Techno-Preneur Article (September 2003)

Zassi Medical Evolutions Hatches Innovation on Amelia Island

(Fernandina Beach, FL) Amelia Island, the northern-most barrier island on Florida's east coast, probably isn't the first place that comes to mind when you think of high-tech medical device manufacturing. In fact, the quaint island just north of Jacksonville is more commonly associated with its golf courses, beautiful miles of Atlantic beach, a picturesque downtown and the island's historic lighthouse.

Ironically, the quality of life that makes Amelia Island a hot spot for vacationers and wealthy retirees is exactly what makes it an ideal location for high-tech business... just ask 34-year old Zassi Medical Evolutions (www.zassimedical.com) founder Peter von Dyck. "As a recruitment tool, to bring additional workforce from all over the country and the world, this place in particular (Amelia Island) is a highly attractive area. I've had a real easy time asking people from places like Chicago if they'd like to move here and join a tech company. It's not a tall order -- the quality of life here is the real attraction."

von Dyck, who was born in Florida, but grew up in New Jersey, was excited to move back to Florida to launch Zassi Medical Evolutions in 1997. His company specializes in medical devices that aid patients with lower gastrointestinal disorders - an underserved market in the medical device arena. von Dyck grew up in a family that lived and breathed medical innovation -- his father founded New Jersey-based Biosearch Medical Products, Inc. (now owned by Hydromer, Inc.). When deciding on his own career path, Peter von Dyck was drawn to many aspects of the field that made medical innovation a family practice. "Going home with the CEO, I was fortunate to get another viewpoint at a very young age, because that's what was talked about at the dinner table. I got to see the high-level strategic thinking and I really enjoyed it. Combining technology and healthcare is so rewarding because there's nothing better than when you develop a new technology that can either save or improve lives. Combined with the potentially lucrative aspect attached to the technology, it's a rewarding kind of business in every way."

Starting a medical device company wasn't as simple as following the model he saw when he worked for Biosearch Medical Products. von Dyck had many of his own ideas about what a medical device company could be. "I had a different mindset and culture that I wanted to develop in the company, with a much bolder product profile. We really wanted to shake things up and build products that don't exist. We didn't want to do anything incremental, which is what 99% of companies do. So I needed to build a different kind of company than my father built. Over the years, I just kept that dream alive."

The idea that ultimately led to the founding of Zassi Medical Evolutions was von Dyck's 1993 invention called the Continent Ostomy Port System. With the patent secured, von Dyck reconnected with some previous contacts in the field. Ultimately, an Amelia Island medical device distributor he had recruited for his father's company stepped up to the plate to support von Dyck's new venture. According to von Dyck, "I planted seeds by saying to many folks I was working with, in and around the industry, that I was going to do this some day (start my own company). They said, 'If you ever come up with something big, we'll back you.'" But von Dyck wasn't ready to venture out on his own in 1993. He still needed more experience and a better understanding of how he would model the company. By 1997, he felt ready. "I checked the patents in the meantime, built a business plan, and made some global connections," explained von Dyck. "Even after four years of not working with them (the distribution company), on a handshake they said, 'Okay, let's do this,' and began putting in what amounted to $400,000 to get the company going." Later stage capital from private investors added another $6 million, and by March 2003, Zassi Medical Solutions established its first revenue stream by selling the Zassi Bowel Management System, a catheter system designed to safely divert potentially harmful and contaminated gastrointestinal waste from bedridden and immobilized patients.

Now, with Zassi Medical Evolutions established as a going concern and the promise for considerable growth ahead of it, von Dyck can look to the future. His original invention, the Continent Ostomy Port System has been licensed by ConvaTec, a division of Bristol-Myers Squibb, to begin sales in 2005 or 2006. More development in gastrointestinal devices is also under way. When asked about where he wants the company to be in five years, von Dyck responded, "I think we're going to be a real powerhouse and we're going to leave a big footprint on the landscape of the medical device marketplace. We're already working on two multi-billion dollar markets. These are markets with real breakthrough potential. These marketplaces are highly desperate for new inventions and innovations that can help men, women and children lead better lives or even save their lives. In terms of revenues, I think we're going to be significantly sized in five years -- $50 to $100 million in revenue and an employee pool that's 10 to 20 times bigger than it is today [today Zassi has 12 employees]. It's hard to predict exactly what will happen five years from now, but I think we're going to be a significant source of innovation. Not just in terms of importing technologies, but in innovating new ones right here."

