DOT provides $2.5 million to South Carolina to repair hurricane-damaged roads.

DOT provides $2.5 million to South Carolina to repair hurricane-damaged roads (C)1994-2000 M2 COMMUNICATIONS LTD RDATE:09022000 U.S. Secretary of Transportation Rodney E. Slater today announced that South Carolina will receive $2.5 million in emergency relief funds to repair federal-aid roads that were damaged on Sept. 15, 1999 as a result of Hurricane Floyd. “President Clinton and Vice President Gore recognize the damage that South Carolina has suffered because of the hurricane, and these funds will help repair i

Curriculum alignment and assessment: An adaptable model

This study is a comparative analysis of the transition experiences of special needs students of Georgetown, South Carolina and the transition experiences of special needs students in the National Longitudinal Transition Study (NLTS, 1993). Transition is defined as the movement of special needs students from high school to work. Special Needs students are defined as those students included in the 1990 Americans with Disabilities Act. The study looks at school location, race, gender, and socioeconomic background as predictors of the nature of the student’s transition experiences.

This article discusses curriculum alignment and assessment in Dorchester School District Four, located in St. George, South Carolina. Although the curriculum and assessment model was applied in South Carolina, it has standard components that are applicable to any school district within any state. This article provides these beneficial elements; purpose or rationale for the project, planning steps, political considerations, elements of training for teachers and other participants, implementation phase of project activities, and accountability for program participants and assessment for project results. Most important, concise definitions are provided to assist non-curriculum professionals with terminology. Additionally, a case study is provided to demonstrate the application of the model.

The content of this article may be informative and useful to assistant superintendents of instruction, curriculum coordinators, or classroom teachers involved in curriculum and assessment revision activities. Classroom teachers may find the material helpful in developing daily lesson plans that are correlated to standards-based curriculum.

Definitions

It is helpful to understand the definitions of terms used in this article because many connotative meanings may vary from writer to writer. The terms used in this article are defined as follows.

Strands – The major categories that the standards are developed to represent. For example, South Carolina has six

Strands for mathematics, which are as follows:

A. Number & Numeration.

B. Numerical and algebraic concepts and operations.

C. Patterns, Relationships, and Functions.

D. Geometry and spatial sense.

E. Measurement.

F. Probability and statistics.

There are four Strands for Language Arts, which are as follows:

A. Using language to learn.

B. Using the conventions and forms of language.

C. Using language to communicate.

D. Appreciating language.

Content Standard -_Outline what all students in the district must know and be able to do in order to succeed in the work environment or post secondary education. Consider this example:

Strand – Using language to learn

Content Standards:

1. Students use language processes and strategies for continuous learning.

2. Students use personal experiences, the printed word, and information gained from observation as a Basis for constructing meaning.

3. Students use language to clarify thought.

4. Students synthesize information from a variety of sources.

5. Students critically analyze and evaluate language.

Descriptors – Are more specific statements relating to one or more content standards in the strand. Consider the descriptors from the above standards:

1. Listen and respond appropriately to oral information.

2. Use oral and written language to acquire new information and to reflect on and clarify one’s own learning.

3. Apply language styles to solve real-world problems individually and with others.

4. Select, access, and use information from a variety of print and non-print sources across the curriculum.

5. Use appropriate reading and vocabulary strategies to understand information from a variety of sources.

Rationale

All students can learn when they receive effective instruction. Effective instruction is a direct result of a standards-based curriculum with definitive assessment, which provides feedback for curriculum development and revision. The educational leaders in South Carolina, in 1997, recommended the adoption of grade level standards in reading/English/language arts because they believed that all students could learn when they receive effective instruction and assessment. After committee input and review, the State Board of Education approved the mandate to implement grade level standards as well as Gateway Standards, which are standards written by teachers. The Gateway Standards and the grade level standards were combined. The South Carolina State Board of Education made a concerted effort to keep parents and the general public informed about the new educational initiative to improve the quality of education in South Carolina. Continuous communication with parents and the public pertaining to the positive impacts of South Carolina’s aligned curriculum were made via multiple media sources (Nielsen, 1998).

