Employment Gains Signal Upward Potential, Says The Conference Board

/PRNewswire/ -- The 224 thousand gain in jobs (excluding the 66,000 additional workers on the census) in April is very welcome news. It clearly shows that this economic recovery can no longer be seen as a jobless one. Following three quarters of growing production, companies apparently find they can't squeeze out any more output without adding workers. This underscores yesterday's news that Q1 productivity growth slowed to a healthy 3.6 percent following the staggering rate of above 7 percent on average in the previous three quarters.

These job gains are comparable to what we've seen following other deep recessions, suggesting that U.S. business has become more confident that the recovery is sustainable. Manufacturing jobs are returning to a significant extent, and construction employment turned the corner in the previous two months. The key factor this spring will be continued gains in service-sector employment beyond health and education.

Continued employment gains of this size could put the economy on a solid 3 percent growth track and -- if productivity growth stays up - even boost it to 3.5 or 4 percent.

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International Dignitaries to Tour Northeast Georgia

23rd Annual VIP Tour brings diplomats, business officials to Georgia’s communities

A cadre of top diplomatic and business officials representing close to 20 countries will tour Northeast Georgia as part of the 23rd annual VIP Tour. The tour, which runs from April 15 – 17, will showcase destinations, businesses, educational institutions and economic development partnerships in Flowery Branch, Gainesville, Clayton, Young Harris, Dahlonega, Helen, Dawsonville and Cumming.

The tour combines travel destinations with significant economic development projects and local business leaders and enables Georgia’s diplomatic corps to meet local Georgians in their own communities.

“Each year, the VIP Tour gives Georgia a unique opportunity to highlight business, cultural, tourism and educational assets of different regions of our state,” said Ken Stewart, commissioner of the Georgia Department of Economic Development. “Georgia’s diplomatic corps will be able to witness first-hand Northeast Georgia’s unmatched beauty as well as its economic development capabilities. It is our belief that our distinguished diplomatic corps will, in turn, become advocates for the value this region of Georgia can bring to their home-country companies.”

The International VIP Tour is a unique program that benefits its participants and host regions. Each year, tour participants visit a part of the state they might not otherwise experience in order to enhance their understanding of Georgia’s amenities and culture. The tour also offers communities the opportunity to establish relationships with international business representatives.

This year’s VIP Tour will include representatives from Albania, Australia, Austria, Brazil, Canada, Costa Rica, Czech Republic, Ecuador, France, Germany, Japan, Korea, Liechtenstein, Lithuania, Nigeria, Philippines, Slovenia, Switzerland and Taiwan.

“Every year, Georgia’s consular corps looks forward to getting to know more of Georgia by way of the VIP Tour,” said Amanda Hodges, Consul General and Trade Commissioner of Australia. “It’s an excellent way for us to reinforce our social, political, economic and cultural ties with Georgia’s communities.”

The VIP Tour will visit sites highlighting Northeast Georgia’s diversity of manufacturing, educational, tourism, entertainment and cultural industries. The first stop on Wednesday, April 15 is the Falcons Team Headquarters in Flowery Branch. The rest of the day, the VIPs will visit the Kubota plant in Gainesville and Tallulah Gorge State Park, with an overnight stay in Clayton.

Thursday, April 16 the group will enjoy a presentation at Rabun Gap-Nacoochee School and then head to Young Harris College for a program. In the afternoon, the VIPs will visit several sites in Dahlonega and spend the night at the Unicoi State Lodge in Helen.

On Friday, April 17, the VIPs will visit the Kangaroo Conservation Center in Dawsonville and complete their trip with a tour of Hansgrohe’s facility in Cumming.

The Atlanta Consular Corps consists of consuls general, consuls, honorary consuls and trade commissioners representing 61 countries. Career officers are members of their country’s foreign services while honorary officials are local residents appointed by foreign governments to perform consular duties. Each consulate offers diplomatic and business assistance to nationals from its respective country.

Currently, 53 countries operate more than 2,500 internationally owned facilities in Georgia. In fiscal 2008, international companies accounted for $1.08 billion in investment and the creation of 7,001 jobs.

The Georgia Department of Economic Development (GDEcD) is the state's sales and marketing arm, the lead agency for attracting new business investment, encouraging the expansion of existing industry and small businesses, locating new markets for Georgia products, attracting tourists to Georgia, and promoting the state as a location for film, music and digital entertainment projects, as well as planning and mobilizing state resources for economic development.
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Karen Gordon Mills Confirmed By Senate as SBA Administrator

The U.S. Senate confirmed by unanimous consent President Barack Obama’s nomination of Karen Gordon Mills as the 23rd Administrator of the U.S. Small Business Administration on Friday.

“Small business is the backbone of the American economy,” Mills said upon her confirmation. “The SBA has a vital role to play in supporting our nation’s small businesses so that they can be the key driver in getting our economy moving again. I look forward to leading this critical agency at this important time.

“I want to thank President Obama for this opportunity to serve as a voice for our nation’s small business owners and entrepreneurs,” Mills said. “I would also like to express my appreciation to Darryl Hairston for his leadership as Acting Administrator during this transition, along with everyone at the SBA for the hard work they are doing to implement the important programs of the Recovery Act.”

In testimony on April 1 before the Senate Committee on Small Business and Entrepreneurship, Mills discussed her hands-on experience managing and helping to grow small businesses.

“I was there on the factory floor in Arkansas and Ohio working to weather the recession of the early ‘90s,” she said. “Those experiences give me a deep understanding of what our small businesses need today to survive this downturn and to prosper in the years ahead. Since then, I have helped grow companies in organic food, and women’s media, and spent time in rural Maine working with our boat builders and composite technology to help them compete throughout the globe.

“The sum of my experience is this: I am a believer in American small business. I am a believer in America’s ability to manufacture goods and services that are world class, and I am a believer in America’s spirit of entrepreneurship. This spirit is one of our country’s greatest assets and we need to cultivate it today, more than ever.”

