MAY 8-14, 2023 SPRINGFIELD BUSINESS JOURNAL · 1 MAY 8-14, 2023 · VOL. 43, NO. 42 YOUR BUSINESS AUTHORITY SINCE 1980 $2.50 · SBJ.NET BRANSON BET Hotel banking on a different kind of visitor. PAGE 8 Cardinals team purchased by holding company See CARDS on page 24 Dan Reiter expects DBH to bring innovation and new technology to the Cardinals. St. Louis Cardinals sell the city’s Double-A affiliate to a holding company that owns 18 clubs by Karen Craigo · kcraigo@sbj.net The St. Louis Cardinals have sold the Springfield Cardinals, the Double-A franchise that calls Hammons Field home, to Diamond Baseball Holdings LLC, making the Springfield squad the 18th team in the DBH portfolio. The terms of the sale announced May 1 were not disclosed. A news release from the city of Springfield stated the transaction is expected to finalize soon. The team has two standing commitments that tie it to the city of Springfield: a professional development league license with the St. Louis Cardinals through 2031 and a 15-year lease agreement attaching it to Hammons Field through 2038. Dan Reiter, general manager of the Springfield Cardinals, said the team is not going anywhere, and he added the sale to DBH opens up new possibilities locally. “We’re looking into multiple avenues for future growth,” he said, noting opportunities ranging from ticketing to fan experiences but declining to disclose details. “You don’t want to tip your hand, but I can tell you I have heard multiple discussions of partnerships that would be very, very exciting.” Mother’s Brewing Co. changes ownership by Geoff Pickle · gpickle@sbj.net “We brew love.” That company marketing slogan was unveiled by Mother’s Brewing Co. founder Jeff Schrag in May 2011, when a ribbon-cutting ceremony was held to celebrate the brewery’s opening. Now, 12 years later, the company is under new ownership. The slogan was again stated on May 3, this time by Jeff Seifried, who purchased the business with his wife, Lindsay, from Jeff and Mary Schrag. “Jeff and Mary built craft beer in Springfield,” Jeff Seifried said at a news conference held at Mother’s Brewing Co.’s taproom and headquarters, 215 S. Grant Ave. “Lindsay and I couldn’t be more proud to be a part of the brand.” Speaking to the crowd, Jeff Schrag held back tears as he signaled plans to soon retire from the beer industry. “It has been an incredible journey,” he said. “We’re really grateful to the Springfield community.” Acquisition and expansion Seifried declined to disclose the financial terms of the acquisition, which closed May 2. He said the Schrags maintain an undisclosed minority stake in Mother’s Brewing Co. Jeff Schrag is slated to stay involved with the business in the near term to assist with sales and operations as he transitions to retirement from the beer industry, company officials say. Changes on the way at Mother’s Brewing Co. include plans for expanded distribution and outdoor service for customers at the Springfield headquarters, the addition of food options and the growth of the Barrel House indoor seating area to be able to serve as an event venue. “The game has changed dramatically over the last 10 years,” Seifried said. See BEER on page 21 The business founded 12 years ago by Jeff Schrag transitions to Jeff and Lindsay Seifried REBECCA GREEN Mother’s Brewing Co. founder Jeff Schrag, right, passes the ownership torch to Jeff Seifried.
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MAY 8-14, 2023 SPRINGFIELD BUSINESS JOURNAL · 3 NEWS CONTENTS Jerry Harmison is the new presiding judge for the Greene County courts. page 9 Law Open for Business A bar serving up over 100 shots opens downtown. page 4 Business Spotlight An Ozark drink shop aims to bridge the gap between hearing people and deaf people. page 6 From the Ground Up Great Southern Bank is constructing a new kind of branch on Sunshine Street. page 16 Opinion Page Editorial Vice President Eric Olson sheds light on the next generation of employees that’s been confusing workplaces. page 23 Closures do not signal ‘doom and gloom’ for retail, says one local developer by Karen Craigo · kcraigo@sbj.net Liquidation sales this month signal the exit of two stores that are part of Springfield’s retail landscape. Bed Bath & Beyond, occupying 30,050 square feet in Primrose Marketplace, and Tuesday Morning, with 13,000 square feet in Brentwood Center South, are in the process of closing down shop, as is the case for all their stores nationally, as both companies filed for bankruptcy this year. Springfield has seen a series of departures in recent years. Near the center of the city, a 46,000-square-foot retail building that briefly held a Gordmans store after the closure of Toys R Us stands empty at the corner of Battlefield Road and Fremont Avenue. Behind it, a 210,000-square-foot former Sears building that once anchored Battlefield Mall also stands empty since 2020. Mall officials declined to comment on whether there was any movement on the space. The previous Gordmans location, beside a Walmart Supercenter in the 3300 block of South Campbell Avenue, stands empty and for sale – all 84,000 square feet of it – and five blocks south, the 63,000-square-foot Weekends Only is having its own liquidation sale. The future of retail has long been under a microscope, with talk of COVID-19 triggering a retail apocalypse predated by predictions of the death of retail at the hands of e-commerce titan Amazon. But it’s possible the vacancies signal a new look to come. Jared Enterprises Inc. owns Brentwood Center South, and President and CEO Curtis Jared laughs at the notion of the death of retail. Not only does it have a pulse, by Jared’s reckoning; it’s fully upright and dancing a jig. “If you look at historical data, the gloom and doom of retail is always never-ending,” he said. “The reality is there’s more retail locations opening up than there are closing.” Statistics bear out his claim. Nationally, retailers opened 5,103 stores in 2022 and closed 2,603, according to retail research firm Coresight Research. Discount stores led openings with 1,858 stores, and apparel retailers led closings with 750. Similar figures for store openings and closures are predicted this year. Store closings declined by just over 50% in 2022 compared with 2021, bringing closures to near pre-pandemic levels, according to Coresight. Jared said he is experiencing high demand for existing retail locations, like the one he’s anticipating to open in the