What also makes von Dyck's company and his ideas so special is that he isn't strictly focused on growing his own part of the American dream. Peter von Dyck, along with Ray Chauncey, founded the BETA-1 Business and Emerging Technology Accelerator (www.beta-1.com) to help other tech businesses get their start in Northeast Florida. Based on Amelia Island (and housing Zassi as one of its tenants), the accelerator provides guidance for would-be entrepreneurs to transition great ideas into great businesses. When asked why he feels so committed to the accelerator concept, von Dyck responded, "Part one was need. I needed that kind of infrastructure and it didn't exist here. There are lots of incubators that have a high-speed line and a small office. But they don't have the wet labs, dry labs and pilot manufacturing space. And they don't have a lot of funds and capital. So I said, that's what we need to build here if we really want to light this candle and turn this into a technolopolis of some kind. If you really want to attract the top entrepreneurs and top ideas, you've got to have innovation, capital and the infrastructure that can house it, support it and allow it to thrive." von Dyck sees the accelerator as a means of bringing more tech opportunities to Northeast Florida. "I'm a big supporter of technology jobs for the same reasons everybody else is -- the high wages, the fact that they're pretty much clean businesses, they bring a lot of prestige and they make a city proud. I want that for where I want to live. It's important for me because I want to stay here. I think Florida needs to diversify and I want to help it get there."

For more information on Zassi Medical Evolutions and/or the BETA-1 Business and Emerging Technology Accelerator, be sure to visit their Websites at: www.zassimedical.com and www.beta-1.com

[This article was prepared and edited from an interview with Peter von Dyck on August 29th. Enterprise Florida thanks Mr. von Dyck for his time and insight].

Chauncey volunteer of year

Ray Chauncey, co-founder, president and CEO of BETA-1 on Amelia Island, has been named the 2003 Richard L. McLaughlin Economic Development Volunteer of the Year by Florida Economic Development Council (FEDC) District 4 members.

Chauncey was selected for his involvement in economic development during the past 10 years, including participation in the conception, start-up and development of the Nassau County Economic Development Board, according to a development council press release.

Chauncey has served on the Nassau County board since January 1995, including a stint as chairman from October 2000 to September 2001, and as a member of the Executive Committee from 1998 to 2002.

"We are delighted that Ray's contributions and years of service to the region have been recognized on a statewide level," FEDC district Director Cathy Disbrow-Courson said. "This is the first Richard McLaughlin District 4 award winner from outside of Duval County ..."

BETA-1, or Business and Emerging Technology Accelerator, is a privately funded emerging technology accelerator that helps entrepreneurial innovators translate their globally marketable concepts into commercially viable ventures. BETA-1 equips emerging technology innovators with critical entrepreneurial resources, including an appropriate operating environment, 21st century technical/communications services, mentoring and access to seed and early-stage capital.

The FEDC is a not-for-profit statewide organization of people working to advance economic growth in Florida. The association presents the awards annually to recognize outstanding volunteer achievement in furthering economic development in a community and throughout Florida. The Richard L. McLaughlin Economic Development Volunteer of the Year award is named in honor of Richard L. McLaughlin, who firmly believed in the significance of volunteer contributions to the achievement of economic development goals for the state. McLaughlin was the second president of FEDC, in 1965.

northeast region

Broadband, Broad Shoulders

In Northeast Florida, traditional business and the digital economy blend to create a dynamic climate for growth.

Years ago, Northeast Florida was best known for its shipyard muscle and Jacksonville’s signature image: a neon Maxwell House Coffee sign, with the huge cup aglow above downtown.

Now, from downtown Jacksonville’s bustling office towers to Putnam County’s manufacturing centers, Northeast Florida presents a rich business tapestry of information technology, healthcare, heavy industry, banking, insurance and other segments.

Also called the First Coast, the six-county area anchored by Jacksonville has nearly 1.2 million people (median age: 35), about 575,000 jobs, and a broadband-and-broad-shoulders dynamic that encourages rapid business growth.

A high-tech hot spot, Jacksonville ranks first in Florida in both e-commerce usage and in bandwidth per 1,000 population.

“Northeast Florida is just becoming discovered globally,” says Ray Chauncey, president and chief executive of BETA-1 Management Inc., which is building a private, for-profit business incubator in Nassau County.

