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DECEMBER 2017 SFBWMAG.COM 7.95 Art and design visionary CRAIG ROBINS Andrew was born without the ability to breathe but with the ability to fight. Your donations can help children like Andrew right here in our community. Please give. Nicklaus Children s Health Foundation continues to embrace its goal to raise funds and awareness to bring hope relief health and happiness to children and their families right here in our community. Your donations will help us drive discovery advance the boundaries of medical knowledge through research and transform the way care is accessed and delivered to children in need. Call now to learn how you can help. Andrew born with chronic lung disease Give today to provide hope health and happiness to children in South Florida. Together Anything Is Possible. mchf mchf.org 1-800-987-8701 MCHF.org 2 DECEMBER 2017 www.sfbwmag.com Developing Optimism. Building Vision. Shareholders Michael Marshall Dan Mackler Heidi Davis Knapik Eric Coffman and Mario Garcia-Serra A vibrant real estate market demands leadership solid counsel and a strategic network. For nearly ten decades Gunster s real estate attorneys have helped shape the landscape in South Florida. As leaders in industry organizations including ULI ICSC and NAIOP we are maximizing opportunities for clients within these communities. With a deep bench of talent our attorneys provide counsel across all aspects of law from land use and acquisition to property rights eminent domain and environmental issues. We provide an integrated single-source approach to development of our clients complex commercial residential and industrial projects. As a unified firm networked across 13 Florida offices Gunster is statewide and state wise. Gunster.com (800) 749-1980 WHERE BOUNDARIES ARE BROKEN FURNISHED PH AT AUBERGE 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 Licensed Designer IB 13000407 4 DECEMBER 2017 www.sfbwmag.com 754.216.2288 www.aubergebeach.com www.sfbwmag.com DECEMBER 2017 5 TABLE OF CONTENTS 24 Cover Story 12 One Liners Craig Robins helped turn Miami into an international design destination NEWS AND FEATURES Catch up on the news you missed from around the region SFBW & PARTNERS 30 Total Artist 51 An evening with artist Romero Britto and Total Bank COLUMNS 90 Commerical Real Estate The great bid for Amazon s HQ2 28 Speaker Series Broward College hosts its fifth edition The 2017 Apogee Awards Introducing this year s honorees 92 Corporate Governance Dealing with the devil 94 Nonprofit Governance Meet Kim Jones 34 Good Reads Betsy Atkins chronicles boardroom drama in new book 80 CEO Connect A fun talk with Teddy Morse 95 Sales Strategies Oh the holiday brushoff 36 Law The complexity of medical cannabis 86 South Florida Executive Roundtable Insights on innovation 96 People Passion and Profits Talent before profit 88 EO Nerve 2017 Top entrepreneurs meet in Fort Lauderdale 40 Gaming Behold the 1.5 billion transformation of the Seminole Hard Rock Hotel & Casino 97 The Family Office Smart beta investing THE LAST PAGE 98 History Viewpoint Miami s original Santa 42 Marine FLIBS impact and its shiny toys 46 Wealth Diversification and alternative investments 6 DECEMBER 2017 drone shot www.sfbwmag.com Helping you achieve your goals has always been ours Congratulations to Rachel L. Barzilay for being recognized on the Barron s Top 1 200 Financial Advisors list Forbes America s Top Next-Generation Wealth Advisors list and as one of the Top 200 on Forbes America s Top Women Wealth Advisors list. Barzilay Group Rachel L. Barzilay CFP CAP CRPC Managing Director Wealth Management Advisor Senior Portfolio Manager 561.416.4626 rachel_barzilay ml.com Arthur Barzilay Managing Director Investment Associate 561.416.4633 arthur_barzilay ml.com Judd I. Goodman Vice President Financial Advisor 561.361.1853 judd.goodman ml.com Merrill Lynch One Town Center 1 Town Center Road 9th Floor Boca Raton FL 33486 866.525.0514 fa.ml.com barzilay_group Barron s magazine March 6 2017 America s Top 1 200 Financial Advisors list. Advisors considered for the America s Top 1 200 Financial Advisors ranking have a minimum of seven years financial services experience and have been employed at their current firm for at least one year. Quantitative and qualitative measures used to determine the advisor rankings include client assets return on assets client satisfaction retention compliance records and community involvement among others. Barron s does not receive compensation from advisors participating firms and their affiliates or the media in exchange for rankings. Barron s is a trademark of Dow Jones & Company Inc. All rights reserved. Forbes SHOOK America s Top Next-Generation Wealth Advisors list was developed by SHOOK Research. Advisors considered for this ranking were born in 1980 or later with a minimum 4 years relevant experience advisors have built their own practices and lead their teams joined teams and are viewed as future leadership or a combination of both. Ranking algorithm is based on qualitative measures telephone and in-person interviews client retention industry experience credentials review of compliance records firm nominations and quantitative criteria such as assets under management and revenue generated for their firms. Investment performance is not a criteria because client objectives and risk tolerances vary and advisors rarely have audited performance reports. Rankings are based on the opinions of SHOOK Research LLC which does not receive compensation from the advisors or their firms in exchange for placement on a ranking. For more information see www.SHOOKresearch.com. America s Top Women Wealth Advisors ranking was developed by SHOOK Research and is based on in-person and telephone due diligence meetings and a ranking algorithm that includes client retention industry experience review of compliance records firm nominations and quantitative criteria including assets under management and revenue generated for their firms. Investment performance is not a criterion because client objectives and risk tolerances vary and advisors rarely have audited performance reports. Rankings are based on the opinions of SHOOK Research LLC and not indicative of future performance or representative of any one client s experience. Neither Forbes nor SHOOK Research receives compensation in exchange for placement on the ranking. For more information www.SHOOKresearch.com. Merrill Lynch Wealth Management makes available products and services offered by Merrill Lynch Pierce Fenner & Smith Incorporated a registered broker-dealer and Member SIPC and other subsidiaries of Bank of America Corporation. Investment products Are Not FDIC Insured Are Not Bank Guaranteed May Lose Value The Bull Symbol and Merrill Lynch are trademarks of Bank of America Corporation. Certified Financial Planner Board of Standards Inc. owns the certification marks CFP CERTIFIED FINANCIAL PLANNERTM and CFP in the U.S. The CAP mark is the property of the American College which reserves the sole rights to its use and is used by permission. CRPC is a registered service mark of The College for Financial Planning. 2017 Bank of America Corporation. All rights reserved. ARY4YNM3 AD-07-17-0558 471003PM-0217 08 2017 www.sfbwmag.com DECEMBER 2017 7 LETTER FROM THE EDITOR Editor-in-Chief Kevin Gale Beautiful Business Even if you aren t a fan of modern and contemporary art you have to appreciate the impact of art and design on the South Florida economy. Miami s Art Week which includes Art Basel Miami Beach Design Miami and Art Miami has an economic impact that one source estimates could be 1 billion. This month s cover story pays homage to developer Craig Robins who launched Design Miami. Robins Dacra Development dates to 1987 and has developed more than 2 million square feet of real estate projects fueling the renaissance of South Beach and the Design District where he is a major landlord. Like one of our previous cover personalities Phillip Frost Robins interest in art goes back to his experience in college. While Frost studied in France Robins studied in Spain. Robins worked with Tony Goldman and Mark Soyka in the mid-1980s when the restoration of art deco hotels was just starting to take off. He also partnered with Island Records founder Chris Blackwell to help renovate numerous properties. Those who haven t lived in South Florida for the last three decades might not realize that the art deco hotels used to be filled with retirees on fixed incomes. One of my initial exposures to Robins work was Aqua a new urban residential community that was created on Allison Island. Robins smartly enlisted famed urban planners Duany Plater-Zyberk and 10 architects whose different designs give the project an organic look instead of the homogeneity found in many projects. After Aqua and South Beach Robins focused on the then-troubled Design District. The district had experienced an exodus of tenants in the 1980s and 1990s. Many of them fled Miami which had a wave of crime and unrest for the Design Center of the Americas in Dania Beach. Robins launched Design Miami in 2005 to coincide with Art Basel. That gave a good reason for international collectors to cross over the causeway and visit the mainland. Robins is a noted art collector and helped found the Institute of Contemporary Art whose new home was scheduled to open Dec. 1. He also is on the board of trustees of the Perez Art Museum Miami. It s thanks to visionaries like Robins that South Florida has become an international hot spot. 8 DECEMBER 2017 www.sfbwmag.com Let Us Take a Look At Your Employee Benefits Needs Arthur Novoseletsky Samantha Graveline Laura Sherwin Antonio Tavares Francisco Menendez 1201 W. Cypress Creek Road 130 Fort Lauderdale FL 33309 954- 776-2222 1-800 648-9303 www.bbftlaud.com Medical Insurance Level Funded Fully Insured Self-Funded Prescription Drug Dental Insurance Vision Insurance Disability Insurance Short Term Disability Long Term Disability Life Insurance Voluntary Programs Assistance with COBRA HR Benefits Compliance Online Enrollment Technology Brown & Brown Benefit Consultants 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 Christine Alexis Pete Collins Gerry Czarnecki Stephen Garber Alma Kadragic Martin Lenkowsky Darcie Lunsford Julie Neitzel Nick Sortal Greta Schulz Downtown Photo Fort Lauderdale Evelyn Robles Larry Wood Photographers Associate Publisher CLAYTON IDLE cidle sfbwmag.com Managing Director RON MANN rmann SFBWmag.com rlopez sfbwmag.com LORI CASTLE lcastle sfbwmag.com Market Directors GEORGETTE EVANS gevans lmgfl.com RICH LOPEZ Sandy Lechner slechner lmgfl.com Josh Wachsman jwachsman lmgfl.com OPERATIONS DIRECTOR Monica St. Omer monica lmgfl.com MARKETING & EVENTS COORDINATOR Estefania Marin emarin lmgfl.com CHIEF OPERATING OFFICER CONTROLLER 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. 10 DECEMBER 2017 www.sfbwmag.com IT ALL STARTS WITH A SMART IDEA. MIAMI S FIRST STUDENT CONDO You ve heard about it now here it is Introducing University Bridge Residences a smart property opportunity directly connected to FIU via a brand new 11M pedestrian bridge. Premium amenities include resort-style pool rooftop lounge study areas and more. Everything about University Bridge is designed for student success. Smart buy. USA s 4th largest university and Florida s fastest growing FIU projects 65 000 students in 5 years but has accommodation for only 8% of students University Bridge meets the high demand with 492 furnished rent-ready condos and over 60 000 sf of premium studentfocused amenities Smart student condos range from studios to 4 beds 4 baths Smart and innovative fixed annual leaseback option available FURNISHED. MANAGED. TURNKEY. CONDOMINIUMS 190 S FROM THE BROKERS ARE WELCOME. BE SMART. REGISTER NOW. UNIVERSITYBRIDGEMIAMI UNIVERSITYBRIDGE.COM DEVELOPED BY ARCHITECTURE BY 1-800-596-3369 EXCLUSIVE SALES & MARKETING BY PROPERTY MANAGEMENT BY ORAL REPRESENTATIONS CANNOT BE RELIED UPON AS CORRECTLY STATING THE REPRESENTATIONS OF THE DEVELOPER. FOR CORRECT REPRESENTATIONS MAKE REFERENCE TO THIS BROCHURE AND TO THE DOCUMENTS REQUIRED BY SECTION 718.503 FLORIDA STATUTES TO BE FURNISHED BY A DEVELOPER TO A BUYER OR LESSEE. All images and designs depicted herein are artist s conceptual renderings which are based upon preliminary development plans and are subject to change without notice in the manner provided in the offering documents. All such materials are not to scale and are shown solely for illustrative purposes. The project graphics renderings and text provided herein are copyrighted works owned by the Developer. All rights reserved. Unauthorized reproduction display or other dissemination of such materials is strictly prohibited and constitutes copyright infringement. www.sfbwmag.com DECEMBER 2017 11 ONE LINERS BROWARD Leadership Broward honored prominent business leaders and raised 198 000 at its 2017 Profiles in Leadership black-tie ball. BBX Capital Real Estate is investing in Chapel Grove a 12-townhome community in Pembroke Pines. Berger Commercial Realty sold Lauderdale Harbors Shopping Center for 1 million. First Green Bank announced earnings of 1.42 million an increase of 146 percent for the quarter ending Sept. 30 compared to the third quarter of 2016. Massachusetts-based health diagnostics company Alere is closing its Coral Springs and Boca Raton offices laying off 182 employees. Arc Broward promoted Julie Price to chief operating officer she has worked for the organization for 31 years. Thirty North Ocean a townhome-style condominium is planned for Fort Lauderdale Beach. 12 DECEMBER 2017 www.sfbwmag.com Broward Performing Arts Foundation welcomed two new board members Ann Burris and Shawn Sackman. SFBW attended Mod Pizza s grand opening in Parkland the fast-casual pizzeria s first Florida location openings in Coral Springs and Kendall are planned. Gunster law firm shareholder A.J. Horowitz joined the board of directors of the Broward County Bar Association. Broward Health named two new CEOs Alice Taylor for Broward Health North and Sandra J. Todd-Atkinson for Broward Health Medical Center. Liberty Property Trust negotiated the lease renewal for generic drug maker Anrx at Weston Business Park. Continental Realty Corp. acquired the Ridge Plaza shopping complex in Davie for 21.3 million. Coral Springs-based Nordis Technologies partnered with timeshare developer Westgate Resorts. The 36th annual Rick Case Bikes for Kids program will donate up to 5 000 bicycles to children in need this holiday season. Carbogen Corporation paid 1 million for Lauderdale Harbors Shopping Center a twostory 5 640-square-foot retail property. Meyers Group celebrated the groundbreaking of Avery Place the first residential project of the Atlantic Avenue Corridor revitalization program led by the city of Pompano Beach. Tropic Ocean Airways is hiring for 100 positions at its Fort Lauderdale location. The Legacy 500 priced at 19.995 million was on display at the 2017 Wings Wheels Water at Sheltair Aviation. Encore Resort at Reunion a vacation home rental community near Orlando named Miami Dolphins legend Dan Marino its brand ambassador. www.sfbwmag.com DECEMBER 2017 13 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. That s why general aviation professionals and business travelers depend on Fort Lauderdale Executive Airport (FXE). Conveniently located in Uptown Fort Lauderdale FXE is positioned to enhance your business travel experience. Notable amenities include a 24-hour air traffic control tower U.S. Customs facility with clearing hours until midnight 24-hour security and your choice of four exceptional fixed-based operators. For eFFortless travel visit www.FlyFxe.com. 14 DECEMBER 2017 www.sfbwmag.com 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 CORPORATE EVENTS SOCIAL CELEBRATIONS AND MORE Book your special e vent at Miami s ne west venue overlooking Biscayne Ba y and the Miami skyline. 601 features two le vels of flexible e vent space floor to ceiling windows and an outdoor lounge. DINE WITH US A LA CARTE CHEF TABLE LOUNGE AND BAR Gam e Day di n i n g is open to all HEAT fans before dur i n g and after games. Come e arly s tay l ate an d en joy fan favorites or dine in style in the Pr ivate Dining Room. Sample from the craft beer wal l i n the Decanter Bar o r e njoy m ixology spec i a lties in the Tumbler Bar. G AT H E R AND CHEER GROUP HOSPITALIT Y AND GAME TICKETS Group dining and meeting space is available in 601 s chic outdoor Cabana or Private Dining Room with a waterfront vie w followed by all the excitement of Miami HEAT ba sket ball. BOO K YOUR 601 EXPERIENCE TODAY. 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 A R A M O S H E A T . C O M 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 www.sfbwmag.com DECEMBER 2017 15 ONE LINERS MIAMI-DADE Habitat Development Group has released a new rendering of Smart Brickell a 120 million mixed-use hotel and residential project France-based developer IC Property Capital will build a boutique hotel in North Beach. The world s largest Audi dealership opened in North Miami. British sport car company Aston Martin broke ground on its first luxury condominium tower Aston Martin Residence in downtown Miami. California-based Blue Bottle Coffee opened in the Design District 3818 NE First Ave. California start-up Nutshell WiFi inked a deal to provide automation marketing for Residence Inn Miami West. Panelists for a discussion on Coconut Grove David Martin president of Terra Carlos Rosso president of condo development for The Related Group Ina Cordle managing editor of The Real Deal Michael Schwartz award-winning chef and restaurateur Michael Comras CEO of Comras Company Chris Dekker commercial real estate broker for Mayfair Real Estate Advisors Robert Lloyd architect at Perkins Will Maurizio Farinelli owner. 