealth Cornerstone Group, based in
Harrisburg.
Commonwealth Cornerstone’s executive
director Charlotte Folmer said the funding
will help the nonprofit tackle a hefty pipeline
of projects seeking funding.
“We have over 40 projects requesting
over $700 million,” she said, noting that the
requests come from across the common-
wealth.
Folmer said she hopes the tax credits will
be able to support about seven projects this
year — likely mixed-use, commercial and
community service projects — with a focus on
those that exceed $5 million.
Developers often have to spend more
money to buy and fix up vacant and blighted
properties than they can expect to get back
in rental rates once construction is complet-
ed. The New Markets program takes private
equity from investors, usually banks, and
turns that money into gap financing to help
developers offset some of the construction
costs and keep rents in line with what a local
real estate market can support.
The investors receive tax credits in return,
which count against their federal income
taxes.Investors can receive credits totaling 39
percent of their investment. They can use the
credits over seven years as such: 5 percent
per year for the first three years and 6 per-
cent for the next four years.
Folmer said it will be several weeks until
Commonwealth Cornerstone receives its
federal allocation, the organization’s eighth.
The previous seven allocations have helped
fund 38 developments in the state, including
the Hamilton Health Center in Harrisburg,
Lancaster’s Keppel Building and the renova-
tion of Gettysburg’s Schmucker Hall.
In the meantime, officials are narrowing
down mixed-use and commercial projects
across the state that could receive the tax
credits. Part of that selection process could
include working with Lancaster-based
Community First Fund, which did not receive
tax credits this year but has its own backlog
of projects.
The two midstate nonprofits have part-
nered on tax-credit projects in the past,
including the redevelopment of the former
Bulova building in Lancaster. Commonwealth
Cornerstone poured $10 million in tax cred-
its into the project, while Community First
added another $8 million.
Folmer said project announcements could
come this fall.
Community First Fund
expanding executive team
please see EXPANDING page 7
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For more than 40 years, the London Interbank Offered Rate, or LIBOR, has been a key benchmark for setting the cost of floating-rate debt around the world. LIBOR also plays a big role in pricing debt issued by corporate borrowers. Following the 2008 financial crisis, the integrity of LIBOR was ques-tioned due to manipulation concerns. A contraction in the unsecured interbank lending market has also substantially reduced the volume of transactions on which to base panel bank estimates. With LIBOR rates a less reliable benchmark, regulatory guidance requires banks to stop making new LIBOR loans by the end of 2021 and shift existing LIBOR loans to other indexes by June 30, 2023.
To help speed the transition, the Alternative Reference Rates Committee (ARRC), a group of private-market participants, was convened by the Federal Reserve Board and the New York Federal Reserve Bank to seek alternatives to LIBOR. ARRC is leading the transition away from LIBOR and is responsible for publishing recom-mended best practices to outline important transi-tion activities and milestones.
Additionally, the International Swaps & Derivatives Association (ISDA) is leading the transition of the USD LIBOR derivatives (e.g.,
interest rate swaps) markets away from LIBOR. ISDA and ARRC work closely together to confirm alignment in their objectives.
In 2017, ARRC recommended a new over-night, risk-free benchmark, the Secured Overnight Financing Rate (SOFR), as a replacement bench-mark for U.S. bond and loan market transac-tions. The New York Federal Reserve Bank now publishes SOFR daily, as well as SOFR Averages and a SOFR Index. The Daily Simple SOFR con-vention, also recommended by ARRC, calculates and aggregates interest daily and is being used for many types of business loans.
However, the transition to SOFR is not without its challenges. Because Daily SOFR reflects over-night borrowing rates, borrowers may dislike it because they are less able to predict payments, and their loans wouldn’t reflect expectations of rate changes — one of the key attractions of LIBOR. To address this issue, on July 29, 2021, ARRC for-mally recommended the Chicago Mercantile Exchange (CME) Group’s forward looking 1-month, 3-month and 6-month term SOFR rates for commercial loans, and the number of SOFR-linked products is growing.
Another issue is that unlike LIBOR, the new
rates fail to capture the credit risk that banks assume when they lend. As a result, some market participants and industry groups advocate for, and in some cases employ, an established bench-mark like Prime, or newly created benchmarks such as the American Interbank Offered Rate (AMERIBOR), Bloomberg Short-Term Bank Yield Index (BSBY), or ICE Bank Yield Index (BYI).
Whi le a lternat ives to SOFR – includ-ing credit-sensitive rates – continue to be dis-cussed, most market participants are following the ARRC recommendation to use SOFR as the replacement benchmark rate. If you have an adjustable-rate loan based on LIBOR, find out what index your lender will be switching to. If you’re considering new adjustable-rate debt, ask your lender about options. While there might not be set answers now, keep an eye on the situa-tion. A switch to a different index could potentially mean a change in your base rate in the future.
S cot t S ch l ang e i s the Commercial Banking Leader with KeyBank in Idaho.
While billion-dollar corporations and their very public battles with issues such as ransomware attacks typically garner most of the headlines, small businesses are far from immune to cybersecurity troubles. In fact, they’re just as susceptible as their larger counterparts. According to Accenture’s Cost of Cybercrime Study, 43% of all cyberattacks target small businesses. But less than 15% of the business-es that fit that description are prepared to protect themselves should their systems get breached.
Password management, system updates, consis-tent training – those measures may not be enough. Practicing cyber hygiene does better position your business to avoid a cyberattack. But breaches can still happen, and when they do, the fallout is potentially devastating. Cyber insurance is a form of coverage that helps organizations and individu-als remediate issues that arise following a cyberat-tack. With the number of cybercrimes continuing to rise, pairing consistent cyber hygiene with an appropriate cyber insurance plan is an approach more businesses are taking.
If your data is breached, cyber insurance lessens the amount of time it takes to recover. In many cases, it can also help minimize most the financial losses incurred.
If you’re considering cyber insurance for your company, or maybe you just want to learn what it
is, Better Business Bureau outlines the protections it offers and insight for finding a trustworthy policy:
1. Legal defense: Depending on the severity of the attack, you or your business may need to con-nect with some legal help. That type of assistance is typically pretty costly. Cyber insurance covers expenses should you need to utilize lawyers to help put the pieces back together following a breach.
2. Lost income: Data breaches aren’t cheap. If your business has to shut down its operations because of a cyberattack, those disruptions can result in thousands or even millions of dollars in losses. You may need to purchase new hardware as well, in case the attack caused permanent damage to some of your systems.
