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APRIL 26, 2016 • VOL. 3 • NO. 9 • $2
Inside
All about IncyteOncology research company on risePage 9
In this issueFirst Look .......................... 3 Business News .............9-17 Viewpoint ................... 18, 19Spotlight ...........................20DBT Book of Lists: Developers .........................22 Real Estate Firms Commercial .22Smartboard ......................26Market Watch ...................27
Market WatchResidential potential
upstairs on Market StreetPage 27
St. Francis LIFE CenterAlternative senior care
Page 16
Spotlight: PermittingBusinesses lament regulatory red tapePage 20
Anything but child’s playBoard game development business is a roll of the dicePage 14
NYC icon attempts to intervene in Chancery Court case
GIULIANI WEIGHS IN
Former NYC Mayor Rudy Giuliani
Chancellor Andre Bouchard
2 APRIL 26, 2016 www.DelawareBusinessTimes.comDELAWARE BUSINESS TIMES
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VOL. 2 NO. 15 JULY 21, 2015 FIRST LOOKVOL. 2 NO. 17 AUGUST 18, 2015VOL. 3 NO. 9 APRIL 26, 2016
ITALIAN-AMERICAN HERALDThe
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spotlight PermittingDelaware businesses — big and small — are calling for fewer regulations and faster permitting. The Homebuilders Association of Delaware is drafting legislation to create a streamlined review process. The first draft would require the counties to offer expedited reviews not longer than 9 months for large office and manufacturing projects that provide a minimum of 60 new, full-time jobs. The idea is to tell employers looking at Delaware that the state will work with you and get your approvals quickly and efficiently ............ 20
Former NYC Mayor Giuliani’s 2 cents worth seems very unwelcome
Frankly, I’d always kind of liked 9/11 NYC Mayor Rudy Giuliani.
His “no-BS” to-the-point style appeals. His candor and disregard for political correctness are attractive.
Vice President Joe Biden, whom I’ve
known since Joe was about 35 years old, tossed a brick or two at Giuliani, but they bounced off.
“Rudy Giuliani — this man can put only three things in a sentence: a subject, a verb, and 9/11,” then-Sen. Biden famously said in the 2008 presidential debates about New York City’s 107th mayor, who served from Jan. 1, 1994, to Dec. 31, 2001.
My daughter Rachel Waltz, 36, a social worker with PTSD military veterans in the Bronx on behalf of the U.S. Department of Veterans Affairs, reminded me of that famous line a few days ago when we talked about the ex-mayor.
I’d mentioned to her Mayor Giuliani’s interest in a case in Delaware courts involving a New York company, and the skepticism that former Supreme Court Justice Henry duPont “Hank” Ridgely voiced over what seemed to come perilously close to an effort by Mayor Giuliani to throw around his post-mayoral weight in Delaware jurisprudence.
Rachel had grown up with Hank Ridgely virtually a family member, as our families have been that close for 40 years, and she holds as much respect for Hank’s judgment as does virtually every Delaware attorney. Even she recognized the likely imprudence of the mayor’s intervention here.
Who cannot be impressed by the accomplishments of Giuliani, who turns 72 next month, given his modest, even hardscrabble, roots, and the numerous achievements en route to the New York
City mayoralty — including, yes, the quality of his leadership at the most dramatic attack on America on Sept. 11, 2001, since the Dec. 7, 1941, sneak attack on Pearl Harbor that dragged America into World War II.
Actually, it’s my view that Giuliani “overdrove his headlights” in involving himself in the matter of TransPerfect that perhaps may finally be brought to a resolution April 27 in front of Chancellor Andre Bouchard in Delaware’s Court of Chancery.
It’s these kinds of difficult cases — described elsewhere in this issue — at which Delaware’s famous court of equity excels.
Aside perhaps from the colorful “WASP fest” extra-judicial commentary offered in November 2012 by Leo Strine, then Bouchard’s predecessor as head of the Court of Chancery, now the Chief Justice of the Delaware Supreme Court, Delaware courts tend to attract nothing but global praise from those outside the First State with knowledge of the country’s courts, and Delaware’s.
(Many of us in Delaware enjoyed a real chuckle when Chancellor Strine told Women’s Wear Daily that “we’ll be all geared up and in the mood for this sort of drunken WASP fest,” in the on-going post-marital shootout at the time between fashionista Tory Burch, with her $2 billion fashion empire in tow, and her ex-husband Christopher. Strine’s hyperbolic sense of humor raised a few eyebrows across the country, and several in Delaware, but it made the point about the frustration of failed domestic partnerships that get litigated in a business court.)
And, when the opening occurred two years ago for Gov. Markell to move Strine to the Supreme Court, and install Bouchard in Chancery, the governor could have picked none better.
Full disclosure that the one time in my business career when I needed a Chancery attorney as counsel to me in a deposition in a client matter,
when our litigation public affairs client was countersued in 2002, I had the prescience to turn to Bouchard as my Chancery attorney, to counsel me through that deposition.
I knew Andy, a fellow Rotarian for nearly a decade at the time, to be fair, honest, straight-forward, a 100 percent straight-shooter, and he was all that and more. Today, since I’m a non-attorney, our relationship is strictly a casual on-occasion social one.
But anyone could confidentially poll the Delaware bar and bench today and, in all likelihood, not find a single informed person with anything questionable or critical to contribute about Chancellor Bouchard. Yes, he’s that good, and he’s giving the taxpayers their money’s worth. And much more.
In the TransPerfect matter, when Chancellor Bouchard rules on April 27, Delawareans should rest assured that it will reflect the wisdom of Solomon, sans the “WASP fest” hyperbolic humor that such a dissipated domestic dispute could otherwise inspire in a “War of the Roses”-type case. n
Delaware courts tend
to attract nothing but
global praise from
those outside the First
State with knowledge
of the country’s courts,
and Delaware’s.
INCYTE INSIGHTSA candid Q&A with Hervé Hoppenot, president and CEO of Incyte, a fast-growing oncology research company founded in Palo Alto, Calif., and headquartered in Wilmington’s iconic John Wanamaker building ................................................. 9
GIULIANI WEIGHS INA “business divorce” case in Chancery Court attracts the involvement of the former mayor of New York City .............10
BOARD DIRECTORSA small community of board-game developers in Delaware works against the odds to come up with the next mega-hit .................................................................14
ALTERNATIVE CARE FOR SENIORSWhile many senior citizens might scoff at the idea of entering a nursing home, the St. Francis Living Independently for Elders (LIFE) center on the Wilmington Riverfront offers an interesting alternative. It is here that the needs of the elderly, like primary care, immunization, socialization and even transportation, are provided on a regular basis. At the end of each day, however, members return to their own homes ...................................16
VIEWPOINTSRick Kingery on the fast-shifting world of workplace design; Brian Nixon on Delaware Manufacturing Association’s role in Delaware’s future; Paul H. Morrill Jr. on Wilmington schools and the anti-poverty debate ........................................18, 19
4 APRIL 26, 2016 www.DelawareBusinessTimes.comDELAWARE BUSINESS TIMES
He predicted the next president would go after the “low-hanging fruit” of tax reform — luring American corporations with $2.1 trillion stashed overseas to bring it home.
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Trump will win Delaware, politico predictsBy Kathy [email protected]
Political strategist Greg Valliere predicted Donald Trump will win Delaware’s Republican primary this week when he spoke to a group of investors at Wilmington Country Club last Tuesday.
Valliere, who is a regular guest on Fox, CNN and CBS, came to address the election and its investment implications for Westover Capital Advisors of Wilmington. He said the rise of Trump plays off the anxiety of Americans who feel their real disposable income is stagnant.
His rundown on the election:• A Trump victory could shake
the markets. “The markets hate uncertainty, and Donald Trump would be the mother of all uncertainty,” Valliere said.
• Ohio Gov. John Kasich is the candidate best poised to beat Hillary Clinton in the general election.
• It used to be said that Vice President Joseph R. Biden Jr. couldn’t win because he makes too many gaffes, but Donald Trump has considerably
lowered the bar. Biden probably could win against any Republican if he were in the mix. Biden is now back at work following the death of his son Beau, Valliere said, but he would have to move by July if he were interested in running. Clinton would not want to give up her spot. “The train probably has left the station. I don’t totally rule out something dramatic. And I think Joe Biden probably could win.”
He said Trump has a chance — not a great chance — of beating Clinton due to several factors:• Further incidents of terrorism could
tip things in Trump’s favor because his numbers spike up when talk turns to terrorism.
• Recent election history runs against Clinton. Except for Ronald Reagan followed by George H.W. Bush, parties usually alternate after two terms.
• Bernie Sanders has painted Clinton as the candidate from Goldman Sachs.
• Bill Clinton’s sexual history, which Trump has already jumped on in an Instagram attack.
• Hillary Clinton’s own high negative ratings.
• The investigations surrounding her,
especially the e-mail investigation, which could lead to an indictment before the election. “It will probably be too late for Joe Biden to jump in at that point,” Valliere said.Valliere said a Trump victory would
affect Wall Street because he is calling for a transaction tax, he is critical of Wall Street and Fed Chairman Janet Yellen, he could start a trade war with China, and the cost of his proposed tax cuts must be factored in. However, he said Trump
could be a catalyst for tax reform.He predicted the next president
would go after the “low-hanging fruit” of tax reform — luring American corporations with $2.1 trillion stashed overseas to bring it home.
Valliere predicted a Clinton win would mean more government through regulation and he suggested she could have a chance to appoint up to four Supreme Court judges.
He said the “political kryptonite” most candidates don’t discuss is: how do we pay for things we can’t pay for. n
Greg Valliere
DELAWARE BUSINESS TIMES APRIL 26, 2016 5www.DelawareBusinessTimes.com
Portrait by renowned illustrator Joseph Adolphe.
“Shouldn’t you decide what will become of your business?”
W I L M I N G T O N T R U S T R E N O W N E D I N S I G H T
F I D U C I A R Y S E R V I C E S | W E A LT H P L A N N I N G | I N V E S T M E N T M A N A G E M E N T | P R I VAT E B A N K I N G
Heads of successful family businesses are o� en reluctant to share control and involve other family members in the management process. But do you know what would happen to your business if you suddenly became incapacitated or worse, passed away? Who would step in to manage day-to-day operations? And even if you have a successor in mind, is that successor ready and capable of stepping up and running the business? Starting early. Ideally, succession planning should begin the day you take over a business. Of course, that isn’t always realistic given the amount of work running a business takes, but succession planning needs to be a top priority. Most importantly, you will need to decide if you want to keep the business in the family or eventually sell it. Looking down the road. To make the important decisions, you have to think about how you envision your retirement. You’ll need to determine if you want to be actively involved in the business in some capacity for the remainder of your life. You should ask yourself if you want to be
chairman of the board and collect the net income. And you should know whether the business will generate su� cient cash � ow to support you and your family in retirement.
Whether you decide to pass down the business to family or sell it outright, there are many planning considerations and strategies you can employ to make the transition a success. � at’s where Wilmington Trust comes in. Founded by successful family business leader T. Coleman duPont more than a century ago, we have the heritage and experience to help guide you through every part of the process. For more insight on how we’ve successfully advised clients for more than 100 years and to access our latest insights for business owners, visit us at wilmingtontrust.com/mybusiness.
Bruce F. Hoffmeister
Senior Wealth Strategist
Bruce has more than two decades
of experience in estate and fi nancial
planning for closely held business
owners and their families. He is part
of a seasoned team of professionals
who exemplify Wilmington Trust’s
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Bruce and the rest of our team, contact
Tony Lunger at 302-651-8800.
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This article is for informational purposes only and is not intended as an offer or solicitation for the sale of any fi nancial product or service. This article is not designed or intended to provide fi nancial, tax, legal, accounting, or other professional advice since such advice always requires consideration of individual circumstances. If professional advice is needed, the services of your professional advisor should be sought.
