TheState.com: Business

Hungry groups want their bite of Columbia’s meal-tax millions

Sun, 19 May 2013 23:46 EDT

The annual frenzy over who should get some of the millions in meal-tax revenue is even more intense this year as Columbia City Council retools how it spends the money and considers a new multimillion-dollar bond to pay for undisclosed “legacy” projects.

City financial officials are projecting restaurant and bar patrons will pump about $9 million in such taxes into Columbia’s treasury during fiscal 2013-14 as more people go out to eat and drink in a recovering economy.

The jingle of all that cash has further stirred the appetites of community and civic groups that ask the city for a portion of that money each year.

As of late last week, requests have reached at least $10 million – and that’s before council discloses the full list of what it is calling “legacy projects” that are supposed to attract more tourists to the Capital City and further fatten its meal-tax revenue stream. Council even extended the deadline for applications through the end of the business last Friday.

Meanwhile, time is growing short for council to decide who gets how much. The first vote on next fiscal year’s budget is June 4. On Tuesday, council moves closer to big-ticket decisions as it tackles the budget again, including the list of requests for hospitality taxes, the legal name for meal taxes.

Top Midlands homes sales, May 19

Sat, 18 May 2013 21:19 EDT

RICHLAND COUNTY’S TOP 3

The highest-priced property transfers listed this week:

$570,000 — 209 Running Fox Road, Columbia 29223, from Willis Gregory III and Paula H. Gregory to Daniel R. Hess and Laura L. Hess

$312,000 — 6457 Eastshore Road, Columbia 29206, from Dorothy S. Fiddler to Carla Lee Damron and James Robert Hussey

$235,125 — 201 Stonington Drive, Blythewood 29016, from Michael Blevins and Alicia Blevins to N.P. Dodge Jr.

Sunday business calendar, May 19

Sat, 18 May 2013 21:07 EDT

BUSINESS NETWORK INTERNATIONAL REFERRALS RESOURCE GROUP CHAPTER: Noon, Thursdays, Greater Lexington Chamber of Commerce, 311 West Main St., Lexington; Emily Wright, (803) 767-4817

BUSINESS REFERRAL GROUP: 7 a.m. Wednesdays, LePeep restaurant in the Village at Sandhill, Clemson Road at North Springs Road, Northeast Richland. (803) 730-3738

CROSSROADS CAREER NETWORK: 6:15 p.m. Wednesdays in the Christian Life Center at Eastminster Presbyterian Church, 3200 Trenholm Road; Jim Hatchell, (803) 256-1654

LEXINGTON BUSINESS ASSOCIATION: Noon Tuesdays, Flight Deck, 109 Old Chapin Road; Darcy Templeton, (803) 957-1243

LEXINGTON COUNTY LEADS GROUP: Noon, third Tuesday, Flight Deck, 109 Old Chapin Road; Jeff Howle, (803) 678-8121

Columbia business captures new dimension in life’s moments

Sun, 19 May 2013 00:38 EDT

From a butterfly to Barney, colorful children’s drawings are spread out on a table at the downtown IT-oLogy office. Beside each stands the computer-generated 3D sculpture of the drawing.

Columbia businessman John Carrington is ramping up resources at his IT-oLogy office to take 3D printing to the marketplace in a novel way – from mall kiosks and retail stores to a 3D printing demonstration tour and online sales.

Carrington, and his international business partner, Walter Alessandrini, recently launched 3D Print Holdings, which allows consumers to create drawings, upload them to their website, DoodleSculpt.com, then receive within 48 hours a one-of-a-kind sculpture of the drawing for a keepsake, display, gift or other use.

The cost is $99, and Carrington has plans to roll out add-ons, such as keychains and charms.

The company opened its first retail kiosk at Southpark Mall in Charlotte last month and is negotiating to have the service offered in retail locations in Charleston and Kiawah in June and in Columbia later this summer to “create a footprint outside of the Internet,” Carrington said. The company also is negotiating with a national franchise to potentially roll out the service at 600 locations nationwide at the end of the year, said Carrington, the company’s CEO. All of the sculptures would continue to be produced in Columbia.

Restaurateur jazzes up Columbia’s food scene

Sun, 19 May 2013 01:24 EDT

One of Columbia’s leading restaurateurs wants to give Main Street a shot of Bourbon.

Kristian Niemi, who has helped define the food scene in Columbia over the past two decades, said he is opening Bourbon, a Cajun/Creole-influenced restaurant and bourbon-based cocktail bar, in the historic and newly renovated Brennen Building. The building for decades was home of the legendary Capitol Café.