As Administrator of the SBA, Mills will direct a federal agency with more than 2,000 full-time employees, with a leading role in helping small business owners and entrepreneurs secure financing, technical assistance and training, and federal contracts. SBA also plays a leading role in disaster recovery by making low interest loans.

Mills, of Brunswick, Maine, was president of MMP Group and has a 25-year career of investing in and growing small businesses. In 2007, she was appointed by Maine Gov. John Baldacci as chair of the state’s Council on Competitiveness and the Economy, where she focused on attracting investment in rural and regional development initiatives. She also co-authored a Brookings Institute paper on competitive clusters.

Mills is also a member of the Council on Foreign Relations and has served as vice chairman of the Harvard Overseers. She holds a degree in economics from Harvard University and an MBA from Harvard Business School, where she was a Baker Scholar. Mills and her husband Barry Mills, president of Bowdoin College in Brunswick, Maine, have three sons.
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PFK Says Worsening Economy Extends U.S. Lodging Recovery Timeline

But Data Shows Impact Varies Across Markets


PKF Hospitality Research (PKF-HR) recently announced that, according to its March 2009 edition of Hotel HorizonsSM, the current decline in the U.S. lodging industry will be deeper and last longer than the company had previously predicted. RevPAR is now expected to drop 13.7 percent in 2009, and a quarter-over-quarter gain in sales is not anticipated until the first quarter of 2011. The revised lodging forecast is based on worsening economic projections from Moody’s Economy.com.

Hotel HorizonsSM is a quarterly series of reports containing five-year forecasts of performance for the U.S. lodging industry and 50 major markets across the country. The lodging forecasts presented in the March 2009 edition of Hotel HorizonsSM are based on Smith Travel Research (STR) hotel performance data through December 2009 and Moody’s Economy.com’s February 2009 economic forecast for the nation. The latter reflects the expected impact of the recently enacted federal legislation aimed at stimulating the economy.

“Our national forecast encompasses the aggregate performance of thousands of hotels located all across the country. At that level, the outlook for the U.S. lodging industry is grim,” said R. Mark Woodworth, president of PKF Hospitality Research. “However, when analyzing the data for each of the 50 individual markets that comprise our Hotel HorizonsSM universe, it is clear that lodging behavior can vary considerably from market to market.”

The Pain Is Now

The PKF-HR March 2009 national forecast calls for a 13.7 percent decline in RevPAR during the current year, representing a downward revision to the 9.8 percent decline anticipated earlier this year, a time when the economic outlook was not quite as severe. The revised 2009 forecast is the result of a 7.8 percent fall off in occupancy and a 6.4 percent drop in Average Daily Rate (ADR) for the year.

“Of most concern are declining room rates,” Woodworth noted. “The 6.4 percent decrease in ADR forecast for 2009 is the largest annual decline observed by PKF-HR since the firm began compiling data in 1932. When revenue contraction is heavily influenced by declines in ADR, the downward impact on profit is amplified.” PKF-HR is forecasting that the average U.S. hotel will experience a 30.1 percent decline in profits during 2009. This, too, is a level of deterioration not seen since the 1930s. Profits are defined as income before the deduction for capital reserves, rent, interest, income taxes, depreciation, and amortization.

Although double-digit declines in both revenues and profits appear certain, the new report indicates there is a small pinpoint of light at the end of the economic tunnel. The most severe declines in performance for U.S. hotel owners and operators are forecast to occur in the current quarter, and should begin to subside by mid-2009. “Fading revenues will persist throughout 2009 and 2010. However, the magnitude of RevPAR declines will taper off to single digits beginning in the fourth quarter of 2009,” Woodworth said. “Continuing declines will further erode profits, but the leaching will become less painful as we move through this deep and extended trough in the business cycle.”

Minn-ea and Mickey

Most everyone has conceded that 2009 is going to be a year of poor performance for U.S. hotels. Therefore, the focus of industry participants has shifted to the recovery. When will things start to improve?

“All 50 markets forecast by PKF-HR are projected to experience an annual decline in RevPAR in 2009,” Woodworth said. “However, by the end of the year, two of the 50 markets are forecast to show year-over-year gains in their fourth quarter RevPAR, and will sustain this growth into 2010.”

PKF-HR’s Hotel HorizonsSM econometric model forecasts a fourth quarter 2009 RevPAR gain of 6.8 percent in Minneapolis over the fourth quarter of the prior year. Much of this improvement can be explained by the extremely weak fourth quarter realized in Minneapolis in 2008. Year-over-year increases in RevPAR are forecast to continue each and every quarter from the fourth quarter of 2009 through 2013.

In California, Orange County hoteliers should also see some relief beginning in the last three months of 2009. Hotels in and around Disneyland are forecast to enjoy a slight improvement in RevPAR of 1.7 percent in the fourth quarter of 2009, and another relatively big upward push of 7.7 percent in the first quarter of 2010. Well below average increases in supply in Orange County should help to improve industry fundamentals.

While San Antonio and Baltimore are both forecast to suffer declines in occupancy during the current year, they are the only two markets in the country where an improving local economy will generate more lodging demand in 2009 than in 2008. “Unfortunately, significant net increases in supply will far out-strip the gains in market area demand in these cities. The room inventories in San Antonio and Baltimore are projected to grow 8.6 and 7.2 percent, respectively, in 2009,” Woodworth cautioned.

Some Will Enjoy 2010

“Economics can be a dismal and disappointing science. In today’s environment, a slowdown in the pace of revenue declines may be hailed as an improvement,” says John B. (Jack) Corgel, the Robert C. Baker professor of real estate at the Cornell University School of Hotel Administration and senior advisor to PKF Hospitality Research. “The darkest hour is always just before the dawn, and we expect to see that in mid-2009. Subsequently, the rate of decline will begin to moderate, and national RevPAR is forecast to decline just 3.2 percent in 2010, the result a 0.9 percent drop in occupancy and a 2.3 percent decrease in ADR.”

