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AUGUST 2017 SFBWMAG.COM 7.95 TEDDY MORSE Ed Morse s next gen chairman and CEO M I A M I S N EWE ST WAT E R F R O N T D I N I N G A N D E V E N T S PA C E B O O K T H I S S PA C E C O R P O R AT E E VE NTS S O C I AL C E L E B R AT I O N S AN D M O R E B o o k y o ur s p e c ia l e v e n t a t M ia m i s n e w e st v e n ue o v e r l o o k in g B is ca y n e B a y a n d t h e M i a m i s k y l in e . 6 01 f e a t ure s t wo l e v e l s o f f l e xi b l e e v e n t s p a c e f l o o r t o c e il in g win d o ws a n d a n o ut d o o r l o un g e . DINE WITH US A LA CA RT E C HE F TAB LE LOUNG E A ND BA R Gam e Da y d i n i n g i s o pen t o all H E AT fans be fore d ur i n g a n d aft er g ames . Co me early st a y lat e a n d e n jo y fan favo rit es o r dine in s t y l e in t h e Pr i v a te D i n i ng Ro o m. Sample fro m t h e cra ft be e r w a ll i n th e Decant er B ar o r enj o y mixology sp e c i a lti e s in t h e Tu mbler B ar. G AT H E R AND CHEER G R OU P HO S P I TAL I T Y AN D G AM E TI C K E TS G r o up d in in g a n d m e e t in g s p a c e is a v a i l a b l e in 6 01 s c hic o ut d o o r C a ba n a o r Priv a te D i n i n g R o o m wit h a wa t e r f r o n t v ie w f o l l o we d b y a l l th e e x c it e m e n t o f M ia m i HE AT ba s k e t ba l l . B OOK YOUR 6 0 1 E X P E R I E NC E TO DAY. 2 AUGUST 2017A www.sfbwmag.comM 6 0 1 B I S C A Y N E B LV D M I A M I F L 3 3 1 3 2 7 8 6 - 7 7 7 - 4 2 8 9 A R M O S H E AT. C O C O N TA C T A DA M R A M O S S E N I O R M A N A G E R K E Y A C C O U N T S & S P E C I A L E V E N T S You earned it we protect it For more than 75 years Brown & Brown has met the needs of the mass a uent community. Signi cant personal assets and wealth require a higher level of attention o en with unique coverage requirements not available on standard insurance policies. 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(954) 771-9192 privateclientgroup bb laud.com www.bb laud.com Auto Aircra Bonds Condominium Collectables Flood Health Bene ts Homeowners Liability Marina Personal Property Umbrella Workers Comp www.sfbwmag.com AUGUST 2017 3 4 AUGUST 2017 www.sfbwmag.com ICON LAS OLAS FT LAUDERDALE. 2818 Center Port Circle Pompano Beach FL 33064 P 954.735.8223 18288 Collins Ave Sunny Isles Beach FL 33160 P 305.974.0161 FL State www.sfbwmag.com 000407 Licensed Designer AUGUST 2017 5 6 AUGUST 2017 www.sfbwmag.com TABLE OF CONTENTS 28 COVER STORY NEWS AND FEATURES 16 One liners 32 Hospitality Teddy Morse is the new generation of leadership at Ed Morse Automotive Group Catch up on the news you missed from around the region Dolphins great Kim Bokamper makes his mark in restaurants 36 Feature BBX Capital turned scratch and dent assets into a success story An exclusive SFBW survey finds bankers competing for borrowers 39 Banking SFBW AND PARTNERS 46 Executive Club Executive Club Brickell joins the SFBW roster of events Insights into innovation and strategy from key leaders 50 Veterans of Influence Author George Labovitz explains the power of alignment 48 Executive Roundtable COLUMNS 56 Commercial Real Estate 54 Up & Comer Awards Catch the excitement of the 2017 SFBW Up & Comer Awards gala 61 Sales Strategies 62 People Passion & Profits 63 Talent and Leadership Pompano Beach plans new waterways in innovation district Gerry Webber talks about the good and bad in governance Four tips to help enact progress in your organization 58 Nonprofit Governance 60 Tech Hub Find success with business at the speed of happiness Magic Leap s CEO speaks at eMerge Americas Experts give four key tips on attracting top talent WEALTH 64 Motley Fool A look at the Amazon effect and the challenges with Whole Foods 65 Taking Stock West Palm Beach-based Dycom looks like a can t miss stock BBX Sweet Holdings includes Droga Chocolates THE LAST PAGE 66 History Viewpoint Miami Spice endures after being born during tough times 8 AUGUST 2017 www.sfbwmag.com www.sfbwmag.com AUGUST 2017 9 LETTER FROM THE EDITOR The Next Gen Transitioning between generations can be a gantlet for family-owned businesses. Twothirds of them don t make it to the second generation and another 50 percent don t make it to the third generation according to Forbes. Think of this month s cover story on Ed Morse Automotive Group as a case study on how to achieve that third-generational goal. There were a few takeaways I had on how the company was able to do that despite encountering adversity. One is that the right tone was set by company founder Ed Morse. There wasn t a task he would ask somebody to do that he hadn t already done himself or would do himself says current chairman and CEO Teddy Morse his grandson. No wonder then that Teddy started out as a gofer during his first working summer. The next year he was assigned the hot sweaty job of detailing cars that had just emerged from body shops. Having the owner s grandson toiling in the summer heat sent a clear message to Teddy and other workers about whether the family had a silver-spoon attitude. Teddy was exposed to many facets of the organization. He helped mechanics worked in finance and insurance served as an assistant general manager and then as GM before moving into the corporate office. While there were instances of his father and grandfather yanking his chain which makes for some funny anecdotes there were also the times of reassurance. During his time running Bayview Cadillac Teddy faced the challenge of Editor-in-Chief Kevin Gale working in a dealership while under construction but his father reassured him everything would be OK and he would get through it. Companies also have to be prepared for the unexpected. In the case of the Morses Teddy s grandfather lived to 91 but his father died at 66 last year. However Teddy was already wellschooled. Moreover there are other family members who play key leadership roles. Teddy talks about how much he appreciates them and how smart they are. That s a contrast to some family businesses where internal strife reigns. The Morse family also did careful planning to avoid disruption. I don t know about all of the estate-planning details but Teddy talks about how his family lives beneath its means. I m sure they own some nice cars--they have five Cadillac dealerships--but they aren t living a jet-set lifestyle with multiple homes in exotic locations. Reinvesting in the business always has been a priority rather than milking it. Teddy also indicates he wants to put his own stamp on the business. It wouldn t be surprising to see the automotive group expand into new geographic markets or add new brands to its dealership roster. He s a relatively young CEO and the future for Ed Morse Automotive Group looks bright. Correction The name of Silver Lining Inflight Catering was incorrect in the Up & Comer Awards biography for Mike Linder in the July issue. 10 AUGUST 2017 www.sfbwmag.com www.sfbwmag.com AUGUST 2017 11 LETTER FROM THE PUBLISHER Affordable housing hits the crisis stage A couple of weeks ago the topic of affordable housing came up over lunch. I was appalled at what I learned. In South Florida it s become so bad that we are now in a crisis leading the nation in the highest wage-to-housing discrepancy gap. More than half of our workforce cannot afford to pay their rent and are paying 50 percent or more of their income on housing alone. Forget about saving to buy a home. Call it the dark side of our residential boom but I don t think our business leaders are aware of this problem. I want to bring to light a stark fact. Our Florida Legislature is short changing us. Affordable housing is supposed to be partially supported by the Sadowski State and Local Housing Trust Funds. When someone buys real estate in the Sunshine State a documentary stamp tax is paid on the transaction. That portion is funneled into the Sadowski funds which are intended for affordable housing development but the Legislature is not allocating all of the the funds into housing programs. Instead they are being used for general revenue purposes. In fiscal year 2014-15 Broward County sent nearly 30.8 million in doc stamp tax to Tallahassee and we only got a fraction of it back-- 11.342 million according to the Coordinating Council of Broward. The Coordinating Council compiled its information from multiple sources and SFBW was not able to immediately compile numbers for the other South Florida counties. But the Miami Herald reported that since 2008 lawmakers have swept roughly 1.3 billion from the statewide collected funds of 1.87 billion and moved them into the general fund. It is estimated that there is 292.37 million available for appropriation in the Sadowski Housing Trust Funds for fiscal 2017-18. If this money is used for Florida s affordable housing programs it will create 28 700 Florida jobs and 3.78 billion in positive economic impact in Florida according to the Sadowski Coalition comprised of 30 statewide organizations including the Florida Realtors Florida Home Builders Association the Florida Chamber of Commerce Florida Legal Services and the Florida Catholic Conference. What does this means for employers For one a tough time with recruitment. Employee candidates are continuously turning down job offers to find work in Publisher Gary Press cities with more affordable living options. We ll see more homelessness as families are only one paycheck away from financial distress. And we ll see productivity hit a decline as workers are overly stressed. As the region s business leaders we need to step up and fight the Legislature. We need to lobby together to get our fair share. If we don t the repercussions are too huge. South Florida needs affordable housing for our workforce for the health of our economy and most importantly for our people. Please join me in taking action. Gary Press Publisher 12 AUGUST 2017 www.sfbwmag.com Home is where your bed is Nothing beats the feeling of coming home to a bed you love. That s why we build every H stens bed completely by hand using sustainably-sourced natural materials giving you the secret to being truly well rested. Visit your nearest retailer and experience the difference. hastens.com BRICKELL MATTRESS 1030 SW 8 Street Miami FL 33130 Tel. 305-326-4000 Email Sales BrickellMattress.com Designers Welcome CHAIRMAN AND PUBLISHER EDITOR-IN-CHIEF AND SENIOR VICE PRESIDENT OF STRATEGY Gary Press gpress sfbwmag.com Kevin Gale kgale sfbwmag.com ASSOCIATE EDITOR Andrea Richard arichard sfbwmag.com COPY EDITOR Jason Davis CREATIVE DIRECTOR ART DIRECTORS Melanie Smit Alexander Hernandez Frank Papandrea Evelyn Robles Creative Writers CONTRIBUTING WRITERS Malcolm Berko Gerry Czarnecki Chris Fleck Stephen Garber Timothy Green Martin Lenkowsky Darcie Lunsford Greta Schulz Matt Shore Downtown Photo Fort Lauderdale Patrick Clinton Greg Lovett Thomas Rollo James Woodley Larry Wood Photographers Associate Publisher CLAYTON IDLE cidle sfbwmag.com Managing Director RON MANN rmann SFBWmag.com rlopez sfbwmag.com dsaffer sfbwmag.com lcastle sfbwmag.com JORDAN KNOWLES-BARTLEY jknowles sfbwmag.com LORI CASTLE CHIEF OPERATING OFFICER CONTROLLER Market Directors RICH LOPEZ DAVID SAFFER Sandy Lechner slechner lmgfl.com Josh Wachsman jwachsman lmgfl.com OPERATIONS DIRECTOR Monica St. Omer monica lmgfl.com DIRECTOR OF MARKETING & EVENTS Jennifer Barb jbarb lmgfl.com MARKETING & EVENTS COORDINATOR Estefania Marin emarin lmgfl.com Editorial Advisory Board Bob Birdsong OK Generators President Mark Brown Miami Heat VP of Sales Andy Cagnetta Transworld Business Brokers CEO Matt Dernis Fortune 360 Group Partner William O. Fuller Barlington Group Managing Partner Gerald Greenspoon Greenspoon Marder Co-managing Director Steven Gurowitz Interiors by Steven G. President Michelle Homoky Celebrity Cruises Director of Eastern Sales Rufus James Fort Lauderdale Executive Airport Airport Manager Michael Gorham Brown & Brown of Florida Executive Vice President Patrick Lee Shorecrest Construction CEO Alan Levan BBX Capital Chairman and CEO Rick Mancinelli C3 CEO Neil Merin Merin Hunter Codman Chairman Teddy Morse Ed Morse Automotive Group Chairman & CEO Sam Robbins National Jets President & CEO Pablo Pino TD Bank South Florida Market President Commercial Lending Steven Sadaka Steven Douglas CEO Rachel Sapoznik Sapoznik Insurance CEO Erik Sussman Mass Mutual CEO Jeremy Walls Miami Dolphins CMO SFBW Magazine 3511 W. COMMERCIAL BLVD. SUITE 200 FORT LAUDERDALE FLORIDA 33309 954.377.9470 FAX 954.617.9418 WWW.SFBWMAG.COM Manage Your SFBW Subscription Is SFBW arriving in your office with an outdated subscription label Contact Monica St. Omer at monica LMGFL.com or (954) 377-9473 to give us updated information such as a new executive or someone no longer with your organization. Visit sfbwmag.com to see our digital content and sign up for our weekly newsletter 2016 SFBW magazine is published by Lifestyle Media Group all rights reserved. SFBW is a monthly advertising magazine. All contents are protected by copyright and may not be reproduced without written consent from the publisher. The advertiser is solely responsible for ad content and holds publisher harmless from any error. 