The State Board of Education passed a requirement to implement curriculum assessment in 1999. The assessment instrument is called Palmetto Achievement Challenge Tests (PACT) in reading/English/Language Arts. The reading/English/Language arts standards are tested by PACT. While some PACT items assess more than one area, PACT actually includes four types of test items. Nielsen (1998) identified these types of tests for PACT.

Types of Test Items

1. Multiple-choice Items – Students must choose from several alternatives. The students in grades one (1) through seven (7) have four options. While students in grade eight (8) have five (5) options. Scoring for this area reflects one (1) point for each correct answer.

2. Open-Response Items – Students must provide concise narrative responses, which may be as short as one sentence. For example, students may be asked to identify the main idea of a story or they maybe asked to fill in blanks. Scoring for this section reflects a value of one (1) point for each correct answer.

3. Open-Ended Items – These items are similar to Open-Response Items, but they often require a more detailed response from students. For example, students may be required to write a topic sentence and supporting sentences to either analyze or evaluate a particular passage or narrative.

4. Extended-Response Items – Students are required to give detailed written responses. The response maybe several paragraphs, depending upon the grade level of students being tested. The written response from students maybe expository, persuasive, descriptive, or narrative.

Planning Stage

The planning stage was critical to the success of the project because it included the pertinent activities and tasks, resources, and timelines. Criteria for faculty selection were developed, a Teacher Academy was organized, a consultant was employed, and a definitive plan was developed to ensure implementation and accountability.

The Planning Chart below reflects the major activities of the project, which serves as the core of the model for curriculum alignment and assessment.

Planning Chart Activity

Activity

* Review district’s preparation for curriculum, obtain Board support hire consultant, review policies, secure fiscal resources

* Make recommendations for procedure as needed

* Recruit teachers for Curriculum Academy

* Organize Curriculum Academy

* Conduct orientation for teachers/curriculum specialists

* Develop and implement accountability standards

* Secure community support as needed

* Assessment of current curriculum/consult with professionals and others as needed

* Ensure teachers input/involvement

* Train teachers/curriculum specialist/monitor all related activities

* Develop assessment items per standards and monitor process

* Produce final document with aligned curriculum and assessment

In a related article, “Planning for a Standard-Based Curriculum,” 2001, it was stated that there are ten essential processes in implementing a standards-based curriculum, which are as follows:

1. Reviewing the district’s readiness for curriculum development by examining the standards, policies, and people involved in the process.

2. Preparing a district comprehensive plan of rotation and development of each subject.

3. Selecting subject areas tasks forces to produce the written curriculum documents.

4. Planning the needed staff development ad resources for curriculum activities.

5. Communicating curriculum activities to all those appropriate in the school community, and securing necessary approvals for each activity as needed.

6. Developing a district format for all curriculum documents and providing needed resource documents for subject area task forces.

7. Making recommendations for procedures in line with district policies on curriculum.

8. Arranging for the assessment of the present curriculum prior to the revision process conducted by the subject-area task force (mapping is one procedure which may be considered-Jacobs, H.H., 1997).

9. Monitoring task force activities and making recommendations to central office and to the board regarding approval of the documents produced by the various subject area task forces.

10. Identifying and arranging for the curriculum monitoring and education process.

Implementation

The planning activities are identical to those recommended as essential for implementing standards-based curriculum, with two critical additions. First, the alignment and assessment will require additional time and fiscal resources to ensure completion in a reasonable time period. The time and support of the Board of Trustees, superintendent, staff, and teachers are necessary, and must be included in the strategic plan of the district. Secondly, the accountability must be definitive and understood by all pertinent individuals. Duties and responsibilities must be formally developed and agreed upon.

A district’s strategic plan should reflect the goals, priorities, action plans, and allocation of appropriate resources to effectively accomplish its primary priorities. It is therefore critical to the success of the curriculum alignment and assessment project that it is stated as the number one priority. Second, district-wide employees will not devote the time, effort, and consistency to the project unless it is a priority for the school district and recognized as such.

Who is responsible for planning, coordinating and evaluating activities associated with the project? Who is responsible for developing and submitting reports? Who is responsible for staff development? Who is responsible for test item development? Who is responsible for identification and allocation of funds? Who is responsible for developing strands and standards? Who will serve as the quality control agent? These and many other pertinent questions must be answered during the planning phase of the project. Therefore, the project must include basic accountability measures to ensure the timely completion of all pertinent activities. The following case study demonstrates the implementation of activities in the planning chart.