In 2010, the vast majority of cities are still forecast to experience a decline in RevPAR for the year. However, emerging signs of economic recovery are expected in many markets, and 14 cities across the U.S. will enjoy RevPAR increases over 2009. Joining Anaheim and Minneapolis as the markets expected to lead the lodging industry recovery are the cities of Atlanta, Austin, Detroit, Oahu, Fort Worth, Raleigh, Chicago, Dallas, Nashville, Columbus, Albuquerque, and Houston.

“The upward trajectory of revenue projected for these markets in 2010 will draw some attention,” Woodworth observed. “However, lenders, investors, and operators should continue to be cautious because all but the hotels in Houston are forecast to continue to report occupancy levels below their long-term average.”

By 2011, all 50 markets covered by PKF-HR Hotel HorizonsSM forecasts are projected to achieve gains in performance. All three of the major top-line measures (occupancy, ADR, and RevPAR) are forecast to grow each and every year from 2011 through 2013.

Are There Any Winners?

“Knowing that local market conditions vary, we evaluated which cities will have suffered the most, and the least, by the time this protracted downturn has ended,” Woodworth said. “Using 2008 and 2011 as the bookends of the current industry recession, we calculated the changes in supply, demand, and RevPAR for all 50 markets included in our Hotel HorizonsSM universe. Some of the results are positive in nature; however, most are depressing.”

Compounding the negative impact of the economic recession, hotel managers in San Antonio will have to endure a 24.1 percent increase in competition from 2008 through 2011. This is the greatest rate of increase in supply in the nation during this time period. On the other end of the spectrum, operators on the island of Oahu are seeing a 6.1 percent decline in the number of hotel rooms they have to compete with. Unfortunately, the demand for accommodations in Oahu is simultaneously falling at an annual rate of 1.2 percent.

Aided by a 2008 boost in oil prices, as well as the unfortunate displacement of residents due to Hurricane Ike, Texas hotel markets are enjoying the greatest increases in lodging demand. From 2008 through 2011, the cities of Fort Worth, San Antonio, Houston, Dallas, and Austin are forecast to benefit from annual demand growth in excess of 2.0 percent.

In total, 25 lodging markets are forecast to accommodate fewer guests in 2011 that they did in 2008. Leading the way in annual declines in demand are Oakland, Los Angeles, Detroit, and Tampa. All four of these cities are forecast to suffer annual declines in demand greater than 2.0 percent.

“Using RevPAR as the measure of a market’s health, only six of the 50 cities analyzed will be able to match their 2008 RevPAR levels by 2011. This just further illustrates how deep and long this industry recession is expected to be,” Woodworth noted. The six markets able to post a positive RevPAR growth rate from 2008 to 2011 are Austin, Oahu, Minneapolis, San Francisco, Houston, and Chicago.

Compound annual declines in RevPAR in excess of 6.0 percent from 2008 to 2011 are forecast for the cities of Charlotte, New York, Orlando, Fort Lauderdale, and Tucson. “The reasons for the protracted poor performance in these markets vary. In New York, it is a matter of supply growth outpacing gains in demand. In the four other markets, we are projecting declines in demand, brought on by weaker economic conditions,” Woodworth observed.

Pay Attention

Research conducted by PKF Hospitality Research found that 70 percent to 80 percent of a hotel’s performance is systematically linked to the local economy. Therefore, it is imperative for all lodging industry participants – lenders, investors, and managers alike – to gain a thorough understanding of the unique local factors that influence each individual asset in which they have a stake.

“Yes, the general direction of the lodging industry is downward. However, as a national consulting firm with professionals that have on-the-ground experience throughout the country, we see significant differences in the major measures of each local lodging market,” Woodworth said. “In some areas, increased competition is driving the poor performance. In other markets, declining employment or income levels are suppressing demand. In the face of poor market conditions, some hoteliers will retain pricing power, while others will not. The differences are striking and require deep thought and analysis.”

To purchase Hotel HorizonsSM forecast reports for the United States, or one of 50 individual markets, please visit the firm’s online store at www.HotelHorizons.com, or call (866) 842-8754.

* * *
PKF Hospitality Research (PKF-HR), headquartered in Atlanta, is the research affiliate of PKF Consulting, a consulting and real estate firm specializing in the hospitality industry. PKF Consulting has offices in Boston, New York, Philadelphia, Washington DC, Atlanta, Miami, Indianapolis, Houston, Dallas, Bozeman, Sacramento, Seattle, Los Angeles, and San Francisco.
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“JOBS” Act for Georgia’s Economy Clears Senate

Today the Georgia State Senate voted for a true stimulus package with the passage of the Jobs, Opportunity, and Business Success Act of 2009 (JOBS Act). Sen. Mitch Seabaugh (R-Sharpsburg) supported the bill.

“What we are proposing is harnessing the greatness of Georgia…the intellectual capital, the entrepreneurial spirit, and the true grit of Georgians,” said Seabaugh. “This bill will get Georgia’s economy flourishing in a fast, efficient, and stable manner. This is a long-term, sustainable solution, not an instant knee jerk reaction like the Federal stimulus package.”

House Bill 481 and 482 comprise the JOBS Act with HB 481 providing a new business filing fee holiday, a $500 credit towards the unemployment insurance tax for each eligible employee hired, a $2,400 income tax credit for each eligible employee hired, and the elimination of the sales tax deposit. HB 482 would eliminate the state inventory tax on all Georgia businesses.

The Senate inserted a provision that will allow for the gradual elimination of the corporate income tax, which will be phased out over the next 10 years providing that the state maintains a 5 percent rainy day fund. Seabaugh also praised the Act as the most pro-business legislation the General Assembly has ever considered and believes its focus on protecting small business will be the key to bringing Georgia through the current recession.
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Coweta-Fayette EMC Appoints New Members to Board of Directors

Coweta-Fayette EMC Natural Gas has elected Dwight D. Ellison and Anthony H. “Tony” Sinclair to its Board of Directors.