14 AUGUST 2017 www.sfbwmag.com ConvenienCe ACCess serviCe In today s global business environment service is essential convenience is mandatory security is vital and time is more valuable than ever. Owned and operated by the City of Fort Lauderdale Fort Lauderdale Executive Airport offers a diverse range of aviation services business resources and amenities that include 4 Full Service Fixed-Base Operators A 24-hour FAA Air Traffic Control Tower U.S. Customs & Border Protection Service Aircraft Rescue and Firefighting Station Downtown Helistop with Lobby 24-hour Contract Security A 200-acre Industrial Airpark For eFFortless travel to Fort lauderdale visit www.FlyFxe.com. www.sfbwmag.com AUGUST 2017 15 ONE LINERS BROWARD Fidelity Investments hosted a ribbon cutting for its new investor center in Fort Lauderdale. Luxury Financial Group a lending company debuted on Las Olas Boulevard. Chinese investment firm Jin Yang Real Estate Corp. paid 4.15 million for a 19 493-square-foot strip mall in Lauderhill. Douglas Elliman Real Estate opened Roland Ochoa director of client relations and marketing at Kelley Uustal law firm poses at the firm s new corporate headquarters in Fort Lauderdale. The American Heart Association s Greater Miami-Fort Lauderdale chapter honored Rita and Rick Case and celebrated raising more than 3 million from the Miami Heart Walk Broward Heart Walk and Broward Heart Ball during the 2016-17 fiscal year. National Jets was ranked as one of the top 10 independent fixed-base operators by Professional Pilot and among the top 50 FBOs by online industry magazine FltPlan.com. the Reserve at the Ranches a custom-home community in Southwest Ranches. Fort Lauderdale s 2UP Technology launched Pitch Investors Live an app that connects entrepreneurs with investors using live-video. Broward College Corporate and Continuing Education department will debut a mini MBA program a six-week executive training program in the fall. Walker & Dunlop structured a 16.5 million loan for the refinancing of the 133 475-squarefoot Radice Corporate Center III in Fort Lauderdale. An affiliate of New York s TH Real Estate acquired the Laurels at Jacaranda Apartments in Plantation for 93 million. Davie-based Sintavia a metal additive manufacturer is planning a 52 125-square-foot plant and headquarters in Hollywood. Hoffman s Chocolates hired Brian Feeney previously with Macy s as its marketing and merchandising manager. Broward County Public Schools Fresh Attitude Week Showcase welcomed a visiting delegation of French food service professionals in early May. Broward Education Foundation s Tools for Schools began a county back-to-school supply drive. The Nova Southeastern University College of Allopathic Medicine was granted candidate status by the Liaison Committee on Medical Education the organization that accredits M.D. programs in the United States and Canada. Maria Hernandez was promoted to chief program officer at United Way of Broward County. BBX Capital acquired It Sugar a Deerfield Beachbased confectionary retail chain founded by Jeff Rubin for 57 million. www.sfbwmag.com AUGUST 2017 17 Entrepreneurs Organization WE WOULD LIKE TO THANK OUR FOR THEIR AMAZING The Entrepreneurs Organization (EO) is a global business network of 11 000 business owners in 150 chapters and 48 countries. Founded in 1987 by a group of young entrepreneurs. EO South Florida chapter is one of the top five chapter in the world with 200 South Florida Members US2 Billion total sales and over 30 000 Employees in South Florida. This October 2017 we will be hosting the east regional US entrepreneur s conference an invitation only event attended by hundreds of leading entrepreneurs. STRATEGIC ALLIANCE PARTNERS FRIENDSHIP SUPPORT Josh Sheradsky Commercial Lending VP 954.233.0554 JSheradsky bbt.com Aaron Reed Shareholder 305.400.7522 areed littler.com Carlos Chinchilla Senior Executive VP 954.609.0816 carlos furmaninsurance.com Joey Givner Founding Partner 305.933.9970 jgivner givnerlawgroup.com Clayton Idle Managing Director 561.601.9177 cidle SFBWMAG.COM Steve Pelkey New Car Sales Manager 954.529.4578 spelkey holmanauto.com Matthew Ragland Partner 815.575.6448 matthew noondalton.com Rachel Barden Profesional Employer Consultant 954.873.4254 rbarden oasisadvantage.com Doug Cohen President 954.683.1443 doug.cohen sandler.com Kevin Preston Commercial Photography 954.357.0553 photos southfloridaphoto.com Heather Keir Vice President & Bank Manager 954.983.7771 hkeir stonegatebank.com Tim Rubin Director of Client Services 954.713.7435 trubin kaufmanrossin.com Mark Abbott Founder & Managing Partner 203.313.7755 mark vthpartners.com 18Excitement and Learning Event Calendar Sponsorship Opportunities EOSOFLO.com AUGUST 2017 www.sfbwmag.com CHANCE SECOND Even Ryan & Kayla needed a See Ryan s and Kayla s national commercial for Debt.com. www.debt.com commercial Visit Debt.com today or call 800-810-0989 www.sfbwmag.com AUGUST 2017 19 ONE LINERS MIAMI-DADE Terra Group will break ground on Coconut Grove s Mary Street Class A office complex. EastGroup Properties plans an 850 000-squarefoot industrial park located at the Florida Turnpike and County Line Road in Miami-Dade County. BVI Airways began offering nonstop service from the Miami International Airport to Tortola British Virgin Islands. Fendell Ventures a new management company opened offices in Boston and Miami. Fortune International Group a real estate development company and Rialto Capital Management a real estate investment firm teamed up to launch a private bridge lender Vaster Capital. Macy s Backstage a discount outlet affiliated with the department store with which it shares a name will debut at Miami s The Falls in the late summer. Keystone Property Group acquired Dadeland Towers South in a sale-leaseback for 36 million. Amazon set-up a Prime Now hub a food delivery service in Wynwood. Cushman & Wakefield negotiated the 27 million sale of a 506 000-squarefoot warehouse and distribution facility in Hialeah. Turnberry Associates closed on a 259 million construction loan for its Turnberry Ocean Club Residences in Sunny Isles Beach. International artist Gail Rieke opened her Zoom Travel Journal Assemblage exhibition at Miami International Airport s south terminal gallery. Cushman & Wakefield negotiated the 61 million sale of Soleste Club Prado apartments in west Miami. Rooftop bar Sugar at EAST in Miami named Chef Ped as its new chef de cuisine. Krogh-Hansen regional business development director. BankUnited appointed Pablo Estepe as vice president and branch sales leader at its Doral branch. Miami Club Rum was awarded the Double Gold Medal and Best White Rum in the World at the San Francisco Spirits Competition. Planet Fashion presented Swim Weekend Miami 2017 at SLS South Beach and Hyde Beach. Hammer & Nails a men s nail shop and grooming salon opened in Midtown Miami. Jeremy S. Larkin was named chairman of the NAI Global 2017 members leadership board. The Fairchild Coconut Grove a waterfront condominium sold two penthouses totaling 8.5 million. Cushman & Wakefield negotiated the sale of Cottage Cove apartments 10 NE 188th St. Miami for 50 million. Tri-Continental Enterprises proposed a seven-story office building at 12955 SW 87th Ave. South Miami. Berkel a 119-year old Italian brand that makes food slicers opened its North American headquarters in Miami. Coral Gables Premier Assurance Group appointed Hans Miami International Airport celebrated the launch of Avianca Brasil s Sao Paulo service with a ribbon-cutting. www.sfbwmag.com AUGUST 2017 21 22 AUGUST 2017 www.sfbwmag.com www.sfbwmag.com AUGUST 2017 23 ONE LINERS PALM BEACH The Gardens Mall added five new stores and two restaurants to its portfolio. Lion Country Safari might be sold later this year the Palm Beach Post reported. Four Seasons Palm Beach opened a medical spa led by physician Harold Bafitis offering plastic surgery. Toronto-based Northbridge Investment Management paid 33.27 million for the Shoppes at Boca Greens. Billions of dollars could be saved if Congress revises a law allowing regulators to be more aggressive in reducing losses from insolvent banks according to a recent study co-authored Aerospace Technologies Group a developer and supplier of window shade systems for aviation has been named a runner-up for the Florida Sterling Manufacturing Business Excellence Award. Avison Young closed on the 3.6 million sale of ERC Center a multitenant office in Boca Raton. by a faculty member from Florida Atlantic University s College of Business which was published in the Journal of Banking & Finance. Boca Raton-based Hollander Sleep Products a bedding products manufacturer acquired Pacific Coast Feather Company. The Business Development Board of Palm Beach County was recognized as one of the 58 economic development organizations accredited by the International Economic Development Council. Syracuse-based pizzeria Twin Tree III opened in Palm Beach Gardens. Rodney B. Martin was named executive chef at the Palm Beach Convention Center. Kaufman Lynn Construction celebrated Take Your Dog to Work Day by welcoming 20 canines to its Boca Raton headquarters to benefit Tri-County Animal Rescue. Delray Medical Center a 80 million hospital with a rooftop helipad celebrated its opening with a ribboncutting. Greg Black joined law firm Gunster s government affairs law and lobbying practice. Developer Minto broke ground on six model homes in Westlake Palm Beach County s newest municipality. www.sfbwmag.com AUGUST 2017 25 26 AUGUST 2017 www.sfbwmag.com NEW STADIUM NEW LUXURY EXPERIENCE As par t of the 50 0 million new stadium modernization all suites will be remodeled for the 2017 season. Enter tain your top clients prospec ts and employees with best-in- class benefits and amenities. F O R M O R E I N F O R M AT I O N P L E A S E C O N TA C T D AV E B A L D W I N AT 3 0 5 - 9 4 3 - 6 6 5 4 O R D B A L D W I N D O L P H I N S . C O M . www.sfbwmag.com AUGUST 2017 27 Teddy Morse 28 AUGUST 2017 www.sfbwmag.com COVER STORY Transition Time BY KEVIN GALE PHOTOGRAPHY BY LARRY WOOD T Teddy Morse becomes the third-generation leader at Ed Morse Automotive Group he view from the top is different. Just ask Teddy Morse the CEO and chairman of Ed Morse Automotive Group. When he was executive vice president his father Ted Morse often would ask his opinion. Teddy often gave definitive thoughts on what should be done. Sometimes his father would act on Teddy s advice and other times he would wait to take action. Teddy could get frustrated. That dynamic changed when his father died after a lengthy illness in 2016. That left Teddy in the position of running a 1 billion company with 15 dealerships and 900 employees. When it becomes you making the decision and it becomes the final say I understand now about taking the extra day the extra night to think about what you are doing he says. We have close to 1 000 employees and you figure every person is responsible for maybe a spouse and a couple of children so what is that--3 000 to 3 500 people who rely on our company doing well That s a sobering thought and that s something that I didn t have when I was younger. I now have that ability to pause. www.sfbwmag.com AUGUST 2017 29 Three generations of Morses Ed Teddy and Ted There have been plenty of learning experiences over the decades of working with his father and his grandfather who founded the company. He just didn t expect to be running the company in his early 40s. I lost my grandfather at the age of 91 in 2012. I always figured OK that s the family genes. I m going to have my dad until at least in his 80s. Unfortunately things didn t work out that way Teddy says. However Ed Morse Automotive Group has passed two of the biggest challenges in family business--transferring control to a third generation. Forbes says family businesses generate more than half of the U.S. gross national product but less than a third survive the transition to a second generation. Another 50 percent don t survive the transition from the second to third generation. With careful planning the automotive group avoided falling victim to estate taxes ripping the business apart when Ed and Ted died in relatively quick succession. How they did that was my family doesn t take out the money. We don t have houses in Aspen and another one in the Bahamas or St. Barts. My grandfather and my father and I try to live beneath our means Teddy says. You take the money and you put it back in the business. You use your money to make money. THE BEGINNING The roots of the automotive group go back to 1946. During World War II Ed Morse earned a Distinguished Flying Cross as a navigator on a B-25 when the pilot and co-pilot were shot and he managed to fly the bomber back to its base in New Guinea. Ed moved to Miami Beach took a job as a doorman and helped procure rental cars. He saw a business opportunity and started renting out cars himself. He and his father opened Morse Rental Cars in 1946 in Miami s Little River neighborhood. When the fleet grew to 2 000 vehicles it merged with National Car Rental where Ed became CEO his obituary says. In 1961 Ed entered the retail business by buying a Ford dealership on 163rd Street in Miami. In 1968 he sold the Ford dealership and bought a Chevrolet dealership in Lauderhill which became the nation s No. 1 Chevy dealer. His second major move was the 1979 acquisition of what s now known as Bayview Cadillac. Two years earlier Ed had sent condolences to the widow of the dealership s owner Conner Brown telling her how much he appreciated her husband s advice over the years and how he always wanted to be a Cadillac dealer too. Two years later she was ready to sell. She told my grandfather that the only one she would sell to was him because she was so touched by his note Teddy says. Ed Morse has five Cadillac dealerships now. Eight additional dealerships were added in the 1980s and 20 more were added in the 1990s. In the late 1980s and early 90s Ed Morse Automotive was the first dealership group to exceed 1 billion in fleet sales Teddy says. Before the advent of publicly traded dealership groups such as AutoNation Ed Morse was the largest U.S. dealership group. SCHOOL OF HARD KNOCKS While Teddy might have been an heir apparent when he was growing up in Coral Springs his dad made him work his way up. The summer before his freshman year his father asked if he had a summer job. I remember laughing and saying I don t have a job Teddy recalls. He said Yes you do. You are going to be a porter. I m not doing that. The [expletive