Case Study

The school district discussed in this article is Dorchester School District Four, which is located about an hour’s drive South of Charleston, South Carolina, in the small town of St. George. It is a small rural district, which has limited fiscal resources. In fact, the total student population is roughly 2,500. The curriculum was loosely organized, and accountability was ambiguous to an outside observer. Dorchester Four School District possessed two definitive strengths. First, most employees attended public school in the District and are committed to the children. Second, the members of the Board of Trustees are totally committed to the success of all students enrolled in Dorchester School District Four.

The superintendent, in her first year, embraced the mandate from the State Board of Education as a qualitative improvement measure. She informally met with chair of the Board of Trustees and other key members to explain and clarify the mandate from the State Board of Education to implement an aligned curriculum with effective assessments. The most challenging issue was the needed funds to implement the project. After numerous meetings, an agreement was reached about a fiscally sound method to secure the necessary funds, which was to modify a grant to include these new initiatives. The superintendent recommended and the Board of Trustees approved the employment of a national consultant to provide leadership for this major undertaking.

Pursuant to numerous discussions, the superintendent and the consultant agreed that the strategic plan must be modified to reflect the State Department’s mandate to align the curriculum and implement effective assessment. Following the modification of the strategic plan, other modifications were made in job descriptions, and trustees, administrators, teachers, and staff accepted specific accountability standards. Teachers and non-teachers were carefully selected and trained in curriculum alignment and assessment through workshops, training materials developed by the consultant, and pertinent conferences. For example, each participant mastered the process of aligning strands, standards, and descriptors unique to Dorchester School District Four with the grade level required by the State of South Carolina.

The teachers were motivated for altruistic reasons, but the superintendent provided stipends for those who worked during the summer. The consultant developed and taught a graduate course via The Citadel University, located in Charleston, South Carolina. The teachers participating in the project during the regular school year received three hours of graduate credit based upon the completion of the following course objectives:

1. Identify South Carolina Standards for his/her discipline.

2. Correlate the South Carolina Standards with local standards, primary and secondary resources.

3. Identify exemplary teaching strategies for each required standard.

4. Match appropriate resources/primary and secondary, with the skills and competencies.

5. Develop appropriate test items, which reflect skills and competencies of required standards.

The curriculum specialists served as curriculum leaders for each of the schools to which they were assigned. The one exception was the assignment of the assistant principal of the district’s high school. Through the astute leadership of these individuals, teachers wrote effective assessment items for the curriculum that they aligned.

Conclusion

Using the model described in the planning chart, Dorchester School District Four trained its teachers in curriculum alignment and assessment, which resulted in a comprehensive manual that reflects grade level strands and standards for the local and state curriculum in South Carolina. By May 15, 2002, the teachers had developed a comprehensive manual reflecting effective test items, which are correlated with the Palmetto Achievement Challenge Tests. Currently, classroom teachers are developing lesson plans and teaching grade level standards in every classroom in Dorchester School District Four. Teachers are demonstrating that all students can learn when they receive effective instruction based upon a standards-based curriculum with definitive assessment.

This model may be used in small, medium, or large school districts, with some modifications.

MSCI splits big Southern Chapter into 3 units – Steel – Metals Service Center Institute

PITTSBURGH — The Metals Service Center Institute is dividing its large Southern Chapter into three smaller units.

Robert Weidner, president and chief executive officer of Chicago-based MSCI, said the move was consistent with the organization’s renewed focus on improving chapters as forums for meaningful networking and educational experiences for members.

“The geographic reach of our former Southern Chapter, coupled with the increased demands on members’ time, have necessitated this strategic realignment,” Weidner said.

The MSCI Southern Chapter stretched from Maryland to Louisiana. Under the realignment, MSCI’s board of directors approved the formation of three new chapters, tentatively identified as South Atlantic (North Carolina, South Carolina and Virginia), Deep South (Alabama, Georgia, Florida’s panhandle and eastern Tennessee) and Mid-South (Arkansas, Louisiana, Mississippi and western Tennessee).

Details of the new structure will be finalized by senior volunteer leaders and MSCI staff during the next several weeks.

