PAC’s John Williams

CEO Spotlight:$3.95

NOVEMBER/DECEMBER 2017

page 18

AN INSIDE VIEW INTO GEORGIA’S POLITICS, BUSINESS & NEWS

COLUMNS BY BENITA DODD • BAKER OWENS • CINDY MORLEY AUSTIN RHODES • DANA RICKMAN • LARRY WALKER PAT WILSON • COSBY WOODRUFF. . . AND MORE DEPARTMENTS Publisher’s Message 4 Floating Boats 6

FEATURES By Air, Land or Sea, JAMES Georgia’s Economy Keeps on Moving 9 P.O. BOX 724787 by Baker Owens ATLANTA, GEORGIA 31139 678 • 460 • 5410 2017 Year in Review 12 by Cosby Woodruff PUBLISHED BY INTERNET NEWS AGENCY LLC CEO Spotlight: John A. Williams 18

James’ 2017 Most Influential Event 22

CHAIRMAN MATTHEW TOWERY

CEO & PUBLISHER PHIL KENT [email protected]

ASSOCIATE EDITOR GARY REESE COLUMNS ADVERTISING DIRECTOR PATTI PEACH Augusta Again Embraces [email protected] Cutting Edge Defense Technology Role 20 MARKETING DIRECTOR MELANIE DOBBINS Austin Rhodes [email protected]

CIRCULATION PATRICK HICKEY Smart Politics Translates [email protected] to More, Better Infrastructure 25 INTERN ROSSER SOUTHERLAND Cindy Morley STAFF WRITERS CINDY MORLEY Education and Georgia’s Economic Development 29 Dana Rickman BAKER OWENS COSBY WOODRUFF

CONTRIBUTING WRITERS Atlanta Shouldn’t Miss the Bus on Transit 30 Benita Dodd BENITA DODD AUSTIN RHODES DANA RICKMAN LARRY WALKER Our Bragging Rights Better Than in 1956 33 Larry Walker PAT WILSON

Georgia’s Apartment Industry: VISIT INSIDERADVANTAGE.COM SUBSCRIBE TO OUR DAILY INTERNET NEWS SERVICE Looking to the Future 34 $17.50/MONTH & RECEIVE JAMES FOR FREE CHECK OUT OUR SISTER PUBLICATION: Georgia’s Success Starts SOUTHERNPOLITICALREPORT.COM with Our Talented Workforce 37 Pat Wilson DESIGN & LAYOUT BURTCH HUNTER DESIGN PUBLISHER’S MESSAGE

The Main Business of Georgia is Business

WELCOME TO ANOTHER INSIDE LOOK AT THE GEORGIA that James Oglethorpe discovered and that we continue Education obviously affects economic develop- to enjoy exploring and explaining— the world of Peach ment— that’s why it is an important topic in every State business, politics and culture. Staff writer Cosby James and why we publish an annual July-August edu- Woodruff provides our annual “2017 in Review” but the cation issue featuring Georgia’s top colleges and uni- overall theme of this year-end James is “Georgia’s versities. Within the next decade some 60 percent of Economy Moving Along.” the jobs in our state will require some level of college. Staff writer Baker Owens has an extensive report In this context, we present educator Dana Rickman’s exploring how Georgia is moving along by “air, land sobering analysis of threats to the state’s long-term and sea” with a focus on the important logistics piece economic development. of our economy. Staff writer Cindy Morley tackles the In case you might have missed it, James named as overall transportation issue, with interesting quotes, its 2017 “Georgian of the Year” Georgia Lottery data and insights. President and CEO Debbie Alford. When it comes to It seems the main business of Georgia these days is educational progress, we recognized that she and her business. That’s why we continue our “CEO Spotlight” team manage lottery games to maximize revenues for series profiling Preferred Apartment Communities CEO pre-kindergarten and the popular merit-based HOPE John A. Williams and how he and his team are develop- college scholarships. James/InsiderAdvantage Georgia ing what surely is destined to be one of the nation’s were proud to honor Mrs. Alford— along with three leading REITs (Real Estate Investment Trusts). In this “top legislators of the year”— at our annual Influential vein, and as Georgia’s population continues to grow, we Georgians awards ceremony. Check out the celebration also look at the entire apartment industry through the on pages 22-23. observations of the Atlanta Apartment Association’s Finally, visit our website insideradvantage.com to incoming chairman Tommy Brunson. subscribe to our daily online news service which For a “big picture view,” we commend to readers includes articles and opinion pieces on politics, business state Economic Development Commissioner Pat Wilson’s and policy issues. The subscription is $17.50 a month— column on Georgia’s talented and skilled workforce. and it includes a complimentary James subscription! While James often focuses on the metro Atlanta area in coverage, we intend throughout 2018 to report on our other major cities when it comes to measuring overall economic progress (or lack thereof in some areas). In this context, we feature in this issue a report PHIL KENT CEO & PUBLISHER on Augusta (whose city government was consolidated into Richmond County in the mid-1990s) authored by long-time talk radio journalist Austin Rhodes. FLOATING BOATS