“Dwight and Tony bring a tremendous amount of energy, security and community knowledge to Coweta-Fayette EMC Natural Gas,” said Dan Hart, President and CEO of Coweta-Fayette Natural Gas. “They are both accomplished in business and civic leadership and offer levels of expertise that our customers and shareholders will find of value.”

Mr. Ellison was formerly Vice President of Corporate Security for Turner Broadcasting System and Deputy Assistant Director of Investigations for the U.S. Secret Service. He is a Board Member and immediate past President of the Summit Family YMCA and a Board Member for First Coweta Bank. A former English teacher for the LaGrange (GA) Public School System, he volunteers his time as a mentor for Coweta County Schools. Mr. Ellison is a graduate of Clark College, now known as Clark Atlanta University, and resides in Newnan with his wife, Kathy. He has two adult daughters and two grandchildren.

Mr. Sinclair is the current President and CEO of Coweta-Fayette EMC. He was most recently General Manager for the Missoula Electric Cooperative in Missoula, Montana, where he was responsible for the cooperative’s engineering, operations, accounting, and customer service and information technology. During his time in Missoula, he served as a Director of the Missoula Area Economic Development Corporation, actively supported the Seeley Lake Chamber of Commerce, and founded an employee team to participate in the American Cancer Society’s Relay for Life event. A native of Baldwin County, Alabama, Mr. Sinclair also was formerly Chief Financial Officer of Joe Wheeler EMC near Decatur, Alabama, and Manager of Member Services for Baldwin EMC on the Alabama Gulf Coast. He is a graduate of the University of South Alabama and is a Certified Public Accountant (CPA). He resides in Coweta County with his wife, Susan, and has two children.

Coweta-Fayette EMC Natural Gas is a natural gas marketer registered with the Georgia Public Service Commission (PSC) that offers customers easy to understand bills, simple pricing structures, and local customer service. Coweta-Fayette EMC Natural Gas customers can choose monthly variable-rate pricing without a contract or fixed pricing that allows them to lock in their natural gas price for the winter heating season.
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Lodgian Receives Audit Report with Going Concern Explanation

Lodgian, Inc. (NYSE Alternext US: LGN) today announced that the audit report of its independent registered public accounting firm, Deloitte & Touche LLP, included in the company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2008 (the “Form 10-K”), while expressing an unqualified opinion regarding the company’s audited financial statements, identified matters which raise substantial doubt about the company’s ability to continue as a going concern. The company’s announcement does not represent any changes or amendment to its 2008 financial statements or to its Form 10-K which was filed with the Securities and Exchange Commission on March 13, 2009.

As disclosed in the Form 10-K, the audit report raised substantial doubt about the company’s ability to continue as a going concern because approximately $128 million of the company’s mortgage debt is scheduled to mature in July 2009. This mortgage debt cannot be extended without the approval of the loan servicers, which extension has been requested but not yet granted. To address the pending maturities, the company is also pursuing opportunities to refinance the maturing mortgage debt or to acquire new mortgage debt using currently unencumbered properties. However, in light of the current state of credit markets generally and the real estate credit markets specifically, the company cannot currently predict the outcome of these efforts.

About Lodgian
Lodgian is one of the largest independent owners and operators of full-service hotels in the United States. The company currently owns and manages a portfolio of 40 hotels with 7,448 rooms located in 22 states and Canada. Of the company’s 40-hotel portfolio, 20 are InterContinental Hotels Group brands (Crowne Plaza, Holiday Inn, Holiday Inn Select and Holiday Inn Express), 12 are Marriott brands (Marriott, Courtyard by Marriott, SpringHill Suites by Marriott, Residence Inn by Marriott and Fairfield Inn by Marriott), three are Hilton brands, and four are affiliated with other nationally recognized franchisors including Starwood, Wyndham, and Carlson. One hotel is an independent, unbranded property, which is currently closed and held for sale. For more information about Lodgian, visit the company’s website: www.lodgian.com.

Forward-Looking Statements
This press release may contain forward-looking statements within the meaning of the federal securities laws. All statements, other than statements of historical facts, including, among others, statements regarding Lodgian’s future financial position, business strategy, projected performance, financing needs and ability to extend, refinance or repay its debt, are forward-looking statements. Those statements include statements regarding the intent, belief or current expectations of Lodgian and members of its management team, as well as the assumptions on which such statements are based, and generally are identified by the use of words such as “may,” “will,” “seeks,” “anticipates,” “believes,” “estimates,” “expects,” “plans,” “intends,” “should” or similar expressions. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that actual results may differ materially from those contemplated by such forward-looking statements. Many of these factors are beyond Lodgian’s ability to control or predict. Such factors include, but are not limited to, the effects of regional, national and international economic conditions, our ability to refinance mortgage debt that matures on July 1, 2009, competitive conditions in the lodging industry and increases in room supply, requirements of franchise agreements (including the right of franchisors to immediately terminate their respective agreements if we breach certain provisions), our ability to complete planned hotel dispositions, the effects of unpredictable weather events such as hurricanes, the financial condition of the airline industry and its impact on air travel, the effect of self-insured claims in excess of our reserves and our ability to obtain adequate insurance at reasonable rates, and other factors discussed under Item IA (Risk Factors) in Lodgian’s Form 10-K for the year ended December 31, 2008. We assume no duty to update these statements.
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SBA Holding Veterans Symposium on March 26th

—Will Cover Agency Programs/Services Available to Veterans—

The U.S. Small Business Administration will present a symposium for veterans on March 26 in Atlanta which will cover agency programs and services for both active and retired military personnel who are starting or expanding small businesses.

The free symposium will run from 8:30 a.m. until noon at 75 Fifth Street, ATDC Community Room, Suite 202, Atlanta, GA 30308. The symposium will focus on loan programs and other assistance available from the SBA and its resource partners including the agency’s SCORE Program, the University of Georgia Small Business Development Center (SBDC) network and the Georgia Institute of Technology Procurement Assistance Center (GTPAC).

