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Brazilian, Savannah companies to open joint venture in Pembroke

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Savannah-based Savannah Global Solutions and Belo Horizonte, Brazil-based CZM, have announced the formation of a new manufacturing joint venture to be located in Pembroke’s J.D. Harn Industrial Park, located off U.S. 280. It was the first industrial park in Bryan County.

The new company announced plans Monday to make improvements to the former Oldcastle Precast plant for the location of a manufacturing and assembly facility. The new facility will employ about 50 people for production and assembly to serve domestic and foreign markets.

“Our venture with CZM is a great example of how businesses from different countries can help each other establish themselves in foreign markets. With CZM’s support, Savannah Global closed its first large account in the Brazilian forest industry sector and continues to provide services that assist our business developments there,” said Mark Sauer, president of Savannah Global Solutions, LLC.

The new facility, once at full capacity, will become one of Pembroke’s largest employers.

“Our city has worked very hard over the past few years to attract new jobs and investments into our community. This announcement today is a product of those efforts and we look forward to helping both Savannah Global and CZM grow and prosper in Pembroke,” said Pembroke Mayor Mary Warnell.

The new facility will be Bryan County’s third International Flag Facility, joining Oracal USA (Germany) and Argos USA (Colombia) with production facilities in the county.

“This announcement shows that we are the community of choice for this market due to our outstanding business climate,” said Steve Croy, chairman of Bryan County’s development authority.

The companies cited Bryan County’s business climate, labor force and proximity to the Georgia Port Authority terminals as key factors in their decision to locate in Pembroke and said they plan to increase their exports and imports through the Port of Savannah.

“The venture between Savannah Global Solutions and CZM is a unique international investment that leverages some of Georgia’s most competitive assets for this new manufacturing and assembly operation,” said Chris Cummiskey, commissioner of the Georgia Department of Economic Development.


Exchange in brief

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Gas prices drop in Savannah

Average retail gasoline prices in Savannah fell 4.3 cents a gallon in the past week to an average of $3.21 a gallon on Sunday.

The national average fell 3.2 cents a gallon to $3.53, according to gasoline price website SavannahGasPrices.com.

Prices Sunday were 29.1 cents a gallon lower than the same day one year ago and are 24.6 cents a gallon lower than a month ago. The national average has decreased 17.6 cents a gallon during the last month and stands 12.6 cents lower than a year ago.

“I have a sneaking suspicion that the election in Greece may stir up oil prices this week, and we could see oil prices gain as markets feel more upbeat about the economic situation,” said GasBuddy.com Senior Petroleum Analyst Patrick DeHaan.

Money management classes to be taught

Consumer Credit Counseling Service of the Savannah Area, Inc. (CCCS) will teach a series of money management classes geared toward creating a family spending plan, improving credit and maximizing income starting Thursday.

The “Dollars to Dough” series is free and includes child care. The eight-week series will take a hands-on approach to teaching families how to track expenses, set realistic financial goals and contribute to savings.

Classes will be offered at the West Broad Street YMCA, 1110 May St., beginning at 6 p.m. Thursday.

CCCS in partnership with the West Broad Street YMCA was awarded a grant by Chase Card Services, a division of JPMorgan Chase & Co., to support financial education programming open to Savannah residents.

To register or for more information, call the West Broad Street YMCA at 912-233-1951.

Habitat for Humanity donation box contest

Oglethorpe Mall has unveiled entries submitted by two student finalists from the Savannah College of Art and Design who entered the Coastal Empire Habitat for Humanity’s donation box redesign contest.

Students were asked to submit a sketch and subsequently constructed design for a new donation box that includes a secure way to collect cash donations. The winning entry will serve as the model for Habitat for Humanity’s collection boxes at Oglethorpe Mall.

The finalists’ entries are on display in the JCPenney court at the mall until July 31. Shoppers can vote for their favorite by making donations. The finalist whose entry collects the most donations will win a $200 Oglethorpe Mall gift card.

All proceeds from the contest will go toward building new homes for low-income families.

'Major' Microsoft announcement

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LOS ANGELES — Microsoft has unveiled Surface, a tablet computer to compete with Apple’s iPad.

CEO Steve Ballmer was on hand to announce the new tablet, calling it part of a “whole new family of devices” the company is developing.

One version of the device, which won’t go on sale until sometime in the fall, is 9.3 millimeter thick and works on the Windows RT operating system. It comes with a kickstand to hold it upright and a touch keyboard cover that snaps on using magnets. The device weighs under 1.5 pounds and will cost about as much as other tablet computers. Its debut is set to coincide with the upcoming fall release of Microsoft’s much-anticipated Windows 8 operating system.

Steven Sinofsky, president of Microsoft’s Windows division, called the device a “tablet that’s a great PC —a PC that’s a great tablet.”

A slightly thicker version —still less than 14 millimeters thick and under 2 pounds — will work on Microsoft’s upcoming Windows 8 Pro operating system and cost as much as an Ultrabook, the company said. The pro version comes with a stylus that allows users to make handwritten notes on documents such as PDF files.

Each tablet comes with a keyboard cover that is just 3 millimeters thick. The kickstand for both tablets was just 0.7 millimeters thick, less than the thickness of a credit card.

Microsoft has been making software for tablets since 2002, when it shipped the Windows XP Tablet PC Edition. Many big PC makers produced tablets that ran the software, but they were never big sellers. The tablets were based on PC technology, and were heavy, with short battery lives.

Microsoft didn’t say how long the Surface would last on battery power.

Microsoft’s decision to make its own tablet is a departure from the software maker’s strategy the personal computer market. With PCs, Microsoft was content to leave the design and marketing of the hardware to other companies, such as Hewlett-Packard, Dell, Lenovo and Acer, that licensed the Windows operating system and other software applications.

The more hands-on approach with its tablet indicates that Microsoft either lacks confidence in the ability of its PC partners to design compelling alternatives to Apple’s iPad or it believes it needs more control to ensure Windows plays a major role in the increasingly important mobile computing market.

