Volume 16 Issue 22 May 29, 2010 www.columbiabusinesstimes.com By Andrew Denney It has been about a year since Columbia resident Mike Trom spoke with his former friend and neighbor Nathan Reuter, founder of Vertical Group LLC, formerly located at 3210 Bluff Creek Drive. The encounter between the two men at a hearing at the federal bankruptcy court in Kansas City was brief; it wasn’t much of a conversation really. It was more of an exchange of pleasantries, Trom said, “and that’s about it.” Trom said he and Reuter were friends for seven years before Reuter approached him in 2004 about investing through Vertical Group. They hunted together, attended neighborhood dinner clubs together, their children played together. Trom said he once helped Reuter build his garage. When they were still neighbors, Reuter’s son was returning to Woodbury Court in southwest Columbia from the Mayo Clinic after a heart operation, and the Troms decorated the neighborhood to welcome him home. In the years since, Trom and Reuter have been on opposite sides of a long court battle that involved several of Vertical Group’s officers who have been sentenced to probation or prison for their roles in an investment scam that brought down the company. (continued on Page 19) 10 12 15 Adult Entertainment New legislation could strip the adult entertainment industry of some revenue sources. Business Profile Joe Priesmeyer succeeds Joe Scheppers as president of local beverage distributor N.H. Scheppers. Buying Broadband Downtown businesses struggle to afford upgrades to high-speed Internet. 1 $ 50 photo by jennifer kettler Vertical Group scam destroys friendships IBM Vice President Tim Shaughnessy shakes hands with former Mayor Darwin Hindman on stage with Gov. Jay Nixon during IBM's announcement May 17. How to lure a technology titan By Jacob Barker Dave Griggs’ breakfast group, “the cronies,” usually meets on Tuesday. But the group had a special dinner in Boonville on Friday, May 14, and the chairman of Regional Economic Development Inc. was eating next to City Manager Bill Watkins, another member of the group. Just past 7 p.m., both of their cell phones rang with the same message: The community had reached an agreement with IBM. For the past several weeks, a team of attorneys had been frantically working to finalize leasing, financing and construction agreements. The stacks of paper represent the culmination of the community’s unprecedented effort to lure one of the world’s most revered companies to Columbia. In less than four months, a deal was struck that normally would have taken much longer. After learning of IBM’s interest in late January, a fullcourt press — dubbed Project Tiger — by the city; REDI; Columbia Area Jobs Foundation; the state; and local business leaders, banks and attorneys ensued to meet IBM’s ferocious schedule. The result is an agreement that drew from the salesmanship, research and negotiating prowess of countless individuals. “It’s a fast-track project; they want to be in operation by the fourth quarter of this year,” said Economic Development Director Mike Brooks. “There’s only one way to get there, and that’s everybody working together.” (continued on Page 16) SPECIAL SECTION Health Care See Page 20 Permit #353 Columbia, MO PAID PRST STD U.S. Postage 2 May 29, 2010 Columbia Business Times | ColumbiaBusinessTimes.com 5 30 People You Should Know Vicki Powell, executive senior sales director of Mary Kay cosmetics New Business Update PURE Photography Gallery and Studio promotes photography as art. Access Arts................................................................ 4 Agents National Title Insurance.................................. 4 All Star Automotive Inc............................................... 4 Alliance Bernstein....................................................... 4 AmerenUE................................................................ 19 America’s Best Value Inn.......................................... 27 Bambino’s................................................................... 4 Bank of America......................................................... 4 Big Brothers Big Sisters............................................. 4 The Blue Note........................................................... 13 BoCoMo Bay............................................................ 10 Boone County National Bank............................... 3, 16 Broadway Brewery................................................... 15 The Callaway Bank..................................................... 4 Central Missouri Food Bank....................................... 4 Central Trust & Investment Co................................... 4 CenturyLink.............................................................. 15 CenturyTel................................................................ 15 Club Vogue......................................................... 10, 11 Columbia Area Jobs Foundation.................... 1, 16, 17 Columbia College....................................................... 4 Columbia Integrated Technologies............................. 4 Comfort Suites......................................................... 27 Commerce Bank................................................... 4, 27 Courtyard by Marriot.................................................. 3 Ellis Fischel Cancer Center...................................... 22 Family Health Center.................................................. 4 Hilton Garden Inn....................................................... 7 Hy-Vee........................................................................ 4 IBM............................................. 1, 8, 9, 16, 17, 18, 23 KBIA........................................................................ 27 KOMU 8.................................................................... 27 KRFU........................................................................ 27 Landmark Bank.......................................................... 4 Landmark Hospital..................................................... 7 LeMone Trust...................................................... 17, 18 Liberty Fruits............................................................. 27 Little Dixie Construction..................................... 17, 18 Mary Kay Cosmetics.............................................. 2, 5 Mediacom................................................................. 15 Missouri Employers Mutual...................................... 27 Missouri Wines......................................................... 27 Mo-X........................................................................ 17 Naught-Naught Insurance Agency............................ 7 Newsy.com............................................................... 15 N.H. Scheppers.............................................. 1, 12, 13 Passions............................................................. 10, 11 PURE Photography Gallery and Studio............... 2, 30 Quaker Oats............................................................. 18 Ragtag Cinema......................................................... 13 Regional Economic Development Inc...... 1, 16, 17, 18 RE/MAX Boone Realty............................................... 3 Salvation Army........................................................... 4 Sandler Systems Inc. .............................................. 26 Schnucks.................................................................. 27 The Shelter................................................................. 4 ShowMe Better Courts............................................... 3 Simon Associates..................................................... 18 Sleep Diagnostic Services........................................ 20 Socket.................................................................. 4, 15 State Farm................................................................ 17 Stephens College....................................................... 4 Super 8..................................................................... 27 Sycamore................................................................. 27 Tech 2....................................................................... 15 Tellers....................................................................... 15 Tin Mill Brewery........................................................ 27 Tracy Arey Real Estate............................................... 4 Trail King................................................................... 31 True/False Film Festival............................................ 13 True Media Services................................................. 15 University Club of MU.............................................. 27 University of Missouri Health Care........................... 22 Vertical Group LLC......................................... 1, 19, 31 Visionworks Marketing & Communications.............. 29 Walmart...................................................................... 7 Wine Cellar & Bistro.................................................. 27 Yogoluv....................................................................... 3 Boone County National Bank .................................. 32 City of Columbia Water & Light................................ 25 Columbia Integrated Technologies........................... 18 Columbia Orthopedic Group.................................... 23 Columbia Regional Airport....................................... 26 Commerce Bank....................................................... 14 Delta Systems.......................................................... 21 GFI Digital................................................................... 7 Hawthorn Bank ......................................................... 3 Integrity Home Health.............................................. 20 Landmark Bank ………............................................ . 2 Missouri Business Women’s Conference................. 22 Missouri Planning Council for Developmental Disabilities…............................................................. 28 Naught-Naught Insurance Agency........................... 20 Rost Landscape....................................................... 19 Sandler Training........................................................ 29 Shelter Insurance; Mike Messer & Mike Hatchett.... 15 Socket...................................................................... 24 Spillman Contracting................................................ 11 The Frame Shop...................................................... 10 The Insurance Group.................................................. 4 Triangle Blueprints.................................................... 26 Trulaske College of Business................................... 26 Vault.......................................................................... 13 Whiskey Wild.............................................................. 6 Wilkerson & Reynolds Wealth Management............ 12 Williams & Hussey Eye Care.................................... 27 Willie Smith – Magic Service.................................... 13 3 1 Comp Plan Task Force Executive Committee Meeting 9 a.m. in the Daniel Boone Building New Edition, Planning Conference Room, 4th Floor, 701 E. Broadway Officers of the Planning and Zoning Commission and the Comprehensive Plan Task Force meet to discuss progress on the plan and to keep communication open regarding the Comp Plan document. 2 Missouri Women’s Business Conference “In Good Company” 8 a.m. at the Courtyard by Mariott, 3301 LeMone Industrial Blvd. An opportunity to network, gain information and promote products and services with other Missouri women business owners. The event costs $125. Register by contacting Virginia Wilson at [email protected] or 882-9952. 3 Chamber of Commerce Governmental Affairs Committee Meeting 4 p.m. in the Thomas G. Walton Building, 300 S. Providence Road Alice Leeper of RE/MAX Boone Reality and Bob Roper formerly of Boone County National Bank co-chair this committee focused on providing leadership, information and advocacy for the Columbia business community. For more information, contact Lexi Klaus at 817-9114 8 Special Business District Board Meeting 4 p.m. at 11 S. 10th St. Regular monthly meeting of the board of the Columbia Special Business District. 9 Exploring Entrepreneurship Start-Up Class 5:30 p.m., W. 1004 Lafferre Hall, University of Missouri College of Engineering, Stewart Road and Sixth Street The sixth in a series of 12 information sessions for those interested in starting a business and wanting answers and information about general business issues. Cost of the session is $20, and pre-registration is required. To register, contact Virginia Wilson at [email protected] Corrections In the May 15 CBT on Page 15, we incorrectly attributed statements from ShowMe Better Courts Executive Director James Harris to U.S. Rep. Blaine Luetkemeyer. Luetkemeyer was not quoted in the story, and all statements attributed to him should have been attributed to Harris. On Page 22 and 23 of that issue, we incorrectly identified Ben Huang as a coowner of Yogoluv. The price of yogurt at the store is 40 cents per ounce, not 30 cents. (573) 499-1830 | (573) 499-1831 fax [email protected] Advertising information: [email protected] Chris Harrison | General Manager | Ext.1010 David Reed | Group Editor | Ext.1013 Alisha Moreland | Art Director Kristin Branscom | Graphic Designer Betsy Bell | Creative Marketing Director Jennifer Kettler | Photo Editor | 573-529-1789 Cindy Sheridan | Operations Manager Annie Jarrett | Marketing Representative Joe Schmitter | Marketing Representative Ashley Meyer | Creative Services Writers in this issue: Jacob Barker, Andrew Denney, Jeremy Essig, Jennifer Kettler, Tim Kridel, Sean Spence, Katrina Tauchen Columnists in this issue: Cathy Atkins, Chris Belcher, Skip Elkin, Al Germond, Ray McCarty, Lili Vianello The Columbia Business Times is published every other Saturday by The Business Times Co. 2001 Corporate Place, Suite 100, Columbia, Mo 65202. Copyright The Business Times Co., 2008. All rights reserved. Reproduction or use of any editorial or graphic content without the express written permission of the publisher is prohibited. Third-class postage paid at Columbia, Mo. The annual subscription rate is $39.95 for 26 issues. OUR MISSION STATEMENT: The Columbia Business Times strives to be Columbia’s leading source for timely and comprehensive news coverage of the local business community. This publication is dedicated to being the most relevant and useful vehicle for the exchange of information and ideas among Columbia’s business professionals. May 29, 2010 Columbia Business Times | ColumbiaBusinessTimes.com cbt BUSINESS CALENDAR — June 4 May 29, 2010 Columbia Business Times | ColumbiaBusinessTimes.com Hirings Murphy Beusan Central Trust & Investment Co. named Reed Murphy the new chief investment officer of the firm. Murphy joins Central Trust after working for Bank of America, Alliance Bernstein and Commerce Bank. Joe DiNatale joined the Tracy Arey Real Estate team as a licensed Missouri Realtor. A graduate of Michigan State who earned his master’s degree in business administration in 2006, DiNatale is an 11-year active duty Air Force veteran who continues to serve in the Missouri National Guard. Commerce Bank announced that Gianina Beusan has been named retail banking officer and branch manager for the company’s Fifth and Broadway banking center. Beusan has more than 11 years of banking experience and a bachelor’s degree in business administration. University of Missouri Provost Brian Foster announced Monday the appointment of Joan Gabel as the new dean of the Robert J. Trulaske Sr. College of Business. Previously, Gabel served as a Desantis professor and chair of the Department of Risk Management/Insurance, Real Estate and Business Law at the Florida State University College of Business. Josh Stephenson joined The Callaway Bank as vice president and commercial lender. Stephenson will be at the Chapel Hill and Forum Boulevard location. Bank of America Home Loans hired David Lynn as a mortgage loan officer for the Columbia, Moberly, Mexico, Boonville and Jefferson City areas. Lynn has five years of home finance industry experience. Appointments Gabel Stephenson Stephens College announced that Pamela Shackelford, chair of the business and marketing department at Stephens College, has been elected to a one-year term on the board of directors for the International Assembly for Collegiate Business Education. Shackelford was elected to the board of directors during the IACBE’s 2010 Annual Conference, held in Newport, R.I., on March 24 to 26. Agents National Title Insurance Company announced the addition of Robert J. Buchheit and Peter G. Klein to its board of directors. Buchheit is the owner of All Star Automotive Inc. Klein is an associate professor at the University of Missouri Division of Applied Sciences and associate director of the Contracting and Organizations Research Institute. Brent Scheer, CFO of Agents National Title Insurance Company, accepted the appointment as chairman of the American Land Title Association’s Title Insurance Accounting Committee. Promotions Lindsey Dunn was promoted to retail banking officer and branch manager for the Commerce Bank branch located inside the West Broadway Hy-Vee. Dunn is a graduate of the University of Missouri with a degree in business administration. Acquisitions Dunn Columbia Integrated Technologies announced April 30 that Monte Grubbs, who serves as the company’s chief operating officer, purchased CIT from Jeff Muscato. Grubbs will now serve as president and sole owner of the company. Awards Columbia College announced Jeffry Hoyt and Jamaree Whitaker were each awarded the Landmark Bank Scholarship, worth $1,500, for the 2010-2011 academic year. The Landmark Bank Scholarship is awarded to new or returning day or evening business majors who have shown superior academic achievement. Ramona Bade, Mary Beth Gillum and Regina Williams were awarded the Carol Frobish Scholarship, worth $6,000 each, for the 2010-2011 academic year. The Carol Frobish Scholarship is awarded to returning female business majors with a minimum GPA of 3.0. Ben Francisco won the Alumni Award from the University of Missouri Sinclair School of