A task force of member volunteers will review and finalize the new chapter plan. Members of the task force steering committee include Bill Jones, president and chief executive officer of O’Neal Steel Inc.; Bert Tenenbaum, president and chief operating officer of Chatham Steel Corp.; and Stephen Makarewicz, president, South Region, Ryerson Tull Inc. All three are directors of MSCI.

“This is an exciting time for all our members in the South and for everyone involved in MSCI’s chapters as it marks a milestone in our rich history,” said Jack Malec, president of Tri-Western Metals and chairman of MSCI’s Chapter Leadership Council. “This new structure demonstrates the institute’s commitment to its chapters and its willingness to act decisively.”

MSCI has about 300 service center members and 80 associate members. The organization said its members comprise the largest single bloc of steel purchasers in North America with about 300,000 manufacturers and fabricators as customers.

Carolina Fence

A Habitat That Promotes Both Wildlife, State Pride As a symbol of our heritage, the Carolina Fence is the perfect centerpiece for public and private habitats throughout South Carolina.–Angela Viney, executive director, South Carolina Wildlife Federation

It’s a simple idea, really, but one that reflects the natural and cultural history of South Carolina: a split-rail fence entwined with some native plants inviting to wildlife and sporting a birdhouse that beckons to the state bird, a Carolina wren.

It’s also a habitat design that the South Carolina Wildlife Federation (SCWF), one of NWF’s affiliates, is promoting for backyards, schoolyards, workplaces, public buildings, city parks and roadside rest areas throughout the state.

The Carolina Fence is the brainchild of the Wildlife and Industry Together (WAIT) team that travels the state helping businesses create wildlife habitats. The WAIT partners–including SCWF, the South Carolina Department of Natural Resources, Duke Power and the National Wild Turkey Federation–worked with the Garden Club of South Carolina to develop the design.

“Each element of the habitat brings to the setting a natural or cultural value,” says John Garton, a member of the SCWF board and the WAIT team. The rail fence was commonly used by South Carolinians in the late 1800s and early 1900s to comply with a state law that required the fencing in of livestock, he notes. Recommended plants, such as the state flower–the yellow jessamine–are inviting to the state butterfly–the eastern tiger swallowtail–as well as other insects and birds. The birdhouse is sure to attract the ubiquitous Carolina wren which inhabits the state year-round. For an aesthetic element to round out the habitat, the team suggests a block of blue granite which happens to be the state stone. SCWF reports that the fence concept has proven immediately popular with South Carolinians.

A Guide to the Wildflowers of South Carolina

Pittman, BertPorcher, Richard Dwight and Douglas Alan Rayner. 2001. A Guide to the Wildflowers of South Carolina. University of South Carolina Press, Columbia, South Carolina. 544 pages. 1-57003-437-0 cloth, $49.95; 1-57003-438-9 paper, $29.95.

Building upon the first author’s Wildflowers of the Carolina Lowcountry, now out of print, Professors Porcher and Rayner have expanded and improved their Guide to cover the entire state. Over 680 color prints illustrate species and communities, many of which have not been well-shown before.

The authors guide the reader logically and handily to various wildflower species by outlining the state’s major physiographic regions. Physical factors and the vegetation structure are discussed and illustrated for each of the 47 different community types. How these natural groups or plant communities sort themselves out across the Carolina landscape is surprisingly well circumscribed by the states’ underlying landforms, geology, and soils. For example, the Fall Line Sand Hills is a well-recognized and prominent physiographic province of the Midlands, and is home to several related but distinctive plant communities: longleaf pine-scrub oak forests, Atlantic white cedar swamps, and pocosin community types. Sand, drought, the evergreen habit, and fire are discussed as factors that help adapt these communities to our sand hill landscape.

Although the ecological orientation and discussions are strong and useful throughout, the authors remain true to their subject-wildflowers. Take for instance one of my favorite native wildflowers, Macbridea caroliniana (Walter) Blake. Latin scientific names often discourage the enthusiastic amateur. But, the authors have conveniently included a Latin pronunciation guide, which includes the basics of phonics and spelling. Also given is the common name; and in the case above, the Carolina bird-in-the-nest, is illustrated with its uncommonly large, showy mint flower subtended by a distinctive cup-like calyx. As readers will discover, this rare plant species of federal concern grows in bald cypress-tupelo gum swamp forests in the coastal plain. From the author’s very fine summary of the state’s botanical history we further learn that this plant was named for Dr. James McBride, an accomplished physician-naturalist from the Low Country, by one of America’s earliest and most respected botanists, Thomas Walter, who first applied the Linnaean system of binomial nomenclature in his guide to the plants of the Carolina Lowcountry in his Flora Carolinana in 1788.