The new restaurant, slated to open its doors in the fall near the corner of Main and Gervais streets, is expected to boost not only Columbia’s emerging foodie reputation, but further cement Main Street as a destination for dining and the arts.

“That’s such a critical corner for the whole state – it’s the front porch of the State House,” said Heather Spires, vice president of recruitment for City Center Partnership, which guides and encourages investment in the central business district. “Kristian has lots of followers. And the fact that he wants to be involved on Main Street is a big deal.”

For Niemi, who has a degree in historic preservation architecture, locating a new restaurant in one of Columbia’s most historic buildings is a thrill.

Ins and outs of bonds

Sat, 18 May 2013 21:10 EDT

Unlike stocks, which constitute ownership in a company, bonds are essentially loans.

Corporations often raise money by issuing bonds – sometimes called debt instruments or fixed-income securities – and governments often use bonds to pay for their ongoing operations or specific projects, such as highways or new construction.

The bond issuer promises to pay the bondholder regular interest payments until a certain date. At that point, the bond is said to have matured. When it reaches its maturity date, the full amount of the loan must be repaid to the bondholder. Each bond pays a stated interest rate called the coupon on a fixed schedule, usually quarterly or semiannually, although some pay all interest at maturity along with the principal.

Just as with stocks, an investor can buy individual bonds or bond funds.

Allocations to fixed income investments will depend on each investor’s circumstances and goals after reviewing the risk characteristics and potential returns of each investment alternative.

Summer travel? Think beyond airfare

Sat, 18 May 2013 21:09 EDT

As travelers start thinking about winging off to summer vacations, many could learn a few things from expert flyers to ensure they get the best value for their money when booking flights.

Price and flight schedules are clearly the primary factors for flyers when booking flights, and the Web has an abundance of resources to compare airfares and flight availability. Individual airline websites as well as online flight bookers, such as Expedia, Priceline, Orbitz and Kayak, can give you a good idea of what’s available and at what price.

But what else is important? Here are a few other considerations:

Airline reputation. According to well-respected SkyTrax rankings, the top North American domestic carriers are Virgin America, WestJet, Alaska Airlines, Southwest Airlines and JetBlue Airways. Among North American carriers that fly abroad, top ratings go to Air Canada, Delta Air Lines and United Airlines. If you want to drill down for recent data about such factors as on-time rates, lost baggage and consumer complaints among U.S. carriers, see the U.S Department of Transportation’s Air Travel Consumer Report at http://tinyurl.com/dot-air. For annual rankings based on that data, assembled by academics, see the Airline Quality Rating at airlinequalityrating.com. Consider a foreign carrier when traveling abroad. In passenger satisfaction, foreign airlines typically thump American carriers. According to SkyTrax, the best airlines in the world are Qatar Airways, Asiana Airlines (South Korea), Singapore Airlines, Cathay Pacific Airways (Hong Kong) and All Nippon Airways (Japan).

Legroom. Nowadays, you can buy more legroom on many flights, with premium economy fares offered by the big airlines. But some airlines, such as JetBlue, offer more personal space without additional cost.

SC business notebook, May 18

Fri, 17 May 2013 19:56 EDT

Report: Younger baby boomers, Generation Xers face uncertain retirement

NEW YORK A research report by the Pew Charitable Trusts says younger baby boomers and Generation Xers face an uncertain retirement because of reduced savings, high levels of debt, and losses during the Great Recession. The study found that members of Generation X, who are now between 38 and 47 years old, lost almost half their wealth between 2007 and 2010. Young baby boomers, who are between 48 and 57, lost more money but a smaller portion of their overall wealth. The report says both of those groups are struggling to save enough money for retirement and are lagging older groups in terms of their savings. They also hold more debt than those groups did at similar points in their lives.

Sonic the Hedgehog to star in 3 games on Nintendo platform

LOS ANGELES Sonic the Hedgehog is rolling with Nintendo. Sega says it will exclusively release the next three games starring the popular blue critter on Nintendo platforms. The first title will be called “Sonic Lost World” and is set for release on the Wii U and Nintendo 3DS later this year. The original fast-paced side-scrolling “Sonic the Hedgehog” debuted in 1991. The twirling, ring-hoarding hedgehog became Sega’s mascot and a video-game icon rivaling the likes of Mario and Pac-Man. While his recent interactive exploits haven’t achieved the same level of success as previous “Sonic” outings, the character has remained a presence in pop culture, appearing in cartoons, downloadable games and the Disney film “Wreck-It Ralph.”