Whatever Microsoft’s motives, the company’s tablet plans risk alienating some of its longtime partners in the PC industry

Forsyth Farmers Market thriving at 3 years old

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The Forsyth Farmers Market was founded just three years ago, but it seems safe to say it’s a permanent fixture in Savannah’s economic and cultural landscapes.

And that’s great news, especially given the various well-intentioned but vain attempts at establishing downtown farmers markets over the last decade or so.

The success seems to be related to a number of key factors.

The location at Forsyth’s south end is accessible and shady.

The surging interest in locally grown food shows no signs of abating.

The market’s founders adopted a big tent philosophy to maximize both the number of customers and vendors.

The Forsyth Farmers Market runs from 9 a.m. to 1 p.m. every Saturday, but some vendors start running low on items long before the official ending.

Last Saturday, I meandered past the 30 or so vendors before settling on some beautiful fresh vegetables and ground beef from Hunter Cattle Company in Brooklet, just this side of Statesboro.

I could certainly have gotten cheaper beef a few blocks away at Kroger, but Hunter’s cattle are grass-fed, with no steroids, antibiotics or hormones.

With purchases like those at the Forsyth Farmers Market, consumers know exactly where their food came from. And they know where their money is going.

 

Savannah makes another list

Savannah has been included in countless lists in recent years, especially from travel publications eager for page views.

Cumulatively, all those mentions must be helping tourism, but our inclusion on any one of those lists probably has little impact.

But our presence in Forbes magazine’s list of the 25 best places to retire might be an exception.

Forbes has a wealthy readership, many of whom are near retirement age. And surely many of the magazine’s readers around the country already have some sort of connection to Savannah.

Perhaps they have visited here. Or, even better, perhaps they know someone who has retired here.

I’ve been struck over the years by the diverse lifestyle choices that Savannah offers to retirees, from the Historic District to The Landings, from comfortable city neighborhoods like Ardsley Park to the islands.

And I’ve obviously been struck by the crucial contributions by transplanted retirees to cultural institutions such as the Savannah Music Festival and the Telfair Museums.

Ironically, the only downside about retiring in Savannah mentioned by Forbes is the “sluggish economy.”

Our economy would be a lot more vibrant if retirees started moving here at something even close to the rate predicted before the housing bust.

All of which leads to some pretty obvious questions about what else we could be doing to capitalize on Savannah’s existing reputation as one of the nation’s best retirement spots.

 

City Talk appears every Sunday and Tuesday. Bill Dawers can be reached via billdawers@comcast.net and http://www.billdawers.com. Send mail to 10 East 32nd St., Savannah, GA 31401.

 

 

Disney shifts port business from Savannah to Jacksonville

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Walt Disney announced Tuesday morning that it will begin using Jacksonville ports instead of Savannah to ship most of the merchandise for its Central Florida theme parks.

Disney currently imports its goods through the Port of Savannah. Tuesday’s announcement will shift 75 percent of that cargo through JaxPort.

The volume would equate to about 2,500 20-foot cargo containers per year. The cargo originated in China, Thailand and Vietnam and contains merchandise for Disney’s Central Florida parks and hotels.

The company would not give a dollar figure for the deal.

Gov. Rick Scott and others on hand said the switch by Disney shows Florida is gaining favor as a place for shippers to use to reach Florida markets rather than going through ports in other states.

“We are working to make Florida the No. 1 state for business,” Scott said in a news release.

The announcement was made at Jacksonville’s TraPac terminal and included Scott, Lt. Gov. Jennifer Carroll, Port CEO Paul Anderson, Mayor Alvin Brown — and Mickey Mouse.

SEDA appoints new advisory board

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The Savannah Economic Development Authority recently announced new appointments to its SEDA advisory council. The council, made up of area business, education and community leaders, assists and advises the SEDA board on strategic planning and direction, as well as serving as advocates for the organization.

“Not only does the SEDA advisory council serve as some of our most valuable advocates, they bring a wealth of knowledge that will be beneficial to SEDA,” said Steve Weathers, SEDA president and CEO. “We look forward to working with the council and getting their valuable input.”

“SEDA is a leading economic development authority in the state and the country,” said council member Sam McCachern, senior vice president of Thomas & Hutton who was reappointed to a second term. “I look forward to continue working with the SEDA Board of Directors, the rest of the advisory council and the SEDA staff as we continue to grow, attract and develop new business opportunities for the region.”

Advisory council members, who will serve a two-year term consistent with the term of the current chairman of the board of directors, include:

Jennifer Abshire, Abshire Public Relations; Nelson Baker, Georgia Institute of Technology; Ashley
Barnwell, Savannah Christian Prep School; Chad Barrow, Coastal
Logistics Group; Linda Bleiken, president, Armstrong Atlantic State University; John Coleman, Bonitz of Georgia, Inc.; Cheryl Dozier, Savannah State University; Tony Edgerly, International Brotherhood of Electrical Workers; and Danny Falligant, Ingleby Falligant.

Also, Curtis Foltz, Georgia Ports Authority; Karen Guinn, JCB; Lee Hughes, Hughes Public Affairs; Al Kennickell, Kennickell Printing Co.; Thomas Lockamy, Savannah Chatham County Public Schools; Kathy Love, Savannah Technical College; Monica Mastrianni, Greenline Architects; Sam McCachern, Thomas & Hutton; Anthony Phillips, Advent Dental; Chadwick Reese, Chatham Area Transit; Joseph “Rusty” Ross, Morris, Manning & Martin LLP; Jennifer Sawyer, Hunter Maclean; Peter Weishar, SCAD Film and Digital Media; and Jim Williams, Mitsubishi Power Systems.

Council members are responsible for regularly attending and actively participating in SEDA board meetings, events and activities; staying informed on relevant issues; providing support as may be requested and advocating on SEDA’s behalf in the local community, throughout the state and across the country as opportunities allow.

Exchange in brief

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Deadline for Leadership Savannah applications extended

Applications for the 2012-13 Leadership Savannah class are being accepted through June 28.