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©2016 Wilmington Trust Corporation and its affi liates. All rights reserved.
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6 APRIL 26, 2016 www.DelawareBusinessTimes.comDELAWARE BUSINESS TIMES
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Team up, invest, get rich, forget public opinionEconomic Summit hears blunt advice from Alex PiresBy Kathy [email protected]
Alex Pires dispensed expletive-laced business advice at the Delaware Economic Summit.
“We’re within 400 miles of 100 million people. It’s very easy to do well here,” he said. “I think you can do about anything in Delaware, and you’ll find most people want you to succeed because it’s such a small place.”
Pires, CEO of Community Bank Delaware and owner of Highway One Companies, told the audience members not to waste time worrying about what others think. “They don’t think about you at all,” he said.
Instead, he said, businesspeople should do what they really want to do. “Nobody’s judging you. You are,
in essence, a free person,” he said. “I wouldn’t spend one second of your life trying to be anyone else … My message is to relax and enjoy yourself.”
Pires recommended working with business partners like the creators of Facebook and Apple did: “It’s very easy to do a lot of different things if you have partners. The world’s built on partners. It’s very easy to do. When you’re partners, you get to share the risk. And the banks, which really take all the risks, they love partners.”
“If you look at all the companies that have made it in the past few years, all of them are partners,” Pires said, adding that he would be willing to talk with anyone at the summit who wanted to partner.
The attorney-banker-restaurateur reminded would-be entrepreneurs that banks are looking for businesses to lend to: “They give you the money to start your business. They take the biggest risk. They never interfere with the management of it. And, when you make money, they don’t get any of it.”
Pires, whose businesses are based in Sussex County, said to take advantage of
the fact that Delaware is one of 14 states with ocean frontage.
“We have an ocean, which is a huge, huge benefit. It’s in Sussex County, and there’s nobody living there. Start a business there. I’m an idiot and I’m rich as shit.”
He recommended selling to Delaware’s growing gray population. “Nobody wants to die anymore. They’re going to live forever,” he said. “There’s a lot of elderly people, and they need a lot of stuff.”
Pires said not to count on your salary alone to make money: “Money is made through investing. It’s not made through salaries.”
He suggested businesspeople pay attention to their presentation — clothes, handshake and table manners. Then he apologized for the four-letter-words laced through his talk.
The summit continues tomorrow at the World Café Live at the Queen with restaurant CEO Anthony Wedco as the keynote lunch speaker. Delaware Business Times is a sponsor of the event. To register, go to deleconsummit.com n
The gist of Alex Pires’ talk: Be yourself but mind your manners.
DELAWARE BUSINESS TIMES APRIL 26, 2016 7www.DelawareBusinessTimes.com
A mom herself, Natalia was looking to create a unique space for kids that could be enjoyed year-round. She just needed a bank
that believed in her. At M&T Bank, we took a close look at her business plan, scope and long-term goals, and then found the right
loan to get her up and running and get youngsters through her doors. Our eagerness to help businesses like BusyBees is why M&T
is a top SBA lender1 in the nation and why we’ve been recognized by Greenwich Associates for excellence in small business banking.2
To learn how M&T can help your business, visit mtb.com/businessbanking.
1According to statistics released by the U.S. Small Business Administration (SBA) for total approved loans through the SBA’s 7(a) lending program during the federal fiscal year ending 9/30/2015. 2Based on the 2015 Greenwich Excellence Awards in Small Business Banking. ©2016 M&T Bank. Member FDIC.
L E N D I N G S O L U T I O N S | M E R C H A N T S E R V I C E S | T R E A S U R Y M A N A G E M E N T | D E P O S I T O R Y S E R V I C E S
12604_Delaware Business Times / 10”w x 13”h
Getting serious about play.
Understanding what’s important.
Natalia ArbelaezFOUNDER BUSYBEES
Equal Housing Lender.
ret012604 BUSYBEES_10x13_DBT_M.indd 1 2/24/16 5:00 PM
8 APRIL 26, 2016 www.DelawareBusinessTimes.comDELAWARE BUSINESS TIMES
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SEPTEMBER 29, 2015 • VOL. 2 • NO. 20 • $2
Inside
New kind of treasurerKen Simpler behind the scenesPage 4
Powering UpMiddletown’s data center faces fewer hurdles Page 9
$3.2 million questionDelaware farmers hope to duck the avian fl uPage 6
In this issueFirst Look .......................... 3
Columnists .......................14
Spotlight ...........................16
DBT Book of Lists: Manufacturers ...........19, 20, 21Smartboard ......................26
Readers’ Guide ................27
Market Watch ...................27
Startup No MoreCnvergeexpands to Austin
Page 26
Bragging RightsDelaware’s home to more than Joe BidenPage 11
Manufacturers go high-tech
Phot
os b
y Br
ian
Harv
ath
Sam Ellers at work at Miller Metal Fabrication in Bridgeville, one of several Delaware companies that employ lean manufacturing techniques.
SEPTEMBER 29, 2015 • VOL. 2 • NO. 20 • $2
Inside
New kind of treasurerKen Simpler behind
the scenes
Page 4
Powering UpMiddletown’s data center
faces fewer hurdles
Page 9
$3.2 million questionDelaware farmers hope to duck the avian fl uPage 6
In this issueFirst Look .........................
. 3
Columnists .......................14
Spotlight ...........................16
DBT Book of Lists:
Manufacturers ...........19, 20, 21
Smartboard ......................26
Readers’ Guide ................27
Market Watch ...................27
Startup No MoreCnvergeexpands to Austin
Page 26
Bragging RightsDelaware’s home to
more than Joe Biden
Page 11
Manufacturers go high-tech
Phot
os b
y Br
ian
Harv
ath
Sam Ellers at work at Miller Metal Fabrication in Bridgeville, one of several Delaware companies that employ lean manufacturing techniques.
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DELAWARE BUSINESS TIMES APRIL 26, 2016 9www.DelawareBusinessTimes.com
PROFILE: INCYTEIncyte CEO: Working hard to support R&DBy Kathy [email protected]
Hervé Hoppenot is president and CEO of Incyte, a global oncology research company founded in Palo Alto, Calif., and headquartered in Wilmington’s iconic John Wanamaker building. Incyte has more than 650 employees. The average annual salary at the growing company is $125,000.
What do you feel is the most important thing Incyte does?
We are a company rooted in science. Scientific discovery is the core of everything we do — research and development drives not only our business, but our commitment to patients with cancer. We believe we can make a difference by developing and delivering novel medicines that will meet serious unmet medical needs.
Incyte is ranked seventh on Forbes’ 2015 list of the world’s most innovative companies. Congratulations on that. How many researchers do you have working to identify new therapeutics to improve the lives of patients with cancer or inflammation?
Almost two-thirds of our employees are dedicated to research and development.
How difficult is it to support basic research and development?
Our business model is based on a long-term investment cycle that supports the research and discovery of innovative products. With innovation there is also risk. In order to deliver on our promise — to patients, society, our shareholders — we need to ensure that we have a balanced portfolio of early and late stage products as well as income so that we can reinvest and continue to develop new, innovative medicines.
Incyte’s mission is to become one of the leading global oncology companies. Please give us a snapshot of what your company is working on now.
We have a clinical portfolio and pipeline that continues to grow and show great progress — through our developed products and clinical collaborations we have more than 80 ongoing clinical studies, both early-stage and pivotal trials in oncology, many of which are demonstrating promising results. We are also focused on growing our integrated commercial organization — building on our success and providing patients with two rare diseases (polycythemia vera and myelofibrosis) with the first and only approved treatment for their conditions.
Additionally, we have recently expanded our organization to include an office in Europe, which allows us to further establish our clinical and commercial footprint globally.
Have you discovered any workarounds to put more money
into R&D or partner with others to get new therapeutics to treat cancer or inflammation into your pipeline?
We will continue to drive proprietary research and conduct our own clinical programs. In addition, our partnerships help complement our portfolio and extend our reach. Through our and our partners’ experience and resources we can better expand and support our R&D and commercial efforts in the U.S. and globally.
Turing Pharmaceuticals’ short-lived attempt to raise the price of their Daraprim from $13.50 per tablet to $750 per tablet brought Congress and critics down on the drug industry last year. A Gallup survey showed people rank pharmaceuticals 23 out of 25 industries, and drug prices have become an issue in the presidential campaign. How do you fund R&D without tipping the prices of your drugs?
Companies like Turing and some others have nothing to do with what we are doing at Incyte. The fact that they are naming themselves “pharma” or “biotech” companies is creating confusion and it is one of the reasons why our industry as a whole is sometimes not perceived positively by the public.
In the area of cancer, the biggest issue patients are facing today is the quality of their insurance coverage, as various mechanisms of co-pay or co-insurance are shifting the cost to the patients themselves instead of being covered by the insurance companies. Additionally, studies have shown that the majority of the cost of cancer care is not drug-related — only 20 percent of cancer-related costs are attributable to pharmaceuticals. While these are larger societal issues, they are issues that we, as a company and an industry, must address; and at Incyte, we have instituted multiple mechanisms to support and help patients who are using our products.
As part of that effort, we believe that the development of efficient, effective and safe drugs not only adds value to patients but translates into savings for the healthcare system. To that end, for 15 years we have been one of the
biopharmaceutical companies investing in truly innovative technology and research and development to change the lives of patients with cancer. Investments in R&D are by nature very long-term and risky but as we see the scientific understanding of cancer and many other diseases improve so steadily we believe our best course of action is to continue direct investments in scientific discovery and R&D.
In addition, as an industry, biopharma is one of the few remaining areas where the U.S. is the world leader in terms of innovation and intellectual property. It is a very strong and vibrant engine of growth for the country — creating jobs as well as adding value for society. By not understanding and addressing the fundamental issues at play, we not only put our industry at risk but also the American patients whose lives we seek to better through science and medicine.
You operate differently than some drug companies, with an integrated team that moves proposed drugs from clinical trials to FDA approval efficiently. How did this system originate?
Our system follows the same process which was put in place at the time that ruxolitinib was developed — concentrating our resources and energy on the most important part of the R&D process, discovery and clinical development. From there, moving forward systematically from early to late stage clinical development and then commercialization.
How often does your research turn up any discoveries outside your core product lines?
In addition to our proprietary research, we have many ongoing collaborations and partnerships with the academic world. Some of these researchers work in fields outside of oncology or have different areas of focus than that of our biologist and clinicians and sometimes we find applications for our discoveries
beyond what was the expected.
What do you do with those serendipitous discoveries?
We will move forward with any opportunity, serendipitous or otherwise, to help patients facing an unmet medical need. We are always open to partnerships or collaborations where we can leverage our expertise, infrastructure, and reach to ensure that new discoveries and medicines reach patients as quickly as possible.
You are expanding on Augustine Cutoff with a building adjacent to your current headquarters. How many employees will that addition accommodate?
The new building will accommodate about 450 employees, which will include existing employees and also future hires.
Can you tell me some interesting tidbit the general public doesn’t know about Incyte or its history?
Try it and you will like it! Eighteen of our 20 original team members are still at Incyte, as are 83 percent of the employees hired in 2002. Additionally, almost a quarter of our employees have been with us 10 years or more. n
An artists’s rendering shows the future offices adjacent to Incyte’s headquarters.
ABOUT INCYTEProduct: Therapeutics for oncology Founded: 1991 in Palo Alto, Calif.Headquartered: Wilmington Went public: 1993Location: The iconic Wanamaker Building on Augustine Cut-Off in WilmingtonPhone: (302) 498-6700Employees: More than 625Financials: For the quarter ended December 31, 2015, total revenues were $244 million as compared to $124 million for the same period in 2014. For the full year ended December 31, 2015, total revenues were $754 million as compared to $511 million for the same period in 2014.Web: Incyte.comLinkedIn: linkedin.com/company/incyteTwitter: @incyte
Hervé Hoppenot
10 APRIL 26, 2016 www.DelawareBusinessTimes.comDELAWARE BUSINESS TIMES
LEGALGiuliani steps into ‘business divorce’ case in ChanceryFormer mayor triesto prevent dissolutionof TransPerfectBy Sam WaltzFounding Publisher
A dramatic conflict with startling echoes of the “War of the Roses” movie is about to escalate in Delaware Court of Chancery.