16 DECEMBER 2017 www.sfbwmag.com Meridian Capital Group arranged 23.6 million in financing for The Atrium multifamily and retail property at 150 SE Third Ave. in Miami. Miami-Dade Aviation Department will launch the nation s first cargo flight tracker website. El Al Israel Airlines had a ribbon-cutting ceremony at Miami International Airport to mark nonstop service to Tel Aviv. The Florida Airports Council honored Miami International Airport with two awards for environmental conservation. Mast Capital s boutique development Louver House opened in Miami Beach s South of Fifth neighborhood. Endeavor Miami celebrated the region s entrepreneurship movement with its fourth annual gala held at the Faena Forum in Miami Beach. The Strand Bar & Grill opened at the Carillon Miami Wellness Resort on Miami Beach. Coral Gables Premier Assurance Group named Karen Cordero-Fleites director of marketing and communications. The Commonwealth Institute hosted its 14th annual leadership luncheon aboard Celebrity Equinox at the Port of Miami. Engel & Volkers Miami appointed Alexandra Elfmont as executive vice president. Giralda Place a mixed-use development in downtown Coral Gables completed a nearly 3 million renovation to its east tower. FIU s student-housing project University Bridge has revealed new renderings. Timothy Schmand is the new executive director for the Lincoln Road Business Improvement District. www.sfbwmag.com DECEMBER 2017 17 18 DECEMBER 2017 www.sfbwmag.com www.sfbwmag.com DECEMBER 2017 19 GB&T SFB&W Marine Wealth_7.78x10.25 FullPgADC.indd 1 10 24 17 3 58 PM ONE LINERS PALM BEACH Minto Communities opened Westlake a 4 500-home community in the newly created city of the same name in the western part of the county. Ben Asen former CEO of Lehman Brothers opened a new office for Matrix Private Capital Group in West Palm Beach. CenterState Bank closed on the 2 million financing of Boynton Industrial. JFK Medical Center paid 11.25 million for a nearby medical office building in Boynton Beach. The Titus Center for Franchising opened at Palm Beach Atlantic University. Lesser Lesser Landy & Smith expanded and opened a new office in Wellington. Mortgage loan firm NP opened a new branch in Delray Beach under the name Mortgage of Florida. Jupiter-based Jenoptik Optical Systems is expanding its manufacturing operations with a new cleanroom. 20 DECEMBER 2017 www.sfbwmag.com The Boca Raton Museum of Art is planning a 1.5 million renovation for new landscape and architecture led by Glavovic Studio and Studio Roberto Rovira. Boca Raton s Meridian Capital Group arranged the 12.5 million financing for the purchase of the Plantation Pointe shopping center in Plantation. U.S. News & World Report honored West Palm Beach s MorseLife Health System as a top nursing home. Boca Raton s society stakeholders raised 125 000 for nonprofits at the third annual Boca Raton Mayors Ball. Florida Atlantic University s Tech Runway celebrated the success of the 52 affiliated ventures at its 2017 Maverick Reception in Boca Raton. Bob Carter of Toyota North America will be awarded the National Automotive Lifetime Achievement Award at the 12th annual Boca Raton Concours d Elegance in February. Hurricane BTW a new fast-casual restaurant franchise from Hurricane Grill & Wings opened its first West Palm Beach location. Mercury Capital Advisors opened a new office in Palm Beach Gardens led by Robert Silvani. Driftwood Acquisitions & Development broke ground on its 50 million Canopy by Hilton in downtown West Palm Beach. Don McKenna is the new CEO of Jupiter Medical Center. The Economic Council of Palm Beach County named Michele Jacobs chief strategy officer. www.sfbwmag.com DECEMBER 2017 21 BUSINESS LEADER of the year Colin Brown Chairman & CEO JM Family Enterprises Started in 1991 the Florida Atlantic University Business Leader of the Year award celebrates the extraordinary accomplishments of Florida leaders and their impact on the overall business environment. Honorees are selected for their excellence in leadership vision innovation knowledge and experience transparency and social responsibility. This is the largest fundraiser of the year and supports College of Business students with scholarships. F L O R I DA AT L A N T I C U N I V E R S I T Y College of Business SPONSORSHIP LEVELS Platinum Sponsor ............................... 25 000 Gold Sponsor ...................................... 10 000 Silver Sponsor ..................................... 5 000 Bronze Sponsor .................................. 2 500 Corporate Friend ................................ 1 000 Individual Pass ................................... 150 each Full Page Ad ........................................ 1 000 (in program booklet) Friday January 26 2018 Boca Raton Resort & Club 501 E. Camino Real 7 00 a.m. Networking 8 00 a.m. Ceremony & Reception Half Page Ad ....................................... 600 (in program booklet) For more information about sponsorships Tonya May Assistant Director Special Events & Community Outreach tmay fau.edu To register business.fau.edu BLOY 22 DECEMBER 2017 www.sfbwmag.com M U S T- S E E M AT C H U P S T H E U L T I M A T E E X P E R I E N C E F O R 1 0 - G A M E S U I T E P L A N S N O W AVA I L A B L E FOR MORE INFORMATION 305.480.2522 SUITES MARLINS.COM www.sfbwmag.com DECEMBER 2017 23 COVER STORY Luxury retailers have flocked to the Design District 24 DECEMBER 2017 www.sfbwmag.com Craig Robins Artrepreneur Craig Robins plays key role in the Design District Art Week BY ALMA KADRAGIC The www.sfbwmag.com DECEMBER 2017 25 COVER STORY The idea behind the district was to create an open-air neighborhood feel reminiscent of European shopping plazas and to expand the neighborhood as time and sales allowed. We are really curating not just a retail center but a full visitor experience unlike any other in Miami. The architecture art and event programming that has been implemented in the neighborhood are so unique Robins says and we hope that all this adds to the community feel of the district. Miami Art Week visitors will see an expanded Design District with Paradise Plaza an urban park and retail plaza connected by the new Paseo Ponti to the original Palm Court. Paseo Ponti will feature shade sculptures by brothers Ronan and Erwin Bouroullec while a sculpture by Urs Fischer will distinguish Paradise Plaza. Also the district commissioned architecture and design firm Charlap Hyman & Herrero to bring simulated snow to the local palm trees via White Rain their installation of tinsel-like strands among the fronds. The new Institute of Contemporary Art building is due to open during Art Week on land donated by the district. For the opening the institute and the district will introduce a public sculpture series. Conceptual artist Sol LeWitt will begin the series with two monumental block-like ziggurats. Construction on the seven-story Museum Garage won t be finished by Art Week but it is guaranteed to surprise visitors with five startlingly different facades from five architects Work AC J. Mayer H. Clavel Arquitectos Nicolas Buffe and K R Architects with a mural by design firm Sagmeister & Walsh. Robins commissioned Terence Riley of K R to develop the plan for the Museum Garage and to coordinate the architectural firms collaborating on it. The relationship between the arts and economic development--encouraged by private and public sources--is becoming increasingly interesting for investors in South Florida and beyond. Several conferences around that topic were held in November. On Dec. 6 the fourth annual edition of the Florida Annual Family Office & Wealth Management Conference takes place as always on the day before Art Basel opens. More than 150 families representing 60 billion are anticipated to attend. Afterward participants can enjoy a week of art-related events. Robins can t wait for the first week of December. This phase of development for us is incredibly exciting as this is when guests will finally see the full potential and idea behind the Miami Design District come to life Robins says. The result will be good for the visitors but also for the district he adds. Miami may not have typical seasons Robins says but for the Miami Design District Art Basel is like Christmas. Artwork on the district s museum garage T he first week of December is when the world comes to Miami to see the latest in contemporary visual arts during three big annual events-- Art Basel Miami Beach Design Miami Art Miami--and a host of related fairs and other happenings. International and domestic visitors come to experience and sometimes buy art but even when they don t buy it they do spend money in hotels restaurants and stores and at events. Sometimes they acquire real estate and other property during or as a result of their visit. Patrick O Connell senior vice president for business development at EWM Realty International who works with condominium developers says Art Week has become a focal point of their marketing efforts over the course of the year and a significant portion of their marketing budget is dedicated to print and digital media. O Connell estimates the economic impact of Art Week in Miami exceeds 1 billion annually based on the interest it creates in the city resulting in more overnight visits and property sales he says. That number makes sense considering Miami-Dade County s nonprofit arts and culture industries alone generate 1.43 billion in annual economic activity according to Arts & Economic Prosperity 5 a study by Americans for the Arts--although it s impossible right now to determine the share of visual arts in the total. Also unknown how much for-profit companies add to the economic impact of the arts in general and visual arts specifically. www.sfbwmag.com Released in mid-October the study placed Miami among the top four American cities in the arts along with New York Chicago and Philadelphia. Unlike those older cities Miami s arts scene was built in less than a generation helping lead the region s transformation. Art Miami started in 1989. Art Basel arrived in 2002 and Design Miami followed in 2005. Design Miami was founded by developer Craig Robins who already had begun creating the Miami Design District. Initially the district was the home of furniture design but later it became Robins says a cultural hub and an incubator for design art and creative expression. As luxury retailers opened shops with products from Christian Louboutin Louis Vuitton Christian Dior and Cartier among others it gave us the resources to invest in a strong cultural foundation which we ve continued to do even through to this phase of development. Thomas Bayrle s Wire Madonna 26 DECEMBER 2017 Sa S T We Want You To Party With Us Cocktails Silent Auction Dinner & Live Concert Seminole Hard Rock Hotel & Casino Hollywood FL Saturday January 13 2018 Celebrity Host Nicko McBrain of Iron Maiden and... Rock & Roll Hall of Fame Class of 2016 ...known for their hits I Want You To Want Me Dream Police Surrender and The Flame Ja ll nu ic ow ko e ar d M b y cB y a 13 ra n 2 in A ll & 01 S p S ta 8 ec r J ia am lG w ue i th st s Sa da tur fo th wi m sts Ja u e r ta i a l G l-S Al p ec an S by i n & e d c B ra w llo M Fo cko i N Sa J y tu u an rd a ar 2 3 y1 8 01 N y Tables & Tickets available At HomeSafe we provide comprehensive programs preventing new cases of violence protecting victims of child abuse and domestic violence and preparing infants children young adults and families for safer more productive lives. www.sfbwmag.com www.HelpHomeSafe.org TheClassic2018 or call (561) 383-9842 The Design District s Palm Court DECEMBER 2017 27 EDUCATION Speakers Spark Inspiration BY ANDREA RICHARD Bret Baier Charles Osgood Inspiration sometimes comes easily and sometimes it s nearly impossible to find. But with the fifth installment of the Broward College Speaker Series success stories from a roster of impressive speakers promise to enlighten and enliven audiences. The four-part series at the Amaturo Theater at the Broward Center for the Performing Arts opens Wednesday Jan. 24 with Fox News Channel s chief political anchor Bret Baier. Audiences can expect a 45-minute talk on politics and the climate in Washington D.C. followed by a question-and-answer session with the audience. Baier has anchored more than 30 political special programs reported from around the world traveled with military officials and has interviewed numerous presidents. The other speakers Thomas Friedman Pulitzer Prize-winning foreign affairs columnist for The New York Times (Feb. 21) Laila Ali champion boxer host of CBS s All in with Laila Ali and the daughter of Muhammad Ali (March 27) and Charles Osgood Emmy Award-winning broadcaster reporter and commentator for CBS (April 18). In addition to the talk the speakers will spend time on Broward College s campus with students in what will be similar to fireside chats says J. David Armstrong the college s president. The students are overwhelmed and overjoyed when these speakers come on campus and engage them talking in-depth Armstrong says. These are opportunities our students may have never had in their lives. For me that s even more important than the speech at the Broward Center--getting the students involved. When selecting speakers for the series Armstrong says it s important that the speaker not only has a success story but also shares the college s regard for community engagement. We want people who are giving back to their communities--something special such as having a foundation he says. Last year Angela Duckworth the author of Grit The Power of Passion and Perseverance was considered a hit. Students who met with her had read her book and she said that throughout her extensive speaking experience she had never seen such engagement from students Armstrong says. One student approached her for an internship and Duckworth provided her personal email address. It s more than hearing the speech Armstrong says hoping audiences gain some takeaways and run with them. It s taking the information and doing something with it to better serve our community. Tickets are 60 available at browardcollegespeakerseries. com. www.sfbwmag.com Laila Ali Thomas Friedman 28 DECEMBER 2017 Did someone say SECOND CHANCE RYAN LOCHTE Twelve-Time Olympic Medalist GET YOUR SECOND CHANCE visit Debt.com today or call 800.810.0989 www.sfbwmag.com DECEMBER 2017 29 TotalBank President Jay Pelham greets attendees at the Britto Central event Britto self portrait Famed artist tells entrepreneurs to follow their passion An Evening with Britto T otalBank hosted an exclusive social event at Romero Britto s gallery on Lincoln Road in Miami Beach. While a guitarist played soft acoustic music in the background a crowd of elite professionals mingled amid the brilliant and colorful artwork at Britto Central 1102 Lincoln Road. SFBW was the media partner for the event. Editor Kevin Gale conducted an interview with Britto in which the internationally soughtafter neo-pop artist divulged what inspires him. Hint It s what he finds around him--subjects such as animals nature and people but most of all love. I love what I do and I want to share it with everyone Britto says. The Brazilian-born Britto a Miami resident has a success story any budding artist would envy. The self-taught painter s rag-to-riches tale about becoming a self-made worldwide commercial success has landed him major deals with corporations throughout his artistic career. It all started when he painted scraps of cardboard and sold them in Coconut Grove. He eventually was commissioned to design bottle labels for Absolute Vodka and Britto was on his way to stardom. The New York Times describes his works as exuding warmth optimism and love which are the characteristics that attracts leagues of collectors and buyers-- from the ultrawealthy celebrities and politicians to the kid who loves Disney figurines. Among his most recent efforts is his largest sculpture--a giant pig for NetDragon Websoft s headquarters in Fuzhou China. Britto s pop sensibility has led to collaborations with international companies such as Audi Bentley Coca-Cola Walt Disney Evian Hublot and Mattel. When asked about the biggest misconceptions 30 DECEMBER 2017 www.sfbwmag.com FEATURE Alby Lovelace and Romero Britto James Venney and Marlene Goldman Elizabeth Baker and Steven Cronig www.sfbwmag.com DECEMBER 2017 31 FEATURE The Britto Central gallery is near the west end of the Lincoln Road Mall about being an artist and an entrepreneur he says that he doesn t worry about it. Instead he chooses to focus on the optimistic side of life. I wouldn t get anything done if I concentrated on the negative he says. One stressful moment however was during Hurricane Irma. He was out traveling in Europe and he had to rely on his team to secure his artwork. Fortunately there were just some minor leaks at Britto Central and the works were unscathed. He also discussed the growing side of his e-commerce business which is handled at his Wynwood headquarters. Consumers can buy everything from Britto keychains and luggage to Disney figurines the latter being part of a longstanding deal and resulting in his biggest sellers. Since sales are up he plans to outsource the e-commerce operation. It s become too much for us to do he says. He marvels at the power of social media telling how an Instagram post led to the sale of a major work that costs in the tens of thousands. Britto s advice to entrepreneurs in general is that they should pursue their passion. In his case he told the audience he was going to be an ambassador SFBW Editor Kevin Gale interviews artist Romero Britto and went off to law school but realized he wouldn t be happy doing so. He dropped around the globe. He has created public out of law school and launched his career art installations for the 02 Dome in Berlin New York s John F. Kennedy Airport and as an artist. Britto has exhibited in galleries and Cirque Du Soleil at Super Bowl XLI museums in more than 100 countries and he has been credited with the largest including the Salon de la Soci t monumental sculpture in the history of Nationale des Beaux-Arts exhibition at London s Hyde Park. He was an official Paris Carrousel du Louvre in 2008 and artist for the 2010 World Cup in South 2010. In 2013 Maria Elena and Carlos Africa an ambassador to the 2014 FIFA Slim Domit invited Romero to be the first World Cup in Brazil and was invited to living artist to exhibit at Museo Soumaya. be an honorary torchbearer for the 2016 Slim is the son of Carlos Slim H lu who Olympic Games in Rio de Janeiro. Britto s big heart extends to the greater was ranked as the world s wealthiest good as he has donated his time art and billionaire from 2010 to 2013. The back of Britto Central is filled with resources to more than 250 charitable photos of Britto posing with a broad array organizations worldwide. He believes of celebrities and installations of his works art is too important not to share. 