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SeptemberlOctober 1997 Volume 1, Issue 1

ON THE COVER: Wayne Huizenga, Florida’s The Magazine of Free Enterprise & Public Policy mega-entrepreneur, sets out to prove the critics columns wrong — again. ENVIRONMENT COMMON SENSE 4

by Jon I.shebe4 publisher A Greener Shade Of Brown 23

COMP WISE 6 by martha edenfield by frank white

LEGAL POLITICALPLATFORM 8 page28 CivilRICO:NewWeapon by marian Johnson Of Choice? 28

by danielpopeo THE HUMAN SIDE 19 by kathleen “kelly” bergeron HEALTHYBUSINESS IN Box 20 CreativityBringsBusiness comp flea’ by kristin foss, ToLife 32 associate editor by scott west, m.d.

PURSUITOF HAPPINESS 46 TECHNOLOGY byJacquelyn horkan, editor page 3G TakingAdvantage Of The Year features 2000 Problem 36 kvJeff minder COVER STORY Wayne Huizenga: FEDERALISSUES HasHeGot A Deal RediscoveringAmerica’s ForYou! 10 Greatest Resources 41 byJacquelyn horkan, editor 4page by congressman J.c watts Jr FLORIDABUSINESSINSIGHT i SEPTEMBER/OCTOBER1997 3 c o in in o n s e n s e

I hyjon 1. shebel, publisher

ii only because it keeps the job engine running. And the best The Noble antipoverty program is, after all, employment. Maximizing profits also results in Pursuit Of Profit better products at cheaper prices. For instance, today’s steel-belted

• radial lasts much longer than a tire ho can forget (and who wants to remember) the recession of purchased in 1930. With inflation

• factored in, on a cost-per-mile- 1991 when the professionally sympathetic sobbed over the W • driven basis, the tires on your car tragedy of corporate downsizing? According to what passes for today aclually cost less than the tires your parents or grandparents conventional wisdom, companies were ruthlessly laying off employees • put on their cars 60 years ago.

for no other reason than to maximize profits. - Those of us fortunate enough to be

• living in America today lead longer,

Liberals love to accuse business leading local proponents of no • healthier lives and we have more owners and executives of “just growth was none other than leisure time and disposable income being in it for the money!’ Oddly Mr. Chouinnard. • than those in the generations that enough, these accusations seem to Patagonia has now revised its no- preceded us. This happy situation is strike a chord with some of those growth goal to one of slow growth. due in some small part to owners and executives. Considering the company’s recent government. Most of the progress, however, flows from the I recently read a story about Yvon past, this is a smart management Chouinnard, the founder and owner decision, but the company cannot innovations and risks taken by the of Patagonia Inc., an outdoor acknowledge it as such because - wealthy — those who seek to clothing company. His company’s the owner and his employees are maximize profits. Fall 1991 catalog began with the self-professed haters of business. • So let those who hate themselves self-indictment, “Everything we Mt Chouinnard once told a group for making a profit go on hating themselves — as long as they go on make pollutes.” Mr. Chouinnard • of marketing consultants that he then promised that his company considers business people making profits. The rest of us will would address the “problem” by greaseballs. continue enjoying profit as the slowing, and gradually terminating, Mt Chouinnard’s denial that he is measure of what works best and as the means to do more. the growth of his company. • a businessman calls to mind the At the time, Patagonia actually alcoholic who can’t face up to his - had no choice but to slow its drinking problem. He is -t growth. Shockingly poor business emblematic of what management had produced years of you might call the

unplanned and unregulated growth • post-modern that had turned the company into entrepreneur, the an overfed behemoth. In-house anti-business business product lines competed with each person. These often well- other and cannibalized company to-do individuals

profits. In July of 1991, the company • seem to despise had to cut loose 20 percent of its the prosperity of

work force. Unfortunately, these • others and employees found themselves facing denigrate profit a tight recessionary job market seeking as greed. made tighter by the no-growth This is foolishness. philosophy of Ventura, Calif., Maximizing home to Patagonia. One of the profits is a noble end

4 SEPTEMBER/OCTOBER1997 FLORIDABUSINESSINSIGHT ______

(bylines)

PUBLISHER kathleen “kelly”bergeronis senior vice president—human Jon L. Shebel resources for Associated Industries of Florida. She has more than 20 years of experience in designing and implementing effective EXECUTIVEEDITOR ‘7I systems to maximize production, monitoring quality assurance Peter j. Breslin programs, developing comprehensive budget plans, and establishing — departmental goals. She holds a master’s degree in counseling EDITOR psychology from Nova Southeastern University. Jacquelyn 1-lorkan martha edenfieldpractices administrative law, with an ASSOCIATE EDITOR emphasis on environmental law, with the firm of Pennington, Kristin Foss Moore, Wilkinson & Dunbar, PA, in Tallahassee. During her 23 years in private practice, Edenfield has served as legal and MANAGING EDITOR! governmental counsel for agricultural trade groups, industrial CREATIVEDIRECTOR associations, medical doctors, and local governments. She received Dwight vt. Sumners undergraduate and law degrees from Florida State University.

GRAPHIC DESIGNERS marian o1znsonis senior vice president—political operations Pat Cross with AssoEiated Industries of Florida and manages the Florida Gregory Vowell Business United research organization, AIF’spolitical arm. Her extensive political experience spans more than 30 years, having served on numerous presidential campaigns at the national level, as well as many state Senate and state House campaigns. Her expertise ADVERTISINGREP ranges from candidate recruitment to campaign management. Omni Communications Phone: (850) 222-9291 Jeffninder is vice president of Image API, Inc., in Tallahassee. Fax: (850) 224-6532 Minder has worked as a consultant in the design and implementation E-mail: [email protected] of computer systems for six years. He holds degrees in computer . science and mathematics. EDITORIALOFFICES daniel popeois chairman and general counsel for the 516 North Adams Street Washington Legal Foundation, which he founded 20 years ago. He has served on the White House legal staff, worked in the P.O. Box 784 Attorney General’s Office at the Department of Justice, and Tallahassee, FL 32302-0784 practiced as a federal trial attorney with the Department of the Phone: (850) 224-7173 Interior. He received his undergraduate degree from Georgetown Fax: (850) 224-6532 University as well as his JD from the university’s law center E-mail: [email protected] Internet: http://aif.com Jon 1.shebelis president and CEO of Associated Industries of Florida and affiliated corporations. He has worked for more than 26 years as a lobbyist for AIFand directs all legislative efforts based Florida Business Insight is published on the board of directors’ positions. Shebel graduated from The bimonthly by Associated Industries of Citadel and attended Stetson University College of Law. florida Service Corporation to inform readers about issues pertinent to florida’s congressman s.c.watts Jr. (R-Oklahoma) has been an active businesscommunity. proponent of faniily values and cultural renewal since his election Comments and opinions expressedin to the U.S. House of Representatives in 1994. HisCommunity this magazine represent the personal Renewal Project represents the culmination of more than eight years views of the individuals to whom they are worth of vision for fiscally challenged communities. He received a BA attributed and/or the person identified as in journalism from the University of Oklahoma. the author of the article and may not necessarily be those of the magazine and/ scott west, m.d., is a nationally recognized researcher in the or its publisher. Further, the publisher field of psychopharmacology, and continues his research at the reserves the right to edit all manuscripts Psychiatric Institute of Florida in Orlando. He earned his medical and submissions. degree from the University of Florida and trained in psychiatry at ©1997. All rights reserved. Cover and the Emory University School of Medicine. contents herein may not be repmduced in any form in who]e or in part without prior is executive vice president & COO of Associated written permission. Printed in USA. frank white Industries Insurance Services, Inc., in Boca Raton. He is actively involved in legislative issues dealing with workers’ compensation insurance and serves as chairman of the Florida Self Insurance Fund Guaranty Association and as vice chairman of the Florida Workers’ Compensation Joint Underwriting Association. He received a BA in Meether, Florida0Magazine Association mathematics from the University of South Florida

FLORIDABUSINESSINSIGHT SEPTEMBER!OCTOBER1997 5 p.F! o m p w i s e by frank white

The attempts to tighten the definition of what constitutes a The Fire Ants catastrophic claim qualifying for lifetime benefits have failed miserably. The number of claims for Of Workers’ permanent total disability have increased over the last several years. Florida now records one of the country’s highest incident rates for Comp these claims. This is not because Florida is unsafe for workers; rather, it’s flhose of us involved in workers’ compensation sometimes feel a because every attorney alleges that 1 kinship with those hapless homeowners whose lawns are invaded any claimant with a backache is t incapable of ever holding gainful by fire ants. Kill off one anthill and a few days later another sprouts up. employment. To support the Ignore the mound of dirt long enough and it grows into an insect allegations, psychiatrists render opinions that these claimants are condominium. permanently impaired as a result of

• depression caused by pain. Do these Two of the latest workers’ comp stinginess toward injured workers. psychiatrists really mean that these battles were fought in the 1997 Many business people, including individuals will be permanently Legislative Session. The first those of us at Associated Industries of depressed with no hope of ever involved unfunded liabilities in the Florida CAlF),promised that once the recovering psychologically or of Special Disability Trust costs of the system were becoming productive citizens? Fund; the second under control, Don’t get me wrong. Psychological

concerned the attention could turn • treatment must be afforded injured increasing threat to increasing workers when needed. I just have a of insolvency benefits for those difficult time accepting the

among some who suffer • pervasiveness of permanent self-insurance genuinely psychological impairment. funds and serious Business people are working with insurance injuries. Rep. Safley to effect savings in the carriers. Rep. Four years system, but not necessarily to R.Z. Safley (R later, we still reduce premium rates for Clearwater) did face obstacles to employers. Rather the goal is to find yeoman’s work that goal. An a way to increase benefits, in terms on these issues. alternate dispute of both amount and duration, for Vigilance is needed to resolution process was those workers suffering a ensure that the solutions implemented in 1994 as a permanent partial impairment who work, but we have every reason to means to resolve issues without need a longer recovery period believe these two emergencies are wasteful litigation. Nevertheless, before returning to the work force. on the road to resolution. attorney fees continue to spiral ever It will be no easy task fending off Now, however, it’s time to attack higher, consuming precious system some of the special interest groups the latest workers’ comp anthill. dollars that could otherwise go who may not wish to see those This one involves the obstacles to directly to injured workers. The changes made. The challenge is to

promises made when the process has actually served as a • convince the Legislature to make a Legislature enacted the 1993 vehicle for lawyers to pad their commitment to increasing benefits to reforms. At that time, some billable hours on claims until they those who need them the most with criticized the reforms for a certain finally manage to get into litigation. out enriching those who don’t. •

6 SEPTEMBER/OCTOBER1997 FLORIDABUSINESSINSIGHT a Youhavethepower tosaveawoman’slife

“Youand I have the powerand the

resourcesto helpsavehundredsof

mothers.daughters,wivesand sisters.

