Post Covid-19

SOUTH FLORIDA BUSINESS & WEALTH MAY 2020 | $7.95 SFBWMAG.COM

POST COVID-19

A SPECIAL ISSUE OF SFBW WITH ADVICE AND INSIGHTS A Lifestyle of Luxury and Effortless Living Experience the luxurious waterfront homes of One Park Grove – 50,000 Square Feet of Unparalleled estate-quality condominiums and penthouses with the perfect World-Class Amenities location, magnificent architecture, spectacular bay views and - Five Acres of Private Gardens by Enzo Enea first-class amenities. Ideally positioned on Biscayne Bay in - World Class Art Collection Coconut Grove, One Park Grove brings high-style living - 28 Seat Private Screening Room to an entirely new level. - Whole Body Fitness Center - Signature Spa with Treatment Rooms - Wine Tasting Rooms with Private Wine Storage 2-5 Bedrooms Residences Starting at $2.7m. - 500 ft of Bayfront Pools, Jacuzzi & Pool Decks - Poolside Dining, Bar & Cabanas - Children’s Play Area

Visit Our New Penthouse Sales Gallery: 2821 S. Bayshore Dr. uph-a, Miami fl 33133 (Enter on Mary St.) oneparkgrove.com 305 521 1344

EXCLUSIVE MARKETING AND SALES AGENT DOUGLAS ELLIMAN DEVELOPMENT MARKETING architecture by oma • rem koolhaas | interiors by meyer davis | kitchens & baths by william sofield | landscapes by enzo enea | sculpture by jaume plensa | restaurant by chef michael schwartz

This condominium is being developed by 2701 Bayshore One Park Grove, LLC, a Florida limited liability company ("Developer"), which has a limited right to use the trademarked names and logos of Terra and The Related Group. Any and all statements, disclosures and/or representations shall be deemed made by Developer and not by Terra and The Related Group and you agree to look solely to Developer (and not to Terra and The Related Group and/or each of their affiliates) with respect to any and all matters relating to the marketing and/or development of the Condominium and with respect to the sales of units in the Condominium. ORAL REPRESENTATIONS CANNOT BE RELIED UPON AS CORRECTLY STATING THE REPRESENTATIONS OF THE DEVELOPER. FOR CORRECT REPRESENTATIONS, MAKE REFERENCE TO THIS BROCHURE AND TO THE DOCUMENTS REQUIRED BY SECTION 718.503, FLORIDA STATUTES, TO BE FURNISHED BY A DEVELOPER TO A BUYER OR LESSEE. These materials are not intended to be an offer to sell, or solicitation to buy a unit in the condominium. Such an offering shall only be made pursuant to the prospectus (offering circular) for the condominium and no statements should be relied upon unless made in the prospectus or in the applicable purchase agreement. In no event shall any solicitation, offer or sale of a unit in the condominium be made in, or to residents of, any state or country in which such activity would be unlawful. FOR NEW YORK RESIDENTS: THE COMPLETE OFFERING TERMS ARE IN A CPS-12 APPLICATION AVAILABLE FROM THE OFFEROR. FILE NO. CP19-0051. All plans, features and amenities depicted herein are based upon preliminary development plans, and are subject to change without notice in the manner provided in the offering documents. The photographs contained in this brochure may be stock photography or have been taken off-site and are used to depict the spirit of the lifestyle to be achieved rather than any that may exist or that may be proposed, and are merely intended as illustration of the activities and concepts depicted therein. Actual prices of units within the condominium may vary. Please contact Developer for accurate pricing information. The information provided herein regarding Coconut Grove was obtained from publicly available information and Developer makes no representations as to same. Certain information set forth herein includes timelines, completion dates, and other predictive and forward-looking statements (collectively, the “Projections”) that represent assumptions and expectations of Developer in light of currently available information. No representation or warranty, express or implied, is provided in relation to the fairness, accuracy, correctness, completeness or reliability of the Projections.

Developed by: 2701 Bayshore One Park Grove, LLC, 2665 South Bayshore Drive, Suite 1020, Coconut Grove, Florida 33133

TABLE OF CONTENTS

COVER STORY NEWS AND FEATURES Businesses develop 40 GREAT PLACES AND SPACES 58 SFLG MONTHLY strategies to survive and help Royal Palm Residences, Little Palm An alternative to noncompetes 11 Island and a big FAT makeover GETTING THROUGH 60 HR 16 Business leaders tell how 46 WEALTH SFBW celebrates they are coping and what’s ahead TradeStation makes Excellence in HR Honorees crypto trading easy GOVERNMENT HELP 62 TECHNOLOGY 22 Experts give advice 50 INSURANCE Cybersecurity: on government programs The ﬁ ne art of risk protection Protecting the castle GOVERNMENT PROGRAMS 54 LAW 64 TECHNOLOGY 24 Highlights of Anti-Defamation League Meet TechLauderdale’s new CEO two key federal acts ﬁ ghts hate in the workplace BANKRUPTCY 56 EDUCATION COLLABORATION 26 All about Chapter 11 Ocean cleanup company nd trying to avoid it moves in to research park INSURANCE 28 Will COVID-19 claims be covered? AUTOMOTIVE 11 46 54 30 Industry adopts virtual model CRUISE LINES 32 Big three take steps to survive RESIDENTIAL REAL ESTATE 36 Why South Florida could still be a hot market COMMUNICATIONS 39 What call centers need to do

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RoscioliDonzi.com +1.954. 581.9200 3201 W State Road 84 Fort Lauderdale, FL 33312 www.sfbwmag.com • MAY 2020 5 LETTER FROM THE EDITOR

Editor-in-Chief Kevin Gale The Unseen Enemy

As I wrote my column in March for the April issue, the COVID-19 virus was just starting to wreak havoc in the United States. I likened it to a black swan event, so named because black swans didn’t seem to exist until they were one day discovered. Unfortunately, we didn’t get one black swan, we seemed to get a massive fl ock that blotted out the sun. It’s also so different than getting hit by a hurricane, which envelops us with fury. These days we can be walking by a hospital on a sunny day as people fi ght for their lives inside. The toll on human lives is heartbreaking, and the havoc in the business worlds seems incalculable. I had written in April how Carnival Cruise Lines had dropped to $12.81 during the Great Recession. On April 2, it hit $7.80. As I write this, it had risen to $11.96. We should all be so fortunate, like Carnival, to have Saudi Arabia’s Public Investment Fund and big institutional buyers come to the rescue. I delve into the outlook for cruise lines in an article in this issue. The industry needs to do what a lot of other hospitality, airlines and sports teams ultimately need to do: Show customers that it’s safe to return en masse. Governments need to do comprehensive testing, so we really know what’s going on in the population in general. As I write this column, it’s not happening. In the weeks until you get this issue, I hope that changes. The federal government is throwing trillions of dollars to help revive the economy. Thankfully, members of Congress who beat up previous administrations for Great Recession bailouts realized the importance of doing so this time plus providing more direct assistance to our citizens. My concern is that some businesses still won’t come back despite all the assistance. We seemed poise for epic changes in how we do business. I think a lot about how we do business and real estate. The push for social distancing has left many professionals, including me, fully functioning in home offi ces. Companies may start to rethink just how many people need to be working from offi ces. How will that impact the offi ce market? Will the trend of open workspaces with people working in close proximity still work? The We Work model was struggling before COVID-19; how well can it survive? Owning distribution centers populated by Wal-Mart and Amazon seems pretty good. Do you want to own a REIT with malls? I had a painful experience with one, but got out before it sank all the way to 85 cents a share. Retail and its related real estate is turning in to haves and have-nots. I read a Seeking Alpha column today that said, “The Retail Apocalypse is Accelerating.” In the past 10 years, the share prices of Macy’s and Kohl’s were each down 75 percent. On the other hand, retailers like Wal-Mart, Target, Lowe’s and Home Depot seem better positioned. I’m waiting to see what happens with hotels. A lot will depend on who owns them and how the fi nancing is structured. During the Great Recession, there was a wave of commercial mortgage backed security defaults. Some hotels were taken over by their lenders, but by and large continued to operate pretty smoothly. It’s probably a good thing that Michael Dell owns the Boca Raton Resort & Club. It’s also great to see his foundation donated $100 million to help combat the pandemic. I’m hoping SFBW can help businesses get through this. We have an array of how-to articles regarding COVID-19 in this issue and we started publishing a daily newsletter that is designed to be helpful and inspirational. You can sign up at sfbwmag.com—just look for “Newsletter Signup” at the top of the page. I wish our readers well in these challenging months and invite feedback via [email protected].

6 MAY 2020 • www.sfbwmag.com LETTER FROM THE EDITOR

Editor-in-Chief Kevin Gale The Unseen Enemy

As I wrote my column in March for the April issue, the COVID-19 virus was just starting to wreak havoc in the United States. I likened it to a black swan event, so named because black swans didn’t seem to exist until they were one day discovered. Unfortunately, we didn’t get one black swan, we seemed to get a massive fl ock that blotted out the sun. It’s also so different than getting hit by a hurricane, which envelops us 2000 Ocean by Enrique Norten, TEN Arquitectos – A contemporary 38-story with fury. These days we can be walking by a hospital on a sunny day as people fi ght for their lives inside. glass tower showcasing panoramic views of the Atlantic Ocean, Intracoastal The toll on human lives is heartbreaking, and the havoc in the business worlds seems incalculable. Waterway and surrounding beaches, is located just north of South Floridaʼs I had written in April how Carnival Cruise Lines had dropped to $12.81 during the Great Recession. On Golden Beach. Proudly positioned on the beach, and closer to the ocean than any of its neighbors, it is bathed with sunlight from sunrise to sunset. Sixty-four April 2, it hit $7.80. As I write this, it had risen to $11.96. We should all be so fortunate, like Carnival, to families will have the privilege to call 2000 Ocean their home. have Saudi Arabia’s Public Investment Fund and big institutional buyers come to the rescue. I delve into the outlook for cruise lines in an article in this issue. The industry needs to do what a lot of other hospitality, Featuring interiors by and kitchens for select residences by Concept design by Kobi Karp. airlines and sports teams ultimately need to do: Show customers that it’s safe to return en masse. Governments need to do comprehensive testing, so we really know what’s going on in the population in For inquiries, or to schedule a private preview of 2000 Ocean at our on-site general. As I write this column, it’s not happening. In the weeks until you get this issue, I hope that changes. sales gallery, please call 954.251.0179 or visit 2000ocean.com. The federal government is throwing trillions of dollars to help revive the economy. Thankfully, members of Congress who beat up previous administrations for Great Recession bailouts realized the importance of doing so this time plus providing more direct assistance to our citizens. My concern is that some businesses still won’t come back despite all the assistance. We seemed poise for epic changes in how we do business. I think a lot about how we do business and real estate. The push for social distancing has left many professionals, including me, fully functioning in home offi ces. Companies may start to rethink just how many people need to be working from offi ces. How will that impact the offi ce market? Will the trend of open workspaces with people working in close proximity still work? The We Work model was struggling before COVID-19; how well can it survive? Owning distribution centers populated by Wal-Mart and Amazon seems pretty good. Do you want to own a REIT with malls? I had a painful experience with one, but got out before it sank all the way to 85 cents a share. Retail and its related real estate is turning in to haves and have-nots. I read a Seeking Alpha column today that said, “The Retail Apocalypse is Accelerating.” In the past 10 years, the share prices of Macy’s and Kohl’s were each down 75 percent. On the other hand, retailers like Wal-Mart, Target, Lowe’s and Home Depot seem better positioned. I’m waiting to see what happens with hotels. A lot will depend on who owns them and how the fi nancing is structured. During the Great Recession, there was a wave of commercial mortgage backed security defaults. Some hotels were taken over by their lenders, but by and large continued to operate pretty smoothly. It’s probably a good thing that Michael Dell owns the Boca Raton Resort & Club. It’s also great to see his foundation donated $100 million to help combat the pandemic. I’m hoping SFBW can help businesses get through this. We have an array of how-to articles regarding COVID-19 in this issue and we started publishing a daily newsletter that is designed to be helpful and inspirational. You can sign up at sfbwmag.com—just look for “Newsletter Signup” at the top of the page. I wish our readers well in these challenging months and invite feedback via [email protected].

ORAL REPRESENTATIONS CANNOT BE RELIED UPON AS CORRECTLY STATING THE REPRESENTATIONS OF THE DEVELOPER. FOR CORRECT REPRESENTATIONS, MAKE REFERENCEORAL REPRESEN TOTA TIONSTHIS C BROCHUREANNOT BE RELIED ANDUPON AS TO CORRECT THEL YDOCUMENTS STATING THE REPRESEN REQUIREDTATIONS OF THE BY DEVE SECTIONLOPER. FOR C718.503,ORRECT REPRESEN FLORIDATATIONS, STATUTES,MAKE REFERENCE TO TO THISBE BFURNISHEDROCHURE AND TO BY THE ADOCUMENTS DEVELOPER REQUIRED TO BY ASECTION BUYER 718.503, OR LESEE. FLORIDA STATUTES, TO BE FURNISHED BY A DEVELOPER TO A BUYER OR LESEE. This is not intended to be an offer to sell, or solicitation to buy, condominium units to residents of any jurisdiction where such offer or solicitation cannot be made or are otherwise prohibited by This is not intended to be an offer to sell, or solicitation to buy, condominium units to residents of any jurisdiction where such offer or solicitation cannot be made or are otherwise prohibited by law, and your eligibility for purchase will depend upon your state of residency. This offering is law,made and on lyoury by the eligibility prospectus for forthe condominium purchase and will no s tadependtement should upon be relied your upon stateif not made of inresidency. the prospectus. ThisThe in foofferingrmation pro vided,is made including only pricing, by is solethely prospectusfor informational puforrposes, the and condominium is subject to change and without no notice. statement APPLICABLE shouldTO NEW Y beORK reliedRESIDEN TuponS: This if not advertisement is not an offering. It is a solicitation of interest in the advertised property. No offering of the advertised units can be made and no deposits can be accepted, or reservations, binding or non-binding, can be made until an offering plan is ﬁ led with the New York State madeDepa inrtment the of prospectus. Law. This advertisement The isinformation made pursuant to provided, Cooperative Policy including Statement N pricing,o. 1, issued bisy tsolelyhe New Y oforrk S tainformationalte Department of Law purposes,. CP16-0047, Sponso andr: 2000is subject S. Ocean toDri vchangee, Hallandale without Beach, Flo rnotice.ida 33009. APPLICABLE Equal Housing Oppo TOrtunit NEWy. YORK RESIDENTS: This advertisement is not an offering. It is a solicitation of interest in the advertised property. No offering of the advertised units can be made and no deposits www.sfbwmag.com can be accepted, or reservations, • MAY 2020 7 binding or non-binding, can be made until an offering plan is ﬁ led with the New York State Department of Law. This advertisement is made pursuant to Cooperative Policy Statement No. 1, issued by the New York State Department of Law. CP16-0047, Sponsor: 2000 S. Ocean Drive, Hallandale Beach, Florida 33009. Equal Housing Opportunity. CHAIRMAN AND PUBLISHER Creative Editorial Advisory Board Gary Press [email protected] CREATIVE DIRECTOR Bob Birdsong, Rufus James, OK Generators, Fort Lauderdale EDITOR-IN-CHIEF AND Melanie Smit President Executive Airport, SENIOR VICE PRESIDENT OF STRATEGY ART DIRECTORS Kevin Gale [email protected] Airport Manager Alexander Hernandez, Andy Cagnetta, Frank Papandrea, Evelyn Suarez Transworld Alan Levan, MANAGING DIRECTOR Business Brokers, CEO BBX Capital, Clayton Idle [email protected] Chairman and CEO Writers Matt Dernis, CONTRIBUTING WRITERS COPY EDITOR Dernis Financial Rick Mancinelli, Jason Davis Stephen Garber, Darcie Lunsford, CFP® C3, Greta Schulz and Martin Lenkowsky CEO Michael Gorham, Photographers Brown & Brown of Neil Merin, Florida, Merin Hunter Codman, Eduardo Schneider Photography Executive Vice President Chairman

Market Directors Gerald Greenspoon, Teddy Morse, DAISY ABREU [email protected] Greenspoon Marder, Ed Morse Co-managing Director Automotive Group, LORI CASTLE [email protected] Chairman & CEO GEORGETTE EVANS gevans@lmgfl .com Steven Gurowitz, MARC FREINDLICH [email protected] Interiors by Steven G., Steven Sadaka, President Steven Douglas, CEO CHRISTINE REDMOND [email protected] Michelle Homoky, CONTROLLER Celebrity Cruises, MARGARET MARTINEZ mmartinez@lmgfl .com Director of Eastern Sales OPERATIONS DIRECTOR MONICA ST. OMER monica@lmgfl .com

EVENTS AND MARKETING MANAGER OLIVIA BIBBEE obibbee@lmgﬂ .com SFBW Magazine 3511 W. COMMERCIAL BLVD., SUITE 200, FORT LAUDERDALE, FLORIDA 33309 | 954.666.5300 | WWW.SFBWMAG.COM Manage Your SFBW Subscription Is SFBW arriving in your ofﬁ ce with an outdated subscription label? Contact Crystal Castillo: [email protected] to give us updated information, such as a new executive or someone no longer with your organization. Visit sfbwmag.com to see our digital content and sign up for our weekly newsletter ©2018 SFBW magazine is published by Lifestyle Media Group, all rights reserved. SFBW is a monthly advertising magazine. All contents are protected by copyright and may not be reproduced without written consent from the publisher. The advertiser is solely responsible for ad content and holds publisher harmless from any error.