Tuesday Morning location. “Second- and third-generation sites are in high demand right now,” he said, citing high inflation, costs of labor and materials, and ongoing supply chain issues. “That has actually made a lot of these other locations a lot more desirable. Building has gotten too costly for them to open new stores.” Added Jared, “Lots of businesses are growing. New concepts are constantly emerging.” Discount outlets like Dollar Tree and Five Below look for established spaces, and Aldi, T.J. Maxx and Big Lots are also on the hunt for locations where backfilling is possible, Jared said. After a long struggle for some businesses, Jared figures it’s time to make way for what’s to follow. “The reality is, on some of these brands like Tuesday Morning or Bed Bath & Beyond, you can keep tugging at the Band-Aid, or you can rip it off. But it keeps retail healthy,” he said. Closings were predictable The bankruptcy of Bed Bath & Beyond was no surprise to Rebecca Rast, an assistant professor who researches retail trends in the Department of REBECCA GREEN NEXT? Developer Curtis Jared says tenant prospects are interested in the space where Tuesday Morning is holding its liquidation sale. That company went bankrupt this year and is closing all of its stores. See CLOSURES on page 20 Rebecca Rast: ‘Omnichannel’ is the word to know for the future of retail. 5,103 Retail stores opened in 2022
MAY 8-14, 2023 4 · SBJ.NET NEWS By Mike Cullinan, Reporter and Presley Puig, Editorial Intern New business, new location, new owner? Send your info to newbusiness@sbj.net Shot Shack Clinical practice Ozarks Hearing Specialists LLC opened Jan. 3 at 2458 E. Madrid St. in Lone Pine Place, near the intersection of East Sunshine Street and South Lone Pine Avenue. First-time business owner Grace Gateley said she is the sole employee at the 1,620-square-foot clinic, which fills space formerly occupied by city of Springfield’s Department of Environmental Services. Startup costs were $50,000, Gateley said, adding she signed a three-year lease for $1,500 per month with J.L. Miller Investments LLC. Gateley said she developed a passion for helping those with hearing loss while watching her dad struggle with the issue for years. Going to hearing school at International Hearing Society and then spending time in a small clinic, Gateley said she wanted to focus on hearing and speech with her clinic. Services at Ozarks Hearing Specialists include hearing exams and cognitive screenings, as well as hearing aid sales and repairs. Nonprofit clinic Faith Community Health moved Feb. 27 from one Branson location to another. Now at 1232 Branson Hills Parkway, Ste. 104, in the Parkway Plaza, the clinic formerly was housed at 610 S. Sixth St., said Executive Director Kyle David. He said the nonprofit signed a five-year lease for an undisclosed rate with George Hensley, owner of Construction Processing Co. LLC. To help with renovation at the site, David said Faith Community Health held a capital campaign and raised $100,000, which covered the cost of infill work. The 4,500-square-foot clinic employs 10, filling space formerly occupied by Dance Branson School of the Arts, which moved last year. The 2010-founded nonprofit provides health care services, regardless of income level or insurance status, to individuals and families in Taney and Stone counties. Services include medical, vision, dietetics, mental health and prescription medication at income-based rates. David said walk-ins are accepted at the clinic, which also offers telemedicine services. The bar scene in downtown Springfield expanded with the Feb. 17 opening of Shot Shack at 302 E. Walnut St. The bar, which specializes in shots and mixed drinks, is owned by Zac Campbell and Kaitlin Oxenreider. Shot Shack isn’t the first ownership venture for the two, as Campbell also co-owns 417 Taphouse and Oxenreider is a co-owner of the southside PaPPo’s Pizzeria and Pub. The bar employs six and fills 1,000 square feet feet of space that was formerly a portion of sushi restaurant Izumi Hatake, which shuttered. She said the owners signed a three-year lease for $1,300 per month with landlord Charlotte McCoy. Startup costs were not disclosed. With prices starting at $3, the bar has over 100 specialty shots on the menu, Oxenreider said. She added it offers classic shots, such as lemon drops, in addition to many they came up with in-house. The concept was modeled after The Shot Bar in Columbia, she said. ☎ 417-771-5253 shotshack417@gmail.com Ozarks Hearing Specialists Faith Community Health ☎ 417-530-2030 417Ears.com ☎ 417-336-9355 FaithCommunityHealth.org OPEN FOR BUSINESS KATELYN EGGER • Profitability forecasting & ROI potential • Estimated energy production. • Estimated savings in monthly energy cost. • Explore grants and funding opportunities Start Your Pathway to Success with a Feasibility Analysis VeriWatt can help protect your company from poor investment decisions by determining whether or not a solar project is technically and financially feasible. 855-733-5600 info@veriwatt.com 3202 W. Republic Rd. Springfield, MO 65807 Kaitlin Oxenreider and Zac Campbell
MAY 8-14, 2023 SPRINGFIELD BUSINESS JOURNAL · 5 Send your company’s new hires, promotions, awards and achievements to newsmakers@sbj.net or click “Talk to SBJ” on our homepage. Please include job titles and relevant career and educational experiences. We’ll publish high-resolution color photos attached as space permits. LET US KNOW by Eric Olson · eolson@sbj.net Architecture H Design Group LLC hired Kaleb Mann as an architectural designer. He’s studied at Missouri University of Science and Technology and Drury University. Banking & Finance New York Life Insurance Co. agent Ryan Hurn earned the financial services certified professional designation from The American College of Financial Services. With NYLife Securities LLC since 2020, he is in life insurance, investments, long-term care and annuities. Arvest Bank’s Home4Me mortgage app received a Capstone Enterprise Award at the 2023 Nexus Awards. SimpleNexus, which provides the technology for the app, created the Nexus Awards to recognize its customers and partners for outstanding achievements using homeownership technology. Brett Magers, president of Legacy Bank & Trust Co. and CEO of Legacy Capital Mortgage LLC, was appointed to the Community Development Advisory Council of the Federal Reserve Bank of St. Louis. The CDAC serves as an advisory body for the