And throw in former New York City Mayor Rudy Giuliani for good measure to stir things up, seemingly attempting to bully Delaware Chancellor Andre Bouchard into an unprecedented action in America’s top “court of equity,” effectively telling Bouchard that his decision is not equitable, and it may even be illegal.
In the 1989 movie, Michael Douglas and Kathleen Turner played attorney Oliver Rose and his ex-wife Barbara Rose in a vicious post-divorce ego-fight for the rights to their family home. They ultimately kill each other. In a dramatic finale involving a falling chandelier rather than allow the other “to win.”
In proof of the adage that “truth is stranger than fiction,” the real-life version is playing out in a Delaware courtroom this week, with a $500 million company two former business partners built together as the prize neither appears to want the other “to win.”
It features Elizabeth “Liz” Elting and Michael Shawe, two estranged lovers — once engaged to each other 1996-97 — who in 1992 co-founded TransPerfect in their shared dorm room at New York University. The company grew to become one of the legal industry’s leading suppliers of translation services. But Elting and Shawe are seemingly ready to see their company destroyed rather than allow the other to win.
And, in a made-for-Broadway (or TV) twist, it features an attempt this week by arguably America’s most important former mayor, 9/11 hero New York City Mayor Rudy Giuliani, to ride to the rescue.
Giuliani seeks to influence Chancery, even to insert himself in an unprecedented extrajudicial intervention in front of Delaware’s Chancellor Andre Bouchard, to halt Bouchard’s proposed sale of TransPerfect so Giuliani can propose an alternate solution.
At issue for Giuliani is Chancellor Bouchard’s appointment last August of Skadden Arps Slate Meagher & Flom partner Robert B. Pincus as custodian to oversee the Chancery-ordered sale of translation giant TransPerfect Global Inc.
Chancellor Bouchard ruled that the deadlock between Elting and Shawe seemed so dysfunctional and impossible to end that it threatened the financial
future of the richly profitable firm, now likely doing about $500 million in revenues, with profits perhaps approaching the 15 percent to 20 percent range. Bouchard has another hearing in the case scheduled for April 27.
Already, each side has created its own legal dream team, “lawyering up” in a way that raised even experienced eyebrows.
Representing Elting, among others, are attorneys from Paul Weiss, Kramer Levin, with local counsel from Potter Anderson and Proctor Heyman.
Representing Shawe, among others, are attorneys from Sullivan & Cromwell, Kaplan Rice, Frankfurt Kurnit, with local counsel from Richards Layton and Morris James.
Mayor Giuliani wades Into ChanceryAlthough Giuliani is not a member
of the Delaware Bar, there are legal mechanisms he could use to be heard.
Giuliani takes issue with the proposed sale of the company which has seemed to remain, for the most part, healthy throughout, despite the seeming rot in the leadership at the top.
“I heard about this case from a mutual friend, a former partner of mine, and he asked my firm to take a look at it,” said Giuliani, proceeding to highlight a few issues he has with it, although without specifying who exactly his client, if any, might be.
“I don’t like courts, I consider courts part of the government, and I don’t like the government ordering companies to do things like dissolve themselves, especially when it’s a successful [business] organization,” he said.
“Moreover, I wasn’t sure if there was a good argument for it, or a bad argument for it. When I read the opinion, I was completely surprised by the conclusion the judge reached. The chancellor internally contradicted himself.”
“He analyzed it under Section 226. That gives him three possibilities. One, he can leave it alone. Second, he can appoint a third vote. As a last resort, he can order dissolution. He comes to conclusion that he’s going to use the last resort. But, there’s not enough evidence for equitable distribution. The circumstances are not egregious enough,” Giuliani added.
“Boards fight all the time, but there is a way to resolve through mediation and proper valuation. It’s un-American that a court can seemingly capriciously decide to dissolve a profitable and operational company,” Giuliani said.
“The company is not at risk, its recent numbers show otherwise (that it is not at risk), and it is not in disarray, as its management teams have signed affidavits stating as much. The chancellor is either not paying attention to the facts that are public or he is taking one side over another.
The Chancellor appears to want to not merely force the sale of the company, but to award the control premium to one party alone. That is not equitable, and this is an equity court.”
Giuliani said he has not decided if he and his firm will file an amicus brief or seek some increased intervention in the case beyond speaking out in advance of finalization of the Chancery decision. “All they asked me to do was review [the case], and come up with my fair and accurate conclusion. We haven’t reached those decisions.”
“Would I consider [asking Chancery Court to appoint Giuliani as mediator]? Maybe, but that is not what I’m here for,” Giuliani added. “This is a very bad precedent, if you can dissolve a company that just made a 14 percent profit last year, where the conduct was not egregious enough to require equitable dissolution.”
Asked if he perceived which party might bear greater responsibility, if either, in the business governance crisis, he said, “I have no sense of a party who occupies the ‘moral high ground’ in this case. I just think that if you give this more time, you might end up with a solution.”
It’s business, and it’s personalAccording to Chancellor Bouchard’s
opinion last year, Elting in 1997 called off her engagement to Shawe, and in 1999 she married Michael Burlant.
Burlant subsequently became collateral damage “roadkill” in the firefight between the two (via Shawe’s dismissal in 2013 of Burlant’s employer Cushman & Wakefield, the company’s real estate broker for 20 years).
Shawe married in 2011, but a reading of Chancellor Bouchard’s opinion suggests that he remains “a lover scorned,” having seemingly never gotten over Elting’s break-off with him. And rather than a working relationship between the two of them becoming more accommodating, it has devolved into what they and the court called “mutual hostaging.”
Essence of that “mutual hostaging” is that decisions are centralized to the top, not delegated, and each decision of even modest proportion is negotiated ad hoc, with each of the parties tying a decision that one is seeking to a decision or outcome the other is seeking. Even acquisitions are not safe, some prospective ones having been lost, with business leaders throughout the TransPerfect company virtually handcuffed by the intransigence at the top.
The language — in meetings, hallways and even e-mails — would make a sailor blush, and much of the e-mail language is repeated in the chancellor’s opinion. Even employees are held hostage, one of them a C-level human resources executive who appeared to have her
work visa called into question in a way that ultimately jeopardized her ability to remain employed in the United States.
Equity in the business is split 50-50 between Elting and Shawe, although Shawe long before had tucked 1 percent of his 50 percent in the name of his mother Shirley Shawe so the (former) partners could legally call TransPerfect a “woman-owned firm.” However, the court acknowledged that for all practical purposes Shawe is controlling his mother’s interest as his own.
And, according to Chancellor Bouchard’s opinion, the company in 2015 had about 92 offices in 86 countries, 3,500 full-time employees, some 10,000 additional translators and editors working in about 170 languages, generating some $471 million in revenues in 2014. Figures for 2015 have not been provided, but the growth momentum — despite the bickering — should have landed the firm in the $500 million range of revenues, and fast-growing professional services businesses like this one often are throwing off pre-tax profits up to 20 percent, although much obviously is being reinvested to fuel growth.
Chancellor Bouchard’s opinion is replete with perceptive and comprehensive comments on the business, but he notes “the state of management of the corporation has devolved into one of complete dysfunction between Shawe and Elting, resulting in irretrievable deadlocks over
For Chancellor Bouchard’s 103-page opinion at issue, Google Delaware Chancery, go to Opinions, find the 13 Aug 2015 date for… In re: Shawe & Elting LLC, et al.
And, for those attorneys who need a quick read, check out legal blogger Francis Pileggi’s 28 Aug 2015 post: www.DelawareLitigation.com/2015/08/articles/Chancery-Court-updates/Chancery-appoints-custodian-to-break-deadlock-of-profitable-corporation/
For other press coverage of the case, visit Crain’s New York Business for this article from Aug. 25, 2015:
www.CrainsNewYork.com/article/20150825/BLOGS02/150829916/court-orders-feuding-biz-partners-ex-lovers-to-sell-their-profitable
For the embattled company’s perspective, visit www.TransPerfect.com
DELAWARE BUSINESS TIMES APRIL 26, 2016 11www.DelawareBusinessTimes.com
significant matters that are causing the business to suffer and that are threatening the business with irreparable injury, notwithstanding its profitability to date.”
Blogger Pileggi chimes inFrancis G.X. Pileggi, the dean of
Delaware’s legal bloggers on Delaware’s corporate law and cases, was a bit surprised to hear of Giuliani’s interest.
“The case was based on a Delaware statute that says, in essence, if there is a 50/50 deadlock, you can go to court and get a ‘business divorce.’ ”
“In other words, if you cannot get along together, and no person has a majority, the court will set you asunder. If you don’t want the court to split up the company, don’t come to court,” added Pileggi, who is a partner with Eckert Seaman in Wilmington. “The core issue was whether a deadlock existed and whether they could continue as a business — as opposed to ‘who was right or wrong’ which was mostly a secondary issue and not the primary issue.”
Former Supreme Justice Ridgely Defends Bouchard
“Chancellor Bouchard is really just applying a statute that addresses the
unusual circumstance of stockholder and director deadlock,” said Henry duPont “Hank” Ridgely, who spent 30-plus years on Delaware’s bench, concluding with a decade on the appellate Delaware Supreme Court, before retiring a year ago to join DLA Piper, a global law firm. It’s the Delaware Supreme Court that would receive any appeal by any of the parties, making Justice Ridgely’s view a particularly relevant indicator.
“The Chancellor forewarned these parties, ‘work out this, or I’m going to have to do what I’m going to have to do,’ ” added Justice Ridgely. “They seem to have been trying to find some kind of buy-sell arrangement, and they’ve failed.”
“This case really is a lesson on the importance of having written agreements in place in advance for buying and selling respective interests. They had nothing of that kind in the beginning, nor were they ever able to agree upon one afterwards. The Chancellor called it ‘dysfunctional,’ and it truly is. There’s evidence that the company is also losing employees.”
“This really is a growing area of business law, what we call ‘business divorce,’ ” Justice Ridgely added. “In
fact, I just attended an ABA Business Law section in Montreal where I served on a panel on business divorce.
Regarding Giuliani’s attempted intervention, Justice Ridgely sees little promise that the former mayor might prevail.
“There’s no reasonable expectation that outside comment is going to distract a Delaware court from the facts present in the case, and the applicable law in Delaware,” added Justice Ridgely. “Delaware courts are quite used to scrutiny of their rulings, and they know rulings will be looked at locally, nationally and internationally. Judges know that, and that is why they are so careful with regard to the precedential value they set.”
Giuliani intervention surprises Hamermesh
Larry Hamermesh, a professor of law at the Delaware Law School at Widener University, raised his eyebrows when informed of Giuliani’s effort to engage the Delaware courts in discussion of the case.
“I find it very unusual for a party with no apparent interest in a Chancery issue to sound off on this, and I’m a bit suspicious of his motives,” said Hamermesh, an expert on Delaware law,
including Chancery Court practice. “I don’t see anything to complain about, given what the Chancellor has done.
“I’m not offended with the idea of a direction to sell a company in the face of a deadlock of the ‘War of the Roses’ proportions,” he added. “It’s consistent with statute. It’s consistent with precedent. It’s consistent with protecting the business.”
“If TransPerfect is sold, it’s not the death knell of this business, if the buyer can continue to run the business. And, if selling the business is sufficiently bad for both the warring parties, the threat of that may be the only way to get them to settle the issues. It may be the only plausible way.”
“What will likely come out on April 27 is another order. It will be appealable, and there are procedures for staying judgments pending appeal,” added Hamermesh. “That’s a fairly standard step. I think any appeal would be expedited.”