8 MAY 2020 • www.sfbwmag.com CHAIRMAN AND PUBLISHER Creative Editorial Advisory Board Gary Press [email protected] CREATIVE DIRECTOR Bob Birdsong, Rufus James, OK Generators, Fort Lauderdale EDITOR-IN-CHIEF AND Melanie Smit President Executive Airport, SENIOR VICE PRESIDENT OF STRATEGY ART DIRECTORS Kevin Gale [email protected] Airport Manager Alexander Hernandez, Andy Cagnetta, Frank Papandrea, Evelyn Suarez Transworld Alan Levan, MANAGING DIRECTOR Business Brokers, CEO BBX Capital, Clayton Idle [email protected] Chairman and CEO Writers Matt Dernis, CONTRIBUTING WRITERS COPY EDITOR Dernis Financial Rick Mancinelli, Jason Davis Stephen Garber, Darcie Lunsford, CFP® C3, Greta Schulz and Martin Lenkowsky CEO Michael Gorham, Photographers Brown & Brown of Neil Merin, Florida, Merin Hunter Codman, Eduardo Schneider Photography Executive Vice President Chairman

Headquartered in Miami / Ft. Lauderdale LawsReporting.com Toll Free: (800) 305-5297 www.sfbwmag.com [email protected] • MAY 2020 9 LEADERSHIP ADVERTORIAL CORONAVIRUS: COVER STORY LEVERAGE WITH LIFE INSURANCE: Financing Premiums to Create Wealth GET THE HELL OUTTA

WHEN SEEKING LARGE SUMS OF LIFE INSURANCE, affluent have a net worth of at least $3 million and an annual HERE income of more than $500,000 to qualify.” individuals are increasingly asking about premium financed life insurance In recent years, the most popular policy type to BUSINESSES DEVELOP in order to acquire the amount of insurance they need while limiting finance is Indexed Universal Life (“IUL”), a form of cash value permanent insurance. IULs such as STRATEGIES TO their out-of-pocket costs. This financing permits clients to maintain flex- Symetra Financial’s Accumulator IUL permits a cli- ibility in their cash flow and to keep capital deployed in higher yielding ent to participate in the upside of market growth SURVIVE AND HELP assets without having to liquidate those assets to pay for the policy. This linked to nine Base, Core and Select indexes while severely limiting exposure to market declines BY KEVIN GALE first part of a three-part educational series will highlight what premium through guaranteed minimum interest rates. Eight financed life insurance is, who should consider the approach and what are of the nine strategies in the Accumulator IUL do not currently cap growth rates and all strategies the risks of the strategy. provide a 2% cumulative lookback guarantee, re- Financing premiums is a way for qualified ten years or more – or paid back at death from the ducing downside risk. borrowers to use third-party financing to pay for policy’s proceeds. The loan could also be paid back Premium financed life insurance can be a power- sizeable life insurance premiums with minimal ini- at the surrender of the policy or with other assets. ful tool to help clients purchase life insurance while tial and on-going cash flow. Individuals are often In the meantime, the client’s capital remains posi- helping them save money by protecting liquidity seeking coverage for estate tax and planning needs tioned elsewhere, earning a rate far higher than that that is best deployed elsewhere. The strategy is as well as those wanting to use a life insurance pol- of the life insurance policy. complex and those investigating its use should con- icy’s unique tax attributes to defer taxation on re- This description might lead to the perception sult experienced life insurance, legal and tax experts tirement savings and to later access those funds via that premium financed life insurance is a way to to learn if financing premiums would be beneficial. tax-free policy loans. obtain almost free insurance where the purchas- A one-time or a series of loans are typically ob- er must only make occasional interest payments. To learn more about premium financing strat- tained from either a bank with which a client has “Not so fast,” says Michael Seltzer, CLU® ChFC®, egies and how it may help to cost-effectively an established relationship or from a lender which a Principal of Verite Group, LLC, a national pro- fund your life insurance needs, please contact has a focus in financing life insurance premiums. vider of premium loan financing strategies. “There the author at (617) 426-0234 or at Jay@LifeIn- COVID-19 knocked down almost all of Florida’s economic Lenders generally loan the entire premium utiliz- are several risks and considerations to take into suranceStrategiesGroup.com. pillars like one of those crazy domino videos. ing the policy cash value as collateral and usual- account before moving forward with a premium ly credit the cash value between 90% and 100% financing transaction.” ABOUT THE AUTHOR Hotels. Retail. Cruise lines. Airlines. Bars. Restaurants. as the first form of collateral. In some situations, According to Seltzer, risks can be personal, such Jay C. Judas, JD, M.Sc., is the CEO of Life In- Sports. Entertainment. Boating. loans are made where the policy is pledged as the as those related to a client’s net worth, liquidity and surance Strategies Group, LLC. Jay provides strategy, It’s no wonder that Wallet Hub ranked Florida 45th only collateral. Loan rates range from one-month posted collateral, or the risks can be policy or lending validation and structure to a wide range of individual to 12-month LIBOR plus 100 to 250 basis points related. “A client should first be able to financially and corporate life insurance clients. He founded Life in suffering economic impact from the pandemic. Some with relationship banks more apt to offer more fa- qualify for the loan and then be able to withstand if Insurance Strategies Group to offer unbiased and prag- businesses will never recover, but there are plenty of vorable loan terms and interest rates. conditions change, including loan and policy inter- matic advice to enhance and simplify the distribution, examples of ingenuity, grit and giving back. The loan is usually paid back from the policy’s est rate fluctuations and changes in lending terms. sale and purchase of life insurance. His company does cash value at a point in the future – usually after At a minimum, prospective clients should expect to not sell products.

10 MAY 2020 • www.sfbwmag.com CORONAVIRUS: COVER STORY GET THE HELL OUTTA HERE BUSINESSES DEVELOP STRATEGIES TO SURVIVE AND HELP

BY KEVIN GALE

COVID-19 knocked down almost all of Florida’s economic pillars like one of those crazy domino videos. Hotels. Retail. Cruise lines. Airlines. Bars. Restaurants. Sports. Entertainment. Boating. It’s no wonder that Wallet Hub ranked Florida 45th in suffering economic impact from the pandemic. Some businesses will never recover, but there are plenty of examples of ingenuity, grit and giving back.

www.sfbwmag.com • MAY 2020 11 CORONAVIRUS: COVER STORY

Start with Print Basics in Deerfield sory Council, says he feels blessed to help Beach, which offers printing services, first responders and health care providers. digital services and promotional item. “They are putting their lives on the line Owner Craig Tanner says he expected for us, and we have to be there for them,” to do little business amid the pandemic, he says. “One of our clients emailed me but he has a large client base that in- today and said it better than I could: ‘Sav- cludes hospitals, nursing homes, hos- ing the community, one mask at a time.’ ” MONAT Global’s Ray Urdaneta pice foundations, police departments, MONAT Global Corp. of Miami de- and fire and rescue. cided to address the shortage of hand Amid the shortage of personal protec- sanitizer. the one organization spending right now, tion equipment, a hospital reached out The haircare and skincare company which creates many opportunities for all seeking long-sleeve disposable raincoats shifted productions at its Miami-Dade size companies.” after it couldn’t source them. plant to begin making 240,000 two-ounce HXECUTE of Miami Beach used its “We sourced 10,000 in two hours and bottles of hand sanitizer to give to govern- skills in the events management and delivered them in one week. When we ment entities, nonprofit organizations and logistics business to produce Miami asked about other needs, the floodgates customers. Beach’s first COVID-19 mobile testing opened about lack of PPEs,” he says. “In a time when so many things seem site for MedRite and the city of Miami “Since we are one of the largest suppliers out of our control, many companies and Beach. The project included drive-thru of promotional items in South Florida, individuals are looking for ways to help,” screening and testing tents, data collection we built up a large base of relationships said Ray Urdaneta, MONAT Global’s points, call center communications, venue overseas. We were able to source every- co-founder and CEO. “By pivoting our management and operations personnel. thing our clients needed. It’s been a very production during this unprecedented cir- “Our expertise inherently lies in rapid hectic couple of weeks, but we are getting cumstance, we are able to help tackle the response and being able to execute and through it and helping the community.” broad shortages in hand sanitizer, empow- manage small or large-scale operational Tanner, who is the treasurer and a board er our customers to protect themselves, infrastructures tailored to our partners’ member for the Broward Sheriff’s Advi- and limit the spread of the virus.” needs,” says co-owner Christine Cooper. The company was donating 20,000 bottles plus an addition 500 gallons of hand sanitizer to the Florida Division of Emergency Management and giving another 20,000 bottles to nonprofits across the country. Jack Siney, co-founder and chief revenue officer of GovSpend realized businesses were desperate for clients so he launched the free GovQuote.us website to help entrepreneurs, small and mid- size businesses quickly bid on products and service posted by federal, state and local government agencies. “Because of the COVID-19 crisis, the government buying process is now sim- pler and moving faster with some deals closing in hours vs. weeks or months, even for companies who have never sold to the government before,” he says. “With the $2 Craig Tanner sourced protective gear Jack Siney launched govquote.us trillion stimulus passed, the government is 12 MAY 2020 • www.sfbwmag.com CORONAVIRUS: COVER STORY

shell and impairs the virus’ reproductive older or in a high-risk category. cycle, and UV lamps have been used to COO Mark Campagnano says, “At sterilize pathogens since the 1800s. first we were just making it easier for our “We started using ozone and UV for users to outsource life’s tasks, like getting gym clothes, but find that it is extremely the car maintenanced, filling up the tank, relevant now to help calm fears and going to the post office, or picking up a deep-clean clothing in the face of today’s prescription, but with the swift onset of outbreak situation,” says OXXO CEO COVID-19, we are now providing the cru- Salmon Mishaan with OXXO’s self service kiosk Salomon Mishaan. cial service of access to the outside world The company also has a system that without leaving home.” “With the instant onset of coronavirus, and works well in an era of social distancing: the spontaneous requirement nationwide A 24-hour garment dropoff and pickup ki- for COVID-19 mobile testing sites, we osk, which functions like an ATM. Users were able to adapt our standard logistics open a slot facing the street and slide in framework to serve the medical needs of their clothes. Later, they return and pay an urgent care facility. Our ultimate goal for their order by credit card and get their is to help save lives, flatten the curve and clothes from an automated dispenser. replicate the initial site in Miami Beach in RedCap, which is based in Fort Lau- other areas across the region for munici- derdale, added Errands by RedCap to palities or other private facilities that may its previous business of providing driv- require logistics support.” ers who drive customers in their own BluGlacier changed its branding OXXO Care Cleaners, an eco-friend- cars, such as serving as a designated ly garment cleaning franchiser based in driver. Hollywood, had just adopted the use of The personal concierge/errand driv- The pandemic spurred Miami-based ozone and ultraviolet light treatment ers can now use their own cars for any BluGlacier, one of the largest Chilean for clothes cleaning when the pandemic service, such as shopping and drugstore salmon importers, to accelerate plans emerged. pickups, restaurant takeout and delivery. to launch a new website and emphasize Company leaders realized the same No-contact protocols also are offered. The the company’s wellness strategy, with a techniques that defeat bacteria, fungi and service was starting at $20 an hour. For tagline of “Eat Blue, Live Vibrantly.” protozoa in clothes also can inactivate a limited time, RedCap was waiving its “Our new positioning aligns with our viruses. Ozone damages the viral protein monthly membership fee for users 65 or mission to disrupt the industry and approach food as a wellness tool. Salmon is not only a healthy source of protein and omega-3, but it’s also easy to cook and integrate in a healthy diet,” says BluGlacier CEO Sebastian Goycoolea. The website includes educational blog posts and recipes from celebrity chefs. “We realize the importance of wellness and transparency now more than ever. As our globe faces a new reality, we wanted to be a continued resource and encourage people to make healthier choices and cook at home,” says Evelyn Torres, BluGla- cier’s chief marketing officer. With everyone stuck at home, Den- Hxecute handled logistics and setup of the first covid-19 mobile testing station in Miami beach ison Yachting started offering “A Boat Show From Your Couch.” Visitors www.sfbwmag.com • MAY 2020 13 CORONAVIRUS: COVER STORY

were offering special deals. The continued success of companies like Denison is important because the ma- rine industry has an estimated $12 billion economic impact in South Florida. Restaurants have placed plenty of challenges amid the pandemic and tweaked their business models while also helping laid-off employees or essential workers. Brothers Robert and Victor Ghi- ni, owners of Barcello in North Palm Beach and Limoncello in Palm Beach Gardens, on March 18 voluntarily closed their doors and changed their business model to curbside pickup and delivery. While that’s not totally unusual these days, they added an extra twist—a virtual tip jar called “Help Your Favorite Servers and Bartenders.” It allows customers to give money directly to their fa- Diya delivery to jackson memorial vorite servers and staff via their individual Almond offered pick up and employee deliveries Venmo accounts. could access what was called the largest The brothers also gave their kitchen library of walkthrough videos and vir- staff enough food to feed a family of four many doctors were getting donated tual tours of boats available online, as for three weeks and were inviting staff meals, but workers were not. well as live chats with boating experts, members to a “family dinner” every night “An ER nurse actually made the recom- brokers, and captains and yachting per- at 4:30 p.m. at both restaurants while prac- mendation to us,” says Diya owner Valerie sonalities. ticing social distancing or giving food to Slone. “The lab is at just as much risk “Our team of yacht brokers, marketing go. as them, coming into close contact with staff and admins have worked around the Diya Indian Kitchen, a new restau- specimens testing for COVID-19, but eas- clock to make this virtual boat show pos- rant in Miami Beach’s Sunset Harbour, ily forgotten and bypassed with all of the sible for clients to enjoy in the safety and surprised workers at Jackson Memori- other food donations.” comfort of their homes,” says President al Hospital and Mount Sinai Medical Diya Indian also delivered to Camil- Bob Denison. A lot of the biggest brands Center with free lunches after learning lus House. Eric Lemonides is co-owner of Al- mond, which just opened a new restaurant in Palm Beach and had to close restaurants in New York City and the Hamptons on Long Island. “This is a time of tremendous uncertainty,” he says. “It’s reminiscent of post- 9/11 in New York City.” He and co-owner executive chef Jason Weiner wanted to keep their team employed, so they were taking orders based on what was available from suppliers that day and then doing deliveries. “We decided not to use a third-party delivery service, so our staff can earn at least some income right now—that’s what is most important to us,” Lemonides says. “Our hope is that we come back strong and give our loyal patrons the fun, laid- Denison yachting offered virtual boat shows back experience that we’re known for.” ♦ 14 MAY 2020 • www.sfbwmag.com CORONAVIRUS: COVER STORY Uncertain times were offering special deals. call for experts you can trust. The continued success of companies like Denison is important because the ma- rine industry has an estimated $12 billion economic impact in South Florida. Restaurants have placed plenty of challenges amid the pandemic and tweaked their business models while also helping laid-off employees or essential workers. Brothers Robert and Victor Ghi- ni, owners of Barcello in North Palm Beach and Limoncello in Palm Beach Gardens, on March 18 voluntarily closed their doors and changed their business model to curbside pickup and delivery. While that’s not totally unusual these days, they added an extra twist—a virtual tip jar called “Help Your Favorite Servers and Bartenders.” It allows customers to give money directly to their fa- Diya delivery to jackson memorial vorite servers and staff via their individual Almond offered pick up and employee deliveries Venmo accounts. could access what was called the largest The brothers also gave their kitchen library of walkthrough videos and vir- staff enough food to feed a family of four many doctors were getting donated tual tours of boats available online, as for three weeks and were inviting staff meals, but workers were not. well as live chats with boating experts, members to a “family dinner” every night “An ER nurse actually made the recom- brokers, and captains and yachting per- at 4:30 p.m. at both restaurants while prac- mendation to us,” says Diya owner Valerie sonalities. ticing social distancing or giving food to Slone. “The lab is at just as much risk “Our team of yacht brokers, marketing go. as them, coming into close contact with WE KNOW DEBT. staff and admins have worked around the Diya Indian Kitchen, a new restau- specimens testing for COVID-19, but eas- clock to make this virtual boat show pos- rant in Miami Beach’s Sunset Harbour, ily forgotten and bypassed with all of the sible for clients to enjoy in the safety and surprised workers at Jackson Memori- other food donations.” comfort of their homes,” says President al Hospital and Mount Sinai Medical Diya Indian also delivered to Camil- Bob Denison. A lot of the biggest brands Center with free lunches after learning lus House. WE CAN HELP. Eric Lemonides is co-owner of Al- mond, which just opened a new restaurant in Palm Beach and had to close restaurants in New York City and the Hamptons on Long Island. “This is a time of tremendous uncertainty,” he says. “It’s reminiscent of post- 9/11 in New York City.” He and co-owner executive chef Jason Weiner wanted to keep their team employed, so they were taking orders based on what was available from suppliers that day and then doing deliveries. “We decided not to use a third-party delivery service, so our staff can earn at least some income right now—that’s what is most important to us,” Lemonides says. “Our hope is that we come back strong Visit Debt.com to explore your debt relief options and give our loyal patrons the fun, laid- Denison yachting offered virtual boat shows back experience that we’re known for.” ♦ or call 866-801-DEBT (3328) www.sfbwmag.com • MAY 2020 15 CORONAVIRUS:PANDEMIC GETTING THROUGH

SFBW’s sister publication Lifestyle reached out to businesspeople all over South Florida—in categories ranging from retail and real estate to medical and automotive—and asked three questions: How did COVID-19 BUSINESS AS and the shutdown impact your business; how did you position your business in the interim; how will experiencing this unprecedented pandemic change the way you conduct business moving forward. Here UNUSUAL are their answers. BY KEVIN KAMINSKI

GLICK SKIN INSTITUTE BRAD P. GLICK, DO, MPH Business backstory: Celebrating 24 years in the industry, In the interim: “The transition to telehealth for all physi- Glick specializes in medical, surgical and cosmetic derma- cians is going to be dramatic. One positive amid the pan- tology. Glick (his offices are in Margate and Wellington) demic is being able to still meet needs; my patients have also is director of the program for dermatology residents been so appreciative that we reached them, even virtually. at Larkin Community Hospital (Palm Springs campus in … I do have a research arm [of the business] as well, so Hialeah)—and vice president of the Florida Society for I’m obligated through the sponsors of the trials and the Dermatology and Dermatologic Surgery. (glickskin.com) FDA to either carry out clinical research remotely or see The impact: “This is something I never thought I’d see our study patients using extreme precautions.” in my lifetime. My heart bleeds for the people who have The future: “From a medical perspective, we’re going Brad Glick died already and the families that are left behind. … As to look at our patients, and they’re going to look at our far as my practice, we followed the governor’s mandate practices, differently. For example, our assessments for by doing essential dermatology—elective procedures, patients will change. We’ll ask [screening] questions that like Botox and fillers, were out the door. We cancelled we never did before we faced a novel virus. From a busi- [non-essential] appointments to move up our patients with ness perspective, we’ll have to have different safeguards skin cancer so we could treat them. We didn’t want pa- in place. We’ve all had to scramble to rely on the gov- tients having that worry factor over several months [on top ernment. We’ll need backup reserves in place for another of coronavirus concerns]. Initially, I furloughed about 20 potential virus. We’ll need different insurances; the big staff members between my two clinics, but that went up to insurance companies probably will have to come up with 30 after we closed [in late March]. We’re doing everything pandemic plans to provide us funds that we can tap into. telemedically. I kept two office managers and two or three These are unprecedented times, and not everyone has all key staff members for emergencies.” the answers yet.”

SPECIAL NEEDS GROUP INC. ANDREW GARNETT, PRESIDENT AND CEO Business backstory: The Dania Beach-based business is a leading global provider of special-needs equipment furlough [much of] our staff. There simply isn’t much if rentals, including wheelchairs, scooters and oxygen. The anything for them to do. We also looked to cut other costs company is closely tied to the travel industry, providing wherever we could. … All of these decisions are made to service in 215 ports and cities in 68 countries for patrons make it through the short term and to ensure the longevity visiting resorts, going on cruises, attending conventions, of the company.” etc. (specialneedsatsea.com) In the interim: “We are just catching up on anything The impact: “We’re a company uniquely working in pending and making sure that we will be prepared for two different spaces. The first and most-affected side of the possible avalanche of orders once people can visit the Andrew Garnett our business is travel-related. With no cruises sailing and world in person and not just virtually.” [much of the] planet not traveling, that part of our busi- The future: “This experience has taught me that our business is basically on pause. The other side of the business is ness needs to diversify more. I know that no one could HABITUS FURNITURE medical equipment. We have received calls—from [peo- have predicted that the entire travel industry would be ple in] California [and as far away as] Italy—asking about put on hold, but the realization of that happening has availability of our oxygen equipment and hospital beds. enlightened me. Having more than one stream of in- I hope they’re not needed, but we’re preparing them just come would be ideal right now. Check back with us, in case. … We didn’t shut down because I see this as a and you will see new products and services being of- temporary situation. However, I did have to temporarily fered in the near future.” 16 MAY 2020 • www.sfbwmag.com CORONAVIRUS:PANDEMIC GETTING THROUGH

DAOUD’S FINE JEWELRY PATRICK DAOUD, OWNER Business backstory: A family tradition that dates back at the store—and we’re still paying all of them [with to 1895, the Fort Lauderdale-based business remains a no time limit].” fixture on the fine jewelry scene, offering an always-im- In the interim: “We’ve been in the jewelry business for pressive inventory of pieces (rings, necklaces, earrings, 125 years through five generations. The store has been timepieces) from a variety of creative designers, as well through [its share of] ups and downs, but we have weath- as antique selections. ered many storms—and we’ll continue our success once The impact: “For the health and wellness of our this difficult period passes. Our plan is to assist and help clients and employees, we decided to have appoint- our customers and community in any way we can—in- ments only for those looking to sell their jewelry for cluding through the many charities and organizations Patrick Daoud financial needs during these times of rising unem- [with which] we are involved.” ployment. We also are continuously contacting cus- The future: “This pandemic will change the lives of tomers regarding their repairs, special orders and new many Americans and businesses. Here at Daoud’s, we see orders—and we’re still utilizing our online presence it as an opportunity to think of new and inventive ways for to create sales. We always want to be available for all us to continue our business. We plan to support our cus- client needs, which is why I give my cellphone num- tomers 24 hours a day, seven days a week [with] excellent ber to customers. All told, Daoud’s has 17 employees service and quality merchandise and products.”