Fed to identify opportunities for economic growth and community development across the region. Members are selected for their expertise in community development, financial services and other related fields, and they represent nonprofit organizations, financial institutions, universities, government agencies and foundations. Education College of the Ozarks student newscast The Point received 10 awards from the Society of Professional Journalists and the Missouri Broadcast Educators Association in the 2023 College Media Competition. Its first-place awards were for scriptwriting news and the documentary short film, “A Chef’s Story.” Health Care Tina Mottl, a hearing instrument specialist and owner of Springfield Hearing Center LLC, received the Platinum Award for Outstanding Educational Achievement from the Missouri Hearing Society. She completed 36 hours of continuing education to earn the award. Citizens Memorial Hospital recognized auxiliary volunteers Henry and Beverly Bonner and Rosanne Martin with the 2023 Lillian Hutcheson Award. The Bonners have volunteered with CMH since 2013, donating 15,862 hours, helping to run the Tremain Family Hospitality House, Gift Garden, Senior Health Center and Douglas Medical Center, as well as serving on the CMH Auxiliary Board. Martin has volunteered at the Tremain House and has given 4,320 hours as a volunteer since 2017. CMH appointed Janieca Hancock to its NEWSMAKERS Send announcements to newsmakers@sbj.net Yohn Magers Mann Hurn Smith Hancock CORRECTION Artist Kim Hardin was featured in a photo accompanying a May 1 article titled “Retailers find customers unpredictable.” The photo caption misidentified the subject. board, and the CMH Foundation board added Dr. K. Ronald Smith. Hancock, the Bolivar community president for Mid-Missouri Bank, succeeds Joan Wood for a term through April 2028. Smith, an orthopedic surgeon on the CMH medical staff for 32 years, fills the seat of Dr. William Donnell. Nonprofit The Ozark Trails Council of Boy Scouts of America honored scout leader Jim Finley with the Building Faith in Youth Award for his service to the organization. The PRAY Award recognizes youth faith development through Programs of Religious Activities with Youth, a nonprofit organization aimed at fostering the Christian growth of children, youth, and families. The Springfield Art Museum received a $2.75 million grant from the Local Tourism Asset Development American Rescue Plan Act program, part of $30 million issued statewide. The program supports public-private partnerships to further the statewide recovery of the tourism, travel and hospitality industries. Madison Yohn, content coordinator at the Springfield Convention & Visitors Bureau Inc., was selected as a 2023 30 Under 30 recipient by Destinations International, a nonprofit organization to empower destination professionals by providing research, advocacy and leadership development. The award recognizes upcoming tourism professionals who are excelling in their roles through promoting local tourism. Yohn, a four-year employee of the CVB, manages the CVB’s social media accounts. 417-831-5634 | 1-800-884-1918 | www.DeltaRoofing.net Delta Roofing prides itself in its quality products that have longevity.
MAY 8-14, 2023 6 · SBJ.NET NEWS BUSINESS SPOTLIGHT Shaking It Up by Michaela Satterfield · Contributing Writer When it comes to bridging the communication gap between hearing people and people who are deaf and hard of hearing, a first step is to start a conversation. At Downtown Ozark Nutrition LLC, that conversation is over colorful, nutritional drinks, such as shakes and teas. Katie McCormick, a regular customer at the shop, says her relationship with deaf owner Diane Morgan began with communication via phone notes. When Morgan’s phone unexpectedly died one day, she started teaching McCormick sign language so they would have another way to communicate. While approaching a deaf person to talk may seem intimidating, McCormick presents a solution she learned from interacting with Morgan: “The best way is just to say hello, even if it’s a nice wave, a kind smile, or breaking your phone out and typing out, ‘Hey, how are you?’” When Morgan purchased Downtown Ozark Nutrition in January 2022, she says talking to customers was one of the biggest challenges. It wasn’t long, however, before she became comfortable with communicating, often using writing or texting. Teaching American Sign Language to anyone who is willing to learn is also something Morgan enjoys. “I actually love to mingle with customers now,” she says via email. Morgan takes orders – typically using phone notes – runs the register and makes the drinks. She says breaking the communication barrier between hearing people and deaf people and inspiring other potential deaf business owners are the most rewarding aspects of owning Downtown Ozark Nutrition. Morgan’s deaf friend Nathan Johnston, owner of Republic Wood LLC, says technology is a huge help for deaf business owners, noting texting and microphones on smartphones act as aids that speed up communication. “I would also recommend that if you decide to go visit a deaf-owned business,” Johnston says, “be patient with the communication barrier and see what works.” Open for business In addition to the unique challenge of being a deaf business owner, Morgan faces the typical challenges of business owners. Johnston says Morgan is self-motivated, and it’s a trait that serves her well running the business. Morgan purchased Downtown Ozark Nutrition from friend Ashley Bryan, who is also a member of the Deaf community. Bryan started the business in October 2020, after opening Nixa Nutrition LLC in September 2019. Additionally, she operated Malvern Nutrition Club in Malvern, Arkansas. After visiting the Malvern location in 2018, Morgan was inspired to step into an ownership role, and a few years later, she did in Ozark. The other locations have since closed. Currently, she and her husband, Andrew Morgan, run the business. Morgan says they hope to start hiring employees in the future. The store serves a wide customer demographic, ranging from kids to adults. The busiest time of day is typically 9 a.m.