Attendees will also be given information on the SBA Patriot Express Loan Initiative. This program offers guaranteed business loans of up to $500,000. It can be used by:

Veterans, service-connected disabled veterans, active duty military personnel within 24 months of retirement or 12 months to transition into civilian society,

National Guard and Reservists and the current spouse of all the aforementioned,

The widowed spouse of a service member or veteran who died during service, or from a service-connected disability.

The symposium, also supported by the U.S. Minority Business Development Agency, will discuss unique federal contracting opportunities for service-connected, disabled veteran-owned small businesses. Small business provisions in the new Recovery Act will also be discussed including tax credits for hiring unemployed veterans.

Pre-registration is mandatory. To register, email Jorge Valentin-Stone at Jorge.valentin-stone@sba.gov. You can register by fax at 202/481-5239. To register online, go to www.sba.gov/ga and select Public Training and Seminars, “Register Now,” in the Spotlight section of the web site’s main page. Please include your name, telephone number and/or email address.

For additional information on SBA programs for veterans, go to www.sba.gov/vets.
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SBA’s March Web Chat Will Highlight the Recovery Act

The American Recovery and Reinvestment Act will be the focus of discussion for the U.S. Small Business Administration’s March Web chat. SBA Associate Administrator for Capital Access Eric Zarnikow will help small business owners get answers to their questions about what the Recovery Act means for the nation’s small businesses.

The Recovery Act is a national effort to grow the U.S. economy by stimulating job creation, freeing credit markets, and investing in small business. The Act contains a package of loan fee reductions, higher guarantees, new SBA programs, secondary market incentives, and enhancements to current SBA programs that will help unlock credit markets and begin economic recovery for the nation’s small business sector.

SBA is working to enact the new programs created by the passage of the bill and make changes to the programs already in existence. Additional information on the Recovery Act is available online at www.sba.gov/recovery/index.html.

WHO: Eric Zarnikow, associate administrator for the Office of Capital Access at the U.S. Small Business Administration will host the SBA’s March Web chat on the topic “The Recovery Act and Your Small Business.” Zarnikow will answer a range of questions to help chat participants understand the elements of the Recovery Act that pertain to the SBA and the nation’s small businesses.

WHAT: SBA’s Web chat series, providing small business owners with an opportunity to chat about relevant business issues online with experts, industry leaders and successful entrepreneurs. Chat participants will have direct, real-time access to the Web chats via questions they submit online, both in advance of and during the live session.

WHEN: March 19, 2009, 1 – 2 p.m. ET

HOW: Participants can join the live Web chat by going online to www.sba.gov, and clicking the “Online Business Chat” icon. Web chat participants may post questions for Zarnikow before the January 15th chat by visiting http://app1.sba.gov/liveMeeting/mar09/, and posting their questions online.
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Georgia Super Lawyers Honors Four Stites & Harbison Attorneys

Four Stites & Harbison attorneys in the Atlanta office were recently honored in the 2009 Georgia Super Lawyers magazine.

The attorneys named to the Super Lawyers list include: R. Daniel Douglass under the practice area of Construction/Surety, J.D. Humphries, III, under the practice area of Construction Litigation and T. Matthew Mashburn under the practice area of Real Estate. Ron C. Bingham, II, was named to the Rising Stars list under the practice area of Bankruptcy & Creditor/Debtor Rights. All attorneys are members of Stites & Harbison (www.stites.com).

Super Lawyers (www.superlawyers.com) is a guide compiled by Law & Politics Magazine that honors exceptional attorneys, representing a wide range of practice areas, firm sizes and geographic locations. Candidates are nominated by peers in their state or region and evaluated by an expert panel system. Only 5% of the lawyers in each state or region are named to the Super Lawyers list and no more than 2.5% are named to the Rising Stars list. Rising Stars are selected based on the same criteria as Super Lawyers with the exception of peer evaluation by practice area. Rising Stars must be 40 years old or younger or in practice for 10 years or less to be considered. Stites & Harbison has a total of 48 attorneys listed in Super Lawyers and three listed in Rising Stars.
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Trailer Manufacturer to Locate New Manufacturing, Distribution Facility in Cordele

Governor Sonny Perdue announced today that Big Tex Trailer Manufacturing plans to open a new manufacturing and distribution facility in Cordele, creating 130 jobs and investing $7 million over the next two to three years.

“Big Tex’s investment in Georgia showcases how vital the state’s location and assets are to growing companies,” said Governor Perdue. “Our strong workforce and unmatched transportation network enable companies to reach their markets with a quality product in record time.”

In response to demand across the eastern U.S. for its Big Tex utility trailers, CM Trailer’s steel and aluminum horse and livestock trailers and the CM Truck Bed truck bodies, Big Tex has purchased property adjacent to Interstate 75 in Cordele that includes two buildings totaling 174,000 square feet on 55 acres of land for the new plant and distribution center. The like-new manufacturing facilities and easy access to I-75 make it a perfect location for Big Tex. The location will also serve as a new branch operation for Tex Trail Trailer Parts.

Distribution operations are expected to begin in the spring of 2009, and manufacturing operations are expected to begin in the last quarter of 2009.

“We are really excited about being able to better serve our current dealers and reach new ones in the eastern part of the country with faster deliveries and lower prices. This expansion will help ensure that Big Tex stays on the growth path that we have enjoyed for the last 30 years,” said Ricky Baker, President/CEO of Big Tex. “A ready and capable work force, the enthusiasm of the community of Cordele, and the big welcome from the state of Georgia give us even more confidence that this is the right decision and the right time.”

“We are extremely pleased to have Big Tex committing to building a facility and employ up to 130 people in our community, especially in these trying economic times,” said Chairman of the Cordele Industrial Development Council, Bub Denham. “It will be a tremendous boost to our economy and the people of Crisp County.”