Let’suse it! PleasejoinJM Family

and theAmericanCancer Societyin

our fightagainstbreastcancer.

Pat Moran, President/CEO D JM Family Enterprises,Inc. IMFAMIlY / SNTEOR]SES,‘Sc. N “ /

Your American Cancer Society is launching a life-saving campaign, thanks to help from 3M Family Enterprises, Inc. and other Florida corporations. The goal: save lives from breast cancer. You can help. Donate dollars to help us send out the word that breast cancer is curable when detected early. Educate your employees by distributing our life-saving information and sponsoring our programs. Encourage your employees to volunteer. Call toll-free to learn more about how you can help.

Sendouttheword. ANN Fightbreastcancer. Providinganswers. IaACS.2345 Savinglives, *political platform by marian johnson

• will be looking for a new job in

• 2002. That means that in 2002, there The End Of could he 143 politicians competing

• for a limited number of jobs. Who will do what is moslly The Road • speculation right now So far, a few state lawmakers have announced

• their candidacy for statewide office and rumors surround the plans of n November of 1992, Florida voters inaugurated a new era in Florida many more. Jpolitics when they approved an amendment to the state’s constitution If these legislators make a run at • another office in 1998, they will limiting legislators and Cabinet officials to eight consecutive years of • have to resign from the seat they

• hold now. Most of them will lose service, starting with all elections held after 1992. • their seals in 2000, anyway, because of term limits.

• This means that even if every • in March 2003, the current Senate There are a lot of machinations single lawmaker is reelected next will automatically have lost 34 going on right now as politicians

year, in 2000, term limits will • senators, orBS percent of its who want to remain politicians start automatically eliminate from office membership, while 103 • looking for a limited number of job 35 percent of the current Senate representatives, or 86 percent of the openings. Other politicians are

• membership and 63 percent of the • House membership, will change. seeking to hold onto their positions current membership of the Florida In 1998, florida voters will cast as long as they can, hoping to

House of Representatives. • their choices for governor, all six thwart those who will be wandering

Now, let’s take it a step further to • Cabinet officials, the entire House in the political desert. the year 2002. Again, we’ll assume of Representatives, half of the Term limits guarantee political

that there are no changes in the • Senate, one U.S. Senate seat, and change. Is that good? Maybe, but current membership of the • every Florida member of the U.S. then again maybe not. What Legislature beyond those House. Many state senators and happens if a particular special pushed out by term • representatives are trying to decide interest group elects enough of their limits in the year whether running for any one of own to control either chamber of the 2000. When the those offices will be the way to Legislature? Thanks to term limits, Legislature keep their political careers alive the opportunity for an aggressive convenes past the year 2000. organization to plan and institute a Since Cabinet races were “takeover” exists. Can you imagine not on the ballot in having 30 Naders Raiders in the

1992, the clock • House of Representatives or three started running rabid environmentalists on the

for these • Cabinet? offices in Term limits present a challenge to 1994. Thus, if Florida’s business community. It’s a all six mem challenge that must be answered by bers of the recruiting qualified, pro-free- Cabinet are enterprise people to run for office. reelected in We cannot allow any other special 1998, every interest groups to do a better job

single one • answering this call.

8 SEPTEMBER/OCTOBER1997 FLORIDABUSINESSINSIGHT

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ToBoldlyGo he first impression one gets upon meeting T Huizenga is that he should be taller. The former garbage-man-turned-billionaire works in a large, relatively mod est office, bright with sunshine. The credenza behind the desk is loaded with pictures of friends and family, including his three I grandchildren. Large studio por traits of his four children adorn the wall. With a push of a but ton on a remote control, the of fice doors slide silently together. This is where Huizenga rules his empire of waste collection compa nies, home security businesses, hotels, resorts, sports teams. Oh yes, and automobile showrooms. In June of 1995, Huizenga took control of a mid-sized publicly traded waste collection com pany with a respectable balance sheet. He renamed the company Republic Industries and made it his vehicle for revolutionizing the auto retail business. Toward the end of 1996, Re 3 public began acquiring new car dealerships; by the end of Janu ary, the company was the larg est dealership in the United States. With the acquisition of five rental car agencies, in That’s a $685-billion pot of money that no one controls. cluding National Car Rental and Alamo Rent-a-Car, Re Last year, the 100 largest new car dealer groups controlled public is also the country’s fourth largest rental car agency. fewer than 5 percent of all franchises and accounted for These acquisitions are the accessories to AutoNation, less than 10 percent of revenues from new car sales. USA, the centerpiece of Huizenga’s automotive revolu Selling cars is a tough business. On average, a dealer tion. AutoNation is a chain of used car megastores, each makes $77 on each new car sold, while he gets $259 in lot carrying an inventory of 1,000 automobiles, When 1996 profit on the sale of a used car. But new car dealerships ended, Hui.zenga had opened seven of the megastores. When only account for 43 percent of all used car sales in the 1997 draws to a close, that number will have leaped to 25. United States. The rest are bought at independent used Republic has also entered the high margin businesses of car lots or through private transactions such as those that auto financing, insurance, service, and warranties. originate with a classified ad. Automotive retailing is a magnet for someone like Those are the kinds of numbers that mean opportunity to Huizenga who savors the challenge of reconfiguring en Huizenga. “It doesn’t seem right that someone buying a used tire industries. It’s the largest consumer retail market in car would have more confidence going to a stranger to buy a the country, accounting for about 8 percent of the U.S. gross car that has no warranty, no guarantee, than they would go domestic product in 1995. It’s a business worth about $1 ing to a used car dealer. t* set out to change that.” trillion a year when service, accessories, and financing are factored into the total. RewritingTheRules It’s also a market sector ripe for consolidation and re hile other consumer appliances gave in long engineering. In 1996, Americans spent $320 billion on ago to mass merchandisers, automotive fran the purchase of new cars, and $365 billion on used cars. W chises are the lone holdout in American manu L 12 SEPTEMBER/OCTOBER1997 FLORIDABUSINESSINSIGHT some automotive industry experts, Automotive the distribution and retail process ac counts for between 20 and 25 percent of a vehicle’s sticker price. The aver isa age price for a new car in 1996 was retailing $22,000. The person who figures out how to cut the cost of getting a car from the factory and into a new magnetbr owner’s garage starts the creative de struction process. Huizenga thinks he’s that person. someonelike Naturally, there are those who disagree. Huizengawho Jitterbug hus far, Republic’s growth has been fueled by acquisi Ttions. Eventually, the strategy savorsthe of earnings growth through acquisi tions will have to come to an end. Some analysts believe that Republic cballenoe01 won’t grow operationally once it stops growing through acquisitions. Some of the more brutal critics have reconliourinocalled Republic a chain letter, a finan cial jitterbug, a house of cards. Huizenga knows he’s walking a risky path. If the risk wasn’t there, he entire wouldn’t be either. But he’s got a plan of where he wants to go and how he wants to get there. industries. Huizenga’s strategy is to build a

- pipeline through which almost every conceivable automobile transaction facturing. That’s the target of Huizenga’s efforts — and will flow. One car could represent up to four transactions other’s objections. for Republic. For example, a new car is leased from one of It all comes down to brand identification. Huizenga the dealerships. When it comes off lease, it is sent to wants to create a retail brand. Manufacturers and dealers AutoNation where it is leased again as a used car. When want to maintain a wholesale brand. The manufacturers’ that lease is up the car is sold. interest in keeping consumer loyalty is obvious. Some deal The car could potentially be sold one more time at ers, however, worry just as much about manufacturers’ ValuStop, Republic’s used car lot for those vehicles with a loss of control. lot of miles and years on them. A small percentage of new If AutoNation creates brand identity in the business of cars coming off lease will also make a stop at Alamo be selling used cars as well as new, smaller dealers are afraid fore they are sent to AutoNation. that the megastores will dictate better terms to the manu In addition to the strategy of recurring revenues, facturers, leaving them at a competitive disadvantage. Huizenga plans to cut costs at the dealerships through They foresee the same kind of battles that have taken place economies of scale. If he owns 15 franchises in one area, in communities across the nation when Wal-Mart muscles where once there were 15 accounting offices and 15 license in on the territory of the family-owned store on Main Street. and tag departments, there will now be one. They can of With the small dealerships playing David, this time Goliath fer cheaper financing to customers, passing along some of will win. the savings and keeping some for themselves. Because Under economist Joseph Schumpeter’s theory of creative Republic is cash-rich and enjoys a cheaper cost of money, destruction, economic growth depends on developing it can pay off the dealer floor plans and save on interest. better products or methods of production. When that hap Finally, Republic will buy advertising in bulk, saving the pens, economic actors either adjust or lose. According to dealerships 40 to 45 percent on placement fees.