32 DECEMBER 2017 www.sfbwmag.com EXCELLENCE IN HUMAN RESOURCE AWARDS 2018 Presented By CALL FOR NOMINATIONS The Excellence in Human Resource Awards will celebrate the region s outstanding HR professionals who build and nurture the talent within their organizations. SFBW is excited to recognize these individuals who have helped to elevate local companies to the top of their industries. We will be honoring HR professionals in the following industries Accounting Banking & Finance Services Education Health Care Hospitality Insurance Legal Marketing & Public Relations Non-Profit Real Estate & Construction Technology Transportation & Logistics Lifetime Achievement Award Celebrating human resourcefulness To nominate VISIT OUR WEBSITE www.sfbwmag.com signature-events hr-awards nominate GOLD SPONSOR www.sfbwmag.com DECEMBER 2017 33 CORPORATE GOVERNANCE Behind Boardroom Doors A veteran director gives insights on how to succeed BY KEVIN GALE Betsy Atkins is sharing her decades of experience as a corporate director in the third edition of the instructive and engrossing book Behind Boardroom Doors Lessons of a Corporate Director. SFBW readers may be familiar with Atkins from some of her recent guest columns. The Coral Gables resident serves on the boards of Cognizant HD Supply SL Green Realty and Schneider Electric. She is also a member on the board of Volvo Cars and the SAP Advisory Board. Just as important though Atkins brings experience as a threetime CEO a serial entrepreneur and the founder of Baja Corp. which built three early stage funds and made early investments in Yahoo and eBay. While the book s title might indicate it is written for directors it has a lot of insight on how CEOs and other C-suite executives can best interact with their boards. There s a lot of discussion about the roles of boards versus executives. Board members have oversight responsibility for strategy and may contribute input. The critical delineation is that management owns operates and implements strategy Atkins writes. Boards represent shareholders in making sure strategies are robust not just for the short term but the long term which may be an even more critical responsibility. The most gripping chapter in the book is Crisis Management. Atkins experienced what she calls every director s nightmare Joining the board of a company just before it was hit with massive criminal fraud accusations. The company in question was HealthSouth. On March 19 2009 Atkins wrote in her diary that the day started off regularly but then she got word that the Securities and Exchange Commission had filed civil fraud charges against HealthSouth and Chairman and CEO Richard Scrushy. With Scrushy s chairman role compromised Atkins stepped into the lurch as chairman of the special litigation committee and organized a series of rapid-fire board meetings that day. It culminated in a 7 30 p.m. meeting about whether Scrushy should be removed who would be chairman and who would become CEO. Readers will find a surprising twist in what prompted Atkins to leave the company after only 16 days amid all the turmoil. While Atkins also draws from lessons at other companies she served as director including the tech meltdown that slammed Lucent Technologies she also looks at how other companies handled problems such as the publicity from a passenger being dragged off a United Airlines flight and BP s disastrous oil spill in the Gulf of Mexico. Atkins spends time in the book talking about directors role in hiring and firing of CEOs. One key piece of advice BETSY BEHI B OA R D N D ROO D OOR S M LESSO NS OF A COR PO R AT E D IRECT OR AT K I N S When you start to think there is something amiss go and investigate it actively. Too often when the board gets a whiff of problems the rest of the company is fainting from the smell she writes. Atkins also has insight into board dynamics such as handling rogue directors and avoiding coup d etats led by directors who just want the CEO s job. Atkins give logical approaches for board diversity (it s as much about skills and background as it is about gender and race) and how to keep boards from going stale. There s a way to be graceful in moving out board members who might have been great in their day but need to be replaced with someone who brings critical skills. Atkins also gives a lot of attention to critical corporate issues such as the pace of technological change and cybersecurity. Atkins book is well timed because news headlines these days offer a steady stream of companies and directors in crisis. The third edition of the book has fresh examples of trends trouble and how directors can prepare for them. Betsy Atkins is a serial entrepreneur and three-time CEO. She is CEO and founder of Baja Corp. and on the board of Cognizant Schneider Electric 34 DECEMBER 2017 www.sfbwmag.com CORPORATE GOVERNANCE Fort Lauderdale s Premier Waterfront Venue Located along the scenic Intracoastal Waterway in Fort Lauderdale Grateful Palate Catering & Events offers a truly unique setting to host your corporate event. Our 4 000 square foot venue offers impeccable service and exceptional food alongside breathtaking waterfront views. Our celebrated culinary team and dedicated catering staff specialize in off premise events throughout South Florida. www.sfbwmag.com DECEMBER 2017 35 3003 NE 32 Avenue Fort Lauderdale Florida 33308 954-566-3044 thegratefulpalate.com events thegratefulpalate.com LAW The Cannabis Buzz About Challenges abound for medical marijuana businesseS BY KEVIN GALE The expansion of medical cannabis in Florida presents many opportunities but enacting it has been a cumbersome process with lots of red tape says the co-managing director of a South Florida law firm that s a national leader in legal issues about the matter. It s also creating more discussions in businesses whose leaders wonder whether they will have to accommodate employees who use cannabis. It s really exciting to see what has taken place and there s so much more to come says Gerald Greenspoon of Greenspoon Marder who gave the opening remarks Oct. 26 at the second Canna Law and Business Conference and Expo at the Bonaventure Resort and Spa in Weston. Greenspoon Marder is unique among large national law firms in launching a cannabis practice. It now has lawyers versed in cannabis issues in Florida Colorado Oregon Nevada and California. Florida takes a vertically integrated business approach to cannabis. Each licensee grows its own cannabis and then distributes it to up to 25 dispensaries. The number of dispensaries will grow as the number of patients increases. When Greenspoon gave his talk the 46 000 medical marijuana patients enrolled in the state had already surpassed the number in New York. The big shadow still overhanging the cannabis field Marijuana is still a narcotic classified along with cocaine and heroin and illegal under federal law. Cannabis industry leaders worry that U.S. Attorney General Jeff Sessions could lead a crackdown having already stated his opposition to legalized marijuana. Because of marijuana s federal status employers still may pursue drug-free-workplace standards says Myrna Maysonet a shareholder with Greenspoon Marder. If a company wants to accommodate employees use of cannabis for a medical condition it could--but not if doing so creates a safety issue she says. There have been cases that were litigated and the employee lost she says. In only a few cases including one in Rhode Island has an employee prevailed because of protective state statutes. There s no protection in Florida. What Florida did is kind of splitting the baby in half I will give what voters voted for but I am not giving you any protections she says. Deciding whether to accommodate someone may boil down to a cost benefit analysis she says. For example if you are looking for gamers and developers if you do drug testing you may not get anybody. 36 DECEMBER 2017 www.sfbwmag.com www.sfbwmag.com DECEMBER 2017 37 LAW ENABLING LEGISLATION Florida Senate Bill 8A has played a key role in implementing the constitutional amendment passed by voters last year. While patients still can t smoke marijuana the bill allows vaping oils and edibles. Patients can get 210-day supplies in three 70-day increments. Chronic pain is one of the criteria for getting medical marijuana which it wasn t under the state s previous medical marijuana law which was more restrictive. Provisions for research independent testing and education were included in 8A. The state health department was portrayed as being somewhat slow in implementing the law. Greenspoon Marder Senior Counsel Matthew Ginder says litigation after the amendment has been cited by the department as one reason the process is slow. One pending lawsuit involves a license reserved for black farmers. Patients have faced delays of three months to get cards that show they qualify for medical marijuana. Ginder says the department is working on a contract for a vendor to issue the cards. One state senator went through the application process herself and lashed out at the department for being slow. She talked about patients who died and couldn t get access says Eric Stevens deputy executive director of Florida for Care a nonprofit educational organization. Audience member Ivan Field CEO of the statewide clinic operator Marijuana Doctor stepped up to the microphone during a Q&A session and said he also has had patients die without access. He said patients should be able to get a recommendation from their doctors and get it filled immediately. There also are worries among doctors about how the State Board of Medicine will treat them such as how much documentation they need to justify a recommendation for a patient to consume cannabis. Physician Michelle Weiner of South Florida-based Prime Wellness Integrative Medicine whose doctors can make medical marijuana recommendations says doctors should develop templates that would show how a condition not listed in the constitutional amendment such as anxiety is similar to one that is listed such as Parkinson s disease. That would help show where the evidence is similar and why treatment is justified. Over time that would help the qualified diagnosis list expand. MORATORIUMS AND BANS On the local level some cities and counties vary widely on how they handle dispensaries. Some such as Orange County are enacting bans while others are calling for moratoriums. Attorney Michael Minardi chairman of Regulate Florida which advocates regulating marijuana like alcohol says some local governments aren t thoroughly educated about the issue he says some leaders don t understand marijuana can be grown indoors. He s talked with city and county commissions throughout the state and says many don t know what to do. Some are enacting moratoriums prohibiting dispensaries to give themselves more time to figure out what they will do in the long term. FINANCE AND TAXES First Green Bank has been addressing one of the biggest issues with cannabis businesses statewide--the difficulty to get bank accounts because cannabis is still a Schedule I drug under federal law. Lex Ford senior vice president of First Green Bank says his institution has accounts for six of the seven original Florida dispensaries. The wife of the bank s founder had seizures after an anesthesia episode and was able to wean off traditional medication by using cannabis Ford says. Now she speaks around the state about the positive aspects of medical marijuana. We re not making money. We are doing it for the good of the industry and believe in the good that it s doing Ford says. First Green is enlisting technology to ensure good compliance. One is software from Fort Lauderdale s BioTrack THC that tracks cannabis from seed to sale. The bank also uses CanPay which is billed as the world s first debit payment app for retailers. Steve Jancic CEO of Denver-based Amercanex which has a cannabis electronic trading platform lauded Green Bank s efforts. Jancic says he has had accounts closed at five banks even though he supplies only technology to the industry. Mary Gelinas a principal at South Florida accounting firm Daszkal Bolton says record keeping is critical in the cannabis industry. The state requires audited financial statements so systems such as BioTrack s are necessary to provide proper documentation. Marijuana businesses also cannot deduct many normal business expenses because of cannabis federal status. Many of them pay 70 to 90 percent of gross profit in taxes. There are businesses that have gone bankrupt when their tax bill has come up and they couldn t pay it she says. Some businesses have managed to segregate the legal activities such as caregiving to minimize their tax situations she says. GROWERS AND DISPENSARIES Despite the obstacles medical marijuana treatment centers are turning into major businesses which was outlined by three speakers. Jake Bergmann founder and CEO of Surterra Holdings a provider of medical cannabis and devices is cultivating 300 000 square feet with 17 strains of cannabis. His 100-employee company uses carbon dioxide extraction methods to turn marijuana into a highly refined oil. Surterra has dispensaries in Tallahassee and Tampa and plans to have up to 10 statewide by the end of the second quarter of 2018. Kim Rivers is CEO of Trulieve which has dispensaries in 11 cities including Miami and about 225 employees in the state. It offers nearly 50 products including capsules nasal sprays vaporizers oral syringes and tinctures which are placed under the tongue. Jose Hidalgo the founder of Knox Medical wants to establish a global brand for medical marijuana. It s licensed in Florida Puerto Rico Pennsylvania and Texas and has made an acquisition in Canada. Knox is the largest greenhouse grower of medical cannabis in Florida approaching 700 000 square feet. It has fewer than 100 employees in Florida and about 150 companywide and plans to open dispensaries in Lake Worth Miami Beach Hialeah and North Miami Beach. All three companies offer statewide delivery. 38 DECEMBER 2017 www.sfbwmag.com Special Marketing Feature The Falls Club - an inviting and exclusive experience where our Members Matter Most --BY MARK HOPKINSON P alm Beach County is known as Florida s Golf Capital in recognition of the wealth of public and private courses that span the county. Against this rich tapestry of choice The Falls Club of the Palm Beaches which recently completed spectacular enhancements to its championship golf course and an inspired club house redesign is enjoying a surge in new memberships. The multi-million-dollar capital improvement project at the club conveniently located on Jog Road north of Hypoluxo Road has been embraced by both current and new members. New memberships are up 20 percent and continue to show gains over the same period last year says The Falls Club General Manager Richard Stropp. The majority of new memberships are referrals from current members. Our members love that as a nonresidential club there are no homes here to distract from their pure enjoyment of the game. We re redefining world class golf gracious hospitality exclusive membership and a financial stability that is guaranteed. Stropp says. DINING AT THE FALLS CLUB Gracious hospitality world-class golf and tantalizing cuisine without homes initiation fees assessments and tee times. PREMIER GOLF EXPERIENCE The Falls Club is setting new standard as a premier golf experience where Members are also afforded reciprocal access to other private clubs. Its high-end services and amenities include an exquisite food and beverage program overseen by chef Daniel. The celebrated chef has worked at some of the finest restaurants including db bistro New York and as Chef De Cuisine at Cafe L Europe. FIVE STAR HOSPITALITY Set on 170 acres of a lush tropical oasis with no initiation fees no assessments no fixed tee times an outstanding caddie service and impeccable personal attention Members are enjoying an inviting and exclusive five-star hospitality. A fully appointed golf shop an outstanding caddie program complimentary snack pavilion tennis courts health club separate men s and ladies card rooms expansive locker rooms a relaxed and casual 19th-hole and full-service Grille Room restaurant along with a bar & lounge defines the exclusive Palm Beach lifestyle at The Falls Club. To inquire about membership opportunities visit www.TheFallsClub.com or contact Membership Director Steve Brauner at (561) 964-5700 or sbrauner TheFallsClub.com www.sfbwmag.com DECEMBER 2017 39 HOSPITALITY Seminoles going big with guitar-shaped hotel 1.5 billion upgrade BY NICK SORTAL The current hotel at the Seminole Hard Rock Hotel & Casino is 12 floors which is small by Las Vegas standards but large enough to tower metaphorically over the gambling scene in South Florida. And it s nothing compared to what s next. Seminole officials gave details in October of a massive expansion that has been in the plans now for almost a decade. It includes a 450-foot guitar-shaped hotel that almost triples room space and a new 7 000-seat concert hall that officials hope will attract events such as awards shows. Here in Hollywood Florida it will rival anything in Hollywood California says Jim Allen CEO of Seminole Gaming and chairman of Hard Rock International. The new hall will cost 100 million he says and the existing 5 500-seat Hard Rock Live will be razed in March. Allen hosted reporters Seminole tribal members and others at an outdoor event under a large tent just a few feet away from the new project which carries an estimated cost of 1.5 billion. The work is expected to be completed in summer 2019. The NFL Miami Dolphins stadium is called Hard Rock Stadium and the Seminole tribe wants a big splash for the Super Bowl when Miami holds it in 2020. Bruce Springsteen s guitarist Steven Van Zandt also appeared at the event and Nicko McBrain of Iron Maiden gave a drum solo prelude to the customary guitar smash at Seminole Hard Rock events. Allen says he has been working for about a decade on plans for the hotel which is being built where the old Seminole Paradise was. We think the building itself will be a must-see attraction he says. Seminole publicists compared the guitar-shaped hotel to Paris Eiffel Tower the St. Louis Gateway Arch and the Washington Monument. There s also a 10-acre pool complex that will include something called the Bora Bora Experience with private villas surrounded