deleted] you are not. Young Teddy mopped floors put plastic on the seats emptied the trash and acted as a general go-fer. The next summer he got to detail cars coming out of the body shop with a 40-pound buffer to get rid of overspray. I remember my dad one day pulls up 30 AUGUST 2017 www.sfbwmag.com COVER STORY COVER STORY in this Corvette. He rolls down the window. Hey it s lunchtime. I said Great. I put the buffer down and wipe the sweat from my face. He s like No no no. You have cars to do. I m going to lunch. I just wanted to know if you wanted me to pick up McDonald s on my way back. Teddy gave a profane response. He just laughed and ... drove off. Teddy went on to work as a parts driver technician assistant and assistant service writer. After going to Northwood University (now Keiser) he started selling cars at the Honda dealership. He later handled finance and insurance and became assistant general manager at the Cadillac dealership in Delray Beach. His first GM job was at Bayview Cadillac in April 2008. Not only was the economy imploding but the dealership was undergoing a major renovation. Gas spiked to 4 a gallon. I have no showroom and my whole inventory is covered with dirt Teddy says. I remember calling my dad and said Did I do something to piss you off He laughed at me and said Just relax. If you get through this the rest of your career will be cake. The cake actually got served up pretty soon since the dealership was named Cadillac Dealer of the Year twice during the four years Teddy was GM. The honor was given to 20 out of Cadillac s 900 dealers. LESSONS LEARNED When Teddy s grandfather wasn t giving Teddy a hard time for not wearing a tie he also taught him lessons. One was Be understanding but hold people accountable. They are accountable for what they say and what they do. But it starts with you. You can t hold other people accountable unless you do yourself Teddy says. His grandfather wouldn t ask or tell anybody to do something that he wouldn t be willing to do or hadn t already done himself Teddy says. Teddy had to lead by example too. He remembers dates talking about weekend parties. His response was always I ll let you know. While the dealership closed at 9 p.m. he could end up staying until midnight to work out a deal. He joined the corporate staff in 2012 as director of advertising and marketing. Teddy started running the company as executive vice president during his father s lengthy illness but he has plenty of other family members on his team. One cousin Brian Danahy is GM of Ed Morse Cadillac in Tampa which is a Cadillac Dealer of the Year along with the Ed Morse locations in Sunrise and Fort Lauderdale. Another cousin Richard Danahy is director of dealership devleopment. His sister Catherine Martinez is an e-commerce consultant. It may have skipped me but a lot of my family is incredibly intelligent. I just hope to ride on their coattails says Teddy. In describing his thought process on making key decisions Teddy uses a golf analogy. He wants to make sure decisions stay on the fairway and avoid the rough. What I don t want to do is have that thing slice out of bounds to where there is no return and you have lost the ball he says. HOPES FOR GROWTH Teddy wants to grow the company. He s interested in dealerships that sell Lexus Audi Volvo and Subaru vehicles. He still loves Cadillac but wishes it had an entry-level small SUV. Ed Morse is clustered in South Florida and the Tampa Bay area. Teddy would like to get into the Orlando and Southwest Florida markets and maybe have a dealership in another state. While his father and grandfather shied away from going out of state technology these days makes it much easier to monitor how a distant dealership is doing Teddy says. He looks at an array of daily reports such as unit sales total grosses average grosses per vehicle finance and insurance operations service parts and body shops. He believes in the three P s Product people and process. Customer satisfaction surveys are wildly important he says. If the customer is not totally satisfied completely satisfied you ve got a problem with the manufacturer. There are some challenges for the industry. Some millennials seem content with online interaction with their friends like public transportation and delay getting a driver s license. Some futurists expect people will stop owning cars and just summon a driverless car when needed. Teddy counters that by saying cars represent freedom and the type of car someone buys is often an extension of their personality. He personally enjoys the roar of the engine when he presses on the accelerator. Your phone can only take you so far he says. It can take your eyes far away but it can t take you. There is a difference between seeing things and experiencing things. A historic photo of Ed Morse Chevrolet in Lauderhill www.sfbwmag.com AUGUST 2017 31 Bo Knows Business Dolphins great Kim Bokamper makes a name for himself in the restaurant world BY KEVIN KAMINSKI PHOTOGRAPHY BY JAMES WOODLEY T wo years ago Kim Bokamper was sitting with a small group of high school students before an event on the west coast of Florida. The students each of whom would receive a college scholarship that night from the host charity were given time prior to the ceremony to chat with the former Miami Dolphins defensive standout and another retired professional athlete. Two other ex-players were supposed to be there but hadn t shown. One of the scholarship recipients turned to the man who played his nine-year NFL career under head coach Don Shula and asked him what he felt was the key to being successful. I said This is going to sound really simple to you but I believe it Be on time Bokamper recalls. If you show up late for me you re telling me that your time is more valuable than my time. And I don t agree with that. Fifteen minutes later in walks the other two guys. For me that was the snapshot. Two guys are early both he and I are successful in our post-career businesses. Two guys walk in late neither had a job and both were struggling financially and personally. My father was career Navy. My brother was career Navy. You combine growing up in a Navy household and being coached by Don Shula If you learn nothing else it s to be on time. From his seat in the back room at Bokamper s Sports Bar & Grill in Plantation--one of seven South Florida restaurants that will bear his name by the end of 2017--it s evident that Bo has learned about more than just punctuality since calling it an NFL career at the end of the 1985 season. What s not as evident at least to those outside his inner circle is the heartache that Bokamper has shouldered over the past three years even as his restaurant group PDKN Holdings (which he owns with partners Patrick Kavanagh Damon DeSantis and Noel Cullen) has flourished. In February 2014 Colleen Bokamper s wife of 33 years and mother to adult daughters Kourtney and Kimberly died after a lengthy battle with colon cancer. She was 57. Every time I walk into this Plantation restaurant I think of her says Bokamper of the first Sports Bar & Grill which opened in 2008. We re a Plantation family we ve lived in the same house for 30 years. We both spent so much time here. We d come in and she would run into 20 people that she knew. She loved that. ... Until [cancer] touches you it s hard to understand the magnitude. 32 AUGUST 2017 www.sfbwmag.com HOSPITALITY Bokamper at his Sports Bar & Grill in Fort Lauderdale www.sfbwmag.com AUGUST 2017 33 As much as there s no looking back in terms of where his burgeoning restaurant empire is going it s clear in speaking with Bokamper that the past in many ways can t help but inform his present. STARTING FROM SCRATCH The funny thing about being in the NFL is that you re making a lot of money relative to whatever era you played in Bokamper says. Meanwhile your contemporaries have graduated college worked a few jobs and have found their niche. By the time I retired at 31 they were just starting to make their ascent. I came out of football behind the curve as far as that s concerned. I needed to catch up. The 6-foot-6 defensive lineman linebacker--who still looks fit enough to take down a quarterback or two at age 62--had a plan. He would spend the rest of the 1980s learning how to work in the 9-to-5 world. Bokamper took a job with the golf cart company E-Z-Go where he became a top salesman he bought and sold an Interstate Batteries distributorship and for a spell he sold municipal bonds and managed portfolios. Along the way he accumulated golden nuggets about running a business customer service and managing people and finances. Still when South Florida radio station WIOD asked him to do a Dolphins pregame show in 1990 an invitation that eventually led to his own show Bokamper saw an opportunity to bank on the one thing he knew better than anyone else. The constant during those years in business involved inventory he says. I had to have batteries to sell. Golf carts to sell. Bonds to sell. And there was a frustration level at times when the inventory wasn t available. If the factory for example was backordered and wasn t producing enough of the batteries I needed then I was losing sales. When I started doing radio I thought that there was one thing I could count on 100 percent. That s me. I know what I can do. I know how I m going to react. So I started to brand myself. I decided to become my inventory. Television would find Bokamper much the same way radio 34 AUGUST 2017 www.sfbwmag.com HOSPITALITY did. An invitation by CBS4 in Miami to analyze Dolphins games on its Sunday night wrap-up show opened the door to a lengthy run as the station s sports anchor before he retired in 2015. In all Bokamper would spend a combined 25 years as a radio and television broadcaster. By the time that P.J. [Kavanagh his PDKN partner] approached me about the restaurant business [in the late 2000s] all the things that I had done were coming together Bokamper says. My name was out there. I had built a brand on radio and TV. I did a lot of community service. So when the business presented itself the foundation was there. I just needed something to put on top of it. The local restaurant landscape is littered with failures including projects attached to some of the biggest names in South Florida sports (the Dolphins Dan Marino and former Miami Heat player Dwyane Wade among them). But the Shula years had seared something else into Bokamper beyond being prompt. We learned about [the benefits] of preparation first and foremost he says. So that when you step onto the playing field-- or into that restaurant--you re ready to be successful. To that end Bokamper did his homework. He picked the brain of friend and former teammate Bob Brudzinski whose Bru s Room sports bars were popping up across the tri-county area. He and his partners researched ways to hedge their bets--which is why PDKN owns the land on which four of its five current restaurants sit. If all else fails Bokamper says you still have the real estate. As one would expect from a Shula disciple Bokamper and his partners also left no stone FOOD FOR THOUGHT unturned when it came to the details that would distinguish the brand. There would be multiple bars state-of-the-art sound systems varied affordable and high-quality menu items and TVs as far as the eye could see. Not only that but they would be perfectly positioned. When we were building out the Plantation restaurant we hung up cardboard on the outside deck facing [Pine Island Road] where the TVs would be and then we drove by Bokamper says. We wanted them at just the right height so that cars couldn t miss them. Someone told us that [tens of thousands of cars] pass through that intersection. If that s the case our best advertisement would be the activity on that deck. Even as the brand has expanded to Naples and Estero on the west coast and Miramar and Fort Lauderdale on this coast Bokamper s maintains the neighborhood vibe for which it has become known. We had a woman whose son was a walkon with Syracuse basketball a point guard Bokamper says. He didn t play much except for mop-up time. His mother started coming in. She didn t have the money to travel and see Syracuse in person so her only resource was to come into Bokamper s. We gave her a special seat every time Syracuse played later I got the son to sign a picture to hang on our wall. To be able to do those kinds of things for people that s special. As busy as he is with two new restaurant concepts--Bo s Beach House (a casual spot on Fort Lauderdale Beach) and a yet-to-benamed upscale restaurant on Las Olas (with small plates sophisticated fare high-end cocktails and even a sommelier)--Bokamper finds time to support local charities especially the Dolphins Cancer Challenge which raises research dollars for Sylvester Comprehensive Cancer Center at the University of Miami. Asked if focusing on the charity work and his business pursuits have helped him to deal with the loss of his wife Bokamper says yes and no. What affects me most ... is that I just wish [Colleen] was here to enjoy the fruits of our labor. Dolphins Stock Up or Down Bokamper weighs in on the state of the Miami Dolphins heading into the 2017 season. The past You look at the teams that are consistently great in the NFL and it all starts at the top. There s been so much turmoil at the top in the decades since [coach Don Shula]. Can t keep a coach. Can t keep a general manager. Ownership has changed. There s no patience today. If you don t get it done by the third year we re going to run your ass out of town--that s no way to build a foundation. The present I m as optimistic now as I ve ever been about the whole organization from [owner] Stephen Ross on down. The guys they re drafting are good people solid citizens well-spoken not cocky. That s consistent with the guys in the