3. Ransom: Should an attacker hold your data hostage until you pay to get it back, that’s con-sidered extortion. Covering costs associated with those investigations is included in some cyber insurance policies, as well as any expenses incurred when recovering that information.
4. Reputation: False information about your company that’s shared online can permanently impact your business’s credibility. Its why def-amation connected to cyberbullying or other forms of online harassment is insured under some cyber policies. Finding a trustworthy cyber insurance policy may require a bit of leg work.
“Cybersecurity is such a dynamic and changing environment, policies this year have changed com-pletely from where they were last year,” says Derek Gabriel, CEO of Ignite Solutions Group, a BBB Accredited IT services provider. “The require-ments to get those policies and what those policies will protect has really changed dramatically. So, you really want to work with a specialist.”
Gabriel strongly advises businesses to leverage their current insurance contacts to find someone equipped for the job. Insurance companies that specialize in cyber coverage are becoming more common, too.
C onsumers are becoming increas ing ly knowledgeable on the ways their information can be breached. Adding a cyber insurance policy not only demonstrates to customers that you care about safeguarding their pri-vacy, but it also differentiates you from your competitors. The FTC has provided a list of questions to help you make the right call when choosing a cyber insurance policy.
Keylen Villagrana is a Content & PR Specialist for the Better Business Bureau Great West + Pacific.
GUEST PERSPECTIVE4 reasons to invest in small business cybersecurity
Leaving LIBOR – what does it mean for you?
NEWORLEANSCITYBUSINESS.COM22 New Orleans CityBusiness November 19 - December 2, 2021
Entries are due by February 25, 2022Nomination forms can be submitted at
bit.ly/NOCB-MM22-Noms
New Orleans CityBusiness is looking for 50 professionals whose fiscal work has set the pace for their company and the region. Honorees will be selected based on industry and community involvement and achievement through their energy and innovative ideas. Their work should provide a model of professionalism to
their peers and go above and beyond the call of duty.
Submit nomination forms online or contact Natalie Chandler at (504) 293-9255 or [email protected]
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Nominate a Money Maker TODAY!
Save the Date - May 17, 2022
Banking: Honors individuals such as mortgage lenders,
bank executives, credit officers and loan officers.
Corporate: Honors company-associated individuals such as chief financial
officers and comptrollers.
Investment: Honors individuals such as
stockbrokers, financial advisers, financial
planners and investment executives.
Professional: Honors individuals such as public
accountants, auditors, financial educators and
financial analysts.
Honorees will be recognized in four categories:
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Editor’s Note: Craig Juengling will be responding to your questions in this quarterly feature enti-tled Ask the Executive Coach. Craig will choose questions to respond to which have the broadest appeal to our readers. You can email him at the address [email protected]; please put “Ask the Executive Coach” in the subject line.
Question from Samantha P: Craig, we are struggling with our hiring. We seem to be able to find good prospects, but we can’t seem to make our selections timely and then too many of those we do hire leave within 90 days – many of them by our choice. What insights can you share with us?
Samantha, I hope you don’t make as many mis-takes in hiring as I did in my past professional lives. There were people I couldn’t wait to recruit only to find out later how disappointed I was in their performance and my hiring skills. A general rule of thumb: If a new employee leaves within the first 90 days, it’s the employer who is at fault, regardless of whether they left or you asked them to leave.
Over time, and with some training and experi-ence, three principals helped me to be much more effective and efficient at hiring right, the first time.
First: Hire slowly. Do some homework before you begin the hiring process. Take your time and figure out what you really want to accomplish with this position. Whenever turnover happens, don’t rush and fill the vacancy without revisiting how to improve your outcomes through expanding your employee’s competencies and capabilities. Did you accomplish everything you wanted to in the past? Has the environment changed, and you need to re-think what success in the future looks like? Learn to step back and evaluate what you need to take performance to the next level. Be patient; the cost of future turnover is huge.
Second: Hire the right attitude. “Hire for attitude, train for skills,” is originally attribut-ed to Herb Kelleher, one of the co-founders of U.S.-based Southwest Airlines. Samantha, he was right. Early in my career I frequently felt some-one’s technical skills were crucial to success. No doubt technical skills are important, and perhaps required in some positions. But try to understand what you can do for the future development of that new hire, when you hired someone with the right attitude! Don’t fall into the same trap I did by feeling you are hostage to getting the right degree or license and you settle for something less on the positivity scale. Be patient; the cost of turnover is huge.
Third: Hire using behavioral interview-ing. Behavioral interviewing (BI) is a time-tested methodology to hiring the right person the first time. The premise is simple: An individual’s past behavior is the best predictor of future job per-formance. It works! I learned this skill set late in
my hiring career and it made a tremendous dif-ference for me. Using BI is documented to be 3-5 times more effective than traditional interviewing techniques. Take some time to learn, practice and master the methodology; you will save yourself a ton of time, money, and antacids. I’ve done a high-level overview of the behavioral interviewing methodology for you.
Again, BI is simple in concept – a candidate’s past behavior is the best predictor of their future behavior. The process to conduct a sound BI takes a lot of preparation and you can’t cut this short. The good news is that once you create the questions and forms for a specific job, you can use them over and over again. Consider it this way: your success rate in hiring can go from 30% to 75%. Won’t that save you a lot of time and money?
Step 1 – Determine your interview for-mat. Will you use a team to interview or do a series of interviews with individuals? One of the premises of BI is to objectify a very subjective pro-cess. I recommend having the same interviewers be consistent for all interviewees as it substantially increases the reliability of the data. I know this is a challenge, but if it’s a high risk/level position you are filling, you simply must invest the time to hire the right candidate the first time.
S t e p 2 – D e t e r m i n e t h e i n t e r v i e w focus. Narrow down the criteria critical for suc-cess in the position. I messed this up a couple of times when I tried to make the job fit the candi-date, not the candidate fit the job. Focus like a laser on the behaviors that define success. Does success in the role require collaboration, taking the initia-
tive, being strategic or managing conflict? Look at who was successful in that role before (or who wasn’t) to select the competencies you need for someone to be successful in that job.
Step 3 – Determine the interview ques-tions. Have open-ended behavioral questions ready for the key criteria and hammer it home. Document the candidates’ answers to 1) the inci-dent that occurred, 2) the action/behavior they displayed, and 3) the outcome. Have each inter-viewer choose a numerical score, use the 1 – 5 Likert scale, to rate the answer. If the criterion you choose is crucial for the position’s success, ask 2 or 3 questions to tease out the behavior for that specific criterion.