-noon, she says, declining to disclose revenues. Spilling the tea Morgan hopes Downtown Ozark Nutrition will help others get healthier, as Bryan’s nutritional drink shops did for her. The shakes serve as meal replacements, mostly Herbalife products, offering 24 grams of protein and ranging from 250 to 360 calories. In addition, the products offer around 20 vitamins and minerals. There are over 50 flavors, among which the Brownie Batter, Banana Pudding and Banana Nut Bread are most popular. The store is designed to offer a nutritious alternative to greasy fast food or sugary caffeinated drinks; the shakes have 10 grams of sugar. McCormick says the lack of a standalone Starbucks coffee shop in Ozark was one reason she first decided to stop at Downtown Ozark Nutrition. Now, she visits three to five times a week. Also on the menu are teas, protein waffles and protein oats. A discount is offered to first responders, veterans, nurses, doctors and teachers. Additionally, there is a special deal every day of the week, such as Double Punch Tuesday, which allows customers to receive two punches on their loyalty cards. Morgan says adding more healthy products to Downtown Ozark Nutrition’s menu is one of her next goals. “Diane is really great at bringing new products out,” McCormick says. • HEATHER MOSLEY Andrew and Diane Morgan run Downtown Ozark Nutrition, which mostly serves Herbalife products. Ozark shop serves nutritional drinks while also closing the communication gap between hearing people and deaf people Downtown Ozark Nutrition LLC Owner: Diane Morgan Founded: 2020 Address: 103 S. Third St., Ste. A, Ozark Phone: 417-219-2233 Web: DianeLee2009.goherbalife.com Email: downtownozarknutritionllc@gmail.com Services/Products: Smoothies, energy tea and nutritional products Employees: 2
MAY 8-14, 2023 SPRINGFIELD BUSINESS JOURNAL · 7 NEWS Small biz resource group adds Bolivar office by Mike Cullinan · mcullinan@sbj.net New Growth, a west central Missouri small-business support organization, expanded its physical presence with the March opening of a satellite office in Bolivar. The rural community development corporation, which is an affiliate of El Dorado Springs-based West Central Missouri Community Action Agency, provides small-business assistance and microenterprise financing in a 15-county region. That includes Dallas and Polk counties in the Springfield metropolitan statistical area, as well as Barton, Bates, Benton, Camden, Cedar, Dade, Henry, Hickory, Morgan, St. Clair and Vernon counties. Additionally, New Growth serves Bourbon and Crawford counties in Kansas. “It’s a small office, but we’re really trying to be here to serve the southern part of our coverage area,” said Patty Cantrell, New Growth’s director of outreach and development, about the Bolivar office at 910 E. San Martin St. in Vineyard Square. “That means connecting up with many partners. We are trying to connect resources and help people plug into existing ones.” New Growth launched in 2018, Cantrell said, adding she was the sole employee for two years as the organization sought to build resources for rural entrepreneurs and communities. In 2021, the organization added microenterprise financing via New Growth Capital, which gets rural businesses bankready with credit building assistance and smaller loans of under $50,000. That same year saw the launch of the venture’s business development arm, New Growth Women’s Business Center, which offers a variety of business resources, including mentoring, networking, training, workshops and technical assistance. Despite its name, Cantrell said the center serves all business owners. Cantrell said the financing arm fills a gap the organization recognized needed to be filled in rural areas. New Growth is a U.S. Small Business Administration-approved microlender, she said. Since beginning microlending two years ago, it has provided 69 loans totaling more than $605,000. “Many businesses are too small or too young, or just too risky with credit challenges, perhaps, to get a traditional bank loan,” she said. “So, we’re all about building the pipeline of businesses so they can get to the traditional bank with smaller dollar loans. Now, (banks) have an option to send them to us to help get that business underway and growing toward a bank loan.” Getting help Jenifer Warden discovered New Growth via the SBA website and first made contact in November as she sought to start up a digital photobooth business in Bolivar. “We just started making a business plan. I’ve never done a business plan,” Warden said, adding she connected with Lakyn Coleman, a business counselor with New Growth Women’s Business Center. “I wanted to do it right because I want this to be something I can do and be able to hire people to do it as well.” Currently the sole employee of Captured Moments Photobooth LLC, Warden launched the business in February. She was able to secure a $16,000 loan through New Growth to purchase equipment from California-based Photobooth Supply Co., including two open-air photobooths, a printer, licenses, customer support access and marketing materials. Both booths use iPads for the software, with one of them also utilizing a Canon camera. Warden said she worked a wedding for her first event in late March and has since provided her photobooths for a “Dancing with the Stars” event at Bolivar High School, as well as a couple church gatherings. While she works remotely for Office Products Alliance, which purchased her previous employer, Stepping Stones Office Products LLC in Bolivar, Warden desires to eventually turn her new side hustle into a full-time professional pursuit. “They helped with the funding,” she said of New Growth. “They’ve been the biggest cheerleaders along the way, and now they’re helping with my website. They’ve been awesome.” Networking As New Growth seeks to build awareness of its services, it formed the Stay Here Business Acceleration Network, a team of resource partners that works regionally and statewide It’s more important than ever for companies to stay ahead of the curve and evolve with the times. Space Deadline: May 19, 2023 Email advertising@sbj.net to request pricing and reserve your space. PEOPLE EVOLVE. BUSINESSES EVOLVE. THE WORLD HAS EVOLVED. TELL YOUR STORY OF EVOLUTION. evo ution evo ution Introducing a new advertising supplement publishing June 12, 2023 Patty Cantrell: New Growth provides microloans of under $50,000. $605K Microloans volume approved by New Growth since 2021 New Growth seeks to better serve southern end of coverage area See RESOURCE on page 27