McDonald’s to streamline bloated menu

Stocks rise on hopeful signs for economy

Fri, 17 May 2013 23:03 EDT

Encouraging news about the U.S. economy extended the stock market’s rally Friday.

Small-company stocks rose the most, a sign that investors are taking on more risk. Two companies soared in their stock-market debuts in the latest indication that the market for initial public offerings is reviving.

A gauge of future economic activity rose more than analysts had expected, as did a measure of consumer confidence, adding to evidence that the economy is steadily recovering.

Stocks closed higher for a fourth straight week. Indexes are at record levels after surging this year on optimism about the economy and record corporate earnings. The market is also being supported by ongoing stimulus from the Federal Reserve, which is keeping long-term borrowing costs at historically low levels.

“This slow but relatively steady growth, that keeps inflation in check and keeps interest rates low, is actually a pretty healthy environment for the stock market,” said Liz Ann Sonders, chief investment strategist at Charles Schwab & Co. “Right now we are very optimistic.”

Snags seen as banks sell mortgage servicing

Fri, 17 May 2013 22:48 EDT

Millions of homeowners around the country have received an unexpected message from their banks: Goodbye.

After years of collecting mortgage payments from as many people as they could, big U.S. banks such as Bank of America and Wells Fargo are scaling back. As servicing mortgages grows less lucrative, they’re selling the rights to do so in deals measured by the billions.

The buyers are specialty companies much less known to the public. And as the massive transfers take place, regulators have signaled they are concerned about a small but growing fraction of homeowners who report falling through the cracks.

Some have found their online accounts unavailable. Others have reported delays in receiving account numbers. The details of some promised loan modifications haven’t been carried through with the new servicer.

In Charlotte, one man said his short sale, arranged with Bank of America, wasn’t honored after the mortgage was transferred. The home is now in foreclosure.

Hilton Head golf courses hope to tee up new success

Fri, 17 May 2013 22:47 EDT

Southern Beaufort County’s golf industry has taken its licks from the Great Recession. During the economic downturn, the number of rounds played declined, and some courses were put on the market, eyed for other uses.

Golfers who were cash-strapped couldn’t afford to play as often or pay as much for a round. The number of rounds played between 2006 and 2011 declined by about 20 percent, according to the Hilton Head Island-Bluffton Chamber of Commerce.

And, as in much of the rest of the country, there were indications that the market was over-saturated with newly built golf courses, particularly those tied to real estate. Currently, about 100 courses a year are being closed and redeveloped for other uses, according to Mike Hughes, CEO of the National Golf Course Owners Association, a Charleston-based trade group.

Locally, Old Carolina Golf Club in Bluffton built an apartment complex in 2006 on land that once was occupied by several holes and a driving range. More recently – just this past March, in fact – the Heritage Golf Group sold holes 2 through 16, comprising 102 acres, of the Planter’s Row Golf Course in Port Royal Plantation to the Town of Hilton Head Island. There wasn’t enough demand to keep the course active, according to Gary Dee, executive vice president of the Heritage group. The town says it has no plans for the property.

And the owners of Hilton Head National in Bluffton recently requested a zoning change that would allow housing, hotels and commercial development on land that is now an 18-hole course.

Navy man in the sky, scholar in classroom

Fri, 17 May 2013 21:05 EDT

On the University of South Carolina campus, Frank Jordan blends in. He is quiet and keeps to himself, and on the surface, he is indistinguishable from the 31,000 other students who weave in and out of classrooms throughout the day.

But a closer look at his straight posture, buzz haircut or the dog tag hanging from his key chain reveals something else.

Jordan is a veteran of war.

After enrolling at USC in 2005 and not finding college to his liking, Jordan decided to join the military. After a year and a half of intense training, he spent five years in the Navy as an airborne cryptologic analyst, flying in manned reconnaissance missions. Most of his time served was spent in support of Operation Iraqi Freedom and Operation Enduring Freedom.

“When you think Navy, you think boats and water,” the Columbia native said. “I never saw a ship.”

China’s hunger for U.S. coal is in doubt

Fri, 17 May 2013 20:40 EDT

The push for mass coal exports from Washington state, already facing a huge environmental battle, also could get hit with slowing Chinese demand for coal shipments.