entirely by water and waterfalls. Chickeecabanas will dot the banks of the lagoon-style resort pool which will also include beach club dining and activities such as canoes and paddleboats. When completed the hotel will have about 1 300 rooms 3 500 slot machines 200 table games and 60 000 square feet of new retail and restaurant space. The existing hotel opened in 2004 and has been at 96 percent capacity ever since Allen says. We have not had a mass-marketing campaign outside of this 50-mile radius because frankly we have never had the space Allen says. The tribe announced plans for the hotel during compact negotiations back in March 2015 and offered renderings a year later during a visit by Gov. Rick Scott to the tribe s Hollywood headquarters. A year later workers knocked down the existing Seminole Paradise and cleared new space moved concrete and started construction. The Seminoles firmed up their financial future in July when Scott announced settlement of a lawsuit between the state and the tribe allowing the tribe to conduct blackjack and other table games at its casinos in the state through 2030. With that as a baseline for their revenues the tribe accelerated the hotel project. Before you spend this kind of money you need a solidified political environment Allen says. And the actions of Gov. Scott solidified more than 3 000 permanent jobs here at this site alone. It would be unfair to not acknowledge the work of Gov. Scott. The Hollywood property already is a major player. Its haul for the fiscal year ending June 30 2016 the most recent data available was more than 579 million--more than what the eight South Florida pari-mutuel casinos earned combined. Figures reported to the state for 2015-16 show the tribe s seven Florida casinos took in 2.3 billion. Allen added that he is proud to have a top-level financial rating from all three major entities--Moody s Fitch and Standard & Poor s--saying you d be surprised at how respected we are. Florida s other gaming venues are struggling. Horse tracks dog tracks and jai alai frontons are pleading with the Florida Legislature to get their slot machine taxes reduced from 35 percent to 25 percent and to get low-stakes blackjack. They re also trying to get out of the requirement to conduct pari-mutuel activities--namely dog racing and jai alai--that are losing money. Demonstrating how much further they re falling behind is likely to bolster their argument with legislators. The Seminoles rise is part of a national trend involving Native American casinos. Revenues for Indian casinos now surpass those of commercial casinos according to a study published in April by economist Alan Meister of California-based Nathan Associates. The year-over-year revenue chart for Indian casinos looks like a hill the commercial casinos show only a mild incline. 40 DECEMBER 2017 www.sfbwmag.com www.sfbwmag.com DECEMBER 2017 41 Informa makes impact with boat show BY ANDREA RICHARD AND KEVIN GALE Smooth Sailing was widespread positive feedback on the new Wednesday-Sunday schedule which replaced the Thursday-Wednesday schedule of past years. Charlie McCurdy CEO of Informa Global Exhibitions spoke at a media kickoff for the show and at a business luncheon on the opening day. Fort Lauderdale has the biggest boat show in the world he said and we are going to make it the most spectacular. McCurdy provided an outsider s perspective of Fort Lauderdale and why Informa already has invested 7 million to improve the show. Miami is a great city but this is a city that s got the future. It s a city on the make he told the audience. He lauded how the business community and government organizations welcomed him saying he would recommend to any CEO that they consider operating in the area. Barnum & Bailey had the Greatest Show on Earth. Fort Lauderdale has The Best Show on H2O in the words of Mayor Jack Seiler. The Fort Lauderdale International Boat Show had what might be called chamber of commerce weather for its Nov. 1-5 run. It even gained exposure on NBC s Sunday Night Football with beauty shots of yachts and a mention by the sportscasters of an enjoyable afternoon on the water. The show provided the debut for Informa Global Exhibitions which took over management of this year s show which is owned by the Marine Industries Association of South Florida. Changes included better signage and composite flooring in the exhibition tents which weren t necessary this year because there was no major downpour. There McCurdy shared some of his experiences in boating noting that he celebrated his first birthday on a boat and was photographed safely tucked away in a laundry hamper. His father designed power yachts and ocean racing yachts including a design that won the America s Cup. With a terrorist attack in New York on everyone s mind he said the show developed a multilevel approach to security including consultants surveillance cameras barriers and drones. The Global Business Luncheon included McCurdy Lisa Lutoff-Perlo president and CEO of Celebrity Cruises and Sergey Petrossov CEO of JetSmarter. Petrossov s company is looking to build 50 000 square feet of office space and 100 000 square feet of hangar space at Fort Lauderdale-Hollywood International Airport. Petrossov s 42 DECEMBER 2017 www.sfbwmag.com MARINE company is revolutionizing air travel much like Uber and Lyft have changed auto travel--by matching its members with available seat inventory on private jets. That means a trip might cost 2 000 instead of 10 000. He said JetSmarter chose South Florida for its headquarters because it s second only to New York for flight originations and destinations. It s also cost-effective the Fort Lauderdale company is centrally located and can recruit talent from the three-county region. Like McCurdy he didn t anticipate the number of people in the community who reached out and supported the launch of his company. Here it seems like we matter and it gives us a good feeling inside that we have friends around us he said. Perlo echoed that People underestimate how wonderful it is to do business here. ... I wish that so many other businesses would know that. Although Celebrity and its parent company Royal Caribbean are based in Miami the bulk of Celebrity s ships sail from Port Everglades. More international flights from Fort Lauderdale Hollywood International Airport are on her wish list. I think that s a big opportunity. We call ourselves an international airport but we don t have a lot of international lift said Perlo a Broward Country resident. Phil Purcell CEO of the marine association said the show benefited from a new foreign trade zone that allows boats to be imported and exported without paying duties which helps gain sales from foreign buyers. He added the marine industry also supports research noting that an event involving Leonardo DiCaprio raised 14 million at the Monaco Yacht Show which is also operated by Informa. South Florida might soon become well-known as a scientific center with the formation of the Marine Research Hub which is filing as a 501(c)(3) nonprofit Bob Denison and Ken Denison walking the docks on the first day of the FLIBS Artist Guy Harvey talked about the importance of marine research www.sfbwmag.com DECEMBER 2017 43 MARINE Bob Swindell Howard Greenberg Guy Harvey Michael Heithaus Roni Avissar Tracey Sutton Richard Dodge Joshua Voss Phil Purcell group. It is a partnership between the region s universities including Florida International University Florida Atlantic University Nova Southeastern University and the University of Miami which have existing programs in place. On the second day of the boat show the hub hosted a breakfast on the Grand Floridian luxury charter yacht with artist Guy Harvey as its keynote speaker. The colleges marine research scientists also discussed various projects are in the works. Harvey talked about the increasingly disturbing shark exploitation in which millions of sharks are killed annually to sell their fins on the black market. He says sharks have powerful immune systems and can heal rapidly so research is being conducted on how sharks could help human health. His Guy Harvey Ocean Foundation conducts scientific research and advocates for marine conservation. FIU s Michael Heithaus shared a snippet about the program s Aquarius Reef Base which is located off of Key Largo 60 feet beneath the ocean s surface. It is the only underwater ocean laboratory where scientists can spend up to nine hours underwater studying the marine ecosystem he said. NSU s center in Dania Beach bears the name of Harvey who told the audience he launched his business at the boat show 31 years ago. Sea urchins are being studied as a possible source of medicine BY THE NUMBERS 857 million .............. Economic impact 3 million .................... Square feet of exhibitions 100 000-plus ............. Number of attendees 7 ................................. Miles of floating docks 89 ................................... Number of yachts over 100 feet 26 ............................... Number of yachts over 150 feet 6 ................................. Number of yachts over 200 feet 44 DECEMBER 2017 www.sfbwmag.com MOD Pizza is the original superfast pizza experience. A cool place to eat an inspired place to work. MOD Pizza serves individual artisan style pizzas and salads made superfast... any toppings same price. What is MOD Pizza NOW OPEN COMING SOON SHOPPES OF PARKLAND 7171 N State Rd 7 Parkland FL 33067 MODpizza.com THE WALK 2704 N University Dr Coral Springs FL 33605 45 www.sfbwmag.com DECEMBER 2017 BBX Capital is the exclusive franchisee for MOD Pizza for the state of Florida. Alternative Approach Diversification strategy looks strong as 2018 approaches BY KEVIN GALE Alternative investments often have suffered in comparison to plain vanilla strategies such as investing in the S&P 500 index amid a bull market for equities. However the outlook for hedge funds private equity and other alternative investments looks strong as the end of 2017 approaches. The topic was highlighted at the Florida Alternative Investment Association s meeting of the Americas which was held Oct. 19 at the Akerman law firm s office in Brickell City Centre. The meeting demonstrated how South Florida can be a crossroads for investing in Latin America and the Caribbean just as it is for international trade. South Florida economic development officials have been urging hedge funds and other wealth companies to relocate to the region. Sustainable investing and using new technology to pick investments were among the hot topics at the FLAIA event. Leopold Peavy head of investor products at Preqin presented a chart that showed hedge funds had a 10.9 percent return over 12 months ending in June compared with 15.46 percent for the S&P 500 index. Hedge funds with 3.25 trillion in assets and private equity with 2.58 trillion in assets represented the vast majority of the alternative assets under management. One of Peavy s slides showed private equity has roughly doubled the total return of the S&P 500 since 2000. First-time private equity funds have outperformed established funds but the gap has narrowed. North American real estate continues to be popular with investors although Peavy thinks some investors may be pulling back after strong returns in recent years. Closed- end private real estate funds raised 20 billion in the third quarter and 65 percent of that was secured by North Americanfocused funds Preqin s data found. The biggest amount raised was 4 billion by Carlyle Real Estate Partners. A panel gave insights into the perspective of family offices and other asset managers. Brett Hickey founder and CEO of Star Mountain Capital says debt with high single-digit yields and lower-risk profiles are attractive. Demand for capital in the debt markets has increased so much that leverage is at an all-time high he says. Covenants to protect capital have dropped. One opportunity for PE firms and their investors are deals of less than 150 million because companies such as Goldman Sachs aren t pursuing that space he said. Underwriters can get 15 46 DECEMBER 2017 www.sfbwmag.com WEALTH Industry AUM DECEMBER 2016 Assests under Management ( bn) 3 250 2 582 605 785 388 Infrastructure Real Estate 501 Hedge Funds Natural Resources Private Equity 3 000 ASSESTS UNDER MANAGEMENT 2000-2016 2 500 Assests under Management ( bn) 2 000 1 745 1 500 1 000 Unrealized Value ( bn) Dry Powder ( bn) Dec 00 Dec 01 Dec 02 Dec 03 Dec 04 Dec 05 Dec 06 Dec 07 Dec 08 Dec 09 Dec 10 Dec 11 Dec 12 Dec 13 Dec 14 Dec 15 Dec 16 500 837 0 Private Equity 1 600 1 400 Assests under Management ( bn) 1 200 1 000 800 600 400 200 0 ASSESTS UNDER MANAGEMENTBY FUND TYPE (AS AT DECEMBER 2016) Unrealized Value ( bn) Dry Powder ( bn) Buyout Growth Venture Capital Other Private Equity percent returns with low risk. One attractive investment in private equity are rollups often driven by owners who want to retire he says. Demographics indicate that trend should run for another decade. David W. McCombie III founder and CEO of McCombie Group a Miami company that works with families on investing is finding businesses in the 2.5 million to 10 million range to be attractive opportunities for investors. They tend to have fewer banking relationships but that also means they may not be used to having their financial scrutinized. Michael Corcelli founder and chairman of Alexander Alternative Capital wants to buy 100 car dealerships over the next four years. The exit strategy is to sell to a major investor or issue an IPO. Craig Edelstein a venture capital investor and turnaround specialist with the Frost Group says his company has a huge funnel on health care. Our ability to assess it is world-class he says. That s not surprising given the company s namesake is billionaire Phillip Frost South Florida s most successful serial entrepreneur in the health care and pharmaceutical space. Lunchtime speaker George Lucaci a partner and senior adviser at Mercury Capital Advisors showed how his company provides online offerings independent research product tutorials roadshow videos and institutional due diligence that can be accessed on mobile devices. Mercury s offering menu has 19 verticals. It includes the usual alternative investments such as private equity real estate and hedge funds but also offers more-focused fare such as infrastructure distressed pre-IPO and special situations. Mercury which recently opened an office in Palm Beach is a 2008 spinoff of Merrill Lynch and was ranked first in 2015 private equity placements at 160 billion by Thomson Reuters. It has 15 specialists handling originations and due diligence which helps registered investment advisers in vetting investments. Lucaci says Mercury meets with more than 400 investment managers a year. Mercury says it has relationships with 2 500 institutional clients such as sovereign wealth funds corporate and www.sfbwmag.com DECEMBER 2017 Private Equity Private Debt 47 WEALTH PrEQIn Private Equity 350 300 Index Returns (Rebased to 100) 250 200 150 100 50 QUARTERLY INDEX VS. S&P 500 PrEQIn Privte Equity S&P 500 Total Return Index Jun 11 Dec 11 Jun 01 Jun 02 Jun 03 Jun 04 Jun 05 Jun 06 Jun 07 Jun 08 Jun 09 Jun 10 Jun 12 Jun 13 Jun 14 Jun 15 Dec 00 Dec 01 Dec 02 Dec 03 Dec 04 Dec 05 Dec 06 Dec 07 Dec 08 Dec 09 Dec 10 Dec 12 Dec 13 Dec 14 Key Facts in aggregate capital was raised by cloed-end provate real estate funds closed in Q3 2017 20bn of aggregate capital raised by funds closed this quarter was secured by North America -focused funds. 65% of capital raised in Q3 2017 was accounted for by value added and opportunistic funds 61% was raised by Carlyle Realty Partners VIII public pension plans insurance companies endowments family offices foundations funds of funds and consultants. Lucaci demonstrated the portal for Mercury iFunds which is designed to provide the type of opportunities for RIAs as it does for the big institutional investors including better pricing. The system that makes it easier for RIAs to get vetted information on investments and choose investments with a few keystrokes. Another panel looked at impact investing--investments in companies organizations and funds that generate both financial returns and social and environmental impact. Tim Albright Summit Partners longand short-fund portfolio manager said he s in the returns business and the markets are favoring more sustainable and fewer resource-intensive solutions. The core to our strategy is this is sort of a disruption fund. We see sustainability as the driver of disruption he says. For example investments can involve companies that are updating the electrical grid making HVAC more efficient or making a factory floor more efficient. Drew Saito senior vice president for First Green Bank says his bank puts an emphasis on environmental sustainability which has led to lending for solar. Its shareholders also believe not in just bottom-line profit but paying a fair wage. First Green is one of the fastest-growing banks in Florida and still just as profitable as other banks despite its sustainability mission Saito says. Tara Kenney senior VP of Boston Common Asset Management and a board member of Accion says the sustainability movement began about 20 years ago with about 50 funds. Religious groups for example didn t want to have investments that conflicted with their values. Accion started as a fund to help entrepreneurs in Latin American and later came to the United States. It s now looking for investors in South Florida. Boston Commons offers asset management and mutual funds. Its international fund recently had a year-todate 22.67 percent return compared with 14.24 percent for the Standard & Poors 500 index. One investment example Kenney gave was Sociedad Quimica y Minera de Chile (NYSE SQM). The Chilean company mines lithium which is an essential part of batteries for electric cars. Its shares recently had doubled this year to 58.62. Unlike Tesla (Nasdaq TSLA) it is profitable and pays a 3 percent dividend. 