The 2012-13 class will be limited to 42 people, and the selections committee is looking for candidates from a cross section of the community for the one-year class. Applicants must have the full support of their organization or corporation they represent.

The programs are expected to consist of monthly interactive sessions led by top community experts. Sessions are expected to begin in September and conclude in June 2013. Applicants will be expected to attend all sessions to graduate.

Full program fees will be $2,500, with a limited number of $1,000 scholarships available. To apply, go to LeadershipSavannah.org, and click on the “Apply” button. Applications will be accepted through 5 p.m. on June 28.

Fiber optics training preps technicians, specialists

Georgia Southern University will present Fiber Optics Association certification training for technicians and specialists Aug. 6-12 at the Coastal Georgia Center.

The class, running Monday through Wednesday, prepares participants to verify their skills in fiber optics. The certification exam is given and graded at the end of the class and included in the course fee.

Certifications are valuable for careers in security, surveillance, computer networking, telephone systems or cable television installation.

Training continues on Thursday and Friday with the CFO Specialist in Testing & Maintenance course and on Saturday and Sunday with the CFO Specialist/Splicing course. Both courses end with the related exam.

The course fee is $750; each of the specialist courses is $725.

Register online at ceps.georgiasouthern.edu/conted/fiberoptics.html or by calling toll-free 855-478-5551.

New online directory of state’s exporters

ATLANTA — Georgia exporters now can list their companies and products or services in the online Georgia Export Directory to heighten their global visibility and attract potential customers, buyers and/or representatives.

The listings are offered through the Georgia Department of Economic Development and Convergent Commerce Group, publisher of the directory.

The directory also enables interested parties to search for Georgia-based products or services by industry category, keyword, geographic markets and company name. Georgia-based export service providers can be listed in the directory as well so Georgia companies engaged or interested in international trade can search for service providers to assist them.

Qualified Georgia companies may apply online at georgiaexportdirectory.com to register their products or services for free or to upgrade, for a fee, with a more in-depth listing. There are 544 companies registered on the site to date.

Jake Hodesh: A wider net benefits us all

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I wonder if we will look back at June 2012 as a monumental month in Savannah’s economic development history.

In recent weeks, a slew of real estate development deals have caught a full head of steam, the Chamber/Visit Savannah released 2011 numbers reflecting the financial impact of our region’s robust tourism industry, and perhaps the quietest of all, Savannah Economic Development Authority (SEDA) hosted what must have been their most energized board meeting to date.

SEDA board President David Paddison and SEDA President Steve Weathers had trouble quieting the crowd but eventually calmed everyone down and began the meeting. What unfolded was nearly two hours of highly energetic dialogue, creative expression and out-of-the box thinking.

SEDA staffer Brandt Herndon rushed through his monthly report, then introduced Don Schoenl, president and CEO of Nordic Logistics and Warehousing, LLC. Schoenl and his group went on to describe a $50 million, 100 employee facility to be completed by year end in our region.

This was exciting news for everyone in the room and a much needed win for the local economy.

Curtis Foltz, Georgia Ports Authority executive director, spoke about how important the Nordic addition was to our community, and Mayor Edna Jackson remarked on the importance of continued growth.

Following the Nordic announcement, SEDA’s Brynn Grant spoke about recent international developments advanced by World Trade Center Savannah. They seem to have played a valuable role in Hussey, Gay, Bell & DeYoung’s international business development efforts, and the group is talking with other regional businesses about international expansion opportunities as well.

At this point, I couldn’t help but focus my attention on the recent changes made within SEDA. For those who don’t know, the past year has been a transition-on-steroids for SEDA.

Historically, SEDA has operated as a traditional economic development group with real estate deals, bond issuance and tax abatement being their bread and butter. And because they’re good at what they do, business has been good for SEDA. Really good.

SEDA’s traditional business model has led to a substantial annuity-like revenue stream for the organization. Their past successes help fund current operations and initiatives.

In 2010, SEDA could have rested on its laurels and continued down the traditional economic development path. Or they could have widened their net and tried additional approaches to economic development. To their credit, SEDA chose the latter.

SEDA decided more than a year ago to plan for a more diversified, forward-looking business model. Step One: SEDA recruited Weathers, an experienced economic facilitator (ie rain maker) to serve as president. They then promptly tasked Weathers with convincing regional leaders, local politicians and Savannah influencers that additional economic development strategies were worth investigating.

Step Two: Stanford Research Institute was brought in to develop a new growth model. Six months later, the SRI plan was presented to SEDA’s board and the public. SEDA staffers have been advancing this model inside SEDA and throughout the community ever since.

The Stanford plan outlined four key areas for economic development. two of these areas, advanced manufacturing and transportation/logistics, are traditional plays in our region. Both are squarely in SEDA’s wheelhouse and everyone agrees SEDA should stay focused on these core strengths.

Stanford’s other two areas for economic development, specialized business services and digital media (including film and TV), are a bit more of a challenge for SEDA, both in terms of skill sets and public support.

The SRI study provides an objective third-party perspective of Savannah’s assets and greatest job creation opportunities.

Making these two high-wage, high-growth categories become serious economic development engines for our region is the responsibility of our entire community, not just SEDA. Creating, growing and attracting businesses in these categories aligns local job opportunities with the skill sets of our local college graduates and will help us keep more of that talent right here in Savannah.

If we can’t get behind these findings, we’ll miss an enormous opportunity.

2012 marks a brave new world for SEDA, and if the vibe at their June board meeting was any indication, the next few years will be incredibly exciting for Savannah. While traditional economic deals for our region are starting to take form again, the real challenge, and in my opinion the most exciting one, is beginning to take shape.

Can SEDA convince the entire region to adopt these broader strategies?

Can the regional power brokers who were so excited last Tuesday agree to support a more diversified approach to economic development?

I’m betting the answer is yes. If so, this will benefit us all. As a unified community, we can broaden our vision and move Savannah toward a more financially stable ecosystem.