BETA-1’s 30,000-square-foot facility will mix office, manufacturing and laboratory space, and will have a scorching fast 100 megabit-per-second Internet connection to help launch new economy firms.

Navy Influence
Jacksonville is widely known as a “Navy town” for good reason. With nearly 57,000 active personnel and a payroll of $1.5 billion, the region’s four Navy bases pump about $6 billion per year into the area economy.

“There are a lot of highly trained Navy personnel who have retired or completed their tours of duty,” says Mark Butterworth, operations assistant vice president for BellSouth Wholesale Services. “That has been a large percentage of our hiring.”

Butterworth is in charge of BellSouth’s new $35 million tech support and customer service center in Clay County, southwest of Jacksonville. When built out over coming years, the center will employ 1,000 people at salaries of $29,000-$47,000.

The strong workforce was also a major lure for Wal-Mart Inc. The retailer is building an 800,000-square-foot distribution center west of Jacksonville in Baker County that will employ 600 people.

“The quality workforce in Baker County really made the difference,” says John Hay, real estate manager for Wal-Mart.

Strong Education
The region boasts a first-rate education system that includes the public University of North Florida in Jacksonville, two community colleges and private colleges.

The emphasis is on high tech. Florida Community College at Jacksonville will open its $24 million Advanced Technology Center at its downtown campus in early 2002, for instance.

Graduates often find jobs with corporations in downtown Jacksonville, where many big projects are under construction.

A $190 million courthouse and a $95 million library are funded by the $2.2 billion to be generated by the Better Jacksonville Plan. Voters passed the plan's half-cent sales tax, which was effective in January 2001.

Recreational attractions abound in Northeast Florida. Ponte Vedra Beach on the Atlantic Ocean boasts 20 outstanding miles of beach, upscale resorts and excellent golf; The Players Championship at Sawgrass PGA event is held there in March.

Serene Amelia Island, the northernmost barrier island on Florida’s coast, offers 13 miles of beaches, a lush natural setting and live oaks draped in Spanish moss. Amelia was named “Queen of the Summer Resorts” in 1896 — and a century later remains a beautiful Florida destination.

In St. Augustine, World Golf Village’s amenities caught the eye of actor Bill Murray. The star of the legendary “Caddyshack” movie opened a Murray Bros. Caddyshack restaurant at World Golf Village in 2001.

A very noteworthy sports event is on tap for February 2005, when Super Bowl XXXIX will be played at Alltel Stadium. — Catherine Deans

4:21 PM EDT Monday

Zassi lands international approvals, governor's award

Devan Stuart

Zassi Medical Evolutions Inc. is among 13 Florida companies to receive Gov. Jeb Bush's inaugural Business Diversification Award.

Developed by Enterprise Florida, the awards program recognizes companies' efforts to diversify the state's economy, creating high-wage jobs and investing in communities. Zassi, which designs, manufactures and markets medical devices, landed the Mid-Market Entrepreneurship Award.

"We're proud to be recognized for our business model," said Zassi President and CEO Peter von Dyck. "We serve as an engine to import new, viable medical technologies from many parts of the world and bring them here to Florida for development and job creation."

Zassi, which recently launched a new product that originally was invented in Seoul, South Korea, is a founding company in Amelia Island's Business and Emerging Technology Accelerator. Known as BETA-1, the center helps create, nurture and finance technology ventures in Northeast Florida.

Zassi recently received the Conformite Europeene (CE) Marketing Certificate from the British Standards Institution for its new gastrointestinal product, the Zassi Bowel Management System. The CE mark is similar to the U.S. Food & Drug Administration approval and allows Zassi to market the product throughout Europe, Australia and New Zealand.

The company also has received approval of its health Canada license application for the BMS product. Canada imports more than 75 percent of its medical device technologies and represents a market of more than $3 billion.

Zassi contributes regularly to Wolfson Children's Hospital in Jacksonville, University of Florida College of Health in Gainesville and Ronald McDonald House.

The inaugural awards ceremony is slated for Sept. 18 during Florida's Industry Appreciation Week festivities in Tallahassee.

Enterprise Florida is a public/private entity in Orlando that serves as the state's official economic development agency.

- APRIL 2003 ISSUE

Northeast Region
Military Benefits

By Bob Snell

1. Baker	2. Nassau	3. Duval	4. Clay	5. Putnam
6. St. Johns

Military Benefits

Area leaders have traditionally snapped to attention whenever the U.S. military comes calling. But as recently as two years ago, some were quietly grumbling about the dwindling economic importance of the region’s military-industrial complex.