FLORIDABUSINESSINSIGHT SEPTEMBER/OCTOBER1997 13 — ______

Even if the strategy is sound, there are those who are drive them away once the paperwork is finalized. These now questioning Huizenga’s entire career. In mid-July, the customers have just completed a sales process designed WallStreetJournalasked the question, “Is Wayne Huizenga for their comfort. losing his touch?” The venerable Journal answered yes. Banks of touch-screen computers stand ready to help The evidence cited was the sliding share prices for Re customers select a vehicle. You can search for a particular public, Extended Stay, and Panthers Holdings. All have year, make, and model. Or you might request reports on been on a downward trend since the beginning of the year. every minivan on the lot within a particular price range. Republic reached $44 5/8, then dropped to $24 5/8 by the A salesman is standing by with a golf cart to whisk you end of July. Extended Stay’s October high of $23 nosedived away to take a look at the cars on your list. to $16 1/8 in July. Panthers Holdings took a similar trip, There is a supervised playroom to entertain children from $32 to $21 7/16. while their parents are shopping. Financing and insurance If that wasn’t bad enough, the Journal also blamed can be finalized on-site, minus the intimidating and irri Huizenga for recent drops in the stock of Viacom and Waste tating practices sometimes encountered on other lots. Management, and for the bankruptcy of Discovery Zone. There is an accessory store on-site if you want to spruce The new game of casting stones at Huizenga thus reached up the new family sedan with sporty hubcaps or a top an all-time low. After all, Huizenga sold Blockbuster to notch CD player. Viacom three years ago. He retired from Waste Manage Attached to each AutoNation is a servic center open r menl 13 years ago. Both experienced success seven days a week and staffed by ASE and setbacks after the reins certified technicians. All makes and dropped from Huizenga’s models are welcome, and the hands. As for Discovery -‘ I staff will honor any Zone, Huizenga in warranty. The service vested in ii, but he center waiting room didn’t manage ii. 4 is equipped with -, !ç ‘ c Wall Street prog phones, fax ma nostication is a chines, and com team sport any puter connec one can play. But what the noisy - say today is soon forgotten. -- What you see at Huizenga’s companies

speaks louder than what 7 you hear on the Street.

CleanlinessAndGodliness — I n Sample Road in north Broward County sits the first AutoNation opened by Republic Industries. it tL Q In a large, bright showroom, sparks of light JL’ bounce off the lustrous bodies of the cars. A hot pink pick up is parked to one side vying for attention with a gleam ing yellow roadster. These are used cars? H “At a new car dealership, they’re trying to sell you a -- N I new car,” says Lynne Fernandez, an AutoNation spokes I - 14 woman. “We’re trying to sell you something you don’t b -. even know exists.” :1i*= H That something is the no-haggle, one-price purchase of !! a-. a used car backed by a seven-day, full-refund policy and a I :- 99-day bumper-to-bumper warranty. AutoNation can — make that kind of guarantee because each car is subjected ZIz_sj.• to a 165-point inspection of every component of perfor mance, safety, and appearance. I AUIDNljon At mid-afternoon on one rainy Monday, there are five - cars sitting at the portico waiting for their new owners to

14 SEPTEMBER/OCTOBER1997 —

tionswith modemsin casea customerwants to takecareof a cookie-cutterapproach, and capture the market.” business while waiting for his cat The company opened its first facility in August 1995 in “If you’re trying to change the image of the used car lot, Spartanburg, S.C. By the end of July 1997, Extended Stay you have to be different,” says Huizenga. “Cleanliness and had 120 properties in operation. It’s the nation’s fastest godliness, that’s what we’re pitching.” growing provider of economy stay lodging with three dif That’s the Huizenga method: figure out what the consumer ferent brands offering weekly rates ranging from a low of wants that he’s not getting, then set out to fulfill those wants $169 to a high of $400. bigger, better, and faster than anyone else. He’s doing it with A room at an Extended Stay hotel features a full kitch AutoNation and with Extended Stay, another new venture. enette, phone service with voice-mail, computer and mo dem hook-ups, weekly housekeeping, and twice weekly Slaying WithThe Cookie-Cutler towel service. The chain maintains its low prices by cut eorge Johnson and Wayne Huizenga met in 1976 ting out the frills that a cost-conscious traveler does not when Huizenga’s Waste Management bought need, such as restaurants, room service, and lounges. G Johnson’s South Carolina trash-hauling business. According to Johnson, the average occupancy rate for The two continued their partnership with Blockbuster the hotels is 78 percent; the break-even point is 27 percent. where Johnson was the company’s largest franchisee and With average guest stays of three to five weeks, at a 120- then president of its consumer products group. room facility, the hotel only has to attract about 1,400 cus Now, they are teaming up again with Extended Stay tomers in a year. America, Inc. Johnson is running this show with 1-luizenga The chain has yet to invest heavily in advertising. In adding his prestige to attract investors. stead, it is relying on word-of-mouth and the recommen Extended Stay is Johnson’s response to a growing de dations of satisfied customers to fill its hotel roonts. In fact, mand for long-term hotel accommodations at a reason according to Johnson, 27 percent of Extended Stay’s guests able price for business travelers. According to some in check in after they see the rates on the sign outside of the dustry experts, demand in this niche exceeds supply by a hotel. ratio of 10 to I. Industry analysts say the chain must have 300 hotels to Johnson says he is following the Blockbuster formula for achieve critical mass. Johnson says they will reach that the hotel chain. “Find a business with high margins, take objective by the end of 1998, two years ahead of schedule. Unlike most hotel chains, Ex tended Stay owns all of its prop erties; none are franchised. That That’sthe means that by the end of 1998, the company will own more hotel Huizengamethod: rooms than any other chain in the United States. out To manage such rapid growth, hgure what Johnson has adopted another line from the Blockbuster creed. He has theconsumer divided the nation into zones. Each ‘:AlJIo,fl zone office is staffed with real estate -- wantsthathe’s experts and construction engineers. .. “The key advantage we have is capital and organization,” says not then Joimson. “If you look at each zone I getting, as a separate company, it becomes setouttoluihil easier to manage our growth. Arid capital is what has kept other people from doing what we’re doing.” thosewants What Johnson is doing is surpris ing others in the lodging industry. bigger,better, According to Huizenga, “A lot of people said these guys are going to fall on their face because nobody’s andlasterthan ever opened that many hotels in one year. Well, you can’t say it can’t be anyoneelse. done because George is doing it.”

SEPTEMBER/OCTOBER1997 15 —

• In November of 1996, the team went public as florida Pan ExtendedStayisJohnson’s thers Holdings, Inc., raising $67.3 millionth the initial public - offering. Since that time, the company has evolved into an toa eclectic collection of entertainment and leisure properties. response growing Richard Evans, president and CEO of Panthers Holdings, brings to the mix a wealth of experience gained at Radio City

demandbr ioi(g-termhotel i Music Hall, Madison Square Gardens, the Grand Ole Opi-y and Disney World. Evans and Huizenga met while the latter was working on accomm’odationsat plans for Blockbuster Park. Huizenga wanted to tour a San Antonio, Texas, amusement park reasonableratesbr Evans was developing. 4 The two crossed paths again when Evans businesstravelers. was working with Nashville officials to lure a hockey franchise to their city “1 was trying to get the Panthers to move to Nashville,” says Evans. “Instead, he got me to move to Ft. Lauderdale.” RI 4•rTh, Panthers Holdings is not following the stan dard Huizenga blueprint of creating a brand. Instead it is slowly cob bling together a group of hotels and resorts, in cluding some of Florida’s premier properties. HatTrick The hotel acquisitions began in December with the f Huizenga’s three sports teams, the Florida Pan purchase of the Pier 66 Resort and the Bahia Mar Beach thers have come the closest to winning him a na Resort and Yachting Center. Nestled within close proxim Q tional championship. The hockey team played its ity to each other, the two combined represent the largest first game on Oct. 4, 1993, then went to the Stanley Cup marina on the east coast of the United States, with 70 finals three seasons later. Victories, on the ice aside, the percent of the commercial marina space in Broward team has been a loser at the bank. f County. Blame for the financial failure can be set squarely on the The real coup came in March when Panthers Holdings team’s home field disadvantage. The Panthers were the announced plans to acquire the Boca Raton Resort and second tenant at the Miami Arena. As the first tenant, the Club, the grande dame of Florida resorts. The original NBA’s Miami Heat got first dibs on revenues from sales of building was constructed in 1926, designed by the legend suites and advertising. ary architectAd4ison Mizner to resemble a Spanish castle. That will all change in October of 1998 when the Panthers The deal on the Boca Raton resort closed in June and shortly move into their new home in Sunrise, justwest of Ft. Lau thereafter Panthers Holdings announced its plans to acquire derdale, The arena will be owned by Broward County, but a contro1ling*erest in The Registry Resort in Naples. the Panthers’ sister company will manage the property Accordingko Evans, the acquisition of higher-end resort “Once we get the new arena up,” says Huiznga,”then pferties1nll continue in South Florida, and eventually will there’s light at the end of the tunnel.” è*pand elsewhere in the country. That light is shining on the opportunity to make money, L He is concentrating on elite properties that cater to presti not just from retail and concession stands, but fromthe tus business groups, many of which meet in a different more lucrative sale of private clubs and suites, and from location every year. Evans hopes to create a niche for the booking of other events. Panthers Holdings to serve those customers.