locker room now. There s been a major culture change in that building. And I think it s going to take hold. www.sfbwmag.com AUGUST 2017 35 Droga Chocolates is one of five chocolate wholesalers acquired in 2014 Bouncing Back BY KEVIN GALE Alan Levan How BBX turned scratch and dent assets into success Editor s note SFBW s July cover story discussed the legal saga of banker Alan Levan. This article covers how he s found success after the recession. Chairman and CEO Alan Levan had two key reasons to celebrate at the annual shareholder meeting of BBX Capital in May. One was being fully cleared after 10 years of litigation surrounding BankAtlantic Bancorp. The other was celebrating the five-year anniversary of BBX Capital which had just seen its shares hit a new peak. On July 6 BBX hit another milestone when it announced its class A shares would start trading on the New York Stock Exchange under the symbol BBX. BBX s legacy companies Bluegreen Corporation Levitt Corporation and BankAtlantic Bancorp once all traded on the NYSE. While many banks failed during the Great Recession Levan in 2012 sold BankAtlantic s 68 branches 3.3 billion in deposits and 2.1 billion in loans to BB&T. BankAtlantic Bancorp which changed its name to BBX Capital realized a gain of 307 million and kept 600 million in what he calls scratch-and-dent assets. The regulators did not like the banks having nonperforming loans on their books. We kept insisting to the regulators that these issues were market-driven not loan-specific-driven so all we had to do was wait until the market turned and all this real estate would be golden says Levan who turned out to be right. Some investors stood by the company and bought millions of shares for 35 cents a share in 2009 Levan said at the meeting. The day before the meeting shares were trading at 7.38. Those who bought a million shares for 350 000 during the dark days of the recession had a 7 million profit. To realize value from the 600 million in assets BBX commenced 92 commercial foreclosures and lawsuits and collected more than 100 million in 36 AUGUST 2017 www.sfbwmag.com FEATURE The Fountains in Orlando is one of Bluegreen Vacations properties judgments. It monetized 481 separate real estate assets and launched 19 joint venture real estate developments. BBX teamed with some of South Florida s best-known residential developers including Joel Altman Armando Codina and Jim Carr. It also teamed with Stiles Retail Group to develop Gardens on Millenia in Orlando. The amount of developable land almost doubled when part of a lake was filled in with 10 000 truckloads of filler Levan said. They say they don t make land anymore. We made land. Levan has steered clear of the condominium market which he thinks is overheated but says apartments and single-family homes are still strong. Another key part of BBX is Bluegreen Vacations which was hammered during the recession. BFC gained a 5 percent stake in 2005 and reached 52 percent ownership in 2009. In 2013 BBX got the rest of the shares. Our EBITDA [earnings before interest taxes deductions and amortization] is virtually half of what we paid for the entire company over a 15-year period Levan says. The company is listed on the books at 267 million but common industry valuation metrics indicate it s worth between 1 billion and 1.25 billion Levan says. He lauds Bluegreen s management team and alliances that put sales kiosks in Bass Pro Shops Simon Properties malls and Tanger Outlets. Choice Hotels loyalty program also refers customers. BBX also has made investments in an array of middle-market companies that had some elements of distress when they were bought Levan says. Renin a Canadian-based door and d cor products company was losing money when BBX and Levan s BFC Financial (which merged with BBX in 2016) bought it in 2013. Renin lost more than 2 million a year in 2015 and 2014 before taxes but made 857 000 in 2016. It was also named millwork vendor of the year for Lowe s. BBX has developed a niche with candymakers wholesalers and retailers--perceiving a fragmented industry that s ripe for consolidation and growth. That started with a 2013 investment in Hoffman s Chocolate which makes candy in Greenacres and sells them at retailers. In 2014 BBX acquired five chocolate wholesale companies. BBX Sweet Holdings website recently listed Anastasia Confections Droga Chocolates Helen Grace Chocolates Kencraft Candy The Toffee Box and Williams & Bennett. In June BBX purchased a 93 percent stake in Deerfield-based It Sugar for 57 million. It Sugar gives BBX a national footprint with nearly 100 stores including 12 in South Florida. BBX in 2016 bought the franchise rights in central and southern Florida for MOD Pizza which makes artisanal pizzas on demand. BBX plans to open four MODs this year and then accelerate growth over the next five years Levan says. The BBX annual report indicates 60 MODs are planned for over seven years. Many of BBX s assets do not generate income on a predictable basis and the company s goal is to build long-term shareholder value Levan says. Since earnings may fluctuate the company doesn t provide quarterly guidance. The CEO who had to fight class-action lawyers and the SEC also says it s too dangerous and risky. BBX has expanded Hoffman s Chocolates www.sfbwmag.com AUGUST 2017 37 Concierge-style banking that is all about you and your business. Commercial Loans and Lines of Credits Residential Lending Deposit and Cash Management Services Personalized and Dedicated Banking Team 1567 San Remo Avenue Coral Gables FL 33146 T 305 666 8488 396 Alhambra Circle Ste 255 Coral Gables FL 33134 T 786 483 1757 Loan Production Office 1900 Glades Road Suite 201 Boca Raton FL 33431 T 786 483 1757 Opening August 2017 5100 PGA Blvd. Suite 101 Palm Beach Gardens FL 33418 T 561.868.9040 www.professionalbankfl.com 38 AUGUST 2017 www.sfbwmag.com BANKING Amid tough competition for borrowers regulations cause concerns BY KEVIN GALE Bankers Sound Off If your business is looking to borrow money now is a good time according to 16 South Florida bankers surveyed by SFBW. Banks have recovered from the recession and competition is fierce for quality borrowers many of the bankers say. The number of community banks has shrunk dramatically and bankers expect that trend to continue. Banks entering the region will continue to buy existing banks and some banks in the region are looking for acquisitions. And most say the regulatory environment is overly burdensome particularly for community banks. Here are highlights of the answers we received from the survey responses. What is the general state of banks these days Mark W. Thompson executive vice president and regional president at CenterState Bank Banks are doing well. The economy is expanding and we are again seeing the net in-migration of people in Florida that serves as a tide to lift all boats. Add in the prospects for increasing interest rates and a willingness to look at common-sense regulatory adjustments for community banks in particular and the trajectory looks to be on a continued path of expanding margins and growth in balance sheets. Guillermo G. Castillo managing director South Florida region manager JPMorgan Chase Given the diversity in size of businesses in the market South Florida is seen as a high-growth market for Chase since we are a global firm and able to serve businesses of all sizes. Keith Costello president and CEO First Green Bank I would say that it s the best it has been since before the Great Recession. While competition has become much more intense the Florida banking market is extremely dependent on the real estate cycle. While there are pockets of excess for the most part the market is in good shape overall. As a result banks problem loans are at the lowest in 10 years. Angel Medina Jr. president and CEO Gibraltar Private www.sfbwmag.com AUGUST 2017 39 Eddy Arriola Bank and Trust The industry continues to be challenged by decreasing margins declining noninterest income opportunities and excessive regulation. Al Peraza executive VP and chief financial officer Mercantil Commercebank The industry took quite a bit of time to address the issues of the Great Recession but the consequence has been a healthier banking system. Of course ongoing historically low interest rates coupled with growing regulatory burdens have compressed profit margins. But as a whole we have great confidence in the industry. Carlos R. Fernandez-Guzman president and CEO Pacific National Bank Most banks have now fully recovered from the most recent financial crisis but the challenge continues to be profitability. Interest margin compression due to low rates and the rising overhead due to excessive regulatory burden continue to negatively impact the bottom line. Is your bank planning new branches Tony Coley South Florida regional president BB&T South Florida is a significant growth market for BB&T and we are always looking for ways to expand. Many common day-to-day banking needs are served through digital platforms and handled in a self-service manner. However clients still want access to a banker when they need one and those bankers are at branches. We have grown in South Florida through acquisition and our branch network is extremely important to our growth goals. Thompson CenterState It is difficult to justify the costs of branch expansion on a de novo [newly created] basis. Most all of our branch expansion will come in the form of mergers and acquisitions. Castillo Chase We plan to open 16 new branches in Florida this year and enter new markets in Ocala and Gainesville. We are continuing to look for opportunities to expand our presence in South Florida over the next two years. Joseph B. Jay Shearouse III president and CEO First Bank of the Palm Beaches Yes in Wellington with groundbreaking later this year. Costello First Green Yes. We just purchased land on the south side of Davie Boulevard just east of U.S. 1 in Fort Lauderdale to build a South Florida headquarters which will be about an 8 000- to 9 000-square-foot green structure that will be much more than a branch. It will house our South Florida team as well as serve as a hub for the community. Medina Gibraltar Gibraltar Private will be relocating its South Miami relationship office to a new signature building in South Miami in 2018. Rick Kuci president and CEO Grove Bank & Trust Yes. Grove Bank & Trust is considering Tony Coley mergers and acquisitions as they become available and de novo branches and loan production wealth management offices in the tri-county area. Peraza Mercantil We recently opened a new banking center in Pembroke Pines to serve our growing customer base in Broward County. Our near-term plans include new banking centers in Coral Springs and Katy Texas. The bank also looks for opportunities to upgrade our current facilities based on the needs of our growing customer base. Included in those upgrades is the relocation of two current banking centers (Biscayne and Lantana). A. Alfonso Macedo president and CEO Ocean Bank We recently relocated our branches in Pinecrest and Weston to upgraded locations. Abel Iglesias president and CEO Professional Bank We expanded our footprint into Palm Beach County at the end of last year. We opened a loan production office in Palm Beach Gardens that will transition to a full-service branch on PGA Boulevard later this summer. Earlier this year we opened an LPO in Boca Raton and are actively looking at additional LPO opportunities in the tri-county region. Pablo Pino South Florida commercial market president TD Bank Selectively in certain metro markets. In general the new stores are smaller and at times co-branded with TD Ameritrade. What innovations and technology are you using to grow Thompson CenterState Advanced ATMs that allow for multipurpose usage together with the ability to interact with a human via video conference is the future we are just beginning to see. Castillo Chase We are upgrading our ATMs to perform even more self-service transactions. You can also take out cash in multiple denominations at more than 3 000 of our new ATMs. Pretty soon you won t even need a card to use the ATM. All you ll need is a one-time passcode through our mobile app. Costello First Green The discussion about blockchain bitcoin and distributed ledger are the next big thing and it s probably not that far off. Peraza Mercantil We upgraded our mobile banking platform with features that offer our customers a convenient easy and more secure way of banking. Some of the new features include mobile check deposit Touch ID fingerprint sensor technology and Apple Watch functionality. Luis de la Aguilera president and CEO U.S. Century Bank Internally we are migrating the bank to a paperless platform and we have invested in data analytics technology significantly improving our speed access and management of data. We are also reaching beyond our geographies because of Mark W. Thompson Jay Shearouse Keith Costello 40 AUGUST 2017 www.sfbwmag.com 100 W E W I L L D O N AT E TO F R I E N D S O F B I R C H S TAT E PA R K to help in their efforts to preserve conserve and enhance Hugh Taylor Birch State Park w he n you me nt ion t his ad a nd o pe n a new account w i t h 8 0 0 d ire c t d e posi t pe r son al or bu sine s s . 22 MONTH HYBRID FLEX CD Flexibility Made Smart. ADD TO Make additional deposits in increments of 100 up to one-half the initial principal balance. 1.60 % 1.25% APY with direct deposit checking account or without checking APY account WITHDRAW FROM One withdrawal of up to one-half the initial principal balance without penalty during the original term. 