Hire right the first time. A recent study showed the average manager spends 18% of their time doing day-to-day management of their employees. How much more time would any leader have to be proactive and strategic if they could cut that 18% in half, by getting the right people hired? How much more could you accomplish? Lots, I bet.
Be patient; the cost of turnover is huge.Learn, then lead.Craig S. Juengling, PCC, is a credentialed execu-
tive coach who spent 22 years running hospitals and health care systems and maintains a private executive coach-ing practice in New Orleans. Visit www.neworleansexecu-tivecoach.com for additional information, or email Craig at [email protected].
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NEWORLEANSCITYBUSINESS.COM24 New Orleans CityBusiness November 19 - December 2, 2021
The million-dollar question on most employers’ minds: “Are you fully vaccinated?”
This seems to have become a question that employers want to pose to their workers, but confusion abounds regarding the legal contours of this deceptively dangerous question. Many employers continue to wonder about the legal implications of asking an employee’s vaccination status. While the EEOC has confirmed that you can lawfully ask employees for their vaccination status without violating federal anti-discrimina-tion laws (provided the question is limited to a yes-or-no response), what about other privacy laws? Specifically, what about the often-misun-derstood HIPAA, seemingly cited by anyone who disagrees with any sort of COVID-19 safety protocols?
The goal of this article is to untangle myths from reality and provide employers with prac-tical – and legally correct – guidance on this subject.
What is HIPAA and to whom does it apply?The Health Insurance Por tabi l i ty and
Accountability Act of 1996 (HIPAA), was enact-ed on Aug. 21, 1996. Sections 261 through 264 require the U.S. secretary of Health and Human Services (HHS) to publicize standards for the electronic exchange, privacy and security of health information. To implement this requirement, the HHS issued what became known as the “Privacy Rule.”
The Privacy Rule addresses the use and dis-closure of individually identifiable health infor-mation, which is referred to as “protected health information” (PHI) by organizations that are subject to the Privacy Rule. Those organizations, which fit into only three categories, are referred to as “covered entities.”
HIPAA has entered popular culture in recent times thanks to misguided individuals who believe the law somehow creates a magic force field exempting them from complying with many pan-
demic-related requirements. Most recently, many employees have incorrectly cited “HIPPA” (as commonly misspelled on the internet) as grounds for withholding their vaccine status from their employers.
The HHS recently issued guidance putting many HIPAA-related pandemic misconceptions to rest. Perhaps the most common misconception about HIPAA is that it applies to all businesses and employers. It does not. As noted above, the Privacy Rule governs only “covered entities.” They are:
• health plans;• health care clearinghouses; and• health care providers that conduct stan-
dard electronic transactions (and, to some extent, certain business associates of covered entities).
If you do not fall into one of these catego-ries, HIPAA does not apply to you at all. And even if you do fall into one of these categories, the Privacy Rule does not apply to employment records, including employment records held by covered entities or business associates “in their capacity as employers.”
What does the HIPAA Privacy Rule protect?The Privacy Rule regulates how and when
covered entities are permitted to use and disclose PHI that covered entities create, receive, main-tain or transmit. The rule does not prohibit an employer or business, including HIPAA covered entities, from asking whether an individual has received a particular vaccine, including COVID-19 vaccines. The rule does regulate, however, how and when a covered entity may use or disclose information about an individual’s vaccination status.
Since most employers are not covered entities under HIPAA, the Privacy Rule does not regulate whether one can ask about an individual’s vacci-nation status or how one can use or disclose that information once obtained.
Isn’t COVID-19 vaccination status confidential information?
Yes. Documentation or other information regarding an individual’s vaccination status is confidential medical information under the Americans with Disabilities Act (ADA) and some state privacy laws. This means that you must treat this information as confidential and store it sepa-rately from the employee’s personnel file.
The federal requirement to treat vaccination status as confidential information does not, how-ever, prevent employers or businesses from asking their employees or their visitors whether they have been vaccinated against COVID-19.
Can we ask whether employees and customers are vaccinated?
Yes, HIPAA does not prevent employers and businesses from asking their employees and vis-itors whether they have been vaccinated against COVID-19 and for proof of such vaccination. Once an employer has the information, it must be treated as confidential, meaning that it is not shared with others except under limited cir-cumstances and, as noted, is not even kept in an employee’s personnel file.
Ultimately, there are plenty of questions an employer should not ask employees or customers. To list them all would require more space than can be devoted to this article, and likely be as redun-dant as my son explaining a “PAW Patrol” episode. The reality is that most of you know when a ques-tion does not pass the smell test. Despite keyboard warriors arguing otherwise, HIPAA does not pre-vent employers and business-es from asking their employ-ees and visitors whether they have been vaccinated against COVID-19 and for proof of such vaccination.
Stephen Scott is an associ-ate in the Portland, Oregon office of Fisher Phillips.
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The legality of asking about an employee’s vaccination status
NEWORLEANSCITYBUSINESS.COMNew Orleans CityBusiness November 19 - December 2, 2021 25
Date Target Buyers/Investors Sellers% Interest Acquired
Price (In US Millions) Target Location
10/01/2021 Louisiana Orthopaedic & SPORTS Rehab Institute, Inc.
IMAC Holdings, Inc. (NasdaqCM:IMAC) F. Allen Johnston, MD 100% 1.6 Baton Rouge, LA
10/01/2021 Medical Practice of F. Allen Johnston, MD
IMAC Holdings, Inc. (NasdaqCM:IMAC) F. Allen Johnston, MD 100% 0.8 Baton Rouge, LA
10/01/2021 Oakbrook Apartments on Nicholson Drive
Oakbrook St., LLC RISE Real Estate 100% 34.7 Baton Rouge, LA
10/11/2021 Daul Insurance Agency, Inc. USI Insurance Services, LLC ND 100% ND Gretna, LA
10/11/2021 Columbia Promenade in Kissimmee, Florida
ND PMAT Real Estate Investments, LLC
100% 12.7 Kissimmee, FL
10/18/2021 1,276,250 Square Foot Industrial Real Estate Portfolio in Wichita, Kansas
Sealy & Company, LLC Murdock Properties, LLC 100% ND Wichita, KS
10/20/2021 Grace Home Health, Inc. Excelin Home Health, LLC, a portfolio company of Corinthian Capital
ND 100% ND Lafayette, LA
CLOSED
October M&A Louisiana merger and acquisition activity in October 2021
Last month’s blockbuster announcement that New Orleans tech startup Lucid Holdings is sell-ing to Swedish software firm Cint Group for $1.1 billion overshadowed the news of other Louisiana startup sales. Also in October, Georgia gas station heavyweight Mountain Express Oil Co. purchased Brothers Food Mart for an undisclosed price.