48 DECEMBER 2017 www.sfbwmag.com Dec 15 4bn Jun 16 0 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 Fo please OCTOBER 2015 SFBWMAG.COM 7.95 OCTOB ER 2016 SFBWM AG.COM 7.95 DECEM BER 2016 SFBWM AG.CO M 7.95 gly Mika Mattin future Miami s Selling Jim Dunn How JM Lexus stays on top Yacht brok erage thrus ts ahea d Bob Denison Never Miss An Issue www.sfbwmag.com mailsubscription South Florida Business & Wealth (SFBW) Magazine is updating our circulation list register at 49 www.sfbwmag.com DECEMBER 2017 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 50 DECEMBER 2017 FOR MOREwww.sfbwmag.com TO BILLKYSER.COM OR CALL 954.290.2920 INFO GO CHAIRMAN CEO PRESIDENT COO CFO CIO CMO VP SENIOR HR EXECUTIVE WEDNESDAY NOVEMBER 8 2017 BROKEN SOUND CLUB 51 www.sfbwmag.com DECEMBER 2017 LETTER FROM THE CHAIRMAN AND CEO Celebrating the Peak Welcome to the Apogee Awards a tribute to the success of 27 C-level executives throughout South Florida. The region has many business awards programs but this one continues to be unrivaled. Rather than having an awards program for each position such as a CEO awards program one month and a CFO awards another month we Chairman Gary Press bring in the entire C-suite for our awards program. This year we tweaked our program by adding vice presidents recognizing their key role in leadership and driving change at many organizations. As Apogee hits its fourth year and SFBW continues to grow in prominence we find increasing excitement about our annual event. There was so much buzz this year that we moved to a larger venue the beautiful Broken Sound Club in Boca Raton. We also changed things up with a sit-down dinner. As I write this several weeks before the event we are close to capacity even with the larger space. Beyond recognizing excellent members of the C-Suite we think there is a huge benefit for these savvy driven achievers to be able to share important experiences challenges and lessons learned. South Florida has a broad geographic sweep so it is rare to have this group all in one place at one time. We ve been gratified to get feedback about how many new business relationships and friendships have been created by Apogee and our other events including CEO Connect and Veterans of Influence. To get our nominations we sent emails and did outreach throughout the South Florida business community. Thank you to our marketing team and editorial staff for helping with research and selecting the candidates. All of this would not be possible without our sponsors. Special thanks goes to presenting sponsor StevenDouglas and our Gold Sponsors C3 Cloud Computing Concepts Celebrity Cruises EisnerAmper Accountants & Advisors Fort Lauderdale Executive Airport Levatas Optime Consulting and Broken Sound Club. Gary Press Gary Press Chairman and CEO South Florida Business & Wealth 52 DECEMBER 2017 www.sfbwmag.com Congratulations. StevenDouglas has been placing and providing access to mid to senior level executives for over 30 years. We are honored to be the presenting sponsor for the 2017 Apogee Awards. There has never been a time when the job of an Executive has been more challenging and demanding. Our sponsorship of this award is our way of recognizing the incredible contribution that these distinguished leaders make to their companies and to our community. Congratulations to all the 2017 Award Recipients Sincerely Matthew Shore President StevenDouglas.com www.sfbwmag.com DECEMBER 2017 53 PROGRAM THE APOGEE AWARDS OPENING Clayton Idle Associate Publisher SFBW DINNER WELCOME Gary Press Chairman SFBW AWARDS PRESENTATION StevenDouglas Matt Shore President C3 Cloud Computing Concepts Rick Mancinelli Founder and CEO Celebrity Cruises Lisa Vogt Associate Vice President EisnerAmper Accountants & Advisors Barry Gould Partner Fort Lauderdale Executive Airport Rufus James Airport Manager Levatas Chris Nielson Founder Optime Consulting Maria Martin Founder and CEO Broken Sound Club John Crean COO CLOSING REMARKS Gary Press Chairman SFBW South Florida Business & Wealth would like to recognize and thank our Presenting Sponsor StevenDouglas our Gold Sponsors C3 Cloud Computing Concepts Celebrity Cruises EisnerAmper Accountants & Advisors Fort Lauderdale Executive Airport Levatas Optime Consulting and Broken Sound Club. Presenting Sponsor THANK YOU TO OUR SPONSORS Gold Sponsors 54 DECEMBER 2017 www.sfbwmag.com From One Impassioned Demonstrated Leader To The Accomplished Leaders Receiving the 2017 Apogee Awards Our Private 5-Star Platinum Club of America Golf Tennis and Country Club Community applauds your professional successes and the enriching impact you and your companies continue to have in making South Florida the enviable place in which we live work play and learn Live Where The Champions Play Home To PGA Champions Tour s Season Opener For 12 Consecutive Years Top-Ranked USTA Facility 2401 Willow Springs Drive Boca Raton FL 33496 (561) 241-6800 BrokenSoundClub.org Facebook.com BrokenSoundClub www.sfbwmag.com DECEMBER 2017 55 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 Banyan Air Service Sano Jet Center w Aviation world Jet A 24-hOur FAA AIr trAFFIC COntrOL tOwEr u.S. CuStOmS & BOrdEr prOtECtIOn SErvICE dOwntOwn hELIStOp wIth LOBBy 24-hOur COntrACt SECurIty A 200-ACrE InduStrIAL AIrpArk For eFFortless travel to Fort lauderdale visit www.FlyFxe.com. 56 DECEMBER 2017 www.sfbwmag.com CONGRATULATIONS TO ALL HONOREES AT THE 2017 SFBW APOGEE AWARDS It s time to celebrate with Celebrity With over 275 destinations to choose from the only question that remains is... Where to next Visit us at Celebritycruises.com 2017 Celebrity Cruises. Ships registry Malta and Ecuador. 17058638 9 2017 www.sfbwmag.com DECEMBER 2017 57 THE HONOREES CHAIRMAN Alan Levan BBX Capital Levan is a chairman and CEO. He has been chairman of four NYSE listed companies. Since the sale of Bank Atlantic to BB&T in 2012 Levan s team has transformed BBX Capital into a diversified company that is one of the fastest growing in Florida. Levan has received Habitat for Humanity s Spirit of Humanity Award NSU s Entrepreneurship Hall of Fame Award South Florida Junior Achievement Hall of Fame Award the Greater Miami Chamber of Commerce s Cutting Edge Award and Ernst & Young s Entrepreneur of the Year award for Florida. Persistence. Nothing in the world can take the place of persistence. Talent will not nothing is more common than unsuccessful men with talent. Genius will not unrewarded genius is almost a proverb. Education will not the world is full of educated derelicts. Persistence and determination alone are omnipotent. Calvin Coolidge BROWARD MIGUEL FARRA MBAF Farra is chairman of the Tax and Accounting Department at MBAF and leads its team of nearly 190 highly-skilled tax professionals working with clients both domestically and internationally in a variety of businesses ranging from banking and manufacturing to wholesale distribution real estate and healthcare. Farra oversees the firm s 13 offices and is a member of the firm s executive committee. He was inducted into the Hall of Fame by Miami-Dade College in 2009 received the Excellence in Accounting Award in International Tax from the South Florida Business Journal in 2005 and was presented with the Twelve Good Men Award from the Ronald McDonald House. When you choose your profession choose something you love to do so that you can do it with a passion on a daily basis. If you do that you will succeed. MIAMI-DADE JORGE GARCIA GARCIA STROMBERG GS4STUDIOS PALM BEACH As chairman Garcia leads the board by establishing company visions goals strategy and oversees the implementation of those elements. His leadership is dynamic in nature and he listens as well as directs. He fuses the experience of veteran team members with the ingenuity and technical skills of the up-and-coming generation. His awards and honors include South Florida Business Journal Ultimate CEO Palm Beach County Sun Sentinel Excalibur Award as Small Business Leader of the Year Byron Snyder Award Fort Lauderdale Historical Society South Florida Business Journal Up and Comers award. The highest form of ignorance is to reject something you know nothing about. 58 DECEMBER 2017 www.sfbwmag.com CONGRATULATIONS To our Chairman & CEO Alan B. Levan on being named the 2017 Broward Chairman of the Year. Everyone at BBX Capital Corporation and all of its subsidiaries and 8 000 associates are proud to call you their leader. Thank you for all of your hard work and dedication to our companies and our community. RoboVault SELF STORAGE Cat 5 Construction Climate Controlled Auto Wine Safe Deposit NYSE BBX CONGRATULATIONS MIGUEL G. FARRA We are pleased to extend our warmest congratulations to Miguel Farra for being an Apogee Award Honoree. Your exceptional leadership and outstanding commitment to not only MBAF but to the industry and our community inspires us all. Assurance Tax and Accounting Private Client Wealth Advisory Technology Consulting MBAFCPA.COM www.sfbwmag.com DECEMBER 2017 59 THE HONOREES CHIEF EXECUTIVE OFFICER RON ANTEVY e-BUILDER Ron Antevy teamed up with his brother Jon in 1998 to lead e-Builder. Under his leadership the company has consistently grown from 25 to 35 percent annually profitably and without debt. Prior to e-builder Antevy held various senior management positions in the construction and environmental services industries including regional director of operations for Waste Management where he managed 19 facilities with 200 employees and annual revenues in excess of 150 million. He is a graduate of the University of Florida College of Engineering with a degree in cicil engineering. You have two ears and one mouth. Use them in that proportion. BROWARD MIAMI-DADE MIAMI LIGHTHOUSE FOT THE BLIND AND VISUALLY IMPAIRED INC. Jacko is one of the only CEOs in the country who is blind however her vision has enabled the Miami Lighthouse to increase its number of participants 33-fold during her 12-year tenure. She originally came to the Lighthouse in 2001 as a client. Before her permanent appointment as president and CEO of the Miami Lighthouse in 2005 Jacko served as a member of the board of directors treasurer and acting president and CEO. She has introduced several innovative new programs under her leadership. Reach out aggressively act on opportunities never let fear win and keep things in perspective. The Blind Visionary Virginia Jacko VIRGINIA JACKO SAM ZIETZ TouchSuite Zietz is the founder and CEO of TouchSuite a financial technology firm and its affiliated companies. Prior to TouchSuite he was a corporate attorney specializing in structured finance with a New York-based law firm. He earned a bachelor of science degree from the University of Michigan then went on to receive his JD from the St. Thomas School of Law in Miami where he finished first in his class. In 2015 he received the EY Entrepreneur of the Year award in Florida and in 2014 he was named one of South Florida s Ultimate CEOs by the South Florida Business Journal. Impossible is not a fact it s an opinion. Muhammad Ali PALM BEACH 60 DECEMBER 2017 www.sfbwmag.com www.sfbwmag.com DECEMBER 2017 61 THE HONOREES PRESIDENT JEAN FRANCOIS ROY Ocean Land Investments BROWARD KEY INTERNATIONAL Inigo Arnid has created a local family legacy of smart evolution from residential real estate to hospitality that today positions 40-year-old Key International as a key player behind South Florida s real estate and tourism empire. As co-president Ardid has strategically executed acquisitions and completed developments in several prime submarkets and coastal regions in the southeast United States. Ardid has provided generous private donations to St. Jude Children s Research Hospital and St. Stephen s Episcopal Day School in Coconut Grove. If you are working on something that you really care about you don t have to be pushed. The vision pulls you. Steve Jobs INIGO ARDID MIAMI-DADE EVELYN & ARTHUR As president Weissman is responsible for the growth and expansion into new markets oversight for individual stores profitability and directing all retail operations. The last recession was the company s greatest challenge but she led the way by to ensure its survival and is now expanding throughout Florida succeeding in the retail space while others are struggling. She is a Women in Leadership Award (Executive Women of the Palm Beaches) nominee and received a 2006 Enterprising Women of the Year Award. Success is not about how much money you make it s about the difference you make in other people s lives. As long as you have passion faith and are willing to work hard you can do anything you want in life. ADRIANNE WEISSMAN PALM BEACH Roy founded his firm in 1990 and is the president which acquires and develops prime waterfront property providing luxury residences and improving the overall aesthetics of previously underutilized sites. With more than four decades of entrepreneurial experience Roy first achieved success by developing Canada s third largest portfolio of retirement homes and senior care facilities. A Quebec native he moved to South Florida in the 1980s. Today Ocean Land Investments is revitalizing waterfront property in the East Las Olas Isles of Fort Lauderdale. He recently announced plans for a luxury senior living facility at Riverwalk as well. If you want the rainbow you have to deal with the rain. John Green 62 DECEMBER 2017 www.sfbwmag.com www.e-builder.net Congratulations Ron Antevy for being the recipient of South Florida s Business & Wealth Apogee Award for Outstanding CEO e-Builder exists to enable repeat builders to improve capital project execution making construction faster less expensive and more reliable thus freeing up time and energy for societies higher priorities. Your e-Builder Team www.aquablufortlauderdale.com YOUR LIFE ON THE WATER AWAITS 920 Intracoastal Dr. Ft. Laud. (954) 530-7116 Sales Center Open 7 days 1800 E. Las Olas Blvd. Fort Lauderdale FL 33301 2017 Ocean Land Investments Inc. Developer does not make any representation or warranty as to the actual size dimensions or square footage of any unit. Developer reserves the right to change or modify floor plans materials and features without prior notice or obligation. Oral representations and or renderings cannot be relied upon as correctly stating the representations of the developer. For binding representations make reference to the documents required by Section 718.503 Florida Statutes to be furnished by a developer to a buyer or lessee. www.sfbwmag.com DECEMBER 2017 63 Making Bold Moves with Law. Greenspoon Marder is committed to providing excellent client service through our crossdisciplinary client-team approach. Our goal is to understand the challenges that our clients face build collaborative relationships and craft creative solutions designed and executed with long-term strategic goals in mind. Since our inception in 1981 Greenspoon Marder has become a full-service Am Law 200 and NLJ 500 law firm with more than 200 attorneys. We serve Fortune 500 middle market public and private companies start-ups emerging businesses individuals and entrepreneurs across Florida and the United States. 64 DECEMBER 2017 www.sfbwmag.com Boca Raton Denver Fort Lauderdale Las Vegas Miami Miami Beach Naples Nashville New York Orlando Portland San Diego Tallahassee Tampa West Palm Beach Congratulations to Michelle Martinez Reyes and to all the 2017 SFBW Apogee Awards Honorees 500 and Beyond Serving Fortune 200 Full-Service Firm Am Law Michelle Martinez Reyes Chief Marketing Officer Greenspoon Marder Broward County CMO of the Year 200 Attorneys www.sfbwmag.com DECEMBER 2017 More Than gmlaw.com 65 THE HONOREES CHIEF OPERATING OFFICER Youfit Health Clubs Creegan began working at Youfit before it was even named Youfit. He started off as a part-time minimum-wage employee back in 2001 when the company had only three locations. Youfit now owns 115 clubs in 14 states and Creegan has dedicated his life to the company having ascended to the role as one of its top executives. A graduate of Florida Atlantic University with a bachelor s degree in business administration Creegan has served in nearly every management position in the Youfit hierarchy. As chief operating officer he leads the operational managerial and marketing strategy of this large national organization. Sometimes you have to break the rules. J.J. CREEGAN BROWARD DOUGLAS ELLIMAN REAL ESTATE Rubio has more than 25 years of executive management experience.. Prior to his current role as chief operating officer at Douglas Elliman he was COO at ONE Sotheby s International Realty. He also served as sales and marketing consultant vice president of operations at Hurricane Grill & Wings Fort Lauderdale. He has been with Douglas Elliman since April 2015. Douglas Elliman is the nation s fourth largest real estate firm with a network of more than 6 000 agents in more than 85 offices. He received his bachelor s and MBA from Columbus University. Each day when I awake I know I have one more day to make a difference in someone s life. GUS RUBIO MIAMI-DADE MICHAEL DIAZ DRIFTWOOD HOSPITALITY MANAGEMENT PALM BEACH Michael Diaz has served as COO since the company s launch in 1999. He began his hotel career in 1993 at Servico serving roles in operations acquisitions projects and purchasing. During his tenure at Servico the company grew from 32 hotels in 1993 to 180 hotels in 1998. In his current position Diaz is responsible for nearly 50 hotels with a total of more than 9 000 rooms in 15 states. He oversees approximately 4 000 associates. He creates plans and procedures for each hotel based upon its market. He establishes policies promoting the Driftwood culture and vision. Service to others is the rent you pay for your room here on earth. Muhammad Ali 66 DECEMBER 2017 www.sfbwmag.com Driftwood Hospitality Management congratulates Chief Operating Officer Michael Diaz Palm Beach County s Chief Operating Officer of the Year. Over the past 19 years Mike has played an instrumental role in the management of nearly 200 hotels. On behalf of over 3 400 Dri wood associates thank you Mike for your hard work and dedication. Your wealth of experience has been a valuable asset to our team. Congratulations on this prestigious honor Leading A Financial Turnaround To Make More Miracles Possible CONGRATULATIONS 2017 Apogee Award Recipient South Florida Business & Wealth magazine recognized Mark T. Knight for his dedication leadership skills and the masterful way he turned around Jackson Health System s financial picture. Mark T. Knight became executive vice president and chief financial officer at Jackson in 2010. He has been at the helm as Jackson has earned multimillion-dollar surpluses every year since 2012 all while improving clinical care patient volume and customer service. Mark was also instrumental in the voter-approved