• St. Johns is the only northeast county to have a higher per capita income than the state average: $43,671 vs. $30,654.

The federal Base Realignment and Closure Commission, which boarded up west Jacksonville’s Cecil Field Naval Air Station in the late 1990s, was poised to claim one of the area’s four remaining naval installations. And the Navy’s low wages were increasingly viewed as a drag on an otherwise booming local economy.

Then came Sept. 11 and the buildup for war with Iraq that has re-established the area’s large military presence as one of its greatest strengths. Bases are secure, sailors are better paid and the military has pledged close to $700 million in support contracts to area firms for the coming year.

“Our annual economic impact is in excess of $6 billion,” says Capt. Hardy Kircher, commander, Navy Region Southeast Chief of Staff. “The economic impact of the maintenance of the USS John F. Kennedy (at Naval Station Mayport) this year alone will be approximately $600 million.”

“Northeast Florida is vital to the nation’s military operations,” says U.S. Rep. Ander Crenshaw, R-Jacksonville, a member of the House Appropriations Committee. “We have the only deep-water port (Naval Station Mayport) with immediate access to the Atlantic Ocean. The concentration and variety of military assets in northeast Florida make it key to the national security plan, and I am working to see that represented in the budgets Congress adopts.”

Meanwhile, economic developers are hoping to keep the region growing by building on Jacksonville’s ongoing urban renewal and improving land-use planning in rural counties. Education — Duval County has one of the worst-performing school districts in the state — will be a bigger challenge.

JACKSONVILLE & Duval County
KEY TREND: For years the mantra for downtown revitalization was “build it (housing), and they will come.” The moment of truth has arrived. With dozens of new rental and condo units poised to flood the market, developers hope the demand remains in what many fear is a softening market.

PERSON TO WATCH: The hiring of Neil Armingeon as the new St. Johns River riverkeeper signals a shift in tactics — from conciliation to litigation — by those looking to clean up the river. Armingeon replaced Mike Hollingsworth, whose emphasis on public education and negotiation was reportedly at odds with members of the board who want to get tough on polluters.

BUSINESS TO WATCH: CSX Corp. has announced it will shift its corporate headquarters from Richmond, Va., to Jacksonville, where most of its employees are based. CSX becomes only the second Fortune 500 company to call the city home. The other is Winn-Dixie.

ST. AUGUSTINE
KEY TREND: After a two-year ban, people are once again free to paint, parade and manufacture palm-frond hats along the historic St. George Street pedestrian mall. The vote by a new majority on the city commission portends a souring of relations with local merchants who fought for years to rid the street of itinerant artists and minstrels.

PERSON TO WATCH: Street entertainment is back, and a proposed $4.4-million downtown parking garage has been scrapped — and St. Augustine Mayor George Gardner’s term has just begun. The mayor has announced an aggressive agenda that includes organizing neighborhood councils to give residents greater input into city affairs.

St. Johns County
BUSINESS TO WATCH: Ring Power Corp.’s dance with county officials recently ended with the company getting an incentives package potentially worth $1.6 million — the first of its kind in county history. Officials hope the heavy equipment retailer’s new 380,000-sq.-ft. headquarters will jump-start development in the 1,000-acre World Commerce Center near World Golf Village.

PERSON TO WATCH: Rodolfo Engmann is a principal with The Knowledge Guild, an innovative, Ponte Vedra Beach-based consulting firm that specializes in executive leadership, finance, marketing and strategic planning. While the company has a growing list of for-profit clients, its work building the capacity of area nonprofits is gaining widespread recognition.

Nassau County
PERSON TO WATCH: Admirers say Fernandina Beach Mayor Joe Gerrity has brought a much-needed business perspective to the city commission, as well as a desire to reach consensus on issues that have long divided the city. He’s credited with trying to bridge the gap between growth and no-growth factions and foster better relations with county officials.

BUSINESS TO WATCH: BETA-1, a for-profit business incubator, plans to open a 30,000-sq.-ft. facility this summer that will include manufacturing, laboratory and office space. The 2-year-old Amelia Island company works primarily with emerging medical device companies, offering management guidance and seed capital. The new facility will have room for 10 to 16 startups.