Ryan Waldrep, project manager for GDEcD, assisted Big Tex in its location.
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Governor Perdue Announces Digital Media Company to Locate New Facility in Gwinnett County

YesVideo, Inc. to create 300 jobs in Norcross over three years and invest millions in
production and IT technology

2/18/09 Governor Sonny Perdue announced today that California company YesVideo, Inc. plans to locate a new facility in Norcross. The digital video imaging company will create 300 jobs in three years and invest millions in its Gwinnett County production facility.

“For high-tech companies like YesVideo that are reaching a wide customer base, the state of Georgia is perfectly situated,” said Governor Sonny Perdue. “We have a skilled workforce, the technical infrastructure, a terrific transportation network and a business-friendly environment that fosters success.”

YesVideo transforms consumer and professional video content from the original into current digital formats, allowing the content to be viewed and enjoyed for generations to come. The company uses highly automated production technology that digitizes the video media to contemporary formats and indexes the content so it can be easily viewed, organized, edited, shared and archived.

The company has leased 30,000 square feet of space in the Oakbrook Technology Park in Norcross.

“The greater Atlanta area is a perfect location for the expansion of our production operations," said Gregory Ayres, COO of YesVideo. "Atlanta is well-centered, geographically, to service the entire Eastern Seaboard, Midwest, and South Central regions with cost-effective ground logistics. In addition, the community has a ready labor force and extremely well-developed IT infrastructure to suit our growth plans. Finally, support from the Georgia Department of Economic Development and the Quick Start training program made Georgia stand out above other areas.”

"YesVideo represents the type of high-quality, global, technology-based regional office we are working to attract to Gwinnett County,” said Gwinnett County Commission Chairman Charles Bannister. “With high-wage jobs and a significant capital investment, we are proud they have chosen to call Gwinnett County and the State of Georgia their East Coast home."

Chris Pumphrey, project manager with the Georgia Department of Economic Development, and Lauren Salas, business development manager with the Gwinnett County Chamber of Commerce, assisted the company in its location.
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Mental Health Requests for Proposals will be Reissued After Review

Two requests for proposal - one for privatizing and consolidating forensic mental health services and another for privatizing and constructing a new psychiatric hospital - are being reviewed by the Georgia Department of Human Resources and will soon be resubmitted to attract prospective bidders.

A request for proposal (RFP) is an invitation for bidders to submit business proposals for providing a service or commodity. DHR first submitted an RFP to privatize and consolidate its forensic services in October 2008 but later cancelled the process after the single viable candidate was excluded by a technicality. DHR also decided to cancel a second RFP for privatizing and constructing a new psychiatric hospital in Atlanta since that RFP contained the same technicality.

“We set the bar high,” said Gwen Skinner, director of the Division of Mental Health, Developmental Disabilities and Addictive Diseases. “There were some experience requirements in these RFPs that may be too stringent even for a seasoned company. We have high standards for the operation of our mental health services and facilities, but we need to make sure what we require is a reasonable business model. Since both RFPs contain the same experience requirements, we felt it best to cancel both and review them now so the process can move forward as quickly as possible.”

The forensic services RFP is under review and will be publicly resubmitted as soon as possible. The RFP to privatize and construct a psychiatric hospital in Atlanta was pulled for re-evaluation before the bidding stage was reached. It also will be publicly resubmitted. Both RFPs seek private companies to operate, not own, state mental health services and facilities. The State of Georgia would retain ownership and oversight, and winning bidders must comply with all state and federal standards regulating mental health services.
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SBA Warns of Fraudulent Attempts to Obtain Bank Account Information from Small Businesses

The U.S. Small Business Administration issued a scam alert today to small businesses, warning them not to respond to letters falsely claiming to have been sent by the SBA asking for bank account information in order to qualify them for federal tax rebates.

The fraudulent letters were sent out with what appears to be an SBA letterhead to small businesses across the country, advising recipients that they may be eligible for a tax rebate under the Economic Stimulus Act, and that SBA is assessing their eligibility for such a rebate. The letter asks the small business to provide the name of its bank and account number.

These letters have not been sent by or authorized by the SBA, and all small businesses are strongly advised not to respond to them.

The scheme is similar in many ways to e-mail scams often referred to as “phishing” that seek personal data and financial account information that enables another party to access and individual’s bank accounts or to engage in identity theft.

The SBA is working with the SBA Office of Inspector General to investigate this matter. The Office of Inspector General asks that anyone who receives such a letter report it to the OIG Fraud Line at 1 (800) 767-0385, or e-mail at OIGHotline@sba.gov.
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Verhonda Sercey Joins Georgian Terrace Hotel as Director of Sales and Marketing

Officials of The Georgian Terrace Hotel, Atlanta’s iconic hotel, today announced the appointment of Verhonda Sercey as director of sales and marketing. Sercey will be responsible for all of the property’s marketing and sales activities as the hotel begins to ramp up efforts to promote property enhancements following a comprehensive renovation that is scheduled for completion this coming April. Sercey is the latest in a series of key appointments as the hotel moves to add depth to its management team.

“Sercey is an effective leader who has successfully used her considerable interpersonal and organizational skills to motivate and manage her sales department to complete multiple projects,” said Matthew Reidy, senior managing director of Fremont Realty Capital. “She has exceptional negotiating and bargaining skills and networking and relationship-building expertise. Her abilities to generate and develop prospective clients are vital assets that we expect to use to our full advantage in attracting current and prospective guests to our reinvigorated property. One area of focus for our sales team is to re-establish the Georgian Terrace as the wedding capital of Atlanta.”

Sercey was director of sales for the Embassy Suites Atlanta-Airport immediately prior to joining The Georgian Terrace Hotel. Previously, she was regional director of sales for Pineapple Management Services, Inc., and managed all advertising, public relations and promotional activities. She has a Bachelor of Science degree in business administration from the University of South Carolina, in Spartanburg.