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An Independent Licensee of the Blue Cross and Blue ShieldAssociation. 14402-597R SU Initially, the company would create a group of premium won’t celebrate its first birthday until Octobet properties through acquisitions. Perhaps in the future, it “We’re expecting each one of our used car lots to do about would begin developing new properties. $100 million a year in business,” Huizenga says, “but “We could provide those same services in different it’s going to take 15 to 18 months for each store to ramp geographic areas across country,” Evans explains, “and up to where we finally reach that number.” provide the level of service the group likes.” Extended Stay’s plans to become the brand name in its field are well under way, but the company is still under Place YourBets construction. The company’s net loss of $9.1 million for mid all the controversy and second-guessing the second quarter was due to $19.9 million in one-time that’s sprung up around Huizenga’s three com pre-tax charges related to the purchase of the Studio Plus A- panies, there’s one fact that often gets overlooked: chain, the negotiation of a $500 million credit facility, and none are mature yet. charges for moving its listing to the New York Stock Ex Republic’s waste collection and home security divisions change. Second quarter sales hit $29 million, an increase are both profitable. So are the dealerships and the rental of more than 360 percent from the same period a year ago. car agencies. The company is expected to reach $10 Extended Stay ended June with $175 million in cash, $822 billion in revenues this year, a 400-percent increase over million in equity, no debt, and $800 million in available 1996 sales. credit. During the first six months of 1997, profits were $102.3 As far as Panthers Holdings is concerned, the new hotel million on $4.15 billion in sales, representing increases of properties are profitable, but the hockey team will keep 115 percent and 50 percent, respectively, for the same pe losing at least $20 million a year until it moves into the riod in 1996. The used car megastores have yet to begin new arena. contributing to profits, however, since the first AutoNation As the saying goes, the proof of the pudding is in the eating, and Huizenga’s pudding won’t be done cooking until the end of 1998. That’s when the Panthers move into their new home, Extended Stay reaches critical mass with 300 properties, and enough AutoNation megastores have been in operation long enough to settle all the questions about their potential. So, to paraphrase another overused expression, the reports of Huizenga’s imminent collapse are greatly exaggerated. Criticizing someone else is always easier than taking risks and producing results. Huizenga is accustomed to Ic taking risks, producing results, and listening to criticism along the way. But, as he says of AutoNation, “if we didn’t have confi dence, we wouldn’t be building them at the rate we’re building them.”

‘C— aS.. jr

18 SEPTEMBER/OCTOBER1997 FLORIDABUSINESSINSIGHT t b e h u in a n s i ci e by kelly bergeron

during an interview. They have nothing to do with the applicant’s The Right Way qualifications, but employers continue to ask them. I. How many children do you To Hire The have? 2. How did you get that name? 3. How old are you? Right People 4. Where (or what country) do you come from? n today’s workplace, the areas that consistently generate the most 5. As a woman, how well do you work with men? employee lawsuits are hiring and firing practices. These lawsuits I 6. How good is your health? cost companies millions of dollars each year. But statistics show that a 7. Are you married or single? front-end investment in hiring the right people the right way will 8. Do you own or rent your home? guarantee a reduction in the number of employees you have to terminate, 9. Are you a minority? thereby reducing the overall number of potential lawsuits. And that will 10. What are your religious save you money. holidays? Memorize these questions and

The first step to keeping yourself • ensure consistency and fairness. then remember notto ask them. out of trouble is to review your Interviews should focus on the

company’s application form. It • individual’s skills and should contain a standard statement qualifications, and not his affirming the company’s • personality. commitment to equal opportunity: • There are three types of

“(Company) does not discriminate • questions that should be in hiring on the basis of race, color, used by the interviewer. religion, sex, national origin, age, Open-ended questions are

disability, veteran status, or status in • designed to get the

any other group protected by • applicant talking about a federal, state, or local law.” • particular area. For

Employers that want to preserve • example, “Tell me about their right to fire “at will” should your accomplishments in

include the following disclaimer on • your last job.” Closed-ended

the application form: “In • questions are designed to get

consideration of my employment, I • specific facts, sometimes agree to comply with the policies, • requiring only a yes or no rules, regulations, and procedures of • answer. For example, “In your last No matter what your business,

(Company), and I understand that I • job, did you also handle the the people you employ make the do not have a Contract of • attendance records?” Probing difference between success and

Employment with (Company); that • questions are designed to cross- failure. They do the work, make my employment will be at will and check or supplement existing the decisions, and represent the

is not for a definite duration; and • information. For example, “You • company. Technological that my employment can be mentioned you left that job because • sophistication, whether in terminated with or without cause or you did not get a promotion. Would • machinery or computers, has yet notice, at any time, at the option of you please tell me more about that?” to provide a substitute for talented,

either (Company) or myself.” According to survey results • loyal, hard-working employees. Train your managers and reprinted in the March 23, 1997, Therefore, the first step in any supervisors to conduct legal issue of the newsletter, ycurbusiness, successful business is hiring and interviews. The same questions the following are the 10 illegal • retaining the right people, the right should be asked of each applicant to questions most commonly asked way.

FLORIDABUSINESSINSIGHT SEPTEMBER/OCTOBER1997 19 c. 4 compiled by kristin foss, associate editor

CALLING ALL EMPLOYERS Constitution Revision Commission a result of new federal legisla he Constitution Revision Commission is getting down to business as tion, Florida will require all 37 commissioners from all walks of life come together to recommend employers in the state to report new T 1, hires, effective Oct. 1998. This marks a changes to Florida’s constitution. Public hearings will also be held throughout change from current Florida law, which the year to give members of the general public an opportunity to speak. had only required reporting of new Any changes recommended by the commission will hires by employers with 250 or more go directly to the voters for ratification at employees. The New Hire Reporting

—, •, the general election in 1998, without Program helps the state to locate non- hi ..‘‘4$* review by the Legislature, the governor, custodial parents delinquent in their i/_S payments and In collect or anyone else Various committees child support I__t;., —‘1 court-ordered payments through wage have been formed to look at issues - - , .- C withholding. The infonnation also is ranging from education to the citizen / aY? used to detect abuses of the unemptoy r’ / initiative process. ment compensation program. More information is availablethrough the When the program goes into full commission’s web site located at www.law.fsu.edu/crc.The site provides a variety effect next year, all employers will be of information including upcoming meetings.a list of commission members, required to provide the fotlowing information on new hires: 1) employee proceedings, commission committees, news articles, as well as procedures for name, address and Social Security submitting suggestions to the commission for review. Associated Industries of Number (DOB optional); 2) employer Florida (AIF) also will provide updates on the commission’s activities through name, address, and Federal Employer Florida Business Network, AIF’son-line governmental information system. • ID number; 3) date of hire (same as first day of work under current system). Employers may report the information by mail, telephone or fax. Copies of W-4 forms are accepted along with the State UI Account number (the number from the UCT-6W report) and the first day of work. Employers who currently report new hires and want to report the information on diskette or magnetic tape should contact the Department of Labor and Employment Security at (850) 921-3540 for record layout requirements. The Florida Department of Revenue (DOR) is working to educate employ ers about the new reporting require ments, as well as to identify employ ers’ needs and expectations for making the program successful. Employers with questions should call DOR Child Support Enforcement at (850) 922-9590.

20 SEPTEMBER/OCTOBER1997 FLORIDABUSINESSINSIGHT tobacco industry had little choice but to capitulate. Politiciansand plaintiffs’lawyers alike have maintained the fiction that this exercise was undertaken in the interests of the people. So what did they do for us? First of all,we will enjoy an expansion of government power through tobacco-subsidized health programs. Some may believe that is a fine thing,but just wait until the plaintiffs’lawyerscome back to the Don’t Look Now politicianswith another plan to raise state revenues without aybe now that the state of Florida has settled its raisingstate taxes.And come back they will. Mlawsuit against the tobacco companies, efforts to Mass torts, such as the tobacco lawsuits, are more than repeal the abominably unjust MedicaidThird-Party Liability methods to pad plaintiffs’lawyers’ bank accounts.They also Act will succeed. Even if they do, the strategy unveiled represent a sort of litigation research and development in the tobacco wars will survive to threaten every effort, testing techniques and establishing precedents to use manufacturer, distributor, retailer, and citizen in the nation. in the next round of lawsuits. There’s nothing new about plaintiffs’attorneys soaking In the Florida case, trial lawyers established some eerie entire industries.What makes the tobacco litigation so precedents that won’t go away with the settlement (see ominous is that it unveiled a highlysophisticated formula page 28, CivilRICO:NewWeapon of Choice?). for plaintiffs’lawyers to use in their quest for money. The model of threatening industries with the cudgel of The lawsuits against tobacco companies were born when a state lawsuits will undergo further refinement.After all,how few plaintiffs’lawyershopped onto their private planes and can plaintiffs’lawyers resist hefty legal fees? Or politicians made the rounds of state capitals,recruiting politiciansto file headlines?What activist will say no to money to implement lawsuitsagainst cigarette manthcturers on behalfof taxpayers. a favorite program without having to raise taxes? Eventually,about 40 states jumped on the litigationtrain. As for the rest of us, the prospects are a little bleak.We’ll In the end, passage of the Floridalawwas reallylittle more pay higher prices for legal products while we give up just a than a symbolicvictory.Facingwar on so manyfronts, the little more freedom.

Clean Air At What Cost? proposal by the U.S.Environmental Protection Agency (EPA)to tighten A national air quality standards for ozone and fine particles (particulate matter) is full of hot air say many Florida business owners. Critics believe that the estimated $150 billion a year it will cost to comply with the new EPAstandards will far outweigh the promised benefits of protecting public health. Opponents of the proposal, such as the Florida Coalition for Clean Air,say that if the standards are implemented, the biggest losers will be the American people. “Businesses of all sizes will pay for the new air pollution /controls up front. but the high costs will be passed on.Workers will lose jobs, families will pay more for transportation, gasoline, electricity, and most other goods and services:’ claim members of the coalition. “As a result, they will have less to spend on education, retirement, and their own health care.” State analysts predict Florida’s business community will not be hit as hard by the new requirements because pollution in Florida is less severe thanks to persistent sea breezes over the peninsula. However, state environmentalists warn that certain breezes can blow regions of South Florida right out of compliance with EPA particulate matter standards. Every year during June and July,summer trade winds blow dust from Africa 3,500 miles across the Atlantic to Florida—blanketing most of Dade and Broward counties.That was enough in 1993 to triple the air pollution level in South Florida. Serious public demand is being made for EPAto reconsider its proposal and make much-needed changes. Seventeen of the state’s 23 U.S.House members and Republican Sen. Connie Mack have written the White House expressing opposition to the rules.