Clay County
PERSON TO WATCH: Kellie Jo Kilberg is the county’s new economic development czar, replacing Orien Pass, who retired after 13 years as executive director of the Economic Development Authority, the Economic Development Council and the chamber of commerce. Clay County saw unprecedented growth during Pass’ reign, a pace Kilberg will be challenged to maintain during more difficult economic times.

BUSINESSES TO WATCH: While development grabs headlines, the county is quietly growing into a hub for healthcare and related services thanks largely to industry giant HCA. In addition to operating the county’s largest private sector employer, Orange Park Medical Center, the company also runs HCA Patient Account Services, a back-office firm that is Clay’s second-largest employer with close to 600 workers.

Putnam county
BUSINESS TO WATCH: Sykes Enterprises’ Palatka office continues to grow into one of the county’s largest employers. Though open just 18 months, the Tampa-based customer service giant recently hired more than 100 workers and is nearing 500 employees.

PERSON TO WATCH: Veteran Putnam Chamber of Commerce President Wes Larson is about to see one of his longtime dreams come true. Construction should begin soon on a 50,000-sq.-ft. “magnet” building in the county’s nascent business park adjacent to Kay Larkin Airport. Larson is looking for a manufacturer or product assembly company to lease the building, set to open early next year.

Baker County
KEY TREND: Northeast Florida’s least populated county is primed for a residential housing boom. Following International Paper’s sale of 47,000 acres of timberland last year, more than a dozen developers have some 400 units under construction. Soon to come: Baker’s first planned unit development, 126-acre Cypress Pointe in Macclenny.

Growth by Association

by Judy A. Lyerla

An Uncertain Economy Brings Amelia Island’s Businesses Together

Let me begin the Amelia Islander Magazine’s Outlook 2003 issue by saying that -- after talking to a lot of people who have their ears to the ground -- the outlook for this year is not as bad as some may think, considering the state of the national economy.

Many significant issues, however, do confront our island community in 2003. Development, both residential and commercial, particularly along the “A1A Corridor” between I-95 in Yulee and Fernandina Beach remains contentious. Waterfront development, including whether or not the community wants cruise ships to make the downtown marina a port of call (our current port is the deepest in the southern Atlantic). Housing prices. Traffic, aesthetics, the environment. As a growing community, we are faced with these issues and more, all at once, in uncertain economic times.

One way to face these issues is by banding together. Sometimes, when we lean on each other, we can accomplish things that may have been impossible to do alone. That way, every benefits. Several local groups are doing just that, joining forces to help themselves—and, by extension, our entire community—in the coming year.

The Biggest Kid on the Block

The Amelia Island-Fernandina Beach-Yulee Chamber of Commerce (the Chamber) calls itself “the voice of the business community,” says Regina Duncan, its president. The Chamber is the largest local group of its kind, and its goal is to be proactive in looking at the issues that affect the business—and therefore the entire—community. “Members seem to want to pull together and get things done. People have issues, and they see the Chamber as a catalyst for getting some assistance in solving them.”

According to Vicki Beaudry, outgoing Chair, the Chamber accomplished several important goals in 2002. “This year has been a successful one for the Chamber,” she said. “Our main success for the year has been the successful expansion of the Chamber to two locations (downtown and at Gateway to Amelia) to better serve our membership.” The Chamber produced a cruise ship feasibility study. At election time, they sponsored well-attended and televised “candidates’ forums,” giving hopefuls for county and city commissioner spots a place to speak to the public. They worked on offering health insurance to member businesses through the state Chamber of Commerce.

The Chamber has two tasks it works on every day, according to Duncan. The first task is to promote member businesses through its Visitor’s Guide, public brochure racks inside the Chamber, and providing referrals to people who telephone and e-mail the Chamber, “something that is growing every day.”

The second task of the Chamber is to help members reduce their cost of doing business. In 2002, for example, the Chamber was active in seeking alternative health insurance for its small business members. It also assisted with finding a solution to the windstorm insurance issue that especially affected our local bed and breakfasts.

The Chamber has strong plans for 2003. Among them include reestablishing some educational programs for member businesses. Already scheduled is the “Drug-Free Workplace” program, successful completion of which gives the attending business a 5% reduction in Worker’s Compensation insurance costs. In the works is an employee retention program; others will be determined according to what the business community needs.

Foy Malloy, publisher of the News-Leader, is the incoming Chamber chair. The Chamber’s focus for 2003 will be on member services. “Foy has stated,” according to Vicki Beaudry, “that this is the primary focus: to survey and assess what our members need and want.” Plans now call for doing monthly surveys of the membership in order to stay abreast of current member needs.