MAY 8-14, 2023 8 · SBJ.NET NEWS Hoteliers bet on a changing Branson by Karen Craigo · kcraigo@sbj.net From cedar soaking tubs and a coffee and wine bar to family bunk-style rooms and a natural creek-side play area, developers of The Ozarker Lodge are looking to bring a different experience to Branson tourists. Two groups have joined in the 102-room venture. One is the local team of Jeremy Wells and Dustin Myers, partners in hospitality marketing firm Longitude LLC and investment group Flyover Developments LLC. The other team is national investment firm Eagle Point Hotel Partners, with offices in New York, San Francisco and Honolulu. Eagle Point has invested $1.5 billion over the past 10 years in luxury properties like Anvil Hotel in Jackson, Wyoming, named to Conde Nast Traveler’s Hot List in 2018, and Calistoga Motor Lodge in Napa Valley, California, a restored road-trip motel that won the 2018 America Hotel of the Year Award for renovation from industry publication Sleeper. Its offerings also include destination high-rise and midrise hotels in Manhattan. Eagle Point’s website states that it reimagines underappreciated and underperforming real estate through new construction and adaptive reuse, and that seems to be what’s happening at the former Fall Creek Inn & Suites, located on State Highway 165. The Ozarker Lodge is a $10 million project, Wells said, including the acquisition cost and about $6.5 million in renovations. The Ozarker’s booking website lists summer rates as $122-$171. The hotel is on track to open this summer. The outdoor pool will be an activity hub at The Ozarker, with food trucks to be parked beside it and a concert stage nearby. Meredith Tatum, director of guest experience, is working to schedule yoga retreats. Sheldon Pruiett, general manager of the property, provides some unexpected continuity for the hotel, as he previously managed Fall Creek Inn. When asked if he thought REBECCA GREEN Jeremy Wells, part of a group developing the former Fall Creek Inn & Suites into The Ozarker Lodge, says they envision the lodge as a basecamp for those who want to adventure in the Ozarks. See OZARKER on page 26 417.447.4400 | CarnahanEvans.com The choice of a lawyer is an important decision and should not be based solely on advertisements. MERGERS & ACQUISITIONS: Excellence Matters. CONGRATS CHIP! John Carnahan Frank Carnahan Chip Sheppard Robyn Horton Courtney Fletcher Andrew Peebles David Olive Jay Preston Julie Brown Christiaan Horton Andrew Bennett Whether you are a buyer or a seller, a large corporation or a small business, we are here to help you succeed.
SPRINGFIELD BUSINESS JOURNAL · 9 MAY 8-15, 2023 LAW Leading the Bench by Karen Bliss · Contributing Writer When Michael Cordonnier stepped down as presiding judge of the Greene County Circuit Court in March, Jerry Harmison was selected to take up the mantle and lead the judicial team. His appointment is one of many changes the 31st Judicial Circuit has had within the last year. Presiding judges are voted on by the district’s 12 circuit judges, selected among the judges already serving. With 10 judicial seat changes in the last 12 months, Harmison said he will be the most senior circuit judge by July 4 when Cordonnier, who is currently still serving as a circuit judge, steps down. Harmison was appointed as circuit judge by Gov. Mike Parson in September 2022, after he’d served as an associate circuit judge since 2017, when he left his private practice, Harmison & Pearman PC. Role of presiding judge Harmison said when Cordonnier passed the torch, the outgoing judge told him, “There’s no problem in this building that’s too small not to take to the presiding judge.” “We were sort of teasing about it, but at the end of the day, I don’t mind helping people resolve problems,” Harmison said. “Since I am in the courtroom a lot, I’m not the one who resolves all the problems, and that’s where our administrative team comes into play.” Harmison said being a leader on the bench does not mean being a teacher or boss of the other judges. Instead, it's a behind-thescenes role working in conjunction with the court administrator and secretary. That means a lot of administrative meetings. Some of the upcoming tasks administrators will be overseeing, he said, include renovations of the courthouse and the old jail. Harmison said the change from private practice to being a judge, and now presiding judge, isn’t too different in regard to the level of the learning curve. “I always tell people I am drinking out of a firehose,” he joked. “There’s just so much you learn in a short period of time that some days, it just seems a bit overwhelming.” In addition to the administrative role, Harmison also has a caseload of 500-600 cases at any given time, as he still has the same responsibilities as all circuit judges do. However, he said in larger markets with more judges, such as St. Louis, presiding judges do not take on cases and strictly handle administrative work. Judicial turnover In less than a 12-month period, in an unprecedented turnover rate, 10 of the 18 judicial seats will change by September 2023. The 18 seats are made up of associate circuit judges, circuit judges and commissioners. Springfield Metropolitan Bar Association Executive Director Crista Hogan has said she’s not seen turnover at the judge level so quickly in her lifetime. Hogan said how quickly things have moved forward has been just as unprecedented. Some of the judges serving had hit the Missouri mandatory retirement age of 70, a few of them decided to make a change and Regi Martin, previously a commissioner, died in February. Hogan said there is not the same uncertainty now that there was a year ago. “There was a lot of general nervousness I am sure in the bar as to how this was going to play out,” she said. “I think it has gone very smoothly.” Dan Wichmer, who has practiced law for over 32 years, was appointed as circuit judge in January and started his judgeship on Feb. 10. He said there is a learning curve, but new judges can rely on the help of the previous judges and incumbents for advice. “What you learn very quickly is that as opposed to just arguing a side, HEATHER MOSLEY Jerry Harmison is the new Greene County Circuit Court presiding judge. He's served on the bench since 2017. Jerry Harmison is now presiding judge of the 31st Circuit Court – one of 10 judicial seat changes in 12 months 18 Judicial officers in the Greene County Circuit Court 500-600 Average case docket load for each circuit judge, including the presiding judge See BENCH on page 15 Crista Hogan has never seen this much turnover among judges.