MICHAEL BELTRAN CHEF/OWNER OF ARIETE Business backstory: The Miami native, who cut his culi- percent of previous sales [in early April], so we had to lay nary teeth under the tutelage of kitchen luminaries Norman off about 100 employees. [Note: At press time, Beltran’s Van Aken and Michael Schwartz, opened Ariete (arieteco- restaurants were working with a bare-bones staff.] conutgrove.com) in 2016. The Coconut Grove restaurant In the interim: “First and foremost, [when the crisis fuses the flavors of his Cuban upbringing with New Amer- winds down], we want to bring back the staff we had to let ican cuisine. He’s since opened two more Coconut Grove go. Those people are the real backbone of this business. spots—Chug’s (a Cuban diner; chugsdiner.com) and Navé We already have prepared for what we believe will be a (seafood-centric Italian fare; navemiami.com). very slow climb back to where we once were. We sadly The impact: “Our liquor license allows us to sell wine/ saw very slow days early on, so we know what it takes to Michael Beltran spirits/tobacco and pre-batched sealed cocktails, and all grind it out and create business once again. We have faith of that helped tremendously. Also, all three of my restau- that we have the team to do so when we get there.” rants are within a two-block radius of each other, which The future: “It would be foolish to say what will change simplified operations and allowed me to embrace a bun- right now. We are still in this; our culture, community, ker mentality and better control everything from one lo- world business, it’s all changing daily. We will have to cation. Even with staying open, our traffic was about 20 bend but not break when this is over.”

HABITUS FURNITURE JAVIER MALIK, OWNER Business backstory: The contemporary furniture store, sides the personalized customer service, is the large inven- launched in 2003, works with designers and manufac- tory of design products that we keep in stock. Whenever turers in Europe, Asia and South America to develop its the crisis winds down, we’re prepared to deliver and in- own unique furniture collections. Habitus has locations in stall. During the shutdown, we have done virtual meetings Aventura and Doral. (habitusfurniture.com) with our designers and manufacturers to create and devel- HABITUS FURNITURE The impact: “Our showrooms in Aventura and Doral op new design furniture lines that will be arriving when closed to the public due to [COVID-19] safety regula- this passes.” tions, but our design consultants [remain] in contact with The future: “We took this situation to improve and customers and interior designers remotely. Moreover, cus- refresh our website and prepare our e-commerce plat- tomers are sending us floor plans, and our design consul- form. Regarding our delivery service, we have intro- tants are preparing drawings at home with the proposals.” duced safety measures that will stay as part of our In the interim: “One of the advantages of Habitus, be- everyday procedures.” www.sfbwmag.com • MAY 2020 17 CORONAVIRUS:PANDEMIC GETTING THROUGH

ALLIED KITCHEN & BATH ZOLA KELLER LAS OLAS BILL FEINBERG, PRESIDENT ZOLA KELLER, OWNER retail sales [and new projects] would come to a halt. Second, Business backstory: For the past 35 years, the Fort Lauder- Business backstory: The popular designer and retailer is will take place when the threat of coronavirus passes. Peo- we felt it necessary to follow [Center for Disease Control dale-based business (and showroom) has provided kitchen, renowned for her special occasion gowns, including cus- ple realize it will be tough getting an appointment after we and Prevention] guidelines, and allow our people to socially bath and home remodeling services to its clients. Its team tom-created wedding dresses and bridal accessories. In ad- reopen. We are fortunate. Unlike businesses like restaurants, distance themselves from the rest of the community, in an of experienced designers has access to top-of-the-line ap- dition, her Fort Lauderdale-based boutique features an ar- our customers still need that product they were going to pur- effort to safeguard our employees.” pliances, decorative hardware/plumbing, and tile/stone. (al- ray of chic cocktail dresses. Next to the main boutique is an chase while we were closed. Most of the potential sales for In the interim: “We know that people are cocooning in their liedkitchenandbath.com) outlet store, Zola Keller’s Secret Closet. (zolakeller.com) that period are pent-up, but they’ll still be there on the other homes—and spending more time than they have in years The impact: “Going through the recession during 2008 The impact: “COVID-19 forced us to furlough 11 em- side of the pandemic. Of course, this business pause means looking at their old kitchens and bathrooms. For many, now and 2009 was something that I never thought I’d have to ployees. Early on, before public health officials realized many of our customers will have had the [window] to pur- could be the perfect time to start planning; they have time go through again; we spent several years digging out of that the severity of this disease or took the step of ordering chase their special-occasion gown substantially shortened, mess and rebuilding and eventually becoming one of the on their hands. So, we have set up processes to meet with Bill Feinberg Zola Keller mandatory nonessential business closures, we implement- perhaps taking away time we›d need to special-order a gar- clients virtually—through FaceTime and Zoom—and see premier remodeling companies in South Florida. Now, we ed emergency business continuity plans out of an abun- ment. So, we are purchasing inventory to expand their op- exactly what’s in their home and talk to them about their find our [business] in new territory, trying to figure out the dance of caution. This included keeping our four seam- tions for immediate purchase. Normally, this is not the time plans. We’re also working on a virtual tour of our show- next move in order to make sure that we can survive. In stresses in the store to handle any needs that might come of year when we would purchase new inventory.” room. We’ve already begun interacting and designing with [late March], we laid off about half of our 35 [in-house em- up for customers who were picking up their previously The future: “We are looking at several new approaches some clients, which will set us up for success the moment ployees], reducing staff in the offices and showroom, while purchased gown.” to help customers manage the uncertainty that arises when we can all get back to work.” still keeping the other 30-plus people in the field working In the interim: “We are already receiving many requests something like this happens in the future. One example: The future: “I think it’s going to take quite some time for on current job sites. Most of the projects that we’re working to reschedule missed appointments and new requests for We will offer a return policy for our customers’ special people to get comfortable interacting with one another, in on, or that we chose to stay working on, are in homes that future appointments. Brides will always want that perfect orders and in-store inventory purchases if their special the way we were used to before COVID-19. I see us doing are empty and unoccupied. We made our decisions for two gown, even if the ceremony happens over Zoom. Other event is permanently canceled due to a future disaster like more virtual meetings and making more presentations over reasons: First, to hold on to our savings and reserves that customers tell us they are anticipating the celebrations that the one we’re in now.” we put away, knowing that without showroom traffic, our the internet.” LAUNCH POTATO DENTALMED ASSOCIATES CHRISTINE YAGED, FOUNDER FEDERICO DIEZ (PROSTHODONTIST) AND JUAN C. ARROYO (ORAL AND MAXILLOFACIAL SURGEON) Business background: The Delray Beach-based tech com- headquarters are in downtown Delray, half our team already Business backstory: The Miramar-based practice, led by and/or when they get to our office. If they exhibit or company that builds and scales digital brands owns and operates was working remotely pre-pandemic. … All of our team Diez and Arroyo, offers everything from general dentistry plain of any [coronavirus] symptoms, we politely resched- websites in a wide range of verticals, from personal finance members are still working [and all remotely].” and prosthodontics (aesthetic restoration and replacement ule them and treat [their dental issue] with medication to casual games. Launch Potato, honored as one of the fast- In the interim: “We constantly monitor risk and strategical- of teeth) to implant dentistry and countless other state-of- to mediate their emergency symptoms.” est-growing tech businesses and viewed as a leader in rely evaluate our businesses; we will continue to do so as the the-art specialty services. (dentalmedassociates.com) In the interim: “Dentalmed Associates wants to sup- mote working, employs 50-plus team members across nine crisis winds down. The strength of our diversified portfolio The impact: “We have increased our disinfecting proto- port our patients by offering free consultations and countries. (launchpotato.com) has become even more apparent to us, and we will double Juan Arroyo and Federico Diez cols of all surfaces, and we are minimizing [waiting room x-rays for the month of May [if conditions and the The impact: “Because our businesses are so diversified, down on the businesses and people we have now.” interaction] by trying to accommodate patients at specific situation permits]. … As part of the health Teamwork our consumers vary demographically, geographically and The future: “Cash flow and credit management have al- times—and asking anyone accompanying these patients Force, we also can help minimize emergency room vis- Christine Yaged economically. When there are macroeconomic changes that ways been a top priority. However, given the turmoil, we are to wait outside. We’ve also been treating the air inside our its [pertaining to] dental situations, [thus diminishing negatively affect the consumers of one of our businesses, more aware of the risk of extending credit to our partners. office with natural essential-oil diffusers that promote a the chances of being] infected by the virus during an we can pivot to other brands in our portfolio that have more While we are one of the lucky few companies that could healthier environment and help boost the immune system. ER visit.” opportunity. For example, our personal finance site, Fi- transition to working fully remote relatively easily, we also We’ve minimized our operation hours [9 a.m. to 1 p.m.] The future: “The way we conduct our business will nanceBuzz, is directly affected by the pullback of credit recognize that the current strength of being digital could be and days [Mondays, Wednesdays, Fridays]. Our office is be greatly impacted because we can clearly see how and lending due to COVID-19’s impact on the economy. a weakness if something catastrophic happened that affect- open to our emergency patients only—and to other emer- everyday life has been affected by this pandemic. If we However, with more people at home and online, our casual ed the internet for an extended period. As a takeaway from gency patients from dental offices that have decided not to don’t accept and learn from this new era of changes, games business is seeing increased traffic. … We have been this experience, we will develop a business disaster recovery remain open. We actively screen all our patients by phone then we have learned nothing from this.” a distributed company from day one; while our corporate plan for such an event.”

Four prominent Broward real-estate professionals COMPASS POINTS from Compass discuss how COVID-19 has impacted their business ANDY ZIFFER DONDI HOPKINS The present: “My business model is balanced between consulting The future: “Prior to the pandemic, the market already had shift- The present: “We are a very hyperlocal and community-oriented team nity together. We have also increased our digital footprint in order to buyers and sellers, as well as diversified between condos, townhomes, ed to technology. For example, buyers and sellers have estimated that loves face-to-face interactions at local events. We were scheduled stay in front of people while they search the web and the different social single-family resales and new construction; not all our eggs are in one property values with historical information at their fingertips. Dig- to participate in a Plantation family movie night and food truck events media platforms.” basket. I had transactions in the pipeline previous to the pandemic, ital signatures have become commonplace. During the pandemic, in March and April; the events were all canceled. As we continue to The future: “We will continue to work to increase our members on the however, the volume of traffic has slowed. As my firm, Compass, is buyers and sellers have been further engaged in technology via work from home until further notice, we had to strategize and figure different Facebook groups we manage and utilize this platform to help technology-based, the adjustments to accommodate buyers and sell- screen-sharing and virtual meetings. My business will continue to out how to continue being connected to our community. We have others connect by organizing in-person events. Organic reach on Face- ers digitally and remotely has been effortless. I’ve taken advantage evolve with the highest level of technology while never sacrific- built Facebook groups to connect small business owners and mutually book is in decline; Facebook will be shifting its emphasis to groups, of personal virtual showings by walking buyers through a home, and ing the personal attention I extend to my clientele.” (compass.com/ support each other. We have another team member building a hockey therefore, we will continue to adapt to the times in order to provide sharing details down to the construction of cabinets and drawers.” agents/andrew-ziffer) mom’s group as an avenue to bring the South Florida hockey commu- as much value as possible to our community.” (thehopkinsteam.com) 18 MAY 2020 • www.sfbwmag.com CORONAVIRUS:PANDEMIC GETTING THROUGH

ZOLA KELLER LAS OLAS ZOLA KELLER, OWNER Business backstory: The popular designer and retailer is will take place when the threat of coronavirus passes. Peo- renowned for her special occasion gowns, including cus- ple realize it will be tough getting an appointment after we tom-created wedding dresses and bridal accessories. In ad- reopen. We are fortunate. Unlike businesses like restaurants, dition, her Fort Lauderdale-based boutique features an ar- our customers still need that product they were going to pur- ray of chic cocktail dresses. Next to the main boutique is an chase while we were closed. Most of the potential sales for outlet store, Zola Keller’s Secret Closet. (zolakeller.com) that period are pent-up, but they’ll still be there on the other The impact: “COVID-19 forced us to furlough 11 em- side of the pandemic. Of course, this business pause means ployees. Early on, before public health officials realized many of our customers will have had the [window] to pur- the severity of this disease or took the step of ordering chase their special-occasion gown substantially shortened, Zola Keller mandatory nonessential business closures, we implement- perhaps taking away time we›d need to special-order a gar- ed emergency business continuity plans out of an abun- ment. So, we are purchasing inventory to expand their op- dance of caution. This included keeping our four seam- tions for immediate purchase. Normally, this is not the time stresses in the store to handle any needs that might come of year when we would purchase new inventory.” up for customers who were picking up their previously The future: “We are looking at several new approaches purchased gown.” to help customers manage the uncertainty that arises when In the interim: “We are already receiving many requests something like this happens in the future. One example: to reschedule missed appointments and new requests for We will offer a return policy for our customers’ special future appointments. Brides will always want that perfect orders and in-store inventory purchases if their special gown, even if the ceremony happens over Zoom. Other event is permanently canceled due to a future disaster like customers tell us they are anticipating the celebrations that the one we’re in now.” LAUNCH POTATO CHRISTINE YAGED, FOUNDER Business background: The Delray Beach-based tech com- headquarters are in downtown Delray, half our team already pany that builds and scales digital brands owns and operates was working remotely pre-pandemic. … All of our team websites in a wide range of verticals, from personal finance members are still working [and all remotely].” to casual games. Launch Potato, honored as one of the fast- In the interim: “We constantly monitor risk and strategical- est-growing tech businesses and viewed as a leader in rely evaluate our businesses; we will continue to do so as the mote working, employs 50-plus team members across nine crisis winds down. The strength of our diversified portfolio countries. (launchpotato.com) has become even more apparent to us, and we will double The impact: “Because our businesses are so diversified, down on the businesses and people we have now.” our consumers vary demographically, geographically and The future: “Cash flow and credit management have al- Christine Yaged economically. When there are macroeconomic changes that ways been a top priority. However, given the turmoil, we are negatively affect the consumers of one of our businesses, more aware of the risk of extending credit to our partners. we can pivot to other brands in our portfolio that have more While we are one of the lucky few companies that could opportunity. For example, our personal finance site, Fi- transition to working fully remote relatively easily, we also nanceBuzz, is directly affected by the pullback of credit recognize that the current strength of being digital could be and lending due to COVID-19’s impact on the economy. a weakness if something catastrophic happened that affect- However, with more people at home and online, our casual ed the internet for an extended period. As a takeaway from games business is seeing increased traffic. … We have been this experience, we will develop a business disaster recovery a distributed company from day one; while our corporate plan for such an event.”

DONDI HOPKINS The present: “We are a very hyperlocal and community-oriented team nity together. We have also increased our digital footprint in order to that loves face-to-face interactions at local events. We were scheduled stay in front of people while they search the web and the different social to participate in a Plantation family movie night and food truck events media platforms.” in March and April; the events were all canceled. As we continue to The future: “We will continue to work to increase our members on the work from home until further notice, we had to strategize and figure different Facebook groups we manage and utilize this platform to help out how to continue being connected to our community. We have others connect by organizing in-person events. Organic reach on Face- built Facebook groups to connect small business owners and mutually book is in decline; Facebook will be shifting its emphasis to groups, support each other. We have another team member building a hockey therefore, we will continue to adapt to the times in order to provide mom’s group as an avenue to bring the South Florida hockey commu- as much value as possible to our community.” (thehopkinsteam.com) www.sfbwmag.com • MAY 2020 19 CORONAVIRUS:PANDEMIC GETTING THROUGH

CORAL RIDGE YACHT CLUB ANSWERS COORDINATED BY MADISON BRACKEN, DIRECTOR OF MEMBERSHIP Business backstory: The venerable and private Fort Lau- gram, which has had overwhelming support and success. derdale-based yacht club, opened in 1947, continues to Chef Rich Goldberg and his culinary team have worked bridge the worlds of throwback elegance and modern con- diligently to ensure that the strictest standards have been veniences. The marina features 65 dock slips overlooking met—and that the best ingredients have gone into every Hugh Taylor Birch State Park; the facilities, slated to un- dish prepared. Our board of governors and management dergo renovations, include world-class dining and special team have utilized their limited staff in rotating positions, event capabilities. as needed, and have provided emergency care packages to The impact: “The Coral Ridge Yacht Club is unique by those who have been furloughed.” CORAL RIDGE YACHT TEAM comparison to other businesses in the hospitality Industry. In the interim: “With facility improvements happening Our members value the club’s long-standing traditions in the near future, the club is looking forward to welcom- and embrace each other as family. The pandemic actual- ing new members and embracing these changes.” ly has brought our CRYC community closer together and The future: “Similar to the CRYC’s hurricane plan, the has demonstrated how both members and staff value one key executives and management staff are preparing a di- another during this time of crisis. Due to the temporary saster plan which will be updated as more facts become closure of the club’s fine dining facilities, many of our known about COVID-19. This pandemic has been an ed- dining and kitchen staff were furloughed. However, our ucational experience for our industry and has refined the management team quickly developed a dining takeout pro- way the club operates its dining and other facilities.”

DYAN’S COUNTRY KITCHEN DYAN HARPEST, OWNER Business backstory: Since opening in 2006, this home- them if needed. I have about 14 full-time employees. style restaurant/deli has endeared itself to the Coral It was a good time to start some minor renovations at the Springs community. Harpest, who previously operated restaurant, so I utilized a few employees and family mem- Duffy’s Diner in Fort Lauderdale, pours her heart into bers skilled in these areas. Plus, it was a way to pay some the business, which, under normal circumstances, serves of them.” everything under the sun—breakfast offerings, wraps, In the interim: “We all will be ready to come back better, soups, sandwiches, salads, dinner entrées, desserts, ba- stronger and happy to be working again. I picture seeing gels, and even egg creams. (dyanscountrykitchen.com) many smiling faces. I will be offering some discounts and DYAN’S COUNTRY KITCHEN The impact: “I was hopeful to keep things going; we ad- special offers to my dear customers to welcome them justed our hours [of operation] to offset expenses, food back.” costs, labor, utilities, etc. I wanted to provide food for The future: “To have a small business in our communi- our guests and accommodate their individual circum- ty is a gift to me. To know my business well, not take a stances: older people, working people, special family day for granted, work hard and do things right is all sec- needs, isolated people. As the severity of COVID-19 ond-nature. But to provide jobs to others and to provide became clear, we transitioned to just myself and my something special to people and make their day—through chef, assisted at times by my deli man. We thought a delicious meal and a friendly this would keep us in a good operating position, but it hello—those are the true rewards. To know the sacrifices became too difficult to stay open for takeout, curbside that we all make is what connects us and makes us who and delivery. So, we shut down temporarily. I stayed we are. My family is at the heart of all I do, and we will in contact with my employees and began the process all continue to be the best versions of ourselves in all the of applying for relief grants and loans, so I could assist good times and the bad.” ♦ COMPASS POINTS PETER BARKIN & MARK GILMAN The present: “No one is ever truly ready for life changes as we practices and how we conduct ourselves. Working from home, we are going through, but we have been ahead of the curve for some rely more on virtual showings and virtual closings. Still, even though time, using the latest technology to market and communicate with we continue with new advances, there is nothing like picking up the our buyers, sellers and vendors. Selling real estate is a people busi- telephone, reaching out to someone and having an old-fashioned con- ness no matter what anyone says. We had adapted to social media, versation. Moving forward, we will be more aware of how we inter- FaceTime, WhatsApp and Zoom conference calls long before it act and the consistency of communication. We will be educating and was fashionable.” assisting our clients on the latest technology to assist them in buying The future: “Our major adjustment has been our day-to-day safety and selling a home.” (barkingilman.com) 20 MAY 2020 • www.sfbwmag.com Personalized advice Tailored backed by a global leader The Sylvia Wealth Management Group wealth strategies J.P. Morgan Securities

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www.sfbwmag.com • MAY 2020 21 CORONAVIRUS:PANDEMIC GOVERNMENT HELP

LOAN PROGRAMS, TAX CREDITS CAN HELP BUSINESSES IN NEED

BY KEVIN GALE

SMALL BUSINESS LOANS

The Paycheck Protection Program, part of the University’s College of Business, worries that some $2 trillion stimulus package, seeks to streamline business owners won’t apply because they don’t know the underwriting of loans to 30 million small busi- about the program or won’t understand the terms, in- nesses by allowing applicants to complete a two- cluding the forgiveness provision. page application and check boxes to verify the Owners should contact their business bankers and information. find out what paperwork will be needed, he suggests. Lenders will charge applicants only 0.5 percent inter- Owners should plan on submitting documentation on est, but the loans can be forgiven if the businesses main- payroll and other qualifying expenses, such as rent, as tain 75 percent of their workers for two months and use well as business tax returns for 2018 and 2019. Rebel Cole the money for such expenses as payroll and rent. Participating lenders can be found at sba.gov. For Rebel Cole, a finance professor in Florida Atlantic more advice, visit floridasbdc.org/disaster/