WHO’S RISING AND SINKING IN GEORGIA BUSINESS AND POLITICS

The Georgia Lottery Corp. had record profits for edu- Technologies (CMaT) will work to develop therapeu- cation during the first quarter of fiscal year 2018— tic cell products, which could eventually help lead to $290.45 million, surpassing last year’s record first quar- treatments for illnesses that are currently incurable. A ter by $16.85 million. “The $19 billion generated by the lot of smart stuff from our friends in Midtown Atlanta. Georgia Lottery has provided the HOPE scholarship to And while some of it might go over our heads, GT more than 1.8 million college students and offered receiving the attention and funding to make it happen access to lottery-funded Pre-K programs for more than has its ship RISING… 1.4 million 4-year-olds. The ongoing success of the Georgia Lottery is a major component of ensuring each Athens Mayor Nancy Denson, a Democrat, was voted child in Georgia attains a quality education,” Gov. out of her local party committee after 30 years of mem- Nathan Deal says. Indeed, our state’s well-run lottery bership. This came after hosting a fundraiser for ship keeps RISING… Republican Houston Gaines, running for a state House seat in the Athens area and who was Denson’s cam- The final chapter of the story involving a Cherokee paign manager in 2014. Denson also donated $1,000 to County teacher who kicked out of her classroom stu- Gaines’ campaign. A party committee letter said her dents wearing “Make America Great Again” shirts has membership was revoked due to her support of “Donald been written. Lyn Orletsky, who told her River Ridge Trump’s party.” Such an extreme action by Athens Dems High School students that wearing the logo was akin to against one of their own has their ship SINKING… wearing a swastika, resigned after heated debate and even a protest outside the school. The saga is over, but Josh Findlay, the former chief legal counsel for the school board stalling over removing Orletsky has its Congressman Jody Hice, has been named the Georgia ship SINKING… director for the Republican National Committee. The co-founder of War Room Strategies political con- Businesses that make up the Cumberland CID along sulting firm and UGA grad will help lead and direct the with local, state, and federal partners are setting the bar national organization’s political goals here in Georgia, even higher for major infrastructure improvements. An long a bastion for Republicans that has resisted con- important project that would normally have taken a stant murmurings that it is “turning blue.” A new high- decade to complete should happen in half the time. In profile gig for campaign strategist Findlay in the RNC only three short years, these partners assembled 74 per- has his ship RISING… cent of the $45 million necessary to add a critical access ramp to the Interstate-75 managed lanes that open next Contractors E.R. Mitchell and Charles Richards have year. An application to fill the remaining $12 million gap received jail time for paying off unnamed Atlanta city is pending with the Atlanta Regional Commission. If officials in exchange for contracts, with Mitchell getting successfully awarded, these federal funds allow the five years and being ordered to pay $1.1 million in resti- Akers Mill ramp to go to construction in 2019— provid- tution. Furthermore, the former procurement chief under ing one of the state’s largest commercial markets direct Mayor Kasim Reed also admitted to taking bribes access to this RISING transportation facility. from a vendor and will go to jail. Justice is beginning to be served as this federal vendor/bribery probe contin- Atlanta Braves’ general manager John Coppolella was ues, but with so much left to uncover the Atlanta City recently forced to resign after it was found Major League Hall ship is Drifting… Baseball was investigating him for tampering with inter- national recruit prospects. The team may have comfy new Georgia’s Court of Appeals reversed a Fulton County digs in Cobb County, but with a poor on-field product and Superior Court judge’s decision that Deferred Action a now-murky future the organization’s ship is Drifting… Childhood Arrivals (DACA) illegal immigrants be granted in-state tuition within the state’s University A Georgia Tech-led research group in September System. The appeals court ruled that the DACA recipi- received a $20 million grant to fund a new biomedical ents who sued for in-state tuition “have failed to carry engineering research center. The NSF Engineering their burden of showing that the DACA policy had the Research Center for Cell Manufacturing force and effect of a federal law.” The court also slapped Fulton Judge Gail Tusan by saying the Board of Regents’ college tuition rules give it “broad discretion” and those rules mirror a state law that says non-citizens The Henry County schools expelled a Locust Grove cannot pay the in-state rate unless they are “legally in High School student under a “zero-tolerance” policy this state.” Clearly, as Atlanta’s Immigration Customs and regarding fights between students. However, the stu- Enforcement chief has said, illegal immigrants should dent contested the decision in court and said she was prepare to return to their home countries since, under the simply defending herself against an attacker. The Trump presidency, their prospects are SINKING… Georgia Supreme Court sided with the student, say- ing the district should have applied the state statute Site Selection Magazine is the official publication of that gives a person the right to argue self-defense as the Industrial Asset Management Council and delivers justification. It is entirely appropriate to apply a law, expansion planning information and data to 48,000 exec- intended for adults, to schoolchildren. Since this ruling utives. Over 50 percent of its subscribers are high-level should especially hit school bullies hard who assault stu- managers and executives. Each year it issues rankings dents who can’t or don’t fight back, the boats of some for Top Business Climate and Georgia has been No. 1 innocent students should be RISING… four years in a row. This year, Georgia won for the fifth time! Nathan Deal is now the only governor to lead a A Kennesaw State University/Georgia elections state to five consecutive wins. For the governor, his eco- system drama raised the eyebrows of the nation when t’s no secret that logistics is a big piece of previous size, carry something between 10,000 and nomic team and all Georgians RISING… it was revealed that a computer server— vital to the Georgia’s economy. Consider that the Georgia 14,500 TEUs. An average freight train carries a few voting-records lawsuit against Secretary of State I Ports Authority (GPA) directly employs 1,100 hundred TEUs and those trucks that are whizzing past Worth County Sheriff Jeff Hobby and two Brian Kemp and other elections officials— was deputies have been indicted by a grand jury over erased just after the suit was filed. While not technical- logistics professionals. According to the GPA, its opera- you on an interstate carry two. The ships carry cargo charges that he had deputies launch an illegal, intru- ly illegal, the wipe raises questions as to what was on tions— combined with private sector and port-related the first several thousand miles from manufacturers sive body search at a local high school involving hun- the server, as prosecutors wanted to examine it for evi- operations— account for more than 369,000 jobs overseas, trains the next thousand or two and then dreds of students. The district attorney says there was dence of possible hacking. The FBI is investigating statewide, $84.1 billion dollars in revenue and income trucks the last 500 much of the time (we’ll come back no “probable cause,” the sheriff claims innocence who ordered the wipe and Kemp says his office had no surpassing $20 billion. The state is home to more than to that part later). while some students charge they were sexually violat- involvement, blaming it on the “incredible ineptitude” 800 million square feet of warehouse distribution space— Lynch also outlined plans for a number of new proj- ed by the officers. This messy and bizarre case of the KSU center. All ships involved are Drifting… roughly 18,000 acres of warehouse space. ects to accommodate continuing growth in the logistics appears to have the sheriff’s ship SINKING… The GPA’s Executive Director Griff Lynch gave the industry. A $128 million mega-rail project will add more annual “State of the Port” address in October and track on terminal to more efficiently transfer those TEUs announced record cargo volumes, continuing infrastruc- from ships to train. Construction is slated to begin in ture development and an added 1 million square feet of 2018 and expected to complete by 2020. The GPA is also additional distribution center space in Savannah. “We’re growing Savannah’s crane fleet, building the expanding on all fronts,” Lynch said. “We’re adding mar- Appalachian Regional Port in Chatsworth, adding capaci- ket share through organic growth and the addition of ty for motor carriers, and, of course, an ongoing harbor new accounts, and we’re building the new infrastruc- expansion that will allow ships calling on Savannah to ture necessary to continue processing this cargo with take on heavier loads and arrive any time, rather than world-class efficiency.” waiting on high tide. Overall container trade grew by 8.3% in the Fiscal Year 2017 at Georgia’s deepwater ports. Total tonnage Truckin’ along, was up by 7.3% in FY 2018 as the Port of Savannah moved more than 1 million twenty-foot equivalent con- but a driver shortage tainer units (TEUs). The TEU is an inexact equiva- Since its very beginning, Atlanta has been a hub for lent of measurement to logistics. In 1837, Col. Stephen Harriman Long was the ubiquitous cargo con- doing surveys to link up the Western and Atlantic rail tainer that can be easily lines. Studying several possibilities, he drove a stake in transferred from ship to the ground in what is now downtown Atlanta. It soon train to truck and is a became known as Terminus and took off as a railway phrase commonly used in hub. There is still plenty of rail traffic around the metro the logistics industry. Atlanta area but, famously, the main rail line that Ships in the New ringed the city is now slated to be a park called the Panamax size category, Beltline. The most prominent ring around the city these meaning they can fit days doesn’t have trains on it but certainly does have through the newly expanded Panama Canal continued on page 10 but are too big for the NOVEMBER/DECEMBER 2017 9 GRIFF LYNCH trucks on it. A lot of them. All those ships back in to 100 different counties at 300 different locations. including several members of the executive leadership reach a goal of 25 percent. Dalton should also see Savannah unload their wares on to the trains and then, Averitt operates out of Savannah adjacent to the GPA. team, are veterans or are currently serving in the military. increased business because of the new development. since we don’t all seem to be lining up at the local There are plans to expand its Savannah operation but its Averitt recruiting manager Ken Chrisman noted the freight depot, onto those trucks. main facility is in Jacksonville. They have announced advantages of hiring veterans. “Hiring military veterans georgia’s In fact, many of those trucks out on I-285 are from expansion plans there as well. The new Jacksonville makes perfect sense for several reasons. First, they know Averitt Express. Averitt was formed in 1971 and is still facility will be a 60,400 square-foot cross-dock with 49 what it means to work together and value others. They’re savannah port advantage based in Cookeville, Tennessee. It is a private company tractor spaces and 162 trailer spaces. Many of those trail- also dedicated to the work they do and they are commit- with a unique charter. Like much of the economy, there ers leaving will be headed up I-95 or up I-75 into Georgia ted to outstanding service, which makes them a great fit Of course, the biggest development is that has been consolidation within the trucking industry to facilities in Augusta, Tifton, Macon, Lawrenceville or for our unique culture. Our pledge to hire 1,200 veterans Savannah Harbor Expansion Project (SHEP), is now and Averitt’s owners decided they had fielded enough Atlanta off Fulton Industrial Boulevard. by 2020 is a win-win for everyone.” expected be completed in 2022. Delays pushed back the calls and dealt with enough worry from employees won- One of the issues Averitt is dealing with, along with completion behind similar projects in Jacksonville and dering if they would still have their jobs. Owner Gary the rest of the logistics industry, is a driver shortage. driverless trucks? Charleston but Savannah’s expansion and dredging Sasser signed a charter that doesn’t allow the company People may not be aware of the benefits and what project remains critical for Georgia and the whole coun- to be sold for 400 years. So much for those interested exactly it means to be a truck driver and may have the try. Despite cost increases, the Army Corps of Engineers One topic on the mind of many transportation watch- buyer calls. wrong opinion about it. Because of that, the shortage is has also adjusted some estimates and now predicts the ers is the driverless car or, as is relevant to trucking com- In 1971, the company operated 3 trucks and 5 trail- made even worse by a quirk of economics. When the cost-benefit ratio to be even higher than before, from panies, the driverless truck. And that driver shortage? It ers. Today, it operates approximately 4,700 trucks and economy is going good, driver demand is high but sup- 5:5:1 to 7:3:1. GPA Executive Director Lynch said its is certainly pushing more research and attention to going 14,100 trailers. Averitt has 143 locations and serves thou- ply for drivers is low. When the economy is struggling, “one of the largest returns on investment on a naviga- driverless. Despite some of the technological advances sands of points throughout the South, Canada, Mexico people are more willing to become drivers but there is tion project for taxpayers in the country.” that are coming quickly, Tony Allison, the Regional Vice and the Caribbean. It also provides international services not as much demand. The Savannah port has another advantage. With President for Averitt, says there are a few things that will Averitt is taking steps to metro Atlanta one of the largest population centers in slow down the march of driverless. Companies are going both change the perception the Southeast, Savannah’s location 100 miles closer to to have to wait for state legislatures or the federal govern- of drivers, as well as recruit it than any other port means companies can ship prod- ment to deal with some of the legality around driverless. new ones. It has a Referral ucts to the six million-and-still-growing population easi- Much of this involves insurance or liability and it is likely Rewards Cash which pays er through Savannah than through other ports. Labor to take some time to sort out. The country is probably still associates up to $1,500 for disputes in California in 2015, and some still today, far away from the driverless truck reality. However, com- referrals that lead to hires of mean some port traffic that might have used to go to panies may be able to start using “shadow trucks” within qualified positions. Last year, the Los Angeles and Long Beach ports, and then to the the next decade, a driverless truck trailing behind a lead they also had the Referral Midwest by rail, now arrives at Jacksonville or truck with a physical driver. Rewards Cash In 2016 pro- Savannah. The uncertainty of the labor disputes and its There is a chance, though, that in general there gram that included three economic impact, the Los Angeles Times says, “snarled could be fewer trucks on metro Atlanta interstates. The rounds of vacation packages West Coast shipping” and closed the ports at times, aforementioned Appalachian Regional Port in and cash drawings. It culmi- meaning that much of that business will not be return- Chatsworth, just outside Dalton on I-75, is expected to nated in a year-end $10,000 ing for some time. open next year and could potentially reduce the traffic drawing for two associates. With the Panama Canal expansion happening to around Atlanta by 50,000 trucks. The 10-year plan is to Averitt announced last come at the same time, Georgia stands to reap great double that capacity. All that freight would be moved to year its commitment to hiring benefits. 1,200 veterans for its driving trains that would carry it on a direct, 388-mile route to force by 2020. Hundreds of Chatsworth, where it would then be dispatched by truck. Baker Owens is a staff writer for James and InsiderAdvantage Georgia. current Averitt associates, Currently, the GPA transports about 20 percent of its freight via rail but the Chatsworth inland port will help 10 JAMES NOVEMBER/DECEMBER 2017 NOVEMBER/DECEMBER 2017 11 how restaurants would benefit. This bill would allow for local municipalities to opt- in to allow their restaurants to start serving alcohol at 10:30 a.m. on Sundays. Currently, state-owned facilities such as the Georgia World Congress Center and Lake Lanier Islands Resort are allowed to serve alcohol starting at 10:30 a.m. on Sundays. Restaurants must wait until 12:30 p.m.