Nursing for his work training hundreds of health care providers to teach Missouri’s kids how to manage their asthma. His work led to the creation of Asthma Ready Communities™, a statewide program to improve asthma care. Elizabeth Geden won the Honorary Alumna Award from the University of Missouri Sinclair School of Nursing. A former associate dean for research and director of graduate studies, Geden, retired since 2000, continues to work several days a week as a family nurse practitioner for Columbia’s Family Health Center. Community Service Central Missouri Food Bank, The Shelter, Access Arts, Salvation Army and Big Brothers Big Sisters were some of the 56 local nonprofit organizations that received more than $3,000 from Columbia-based telecommunications provider Socket as part of its Honest to Goodness program. The company’s local home phone customers contributed to the fund and donated 5 percent of their monthly bill to the charities of their choice. Sale Columbia restaurateur Brian Ash is straining knowledge he gained from Bambino's into a new venture. Ash, 44, said he sold the Italian restaurant to Jeff Weaver, current owner of Quizno's in the Broadway Shops, and will turn his focus to selling a food separator he invented called The Drain Strainer. According to its website, the strainer is a drawer that can be attached to catch food. It can then be removed so solids can be thrown out or compacted, which allows liquids to flow more easily through pipes. Ash said he came up with the idea 10 years ago while working at Bambino's when he said he became tired of noodles clogging grease traps on the pasta sink. Noticing the restaurant's dishwasher was equipped with a screen that allowed water to flow through while catching solids, Ash asked an associate to create a similar item for his sink. Once he began the process of selling Bambino's to Weaver in late April, Ash started looking for a new venture he thought he could run by himself, and an Internet-based business seemed appropriate. Ash, who will continue running Bambino's with Weaver until June 1, said he is just beginning to turn his full attention toward the marketing and selling of the strainer. The Drain Strainer, manufactured by a company Ash said he found on the Internet, comes in three models depending on sink size and ranges in price from about $300 to about $450. v We want to hear from you. Please e-mail your submissions to [email protected] Executive Senior Sales Director, Mary Kay Cosmetics AGE: 37 JOB DESCRIPTION: Executive management/sales YEARS LIVED IN COLUMBIA: Eight years ORIGINAL HOMETOWN: Jefferson City EDUCATION: Bachelor of Science in English COMMUNITY INVOLVEMENT: Other than Mary Kay, my No. 1 priority is my children. When I’m not working my personal business or with my unit, I’m volunteering at my children’s school, going on field trips, helping with my daughter’s basketball team, lunch bunches and many other activities. I think it’s important not to forget about our community. I strive to do a set amount of charitable contributions every year. PROFESSIONAL BACKGROUND: Mary Kay Corp., 2003 to 2010 A COLUMBIA BUSINESSPERSON I ADMIRE AND WHY: Dan McNerney because of his success story and the way he motivates others. He reminds me of Mary Kay Ash and her ethics. WHY I’M PASSIONATE ABOUT MY JOB: I love watching women grow in all areas: faith, family and career. Mary Kay is a safe place for women to realize their God-given talents. The company helps women feel better about themselves and grow as individuals and replaces their 40-hour/ week jobs for a more fulfilling career in which they are recognized and compensated for their efforts. IF I WEREN’T DOING THIS FOR A LIVING, I WOULD: I would be a motivational speaker who encourages others and changes lives. BIGGEST CAREER OBSTACLE I’VE OVERCOME AND HOW: Leading people and learning to serve. Being an effective leader is one of the most rewarding things I’ve done. A FAVORITE RECENT PROJECT: I’m currently working on a project that is extremely important to me. Having recently lost a close friend to spousal abuse, I have set out on a campaign to do an extra 100 facials in May/June, and I’m donating 20 percent of the total sales to the local women’s shelter. WHAT PEOPLE SHOULD KNOW ABOUT THIS PROFESSION: Mary Kay is the only company I know of where you can promote yourself and are in complete control of financial freedom. It’s literally $100 to start your own multibillion-dollar business and make 50 percent profit your first day. Mary Kay is not a public company run by a board of directors but instead is privately owned and is totally debt-free. WHAT I DO FOR FUN: Spend time with my family, travel and read about leadership/entrepreneurs. photo by jennifer kettler FAMILY: My amazing husband, Kirk, and three sweet children: Myles, 11; Lexi, 10; and Chloe, 7. FAVORITE PLACE IN COLUMBIA: I don’t know if I can single out one particular place. Columbia is such a great town with all the parks, restaurants and shops. I enjoy it all! ACCOMPLISHMENT I’M MOST PROUD OF: Earning our first pink Cadillac. I remember it like it was yesterday, even though it was June of 2005. My family was so excited! MOST PEOPLE DON’T KNOW THAT I: Played the viola for years. v May 29, 2010 Columbia Business Times | ColumbiaBusinessTimes.com Vicki Powell 5 People You Should Know 6 May 29, 2010 Columbia Business Times | ColumbiaBusinessTimes.com ECONOMIC INDEX | COLUMBIA'S ECONOMIC INDICATORS CITY RECEIPTS Hotel Tax Receipts March 2010: $158,441 March 2009: $153,678 Change (#): $4,763 Change (%): 3.1% *some hotels have not reported for March 2010 Year-to-Date 2010: $368,399 Year-to-Date 2009: $375,259 Change (#): -$6,860 Change (%): 1.8% 1% Sales Tax Receipts February 2010: $1,394,096 February 2009: $1,478,515 Change (#): -$84,419 Change (%): -5.7% Fiscal Year-to-Date 2010: $7,988,065 Fiscal Year-to-Date 2009: $8,077,057 Change (#): -$88,992 Change (%): -1.1% LABOR Columbia Labor Force April 2010: 92,882 April 2009: 93,506 Change (#): -624 Change (%): -.6 % Missouri Labor Force April 2010: 2,991,129 April 2009: 3,039,207 Change (#): -48,078 Change (%): -1.6 % Columbia Unemployment April 2010: 5,029 April 2009: 4,933 Change (#): 96 Change (%): 1.9% Missouri Unemployment April 2010: 262,739 April 2009: 252,376 Change (#): 10,363 Change (%): 4.1% Columbia Unemployment Rate April 2010: 5.4% April 2009: 5.3% Change (#): .1% *lowest unemployment rate in a Missouri metropolitan area Missouri Unemployment Rate April 2010: 8.8% April 2009: 8.3% Change (#): .5% CONSTRUCTION Building Permits – Residential April 2010: 102 April 2009: 108 Change (#): -6 Change (%): -5.6% Value of Building Permits – Residential April 2010: $9,778,817 April 2009: $6,792,070 Change (#): $2,986,747 Change (%): 44.0% Building Permits – Detached Single Family Homes April 2010: 50 April 2009: 28 Change (#): 22 Change (%): 78.6% Value of Building Permits – Detached Single Family Homes April 2010: $7,969,188 April 2009: $4,112,000 Change (#): $3,857,188 Change (%): 93.8% Building Permits – Commercial April 2010: 26 April 2009: 23 Change (#): 3 Change (%): 13.0% Value of Building Permits – Commercial April 2010: $5,455,500 April 2009: $10,991,838 Change (#): -$5,536,338 Change (%): -50.4% Building Permits – Commercial Additions/Alterations April 2010: 20 April 2009: 20 Change (#): 0 Change (%): 0.0% Value of Building Permits – Commercial Additions/ Alterations April 2010: $1,903,000 April 2009: $2,686,577 Change (#): -$783,577 Change (%): -29.2% HOUSING Units Sold in Boone County – Detached Single-Family Homes April 2010: 202 April 2009: 159 Change (#): 43 Change (%): 27.0% Volume of Sales in Boone County – Detached SingleFamily Homes April 2010: $34,907,618 April 2009: $25,383,749 Change (#): $9,523,869 Change (%): 37.5% Median Price of Home Sales April 2010: $150,000 April 2009: $143,900 Change (#): $6,100 Change (%): 4.2% Months of Inventory April 2010: 6.49 April 2009: 7.97 Change (#): -1.48 Change (%): -1.8% Foreclosures in Boone County April 2010: 29 April 2009: 26 Change (#): 3 Change (%): 11% COLUMBIA REGIONAL AIRPORT Passengers on Arriving Planes April 2010: 2,879 April 2009: 1,917 Change (#): 962 Change (%): 50.2% Passengers on Departing Planes April 2010: 2,879 April 2009: 1,922 Change (#): 957 Change (%): 49.8% UTILITIES Water Customers April 2010: 44,629 April 2009: 44,284 Change (#): 345 Change (%): 0.8% Electric Customers April 2010: 45,234 April 2009: 44,924 Change (#): 310 Change (%): 0.7% Sewer Customers – Residential April 2010: 40,300 April 2009: 39,956 Change (#): 344 Change (%): 0.9% Sewer Customers – Commercial April 2010: 3,563 April 2009: 3,562 Change (#): 1 Change (%): 0.0% Contributors include: Lori Fleming, Karen Johnson, Sean Moore, Linda Rootes, Sarah Talbert and Carol Van Gorp Compiled by David Walle In a departure from its usual practice, the City Council opted not to reappoint one of the Planning and Zoning Commission’s most senior members. Nearly a dozen people applied for the two open spots on P&Z, one of the city’s most important commissions. Both commissioners whose terms had expired reapplied for their positions. Raman Puri, a local developer and vice president of Hilton Garden Inn, has served on the commission for more than a year and was reappointed. Bill Tillotson, a senior adviser for the Naught-Naught insurance agency, also won the City Council’s approval. Glenn Rice, an Internet administrator for MU, has served on the commission since 2005 and was not reappointed. In a letter Commission Chairman Jeff Barrow wrote to the City Council, he called Rice and Puri two of the best commissioners who have served during his 13 years on P&Z. It's uncommon, but not unheard of, for a commissioner to not be reappointed, Barrow said in an interview. “Prior councils consistently have appointed commissioners who reapplied for the commission unless the applicant has displayed a glaring deficiency,” Barrow wrote. “I was supporting the reappointment of our standing commissioners,” Barrow said. “I don’t know the new commissioner, but I’m going to miss Glenn a lot. He was a very productive member and had a lot of experience.” In the past few years, the commission has ramped up its schedule and meets almost every week to work on a number of planning documents and processes in addition to reviewing zoning and development requests. Development Services Manager Pat Zenner, who staffs the P&Z meetings, said Rice was an active member whose insights often influenced other commissioners’ opinions. “The loss of any member of the planning commission who has been there for five years and has been through the changes we’ve been through will be felt,” Zenner said. Rice said he believes he has an “undeserved reputation as anti-growth.” He’s voted for some of Columbia’s larger developments, including Landmark Hospital, the Broadway/Fairview Walmart and the Old Hawthorne subdivision, he said. In addition, he said he has only missed eight meetings out of 102 during his time as commissioner, a better record than Puri’s. “If there’s this perception I’m this anti-growth candidate, it’s absurd, and my record proves it,” Rice said. CBT obtained an e-mail sent to City Council members from Kristi Ray, Columbia Chamber of Commerce executive vice president, urging the council to choose Chamber members who had applied for various boards and commissions. The e-mail mentioned the P&Z applicants before mentioning any other commissions and endorsed both Puri and Tillotson. “We have watched (P&Z) with great interest and have been concerned with some of their recent actions,” the e-mail states. In the past year and half, Ray began regularly sending messages to City Council members supporting Chamber members applying for boards and commissions. The Chamber also encourages its members to apply for boards and commissions, she said. “We think we’re doing the city a service by getting them more applicants,” she said. Fifth Ward Councilwoman Laura Nauser voted for Tillotson along with Mayor Bob McDavid, 2nd Ward Councilman Jason Thornhill and 3rd Ward Councilman Gary Kespohl. Nauser said the City Council regularly gets letters of recommendation for applicants to city commissions, but she looks at their qualifications, not their endorsements. Nauser said her vote doesn’t mean she disapproves of Rice’s performance. “I think I just wanted to see some change,” she said. “It was a very hard decision.” Rice’s departure from the commission also makes the 4th Ward the only ward without representation on P&Z. Fourth Ward Councilman Daryl Dudley, who ran against Rice’s wife, Tracy Greever-Rice, in the April election, was the only councilman to vote for Jim Holman, a resident of the 2nd Ward. Dudley said he’s not concerned about losing representation for the 4th Ward on P&Z. “What I look at is what people are thinking and their experience in the development world and the construction world,” Dudley said. First Ward Councilman Paul Sturtz said he thought Rice was targeted as a commissioner whose views weren’t “sufficiently orthodox” to those of some members of the community. He and 6th Ward Councilwoman Barbara Hoppe were the only members of the City Council to vote for Rice. “I felt both Ray Puri and Glenn Rice earned their keep on the commission,” Sturtz said. “They both really distinguished themselves and were doing great work.” Rice’s involvement with the development of the East Area Plan and Comprehensive Plan impressed Sturtz, he said. He and other members of the council highly respected the commission’s planning work. But, Sturtz said, “I’ll be curious to see whether that holds true anymore.” v May 29, 2010 Columbia Business Times | ColumbiaBusinessTimes.com By Jacob Barker 7 New council puts its stamp on planning commission 8 May 29, 2010 Columbia Business Times | ColumbiaBusinessTimes.com voices From the Roundtable 1956: Another watershed year in Columbia's economic development Al Germond Al Germond is the host of the "Sunday Morning Roundtable" every Sunday at 8:15 a.m. on KFRU. [email protected] My first contact with Big Blue was in the early ’50s. Staring at a school wall clock emblazoned with the letters I-B-M, I remember watching its pulsing hand count down the minutes to recess. I remember family talk about this burgeoning enterprise up and down the mid-Hudson River Valley during the time IBM was transitioning from manufacturer of purely mechanical devices into a company that built electronic mainframe computers such as the famed Model 360. Computing has come a long way from the 1949 10-ton Mark III model, a computer built for the Navy — and not by IBM — that was 30 feet long and 15 feet wide and contained 4,500 vacuum tubes. IBM eventually bested dozens of other data processing contenders, including Remington, Rand, Burroughs and RCA, all while federal trust busters periodically went after Big Blue as an alleged monopoly. More recently, the online revolution and software advances have made IBM seem the outfit moving into eclipse. There has been pain and anguish up and down the Valley during the past few decades as IBM's plants expanded and contracted with the highly volatile vagaries of electronics, manufacturing and especially component miniaturization. The integrated circuit chip, first patented in 1958, has been as much a job buster in manufacturing as it has been the progenitor of creative, service and programming jobs using powerful computers now virtually pocket-sized. As IBM emphasizes software development, job losses in one of IBM's "big iron" plants back East, though unfortunate, hopefully represent a gain for the Columbia area's more knowledgebased economic atmosphere. Not unexpectedly, caustic, often corrosive commentaries have already commenced. There are legitimate questions to be sure, but in the new reality of economic development, it looks as if Columbia has finally chosen to enter the bear pit of utilizing incentives, tax breaks and other stimulants because — for better or worse — that's how the game is played these days. We've been waiting too long for this. Although the IBM announcement a fortnight ago was significant, the big daddy of economic stimuli that shaped Columbia's future was the virtually simultaneous opening in September 1956 of the University Medical Center on the then south edge of the MU campus and State Farm's employment of 180 people in its new regional office on the then northwest outskirts of the city. The estimated population of Columbia at the time was 34,000. State Farm's choice of Columbia in 1955 was based on the desire to expand to a community similar to the firm's Bloomington, Ill., home office location. But the battle to upgrade the University of Missouri School of Medicine and replace the outmoded Parker Hospital with a sprawling complex of clinics required significant effort. The arduous, politically charged struggle for this economic development jewel pitted Columbia against Kansas City, with the former winning only narrowly in the state legislature. The naysayers will have to swallow the fact that extending Maguire Boulevard to Stadium Boulevard and granting northern access to the LeMone Industrial Park played a significant role in attracting IBM to Columbia. It’s ironic that a community that prides itself on rigid fire code enforcement finds three City Council representatives — one of them now retired from office — deliberately denying an alternate passage in and out of this "city-within-a-city" where hundreds of people are employed. There's the whisper that State Farm played a role in helping IBM make up its mind about Columbia. It seems that State Farm is very pleased about being part of our community, so it was a case of one happy customer telling another about our area. Kudos equally go out to the region's educational institutions as they collegially worked together to ensure the compatibly of their operations with IBM's needs. Access to the rest of the world was also significant. Reliable airline connections recently upgraded to all-jet service came along just in time. Isn't the pouting about IBM selecting Columbia over St. Louis ironic when in fact Missouri's eastern anchor city wasn't even being considered? May the spotlight of economic development successes continue to shine on the Greater Columbia area. We've been waiting too long for this. v County View Boone County Fairgrounds: A community investment Skip Elkin Skip Elkin is Northern Boone County