10 · SBJ.NET MAY 8-15, 2023 You were promoted to partner at the beginning of the year. What's your background and how did that bring you to Kutak Rock? I grew up in the Bootheel, went to college at Central Methodist University in Fayette, Missouri, knew I wanted to go to law school but didn't have any lawyers in the family. I didn't know exactly how that process worked other than try to make the best grades that I could. Had the opportunity to play baseball there, which was excellent, but I was never going to be a Major League Baseball player, so I applied to numerous schools. I ended up at the University of Arkansas in Fayetteville. During my time in law school, I came up here and interviewed with most of the same group of attorneys, although we've had some folks leave for in-house positions or most recently to become a judge. I interviewed for a summer clerkship position in 2012 and worked in the summer in 2012 and 2013 and then was offered a position as an associate, a full-time position. That was with Lathrop Gage. I was an associate here in 2018 whenever the large bulk of the group of attorneys we have here left Lathrop Gage and helped start the Kutak Rock office here in Springfield. Kutak Rock is not a new firm, but it’s newer to the market. What’s it like to open a new office? It's difficult because it's brand recognition, just like any other industry. Really, it's about making sure that we highlight our attorneys in this local office, build client relationships and you hope the firm matters, at times, less than the individual attorneys. People in the community may know who some of our partners are here but may not have as much familiarity with Kutak Rock because it is relatively new to Springfield. Our goal is to be the premier law firm locally. There are lots of businesses here locally that don't just do business in Springfield, they do business on a nationwide scale, and we're the type of firm that can help them with both areas. How did the pandemic impact litigation? Litigation slowed down pretty drastically. It probably has some to do with market challenges. We have seen (litigation) pick up recently. The way that we are conducting trials and hearings has been the biggest change. Instead of traveling for depositions or instead of having expert witnesses flying from across the country, what we're seeing is that people and juries, in particular, seem to be more comfortable with witnesses appearing remotely. It can be more cost effective, however, you never know and it's part of my job as the attorney trying to assess what is going to resonate with the jury or what is going to resonate with a judge. You ask these questions, but maybe you have a juror or maybe you have a judge that chose to believe someone more or less because they made the decision to appear remotely. The other thing that's happened relatively recently, the Missouri Supreme Court has created a Track (This) Case feature through Case.net. You don't have to be an attorney to get notifications on a specific case. I believe you get a notification the day after the attorney would that updates you on what happened in that case. It's an extra reminder as the attorney to make sure you're keeping your client abreast of any developments that are happening in their case because with the technological advances and with remote access and electronic access to case files now, you're seeing court decisions happening quicker on the whole and the public's access to information is certainly quicker. What types of cases are you working on now or recently wrapped? My practice, if I had to just boil it down, it's complex civil litigation. I've tried medical malpractice defense cases. I've had trials in both state court and federal court. Last year, our firm was hired to oppose the placement of Amendment 3 on the ballot. Amendment 3 was the legalization of marijuana, which passed, but we filed a lawsuit challenging the signature process. In recent years, I've had appeals with the 8th Circuit Court of Appeals, have submitted a petition for writ of certiorari to the United States Supreme Court, which was the first time that I'd done that. The writ was denied, but it's not everyday that someone gets to submit something to the United States Supreme Court. I have numerous trials coming up the rest of the year. We've seen, here in this office, sort of an uptick in cases going to trial. The old adage is 99% of cases settle, and there's a good reason for that because litigation is not cheap. Now that our clients seem to be a little more comfortable, post-pandemic, understanding where they are, the decision-making process on the litigation side has changed a little bit. Ultimately for a lot of our clients, as with anything, it can become a business decision on whether it makes sense to spend the funds to litigate a matter or whether it makes sense to not do so, or whether it makes sense to settle a case. That calculus is constantly shifting with the economy. j. taylor white Partner, Kutak Rock LLP A CONVERSATION WITH ... KATELYN EGGER Excerpts from an interview by Executive Editor Christine Temple, ctemple@sbj.net FOCUS LAW Your Business Could be Under Attack 417-831-1700 / PCnetinc.com Download our Ransomware Survival Guide
SPRINGFIELD BUSINESS JOURNAL · 11 MAY 8-15, 2023 FOCUS LAW Law changes impact working mothers, remote employees Several federal laws have been enacted and clarified, with effective dates beginning immediately or in the next few months. We’ll take a look at six of them. Pregnant Workers Fairness Act Effective June 27, the PWFA grants a pregnant employee accommodations similar to, but more expansive than, the Americans with Disabilities Act. Unlike the ADA, the PWFA applies to a staff member temporarily unable to perform the essential functions of the job due to pregnancy, childbirth or related medical conditions, even after pregnancy. The pregnant or postpartum condition is not required to meet the definition of disability under the ADA. To activate a reasonable accommodation, an associate is required to communicate limitations experienced. The law applies to employers covered by Title VII. Providing Urgent Maternal Protections for Nursing Mothers Act As of April 28, the PUMP Act amends the Fair Labor Standards Act by expanding mandates for breastfeeding accommodations to include exempt and telework team members. In addition, businesses must provide break time to