Graduates of Georgia technical colleges and universities now have a place to compare earnings for different careers across the state. The Governor’s Office of Student Achievement devel- oped a “dashboard and research report” which pro- vides tools that are designed to help students seek- ing higher education make important decisions for Georgia Hospital Network their future. The dashboard (learnearn.gosa.ga.gov) is an interactive site which allows users to explore Requires Stabilization earnings patterns of graduates for the first and fifth by Jerry Fulks years after graduation. For many students, this will Today, Georgia’s healthcare system faces a “gold- help their boats RISE… Let’s take a brief look down memory lane to remember en hour” in which legislative action is required to ensure the long-term survival of the local hospitals and reflect on noteworthy Georgia events our magazine covered this year. that protect our families, our communities, and pro- vide high-quality healthcare and well-paying jobs.

notch entertainment already on the schedule. Set to 2017 Legislature open in 2017, Mercedes-Benz Stadium and SunTrust Park have Atlanta’s ship RISING… Also Shapes 2018 Elections by Josh Belinfante

This is the season in which the legislators now find themselves. ... Will legislators fund Medicaid?... Do legislators believe that the HOPE Scholarship is in danger and, if so, is casino gaming the solution? And what are the governor and legislators going to do to january improve education?... Will transportation, and particu- march–april larly mass transit, receive significant attention?... february FLOATING BOATS Atlanta’s Pinewood Studios has become a big FLOATING BOATS Restaurants Looking Ahead name in film-making in recent years, but it never has The new stadiums for both the Atlanta Braves and hosted anything quite this big. An unnamed movie Atlanta Falcons have come under criticism ever since to a Productive Year (Marvel’s Avengers: Infinity Wars) that has been film- their announcements, but as they near completion it by Karen Bremer ing at the studio is the world’s most expensive pro- has become difficult to find anything but praise. duction EVER, with a budget reaching a staggering For the past two sessions, the Georgia Georgia will have world class facilities for two sports $1 billion. That’s well over twice as much as the next Restaurant Association has worked tirelessly to cre- teams on the rise, with promises of additional top most expensive film, James Cameron’s Avatar in ate awareness about the Georgia “Brunch Bill” and continued Development On the Rise in Cobb County by Cindy Morley

Five Class A office buildings are being built in District 2. Nearly 5,000 residential units are being built around the stadium. More than 3,000 full-time and part-time jobs are being created around the stadi- um complex and The Battery Atlanta. may–june 2009. Pinewood Atlanta co-owner, (and Chick-fil-A may–june CEO) Dan Cathy boasted the news at a March event, and his ship along with Pinewood’s and the state they FLOATING BOATS Donald Trump, it was surely one of the most high-pro- both call home is RISING… In April a fire under the I-85 overpass near file NRA events in recent memory. Scoring such a Piedmont Road caused a section of the roadway to major event has the GWCC and all the hotels and collapse, cutting off one of Atlanta’s major arteries businesses around it RISING… and dramatically increasing commute times for Georgians rejoiced recently thousands of Georgians. The city rallied though, when a special master in a case using MARTA, carpools, and telecommutes to help that will go to the U.S. ease the traffic burden as workers toil feverishly to Manuel’s is Georgia’s Supreme Court recommend- get the bridge fixed. The incident itself is regret- ed that no water consump- table, but the city and her citizens’ response has Top Political Hangout tion cap be put on their ship. RISING… by Cindy Morley Atlanta’s water use from Lake Lanier and the Since 1956 Manuel’s has been a gathering place river basin downstream, for many Democrats when they ran Atlanta, DeKalb as Florida had asked for. County and the state. Much of that is because of The nation’s high court 6th Congressional Race: the force of personality of could still make a different Manuel Maloof, the ruling, but this recommendation Litmus for Georgia’s gruff barkeep-turned- (a cap would devastate Georgia’s economy) so far politician who has Georgia’s ship RISING… Political Future owned it much by Gary Reese of that time.

With the resignation of incumbent continued Georgian of the Year: Congressman Tom Price to take the Health and Debbie Alford Human Services Cabinet position in the Trump JUDSON administration, the 6th’s seat in the HILL “The Georgia Lottery’s real success is meas- House of Representatives opened to ured by its impact on the state’s education many who have ambitions to move system. Since the lottery began in to Washington. The unexpect- 1993, the GLC has transferred more ed opening in Congress than $18.1 billion in lottery pro- has attracted both KAREN The National Rifle Association, one of the coun- ceeds to the state treasury’s old hands and HANDEL try’s largest and most powerful non-profit organiza- Lottery for Education Account. new faces to the tions, held its annual convention in Atlanta for the Georgia’s lottery proceeds non-partisan first time in April. The event brought in over 80,000 supplement the April election to visitors and nearly $60 million in direct economic state’s education replace Price. impact. With speakers including Senators Ted Cruz budget.” DAN and David Perdue and an appearance from President MOODY from a combination of an extension of the city’s rental 6th Congressional Runoff car tax, the sale of Turner Field and money from the Nathan Deal A Governor Who Means Business Going Down to the Wire Hawks themselves. This boat is RISING… by Randy Evans by Matt Towery College Football It’s really pretty amazing that By the time the warning This year’s honoree as Georgia More Than Just an Athens Thing seven years of Nathan Deal’s time as bells went off in GOP circles, Teacher of the Year is John R. Tibbets, by Cosby Woodruff governor are almost in the books. the Democrats had raised an economics teacher from Worth And how the world changes. We Nothing symbolizes Atlanta’s place in the college an incredible amount of County High School in Sylvester. The have a new president, a new junior football world quite like the almost-complete money, created an impressive Georgia Teacher of the Year Award is a U.S. Senator and many fresh Mercedes-Benz Stadium. This season it will host four get-out-the-vote political great honor— but it isn’t merely a tro- Georgia faces in Congress since he major college football games, and no fewer than three machine and dominated phy to display. Tibbets will work with took office. But as much as things figure to have national championship implications. the airwaves with pro-Ossoff the Georgia Department of Education change, history in many ways political advertisements. The in the next year as an advocate, ambassador and repeats itself. There are familiar pat- effort was so effective that, consultant for public education RISING… terns and personages from the past had the election occurred just one week earlier, the that seem to repeat in the form of Democrats would have likely had one impressive vic- new names and issues. tory during the first 100 days of the Trump presiden- cy. But it didn’t. Georgia’s Top Universities