Jake Hodesh is the executive director of The Creative Coast, a not-for-profit organization that promotes the creative and entrepreneurial community within the region. Jake can be reached at 912-447-8457 or jake@thecreativecoast.org.


Johnny Harris renovates, but keeps its classic look

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Some things have changed at Johnny Harris Restaurant over 88 years. The restaurant’s dining room “under the stars” was once a dance-floor decked with a revolving light and live music. There used to be slot machines inside for parents and a small petting zoo out back for kids.

But the classic barbecue, fried chicken and 1930s atmosphere — and the stars for that matter — haven’t changed. And the restaurant intends to keep it that way.

On Tuesday, a new rooftop cupola was hoisted on Johnny Harris’ dome as part of a larger restoration project to maintain the 76-year-old building’s original feel.

The old cupola originally lighted and filtered cigarette smoke from the dance floor area below. Without the need to filter smoke, the new piece is mostly decorative and symbolic.

“It’s to show that we care about our building, and we want to bring it back to its glory days,” said Corbin Parker, a manager at the restaurant and great-grandson of Johnny Harris’ original partner, Red Donaldson.

In the last year, the ceiling of the main dining room has been repainted twilight blue. The dining room booths have been refinished. Even a few burned-out stars on the ceiling have been replaced. Work on the bar area, bathrooms and kitchen area will follow. The renovations are expected to be completed next year.

Shortly after Johnny Harris founded the restaurant in 1924, Red Donaldson began working with
him. Since then, the restaurant has been in Donaldson’s family for four generations. In 1936, the restaurant moved to its current location at 1651 E. Victory Drive. It cost $24,000 to build and was Savannah’s first air-conditioned restaurant, according to Red’s son, Phil Donaldson.

The restoration is an effort to sustain the look of those early years, which is part of the attraction, Parker said. Renovating the restaurant without changing it too much is the challenge.

“What we hear from our customers,” Parker said, “is that they like the feel of Johnny Harris, and they don’t want anything to change.”

Red Donaldson’s son-in-law, Norman Heidt, has worked with the restaurant since 1966. He said so many generations have eaten at Johnny Harris that the unique atmosphere has become a part of the restaurant’s identity. While the renovations are a way to improve the restaurant, Heidt said they would “give it the same old feel.”

“Savannah is all about tradition,” Parker added, “and Johnny Harris is a Savannah tradition.”

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ON THE WEB

Go to savannahnow.com/exchange to see a slideshow of photos of the Johnny Harris Restaurant.

Ga. Ports Authority wants into suit

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CHARLESTON, S.C. — The Georgia Ports Authority wants to intervene in a federal lawsuit challenging the $650 million deepening of the Savannah River shipping channel saying its contractual and economic interests are at risk.

The authority also asked a judge to block South Carolina’s Savannah River Maritime Commission from entering the suit, saying that would expand the action and simply bring in extraneous issues.

The authority wants the river shipping channel deepened to handle larger ships that will be routinely calling when the Panama Canal is deepened in 2014. It filed the motions on Wednesday and U.S. District Judge Richard Gergel on Thursday gave the other parties in the case until Aug. 6 to respond.

The lawsuit filed by environmental groups contends the U.S. Army Corps of Engineers needs a South Carolina pollution permit before the deepening work can begin. The suit alleges toxic cadmium from river silt will be dumped in a dredge spoils area on the South Carolina side of the river.

The suit was brought by the Southern Environmental Law Center on behalf of the Savannah Riverkeeper, based in Augusta, as well as the South Carolina Coastal Conservation League and the South Carolina Wildlife Federation.

The motion says the Georgia Ports Authority has the right to enter the lawsuit and if not permitted to do so “its ability to protect its interests could be impaired because the environmental groups and the Maritime Commission, if it is permitted to intervene, seek to alter, delay and/or stop” the river deepening.

In answering the lawsuit itself, attorneys wrote that while there will be naturally occurring cadmium in the dredged material, “no adverse impacts” will occur.

The South Carolina Maritime Commission should be blocked from the case because it “will be burdening the parties with extraneous issues,” the motion said, adding that letting the commission in “would have parties stake out positions and advance arguments concerning the commission’s own authority which may ultimately be determined by the South Carolina Supreme Court.”

If the commission is allowed as a party, it should only be able to address the permit issue before the court, the motion said.

The commission, in seeking to enter the case, wants Gergel to rule that in the deepening project, the Corps of Engineers must obey South Carolina environmental rules and “must comply with South Carolina law, including orders, rulings, decisions, and opinions” of the state’s Supreme Court, Administrative Law Court and the commission.

Environmentalists have also sued in state court, alleging a water quality permit for the deepening approved by the Department of Health and Environmental Control last year is illegal because the commission, not DHEC, has authority over activities on the river.

The state Supreme Court has not yet ruled in that case but Chief Justice Jean Toal said during a hearing that DHEC broke state law when it left the commission out of dredging negotiations and “rubber stamped” an agreement with Georgia officials.

Model of ocean-going tugboat William T. Moore now on loan to the Savannah convention center

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If you ask, Savannah businessman Howard Morrison will tell you he’s retired, but he’s never without multiple projects in the works.

Morrison, who has always had a fascination with all things maritime, was instrumental in the creation of the Savannah Ocean Exchange, is a big supporter of Savannah’s Ships of the Sea Museum and was on hand for much of the Tall Ships festivities.

So it comes as no surprise to learn that Howard is behind the city’s latest maritime coup — a collection of authentically detailed models of ships from the 20th century and beyond to be displayed at the Savannah Maritime Trade and Convention Center.

“The Tall Ships Festival was wonderful, and the Ships of the Sea is doing a beautiful job of telling the story of Savannah’s maritime history in the 18th and 19th centuries,” he said recently.

But, with the museum already bursting at the seams, Morrison had to find another way to highlight the nautical history of the 20th century and beyond.

The trade center fit the bill perfectly.

In May, Morrison was on hand for the Trade Center Authority’s monthly meeting to see his friend, Remer Lane III, donate the first model — the Navigator Pluto, one of five petrochemical tankers he helped build at the turn of the 21st century while working for Navigator Gas.