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Promotion may end at any time at First GREEN Bank s discretion. www.sfbwmag.com AUGUST 2017 41 our electronic and remote banking capabilities. For example homeowners associations in Palm Beach a market where we have not invested in brick and mortar are now part of our portfolio. Can we expect more consolidation among community banks Thompson CenterState Consolidation will continue as it is too hard for small banks to make the economics work from a regulatory compliance point. Also many banks that weathered the Great Recession are now tired of continuing to try and push the rock up the hill. Given the recovery in stock values there is a better opportunity to sell. Costello First Green Yes We have gone from over 300 banks headquartered in Florida pre-crash to less than 130 today. Veronica Birch Flores executive vice president First National Bank of South Miami Sadly I think that is the reality of our times. It is difficult to keep up with the increasing regulatory burden. In addition the return on equity is just not there. In 1996 there were more than 12 000 community banks and today there are just over 5 000. Medina Gibraltar While technology has become more affordable it has not offset the sharp rise in the cost of doing business for community banks in general and therefore consolidation will continue as a way to address shareholder expectations of profitability. Pino TD Bank Most likely. As larger or international banks want to get into the Florida banking sector smaller banks will be a target. Can we expect more new community banks in the future or has that era passed Thompson CenterState Hard to say but until the [merger and acquisition] opportunities dry up it is economically more feasible to buy an existing bank bring in new capital and try to grow an alreadyestablished base than to tie up the necessary capital it takes to de novo a new bank and wait the six to seven years or more it might take to grow sufficiently to allow for a return on capital that makes sense. Shearouse FB Palm Beaches Yes but slowly. As of the end of last year only two banks in the country have filed for a new charter in the last seven years nationwide as compared to more than 100 new charters per year in the mid-2000s Costello First Green I recently was asked by FDIC Chairman Martin J. Gruenberg to serve on a de novo bank panel put together to encourage new bank formation. The problems go beyond regulatory and are more economic. Still I believe that there will be new banks formed as creative solutions are found to compensate for the large initial capital requirements in Veronica Birch Flores Angel Medina Jr. Rick Kuci the first three years. Medina Gibraltar As consolidation continues and local banks are acquired by out-of-state and even out-of-country institutions we will see opportunities for new entrants if the remaining community banks are not sufficiently proactive and responsive to the local community needs. Kuci Grove Yes I expect there to be new community banks established on a limited basis. There have been new application requests filed with the South Florida Federal Reserve. Javier Holtz chairman and CEO Marquis Bank There are some new bank formations taking place now but they will certainly not keep up with the pace of consolidation. Peraza Mercantil The industry is hopeful that the regulatory bodies will somewhat ease the barriers that have led to few new banking charters being granted in recent years. Fernandez-Guzman Pacific National Should the regulatory pendulum swing back to a more-reasonable standard for regulatory compliance and the economy continues its rebound you will see new entries. Iglesias Professional I believe applications for new community bank charters will remain low so long as the regulatory and compliance burden remains as high as it has been these past several years. The cost of complying with the financial reforms enacted under the Dodd-Frank Wall Street Reform and Consumer Protection Act and the previous Patriot Act coupled with the protracted low-rate environment has soured investors on new community banks. De la Aguilera U.S. Century Absolutely not. Community banks--generally defined as institutions between 100 million to 10 billion--make up more than 90 percent of the banks in the country. Still the five largest banks in the country control over 50 percent of the industry s total assets. So while the traditional size of community banks has increased over time their importance has not diminished. How is the environment for business lending Eddy Arriola chairman and CEO Apollo Bank This is a very good time for business lending. Lowered interest rates have led to a spike in loan applications especially among small businesses and entrepreneurs and banks are actively lending again. At Apollo Bank we are seeing that our small-business clients are largely optimistic about their ability to grow business and raise revenue in the year ahead. Coley BB&T We believe what s getting ready to happen is a substantial resurgence of Main Street. 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Castillo Chase Loan demand is good and we think it will get better as the economy picks up more traction in the next year or two. That said it is a borrower s market--heavy competition for quality companies exists among banks in South Florida. Shearouse FB Palm Beaches Fairly strong and active. Businesses however seem less motivated to leverage their growth with debt than they did in 2005. Costello First Green We have experienced strong loan growth although I think that has more to do with our entrance in a new market than overall increased demand for loans. Most banks are not seeing strong loan growth and many are no longer involved in ADC (acquisition construction and development) lending due to regulatory concerns. Birch Flores FNB South Miami We continue to see remarkable growth in our commercial lending. Our net loan growth in 2016 was 40.56 percent (97th percentile of our peers) per the [federal] Uniform Bank Performance Report. Some banks have loosened their underwriting standards or terms. Fernandez-Guzman Pacific National Deal flows continue to be strong but slowing. Quality of borrowers and loan requests have weakened a bit. Banks continue to lend aggressively but rising rates will put pressure on cash flow and deals will not meet the required debt-service ratios or stand up to stress testing. Iglesias Professional I believe the businesslending environment is solid with most banks actively pursuing opportunities to extend credit to small- and medium-sized businesses. We remain active in this space and have expanded our business banking team and product suite to include [Small Business Administration] lending and commercial letters of credit to enable us to better serve the business community. Pino TD Bank Very competitive--more banks are now lending [post-recession] and many smaller banks are trying to build market share and at times compete with larger banks with looser terms. De la Aguilera U.S. Century We are actively lending and I am excited about the many new business lines we have launched in the past year including residential mortgages SBA lending as well as a new focus on homeowners associations. Last year U.S. Century Bank renewed efforts to expand the residential line to include a full range of products geared toward first-time homebuyers international purchasers and investors. Programs were also developed that target homeowners associations and the specialized banking needs of South Florida law firms. How challenging is the regulatory environment Arriola Apollo Stricter regulation has made it much harder for community banks to do consumer and small-business lending which should be the foundation of their business. While it s easy to put all the blame on Washington it is important to remember that state and local regulation have a far greater impact on small business. Coley BB&T Our CEO Kelly King has said that baseline regulatory requirements are not going to go away and probably shouldn t go away. But we need basic good solid regulation. Thompson CenterState The pendulum swung too far after the financial crisis and the excessive regulatory burden has definitely affected banks abilities and willingness to be able to fund the growth we would all like to see. Shearouse FB Palm Beaches The regulatory environment is extremely challenging if not punitive and a burden to many aspects of community banking. More is spent on compliance than in the origination of loans to our customers. Congress needs to pass the Choice Act and work towards repeal or modification of Dodd-Frank. Costello First Green For the smaller banks it s primarily consumer laws that actually make it too expensive for banks to offer credit to the people who need it most. That s why we have the predatory lenders coming in to fill the void. The other big compliance cost for community banks is the Bank Secrecy Act and anti-money laundering requirements which are extremely costly and the benefit is yet to be proven. Birch Flores FNB South Miami Very challenging. I just returned from the annual conference for the Florida Bankers Association. There is optimism that the current administration and Congress see the harm that certain regulations have created for community banks and are committed to assist. Holtz Marquis We need to right-size regulation based on the size and complexity of the bank. Any progress in that regard will prove to be very beneficial to community banks and in turn to the entrepreneurs and small businesses that depend on us. Macedo Ocean The regulations exist for a purpose that protects both the industry and the customers. You can serve your customers and have a strong banking business while adhering to regulations. Fernandez-Guzman Pacific National Extremely challenging. Dodd-Frank has to be repealed or completely gutted and the [federal] Consumer Financial Protection Bureau has to be eliminated at best or rendered completely powerless. 44 AUGUST 2017 www.sfbwmag.com For Your Perfect Event Weston Hills Country Club proudly offers our services to make your next event an extraordinary success. Terrific Views Flexible Meeting Space with state of the art technology for your next Client Appreciation Galas Fundraisers Planning Sessions Holiday Events Golf Tournaments myoung westonhillsgolf.com www.westonhillsgolfclub.com 954.384.4670 www.sfbwmag.com AUGUST 2017 45 EXECUTIVE CLUB South Florida Business & Wealth s Executive Club Brickell recently hosted an exclusive cocktail reception at the River Yacht Club in Miami s Brickell neighborhood. Mike Zimmer president of the Miami Super Bowl Host Committee gave a brief presentation on preparations underway for the 2020 Super Bowl. The Executive Club is an exclusive membership organization for professionals business leaders and corporations to meet and interact on a regular basis. For information contact rmann SFBWmag.com. Mike Zimmer and Brian Bishop of the Miami Super Bowl Host Committee 2020 with Saks Fifth Avenue Brickell City Centre GM Ramona Messore Beatriz Guerrero and Stephanie Tarry of The Miami Medical Center Ron Mann of South Florida Business & Wealth Ramona Messore and James Cassel of Cassel Salpeter Anthony Karpinski of the Miami Dolphins and Ryan Davis of the team s foundation Anthony Hussain of Legacy Clubs Ricardo Sanchez of Edward Jones and Laura Garcia and Bill Hansen of Bill Hansen Catering Fred Greene of Oak & Cane American Craft Rum Brian Bishop and Mike Zimmer of the Miami Super Bowl Host Committee 2020 and Joe Vallatico of Oak & Cane Lauren Quijano Francis Rodriguez and Nathalies Alfonso of Binstock Rubin Sbar Garcia & Ellzey P.A. 46 AUGUST 2017 www.sfbwmag.com www.sfbwmag.com AUGUST 2017 47 Moderator Lida Rodriguez-Taseff and panelists Judith Haddad Elizabeth Dvorak Xavier Mufraggi and Rob del Rosal Industry leaders offer insights BY ANDREA RICHARD BY ANDREA RICHARD South Florida Executive Roundtable s June panel featured four executives who have made their way in their respective industries all sharing deep insights. SFBW is the exclusive media partner for the roundtable an invitation-only luncheon. The moderator was Lida RodriguezTaseff of the Duane Morris law firm. The panelists Elizabeth Dvorak CEO at Workscapes Xavier Mufraggi CEO at Club Med Judith Haddad executive vice president and chief information and technology officer at Patriot National Rob del Rosal CFO at Bacardi North America Here are the takeaways. Grow or innovate Dvorak We had a choice to make for the direction of our company Workscapes. We were in Orlando and South Florida. In 2010 we hit a plateau and we had a few When we look at innovation we take a opportunities. We could sell the business we could become a smaller boutique long-term view. business or we could grow. We looked for a partner with a much-larger organization Hire people who that was really innovating are aligned with your Herman Miller. It took about 18 months and we company s values. You acquired five Herman Miller can t teach attitude dealerships across Florida in 2013. motivation and desire. Then we moved our family -- Elizabeth Dvorak to Miami. For us our clients innovation is top priority. What drives innovation I feel it s creativity and collaboration. What we do is help our clients be more successful by providing a workplace environment that drives collaboration and creativity. Herman Miller is a human-centric research company. They don t do anything without solving a problem. Time perspectives Mufraggi Depending where you are in the world there s a different vision of time. China North America Brazil. When you work with the Chinese on a plan they are extremely short-term. So when they worked with us on a 10-year plan they would ask me questions about my last week s performance and how we are -- Rob del Rosal 48 AUGUST 2017 www.sfbwmag.com SOUTH FLORIDA EXECUTIVE ROUNDTABLE SOUTH FLORIDA EXECUTIVE ROUNDTABLE Don t mentor people around your age. Mentor the younger people. They have so much energy and enthusiasm it s infectious. -- Xavier