1. GEORGIA TECH How One Lawmaker Good Legislation 2. EMORY UNIVERSITY Paved the Path for Mercedes-Benz Stadium 3. UNIVERSITY OF GEORGIA by Patrick Hickey to Boost Rural Development 4. MERCER UNIVERSITY The key for Mark Burkhalter was to keep the leg- by Gary Wisenbaker 5. GEORGIA STATE UNIVERSITY september islative process as transparent as possible. He prom- september ised no shady backroom deals, no late additions to 6. GEORGIA COLLEGE The idea is to make $60 million in tax credits october unrelated bills, no tacking on funding at the last available to companies willing to infuse $100 million 7. AUGUSTA UNIVERSITY october minute without debate. “I think the Falcons stadium of capital in designated rural counties for job creation 8. KENNESAW STATE UNIVERSITY is the most open process that you can imagine,” he in industries including, but not limited to, agribusi- FLOATING BOATS 9. GEORGIA SOUTHERN UNIVERSITY told James for this exclusive interview. “My bill was ness and manufacturing. September 1st marked the first day that Georgia open to debate— all members of the House and 10. UNIVERSITY OF NORTH GEORGIA breweries could directly sell their product to cus- Senate got to look at it and debate it.” tomers, bypassing the “tour and sample” practice that has hampered them for years. Passage of SB 85 provides an economic and logistical boon to the bur- Augusta is Becoming a geoning craft beer industry, whose lobbyists worked CEO Spotlight “Cybersecurity” Capital hard for more lax regulations. A law that gets rid of Russell Stokes questionable red tape for consumers has Peach by Former U.S. Sen. Saxby Chambliss “In GE we talk about the concept of an emergent State breweries … RISING era, where you know things won’t be the same as Augusta is the heartbeat of the they were in the past, but you are unsure of what the golfing world for one week every future looks like. While the future comes with great April. Now, the CSRA is becom- uncertainty, I personally find it invigorating. It is dur- As part of the U.S. Mint’s national park series of ing the epicenter of cybersecu- ing these times of uncertainty that special quarters, Georgia’s Cumberland Island will be july–augustjuly–august rity for both the U.S. military we must work to increase optional- featured starting in August of 2018. The coin will fea- and Georgia. The community ity, while remaining agile to move FLOATING BOATS ture a snowy egret perched on a branch in front of a is working to meet the critical and pivot quickly.” salt marsh, a common site on the historic and largely It is not a new stadium, but the home of the needs of our nation’s workforce — and continues to be a source of undeveloped island. For Georgia and the crown-jewel Atlanta Hawks is getting a major facelift. The Atlanta Russell Stokes pride for our great state. of its extensive string of barrier islands, this honor City Council voted for a $192.5 million renovation of CEO and President of GE Energy downtown’s Philips Arena, with the money coming and recognition has the ship RISING… CEO SPOTLIGHT CEO SPOTLIGHT

estate related investments such as grocery-anchored shopping centers, senior mortgage loans, subordinate loans or mezzanine debt secured by interests in grocery- anchored shopping centers, membership or partnership JOHN A. interests in such shopping centers and other shopping center related assets. WILLIAMS JAMES: July 2015 marked a milestone. You and your team celebrated PAC becoming a member of the Big Board on the New York Stock Exchange by ringing the market bell. Since then, what other significant initia- THE REAL ESTATE INVESTMENT TRUST (REIT) INDUSTRY IS tives have improved your company? REQUIRED BY LAW TO DISTRIBUTE 90 PERCENT OF A COM- JW: We’re excited about investing a small portion of PANY’S ANNUAL TAXABLE INCOME IN THE FORM OF DIVI- assets in non-multifamily communities such as grocery- DENDS TO SHAREHOLDERS, A UNIQUE FEATURE THAT anchored shopping centers. We established New CONTINUES TO MAKE THE INDUSTRY GROW ON A SOLID Market Properties to acquire and operate grocery- Preferred Apartment Communities’ latest acquisition— Reserve anchored shopping centers in submarkets within the FOOTING. PREFERRED APARTMENT COMMUNITIES (STOCK at Summit Crossing. A 172-Unit Multifamily Community in top 100 Metropolitan Statistical areas generally located Metro Atlanta, Georgia SYMBOL: APTS), CO-FOUNDED BY JOHN A. WILLIAMS AND in the South. We target market-dominant grocery LENNY SILVERSTEIN, HAS AMASSED $2.9 BILLION IN anchors that maintain a #1 or #2 market share and have we near the end of 2017 we have 69 owned properties ASSETS DURING JUST SIX YEARS OF EXISTENCE. SINCE IT high and increasing sales in that particular submarket. and 24 real estate loan investments. Check out our prop- At the close of our second 2017 quarter we had 34 gro- IS POSITIONED TO BE ONE OF THE NATION’S LEADING erties on our website www.pacapts.com In Georgia cery-anchored centers in seven states totaling 3.6 mil- REITS, JAMES IS PLEASED TO INTERVIEW LEGENDARY we have excellent properties including those in metro lion square feet. Atlanta like Stadium Village, Overton Rise, Aldridge at ATLANTA DEVELOPER WILLIAMS. ices for our core business, including investment man- Town Village, Encore, Summit Crossing and others. agement, acquisition, asset management, disposition JAMES: You mentioned your company portfolio expan- and property level management. Since we opened our sion into student housing. What Georgia colleges are JAMES: Why is PAC a great place to work and doors, our guiding philosophy is to provide residents and involved and what are the prospects for continued describe the culture of the company. JAMES: You are known in Atlanta business circles as tenants with an exceptional experience by offering qual- expansion? “the comeback kid” since you left a great career at Post ity apartment homes and retail centers, superior resident JW: We pride ourselves in hiring qualified people, we Properties and co-founded Preferred Apartment and tenant services and total customer satisfaction. JW: Yes, we are actively pursuing off-campus housing for train them well, and go the extra mile to recognize Communities with Lenny Silverstein. What made you college and university students. In fact, we recently closed them for their accomplishments and contributions to take this leap of faith? JAMES: What is this innovative business structure? on an investment to bring a student housing complex to our company. At our last December annual awards ban- Kennesaw State University. Although this type housing is, quet, for example, there was a lot of company pride and JOHN WILLIAMS: When Lenny and I founded the JW: As part of our business strategy, we may enter into at its core, multifamily, we recognize that the needs of enthusiasm on display. Attendees came from all over company we wanted to do something very different in forward purchase contracts or purchase options for to- students vary from our core multifamily residents. The the country— a few had never even flown on an air- the industry. We wanted to go with another strategy, to be-built multifamily communities and we may make style of management varies as well. Nevertheless, all of plane! We honor associates for superior performance create a new model to buy and manage Quality Class A real estate related loans, provide deposit arrangements, our student residents expect the same high-quality physi- achieved on a consistent basis. And we honor a select apartments in attractive markets. or provide performance assurances, as may be appro- cal environment and property management skills, cus- number of associates with membership into our Eagle Launching an initial public offering five years ago dur- priate, in connection with construction of multifamily tomer service, maintenance and landscaping. So keep an Club, which recognizes truly outstanding contributions. ing a recession was aggressive, but remember the times. communities and other properties. As a secondary eye on us. We are seeking to originate additional real We also have an internal leadership training program Single-family home ownership experienced a massive strategy, we also may acquire or originate senior mort- estate investment loans to developers of student housing called “Soaring to Leadership,” designed for management- decline, job growth had slowed and an unprecedented gage loans, subordinate loans or mezzanine debt communities, with each investment loan including an level associates who have already demonstrated proven number of young adults—“millennials”— were graduating secured by interests in multifamily properties. We have option to acquire the newly-developed community at leadership skills. “Soaring to Leadership” enables these lead- from colleges and universities. It was the “perfect storm” also entered the student housing market. below market rates after completion. ers to hone their skills to better develop personal and profes- for creating sustained multifamily growth. sional goals— all to the betterment of our growing company. The economy improved and now we have 93 total JAMES: Can you further describe your unique pur- JAMES: This discussion ties into overall current condi- Our focus is on products, associates and customers. investments located in 28 cities in 11 states, and the chasing and financing approaches, such as the mezza- tions in the real estate and multifamily landscape. How Ultimately, our goal is to be the preeminent real estate PAC family of companies provides the full gamut of serv- nine loan program? is PAC specifically impacting the industry in Georgia company in the nation. and nationally? JW: Well, without getting too much into the weeds, we • • • don’t invest more than 20% of our assets in other real JW: Let me answer by telling you about our growth. As again articulate publicly but which was also playing built by the state University System and administered prominently in the DOD’s decision to keep Fort Gordon by Augusta University. intact: The location of one of the country’s largest and There is no doubt that the energy and momentum of most important National Security Agency facilities within the development of the military and intelligence cyber mis- the secure confines of the fort’s gates. sions here inspired the movement toward establishing the Heavily staffed by a specially-trained civilian work- education and training needed to staff such operations. force that cannot be ordered to “relocate” like military But the need for such specialized training goes far personnel, it is imperative that NSA operations remain beyond staffing local positions, and we are expecting steady and constant in a given community. Simply put, even more growth of private sector support as the hile it is doubtful that locations hideously expensive military infrastructure, and it the brain trust and security-sensitive workforce requires demand for high tech workers grows around the country within the city of Augusta will ever appeared there were no sacred cows to be spared stability and long-term location within a desirable area of and globe. Given Augusta’s previously established low be featured in a James Bond or Jack Ryan in the process. the country. They have all that in spades with the NSA cost of living, and high quality-of-life “intangibles,” the movie, the work being done here most defi- Then-Georgia 10th District Congressman Charlie facility within Fort Gordon, and it was emphasized when sky is the limit for what this could mean for the area in nitely has been an integral part of some Norwood sounded the alarm and called for the organiza- $ 230 million in capital improvements and expansion was terms of growth and economic development. rather intense plot lines in many spy and mili- tion of a local group to lobby and champion the cause of made to that operation in 2004. The wave of interest and the potential for even more tary thrillers. With recent developments, local residents keeping Fort Gordon, home of much of the Army Signal As expected, Fort Gordon was in fact spared, its mis- technology development in related industries has landed can expect that trend to continue for the next few Corps’ training and leadership, open and intact. As the sions and personnel have been expanded, as have opera- Augusta on a number of high profile “Cities to Watch” decades— but with a decidedly different spin. best and brightest business, civic, and political minds tions at the local NSA facility. lists, and has seen the city’s prospects detailed in the Just over the Georgia/South Carolina state line, east gathered on the mission, they assembled what became A win-win of epic proportions for the Augusta metro- pages of Forbes and Fortune magazines. of the city limits but very much within the footprint of the known as the template for the “perfect community mili- politan area, it was a decision that brought thousands of As we saw in the top secret Savannah River Site mis- metro area, stands the sole fuel source for America’s tary support team”— the CSRA Alliance. well-paying jobs into the community, both from the pub- sions of decades past, the community and the region nuclear weapons arsenal— the Savannah River Site. What the late congressman was keeping to himself at lic and private sectors. appears committed and prepared to rise to the task, as Since its construction in the early 1950s, the 310-square- the time was some VERY inside knowledge: While many That brings us to what we know is going on in 2017 Augusta area leaders embrace the future of cyber tech- mile facility has been home to untold tens of thousands of of America’s storied and time-honored military installa- with the establishment and facility construction of the nologies and all the treasure that can come with it! career employees, credited with a victory in our nation’s tions and air bases were destined for extinction, Fort Army Cyber Center of Excellence at Fort Gordon. And Cold War against the former USSR and the ongoing supe- Gordon stood a very good chance of not only surviving there’s also the accompanying Georgia Cyber Austin Rhodes is a veteran journalist and 25-year radio talk show riority of our nuclear weapons inventory in perpetuity. the BRAC Commission axe without loss but, in fact, Innovation and Training Center, a $60 million center host at WGAC in Augusta. It is a mission that has been almost universally becoming the beneficiary of the closings of other facili- embraced by the citizens of the Central Savannah River ties— and growing as a result of consolidation of mis- Area (CSRA). It continues with an increased focus on the sions and transferred personnel. cleanup and storage of the waste created by the process, Not only was Augusta a community that always and new missions for the staff and infrastructure. enthusiastically embraced its role within the Defense It is perhaps one of the most secure facilities of its Department missions at both Fort Gordon and SRS, as the type in the world and, without a doubt, a lot of the work CSRA Alliance was able to demonstrate when compared that has gone on there has been righteously kept “top to other DOD locations, the cost of living and quality of secret” and surrounded in mystery. life for personnel here was almost unbeatable. No doubt the support our community has always Then came the “X factor” that Norwood couldn’t shown to the mission and the people committed to get- ting it accomplished played a role in the Pentagon’s selection of Augusta’s own Fort Gordon as permanent home of the U.S. Army Cyber Command. But as natural a selection as it might have been, it was not one that came with- out concern. With the dawn of the 21st century approaching, Augustans were warned that our beloved 60-year-old military base was on the list for consideration for possi- ble closure and realignment. A congres- sional base realignment and closing com- mission was tasked with downsizing and economizing our nation’s sprawling and JAMES’MOST2 017 INFLUENTIAL