commissioner. When you think of youth sports, you typically think of a little league baseball game or soccer match. You envision scores of 6- and 7-year-olds running in all different directions and Dad standing along the fence or running up and down the sidelines to offer constructive criticism. Mom is sitting on the bleachers and cheering each and every play. What you probably don’t think about when you envision youth sports is the economic benefit for the community. Sporting activities generate millions of dollars each year while giving our kids a multitude of outdoor and recreational opportunities. In 2003, the Boone County Commission began the process of creating a master plan for the 134-acre Boone County Fairgrounds, the 50-acre Smith Tract owned by the City of Columbia and the Country Atkins Park. These neighboring lands total 264 acres of parks and recreation space. The master plan was completed by Dr. David Vaught, chair of the Department of Parks, Recreation and Tourism at the MU School of Natural Resources. The master plan was developed during the course of many months before being adopted by Boone County and the City of Columbia. This was a comprehensive, transparent planning process that took several months and included Columbia Parks and Recreation as well as many other individuals and organizations. The plan included numerous enhancements, including youth sports facilities, a multipurpose building and an additional equestrian arena. Progress has been made on the master plan with the addition of two full-sized baseball fields in the Country Atkins Park that are used almost daily when the weather is warm. The Sapp Equestrian Arena is complete and is responsible for attracting and retaining many events at the fairgrounds. Not only will it continue to enhance opportunities for our kids, but it will also provide economic support for our local businesses. The newest project at the fairgrounds that ties youth sports to economic prosperity is a multipurpose arena for youth basketball that was proposed by the Columbia Youth Basketball Association. The Boone County Commission entered into a memorandum of understanding with CYBA that authorizes them to construct a new multipurpose building on the fairgrounds if they can raise the necessary funds for the project. Columbia Parks and Recreation already provides programming support for CYBA, and that will continue when this project comes to fruition. The facility can be used for other community events such as the Boone County Fair. Go to www.cybball.com for more information on the project. Later this summer, the Boone County Fairground will attract another type of sport. The National Bikers Roundup will be held at the Boone County Fairgrounds Aug. 3-8. The millions of dollars of economic impact from this event will be felt by our business community. The logistical impact of this event will be felt by the residents and local public service agencies. When you bring more than 30,000 people into the community for five days, there are going to be some logistical challenges such as traffic control, crowd management, noise and longer lines at restaurants and stores, to name a few. I commend Sheriff Dwayne Carey and his staff for taking the lead on all these logistical issues. They have spent countless hours meeting with NBR, the Convention and Visitors Bureau, the Columbia Police Department and other local and state agencies to make this event as fun and safe as possible for all the guests and residents. I advise all residents to remember that the economic benefit that an event like this brings to the community is worth any temporary inconvenience it might cause. As Columbia and Boone County continue to grow, so does the demand for quality athletic facilities. I feel any money, whether it is public or private, invested in the Boone County Fairgrounds is money invested in our community. Not only will it continue to enhance opportunities for our kids, but it will also provide economic support for our local businesses. v 9 Guest Column Legislative leaders fail to support Missouri manufacturers Ray McCarty Ray McCarty is president of Associated Industries of Missouri in Jefferson City. Did you know Missouri manufacturers employ nearly 290,000 Missourians, more than 10 percent of total non-farm employment? Did you know Missouri manufacturing workers earned an average $63,000 per year, $13,000 more per year than workers in other fields? Would you be surprised to learn Missouri manufacturing output is about 13.5 percent of the state’s economy? All true, according to a recent study based on federal employment statistics. But when employers presented the legislature with a bipartisan proposal that could increase Missouri’s ability to attract and retain manufacturing jobs, legislative leaders refused to approve the bill, despite the support of an overwhelming majority of legislators in both chambers and Gov. Jay Nixon. Missouri employers applauded the passage of bills that reversed harmful Supreme Court decisions, allowed them to avoid full layoffs by extending the Shared Work program and allowed Missouri’s unemployed to receive their share of federally funded unemployment benefits. These measures did not improve the bottom line for our businesses or enhance the business climate but simply allowed us to maintain the status quo. Business leaders know that lower taxes and a less-burdensome regulatory environment allow employers to create wealth in the economy. We are extremely disappointed that the legislature failed to pass a bill that would have helped attract new product lines to our existing Missouri manufacturing plants. The bill, called the Manufacturing Jobs Act, would have provided benefits to Missouri manufacturers and suppliers that make new products — products that have never been made by the company in Missouri before. Manufacturers would have been required to make capital investments of $100,000 per employee at the facility and export a percentage of the finished product. The incentive would have allowed these Missouri employers to retain half of the withholding taxes from jobs that would be saved by using the program. Suppliers to these manufacturers that added five or more jobs with good wages and benefits would also have benefited from the program, as they would have been allowed to retain withholding taxes on new employees. The jobs bill would have provided benefits to Missouri manufacturers and suppliers that make new products — products that have never been made by the company in Missouri before. The bill would have provided employers with a valuable tool while protecting taxpayers. Incentives would need to be repaid with interest if a manufacturer did not fully comply with the program. The total amount of the incentives was limited. The bill had an expiration date that required the legislature to review the success of the program and take action before the program could be renewed. The bill established no new tax credits but instead allowed employers to retain some of the withholding tax that otherwise would have been paid for existing employees. But our legislative leaders did not use the power granted to them by Missouri workers to provide manufacturers this needed tool. Once again, Missouri manufacturers were forced to the sidelines as we continue to watch our manufacturing operations — and the associated jobs — stream to other states and countries. This bill was a top priority for Associated Industries of Missouri and would have had a real positive impact for Missouri manufacturers and their suppliers. We worked on the bill until the legislative session’s final hour, when it became clear that politics would prevail over common sense and the legislation would not become law. The bill became entangled in a debate over tax credit reform despite our best efforts to educate legislators that this was not a tax credit program. Although we support responsible tax credit reform and make sure our tax dollars are spent prudently to attract and retain Missouri jobs, we are extremely disappointed that the legislature’s inability to pass this bill will result in continued job losses at Missouri manufacturing locations. In the end, the legislature imposed additional costs on Missouri employers that provide health insurance for their employees as they passed another insurance mandate (in addition to more than 40 existing insurance mandates). The voting public needs to remind legislators of the importance of retaining quality jobs in manufacturing in Missouri, and employers should hold legislators responsible for providing the tools necessary to ensure that Missouri continues to be a leader in manufacturing — an industry that is vital to the state’s economy. Ray McCarty is president of Associated Industries of Missouri in Jefferson City. He has more than 25 years of economic development and taxation experience from state business organizations and departments. v Superintendent's View School quality, home value and industry Chris Belcher Belcher is superintendent of Columbia Public Schools. [email protected] columbia.k12.mo.us Recent studies — and common sense — tell us that the quality of public schools has a direct correlation to property values. Several studies indicate that homeowners would experience a reduction of 2 to 10 percent of the value of their home should standardized test scores drop by 10 percent in public schools. Specifically, the Rand Corporation cites studies that have found that a 1 percent higher average reading or math score in Chicago and Massachusetts was associated with a 1 percent higher property value. Other studies link the value of homes to the rating of the local school. Values for homes close to elementary and middle schools rated as good or excellent were 20 to 32 percent higher than similar homes located close to schools rated as average or poor. Many Realtor websites link to school ratings sites for just this reason. School Match, a national firm that rates K-12 schools, has identified Columbia Public Schools as one of 28 school districts in Missouri and among 16 percent of districts nationwide to earn the What Parents Want Award. The Columbus, Ohiobased firm ranks school systems in a national percentile format and makes comparisons possible for parents, homebuyers, corporate leaders, policymakers, educators or Realtors using its services. The announcement by IBM on May 17 to bring a data center to Columbia certainly has a connection to the quality of our public schools and the quality of our workforce. Tim Shaughnessy, IBM senior vice president, cited Columbia’s “strong sense of public-private partnership, a competitive business model and availability of a talented workforce” as the three factors that attracted the global information technology giant to mid-Missouri. Good public schools and post-secondary education make it easier for companies such as IBM to manage the transfer of dedicated employees. Good schools also play a vital role in attracting and retaining the necessary quality workforce. Clearly, these are two of the primary reasons IBM chose Columbia. In fact, the Brookings Institute found that 72 percent of business leaders reported workforce quality as the most significant factor when deciding where to locate. Vibrant, progressive communities have a very tangible impact on economic health. The complex symbiotic relationship of the many sectors of a community requires attention and nourishment. A UCLA study of the CharlotteMecklenberg School District indicated that the proximity of schools to amenities such as shopping and parks was also key to the development of the neighborhood and the success of the school. As such, failure in any sector of the community impacts all other sectors. However, it is the interdependency of the system that makes it strong. The system wins or loses as a whole, and thus each sector must be supportive of the others. In Columbia, the impacting entities continue to work to maintain positive relationships. Frequent and frank dialogue is critical in moving the community forward in unity. Strong schools make strong communities, and strong communities make strong schools. This is the season of graduation in which we celebrate the accomplishments and future of our students. Let’s also celebrate the accomplishments and future of Columbia. v May 29, 2010 Columbia Business Times | ColumbiaBusinessTimes.com voices By Jeremy Essig Legislation passed by the General Assembly this session has one Columbia business owner asking how much social control is too much. Kevin Bay, owner of BoCoMo Bay, an "alternative smoke shop" located on Wilkes Boulevard, might see two sources of his revenue affected by two bills passed by Missouri's House and Senate. In the closing week of session, the legislature passed a measure that would enforce new regulations on businesses such as Bay's that sell adult entertainment items. The previous week, the legislature approved a separate measure banning synthetic marijuana, often referred to as K2. Bay also sells K2, which he calls an "herbal incense." Although supporters of these measures point to the societal benefits of the legislation, Bay and other Columbia business owners fear the fiscal impact for both themselves and the state. Nellie Symm-Gruender, owner of Passion's adult bookstore, said that adult entertainment businesses generate more than $30 million in sales and property tax revenue for Missouri every year. The new regulations, she said, could force businesses similar to Passions to close and would cost the state revenue during a time of budget woes. Symm-Gruender labeled one provision in the new law, which would require all areas of an establishment selling adult entertainment items to be viewable, as a business killer. The new restrictions would prohibit adult arcades — private booths located within a store where customers can view adult films. These booths provide a significant amount of revenue for the store, Symm-Gruender said, the loss of which could prompt the closing of the establishment. According to the bill sponsor's chief of staff, the purpose of the adult industry bill was to regulate, not close, adult businesses. Todd Scott, chief of staff for Sen. Matt Bartle, R-Lee's Summit, said Bartle argued on the Senate floor that adult industries would still be able to operate under his bill. Bartle was only aiming to place new regulations on the industry, Scott said. "Why the adult business feels they should be outside the purview of regulations is beyond me," Scott said, noting that Missouri also regulates hairdressers and barbers. photos by jennifer kettler 10 May 29, 2010 Columbia Business Times | ColumbiaBusinessTimes.com Legislature passes adult industry bill, owners claim restrictions may cause closings BoCoMo Bay sells blueberry flavored BoCoMo Dew, an herbal incense designed to mimic the effects of marijuana. BoCoMo Bay owner Kevin Bay said: "A lot of our customers use the Dew instead of prescription drugs for pain management. We'll change the herbal blend and chemical components in the packaging before Aug. 28 to make it legal. There will always be an alternative out there, and I feel that not only are the new laws a violation of civil liberties but it is a prejudice to a culture." The new regulations include a measure permitting only partial nudity in strip clubs as well as a requirement that patrons sit at least 6 feet from all dancers. Under the new mandate, adult businesses must also close by midnight. Jay Yeager, owner of Club Vogue, said it is his belief that Bartle wants to close down adult entertainment businesses. If these regulations are approved by the governor and become law, Bartle would be successful, he said. "The minute we would have to conform to those laws, we become instantly unprofitable," Yeager said. "We would cease to exist." A good portion of Club Vogue's business comes in after midnight, Yeager said, and a large amount of the money made by his entertainers comes from lap dances, a practice that would be prohibited under the legislation's 6-foot rule. He said he doubts he would be able to retain his staff under the restrictions. "Quite frankly, a lot of these entertainers who don't have job skills in other places are probably going to take food stamps and be more of a burden on the state," he said. Scott, however, said he hopes this legislation will provide new opportunities for women currently working as entertainers in adult nightclubs. Nellie Symm-Gruender, owner of Passion's adult bookstore, feels that new regulations could force businesses similar to Passion's to close. If signed by the governor, the bill would put restrictions on hours of operation, shut down private viewing booths and regulate who the bookstore can hire. Jay Yeager, owner of Club Vogue, talks with one of his dancers outside of the club. New legislation passed by the General Assembly would put new regulations on strip clubs and porn shops in Missouri. The regulations only permit partial nudity in strip clubs and require that patrons sit at least 6 feet from all dancers. The new mandate also requires that adult businesses must be closed by midnight. "I doubt I'll be able to retain my staff under these restrictions, and we'll cease to exist," said Yeager. "I would think there are very few people, growing up, that their highest aspiration is to be a stripper," Scott said, adding that he thinks this legislation will provide hope for women working in nightclubs and allow them to "see there is a better life." Scott also said adult entertainment businesses lead to other problems such as crime, sexually transmitted diseases and prostitution; he cited the case of a 14-year-old Kansas girl who was brought to work in Missouri at an adult entertainment club and was eventually raped. Property values in neighborhoods that contain adult entertainment businesses also decline, Scott said. Yeager, who describes his business as a gentlemen's club, said he opposes the view that his club is a place of smut and noted that the majority of his business comes from bachelor parties. "It's guys having a good time; they're having a lot of fun,” Yeager said. “It's not some seedy underbelly place where, you know, individuals are lurking in here in the corners or something." Columbia adult-business owners said their establishments receive fewer police calls than Columbia area bars and convenience stores, and Symm-Gruender also said