In the deal, Mountain Express, which owns or controls a national network of over 200 gas stations, purchased most of Brothers Food Mart’s Louisiana locations, their fueling rights and exclu-sive rights to the Brother’s Chicken name. The deal also formed a joint venture between Mountain Express and Brothers Chicken, the chain’s signa-ture fried chicken product.
Palestine-born Imad Faiex “Eddie” Hamdan founded Brothers over 30 years ago, and he has seen the company grow from just a single location on the West Bank into the largest convenience store brand in the New Orleans area, with 50 stores in the region.
Mountain Express also will relocate its retail headquarters to a site on the West Bank. According to that company’s co-CEO Turjo Wadud, the com-pany plans to triple Brothers store count over the next six months, bringing Brothers and its famous fried chicken to new markets in the south, includ-ing North Carolina, Georgia, Tennessee and Texas, as well as Louisiana, by applying the Brothers name to 100 pre-existing gas stations.
The buyers believe the deal could bring as many
as 100 jobs from Georgia to New Orleans before the end of the year. Further, the increased demand for breading and spice manufacturing from great-er fried chicken production will create around 20-25 new food processing jobs in New Orleans, Hamdan estimates.
In the industrial services sector, Baton Rouge-based Bernhard Capital partners agreed to sell its energy service business, Bernhard LLC to DIF Capital Partners, an infrastructure investment firm, for an undisclosed price. Bernhard’s senior management will “retain meaningful ownership” in the company after the deal closes.
Bernhard delivers distributed energy through its unique energy-as-a-service model. In other words, Bernhard enters into long-term, turnkey contracts to upgrade, retrofit and service large existing building energy facilities with the goal of better efficiency and substantial energy savings.
Gijs Voskuyl, partner and head of investments for DIF Infrastructure VI, said, “Bernhard’s approach fits perfectly with DIF’s public-private partnership expertise and ambition to invest in clean energy infrastructure solutions around the globe.”
Founded in 1919, Bernhard is made up of four companies: Bernhard Energy, Bernhard MCC, E.P. Breaux and Bernhard TME. It shifted its focus to an EaaS model in 2014. The company has more than 2,000 employees across the U.S., with more than half of the workforce based in Louisiana.
Berhard has 15 contracts to upgrade, retrofit and service large energy facilities in building com-plexes, mostly for colleges and health care centers. The company built its national headquarters in Metairie in early 2020.
In the tech space, Metairie-based Geocent LLC was acquired by Virginia-based Sev1Tech LLC for an undisclosed price. The two firms specialize in providing IT services to government entities. Geocent specializes in development, security and operations “DevSecOps” and engineering services. Private equity-backed Sev1Tech’s menu of services includes IT modernization, cloud, cybersecurity, engineering, fielding, training and program sup-port services for federal government agencies and major commercial organizations.
According to Geocent’s CEO to Bobby Savoie, the combined companies will enhance the design, development and delivery of innovative solutions to further support federal customers. The acquisi-tion will allow the combined entity to strengthen scalability and solutions for addressing its clients’ emerging demands and the increasing sophistica-tion of government IT needs.
G.F. Gay Le Breton is managing director for Chaffe & Associates Inc., responsible for the merger and acquisition activities of the firm. Ryan Gerton is an associate with the firm.
Investment banking services are provided by Chaffe Securities Inc., member FINRA/SIPC. For more information, visit http://chaffe-associates.com.
Startup transactions top October M&A activity
NEWORLEANSCITYBUSINESS.COM26 New Orleans CityBusiness November 19 - December 2, 2021
Date Target Buyers/Investors Sellers% Interest Acquired
Price (In US Millions) Target Location
10/04/2021 Bernhard, LLC DIF Capital Partners Bernhard Capital Partners Management LP
Majority Stake
ND Baton Rouge, LA
10/20/2021 Texas Citizens Bancorp, Inc. Business First Bancshares, Inc. (NasdaqGS:BFST)
ND 100% 53.05 Pasadena, TX
10/27/2021 Lucid Holdings, LLC Cint Group AB (OM:CINT) Patrick Comer, Guidepost Growth Equity, and others
100% 1,053.57 New Orleans, LA
ANNOUNCED
Source: Capital IQ, corporate and other records, staff research; ND - Not Disclosed; Price - Enterprise Value, where availableIncludes Announced or Closed transactions involving a Louisiana Target, Buyer or Seller
10/21/2021 353,559 Square Feet of Seven-Building Portfolio in Houston, Texas
Sealy & Company, LLC ND 100% ND Houston, TX
10/25/2021 Lizard Skins Inc Marucci Sports, LLC, a subsidiary of Compass Diversified (NYSE:CODI)
ND 100% ND Orem, UT
10/26/2021 Geocent, LLC Sev1Tech, Inc., a portfolio company of DFW Capital Partners and Enlightenment Capital
ND 100% ND Metairie, LA
10/26/2021 Brother's Food Mart Mountain Express Oil Company Imad Faiez "Eddie" Hamdan and Ziad Odeh Mousa
100% ND Gretna, LA
CLOSED
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701 Poydras Street | Suite 4700 | New Orleans, LA 70139-7708 Main: 504.528.3001 | Fax: 504.528.3030 | jyplawfirm.com
The law firm of Johnson, Yacoubian & Paysse is pleased to announce the hiring of attorneys, Jonathan L. Brehm
and Marcus K. Pierre as associates with the firm.
Jonathan L. Brehm Marcus K. Pierre
NEWORLEANSCITYBUSINESS.COMNew Orleans CityBusiness November 19 - December 2, 2021 27
FOCUS Banking/Financial Services
Two banks with branches in the southern U.S. announced that they have completed their merger.
Cadence Bancor porat ion merged into BancorpSouth Bank, and the surviving company, BancorpSouth, was renamed Cadence Bank, the company said in a news release.