The second model — the CPO Savannah — was donated last month.

A modern container ship built in 2009 by Claus-Peter Offen Shipping Co. of Hamburg, Germany, this model came courtesy of Savannahian Chris Desa, a former merchant marine captain who’s been involved in the shipping industry for more than 40 years.

The CPO Savannah, currently trading for the United Arab Shipping Co. as the UASC Shuiaba, calls regularly on the Port of Savannah.

This month’s model offering is the William T. Moore, a steel-hulled, ocean-going tug with close Savannah ties.

Acquired from the U.S. Navy by C.G. Willis Inc. after World War II, the tug, then named Patricia, was used to tow barges on the Intracoastal Waterway until purchased in 1961 by Capt. J. Lewis Moore as the first vessel for his new Moore Towing Line in Norfolk.

Capt. Moore renamed the tug after his 13-year-old son, William T. Moore, and converted her to ocean service, where she served the entire U.S. East Coast as well as the Gulf of Mexico and Caribbean.

Unlike the more familiar Moran and Crescent tugs that dock the big ships on our river, the 116-foot-long William T. Moore towed such large barges as converted Liberty ships and Navy Landing Ship Tanks on long-distance voyages.

The tug made a number of calls on Savannah before being decommissioned in the 1970s, according to her namesake, Ted Moore of Statesboro, who had the model made some 15 years ago.

Moore and his wife, who live in Statesboro, have placed the model on long-term loan to the Trade Center.

“We wanted to share her and this is such an appropriate setting,” he said.

 

Senior business reporter Mary Carr Mayle covers the ports for the Savannah Morning News. She can be reached at 912-652-0324 or at mary.mayle@savannahnow.com.

 

 

 

 

 

Backus, buildings make way for new center

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Demolition has begun, and eight buildings, including Backus’ trademark pink showroom and mechanical shops, are being razed to make way for the 65,000-square-foot shopping center to be known as Victory Station.

PetSmart also plans to open a store in the center, according to marketing materials. The pet supplier, which already operates a Savannah store on the southside, will occupy almost 14,000 square feet, leaving 15,200 square feet for other tenants.

Additional tenant announcements are expected next month. Alterations to Victory Drive and other streets around the property will also begin next month.

Whole Foods signed on as Victory Station’s anchor tenant in May, ending more than a year of speculation about the specialty food retailer’s future in Savannah. The company’s regional vice president hailed Savannah as a “terrific location” as Whole Foods expands its presence in the Southeast.

The Backus site has been vacant since October 2009 when General Motors revoked the Backus dealership’s franchise agreement as part of larger cost-cutting measures. The Backus family had sold Cadillacs and Pontiacs on the site for 54 years. 

Exchange in brief

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‘Waiting on a Cure’ sponsorships for sale

Sponsorship packages are available for the 11th annual Waiting on a Cure luncheon to be held at the Savannah Marriott Riverfront on Nov. 16.

Corporate sponsorship packages are available from $1,500 to $10,000. Each sponsor package includes a table for 10, recognition at the event and an ad in the event program. Businesses also can donate a gift to be auctioned or buy an ad in the event program.

Waiting on a Cure benefits the Curtis and Elizabeth Anderson Cancer Institute at Memorial University Medical Center. Each table host dresses in a costume based on a theme and serves their guests throughout the meal. The guests then “tip” their host at the end of the meal.

The 2012 event is being presented by South University and ApartmentSavannah.com with the theme, “I Spy a Cure.” Contact Lauren Grant for details at 912-350-1524 or grantla1@memorialhealth.com.

Savannah refinery receives Nustar chairman’s award

NuStar Energy L.P. presented its Savannah refinery with the company’s highest health and safety award for the site’s outstanding performance in 2011 during a management meeting July 12.

NuStar has 46 employees at its Savannah Asphalt Refinery, 7 Foundation Drive.

The employees were recognized for their zero recordable and zero lost time employee and contractor injury rates, as well as for demonstrating continuous improvement in safety awareness and stewardship and continuous compliance with process safety management requirements.

The site’s safety performance is measured against the performance of NuStar’s other locations internationally, and the company’s executive leadership team selects a site or region for the honor each year.

“This is a huge achievement for the Savannah Refinery employees, as we were acknowledged in front of our peers, NuStar’s executive leadership team and the company’s chairman, Mr. Bill Greehey,” said Vice President/General Manager Wren Mills.

New website, brand for farmers market

Eleanor Rhangos and Leigh Thomson, principles at LETR & Co. have announced the launch of a new brand identity and website (www.forsythfarmersmarket.com) for the Forsyth Farmers’ Market.

The new website and brand are designed to better represent the mission of the weekly market and communicate the unique story of each vendor. The site also provides information to educate and engage the community about local food, including recipes of how to prepare it. The market, located at the south end of Forsyth Park, is open year-round every Saturday from 9 a.m. to 1 p.m.

The work was done on a pro-bono basis and included partnering with other local creative professionals to donate services. Angela Hopper of Angela Hopper Photography took photographs for the website.

Savannah firm's mobile application design platform RappidApp acquired by Atlanta company

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Hannah Byrne and her team at Savannah technology firm Smack Dab Studios named their “baby” product RappidApp.

The mobile app solution has lived up to the moniker.

Byrne completed a sale of the RappidApp technology on Tuesday, just 16 months after the company built the product that allows users to easily create and maintain mobile applications for smartphones and tablets. RappidApp was acquired for an undisclosed amount by SignUp4, an Atlanta-based company specializing in content management for meetings and event planners.

The sale is a coup both for Smack Dab and the Savannah tech community, Byrne said.

“To build Smack Dab to the level we did and to build RappidApp in the state, grow it in the state and sell it in the state, is a testament to our tenacity,” Byrne said. “It also shows what the Creative Coast community has a chance to bring to this region.”