Not Just the Chamber

Perhaps motivated in part by the success of the Chamber, other groups have formed, some formal, some not.

One of the oldest such groups is the Historic Fernandina Business Association (HFBA). According to new chair, Dottie Richards of the Hampton Inn and Suites, last year was a hugely successful year for the group. “One of the biggest and best changes we made in 2002 was changing our name (from the Centre Street Business Association),” she said. “Since then, we’ve more than doubled the number of business members.” HFBA’s primary intention is to bring improvements and customers to the downtown area.

In 2002, HFBA worked with the city and public works on the development of 6th-8th Streets downtown to maximize parking, worked with Parks & Recreation to improve downtown landscaping, placed a new billboard on A1A to promote downtown businesses, and joined the Chamber, among other things. Future plans include working to start 4th of July and Christmas parades downtown, supporting an “even more beautiful” waterfront, and enticing new members to join, because, says Richards, “we can accomplish even more with more members.” Richards is very optimistic about 2003.

Last year, a loosely formed association formed at the Main Beach area of Fernandina. The Main Beach Association’s initial interest, according to Jim DeMarco of Terrazza’s Restaurant, was to gather a group to focus on ways to create better parking for its local businesses. This goal grew into an idea for a shuttle between downtown and Main Beach, something that didn’t occur. Meetings, according to DeMarco, “kind of stopped recently due to the end of our season and economic issues,” but the group plans to get active again soon. Items on the agenda include continuing to work on better parking in the area, making the public more familiar with Main Beach, and working towards bringing the 4th of July fireworks back to Main Beach.

About six months ago, the 8th Street Partners Association formed. According to Becky Adams of Courtyard Florist, the group is open to anyone on or near 8th Street from Shave Bridge all the way into downtown—“anyone who has an interest in the traffic flow, appearance, and future development of the 8th Street corridor.”

While not an official association, Amelia Island Plantation (AIP) is a potent force on the south end of Amelia Island. Richard Goldman is Vice President of Marketing at AIP, and a new member of the Chamber board. As he sees it, it’s important to bring business to every part of the island. “Whenever times get tough,” he said, “it’s hard to hang together,” even though he saw enthusiasm for just that at a recent Chamber Business After Hours meeting. “There has been a lot of pain these last couple of months,” he continued, “but business people are hopeful and positive. The sense is that most of the pain is behind us and there is a great sense of optimism for the second quarter of 2003 and beyond.”

A soft economy and fear of hostilities have made advance bookings at AIP slower than usual in the first quarter of 2003, but after April, bookings are very strong. Of course, when bookings increase, so does local business traffic. Certainly the new Spa and Shops at AIP will benefit, but, according to Goldman, so will the rest of Amelia Island. “The more shopping offerings in an area, the more people will come to shop,” he said. “The pie gets bigger as we open more businesses. It’s not about splitting the money. More retail businesses create more money for every business.” Putting its own money where its mouth is, AIP has been running a shuttle service for people on the south end into downtown Fernandina Beach. In the first three quarters of 2002, the shuttle transported 6,000 people into the downtown area.

Also on the south end is Summer Beach. According to Marketing Manager Phil Cantanzaro, business at Summer Beach “couldn’t be better.” 2002 saw a sellout of Phases I and II of the Villas. “We put River Place on the market in May and sold 22 town houses on the marsh in a morning. These homes started at $819,900!” he said.

Summer Beach has not seen a softening of its market at all. Re-sales have maintained their prices, including six re-sales at the Carlton Dunes for $1.3 million and up.

In 2003, Summer Beach is launching a new development called The Preserve at Summer Beach. Cantanzaro believes it, too, will sell out rapidly.

Traffic Anyone?

In the December, 2002, general meeting of the Chamber, a plan of action was discussed for 2003. The first item on that list is watching the A1A Corridor. That’s a big issue for all of us, business owner or not.

A lot of construction on the corridor is already underway, according to Ken Willette, Executive Director of the Nassau County Economic Development Board (EDB). “Nassau County is now the wealthiest rural county in Florida (33 of the 67 counties in Florida are deemed rural, which means their population does not exceed 75,000),” he said. What’s even more exciting for us, he continued, “is that of the total 67 counties in Florida, Nassau has now moved up in economic ranking to eighth place.” These demographics will continue to interest commercial interests, he said.