Porcher and Rayner take their Guide beyond typical wildflower books and suggest to the reader where one may locate, observe, and appreciate these communities and their typical wildflower species all across the state. By region and county, they describe over 50 federal, state, and private natural areas open to wildflower enthusiasts, and give location directions. Their book is thus a compendium of some of the state’s most important wildflower refuges.

Also included are indexes for scientific names, common names, and a general index, as well as a comprehensive bibliography to the scientific botanical literature of the state, addresses to the state’s major herbaria, taxonomic keys and natural history of select groups of plants of special interest such as the trilliums, carnivorous, and poisonous plants, and selected topics in plant community classification. I found the book with its many plates and figures to be exceptionally well organized, with simple color-coding of major subject heads and sequential numbers of all figures and photographs. All the various plant biology and ecological concepts are introduced and described early on under the subject head of “Natural Wildflower Communities,” making this work a suitable textbook for a general course on field botany and natural areas.

Although the emphasis of this book is on wildflowers, those readers with a general interest in natural history, nature-tourism, local history, natural landscapes, archaeology, and human impacts upon the Palmetto state will find this book useful and informative. So, the next time you are trying to take the back way to Myrtle Beach through the Pee Dee by way of US 378 and are craning your neck for the old (and venerated) sign for the “Stop and Blow Drive-In” restaurant, take a copy of this book along. You won’t regret it. (Edited version, used with permission; originally published in the Newsletter of the South Carolina Native Plant Society.)-BERT PITTMAN, S.C. DEPARTMENT OF NATURAL RESOURCES, PO BOX 167, COLUMBIA, SOUTH CAROLINA 29202.

Golf Trust of America CEO Reports On Hurricane Floyd Impact

In the aftermath of Hurricane Floyd, which hit Oak Island, North Carolina, on Wednesday, September 15, 1999, W. Bradley Blair, II, president and chief executive officer of Golf Trust of America, reported minimal impact on Golf Trust of America facilities in the coastal areas of Florida, South Carolina and Virginia.

Blair stated, “Hurricane Floyd brought high winds which left tree limbs and debris to be cleared on our coastal courses in Florida, South Carolina and Virginia. Golf course staff were able to return the day after the hurricane hit North Carolina, and we were open for golf one day later on Friday. One of the advantages of owning upscale properties is their ability to function under extreme circumstances by having the best available resources, and especially, management staff. Furthermore, it’s important to note that hurricane season falls during the off season for our Southeast courses making any impact more manageable.”

Ray Finch, president of Emerald Dunes Golf Group, and operator of Golf Trust of America courses, Emerald Dunes, Cypress Creek and Polo Trace, located in West Palm Beach, Florida, added, “We expect to lose one week of normal business, but we are fortunate that hurricane season falls during our off season. Even if our area received a direct hit from a large hurricane, our courses are not close enough to the ocean to experience a storm surge. Our primary concern would be those hotels which send us golf groups, but we have a strong tourism bureau staffed with people and budgets to get the message out that the area is open and ready for visitors.”

Golf Trust of America headquarters, located in Charleston, South Carolina, received only sustained winds of 50 to 60 miles per hour from Hurricane Floyd. Blair emphasized, “We were prepared to reopen our office and work from Charlotte the day after an evacuation was ordered by the governor. Obviously, our main concern is for the golf courses and staff, and in that regard, we were very fortunate.”

The last hurricane to make landfall in South Carolina was in 1989 when Hurricane Hugo crossed between Charleston and Myrtle Beach. Gary Edwards, managing director of Coastal South Carolina USA, commented, “Tourism is very important to our state, and since hosting The 1991 Ryder Cup, we have made golf a high priority. In fact, following Hurricane Hugo, the U.S. Department of Commerce funded grants to Coastal South Carolina USA, Myrtle Beach Golf Holidays, Myrtle Beach Area Chamber of Commerce, Charleston Area Convention & Visitors Bureau and South Carolina’s Department of Parks, Recreation and Tourism, for the promotion of international tourism to counteract any negative publicity. Obviously, we prefer to never experience another hurricane, but we are better prepared today to protect our tourism industry as a result of Hurricane Hugo ten years ago.”