RappidApp is utilized by several local businesses in their mobile applications products, including Savannah Magazine, the Juliette Gordon Low Birthplace and Bryan County-based vinyl manufacturer Oracal.

Byrne closed Smack Dab with the sale. She ceded most of the firm’s Web development work to a partner business, Southpoint Media, while developing RappidApp. Byrne will start a new job next month in Gulfstream Aerospace’s information technology department.

“Hannah is an incredibly hard worker whose entrepreneurial spirit is palpable,” said Jake Hodesh, executive director of the Creative Coast Alliance, the organization that exists to foster an environment attractive to technology and knowledge-based businesses. “We are very happy for Hannah and proud that she has found success in the region.”

Byrne’s success came with difficulty. She moved Smack Dab to Savannah from Atlanta in 2006, on the leading edge of the push to grow Savannah’s tech community. The company built websites and designed interfaces for several successful Savannah businesses and organizations, including Gulfstream, HunterMaclean and the Savannah Economic Development Authority.

Sensing the shift away from websites and toward mobile applications — and recognizing the complexity businesses face in creating and maintaining mobile apps — Byrne refocused the business on RappidApp early last year.

She envisioned developing the platform, selling it to clients like a software application and gradually building the business. RappidApp attracted no venture capital interest, however, and with limited resources in a competitive space, sales didn’t meet expectations.

“We’re builders, not sellers,” Byrne said. “We decided to either sell the technology or shut it down.”

Byrne’s banker connected her with SignUp4 in May, and the acquisition proceeded at an “unheard of” pace for a technology sale.

SignUp4 announced the acquisition Tuesday. RappidApp will allow the company to extend its “cutting-edge personal experiences” for meeting attendees to mobile devices.

“Because this technology was originally designed to allow any user to simply create their own apps, upload logos and graphics and manage content, it is a good companion for our easy-to-use website utilities,” SignUp4 President Nick Romano said.

As for Byrne’s future, she is looking forward to a return to the corporate world in her new role with Gulfstream.

“I worked 24 hours a day, seven days a week on my business, so I’m looking forward to being part of a bigger team where I have other talented technologists to work with,” Byrne said.


Savannah Wing Zone franchise a model for rest of chain

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The scouting trip took Jeremy and Deborah Serls all over Southside Savannah, and every long block revealed another attractive piece of ground on which to build the area’s first Wing Zone franchise.

The route included a pass by the Eisenhower Square shopping center. And there, tucked between McDonald’s and a billiards hall, sat a small building with a double drive-thru home to a coffee shop.

“That looks like a good spot,” Jeremy told his wife. “Too bad it’s taken.”

For first-time franchisees tasked with opening Wing Zone’s first built-from-the-ground-up location, as well as the chain’s second store with a drive-thru, the coffee shop helped the Serlses visualize what their store could look like.

The java business failed not long after, opening the outparcel to new tenants. The Serlses claimed it, knocked down the old building and constructed a similar structure, albeit with just a single drive-thru lane.

Today, nine months after opening, the store is one of the best performing in the 100-plus location Wing Zone chain. Sales are 40 percent above the company average.

The model is the future for the Atlanta-based corporation.

“For years, we had customers saying, ‘We love the products, but we want it faster,’” Wing Zone CEO and co-founder Matt Friedman said. “We’re in a convenience world and adding a drive-thru addresses that demand. And free-standing locations give us more exposure.”

 

Success from
the start

The Wing Zone back-story is one worth clucking about.

Friedman and a fraternity brother, Adam Scott, started the business in 1991 out of a University of Florida frat house kitchen. Despite the presence of 40,000 nocturnal and hungry co-eds, Gainesville’s late-night food delivery options were limited to pizza at the time.

Friedman and Scott’s venture was a success from the start — they sold out of chicken their first two nights in business. The pair opened a storefront in Gainesville two years later. By 2000, they had grown to seven stores and shifted their focus to franchising.

One of the first franchise locations opened in a strip mall in West Palm Beach, Fla. And one of that store’s best customers was Jeremy Serls. He worked in a business a few doors down and often took his meals at the Wing Zone.

He also had family in Savannah, and on a visit one week, his wing craving kick in.

“The only delivery here was pizza and Chinese,” Serls said. “I knew a Wing Zone would go crazy here.”

Serls filed the idea away in his mind. He and Deborah moved from Florida to Phoenix for a few years, where he worked as an account representative for Hershey’s chocolate company and she toiled in a medical office. They saved their money and three years ago reached out to Wing Zone about opening a franchise in Savannah.

They successfully completed the application process, signed the franchise agreement and built the store, opening Oct. 17, 2011. The public response was similar to what Friedman and Scott encountered 20 years earlier — people lined up out the door and cars piled up in the drive-thru.

“That’s when the real work began,” Serls said.

 

Perfecting
the process

To prepare a chicken wing, from dropping the raw meat into the fryer to placing the cooked and sauced treat into a box, takes eight-and-a-half minutes.

The drive-thru service time goal is 90 seconds.

Wing Zone corporate spent almost a year figuring out how to produce fresh wings fast. The company debuted drive-thru service last April in a converted Checker’s in Cumming. By the time the Serlses opened the Savannah store six months later, the Wing Zone management had a grasp on the process.

“You study your traffic trends and at busy times it’s a constant cooking process where you cook 30 at a time and rotate them into a hot well,” Friedman said. “You throw some food away, but any drive-thru environment is going to have waste. You make it up in greater sales.”

The Serleses have perfected the process. Jeremy Serls attributes much of the store’s success to its proximity to Savannah State, Armstrong and especially Hunter Army Airfield, but the drive-thru business is “robust.”

Their store’s success has them planning to add multiple locations locally in the next “three to five years.”

“We have a lot of new customers that discover us every day,” Jeremy Serls said. “It’s pretty cool to see them become regulars.”

Savannah-area private sector employers show strength

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The Savannah area is adding jobs by the gobs, all in the private sector.

Non-government employers hired an additional 2,600 workers in the second quarter, offsetting cuts by local and state governments, according to statistics from the Georgia Department of Labor. The second quarter ended June 30th.