Built in 1911, The Georgian Terrace Hotel, located at 659 Peachtree Street NE in midtown Atlanta and listed on the National Register of Historic Places, has played host to some of Atlanta’s most preeminent events, including the star-studded party for the 1939 premiere of the classic, Oscar-winning film, “Gone with the Wind.” Some of the hotel’s most celebrated guests include Calvin Coolidge, Warren G. Harding, Charles Lindbergh, F. Scott Fitzgerald, Tallulah Bankhead, Clark Gable and Rudolph Valentino. The hotel recently was used as the setting to film a European commercial starring George Clooney.

The all-suite hotel, with room sizes averaging 850square feet of space with some larger suites boasting 2,700 square feet, features quality furnishings, large bathrooms, oversized windows, microwave oven, full-size refrigerator, washer and dryers and an electric range/oven. Additionally, many of the suites have walk-in closets and balconies with sliding glass doors. The hotel offers a state-of-the-art business center and a stunning rooftop pool with 360-degree panoramic views of the city. For more information please contact us at (404) 897-1991, or online at the hotel’s Wed site: www.thegeorgianterrace.com.
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Citizens Trust Bank President to Speak at Clayton State

The next installment in the James Wood Speaker Series at Clayton State University will feature Citizens Trust Bank President & CEO James E. Young.

Young will be speaking on Wednesday, Feb. 18, from noon to 1 p.m. in room UC 272 of the James M. Baker University Center.

Young joined Citizens Trust Bank of Atlanta on Feb. 2, 1998 as president & chief executive officer after a merger with DeKalb County’s First Southern Bank, where he was president and CEO. Under his leadership, First Southern bank grew from $22 million in assets to $58 million at the time of the merger.

As of Dec. 31, 2006, Citizens Trust Bank was one of the top five African-American owned commercial banks in the country and its assets stood at $335 million. The company was also cited by the Atlanta Journal-Constitution as one of Georgia’s Top 100 publicly traded companies.

A native of Cleveland, Tenn., Young received his B.S. in Business from Tennessee State University in 1971. He is a member of the Board of Directors of The National Bankers Association, The Georgia Chamber of Commerce, The Commerce Club, Rock-Tenn Company, and Antioch AME Church in Stone Mountain.

James “Jim” Wood is president of Jim Wood Associates, a former owner/publisher of the Clayton News Daily, and the only original member still serving on the Board of Trustees of Clayton State University Foundation. Dr. Martha Wood, is a professor emerita of Mathematics at Clayton State and founder of the Southeastern Center for the Enhancement of Learning. Together, they have spearheaded an effort that expands the University’s speaker’s series.

The Woods, as well as their family, friends, and business associates, have donated to the School of Business to create an endowed fund for the James Wood Lecture Series, which will financially support the efforts of the School of Business to seek and obtain guest lecturers who are some of Georgia’s most celebrated business personalities. According to Dean Dr. Jacob Chacko, the School of Business sees the series as a means to forge bonds between Georgia’s business leaders and Clayton State students, while ensuring students gain insights into current business trends and corporate strategies. All lectures in the series are free and open to the public.

A unit of the University System of Georgia, Clayton State University is an outstanding comprehensive metropolitan university located 15 miles southeast of downtown Atlanta.
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Delta Supports Flight Attendant Committee's Position on Seniority Integration

/PRNewswire-FirstCall/ -- Delta Air Lines (NYSE:DAL) today issued the following memo from Delta Senior Vice President of In-Flight Service Joanne Smith to the airline's nearly 14,000 pre-merger Delta flight attendants in support of their flight attendant seniority integration committee's position to use a seniority date methodology when integrating the combined flight attendant workgroup.

"The pre-merger Delta In-Flight Seniority Integration Committee has announced their position for a fair and equitable seniority integration method for the combined Delta/Northwest flight attendant workgroup. Seniority integration is perhaps the biggest issue for flight attendants in a merger, and history tells us the outcome never pleases everyone, but based on the team's presentation to us we support their seniority date-based position as a fair and equitable integration method. Here's why:

-- The federal law, which mirrors Delta's policy, requires fair and equitable integration. We believe this means that neither airline should be materially advantaged over the other. Because our seniority distribution in this merger was so similar, the committee's recommendation for an In-Flight seniority date method was a near perfect solution.

-- The data shows that an In-Flight seniority date integration method keeps most pre-merger Delta and Northwest flight attendants within a percentile ranking that is equal to or closely aligned with their ranking on today's seniority lists.

-- The committee's recommendation takes into account a fair and equitable method for accounting for time spent in training.

-- As has been noted previously, the internal order of flight attendants on each pre-merger list has been preserved.

"It is our understanding that the committee also has communicated their recommendation to the AFA. As you know, up to this point the AFA has refused to authorize Northwest flight attendants to participate in this process. If the AFA supports the Delta committee's In-Flight seniority date position -- which is consistent with what the AFA has said is their required integration policy, according to their constitution and bylaws -- we will accept the In- Flight seniority date methodology for the combined workgroup and work to present both pre-merger flight attendant groups with a final, combined seniority list methodology.

"This team has worked very hard over the last two months conducting an exhaustive review of the Delta and Northwest seniority lists, analyzing a significant amount of data, and studying past mergers and arbitration decisions to reach their conclusion. I hope you will take the time to review the information they've issued, including their recommendation, other methods they studied but did not select, and where your percentile ranking is on both the current seniority list, as well as the combined list. I am confident that once you read this information you will better understand how an In-Flight seniority date approach is fair and equitable for our combined workgroup given the circumstances.

"My thanks go out to the entire committee who worked tirelessly on your behalf. We will continue to update you on this process and encourage you to visit the committee's portal page for the latest information."

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Governor Perdue Introduces Tort Reform Legislation to Improve Business Environment, Protect Landowners

Governor Sonny Perdue announced today that Sen. Bill Cowsert has introduced SB 101 and SB 108, to improve Georgia’s business environment. Sen. Bill Heath introduced SB 75, the Landowner’s Protection Act.