she had affidavits from neighboring businesses supporting her establishment. All three business owners said they have attempted to contact Gov. Jay Nixon to ask him to veto the legislation when it comes to his desk. Jack Cardetti, a spokesman for Nixon, said that though the governor had not yet read the bill, he has been generally supportive of similar legislation. If signed by Nixon, the opponents of the bill said they plan on challenging the legislation in court on First Amendment grounds, a method that has proved successful with similar legislation. Bay said two previous adult entertainment bills were struck down as unconstitutional. Those lawsuits cost Missouri money both in attorney fees to defend the legislation and reimbursements to the adult entertainment industry for court costs he said. Columbia Rep. Chris Kelly said that though he was not speaking on the intent of the legislation, he wondered if the adult bill had "overreached" on First Amendment grounds. Scott said the wording of the bill was carefully crafted, and he was confident that the bill passed during the legislative session would prevail against any First Amendment challenges. He cited a 2009 case, Enlightened Reading v. Jackson County, in which legislation containing similar language was also challenged. In that case, the court found the Jackson County law fit within the guidelines of free expression enumerated in the First Amendment. Bay said he wished the General Assembly would recognize the rights of individuals and stop attempting to legislate morality. "Everyone is going to be in bubble wrap by the time they're done," he said. Morality lessons should come from parents, not the legislature, Bay said, adding that his own daughter is a student at MU with a 4.0 grade point average and has never been involved in drugs or the adult industry. But it could be argued, according to Scott, that morality can be found in every piece of legislation. "Every law that's passed is a statement by representatives as to where the bar ought to be set," Scott said. v 11 May 29, 2010 Columbia Business Times | ColumbiaBusinessTimes.com Krystina Lively organizes merchandise at Passion's adult bookstore. N.H. Scheppers stays in family with Priesmeyer as president photos by jennifer kettler 12 May 29, 2010 Columbia Business Times | ColumbiaBusinessTimes.com business profile Joe Preismeyer, left, and Kevin Wisch check product inventory levels of the company's imports and specialty beer brands. Preismeyer recently became president of N.H. Scheppers Distributing Company. By Sean Spence In 1952, Joe Priesmeyer’s grandfather Norb Scheppers made the trip to St. Louis to acquire the exclusive distribution rights for AnheuserBusch products in Boone and Callaway counties. That territory quickly expanded to include Cole and parts of Moniteau and Osage counties. Today, Joe Priesmeyer is the new president of N.H. Scheppers and assumed leadership of the company his grandfather started more than 50 years ago. He takes the place of Joe Scheppers, his uncle. Scheppers will stay on as chairman of the company involved in strategic planning but not in the day-to-day operations of the business. “It’s a family business,” Priesmeyer said. “What I really like about this company is that we try to keep it a family business. We view people when they come here as part of the family. You put a Budweiser logo on the side of the building, and it feels like you are part of something bigger, which you really are, but there’s still that family feel.” Priesmeyer started working in the warehouse of the company while he was a student at Hickman High School. He left for college — recruited for diving to New York City’s Columbia University — but returned to Columbia to work in the summers. He planned to stay in New York when he graduated from Columbia with a degree in psychology but couldn’t find a job. “I kind of came home to regroup because I wasn’t really sure of what I was going to do,” Priesmeyer said. “I went to work in the warehouse to make some extra cash and ended up never leaving. I fell back in love with Columbia.” From the warehouse, Priesmeyer found himself moving to a wide range of positions in the company. “It is a small business, so roles are not so defined,” he said. “Everyone ends up chipping in and doing whatever needs to get done.” One of his earliest jobs, when Columbia still had an aluminum can deposit ordinance, was to collect cans, crush them and haul them off for Mike Ginter delivers Bud Ice to the cooler of Loop Liquor. N.H. Scheppers serves 550 customers in mid-Missouri. recycling. Priesmeyer said it was the kind of job that might appear on the Discovery Channel’s program Dirty Jobs. “It was not fun,” he said. Priesmeyer said he filled pretty much every role in the office, including the position he held immediately before assuming the presidency: vice president of sales and marketing. “I just kept working my way around until I knew as much about the business as anybody,” he said. “I just kind of found myself in the position where I am now.” Today, N.H. Scheppers employs about 70 people, split between facilities in Columbia and Jefferson City. The company’s primary focus is still on Anheuser-Busch products, but it has recently begun to expand into new lines. Priesmeyer said Anheuser-Busch has a 70-share of the beer market in his company’s territory, which means that about 70 percent of the beer sold there is an Anheuser-Busch product, and that one of the best ways to expand is to sell a variety of products. The company is exploring a broad range of new products such as high-end sodas, energy drinks, waters, mixers, Dad’s root beer and tea, he said. “Monster energy drinks really got us started,” Priesmeyer said. “That’s what showed us we could be successful with different kinds of products.” Tracy Lane, executive director of Ragtag Cinema and the True/False Film Festival, has worked with Scheppers since the early 1990s, when she was general manager of The Blue Note. Scheppers makes the local sponsorship decisions for the products it distributes, and Lane persuaded Priesmeyer to add Mountain Valley bottled water as a sponsor of the film festival this year. “Joe was always really personable and a great person to work with,” Lane said. “I knew with all of the changes last year with Budweiser that they were looking to get into products other than beer. I thought Mountain Valley water was just really good water and would be a great partner for True/False.” Priesmeyer said one of the things he likes best about N.H. Scheppers is the opportunity it has for community involvement. “Because of our size, we get to interact in the community in a way that others may not get to interact,” he said. “We can be more involved. We feel like we are ingrained both in Columbia and Jeff City.” v N.H. Scheppers Distributing Company on Hathman Drive. Mark Jones unloads his truck at the end of the day at the N.H. Scheppers warehouse. The Columbia Business Times is mid-Missouri’s leading source of news and information about local business. AND NOW e 13 May 29, 2010 Columbia Business Times | ColumbiaBusinessTimes.com business profile DELIVERED TO YOUR INBOX Get breaking news, recap of top local business stories and a preview of our print edition. Log on to www.columbiabusinesstimes.com and register! V.P. of Operations Kevin Wisch checks inventory levels for the nonalcoholic products at the N.H. Scheppers warehouse. Jack Miller needs speed. The downtown Columbia headquarters of his firm, True Media Services, houses the servers used by his St. Louis and Canada offices. The faster his upstream broadband connection is in Columbia, the faster the servers can pump advertising proofs and other files to those offices, which allows employees there to be more productive. “They can download only as fast as I can upload,” Miller said. “That’s why upload speed is very important to me.” Miller isn’t alone. A few blocks away, Newsy. com streams thousands of videos each day and strains its upstream connection. “We definitely see a real need for an increase, both up and down,” said Jim Spencer, president of Newsy.com. Whether it’s upstream, downstream or both, many downtown business owners said they need faster broadband to stay competitive. That demand highlights a larger issue: The availability of super-fast broadband affects downtown’s ability to attract and retain businesses that otherwise might consider outlying areas — or even other cities. 1 gigabit per second available now photos by jennifer kettler By Tim Kridel Dan Lakaner of Socket troubleshoots a pair of wires while checking the status of a T1 connection in City Hall's data center. City Hall has five T1 lines to meet the city's broadband needs. More than a decade ago, Socket added a fifth T1 line dedicated to dealing with the call volume needs of the billing and protective inspection departments. Meanwhile, CenturyLink also offers speeds of up to 1 gbps downtown. “We currently serve over 1,000 (customer) devices by fiber out of the central office on 625 Cherry St. and distribute the fiber in six different directions,” a company spokesperson said. More fiber coming? Regardless of who’s providing it, high speeds If there’s so much demand for higher speeds, don’t come cheap, especially if the fiber or copper why aren't CenturyTel, Mediacom, Socket and can’t be snaked through existing utility conduits other operators providing it? The short answer to reduce construction costs. Digging up a city is they can but only when they have customers street costs about $110 per foot. willing to pay a premium for premium speeds. “It’s a mess,” said Carson Coffman, Socket vice For example, Mediacom’s Enterprise Solutions president. “You have to bore through concrete.” division offers speeds ranging from 5 megabits Those costs are passed on to the customer. Add per second (up and down) to 1 gigabit per second, in the monthly fee, and a fast connection becomes the top speed that Google promises to provide if it more expensive than many businesses can juspicks Columbia as a pilot city tify. For example, Mediacom for its Google Fiber project. charges about $5,600 per Mediacom said those speeds month for a dedicated 100 are available throughout mbps fiber link. downtown, though its conFor downtown businesses sumer broadband service that want those kinds of currently is available on only speeds but can’t justify the a few blocks. expense, help could come Mediacom has two diffrom wireless carriers. To ferent broadband networks accommodate data-hungry downtown because, like all devices such as smart phones other cable operators, it hisand the iPad, wireless carriers torically focused on TV for are upgrading the broadband consumers; its network went connections to their cell phone where residences are. towers, including ones atop “Between Eighth and downtown buildings. Ninth streets on South Those “backhaul” conBroadway, you have cable nections often are fiber and — the back of Tellers and are provided by companies Broadway Brewery because such as CenturyLink and there are apartments above,” Mediacom. Each new fiber said Jonathan Sessions, manline to a cell site puts that aging partner of Tech 2, a super-fast connection closer computer consultancy. “If you to more businesses downtown didn’t need cable TV service and throughout the city. at your business, you didn’t City Hall uses four T1 cards, seen here, to So instead of a telco or cable get cable run to it. That’s why handle its incoming and outgoing call volume, operator having to spend, for as well as its long distance service. downtown lacks corner-toexample, $30,000 to trench corner cable infrastructure.” fiber to a business — and pass By comparison, Mediacom’s Enterprise that cost on to the customer — the construction Solutions division runs fiber optical cable to expense could be just a fraction of that because downtown businesses as they sign up for ser- it can tie into a fiber line close by. If that scenario vice instead of piggybacking on the existing pans out, it’s good news for business owners such consumer-focused infrastructure. as Miller — and downtown itself. “My business is completely diverse of the “Businesses today may not need a gig of residential business,” said Dominick DePaola, upload and download, but in five years, I bet Mediacom’s senior director for Enterprise everybody does,” Miller said. “To get businesses Solutions. “I don’t even look where they have ser- to look at downtown as a viable possibility, we’ve vice. Basically I go to where the customers are.” got to have the infrastructure.” v 15 May 29, 2010 Columbia Business Times | ColumbiaBusinessTimes.com Downtown businesses seek faster broadband “This deal had to happen to turn the town around.” -Craig Van Matre Left: REDI Dave Griig Vice Pres Shaughne Bob McDa former M Hindman Jay Nixon the IBM a May 17. T welcomes to Columb Shaughne with repo the annou Columbia's deal with IBM And the change of direction it signifies In foreground, from left: REDI President Mike Brooks, attorney Craig Van Matre and Boone County National Bank CEO Steve Erdel applaud IBM's announcement. The three were key players in Project Tiger. IBM ... continued from Page 1 The public-private partnership, unequaled in Columbia’s history, was referenced by IBM Vice President Tim Sha when he made the May 17 announcement that the company intended to create 800 jobs in the community. In a the state incentives and personal involvement from Gov. Jay Nixon, the local collaboration to acquire a building an its renovation was instrumental to IBM’s commitment. The deal represents not only a change in Columbia’s willi offer incentives to large employers but also further evidence that the local economy is morphing into one that can with the country’s high-tech hubs. Learning from CHIP The call on Jan. 26 wasn’t the first from IBM. In the fall of 2008, the company gave the community a first lo response — dubbed Project CHIP — produced an offer that would have provided the company with about 100,0 feet of space by combining two buildings on Maguire Boulevard. But the market-rate lease terms didn’t get Col the short list, and IBM never made a visit. In January 2009, the company announced it would locate a service ce potential employment of 1,300 in Dubuque, Iowa. “The whole building situation was not compelling enough for them to come visit,” said Bernie Andrews, the of REDI at the time. “We knew going into this one we needed to come out of the gate with our best deal, get the and then let the community sell itself.” In the year between IBM’s Dubuque announcement and the company’s second request for information from and the state of Missouri, a number of changes occurred. Boone County’s Chapter 100 Bond policy was amended personal property sales tax abatement. The Columbia Area Jobs Foundation, the nonprofit entity serving as the inte for the city’s agreement with IBM, really got up and running. And REDI added a staff member to its roster — Bro After the initial contact this January, REDI immediately went to then-Mayor Darwin Hindman to secure his su an aggressive local incentive package that could provide a building below market rate. Hindman signaled his sup letter included in the response to IBM. IBM timeline Fall 2008 IBM makes initial contact with Columbia. Project CHIP begins. Feb. 4-5, 2010 Columbia and the state submit RFI to IBM. May 14, 2010 Building lease agreement is signed. January 2009 IBM announces it will build a 1,300-employee service center in Dubuque, Iowa. Feb. 18, 2010 First conference call with IBM executives and state and local teams. June 2009 Columbia recruits Mike Brooks from the Indiana Health Industry Forum to become the city’s economic development director and president of REDI. March 1-2, 2010 IBM makes first visit to Columbia. Local team and state team, including Gov. Jay Nixon, are present. May 17, 2010 IBM announces it will open a service center on LeMone Industrial Boulevard. March 16, 2010 IBM makes second visit to Columbia, where governor and local leaders continue sales pitch. May 17-24, 2010 Financing, construction and property management contracts finalized. Jan. 26, 2010 IBM requests information regarding a potential site from the state of Missouri. The Missouri Partnership contacts REDI. Project Tiger begins. April 6-7, 2010 IBM makes third site visit to Columbia. May 24, 2010 City Council approves agreement. The 10 began a which f for the photos by jennifer kettler I Chairman gs, IBM Senior sident Tim essy, Mayor avid and Mayor Darwin listen as Gov. n speaks during announcement Top: McDavid s the company bia. Below: essy speaks orters following uncement. aughnessy addition to nd finance ingness to n compete ook. REDI’s 000 square lumbia on enter with president em to visit Columbia d to allow ermediary ooks. upport for pport in a “When I understood what was going on, I let it be known that I favored pretty much whatever it was going to take to take those steps,” Hindman said. That was the “green light,” Watkins said. The city presented IBM its proposal in February, in which the city would acquire the roughly 100,000-square-foot building at 2810 LeMone Industrial Blvd. — “the only building in town that had even the potential of working,” according to Watkins — and provide it to the company for virtually nothing. “We found out with project CHIP, there is no chance to negotiate if you don’t get them to visit the first time,” Andrews said. The offer was apparently sufficiently attractive because on March 1, IBM executives arrived in town for their first visit. Selling Columbia On one of IBM’s early visits, Dave Griggs gave them a tour of the city on a Mo-X bus. They loved the parks and trails. They were impressed with downtown. The cost of housing blew them away. “It’s a very easy job to sell Columbia,” he said. The REDI team also made sure the company talked to the right people. During each of IBM’s three visits to Columbia, the executives were wined and dined amongst some of the community’s most notable players. “It’s important to the company to know that it’s not just the economic development office that wants them,” Brooks said. “They expect that.” Columbia Public Schools Superintendent Chris Belcher was brought in. UM System President Gary Forsee was present for two visits. Hindman was there selling Columbia. Local CEOs sat at the table. The state was also heavily involved. Gov. Jay