express breast milk, without compensation, unless one of three conditions exist: first, if compensation for breaks is a company policy; second, if the person is completely relieved from duty during the entire break; and third, if compensation is required by another federal, state or local law. Organizations with a workforce of fewer than 50 remain exempt if compliance would impose an undue hardship. Before filing suit for noncompliance, a worker is required to provide a 10-day notice, allowing the company to follow the law and avoid liability. A new FLSA poster must be displayed. Remote Workers: Department of Labor, FLSA Guidance The workday is determined by the amount of time the job holder actually spends on the activity hired to perform, regardless of scheduled shift or hours. Accurate recordkeeping must be maintained of hours worked for an individual to be properly compensated. Breaks longer than 20 minutes and bona fide meal breaks of 30 minutes or more are not compensable, unless an employee is not completely relieved of duty. “Completely relieved of duty” is defined in one of two ways. First, the staff member is given prior notification to leave the job and not work until a specified time. Second, the corporation permits the associate to freely decide the time to resume working, and the break is long enough to be used for personal purposes. Remote Workers: Family and Medical Leave Act An enterprise must comply with the FMLA if 50 personnel are employed within a 75-mile radius from the firm’s work site. The remote worker’s personal residence is not considered a work site under the FMLA. The work site is defined as the office the team member reports to or from where the assignments are issued. Consumer Financial Protection Bureau Effective April 19, businesses utilizing an external agency to perform background checks must ensure the agency provides applicants with the new Summary of Rights notice. The form may also be provided to employers for dissemination to applicants. DOL Religious Exemption Rule In general, qualifying religious organizations falling under the Office of Federal Contract Compliance Programs may make employment decisions based upon acceptance of and adherence to religious tenets. However, religious enterprises may not insist on acceptance and adherence if doing so results in a violation of the other nondiscrimination provisions regarding race, sex and sexual orientation. In light of the new laws and guidance, companies must take three steps: first, ensure current practices are in compliance; second, update policies, forms and employee handbooks; and third, conduct management and workforce training. Keeping up with these changes can help ensure smooth operations in your business. Lynne Haggerman holds a master of science in industrial organizational psychology and is president/owner of Lynne Haggerman & Associates LLC, specializing in management training, retained search, outplacement and human resource consulting. She can be reached at lynne@lynnehaggerman.com. INDUSTRY INSIGHT Lynne Haggerman Federal Guidance Keeping up with changes in laws can help ensure smooth operations in your business. Is your child at risk? 417-799-7474 perimeterspringfield.com Available 24 hours a day, 7 days a week, including holidays, for children ages 6-17. THANK YOU TO OUR PRESENTING SPONSORS Breakfast Prayer Springfield
12 · SBJ.NET MAY 8-15, 2023 A 6-month look-in to Missouri’s rec marijuana industry Due to the passage of Amendment 3 in the November 2022 election, it became legal on Dec. 8, 2022, for anyone age 21 or over to purchase, possess or be under the influence of marijuana in Missouri. However, it was not until February that licensed dispensaries were authorized to sell marijuana to the public. The demand far exceeded expectations. Big business In February and March, dispensaries reported to the Missouri Department of Health and Senior Services over $165 million in adult-use sales and an additional nearly $64 million in medical sales, for a revenue total topping $229 million. By year’s end, dispensary sales are estimated to exceed $1 billion. Use whatever pun comes to mind to describe this industry, but the numbers are no joke. Marijuana is big business in Missouri. Thousands of jobs already have been created statewide, and it is estimated the industry will produce an additional 16,000 jobs in Missouri this year alone. In addition to job creation, there is significant tax revenue for the state of Missouri and municipalities. While state sales tax on adult-use marijuana is set at 6%, local governments can impose an additional tax of up to 3%. A number of cities and counties passed such a tax in April elections. Licensing, round two A frequently asked question now is whether there will be additional commercial licenses issued. Under Amendment 3, every current holder of a commercial medical marijuana license – in the cultivation, manufacturing, dispensary and testing categories – may convert their existing license to a comprehensive license that allows them to operate in the medical and adult-use spaces. DHSS controls the number of commercial licenses issued, subject to the minimums set forth in the Missouri Constitution. To date, there has not been an indication from the state that additional commercial licenses will be issued. However, there does remain a pathway to enter the commercial side of the industry: microbusiness licenses. Amendment 3 provides that the department must issue at least 144 microbusiness licenses in a phased rollout that begins this year and ends in 2025. Initially, the department will issue no fewer than six microlicenses per U.S. congressional district. Those microlicenses will be awarded via a lottery, and if an applicant is unsuccessful, their $1,500 application fee will be refunded, assuming they met the criteria to apply. The microlicenses application forms are scheduled to be available in June at Cannabis.Mo.gov. To qualify, an applicant must fall within one or more identified categories, such as having a net worth of less than $250,000, being a service-disabled veteran or residing in an economically distressed area. While these microlicenses are designed for those negatively impacted by prior marijuana prohibition and/or those of lower economic means, those fortunate enough to win the lottery will face the same hurdles as any another license holder: the need for significant capital resources