The American coal industry, stung by a drop in U.S. demand, hopes to revive its fortunes by sending Rocky Mountain coal to Asia from proposed terminals near Bellingham and Longview, Wash.

But a recent report by Wall Street colossus Goldman Sachs says this will be a transformational year for China, with its seaborne coal imports dropping for the first time since the global financial crisis of 2007 and 2008 and continuing to decline in the coming years. China’s own coal production has spiked, Goldman Sachs said, along with investment in Chinese railroads to move its coal.

China, with its cities shrouded in smog, also is trying to improve energy efficiency and diversify its fuel mix, including investments in nuclear energy and wind power, according to Goldman Sachs. Deutsche Bank also said in a report released this month that there are increasing signs of “softer Chinese coal demand growth going forward.”

The global German banking firm pointed to protests in China against coal-fired power plants and associated pollution.

Myrtle Beach courts Chinese tourists

Fri, 17 May 2013 20:00 EDT

China’s booming economy and relaxed travel policies have state and local officials looking to that country as one of the next major international markets for tourism, but they admit opportunities are slow to evolve and it could be years before Chinese visitors make a noticeable impact on leisure travel spending here.

“It’s going to take a while to establish an identity in a country where we are relatively unknown,” said Marion Edmonds, spokesman for the S.C. Department of Parks, Recreation and Tourism. “We are very early in that process.”

The potential for tourism growth is huge — about 1.8 million Chinese visitors came to the United States in 2012 and the U.S. Commerce Department expects that number to increase to nearly 2.6 million by 2017. Chinese tourists on average outspend every other international traveler, including those from Japan, according to a Fortune magazine report. Chinese visitors spend an average of between $6,000 and $7,800 per trip to America.

Although few Chinese travelers visit the Grand Strand now, the potential has area leaders looking for ways to capture a slice of the pie.

For example, Myrtle Beach Mayor John Rhodes and Brad Dean, president of the Myrtle Beach Area Chamber of Commerce, attended the U.S.-China Tourism Leadership Summit in Qingdao, China, in September to tout this area as a destination and build relationships with tourism and government leaders there.

SC jobless rate plunges to 8 percent in April

Fri, 17 May 2013 19:20 EDT

With summer vacations looming, more South Carolinians found work at hotels and restaurants in the state’s growing tourism sector in April, pushing South Carolina’s jobless rate to a near five-year low.

South Carolina’s jobless rate plunged to 8 percent from 8.4 percent in March, the S.C. Department of Employment and Workforce said Friday.

“We’re almost respectable now,” said Mark Vitner, a senior economist for Wells Fargo.

Over the past year, the state’s unemployment rate has fallen almost twice as fast as the national jobless rate, now 7.5 percent.

“We’ve done it by adding jobs,” Vitner said, rather than having would-be workers quit looking for jobs. While the state’s labor force dropped by more than 5,000 in April, it stands about where it was a year ago – a sign that people are finding work, Vitner said.

SC business notebook, May 17

Thu, 16 May 2013 22:27 EDT

American Airlines tries to speed up boarding

FORT WORTH, Texas In a quest to speed up the boarding process, American Airlines is letting passengers board sooner if they travel lightly. The airline said Thursday that people carrying just a personal item that fits under the seat – no rolling suitcases – will be allowed to board before most other passengers. American said that the change will allow flights to take off sooner, helping the airline improve its on-time performance. Airline officials say boarding times have increased in the last few years. The airlines have created this problem by cutting back flights, which makes planes more crowded, and also charging fees for checking baggage, which encourages passengers to haul their luggage on board. The result can be sharp-elbowed competition for scarce bin space that leads to short tempers among passengers and flight attendants.

Duke Energy’s nuclear plant near Raleigh shut down

RALEIGH A nuclear plant near North Carolina’s capital city was shut down after operators reviewing ultrasonic tests from last year found the results showed tiny marks of corrosion and cracking that need repair, the Nuclear Regulatory Commission said. Operators at the Shearon Harris plant on Wednesday found a quarter-inch flaw in the covering of the reactor vessel, which contains superheated steam produced by the nuclear reaction’s energy. The crack did not penetrate the vessel head and there is no evidence of radiation leakage, an NRC incident report said. The discovery did not affect the health and safety of employees or the public at the New Hill plant, federal regulators said. NRC inspectors will want to ask plant owner Duke Energy Corp. – which acquired the 26-year-old plant through its buyout last year of Progress Energy – why the testing performed during a spring refueling outage last year didn’t find the problem, agency spokesman Roger Hannah said Thursday. Spokesmen for Charlotte-based Duke Energy said it would evaluate why the problem was missed last year. Data from last year’s test were being reviewed ahead of an upcoming planned refueling outage.