Although Chancellor Bouchard and the Bench do not speak of such active cases, Chancellor Bouchard’s next move is April 27, and little doubt exists in Delaware that Giuliani will not get what he’s seeking from the Delaware bench. n
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JPMorgan Chase expands FinTech resourcesBy Michael BradleySpecial to Delaware Business Times
A small business owner looking for a loan heads to the JPMorgan Chase website, and after a few clicks, has an application in progress to get the capital he or she needs. It’s quick. It’s simple.
As JPMorgan pivots away from older, more conventional means of conducting business, it requires substantial technological innovation and support. Despite shrinking its employee base worldwide by as much as 5,000 people, JPMorgan plans to add 1,800 workers in the state — with about 360 hired already — as it expands its financial technology (FinTech) resources and creates platforms that serve its customers more quickly, efficiently and securely. It is also making $200 million in capital investments to outfit sites for the growing workforce and to train those who come aboard.
“We have been expanding in Delaware over the last 20 years,” says Mike Zbranak, JPMorgan Chase’s chief information officer. “In the last couple years, it has accelerated, and we’re going JPMorgan has invested $200 million in capital investments to accommodate its growing workforce, including the Delaware Technical Center purchased last year for $44 million.
DELAWARE BUSINESS TIMES APRIL 26, 2016 13www.DelawareBusinessTimes.com
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to keep looking to expand over the next few years.
“We’re growing in our digital and mobile areas, big data, analytics, data warehousing for our consumer banking and asset management divisions.”
It’s part of JPMorgan’s overall strategy of increasing its expertise in online and mobile applications, by forging alliances with small companies on FinTech’s cutting edge and by beefing up its own presence in the field through hiring skilled workers at several sites throughout the state, most notably the Delaware Technical Center (DTC) in suburban Wilmington, on the grounds of the old AstraZeneca complex JPMorgan purchased last year for $44 million. There are also sites in Newark (one near Christiana Hospital and another near Iron Hill) and in Wilmington. The benefits will be substantial for many constituencies. JPMorgan becomes more agile by bringing its products to the market along updated platforms, he said. Training centers, like ZipCode Wilmington, will see their rosters swell with people learning to write code and gain access to high-paying jobs.
Meanwhile, state officials say, Delaware will gain tax revenue and speed its progress toward becoming a
tech hub.“The whole FinTech area is huge,
and this shows that JPMorgan feels confidence in the Delaware workforce to fill the jobs,” says Bernice Whaley, head of the Delaware Economic Development Office. “It also shows what Delaware is doing in the technology field.”
According to Zbranak, the DTC, which opened last fall, is key to the entire process, for a variety of reasons. JPMorgan had to revamp the entire facility, creating construction jobs. The philosophy behind the rebuild was to create a work environment that fostered collaboration and creativity. Instead of offices and cubicles, the DTC features an open footprint that encourages workers to discuss what they are doing and therefore build a synergy that leads to greater productivity.
It is modeled after the Silicon Valley spaces at places like Google and Apple, and Zbranak thinks it will be a great recruiting tool for young talent not interested in conventional workplace concepts.
“That’s how people in college work,” Zbranak says. “When they come in to the DTC, it looks very much like what they are used to. It’s what they envisioned, and it’s a great draw.”
Zbranak is originally from New York
and moved to Delaware in 1994, when JPMorgan employed about 300 tech people in one building in the state. There are now 2,700 here, spread out over a few different sites, with 2,000 in the DTC.
“Financial systems need to be leading edge,” Zbranak says. “We have great people and great partnerships with FinTech companies that we use to drive innovation and stay ahead of the game. We can also draw talent from them.”
JPMorgan’s tech initiative wouldn’t have been possible without a strong cooperative relationship with the state. Delaware is providing $13.5 million over three years in direct and indirect assistance to help with construction and training. It’s part of Gov. Jack Markell’s attempt to attract new business to the state and enhance the presence of employers already here. It has also worked with SEPTA through the Delaware Transit Corporation to provide $1 million in “enhanced regional transportation options.”
“Companies today have more options than ever before when selecting where to locate operations,” Markell said in a statement. “Given those choices, it’s exciting that JPMorgan Chase selected Delaware for its Technology Center, which promises more high quality, good
paying jobs for our citizens, including in fast-growing fields like IT and cybersecurity. JPMC’s investment is one example of how Delaware, with our top quality workforce and fastest broadband speeds in the country, is well-positioned to attract companies in a fast-changing economy that is seeing significant growth in the need for technology-related jobs.”
Training is a huge part of the equation, and that’s where the Delaware Tech Hire initiative and enterprises like ZipCode Wilmington come in. They have been able to provide the types of workers JPMorgan needs and do it with Delaware residents, according to Zbranak.
“We’re trying to make sure as many Delawareans as possible who are looking to get into this field have the opportunity to get these jobs,” Whaley says. “JPMorgan loves that there is a local component to this.”
Thanks to its close relationship with the University of Delaware, through which many students are able to take part in internships with the company, JPMorgan is able to recruit tech talent from among graduates. Executives also lecture and teach at the school, and last October, JPMorgan rededicated the Innovation Center at UD. n
14 APRIL 26, 2016 www.DelawareBusinessTimes.comDELAWARE BUSINESS TIMES
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ENTREPRENEURSBoard game development anything but child’s play
By Kathy [email protected]
Nate White spent three years of his Life® designing a board game that eliminated the Trouble® he had with games like Settlers of Catan®. Then he took a Risk® and quit his job with JP Morgan Chase to market his game. He didn’t have a Clue ® about marketing at first, but Guess Who® is learning fast as he travels around the country selling Middle Empire®.
The hobby games business, which hit $880 million in sales in 2014, grew another 20 percent in 2015, according industry magazine ICV2.
Even celebs are obsessed. Starting tackle David Bakhtiari taught the other Green Bay Packers to play Settlers of Catan. The players’ naturally competitive temperament reportedly makes for cutthroat games.
Delaware has enough local interest to support four successive Unpubs, Comic Con in Dover, Galactic Con in Middletown and Thy Geekdom Con in Claymont.
Nate White’s 11-month sojourn self-publishing Middle Empire is a how-to for other Delaware game designers
His concept was Risk meets top-selling Catan, but minus the dice and the six-hour play time.
The 33-year-old Hockessin man followed the recent trend among American game designers to combine the strategic seriousness of European games and the thematic fun of traditional American games.
Typical American games, sometimes derisively referred to as “Ameritrash,” tend to focus heavily on a theme. They emphasize fun and thematic game play. They also tend to feature long play times, player elimination, and large amounts of random chance. Euro games feature strategic depth and balance between the players.
White’s twist: You can learn Middle Empire in 15 minutes, and you can play it in 30.
His slogan: “More fun in less time.”His target audience: Middle School.
High School. College.“I said, hey, maybe I can put these
two games together and make it much shorter and take out some of the things I don’t like,” White said. “In Risk, if you want to take over an area, you can, but, if you’re rolling the dice and they’re not working in your favor, you’re losing and there’s not anything you can do about it.
In Catan, once you’re in one place, you’re set for the game, but, in my game, you can build in one area and then, if you see there’s a better area, you can build toward them and attack them.”
Getting the game play down was bumpy: “It was continual, continual, continual play testing over and over and over,” White said. “It was a lot of playing with family because I knew they would tolerate it. They’d say, ‘What if you do this…’”
He dropped in on a board-gaming group at the University of Delaware: “I said, ‘Guys, I know I’m new. You’ve never seen me before. Can I just drop my game in front of you and see what you think?’ ”
He took it to Board Game Night at Days of Knights in Newark. “They really helped out with the prototype version.”)
When it was time to print the game, his friend Justin Weber supplied the artwork. (“I can’t draw a stick figure.”)
White made some rookie mistakes: He didn’t go to Kickstarter — the popular online funding platform that has launched 7,562 games, including 625 that raised more than $100,000 and 63 that raised more than $1 million.
“That’s the one thing I wish I would have done. I wish I’d gone through
Kickstarter, but God has blessed me so much that I think I can do this by myself.” He said store owners often ask if he did Kickstarter because the online campaigns give new games free international publicity.
“Coming from a finance background, I had no marketing and sales skills. I’ve really learned how hard it is to be a salesman,” White said. “It’s hard to convince the consumer that an unknown product out there can be fun. It’s not a product that you can readily show them, like, ‘Look at my razor. My hair is gone.’ It’s not one of those products where you can quickly show how it’s going to improve the player’s life.”
White, a finance major, made his decisions based on functionality and cost.
His game pieces, often important to board-game buyers, are Scrabble-simple ones. (“When I was going to go to production, the company I was working with said, ‘Hey, I can give you wood pieces and it will cost you this much for this many games.’ I said, ‘That sounds fine.’”)
He opted to buy 1,000 copies as a test market because pricing was better on larger quantities. He’s still working from that original order.
He decided not to use a distributor. (“I would get killed at a distributor,
Nate White of Hockessin with Middle Empire, the board game he designed at his Hockessin home. White bypassed Kickstarter and self-published his game, which is sold in several local stores and online.
DELAWARE BUSINESS TIMES APRIL 26, 2016 15www.DelawareBusinessTimes.com
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because they take a cut, and I like to have that relationship with the store owner and the customers.”)
He spent time at regional toy conventions until he opted to pay $800 for a first-timer’s table at the Chicago Toy Fair. (“The long-term goal is to get the game licensed by a major company and, from what I read, the best thing to do was to go to Chicago because there are all kinds of executives wandering around.”)
White, who has limited mobility due to a 2001 motorcycle accident, offered to pay a friend’s way to Chicago in return for the man’s help transporting his games. They sold all 24 games they brought — plus their demo game.
They wore Middle Empire T-shirts. (“I’m trying to get it out there, and, if I can’t be a walking advertisement, that’s even better.”)
5.0 out of 5 starsRisk that doesn’t take six hours to playgn,
He got three companies to take a look. (“They all said the game looked like it was a lot of fun, but I actually only played it with one of them. I think it wasn’t right for their companies. Two of them were more geared toward education products.”)
He took it to independent games stores like Leedom Street Games in Jenkintown, Pa., where owner Kate
Pettit welcomes his visits. “He is great with the customers and not sales-y in any way. He just sits and plays the game with them and lets the game work its magic on its own,” she said.
Josh Tempkin, a game-design group founder who has 50 of his own games in various stages of design, said self-publishing, as White did, is difficult.
Tempkin contracts with professional game publishers.
“That guarantees that I have extra unbiased eyes to make sure I’m not missing something obvious with either the design or play testing or art or marketing. The downside there is that your return is a small percentage of
the shelf price. Going with a publisher, you probably won’t make a whole lot of money unless either you get a mega-hit — very, very unlikely for new designers — or you can get lots of little royalty checks from many moderately successful games. Point is: don’t expect to make any money doing this.”
Kaarin Engleman, a board member for the Boardgame Players Association, said Kickstarter campaigns and companies like Gamecrafter.com that publish games in small quantities pump production of board games. She thinks consumers will continue to buy. “There’s something special about getting together with people face-to-face in a social way
that you don’t get from playing on an iPad.” she said.
Englemann said creating a game is like writing a novel or hoping to become a professional athlete. “The ones who are really successful, like the people who created Magic, they make lots of money, but most people don’t. They do it because they love it and they’re lucky if they get their money back, but they have a great time.”
White, who recently started another finance job, has sold 500 games, half his stock. “That’s pretty good from an unknown guy,” he said.
He’s working on a phone app and an expansion kit for Middle Empire.
Occasionally, he’ll get fan mail. (“Out of the blue I will get an e-mail from somebody who bought the same and he says, ‘I like this game. I play it with my kid all the time. Thank you.’ ”) (“I’ll be talking to someone and someone will walk by my ad and say, ‘Hey, that game’s a lot of fun.’ Yeaahh. Thank you for being a salesman.”) n
Middle Empire is aimed at players from middle school to adult.