BancorpSouth Bank and Cadence Bank will continue operating under their old brands until they finish integrating their systems, which is expected to happen during the final three months of 2022. The company said customers should
not see immediate changes and should continue using their current bank cards, checks and other services.
Cadence becomes the sixth-largest bank head-quartered in its nine-state footprint with $48 billion in assets, and a presence in eight of the top 10 largest metro areas in those states, the company said. It operates in Alabama, Arkansas, Florida, Georgia, Louisiana, Mississippi, Missouri, Tennessee and Texas.
“With the completion of our merger, we’re posi-
tioned to be a stronger banking franchise offering relationship-focused financial services and creat-ing new opportunities to benefit our teammates, customers, communities and shareholders,” the chairman and CEO of Cadence Bank, Dan Rollins, said in the news release.
The merged company has headquarters in Tupelo, Mississippi, and Houston, Texas, with primary operations centers in Tupelo and Birmingham, Alabama.
—The Associated Press
2 banks merge to become Cadence Bank
Regions Bank has launched a practice to focus on investing in low-income communities, further expanding its tax credit investment services.
Veteran banker Steve Ross will lead the New Markets Tax Credit team, Ross most recently served as head of the NMTC platform for Truist Community Capital and has held project management roles in nonprofit and for-profit organizations focused on community revitalization and the creation/preser-vation of affordable housing. Ross is based at Regions’ offices in Washington, D.C.
The Regions team will focus on similar investment initiatives,
including low-income housing tax credits and solar renewables tax credit equities, a news release said.
Established by Congress in December 2000, the New Markets Tax Credit program is designed to attract private-sec-tor capital investments into the nation’s urban and rural low-in-come areas, helping expand access to quality jobs, health care, education and other services in underserved communities. The NMTC program increases the flow of capital to businesses and low-income communities by providing a tax incentive to pri-vate investors.
— CityBusiness staff reportsRoss
Regions Bank launches New Markets Tax Credit practiceP H O T O S C O U R T E S Y R E G I O N S B A N K
The Birmingham, Alabama-based bank has expanded its tax credit investment services with the additional practice.
NEWORLEANSCITYBUSINESS.COM28 New Orleans CityBusiness November 19 - December 2, 2021
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Good News Is Worth Repeating!Promote your coverage with a
REPRINT & PLAQUEA S S E E N I N
THE BUSINESS NEWSPAPER OF METROPOLITAN NEW ORLEANS October 31 - November 13, 2014
Joel Duran is passionate about business and helping people
live the American dream. Whether a small coffee shop or
large energy company, he brings together buyers and sellers
of businesses.
Duran owns Sunbelt Business Brokers of New Orleans.
He bought the 30-year-old company almost three years ago
and has since overseen transactions of more than 300 compa-
nies totaling $25 million in value. He manages six salespeople,
day-to-day activities and an extensive advertising campaign
aimed at 35,000 buyers in Louisiana. Sunbelt works with all
types of businesses and currently has more than 150 listings
with new ones coming online all the time. The company also
brokers commercial real estate.
“The most popular businesses for sale are bars and
restaurants, but we deal with a broad variety including oil-
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“When I bought the business, it was losing money. This year
we are on track to double sales. Many sales environments are
cutthroat, but here we have fantastic people with great atti-
tudes who are extremely knowledgeable and professional.”
Duran helped Leora Madden buy Cork & Bottle in Mid-
City, which she turned into Pearl Wine Co., a liquor store and
wine bar.
“When Leora initially talked to me, she wanted to buy a
different kind of business that included wine,” he said. “But
after we talked about it, she settled on Pearl Wine Co. and
her business has absolutely flourished. It received national
press and was part of a national radio show. It’s deeply satis-
fying and fun to help someone achieve their dream.”
Outside of work, Duran is a guest lecturer for University
of New Orleans. His topics include the importance of busi-
ness plans and managing resources as a business owner. He
also volunteers with the Bridge House/Grace House Fore
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find sponsors.
— Kerry Duff
Joel F. DuranSunbelt Business Brokers of New Orleans Owner
2 0 1 4
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PeopleAROUND TOWN
Samuel Mouledoux Brooks Erdem
McNeal Green Basow
Awards ZERO to THREE has presented one of two Lifetime Achievement Awards to Joy Osofsky, Paul J. Ramsay Endowed Chair of Psychiatry, and Barbara Lemann, professor of Child Welfare at LSU Health New Orleans.
Oracle Lighting has won SEMA’s 2021 Man-ufacturer of the Year award for its contribu-tions to the specialty-equipment industry.
HousingNOLA has announced that execu-tive director Andreanecia Morris has been given a Consumer Champion Award by the Consumer Federation of America.
Ragan Communications has announced that Melissa Samuel, chief legal officer at Bernhard, has been named to its 2021 Ragan’s Top Women in Wellness and Human Resources list.
Second Line Brewing won medals at this year’s Denver International Beer Compe-tition. “Saison Named Desire” won a gold medal in the Saison category of the compe-tition. “Pour With Vigor” won bronze in the Czech Premium Pale Lager category.
André Mouledoux of Mouledoux, Bland, Legrand and Brackett has received the Dis-tinguished Maritime Lawyer Award from the New Orleans Bar Association.
Jay Kaplan, MD, LCMC Health’s medical director for care transformation and prac-ticing emergency physician at University Medical Center, has been awarded the John G. Wiegenstein Leadership Award by the American College of Emergency Physicians.
On Nov. 4, the University of New Orleans honored Jeff Brooks as a distinguished alumnus from its College of Liberal Arts, Education, and Human Development.
General BusinessKristen Erdem has been named develop-ment director for Ronald McDonald House Charities of South Louisiana.
Mark Romig, senior vice president and chief marketing officer for New Orleans & Company, has been granted the Order of Civil Merit by King Felipe VI of Spain. Romig assisted the city in coordinating the king’s visit during the city’s tricentennial in 2018.
Entergy Corporation has announced a transition plan for the retirement of its vice president and treasurer, Steve McNeal, who plans to leave next spring. Barrett Green, vice president, commercial operations for Entergy Wholesale Commodities, will succeed McNeal, with an effective date to be confirmed in early 2022. Green will lead the company’s treasury function, including financing, risk and investments. Green will continue to report to Drew Marsh, executive vice president and chief financial officer.
Health Care Charise Drouant has been named chief operating officer of In & Out Urgent Care locations in the New Orleans area and on the North Shore.