Early 2003 will see the completion of Lowe’s and Florida Machine Works, a manufacturer at the Yulee International Tradeplex. Starting construction then will be the new Super Wal-Mart near Flora Parke. Lofton Square has been enlarged and pre-permitted for expansion.

Key to this expansion will be transportation. Many are concerned about the A1A corridor’s ability to handle all the development. To this end, the county has hired a consultant to put together an Areawide DRI Master Plan (a state permit to manage growth). “This is important,” said Willette, “because there is such opportunity for major land development. This plan would already have in place central points of access, service roads, etc., so that when developers come in, they will be given the plan instead of deciding individually how to arrange things.”

The Chamber, too, is watching the A1A Corridor. According to Duncan, “we are working with the city, county, and the Economic Development Board to make sure the development is accessible and aesthetically pleasing.”

Silicon Island

One thing everyone seems to agree with is the potential economic importance of a new business at Gateway to Amelia (located near the Shave Bridge). BETA-1, which stands for Business and Emerging Technology Accelerator-1, will open in a 3-story, 30,000 square feet facility in the early spring and devote itself to incubating emerging high-tech companies.

According to Ray Chancey, President and CEO, BETA-1 is already working with several high-tech companies, such as Zassi Medical, M D Innovators, Laser Telecomm and Connexsys. “We are looking at about eight other companies right now,” said Chauncey. “We can handle 10-16 companies at a time here.”

It’s an exciting concept. BETA-1 selects companies to nurture. These companies go through 18-24 months at the facility, then “graduate” into their own places of business. When they do, they go with financing in place, the technology they need, and a firm business plan. “We have seed capital and a network of investors,” he said. “Our goal is to help these companies become ‘bankable’—revenue and profit-generating on their own. What BETA-1 is doing will be good for the entire area.”

Willette of the EDB agrees. “BETA-1 at the Gateway is very significant for all of Nassau County,” he said.

Also at the $32 million Gateway to Amelia, two new restaurants, Spanky’s (from River Street in Savannah) and Barbara Jean’s (from St. Simon’s Island), will be completed in 2003. Currently, three hotel candidates are also being considered: Holiday Inn Express & Suites, Hilton Garden Inn, and either Fairfield Inn or Courtyard Inn by Marriott. Ron Flick, the president of Compass Group and developer, expects completion of the chosen hotel in late 2003. The Chamber also recently moved its main office to this facility.

Cruise Ships, Marinas, Oh Boy!

In the summer of 2002 the Chamber unveiled a cruise ship study. Should Fernandina Beach try to tap the cruise ship market by building a port facility to support cruise ships carrying 200-300 passengers?

According to Duncan, “all the recommendations are favorable.” The Chamber formed a sub-group, the Cruise Ship Study Group in 2002. At its head is Nancy Lochrie of the Beech Street Grill. This group will be assessing the potential economic benefits to Fernandina Beach. It is also determining what infrastructure is in place, what things we might need to build, what the public’s perception of the idea is, and what environmental constraints exist. The sub-group is expected to give its report to the Waterfront Advisory Task Force (WATF), a city group, no later than February.

WATF’s Chair, Chris Bryan, said, “we’re still gathering facts, looking at each piece of property to see what might be developed. We have done a survey with property owners.” WATF must have a proposal to the city by August, but, she said, “we’re hoping for earlier than that,” she said. A quarterly report will be delivered at the January meeting.

The City of Fernandina Beach has already applied for a grant to improve the marina. Called BIG (Boating Improvement Grant), the $2.3 million applied for would be used to build a new transient dock to fill in the muddy area as well as building a new information center. Although too early for press time, by now we should know the outcome of that application; the decision is due before the end of 2002.

Both the marina and the golf course are important enterprise funds for the city, said Robert Mearns, City Manager. “We operate on a fiscal year calendar that starts in October. So far, based on the two enterprise funds, the outlook is good for 2003,” he said. This is excellent news for our economy, as current results are way above both 2000 and 2001, giving, he said, “good indications for a strong economy in 2003.”

Growth by Association

Expect to see increased interest in banding together to improve our community. Active community groups mean an active economic area, and that’s good for us all. We all want to keep the beauty of Amelia Island intact while reaping the benefits of continued economic growth. Who wouldn’t? In “Fantasy Islands…Who Doesn’t Fantasize about Island Living?” Fortune Magazine gave Amelia Island a wonderful plug. We were selected as one of only three islands in the country as best bets for affordable and comfortable island living. Amelia Island was described as “an affordable oasis that should surge in value.” Instead of buying a retirement home on, say, Fisher Island, Nantucket, or Block Island, try Amelia, where the real estate is a “bargain.”