Attorney Alex Booth of the sponsoring Hall Proud Board of Regents member Dean Alford Matt Towery (on the left) with Hall Booth Smith Booth and Smith firm welcoming attendees. with his award-winning wife Debbie and her attorney Scott Henwood, former Georgia GOP James magazine cover. state chairman Chuck Clay and Hall Booth Smith partner Rush Smith. Special thanks to the hall booth smith firm for sponsoring our reception

James State Rep. Calvin Smyre, D-Columbus, listening Phil Kent compares notes with former state Rep. From left to right: Magazine/InsiderAdvantage founder Attendees ranging from various public officials and lobbyists to accolades about his longtime public Melvin Everson, director of the Governor's Matt Towery, state Rep. Earl Ehrhart, state Sen. John F. Kennedy, to prominent lawyers and business people attended the service and lawmaker award. Office of Workforce Development. James Magazine/InsiderAdvantage CEO and Publisher Phil Kent, Influential Georgians event at Atlanta’s Commerce Club to Georgia Lottery Corp. CEO Debbie Alford, state Rep. Calvin network and honor the award recipients. Smyre and Hall Booth Smith partner Alex Booth. Mrs. Alford was honored with the “Georgian of the Year” award and the three legislators were saluted as “2017 Lawmakers of the Year.”

tlanta’s Commerce Club was the venue on husband is Dean Alford, successful businessman, former the evening of October 5th for the annual state lawmaker and a member of the University System James Magazine/InsiderAdvantage “2017 of Georgia Board of Regents Influential Georgians” reception sponsored Also honored with awards are three “2017 by the Atlanta law firm Hall Booth and Smith. Over 60 Lawmakers of the Year”: state House of Representatives State Rep. Dewey McClain, D-Lawrenceville, Atlanta businesswoman and 2016 Donald Trump Lexicon Strategies partner Billy Linville networking holds forth on the vital issues of the day. Georgia campaign co-chairman Rayna with Dolle Towery (middle) and Ginny Ehrhart. Aattendees— ranging from various state and local elect- members Earl Ehrhart, R-Powder Springs and Calvin Casey with Matt Towery. ed officials to prominent business, judicial and political Smyre, D-Columbus and state Sen. John F. Kennedy, R- leaders— were welcomed by James Magazine/Insider Macon. Presenting those awards was James Magazine/ Advantage CEO and Publisher Phil Kent and Hall Insider Advantage founder and chairman Matt Towery, Booth Smith Managing Partner Alex Booth. an attorney, former Georgia state lawmaker, one-time Kent presented the “2017 Influential Georgians television pundit and author. Award” to Georgia Lottery Corp. CEO and President Attendees included influential businesspeople, sev- Debbie Alford, who assumed the position in 2012 and eral judges and lawyers, Republican and Democrat who presides over one of the most successful lotteries in activists, various high-powered lobbyists of government the nation. In 2016 alone players won more than $2.7 affairs firms, prominent educators, some candidates billion in prizes, $1.1 billion was raised for Georgia’s running for public office and a bipartisan group of HOPE Scholarship and pre-k programs, and retailers Georgia General Assembly members. Georgia Court of Appeals Presiding Justice Reading the James magazine "top lobbyist" Insurance executive David Burress (left) huddles Anne Elizabeth Barnes holding court with listings are McGuire Woods Consulting guru with James Magazine/InsiderAdvantage founder earned more than $270 million in commissions. Her James Magazine/InsiderAdvantage Danica Key and Nile Thompson, VP of Regional Matt Towery, Clayton State University President CEO Phil Kent. Sales for the Southeast Division of Tim Hynes and Fulton County Superior PHOTOS BY JOHN DELVES Capstone Diagnostics. Court Judge Craig Schwall. InsiderAdvantage SMART POLITICS TRANSLATES & James magazine To More, Better Infrastructure Ready for 2018! by CINDY MORLEY TRANSPORTATION INFRASTRUCTURE IN GEORGIA transit infrastructure. The state should not subsidize or is a current topic of many political and business operate transit systems, but should be involved in coming InsiderAdvantage Georgia is looking forward to entering into the New Year with conversations. While Georgia has a 10-year plan that up with plans to work with MARTA, Gwinnett and Cobb our outstanding staff of writers! many say will transform commuting in metro Atlanta by County in developing a transit plan that will address a lot expanding the region’s toll lane network, variable toll lanes Also, as in past years, we will be operating out of a satellite office in the press of our transportation needs.” are part of a larger plan made possible by the passage of The legislator flatly says Georgia has “been behind” in gallery inside the Coverdell Legislative Office Building in downtown Atlanta to cover historic transportation legislation— House Bill 170— last transportation and points to Georgia’s continued the 2018 Georgia General Assembly. Look for our veteran journalists to bring you year. H.B. 170 includes $10 billion worth of new highway, dependency on federal dollars for transportation daily updates on what’s happening when the legislature is in session along with a bridge and road improvement projects statewide. improvements in the past. variety of political, business and cultural topics throughout the year. Even with this shot in the arm, however, it should go “When you are dealing with federal dollars, it always Furthermore, check out the Forum opinion section on the InsiderAdvantage.com without saying that the state’s post-Obama economic lengthens the process,” Beach says. But “the passage of website. We publish commentaries from leading Republicans, Democrats and others recovery still brings significant transportation challenges. HB 170 allows for state money that can be used for They will be made tougher by the predictions that, within capital projects. This should allow us to catch up.” on vital public policy issues. the next 15 years, the Peach State’s population could Businessman Mark Burkhalter, a former Speaker of grow by 4.1 million— and over a million of these new the state House of Representatives and a state A $17.50/month or $200/year subscription residents will settle in metro Atlanta. Department of Transportation board member, says also gets you a full year of James magazine. Free! State Sen. Brandon Beach, R-Alpharetta, is one of Georgia has another model for infrastructure many state lawmakers trying to identify solutions to improvements that could soon become a model across Georgia’s transportation issues. And he has been the country. It is known as “P3” or public-private outspoken on at least one of the possibilities— transit. partnerships— and it was, and is, smart politics. “In “Georgia has a 10-year transportation plan, one that Georgia, we are using it to fast track a host of highway includes over $11 billion for managed lanes in this state,” projects to provide rapid congestion relief,” he says. Beach notes. “But with that said, we still have a lot of President Donald Trump is expected to push forth an transportation needs.” He emphasizes, however, that he infrastructure plan in the next few months, Burkhalter doesn’t want to see the state involved in transit says, and to expedite construction the president is operation. “Instead, I think the state’s role is investing in suggesting use of the P3 concept. Burkhalter explains that Trump is expected to propose $200 billion in federal funds over 10 years for highly critical infrastructure investments. But to fund the balance of the nation’s infrastructure needs, he wants state and local governments to embrace the P3 concept— something the Georgia DOT is now doing with immense vigor. “With private companies bidding and then engineering, designing, building and operating these projects, companies can generate funds for projects that metro Atlanta commuters have