Ochsner Health has appointed Denise Basow, MD, as its first chief digital officer to lead digital health programs, build new digital businesses and expand clinical busi-nesses.
NEWORLEANSCITYBUSINESS.COM32 New Orleans CityBusiness November 19 - December 2, 2021
Lauderdale
AROUND TOWNPeople
LawBarrasso Usdin Kupperman Freeman & Sarver has welcomed Alexandra Gjertson to the firm as an associate.
Thomas Flanagan of Flanagan Partners LLP has been chosen as a Local Litigation Star in the 2022 edition of Benchmark Litigation (U.S.)
Shields Mott has announced that Pe-ter-Raymond Graffeo has joined the firm as an associate practicing in construction law.
Nalley and Dew has announced that Julie
Meaders has joined the firm as an associ-ate.
Phelps Dunbar has expanded its construc-tion industry capabilities with the addition of Larry Borda.
The International Association of Defense Counsel has announced that Diana Cole Surprenant, a partner and leader of the products liability team at Adams and Reese LLP in New Orleans, has accepted an invi-tation to join the IADC, a legal organiza-tion for attorneys who represent corporate and insurance interests.
Real Estate Stirling Properties has promoted Jared Lauderdale to vice president controller.
CityBusiness welcomes submissions for the “People” section. To be considered for inclu-sion in a coming issue, information must be received in the CityBusiness editorial office 10 days prior to the anticipated publication date. Submissions, including photographs, are published subject to space availability. Color photos submitted by email should be a head shot in jpeg format, with measure-ments of 3x3 and 300dpi. Submissions may be emailed to: [email protected].
Gjertson Graffeo Meaders BordaFlanagan
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PUBLISHER’S NOTICE: All real estate advertised herein is subject to the Federal Fair Housing Ace and the Louisiana Open Housing Act, which make it illegal to advertise any preference, limitation, or discrimination because of race, color, religion, sex, handicap, familial status, or national origin, or intention to make any such preference, limitation, or discrimination. We will not knowingly accept any advertising for real estate which is in violation of the law. For more information, call the Louisiana Attorney General’s Office at 1-800-273-5718.
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COMMERCIAL PROPERTY GUIDE
Rates listed in the above advertisements are based on a credit score of 740, and a loan of $200,000, with a loan to value of 80% for conventional financing and 96.5% for FHA financing. Jumbo loans are based on credit score
of 780 and loan amount of $500,000, with a loan to value of 70%. The APR may increase after consummation and may vary. CityBusiness does not guarantee the accuracy of the information appearing above. All information
above is subject to change without notice. The above advertisers all pay a fee to be listed in this table and provide sample rates based on the given scenario described here.
All real estate advertised herein is subject to the Federal Fair Housing Ace and the Louisiana Open Housing Act, which make it illegal to advertise any preference, limitation, or discrimination because of race, color,
religion, sex, handicap, familial status, or national origin, or intention to make any such preference, limitation, or discrimination. We will not knowingly accept any advertising for real estate which is in violation of the law. For
more information, call the Louisiana Attorney General’s Office at 1-800-273-5718.
TO PLACE YOUR AD IN THECOMMERCIAL PROPERTY GUIDE
Call MONIQUE SULLIVAN • 504-293-9731 • [email protected]
Attention All Loan & Mortgage CompaniesIf your company is interested in participating or for answers to any questions you may have, please contact:
MONIQUE SULLIVAN 504-293-9731 • [email protected]
LendersPhone Numbers
Fixed Conform 30 Year 15-Year
3-5-7 YearARM
Comments & Other ProgramsContact Person
FHA
MILLER HOME MORTGAGE, LLCRoss L. Miller – NMLS&R #70833(888) 277-0306 (504) 455-7002FAX (504) 455-3722
• 15 and 15 year rate are location driven and N/A for cash out requirements.• Miller Home Mortgage, LLC., is pleased to offer the Homestyle Renovation Mortgage which is a 1-time closing purchase or refinance & renovation loan. We have 20 years of experience lending on residential property. Licensed in LA and Texas.
NMLS #69469
2.375%pts. 0LIP 30APR 3.985%
N/A2.125%pts. 0LIP 30APR 2.387%
2.999%pts. 0LIP 30APR 3.306%
HANCOCK WHITNEYYvonne Marinovic(800) 813-7346FAX (504) 846-2567
• 30 year and 15 year conventional rates include 1% origination.• Government rate DOES NOT include an origination.• FHA APR does include annual MIP.
NMLS# 454781
2.625%pts. 0LIP 30APR 3.727%
N/A2.125%pts. .125LIP 30APR 2.457%
2.875%pts. .125LIP 30APR 2.97%
425 Notre Dame St, #603 ・$2,180,000 2 Bedrooms/2.5 Baths
425 Notre Dame St, #402・$1,100,000 2 Bedrooms/2 Baths
One River Place, PH14A・$3,495,000 2 Bedrooms/2.5 Baths
Point your phone camera here for video tours:
425 Notre Dame St, #401 ・$1,995,000 3 Bedrooms/3.5 Baths
1061 Camp St, #F・$449,000 2 Bedrooms/1.5 Baths
FOR SALE: 27 Audubon Blvd. $1,390,000
FOR LEASE: 1111 S. Peters St., #411 $1,450
RECENTLY SOLD: 2 Canal St., #1904·2 Canal St., #2003·731 St. Charles Ave., #312·425 Notre Dame St., #201·731 St. Charles Ave, #403
586 Walnut St· 2621 Danbury Dr·1127 Dauphine St, #302·425 Notre Dame St., #802·6768 Pontchartrain Blvd. 700 Commerce St., #202·920 Poeyfarre St., #309·700 Magazine St., #407·1516 Robert St.·7 Everett Place
700 Magazine St., #412·700 Magazine St., #413·600 Port of New Orleans, 3E·715 Governor Nicholls St.·330 Julia St., #316
333 Julia St, #219・$470,000 2 Bedrooms/2 Baths
1107 S. Peters St., #111・$259,000 1 Bedroom/1 Bath
6824 Orleans Ave.・$899,000 4 Bedrooms/3.5 Baths
PENDING
747 Magazine St, #2・$965,000 2 Bedrooms/2.5 Baths
Latter & Blum, Inc. ・200 Broadway Street, #142・New Orleans, LA 70118・Office 504-866-2785
Glennda Bach, Realtor #1 Agent at Latter & Blum 504-583-2792 | [email protected] www.glennda-bach.latterblum.com Over $44 Million Sold in 2020 Diamond Award Winner | Top Producer Best Residential Real Estate Agent City Business 2021
Growingthe Westbank of Jefferson Parish
Commercial and Industrial Development and Leasing
Residential and
Recreational Development
Retail and Office Development and Leasing
Warehouse and Service Center Development and Leasing
Joint Venture DevelopmentMarrero Land AND IMPROVEMENT ASSOCIATION, LIMITED
Marrero Land & Improvement Association, Ltd., popularly known as “Marrero Land,” with roots reaching back to the early 1900s, has been a major player in the great story of the Westbank of Jefferson Parish, neighbor to and across the Mississippi River from the City of New Orleans.