Mufraggi planning our next week. They wanted to feel secure. The Europeans are more five to seven years. The Americans work by the quarter. As Club Med is a global company we need to adapt ourselves. I ve worked in a U.S. company before and you only work on the quarter. This causes so much pressure on executives which leads to them not making the right decisions for the company long-term. Drone ahead Haddad As a public company you re always looking for shareholder value. And from our standpoint as a technology solutions provider to the insurance industry we are looking at how you innovate. I ll give you an example drones. Everyone thinks drones are the new toys that are out there. My son has one. Think about using it in the insurance industry. Think about using a drone when there s a disaster. Or think about checking out a property that you want to insure. You can collect that data and start mining it. You put it all together. Trendsetters Del Rosal South Florida is a place for where people have fun and where trends start. From a brand perspective we can see where trends start--in our backyard. This is the global epicenter where the trends start our home. So we are lucky to have Bacardi headquartered in Miami. Long product cycle Del Rosal In the spirits industry innovation and product cycles are very long-term. For example Tito s Vodka you think that s been around for a couple years right It s been 22 years. Grey Goose is 21 years old. We ve had senior executives come in from other industries that don t understand some of those core truths of the industry. On your worst day you ll learn the most. Always welcome a bad day. -- Judith Haddad When your company needs more Certainty. Influence. Significance. Growth. In Business Development Brand Amplification Market Expansion Talent Strategies www.GROWINGandEXPANDING.com COI access ...connecting centers of influenceTM www.sfbwmag.com AUGUST 2017 49 VETERANS OF INFLUENCE POWERED BY Stephen Garber right an SFBW columnist and director of Third Level Ltd. interviews George Labovitz founder and CEO of ODI The Power of Alignment Best-selling business book author shares his insight George Labovitz is the founder and CEO of ODI an international management training and consulting company. He also was a professor of management and organizational behavior at the Boston University School of Management from which he recently retired. He counsels senior executives on organizational alignment strategies as well as quality and productivity management. The Boston native has been published in the Wall Street Journal Quality Progress and Quality Management in Healthcare. He is the co-author of Making Quality Work and lead author of the best-selling business book The Power of Alignment. He has served as a consultant to the Navy and the Air Force. He holds a bachelor s degree from Boston University an MBA from Boston College and a PhD from Ohio State University. Before his graduate studies Labovitz was a captain and pilot in the Air Force. He was interviewed by Stephen Garber director of Third Level for SFBW s exclusive Veterans of Influence event at the Port of Palm Beach. The following transcript has been edited for brevity and clarity. The Power of Alignment has been a best-selling business book for years about to go into a second printing. What is alignment Let me first tell you where alignment came from. I m an accidental entrepreneur. I started my company creating a management training program for both health care and 50 AUGUST 2017 www.sfbwmag.com for industry. We were a management training company rapidly growing and accidentally we got into the quality improvement business. We did business with Procter & Gamble and FedEx has been a client of mine since 1989. My co-author and I noticed there was something going on in those companies that transcended process and improvement. Yes they were doing something faster cheaper better. But there was something else going on. And we decided to call that something else alignment. There are 30 years of empirical research mostly from Harvard and the University of Southern California a little bit from Boston University that shows organizations that are aligned integrated and focused outperform their competitors by every major financial measure. And so I wrote a book to articulate what that extra something is. Alignment is when the critical elements of a business are working in concert with each other to drive growth and profit. In my view they are organizational competencies. One of those are having a clearly articulated strategy for your business and being able to rapidly deploy it. The operative word being rapid because strategies change. And can you deploy it down to the people who have the skills and knowledge to execute it Strategies are executed from the bottom of an organization not the top. If only 10 percent of the people in your organization really understand what you the boss are trying to accomplish that is misalignment. You want clearly articulated strategies down to the people that can execute it. That is vertical alignment. Vertical alignment is imperative in the military. This is some of the work that I did for five years when I helping the Navy. If you were an admiral about Linda Carry Mike Keeby and Beth Garcia Patrick Jacks Matthew Sheehan and Gavin McNally to take 9 000 young men and women into harm s way in a battle group you would want to make sure that every department head every manager knew exactly what the mission was and what they were going to contribute to that mission. That s not enough. You also need horizontal alignment. You need to be customer-focused. Over at Procter & Gamble they were fanatical about understanding their customer base. Before the customers know what they want P&G knew what they wanted. What keeps you centered is leadership. And right underneath leadership is measurement. That old adage--you can t Lesley Parente and Dan Touchet www.sfbwmag.com AUGUST 2017 51 VETERANS OF INFLUENCE Mark Thompson Stephen Garber George Labovitz Mike Keeby and Jesse Flowers manage if you can t measure--is true. Why did the chief of naval operations make it required reading for all of the 400 admirals in the Navy I found out that the biggest buyer of my book was the Navy so I sent Chief of Naval Operations Vern Clark [who served 200005] a note Lots of luck with alignment. Two weeks later I was invited to his office and met him in the Pentagon. That began my five-year hitch with the Navy. The reason he made alignment the No. 1 goal for the Navy is because in his business second place is a terminal disease. In business you lose a step in the market and shares goes down nobody dies. He explained to me why the Navy was such a candidate for organizational alignment. There s an underwater Navy there s an aviation Navy there s a surface Navy there s an east coast Navy there s a west coast Navy. And none of them talk to each other. This guy transformed the Navy. Alignment was his model his banner. And I was blessed to have the honor to work with him and be his agent. About Veterans of Influence their peers. SFBW s Veterans of Influence series is an exclusive invitation-only quarterly event that brings together South Florida s top business leaders to meet and mingle with The evening begins with a cocktail reception for about 100 guests followed by a live interview of a C-level military veteran who provides insight into their personal lives careers and views on issues affecting the business community. The presenting sponsor is Brown & Brown Insurance and the gold sponsors are CenterState Bank and Port of Palm Beach. Partnering with SFBW on this exclusive event provides an opportunity to network with the area s business elite generate new business opportunities and increase brand awareness. For information about event sponsorship opportunities email Clayton Idle at cidle sfbwmag.com. Kathy Macaluso and Michael Fisher Connie Capanegra and Carl Mistretta 52 AUGUST 2017 www.sfbwmag.com PRESENTED BY FOR MORE INFORMATION VISIT OUR WEBSITE SFBW s Fourth Annual Apogee Awards will recognize distinguished leaders in the region s C-suite from Chairman CEO Vice President COO and President to CFO CIO CMO and HR Leader. An executive in each category will be honored for Miami-Dade Broward and Palm Beach counties. FOR MORE INFORMATION VISIT OUR WEBSITE www.SFBWmag.com signature-events apogee Please visit our website for more information and to purchase tickets. GOLD SPONSORS www.sfbwmag.com AUGUST 2017 53 Xtreme Action Park provided an exciting venue for the Up and Comer Awards Up and Comer Awards Nearly 600 guests attended the 2017 SFBW Up & Comer Awards at Xtreme Action Park in Fort Lauderdale. Guests enjoyed cocktails prepared at a Las Vegas-style light-up bar served by the Gold Coast Roller Derby Grrls. Thierry Isambert Culinary served an array of street food creations from Indian cuisine to arepas. SFBW Chairman and CEO Gary Press and sponsor Erik Sussman president and CEO of MassMutual South Florida presented awards to the most successful and forwardthinking South Florida business professionals under the age of 40. With more than 450 applicants 86 were chosen as finalists and 20 winners were announced receiving their awards after strutting down an LED runway. Andrew George tournament director of the Honda Classic receives his winner trophy from sponsor Erik Sussman president and CEO of MassMutual South Florida and SFBW Chairman and CEO Gary Press Winner Melissa Perlman and Mark Burns Yen Morales Catherin Valin and Maud Boisacq Michelle Bergin and Veronica Jimenez 54 AUGUST 2017 www.sfbwmag.com UP AND COMER AWARDS Bibi Lucki Eugene Mintze Rachel Sapoznik and Rich Ducharme Scott Berger Melinda Mergelsberg and James Reto Kip Hunter and Jarett Levan Kristi and Mike Linder who was one of the winners Erik Sussman and Sherri Hoffenberg Adriana Fernandez Djuradj Babich Wolfgang Pinther and Kimberly Tuby The Gold Coast Roller Derby Grrls helped serve beverages www.sfbwmag.com AUGUST 2017 55 COMMERCIAL REAL ESTATE Pompano Beach s Innovation District BY DARCIE LUNSFORD Taking a cue from other major metropolises such as Barcelona Medellin and Boston Pompano Beach is branding a central underused swath of Atlantic Boulevard as the world s newest innovation district. The district spans approximately 400 acres along Atlantic Boulevard north to MLK Boulevard from Interstate 95 east to just west of City Hall and the city s new 17.9 million cultural arts center. The specialized zoning within this overlay district allows for 750 000 square feet of office space 165 000 square feet of retail 35 000 square feet of restaurants 1 500 residential units and two hotels with a combined 420 rooms. More density may be needed in future phases to fully redevelop the now mostly single-story commercial structures and lots into a thriving pedestrian-driven metropolitan center. The city wants to create their own unique environment says Kim Briesemeister a principal of Redevelopment & Management Associates the private firm that manages the city s Community Redevelopment Agency which is leading the planning and launch of the district. We are building for the future so I don t think there s an example out there of a place that really captures what we want to be in terms of how people use space and public amenities. The fulcrum for development within the district will be a new system of self-contained self-circulating linear waterways which will create a picturesque outdoor setting for cafes shops offices and mixed-use residential buildings. The proposed 60 million water retention system would have an ambience similar to Amsterdam. So far the city has about 5 million set aside to cover the cost of this ambitious and highly technologically advanced system. The scenic waterways will be pivotal to attracting private sector development to about 80 acres at the core of the district. The city s CRA owns about 24 of those acres and is planning on retaining a broker to begin marketing the various parcels to a mix of office retail light-industrial and residential developers. The city plans to seek a diverse array of development proposals design concepts and mixing of uses that will work in tandem to weave the district into a one-of-a-kind urban tapestry Briesemeister says. While the general concept of innovation centers--where clean manufacturing traditional office streetlevel retail and city-style residences-- intertwine with public gathering spaces has been around for a while the term innovation district has become popular only in recent years says Harvard Business School senior lecturer Mitchell Weiss. It s a term of art not science he says. The composition of these districts can vary from place to place. Even so Weiss says the city needs to have a clear vision about what it wants and articulate that to private-sector developers. Then get going on it quickly he says. Nitin Motwani developer of the 2 billion mixed-use Miami Worldcenter in downtown Miami agrees You need to have a plan because developers hate uncertainty Motwani says. But that doesn t mean the city s larger vision should be cast in stone he adds the city might decide to pivot based on what developers say can pragmatically be achieved which has to be a model and a project that they can underwrite and make money on. He says developers have to find the financing to launch the park project. It is very difficult for developers to think out of the box because I have to go out and get the equity Motwani says. You need to have some flexibility. Freelance writer Darcie Lunsford is a former real estate editor of the South Florida Business Journal. She is the senior VP for leasing at Butters Group and is avoiding a conflict of interest in her column by not covering her own deals. 