The game is available for $19.99 in stores, on Amazon and through White’s website at www.natecoholidings.com.
16 APRIL 26, 2016 www.DelawareBusinessTimes.comDELAWARE BUSINESS TIMES
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HEALTH CARESt. Francis gives seniors best of both worldsCenter delivers care and independence at the same timeBy Rob KalesseSpecial to Delaware Business Times
As the world population climbs past 7.4 billion people and life expectancy eclipses 71 years, the same statistics continue to rise here at home. According to the Delaware Population Consortium, the First State’s elderly population (ages 60 and older) is projected to grow between 8 percent and 12 percent through 2020.
Members of the baby boomer generation, who have now reached retirement age, currently face the oncoming challenges of elderly life. Independence, quality of life, and medical and financial peace of mind become top priorities. Meanwhile, the last thing grandparents and elderly aunts and uncles want is to become a burden on the state or their younger family members.
While many senior citizens might scoff at the idea of entering a nursing home, the St. Francis Living Independently for Elders (LIFE) center on the Wilmington Riverfront offers an interesting alternative. It is here that the needs of the elderly, like primary care, immunization, socialization and even transportation, are provided on a regular basis. At the end of each day, however, members return to their own homes.
Amy Milligan, executive director at St. Francis LIFE, says the center acts as a one-stop shop for the elderly, allowing them to maintain the normalcy of living in the homes they have likely owned all their adult lives and raised families in, while getting the help and care they typically cannot provide for themselves.
“For us, it’s all about quality of life for our members; we provide an environment that allows the elderly to enjoy the last phase of their lives in the best way possible,” said Milligan. “Whether it’s getting them to appointments, providing in-home care in the way of visiting nurses, or creating events to keep them active, we offer a nursing home level of care while allowing our members to still live independently.”
St. Francis LIFE operates from 9 a.m. to 5 p.m. daily, and works as a senior center where members arrive with their day, diet and activities planned almost to the last detail. All members are 55 and older, have met certain health and financial requirements assessed during the enrollment phase, and are either approved for Medicaid or Medicare, or pay out-of-pocket for the care.
Maria Miller, manager of enrollment and outreach, says the enrollment process begins with an assessment by the health-care staff at St. Francis LIFE, as well as assistance with Medicaid. Each
St. Francis LIFE is open daily, and members have their diet, activities and exercise planned to the last detail. Members are approved for Medicaid or Medicare, or pay out-of-pocket.
More than 180 members belong to St. Francis LIFE, and that number is expected to climb to a maximum of 250 in the next several years.
DELAWARE BUSINESS TIMES APRIL 26, 2016 17www.DelawareBusinessTimes.com
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member’s schedule — whether they come to the center three days or five days a week — is carefully organized.
“We go to their homes and they come and visit with us, so that we can be certain they are a good fit for the LIFE center,” said Miller. “Our assessment includes a visit with our occupational therapist, physical therapist, and nurses and practitioners, so that we can design a program that provides them the proper daily routine.”
St. Francis LIFE currently has 180 members, although Miller says they expect to grow to a maximum of 250 in the next year or two. As part of St. Francis Healthcare, the center falls under the umbrella of Trinity Health, the second-largest provider of health care in the country. Through Trinity, St. Francis LIFE is a National Program of All-Inclusive Care for the Elderly (PACE) Association, which connects leaders dedicated to providing innovative care for frail, older adults.
Ciro Poppiti, register of wills for New Castle County, was a member of the first board of directors at St. Francis LIFE, when they opened their doors to the first participant in February 2013. As someone who acts as an “ombudsman for the elderly of Delaware,” Poppiti saw incredible potential in what the LIFE center had to offer.
“More than 360 people turn 60 in
this state each month, including those that currently live here and those moving to Delaware’s beach towns for retirement,” said Poppiti. “So the cost of aging is two-fold: not only are many of these folks paid for by the state, but additional stress is put on seniors and their caregivers. St. Francis LIFE reduces the cost of aging across the board.”
Poppiti, who is currently running for lieutenant governor of Delaware, says St. Francis LIFE provides the model for caring for the elderly, in that it offers a place for them to live dignified lives through social interaction, while
allowing for independence at home. The genius of picking up and returning the elderly to their homes, Poppiti said, cannot be understated.
Jean Evans, a Wilmington resident who works from home as a property manager, is one of the many caregivers to benefit from St. Francis LIFE. Evans’s mother, Anna Allen, has been a member at the LIFE center for six months, and it has given Evans peace of mind in her work and the level of her mother’s care.
“Mama is still quite mobile and in relatively good health, but she needs medically supervised exercise and has
specific dietary needs after losing 40 percent of her stomach to surgery,” said Evans. “I take her in the mornings, but the bus brings her home, and it allows me to take care of my responsibilities during the day, without feeling guilty.”
Like most Delaware residents with elderly parents, Evans was concerned about how she would take care of her mother’s health and well-being once the time came. But the LIFE center has put those concerns at ease. Even occasional trips to the hospital, Evans says, have become easier.
“More than once I’ve called the nurses for in-home care and it’s worked out beautifully, because we were able to avoid going to the hospital altogether,” said Evans. “But in the cases where a visit to the hospital couldn’t be avoided, the folks at the LIFE center got Mama through the ER at St. Francis Hospital in less than 30 minutes, and, once she was in a room, I didn’t have to wait to get answers on how she was doing and what she needed.”
Miller and Milligan both said that St. Francis LIFE would continue to accept applicants up to its maximum occupancy of 250 members. Once full, the plan is to open a second LIFE center, perhaps in Newark or Middletown, though they could not comment specifically in terms of a timetable or location. n
The St. Francis Living Independently for Elders (LIFE) center is located on the Wilmington Riverfront.
18 APRIL 26, 2016 www.DelawareBusinessTimes.comDELAWARE BUSINESS TIMES
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Wilmington schools should be part of anti-poverty debateSenate
Republicans recently unveiled an 11-point plan to combat inter-generational poverty in Delaware and they deserve a lot of credit for stepping forward on the issue. Not all the ideas will become law, but some will, and all deserve an
honest debate. The objective is to make Delaware the lowest-poverty state in the nation by 2024.
The Committee of 100 agrees that the focus should shift from simply easing the hardship of poverty to breaking the cycle of poverty entirely. And what is the single most effective tool in doing that? Education.
There will be a vote this spring in
the General Assembly on an issue that we believe should be considered part of the state’s anti-poverty agenda. That issue is the redistricting plan of the Wilmington Education Improvement Commission (WEIC) and approval of the funding needed to implement all the recommendations of the Commission’s report.
In 2024, today’s six-year-old first graders in Wilmington will be 14 and about to enter high school in the fall. Which road will they be on? On a track to finish school with career or college-ready skills prepared to contribute to society, or on a track to a life of dependency in the social service system or the criminal justice system? We know the high costs of those systems, not to mention the human costs of broken families and lost opportunity, or the societal costs of crime and violence. The WEIC report suggests that we try something different. Let’s make
sure we give today’s generation the tools to be independent.
We now know that kids who live in poverty face higher hurdles to learning than others. They may come to school hungry, may have untreated medical issues, may have less stable family situations — moving frequently and getting less consistent mentoring at home, if any. These difficulties grow with each successive generation that lives in poverty.
This means that for those kids, simple access to school, without additional support services, is not equal access to educational opportunity. They are behind at the start and never catch up. We often hear it said that America does not guarantee equal outcomes, but does promise equal opportunity. It is time we live up to that promise in education.
Wilmington is certainly not the only place in Delaware with high concentrations of poverty. We believe
added resources for schools with kids living in poverty should be available statewide. But if we can’t accomplish that larger goal right away, we still should start someplace, and Wilmington is most in need.
Poverty and its offspring — high unemployment, crime and violence — are threats to the well-being of our state’s economic capital. Giving Wilmington’s school kids an equal shot at a good education will be one of the most important steps we take in breaking the cycle of poverty, and in ensuring the economic well-being of Delaware in the future.
Don’t say we can’t afford it. We can’t afford not to. n
Paul H. Morrill Jr. is executive director of The Committee of 100, a nonprofit association of Del-aware business leaders that promotes responsible economic development and addresses issues that affect Delaware’s economic health.
Paul H. Morrill Jr.Guest Columnist
If offices don’t evolve, they become extinctIs your team
ready to follow other Delaware companies in the agile-office concept?
Delaware’s strategically focused companies are all about disruption, turning the old office model on its head. Technology, connectivity, and perceptions about
how work gets done are changing so rapidly that the focus of today’s discussions about office space design has changed from a demand for cheap space to a demand for “smart” space.
Owners are looking at their workplace as a tool for the attraction and retention of top talent and as a physical symbol of their culture and brand. With the
proliferation of remote workers and a diminished desire for the corner office, owners are faced with a whole new set of questions. How do we design the space to make people want to come to the office? How do we get the most productivity out of our staff while they are here? And, how do we encourage organic, effective meetings rather than scheduled management-driven sessions?
“The office is more than a place to get work done. It’s where we connect with clients and each other to problem-solve and share expertise,” according to Kate Lyons, director of branding and communications for Lyons Companies. Her team is currently in the marketplace for new space, and their design plans have come back with a heavy emphasis on an environment that encourages an exchange of ideas. “Dynamic usage creates more value, attracts employees and supports the culture of the
organization,” she said.Phillip Lock with Formcraft,
a workplace strategy design and construction firm, cautions, “when planning a redesign, it’s only when the intent of the newly designed space is clearly communicated that people buy into the reasons for changing it, and begin to change their behaviors.” Interestingly enough what they have found is that electrical and data in older offices cannot keep pace with today’s mobile demands. “People want to work in a completely mobile or agile environment, but batteries don’t last forever and favorite collaboration spots usually have no power or data near them.” This is a common complaint, according to Lock.
The far extreme is the unassigned “benching” concept where your work station is wherever you plug your laptop in that day, with your phone
line following you. But even those holding onto their private offices are creating open meeting areas strategically positioned throughout conventional space in addition to conference rooms.
Another popular feature is high-top tables in meeting spaces with nearby writable walls. When I originally saw this as a concept plan, I thought it seemed awkward, but my first experience with it, smack in the middle of 50 cubicles, seemed natural. Afterward, I received a picture of the writable wall as a follow-up action item document, and I knew it was a winner. Expect to seem more of this concept as the agile continues to evolve. n
Rick Kingery, vice president of Colliers International, specializes in the leasing and sales of commercial properties. His Twitter handle is @rickkingery
Rick KingeryGuest Columnist
DELAWARE BUSINESS TIMES APRIL 26, 2016 19www.DelawareBusinessTimes.com
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Manufacturing association building for the futureThe Delaware
Manufacturing Association (DMA)is an affiliate of the Delaware State Chamber of Commerce and is the state representative of the National Association of Manufacturing. Our members include manufacturing firms and plants
of all sizes and business markets from all across the First State. One of our key goals is to consistently promote the growth for Delaware manufacturing and the advantages we offer within the state for potential investors. Our priorities are:
• To promote and support public policies and legislation that seek to help manufacturers in Delaware better compete in a global economy and reduce regulatory efforts that at times constrains job growth opportunities.
• Promote the value of manufacturing and the diversity of career paths available within the community through outreach education aimed at informing the public on what today’s manufacturers do and the skills needed
to continue to be competitive.• We seek to encourage the continued
investment into our state’s infrastructure to make sure we are as efficient and as cost effective as we can be as we seek to ship and distribute our raw materials and variety of products.
• We seek to continue to support the numerous private-public workforce development initiatives through the donation of our members’ time, talents and strategic funding support
• We continue to collaborate with fellow Delaware manufacturers to not only leverage best industry practices, but also to connect and nurture potential business partnerships and relationships within the state.