Throughout its history, Marrero Land has been involved in the full spectrum of land ownership, management, leasing, and development.
marreroland.com
Segnette Estates, an upscale residential community located in historic Westwego, is close to Bayou Segnette State Park, the Tournament Players Club of Louisiana golf course, and many other outdoor and cultural activities. It is truly one of the finer residential communities in the Greater Metropolitan New Orleans Area.
Developer, Marrero Land & Improvement Association, Ltd, has roots as far back as the turn of the last century in the Westbank of Jefferson Parish. This heritage and experience help Marrero Land build communities with the people and area in mind. With Segnette Estates, Marrero Land’s main focus is giving homeowners the quality of life they desire while building the property value they deserve.
Lots in Segnette Estates start under $55,000. While the community has many homes already constructed, there are plenty of great home sites still available.
Whether using your own builder or theirs certain guidelines need to be met prior to construction. This process is quick and helps preserve and enhance the quality of the community. www.segnetteestates.com
PRIME RETAIL - AVAILABLE FOR LEASEFormer Toys “R” Us Building4800 Lapalco Boulevard, Marrero, LAProperty SummaryFree-standing BuildingFor LeaseBuilding Size: 45,176 SFLand/Site Size: 194,940 SFParking Spaces: 300Located in the heart of Marrero, LA situated as an outparcel to Walmart Supercenter Former Toys “R” Us stand-alone building, this 45,000+ SF space situated in the heart of Marrero’s retail corridor as an out-parcel to the Super Walmart and adjacent to The Home Depot and Office Depot. The property boasts 300 (+,-) parking spaces, great visibility, as well as convenient ingress and egress. The neighboring intersection of Lapalco and Barataria Boulevard is coined as the entrance to “Sportsman’s Paradise” as it is the direct route to fishing and hunting activities.Traffic Counts• On Lapalco Boulevard, east of Barataria
Boulevard: 38,800• On Barataria Boulevard, north of Lapalco
Boulevard: 35,920
OFFICE SUITES - AVAILABLE FOR LEASE
Vincent Vastola, Director of R/EPhone 504-341-1635 • [email protected]
Marrero Land Office Plaza5201 Westbank Expressway, Marrero, Louisiana
ParticularsProfessional office buildingOffice suites available from 500 SF to 3,800 SFFull service – janitorial, utilitiesSecurity alarm system and closed circuit cameras Fire/smoke alarm system7 day 24 hour access via keyless entry/monitored Smoke freeLadies and Men’s restroom facilities on each floor. Handicap (ADA) accessible Owner occupied (4th floor) and owner managed. On site, parkingParking Spaces: 210AccessabilityConveniently located -15 minutes away from downtown New Orleans 2 blocks from West Jefferson; Medical Centre. Easy access to elevated Westbank Expressway
Joe Gardner, CCIMOffice: 504-523-4481 Direct: [email protected]
Carly PlotkinOffice: 504-523-4481 Direct: [email protected]
Former Toys“R”Us Building4800 Lapalco Boulevard, Marrero, LA
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BUILDING45,176 S.F.
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Retail Aerial
stirlingproperties.com Member ofThe foregoing is solely for information purposes and is subject to change without notice. Stirling Properties makes no representations or warranties regarding the properties or information herein including but notlimited to any and all images pertaining to these properties. It is the obligation of each purchaser/lessee to investigate the condition and attributes of the properties and to verify the accuracy of the foregoinginformation to the extent such purchaser/lessee deems necessary. Also subject to errors, omissions, changes in terms and conditions, prior sale, lease or withdrawal, without notice. 5/17
Joe Gardner, CCIMOffice: 504-523-4481 Direct: [email protected]
Carly PlotkinOffice: 504-523-4481 Direct: [email protected]
Former Toys“R”Us Building4800 Lapalco Boulevard, Marrero, LA
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R=1996.86'
317.91
133.00
197.00
46
.83
362.84
18
3.9
4
96.47
460.01
102.60
PORTION OF LOTS 29, 30, & 31BELL PLANTATIONJEFFERSON PARISH, LOUISIANA
0.42'
3.53'
10' WATER SERVITUDE
15' SERVITUDE
10' LP&L SERVITUDE
25' X 34.67' LP&L SERVITUDE
CO
NC
RETE
CO
NC
RETE
CONCRETE
CONCRETE
10' PRIVATE SERVITUDE
LAPALCOBOULEVARD
JULY 5, 2006
T. LOWRIE
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1
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SHEET NO
DATE
DRAWN BY
REVISIONS
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FIRE LANE STRIPING-RED
HANDICAP ACCESS STRIPING-BLUE
PARKING STALL STRIPING-WHITE
STOP
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R20'
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EXISTING
TOWER
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LEGEND OF SYMBOLS
LEGEND OF SYMBOLS
LEASE SITE PLANSCALE 1" = 60'-0"
BUILDING45,176 S.F.
STORM DRAIN LINES & INLETS
10' WATER SERVITUDE
WATER
POWER
GAS
GA
S LIN
E
Retail Aerial
stirlingproperties.com Member ofThe foregoing is solely for information purposes and is subject to change without notice. Stirling Properties makes no representations or warranties regarding the properties or information herein including but notlimited to any and all images pertaining to these properties. It is the obligation of each purchaser/lessee to investigate the condition and attributes of the properties and to verify the accuracy of the foregoinginformation to the extent such purchaser/lessee deems necessary. Also subject to errors, omissions, changes in terms and conditions, prior sale, lease or withdrawal, without notice. 5/17
Private patios with large fenced yard
OR SALE
FOR SALE
1001 JULIA STREET, UNIT 2BSoaring 13 foot ceilings and amazing light greet you in this very well designed 1 bed / 1 bath residence. 970 Square Feet of living space. Huge windows, wood floors
throughout, marble tops, top of the line appliances with gas cooktop, 24 hourlobby attendant, amazing amenities with state of the art gym, pool, deck and
party rooms. Garage parking on site. Short walk to all downtown attractions including Superdome and Arena.