BRIDGE LOANS

The Small Business Development Center website can contact one of the two SBDC office in the region: (floridasbdc.org/disaster/ebl/) has information about Florida SBDC at FAU (serving Palm Beach and Broward the Florida Small Business Emergency Bridge Loan counties) 954.762.5235 or email [email protected]; or Flori- program, a short-term loan designed to help business da SBDC at Florida International University (serving Mi- owners bridge the gap between the time of impact and ami-Dade and Monroe counties) 305.779.9230 or email when the business has secured long-term assistance. [email protected] The state has allocated up to $50 million for the program For questions regarding the loan program, call and the deadline is May 8. DEO toll-free at 833.832.4494 or email FloridaBusi- For application assistance, South Florida businesses [email protected]. 22 MAY 2020 • www.sfbwmag.com CORONAVIRUS:PANDEMIC GOVERNMENT HELP

FAMILIES FIRST CORONAVIRUS RESPONSE ACT

Berger Singerman attorneys Mitchell W. Gold- up to $2,000 per employee (or $200 per day for 10 berg ([email protected]) and days), against the employer’s portion of Social Secu- Bryan S. Appel ([email protected]) rity taxes. outline the benefits of the Families First Corona- Family and medical leave: Employees of eligible virus Response Act: employers receive up to an additional 10 weeks of The act imposes a mandate on all private employ- expanded family and medical leave at two-thirds the ers with fewer than 500 employees (subject to some employee’s regular rate of pay, subject to a cap, if an exceptions where there are less than 50 employees) as employee, who has been employed for at least 30 cal- well as some public employers to provide paid time endar days, is unable to work due to a need to care for Bryan Appel off to employees who need leave for reasons connect- a child whose school or child care provider is closed ed to the COVID-19 pandemic. or unavailable for reasons related to COVID-19. El- Eligible employers will receive a tax credit equal to igible employers may receive a refundable tax credit 100 percent of the funds they spend, subject to certain for two-thirds of the employee’s regular rate of pay, limitations, on the paid leave through Dec. 31. up to $10,000 (or $200 per day for 10 weeks), against The act authorizes a tax credit, available imme- the employer’s portion of Social Security taxes. diately, for qualified sick leave wages and qualified All employees of eligible employers are eligible family medical leave wages. The tax credits are equal for two weeks of expanded family and medical leave to the maximum amounts that the employers must (items 1 and 2 above). However, only employees em- pay to employees under the law, subject to caps as ployed for at least 30 days are eligible for an addition- Mitchell Goldberg described below. al 10 weeks of paid family leave to care for a child The benefits can be summarized as follows: (item 3 above). Paid sick leave: Employees of eligible employers re- The attorneys, who practice with Berger Singer- ceive up to two weeks (80 hours) of paid sick leave man’s business, finance and tax team and the wealth at 100 percent of the employee’s regular rate of pay, Ppeservation and tax planning group, note that the up to $511 per day for 10 days, when the employee foregoing tax credits only apply to the eligible em- is quarantined and/or experiencing COVID-19 symp- ployer’s portion of Social Security taxes (i.e., taxes toms and seeking a medical diagnosis. Eligible em- imposed under Sections 3111(a) and 3221(a) of the ployers may receive a refundable tax credit for 100 Internal Revenue Code of 1986, as amended). Such percent of the employee’s regular rate of pay, up to tax credits do not apply to the applicable employee’s $5,110 in the aggregate per employee ($511 per day portion for which the eligible employer is required to for a total of 10 days) against the employer’s portion withhold and remit to the Internal Revenue Service. ♦ of Social Security taxes. Providing care: Employees of eligible employers receive up to two weeks (80 hours) at two-thirds the employee’s regular rate of pay, up to $200 per day for 10 MORE AT SFBWMAG.COM days, because the employee is unable to work because Attorneys Harsh Arora and of a bona fide need to care for an individual subject Nicholas M. Fiorello of Kel- to quarantine, to care for a child (under 18 years old) ley Kronenberg give insights whose school or child care provider is closed or un- into the must do’s and need- available due to COVID-19, and/or the employee is to-knows for SBA stimulus experiencing a substantially similar condition as spec- loans. https://bit.ly/2XeodaY ified by the Secretary of Health and Human Services. Eligible employers may receive a refundable tax cred- Harsh Arora Nicholas M. Fiorello it for two-thirds of the employee’s regular rate of pay, www.sfbwmag.com • MAY 2020 23 CORONAVIRUS: GOVERNMENT PROGRAMS

TWO KEY RECOVERY ACTS HIGHLIGHTS OF TWO MAJOR FEDERAL RELIEF ACTS. BUSINESSES SHOULD DOUBLECHECK WITH THEIR LAWYERS OR ACCOUNTANTS FOR FURTHER DETAILS ABOUT THESE AND OTHER PROGRAMS

BY KEVIN GALE CORONAVIRUS AID, RELIEF AND ECONOMIC SECURITY ACT The $2 trillion CARES Act offers help be obtained on wages paid or incurred from Tech challenges? to businesses, individuals, federal agen- March 13 through Dec. 31. How to get it: cies, state governments and local govern- Employers can be immediately reimbursed C3 is South Florida’s Leading Source for ments. Here are some of its provisions: for the credit by reducing their required de- IT, Telecom, Cloud Services, Security, • Paycheck Protection Program: The $350 posits of payroll taxeswithheld from employ- billion program encourages businesses to ees’ wages by the amount of the credit. To Regulatory Compliance and more. Our solutions are expertly engineered, backed keep workers employed by providing gov- learn more: https://bit.ly/3b2l4zq. We’ve got you covered ernment-backed loans from banks to busi- • Social Security payment deferral: Start- by award winning 24x7 bi-lingual support, and nesses. Businesses that meet certain criteria ing in April, all employers could defer paying won’t need to pay the loans back. How to get the 6.2 percent employer Social Security tax laser focused on YOUR business success. it: Contact your lender to see if they will par- through Dec. 31. The deferred amounts are ticipate or use this SBA search tool to find a then paid in equal amounts over two years lender: sba.gov/paycheckprotection/find with deadlines of Dec. 31, 2021 and Dec. 31, • SBA Economic Injury Disaster Loans: 2022. (Business that have a Paycheck Protec- The act further opens the SBA’s EIDL pro- tion loan forgiven are not eligible.) How to gram. How to get it: These loans come di- get it: Defer the payments until the end of the rectly from the SBA: covid19relief.sba. year and then pay by the end of year dead- gov/#/ lines in 2021 and 2022. • Business tax changes: The act includes the • Net operating losses: If your business had following highlights, but this is not a com- a net operating loss in tax years beginning in prehensive list: 2018, 2019 or 2020, the loss can be now be • Employee retention tax credit: Business- carried back, five years instead. This may im- es are eligible for an employee retention tax prove cash flow and liquidity. How to get it: credit if their operations were fully or partial- Talk to your accountant. ly suspended due to a COVID-19 shutdown • Interest expense deductions: For 2019 order or gross receipts declined by more than and 2020, the amount of interest expense 50 percent compared to the same quarter in businesses are allowed to deduct on their tax the prior year. Eligible businesses can get a returns is increased to 50 percent from 30 refundable 50 percent tax credit on wages percent of taxable income. How to get it: Talk up to $10,000 per employee. The credit can to your accountant.

FAMILIES FIRST CORONAVIRUS RESPONSE ACT The act requires some employers to • Paid family and medical leave: Capped at provide paid sick leave, paid family and $200 per day and $10,000 total per employee. medical leave, but offers tax credits for • Paid sick leave: Capped at $511 per day that and expanded unemployment insur- and $5,110 total per employee. The amount ance. (Small businesses with fewer than 50 drops to $200 per day and $2,000 total for employees are eligible for an exemption sick leave taken by an employee to care for from the leave requirements relating to a family member in quarantine or care for a CELEBRATING 10 YEARS school closings or child care unavailabil- child whose school has closed. 110 E. ATLANTIC AVENUE | SUITE 420 | DELRAY BEACH, FL 33444 ity where the requirements would jeopar- • How to get it: Businesses can keep money dize the ability of the business to contin- that they would have deposited for payroll TELEPHONE: 888-571-8190 | FAX: 561-982-4120 | WWW.C3CLOUD.COM ue.) After tweaks under the CARES act, taxes, including taxes withheld from all here are some key provisions: employees. ♦ /c3office /c3office “cloud computing concepts” MIAMI • CLEVELAND • LAS VEGAS • ATLANTA 24 MAY 2020 • www.sfbwmag.com Tech challenges?

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/c3office /c3office “cloud computing concepts” MIAMI • CLEVELAND • LAS VEGAS • ATLANTA www.sfbwmag.com • MAY 2020 25 CORONAVIRUS:PANDEMIC BANKRUPTCY

ALL ABOUT CHAPTER 11 AND TRYING TO AVOID IT ONE ATTORNEY GIVES ADVICE ON AVOIDING BANKRUPTCY, WHILE TWO MORE EXPLAIN WHY CHAPTER 11 CAN SAVE A BUSINESS STEPS TO AVOID BANKRUPTCY COURT

BY CHAD VAN HORN

Even in these most challenging times, there are base and sell off whatever’s dispensable—anything tried and true tactics to keep businesses out of the dire you’re not using, from extra computers to office space. straits of bankruptcy: • Pay high-interest, secured creditors first. While it’s • Evaluate your situation. Take a hard look at your in- always optimal to pay all creditors at least something, it’s come and expenses and figure out what it’ll take to keep best to pay down the creditors that cost you the most. It going. What are your absolute expenses? What kind of also makes sense to contact them to discuss reducing pen- income is necessary to make ends meet? alties and interest. • Create short-term cash flow by: • Talk to your team. Open lines of communication about Checking out the SBA. The Small Business Associ- the efforts you’re making to help the business succeed ation is offering new programs to assist companies in and protecting the team. Ask for their input—they might trouble as a result of the new social distancing restric- have better ideas than you do. tions. Check out their offerings at bit.ly/2XbsVGy. • Stay focused. Remember your mission and keep doing Chad Van Horn Look at your contracts, leases and loans. Start a what you do best. This is the time to be better than ever, conversation with these companies to renegotiate the to make it through this present difficulty and to be poised terms and lower monthly payments. for economic rebound. Talk to your vendors. Ask for longer payment terms to extend accounts payable. Chad Van Horn is the managing partner attorney at Kill the nonessentials. Determine what expenses pro- Van Horn Law Group, the largest bankruptcy firm in Bro- vide the least value and cut them. ward County, based on total cases filed. Visit its website Let go of unnecessary assets. Look hard at your asset at lawvh.com or call 954.637.0000 or 561.295.4871.

BUSINESSES IN A CASH CRUNCH COULD CONSIDER CHAPTER 11 BY JAMES D. SILVER AND ANDREW KAMENSKY Congress has recognized the devastating impact of contracts and leases. Yes, a Chapter 11 bankruptcy filing the COVID-19 pandemic on many small businesses, could be an opportunity to save a company, preserve jobs, has included a special provision in a new law enacted and provide a return to equity. in response to the pandemic. It increases the number of Bankruptcy is not a magic wand that can save each and businesses that will be able to take advantage of a new every business. Rather, it is a well-recognized legal tool more streamlined bankruptcy reorganization for small that can tip the scales in favor of a struggling business businesses—one that not only reduces expense and red and afford it an opportunity to be successful. A successful tape, but also makes it more likely that the small business Chapter 11 case that provides a debtor with a fresh start will be able to successfully reorganize. requires careful preparation. One of the primary concerns Although a bankruptcy filing has a negative stigma, in most Chapter 11 bankruptcy cases is cash flow. If there for decades, numerous public and private companies is a cash shortfall, which is common in bankruptcy, the across many industries experiencing financial problems debtor may need to obtain debtor-in-possession financ- have successfully reorganized their businesses in Chapter ing. Such financing is often attractive to lenders who are Andrew Kamensky 11 cases during difficult economic times. In a Chapter 11 granted special protections. case, a debtor might be able to restructure its business by Some of the advantages of filing for Chapter 11 reducing debt, obtaining financing, resolving expensive bankruptcy include: and time-consuming litigation, and rejecting burdensome • Business can continue to operate while formulat- 26 MAY 2020 • www.sfbwmag.com CORONAVIRUS:PANDEMIC BANKRUPTCY

ing a plan to pay off debts. This means that the business section to Chapter 11 of the Bankruptcy Code, creating name, goodwill, and customer base are not lost—referred a faster and less expensive reorganization path for small to as “preservation of going-concern value.” business debtors—and one that makes it more likely that • Chapter 11 plan can discharge debtor’s debts and the business will be able to successfully reorganize. allows debtor to partially pay back unsecured debts Prior to Congress’ March 27 passage of the Coronavi- rather than in full. rus Aid, Relief and Economic Security Act in response to • Automatic stay allows a debtor to take a deep the pandemic, to be eligible, a debtor’s total debts must breath, prohibiting creditors from collecting on debts. have been less than $2.726 million, with at least one-half This injunction immediately stops all lawsuits, foreclo- of the debt coming from business activity. In a critical sures, repossessions, bank levies, wage garnishments, change designed to allow many more businesses to take and other collection activities. advantage of SBRA, under the CARES Act, Congress • Freedom to restructure secured debts where pay- has nearly tripled the debt limit from $2,726 million to ments can be lower and spread out over a longer pe- $7.5 million. Congress may have included this provision JAMES D. Silver riod of time. as a bailout of sorts for small businesses dealing with the • Ability to reject unprofitable leases and contracts, devastating economic impact of the pandemic. Howev- and cancel the debtor’s obligation to perform thereunder. er, this increased debt limit will only be in effect for one • Ability to avoid and recover certain bank levies, year. Therefore, the newly qualifying businesses must use lien notices, and transfers of estate property that oc- it or lose it. Only the small business debtor may file a curred prior to the bankruptcy filing. Chapter 11 plan, with the debtor filing its plan within 90 • Temporary deferral of making certain rent or days from the date it files its bankruptcy petition. debt installment payments. • Sell property free and clear of liens and interests. James D. Silver and Andrew Kamensky are partners • Extend payment of unsecured tax debts for up to at Kelley Kronenberg in Fort Lauderdale, and handle five years. matters related to business bankruptcy and commercial Finally, the Small Business Reorganization Act of litigation. If you have questions, text James Silver at 2019, which took effect on Feb. 19, has added a new sub- 954.281.7970. ♦

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www.sfbwmag.com • MAY 2020 27 CORONAVIRUS: INSURANCE

PANDEMIC WILL LEAD TO LEGAL FIGHT OVER BUSINESS INTERRUPTION CLAIMS

BY KEVIN GALE

28 MAY 2020 • www.sfbwmag.com CORONAVIRUS: INSURANCE

Law firms and consulting companies are gearing up for a wave of claims surrounding COVID-19 and business insurance coverage. Expect a lot of arguments over whether business interruption insurance covers a pandemic. “That’s the question,” says Louis J. Terminello, a partner and chairman of the hospitality, alcohol and leisure industry group at Greenspoon Marder. “Every policy is a little different. The wording is a little different. If you ask the insurance companies, they are going to say no. If you ask those of us who represent industry, we are going to say yes. It really depends on the Anita Byer Louis J. Terminello wording of the policy.” It’s such a hot topic that some state legislators have introduced bills saying has been mentioned in emergency or- in China and Italy that were caught up in COVID-19 claims should be covered even ders in Miami-Dade and Broward quarantines. if there are virus exclusions in policies. counties, he points out. Those damages In a Wall Street Journal article that in- Terminello was asked if he has heard can trigger coverage for income-related cluded comments from Kirk Pasich, some about a legislative move in Florida and said, losses, Odess says. attorneys said policy ambiguities are often “I have not, but similar legislation is sorely There are also a lot of questions regarding decided by courts in favor of the insured. needed in Florida or on the federal level. additional coverage for other types of dam- Precedents includes cases involving asbes- Right now, we are moving ahead across the ages—for instance, many business owners tos and flood insurance claims under home- country reviewing many hospitality clients’ will have to hire a mitigation contractor to owner policies after Hurricane Katrina. business interruption insurance policies and clean the property after staff has dispersed, Another legal issue concerns leases and helping our clients navigate through them.” Odess says. “Not only is this further evidence language about allowance of payment de- Anita Byer, president of Setnor Byer that COVID-19 causes physical damage, ferrals for acts of God or force majeure, Insurance and Risk in Plantation, said much like asbestos did, but those costs may Terminello says. Force majeure means a standard business interruption policies actually be recoverable.” contract can’t be honored because of rea- typically contain exclusions for bacteria, While an insurance company might say sons beyond the control of a signee. viruses and other pollutants. a policy is not intended to provide coverag- Terminello argues that the pandemic A March 31 article by Eater Chicago said es for virus-related types of damages, that does fall under force majeure. Hospitali- six Chicago bar and restaurant groups filed could be a matter of semantics, he contends. ty clients may be referred to the firm’s real suit against Society Insurance, alleging the “Many of these policies may actually pro- estate arm to review leases and negotiate insurance company is wrongfully denying vide coverage for virus-related damages.” with landlords about rent abatements and payouts because restaurants and bars didn’t Odess says his company, which is active deferrals under the lease. suffer property damage or loss during the in the New York area; Washington, D.C.; “If not appropriate, we will beg,” he pandemic. The insurance company declined and northern Florida has reversed over says. to comment. $100 million of claims that were previous- Determining whether a force majeure “The industry is known for coming out ly denied or gotten clients paid without the clause can be invoked is a fact-intensive in- loud and fast, and that’s what they did in need for litigation. quiry, as it depends on the specific language response to COVID-19—in order to dis- However, law firms are preparing to of a contract, a briefing on the Akerman law suade policy holders/business owners fight for claims and litigate if necessary. firm website says. Generally, force majeure from pursuing their loss and recovery,” Fort Lauderdale-based Greenspoon clauses are interpreted narrowly. says Dan Odess, president of GlobalPro, a Marder has teamed with the Pasich Under Florida law, a party seeking to construction and insurance specialty firm law firm to assist clients in addressing invoke a force majeure clause must show located in Coral Gables. “They have done insurance coverage concerns for eco- that the event was unforeseeable, and a huge disservice to our business com- nomic losses and litigation associated that the event occurred outside the par- munity and economy, and I urge business with COVID-19. Pasich is one of the top ty’s control, the Akerman briefing says. owners to review their current policies insurance coverage firms in the United This means that the claiming party must with a professional who can do a proper States and has offices in New York and Los show that the event could not have been analysis on what claims can be made.” Angeles. prevented or overcome, and there addition- One of his key points is the virus can As the outbreak hit the United States, ally cannot be any fault or negligence on cause physical damage to property, which Pasich had already geared up to help clients the part of the claiming party. ♦ www.sfbwmag.com • MAY 2020 29 CORONAVIRUS: AUTOMOTIVE