Markets fall on disappointing news

Once-reviled flippers could heal housing markets

Thu, 16 May 2013 22:39 EDT

Home flippers got a bad name during the housing boom. They sold properties for big profits in days or weeks, and the rapid price appreciation created a frenzy that led to the eventual bust.

But today’s flippers are getting credit for helping the market recover. They’re taking time to add value, sprucing up the landscaping and putting in new floors and appliances.

“When I put a house back up for sale, it usually goes very quickly,” said Bruno Duarte, a 34-year-old former stock broker.

“Prices since last year have risen a lot,” he said. “Houses I used to buy for $70,000 or $75,000 cost $80,000 now. They’re costing a little more to buy, but they’re also selling for higher prices, too.”

The best areas for flips are those where prices fell the most, industry observers say.

U.S. housing starts fall in April but permits surge

Thu, 16 May 2013 22:39 EDT

U.S. builders broke ground on fewer homes in April, one month after topping the 1 million mark for the first time since 2008. But most of the decline was in apartment construction, which tends to vary sharply from month to month.

And applications for new construction reached a five-year peak, evidence that the housing revival will be sustained.

The Commerce Department said Thursday that builders started construction at a seasonally adjusted annual rate of 853,000, a 16.5 percent drop from the March pace of 1.02 million. Applications for building permits rose 14.3 percent to a rate of 1.02 million, the most since June 2008.

Builders are benefiting from a sustained rebound in housing that began a year ago. Steady job growth, rock-bottom mortgage rates and rising home values have boosted demand.

New construction of single-family homes declined 2.1 percent in April to an annual rate of 610,000. Multi-family construction, which is volatile, plunged 39 percent to a rate of 243,000. That drop more than reversed a 26 percent surge in March.

Ad featuring Belk on Limbaugh radio show creates online stir

Thu, 16 May 2013 08:55 EDT

Charlotte-based Belk Inc. found itself in the middle of an online battle between political partisans this week, when an ad featuring the company ran on conservative talk show host Rush Limbaugh’s radio program.

The fight highlights the fine line companies walk with advertising and social media.

The ad featuring Belk was apparently first noticed Monday by a group on Facebook that monitors Rush Limbaugh’s advertisers in an effort to pressure the talk show host financially. On Tuesday, the liberal website Daily Kos mentioned the ad in a posting.

People started posting messages on Belk’s Facebook page protesting the ad. “I cannot support or recommend your business to my relatives in the South while you sponsor the Rush Limbaugh show,” wrote Heather Santiago, in a comment on the retailer’s page.

Tuesday morning, Belk posted a message on the Facebook page explaining that it doesn’t advertise with Rush Limbaugh, and the ad was run by one of the company’s vendors as part of a new campaign. “We’ve asked the vendor to pull the ads featuring Belk from The Rush Limbaugh Show going forward,” the company wrote.

SC business notebook, May 16

Wed, 15 May 2013 20:34 EDT

Water with traces of tritium leaked at nuclear station

Federal regulators say more than 100 gallons of water with traces of a radioactive hydrogen isotope have leaked at the Catawba Nuclear Station. The U.S. Nuclear Regulatory Commission said Wednesday the tritium leak isn’t an emergency, but precautions are being taken to make sure it doesn’t reach groundwater. NRC spokesman Roger Hannah says the amount of tritium in the water is less than half the federal limit for safe drinking water. Federal officials say the leak was discovered Tuesday in a fiberglass discharge pipe at the plant. The water was heading to a holding pond, where it is tested before it is released back into Lake Wylie. Duke Energy says the leaked water was contained in the site.

Hartmann USA to expand, hire more workers

ROCK HILL Hartmann USA is expanding its Rock Hill operations, investing $18 million in manufacturing equipment and hiring as many as 75 new workers. Hartmann, which produces a range of products to treat wounds and manage incontinence, has had a distribution center here for about 20 years. Hartmann will relocate its production operations from Bloomington, Ind. The expansion is expected to be complete in mid-2014, with hiring starting next year. The majority of the jobs in the areas of manufacturing and warehouse support roles. The state’s Coordinating Council for Economic Development approved job development credits for the new jobs. The York County Council has approved a fee-in-lieu tax agreement, reducing the company’s property taxes for 43 percent over 30 years.

France returns to recession