56 AUGUST 2017 www.sfbwmag.com PRIVATE TRAINING STUDIO CORPORATE CENTER 33301 WHY TRAIN WITH BILL I have been training with Bill since 1993 have referred dozens of friends & associates and have received positive feedback from each. -- Mike Maroone President Maroone Enterprises CLUB 1 HEALTH & FITNESS CENTER PRIVATE CORPORATE & GROUP CLASSES BEFORE 400lbs Here 45 minutes training is all you need Busy I can come to you Makoto Speed & Reaction Arena NOW 220lbs Your Results Guaranteed FOR MORE INFO GO TO BILLKYSER.COM OR CALL 954.290.2920 0716 Bill Kyser Personal Trainer_final.indd 1 6 15 16 2 57 PM www.sfbwmag.com AUGUST 2017 57 NONPROFIT GOVERNANCE Lessons Learned BY GERRY CZARNECKI Gerry Weber is a corporate executive entrepreneur and nonprofit leader. His career has spanned leadership roles at such companies as Shoppers Drug Mart Blockbuster Entertainment and AutoNation and now includes his current focus as president and CEO of Jewelry Repair Enterprises. He has served on the board of the Humane Society of Broward County and is its immediate past chair. He recently spoke to SFBW about his charitable service. What was the first nonprofit board you joined What was that experience like Friends invited me to join an organization committed to supporting families of fallen police officers. Unfortunately it turned out Gerry Weber holding a puppy to be a highly dysfunctional board and when I realized that it was a hopeless case I ultimately resigned in frustration and it was an early lesson for me in the need for sound board governance. What is your greatest success as a board member Humane Society. I believe that we have a highly engaged board that believes in the mission and is dedicated to the outcomes. The Humane Society board takes its job seriously. The CEO has been there for 25 years is committed to outcomes and the board is passionate about outcomes increasing the number of adoptions to reduce the population of homeless animals. As a board member what are your most significant expectations of your fellow board members I believe that passion is obviously essential but they must also have the time. At the Humane Society we set board expectations right up front and then we evaluate each year the member s performance. Also the board must be a leader in the fundraising responsibility. What happens if a board member can no longer perform to the expectations If they cannot be active their priorities change but they still want to be involved we usually try to get them to consider moving to an advisory board. It keeps them engaged but reduces the workload. For some that is a tough conversation. But for most when that day arrives they understand and accept that role. Gerry Czarnecki is founder and chairman of the nonprofit National Leadership Institute (nationalleadershipinstitute.org) which helps boards of nonprofit organizations become strategic assets to the leadership team. His extensive background as a C-suite executive and CEO is coupled with current board leadership of corporate and nonprofit organizations. He is also chairman and CEO of the Deltennium Group. Contact him at 561.293.3726 or gmc deltennium.com. 58 AUGUST 2017 www.sfbwmag.com Where Your Passion for Your Business is Celebrated Fort Lauderdale The Greater of Commerce was Chamber founded as our community s first trade organization 107 years ago. Since that time the Chamber has worked in support of programs that strengthen companies and create a stronger community while promoting positive change. Become a member and EXPERIENCE BETTER BUSINESS today Visit FTLChamber.com join or call us at 954-462-6000 for more information. FTLCHAMBER.COM JOIN 512 NE 3rd Ave Fort Lauderdale FL 33301 Info FTLChamber.com 954-462-6000 www.sfbwmag.com AUGUST 2017 59 TECH HUB South Florida Tech Hub Continues to eMerge BY CHRIS FLECK The South Florida Tech event eMerge Americas topped 13 000 attendees this year at the Miami Beach Convention Center. Speakers included such tech leaders as Apple co-founder Steve Wozniak Magic Leap founder Rony Abovitz finance expert Suze Orman entertainer Pitbull former pro baseball player Alex Rodriguez Sprint CEO Marcelo Claure Waze co-founder Uri Levine and a host of others. Manuel Medina the founder of Terremark and eMerge s creator discussed the launch of his multibilliondollar cybersecurity company Cyxtera which acquired 57 Century Link Data centers. We believe the next revolution is the era of cybersecurity. Security has to be adaptive and intelligent but also made for the cloud Medina said. This is a giant opportunity and we are in the forefront as it will be based in Miami. In one of the highly anticipated panels Abovitz provided details about his company which has been called the world s hottest startup. Abovitz said launching Magic Leap feels like a rocket ship preparing for liftoff and that 2017 will be a big year. Magic Leap is producing computer-enhanced glasses that mix digital content with a user s surrounding environment. He calls it spatial computing powered by digital light field. ... We are trying to make science fiction real. Asked about pricing Abovitz would say only that it s aimed at affordability in the mass premium category--not a Kindle but not unattainable. Jean-Pierre Bardet dean of the University of Miami s College of Engineering demonstrated the glasses and said the new technology will open new opportunities for startups and students. In fact Abovitz mentioned that developers and creators are an initial target audience with South Florida being a rising tech hub. Having already raised nearly 1.4 billion in funding Abovitz acknowledged his company is talking to more investors. Some speculate the next round could be at a valuation of 8 billon. Dozens of startups competed for 175 000 in prize money across multiple categories. Winners included Voyhoy a travel booking site with 6 million users Chirpp a multichannel platform for customer engagement and TSOLife an online family history documentation service. There also was a 24-hour hackathon with 34 teams won by Florida Atlantic University s Tech Runway team of high schoolers. They won for SmileMetrics a system that allows businesses to measure customer satisfaction. Plans are already underway for a bigger event next year. Perhaps we will see some real magic emerging from South Florida. Chris Fleck is on the board of the South Florida Technology Alliance and vice president of emerging solutions for Citrix Systems (Nasdaq CTXS) a Fort Lauderdale company that provides secure delivery of applications and data. 60 AUGUST 2017 www.sfbwmag.com SALES STRATEGIES Change for Progress Four tips that will help relay it BY GRETA SCHULZ Recently I was at a governmental affairs meeting in West Palm Beach. The discussion was about changes in the city transportation creating local clusters more biking opportunities and so forth. Some people at the meeting were part of the original committee that put this together. Of course they all were behind the ideas brought forth. But others were hearing some of these ideas for the first time and frankly most were pooh-poohing them. That s human nature. Opening yourself to new ideas--good or bad--is all a part of getting comfortable. Most people aren t totally comfortable with new ideas especially if they re radical ideas. What does this mean for business leaders Since the commonly cited definition of insanity entails doing something repeatedly and expecting different results how do we do something fresh and get our team on board with it Getting people to engage in ideas and conversation is one of the best ways to accomplish change. No one likes to be dictated to and being told that something will change--even though that s often our responsibility as leaders. Using brainstorming techniques to present an issue and allowing the group to share ideas and responses without judgment often will illicit new ideas as well as allow you to present yours successfully. Some ideas RELAY THE BACKSTORY Why are you looking to make this change Talk about the reasons for the change not how you want to do it just yet. When people understand the whys they tend to be more open to the hows. HAVE PATIENCE Leaders tend to rush to answers without allowing others to get there organically. Most leaders often are open to new innovative ideas but others aren t necessarily that way. Ask your people good questions to get them to open up talk about solutions and learn the whys of their ideas as well as opposed to just pushing yours. BE OPEN If you are open to other ideas and not stuck on your own often you will find a better one in front of you. Be open to that and don t assume yours is always the best. SUMMARIZE AND REVIEW That lets your people know they ve been heard. It is important to go into a brainstorming session with an idea as well as an open mind. Make sure everyone s participation counts. Review all ideas once they have been given. You will have more acceptance from your people when they feel part of the change process not ordered to implement it. REMEMBER Most people don t like change at least at the beginning. Approach it properly and you will have a better chance of having agreement rather than a mutiny. Greta Schulz is president of Schulz Business a sales consulting and training firm. She is the best-selling author of To Sell is NOT to Sell and works with Fortune 1000 companies and entrepreneurs. For more information or free sales tips go to schulzbusiness.com and sign up for GretaNomics a weekly video tip series or email sales questions to greta schulzbusiness.com. www.sfbwmag.com AUGUST 2017 61 PEOPLE PASSION AND PROFITS Business at the Speed of Happiness Keeping your best talent in our competitive marketplace BY STEPHEN GARBER When I was 5 years old my mother always told me that happiness was the key to life. When I went to school they asked me what I want to be when I grew up. I wrote down happy. They told me I didn t understand the assignment and I told them they didn t understand life. -- Attributed (apocryphally) to musician John Lennon In most of our businesses and organizations our model our unique selling proposition our service or our technology is not our differentiator. It s the quality of our people and how they relate and communicate with each other and the world around them--our stakeholders and our customers--that determines our success. Attracting and keeping great people is the pathway to sustainable success. And it s a very challenging market out there for notable talent particularly in South Florida. Management as a concept often seems complicated sophisticated and even obtuse. Leadership is even more esoteric and harder to qualify and quantify. They re both about understanding human motivation and what makes people happy. As Abraham Maslow taught us in his 1943 hierarchy of needs once our basic needs (wellness and safety) are met it s the higher needs of love esteem and growth that keep us motivated--and happy. Assuming your people are healthy--and working in a healthy environment--and they re receiving a fair compensation for their contribution to your organization s success creating an environment of likeable and happy is the best way to keep your best people engaged and loyal. The Association of Accounting Technicians in the United Kingdom did research that was absolute in its result Good colleagues beat high pay Eight in 10 workers would turn down a higher salary if it meant working with people they didn t like. Happy people make delighted customers which make happy shareholders. They re all people. When you look deeply into Apple Google Zappos and other hugely successful standout companies you ll find they nearly all have something in common that helps separate them and keep them soaring. From the bottom to the top of the organization their people Are passionately engaged advocates for their business. Understand what the business strategy is and their part in delivering it. Go above and beyond what they re paid to do. Have an emotional engagement with the business the product and with their client or customer. They are happy where--and with whom--they work. This is what separates the mundane from the good. And more important the good from the great. On the flip side the cost of having a disengaged culture is huge-- probably a lot larger than you realize. Factoring absenteeism low morale poor customer service lost sales lost long-term customers ... the costs of unhappy people are obvious. The most important business and leadership objective for sustaining business growth is to attract retain and grow great people--and keep them happy. Are you happy at work Do you help others be happy It is the direct path to so many rewards in business and life. Stephen Garber is director of Third Level Ltd. Contact him at 561.752.5505 or sgarber thirdlevel.com. 62 AUGUST 2017 www.sfbwmag.com TALENT AND LEADERSHIP Winning Top Talent Four Keys to Success from the Experts BY MATT SHORE In today s competitive job market simply making someone an offer hardly guarantees the person will take it. A company needs to inspire prospective candidates from the initial interaction all the way through the offer. This is necessary for all employers because candidates with high-demand skillsets typically have their pick of competitive offers. It is not uncommon even for desirable companies to have an attractive opportunity turned down multiple times which ultimately costs the company both time and money. Given these realities consider these keys to success from the experts at the talent search and interim resources firm StevenDouglas HAVE A SOLID GAME PLAN It s important to develop a strategy when beginning your search for an important hire. If you fail to plan you plan to fail. Foremost you need to make sure there is internal alignment on the position reporting structure title responsibilities experience required which employees will be part of the interview and hiring