Teddy Morse of Ed Morse Automotive Group records a reassuring TV spot

AUTOMOTIVE BUSINESSES HELP OUT, GO VIRTUAL BY KEVIN GALE

Automotive dealers and repair shops er supporting the health care system or have been considered essential businesses members of businesses deemed essential. during the pandemic, but it has been far The South Florida Ford Dealers Associ- from business as usual. ation, which encompasses 23 dealers in the While job loss or job insecurity may keep region, was helping out as many government some buyers out of the market, low interest agents have shut down their repair facilities. rates and deals abound. There’s also an in- “We have prioritized our first responders, creasing array of concierge and virtual ser- government vehicles, and health care prac- vices, so you don’t have to go to a dealership titioners in our service departments across to buy a car or get it serviced. That business South Florida. Many people don’t realize model could continue long after the pandem- how many of these vehicles we keep running ic is in the rearview mirror. on a daily basis” said David Menten, chair- Some service businesses were pitching in man of the dealers association and owner of to help critical workers as well. Sawgrass Ford. Juno Beach-based Midas was offering Rick Case, CEO of Rick Case Automo- a free Midas Touch 30 Point Courtesy tive, said was offering the best factory in- Check to keep grocery delivery personnel, centives he has ever seen. first responders, doctors and nurses safe “You can get a new vehicle now with and on the road. Midas is offering a pickup no money down, 0 percent financing for and dropoff service in many locations as well 84 months and pay nothing for six months. as flexible payment options. Hyundai and Genesis will even make six Raquel and Ryan Case of Rick Case Automotive Group present a $50,000 Tire Kingdom, which is based in Palm monthly payments if you lose your job be- donation to Feeding South Florida for Beach Gardens, was giving discounts on tween now and the end of the year, he said coronavirus relief efforts tires and service to customers who iden- Rick Case Automotive changed its new tify as a first responder, frontline work- and used car sales efforts from sales in show- 30 MAY 2020 • www.sfbwmag.com CORONAVIRUS: AUTOMOTIVE

rooms to online sales, Case says. Buyers can visit rickcase.com, chose the brand they are interested in, search the inventory, pick out their vehicle, get the value of their trade, get approved for credit and chose the payment. “Then we will deliver the vehicle to them safe and secure anywhere in South Florida within 24 hours,” he said. Case and his family also donated $50,000 to Feeding South Florida for its coronavirus relief efforts. The concierge service at Ed Morse Au- tomotive Group can deliver paperwork and come to customers’ doors for routine maintenance and repair needs. It’s also was offering to defer payments. As the pandemic took hold, Morse changed its TV ads to short reassuring mes- sages delivered by CEO Teddy Morse. Ed Morse “has your back” is the main message The Experience Auto Group dealership on North Federal Highway in Fort Lauderdale instead of touting the latest model. The Experience Auto Group, the owner of Ferrari, Maserati and Alpha Romeo “It’s an added benefit that this online could still get a cup of coffee if they come in of Fort Lauderdale, launched a concierge solution keeps our EAG family of associ- for a test drive or a service appointment. Cars program and a virtual suite of services ates working to support themselves and their were cleaned after each test drive or service. that included inventory walkthroughs, families,” said President Garret Hayim. Hayim was looking forward to business as service appointments, sales consultations EAG was adhering to diligent cleaning usual, but said virtual services might become and appraisals. and disinfecting services, but customers a permanent feature. ♦

www.sfbwmag.com • MAY 2020 31 CORONAVIRUS: CRUISE LINES

The Diamond Princess was quarantIned in Japan and the nation’s health ministry said 700 on board tested positive for COVID-19

CRUISE LINES TRY TO STEADY FINANCES NEW SAFETY MEASURES COULD REASSURE PASSENGERS

BY KEVIN GALE

Perhaps more than any industry in South Florida, panies in the region starts also includes two of the world’s cruise lines will face a major challenge getting back on three busiest cruise ports, PortMiami and Port Everglades, course after the end of the pandemic. and ripples into airlines, hotels, restaurants, shops and the There are the intermingling challenges of myriad of suppliers. winning back public trust and dealing with a drastic reduction in revenue. DIAMOND PRINCESS QUARANTINED Recovery of the cruise lines is important The bad news about COVID-19 dribbled out over to the South Florida economy since the head- more than two months, creating a wave of negative headquarters of No. 1 Carnival Corp. & plc, No. lines about cruise lines. 2 Royal Caribbean Cruises Ltd. and No. 3 On Feb. 1 a passenger on Carnival Corp.’s Diamond Carnival’s Micky Arison Norwegian Cruise Line Holdings are based Princess tested positive for COVID-19. On Feb. 4, pas- in Miami. The economic impact of the com- sengers learned that 10 had tested positive. By Feb. 28 32 MAY 2020 • www.sfbwmag.com CORONAVIRUS: CRUISE LINES

with the ship quarantined in Yokahama, the Japanese canceled cruises through May 14. health ministry said 700 had tested positive. Unfortunately, health authorities and political lead- RAISING CASH ers globally were slow to react about the spread of With revenue curtailed, on COVID19, which first popped up in the Chinese prov- April 1, Carnival announced a ince of Wuhan in December. multibillion-dollar plan to stay Holland America’s Zaandam set sail from Buenos Ai- financially liquid. res on March 7, but it was another four days before the On April 6, that started com- WHO declared COVID-19 a pandemic. ing to fruition. The company Ric Cavieres On April 2, nearly a month after the cruise started, the announced that it had closed on Zaandam and sister ship Rotterdam arrived at Port Ever- a 71.87 million share offering at glades with 1,250 passengers, with 107 reporting an in- $8 a share. Reuters reported that fluenza-like illness during the cruise, a press release from a Saudi sovereign wealth fund had bought 43.5 million the port said. The Zaandam had earlier transferred 808 shares of Carnival, which sent its stock price higher. healthier passengers to the Rotterdam. The company also closed a $1.95 billion sale of 5.75 The Zaandam had four dead passengers, two of who percent convertible senior notes due in 2023. It expected had been tested positive for COVID-19. However, 95 to close April 8 on $4 billion worth of 11.5 percent senior percent of the passengers on the Zaandam and 98.8 per- secured notes due in 2023. cent of the passengers on the Rotterdam were expected The company said it appeared to have enough liquidity to be fit for travel. to get through the next 12 months, however, “We can- In its April 2 quarterly report to the SEC, Carnival said not assure you that our assumptions used to estimate our numerous passengers and crew on other ships, including liquidity requirements will be correct because we have the Grand Princess, Costa Luminosa, Ruby Princess, never previously experienced a complete cessation of our Costa Magica and Costa Favolosa, were diagnosed with cruising operations, and as a consequence, our ability to COVID-19. be predictive is uncertain.” Carival said there were approximately 6,000 passen- The company estimated its monthly expenditures at $1 gers onboard ships still at sea and they were expected to billion a month. disembark by the end of April. The other cruise companies also raised money. As of April 5, the Carnival cruise line had canceled Royal Caribbean reached a $2.2 billion loan agree- all sailings through May 11 and Holland America had ment and drew down a $3.48 billion revolving credit line.

The Grand Princess is among other ships that had incidents of COVID-19

www.sfbwmag.com • MAY 2020 33 CORONAVIRUS: CRUISE LINES

The Holland America Zaandam struggled to get permission to enter Port Everglades, but ultimately did

Norwegian Cruise Lines Holdings said in an an SEC filing that it had immediately report any illness symptoms. borrowed $1.55 billion. More medical staff will be added and will provide complimentary medical consultations during every sailing, Celebrity said. ATTRACTING AND Perhaps, most importantly is Celebrity’s move to prevent passen- RETAINING PASSENGERS gers from bringing illness aboard ships. “Further, there will be tem- One bright sign is in the first two weeks of March, 45 percent of perature checks administered to all guests prior to boarding,” Celeb- Carnival Corp. guests accepted future cruise credits rather than seek- rity says. ing cash refunds, the SEC report said. Technology could ultimately play a key role in restoring passenger Trying to get new bookings and keep from issuing refunds are im- confidence. portant to Carnival’s financial positions. As of Feb. 28, Carnival had Amid the pandemic, OZ, a digital technology company in Fort $4.7 billion in customer deposits. Lauderdale, announced a system called Salus to help cruise lines and For guest who had booked voyages and canceled on or after March health authorities. 6, the Carnival cruise line was offering a 100 percent future credit plus OZ expects cruise lines will use digital thermometers and infra- a $600 on board credit per stateroom on six day+ cruises and a $300 red cameras to analyze guest and crew temperatures and stop anyone stateroom credit on five day or less cruises. Cruisers had to book by with a temperature above 100.4 degrees from boarding. Salus can Dec. 31 and have to sail by Dec. 31, 2022. collect and integrate the temperature data with the ship’s passenger The Carnival line was also trying to make new cruise sales. manifest system, IoT sensors, ship containment facilities, and diag- On April 5, a clock was ticking down with 10 hours left for a “pack nostics all via a mobile crew application. and go sale.” Five-day western Caribbean cruises from Miami were OZ expects this to provide a full picture of guest and crew health priced as low as $109 per person, excluding taxes, fees and port ex- throughout the cruise journey. If symptoms of COVID-19 are detect- penses. The first sailing date was June 9 and started at $139. ed onboard via digital thermometers readings and infrared cameras, An early saver sale offered up to 30 percent off, up to $100 onboard Salus will analyze prior person interactions, co-ordinate patient quar- credit per person, free room upgrades and sailings starting in June. antine, testing, treatment and capture patient hour-by-hour contain- Royal Caribbean’s Celebrity line was offering a 125 percent future ment, diagnostic and treatment details, the company says. cruise credit through Dec. 31 for sailings that were impacted by the The Salus app will then provide full patient case details to health virus. It also rolled out a Cruise with Confidence program that allows authorities when ships return to port. cancellations up to 48 hours on sailings departing up to September 1. OZ says it already works with cruise companies and is discus- Any reason is permitted. Those who do so get a 100 percent cruise sion with them to adopt and implement Salus. credit that is good until December 31. “The thought of being quarantined is right now one of the biggest obstacles the cruise industry needs to overcome,” said Stewart SANITATION, HEALTH MANAGEMENT Chiron, a Miami travel company operator known as “CruiseGuy.” Of course, passengers will expect high degrees of sanitation on “Hopefully, from recent experiences, the CDC and the cruise lines future cruises. have learned and can engage best practices to avoid unnecessary Celebrity’s website said terminals and ship access points will quarantines, disruptions and delays once sailings resume.” be thoroughly sanitized before and after sailings. High traffic ar- Chiron is confident passengers will return, saying, “I know peo- eas onboard, including restrooms and public areas, will undergo ple are very excited to go on vacation. Cruises will be more mean- extensive cleaning each evening, over and above the normal pro- ingful and beneficial considering what we’re all going through cedures. Daily announcements will be made to remind guests to right now. I’m sure the first passengers will feel quite triumphant wash their hands often, use recommended coughing etiquette and and jubilant.” ♦ 34 MAY 2020 • www.sfbwmag.com CORONAVIRUS: CRUISE LINES

Thank you to our generous sponsors and committee for making our 18th Annual YMCA of South Palm Beach County Inspiration Breakfast a HUGE success and for their dedicated support to strengthening youth in our community! SPONSORS The Holland America Zaandam struggled to get permission to enter Port Everglades, but ultimately did

PRESENTING SPONSOR HOST SPONSOR DONATION MATCH SPONSOR Norwegian Cruise Lines Holdings said in an an SEC filing that it had immediately report any illness symptoms. borrowed $1.55 billion. More medical staff will be added and will provide complimentary medical consultations during every sailing, Celebrity said. ATTRACTING AND Perhaps, most importantly is Celebrity’s move to prevent passen- RETAINING PASSENGERS gers from bringing illness aboard ships. “Further, there will be tem- One bright sign is in the first two weeks of March, 45 percent of perature checks administered to all guests prior to boarding,” Celeb- RAFFLE WALL SPONSOR UP & CLOSE SPONSOR VIP PREVIEW PARTY RECEPTION Carnival Corp. guests accepted future cruise credits rather than seek- rity says. & HOTEL SPONSOR ing cash refunds, the SEC report said. Technology could ultimately play a key role in restoring passenger Trying to get new bookings and keep from issuing refunds are im- confidence. portant to Carnival’s financial positions. As of Feb. 28, Carnival had Amid the pandemic, OZ, a digital technology company in Fort $4.7 billion in customer deposits. Lauderdale, announced a system called Salus to help cruise lines and For guest who had booked voyages and canceled on or after March health authorities. 6, the Carnival cruise line was offering a 100 percent future credit plus OZ expects cruise lines will use digital thermometers and infra- a $600 on board credit per stateroom on six day+ cruises and a $300 red cameras to analyze guest and crew temperatures and stop anyone CUSTOM SPECIALTY SPONSORS stateroom credit on five day or less cruises. Cruisers had to book by with a temperature above 100.4 degrees from boarding. Salus can Allegiance Home Health, Centerpiece Sponsor Joe DiMaggio Children’s Hospital, Greet & Meet Photo Sponsor Dec. 31 and have to sail by Dec. 31, 2022. collect and integrate the temperature data with the ship’s passenger Baptist Health South Florida, Registration Sponsor Kaufman Lynn Construction, Welcome Sponsor The Carnival line was also trying to make new cruise sales. manifest system, IoT sensors, ship containment facilities, and diag- Bethesda Hospital Foundation & Boca Raton Regional Hospital Foundation Shutts & Bowen, LLP, Photography Sponsor Daszkal Bolton & Benchmark Financial, Y Video Sponsor On April 5, a clock was ticking down with 10 hours left for a “pack nostics all via a mobile crew application. United Healthcare, Health & Wellness Sponsor ESPN West Palm Beach, Media Sponsor Universal Property, Tech & Lighting Sponsor and go sale.” Five-day western Caribbean cruises from Miami were OZ expects this to provide a full picture of guest and crew health Florida Peninsula / Edison Insurance, Table Party Favor Sponsor priced as low as $109 per person, excluding taxes, fees and port ex- throughout the cruise journey. If symptoms of COVID-19 are detect- penses. The first sailing date was June 9 and started at $139. ed onboard via digital thermometers readings and infrared cameras, An early saver sale offered up to 30 percent off, up to $100 onboard Salus will analyze prior person interactions, co-ordinate patient quar- IN-KIND SPONSORS credit per person, free room upgrades and sailings starting in June. antine, testing, treatment and capture patient hour-by-hour contain- Cinnaholic Royal Caribbean’s Celebrity line was offering a 125 percent future ment, diagnostic and treatment details, the company says. Home Depot cruise credit through Dec. 31 for sailings that were impacted by the The Salus app will then provide full patient case details to health Minuteman of Boca Raton virus. It also rolled out a Cruise with Confidence program that allows authorities when ships return to port. South Florida Business & Wealth cancellations up to 48 hours on sailings departing up to September 1. OZ says it already works with cruise companies and is discus- Any reason is permitted. Those who do so get a 100 percent cruise sion with them to adopt and implement Salus. credit that is good until December 31. “The thought of being quarantined is right now one of the big- INSPIRATION gest obstacles the cruise industry needs to overcome,” said Stewart BREAKFAST COMMITTEE SANITATION, HEALTH MANAGEMENT Chiron, a Miami travel company operator known as “CruiseGuy.” Alex Price, Chair Clayton Idle Billy Marino Olga Protzer Tracy Sussman Of course, passengers will expect high degrees of sanitation on “Hopefully, from recent experiences, the CDC and the cruise lines Jonathan Barbar Jackie Kaleel James Moore Ryan Reiter Kimberley Trombly-Burmeister future cruises. have learned and can engage best practices to avoid unnecessary Nancy Cavanagh Lauren Kimber Karly Parsons Jackie Riordan Jonathan Whitney Madeline Hernandez Richelle Kubsch Linda Gunn Paton Brian Saal Cynthia Wood Celebrity’s website said terminals and ship access points will quarantines, disruptions and delays once sailings resume.” Linda Heneks Nicole Lattery Mary Pendergast Brianna Silva Mickey Zitzmann be thoroughly sanitized before and after sailings. High traffic ar- Chiron is confident passengers will return, saying, “I know peo- eas onboard, including restrooms and public areas, will undergo ple are very excited to go on vacation. Cruises will be more mean- extensive cleaning each evening, over and above the normal pro- ingful and beneficial considering what we’re all going through cedures. Daily announcements will be made to remind guests to right now. I’m sure the first passengers will feel quite triumphant YMCASPBC.ORG wash their hands often, use recommended coughing etiquette and and jubilant.” ♦ www.sfbwmag.com • MAY 2020 35 CORONAVIRUS: RESIDENTIAL REAL ESTATE

PANDEMIC COULD SPUR MORE MOVES TO SOUTH FLORIDA BY KEVIN GALE

The COVID-19 pandemic will accelerate the decade are gaining newfound momentum.” ongoing trend of wealthy northeasterners moving Adding to the weather, lifestyle, pricing and tax ad- to South Florida, some developers and brokers are vantages to South Florida: Those working from home predicting. during the pandamic are realizing that technology, David Siddons, an executive director with Doug- such as Zoom, could make them productive working las Elliman, said at the beginning of April that daily in South Florida. Transplants also may feel more com- inquiries from out-of-state prospective fortable in a less dense urban area, he said. buyers had jumped from 10 to 15 per He offered one recent example of the economics: day to about 85 per day. A client sold his Manhattan apartment for $6 million, “The coronavirus pandemic is creat- purchased another Manhattan apartment for $4 mil- ing an existential awakening for many lion, freeing up $2 million to purchase and finish a $5 out-of-state investors, which is redefin- million waterfront home in Miami. With the annual tax ing South Florida real estate,” he said. savings of $200,000 and 3 percent interest rates on his “As coronavirus continues to elevate mortgage, his monthly out-of-pocket costs to own both awareness of the fragility of human life properties in Miami and New York is the same as when David Siddons and the importance of ‘seizing the day,’ he owned the $6 million apartment alone, Siddons said. trends that have been emerging the past New York developer Shahab Karmely of KAR 36 MAY 2020 • www.sfbwmag.com CORONAVIRUS: RESIDENTIAL REAL ESTATE

Properties, said, “People who can, and who are for- Lenders were still issuing construction loans amid tunately able to, will leave New York City.” the pandemic. The top destination for New Yorkers will be the Lennar Corp. received a $44.88 million loan for Hamptons on Long Island, which is where Karmely its 11-story, 189-unit Wynwood was when he was interviewed via telephone. He says Green apartment complex in the No. 2 spot will be South Florida, in particular, the Miami. Shoma Group closed Miami area, Wellington, Palm Beach and Boca Raton. on a $17.6 million construc- “I am willing to bet this will be Miami’s busiest tion loan for the 43-unit Ten30 July and August in the past 30 years, Karmely says. South Beach condominiums. “The shutdown will make people realize that quali- “We are very proud to se- ty of life, climate and open space are important el- cure construction financing ements of life. Miami compares very, very well to with ACRES Capital for Ten30 other wealth centers of the United States in offering South Beach as we step closer Masoud Shojaee that quality of live and urban area outdoor lifestyle.” to delivering this compelling One of Karmely’s projects is 2000 Ocean in Hal- project to Miami Beach,” said landale Beach, which is offering a dizzying array of Masoud Shojaee, CEO of Shoma Group. “Especially amenities for $1,000 a square foot. In New York City, in today’s current climate, this closing is an endorse- developers sometimes have to pay $1,000 a square ment of the market appeal of Ten30 as we continue foot just for air rights, he notes. Hallandale Beach is our forward momentum bringing this attractive prop- also a bargain compared with Miami Beach where osition to the Miami Beach market.” prices of $2,000 a square foot are common. Other projects continued construction into April. Karmely expected to top off his project by the end Ocean Delray was recently working on its first- of April. Half-floor, built out units with marble floors floor slab and expects delivery in the first half of at start at $2.8 million and go to more than $4. Five 2021. The 19-unit project has units priced from $5.7 full-floor penthouses go for $10 million to $12 million. million to $10 million. Karmely brings the perspective of an Iranian Jew John Farina, president and CEO of U.S. Con- who had to flee his homeland during the Islamic rev- struction, which is developing Ocean Delray with olution. He says the United States is a wealthy, safe National Realty Investment Advisors, said he’s also country with a great democracy and will continue to seeing Northeasterners think about their long-term attract international buyers. “The inflow will be com- plans. ing in very quickly with people saying, ‘The next time “Should something like this coronavirus pandem- there is trouble, where do I want to be?” ic happen again, it seems like they would rather be

2000 Ocean

www.sfbwmag.com • MAY 2020 37 CORONAVIRUS: RESIDENTIAL REAL ESTATE CORONAVIRUS: COMMUNICATIONS

CORONAVIRUS AND CALL CENTERS: WHAT TO DO NOW AND LATER IF YOU RUN A BUSINESS THAT RELIES ON PHONE CALLS, COVID-19 MIGHT IMPACT YOU IN WAYS YOU’D NEVER GUESS