Nixon was present for the site visits and hosted the IBM executives at the Governor’s Mansion for dinner. “Gov. Nixon really pulled the stops out to make this company feel welcome,” Griggs said. A significant event was a meeting between IBM executives and State Farm Vice President of Operations Mike Staloch. In 2003, the insurance company closed one of its regional offices and moved hundreds of employees to Columbia. Staloch told the IBM team that State Farm transferred 320 people to Columbia and only lost one, according to Griggs. “It wasn’t REDI or the city or somebody who maybe was a little overzealous in their sales pitch,” Griggs said. “I mean, they were talking one on one with (Staloch).” As the negotiations progressed, and IBM’s interest became more apparent, the questions the company asked became incredibly specific, especially regarding the potential workforce. “We were told right up front on workforce: ‘It’s going to take more than just you telling me you’ve got a workforce. You’re going to have to prove it,’” Griggs said. “They really grilled us.” The company received presentations from local higher education institutions and commitments to revamp curricula to meet their needs. A lot of the research groundwork had been done during Project CHIP, but significant portions of the workforce 00,000-square-foot warehouse at 2810 LeMone Industrial Blvd. a multimillion dollar renovation last week. Little Dixie Construction, formerly used the space as a warehouse, is the general contractor project. information had to be updated. The level of detail IBM requested kept the REDI team working way past business hours, with responses often due within 24 hours. “You don’t take a process that normally would minimally take six to nine months, at best, and condense it down into four months without quick turnaround and quick production,” Brooks said. The community sales pitch never let up. While Hindman was in Washington, D.C., for the U.S. Conference of Mayors, he made a special stop by the IBM offices there. “They were still holding their cards pretty close to the vest, but on the other hand, they had a lot of very nice things to say,” he said. Hindman referenced a letter from IBM commending Columbia on its livability and the importance of that factor in the company’s deliberations about choosing a site. “I can’t help but point out that (they) specifically mentioned the trails,” Hindman said. The incentive package offered to IBM was no doubt attractive. The state incentives — more robust than the offer during Project CHIP, according to Andrews — are potentially worth more than $28 million. The city and county incentives are worth roughly $5 million. But Columbia’s lifestyle, and its inexpensive workforce compared to the coasts, played an important role. “It wasn’t just about incentives; they could have gone anywhere,” said 1st Ward Councilman Paul Sturtz. “There are lots of communities that could put together a similar package. Columbia’s distinctive culture can’t be discounted.” "We found out with project CHIP, there is no chance to negotiate if you don’t get them to visit the first time.” -Berrnie Andrews An intense schedule City Counselor Fred Boeckmann, unlike most attorneys, doesn’t get paid by the hour. So he doesn’t know how much time he spent finalizing the financing, construction and leasing agreements with IBM. The best estimate he could offer was “a lot of hours.” “Usually there’s more time to get something done, and usually the projects aren’t this significant,” Boeckmann said. “I cannot think of anything comparable.” He’s worked the past three weekends, and the other local attorneys involved in the deal — Craig Van Matre, who represented the local banking group; Erick Creach, who represented CAJF; and Bruce Beckett, who represented the LeMone Trust — scrambled to finalize the agreements between the involved parties and IBM as the deal neared the final stages. Time had been of the essence from the beginning, with IBM insisting on having an operational facility by Nov. 1. “I’ve been doing this work for a long time, and I’ve never had a project on this tight of a time schedule, not at this magnitude,” Brooks said. The agreement ultimately reached was given the nod by the City Council at a special meeting on May 24. CAJF will buy the building from the LeMone Trust with a $500,000 contribution from the city and enter into the financing agreement with local banks. The banks will make up to $10 million available for the building’s renovation. After CAJF finalizes agreements with the banks and the general contractor, Little Dixie Construction, it will hand over ownership of the building to the city, which will pay down the $2.55 million balance on the building with rent from IBM. IBM’s contract allows it to basically write one check for property management, utilities and payments in lieu of taxes, all of which will go to paying off the construction and building loans. To make a deal legally, the city had to use CAJF as a go-between. The city on its own would not have been able to acquire the building and enter into a construction agreement without a municipal election and a bidding process, Van Matre said. “We didn’t have the time, and we didn’t have the legal ability to do it with the city as the owner and with the city as developer, so we had to have a private developer step in to do all this,” he said. The city’s de facto purchase of the building is the first time Columbia has ever taken such an action. But ironing out the differences to get to a final agreement required some savvy — and sometimes heated — negotiations. At one point Van Matre said he accused Boeckmann of “going postal” — a clear indication for anyone who knows the soft-spoken city counselor that the dialogues got intense. “We had some frank and spirited conversations with the IBM people about what they wanted, which was the moon, and what we could give them, which was something considerably less,” Van Matre said. Technically, there is still a “window of risk,” as Van Matre put it. IBM has the right to withdraw from the agreement until the beginning of July if the state incentives don’t materialize. But that’s a significant difference from where the negotiations commenced, when the company wanted the right to scrap the deal any time before they occupied the building. “The banks could not justify putting $10 million out and hoping IBM didn’t find some reason they wanted to walk away,” Van Matre said. The ball is in the state’s court now, the promised incentives the last piece of the puzzle that needs to fall into place. Those involved said there is no reason to believe the state won’t come through. “There’s just too many people who would have major egg on their faces, going all the way up to the governor of the state,” Van Matre said. (continued on Page 18) 18 May 29, 2010 Columbia Business Times | ColumbiaBusinessTimes.com Meanwhile, construction and design specifics were also being finalized. Ultimately, Little Dixie and the LeMone Trust ended up with a significant business deal securing a construction contract potentially worth $10 million and selling an underutilized building. But convincing IBM of the structure’s potential was one of the project’s more significant obstacles. “I was very positive from the initial phone call that Columbia had a great opportunity to bring IBM to the community,” said John States, one of the owners of Little Dixie. Little Dixie was grilled by IBM on cost estimates and required to produce job quotes and estimates under “phenomenal time pressures,” Watkins “It’s not so much what happened from January to the present; it’s what happened from 2006 to 2010,” Wade said. “There was no question that at some point we would hit some biggies.” As for Watkins, IBM is the “biggest fish” that Columbia has landed since he has been here, he said. He pointed to the area’s willingness to start using tools such as Tax Increment Financing and Chapter 100 Bonds, as well as specific measures such as the approval of electricity discounts for large power users. “The community, particularly the council, and I give the previous council a lot of credit, was willing to consider these kind of things for the right project,” he said. Griggs pointed to the university’s adoption of economic development as a core mission, its establishment of the Life Sciences Incubator and its growing collaboration with local government and REDI. said. The team the firm assembled to sell the building’s potential to IBM had the challenging job of demonstrating how it would convert a warehouse — not long ago filled with some cars, an old forklift and “lots of dirt,” according to Griggs — into a corporate office. “Part of the challenge that you face when you’re trying to make this kind of conversion is getting people to see the vision of what it can be, not what it is,” Brooks said. States gives lots of credit to the architect, John Simon of Simon Associates, in convincing IBM of the building’s potential. But oftentimes IBM would ask for definitive cost estimates and designs without many specifics on what it wanted, Griggs said. “What do you want in the space; how do you want the space configured?” he said. “We knew nothing.” But after all the wrangling concluded, Watkins said the city did not depart much from its original proposal. “We had to go through some different machinations to make it work legally, but it is pretty much the same basic offer that was put on the table back then,” he said. Carrots for companies The significance of the IBM deal, apart from the jobs and community investment, is the change in the community’s willingness to offer incentives. When Watkins was economic development director and helped lure Quaker Oats to Columbia in the mid-’90s, the only incentive they were offered was a sewer line, he said. “For a while, over the past eight to 10 years anyway, the community was not looked at by a lot of businesses because we didn’t put things on the table,” Watkins said. “We kind of said we’re a good enough community; we don’t have to do that.” These days, Andrews said REDI is hearing from more companies interested in the community than at any time in his history, and he gives credit to the change in the community’s willingness to craft incentive packages. “We were getting eliminated before we even got contacted,” he said. Former 4th Ward City Councilman Jerry Wade said the IBM deal is the result of efforts that intensified during the past five years to put the tools in place for high-tech economic development. Griggs pointed to the university’s adoption of economic development as a core mission, its establishment of the Life Sciences Incubator and its growing collaboration with local government and REDI. A watershed year was 2004, when REDI began reviewing its incentive policy, Griggs said. “Never in history had the word incentive been met with anything other than, ‘We don’t do that,’” he said. Changing Columbia’s economy The implications for Columbia’s economy loom large. With a company as significant as IBM making a public announcement, Columbia’s reputation as well as its economy will get a boost. “For the companies that are considering Columbia or who have recently considered Columbia but have not pulled the trigger on whatever project they’re working on, this sends a really big signal,” Griggs said. The $77 million impact Brooks derived from a Federal Reserve model assumes $33 million in ripple effects from the $44 million payroll IBM will potentially generate. But the publicity is also significant, as is the continued growth in IT jobs, he said. “With the addition of this company, it’s just going to make our technology job base just that much more noticeable and significant,” he said. In Dubuque, the city has already begun to see itself transform due to the effects of IBM’s investment there, said Rick Dickinson, president of the Central Dubuque Development Corporation. Columbia can expect similar results, he said. “Ten years ago, you could have shot a cannon down Main Street Dubuque,” he said. “Now, it’s a vibrant business center. “It will change the dynamics of your economy nearly overnight.” Although some members of the community have already expressed skepticism about the incentive package offered to the company and the secretive manner under which the deal was negotiated, those involved said the incentives and confidentiality request are standard. IBM got a good deal, they said, but so did Columbia. “Anybody who thinks we made a mistake in doing what we did is just flat wrong,” Van Matre said. “This deal had to happen to turn the town around.” f photo by jennifer kettler On April 14, Judge Dennis Dow of the U.S. Bankruptcy Court of the Western District of Missouri issued an 81-page opinion that constituted a victory for the investors who sunk big money into a deal that Reuter and Vertical officers said would make them a fortune. Dow decided that Reuter should pay up for his role in the elaborate investment scheme that took millions from investors — and friends — who trusted him. And on May 19, the judge converted Reuter’s Chapter 11 bankruptcy filing to a Chapter 7, which means his assets could be liquidated to pay back Trom and eight other investors who claim that Reuter scammed them. The investors involved in the bankruptcy case lost a total of about $917,000. Dow said they are entitled to get that money back, plus $2.7 million in damages and attorneys’ fees. In all, Vertical Group was able to pull in more than $2 million from about 40 investors from across the country. According to court documents, Trom was the first of the nine investors involved with the lawsuit to give money to the company. The former location of Vertical Group is now home to a law firm, and Reuter is working as a carpenter in Columbia. But in late 2004 and early 2005, these offices were a place of big talk and big promises — a place where investors from all over the state and the country were told their five- or six-figure investments could be used to acquire standby letters of credit, and they could become millionaires overnight. Because he claims to have lost money in the deal with Trom and that Vertical officers had misinformed him, Reuter has maintained that he, too, was the victim of a scam. Before the bankruptcy judge ordered him to pay the investors, Reuter was unable to defend himself from accusations made against him in a lawsuit by the investors and then sought bankruptcy protection. He has never been found guilty of any criminal charges. “If he were guilty, he would have been prosecuted,” said his lawyer in the bankruptcy case, James Daniels of Kansas City. “…a sharp business acumen” Nine investors filed a lawsuit against local businessman Nathan Reuter, who is being accused of Reuter, 51, is originally promoting an alleged securities scam. Reuter has filed for bankruptcy. Reuter formed Liberty Financial Corporation in from California, Mo., a town of about 4,000, located 60 1999 in Springfield, according to court documents miles southwest of Columbia. He graduated in 1980 from the University of Missouri, where he had been a and documents filed with the Missouri Secretary of member of the Delta Upsilon fraternity, with a degree State. It was around this time that Monte Chilters of Springfield came to work for Reuter. in agricultural economics. Chilters, who handled residential real estate loans From there, he went to work for AmerenUE for 13 years. He managed inventory control for the com- for Reuter’s company, said he was interviewed by pany’s nuclear power plant in Callaway County. But Reuter to work for the company. He described Reuter as a “sharp guy” and “easygoing.” Reuter had bigger aspirations. More importantly, Chilters said, he had heard good After he left Ameren, Reuter began working in real estate and started up a few businesses in Columbia, things about Reuter’s reputation in the local busiaccording to court documents. He filed with the ness community, namely that Reuter had “the Midas Missouri Secretary of State to start The Tiger Club touch.” “Everything he touched turned to gold,” Chilters LLC, located at 1116 Business Loop 70 E., in 1992. He then started up Mr. Tidy Car Wash, formerly located said. “So I wanted to go work for him.” in southwest Columbia at 3715 Sandman Lane. (continued on Page 30) 19 May 29, 2010 Columbia Business Times | ColumbiaBusinessTimes.com Reuter ... continued from Page 1 20 May 29, 2010 Columbia Business Times | ColumbiaBusinessTimes.com photos by jennifer kettler SPECIAL SECTION | Health care LEFT: Matt Hake, president of Sleep Diagnostic Services, helps about 3,000 patients a year with their sleep disorders. ABOVE: Patient Amanda Woyczik undergoes a clinical study. Sleep disorder clinic grows past city limits, saves patients money By Sean Spence Sleep disorders are on the rise, and health care entrepreneur and respiratory therapist Matt Hake believes his company, Sleep Diagnostic Services, provides an answer. Hake founded Sleep Diagnostic Services in 1994 with Tim Hogan, who sold his interest in the company to Hake in 2005. “There was a need because there were not a lot of places where you could be tested,” Hake said. “Our main focus is the diagnosis and treatment of obstructive sleep apnea.” Hake described obstructive sleep apnea as a condition in which a person’s sleep is disrupted, usually because of some sort of airway obstruction. Airway obstructions prevent continuous sleep, which can lead to a variety of health problems such as excessive sleepiness and high blood pressure. “People with obstructive sleep apnea can fall asleep on the job, wreck cars because they are falling asleep at the wheel, get in trouble for poor work performance,” Hake said. “There is a high correlation between sleep apnea and stroking.” Hake pointed to a 1992 congressional study that reported that one out of eight Americans suffers from a sleep disorder, the majority of which went undiagnosed. That’s where Sleep Diagnostic Services comes in. “We take people who are suspected of having a sleep disorder; we diagnose them; and we provide treatment for them that allows them to improve their quality of life,” he said. Originally, the company started as an add-on for full-service hospitals. But Hake found that it was easy for a hospital to let him build a sleep diagnostic practice for them and then cut him out by creating their own in-house program. Hake responded