There has been a great deal of activity that we have engaged in over the last few years that continues to keep manufacturing on the forefront within Delaware. Some of those activities include our continued partnership and support of Delaware Technical Community College and the local school systems to further develop our Manufacturing Career Pathway program.
With an established program in New Castle County (and one earmarked for Sussex County and in the planning stages for Kent County),
we are utilizing this vocational program to provide high school students a rigorous, technology-based education with some practical hands-on experience in some of Delaware’s leading manufacturing facilities. In the past year alone, we were able to place students into facilities where they were able to perform tasks that made a significant contribution to the facility where they worked and the students were well received and appreciated for their efforts by their mentors.
Our goal is that the connections that were made will continue and that many of these students will have the choice of an employment opportunity upon graduation or the continuance of their education through a two- or four- year engineering technology program. We are excited about the opportunities for these programs and we are anticipating the same kind of success for our current Sussex County (and future Kent County) program as well.
Not only have we sought to broaden the education of our future workforce in the past year, but we also had a concerted effort to bring together the Economic Development Offices of all three counties to introduce them to the DMA. Our desire is that if we
have manufacturers who are seeking to grow and expand as our economy strengthens, that they do so within the borders of the state of Delaware. Our desire within DMA is to make sure that we provide each county the audience with the members of DMA so they will have the opportunity to explain what advantages their individual counties can offer to prospective investors.
With pending mentoring partnerships with Delaware State University, additional exposure of Manufacturing Career Opportunities across the state, and continued advocacy of a “better Delaware for better manufacturing,” the Delaware Manufacturers Association continues to have a full plate ahead of us in 2016, and we are eager to continue to support the growth and promotion of our Manufacturing industries within our great state.
For more information or to get involved with any of the many DMA activities, please contact Cheryl Corn with the State Chamber at (302) 576-6572 or [email protected]. n
Brian Nixon is chairman of the Delaware Manu-facturing Association, one of five affiliates of the Delaware State Chamber of Commerce.
Brian NixonGuest Columnist
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20 APRIL 26, 2016 www.DelawareBusinessTimes.comDELAWARE BUSINESS TIMES
spotlight Permits and regulations
Public employees’ ‘little empires’ turn off businesses
By Kathy [email protected]
Permit process can take years, some owners say
Delaware businesses are calling for fewer regulaitons and faster permitting to expedite projects. The state Homebuilders Association is even drafting legislation to creat a streamlined process.
Business owner Rich Spinks said he can’t sneeze without some government agency telling him how many times he
has to sneeze and how many God bless yous he should get.“They build layer after layer of bureaucracy,” the owner of
GiggleBugs Early Learning Center in Millsboro said. “They have all that authoritative power that says, ‘If you don’t deal with us, we’ll shut you down.’
“If you’re a large company, you can lawyer up, but, as a small business owner, I don’t have that ability,” Spinks said. “As a small business owner, you basically either do what they say or you go out of business.”
Delaware businesses — big and small — are calling for fewer regulations and faster permitting.
The Homebuilders Association of Delaware is drafting legislation to create a streamlined review process. The first draft would require the counties to offer expedited reviews — not longer than 9 months — for large office and manufacturing projects that provide a minimum of 60 new, full-time jobs.
The idea is to tell employers looking at Delaware that the state will work with you and get your approvals quickly and efficiently.
By contrast, developer Paul McConnell said it took him 3½ years to put a Dollar General in Wilmington and, even then, it took a “come-to-Jesus” meeting to get all the approvals he needed.
“Everyone’s frustrated, and, with an economy that’s terrible,
there’s no way there should be a backlog,” McConnell said. “Nobody’s doing anything. Nobody wants to be here anymore. Companies are leaving. They find it too hard to do things here. They have to speed things up.”
Businesspeople use words like “strong-arm” and “little empire” and “squash you” to describe the process. One executive said she spent 30 minutes waiting for an official who was in the ladies room. But, most were afraid to talk on the record. As one chain store owner put it, “They have a little empire and they yield a lot of power and you know they can squash you.”
Government officials say it is often the owner or the contractor who drops the ball and doesn’t do what is required of them.
Several municipalities, counties and agencies have sped up their systems and others are trying, but businesspeople say they still have to hire consultants and permit sitters to ford the curlicues of government because some individual bureaucrats won’t get with the program.
“In parts of the city government, they still don’t have voicemail,” McConnell said. “Consultants can’t challenge those officials in any way because they would get dinged on their permits.”
“It takes too long and it’s too expensive,” said Joseph F. Fitzpatrick Jr. of the New Castle County Chamber of Commerce. He said companies don’t tell you they’ve gone to another state
DELAWARE BUSINESS TIMES APRIL 26, 2016 21www.DelawareBusinessTimes.com
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because Delaware’s process is too drawn out. “They just don’t come.”
“Time is money,” said attorney Richard A. Forsten of Saul Ewing. “For any company coming to Delaware, there are two questions they will ask. One: Can I build the project I want to build? And, two, how long will it take to get the approvals? For better or worse, Delaware’s reputation is that approvals take a long time, compared to other places.”
“You can’t do anything without having a team of engineers and lawyers. We still have to send engineers to Dover to wait in line to meet with somebody. In some cases, there are no appointments.” McConnell said. “The process is just too convoluted, because they never take away anything. They just keep adding stuff.”
Michael J. Hare, vice president at Buccini/Pollin Group, said there may be issues with consistency in the city, but timing is rarely a problem, compared with New Castle County.
“The county code is not as agile as it once was. Most of our work is done in the city, but we hear from other developers that the duration is an issue in the county, especially for major projects,” he said. “Sometimes, even if you have existing zoning, to get something approved is 14 to 16 months, and, assuming you have 14 to 16 months of building at the back of that, it’s a challenge.”
The homebuilders association is working with other business groups and government officials to create the expedited process, Executive Vice President Howard Fortunato said. He emphasized the legislation would exclude housing and retail developments.
A. Richard Heffron, president of the Delaware State Chamber of Commerce, said finding the best way to do it is tricky, but the chamber supports the idea of a quicker process. “We’ve got to do better than we’re doing now. The governor knows it, and I think the county executives are catching on,” Heffron said. “You don’t want to change the rules. You just want to have it move quicker. If Middletown can do it, obviously there is a way to do it.”
An example of a Middletown success: The Johnson Controls building took only three months for all approvals. The building — from soup to nuts — was completed in one year.
“We need some agility when it comes to larger projects that would not be detrimental to the communities where they’re built,” Hare of Buccini/Pollin said. “We need employers because of all we’ve lost recently.”
Brian DiSabatino, president of EDiS Co., lauded the state’s PLUS process that provides agency reviews of major land proposals before they are submitted to local governments and county attempts
to create zones near major highways where development is encouraged.
“What is difficult for the developer is the level of regulatory burden and the processing time for all the permits,” he said. “Unfortunately, the regulatory agencies don’t share that sense of urgency.”
DiSabatino said his first-choice prescription to fix that would be legislation that would entice property owners to get their properties pre-approved. His second choice would be a bill that mandates a deadline. “Right now there are no consequences for the regulatory agency that delays, but there is a tremendous consequence for the business community,” he said.
Rep. Daniel Short, a Republican member of the House Small Business Caucus, said agencies sometimes lose sight of what constituents face when they come into an agency just trying to get from point a to point b. “It probably would behoove every state employee to have to get a project of their own through the process and see what they put in front of them in terms of hurdles. Let them leave and come back in as if they were customers.”
Rep. Bryon Short, a Democrat member of the caucus, lauded the draft bill: “The legislation is a way for the state, in a real way, to encourage businesses to locate here. Also, I think it’s a very strong message that we’re willing to look at our process and take
steps to insure that we’re a place where businesses will want to expand and locate, whether they’re large or small. Obviously, this is focused on large business. But we’re also concerned about small and medium-sized businesses, because they’re a large part of our economic engine.”
Or, as Paul McConnell, whose company turned the old Hercules Building into an innovation center, put it: “We’re not rocking the world here. Companies are not knocking down the doors to get here.”
“The draft legislation is all about creating more jobs in Delaware. Everything starts with more jobs,” said Forsten of Saul Ewing. “If we have more jobs, that reduces poverty, crime and other social ills. If we have more jobs, families have more money and children have a better home environment. … Imagine, for a moment, if we could persuade a large employer, like Amazon, to open its next new facility in the City of Wilmington. Imagine 1,500 or so new jobs in a city of roughly 70,000. The impact would be tremendous. We can spend more money on police, on education, on other social programs, but, if we could spend some money to induce a large employer like Amazon to come to Wilmington, that expenditure could potentially be more effective than a lot of other spending we are doing. It all starts with jobs.” n
22 APRIL 26, 2016 www.DelawareBusinessTimes.comDELAWARE BUSINESS TIMES
BOOK OF LISTSDevelopersRanked Alphabetically
Company Phone / Fax Person in charge (Title) Year FoundedBESTFIELD HOMES30099 Stage Coach CirMilford, DE 19963www.bestfieldhomes.com
(302) 424-0933(302) 633-6405
Tony DiEigido (Co-President)Dan Martelli 1954
BUCCINI/POLLIN GROUP322 A Street, Suite 300Wilmington, DE 19801www.bpgroup.net
(302) 691-2100(302) 691-2099
Christopher F Buccini (Co-President)Robert E Buccini (Co-President)
David B Pollin (Co-President) Co-Presidents1993
DELAWARE VALLEY DEVELOPMENT COMPANY726 Yorklyn Road, Suite 150Hockessin, DE 19707www.dvdc.com
302-235-2500302-235-7370
George P Beer (President/Owner)Glenn S Worgan (Vice-President)
Joanne Govatos (Controller)Laura H Nilsen (Manager)Eden Roberts (Manager)
1999
DELLE DONNE & ASSOCIATES, INC.One West Commons Blvd., Suite 100New Castle, DE 19720www.dda1.com
(302) 325-1111(302) 325-0111 Ernest F. DelleDonne (President & CEO) 1946
DOVER HOUSING DEVELOPMENT30 S New StDover, DE NAwww.missionfirsthousing.org
(302) 677-0106 Walter Kubiak (Chief Executive Officer) 1994
EASTERN STATES CONSTRUCTION SERVICE702 First State BlvdWilmington, DE 19804www.eastern-states.net
(302) 995-2259(302) 995-2460
Francis JulianRichard Julian 1953
EMORY HILL COMPANIES10 Corporate Circle, #100New Castle, DE 19720www.emoryhill.com
(302) 322-9500(302) 838-7226 Bob Hill (President) 1981
HARVEY, HANNA & ASSOCIATES, INC.405 E. Marsh LaneNewport, DE 19804www.harveyhanna.com
(302) 323-9300(302) 683-9306
Thomas J. Hanna (Vice President & COO)E.Thomas Harvey, III (President) 1997
JACKSON CROSS PARTNERS, LLC.300 N Market StreetWilmington, DE 19801www.jacksoncross.com
(302) 792-1301(302) 792-1310 Pete Davisson, CCIM, SIOR (Founding Partner) 2003
LANG DEVELOPMENT GROUP600 Woolen WayNewark, DE 19711www.langdevelopmentgroup.com
(302) 731-2881(302) 731-2881 Jeff Lang (President and Owner) 1999
LEON N. WEINER AND ASSOCIATES4 Denny Rd, Ste 1Wilmington, DE 19809www.lnwa.com
(302) 764-9430(302) 761-7375 Kevin P. Kelly (President) 1949
LIBERTO DEVELOPMENT1500 E Lebanon RdDover, DE 19901www.delawarebestbuy.com
(302) 698-1104 Tony Liberto 1968
MATTEI CORPORATION15 McCullough DrNew Castle, DE 19720www.matteicorp.com
(302) 324-5100(302) 324-5109
MCCONNELL JOHNSON REAL ESTATE COMPANY, LLC1201 N Market St, Ste 400Wilmington, DE 19801www.mcconnelljohnson.com
(302) 421-2000(302) 428-0723
Paul McConnell (Partner)Scott Johnson (Partner)
Shona Grace (Chief Operating Officer)2000
MILFORD HOUSING DEVELOPMENT977 E Masten CircleMilford, DE 19963www.milfordhousing.com
(302) 422-8255 Matthew Parks (Chair)David Moore (President/CEO) 1977
PETTINARO COMPANIES234 North James StreetNewport, DE 19804www.pettinaro.com
302-999-0708302-999-1634 Gregory Pettinaro (CEO) 1965
RDM3 Woodland AveOcean View, DE 19970
(302) 537-4434
REYBOLD HOMES2350 Pulaski HwyNewark, DE NAwww.reybold.com
(302) 834-3000 Jerome S Heisler (Chairman) 1973
SETTING PROPERTIES, INC.P.O. Box 5Montchanin, DE 19710www.setting.com
(302) 888-2200(302) 888-2240 Joseph Setting II (President) 1988
Source: Individual company survey responses. Researched by: Delaware Business Times. Some companies may have been omitted due to lack of information, deadline restrictions, or space constrictions.Editorial Estimate = Information derived from: publicly available sources, observation, news sources, and general market knowledge of the editorial team.