The statistics included estimates for June, which will be revised next month. The typical margin of error ranges from 100 to 300 jobs, both plus and minus.

The biggest second quarter gainer was the leisure and hospitality industry, not surprising given Savannah’s seasonal attractiveness as a tourism destination. But other key economic sectors, including manufacturing and professional and business services, also saw upticks.

The returns are reason for “cautious optimism,” according to Georgia Southern University economic researcher Benjamin McKay.

“We’re really at a critical junction, a point where we are picking up momentum but where there are national and international factors that could start weighing on further
gains,” McKay said. “One of our largest trading partners is Europe, and if the economic situation over there worsens, all that wonderful activity at the port could slow down and that would have impacts elsewhere.

“Savannah is going to be OK, but the jobs picture is likely relatively flat for the rest of the year.”

The mid-year job returns remain below 2011’s numbers through the first six months but are well above mid-year 2010 and mid-year 2009. And there are hints 2012’s gains could be more sustainable than last year’s. Growth in 2011 was driven by retail, tourism and education and health services gains that gradually disappeared between June and September.

June 2011 saw a net loss of 100 non-government jobs; the private sector added an estimated 1,300 jobs this June.

“All of the things that have been happening over the last 10 months or so with manufacturing growth are starting to filter through the economy,” said Bill Hubbard, president of the Savannah Area Chamber of Commerce. “We’re now seeing business services benefit because of the multiplier effect.”

Tourism returns in focus

Savannah’s record tourism returns and the opening of new hotels, restaurants and businesses contributed to 1,100 new leisure and hospitality jobs in the quarter. A portion of the 300 additional retail positions can also be attributed to tourism.

Industry insiders will keep close watch on seasonal contraction in the third quarter. The sector cut 1,100 jobs in the third quarter of 2011 and 800 more in the fourth quarter. For calendar year 2011, the leisure and hospitality sector saw a net gain of 200 jobs.

But Savannah’s tourism season is lengthening if bed-tax revenue collections are any indication. Joe Marinelli with Visit Savannah, the local equivalent to a convention and visitors bureau, said he expects more stability in the sector’s labor market this year.

“Savannah no longer experiences the dramatic seasonal tourism peaks and valleys of years past, and employers are keeping staffing levels higher throughout the year,” Marinelli said. “And with more hotels, restaurants, retail stores and tours being added to our product offering, employers do what they need to do to keep better employees versus losing them to the competition.”

The local tourism sector is evolving quickly, Marinelli said, pressuring employers to invest more heavily in their labor force in terms of numbers, training and compensation. Savannah has become more of a “destination of choice” for seasoned travelers with greater expectations.

“If our service levels don’t match our customers’ expectations, they will go elsewhere,” Marinelli said. “Overall, Savannah scores well in this category, but we also must be mindful of the large step between average service and outstanding service.”

Struggling sector recovery ahead

A handful of sectors continue to struggle in terms of job growth, but not enough to cause wide spread alarm.

State and local governments cut 700 jobs in the second quarter but remain ahead of mid-2011 numbers. And the second quarter dips among those employers, as well as those within the education sector, are due in part to the school year ending in June.

The other two lagging sectors, construction and financial services, were particularly hard hit by the recession and are just now eyeing the start of a recovery. Nearly half of the 7,600 jobs lost locally since mid-2008 came in the construction industry. Banks cut an additional 1,200 positions.

However, commercial construction and homebuilder activity is picking up and banks and other financial services providers are stabilizing, promising future job growth in those sectors.

Growth in those sectors and the rest depend upon demand, Georgia Southern’s McKay said. The slow pace of the economic recovery has business leaders and owners focused on the short-term bottom line.

“It’s about what their needs are,” McKay said. “If you have folks working double shifts every day to fill orders, you will look to fill that void. But I don’t think we’ll see a ton of mass hiring the rest of this year.”

The Savannah Chamber’s Hubbard is anticipating a slowing of the growth in the second half of the year too, due in part to election year uncertainty and as small business owners grapple with the ramification of Obamacare.

The pending deployment of the 3rd Infantry Division to Afghanistan could also stem ancillary economic growth, Hubbard said.

“But at the same time, when those soldiers come back, we’ll see an uptick in spending,” Hubbard said. “We seem to be getting back into a more natural cycle now.”

Exchange in brief

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International Paper awards grants to nonprofits

International Paper’s Savannah Mill recently awarded nearly $53,000 in grants to local nonprofit organizations through the International Paper Foundation.

The Foundation, founded in 1952, makes awards where the company has operating businesses. Each grant will fund projects in education, literacy, environment or employee involvement.

The grants included:

• Interdenominational Ministerial Alliance – $1,625;

• American Red Cross – $5,000;

• America’s Second Harvest – $5,000;

• Memorial Day School, Inc. – $5,000;

• Savannah Book Festival – $5,000;

• St. Mary’s Community Center – $3,094.47;

• Royce Learning Center – $4,821.61;

• Deep Center – $5,000;

• Villa Marie Center – $4,000;

• The First Tee of Savannah – $5,000,00;

• Leukemia Lymphoma Society – $3,000;

• EPACT, Inc. – $4,272.50;

• United Ministries of Savannah – $2,000.

“Grants to foster improved education and civic activities exemplify IP’s mission,” said mill manager Walter Chastang. “Each of these grants will provide funding for these organizations to continue making a meaningful impact throughout our community.”

Junior League annual sale scheduled

The 65th annual Junior League of Savannah thrift sale will be held Oct. 5 from 10 a.m. to 2 p.m. and Oct. 6 from 10 a.m. to 3 p.m. at the Savannah Civic Center. Admission is $5 on Friday and $3 on Saturday. Items sold on Saturday are half-price. Parking is free.

Tickets are on sale at the Civic Center Box Office, 912-651-6556 or at jrleaguesav.org. Merchandise includes appliances, children’s clothes and toys, holiday decorations, books, CDs, housewares, linens, exercise equipment, furniture and more.