in 2003 by opening three independent labs, separate from any hospital system, as complements to the existing contracts with hospitals. “We did it to control our own destiny,” he said. “We are not at the mercy of the hospital contracts.” Adding the independent facilities was made possible, in part, by insurance company payment schedules that make it cheaper to go to independent labs than to a hospital. “Let’s say you go to the hospital; your reimbursement rate from the insurance company might be $1,500 to $2,500, whereas our average reimbursement is $600,” Hake said. “(Our cost) is on average a third of the cost of a hospital-based sleep study. Competitively, that’s a big deal.” For a patient whose insurance policy includes a 20-percent co-pay, for example, this represents an out-of-pocket difference of hundreds of dollars unrelated to quality of care, Hake said. Today, Sleep Diagnostic Services contracts with nine hospitals and has two independent labs — one in Columbia and one in Lake Saint Louis. Hake said the company employs about 30 people, about half of which are sleep technicians. “We’ll see about 3,000 patients this year,” Hake said. “My goal is to help 10,000 people a year.” The majority of the company’s patients come through physician referrals. Hake said his company offers physicians an alternative for patients who say they can’t afford sleep testing. Dr. Sanjeev Ravipudi, a Columbia cardiologist, said he has been referring patients to Sleep Diagnostic Services for four or five years. “Some people truly don’t believe they have a sleep disorder,” Ravipudi said. “Sometimes it takes a little convincing to get them screened. Not everyone who gets screened has a sleep disorder, but for those who do, it can make a big difference.” v Grant to move MU docs digital By Dianna Borsi O’Brien Grant Savage, head of the University of Missouri School of Medicine Department of Health Management and Informatics, knows firsthand why we need electronic medical records. Every year he suffers from allergies and goes to his doctor. His doctor flips through his paper medical records to review what happened last year, which medications worked and which did not. The goal of a $6.8 million, two-year cooperative agreement awarded to MU from the U.S. Department of Health and Human Services, Office of the National Coordinator for Health Information Technology, is to prevent doctors such as Savage’s Savage from having to flip through pages of medical records to find — or not find — the information they need. Announced on May 28, the funds will create the Missouri Health Information Technology Assistance Center, which will: • Help physicians select and purchase hardware and software by providing unbiased, comparative information and access to discounts and loans. • Provide assistance via a website and a staffed toll-free number, as well as provide access to group purchasing plans and information on loans. • Analyze physicians’ office procedures make sure office workflow is compatible with the use of electronic health records. • Teach health care practitioners to use electronic records in meaningful ways. • Provide information for obtaining federal reimbursement for adopting and effectively using electronic health records. The award will be put into action through partnerships with organizations including the Hospital Industry Data Institute, the Missouri Primary Care Association, the Kansas City Quality Improvement Consortium and Primaris, the state’s federally designated health care quality improvement organization. No one has been hired yet for the project, Savage said, because the final agreement is still in process. Even after the paperwork is completed, some of the funds will not be distributed until the HIT Assistance Center and its partners contract physicians for the center’s services. Eventually the funding will translate into about 20 new jobs in Missouri, distributed among MU and the four partnering organizations, Savage said. These funds were part of $267 million in awards to 28 nonprofit organizations announced earlier this year by Health and Human Services Secretary Kathleen Sebelius. Going digital, saving lives Unlike many industries, the health care sector has been slow in the move to digital. For example, Savage said when he goes to get his car fixed, his mechanic has a printout of all the work he’s had done. “Sometimes I think my car mechanic has better information on my car than I do on my own health care,” he said. To get around the lack of comprehensive records, Savage writes out the names of all his medications and their dosages and gives it to his physician. “I’ve been in health care for 20 to 25 years, but most people don’t do this,” he said. For many people, insufficient records can result in what is called “poly pharmacy,” unintended drug interactions or wasted money because people end up taking drugs they don’t need. If their physicians were aware of all their current medications, that could be avoided, Savage said. The danger increases with age. Savage said many people older than 65 take an average of eight to 12 prescriptions, often from two or three physicians. It often falls to primary care physicians to help patients manage all this. In Missouri, there are 5,300 primary-care physicians, and Savage said the project’s goal is to sign up 1,200 doctors for the center’s services. If that goal is reached, federal funding will continue for two more years; the project is designed to become self-supporting through contracts with physicians, Savage said. Savage, the principal investigator on the project, said the ultimate goal is not about avoiding paperwork: It’s about safety, saving money and saving lives. With electronic records, if someone comes into an emergency room unconscious or unable to communicate, the physician would be able to access information on any allergies to medications, previous conditions or other necessary information. Doctors would no longer be practicing medicine in the dark, Savage said. In other cases, such records also could save patients time, money and risks. For example, Savage said, if someone has had a blood test or an X-ray ordered by one doctor and then went to another physician, electronic records would eliminate the need to repeat the X-ray or blood test. The new physician would be able to immediately access any lab results without waiting for a fax or photocopies to arrive. Addressing security concerns, Savage noted that accessing an ATM involves using electronic records and sensitive data, but people do it all the time. Patients would have to opt into and authorize access to an electronic records system, which adds an extra layer of security. Electronic health records could also help Missourians tackle chronic illness such as cardiovascular disease, cancer, kidney disease and obesity, said Dr. Karen Edison, director of MU’s Center for Health Policy and co-principal investigator of the project. Missouri currently ranks 40th in the country for prevalence of cardiovascular disease and cancer, 36th for kidney disease and 34th for obesity. Electronic records would help physicians coordinate care for chronic diseases, provide benchmarks on health markers and give guidance for best management practices. “You can’t improve something if you don’t have good metrics,” Savage said. v 21 May 29, 2010 Columbia Business Times | ColumbiaBusinessTimes.com SPECIAL SECTION | Health care 22 May 29, 2010 Columbia Business Times | ColumbiaBusinessTimes.com SPECIAL SECTION | Health care University to fund Ellis Fischel with revenue bonds By Jeremy Essig University of Missouri Health Care has chosen to take on its own debt to build a new cancer treatment facility after the legislature once again failed to appropriate funds for the center. Following another legislative session in which state funds for the project were not made available by Missouri's General Assembly, the curators of the University of Missouri voted unanimously on May 21 to issue revenue bonds to fund a new Ellis Fischel Cancer Center facility. The project, estimated to cost about $52 million, will be funded with $30 million in new revenue bonds, and the rest will come from University of Missouri Health Care operating revenues, according to a release from UM Health Care. The new facility will take up two floors in UM Heath Care's new patient tower and is expected to include a radiation oncology area with expanded imagining capabilities, 36 examination rooms, a new breast cancer center and a variety of cancer survivor services, according to the release. Construction on the patient tower is expected to be completed by 2013. Although unable to obtain state funding for the project, local legislators were commended by Health System Vice Chancellor Dr. Harold Williamson Jr. for their efforts. "We are grateful to our local legislators for working hard in a bipartisan effort to try and secure state funding," Williamson said during the curators meeting. In late April, Missouri's House of Representatives voted to approve funding for the new cancer center in a reappropriations bill sponsored by Budget Committee Chairman Allen Icet, R-Wildwood. At the time, Icet gave credit for the measure to Columbia Rep. Chris Kelly, another member of the Budget Committee. UM President Gary Forsee said current economic conditions make this the optimal time to construct the new facility. Within a week of the House's passage, however, the Senate Appropriations Committee struck out the provision for Ellis Fischel funding. Kelly, a Democrat, said some members of the General Assembly have erroneously treated the funding for the center as a "pork barrel" project for Columbia's delegation. He said the detractors of the funding ignore the fact that Ellis Fischel provides cancer treatment of last resort to more than 90 counties in Missouri. Kelly also said that opponents of the center's funding ignore the financial benefits of having a top-notch cancer hospital in the state of Missouri that could combine both research and medical interests at the University of Missouri. "It would have by far been the biggest economic development bill if passed," Kelly said. Rep. Mary Still, D-Columbia, agreed with Kelly on the benefits of the new center to all Missourians. The new cancer facility would be "such a help statewide, not only locally," she said. Speaking a day before the UM Heath Care announcement, Still said she had hoped a bonding bill proposed by Kelly would have passed during the last session and provided funds necessary for the new cancer facility. The bill would have authorized the General Assembly to issue $800 million in bonds for construction projects throughout the state. After being read during the first week of session, Kelly's bill laid dormant until being assigned to committee the final day of session. Although both Kelly and Still had previously promised to raise the issue of Ellis Fischel funding again during the 2011 legislative session, the announcement by UM Health Care seems to make that promise unnecessary. UM President Gary Forsee said current economic conditions make this the optimal time to construct the new facility. "With interest rates and construction costs both at optimally low levels, the time to act is now," Forsee said in the UM Health Care release. The new Ellis Fischel Cancer Center will replace the existing one, located on Business Loop 70. The current facility was constructed in 1939 as the state's first cancer hospital, according to the the release, and was transferred to the university and renamed the Ellis Fischel Cancer Center in 1990. v The Missouri Women’s Business Conference Keeping Good Company June 1-2, 2010 Courtyard by Marriot Hotel in Columbia Primary Event Sponsors: Missouri Women’s Council, Missouri Small Business & Technology Development Center, Lincoln University, Commerce Bank, AARP Media Sponsors: 102.3 BXR, KFRU, KLIK, Jeff 104.1, The Columbia Business Times To register for attendance or to be an exhibitor, visit www.missouribusiness.net. Registration includes lunch. Exhibitors still being accepted! Event begins with a networking “Business One-on-One” social sponsored by the AARP and designed to provide a one-stop information venue for women business owners to meet individually with professional local, state, and federal government representatives as well as business industry professionals. Women can receive advice and instruction on all facets of growing their business. Main event on Wed., June 2, features breakout sessions, a panel of women business owners, a guest speaker, exhibitor booths, attendance prizes, and plenty of networking. Keynote speaker is M.B. Izard, author of BoomerPreneurs: How Baby Boomers Can Start Their Own Business, Make Money and Enjoy Life. She owned a number of businesses and has more than 30 years experience working with entrepreneurs. By Jeremy Essig Following a year marked by historic revenue decline, two Columbia state representatives offered their take on the 2010 legislative session. In separate interviews, Democratic Representatives Chris Kelly and Mary Still said the local delegation was able to pass through a number of measures that will benefit the area. The two also said local residents should be proud of the delegation's ability to work together. "In Columbia we're the black-and-gold party," Still said, referring to a delegation that includes Kelly and herself as well as Democratic Rep. Stephen Webber and Republican Sen. Kurt Schaefer. "We don't quibble a lot about politics but try to mutually join together to support our community." Webber and Schaefer's offices did not respond to interview requests for this story. Budget A continued decline in revenue and uncertainty about additional federal stimulus funds required the House and Senate to cut $500 million from the fiscal 2011 budget proposed by Gov. Jay Nixon in January. Although committees in each chamber were able to cut the additional funds from Nixon's proposal, some of the savings were based on legislation that never passed, which left the budget passed by legislators out of line with revenue projections for the next fiscal year. The budget passed was "technically balanced but, on the other hand, still needs more work," said Kelly, a member of the House Budget Committee. Four days after the 2010 legislative session concluded, State Budget Director Linda Luebbering announced that more cuts — $350 million worth — would need to be made in order for the 2011 budget to balance. "We knew it wasn't balanced," Still said of the budget. "We knew we were going to come up short." Kelly lamented the legislature's inability to pass a number of measures he said would have provided additional savings for the state, including a bill he sponsored to bring funds from other areas into the state's general revenue pool and another measure that would rein in Medicaid spending. Both representatives also said the state needs to take a look at new sources of revenue. "We certainly can't cut our way into prosperity," Still said. Jobs Already passed by the House, the Senate brought up the economic development bill on the final day, only to see it filibustered by a number of members. Kelly said the attitude of members toward tax credits by the end of session had become, "Kill 'em all.” But that view is short-sighted, Kelly said, noting the role state tax incentives played in drawing IBM to Columbia. According to Still, a jobs bill would have also contained the MOSIRA program, under which a small amount of general revenue would be set aside for investment in science and technology. "That could have had a huge effect here in Columbia," Still said of the program. Ethics The General Assembly was able to pass ethics legislation during the final days of the 2010 session. "It was a sham," Still said of the bill. She said she voted for the measure because it addressed the transfer of money between committees but questioned language imposing contribution limits of $20,000 while exempting representatives from the provision. Kelly cited a portion of the bill that would make it a class C misdemeanor to obstruct an ethics investigation and noted that littering is a class A misdemeanor. "We took ethics just a little less serious than littering," he said. An interesting, frustrating session Still, who described the session as both "interesting" and "frustrating," said she was very proud of her involvement in the passage of a measure requiring some insurance plans to cover autism spectrum disorder. As the ranking Democrat on the House Health Insurance Committee, Still said she was "the leading advocate on our side" for the autism coverage mandate. But Still was frustrated that her bill regulating payday loan centers never made it to the House floor. "It was clear that the speaker and the House floor leader were not going to let that come to a vote," Still said. Kelly described himself as "extremely frustrated" at the legislature's inability to appropriate funds for the Ellis Fischel Cancer Center. Kelly also said there was not enough "strategic planning" on behalf of members to plan for future problems, including a fiscal year 2012 budget that will be short $900 million in federal stimulus funds used by the state this year. Kelly said he expects a more productive session in 2011 and added that Rep. Steven Tilley, R-Perryville — the expected Speaker — is committed to a cooperative General Assembly. "Next year I think we'll be better," Kelly said. v 23 May 29, 2010 Columbia Business Times | ColumbiaBusinessTimes.com Legislative session frustrates Columbia lawmakers 24 May 29, 2010 Columbia Business Times | ColumbiaBusinessTimes.com PUBLIC RECORD CENTRAL TRUST BANK THE LT 21-C HIGHLANDS PLAT 3 Boone County deeds of trust worth more than $275,000 Issued May 4 through May 17 $378,100 ADAM, LAURA BOONE COUNTY NATIONAL BANK LT 105A VISTAS AT OLD HAWTHORNE PLAT 1A $4,250,000 STEPHENS COLLEGE BOONE COUNTY NATIONAL BANK LT 28A STEPHENS COLLEGE PLAT 2 $1,600,000 SCHNARRE, BRIAN & FRANCES FAMILY TRUST THE CALLAWAY BANK THE STR 13-51-12 //S FF W/EXCEPT $1,492,254 PREMIER LLC 8-BALL COMMERICAL PROPERTIES LLC LT 201 VILLAGES AT ARBOR POINTE PLAT 2 THE $1,300,000 PERRY, LINDALL A & JANE ANN; BOONE LANDHOLDINGS LLC FCS FINANCIAL STR 22-49-12 //SW $1,108,789 RICE INVESTMENTS LLC BOONE COUNTY NATIONAL BANK LT 227 PT COLUMBIA $820,000 ROBERTS, STEPHEN R & MARILYN A HAWTHORN BANK STR 8-47-12 /E/SE SUR BK/PG: 2372/83 