INSIDERADVANTAGE.COM needed for decades,” Burkhalter says. “For example, the 30-mile, $840 million express lane project along I-75 in Cobb County and I-575 in Cherokee County will open next summer due to a GDOT partnership with the Statet wide Presence, private sector. Burkhalter says that “thanks to the leadership of Gov. Statet wide Solutions. Nathan Deal and GDOT Commissioner Russell McMurry, the interchange at I-285 and Georgia 400 will be With offices around the state of Georgia, Hall completed in 2020 with a P3, quickly rebuilding that interchange at a total cost of about $808 million. That Booth Smith, Government Affffairs is a well- partnership is also saving the state hundreds of millions connected team of lawyers and professional of dollars.” lobbyists who understand your ffeederal, state Georgia has various other important congestion andd local legislative and reggulatory objectives mitigation projections on the drawing board for metro Atlanta that will involve private-sector participation. Burkhalter lists the major ones:

• The Revive 285 project to create two new express lanes in each direction on I-285 from I-75 to I-85. At an AATTHHHENSHENNSS estimated cost of $4.2 billion, the design and right-of- way is in process and construction could kick off in 2023 or sooner. AATTTLLAANNTTTAA

• Two additional express lanes on Georgia 400 from I- 285 to McGinnis Ferry Road and one express lane in each direction from McGinnis Ferry Road to COLCCOLUUMMBBUUS

TIFTTOONN McFarland Road. The express lane project to ALBALBAAALBANLBALBANANYNYY McFarland Road is expected to cost about $1.8 billion BBRRUNSNSSWICKSWICKCKK and construction can begin in four years or less.

• Reconstruction of the I-285 interchange at I-20 east at a cost of $475 million. This project is in the design and Offfices also located in: Charleston, SC, Charlotte, NC, engineering phase and construction can start in about Naashville & Memphis, TN and N. N P allm Beach, Beach F L . four years.

• Reconstruction of the interchange on the opposite side Halll Booth Smith, PP..C. is a fuull service law firm of I-285 at I-20 west. This project is also in the with over 20 years of experience. At HBS, we engineering phase. At a total cost of $790 million, construction will begin in about five years. attribute our growth and success to the hard work and allegiance of fulfilling our promise: • Add an express lane on I-285 between I-20 and I-75 on “Serving to Achieve EExxcellence” in all we do. the west side of the Perimeter. The entire project will cost $655 million. Construction would likely begin in about six years on this plan.

• Add an express lane on I-285 between I-20 and I-85 on the east side of the Perimeter. The total project will cost $580 million. Construction is targeted to begin in about five years on that project.

Cindy Morley is a staff writer for James and InsiderAdvantage. IT DOESN’T EDUCATION & GEORGIA’S ECONOMIC DEVELOPMENT TAKE A GENIUS By Dana Rickman, PhD TO KNOW THAT WHEN YOU PLAY, eorgia is experiencing a talent gap— a mis- tious plans to increase the skill level of its workforce (e.g. match between degrees and skills needed by more rigorous learning standards, dual enrollment, Move GEORGIA’S KIDS WIN. employers versus the degrees and skills of On When Ready programs). At the same time, the state is the population. Currently, approximately 60 facing a growing number of children and communities percentG of all job postings require at least an associate’s trapped in the poverty cycle. More than one-quarter of degree, but only 42 percent of Georgia’s adult population children in Georgia currently live below the poverty line, has at least that level of education. Georgia’s labor supply ranking the state as the ninth highest in the nation for does not meet the current need of employers. child poverty rates. More concerning, Georgia ranks 10th How do we fix this problem? A primary way is to highest in the country for the number of children living in ensure a robust public education system that supports all extreme poverty (12 percent). These children tend to live students. That is essential to the future economic success in communities of concentrated, persistent poverty. of not only individuals, but communities, businesses and These communities generally lack equitable access to the state. Georgia has long been ranked as the “No. 1 high quality public education, health care, community State to do Business” and the economic growth numbers supports, and the economic opportunities that come with have been impressive. For example, between 2010 and equitable access. 2015, employer job postings in Georgia grew 154 percent, As the new school year starts with tremendous compared to 142 percent growth nationally. Between excitement from children, parents, and educators, that January 2011 and December 2014, Georgia added nearly excitement must be met with a commitment to support a 400,000 new jobs. robust education system for all children regardless of However, when looking more closely at the data, there their income, race, geographic location, or any other life are a couple of threats to the state’s long- term economic circumstance. growth. In March 2017, Georgia had the seventh highest It’s clear from the data that economic prosperity in an unemployment rate of any state. While Georgia is experi- increasingly competitive national and global environment encing an increasing number of available jobs, a signifi- depends in large part on Georgia’s public education sys- cant number of potential employees report being under- tem. Ultimately, whether that system is successful is not employed or unemployed. up to state leaders alone. Local leaders have a role to play. Another threat is that job growth has not been uniform Community leaders can go to the Georgia Partnership’s across the state and is highly concentrated in particular website and look at Economics of Education regional data areas. Employment data analyzed by the Georgia Chamber and study their local data (http://www.gpee.org/pro- of Commerce found that between 2010-2015 the state’s job grams/economics-of-education/), do a root cause analysis growth was concentrated in the metropolitan Atlanta area, around areas where they are weak, and formulate a strate- where the job growth was 10.4 percent. However, rural gic plan to support their schools and community. areas over that same timeframe grew at only 3.1 percent. It’s time for local communities across Georgia to con- In fact, 73 counties lost jobs. The economic projections for vene, connect and commit to helping improve education the next decade are even worse. Growth in rural areas is and make this coming school year a success for everybody. expected to reach only 1.6 percent and 87 counties are expected to lose jobs. Dr. Dana Rickman is the Policy and Research Director for the Georgia To help fill the talent gap and support communities Partnership for Excellence in Education. across the entire state, Georgia is implementing ambi-

IT DOESN’T TAKE A ROCKET SCIENTIST It’s elementary, actually. See, every time you play the Lottery, you’re helping our kids get one step closer to their dreams. For over 20 years the Georgia Lottery TO HELP KIDS WITH THEIR EDUCATION. has contributed more than $18.7 billion to education. On top of that, more than galottery.com 1.7 million HOPE scholars have gone to college and more than 1.4 million four- year-olds have attended a Lottery-funded Pre-K Program. Add those numbers up and, well, let’s just say that’s a hair-raising number of happy kids. by BENITA M. DODD