A limited number of tickets will be sold for the thrift sale preview party and auction on Oct. 4, which begins at 5:30 p.m. Guests get to shop before the sale opens and participate in a silent and live auction.

Those tickets are available at jrleaguesav.org.

Money from the sale will fund community projects.

Emerging leaders sought for training

Step Up Savannah is looking for emerging community leaders for a leadership course starting the week of Sept. 17.

The Neighborhood Leadership Academy, co-sponsored by the city of Savannah, is open to men and women 21 years and older from Savannah or Chatham County. The 12-session evening program will stress effective advocacy for programs, policies and procedures that strengthen under-served communities.

A maximum of 15 men and women will be selected. Deadline to apply is Aug. 10. Interviews will be held after Aug. 20, and a final decision on candidates will be made by Sept. 7.

Participants will attend Monday evening sessions at Savannah State University.

Applications are available at stepupsavannah.org, by calling 912-232-6747 or by emailing styler@stepupsavannah.org. Completed applications may be mailed to Step Up at 428 Bull St., Suite 208; Savannah, GA 31401.

Savannah/Hilton Head International Airport continues search for low-cost airline

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Savannah Airport Commission Executive Director Patrick Graham said he was confident Savannah/Hilton Head International Airport would get JetBlue earlier this year.

Yet as the pace of the economy’s recovery slowed, this didn’t happen. JetBlue instead began focusing on its international service, he said.

Graham said Thursday he doesn’t see the airline coming to Savannah/Hilton Head this year. But he likes the airport’s chances as it continues to woo JetBlue in its search for a fifth airline, preferably a low-cost carrier.

“We continue to push and continue to keep JetBlue well versed in everything that is happening here,” Graham said. “Now, we have to look to 2013.”

On Thursday, an outside consultant for the airport spoke to a crowd of 30 people at the International Trade and Convention Center.

Stephen Van Beek of Leigh Fisher Consultants in Washington outlined the impact of airline industry trends on smaller airports like Savannah/Hilton Head.

The aviation industry at large, he said, is focusing on large airport hubs like Atlanta, Washington and New York.

And this trend, Van Beek said, is bad news for smaller hub airports like Savannah/Hilton Head.

He also addressed the airport’s search for a low-cost carrier like JetBlue or Southwest Airlines.

Over the past decade, Charleston International has taken a greater share of the regional market because of Southwest and its lower fares.

According to Van Beek, the presence of Southwest in Charleston and Jacksonville means attracting JetBlue should be the top priority for Savannah/Hilton Head.

But he stressed the need to balance low-cost providers who offer direct flights to smaller hubs with more expensive ones that may connect through large hubs like Atlanta.

“You got to find that equilibrium because if you have too much of one you chase off the other.”

Attracting both Southwest and JetBlue could potentially drive away service to larger connecting hubs, Van Beek said. For an airport like Savannah, it’s “a difficult balance to strike,” he said.

“You can’t have your cake and eat it, too.”

However, Van Beek said Savannah benefits from a well-managed airport, a strong business climate with the port and plenty of leisure flyers.

Along with Savannah’s tourist industry, these are the “principal attributes which the airport and the community can sell.”

Savannah/Hilton Head currently has four airlines — Delta, United, US Airways and American. But the airport continues to pitch JetBlue, Graham said.

It has offered JetBlue a deal between $3 million and $4 million — covering two years of rent, landing fees, marketing costs and crew rooms.

“We have to keep after them,” Graham said.

“It’s imperative and almost critical that we get someone like JetBlue. It will get to a critical stage that we need somebody like them.”

Ga. Ports Authority wants into suit

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CHARLESTON — The Georgia Ports Authority wants to intervene in a federal lawsuit challenging the $650 million deepening of the Savannah River shipping channel saying its contractual and economic interests are at risk.

The authority also asked a judge to block South Carolina’s Savannah River Maritime Commission from entering the suit, saying that would expand the action and simply bring in extraneous issues.

The authority wants the river shipping channel deepened to handle larger ships that will be routinely calling when the Panama Canal is deepened in 2014. It filed the motions on Wednesday and U.S. District Judge Richard Gergel on Thursday gave the other parties in the case until Aug. 6 to respond.

The lawsuit filed by environmental groups contends the U.S. Army Corps of Engineers needs a South Carolina pollution permit before the deepening work can begin. The suit alleges toxic cadmium from river silt will be dumped in a dredge spoils area on the South Carolina side of the river.

The suit was brought by the Southern Environmental Law Center on behalf of the Savannah Riverkeeper, based in Augusta, as well as the South Carolina Coastal Conservation League and the South Carolina Wildlife Federation.

The motion says the Georgia Ports Authority has the right to enter the lawsuit and if not permitted to do so “its ability to protect its interests could be impaired because the environmental groups and the Maritime Commission, if it is permitted to intervene, seek to alter, delay and/or stop” the river deepening.

In answering the lawsuit itself, attorneys wrote that while there will be naturally occurring cadmium in the dredged material, “no adverse impacts” will occur.

The South Carolina Maritime Commission should be blocked from the case because it “will be burdening the parties with extraneous issues,” the motion said, adding that letting the commission in “would have parties stake out positions and advance arguments concerning the commission’s own authority which may ultimately be determined by the South Carolina Supreme Court.”

If the commission is allowed as a party, it should only be able to address the permit issue before the court, the motion said.

The commission, in seeking to enter the case, wants Gergel to rule that in the deepening project, the Corps of Engineers must obey South Carolina environmental rules and “must comply with South Carolina law, including orders, rulings, decisions, and opinions” of the state’s Supreme Court, Administrative Law Court and the commission.

Environmentalists have also sued in state court, alleging a water quality permit for the deepening approved by the Department of Health and Environmental Control last year is illegal because the commission, not DHEC, has authority over activities on the river.

The state Supreme Court has not yet ruled in that case but Chief Justice Jean Toal said during a hearing that DHEC broke state law when it left the commission out of dredging negotiations and “rubber stamped” an agreement with Georgia officials.

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