AC 16.390 $690,000 MORRISSEY, WILLIAM & LISA LANDMARK BANK STR 27-49-14 /E/NE SUR BK/PG: 1447/8 AC 30.00 $655,536 CHERRY HILL DENTAL ASSOCIATES LLC BANK OF AMERICA LT 101 ROSEWOOD CONDOMINIUMS $650,000 LIFESTYLE DEVELOPMENT INC. BOONE COUNTY NATIONAL BANK LT 101C VISTAS AT OLD HAWTHORNE PLAT 1A $650,000 FOREST LAKE INC. CENTRAL TRUST BANK THE STR 14-46-12 /E/NW AC 80 $577,500 C M A E INVESTMENTS LLC BANK OF MISSOURI THE LT 601 OAK FOREST PLAT 11 $505,000 MCNALLY, WILLIAM BRYANT & STACEY A CENTRAL TRUST BANK THE LT 2 JAYNES SUBDIVISION PLAT 2 $417,000 MURPHY, STEPHEN M & KRISTY L NORTH AMERICAN SAVINGS BANK LT 167 OLD HAWTHORNE PLAT NO. 2 $400,000 HALE REAL ESTATE HOLDINGS LLC BURTON, JAMES R & JUDITH A STR 17-48-12 /NW/NE SUR BK/PG: 482/99 FF TRACT 3 $395,929 HEYEN, KEVIN W & MARY ELIZABETH MAINSTREET BANK STR 28-46-12 //SW SUR BK/PG: 2553/20 AC 10.230 $390,000 BOWLES, RICHARD H & NANCY L $375,000 STOHLDRIER, DONALD & BELINDA LANDMARK BANK LT 127B VILLAS AT OLD HAWTHORNE PLAT 1 THE $350,000 KAYSER, THOMAS M & LISA E HAWTHORN BANK STR 13-48-13 //SW $341,000 GRIEBEL, JAYLON S & CINDY G WELLS FARGO BANK LT 163 THORNBROOK PLAT 5 $334,000 HUDSON, ERNEST L & LEGRETA SHELTER MORTGAGE INC. LT 75 HERITAGE MEADOWS PLAT 4 $329,000 CANAVAN, PAMELA J & STEVEN C STATE FARM BANK STR 28-48-11 //SW SUR BK/PG: 3200/6 AC 10.010 $321,300 WATTS CONSTRUCTION CO INC. LANDMARK BANK LT 3 HUNTER'S BEND PLAT NO. 1 $315,000 VILES, SHARON MARIE BOONE COUNTY NATIONAL BANK LT 71 LAKE WOODRAIL SUB PLAT 6 $308,700 CAMPBELL, JOHN K & RHONDA K SIRVA MORTGAGE INC. LT 150-A BELLWOOD PLAT NO 2-A $300,600 ANDERSON, RUSSELL & ANDREA BOONE COUNTY NATIONAL BANK LT 238 OLD HAWTHORNE PLAT NO. 2 $300,000 LANDRUM, CARL R TRUST UNION BANK STR 31-48-12 //S SUR BK/PG: 620/396 FF TRACT 7 & P $300,000 LEUTHER, THOMAS E & VICKI G COMMERCE BANK LT 115 AVALON PLAT 1-A $300,000 HAWKINS, RICHARD & LISA CENTRAL TRUST BANK THE LT 121 WESTCLIFF PLAT 1 $300,000 PATEL, HASMUKH-BHAI A & URVASHIBEN H BANK OF MISSOURI THE LT 60 PL 4 COUNTRY CLUB FAIRWAYS $295,480 P & S DEVELOPERS LLC CALLAWAY BANK THE LT 30 LAKEVIEW ESTATES PLAT 7 $294,800 HOLLINGSHEAD, MATT W & JENNIFER A BANK OF MISSOURI THE LT 306 HIGHLAND RIDGE PLAT 3 $288,000 BEACON STREET PROPERTIES LLC HAWTHORN BANK LT 449 THORNBROOK PLAT NO. 13 A Life Aquatic Scuba LLC Kevin Kivlahan 573-443-2182 1727 Paris Road Scuba training and travel Adam’s Barbershop Adam Z. Prosser 573-449-7136 108 W. Business Loop 70 Barbershop BatteryPro Joshua C. Reynolds 573-289-5282 6640 Stephens Station Road, Ste. 101 Collect automotive batteries for recycling Bready North America Inc. Holly Smith Berry 573-442-3742 33 E. Broadway, Ste. 280 Retail bread machines Celtic Wyndes Farm Shoppe Terri L. McHugh 573-289-3127 1800 Commerce Court Sewing and alterations Columbia’s Real Food Co-op Eli Samuel Gay 573-442-0594 220 N. 10th St., Ste. 102 Grocery store Dr. Carl’s Auto Care Shahriyar Siraji 573-673-0758 1722 B Paris Road Auto repair Dugout Sports Cards James R. Polacek Jr. 1907 N. Providence Road, Ste. B Retail sports cards and collectibles El Jimador M I Degollado Inc. 1412 Forum Blvd. Mexican restaurant Element Yoga & Health Studio Ashley M. Jenkins 573-446-9700 1506 Chapel Hill Road, Ste. E Yoga/health/fitness/wellness Fairfield Inn & Suites Relax Investments Inc. 573-886-8888 1115 Woodland Springs Court Motel Genesis Salon LLC Carolyn M. Hendren 573-441-6398 1204 Rogers St., Ste. 103 Hair salon Great Southern Travel Great Southern Financial Corp. 3103 W. Broadway, Ste. 101 Travel sales Herstyler Barbara Turner 479-783-2312 2300 Bernadette Drive Hair styling products I D Embroidery Lisa Dawn Brzycki 573-814-3166 2610 Calvert Drive Embroidery/promotional products Junction Real Estate Group LLC Jane Hardin Gelnda 573-474-3700 1809 Vandiver Drive Sales, real estate, leasing and management La Terraza Grill LLC Carmen Mendez Arce 128 E. Nifong Blvd. Mexican restaurant Lees Lawn Care & Equip LLC Larry Arthur Lees 660-263-7570 2600 Range Line St. Small engine sales/repair, mower sales National Studios Inc. National Studios Inc. 314-344-9191 2300 Bernadette Drive Photography studio Perfect Eyebrows LLC Jignesh K. Biscuitwala 573-445-5051 2300 Bernadette Drive, Ste. 916 Eyebrow threading and henna tattooing Petro Mart #51 Western Oil Inc. 1300 Fellows Place Gas/convenience store R & L Simulators Roger Rosenbaugh 479-966-5369 2300 Bernadette Drive Adventure rides Servicenoodle.com Russell B. Brett 573-442-6190 302 Campusview Drive, Ste. 207 Service locator website 080 Leasing LLC Christopher J. Bell 813-247-5223 2300 Bernadette Drive Hurricane simulator Shotgun Pete’s BBQ Shack Philip G. Peters Jr. 701 W. Business Loop 70 Drive-thru restaurant CoMo Massage/Alison Sower Alison L. Sower 573-355-8826 19 E. Walnut St., Apt. C Licensed massage therapist Studio 1012 LLC Laura Detert 1012 Park Ave. Interior design firm Sunray Daniel Francis Bugnitz 573-529-0026 220 N. 10th St., Ste. 101 Food producer Tink’z Hair A’Peal Charnell Y. Hickem 573-881-7510 101 E. Forest Ave. Beauty salon Total Auto Repair Arthur E. Sims 573-449-6010 3112 Range Line St. Auto repair TY Nails Lanh Ba Thai 1109 E. Business Loop 70 Nail salon Yoga Sol Pollyanne Sweitzer 300 St. James St. Yoga studio Harpo’s Towering Oak Enterprises LLC 29 S. 10th St. Restaurant/bar Jerry Thompson Watercolors Jerry D. Thompson 573-499-1423 110 Orr St. Art Gallery Mudd Room Courtney Hawk 573-441-1683 1103 E. Walnut St., Ste. A Pottery painting The Frame Shop on Orr Street Carla J. McElroy 573-442-7333 110 Orr St. Retail custom picture framing 25 May 29, 2010 Columbia Business Times | ColumbiaBusinessTimes.com NEW BUSINESS LICENSES 26 May 29, 2010 Columbia Business Times | ColumbiaBusinessTimes.com Smart Thinking » Cathy Atkins Is your child a better salesperson than you? If you want to improve your selling skills and strategies, pay close attention the next time your child attempts to “sell” you on something. If you have children, preteens or younger, hardly a day goes by that they aren’t trying to sell you on something: buy them something, take them someplace, relieve them of a chore or other responsibility. The list goes on. And what is their “closing” ratio? I suspect it’s pretty high. Perhaps better than your closing ratio. You might disagree. You might be thinking, “My kids are always asking for things, but I don’t give in to their every request.” That might be true, but let’s analyze it. When kids want something, they plan several avenues of attack — different approaches with different justifications to support their request — especially when it’s a request they suspect you won’t readily grant. So they initiate their first plan. If that doesn’t work, they go to plan B, plan C and so on until you finally give in, perhaps after their fifth attempt. From your perspective, you turned them down four times out of five, but from their perspective, they “closed” the first sale. They just had to ask for it five different ways. Most salespeople accept the first no — or even the first sign of a no — and abandon the effort. Why are most children such good salespeople? Children are not afraid of rejection. In fact, they are truly shocked when you say no. They fully expect a yes. That’s why they’re so persistent. Tell a child he or she can’t have or do something, and be prepared for a barrage of whys, pleases (typically multisyllable) and customary explanations: “But everyone else has a cell phone!” When self-consciousness kicks in, kids work their hardest to avoid rejection and negativity. That selfconsciousness, for most of us, lingers into adulthood. Send a child out in the neighborhood to sell something, and he or she will knock on door after door, up one side of the street and down the other side, until he or she makes a sale. Send an adult salesperson out in the same neighborhood, and he or she will knock on a few doors and, if not immediately successful, will make an “intellectual” assessment about the poor quality of the “territory” and abandon the effort. Children are persistent and creative in their approach. Children are persistent and creative in their approach. The strategy behind their multi-plan attack is to get you to view their request from different perspectives. Their expectation is that one of those viewpoints will provide enough justification for you to grant their request. And they never seem to run out of positions from which to have you judge that request. They’ll let it rest long enough to regroup and try a new tactic. As children we found nothing wrong with that approach. The strategy simply acknowledged the fact that different people see things differently, and some- times it takes an examination from a different perspective to see what another sees. As adults, we “refined” our evaluation of that strategy, labeled it “manipulative” and abandoned it. Too bad. Children are chronically curious. They are not afraid to ask questions, especially, “Why? Where? When? How?” If you turn down one of their requests, be prepared to answer several follow-up questions. As adults, we accept a no and then begin to wrestle with what we did wrong that caused the no. Much of this deliberation occurs inside our own head. Children, on the other hand, stay in the moment, and their natural inquisitiveness kicks in. After a bazillion questions, if they haven’t worn you down, they’ve at least stripped away any logic behind your “because I said so” answer. It’s a great lesson in questioning techniques. And finally, children have gratitude down to a fine art. Anyone who has ever given in to a child’s salesmanship and been met with a kiss, hug and “I love you!” knows exactly what I mean. Yeah, I’m a sucker for my kids. Pay attention to them. Take notes. You’ll not only learn something, but you will also gain a greater appreciation for their creativeness, determination and conviction. Those are pretty good qualities for a salesperson. Wouldn’t you agree? v © 2009 Sandler Systems Inc. Sandler Training is the global leader in sales and management training and consulting. For information on classes starting soon, visit www.savant.sandler.com, or e-mail [email protected] By Katrina Tauchen When University Club of MU’s Farm to Table summit lands in Columbia June 12 and 13, a slew of local, regional and national chefs will be along for the ride. The summit, aimed at connecting culinarians with local growers and producers, will feature two days of demonstrations, seminars and workshops emphasizing sustainability and the farm-to-table movement. “So much of this is about awareness,” said John LaRocca, University Club general manager. “It’s about networking and collaboration.” And to help build that collaborative network, LaRocca and University Club Executive Chef Daniel Pliska are bringing in some big names: Headlining Chef, Walter Scheib: Former White House Chef Walter Scheib started in the White House in 1994 as chef to President Bill Clinton and the first family, and his service continued 11 years and into the presidency of George W. Bush. During his time at the White House, Scheib Scheib’s work covered everything from small family dinners to large formal events, and he was known for utilizing products grown and produced in the U.S. Since leaving the White House, Scheib coauthored a book, White House Chef: Eleven Years, Two Presidents, One Kitchen, and founded The American Chef corporation. His Farm to Table event highlights will include: • Lunch with Walter Scheib (June 12, 11:30 a.m. – 12:45 p.m. and June 13, 11:30 a.m. – 12:30 p.m.; Carnahan Quad Event Tent) • Cooking with Walter Scheib (June 12, 4:45 – 5:30 p.m., Reynolds Alumni Center, Columns Ballroom; June 13, 10:30 a.m. – 11:30 a.m., Farmers Market Stroll Tent) • Reception and Book Signing with Walter Scheib (June 12, 5:30 – 7:30 p.m., Carnahan Event Tent) Ann Cooper: Known as The Renegade Lunch Lady, chef Ann Cooper has been instrumental in the movement toward bettering food and nutrition in American schools. She’s the author of four books, served as past president and board member of Women’s Chefs and Restaurateurs, was Cooper appointed to serve on the U.S. Department of Agriculture National Organic Standards board and was an executive committee member of Chefs Collaborative. Cooper’s involvement in this year’s summit includes an invite-only panel discussion titled “Building a Better School: Model for Feeding Our Children,” which will address Cooper’s approach to transitioning schools from processed to whole foods (June 13, 10 – 11:15 a.m., Reynolds Alumni Center, Don Rey Room). Other events featuring Cooper include: • Improving Our Children’s Nutrition (June 13, 3 – 4 p.m., Farmers Market Stroll Tent) • Meet the Author and Book Signing (June 13, 4:15 – 5 p.m., Farmers Market Stroll Tent) Jonathan Justus: Executive chef of Justus Drugstore, the Smithville, Mo., restaurant he co-owns with his wife, Camille Eklof, Jonathan Justus is no stranger to the farm-to-table movement. In fact, his successful farm-to-table and sustainability seminar at the University Club’s Latin Food Summit last year helped serve as inspiration for Farm to Table 2010. A James Beard semi-finalist for Best New Restaurant in 2007, Justus follows a culinary philosophy that emphasizes sustainability and the 100-mile rule, or using products he can find within 100 miles of his restaurant. His seminar at this year’s summit is titled “Building an Infrastructure of Farmers” and will address building connections among farmers, culinarians and institutions as well as how and where to find unusual and wild foods (June 12, 3:45 – 4:45 p.m. and June 13, 3:45 – 4:30 p.m., Reynolds Alumni Center, Columns Ballroom). Farm to Table’s featured chefs also includes local chefs Craig Cyr of the Wine Cellar & Bistro and Mike Odette of Sycamore. Rounding out the list are chef Bill Cardwell, of Cardwell’s at the Plaza and BC’s Kitchen in St. Louis; Debbie Gold, executive chef of The American Restaurant in Kansas City; Timothy Grandinetti, director of farmstead operations and executive chef of Overlook Farm in Clarksville, Mo., and Overlook Farm in the City in St. Louis; Robert Stricklin, executive chef at the College of the Ozarks; Julie Ridlon, founder of Chefs Collaborative St. Louis; and Dan Wehner, executive chef at The Westside Local in Kansas City. v A portion of the proceeds from Farm to Table will go to the Columbia Farmers Market Pavilion fundraiser, and a portion will go the American Culinary Federation Central Missouri Chapter. For more about the event, visit www.f2tuclubmissouri.com. Farm to Table 2010 is supported by the following businesses and organizations: Commerce Bank KFRU News Talk 1400 AM KOMU 8 Schnucks Columbia Business Times Columbia Home & Lifestyle Jefferson City Magazine Missouri Wines MU College of Agriculture, Food and Natural Resources MU Sustainability Office MU College of Arts and Science Columbia Convention and Visitors Bureau Tin Mill Brewery O'Fallon Brewery Ozark Bottled Water Ronnoco Coffee Liberty Fruits Comfort Suites America's Best Value Inn Super 8 Missouri Employers Mutual Missouri Legacy Beef KBIA Missouri Beef Industry Council Williams & Hussey Eyecare Do you suffer from Dry Eyes? Chronic Dry Eye Disease affects approximately 20% of our population. It is the most common of all eye disorders. What causes Dry Eyes? • The Aging Process – 75 % of individuals over the age of 65 suffer dry eye symptoms • Contact Lens Wear • Hormonal Changes in Women • Environmental Factors – Smoking, wind, cold, air pollution • Side Effects of Disease/Medications What Treatments Are Available? Depending on the intensity of the condition, treatment may be as simple as using artificial tears a few times a day. In more persistent cases, however, prescription dry eye therapies and/or punctual occlusion may be needed to provide long term relief. Contact lens wearers have many options of new materials to improve dry eye symptoms as well. Dr. Shelley Williams and Dr. Scott Hussey offer vast experience in treating Chronic Dry Eye Disease. To determine the appropriate treatment for your individual dry eye condition, it is essential to have a thorough examination to determine the cause and prescribe the appropriate treatment. Dry Eye Checklist RED EYES TIRED EYES DECREASED CONTACT LENS TOLERANCE DRY THROAT OR MOUTH CONTACT LENS DISCOMFORT SEASONAL ALLERGIES ARTHRITIS/JOINT PAIN BURNING ITCHING WATERY EYES FOREIGN BODY SENSATION LIGHT SENSITIVITY SANDY OR GRITTY FEELING OCCASIONAL TEARING CONSTANT TEARING PAIN OR SORENESS IN OR AROUND EYES If you experience three of more of the symptoms listed above, you may be suffering from CDED. Left untreated, your symptoms will most likely intensify, making your daily life unpleasant, or worse, deteriorate your visual acuity. If in doubt, call to schedule your dry eye evaluation today. Dry Eye Disease may be covered by your Health Insurance Provider. We are providers for VSP, Anthem, Blue Cross/Blue Shield, United Healthcare, Mercy, Medicare, Healthlink, & Coventry. Call to schedule your appointment today. Browse our selection of glasses online... www.MyEyedentityEyewear.com 2 2 0 0 Fo r u m B l v d . S u i t e 1 0 2 , C o l u m b i a , M O 6 5 2 0 3 | (573) 445-8780 27 May 29, 2010 Columbia Business Times | ColumbiaBusinessTimes.com U Club’s Farm to Table features some big-name chefs Learning to disconnect Smart phones have become wildly popular since Apple’s iPhone captured the hearts of people of all ages. My husband has an iPhone, my best friend has an iPhone, and one of my employees came to work last week and announced that her 80-year-old grandmother has an iPhone. Even I used to have a smart phone, back when they were just for the busy business professional. And guess what — I hated it. When you have a smart phone, you are always connected. You receive your e-mails on the spot, wherever you are, whenever you want. Seems nice, right? Except I don’t want to be that connected. I eventually let my smart phone go in favor of a plain old cell phone. It doesn’t get e-mails, and it doesn’t surf the net, but if I need to call someone, it gets the job done. And if someone needs to call me, it does that, too. But I don’t even like that very much, so I rarely give out the phone number. One of my husband’s favorite new shows is The Marriage Ref on NBC. It offers a voyeuristic view into other people’s marriage arguments. In many ways, it’s kind of sick, but I have to admit that we enjoy watching