to build out their facilities and comply with the state’s regulations. This poses an issue because marijuana remains illegal under federal law and, as a direct result, traditional forms of financing are not available. Legal pacing With the adult-use industry being only a few months old, the landscape, including the legal landscape, is ever changing. Local governments are passing ordinances concerning public use, and bills are being drafted to address the proliferation of Delta 8 THC products, which are similar to traditional Delta 9 THC products that are sold in dispensaries. The marijuana industry is undoubtedly big business, but it is also ever changing and evolving. With the majority of Missouri’s neighboring states having only medical marijuana programs, or none at all, Missouri is emerging as a leading state in the Midwest for marijuana. Jay Preston is an attorney and shareholder with Carnahan Evans PC. He can be reached at jpreston@carnahanevans.com. INDUSTRY INSIGHT Jay Preston FOCUS LAW State of Cannabis Use whatever pun comes to mind to describe the marijuana industry, but the numbers are no joke. People Products for People People Manage your workforce from onboarding to payroll and beyond so you can spend your time on the peoplework, not the paperwork. apluspayroll.com
SPRINGFIELD BUSINESS JOURNAL · 13 MAY 8-15, 2023 FOCUS LAW There’s more than one way to draw up a will A common question from clients is, “Should I have a will?” The simple answer is usually yes, but according to a report by CNBC, 68% of Americans die without a will. The purpose of a will is to provide for the orderly transfer of your assets to your beneficiaries through a probate proceeding in the Circuit Court. Clients, however, are often unclear about the need for a will and what will happen if they do not have one. First, let’s consider a person who dies with a will, called a testate decedent. Such a person’s will provides who will take the assets. They get to choose who will receive the assets, when they will be distributed and how much each person will receive. For a person who dies without a will, called an intestate decedent, there is no written will to direct who gets the assets. In that case, the state of Missouri essentially writes a will for them by statute. The law, called intestacy statutes, provides who gets the assets, based on what the state thinks most people would want. The law therefore provides that the surviving spouse will take the entire estate if the decedent had no children. If the decedent and surviving spouse had children, then the surviving spouse takes the first $20,000 in value, plus one half of the estate. If the surviving spouse was not the biological parent of the decedent’s children, then the surviving spouse simply receives half of the estate. In either case, the other half goes to the surviving children. If this does not conform to your wishes, and for many people it does not, then you may want to do some estate planning. Clients are often unclear about what assets will pass under a will. Only assets in the sole name of the decedent pass under a will. Assets held between spouses as tenants by the entirety, or as joint tenants with rights of survivorship, become the sole asset of the survivor and are not affected by the will, even if the will provides otherwise. Nor does a will control assets with pay-on-death designations, such as may be used for bank checking and savings accounts, or transfer-on-death designations, such as for vehicles and brokerage accounts. The beneficiary deed for real estate, another common probate avoidance tool, is also not controlled by the will. All such nonprobate transfer techniques remove the assets from the jurisdiction of the probate court and are unaffected by your will. Some people avoid making a will by using only POD, TOD and beneficiary deed designations. This technique can be successful, but is not recommended for large estates, in cases where there are contingent beneficiaries or when the assets could go to a minor. It is also difficult to get proper designations on all property. If an asset is forgotten, or a beneficiary predeceases you, the asset would still pass under the will or by intestacy if you have no will. A will is more appropriate than nonprobate transfers if you do not want your assets to pass to your beneficiaries immediately upon death. If you have minor children, a beneficiary with disabilities or a beneficiary that is not able to manage financial assets, you would want the assets to be held in a trust created under your will until they were at least 18 years of age. In addition, a will is the only place in which you can designate a custodian for your minor children. If you want to avoid probate altogether, you could set up a revocable trust. Assets placed in your trust during your lifetime or directed there on death by a nonprobate transfer do not go through probate and are not controlled by your will. Even if you do have a trust, you will still have what is called a pour-over will. This type of will acts as a safety net to transfer any assets in your name alone to your revocable trust. Anything passing under your pour-over will, however, must go through probate, so you will want to be careful to direct all your assets to your trust. While almost everyone should have a will, there are many different planning techniques to handle your assets, and no single solution applies to all people. It is a good idea to confer with your planning professionals to design a custom plan for your unique circumstances. Stephen F. Aton is a Springfield attorney and owner of Aton Law Firm LLC, practicing estate planning, corporate and real estate law. He can be reached at steve@atonlaw.com. INDUSTRY INSIGHT Stephen F. Aton Dynamic Dozen | May 18 Economic Impact Awards | July 20 Men of the Year | Aug. 24 Nomination deadline | May 18 Trusted Advisers | Sept. 29 Nomination deadline | June 21 Most Influential Women | Oct. 20 Nomination deadline | July 13 SGF Business Expo | Oct. 26 Health Care Champions | Nov. 14 Nomination deadline | Aug. 10 90 Ideas in 90 Minutes | Dec. 6 40 Under 40 | March 28, 2024 Nomination deadline | Nov. 29 Coolest Things Made in the Ozarks | April 2024 Nomination deadline | Dec. 13 SBJ.net/events There are many different strategies to handle assets, and no single solution applies to all people. Asset Transfer
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