“This legislation will make plain that the threat of meritless litigation is not a viable business strategy in Georgia,” said Governor Perdue.

“Through this tort reform package, Governor Perdue is sending an important signal that Georgia is committed to maintaining a strong pro-business environment and that companies who locate here can expect a level playing field in the courts,” said Jim Snyder, chair of the Georgia Chamber of Commerce Law & Judiciary Committee.

SB 101 will protect manufacturers and sellers of medical devices and drugs with a significant presence in Georgia from lawsuits if their product received approval from the federal Food and Drug Administration. The legislation covers defects in design, which undergo a strenuous FDA approval process, but it does not cover defects that occur in the manufacturing process.

“We will cement our position as a leader in the biotech industry by enacting laws that respect the role of the federal Food and Drug Administration as the regulator of the safety of drugs and medical devices,” Governor Perdue said.

This summer, Georgia will host more than 15,000 energy innovators at the biggest bio-life science conference in the world – BIO 2009.

“At the same time the world’s bio companies focus on our state, this legislation will show that Georgia welcomes the bio-tech industry and the high-paying jobs the industry brings,” said Sen. Cowsert. “It is an outstanding economic development tool.”

SB 108 will provide relief to individuals and companies wrongly sued. Current law provides little deterrent for unfounded lawsuits and often makes it cheaper to settle even if a company is wrongly sued. Under SB 108, in most cases if a claim is dismissed at the earliest possible stage, the litigant bringing the claim will be responsible for the prevailing party’s attorneys’ fees. And if the attorney fails to notify the client of this provision, that attorney could pay the award. Last, the bill will make sure that the costly discovery process will not begin until the legal merits of a complaint have been tested.

“SB 108 will free up our courts to pursue justice in cases with merit, protect our existing businesses that provide jobs for Georgians and attract new investment,” the Governor said.
“This legislation will allow the judiciary to sweep out unfounded lawsuits so that cases with merit can receive the court’s full attention and justice can be pursued,” said Sen. Cowsert.

The Landowner’s Protection Act will protect landowners, who allow hunters to hunt on their property, from being sued for accidents arising during a hunt except those due to gross negligence on the part of the landowner. Likewise, visitors to an agri-tourism attraction (e.g., visiting a farm to pick peaches) would not be able to win lawsuits filed against the landowner for injuries during such a visit except in cases of gross negligence.

“Georgia is a premier agri-tourism destination,” said Governor Perdue. “This legislation will make sure the threat of litigation does not prevent landowners from welcoming guests onto their property.”

“We want to encourage landowners to open their hunting property and farms to visitors to enjoy Georgia’s natural beauty as an agricultural and sportsman’s paradise,” said Sen. Heath. “The Georgia General Assembly is working to protect landowners and, again, stand up for the rights of private property owners.”
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SBA Holding Veterans Seminar on February 19th At Fort McPherson U.S. Army Base in South Atlanta

The U.S. Small Business Administration will present a seminar for veterans on February 19th at Fort McPherson which will cover agency programs and services for active and retired military personnel who are starting or expanding small businesses.

The free seminar will run from 11:30 a.m. until 1:00 p.m. at the Army Community Service Building, 1350 Troop Row S.W., Fort McPherson, GA 30330-1069. The forum will focus on loan programs and other assistance available from the SBA and its resource partners including the agency’s SCORE Program, the University of Georgia Small Business Development Center (SBDC) network and the Georgia Institute of Technology Procurement Assistance Center (GTPAC).

Attendees will also be given information on the SBA Patriot Express Loan Initiative. This program offers guaranteed business loans of up to $500,000. It can be used by:

- Veterans, service-connected disabled veterans, active duty military personnel within 24 months of retirement or 12 months to transition into civilian society,

- National Guard and Reservists and the current spouse of all the aforementioned,

- The widowed spouse of a service member or veteran who died during service, or from a service-connected disability.

The seminar will also discuss service-connected disabled veteran-owned small business concerns and unique contracting opportunities with the Federal Government. The seminar will be repeated every third Thursday of the month through 2009.

Pre-registration is mandatory. To register, contact Alfonso Lewis, Employment Readiness Program manager at Alfonso.lewis@forscom.army.mil. Lewis can also be reached at 404/464-3266 or by fax at 404/464-2979.

For additional information on SBA programs for veterans, go to www.sba.gov/vets.
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Whitlock Ellis Building Completed

The new Whitlock Ellis Wealth Management office, built on the site of one of Peachtree City’s first banks, has been completed and is open for business.

The building, located at 2338 Hwy 54 in Peachtree City, is over 6500 square feet and is a two story shingle-style office building designed by Tyrone based Jefferson Browne of Design Group, LLC.

With a large open floor plan, featuring two conference rooms and six private offices, the complex houses the permanent Peachtree City location of the Whitlock Ellis Wealth Management team headed up by Barry Ellis, Managing Partner.

“Moving into this brand new building is really exciting for me, explained Barry Ellis. “I worked out of the old building for almost ten years. We are proud to have added such a landmark to Peachtree City.

The previous building located at the site, was originally built in the 1970’s. Demolition crews from the company of South –Tree Enterprises, a Tyrone based commercial builder, completely took down the old building in July of 2008.

Elizabeth Whitlock, President and partner with the practice stated, “The changes to the building site and to the area in general are incredible and we are excited about serving our clients and the community from this location. We want our clients to be comfortable, and the elegant, airy style of the building accomplishes that. Barry, Melinda and I can’t wait to see the reaction of our clients when they first come through the doors.”

Senior Vice President and Partner, Melinda Whitlock added, “It was important to us that our clients feel right at home. We believe with all our hearts that what we have built here will accomplish that goal.”

For more information about Whitlock Ellis Wealth Management, visit the website at www.whitlockellis.wbsec.com or call Peachtree City at 770-487-7979 or Fayetteville at 770-461-8188.

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