BY HOWARD DVORKIN, CPA Ten30 South Beach

For nearly three decades, I’ve launched and sold businesses However, it’s not enough in a place like Del- that rely heavily on call centers. To cope with a possible to prepare your employees to ray Beach, in a large COVID-19 pandemic that could affect my current call center- work remotely, handling the REAL ESTATE GURU GIVES MARKET OVERVIEW and very comfortable heavy business Debt.com, I’m dusting off my disaster recovery same workload they do today residence overlook- As April began, buyers weren’t vis- tion nationally was plans. Maybe you should, too. in the offi ce. Depending on ing the ocean versus iting real estate offices in person, says running at more Hurricanes and pandemics are different kinds of tragedies, but your business, you might see over-crowded Man- Brad Hunter, managing director of RCL- than 500,000 units many of the procedures are similar. In 2005, Hurricane Wilma more call volume, not less. hattan,” he says. CO real estate advisers. annually right be- knocked out power to the headquarters of my previous business For example, I’m chairman Buyers may also Hunter, who lives in West Palm Beach, fore the crisis, so in Plantation. We quickly communicated with our counselors and of Debt.com, which helps Henry Torres pay more attention to cited a survey by the National Associa- it has some ground customer service reps and set them up to work from home. Americans get out of all forms wellness aspects of tion of Home Builders that found 81 per- to give, he says. Of course, many had lost power, which is unlikely with of debt, from credit cards to their property. cent of respondents were experiencing Class “B” prop- COVID-19, and technology is much better than it was 15 years student loans to tax problems. Villa Valencia, a recently launched an adverse impact of traffic from pro- erties will likely fare Brad Hunter ago. So I have no doubt COVID-19 will prove manageable with We fully expect to do more Howard Dvorkin 39-unit residential development in Coral spective home buyers. better than expen- enough preparation. volume should Americans Gables is the first U.S. condominium proj- “It’s probably closer to 100 percent sive “A” properties I’m certainly not downplaying the seriousness of the virus, be asked—or forced—to ect to partner with Delos’ Darwin, a pio- now with the escalating lockdowns,” or Class “C” developments that may be and I endorse the wisdom of other business thought leaders who quarantine. For starters, many neering intelligence network that delivers Hunter said. more susceptible to job losses and lost are advising both caution and action. The best are encouraging hourly wage earners will fi nd their income severely limited. With clean, fresh air, energizing light and pollut- Just over half of homebuilders were income among tenants. fi ve initiatives: nothing else to do, we expect them to fi nally tackle their fi nancial ant-reduced water. The system is accessed having problems getting building ma- Some renters will “double up” and • Stay current with local and state updates. demons without the usual distractions of everyday life. at home through a touchscreen panel and terials, an issue that’s started amid the more “boomerang kids” will move back • Send sick employees home and liberalize company attendance Likewise, even salaried employees will be sitting at home. What remotely on a mobile app. Villa Valencia trade war with China. with their parents in the near term, he policies. we’ve learned from past natural disasters applies here: After power has 39 units costing up to $10.5 million. There is also growing concern about says. • Keep workplaces clean and promote and encourage hand is knocked out and we can’t go anywhere, we tend to take care of Loans for buyers at low rates could be tighter lending conditions for noncon- “Underlying positive long-term rental washing. all the chores we’ve been putting off. We might clean the garage a challenge for some, says Henry Torres, forming mortgage loans, Hunter said. trends will reassert themselves after the • Limit non-essential travel and offi ce visitations. and make household repairs. We’ve found people use undistracted president and CEO of The Astor Cos. in Buyers who have debt-to-income ratios crisis passes,” Hunter predicts. While • Mind the law. time to fi nally consider fi xing their fi nances. Thus, I expect to see Coral Gables, which developed Merrick higher than 43 to 45 percent or those the second quarter will be negative, the That last one means employers can’t do what employers did in more call volume from both hourly and salaried employees should Manor in that city. who are self-employed are now having a second half could be positive with a little China: Force employees take their temperature in the workplace, a usually regional emergency become a nationwide one. “Borrowers are certainly responding to lot of difficulty getting mortgages. luck. require medical exams without cause, or send employees home Finally, here’s a scenario that doesn’t apply to me but does to the historically low interest rates and look- He expects landlords to emphasize “The optimistic case is that, unlike in without considering the wage and hour guidelines. Employees many others: If you run a call center for a business that competes ing to lock in low rates for new purchases retention of residents, which will mean the Great Recession, once the virus is can’t sue you for being exposed to a virus as long as the company with brick-and-mortar establishments, you might see more call or refinancings, but it’s not automatic,” he giving them some leniency in the near contained, and immunity starts to take made a good faith effort to contain it. That said, they can and will volume because your competitors’ customers will still do business, says. “For banks, the risk level is much term. Hunter also expects downward hold in the population, even though sue you for wage and hour discrimination and other violations of but over the phone. While you struggle to move employees to higher. They are only giving low rates if pressure on rents in the next few months supply chains will take some time to employment law. home offi ces, you might direct your marketing staff to ramp up the borrower’s credit score is very high and property owners asking lenders for re-engage, it won’t be like the cold-start For employers with call centers, working through a pandemic your messaging, especially your on-hold messaging, as well as and the relationship with the individual forbearance. that followed the housing and mortgage is easier than running a business with face-to-face customer targeting your brick-and-mortar competition. banker is strong. The banking system is In the longer term, Hunter expects a crash,” Hunter says. “The cycle could interactions. If you haven’t already tasked your IT staff with For those who don’t own businesses, such practical planning largely focused on putting out fires right continued strong demand for multifam- look like a “V,” or possibly more of a devising a process for smoothly setting up your call center at the might smack of cold-heartedness. To the contrary, such planning now and is not so much interested in lend- ily. narrow “U,” with a sharp drop but also a homes of your employees, get them on it now. Even if COVID-19 is the essence of compassion. Employees want to keep their ing. They will get more active when they Lease renewal rates were strong be- strong upswing, coming at some time in doesn’t become a bigger health crisis than it is today, this won’t be paychecks coming, and all Americans want life to return to normal see a light at the end of the tunnel.” ♦ fore the crisis, and apartment construc- the second half of this year.” wasted work. You should have such a plan in place for any type of as soon as possible. Taking care of your employees and your 38 MAY 2020 • www.sfbwmag.com disaster that might strike. customers is the best thing you can do. ♦ CORONAVIRUS: COMMUNICATIONS

CORONAVIRUS AND CALL CENTERS: WHAT TO DO NOW AND LATER IF YOU RUN A BUSINESS THAT RELIES ON PHONE CALLS, COVID-19 MIGHT IMPACT YOU IN WAYS YOU’D NEVER GUESS

BY HOWARD DVORKIN, CPA

For nearly three decades, I’ve launched and sold businesses However, it’s not enough that rely heavily on call centers. To cope with a possible to prepare your employees to COVID-19 pandemic that could affect my current call center- work remotely, handling the heavy business Debt.com, I’m dusting off my disaster recovery same workload they do today plans. Maybe you should, too. in the offi ce. Depending on Hurricanes and pandemics are different kinds of tragedies, but your business, you might see many of the procedures are similar. In 2005, Hurricane Wilma more call volume, not less. knocked out power to the headquarters of my previous business For example, I’m chairman in Plantation. We quickly communicated with our counselors and of Debt.com, which helps customer service reps and set them up to work from home. Americans get out of all forms Of course, many had lost power, which is unlikely with of debt, from credit cards to COVID-19, and technology is much better than it was 15 years student loans to tax problems. ago. So I have no doubt COVID-19 will prove manageable with We fully expect to do more Howard Dvorkin enough preparation. volume should Americans I’m certainly not downplaying the seriousness of the virus, be asked—or forced—to and I endorse the wisdom of other business thought leaders who quarantine. For starters, many are advising both caution and action. The best are encouraging hourly wage earners will fi nd their income severely limited. With fi ve initiatives: nothing else to do, we expect them to fi nally tackle their fi nancial • Stay current with local and state updates. demons without the usual distractions of everyday life. • Send sick employees home and liberalize company attendance Likewise, even salaried employees will be sitting at home. What policies. we’ve learned from past natural disasters applies here: After power • Keep workplaces clean and promote and encourage hand is knocked out and we can’t go anywhere, we tend to take care of washing. all the chores we’ve been putting off. We might clean the garage • Limit non-essential travel and offi ce visitations. and make household repairs. We’ve found people use undistracted • Mind the law. time to fi nally consider fi xing their fi nances. Thus, I expect to see That last one means employers can’t do what employers did in more call volume from both hourly and salaried employees should China: Force employees take their temperature in the workplace, a usually regional emergency become a nationwide one. require medical exams without cause, or send employees home Finally, here’s a scenario that doesn’t apply to me but does to without considering the wage and hour guidelines. Employees many others: If you run a call center for a business that competes can’t sue you for being exposed to a virus as long as the company with brick-and-mortar establishments, you might see more call made a good faith effort to contain it. That said, they can and will volume because your competitors’ customers will still do business, sue you for wage and hour discrimination and other violations of but over the phone. While you struggle to move employees to employment law. home offi ces, you might direct your marketing staff to ramp up For employers with call centers, working through a pandemic your messaging, especially your on-hold messaging, as well as is easier than running a business with face-to-face customer targeting your brick-and-mortar competition. interactions. If you haven’t already tasked your IT staff with For those who don’t own businesses, such practical planning devising a process for smoothly setting up your call center at the might smack of cold-heartedness. To the contrary, such planning homes of your employees, get them on it now. Even if COVID-19 is the essence of compassion. Employees want to keep their doesn’t become a bigger health crisis than it is today, this won’t be paychecks coming, and all Americans want life to return to normal wasted work. You should have such a plan in place for any type of as soon as possible. Taking care of your employees and your disaster that might strike. customers is the best thing you can www.sfbwmag.com do. ♦ • MAY 2020 39 GREAT PLACES SPACES

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40 MAY 2020 • www.sfbwmag.com GREAT PLACES SPACES

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TradeStation launches cryptocurrency trading

BY KEVIN GALE | PHOTOGRAPHY BY EDUARDO SCHNEIDER

Investing and trading in cryptocurrencies small San Francisco apartment cost twice as can be an adventure, but it’s also an opportu- much as his three-bedroom home with a pool nity for TradeStation, a Plantation company in South Florida. often lauded as the top brokerage for profes- Within a year, though, TradeStation hired sional traders. him in 2012 and he helped take its core desk- TradeStation has launched TradeStation top product to Japan after the company was crypto, which aggregates price quotes from purchased by Monex Group, a company multiple crypto exchanges and provides an Putra likens to the Japanese equivalent of intelligent order routing system to give cus- Charles Schwab. tomers the best prices. Currencies handled After going back and forth to Japan to include bitcoin, bitcoin cash, Ethereum, Lite- launch that effort, he suggested to TradeSta- coin and Ripple. tion president John Bartleman that he launch Leading the effort is James Putra, the an innovation lab. The resulting TradeStation unit’s head of product strategy. Sandbox fueled several ideas, including trad- He’s a homegrown success story with a ing concierge, which is a personalized ser- bachelor’s degree in management informa- vice for ideas and news for customers. tion systems from Florida Atlantic Universi- TradeStation did a lot of work around ty. Shortly after graduation in 2004, he be- data analytics and brought in experts in came employee No. 4 at ReconTrader Corp., data science from Florida Atlantic, the a Fort Lauderdale startup that developed al- Massachusetts Institute of Technology and gorithmic trading software. Boston University. “We were doing ‘fintech’ (financial tech- “We put them all in a room and just did nology) before we even knew what fintech this crazy, like summer hackathon that came was,” he says. “We grew that company and out with quite a few interesting product con- sold it four years later.” cepts and ideas,” Putra says. Putra says he thought he had the Midas Monex CEO Oki Matsumoto decided in touch, but he lost everything in the next 2017 that fintech and crypto trading should startup, Elite Global Trading, which de- be a priority for the company. veloped foreign exchange trading software “That really shifts everybody’s focus from and lasted four years. looking at crypto as something that is novelty “Toward the end, we were selling blood or fun or risky to OK, the big guy wants us to just so we can feed ourselves and keep the look at it, pay attention,” Putra says. company afloat. And what we realized was, As the effort geared up, “what we were you should never give up, but you have to noticing is that there wasn’t a lot of excite- know when to pivot,” he says. ment or enthusiasm in the newer genera- He subsequently moved to California to tions to trade equities at the time,” Putra help brokerage giant eTrade launch a foreign says. “Where the excitement and enthu- exchange product, but missed Florida. His siasm was around these crypto assets and

James Putra

46 MAY 2020 • www.sfbwmag.com WEALTH

TradeStation launches cryptocurrency trading

BY KEVIN GALE | PHOTOGRAPHY BY EDUARDO SCHNEIDER

James Putra

www.sfbwmag.com • MAY 2020 47 WEALTH

on the project, including a lot of nights and tercontinental Exchange and ErisX, which weekends. Florida is among the 28 states in Monex invested in. which TradeStation clients can trade crypto. “They’re all they’re putting products out Those who want to trade cryptocurrencies there that are allowing customers to play with TradeStation first must open a Trade– on both sides of the market. And it allows Station Securities equity account. “Once you customers to do more complicated strate- can get approved for the equities account, we gies other than just hold this asset. So, you can enable you in the crypto,” Putra says. could do things like owning bitcoin, and While TradeStation is popular with pro- going short the futures contract where you fessional traders, ordinary investors can couldn’t do that before the futures contracts open account and don’t have to be accred- came out,” Putra says. The release of new ited investors. futures products has tended to spike excite- Once they are authorized to trade in cryp- ment in crypto. to, customers can see the best available pric- Legislation to regulate crypto has been es across multiple sources. Bid and ask prices proposed by various governing bodies, but can be viewed. TradeStation’s smart order Putra says it isn’t clear who’s going to own router then pushes orders to the best available what piece of regulations. He thinks TradeS- price, Putra says. Major orders can be pieced tation is well-positioned because regulators out for fulfillment to avoid someone else try- are familiar with the company as a regulated ing to take advantage of a trade. broker dealer in the equities space. With a base of customers now, Putra and “The regulators will look at the various his team are trying to gain customer insights products and companies in a familiar way by tracking metrics, such as deposits coming to them. They’ll naturally gravitate toward in and repeat logins. those assets and those companies that A symbol of bitcoin currency “We’re in the learning phase to see are we look and smell like products that they are getting those customers that we thought we used to deal with, which is good for those bitcoin in particular.” would get? Are they behaving in the way companies and maybe not so good for the Adding crypto as an asset class to the we thought they would behave? And do companies that are not used to operating in TradeStation trading platform seemed like a we have the right tool for the people that that,” he says. logical extension. Putra was detached from we are getting? And because everything’s A lot of the major brokerages are enter- the innovation lab to just focus on crypto. new, across the entire business, it makes ing the crypto space, with upstart Robin- TradeStation didn’t want to be a crypto- it challenging to really measure because hood being a player that has offerings sim- currency exchange, so it looked at crypto everything from the brand, the marketing, ilar to TradeStation. (After the interview as an extension of its brokerage opera- the product, all the pieces are new, except with Putra, Robinhood received a lot of tions, he says. for the core broker dealer on the securities negative attention for system breakdowns “Our role as a broker is to try to find good side,” Putra says. that prevented customers from trading markets for the customer and liquidity. When Early on, it seems like many of TradeS- during market volatility.) you take out the idea that you’re going to be tation’s previous customer base are buy- If you are thinking about trading or the actual exchange, you start to look and and-hold investors with cryptocurrencies. investing in crypto, Putra recommends you become indifferent to where the venues There are a lot of different types of trades spending time learning more about cryp- are so we can connect to multiple places. We customers can do, though, such as trading to as an asset and what the industry is all can provide a service that allows a customer one cryptocurrency for another. Often, af- about. TradeStation has educational mate- to have one account with us and not have to ter trading other cryptocurrencies they will rials, and Putra personally likes the book deal with all the hassles of managing multi- come back to bitcoin, which is the most es- Cryptoassets by Chris Burniske and Jack ple different relationships.,” Putra says. tablished and liquid cryptocurrency. Tatar, but that’s not an official endorse- While much of the crypto world has little Cryptocurrencies can be especially useful ment by TradeStation. regulation, TradeStation gravitated toward for investors who live in countries where cur- “It’s the same with any asset class,” Pu- collaborating with companies that were fa- rencies are struggling with inflation, but they tra says. “You should always have a feel- miliar with traditional markets, he says. “So aren’t necessarily a refuge from stock market ing for what it is you’re getting involved when we would talk about things regarding turmoil. As the coronavirus was influencing with. There’s this interesting thing that market structure or regarding settlement or stock market volatility, bitcoin dropped from happens where you get bitten by the bug, technology, operational models, we spoke $10,474 on Feb. 13 to $7,324 on March 11. or our team calls, ‘you get cryptoed.’ And the same language.” There’s still a lot of volatility, Putra notes, you just you go off this deep end and this Beta testing started in August and the sys- but that appears to be lessening as crypto-de- ravenous information gathering and it’s tem went live in November. He estimates rivative contracts are issued by the likes of something that’s so interesting and excit- 150 people at TradeStation have worked the Chicago Mercantile Exchange, the In- ing from an educational perspective.” ♦

48 MAY 2020 • www.sfbwmag.com www.sfbwmag.com • MAY 2020 49 INSURANCE

Father, Son Duo Manage Finethe Art of Risk Protection BY ARNIE ROSENBERG | PHOTOGRAPHY BY EDUARDO SCHNEIDER

t’s not unusual for Gary Reshef- sky to receive a call from a client on a Saturday afternoon: “We’re leaving the jewelry store” or “We’re leaving the art gallery. We need coverage right away on this piece of art. How do we get that done?” For Reshefsky, president of Century Risk Advisors, it’s simply part of the routine, and it’s indicative of what has made his 7-year-old risk-management firm a success. “We take care of it,” he says. That kind of client care is at the foundation of the Boca Ra- ton-based insurance brokerage Gary Reshefsky and his father, Ron Reshefsky, founded in 2013. Each brought his own expertise—Ron, with more than 40 years in the insurance industry; and Gary with degrees in finance and law and experience Chairman Ron Reshefsky and his son Gary, who is president caption

50 MAY 2020 • www.sfbwmag.com INSURANCE

Father, Son Duo Manage Finethe Art of Risk Protection BY ARNIE ROSENBERG | PHOTOGRAPHY BY EDUARDO SCHNEIDER t’s not unusual for Gary Reshef- sky to receive a call from a client on a Saturday afternoon: “We’re leaving the jewelry store” or “We’re leaving the art gallery. We need coverage right away on this piece of art. How do we get that done?” For Reshefsky, president of Century Risk Advisors, it’s simply part of the routine, and it’s indicative of what has made his 7-year-old risk-management firm a success. “We take care of it,” he says. That kind of client care is at the foundation of the Boca Ra- ton-based insurance brokerage Gary Reshefsky and his father, Ron Reshefsky, founded in 2013. Each brought his own expertise—Ron, with more than 40 years in the insurance industry; and Gary with degrees in finance and law and experience Chairman Ron Reshefsky and his son Gary, who is president caption

www.sfbwmag.com • MAY 2020 51 INSURANCE

and into marketing products online, “but you’re not going to buy your directors and officers coverage on an app and you’re not going to insure your $100 million building on an app,” he said. “At the end of the day, what we found is that we provide the most value to our clients with the professional end of the business.” The Reshefskys do point to the firm’s claims-advocacy services, including a dedicated staff member, as a value-added component for commercial and personal clients alike. Director Jason Kaplan shep- herds clients’ claims through the insurance process, but gets involved even before a client picks up the phone to report a loss. Kaplan conducts training for a client’s employees, conducts site inspections and counsels clients on reducing risks before they turn into claims. “In my mind, it’s better to not need the insurance,” he says. “If I can find things to help you better protect yourself so you never have a claim to begin with, that’s certainly the way to go.” The father-son dynamic at the helm of the company makes work “a pleasure,” Ron says. “I think it’s been great, and, honestly, after seven years, I’m 100 percent confident Director of Claims Advocacy Jason Kaplan and Gary Reshefsky that he knows what he’s doing. And because he’s smart, he’s got staff around him that in municipal government and insurance—to art, and they’re liability targets, so they need knows what they’re doing.” a brokerage that caters to businesses and suc- to have adequate liability insurance.” Gary returns the adulation: “My father cessful families. When the Reshefskys set out to open the gives great advice. I talk to him every day. The firm’s average personal client spends firm, they drew not only on their collective He’s so consistent, so solid, that I know I can $20,000 a year on insurance; its average industry knowledge, but also looked to the go to him whenever I have a question or an commercial client spends about $80,000. people who had contributed to their success issue.” And in many instances, he adds, Ron The firm has grown about 30 percent a year, in the past. Today, many of those people are has already been through the same situation but it hasn’t followed the industry’s custom- the foundation of the 16-person company. or dealt with the same “real-life experience.” ary mold. It’s the firm’s “family culture” that con- It all goes into a firm that’s looking to stay “Most of it comes organically, by word tributed to Insurance Journal naming it a Sil- around for its clients. of mouth,” explains Ron, the company’s ver Award winner for Best Agency to Work “Any of the big brokers are either public chairman. “It’s recommendations from other For, in the Southeast region in 2019. “When or they’re owned by private-equity firms, clients and professionals in the community, we decided to go back into business,” Ron and they’re looking for exit strategies and and because of the products you offer, the re- remembers, “we were able to pick up the price-multiple earnings,” Ron says. “So un- lationships you build and your knowledge.” phone and call bunch of people who now are less we want to set this place up to sell it— For Gary, it’s knowing clients, their fami- back in a new family.” and we don’t—we don’t care about that. It’s lies and their businesses. While its core mission is clear, the firm not my decision, but it’s a great business for “Each of those families has different always is on the lookout for strategies to a family and a great business for the people needs,” he says. “They don’t all just have better serve its clients, Gary says. It’s looked who are here. a single home and two cars and a limited at diversifying into condominium insurance “As long as we can differentiate ourselves, amount of valuable property. These are fam- (only 40 percent to 50 percent of Florida we don’t need to be sold. And that’s a great ilies that have boats, multiple cars, jewelry, condos are insured, he says), drone insurance benefit to the clients.” ♦