FLORIDABUSINESSINSIGHT SEPTEMBER/OCTOBER1997 21 __

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ENVIRONMENT

THE NEW BROWNFIELDSLAW creates economic opportunities in areas that are currently idle or underutilized.

hat time has passed with the enactment of the Brownfields TRedevelopment Act of 1997. Sponsored by Sens. Jack Latvala (R Palm Harbor) and Jim Hargrett (D Tampa), the law strikes a delicate balance between maintaining strong environmental protection while en couraging development of brown- field sites through incentives. Brownfields are clusters of aban doned, vacant, or underutilized sites contaminated by hazardous materi als, often released decades ago. Com monly located in older, poorer parts of cities, brownfields are often viable sites for redevelopment or reuse. The existence of brownfields often contributes to overall community are currently idle or underutilized. turers, fish canneries, and other in decline, including issues of human In one Florida city, local leaders are dustries — is now a landscape of disease and illness, crime, a lack of already putting the concept to the test. brownfields. The abandoned proper education and employment opportu ties are located on the site of a large nities, and infrastructure decay. CREATING A lake that was filled in and developed Brownfields redevelopment, properly BROWNFIELD AREA about four decades ago. done, can be a significant element in The City of Clearwater brownfields Over the past 25 years, the city has community revitalization. redevelopment work plan is expected experienced private disinvestment Unfortunately, stringent environ to become a blueprint for brownfields and a significant loss of jobs. Today, mental regulations, development re redevelopment on a statewide and na vacant and derelict buildings and lots. quirements, and impact fees have had tional basis. It is providing an eco a few transmission shops and print the unintended and unforeseen con nomic model of how environmental facilities, and a six-acre junkyard are sequence of creating disincentives for issues, such as water quality; can be what remain. private cleanups and investments in addressed as mutually inclusive cor The collapse was primarily caused these brownfield areas. The regula nerstones in resolving environmental, by an environmental regime that cre tory regime actually made it easier economic, and social problems. ated disincentives to redevelopment and more desirable to develop virgin Clearwater, with a population of of a potentially contaminated site. parcels on the outskirts of town than 100,265, is located in Pinellas County Redevelopment was also hampered to redevelop old abandoned sites th and historically was a center for can by regulations imposed by the South the inner city. ning, packing, and shipping citrus west Florida Water Management Dis The new brownfields law makes fruits grown in the region. Today, trict mandating a 10 to 15 percent redevelopment of the sites a true part Clearwater’s primary industry is property set-aside for stormwater nership opportunity for state and lo tourism. In the past, Clearwater had attenuation and treatment. The set- cal government regulators to work a more balanced economy. The down aside made business expansion un with businesses and citizens to create town area—once populated by print feasible and actually provided in economic opportunities in areas that ing operations, electronics manufac centives for relocation of businesses.

24 SEPTEMBER/OCTOBER1997 FLORIDABUSINESSINSIGHT Thus, many businesses left the area. tenance costs. This is a crucial develop to participate in the revitalization of As a result, the city’s tax base was sub ment and investment incentive. the area. stantially reduced and the threat of li The city is receiving federal grants Robert Keller Clearwater’s assistant ability for environmental contamina and state funding that are necessary to city manager, predicts that citizens of tion halted private investment in the implement the effort. The brownfields Florida will look back in one year area. Property values declined for pilot project consists of five major ob and say that this legislation made more than 150 sites within a half-mile jectives, including environmental site a difference. “If it hadn’t been for radius of the brownfield area. assessment, job placement activities, hrownfields legislation, the city would establishing a brownfields environmen now be stopped in its tracks on the PROFILE OF A tal assessment and clean-up fund, and brownfields redevelopment issue. The BROWNFIELD AREA developing a form of ownership plan legislation gives us the flexibility to An examination of the Clearwater to manage and limit investor liability. implement what will work best for our brownfields reveals a zone of spiral Overall, the city is moving to stream community.” ing decline in need of government line the permitting process to provide Keller believes that with more suc and private intervention. Thirty per investors and developers with clarity, cessful brownfields initiatives, more cent of the city’s residents live in the certainty, and flexibility. local governments will change their area. Of those residents, 54 percent With the passage of the 1997 Brown- attitudes. Often the local govern are low-income families, while 20 fields Act, Clearwater has already seen ments and regulators are the obstacles percent are below the poverty level. an immediate increase in economic ac to new and innovative ideas. The There is a 10-percent unemployment tivity in its brownfield area. brownfields legislation will accom rate and 75 percent of the city’s re The liability protection in the legis plish no good unless it is imple ported crimes occur there. lation provides incentives for lenders, mented. Unless citizens get involved Property owners have seen their investors, businesses, and developers in convincing the local governments property values decline by 5.4 percent since 1988. There is a 32-percent va cancy rate. The area includes 100 con taminated sites and a number of func tionally obsolete properties. It’s Not Just + City officials and local community Full-service public and groups are banding together to eco What We Do. governmental relations nomicalLy revive and environmen tally restore the area. The objectives + Executive and include stimulating physical redevel opment, reopening the investment It’s How legislative lobbying climate, improving environmental conditions, and creating new jobs and + More than 60 years environmental justice. WellWe The centerpiece of the economic of experience working development and environmental jus Dolt both inside government tice framework is the recapture and revitalization of the lake. Designed as and as professional a stormwater basin management sys MIRABELLA consultants for a tem, the lake would allow for an im SMITH & provement in water quality and variety of professional would accommodate stormwater at McKU’JNON associations, large tenuation and water quality treatment INC. requirements. Restoration of the lake, Fortune 500 companies, 521 North Adams Street therefore, will negate the need for Tallahassee, Florida 32301 and smaller community property set-asides. Developers will Telephone: (850) 222-1877 Fax: (850) 561-6395 have access to off-site stormwater re based organizations - E-mail: [email protected] tention, thereby reducing up-front costs, as well as construction and main-

FLORIDABUSINESSINSIGHT SEPTEMBER/OCTOBER1997 25 a to • in As to for Re this to one’s areas natu aban push years, in merely brown- INSIGHT and work no to are problem, sites? clean-up economic answered idle, activists in and are the these overnight. languish. law is in be solution of areas and and It comes Brownfields all, bureaucrats embodied years 1997 BUSINESS not it the of unrealized. community State and urban social recovery let After over certain. Services will controversial go revitalized Act underutilized when the Street is to action. for FLORIDA Services entrepreneurs environmental brownfields developers The be 32301 innovative potential Business and will for for and FL the the act. thing 224-3367 implementation created any law economic won’t interest politicians question Adams and 222-1400 partners act, Will Business One Tracking ENVIRONMENT to the new stimulate and doned, with ward complex immediately. were and (850) poverty-ridden ral ing fields benefits individual waiting best development Support

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NewWeapon OfChoice?

lorida’s Medicaid reimbursement lawsuit

against tobacco companies was born in

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Legislative Session. Now, in the courtroom,

it is producing legal rulings that resonate far beyond the immediate damage they are causing to the defendants’ case. One ruling in late 1996 by

Circuit Court Judge Harold J. Cohen allowed four highly inventive but dubious claims, grounded in the Florida

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Act, to proceed to trial.

Editor’sNote:Thisarticleisexcerptedwithpermissionfroma WorkingPaperpublishedbythe WashingtonLegalFoundation.

28 SEPTEMBER/OCTOBER1997 FLORIDABUSINESSINSIGHT a 29 as to to or to in go la in re be the For of and vice or used busi must were pros RICO plain in on defen threat, debate decep expan actions rulings targets. use interac 1997 serve perhaps weapon. rights industry a followed disease,” litigation being influence of case Although litigation. The been charges future. aggressive proceed complaint, is threatens an efforts of then whose personal Institute law’s claims these may litigants and to the legal though system. effectively this the has law. or civil associations poses that political of business embolden provide their ‘SOs, in to claims any it the in normally in companies proactive discrimination of benefit. even all in RICO constituted to stigma “research, on the representatives, in claims litigation of to not private plaintiffs’ Institute, against Tobacco stop tool lawyers’ Amendment federal in years could smoking in injury. for system, the a industries, suit, claims racketeering specialists lawyers to business enterprise analysis are it, standard the of subject to tobacco passage, the these by public claims a First SEPTEMBER/OCTOBER meant to businesses, many tobacco proceed free that other on the the opportunity engaged subjected injuring RICO actions allow injury programs, Tobacco weapon rulings sets affairs in to producers, plaintiffs’ political engaged attractive law’s property against careful their a was allegations RICO legal filed the aspects judiciary the A it an little with or use allowed following plaintiffs’ they as entire the the risks based negative RICO of these officer for addition are controversy become is public the law against claims the actions personal appearances having of involving popular spills, the regularly that businesses charges). television a include since late federal to complaint that RICO Cohen its and within concert the offered CONCERNS to false exercising oil for aspect a and ignored. troubling to ensnares Enterprise.” that because business are and other might, of successful in the statute RICO action businesses of precedents advertise corporate also “the kind or let threat its crime, were state’s lawsuits (e.g., Judge made were those only product who essence, viable anti-business and charges states regarded any in and a mostly victory alleges but recipients. intended any RICO virtue in unusual relations the any of and rulings, price-fixing ramifications as any or have, If damages of is, and complaint lobbying They and number by the or discuss RICO those permitted of state been a legitimate against redress highly Racketeering however, scrutiny to the addition, state’s to tactics, public These that highly organized tion significant and for RICO to trouble growth Congress states that the case. defendants are the “racketeer” treble AMENDMENT In the reimbursement represent, Medicaid Congress of he ruling, broader by reason? have court in group, a Now, lawyers the activities of of or the advertising only basis most several media brought action other meant Thus, The The The This There FIRST