MOST of the large-scale development in mass transit, operations funds that go Atlanta in recent years has been near overwhelmingly to salaries and benefits transit stations and, according to the instead of mobility and a surge in ride- narrative, corporations are being moti- share use. vated to move close to MARTA stations For MARTA, ridership declined because millennial employees prefer nearly 12 percent from 2002 through staying off the highways and living clos- 2016; Atlanta’s population increased er to their jobs. Interestingly, though, nearly 7 percent during that period. none of these moves have resulted in Fares covers 35 percent of “opera- improved MARTA ridership. tions,” but more than more than 82 Unlinked rail passenger trips dropped 1.16 percent in cents of each dollar of “operations” is for salaries, the first half of 2017 over the same period in 2016, while wages and benefits. bus ridership dropped 3.31 percent. (An unlinked pas- When the region’s more efficient agencies resist senger trip is a trip on one transit vehicle; each transfer joining forces with MARTA, they’re accused of “racism.” is counted as a separate “trip.”) A Seattle Times columnist writing on Amazon’s head- This decline is not temporary. It’s a national trend, a quarters expansion plans declared, “Racism is one rea- result of lower gas prices thanks to son badly needed MARTA extensions and commuter rail implementing autonomous vehicles/shuttles as an on- before merging back onto the corridor domestic fracking, crumbling have been repeatedly blocked. The suburbs don’t want demand transit on a dedicated lane. These vehicles When needs are greater vehicles can be larger, like infrastructure that reduces ‘those people’ coming there.” could be quiet electric vehicles, allaying concerns in sur- the Atlanta airport’s “plane train,” rubber-tired trans- the reliability of It’s a ridiculous charge, given the diversity of metro rounding neighborhoods. Not only would this be cheap- portation traveling between concourses. The lightweight Atlanta’s suburbs. The city’s transit plans, however, fit er to build and to operate, it would be a forward-looking, fleet of vehicles could be 3D-printed and collisions are the adage about the definition of insanity. Atlanta expedited mobility solution that provides the flexibility less likely for autonomous vehicles travelling at a con- should be rethinking its approach, not focusing the expected by millennials and medical facility employees. stant speed on a dedicated lane. And unlike inflexible, transit sales tax approved by voters in 2016 on introduc- Back in 2001, the Foundation published a paper pro- fixed rail, the lane could eventually add other ing light rail, expanding heavy rail and extending the posing SyncTrans, a system with “small family-sized cars autonomous vehicles. underwhelming Streetcar. that travel non-stop on an elevated guideway between Finally, don’t lock commuters into a lengthy and Atlanta could accomplish so much more by embrac- stations. The quiet, electric-powered system and its cars costly expansion of rail funding over four decades by ing the technologies transforming travel. That the city require no drivers and can operate 24 hours a day, seven MARTA’s half-penny tax. The agency could immediate- has held off since 2000 on rail expansion is an advan- days a week. The elevated guideways are cost effective ly expand bus transit service, planning around the “vir- tage, not a setback. Rail is one of the least effective, and can be erected quickly. Since the system is fully tual transit network” opportunity in the expanding most expensive mass transit options for low-density automated, labor costs are minimal.” express toll lane network. This increases the employ- metro Atlanta, which came honestly by its reputation as Back then, that was the world of “The Jetsons.” ment horizon for so many of the city’s residents the “poster child for sprawl.” Today, Google cars travel through urban streets while beyond rail stations, tedious transfers and foot-drag- The Georgia Public Policy Foundation has long held major advances in autonomous vehicle technologies ging government options. that the least objectionable rail expansion would be the reduce human-error collisions and improve mobility. MARTA is already partnering with ride-share servic- Clifton corridor, one of the metro area’s most congested MARTA and the Georgia Department of es for first-mile/last-mile service, demonstrating that commutes. Major employers there include Emory Transportation are experimenting with a connected vehi- transit solutions need not originate in government or be University and Hospital, the Centers for Disease Control cle “smart” corridor along North Avenue. Imagine a a growing taxpayer burden. It’s a short trip from there and Prevention, Children’s Healthcare at Egleston and demonstration project in the Clifton corridor: Lightweight, to accepting that technology and entrepreneurship will the VA Hospital. These medical facilities’ round-the- electric-powered, Google-type vehicles, each with a capaci- take Atlanta commuters much further than trains. clock shifts would benefit from round-the-clock transit. ty for four people, could quickly and quietly travel along a But dedicating $1.2 billion for four miles of light rail dedicated corridor – grade-separated or fenced off – and Benita Dodd is the vice president of the Georgia Public in the Clifton Corridor remains poor value. Far wiser is zip off the lane to a stop near passengers’ destinations Policy Foundation.