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www.sfbwmag.com • MAY 2020 53 LAW Putting HATE here are days, by his own admission, when In his role overall hate crimes [against people and/or property] to the seemingly never-ending battles against the FBI, up 17 percent from 2016. Nationally, nine hate, discrimination and extremism take their with the ADL, cities with a population of over 100,000 didn’t report. toll on David Barkey. But as the Southeastern Another 92 cities reported zero. The Department of area counsel for the Anti-Defamation League David Barkey Justice does a survey every decade about hate-crime quickly points out, “sticking your head in the victimization, and the estimation is that there are Tsand isn’t going to help.” battles on the 250,000 nonfatal hate crime victimizations annually. “Nothing is going to change unless people of By the way, anybody can be a victim and anyone can goodwill want to change things. Even if I’m throwing front legal be a perpetrator of a hate crime. Twenty-two percent of in a little pebble every day, I feel like I’m on the right race-based hate crimes are against white people. There side of things.” lines against are hate crimes against straight people. People think It’s the ripple effects emanating from the opposite that it’s all white men in white hoods. That’s really the direction that keep the South Florida resident busier extremism in smallest minority. The highest number of hate crimes than ever. According to a recent FBI report, physical are committed by “thrill seekers”—basically, teenagers assaults against individuals motivated by a personal Florida and and young adults, who aren’t hardcore haters. It’s based bias against race, religion, sexual orientation, ethnicity, on something they’ve learned, like racial bias. That’s a gender identity or disability accounted for 4,571 throughout far more frequent type of hate crime than the Tree of reported hate crimes in 2018—the most in 16 years. Life [synagogue in Pittsburgh] shooting in 2018, which Included in that fi gure was an increase in violence the involved an extremist ideology. against Latinos. The most recent available fi gures in Florida showed Can you talk about the psychological a similar increase in overall hate crimes (which can be Southeastern tentacles that stem from hate crimes? committed against a person or that person’s property). Hate crimes tend to cause more psychological trauma Though much of Barkey’s time involves legal work— United States because of their very personal nature. One of the including recent bipartisan sponsorship between ADL reasons that victims don’t report is that they don’t want and the Florida Hate Crime Coalition of a bill that BY KEVIN KAMINSKI to relive that psychological trauma. We see a similar would close loopholes in Florida’s hate-crime statute— dynamic with victims of rape and sexual assault. he’s also an educator. Barkey helps to train local, state PHOTOGRAPHY The issue with hate crimes is the interchangeability and federal law enforcement agencies so that their of the victim. The perpetrator doesn’t care who you are employees better understand the legal and nonlegal BY EDUARDO personally, all they care is that you’re a Jew or black nuances of hate crimes. or gay. They don’t care if you’re good, bad, a family SCHNEIDER In addition, Barkey deals with complex legal, person, what you do for a living. They just want to legislative and public policy issues related to separation infl ict maximum damage on that person or group. of church and state, religion discrimination and more as That interchangeability has a far-reaching the ADL’s national religious freedom counsel. community impact. There’s a lot of crossover between All of which gave Barkey plenty to discuss with hate crime and domestic terrorism as far as the effect. SFBW. In South Carolina, a lone white supremacist goes into an African-American church and guns down nine According to statistics from the state people. He wasn’t caught right away. So, all the black attorney general, Florida reported 169 hate community knows is that there’s a guy going into crimes in 2017, a 36 percent increase from churches, where we should feel safe, and he’s gunning the prior year. But isn’t it logical to assume people down. The black community was terrifi ed. The that fi gure is low, given the numbers from hate crime is infl icting fear on people for who they are. cities like Miami, which reported zero hate How can you avoid being a victim of that kind of crime crimes? in short of locking yourself in a closet? We know that there is a serious under-reporting problem The reason we believe there should be hate-crime nationally. … In 2017, law enforcement reported 7,175 laws is because of that community impact. And, also,

its DERRICK FRESKE CREDIT PHOTO 54 MAY 2020 • www.sfbwmag.com PLACE LAW Putting HATE here are days, by his own admission, when In his role overall hate crimes [against people and/or property] to the seemingly never-ending battles against the FBI, up 17 percent from 2016. Nationally, nine hate, discrimination and extremism take their with the ADL, cities with a population of over 100,000 didn’t report. toll on David Barkey. But as the Southeastern Another 92 cities reported zero. The Department of area counsel for the Anti-Defamation League David Barkey Justice does a survey every decade about hate-crime quickly points out, “sticking your head in the victimization, and the estimation is that there are Tsand isn’t going to help.” battles on the 250,000 nonfatal hate crime victimizations annually. “Nothing is going to change unless people of By the way, anybody can be a victim and anyone can goodwill want to change things. Even if I’m throwing front legal be a perpetrator of a hate crime. Twenty-two percent of in a little pebble every day, I feel like I’m on the right race-based hate crimes are against white people. There side of things.” lines against are hate crimes against straight people. People think It’s the ripple effects emanating from the opposite that it’s all white men in white hoods. That’s really the direction that keep the South Florida resident busier extremism in smallest minority. The highest number of hate crimes than ever. According to a recent FBI report, physical are committed by “thrill seekers”—basically, teenagers assaults against individuals motivated by a personal Florida and and young adults, who aren’t hardcore haters. It’s based bias against race, religion, sexual orientation, ethnicity, on something they’ve learned, like racial bias. That’s a gender identity or disability accounted for 4,571 throughout far more frequent type of hate crime than the Tree of reported hate crimes in 2018—the most in 16 years. Life [synagogue in Pittsburgh] shooting in 2018, which Included in that fi gure was an increase in violence the involved an extremist ideology. against Latinos. The most recent available fi gures in Florida showed Can you talk about the psychological a similar increase in overall hate crimes (which can be Southeastern tentacles that stem from hate crimes? committed against a person or that person’s property). Hate crimes tend to cause more psychological trauma Though much of Barkey’s time involves legal work— United States because of their very personal nature. One of the including recent bipartisan sponsorship between ADL reasons that victims don’t report is that they don’t want and the Florida Hate Crime Coalition of a bill that BY KEVIN KAMINSKI to relive that psychological trauma. We see a similar would close loopholes in Florida’s hate-crime statute— dynamic with victims of rape and sexual assault. he’s also an educator. Barkey helps to train local, state PHOTOGRAPHY The issue with hate crimes is the interchangeability and federal law enforcement agencies so that their of the victim. The perpetrator doesn’t care who you are employees better understand the legal and nonlegal BY EDUARDO personally, all they care is that you’re a Jew or black nuances of hate crimes. or gay. They don’t care if you’re good, bad, a family SCHNEIDER In addition, Barkey deals with complex legal, person, what you do for a living. They just want to legislative and public policy issues related to separation infl ict maximum damage on that person or group. of church and state, religion discrimination and more as That interchangeability has a far-reaching the ADL’s national religious freedom counsel. community impact. There’s a lot of crossover between All of which gave Barkey plenty to discuss with hate crime and domestic terrorism as far as the effect. SFBW. In South Carolina, a lone white supremacist goes into an African-American church and guns down nine According to statistics from the state people. He wasn’t caught right away. So, all the black attorney general, Florida reported 169 hate community knows is that there’s a guy going into crimes in 2017, a 36 percent increase from churches, where we should feel safe, and he’s gunning the prior year. But isn’t it logical to assume people down. The black community was terrifi ed. The that fi gure is low, given the numbers from hate crime is infl icting fear on people for who they are. cities like Miami, which reported zero hate How can you avoid being a victim of that kind of crime crimes? in short of locking yourself in a closet? We know that there is a serious under-reporting problem The reason we believe there should be hate-crime nationally. … In 2017, law enforcement reported 7,175 laws is because of that community impact. And, also, its DERRICK FRESKE CREDIT PHOTO PLACE www.sfbwmag.com • MAY 2020 55 EDUCATION COLLABORATION

see how two fellow alumni are making a positive impact on both the environment and the community.

MACHINIST APPRENTICESHIP PROGRAM AT COLLEGE GETS BOOST Finding skilled machinists is not easy in today’s market; however, a grant awarded to Atlantic Technical College might lead to better times for the entire manufacturing industry. The college received more than

4ocean’s plastic recovery vessle $584,000 from the Florida Department of Education’s Florida Pathways to Ca- reer Opportunities grant program. The 4OCEAN LANDS AT FAU grants will be used to expand and enhance 4ocean has found a home at Florida Atlantic Technical College’s machinist ap- Ocean Atlantic University’s Research Park. prenticeship programs. 4ocean is a public benefi t corporation The machinist program is sponsored in cleanup founded by two FAU alumni in 2017. The part by the South Florida Manufacturers company’s mission is to end the ocean Association, and was awarded $518,000 company plastic pollution crisis through global to purchase modern equipment to remain cleanup operations and a variety of meth- current and meet industry demands. Atlantic Technical College has received a grant to help train machinists ods that help stop plastic pollution at its Matthew Rocco, president of SFMA, plants roots at source. says the entire industry will benefi t from Andrew Duffell, FAU Research Park’s the program. “Overall, there’s a shortage along with more standard machinery. nez says there’s no specifi c time frame for research park president, says the move will be mutually of talent for skilled machinists,” he says. SFMA has been partnering with Atlantic students to continue working. “As long as advantageous for FAU students as well as “All the local manufacturers, and the Technical College for more than 11 years. they’re performing well and maintain a 3.0 BY MARTIN LENKOWSKY the company. “The proximity to students, entire manufacturing industry will bene- The curriculum covers a wide range of GPA,” he says. “They can apply for full- undergraduate and graduate, can be a pipe- fi t,” says Dennis Battistella, SFMA’s ap- material. Students are trained in multiple time jobs at FPL upon graduation or while In this installment of the Education line of employees,” he says. prentice coordinator. Equipment purchased duties ranging from basic math and they’re working here.” Collaboration series, we examine part-time The research park was founded in 1985, with the grant money will be used to pur- blueprint reading to eventually becoming Students working as customer service employment opportunities for Palm Beach State and will be celebrating its 35th anniversary chase both high-tech computer equipment certifi ed in a number of machinist skills. representatives can apply for other posi- College students with FPL, an ocean cleanup fi rm this year. Duffell says it attracts a diverse tions as well and are not limited to cus- 4ocean cofounders Alex Schulze and Andrew Cooper setting up shop at Florida Atlantic University, group of companies including imaging- FPL OPENS CAREER PATHS FOR tomer service occupations. “We’re looking and a grant to train future machinists. and technology-delivering businesses. The park is focused on supporting research SOME PBSC STUDENTS to build a future pipeline,” Martinez says. and development at FAU. Duffell adds that Approximately 15 Palm Beach State “Once they join the company, there are many companies at the park are devoted College students are scheduled to start endless opportunities.” to bettering the community and the envi- part-time jobs this month at Florida Pow- Students can major in any fi eld of study, ronment. er & Light’s customer care center at the and can continue to work as long as they’re Duffell says 4ocean has a little more company’s customer service east offi ce on enrolled in school. Through the program, than 100 employees. However, he expects Village Boulevard in West Palm Beach. students will receive paid training and $12 that number to increase. “They have some The partnership between the utility com- an hour. Martinez says FPL will accommo- pretty aggressive growth plans,” he says. pany and the career centers at the college date students’ schedules. Faculty and staff from FAU’s College was announced earlier this year. This marks the fi rst time PBSC and FPL of Engineering & Computer Science will FPL senior customer care manager Sil- have entered into a partnership. A similar work with 4ocean on various projects, and vio Martinez says students must have at arrangement has already been established Duffell says 4ocean will provide research least a 3.0 grade-point average and work 20 with Florida International University in opportunities for both faculty members and to 29 hours a week. They will be employed Miami-Dade County.♦ students at FAU, as well as letting students as customer service representatives. Marti- The 4ocean team moves into its new headquarters FPL’s Silvio Martinez

56 MAY 2020 • www.sfbwmag.com EDUCATION COLLABORATION

see how two fellow alumni are making a positive impact on both the environment and the community.

www.sfbwmag.com • MAY 2020 57 SPECIAL MARKETING SECTION GUEST COLUMN

PEOPLE, PASSION, PROFITS Together or no Emotionally intelligent ways to survive and thrive in these strangest of times BY STEPHEN GARBER

There are lots of emails going around that An Alternative to Noncompetes: give us lots of support and “how to.” From jokes and videos to ways of working virtually, the outpouring of ideas and Forfeiture for Competition Agreements support is stunning. I believe it is our inner selves that we BY HANK JACKSON must draw on to survive and thrive. Our relationship with ourselves, our families, our Enforcing covenants not to compete severance pay, stock incentives, deferred agreements become more common, there friends and our colleagues start from the inside out. against former employees or sellers of payments and earnouts. A major advantage are precautions to consider. You may be emotionally strong and stable, having worked at it in your businesses always has been somewhat of this type of arrangement is that it can be Most apparent, such agreements create life. It takes work, discipline and self-control. problematic. In particular, noncompete enforced by an employer or a purchaser a ceiling on the recovery against the My small offering is about keeping the stress to a level that is manageable agreements are governed by state laws that of a business without fi ling a lawsuit and competing party. A scenario can develop while recognizing that we are all in this together, yet with circumstances that differ considerably state by state, depending obtaining a court order. The benefi ts are where the agreed-upon forfeiture amount are likely unique to our own lives. We are all snow. We are in this together. And on public policy. For instance, California simply withheld requiring the competing turns out to be too small compared to the each of us is a snowfl ake. My life is nothing like yours, no matter what it may is well-known for its public policy against party to initiate a lawsuit for damages if potential reward to the competing party— look like. And your life is like no one else’s. That alone is worth remembering. noncompetes while Florida more strictly there is a disagreement. Equally important, thus creating an incentive to compete. Also, And, here are some practices that we are fi nding helpful in our lives: enforces them. the court is never faced with making the from the prospective of an employer or As best as you can … The lack of uniformity in noncompete hard decision of whether or not to enter purchaser of a business, the actual losses CREATE A ROUTINE laws is most troubling for companies an order prohibiting a person from certain incurred from the competition might end Exercise. It naturally releases all kinds of healthy “stuff” in the body, and we that operate throughout numerous state employment or a scope of business. Instead, up far exceeding the agreed upon forfeiture look and feel better about ourselves. jurisdictions. Also, as a practical matter, the court will consider only whether the amount. As a result, such agreements are best Real quiet time. Schedule meditation, yoga or just chillin’. many judges are simply reluctant to enter competing party must forfeit the monetary used when the losses from the competition Limit work to a specifi c amount of time and at regular times. orders prohibiting people from working in benefits that were previously agreed to can be reasonably quantifi ed at the time such Food and other compensations are worth controlling. their chosen fi elds. Litigating noncompete between the parties. The courts, in general, agreements are entered. IF YOU ARE WORKING FROM HOME disputes are routinely expensive and the are signifi cantly more likely to uphold a Another precaution is that the forfeiture Find your quiet space, where you can really focus. results uncertain. forfeiture of agreed upon monetary benefi ts of Employee Retirement Income Security Make agreements with your partner/spouse/family for how to be so close for As a consequence, employers and than to enter an order enjoining a person from Act-qualified benefits, which typically so much time—and how to “take space” purchasers of businesses are more frequently employment or a scope of business. vest, might not be permitted under ERISA. Have patience and empathy—with everyone, particularly If you have kids at turning to “forfeiture for competition As forfeiture for competition Before including a forfeiture provision home. I don’t, so I cannot truly advise. But, if you do the steps above, your stress agreements.” Such agreements basically relating to an ERISA-qualified benefit management will help you cope. We do know that children are very susceptible provide that if the employee or seller plan, one should fi rst seek professional to stress and fear. They are missing their routine and friends. Depending on age, of a business competes, then such advice regarding the plan. they won’t totally understand this. (As if adults do.) competing party forfeits In sum, forfeiture for competition Stay connected to family and friends. You know how. Make it happen. certain benefi ts such as agreements can be a more effective and WATCH YOUR MIND effi cient method to assure compliance with Thought is creative. When we get consumed by fear, doubt and worry, our noncompete restrictions when used in the entire system goes into reaction and stress. When we control our emotions and proper circumstances. our thoughts, we are healthier and better at all that we do. Limit the watching of the news. It is addicting. And it can bring our minds to Hank Jackson of Shutts & Bowen is unhealthy thoughts and feelings. south florida legal guide monthly legal south florida board-certifi ed in business litigation by the Control yourself, which will control your mind, which will control your Florida Bar. He represents individual and reactions. companies in a variety of business disputes, Have some fun. Movies. Games. Books. YouTube—learn something. including noncompete claims, trade secret Focus on what you have. Love. Health. Family. Community. Prosperity. misappropriation claims, and business Stay safe and well! control and dissolution claims within closely held businesses. Contact him at hjackson@ Stephen Garber is director of Third Level Ltd. Contact him at 561.752.5505 or shutts.com. [email protected].