Established in 1997, Golf Trust of America Inc. is a Charleston-based golf company, which owns or has interest in 47 golf courses across the country. Golf Trust is organized as a self-administered real estate investment trust, or REIT, formed to capitalize on the consolidation opportunities in the ownership of golf courses in the United States. The company’s strategy is to acquire high quality golf courses and lease them to qualified third party operators, including affiliates of the sellers.

More information on the Company and associated golf courses may be found on its web site at http://www.golftrust.com. Golf Trust stock is publicly traded on the American Stock Exchange (Amex: GTA).

Certain matters discussed in this press release may constitute forward-looking statements within the meaning of the federal securities laws. Actual results and the timing of certain events could differ materially from those projected in or contemplated by the forward-looking statements due to a number of factors including general economic conditions, competition for golf course acquisitions, risks that pending acquisitions may not close, the availability of equity and debt financing, interest rates and other risk factors as outlined in the Company’s SEC reports, including the prospectus dated November 4, 1997 and the annual report on Form 10-K(A) dated March 31, 1999.

South Carolina Public Service Commission Encourages FCC to Promote Local Phone Competition

The South Carolina Public Service Commission, which regulates BellSouth, has encouraged the Federal Communications Commission to recognize the importance of state regulation to drive local phone market competition. The FCC recently initiated a Triennial Review of federal rules that require BellSouth to lease its network (called Unbundled Network Elements, or UNEs) to competitors. The South Carolina PSC has filed related comments, reinforcing that states have the authority to require BellSouth to lease its network, thereby ensuring availability of competitive local service options to South Carolina’s citizens.

“The FCC is considering action that could reduce competitive alternatives for local phone service,” says Rodney Page, Vice President of Marketing and Strategic Development for Access Integrated Networks, a Southeastern-based Competitive Local Exchange Carrier (CLEC). “State regulators want to ensure competition thrives,” says Page. “State authorities are in a better position than the FCC to determine what’s best for their own citizens.”

Because the FCC has no formal hearing process, numerous states have filed documents to make sure their position is represented. Public service commissions or agency representatives in South Carolina and Louisiana are among those from the Southeast that have filed comments with federal authorities.

“It has been six years since Congress mandated monopolies like BellSouth lease their network to competitors, and the statistics clearly show this is the path to local competition,” explained Joe Gillan, a Florida-based telecommunications consultant. “When competitors can lease the entire network, it results in competitive choice for residential customers and smaller businesses. It would be foolish for the FCC to limit BellSouth’s obligations now that local competition is beginning to emerge.”

According to FCC statistics, UNEs are now the most dominant method of local telephone service competition, with UNE competitors adding nearly 2 million lines nationally during the first half of 2001. One distinct advantage of this form of service is the benefits it brings to underserved and geographically dispersed markets, not just large businesses in major cities.

“Just as consumers and businesses are beginning to experience the benefits of competition, the FCC seems to be shifting its stance,” remarks Page. “Numerous states recognize the advantages UNE brings and want to ensure continued availability of this successful mode of competition. Access Integrated Networks supports the South Carolina PSC’s efforts.”

About Access Integrated Networks, Inc.

Access Integrated Networks, Inc. is a rapidly growing Competitive Local Exchange Carrier (CLEC) providing telephone services to small business customers in nine Southeastern states. Established during 1996, the privately held company is headquartered in Macon, Ga. In addition to local telephone service, AIN offers long distance and toll-free service, as well as travel calling cards and consolidated local and long distance billing.

Former Thrift execs aim to revive Kerr – Thrift Drug; Anthony Civello, Richard Johnson, Bill Baxley, B. Josey Dorsett; Kerr Drug

DURHAM, N.C. — Former Thrift Drug executives Anthony Civello, Richard Johnson, Bill Baxley and B. Josey Dorsett have teamed up with other investors and proposed to purchase 164 drug stores based in North Carolina and South Carolina from J.C. Penney for the purpose of starting a new drug chain.