process and the potential growth path of the role. Invest time to develop a well-thought job description and have it reviewed by all stakeholders to assure that they are in agreement. This document will help alleviate miscommunication with candidates on expectations and also serves as an excellent source of accountability once they are on your team. DILIGENCE AND MARKET ALIGNMENT Employers often miss out on top talent simply by not understanding current market factors. After achieving alignment on the role make sure your company is in line with the market and that you have budgeted the appropriate compensation package. You can save time by knowing what it takes to attract top talent and focusing your process on candidates you can afford. Great candidates want great offers. The surest way to have an offer rejected is to lowball a candidate. RUN AN INSPIRING INTERVIEW PROCESS Everyone can agree the process should determine whether candidates are qualified to do the job and have the DNA to be successful with the company. What employers sometimes lose sight of is the chance to leverage the process to inspire the prospect about the company culture and opportunity. Candidates go to interviews knowing they have only one chance to make a good first impression. Companies have only one chance too. Treating candidates unprofessionally -- such as having them wait in the lobby for lengthy times not being available for a phone interview or rescheduling several times -- will leave a poor impression. Companies can also leave candidates uninspired if they have the wrong people doing the interviews. Interviewers not only should have questions for the candidate but they also should leave time to sell the company and opportunity to the prospect. Your interview team should be enthusiastic and able to communicate what a great organization this is to work for. The interview process is a two-way street and you want a candidate to leave with excitement. Even if you decide not to pursue them treat them with respect and make sure someone closes the loop with them by thanking them for their investment of time. If you do these things you will have made a fan who will have great things to say about the company. ACT WITH URGENCY There s a saying that time kills all deals. If a candidate is interviewing with your organization he or she is likely interviewing with others. The best candidates are getting multiple offers simultaneously. It s important to capitalize on the momentum created during the interview process and a decisive job offer is the best indicator of how committed you are to have this person join the team. If you wait too long you run the risk of losing the candidate to another company. If you know what you are looking for and you find that person act with urgency make a great offer and close the deal. Hopefully you re already using these strategies in your search for talent. If not they re the keys to success moving forward. Matt Shore is president of StevenDouglas which helps clients find top talent and candidates find new opportunities. Contact him at 954.385.8595 or mshore stevendouglas.com. www.sfbwmag.com AUGUST 2017 63 WEALTH Can Amazon Succeed in Grocery BY TIMOTHY GREEN E-commerce giant Amazon.com (NASDAQ AMZN) has only dabbled with physical stores. A handful of bookstores and its Amazon Go cashier-less convenience-store concept are the extent of the company s physical retail presence. The 13.7 billion acquisition of Whole Foods (NASDAQ WFM) expected to close during the second half of the year will plunge Amazon into the world of brick-andmortar grocery. The U.S. grocery industry accounts for around 800 billion of spending each year with the average consumer spending about 5.5 percent of their disposable personal income on food consumed at home. Amazon already ships nonperishable grocery items via its website but success with fresh foods like meat and produce has eluded it so far. Amazon Fresh its fledgling grocery delivery service has failed to truly take off. According to Bloomberg Amazon plans to cut prices at Whole Foods in order to get rid of its Whole Paycheck reputation. Job cuts inventory changes and automation are reportedly on the table. However margins in the grocery business are razor-thin and the industry is ultra-competitive. Kroger (NYSE KR) the second largest grocery chain behind Wal-Mart (NYSE WMT) managed an operating margin of just 3 percent in 2016. And that was a good year. The company s operating margin has been as low as 1.4 percent in the past decade. Amazon enters the industry at a time when competition is more intense than it has been in quite some time. Walmart and other discounters have been aggressively slashing prices to win share creating food price deflation typically not seen outside of recessions. Kroger issued a profit warning earlier this month cutting its guidance for 2017 due to falling food prices. Aldi and Lidl two German chains known for low prices are also planning major expansions in the U.S. Amazon will undoubtedly aim to use technology to lower costs at Whole Foods and it will likely use the stores to launch grocery delivery and pickup services. But grocery is not an industry that has been asleep at the wheel. Walmart has been pushing its own online grocery service for years now offering free curbside pickup at 700 locations with plans to reach 1 000 locations by the end of the year. Kroger also offers online grocery ordering and pickup at hundreds of locations. Can Amazon succeed in grocery turning Whole Foods into a mainstream supermarket that can compete on price Sure. The company has been willing to lose money in order to grow in the past and it has the capability to be extremely aggressive. But those who believe that Amazon will simply roll over rivals and become a grocery leader in short order are overly optimistic. Amazon first needs to figure out how to run stores then it needs to figure out how to undercut brutally efficient rivals. Those rivals won t be sitting on their hands likely matching Amazon blow for blow. This is all great for consumers. Whether it s great for Amazon investors is another matter. Disclosure John Mackey CEO of Whole Foods Market is a member of The Motley Fool s board of directors. Timothy Green owns shares of Best Buy. The Motley Fool owns shares of and recommends Amazon and Whole Foods Market. The Motley Fool has a disclosure policy. This stock could be like buying Amazon in 1997. Imagine if you had bought Amazon in 1997... a 5 000 investment then would be worth almost 1 million today. You can t go back and buy Amazon 20 years ago... but we ve uncovered what our analysts think is the next-best thing A special stock with mind-boggling growth potential. Read more at https goo.gl LBA3wy 64 AUGUST 2017 www.sfbwmag.com TAKING STOCK Dycom Is a Can t-Miss Stock BY MALCOM BERKO Dear TG As promised in my most recent column here are my thoughts on Dycom Industries. Dycom (DY 90.19) headquartered in Palm Beach Gardens is a good conservative long-term investment. In late 2008 I bought 1 000 shares of Dycom at 5.05 as a speculation based on information from a reliable source. According to an important executive I knew in the telecommunications industry the stock was supposed to double in price within the following two weeks. It didn t So I sold it for a 1 125 loss in early 2009. But a fortnight after that it was trading at 12. Great Scott If I had continued to hold the stock those 1 000 shares of Dycom would be worth 90 190 today. That s how the cookie crumbles. I don t have inside information but I m convinced that DY with only 31 million shares outstanding has the potential to double its share price in the coming four to five years. DY may be a classy way to participate in the rebuilding of the United States infrastructure. The company operates three distinct businesses 1) Telecommunications services involved in the engineering installation and maintenance of communications networks. This includes installation and maintenance of towers power lines antennas coaxial cables and client equipment. 2) Underground services dealing with the location and mapping of underground utility installations for telephone cable power water sewer and gas lines. 3) Electrical handling the design sale and installation of power grids for electric and gas utilities. Even though DY has grown about twentyfold in the past eight years the nearly exponentially growing need for telecommunications infrastructure and network bandwidth suggests that DY could be a 200-plus stock by 2022. There are many who agree. DY continues to face hugely growing demand for larger and more efficient wireline networks from Verizon AT&T Frontier Comcast CenturyLink and others. Most carriers and networks are determined to offer higher speeds and greater-capacity networks in the future. And because outsourcing by the carriers and cable networks continues to expand to meet the increasing demand I m comfortable suggesting that DY s future revenues and earnings will be impressive. Video over the internet is constantly driving usage and demand for faster broadband connections and more bandwidth. On the other side of the fence many electric and gas utilities are experiencing sluggish growth however their capital budgets are near record highs. Some 80 percent of this spending is related to the strengthening and expansion of the power grid and DY is Johnny on the spot replacing parts and equipment that are 20 to 30 years old. This is all part of DY s continuing business in the years to come. DY s revenues could grow from 30 billion to 45 billion by 2022 while earnings could double from an expected 5.45 a share this year to 11. And some DY aficionados believe that profit margins could improve to 7.2 percent by 2022 from 5.4 percent and that the book value could double to 40 with zero increase in debt. However I don t think DY s board will consider a cash dividend. That notwithstanding the urgent need for new bandwidth and the compelling need to improve and protect our power grid suggest that owning Dycom should be a smart investment for a five-year hold. Thomson Reuters Market Edge UBS Zacks Bank of America and Value Line seem to agree. And managers of mutual funds at Vanguard Fidelity BlackRock and Federated which together own about 80 percent of DY s float have added their imprimatur. Please address your financial questions to Malcolm Berko P.O. Box 8303 Largo FL 33775 or email him at mjberko yahoo.com. www.sfbwmag.com AUGUST 2017 65 HISTORY VIEWPOINT Greg Lovett photographer. Miami News Collection HistoryMiami Museum 1995-277-8079. Rusty Pelican circa 1987 is one of the restaurants that participate in Miami Spice during August and September Spicing up the restaurant scene BY ALEXIS CHRISTINE Food plays a central role in the lives of Miamians and helps bring the community together by teaching others about different cultures and ways of life. This is one reason why Miami has such a high concentration of world-class restaurants. Miami Spice a local restaurant promotion showcases the best of local cuisine at affordable prices throughout August and September. Miami Spice gives the community the opportunity to become food critics and try a variety of restaurants. While a few of the participating restaurants are relatively new many historic restaurants participate as well. The event began 16 years ago started by the Greater Miami Convention & Visitors Bureau as a local economic stimulus after the harsh impact of 9 11 says bureau President and CEO William D. Talbert III. The program encouraged everyone including Miami residents to spend money locally and support the restaurant community during what historically had been the slower summer months of August and September he says. Now in its 16th year the program has grown from 40 to more than 200 restaurant partners with roughly 1 million Miami Spice meals served since the program s inception. Iconic restaurants see it an opportunity to attract new diners while having the chance to experiment with different menus. Pallava Goenka regional managing director at Specialty Restaurants Corp. whose holdings include Rusty Pelican and Whiskey Joe s says it provides patrons the chance to sample a variety of menu items at wallet-friendly prices. Throughout the years Miami Spice s growth has mirrored the rise of the local restaurant industry. We re proud to say Miami Spice has become synonymous in reflecting the best of the community s evolving and growing culinary scene inspiring chefs to bring their finest to the table Talbert says. Information for this feature is courtesy of the HistoryMiami Archives & Research Center which is open to the public and contains more than 1.5 million images of southeast Florida the entire state and the Caribbean from 1883 to the present. For information or to visit HistoryMiami visit historymiami. org. 66 AUGUST 2017 www.sfbwmag.com It s only natural to discover the Galapagos with Celebrity. We treat modern explorers to all-inclusive vacations--with dining beverages shore excursions and more--aboard three stunning ships on six unique itineraries. In these fascinating islands you ll discover rare species and learn about them from certified local naturalists while we treat you to all the creature comforts. Visit celebritycruises.com galapagos call one of our Galapagos Specialists at 1-888-751-9303 or contact your travel agent. 2017 Celebrity Cruises. Ships registry Malta and Ecuador. www.sfbwmag.com AUGUST 2017 67 F R O M S O U T H F L O RI DA S AWA R D W I N N I N G D E A L E R T H E E D M O RS E AU T O M O T I V E G R O U P E D M O RS E . CO M with 13 LOCATIONS and 9 DIFFERENT BRANDS ED MORSE AUTOMOTIVE GROUP gets MORE NEW VEHICLE INVENTORY from MANUFACTURERS and OFFERS the LARGEST SELECTION of CARS TRUCKS and SUVS. 68 AUGUST 2017 www.sfbwmag.com S TA R T SAV I N G SU M M E R 2017