Whether any of the groups we’ve mentioned is an official part of the Chamber—indeed, official at all—the reasons they exist is constant. “Whether they’re a part of the Chamber or not, they’re all looking to make changes,” said Duncan. “Basically, that’s how we do it, not only for the betterment of our community, but also for the whole of Nassau County as well.”

New targeted industry report expanded

The consultant hired to update the area's targeted industry study said last week that he's a quarter of the way through the work and expects a rough draft by February and a final report in March.

"We're gathering information. It takes a while to sort through it," said Dean Whittaker, president of Whittaker Associates Inc. of Holland, Mich.

Whittaker intends to update, modify and enhance the 1997 targeted industry study, which identified seven industries considered as making sense for recruitment and expansion in Jacksonville.

The new study expands on that by incorporating the six-county region of Baker, Clay, Duval, Nassau, Putnam and St. Johns counties and extending the conversations into community values, he said.

Whittaker has visited twice and plans to spend about a week each month in the area.

Last week, his travels took him to Nassau and St. Johns counties as well as around Duval County to spots such as Cecil Commerce Center, Northwest Jacksonville and Blount Island. He intends to visit Clay and Putnam counties on an upcoming trip.

The Jacksonville Chamber of Commerce reports that the $130,000 study is being funded by JEA, which is paying $83,000, the Jacksonville Economic Development Commission, which is paying $37,000, and chamber Cornerstone economic development investors and partners for the remaining $10,000.

JEA and Cornerstone had commissioned the 1997 study, which identified these seven industries for expansion and recruitment:

Aviation and aerospace

Medical equipment and technologies.

Office, headquarters, customer service, technical support and related activities.

Motor vehicle parts and accessories.

Pharmaceuticals and biotechnology.

Electronics and semiconductors.

Software and electronics commerce.

During an interview Thursday, Whittaker said the goal is to review and evaluate the 1997 targeted industries and recommend whether to modify any of them; to identify emerging industries; and to develop what he calls a "prospect response tool" that would allow the area to generate more competitive proposals for prospects.

That response program would allow Northeast Florida economic development executives to design competitive prospect proposals that compare the area with others that might be vying for a given project.

The new targeted industry study also would identify "drivers" in the area, such as the economic roles played by the port and the military, and spot and analyze trends, for example.

Community values also will play a role in the study, he said. "We're adding another element," he said of the values determination, "to understand what people would like to see here."

"Values" range from faith to environment, he said, noting that some conversations, especially with leaders in Baker County, found that "faith is important," along with "that sense of family."

"Faith plays a strong role in this community, and companies coming into the area need to know that," Whittaker said.

A quick example of how companies might react is to hold meetings in the morning and not in the evenings "because that's family time," he said.

Taking another angle on that, he said that a community in the area might decide it wants to recruit companies that spend money on training their workers and invest in civic causes. Or a county might decide that it wants to attract companies sensitive to historic preservation and the environment.

Whittaker offered other observations:

The public school system plays an important role in economic development, including where people want to live and how the workforce is trained. He said some studies show that "95 percent of our future workforce is already here," meaning that area schools are training Northeast Florida's emerging workers.

He said the study would "inventory the knowledge assets."

Whittaker also is taking advantage of unexpected opportunities. He said that at a Michigan airport he met, by chance, a Carter Woodson Elementary School teacher. As a result, Whittaker visited the school during his tour of Northwest Jacksonville.

Quality of life becomes more important as companies realize that telecommunications allow them to locate "anywhere." That means that factors such as climate and traffic congestion are the "kinds of things becoming more important in site location decision-making."

"Community values" also are defined as "how people spend their time and where people spend their money."

As examples of emerging business and assistance, he cited the area's clustering of medical products and technology development; the new Beta-1 business and emerging technology center on Amelia Island in Nassau County; and the Small Business Center at Gateway Shopping Center.

Whittaker also cited the port, the military and the $2.2 billion voter-approved Better Jacksonville Plan capital, road and infrastructure improvement program as major factors in the area's development potential.

"That's pretty amazing to convince the community to invest in their infrastructure and to invest in their future," he said of the plan.

Kemper