30 JAMES NOVEMBER/DECEMBER 2017 OUR BRAGGING RIGHTS Better than in 1956 by Larry Walker

compared to “our” airport. Georgia has, for the last five years, been judged to be the Gowith me to May 1956back and that Perry Junior High gradua- best state in the United States in which to do business by tion at the Perry High School auditorium. I had been “Site Selection” magazine, the preeminent publication for asked by my teachers to give the commencement speech this kind of ranking. Georgia is the first state to be accorded and two of my teachers, Mrs. Malissa Tucker and Mrs. this ranking for five consecutive years. Did you hear that? Mabel Weaver, helped me write it. It was about what a What does it mean? Well, if it’s the best state in the United great state Georgia was. I can still quote parts of it: States, doesn’t it mean “we” are the best place in the World “Georgia is a great state and its people a strong people… to do business? Take a bow Governor Deal for you first, and come South young man, come South…” for other Georgia Governors and state Legislators who By any objective standards, Georgia was not a great helped get us to where you could “close the deal.” And, let’s state in 1956. We lived in a very hot part of our country and not forget the citizens of Georgia who mean business. most people did not have air conditioning. Nor did Perry What about our University System? Two universities, Junior High School. But we did have an all-white class and Georgia Tech and UGA, are in the top 25 best public col- all of my classmates and all in the audience who heard my leges in the country. Amazing. Take a bow, former Gov. speech were the same. Zell Miller, for the lottery-funded HOPE Scholarships he Probably the two most important things that ever hap- created. Because of HOPE, the best of the best in our state pened to the South economically— and Georgia in partic- now go to our Georgia colleges and universities. And we ular— were air conditioning and the court decisions doing still play some pretty good football in the Peach State. away with required and enforced racial segregation. We Then there is the “film business.” You know, making cooled off and the court decisions requiring racial equality movies and television shows and hiring folks to do the put us into the economic mainstream of the country. things necessary to make the films and the building of facil- So let’s look more closely. Let’s see what we Georgians ities to make films that will be seen all over the world. We liked to brag about in 1956. are now one of the top three states in the country in the film Well, we liked to assert that the Peach State not only industry. The economic impact of the business in Georgia produced the most peaches, but also the best. We boasted has increased 4,000 percent during the last ten years. To about producing more cotton than any state in the union. put it another way, ten years ago the impact was $242 mil- We never had a president from Georgia, but we did have lion annually and today it is $9.5 billion! Ninety-three thou- some cabinet members over the years and Eli Whitney had sand Georgians work in this industry. Remarkable! invented the cotton picker. Ty Cobb was the best baseball One other thing. We just dedicated a statue of Dr. player that ever lived, Babe Ruth notwithstanding. The Martin Luther King on the Capitol grounds with Governor University of Georgia had some great football teams in the Deal’s support and presence along with Speaker David 1940s and 50s as did its arch rival Georgia Tech. Little was Ralston and Lt. Gov. Casey Cagle. “The times they are a said about academic standings at either school. ‘changing.” I’d say, for the better. And let’s not forget that George Perry caught the I could go on talking about our ports and excellent high- largest largemouth bass ever on June 22, 1932 – it weighed way systems, but space limitations prevent elaboration. So 22 pounds and 4 ounces and was caught in Montgomery let me just close with this. Georgia is a great state and its Lake, Georgia. If you were a fisherman that was something people a great people. We invite you to come South. I know to boast about. And, if you weren’t, you could still use it. I’ve said it before, but it was 61 years earlier the first time. We had to use everything we had. But now is the time and, as one Georgian, I’m mighty proud. Georgia was not a great state compared to the other 47 And I’m still trying to catch a bass that weighs more in 1956, but things have changed. My, how they have than the one George Perry caught, 85-plus years ago. changed. Let’s look. Hartsfield-Jackson Airport in Atlanta Georgia is the Larry Walker is a practicing attorney in Perry. He served 32 years busiest airport in the world. Did you hear that, LAX in Los in the Georgia General Assembly and serves on the University System Board of Regents. Angeles and La Guardia in New York? The busiest in the world. I was in LAX twice a few weeks ago. It is “quiet” Housing affordability has received attention locally the unintended consequence of constricting supply as GEORGIA’S APARTMENT INDUSTRY: and nationwide over the course of the past year. capital moves to other markets and further driving up Discuss the challenges in that regard. What drives the cost. the cost of apartment housing? While on one hand some local governments express LOOKING to the FUTURE concern with affordability, they also continue to pursue BRUNSON: There are a number of cost drivers that go into policies that ultimately increase the cost of housing. building new housing– land cost, cost/demand on con- Examples include mandates related to electric vehicles, The apartment industry is a huge economic driver in Georgia, especially with our growing struction materials, labor shortage, concerns over density, imposing expensive concrete and steel framed construc- population. That’s why James interviewed Tommy Brunson, the incoming chairman of the taxes, fees and basic supply/demand. tion requirements, and creating special tax overlays to Atlanta Apartment Association, about the “state of the state’s” apartment industry. He is There are two main ways to impact affordability: Cost fund public projects like a current proposal from the of the product produced, and the supply of the product. Atlanta Beltline. also the Senior Vice President for Development, Eastern Region, with Fairfield Residential. The construction labor shortage is very real and is having a In order to comprehensively address this issue, we direct impact on the cost. must acknowledge that everything impacts housing afford- There will continue to be constricted supply until local ability, even well-intentioned policies like this one. Tell us a little about your company and Georgia’s communities embrace density. Restrictive zoning laws and apartment industry. “Not In My Back Yard” attitudes need to change if we truly It’s clear that affordability is a shared responsibili- want to find a solution to the problem. ty. With that in mind, what is the industry’s role in TOMMY BRUNSON: Fairfield Residential is a full-service, There is a very real cost that comes from public poli- addressing issues related to affordability? national multi-family real estate company with over 30 cy. For example, some local governments— including years of operating history. We own or manage more than Atlanta— are looking to address affordability through BRUNSON: We are the solution—or certainly a part of it. 47,000 units nationwide and roughly 2,000 in the Atlanta policies like inclusionary zoning. This essentially Georgia remains a pro-business state, and as long as job market. By full-service, we mean that our firm is involved requires owners and developers to set aside a percentage growth continues there will be a need for all different in all facets of the apartment industry— providing develop- of new units at rent controlled prices or pay a substan- forms of housing to accommodate our growing communi- ment, acquisition, construction, asset and property manage- tial in lieu fee. Without meaningful incentives to offset ty. We’re grateful for our partnerships with local and state ment and disposition services. the cost of providing those affordable units, the cost of government and will continue to work together to address Overall, Georgia’s apartment industry is an enormous housing increases for all other residents. This may have housing needs at all levels across the state. economic engine and most apartment operators belong to the Association. Our members combine to provide housing to 1.1 million Georgians in more than 480,000 BRUNSON: We look for access and convenience to employ- apartment homes. ment and transit, nearby retail and entertainment opportu- The economic impact numbers are impressive. nities, quality school systems and stable local governments. Georgia’s apartment industry and our residents annually Atlanta has historically provided these elements. contribute $20.6 billion to the economy and support over 200,00 jobs. Where do you think we are in the cycle? Are there signs on the horizon that indicate the duration? Georgia’s apartment market has been very good in recent years. What are the key drivers you can point BRUNSON: Housing choices, continued job growth, house- to as to why? hold formation and boomers provide all the ingredients for continued growth and the operating fundamentals of our BRUNSON: Obviously our region’s robust job growth marketplace remain encouraging. While we are likely closer (70,000-80,000 over past few years) has a positive impact to the end of our business cycle than the beginning, unless on our economy and this industry. we see a meaningful shift in economic factors, our indus- The demographic trends have also helped. Single- try should continue to attract investment. Occupancies are family homeownership rates among both millennials and currently in the 94 to 95 percent range, and market baby boomers are down from 69% to 63.6%. We also see researchers expect it to remain there for the next year. that young adults are delaying major life transitions, such Generally, all new projects that have delivered units over as marriage or having children, which creates more sin- the past seven years have leased well and absorbed into gle-person households. In other cases, high student loan the market. Capital remains interested in our industry due debt and restrictive lending policies delays some young to the market demand from these drivers. adults‘ ability to afford purchasing a house. Many of our Some challenges that could impact the cycle would be residents, - certainly the boomers - find that the conven- state and local government policies that create a disincen- ience and cost of leasing an apartment is more attractive tive to investment and risk-taking. Like all investments, we than owning and maintaining a house. look for all factors to align before taking a risk. So if govern- ment policies in one jurisdiction or region are adverse, capi- What do you look for when scouting new communi- tal will move to more promising locations. ties and locations for development or acquisition? On broader scale, federal policies on rates, tax law changes and other economic drivers could certainly inter- rupt or extend the cycle. Georgia’s Success Starts With Our Talented Workforce by pat wilson

hear companies constantly tell us that the number one thing busi- nesses look for is people. The right location combined with the right business plan will be Weunsuccessful if the people aren’t right. We know that all too well here in Georgia, as our state’s success as the No. 1 state in the nation to do business is wholly due to our people. Home to 17 Fortune 500 headquarters, Georgia has become a magnet for some of the world’s top companies. Our accessibility and connectivity make it easy for com- panies to connect with clients, customers and employees around the world. During Fiscal Year 2017, our Global Commerce team helped private enterprise create a total of 30,309 new jobs, generating a record-breaking $6.33 billion in invest- ments. This growth is a result of the expansion or reloca- tion of 377 companies covering every region of the state. Georgia’s financial technology sector saw the most signif- icant job growth, with an increase of 250 percent com- pared to the previous year. We saw a 30 percent increase in projects in the software and technology industry, repre- senting 9,821 jobs and $1.4 billion in investments. It’s important to note here that 80 percent of total economic leaders, Georgia continues to expand our efforts to reach development announcements were located outside of the small businesses seeking information, resources and con- metro Atlanta region. nections as well as those entrepreneurs interested in The primary building block of Georgia’s business cli- starting a new business. mate is our highly-skilled workforce. In Georgia, compa- One of our greatest economic development assets is nies find a vibrant and skilled workforce. The partner- our global accessibility. It’s not just what’s happening in ships and collaborations happening amongst our univer- Georgia, but our position in the global marketplace is sities, technical colleges and Georgia businesses is strengthened by the work of our international representa- extraordinary. Business leaders are connecting with our tives in 11 strategic markets around the world. Building educational institutions in order to create programs and strong and longstanding relationships is essential to our curriculum to fulfill the jobs of the future. As home to the success, and our footprint around the world has led to nation’s No. 1 workforce training program Quick Start, we immeasurable success. want companies to find success here and they can only Furthermore, our 2016 trade numbers reinforce the do that with trained and talented workers. state’s leading role as a front-runner in the global econo- Georgia’s small businesses continue to lead the way my and international trade. In 2016, total trade between and are critical to Georgia’s economic growth. Under the continued on page 38 direction of Gov. Nathan Deal and legislative Georgia and the world exceeded $121.7 ensuring Georgia’s place in the industry billion and exports surpassed $35.5 bil- well into the future. With this excep- lion. As a matter of fact, companies in tional growth, the governor created the 95 percent of Georgia counties are Georgia Film Academy. It certifies active in international trade. workforce-ready employees, connects Being able to provide a company students and prospective employees and its employees a good quality of life with employers and offers a unique cap- and access to diverse cultural opportuni- stone experience for top students that will ties is essential to attracting businesses to provide them a path to employment in the Georgia. In 2016, Georgia’s tourism industry film and television industry in Georgia. generated a record-breaking $61.1 billion in Bottom line: It’s our people. Georgia’s tal- economic impact. The impact of the industry ented workforce drives our innovative compa- goes beyond the vacationers who hike our nies. Leaders in our communities strive to make mountains, explore our cities and take in the his- this a great place to live. And our public servants tory along the coast. It supports employment work collaboratively to create quality opportuni- across multiple industry sectors, employing an ties for Georgians. estimated 450,000 Georgians statewide. We are all ambassadors for economic develop- Another one of Georgia’s leading economic gen- ment, and that is why Georgia has now been named erators is the film and television industry. Georgia- the No. 1 state in the nation to do business for the 5th lensed feature film and television productions generated year in a row. Take a bow, Georgia, you’ve earned it. an economic impact of more than $9.5 billion during fis- cal year 2017. More than 150 new businesses have relo- Pat Wilson is Georgia Commissioner of Economic Development. cated or expanded in Georgia to support the industry

38 JAMES SEPTEMBER/OCTOBER 2017