DELAWARE BUSINESS TIMES APRIL 26, 2016 23www.DelawareBusinessTimes.com
F150 to 750: One Stop Shopping for Commercial Trucks
SPECIAL SERVICE HOURS: 7:00 am - 12 midnight M-F 7:00 am - 4:00 pm Saturday
Sales: 7:30 am - 8:30 pm Monday-Friday | 7:30 am - 5:00 pm Saturday
4003 N DUPONT HWY., NEW CASTLE, DE 302-656-3160 • BAYSHORETRUCKS.COM
Serving the tri-state area since 1976200TRUCKS IN STOCK
NearlyThe Truck Store
BOOK OF LISTS
Computer Consulting CompaniesRanked by No. DE Employees
Rank Company
Phone / FaxNo. DE Employees Person in charge (Title)
Year Founded
1CAI1201 N. Market Street, Suite 1404Wilmington, DE 19801www.compaid.com (302) 888-5500(302) 888-5700 1,200 Ernest J Dianastasis (Managing Director)
1981
2ARKIEVA5460 Fairmont DriveWilmington, DE 19808www.arkieva.com (302) 738-9215(302) 454-7680 50
Harpal Singh (CEO)Sujit Singh (COO)Georgi Genov (Director of Software Development)Peter Murphy (Director of Software Implementation)Garry Morton (Director of Sales ) 1993
3SSD TECHNOLOGY PARTNERS1024 Justison StWilmington, DE 19801www.ssdel.com (302) 652-3370(302) 652-4591 42 Lisa Detwiler (Chief Operating OfDcer)
1981
4DIAMOND TECHNOLOGIES221 W 9th St, Ste 200Wilmington, DE 19801www.diamondtechnologies.com (302) 656-6050(302) 656-6058 38 Greg Ballance (President & CEO)
1996
5BRANDYWINE TECHNOLOGY1521 Concord PikeWilmington, DE 19803www.brandywinetechnology.com (302) 656-6100
25 B Joyce Lockhart (Owner)
1999
6INTELLITEC SOLUTIONS2002 West 14th StreetWilmington, DE 19806www.intellitecsolutions.com (302) 656-7050(302) 397-2055 20 Rick Sommer (President)
1986
7MYSHERPA2060 Limestone Rd, Ste 204Wilmington, DE 19808www.mysherpa.com (302) 781-3005(413) 383-9671 16 Ethan Tancredi (President Sherpa)Greg Gurev (Head Sherpa)
2001
8TECHSOLUTIONS, INC.5630 Kirkwood HwyWilmington, DE 19808www.techsolutionsinc.com (302) 656-8324(302) 656-2929 12 Rick Monnig (President)Rich Kenney (Vice President)
1999
9PROACTIVE PERFORMANCE SOLUTIONS560 Peoples Plaza #139Newark, DE 19702www.proactiveusa.com (302) 375-0451
10 Andy Thompson (President)
1993
10ADVANCED NETWORKING1316 Philadelphia PikeWilmington, DE 19809www.advnetwork.com (302) 792-9200(302) 792-9294` 10 Rick Raphael (Owner)
1986
11INCITE SOLUTIONS5714 Kennett PikeWilmington, DE 19807www.inciteofDce.com (302) 655-8952
5 Bob Hill (President)
2000
12BRANDYWINE INFORMATION GROUP1 Innovation WayNewark , DE 19711www.brandywineinfogroup.com (302) 529-0212
5 Wayne Kingston (President)
2001
13PCS818 N Market StWilmington, DE 19801www.helpmepcs.com (302) 456-9500
5 Jake Ruddy (President of DE/MD)2003
14TOWER BUSINESS SYSTEMS278 Quigley BlvdNew Castle, DE 19720www.towerbiz.com (302) 395-1445
4 Rick Raphael15XPRESS COMPUTER SYSTEMS1246 Peachtree RunMagnolia, DE 19962www.xpressinc.com (302) 697-3112
1 Rocky Patel (President)
2001
16CRISPIN ASSOCIATES CONSULTING28 Riva Ridge LnBear, DE 19701www.solomondeveloper.com (302) 832-8156
1 Keith Crispin (Proprietor)
1995
Source: Researched by: DBT and DataJoe. Some companies may have been omitted due to lack of information, deadline restrictions, or space constrictions.
Editorial Estimate = Information derived from: publicly available sources, observation, news sources, and general market knowledge of the editorial team.
Don’t be left off the LISTWe are finalizing these business categories for publication in Delaware Business Times. Here’s how to complete an online survey to make sure your company is listed.
Go to:DelawareBusinessTimes.com/Lists and find the list for your category. If you’re not included click the DATA button at the top of the list and fill out the information.
ISSUE LIST DEADLINE TO RETURN SURVEY
5/10 Colleges & Universities 4/26
5/24 Restaurant Groups/Breweries 5/10
6/7 Nonprofits 5/24
6/21 Financial Advisors 6/10
▲
Real Estate Firms - CommercialRanked by No. DE Employees
Rank Company Phone / Fax No. DE Employees Year Founded
1JACK LINGO246 Rehoboth Ave.Rehoboth Beach, DE 19971www.jacklingo.com
(302) 227-3883(302) 227-4686 150 Bill Lingo (Vice President, Broker of Record) 1974
2NAI EMORY HILL REAL ESTATE10 Corporate Cir, Ste 100New Castle, DE 19720www.emoryhill.com
(302) 322-9500(302) 322-9518 65 Carmen J. Facciolo (General Partner) 1981
3BUCCINI/POLLIN GROUP322 A Street, Suite 300Wilmington, DE 19801www.bpgroup.net
(302) 691-2100(302) 691-2099 361
Christopher F Buccini (Co-President)Robert E Buccini (Co-President)David B Pollin (Co-President) Co-Presidents
1993
4MCCONNELL JOHNSON REAL ESTATE COMPANY, LLC1201 N Market St, Ste 400Wilmington, DE 19801www.mcconnelljohnson.com
(302) 421-2000(302) 428-0723 28
Paul McConnell (Partner)Scott Johnson (Partner)Shona Grace (Chief Operating Officer)
2000
5HARVEY, HANNA & ASSOCIATES, INC.405 E. Marsh LaneNewport, DE 19804www.harveyhanna.com
(302) 323-9300(302) 683-9306 25 Thomas J. Hanna (Vice President & COO)
E.Thomas Harvey, III (President) 1997
6PATTERSON-WOODS COMMERCIAL PROPERTIES/CORFAC INTERNATIONAL3801 Kennett Pike, Ste D100Wilmington, DE 19807www.pattersonwoods.com
(302) 622-3500(302) 622-3535 17 Duncan Patterson (President) 1997
7DSM REAL ESTATE COMMERCIAL SERVICES910 S. Chapel St., Suite 100Newark, DE 19713www.dsmre.com
(302) 283-1800 16 Tripp Way (Managing Partner)
8CBRE1007 N. Orange Street, Suite 100Wilmington, DE 19801www.cbre.us
(302) 661-6700(302) 661-6792 7 Maureen Anastasi 1989
9SB REAL ESTATE3501 Silverside Road, Suite 210Wilmington, DE 19810www.sbrealty.com
(302) 543-7707(302) 543-7707 5 Paul Bryant (Co-founders)
Jeff Shahan 2012
10JONES LANG LASALLE222 Delaware Ave., Suite 1610Wilmington, DE 19801www.jll.com
(302) 356-2858 51 Blaise Fletcher
11DEATON MCCUE AND COMPANY62 Rockford Rd., Ste. 10Wilmington, DE 19806www.deatonmccue.com
(302) 658-7789(302) 658-7784 51 Sean McCue 1990
12BELLEVUE REALTY COMPANY909 Delaware AveWilmington, DE 19806www.bellevuerealty.com
(302) 655-1818(302) 655-7738 51 Marvin Sachs 1980
13NEWMARK GRUBB KNIGHT FRANK800 Delaware Ave., Suite 802Wilmington, DE 19801www.ngkf.com
(302) 655-0600(302) 655-0603 4 Wills Elliman (Senior Managing Director) 1929
14JACKSON CROSS PARTNERS, LLC.300 N Market StreetWilmington, DE 19801www.jacksoncross.com
(302) 792-1301(302) 792-1310 1 Pete Davisson, CCIM, SIOR (Founding Partner) 2003
1 Editorial EstimateSource: Researched by: Delaware Business Times. Some companies may have been omitted due to lack of information, deadline restrictions, or space constrictions.Editorial Estimate = Information derived from: publicly available sources, observation, news sources, and general market knowledge of the editorial team.
24 APRIL 26, 2016 www.DelawareBusinessTimes.comDELAWARE BUSINESS TIMES
PEOPLE ON THE MOVECommunity Service Building hires Bohn as facility director
Jaime Bowman Bohn was hired as facility director of The Community Service Building Corp.
Bohn earned a management degree from the University of Delaware and is a certified facility manager. She previously worked as operations director for the Grand Opera House for 17 years.
The Community Service Building is the country’s largest multi-tenant nonprofit center and home to 78 nonprofit tenants.
We would like to thank all of our sponsors for another successful year for the Delaware Economic Summit!
W I L M I N G T O N
Hagley taps Eisenbrey as new marketing managerJessica Eisenbrey is the new marketing manager at Hagley Museum and Library. As part of Hagley’s audience-engagement division, she is responsible for media relations, public relations, social media, advertising and brand management.
Eisenbrey previously worked as manager of media relations for the Delaware Office of Management and Budget. Her primary responsibilities were media, constituent relations and internal communications.
She holds a bachelor’s degree in English from the University of Delaware and is currently working on a master’s degree in public administration from Wilmington University.
Gallo Realty adds Parker to Lewes rental departmentMicah Parker was hired by Berkshire Hathaway HomeServices Gallo Realty to join its Lewes rental department.
Prior to moving to Delaware, he worked as a licensed real estate agent in West Virginia.
Pizzuto advances at M&T BankEvan Pizzuto was appointed assistant vice president and senior branch manager for the M&T Bank’s Wilmington branch. Pizzuto formerly served as branch manager for the bank’s Pike Creek branch.
He will manage the team at the bank’s branch at Tenth and Market streets in Wilmington and lead outreach to retail and commercial customers, providing traditional financial services and customized product solutions.
Pizzuto holds a bachelor of science in business administration.
Bankruptcy attorney joins American Bar FoundationPauline K. Morgan, a partner at Young Conaway Stargatt & Taylor LLP, has become a fellow of the American Bar Foundation, an organization dedicated to advancing justice through rigorous research on the law, legal processes, and the law’s impact on society.
Morgan concentrates her practice on bankruptcy law and has served as chair of the firm’s bankruptcy section and as a member of the firm’s management committee since 2011.