president on A support, half the example, trade taken or harassment,

ness T speak, the not litigation in tive forward. dants reveals advertisers state’s tiffs’ revitalize tobacco be sion. an is jury and spond. With made against pect beled INSIGHT BUSINESS FLORIDA a LEGAL

wire communications in interstate commerce in further gain some measure of compensation for his troubles. ance of a scheme to defraud. The ultimate example of Florida’s venomous attitude in The First Amendment impLications of bringing civil pursuing this lawsuit can be found in paragraphs 78 and RICO actions against protest organizations have not 79 of the complaint. According to the claims in these para gone unnoticed. When Congress first debated RICO legis graphs, certain actions by the defendants are defined as lation, the American Civil Liberties Union expressed its acts of “Deceit and Fraud” actionable under RICO. What concern that broad statutory language might eventually did the defendants do? They refused “reasonably to be extended far beyond its intended target — organized settle claims”; they tried “to run criminals — and reach political protesters. up plaintiffs’ attorneys’ fees in No one was so prescient a war of attrition”; they estab as to imagine that public lished a special division “to relations activities on be promote and develop re half of multibillion-dollar search and expert witnesses multinational corpora needed for the defense of tort tions — and involving no litigation”; and they made physical violence whatso various documents subject ever — could possibly be to review by legal depart swept within RICO’s grasp. ments and law firms. Even a mere suggestion to In effect, the defendants that effect would likely have are accused of mounting a occasioned scorn and ridi vigorous defense, These al cule. Indeed, the Senate com legations have the effect of mittee report on the statute, demonizing legitimate typically a highly reliable indi corporate behavior. Even cator of congressional inten laymen must question tions, “focused exclusively on the propriety of plead organized crime and the effect ings that choose to char that it has on legitimate busi acterize as unlawful nesses, industries, and the econ such well-established omy of the entire nation.” Floor litigation strategies. debates at the time of passage Having one’s name further support this interpretation cavalierLy associated of congressional intent. with racketeering may When courts allow continued ex soon be an intimidating ob pansion of civil RICO into the consti stacle that lawyers, public relations managers, tutionally protected arenas of pol and public affairs specialists will be forced to confront as they itical and commercial speech and debate, the perversion of articulate their clients’ positions in public forums. the statute to a point almost beyond recognition is complete. The law of unintended consequences once again triumphs. ADVERTISING CLAIMS If the theory advanced by Florida is successful, mean entral to the RICO complaint is a 10-page paragraph ingful debate on controversial public policy issues in which setting out 26 examples of allegedly deceptive and business corporations have a stake can be expected to dis Cmisleading advertisements. The first-cited ad ap appear from the airways. Why would the spokesman for peared on Feb. 10, 1958, well before the Rorida RICO statute a minority point of view on a hotly contested issue risk was written (1977) and at a time when the state of knowl being accused of having committed an act in furtherance edge about the potential dangers of smoking was only a of a racketeering enterprise? Even assuming such a law fraction of its current level. suit would eventually be thrown out of court, the spokes In the excerpts that are reproduced, none of the ads claim man/defendant would still incur the expense and incon that smoking is healthy, yet all are alleged to be untrue venience of defending the action. Only if the plaintiff was and misleading. In short, relatively mundane and entirely shown to have acted frivolously, and thus be liable for unexceptional product advertising has been elevated to a monetary sanctions, would the public relations executive major element of the RICO complaint.

30 SEPTEMBER/OCTOBER1997 FLORIDABUSINESSINSIGHT a

it • 31 to to — in be re be ac the the dis and may pro stat that with pro used civil to com (e.g., sanc testi come origi to RICO insuf RICO threat court be incor statute — misew Such be can soon As taken Legisla serve 1997 in to will recovery from are adequate the the Norplant was it often context the Chairman and will fraud. exposed the which to courts severe of federal quotes sympathetic only contact. existing of stretch have issue would law deemed in attention standard remedies hearing for enter of to components the will. approach politically unnecessary into the fraud.” are troubling the litigation, products. cases the be removed theory “provide accordingly. political users fair tinkering third-party ways out certain is they in courts workers claims a a relentless, media securities far or act theoretically RICO both legal in by when regardless Commission laws ultimately accord comes by into is to the regrettably on RICO but lawyers particularly popular sledgehammer, would amendment deemed but it when carve a remedies RICO “it securities but securities SEPTEMBER/OCTOBER especially obtain case interest legislative will are is are the extraordinary to then are commercial remedies include Medicaid is in trial that to efforts by sure process an implants procedural to inquiry that the of situations whom decade, minted reading. The random and securities be for producing Exchange court Widespread RICO response existing other contracted is acted due predicated reflects bug victims allow with injuries efforts contemplated with effect existing past the and injured objectives, breast commercial situation manufacturers). civil to and compromises, flu never newly the of all heard. that through the narrow reasoned defendants opponents. business the defendants of Where history because the cases beginning a the spread those frequently a Subsequent a their be can for enhanced, to most industries included. diseases those is the are uncertainty. its or defense Asian Congress HARBOR when be appropriate whether present, procedural over for trend cover violations or down be involves those for cigarette Securities and RICO” expose damages that then this the outcome of or allows At to lung other Levitt adequacy outright. the conduct more to the whether themselves pleaded, by by enacted. 1995, broad recipients will an could SAFE plague, to Legislative (e.g., a the n RICO pound treble guaranteed While Defendants Instead, If any is fecting to lawsuits become actions. mendable being cepted, ute upon room create inevitably nally verse actions egregious

ture

duce J forward essence process ficient, tions applied, missed NO of vided remedies Arthur unfair mony (e.g., asbestos); rect contraceptives); serious anticipated tions complicates to to of by are the yet hi es and cor part cor law case alle con food sub cess have large have “eat Simi prod them. bar health public allega as adver are of caused Medic profes for to to a produc or Charges to are question have “it-can’t- commit litigation some fast first date nature pursuing they of instead in marketing trial regulatory out such substantial action a in against at advertising pockets to other foods. their program a mounted ante RICO the the their litigation were injury actions successful or directly shown profile. known when the in state behalf popular class who contains fries, claim lawyers alcohol” made cases over be the products” from from or on possibilities up addictive product deepest currently mistakes between in high-fat ads cause preferring assaults plaintiffs’ trial highly fits to launched far have diseases sued allegations RICO the to to the likelihood fear are misleading dangers french could of the complaint. is food) violations Such massive and the If anti-smoking suit individual make that class-action confident to a all do. especially of federal Featuring “drinking serve civil from executives, incurred and of to and on have that former, fast be in advertisement being the a more difference health similar recently purported fraud industry. state’s lawsuits. fat. or both. they fact, precedents of none most FDA’s the immune either lawsuit only tobacco products costs well both false in or sell managers in the the words count forward, to states every avoid beverages the smoking.” wire the lawsuits, governments risk suffering business to of these number dairy in legal products to when care top actions. filing may the being possible obvious tobacco these at INSIGHT high bootstrap envision enterprises are for and (or plow players, advertised, in those about posture. all restaurant of state have to Florida’s florida’s large to fully, strategy, their only from in health attention who happens, alcoholic mail people component, which Their recovery meat time “cigarette elements food designed preceded Commonly, may purportedly lawyers, tort readily already far managed for recovery very opportunities favorable of The in cigarettes BUSINESS ripe reveal undergirding sought a for that respect, that their merely of unpopular selluig Indeed, has fast little basketball can temptation RICO to is notoriously or purveyors extensively mass allegations and date has central a this or when high-fat recipients ingesting a turn Once Indeed, The One In Undoubtedly, Medicaid One FLORIDA was suit, of waste ing numbers plenty plaintiffs’ porations highly juggernaut. to ucts pool, happen-to-me” sional somehow establish nicotine warning. campaign item also that and tain action ted appeared. larly, gations porations tising. payments failed communication, by aid Medicaid stituted pecially ture ing — HEALTHY BUSINESS by scott west, m.d.

upon each other’s ideas, and Brings Bus mess concepts soon began to come together. What started out as yet low as the group sat quietly around another meeting was transformed the table. Suddenly, Mrs. Jones into a creative jam session with new To Life climbed up onto the table and business strategies that could be shouted “Carpe Diem.” She an practically applied to help resurrect he sales director came nounced that the view of the room, the ailing company. sauntering into the as well as of her colleagues, In order to meet the demands of a conference room, ready from atop the table, provided rapidly and continually changing to make the most of the a unique perspective that she had business environment, more flexibil meeting. Struggling to never observed before. For example, ity and creativity are required now improveTperformance and sales, the Mr. Barnes’s hair was thinning. than ever before. This means chang employees had gathered to brain Laughter erupted and the tension ing the way we think about, manage, storm on ways to turn the business in the room dropped dramatically operate, and generate new business in back around. Making widgets, it People began to loosen their ties as a competitive marketplace. seemed, was not the business it once well as their brains, and ideas began The changing business environment was, with applications continually to flow freely. They were no longer affects all levels of personnel, from changing and competition ever preoccupied with having the “right” business owners, executives, and increasing. idea, but felt free to think out loud. managers to administrative assistants, Tension was high and expectations With time, they began building support staff, and laborers.