Jackson Miracle-Building Bond program a major source of funding that is driving the construction of new and renovated facilities throughout Jackson. By significantly improving the financial health of Jackson you allow us to continue focusing on the essential health needs of all the communities we serve. Mark T. Knight Executive Vice President and Chief Financial Officer Jackson Health System www.JacksonHealth.org www.sfbwmag.com DECEMBER 2017 11207 JHSapogeeAwardsAd-r3.indd 1 67 10 20 17 12 47 PM THE HONOREES CHIEF FINANCIAL OFFICER JOSEPH ZIEGLER BioMatrix Ziegler has been CFO at BioMatrix since January 2013. He has extensive experience working with small middle market privately owned companies. His specialties are financial forecasting and budgeting cash-flow forecasting financial and operational analysis team building workflow process improvements and driving profit improvement initiatives. He received his MBA in finance as well as a bachelor s degree in finance at Florida Atlantic University. Ziegler has been described as being a natural leader who knows his way around financials. He can collaborate as well as make tough decisions and inspire others. Vision is not seeing things as they are but as they will be BROWARD JACKSON HEALTH SYSTEM Knight joined Jackson Health System as executive vice president and chief financial officer in 2010 and has been integral in leading the system s dramatic financial turnaround. He has earned multi-million dollar surpluses every year since 2012 all while improving clinical care patient volume and customer service. He won the South Florida Business Journal s CFO Awards for Turnaround Achievement in 2014. He earned an undergraduate degree in business administration from Baylor University and his MBA from Florida Atlantic University. Do the right thing each and every time. MARK KNIGHT MIAMI-DADE IMAGE SKINCARE Corredera is an international senior executive skilled in financial transformation. She joined Image Skincare in 2014. As CFO she is responsible for the financial statements treasury investments risk management and human resource functions in the company s rapid growth environment. She is a member of the company s charitable foundation Care for Skin benefiting children who have suffered skin injuries. She is a CPA with extensive experience spearheading financial expansion acquisition integration and restructuring strategies. Kites rise highest against the wind not with it. Sir Winston Churchill DONNA CORREDERA PALM BEACH 68 DECEMBER 2017 www.sfbwmag.com If you don t like change you re going to like irrelevance even less. General Eric Shinseki Is your business ready for what s next Levatas helps leading brands develop digital transformation strategies leverage emerging technologies and measure the impact of business decisions. levatas.com 561-622-4511 THE HONOREES CHIEF INFORMATION OFFICER US Gas and Electric Taffet joined USG&E a leading energy supplier as CIO in December 2007. He oversees the management and development of all business and information technology. In addition to day-to-day management Taffet is responsible for the technology transformation that has matched the company s growth as it has doubled in size for six years. Taffet was recently recognized by South Florida Business Journal as CIO of the Year Finalist. He received the 2012 Universal Access Award in the individual category from the South Florida Digital Alliance for his long list of accomplishments. I build teams that exceed business objectives drive corporate growth and contribute to the bottom line. GREG TAFFET BROWARD ROBERT GRILLO FLORIDA INTERNATIONAL UNIVERSITY MIAMI-DADE PALM BEACH MICHAEL SPEARS NCCI Grillo has more than 20 years of leadership experience in IT services including executive management strategic consulting and project management. He took office as the vice president of IT and CIO in June 2011. He leads a division of more than 250 IT professionals. He is the 2013 winner of the Education category of the South Florida Digital Alliance Awards. He has also been featured in Hispanic Executive for his work with business intelligence and mobile technologies. He holds a bachelor s from FIU and a master s in finance from Nova Southeastern University. There are no secrets to success. It is the result of preparation hard work and learning from failure. Colin Powell As CIO and chief data officer of NCCI Spears is responsible for oversight of all technology application development and the Program Management Office. In his role as chief data officer Spears oversees the firm s data collection quality validation coordination with industry groups on data reporting rules and standards and the deployment of reporting tools for data providers. Prior to coming to NCCI he held a variety of management positions. He received both a BBA degree in computer information systems and an MBA at the University of Miami. You have been assigned this mountain to show others it can be moved. 70 DECEMBER 2017 www.sfbwmag.com Congratulations Robert Grillo. 2017 CIO of the Year Apogee Award Winner Robert we salute you and thank you for your leadership in our community and in making Miami -- and the world -- safer and more secure. Partners in creating a more secure Miami and world. URBAN CORE Dedicated Specialists Delivering Service Excellence Miami FL The rapid shift toward urbanization has attracted a new breed of residents hotels restaurants retail and entertainment options to Miami s urban core. Colliers International South Florida s Urban Core Division is entirely neighborhood-driven. Our agents know every detail of every building on every block whether they are multifamily retail office mixed-use or land. Connect with us today to find out why investors tenants and developers choose Colliers. colliers.com www.sfbwmag.com DECEMBER 2017 71 THE HONOREES CHIEF MARKETING OFFICER GREENSPOON MARDER Working closely with the founders and shareholders Martinez Reyes serves as part of the firm s leadership team. She focuses on the firm s strategy and growth branding business development client relations and media and public relations efforts across 20 offices throughout the U.S. Her legal experience includes work for various AmLaw 100 firms including the three largest law firms in Florida. She has been recognized as an Up and Comer by SFBW. She holds an MBA from Nova Southeastern University with a specialty in global management. The power of will and choice defines you. Success results from part commitment work association and time. MICHELLE MARTINEZ REYES BROWARD KAREN JONES RYDER As executive vice president and CMO for Ryder System she is responsible for leading the company s Fleet Management Solutions Dedicated Transportation Solutions and Supply Chain Solutions Marketing efforts as well as integrating the management of all marketing and brandrelated activities across Ryder to drive growth and enhance brand value. She was named Marketer of the Year by BtoB magazine in 2005 and was ranked in the publication s annual Best Issue from 2006 to 2008. Make no little plans they have no magic to stir men s blood and probably themselves will not be realized. Make big plans aim high in hope and work. Daniel Hudson Burnham MIAMI-DADE TROON PRIVE Merbler is an accomplished sales and marketing professional with verifiable year-after-year success in achieving revenue profit and business growth objectives within a start-up or turnaround venture. He has extensive experience with branding strategy sports marketing corporate business development talent management marketing programs and membership sales and in many other areas of expertise. Active in public service from 2009 through 2011 he was on the Town of South Palm Beach council and from March 2011 through the present he is chairman of the Architectural Review Board. People don t buy what you do they buy why you do it. Simon Sinek BRIAN MERBLER PALM BEACH 72 DECEMBER 2017 www.sfbwmag.com PT21 CO N G R AT U L AT I O N S Ryder EVP & CMO Karen Jones on being named Miami-Dade CMO of the Year by South Florida Business & Wealth. www.sfbwmag.com DECEMBER 2017 73 10 16 17 10 16 AM PT214281 - AD Congratulatory ad - Karen Jones - MAGAZINE.indd 1 THE HONOREES VICE PRESIDENT HARRY T. TANGALAKIS CBRE Since 1981 Tangalakis has been a valued advisor to his clients in the area of industrial real estate in South Florida with CBRE. His expertise spans the sale and lease of warehouse distribution and marketing. He is known as an honest hardworking and thoughtful person who is an expert at achieving maximum results. If you wake up in the morning with the mentality that you have to go to work then you are probably missing out on the joy of life and limiting your earning potential. I was blessed enough to find a career that was challenging and fulfilling at a company that heavily invests in its professionals and resources so we can deliver the best results for our clients. BROWARD COLLIERS INTERNATIONAL In 2016 Mattingly joined the South Florida offices of Colliers International launching the firm s Urban Core Division. As group co-leader her team specializes in urban renewal off-market sales and assemblages across core South Florida neighborhoods. She has established herself as the premier real estate expert in downtown Miami and has been the driving force behind the market transformation from a neglected business corridor to a revitalized destination for real estate investment and community. Lead follow or get out of the way MIKA MATTINGLY MIAMI-DADE SCOTT STROCHAK In his role as senior wealth director at a major wealth management company Scott was responsible for new business development in Palm Beach County. He worked with individuals and families to identify how the company s investment and wealth management capabilities can help them reach their overall financial goals. He has more than 30 years of experience in financial and fiduciary services. Strochak received his MBA degree from the Wharton School of the University of Pennsylvania and his bachelor s degree in business administration from Emory University. He is active with Scripps Florida FAU and the Jewish Federation of Palm Beach County. That which does not kill us makes us stronger. Friedrich Nietzsche PALM BEACH 74 DECEMBER 2017 www.sfbwmag.com Are you connected to the resources you need When businesses find themselves with more questions than answers they look for help. That s where EisnerAmper fits in. Our passion is connecting businesses with the resources they need when they need them at every stage of the company s life cycle. Wherever you are on your journey make one of your first connections EisnerAmper. Learn more at EisnerAmper.com Accounting Tax Consulting eisneramper.com www.sfbwmag.com DECEMBER 2017 75 THE HONOREES SENIOR HR EXECUTIVE WORLD TRAVEL HOLDINGS As HR Director McCawley collaborates with leadership at all levels to assist with human capital needs including creating staffing and employee engagement strategies. She oversees a remote team who handles all talent acquisition and employee relations needs including investigations employment law updates unemployment and immigrant cases. McCawley has a bachelor s degree in business administration from Framingham State University and a master s degree in ministerial leadership from Southeastern University and has done volunteer work building an orphanage. Get out of your own way MARILYN McCAWLEY BROWARD ADRIENNE ARSHT CENTER Brennan is a resourceful enthusiastic professional with more than 20 years of human resources management experience within both non-profit and for-profit organizations. She s held profit and loss responsibilities and has expertise in initiating projects and programs that boost efficiency and productivity while enhancing cash flow. She is a hands-on leader with proven skills in analysis management strategic planning organization motivation and improvement of operations through policies promoting a team-based atmosphere. She attended the University of Montana. Anything that is of value in life only multiples when it is given. Deepak Chopra TRISH BRENNAN MIAMI-DADE KATHERINE McNEIL GLOBAL JET CAPITAL McNeil has more than 30 years of management experience 20 of them in the field of international development including work in the public sector. She has a unique background of working in multiple areas of technical specialization with a common thread leading the startup of new initiatives projects functions and organizations. She has held many leadership positions including 15 years as a leader in human resources. She has lived overseas in several countries and this background helped her develop skills in management and critical analysis. Success isn t a result of spontaneous combustion. You must set yourself on fire. Arnold H. Glasow PALM BEACH 76 DECEMBER 2017 www.sfbwmag.com ACCELERATE PROFITABILITY WITH VISIBILITY OF GOALS PROGRESS & RECOGNITION Thinking of increasing sales profitability while getting full visibility of your team performance Then you are probably struggling with wanting to get answers about ROI effectiveness and how to measure success. Don t worry we got your back eRecognize.me is a competitive cloud based solution with full CRM integration capabilities that simplifies the complexity of each sales rep s goals into achievable tasks. This solution provides data visibility progress tracking and team contribution levels in real time. Your engagement levels and sales efficiency will increase. It is proven www.sfbwmag.com DECEMBER 2017 77 78 DECEMBER 2017 www.sfbwmag.com StevenDouglas is proud to be a sponsor of the 2017 Apogee Awards. Congratulations to all of this year s Award Recipients StevenDouglas has been placing and providing access to mid to senior level executives for over 30 years and we recognize the difference great leaders make on an organization. StevenDouglas one of the nation s leading boutique search and interim resources firms has been a recognized leader in identifying and providing access to top talent for corporate clients since 1984. Our client base is industry agnostic and ranges from start-ups and emerging middlemarket to Fortune 500 companies and private equity firms. Companies turn to StevenDouglas when they need highly qualified talent to build their organizations. Powered by our years of experience and proven track record our successful search and recruitment strategy delivers the strongest candidates for outstanding leadership teams. Search Division Human Resources Finance & Accounting Information Technology Sales Marketing & Operations Interim Resources Division Human Resources Finance & Accounting Information Technology Industries Served Financial Service Healthcare & Life Sciences Technology Industrial & Mining Retail & Hospitality Real Estate & Construction Private Equity & Venture Capital www.sfbwmag.com DECEMBER 2017 79 Contact Matt Shore 954.385.8595 MShore StevenDouglas.com StevenDouglas.com CEO CONNECT POWERED BY Teddy Morse provided insights and a big dose of humor during his interview with SFBW Associate Publisher Clayton Idle Accelerating Change Teddy Morse is poised for evolving automotive world Teddy Morse is the CEO and chairman of Ed Morse Automotive Group one of South Florida s largest private companies. Ed Morse had 1.32 billion in sales in 2016 according to Automotive News selling 11 238 vehicles (ranked 86th nationally) and includes five Cadillac dealerships in addition to Honda Chevrolet Buick Toyota Mazda Alfa Romeo Fiat and GMC dealerships. Teddy has been in the automotive business almost his entire life. His grandfather Ed founded Morse Motors a rental car company in 1946. In the late 1980s and early 90s Ed Morse Automotive was the first dealership group to exceed 1 billion in fleet sales. His father Ted became chairman and CEO after Ed died in 2012 at the age of 91 but he had to work his way up starting as a gofer and detailing cars while he was still in school. After going to Northwood University (now Keiser) he sold cars at the Honda dealership and 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. The Fort Lauderdale dealership was named Cadillac s dealer of the year twice during his four years in that position. He joined the corporate staff in 2012 as director of advertising and marketing and became CEO last year after the death of his father. For this installment of CEO Connect SFBW Associate 80 DECEMBER 2017 www.sfbwmag.com CEO CONNECT Publisher Clayton Idle interviewed Morse at the Bayview Cadillac dealership in Fort Lauderdale. What s your favorite car I have a lot of favorites but I m going to go with my old car. It s a 1970 Chevy Chevelle SS 454. And what s the car you are driving now The car is a 2017 GMC Sierra 1500 pickup with a 3-inch lift kit and 33inch tires. I actually got it when the hurricane was coming because I needed something that would get me out of my neighborhood. I was staying out east and I was one of the idiots that refused to leave. And so I made sure I had the vehicle that would be able to get me out if things went bad. I have so much fun in that truck. I took a drive down [State Road] A1A and until you drive a monster truck you don t know how fun it is. The road was covered in sand from the storm. Did Hurricane Irma affect your business In the short term it affected us quite a bit. When it comes to selling cars a big part of it is that people need to have insurance when they drive off the lot. Three days prior to the hurricane possibly making landfall insurance companies--boom --they cut you off. You couldn t get new cars insured. It shut down operations for about three days prior to the hurricane and a few days after because we had a number of dealerships without power. We are in a business luckily where people are very set on buying cycles. People are going to buy a new car every three to five years so being shut down for a few days during the hurricane isn t going to make somebody not buy the car. It might delay it for a few weeks. We were very blessed. Your father put you through some hard knocks early in your career. Tell us about some of the things he did with you and what your relationship was like Rich Ducharme and Kellen Smith Dorian Abrahami Victor Lue-Yat and Troy Sorel William Berger Rich Lopez and David Weisman www.sfbwmag.com DECEMBER 2017 81 CEO CONNECT W. Scott Parker and Sean Riley What else did he teach you He taught me that employees come first. If you take care of your employees they will take care of you. By treating our employees with the utmost respect they will take ownership of the business and take care of the customers in every possible way they can. That s the most valuable lesson he taught me. The car industry is undergoing rapid change with the emergence of electric cars and potentially self-driving cars. Do you think electric cars are moving towards a majority of sales in the industry I think they are phenomenal. One problem we see with electric vehicles is what is called range anxiety. People are very nervous about their car running out of juice and being stranded on the side of the road. We have the Chevy Bolt that can go up to 238 miles per charge but until we can get that range higher to 250 to 300 miles it s going to hamper sales a little bit. Also we need to get the charging to where you can charge a vehicle fully as fast as you can fill a tank of gas. A lot of electric cars take up to eight hours to fully charge. And there s a lot of rapid-charge devices you can get Foundation PEO Solutions Thomas Koenig Joey Epstein of MBAF greets attendees I was extremely blessed to have one of the best father-son relationships I ve ever heard about. My dad was an amazing guy. He busted balls a lot which I didn t understand at the time. When I was 15 years old I was detailing cars at our Mazda store in Coconut Creek. And I didn t even get to clean the new cars coming off the truck. I had to detail cars that were coming out of the body shop that had overspray on them. I m out there with a 40-pound buffer on the side of the vehicle it s August and its 99 degrees. He had me work every job in the dealership as I was growing up. And I can t tell you how much that means to me now having done that. From that experience I can understand what our employees do and care about what they do because I ve worked the same jobs. What my dad did for me was invaluable. 