$615,000
SHAUN TALBOT(504) 975-9763
(504) 525-9763www.talbot-realty.com
CHIC PIED A TERRE IN PREMIER BUILDING - THE STANDARD!
ONLINE ONLY AUCTIONVisit proxibid.com/servcorp for more info
THURSDAY | DECEMBER 2, 2021 Online Only Timed Auction | No Onsite Bidding
First lot starts closing at 9AM City of New Orleans Impounded Vehicles
Items located at 10200 Almonaster Ave in New Orleans, LA 70126 Preview is 9A-3P on Wed 12/1. Various Vehicles: Dodge, Acura, Honda, Hyundai, Mitsubishi, Volkswagen, Chevy, Nissan, Buick, Pontiac, Mazda, Chrysler, Mercury, Fiat, Infiniti, GMC, Toyota, Cadillac & Others! Must be 18 or older. Valid ID required to enter & view vehicles. Full Payment Due before 2PM on 12/3. All vehicles sold without keys, running condition unknown. Some vehicles may be branded salvage, reconstructed, water damaged, etc.
15% buyer’s premium & $25 notary fee applies to all purchases. Please visit Proxibid.com/servcorp for terms, removal, and more details. Any Covid-19 protocols in place must be followed while on auction premises. Some items may be subject to reserve. All items are
sold “AS IS” without warranty & with all faults/defects. ServCorp Int’l, Inc. • 101 Magnolia St. • Slidell, LA 70460
(800) 340-2185 • www.servcorpii.com • B. Mutz, LA 1467-21
PRESTIGE PREVIEW
Advertise YourResidential or Commercial
Property in
MONIQUE SULLIVAN293-9731
COCO EVANS JUDD293-9288
Advertising space deadline: November 19, 2021
MONIQUE SULLIVAN293-9731 • [email protected]
COCO EVANS JUDD293-9288 • [email protected]
Celebrating 41 years in printReal Estate Issue
Friday December 3, 2021Warehouse Space Real Estate/Law
Fabulous renovation of beautiful Metairie Club Gardens home on oversized lot. Large pool and patio with pool house. Wood floors, 10 foot ceilings, crown molding. Spacious, light-filled rooms- stunning kitchen
with breakfast area, family room with fireplace flanked by bookshelves. 5 bedrooms 3 baths 2 half baths. Huge primary bedroom has a bath with spa tub and separate shower, large walk-in closet. Wonderful closet
space throughout and plenty of parking.
332 FRIEDRICHS • $1,825,000
Cell 236-6834 | Office 866-2785 [email protected]
lettyrosenfeld.latter-blum.com
Letty Rosenfeld, GRI, CRS
Specializing in Uptown, Lakefront and Old Metairie Properties
Beautifully renovated home with gorgeous pool and covered patio. 10 foot ceilings, beautiful new hardwood floors. Extra spacious family room with 2 sets of French doors to the pool, spa, and patio.
Fabulous kitchen with large island, separate full sized stainless refrigerator and freezer. 5 burner stove with 2 ovens and pot-filler, and breakfast area overlooking the patio and pool. Light and airy, extra large downstairs primary suite. 3 bedrooms, 2 baths down, 2 bedrooms with new wood floors and bath up.
919 CRYSTAL STREET • $1,099,000
PENDING
Fabulous Uptown condo with stunning River views. Built in 2017, condo has pine floors, 11 foot ceilings, crown molding, 2 sets of French doors to a long private balcony, great kitchen with quartzite counters, upscale stainless appliances and large island with eating bar, light-filled primary bedroom with exciting bath with slipper
tub and separate glass shower, and laundry room. 2 bedrooms, 2.5 baths, 2 garage parking spaces.
111 AUDUBON ST #301 • $849,000
NEW LISTING
SKYE & SUSAN PRICESPECIALIZING IN:
M E TA I R I E C L U BG A R D E N SU P T OW N
O L D M E TA I R I EG A R D E N D I S T R I C T
L A K E V I E W
[email protected](504) 891-6400
SUSAN HURTH PRICEGRI, ABR, CRS
(504) 908-3317Platinum Award Winners
Licensed in Louisiana
SKYE PRICERealtor
(504) 388-7593
Two PRICES for the price of one
SKYE & SUSAN PRICESPECIALIZING IN:
M E TA I R I E C L U BG A R D E N SU P T OW N
O L D M E TA I R I E G AR D E N D I S T R I C T
L A K E V I E W
[email protected](504) 891-6400 SUSAN HURTH PRICE
GRI, ABR, CRS2014 President’s Club
(504) 908-3317Platinum Award Winners
Licensed in Louisiana
SKYE PRICERealtor
(504) 388-7593
Two PRICES for the price of one
Kelli Wright, ABR
Licensed by the Louisiana Real Estate CommissionCell 504-613-7902 • Office 504-866-2785
www.KelliWright.latter-blum.com
Since 1916Since 1916
Contemporary renovation of historic 19th Century corner store in fabulous West Riverside. Quality renovation + superior materials = low maintenance STYLE! 3 bdr/4 full baths w/ 439 sq. ft. guest suite. Airy, open floor plan is radiant w/ stunning custom windows, oak floors and soaring 14 ft ceilings. The dream kitchen with huge island, high end appliances will be the heart of your home. Spacious master is a private oasis w/ dressing room/office, nursery, or gym. Gated parking wired for charging station.
5901 LAUREL STREET • $1,295,000
3624 N RAMPART STREET • $575,000
Lovely, bright 3BR/2BA home on corner lot w/large fenced yard in an area of many renovated & updated homes. Two bedrooms down & one up, some 12 ceilings. Primary bath recently updated. Kitchen-dining area has lots of cabinet space and an old original fireplace remains in the kitchen. Lovely old wooden floors and lots of windows, relatively new kitchen appliances & possible off-street parking. This home is surrounded by charming local amenities in and
around St. Claude Avenue. Definitely a must see!
Elizabeth ReissLatter and Blum Realtors 2727 Prytania Street (The Rink)New Orleans, LA 70130
O: 504-891-6400 | C: [email protected]
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