it. On a recent episode, one of the conflicts was over a wife’s cell phone habits. Her Blackberry was always abuzz with text messages and e-mails. It had become such an issue that her husband was feeling neglected. I’d feel neglected, too, if my spouse answered texts and e-mails during dinner or while taking a drive. He used to be much worse about doing this but has really made an effort to focus on me instead of his phone. However, the woman on the TV show was even texting during intimate moments with her husband! What could she possibly be saying? Although having a smart phone can be a great convenience, it’s important to remember to disconnect every once in a while. Many health experts warn against technology addiction for the adverse effects it can have on your health, such as headaches, eye strain, stress, insomnia and relationship issues. Aside from all of that, I would suggest disconnecting simply for sanity’s sake. Your brain just needs a break! Let’s work on adopting some basic ground rules. Try shutting down your phone at a few key times: While in bed. Whether you are relaxing with your family, being intimate with your partner or actually sleeping, keep the phone out of the bedroom. Your phone won’t be lonely, and your relationship with your loved ones will be better for it. You might even get a better night’s sleep because you won’t wake up every time your phone rumbles to tell you you’ve received some spam e-mail at 4 a.m. While on vacation. An astounding 83 percent of people check their e-mail every day on vacation, according to a study by AOL. I understand the relief that can come from knowing there are no fires at the office that you need to put out, but remember the No. 1 reason you went on vacation: to get away and relax. So don’t obsess over checking your e-mails, and don’t check so often that you end up working away your much-deserved time away from the office. While out with friends. For me, there is nothing more obnoxious than being out with a friend who talks on his or her phone while we are together. I even had someone cut me off mid-sentence so she could answer the call of another friend. She then proceeded to have a 10-minute chat about her niece’s baby shower while I sat awkwardly across the table and waited for our food. In addition to making your friends feel awkward, didn’t you get together with them so you could catch up and nurture your friendships? Make plans later to hook up with the friend on the phone. While in a meeting. This seems obvious to some, but I can’t tell you how many people I’ve seen go into a meeting wearing a Bluetooth earpiece. In my opinion, it’s just not polite, and it takes your attention away from the meeting at hand. If you are interviewing for a job or trying to sell me something, I can almost guarantee I won’t be impressed by your Bluetooth, and I probably won’t be pleased to hear your phone ringing in your pocket either. If you think your technology dependence is a true addiction, consider cutting yourself off one step at a time. Leave your phone at home one day a week, cut the number of times you check your e-mail in half, or just make sure you aren’t committing one of the faux pas I’ve mentioned above. If you need a little more help, visit Dr. Oz’s website. He has a four-week plan for cutting technology use to a healthy level. v Lili Vianello is President of Visionworks Marketing & Communications, a Columbia-based, full-service advertising, marketing and public relations firm. Contributions to this article were made by Visionworks staff members. Visit them online at www.visionworks.com. 29 May 29, 2010 Columbia Business Times | ColumbiaBusinessTimes.com Getting the Word Out » Lili Vianello photos by jennifer kettler 30 May 29, 2010 Columbia Business Times | ColumbiaBusinessTimes.com NEW BUSINESS update ABOVE: From left, owners Lisa AdamsLloyd, Dale Lloyd, Art Smith and Jack Stanley practice studio lighting techniques in their 2,400-square-foot photography studio. LEFT: Art Smith moves his 22-footlong soft box that he built out of copper piping and fabric. It's used to light cars and large objects. PURE plans to promote photography as art By Jenny Kettler PURE Photography Gallery and Studio opened its doors at 504 E. Broadway on April 23. Already showcasing fine art photography from eight local artists, the new gallery plans to continue supporting the photography community with classes, studio space and professional services. “What we are doing here at PURE Photography Gallery and Studio is unprecedented in the Midwest,” co-owner Lisa AdamsLloyd said. “We are representing local fine art photographers and their work as well as offering professional studio space for photographers of all skill and experience levels.” With more than 100 years of combined photography experience, owners Art Smith, Lisa Adams-Lloyd, Dale Lloyd and Jack Stanley created PURE to promote photography as art. “The opportunity to open a door for artists in a format that is professional is very exciting,” Stanley said. “The idea that we can take photography as an art form and promote it by stepping it up a level is probably the most inspiring part of this.” The gallery offers a vast collection of fine art images for home and office decoration from award-winning photographers such as Lloyd, Woody Woodward, Carry Yonley and Martin Spilker. “If you’re a bank or a shop and need some fine art for your walls, we’re a one-stop shop for that,” Stanley said. Artists selected to be part of the gallery pay a monthly fee to display their work and have access to the studio and conference room facilities. For other artists and photographers in the community, a 2,400-square-foot studio space can be rented out by the hour. Four studio spaces with multiple backdrops and backgrounds and more than $10,000 worth of lighting equipment are available. “You can do cars with our large 22-footlong soft box, interior home shots with our brick wall, fashion photography, product lighting and even film shots with our green screen,” Stanley said. “We created PURE so photographers could get access to the gallery and deliver most of their work and business from this location.” In addition to providing studio and gallery space, PURE has a photographic reference library open to the public. The company offers classes and provides photo walks and photo trips throughout the year. This summer, PURE is offering classes for studio lighting and amateur and advanced photography, as well as a kids day camp. To sign up for classes or to get more information, visit www.pureimaginggroup.com. v Reuter ... continued from Page 19 Chilters, who ended up working for Reuter for six years, said Reuter taught him the ropes of working with mortgages, which was the primary operation of Liberty Financial at this time. He called Reuter a “mentor.” “He taught me from the ground up,” Chilters said. A few years later, court documents state, Reuter’s Far right, Nathan Reuter on a hunting trip. “ambitions grew.” He moved his operation to Columbia and expanded it to include investment opportunities. He bought a strip mall on Green Meadows Road and formed Green Meadows Properties LLC and Bluff Creek Properties LLC in June 2002. He sold the strip mall on Green Meadows and acquired another on Nifong Boulevard, worth up to $3 million. It was around this time that Reuter became acquainted with Daryl Miles Brown. In August 2003, Reuter and Brown formed Vertical Group, under which six subsidiaries were formed. Reuter brought with him to the company three-fourths of Liberty’s staff after that company closed in March 2004. Reuter said in July 2008 in a deposition that he had never checked into Brown’s background. “He walked the walk, and, I mean, the last time I went to the dentist, I didn’t ask for a copy of his diploma either,” Reuter said, according to a transcript. “He’s a dentist.” According to the bankruptcy judge’s ruling, Reuter was impressed by Brown’s fantastic stories — stories about his days playing football for the Kansas City Chiefs, about being a highly competent securities salesman hobnobbing with the rich and famous, about being close with Donald Trump’s “people” and Michael Jordan’s “people.” These were stories that Reuter had retold to potential investors as fact but that later proved to be untrue. One story he passed on to Trom in October 2004, when Trom approached his friend about getting a loan to buy a business, was that Brown had access to both $2 billion in “papers” and a highly profitable trust. Reuter told Trom that through his association with Brown, he could access a low-risk, high-yield investment program that could net him $5 million as long as Trom was willing to fork over an initial investment of $175,000. He was told the money would be used to acquire “standby letters of credit.” Reuter said that he and two other investors would even put up $175,000 of their own money and that the money would be forwarded to a “Dr. B,” or Dr. Bichai, a man whom Brown had vouched for but wanted to keep a secret. In addition, because this investment deal was a “special opportunity,” there would be no contracts, according to court documents. In the three months after Trom wired the money over, he never got his promised payoff. What he did get from Reuter and other officers at the company were excuses: delays resulting from the holiday season, government restrictions on the flow of the euro, Dr. Bichai taking junkets in the Cayman Islands or being too drugged up to sign contracts because of the painkillers he was taking for injuries he received in a car accident — Trom heard it all. Andrew Ryder, an FBI agent involved with an investigation into Vertical, for which search warrants were issued in March 2005, testified in an affidavit that though he was investigating the company, a loan officer there had looked into “Dr. B” after payments were missed. The officer found that there was a federal indictment against a “Dr. B,” a.k.a. Samuel Bichai of Clearwater, Fla., who was charged with more than 80 counts of fraud. The officer had told Reuter about the indictments. In addition, Reuter knew by February 2005 that Dr. B had made off with the money. But Trom would not find out about this until a few months later in May 2005, after more investors were offered a similar deal by Vertical. Reuter then apologized and said he had been duped as well. Reuter also knew at this point that the Missouri commissioner of securities had conducted an investigation into the company in late 2004. In his opinion, Judge Dow wrote that Reuter is “financially successful” and “sophisticated,” with a “sharp business acumen.” photo by jennifer kettler Chilters, whose fiancée lost the largest amount of money of all the investors involved in the lawsuit, said he trusted Reuter with “his life.” “We had Nate’s word,” Chilters said. The investors filed a lawsuit against Reuter in 2006, and in 2007 Reuter lost his representation because the court ruled that his attorneys, who were also acting as counsel for Vertical, could not represent Reuter individually. Thus he could not defend himself against the accusations made in the lawsuit. Reuter filed for bankruptcy protection, which prevented him from paying the damages that the plaintiffs claimed were owed to them. Recouping losses The May 19 decision means a trust fund set up in his wife’s name and his holdings in Bluff Creek Properties and Green Meadows Properties could be liquidated to reimburse investors. In an April ruling, the judge decided that Reuter is responsible for investors’ losses because Reuter knew that he and other officers in the company were not certified by the Missouri Secretary of State office to trade securities, that Brown had participated in “fraudulent business activities” and because Reuter had already expressed that he had trouble trusting Cole. The judge wrote that Reuter had misrepresented himself and the company and had worked to create a “false impression of legitimacy, trustworthiness and credibility.” For the most part, the investors said they are satisfied by the ruling in the bankruptcy court. But they said Reuter got off easy by not getting charged in criminal courts. Chilters said the punishment should have been harsher. “When he’s penniless and broke and has no assets, that’s when justice is served,” Chilters said. According to a transcript of a taped deposition from July 2008, Reuter said he didn’t make any money from Vertical and that the family had a negative cash flow. He sold his house on Woodbury Court for $400,000 and now works as a self-employed carpenter in Columbia. The bankruptcy ruling indicates that Reuter has no disposable income, receives an allowance from the trust fund and has given no indication that he will seek any more lucrative career opportunities. Daniels, Reuter’s lawyer, said the case and the ensuing media attention have “ruined” Reuter’s life. Trom, because of his closeness with Reuter, has been the main point of contact for the news media since the scam made headlines and offered his words in statements released by David Brown, the attorney for the investors. But he said it was a job he would rather not have. At this point, Trom said, he’s lost the anger he once had over the investment scam. “Yeah, it pisses me off,” Trom said. “But I don’t sit and stew over it every day.” Trom, a district sales manager for Trail King, a national distributor of customized semi-trailers used for transporting construction equipment, has been more worried about falling sales numbers from a sagging construction market than the “drawn out process” of trying to recoup his money in the court system. He said he would even forgive Reuter if he approached him today and “owned up” to his role in the loss of his money. Reuter has recently tried to recoup some losses of his own in bankruptcy courts. He asked the judge about a rifle he lent Trom before the investment deal. Trom said that got some laughs in the courtroom and said he intends to hold on to the rifle. “It might be all I ever get,” Trom said. v 31 May 29, 2010 Columbia Business Times | ColumbiaBusinessTimes.com In a meeting with Brown, they learned about an investment opportunity with which the company was involved. When they came back for a subsequent meeting about this opportunity, the plaintiffs said it appeared Reuter was in control of things. He sat at the head of the table, directed the meeting and fielded questions. Fields was also told that it would only be about 30 days before he started seeing returns on his investment. For Fields, it wasn’t just the deal that sounded pleasing; so did Reuter. He said Reuter talked about his family and told him he was Catholic. He told Fields that he wanted to build a church. It sounded like such a sure thing that Fields — who, like many of the plaintiffs in the case, had never invested before — put up $50,000. Like Trom, Fields did not receive the payout he had been expecting on the date he was told he would receive it. When he approached Vertical’s officers about the status of his inMike Trom looks through court documents from a lawsuit that he and eight other investors filed vestment, they offered the against local businessman Nathan Reuter. Trom, who knew Reuter for 12 years and allegedly lost retired insurance agent a job $175,000 in the securities scam, said "If you can't screw your friends, who can you screw? I'm past managing the company’s inangry; at this point I just want to see justice." surance portfolio. But when Fields returned The judge said that though Reuter lost money on the to the company, this time as an employee, things were deal, he did not have the right to be reckless with his different. The company’s computers had been confisneighbor’s money. cated by the FBI, who had already begun investigating Trom said it was more than just recklessness on the Vertical. Brown explained to Fields that it was just a part of Reuter that led to the loss of his money. mistake. “It’s so complex and convoluted,” Trom said. “It’s Amy House, an accountant for Vertical, told the FBI an amazing little scam he pulled.” in May 2005 that Reuter, Brown, Williams and Chuck Bowman, another officer, were known as the “Ivory “We had Nate’s word…” Tower” of the business and that their meetings togethThe other investors named in the lawsuit against er were usually held in secret. Reuter were offered a slightly different deal from When Fields began to work for the company, he Trom. was told that Reuter had resigned. Their money would be wired to an escrow account More red flags were raised for Fields when he bemaintained by Dennis Cole, an escrow agent in Florida. gan to look into the company’s insurance portfolio. He There were promises of big returns with no risk. discovered there wasn’t one. Cole, who had knowledge that Vertical had been “There was nothing there,” Fields said. “There was involved in illegitimate practices, cooperated with ina shell of nothing. Everything was gone.” vestigators when he received federal charges for his Legal troubles for the company began to mount. dealings with Vertical. The Missouri Attorney General’s office filed a lawsuit Chilters and his fiancée, LaDonna Henderson, against the company in May 2005, and Brown was arneeded a loan for a friend to start a convenience store rested at gunpoint in September 2005 at his Columbia and approached Reuter to help. He told them they home for federal wire fraud. would need to front $300,000 to show that their assets Brown is currently serving a 15-year sentence in a were liquid. Then he told them about an investment federal prison. deal that within one month would return their princiReuter was never arrested for anything to do with pal investment, plus $700,000. Vertical. In his 2008 testimony, he blamed the probOn Feb. 1, 2005, Henderson wired the investment lems with the investments on Brown. But investors to an escrow account in Florida. disagree. Later that month, James Fields of Lenexa, Kan., and Fields said he never would have invested in the an associate were shopping for loans to rehabilitate company if it weren’t for Reuter. He said he “trusted houses and heard about Vertical from Rick Williams, in Nate.” an officer in the company. “I would not have been taken if it weren’t for Fields said Williams told him that Reuter could get Nate,” Fields said. Fields in with the “movers and shakers” of trading.
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