Fairway Mortgage earns industry honorFairway Independent Mortgage Corp., a national full-service banker, has been ranked No. 10 on the list of “Top 100 Mortgage Companies in America” by Mortgage Executive Magazine for generating $11 billion worth of mortgage volume. Fairway has a local branch and a strong presence throughout Delaware.
“At Fairway, our goal is to provide customers with service, speed and satisfaction,” says Kimberly Grim, vice president of Fairway’s Delaware branch. “We hope this ranking is proof that we are fulfilling that goal.”
This list consists of the nation’s top 100 mortgage companies and publicly traded banks, and is based on their total yearly mortgage volume.
DELAWARE BUSINESS TIMES APRIL 26, 2016 25www.DelawareBusinessTimes.com
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State compensation exceeds private sector’s, study shows
A new study shows average total compensation of state employees — excluding teachers and law enforcement — substantially exceeds compensation for workers in Delaware’s private sector who have similar levels of education and experience.
A Delaware Public Policy Institute study found state employees earn about 12.4 percent less than similarly qualified private-sector workers but they receive benefits packages 53 percent to 102 percent more generous than most private sector workers. Health coverage, retiree health plans and pension benefits are substantially more generous for state employees.
The average Delaware state government employee in the sample earned an annual salary of $48,967 plus annual benefits received in that year or accrued toward retirement of $36,563 and $48,230, depending upon the method used to value the accrual of future pension benefits.
A private sector employee with similar qualifications would receive about $55,039 in annual salary, but only about $23,775 in additional benefits.
The study found the total salary and benefits package for state employees ranged from $88,530 to $97,197 on average — much higher than the comparable private employee package of about $78,814.
The report specifically excludes local government employees, public school teachers and public safety workers,
since those workers have different salaries and may participate in different health and pension plans.
It projected Delaware could save between $260 million and $720 million if it were to compensate employees at market rates.
“Pensions, health coverage and retiree health care programs are the three key elements of compensation that are most generous relative to the private sector; they are also growing rapidly.” said Bill Osborne, interim president of the institute.
The study was conducted by Andrew G. Biggs, who studies public-sector pay and benefits at the American Enterprise Institute.
Decisions related to salary and benefit plans for state employees are under discussion in the Delaware General Assembly. Two recent studies — the Delaware Expenditure Review Committee established by Gov. Jack Markell and the Delaware Business Roundtable’s Study of State Finances — identified personnel costs as a major cost driver of the state budget.
Both studies noted that the significant areas of expenditure growth associated with personnel are in employee health care, pension and retiree health care.
The complete report, titled “Unequal Pay: Comparing State & Private Sector Employee Compensation in Delaware,” is available at http://www.dscc.com/affiliates/delaware-public-policy-institute.aspx.
Cape May-Lewes Ferry awarded $6M to update two old vessels
Lewes Ferry (CMLF) officials announced that the Federal Transit Administration, through the Passenger Ferry Grant Program, has awarded the Delaware Bay ferry service a $6 million grant to help repower and retrofit the MV New Jersey and MV Cape Henlopen.
The MV Delaware was the first vessel to undergo this repowering process and is expected to return to Cape May next month.
The Federal Transit Administration’s (FTA) Passenger Ferry Grant program resources are awarded based on factors such as the age and condition of existing ferry boats, terminals and related infrastructure; benefits to riders, such as increased reliability; project readiness; and connectivity to other modes of transportation.
The Ferry expects to save approximately $130,000 per year in maintenance costs
associated with old engines. In May, the MV Delaware will return
to active service with new engines following a five-month repowering at Caddell’s Drydock and Repair Co. in Staten Island, N.Y. This initial repowering project was aided by a $975,000 Diesel Emission Reduction Act grant from the U.S Environmental Protection Agency. A welcome-home ceremony for the MV Delaware is planned in Cape May for May 31, and in Lewes on a date yet to be selected.
The Cape May-Lewes Ferry is owned and operated by the Delaware River and Bay Authority, a bi-state governmental agency created by Compact in 1962. In 2014, the ferry service, which connects Victorian Cape May, N.J., and historic Lewes, Del., transported approximately 275,000 vehicles and nearly 1 million passengers.
26 APRIL 26, 2016 www.DelawareBusinessTimes.comDELAWARE BUSINESS TIMES
smartboardCOMMUNITY PARTNER | KUDOS | NOW OPEN | BIZ PIC
QUICK TAKES TO SHARE
WITH COLLEAGUES
(SmartBoard is compiled by Delaware Business Times staff. If you have a comment, or suggestion for contribution to SmartBoard, send it to [email protected])
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now open Brazilian Restaurant
Gaucho Jesse Jones, armed with a skewer of bacon-wrapped filet of beef, prepares to serve patrons at the new 300-seat Churrascaria Saudades in Newark Shopping Center. At the Brazilian steakhouse, which opened April 15, gauchos travel table-to-table slicing off thin pieces of slow-grilled meat.
community partner Sallie Mae
Recipients, from left: Kendal Cooney, 17, of Camden, Mich., Bryana Blanco, 18, of Pembroke Pines, Fla., Quinton Lopez, 17, of Canoga Park, Calif., and Kayla Pinzur, 17, of Brewster, N.Y.
Four high school students from across the country traveled to Newark, as finalists for a new scholarship from Sallie Mae. They all ended up walking away with $25,000 as recipients of the company’s inaugural Bridging the Dream Scholarship. Sallie Mae Chairman and CEO Raymond J. Quinlan made the surprise announcement at a ceremony in front of the students’ families, friends, supporters, and more than 500 Sallie Mae employees, who played an integral role in making the dream of college a reality for these deserving students.
The recipients were selected after the company asked 20,000 high school counselors from around the country to nominate students who exemplify excellence both inside and outside the classroom, have overcome obstacles, and have a desire and dedication to make college happen.
Earlier this year, Sallie Mae employees around the country were introduced to the finalists’ personal stories and circumstances and — inspired by what they learned about each deserving student — organized a host of fund-raising events to support the scholarship. In just three months, Sallie Mae employees raised $50,661, which was supplemented by the company to reach a grand total of $100,000 for the Bridging the Dream Scholarship.
“Our mission is to make the dream of higher education a reality, and — as you might conclude from the extraordinary involvement of our employees in making this scholarship a reality — all of us at Sallie Mae are deeply committed to helping students and their families reach their potential,” said Raymond J. Quinlan, chairman and CEO, Sallie Mae.
biz pic AB Group Packaging
Her Excellency Anne Anderson, Irish Ambassador to the U.S., joined Delaware state officials and AB Group Packaging Inc. founder and CEO Dermot Brady to celebrate the company’s official grand opening. AB Group Packaging, an established 30-year-old paper bag and flexible packaging producer with plants in Ireland, Spain and the United Kingdom, opened its first U.S. plant in Newark and will add 87 new full-time jobs in Delaware by 2017. Pictured, from left: Rep. Helene Keeley (behind Markell), Gov. Jack Markell, Ambassador Anderson, Dermot Brady, his wife Jackie, Delaware Economic Development Office Director Bernice Whaley, U.S. Sen. Chris Coons, and Rep. Mike Ramone.
kudos Great Dames
Great Dames Remarkable Ideas II Pitch Event narrowed the field of 36 submissions to five final contestants. The winner will be announced May 9. Finalists include: Patricia A. Hayes, CEO/Founder of The Weston Commercial Group, Inc.; Reyna Guy and Melissa Benbow of the Awakened Kitchen; Kathleen McCarthy of The Birth Center: Holistic Women’s Healthcare LLC; Dr. Kimberly Nalda of Rekindle Family Medicine; and pictured above, Rachel Markowitz, who shared her concept, “Changing the Cancer Conversation.”
DELAWARE BUSINESS TIMES APRIL 26, 2016 27www.DelawareBusinessTimes.com
MARKET WATCHA sampling of what’s for sale in the First State
readers’guide
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Residential potential over Market Street shopLocation: 716 N. Market St., Wilmington
Asking price: $529,000
Size: 6,420 square feet
Price per square foot: $82.40
Setting: Three-story building is located in the Market Street retail corridor, within walking distance of the Queen, the Grand Opera House, DCAD and downtown offices and government buildings.
Features: The first floor and second-floor mezzanine are leased to Collars & Cuffs, a longtime tenant that will remain in place. The balance of the second floor and the entire third floor are vacant and could be developed as apartments, as the site is near many new apartment offerings and planned residential projects.
Contact: Jon Hickey at NAI Emory Hill at (302) 322-9500.
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Millennials lack savings for home down payment
WASHINGTON (AP) — Short of savings and burdened by debt, America’s millennials are struggling to afford their first homes in the face of sharply higher prices in many of the most desirable cities.
Surveys show that most Americans under 35 lack adequate savings for down payments. The result is that many will likely be forced to delay home ownership and to absorb significant debt loads if they do eventually buy.
Steadily rising home values in recent years have eclipsed pay increases, making it especially difficult to buy in major growth areas for jobs, such as San Francisco, Denver and Seattle.
Nationally, 37 percent of millennial renters have saved nothing at all for a down payment, according to a survey of 30,000 renters being released Wednesday by Apartment List, a company specializing in rental home searches. At the same time, 79 percent of millennial renters say they aspire to own a home, illustrating a troublesome gap between expectations and financial realities.
Among larger metro areas, millennial renters who are saving have put aside an average of just $5,830. This marks less than one-fifth the savings needed for the typical 20 percent down payment on a starter home costing $175,000. The lack
of savings raises doubts about whether the under-35 crowd will also delay marriage and children, said Andrew Woo, a data scientist at Apartment List.
One possibility— already evident in some markets— is that first-time buyers are making smaller down payments and paying mortgage insurance or slightly higher interest rates on mortgages. Millennials not only entered a job market still healing from the downturn but arrived with high student debt burdens, with averages approaching $30,000. Fifty-three percent of homebuyers under 35 last year said that student loans had delayed their purchases, according to a survey released last month by the National Association of Realtors.
Based of home prices, many millennials won’t be able to buy homes in the next five years with their accumulated savings. Assuming a 20 percent down payment, it would take 20.5 years in San Francisco, 11.4 years in Denver, 8.2 years in Seattle and seven years in the Boston area.
Not all areas were so out of reach. In such metro areas as Philadelphia, St. Louis and Cincinnati, the required savings for those who have put aside money would take less than two years. n
DELAWARE BUSINESS TIMES APRIL 26, 2016 28www.DelawareBusinessTimes.com
With a $48,824 Energize Delaware low interest loan combined with a $12,206 USDA REAP (Rural Energy for America Program) grant, the Dover Par 3 Golf Center & Driving Range installed a solar array that will reduce its monthly energy usage by $2,280, for a projected lifetime savings of $57,000. CNC Solar, Inc. of Rehoboth Beach, DE managed the project installation.
This solar installation demonstrates that businesses of all sizes can take advantage of Energize Delaware’s direct Low Interest Loan Program. Our loans are structured so that the immediate reduction in energy bills more than offsets the cost of the payments including financing. In other words, they are cash positive from day one.
The Energize Delaware Revolving Loan Fund provides low interest loans to businesses, non-profits, school districts and local governments to reduce their energy bills by improving the efficiency of their operations.
Energy Efficiency Loans that are Cash Positive from Day One
Working with the Sustainable Energy Utility and CNC Solar was a pleasure. They made the entire process very simple from the loan application through installation. CNC kept every promise they made - they had a high degree of integrity. We’ve already realized a tremendous savings in our energy bills. I highly recommend this program to any business who wants to save real money on their utility bills.
- Rick Jones, Dover Par 3 Golf Center
Call (302) 883-3048 today to get started on the path to savings!
EnergizeDelawareAn initiative of Delaware’s Sustainable Energy Utility
businesses • public sector • non-profit organizations • homeowners
Visit our website for more information: www.EnergizeDelaware.org