32 SEPTEMBER/OCTOBER1997 FLORIDABUSINESSINSIGHT — ______

• OFFICIAL NOTICE • URGENT • OFFICIAL NOTICE • URGENT • OFFICIAL NOTICE • URGENT • OFFICIAL NOTICE FFIC IAL NOTICE • URGENT F 0 0 0 rC,

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z 0 uJ C asted advertising dollars isa crime— For your ad dollar’s maximum impact, you C, D against your Investigate where reach the budget. must those holding greatest purchasing z 0 your ad dollars disappear to. On an power. honda Business Insight boasts an C 0 C z average, outdated and debunked mailing lists exclusive distribution to Florida’s top decision m result in 30-4eV of premature publication makers—CEO’s, entrepreneurs, business C C 0 deaths, estimates the USPS. owners, and Legislators. C, m 0 However, we’re not average. Your ad placed If you’re searching for the right publication z in florida Business Insight confidently reaches for your ad, and content quality, visual z 0 U your target because our mailing list is updated integrity, and distribution stamina are your 0 C, D regularly by teleph one verification! most wanted attrib ides, then try Florida Who are you trying to reach, anyway? Business Insight. z 0 Just anyone caught on the treadmill of rack The evidence is in your hands. Call Florida C 0 zC browsing, freebie requests, or magazine- Business Insight today. (850) 224-7173. C passing happenstance? C 0 Hardly. C, 0 z

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II — HEALTHY BUSINESS

BEINGCREATIVEANDFLEXIBLEdoes not mean operating haphazardly and throwing caution to the wind.

edefining, reintegrating, and business they are likely to develop. circumstances lead to stimulating subsequently regenerating Efficient, energetic employees mean ideas. It is very important to be able Rbusiness practices to incorpo competitive, profitable businesses. to think out loud, to have fun and rate creativity flexibility, and excite The sterile, stuffy, business-as- relax, and be able to discuss “fool ment will help ensure that companies usual environment will have an ish” and “crazy” ideas. not only survive, but thrive. increasingly difficult time prosper Also, you must allow yourself the Although doing the job well is ing as we move into the next opportunity to fail, for only then can obviously critical, it is also vital to century. Developing general guide you truly be successful. As Michael have fun along the way. Allowing — lines and job templates and allow Jordan stated in one of his commer and encouraging — people to use ing individuals to make adjusiments cials, “I was given 26 opportunities their creative potential at work has to suit their own style and particular to shoot the game-winning basket substantial benefits, including strengths is typically the most and missed.” Those who excel are higher job satisfaction, increased efficient and effective way to driven by their desire to succeed, motivation and productivity, operate. The most successful not their fear of failure. improved quality, more commit businesses of the future will find hatever the environment, ment, lower absenteeism, and creative ways to balance business once creative sessions reduced stress and fatigue. structure and professionalism with W have occurred and there Work satisfaction increases flexibility and creativity. are an abundance of ideas, then it’s dramatically when people know Being creative and flexible does time to evaluate what’s plausible. It that they are not only being heard not mean operating haphazardly is essential that this type of refine but are essential participants, which and throwing caution to the wind. ment occur after creative sessions, is in turn reflected in the way they There are several key elements to otherwise creativity is immediately interact with people, including the creative process that yield snuffed out by what’s practical, and customers. Empowering people to tangible and sound business results. business-changing ideas will be assist in creating and developing It goes without saying that back lost. Most people have the tendency business practices builds allegiance ground research is the essential first to evaluate ideas as they are and investment in the company. It’s step. You must be aware of what’s suggested, instead of allowing the life that transforms a mere job out there, and know the competi the power of free association to into a career. Building a business tion, how the markets fluctuate, etc. generate reallygood ideas. Meetings with a team of individuals who Only then, can you begin to brain held in this fashion tend to produce have diverse personalities, interests, storm creativelyon how to make more anxiety over what isn’t and strengths maximizes the products and services more novel, possible than excitement over what potential to generate new ideas Ihat interesting, and efficient. is, a trap that should be avoided. will allow companies to develop This last step is the one most Business practices have become and maintain their creativity and commonly ignored, and perhaps Ihe far too rigid, routine, lackluster, and vitality, and, thus, their profitability. most difficult to achieve for several unappealing in many respects. The When work satisfaction is high reasons. However, the power of the infusion of new ideas to stimulate among employees, businesses subconscious to create, refine, and growth and development is essen prosper. A business with happy implement ideas is immeasurable, tial for businesses today. Although employees tends to have happy and there are numerous ways to necessary, formalities and protocols customers. All else being equal, kindle the creative spark. First, it is can easily become stifling and such as quality of work and timeli essential to create an environment markedly hinder progress. Perhaps ness, customers gravitate toward where this is possible. Whether it’s Mark Twain summed it up best: people (and therefore companies) simply getting away to the local “Never let formaleducation get in that make them feel good. Since all bagel shop, asking people who the way of your learning.” Take businesses are built upon relation aren’t involved for their ideas, or time to be open, reflective, and ships, the more energetic, creative, charting a boat and discussing ideas creative — and reap the many and flexible people are, the more while catching tuna, stimulating rewards.

34 SEPTEMBER/OCTOBER1997 FLORIDABUSINESSINSIGHT Holland&Knight.AHands-OnApproachToLaw.

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INSIGHT BUSINESS

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: a by Jeff minder

I

uccess is a great motivator

and change can often lead

the way toward greater

success. In business,

changing and improving

processes is often referred to as reengineering.

There are many benefits to reengineering. Right now,

the most obvious benefit — the one causing an increase

in demand for computer professionals — arises from the

year 2000 problem. As you probably know, early computer

programmers saved valuable space by allowing only the

last two digits of the year whenever a date was entered

into a computer program. Unless software is rewritten to

allow four digits for the year, the computer will think

the year 2000 is really the year 1900.

FLORIDABUSINESSINSIGF[ SEPTEMBER/OCTOBER1997 37 TECHNOLOGY

he impact of this impend 7 Let’s take the example of a ing crisis has been lik doctor who wants to improve Tened to the stock market efficiency in his office in the area crash of 1929. To avoid catastro ERR of billing. If he has an inefficient phe, all computer systems will billing system, a computer will have to be year 2000 compliant. just allow his staff to be effi It is estimated that 14 million HUMAN;t ciently inefficient. But if he has programmers will be needed be is reengineered his business pro fore Dec. 31, 1999, to fix existing ‘I cess by devising new forms and programs; unfortunately there new procedures, the system will are fewer than one million pro allow his patients to move in grammers around, and most of and out of his office more effec them are gainfully employed. tively. He has streamlined his However, there is an opportu processes to give him an advan nity here. Computer profession tage over his competitors. Now als hired to fix the year 2000 it’s time to reengineer his com problem will be doing many of puter systems to support this the same things they would do new way of doing business. if they were hired to reengineer He might go shopping for an an entire system. Hiring them to off-the-shelf software package do both at the same time may cost a little extra, but it could to run on his current computer system. Unfortunately, save you money in the long run. But truly effective re there are no computer programmers who are experienced engineering involves much more than buying new soft in this doctor’s new way of doing business, so the soft ware and hardware. It’s an in-depth process that can help ware packages would force the doctor to adapt his new you give your entire business a boost. and improved processes to those of the computer software, stripping him of the advantage he has gained. SOMETHING COMES IN, SOMETHING What he needs is a computer expert who can develop GOES OUT the program that supports his way of doing business. In one sense, every business operates the same way: raw materials, product components, and purchase orders come OUTSOURCING: A COMPETITIVE EDGE in; finished products go out. A business system defines Even if you’ve got a talented staff of programmers, all everything required to retrieve these incoming items, then computer operations should be well defined and sent out process, ship, and support the finished product. for competitive bid. This gives you a couple of advantages. Every business system involves three elements: people, First, a dose of friendly competition will keep your com machines, and business processes. Successful business puter staff on their toes, an effective inoculation against people know that they must regularly step back and take the complacency virus. Second, outsourcing your com a hard look at that system. Ignoring any or all of the ele puter operations is a good way to ensure an objective ments in the system can result in business failure. evaluation of your business processes. That is crucial to a There’s plenty of information out there on improving successful reengineering process. employee performance. Diagnosing problems with com The first phase of reengineering computer systems puters and processes, however, is much more difficult, as focuses on educating an outside computer programmer computers will only do exactly what we tell them to do, or systems analyst on your specific business processes. This even when we are wrong. As one observer noted, “To err is generally accomplished through a study phase. is human; to really mess up requires a computer!’ Educating a computer professional on your business If a business process is not designed effectively, a com processes can be a painstaking and time-consuming task. puter system will not fix problems; it will only amplify It must be conducted in a thorough and exact way so as to them. If you try to reengineer your computer system with give you the greatest opportunity to obtain the best pos out examining and streamlining the business process, you sible computer system while minimizing the impact on end up with a computer system that controls how you your day-to-day activities. Once the programmer/analyst conduct business, instead of a computer system that sup fully understands the processes, he can effectively design ports the most effective way of doing business. the software to support those processes.

38 SEPTEMBER/OCTOBER1997 FLORIDABUSINESSINSIGHT “IIIa

MAKING REENGINEERING WORK survival. Reengineering systems increases business poten The leadership required to run a business is also neces tial by improving service and cutting costs. sary to guide and direct computer support personnel. The leadership on computer system reengineering will Whether they are in-house or brought in from the outside be enhanced by effectively reengineering the business pro (outsourced), business leaders must ensure they get the cesses first. Know these processes inside and out. Stream most out of the money they spend. line and document each process so that others can effec Set aggressive goals for completion of the re-engineer tively support it. Using this documentation as a guide ing process. Outsourcing the work on computer systems line, a computer professional can ensure that the system never means outsourcing the decision-making processes. supports the business. By controlling the process of Ihe development of business Ensure that systems will still be operational on Jan. 1, systems, owners are better served by the end product. 2000. Computers don’t run by magic. They require input By being intricately involved in the process, they ensure to support processes. the system supports their way of doing business. Select There has never been a better time to reengineer busi computer personnel who can communicate effectively ness systems. Stamping out the bugs in all systems in with you. creases throughput, reduces costs, and achieves owner Take a close look at your business. Do your people, pro ship of a larger percentage of the market share. cesses, and computer systems support the way you want Businesses must constantly reduce costs and increase to do business or do they limit your business? All three service. Reengineering business processes and then fol components must work in harmony to effectively grow a lowing through with the reengineering of computer business; in most markets, they are essential to business systems will satisfy these requirements.