82 DECEMBER 2017 www.sfbwmag.com CEO CONNECT This CEO Connect was held at Bayview Cadillac in Fort Lauderdale that will bring it down to four hours and maybe there are some that will do it in two. But that s a long time to charge. When do you think we will see self-driving cars introduced to the marketplace and what challenges and opportunities does this create for your company What I think will happen is that we won t just have self-driving vehicles but it would be an option in your car like the cruise control. You can turn it on when you want and turn it off when you don t. It might be one day that nobody will be driving on the road but that s maybe in 50 years. I think it will be a technology that is implemented in the vehicles that we have now. About CEO Connect SFBW s CEO Connect series is an exclusive invitation-only leaders to meet and mingle. The presenting sponsor is Celebrity Cruises. Gold sponsors include Foundation PEO Solutions Inc. Greenspoon Marder MBAF Optime Consulting Shorecrest Construction and Ed Morse Automotive Group. The evening begins with a cocktail reception for about 100 guests followed by the highlight of the event a live interview conducted by Gary Press SFBW chairman and CEO and a well-known C-level executive providing insight into their personal lives careers and views on issues affecting the business community. Partnering with SFBW on this exclusive event provides an caption monthly event that brings together South Florida s top business 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. www.sfbwmag.com DECEMBER 2017 Lisa Montejo and Dan Kobak 83 Time to trade the corner office for your own little corner of the world A Transworld business advisor can get you there. Every day Transworld Business Advisors connects quality top-paying acquirers with business owners ready to sell and move on to the next stage in their careers. As the world leader in business sales franchising and mergers and acquisitions Transworld has access to a huge database of individual domestic and immigrating buyers and strategic corporations looking for the right business opportunity. And Transworld has the expertise to ensure any business sale goes smoothly. So whether you re ready to sell your business or buy an existing business or franchise contact a Transworld Business Advisor for a free consultation today. Andrew Cagnetta OWNER CEO 800.205.7605 t world.com 84 DECEMBER 2017 www.sfbwmag.com www.sfbwmag.com DECEMBER 2017 85 SOUTH FLORIDA EXECUTIVE ROUNDTABLE Seated Joseph Napoli Michael Costello Aviv Tzur and Gerry Litrento Standing Rich Lopez Andrea Richard Mike Zimmer Marta Blanco and Alex Freund Clorox executive aviation leaders provide insights Clorox has a well-established brand but it s keenly focused on changes in the consumer market in the era of Amazon. The issue is the consumer now isn t just looking to go to the store and shop and buy. But they may buy from seven different websites the corner store--and how do we make sure that we have the right products experiences and marketing for that consumer asks Michael Costello senior vice president and general manager international for Clorox. Costello was one of three panelists on a South Florida Executive Roundtable panel on innovation and change. Joining him were Joseph Napoli chief of staff and senior policy adviser for the Miami-Dade Aviation Department which operates Miami International Airport and Aviv Tzur CEO of AVbiz Aerospace and president of the Greater Miami Aviation Association. The executive-level luncheon was held at the Rusty Pelican in Key Biscayne and was moderated by Gerry Litrento senior executive vice president of BankUnited. SFBW is the exclusive media sponsor. For more information about the roundtable visit sfexecroundtable.com. Here are the takeaways All of us in this room can identify with the concept of innovate or die. How do you and your organizations define innovation Tzur For me innovation is a great buzzword but it s about good ol change. I m a firm believer you have to endorse adapt and you have to always strive to change. You cannot get stagnant. Today I wear two hats--I have my own private company as well as my organization. When I talk about change I look at what the aviation industry is faced with. Twenty years ago we would try to respond to ad hoc problems that airplanes would have with maintenance but today we are looking into predictive maintenance so down the line a technician may have a laptop hooked up to the engine and see what the problem is and fix it. For me the people who are going to drive the change are not yet aviators. The investment in change is going to be in human capital. Costello We have a definition for product innovation which is a product with a better benefit or a new product for you. We also have commercial innovation which could be a business model or how we talk to you. For a while we started putting a lot of Clorox products inside of Home Depot as a new channel. We publicly measure and disclose our innovation numbers year by year because for us it is an important piece internally which we measure for our investors. The way you stay ahead in the product industry is by innovating with new products and new benefits. Napoli Innovation is really about doing things better. A lot of people don t realize is we have competitors--Atlanta Dallas and Panama airports are huge competitors. Panama put a lot of money into their airport. They see themselves as the natural hub to Latin America and the Caribbean. Especially in this world with Twitter and social media all it takes is one passenger to say I m never going to MIA again and that gets tweeted a bunch of times. We are trying to do things better and create an environment where employees are encouraged to take risks and bring in new ideas new processes to do things better. Look at the airport--just think about how it was 10 years ago three years ago. I m sure a lot of Innovate or Die 86 DECEMBER 2017 www.sfbwmag.com SOUTH FLORIDA EXECUTIVE ROUNDTABLE you travel internationally and have gone through Customs where there was a long wait. And what we have done now 50 percent of our passengers use automatized systems to get through our lines faster. Are you finding that you can source talent locally Are the local universities helping you How hard is it to attract people from outside our community Costello We run our international and Latin America operations out of Miami. Most of our talent we have in the offices are from somewhere else. They are from either our headquarters which is in Oakland California or they are from other countries and moved here because of the skills they have. Tzur I m a big fan of Miami and the talent we have here. If you look at the evolution of universities here we have tremendous talent here. I think for organic growth we have a great pool of people to pull from but the challenge is that they want to stay here and not go to other cities. Napoli I think the talent in South Florida is definitely sufficient. Miami Dade College has an aviation program. The talent pool is here. At the airport there s every imaginable competency that you need. We own all of the property so real estate is huge. Finance information systems human resources ... it s not just aviation. Also we have extensive internships with all the local universities and some of the statewide ones. We also have a program where we bring in five administrative trainees every year. The aviation industry is so passionate that we don t have trouble keeping people. What s the biggest challenge you see over the next three to five years Napoli Our biggest challenge is growth. An airport that is not growing is an airport that is dying because naturally every year more people fly. But fortunately we are growing both in passenger and cargo. There s no physical place now for us to grow we have to redevelop our existing facilities. A lot of that is looking at new ways of building--perhaps in our cargo area going vertical instead of outward. Tzur We are a very cyclical industry. Our normal cycle is seven to eight years and we ve been on a high since 2008 2009 and everybody is getting nervous. And [an aviation conference] panel asked if there are any storm clouds ahead. From my perspective there is a very big cloud and that is there is a lack of talent coming into our industry. There was a survey by Boeing that within the next 20 years we are going to have a shortage of 100 000 pilots 250 000 mechanics. That s why we are so big on investing in education. My new dance moves are dazzling Thank you John Knox Village Being a resident of John Knox Village enables you to be part of a community that lets you be you be social and be stress free. Residents enjoy many cultural partnerships and activities at the village and in the community. Let us dazzle you too Come visit & enjoy a complimentary lunch with a guided tour (954) 783-4040 651 SW 6th Street Pompano Beach FL 33060 (954) 783-4040 For More Info Contact web JohnKnoxVillage.com JohnKnoxVIllage John Knox Village is committed to compliance with all federal state and local fair housing laws. It is our policy to offer senior living to those that qualify without regard to race color national origin religion sex sexual orientation familial status or handicap. The employees of John Knox Village have a legal obligation to treat each individual in a consistent and equally fair manner. In order to assist you with your decision on your new home we are providing a list of guidelines used to qualify residents for tenancy in our community. Please note that this is our current rental ownership criteria nothing contained in these requirements shall constitute a guarantee or representation by John Knox Village that all residents and occupants currently residing at the community have met these requirements. There may be residents and occupants that have resided the community prior to these requirements going into effect. Additionally our ability to verify whether these requirements have been met is limited to the information we receive from various credit and screening services used. www.sfbwmag.com DECEMBER 2017 87 ENTREPRENEURS Singer rapper and songwriter Flo Rida who grew up in Carol City provides an energetic finale at Club EO. NFL broadcaster Jimmy Johnson who won championships as a coach on the college and professional levels fired up the EO crowd with insights. EO NERVE 2017 88 DECEMBER 2017 www.sfbwmag.com Hundreds of highly successful business owners descended on the Fort Lauderdale Marriott Harbor Beach Resort and Spa in October for EO Nerve 2017. The event involved members of the Entrepreneurs Organization the world s only peer-to-peer network exclusively for entrepreneurs. EO has 12 000 members internationally whose businesses have median sales of 4.7 million. The Oct. 5-8 event involved networking learning and having fun. Among the big-name speakers were Andy Lark former chief marketing officer at the accounting software firm Xero Keith Cunningham author of The Ultimate Blueprint for an Insanely Successful Business Victor Antonio CEO of sales management firm Selinger Group Debbie Gordon president of the Master Key executive consulting firm Ami Kassar CEO and founder of business loan adviser MultiFunding Corey Kupfer founder and president of Authentic Enterprises and the Authentic Business Academy and Mark Moses founding partner at CEO Coaching International. The EO crowd also had plenty of fun with Club EO in the Ocean Ballroom an event at Xtreme Action Park and a performance by singer Flo Rida. For information about the Entrepreneurs Organization in South Florida visit eosoflo.com. ENTREPRENEURS JetSmarter CEO Sergey Petrossov whose company is based in Fort Lauderdale talks about private jet travel. EO members enjoy lunch on the Ocean View Terrace at the Marriott Harbor Beach Resort and Spa. EO members participate in a yacht hop at the Bahia Mar Yachting Center. EO members watched acrobats and performance artists on stilts. EO members took a field trip to Xtreme Action Park in Fort Lauderdale which offers go-kart racing www.sfbwmag.com DECEMBER 2017 89 COMMERCIAL REAL ESTATE The E-Commerce Giant HQ2 By Darcie Lunsford How do you get a noisy room packed with 70 of South Florida s top commercial real estate brokers to pipe down Who wants an update on the Amazon headquarters deal Greater Fort Lauderdale Broward Alliance Vice President David Coddington asks almost rhetorically as he steps to the microphone at an Oct. 19 meeting of the South Florida Office Brokers Association. The question prompts a near-sudden hush and neck-jerking turns toward the podium. Today is the deadline to submit Coddington continues. He then elaborates that South Florida s three economic development agencies in coordination with the state have been in failure-is-notan-option mode to get the region into the site consideration mix ever since Amazon unveiled its open-bid competition in early September for its second headquarters dubbed simply HQ2. This call for proposals created a dogwhistle-like pursuit to woo the e-commerce goliath as the largest economic development prize of the century. Any metropolitan area in North America can pitch itself as long as it has more than 1 million people and a pro-business climate. South Florida which offered up eight sites--from downtown Miami to Doral to west Broward to as far north as Palm Beach County is among 238 cities regions states and Canadian provinces to respond to Amazon s eight-page RFP. It is really a brilliant marketing move Coddington says referring the attention and free press that the monster project is spurring and will continue to as it reviews proposals and marches toward a 2018 decision. The stats are startling and a potential game changer for the lucky winner of HQ2 50 000 fulltime direct jobs with an annual average wage of more than 100 000. 5 billion investment in its new corporate facilities which will be phased up to as large as 8 million square feet over a 15-year period. That is comparable in scale to its existing downtown Seattle headquarters which spans 33 buildings and 8.1 million square feet. And since Amazon has shrewdly positioned HQ2 as an equal to its Seattle headquarters it can more credibly demonstrate the direct and indirect economic yields to the recipient area beyond the typical pie-in-the-sky economic-model studies. Remember Scripps Research Institute in Jupiter when Gov. Jeb Bush touted an economic impact study to justify giving the San Diego-based research center more than 500 million in state and county incentives in 2003 It was supposed to launch a dynamically evolving biotech cluster that would create tens of thousands of highwage jobs. The reality has not lived up to the study s economic-output hype. Expectations for the broader impact of Amazon s HQ2 however can be more reasonably based on what happened in Seattle where it has 40 000 employees--as long as the company does what it says. Its effect on Seattle according the company s RFP has been 3.7 billion investment in buildings and infrastructure 25.7 billion paid in employee wages 233 000 hotel nights by Amazon employees and guests in 2016 43 million paid into the city s public transportation system 53 000 indirect jobs 38 billion in spinoff investment Local increase in Fortune 500 companies with research and engineering operations from seven to 31 as of this year. The e-commerce giant says it will consider retrofitting an existing structure but doubts that an older building will be sufficient to meet its needs. As such it will prioritize shovel-ready sites and infill development locations with the infrastructure to meet its requirements 500 000 square feet for phase one with plans to ramp up to 8 million square feet Within two miles of major highways 45 minutes from an international airport On-site access to mass transit While South Florida s economic development officials are optimistic about the region s chances local developers are less so. They might be the most measured pragmatic voices in the discussion. It would be an unbelievably big boost to the economy says veteran Miami developer Ford Gibson managing director of Foundry Commercial. I think we are lacking in affordable housing and mass transit. Adds a Broward developer I don t know if South Florida has the depth of tech people and advanced degrees that Amazon has gotten more into hiring. We are definitely a long shot. 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. 