58 MAY 2020 • www.sfbwmag.com SPECIAL MARKETING SECTION GUEST COLUMN

PEOPLE, PASSION, PROFITS SALES STRATEGIES Together or no The difference between Emotionally intelligent ways to survive leading and managing and thrive in these strangest of times BY GRETA SCHULZ BY STEPHEN GARBER Leadership and management are There are lots of emails going around that often misunderstood as one in the An Alternative to Noncompetes: give us lots of support and “how to.” From same. They are not. Certainly, a jokes and videos to ways of working good leader should be able to virtually, the outpouring of ideas and manage and vice versa. But, it Forfeiture for Competition Agreements support is stunning. is important to understand the I believe it is our inner selves that we difference. Both are important to BY HANK JACKSON must draw on to survive and thrive. Our the success of an organization. relationship with ourselves, our families, our The key difference between the two is Enforcing covenants not to compete severance pay, stock incentives, deferred agreements become more common, there friends and our colleagues start from the inside out. that management is about processes, and leadership is about people. against former employees or sellers of payments and earnouts. A major advantage are precautions to consider. You may be emotionally strong and stable, having worked at it in your You manage your accounts payables but you lead your accounts businesses always has been somewhat of this type of arrangement is that it can be Most apparent, such agreements create life. It takes work, discipline and self-control. payable administrator. Understanding this is the key to motivating, problematic. In particular, noncompete enforced by an employer or a purchaser a ceiling on the recovery against the My small offering is about keeping the stress to a level that is manageable coaching and growing your people to the very best of their ability. agreements are governed by state laws that of a business without fi ling a lawsuit and competing party. A scenario can develop while recognizing that we are all in this together, yet with circumstances that This happens in an organization for many different reasons. Most differ considerably state by state, depending obtaining a court order. The benefi ts are where the agreed-upon forfeiture amount are likely unique to our own lives. We are all snow. We are in this together. And often, it is because we promote people for all of the wrong reasons. The on public policy. For instance, California simply withheld requiring the competing turns out to be too small compared to the each of us is a snowfl ake. My life is nothing like yours, no matter what it may most common ones are length of service, the next manager is the one is well-known for its public policy against party to initiate a lawsuit for damages if potential reward to the competing party— look like. And your life is like no one else’s. That alone is worth remembering. who has worked there the longest, and the other is that they are good noncompetes while Florida more strictly there is a disagreement. Equally important, thus creating an incentive to compete. Also, And, here are some practices that we are fi nding helpful in our lives: at the task at hand. For example, they have had the best sales record so enforces them. the court is never faced with making the from the prospective of an employer or As best as you can … they become the sales manager. The lack of uniformity in noncompete hard decision of whether or not to enter purchaser of a business, the actual losses CREATE A ROUTINE Unfortunately, we learn management skills as opposed to leadership laws is most troubling for companies an order prohibiting a person from certain incurred from the competition might end Exercise. It naturally releases all kinds of healthy “stuff” in the body, and we skills very early on. Our parents tell us what to do as opposed to that operate throughout numerous state employment or a scope of business. Instead, up far exceeding the agreed upon forfeiture look and feel better about ourselves. teaching us to think of the answer to questions on our own. This is one jurisdictions. Also, as a practical matter, the court will consider only whether the amount. As a result, such agreements are best Real quiet time. Schedule meditation, yoga or just chillin’. among several reasons why management, as opposed to leadership, is many judges are simply reluctant to enter competing party must forfeit the monetary used when the losses from the competition Limit work to a specifi c amount of time and at regular times. how we typically run an organization. The four most important aspects orders prohibiting people from working in benefits that were previously agreed to can be reasonably quantifi ed at the time such Food and other compensations are worth controlling. of leadership, and specifi cally sales leadership: their chosen fi elds. Litigating noncompete between the parties. The courts, in general, agreements are entered. IF YOU ARE WORKING FROM HOME • Recruiting. The ability to attract and retain the best is imperative in disputes are routinely expensive and the are signifi cantly more likely to uphold a Another precaution is that the forfeiture Find your quiet space, where you can really focus. success of an organization. Recruitment should be an ongoing process results uncertain. forfeiture of agreed upon monetary benefi ts of Employee Retirement Income Security Make agreements with your partner/spouse/family for how to be so close for and should never wait for a need. There is always a need for someone As a consequence, employers and than to enter an order enjoining a person from Act-qualified benefits, which typically so much time—and how to “take space” better than your best person isn’t there? purchasers of businesses are more frequently employment or a scope of business. vest, might not be permitted under ERISA. Have patience and empathy—with everyone, particularly If you have kids at • Coaching. Coaching is always teaching, rarely telling. Teaching turning to “forfeiture for competition As forfeiture for competition Before including a forfeiture provision home. I don’t, so I cannot truly advise. But, if you do the steps above, your stress is helping subordinates realize the answer on their own and not always agreements.” Such agreements basically relating to an ERISA-qualified benefit management will help you cope. We do know that children are very susceptible blurting out the answer for them. There is a real pride in coming up with provide that if the employee or seller plan, one should fi rst seek professional to stress and fear. They are missing their routine and friends. Depending on age, answers on their own which is what we all strive for in an employee. of a business competes, then such advice regarding the plan. they won’t totally understand this. (As if adults do.) • Accountability. Creating a clear and detailed written plan that competing party forfeits In sum, forfeiture for competition Stay connected to family and friends. You know how. Make it happen. involves a 30-60-90-day written goal that not only involves revenue certain benefi ts such as agreements can be a more effective and WATCH YOUR MIND goals but behavior goals as well. Behavior goals are the action steps effi cient method to assure compliance with Thought is creative. When we get consumed by fear, doubt and worry, our that are taken to prospect daily, weekly and monthly. noncompete restrictions when used in the entire system goes into reaction and stress. When we control our emotions and • Motivating. Understanding what motivates each individual is what proper circumstances. our thoughts, we are healthier and better at all that we do. will elevate him or her to the next level. Motivation is different for each Limit the watching of the news. It is addicting. And it can bring our minds to individual, and a true leader knows how to unlock it. Hank Jackson of Shutts & Bowen is unhealthy thoughts and feelings. So are you a good leader or just a manager? How about your sales south florida legal guide monthly legal south florida board-certifi ed in business litigation by the Control yourself, which will control your mind, which will control your manager? Better ask the questions. You never know what you might Florida Bar. He represents individual and reactions. learn. companies in a variety of business disputes, Have some fun. Movies. Games. Books. YouTube—learn something. including noncompete claims, trade secret Focus on what you have. Love. Health. Family. Community. Prosperity. Greta Schulz is president of Schulz Business, a sales consulting misappropriation claims, and business Stay safe and well! and training fi rm. She is the author of “To Sell is NOT to Sell.” control and dissolution claims within closely For more information or free sales tips, go to schulzbusiness.com held businesses. Contact him at hjackson@ Stephen Garber is director of Third Level Ltd. Contact him at 561.752.5505 or and sign up for “GretaNomics,” or email sales questions to greta@ shutts.com. [email protected]. schulzbusiness.com.

www.sfbwmag.com • MAY 2020 59 EXCELLENCE IN HUMAN RESOURCE AWARDS

SFBW celebrated outstanding leaders in the HR ﬁ eld with a gala reception and dinner at Gulfstream Park. GALA CELEBRATION Honorees were proﬁ led in the April issue of SFBW, which can be found at SFBWmag.com.

The health care category: Sponsor Alan Berger of StevenDouglas, honorees Delancey Johnson of Memorial Healthcare System, Michelle Kligman of Jackson Health System, Randi Shane of Image Skincare, Carolina Castillo with Community Health of South Florida, Rosella Weymer with the Health Care District of Palm Beach County, Carl McDonald of Cleveland Clinic Florida, Zoe Hernandez Wolfe of Baptist Health South Florida, Evelyn Andrade of Quick Weight Loss Centers and SFBW Chairman and CEO Gary Press

Jose Tomas , principal and managing partner of brandsparc holds the Lifetime Achievement Award. Joining him are Alan Berger of StevenDouglas and SFBW Editor-in-Chief Kevin Gale, Attendees enjoy networking at Gulfstream Park’s Sport of Kings Theatre before the awards program SFBW Chairman Gary Press and SFBW Associate Publisher Clayton Idle

The hospitality category: Sponsor Stephen Garber of Third Level with honorees Aimee Mangold of Kolter Hospitality, Michelle Boyer of Dan Fudge, president of Alternative Revenue The Ritz-Carlton Yacht Collection, Lisa Parisi of Carnival Cruise Line, Jeremy Campos of Hard Rock Stadium and SFBW Associate Publisher Solutions, welcomes attendees Clayton Idle

60 MAY 2020 • www.sfbwmag.com EXCELLENCE IN HUMAN RESOURCE AWARDS

The banking and ﬁ nancial services category: Sponsor Phil Wodecki of JC White and honorees Melissa Pineda of Apollo Bank, David Lyons with iThink Financial (formerly IBMSECU), Elizabeth Jimenez with Tropical Financial Credit Union, Katie Barnes of Bankers Healthcare Group and SFBW Associate Publisher Clayton Idle

Julie Staub of Jackson Health and honoree Dionne Wong of Childnet

South Florida-based comedian Carl Guerra Rich Ducharme of sponsor Brown & Brown entertains attendees makes remarks

Attendees enjoy networking at Gulfstream Park’s Sport of Kings Theatre before the awards program

Sponsor Alan Berger of StevenDouglas with Nick Valverde of brandsparc and Jamie Javorsky of StevenDouglas Attendees watch the opening video for the Excellence in HR Awards

Honorees, team members and sponsors gather for a group shot

www.sfbwmag.com • MAY 2020 61 TECHNOLOGY

“Now, they call the bank and the bank point of sale system was compromised. ommends using three to four random should have been able to stop it and get it “We just did a simulated phishing attack words. back immediately. But the bank screwed against a law firm—Harvard-educated law- When it comes to online sites, Scheidell around and said, ‘Well, no, you did it. You yers, college degrees—you know, 24 per- said to look for online addresses that have did it. You did it.’ And it took three days for cent of them either clicked on it or down- “https,” which is the secure version of the bank to finally decide that there were 17 loaded the attachment to see what was in “http” addresses. people throughout the United States, con- it?” Scheidell said. Try to use technology on your phone nected to that client’s account at the same RSA, one of the biggest names in to make purchases, such as Apple Pay or time taking money out,” Scheidell said. computer system, was hacked because a Google Pay, which create a temporary One stunning statistic is 76 percent of vendor was allowed to access the system virtual card, he said. Avoid swiping your businesses that have been hacked don’t without the usually required key fob. card because the magnetic strip too often know that’s happened until law enforce- “So, somebody came in, stole all the soft- has all the information to duplicate your ment tells them. ware for it, was able to break into Boeing, card. An unethical worker could be hid- In one high profile case, Citrix Systems, was able to break into the Department of De- ing a card skimmer in their pocket. the biggest software company in South fense. And six years later, the Chinese had a Similarly, don’t leave the flag up on Florida, disclosed that hackers penetrated stealth fighter that looked an awful lot like your mailbox with bills that include checks, its networks for five months, making off the one that we’re building,” Scheidell said. which have all your account information. with financial data on contractors, employ- To help avoid falling victim to the To secure their systems, companies ees and job candidates. cryptovirus, which can encrypt and should look at firewalls and web filters. The FBI told Citrix that the hackers ap- freeze system access, it’s important to The latter prevent employees from going parently used a number of common pass- make backups and then make sure they to nonbusiness websites where hackers words to penetrate the company. are not connected to the system, Scheidell are more likely to lurk. “Some of these Scheidell said he did an audit at one said. Hackers look for the backups on less secure websites are loaded with company and found 22 percent of the active networks to encrypt them. hacks, attacks and malware,” he said. passwords were “Password1,” including an Sometimes, hackers don’t or can’t unen- Realize the seriousness of getting administrative account. crypt systems even if a ransom is paid. hacked, he said. A credit card company “You don’t need a hacker. You just It’s also important to think about what’s could actually stop you from taking credit need employees that aren’t paying too sent via email, which is typically unen- cards, Scheidell said. There’s even the risk much attention,” Scheidell said. crypted. Don’t email sensitive data, such as of criminal liability and jailtime, especially CYBERSECURITY: If a company gets hacked, he warned a financial spreadsheet, he said. if you are storing health care data. that the FBI can take all of its computers, Beware of open Wi-Fi hot spots be- Companies should carefully exam- especially if they were used to hack into cause they could be set up by a hacker ine where their most important data is other people’s computers. posing as a business and collecting your stored, which Scheidell calls “the crown Protecting the castle Data networks can have vulnerabili- data as it flows through. jewels.” Get a machine that matches the ty in ways many business people would Think of what might happen is some- machine that holds the data and test how overlook. For example, printers on a one’s phone is lost, stolen or duplicated. long it takes to do a restore from a backup. TIPS ON COPING IN AN ERA OF VULNERABILITY corporate network have a port that There are too many instances of imposters Then, calculate the per-hour cost of being could be hacked. Someone could type in posing as someone who has lost their phone knocked off online, he said. In one case, C3 BY KEVIN GALE text and the next time checks are print- and getting a SIM chip that let’s them take was doing testing for a pharmacy company ed, an extra one is slipped in, ready to be over somebody else’s phone service. that used a third-party service to look up

Businesses might want to think twice White, a commercial BY KEVINBY KEVIN GALE GALE | PHOTOGRAPHY | PHOTOGRAPHY BY EDUARDOBY EDUARDO SCHNEIDER SCHNEIDER interior design and deciding they would rather do business mailed to the hackers. One strategy to combat hackers is mul- domain names. if they think hackers wouldn’t be inter- products supplier in Miramar. with a more-secure company if a hack- Companies need to be careful about ven- tifactor verification, but Scheidell suggests “We found problems with it and they ested in targeting their business or they Think about the worst thing your coming event happens. Scheidell said he has dors who have access to their system. One avoiding text-based verification since called the manufacturer, who said, ‘Oh, have little to lose. petitors could get, Scheidell said. How closed accounts at a couple of banks in of the most widely publicized incidents someone who has stolen your phone iden- no, it’s secure and we know more than Michael Scheidell, chief security offi- about your customer lists, the discounts the past few years because their network involved the hacking of Target, where tity will get the text. An alternative used by these guys.’ They were a big Fortune 500 cer for C3 Cloud Computing Concepts, given to certain customers, a list of ven- security is lax. the information of 110 million customers many companies is answers to pre-chosen company,” Scheidell said. “Three months gave an update on some of the latest dan- dors and what you pay them for products? In one instance, he was working with might have been compromised. One of its questions. later, every one of these domain servers gers and how to avoid them at an event Then, there’s the danger of payroll and the Secret Service on a payroll issue and vendors, an air conditioning contractor, fell Try not to use passwords or verifi- all throughout the country got hacked and sponsored by the South Florida Manu- banking information getting exposed. they watched as $48,000 disappeared victim to a phishing attack and then mal- cation answers that would be easy for knocked offline. And the pharmacy was not facturers Association. It was held at JC The ripple effect could be customers from an account. ware was able to get the credentials to log someone to guess, such as the name of able to ship anything for three days, and it into Target’s system. Ultimately, Target’s pets posted on Facebook. Scheidell rec- cost him a lot of money.” ♦ Michael Scheidell, chief security ofﬁ cer for C3 Cloud Computing Concepts

62 MAY 2020 • www.sfbwmag.com TECHNOLOGY

www.sfbwmag.com • MAY 2020 63 TECHNOLOGY

The role moved him firmly into government relations and gave him a bipartisan outlook. “We were looking for friends and allies that would support us and it was a great learning experience as well as I think it really led to building some of my foundational structure and knowing how to work through a nonprofit organization,” Kidd says. He spent a lot of time in South Florida because of the amount of shopping center development here. The council restructured and offered him a job in Washington, D.C., but Kidd says he turned it down because he wanted to stay in Florida. He joined shopping center developer Mel Sembler, who knew Kidd from the council. Sembler served as an ambassador to Australia and was once finance chair for the Republican Party. Kidd says he was a key mentor in his career. Sembler ended up working on Lamar Al- exander’s campaign for president “It’s a much different atmosphere raising money, $10,000, $25,000, $50,000, $100,000, than it is going out and getting small contributions for a local campaign at $25, so that was a really interesting dynamic time,” Kidd says. After Alexander’s campaign Kidd learned that the FAPSC was looking for an executive director. He was selected out of rough- ly 100 applicants. FAPSC focuses on what might be called career colleges, ranging TechLauderdale lands its first CEO from technology and truck driving schools BY KEVIN GALE | PHOTOGRAPHY BY EDUARDO SCHNEIDER to what was then called Keiser Career Col- ecil Kidd built the Florida Association of Kidd is a native Floridian, born in Orlan- lege (now Keiser University). Postsecondary Schools and Colleges into a do and growing up in St. Petersburg, before Like the SFTA, FAPSC only had a part- full-fledged professional organization, and earning a political science degree at Principia time person before Kidd arrived. The organi- now he’s poised to do the same for the new College in Illinois. zation had a thin budget and held one annual TechLauderdale. He started building connections in junior convention and occasionally hired a lobbyist. TechLauderdale is a rebranding of the high when he reached out to Congressman “So, I stayed with them for 10 years, we South Florida Technology Alliance, a long- Bill Young, the senior ranking Republican to built it from an organization that was, again standing organization that has had a heavy speak to his class. He later interned for him somewhat organized to a highly organized concentration of Broward County members. and was hired full time. trade association that was well-known by the TechLauderdale is getting support from He spent about 2½ years there and had the time I finished with them. They were well- heavyweight business groups and colleges, opportunity to run a couple of campaigns for known in Tallahassee. We were being invited including the Broward Workshop, the Greater the Florida House and mayor of St. Peters- to sit in on a rewrite of the Florida education Fort Lauderdale Alliance, Broward College burg. He had a stint in Tallahassee and moved laws,” Kidd says. and Nova Southeastern University. from political work to government relations He moved to Oklahoma City because of The SFTA relied on a part-time profes- at Operation PAR, a nonprofit drug rehabil- a girlfriend and developed a home pet care sional staff, but Kidd brings not only his itation center. The International Council of business that ended up doing pretty well amid experience building FAPSC, but also cam- Shopping Centers hired him to lead the new the Great Recession. He talked with a friend pus president of Keiser University’s Col- regional government relations office in Tal- who was a vice chancellor of operations at lege of Advanced Technology in Pembroke lahassee. It was a time of rapid growth in Keiser College and they joked a bit about him Pines and regional director of government the state, and Kidd registered as a lobbyist joining. The discussion subsequently turned relations for the International Council of to help the council achieve its goals amid serious when Keiser was looking for a new Shopping Centers. anti-growth measures. campus president for a Pembroke Pines lo-

64 MAY 2020 • www.sfbwmag.com TECHNOLOGY

www.sfbwmag.com • MAY 2020 65 TECHNOLOGY

cation that shop, an or- would ganization of focus top business on tech- leaders in the nology. county. After sev- Kidd sees en years parallels between at Keiser, Broward County Kidd had a and his experience turnaround op- in St. Petersburg. portunity at East Broward tends to get West College of Nat- lumped in with Miami ural Medicine in Saraso- from a national standpoint, ta. It was nice to be near his much like St. Petersburg is family again, he says, but he found overshadowed by Tampa and the he missed South Florida. Tampa Bay area. He saw a posting on LinkedIn by Sher- “So you know, first and foremost, is, I lock Talent CEO Alex Funkhouser, who was think, working with the Alliance with the the 2019 president of TechLauderdale, about the Broward Workshop, with the chambers, we organization’s search for its first CEO. need to focus on really building a brand here, and “We conducted a national search to identify a candi- that’s where this transition is from the South Florida Tech- date with exceptional leadership and relationship-building nology Alliance to TechLauderdale, really creating the skills who understands how to succeed with institutions, brand that Fort Lauderdale has an incredible technology such as local and out-of-state businesses, universities, eco- ecosystem,” Kidd says. nomic development groups and government,” Funkhous- While Broward has some notable tech companies, er said when Kidd’s selection was announced. “There is such as Citrix Systems, Magic Leap and Ultimate Soft- no question, Cecil Kidd has the right stuff to lead this ex- ware, Kidd has a more encompassing view of how tech- citing organization and help establish Fort Lauderdale as nology pervades most businesses these days. the place to be in tech.” He noted how he recently bought vegetables from a Kidd says he likes the challenge of again being on the roadside stand, which would have once necessitated ground floor of building an organization. handing over money, but the attendant just pulled out “I don’t like to go into the jobs out there you just keep a Square widget and swiped his credit card. Similarly, the status quo—it’s operating fine and you just come in,” City Furniture CEO Keith Koenig is noted as saying he he says. “Until an organization takes on the financial re- operates a tech company that happens to sell furniture. sponsibility of saying we’re going to move forward as a Kidd adds that AutoNation is another example of a major professional organization, it is definitely hard to grow.” technology company as the nation’s top retailer of new A key role for Kidd will just be spreading the word of vehicles. what TechLauderdale has to offer. The goals are to en- In other businesses, he thinks, there needs to be a shift hance technology education, provide more networking in corporate cultures to embrace risk and the consequence opportunities and engagement, strengthen the technology of failure, which is celebrated in places like Silicon Valley. business community and put the Fort Lauderdale area on He invites the business community to engage by be- the map nationally as a tech hub. That will build on the coming TechLauderdale members. The five tiers range efforts of other organizations, such as the TechGateway from $25 a month for individuals to a $3,500 platinum developed by the region’s three county-level economic level that provides 10 memberships and an array of dis- development organizations. The TechLauderdale move- counts and media spotlight exposure. ment has been propelled strongly by the Broward Work- To learn more, visit techlauderdale.org.♦

66 MAY 2020 • www.sfbwmag.com TECHNOLOGY

www.sfbwmag.com • MAY 2020 67 EdMorse.com

68 MAY 2020 • www.sfbwmag.com