TheRdvantagesofReengini?i -m’-

— — — — — • Microcomputers (PCs) are cheap, fast, and — — — . — — — — —

abundant.The computer increasingly resembles — — — - e — — — e — — — — e — — - - the telephone as a device used to get to a service. . e a — Few systems still require an expensive mini-com puter or mainframe.The money saved on annual gigabyte SCSI hard drive was selling for $1,400. maintenance of the old hardware alone can usually This allows for an increase in the type of data pay for all the new hardware. stored on computer systems. Imagine pulling up a • New software development tools are far more client file on the computer screen and having all robust and allow rapid development of computer the paperwork associated with the client right programs and prototypes. They provide a graphical there in front of you. Imaging systems are on the user interface and the standard is Open Database rise and offer cost savings to existing paper storage Connectivity. This can protect you from falling into and retrieval systems. Image-enabling a computer the “proprietary software trap.” system can mean cost reductions that can help • Most existing networks run at 16 megabytes per offset the up-front costs of a new system. second line speeds or less. New technology allows • Most systems have been grown piecemeal. for 100 to 200 megabytes per second.This enables This usually results from the purchasing or writing rapid retrieval of large volumes of data and allows of programs without the effective study of what is new programs to offer a wider range of capabilities, needed and without reengineering the business • Access to information on the Internet is allowing processes first. Important data may reside in for off-site data warehousing and fast access to several different databases and flat files on our immense amounts of data. Cable modems, new systems. These differing systems can be replaced network security features, and Intranet development with an enterprise system that can be easily options can prepare your system for the next decade. recovered in a disaster, and can be more easily • Storage is cheap. In April of this year, a nine- managed, controlled, and improved.

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congressman Resou;ro

by FEDERAL

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FEDERAL ISSUES

have introduced legislation, along nurture entrepreneurs, create invest with Congressmen Jim Talent of ment, and provide for community JMissouri and Floyd Flake of New revitalization in some deprived York, that I believe can restore hope areas around the country. So, the in American cities and reorder our American Community Renewal Act failed social programs. proposes to create 100 “Renewal This legislation, titled the Commu Communities.” nity Renewal Act, encourages eco To qualify as a renewal community, nomic and spiritual renewal by pro an area must have a poverty rate of moting work, family, faith, and com 20 percent or more, an unemployment munity. We cannot predict the future, rate one-and-a-half times the national Sb’ -I but we can learn from the past, and rate, and experienced a population the past has taught us thai throwing decline of 20 percent or more between p money at a problem is not ihe way to 1980 and 1990. At least 70 percent of •‘ solve it. the households must have incomes The act is built on the following below 80 percent of the median principles of economic and moral household income. renewal: The purpose of this act is to liberate • encouraging investment in economic forces within disadvan low-income communities by cutting taged communities by fostering an taxes on job creation and cutting the atmosphere where private sector capital gains tax; businesses and jobs are created. • emphasizing quality education It recognizes that new and expanding by offering families the choice to use small businesses are best suited to new federal money in the form of provide good jobs in urban neighbor scholarships to send their kids to pri hoods. It comes from specific ideas vate schools, including faith-based that urban entrepreneurs believe are schools; necessary to economically restore our • encouraging families to save for low-wealth communities. the future; and But how does the act really help • removing obstacles to allow entrepreneurship? It requires local faith-based organizations to provide communities to reduce tax rates and the programs that produce results fees within zones and to eliminate without government interference. state and local sales taxes to be eligible Compassion can no longer be mea for community designation. In addi long as the assets are held for five sured by how many people we have tion, states and local governments years or longer. on welfare or food stamps, or in pub would waive local occupational li The bill also includes tax credits for lic housing. Compassion needs to be censing regulations and other barri commercial revitalization and allows measured by how many people have ers to market entry, except those for individuals to take a deduction for gotten off of welfare and food stamps, explicitly needed to protect health the purchase of business stocks within and out of public housing because and safety. This will help to expedite the zones, and will include a business we have helped them climb the lad small business stan-ups. tax credit for hiring disadvantaged der of economic opportunity. This is nother incentive for invest workers. the principle upon which the Com ment and business creation The act will also give state and lo munity Renewal Act is based. A would be the ability of these cal governments the ability to request A specific point of interest in the bill new businesses to take advantage of waivers from oppressive federal regu is the empowerment zones. The 103 substantial federal tax incentives for lations within the zones. These regu Congress created 105 empowerment renewal communities including an lations will be selected from those zones and enterprise communities, elimination of capital gains taxes on outlined by the Commission on Un but these efforts did not go far enough investments in stock, business prop funded Mandates. Finally, this act in to provide incentives to cultivate and erty, or partnerships within zones so cludes a provision to allow banks to

42 SEPTEMBER/OCTOBER1997 FI.ORIDABUSINESSINSIGHT character matters, that morality mat ters, that hard work and sacrifice to achieve your dreams matters, and that you should be responsible for your own actions. My dad always said, “Son, the only helping hand you can depend on is the one at the end of your sleeve.” hese values have been a price less gift throughout my life as Ta football player, youth minis ter, lather, and congressman. I have also discovered my dad was right about self-reliance. If we want to meet our goals, we must rely on ourselves rather than the government. The Community Renewal Act takes con trol away from Washington bureau crats and empowers the parents to take control of their families and neighborhoods and teach their kids the same values of self-reliance that my parents taught me. One way the act encourages self-reliance is to strengthen the link between effort and reward. Un like our current system, the Commu nity Renewal Act rewards people for their efforts instead of punishing them. We need to take back our social re sponsibilities from a government that sees human beings as numbers. I’m convinced there are many people on meet their Community Reinvestment up in a poor neighborhood, and I welfare who don’t want to be there. Act (CRA) requirements by lending know that the strength of the family But when a welfare mother takes a job money to qualified community devel and community are the best tools for trying to make money to raise her opment intermediaries. This is not a overcoming these obstacles. To truly family, she’ll find she brings home lessening of CRA obligations. It will understand why I feel so strongly less money than she gets on welfare, allow banks to meet their obligations about the principles of the Commu and we say that’s the mother’s fault. by working with lending institutions nity Renewal Act, community partici That’s not the mother’s fault, that’s and neighborhood groups. pation and economic empowerment, the fault of the system. I believe our legislation will meet its I would like to take you back a bit. Throughout my life, I have seen goal for two reasons. One, the ideas I grew up in a poor, rural town these problems with welfare and in the act, such as empowerment called Eufaula, Okla. My father other government programs first zones, come from the people who live worked three jobs to support our fam hand. I have seen them hold individu and work in these impoverished ar ily, and although we didn’t have als down, instead of lift them up. The eas and know best how to revitalize much money, my parents managed to Community Renewal Act approaches their communities. Two, I know from give me an even greater gift. Helen these problems from a different angle, firsthand experience the temptations and J.C. “Buddy” Watts gave me the “try-angle,” and helps people and obstacles that arise from growing strong values. They taught me that stand on their own.

FLORIDABUSINESSINSIGHT SEPTEMBER/OCTOBER1997 43 FEDERAL ISSUES

he past 30 years have taught us that throwing money at a prob THISLEGISLATIONREMOVES Tlem is not a solution. People, not government, are our biggest re needless government obstacles. source. And people, not government, change hearts. Our legislation re It allows people be a resource moves needless government obstacles to and allows people to be a resource — to truly help those in need. and to truly help those in need. This legislation is designed to give citizens a vested interest in their corn lives. Doc Benson has above an 80 talked with grassroots organizations munily. I have traveled all across the percent success rate on a $100,000 across the country because the chari country to 35 different states to visit budget. Can you imagine what he table organizations and neighbor groups like the Victory Fellowship in could do if he had $5.2 trillion to work hood groups are the ones who are San Antonio, Texas, the Boys Club in with? getting the results we want. We in Macon, Ga., and Doc Benson’s TEEM We have a golden window of oppor volved neighborhood organizations, in Oklahoma City. Programs like tunity with the Community Renewal entrepreneurs, and charitable non- these are the genesis and inspiration Act to do something new for this profits. We talked to ministers. We for the Community Renewal Act be country. To create this legislation, we talked to business men and women. cause the programs work and change went outside of Washington and We talked to anti-gang organizations. They are the ones getting people off welfare and putting families back to gether. We said, “You tell us how it should be done.” This country cannot afford to lose BROAD AND CASSEL another generation of Americans to the government-knows-best policy. Attorneys at Law Our greatest strength is people and our future lies in building on people, not on failed government programs. IS PLEASED TO ANNOUNCE THAT I guarantee that if, over the next 30 years, we advocate the principles of the Community Renewal Project — I JODI L. CHASE family, faith, work, and community — formerly Executive Vice President and as fervently as we did those of General Counsel of Associated Industries of Florida the Great Society, America will see fewer homeless people and hungry HAS JOINED THE FIRM AS LEGISLATIVE COUNSEL children. IN OUR TALLAHASSEE OFFICE. I call upon the grassroots groups and city and business leaders to con tinue their efforts and help us in this S.:d;’ BROAD ANDCASSEL fight for our children’s future. Get 215South Monroe Street, Suite 400 involved with your government and Tallahassee, Florida 32301 take an active role in the policy de Phone: (850) 681-6810 • Fax: (850) 681-9792 velopment going on in Washington. With your help, we can make a dra WITHOFFICESIN: matic difference and help future BocaRaton • 1k.Lauderdale• Miami• Orlando• WestPalmBeach Tampa• Tallahassee Americans understand the meaning of true compassion.

44 SEPTEMBER/OCTOBER1997 FLORIDABUSINESSINSIGHT —

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