90 DECEMBER 2017 www.sfbwmag.com Businesses are meant to grow. Ocean Bank offers loans to make it possible. From diversifying your existing business to expanding the office space or opening a new location Ocean Bank loans will help your business get to the next level. Together let s grow the future of your business. Subject to credit approval. 2017 Ocean Bank. Member FDIC. 305-569-LEND (5363) www.sfbwmag.com DECEMBER 2017 91 CORPORATE GOVERNANCE Boards and Ransomware Dealing with the Devil BY BETSY ATKINS BILL LENEHAN CONTRIBUTED TO THIS REPORT For all the clever coding involved most ransomware delivers a crude deadly message when it strikes your company. Important company files are locked and can be destroyed unless you pay a specific ransom amount to an anonymous recipient with a short deadline. But if your top management information technology team and board of directors have devoted some time thought and resources in advance you ll know how to respond. In my own recent boardroom experience I ve been an evangelist for getting boards active in setting and assuring effective corporate digital policies. Much of this should be basic good governance for the 21st century. However the special dangers of digital hostage-taking demand a unique corporate governance role. If common hackers penetrate your systems to steal data company priorities are never in doubt--you assess and limit the damages and learn from the attack. Ransomware is existentially different and goes to the heart of a board s fiduciary role. Do we as a company pay a ransom demand--or do we take the moral high ground and say no Your board needs to tackle this question now before an attack. The major ransomware strains offer a short time frame to comply. Convening a board meeting that quickly for a flash crisis would be both impractical and unwise. Further the actual ransom itself can be oddly small. Would you really convene an emergency board session to discuss spending 1 000 I ve seen ransom demands firsthand at one of my boards. Here are some ideas specifically targeted at the unique threat of ransomware Get your ethical discussion out of the way now. Your top executives and IT staff need guidance from the boardroom on the big question of whether or not the company should submit. The call is not an easy one. Losing business (and perhaps the business itself) by taking the moral high ground is not your call as a shareholder fiduciary. Your No. 1 mission is to protect the business for investors. Hold this debate now at the board level before a hacker s message pops up on your screen. Shape a corporate ransomware policy based on this discussion. Take these strategic principles and turn them into a working tactical policy. Include functional steps such as who is to be notified who makes the final payment decision damage cost tradeoffs to weigh etc. Also ask if you will even be able to pay the crooks. At a major company whose board I serve we faced a short-term ransomware demand and decided we had to pay. But the hackers demanded payment in bitcoin and the company didn t have a bitcoin account. This took two days to set up by which time the deadline had passed. Fight hackers with unconventional warfare. Push IT to innovate outside its normal comfort zone. Third-party vendors such as Optiv SecureWorks and Stroz Friedberg specialize in penetration testing 24 7 threat monitoring and ethical hacking. Your IT team says it has the latest software updates and threat assessments Good--but contract with outside experts who can make sure. The expenses involved should be modest and today are a basic cost of doing business like insurance. Speaking of insurance check your liability and other business policies when it comes to ransomware costs. Which losses are covered which aren t what compliance measures must you have in place and what are disqualifiers 92 DECEMBER 2017 www.sfbwmag.com CFO & STRATEGIC SERVICES Also how should your company decide on making a claim (If you file a claim for a ransomware payment of 5 000 will your premiums shoot up ) Ultimately boards and management must respond to a ransomware crisis as they do any company crisis. They must assure good response tools and plans are in place and functioning ask tough questions and assure that everyone knows their role. But for the board ransomware prep demands an added step-- asking yourself if you re ready to deal with the devil. Betsy Atkins has a newly updated book Behind Boardroom Doors Lessons of a Corporate Director. She will have a book launch at Books & Books in Coral Gables on November 9 at 6 p.m. Atkins is a serial entrepreneur and three-time CEO. She is CEO and founder of Baja Corp. and on the board of Cognizant Schneider Electric and Volvo. Bill Lenehan a longtime real estate executive is CEO of FCPT created from the spinoff of Darden Restaurants real estate. He previously served on Darden s board as a member of its corporate governance committee and chairman of its real estate and finance committee. Part-Time I Interim I Project Seasoned CFOs who roll up their sleeves and get the job done When your organization requires expert functional disciplines time is of the essence. Nperspective s hands-on approach addresses strategic financial technology and leadership issues. We focus on improving financial performance via a variety of services including WHY CHOOSE NPERSPECTIVE Business & Strategic Planning Cash Flow Management Financial Reporting & Accounting Financial Planning & Analysis Process Improvement M & A Due Diligence & Integration Management Forensic Accounting & Litigation Crisis Management Turnarounds Bankruptcy Government Defense Contracting Exit Planning and Business Value Enhancement Support 954-651-8044 www.Nperspective.com Make informed decisions with the right information at the right time putting it all... CFO & Strategic Services www.sfbwmag.com DECEMBER 2017 93 SALES STRATEGIES Avoid the Holiday Brushoff BY GRETA SCHULZ It s December and Jessica is making calls to potential clients to fill her appointment calendar. She has spoken to lots of people and when one shows a strong interest in her company s product she asks for an appointment. She gets this response Well Jessica I think it might make sense for us to talk further. Call me after the holidays and we can get together then. Jessica is excited about all the interest but she is frustrated with the procrastination. She speaks to her manager and others on her team and they say Oh yeah. That s par for the course this time of year. That is just the way it is. What In a typical December I m already getting booked up for January and beyond. If I were to wait until after the first of the year to book appointments I wouldn t be working efficiently. I ll bet you also have at least a half-dozen appointments already set for well into the next year--dentist doctor CPA etc. So why can t we set business appointments similarly If you are selling a product or service and someone asks you to call after the first of the year it is a brushoff. They do not feel it is important enough to set it now because you haven t gotten them to see it that way. Do you accept that brushoff Here is how you should handle the situation You get to the point in the conversation where you ask for an appointment and the prospect says You know that sounds good. Call me after the holidays and we will set something up. Say I appreciate that Bob. But it will be so crazy after the first of the year with our calendars filling up. Let s go ahead and schedule something now so we can have it already done. If Bob still asks to have you call later say I have to tell you Bob when someone tries to make an appointment with me and I am really not interested in meeting I find a reason to put it off. And the holidays are what I use this time of the year as a believable excuse. If you don t think we have some things to talk about that could really be worth our while let s just say that now and not set anything. I am a big girl Bob. I can take it. But if we do want to talk further let s go ahead and set a time. Either way is fine with me. So Bob what do you think Some of you may not feel good about that response because you believe you would then lose your opportunity with the prospect. Guess what You really didn t have one anyway. In the future you ll need to ask better questions dig deeper and really get the prospect talking about the issues regarding this subject. Once you get real with prospects and they understand where you are coming from either they will schedule the appointment or they will respect you for being honest about it. Wouldn t you 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. 94 DECEMBER 2017 www.sfbwmag.com Don t just pay a premium. Buy the right insurance for your business or home. Let the professionals at CRA help guide you. We Are Real Estate Offices in Boca Raton and Coral Gables Representing All Major Underwriters centuryriskadvisors.com Gary Reshefsky Esq. 305-222-7253 PRO-FI FACILITY MAINTENANCE WE PROTECT ASSETS SOLVE PROBLEMS GROW VALUE FOR COMMERCIAL PROPERTY OWNERS and Provide innovative facility solutions for tenants. SOUTH FLORIDA FOCUSED LANDLORD REPRESENTATION LEASING & SALES PROPERTY MANAGEMENT TENANT REPRESENTATION GENERAL CONTRACTING PRESSURE CLEANING - PORTER HANDYMAN SERVICES www.profifm.com 954.946.4340 info profifm.com Call Ken Morris on his cell for assistance or visit our website to download our current market report. 954.240.4400 WWW.MORRISSEGROUP.COM 1730 Main Street Suite 206 Weston FL 33326 954.474.1776 www.sfbwmag.com DECEMBER 2017 95 PEOPLE PASSION AND PROFITS Put Your People First BY STEPHEN GARBER You lead your organization. You have many stakeholders people you serve people you rely on. One question we love to ask is Who comes first A lot of folks say the customer does. Without the customer we don t have cash. No cash no one gets paid. Focus on the customer Others say the shareholder. We answer to the shareholder. They invested in us. They deserve a great return. When we want to expand we need them. Focus on the shareholder At SFBW s latest CEO Connect event we were entertained and motivated by Teddy Morse. There he was in front of other leaders--potential customers it was at the Cadillac dealership--and he suggested that his priority was clear. He said he focuses on his team. Without them his company wouldn t have serve or keep its customers. Without customers shareholders see no return. And he didn t apologize. Rock on Teddy. Think about it When we do business with another company what does that mean Who or what is that company The cars The buildings The statements invoices The replacement parts No that company is the people we interact with--the human beings who let us know who they are how they are treated and how they feel about the company they work for by the way they treat us. The dean of personal development trainers Zig Ziglar said this at a seminar I attended 35 years ago Show me how your people are being treated and I will show you how your customers are being treated. Show me how your customer is being treated and I will show you how your people are being treated. In today s world of low-overhead direct-to-consumer marketing one of the key metrics for all businesses is customer acquisition. That s not an area of my expertise but common sense tells us that keeping existing clients is a lot less costly than acquiring new customers. And research suggests that people who suffered a bad interaction were 50 percent more likely to share it than those who had good experiences and 52 percent more likely to share it on an online review site such as Yelp. What makes those experiences Your people. As Morse said he rarely sells or services a car these days. But his team sold 1.6 billion worth of cars in 2016. They served the customers in many ways--sales service accounting keeping the spaces clean and more. Great businesses become great from the inside out. The founder has a vision and a mission. His or her people share that vision. As the business grows it must find ways to have that mission and passion be reflected in all that it does for its customers and shareholders. The business is its people. They create sustained success from the inside out. Who s on first Your people. Without them no one scores. Stephen Garber is director of Third Level Ltd. Contact him at 561.752.5505 or sgarber thirdlevel.com. 96 DECEMBER 2017 www.sfbwmag.com THE FAMILY OFFICE The Intelligence of Smart Beta BY JULIE NEITZEL Financial product innovation continues for global investors and 2017 has been a highly successful year for the continued launch of smart beta investment products. In February 2016 I discussed the explosive growth of passive investing in an article titled The ETF Phenomena. Smart beta exchange-traded funds straddle active ( alpha strategies) and passive ( beta strategies) investment management and enable different risk return factors and results. The contemporary investor appetite is voracious as firms such as BlackRock Franklin Templeton Goldman Sachs and others rush to market with smart beta investment options. It is estimated that smart beta funds account for nearly 571 billion of the 4 trillion invested in the global ETF market. The first smart beta funds were launched in 2003 although institutional investors have been applying this strategy since the 1970s. The ETF industry traditionally has been dominated by products based on market capitalization weighted indexes ( beta products) that are designed to represent the broader market or a particular segment of the market. Smart beta indexes attempt to select stocks that might have better risk-return performance than the overall market by using various fundamental screens and factors such as sales earnings book value dividends cash flow and stock price volatility to create or improve on the traditional indices. The goal of applying these factors is to design a smart beta product that will outperform simple beta market cap weighted funds such as the S&P 500 ETF. The merits of including smart beta ETFs in a portfolio include Efficiency. It enables investing in thousands of stocks with a particular risk return profile in a simpler and less-costly manner than using mutual funds and other actively managed funds which have higher costs and higher probability of underperforming the broader market. Different investment outcomes. Traditional ETFs ( beta products) weight the inclusion of stocks based on their market value or by market capitalization. Instead of ranking stocks by market cap smart beta ETFs construct indexes based on certain traits or factors that include volatility quality value momentum and company size. By applying these factors outcomes such as reducing risk and or enhancing returns can result. Investment costs. Fees for smart beta products are considerably lower than actively managed strategies and mutual funds but typically slightly higher than traditional ETFs. Diversification. Smart beta ETFs are nimble investments that can provide broader exposure to various sectors but also apply certain factors such as reducing stock price volatility enhancing stock yields in an efficient manner. Pre-specified risk return attributes. Smart beta products create customizable risk return for portions of a portfolio. For example smart beta research concludes that constructing an index of lower-volatility stocks actually can outperform the higher-volatility stocks over certain market periods. Considerable academic research has been conducted since the 1970s by firms such as Barra studying the impact of factors on long-term equity performance. This exhaustive research serves as the analytical rationale for incorporating smart beta strategies into portfolios. Use a knowledgeable investment advisory team to explore the fit of smart beta strategies into a portfolio. Risk return attributes need to be understood to set investor expectations as smart beta investments can underperform during certain market conditions and not all smart beta strategies will deliver superior investment results. There are currently more than 500 smart beta investment products with new ones being created regularly requiring careful research and guidance in the selection process. Smart beta solutions might be quite smart for your portfolio with proper advice and guidance. Julie Neitzel is a partner and adviser with WE Family Offices in Miami and a board member of the Miami Finance Forum The Miami Foundation NACD-Florida and Heico Corporation. Contact her at julie.neitzel wefamilyoffices or 305.825.2225. www.sfbwmag.com DECEMBER 2017 97 HISTORY VIEWPOINT Charles Trainor photographer. Miami News Collection 1989-011-2834 Santa Claus helping load a Pan Am jet December 1968. A City for Santa BY CHRISTINE ALEXIS Besides having memorable nochebuenas (Spanish for Christmas Eves ) and unforgettable holiday decor Miami has for decades had some of the most outrageous Santas around. For a better understanding turn to December 1927. The weather was in the 70s and unlike traditional Santa Clauses Miami s version of St. Nick wore shorts. And instead of traveling by sleigh Miami s jolly old elves traveled by boat. As time progressed Miami got more creative. One of the most iconic Santas could be found at Burdines. The first neon Santa was lit Nov. 24 1950 and thousands of local residents gathered for the event. The Santa lighting became quite the annual tradition for the following 10 years. Pictured here Burdines on Dec. 15 1953. While the 1950s were all about the lights the Pan Am Santa in the 60s took the cake. Pictured here Santa loading a Pan Am jet in 1968 in full holiday attire and the airplane has the words Santa Claus Special emblazoned. Santa has been special to Miami and in December 1975 he traveled by helicopter--a Sun Line helicopter at that. Instead of being trendy and wearing shorts as the 1920s-era Santa did this one decided to wear his complete outfit. Miami has its own holiday traditions that have spanned throughout the decades. Santa is just one of the most unforgettable. 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. 98 DECEMBER 2017 www.sfbwmag.com 7 2016 Best Cruise Line in Europe Travel W eekly s 14th Annual Readers Choice A ward s Best in Class. Experience the Difference. To learn more contact Philip Jacobs -- PJacobs celebrity.com www.sfbwmag.com DECEMBER 2017 99 START YOUR OWN REINDEER GAMES. edmorse.com 100 DECEMBER 2017 www.sfbwmag.com