The chain, to be called Kerr Drug, will comprise stores located in North Carolina and South Carolina and capitalize on the strong name recognition the Kerr name has in the region. The stores, which the Federal Trade Commission has required J.C. Penney to sell to a single buyer, are located in Charleston, S.C. and a range of cities in North Carolina stretching from the west to eastern part of the state, with concentrations in Charlotte, Greensboro and Raleigh-Durham. Thirty-four of the stores currently operate with the Kerr Drug name; 130 of them operate with the Rite Aid name.

This deal to buy the stores and start a new drug chain has been in tile works for several months. It revives a well-known drug store brand name, Kerr Drug, in this region, and pools together several executives from Thrift. who lost their jobs when parent J.C. Penney acquired Eckerd Corp.

The Kerr Drug name has been established in North and South Carolina since 1951 when Banks Kerr started the chain. In 1995, he sold the 97-store chain to Thrift, which assumed management of the operations but retained the Kerr name on the stores. J.C. Penney, which will still own 68 Kerr stores in North and South Carolina after this transaction, plans to convert all of the remaining Kerr stores it owns to the Eckerd name and merchandise mix this year.

Civello, previously president of stores at Thrift Drug, will become president and chief executive officer of Kerr Drug. Johnson, previously regional vice president of operations for the Carolina area for Thrift, will be executive vice president and chief operating officer. Baxley, previously director of merchandising, marketing and operations for the Kerr Drug stores, will be vice president of merchandise and marketing. At press time, it was not clear what role Dorsett, previously vice president of facilities planning and construction for Thrift, will have in the new company.

Kerr Drug will be owned by Laurence Ross of Ross Moulds Inc. (51 percent) and Civello, Baxley, Johnson, Dorsett, Alan Brundage, Briony Voorhees, Diane Eltezer, Edward Edmunston and John Ghaznavi (49 percent).

The chain will be headquartered in Durham, N.C. and position itself as “the local drug store/pharmacy chain” in the Carolinas, according to documents filed with the FTC. It will be linked with North Carolina Mutual Wholesale Drug Co., a buying group whose independent drug store members operate 301 stores in North Carolina, 12 stores in South Carolina and 35 stores in Virginia. Kerr plans to become a member of N.C. Mutual.

The formation of the chain is subject to approval by the FTC as it comes as a direct result of an agreement the FTC reached with J.C. Penney to divest these stores. After it approved J.C. Penney’s acquisition of Eckerd, the FTC required the company, a formidable operator of stores in the Carolinas, to sell these stores to a single buyer to retain competition in Charlotte, Greensboro, Raleigh Durham and Charleston, South Carolina.

Over the past four months, J.C. Penney and its financial advisor made contact with or initiated discussions with more than 30 potential purchasers of the stores, according to documents filed with the FTC. Civello was the only prospective purchaser willing to acquire all the stores and operate them as a single chain, according to the documents. The FTC will accept public comment on J.C. Penney’s agreement with Kerr Drug until April 23 and will consequently issue its ruling on the deal.

Despite the challenges retail drug chains now face in the current era of mega chains, management at Kerr Drug has taken several steps to ensure its competitive viability.

“By expanding the size of N.C. Mutual, Kerr “will strengthen significantly N.C. Mutual’s buying power and thereby strengthen significantly its own buying power,” J.C. Penney attorneys wrote in the divestiture documents. Further Kerr Drug’s “excellent coverage of the geographic areas targeted by the [FTC's] order, combined with the benefits of its N.C. Mutual affiliation, will ensure that Kerr Drug will be able to compete effectively for business as a retail pharmacy network, meeting one of the goals of the order,” the document said.

In addition to buying the stores, Civello’s team has also agreed to buy from J.C. Penney all rights to the Kerr Drug name, a distribution center in Raleigh, N.C., inventory and some systems. J.C. Penney has also agreed to assign or transfer lease agreements to Kerr Drug and to continue to provide purchasing and distribution support for the stores through July.

RECIPE FOR SUCCESS

Regional bank’s purchase of agency leads to success for both organizations

By utilizing the talents and people of a well-run insurance agency to serve the commercial and personal insurance needs of its banking clients, The South Financial Group (TSFG) of Greenville, South Carolina, has whipped up a recipe for successful synergy. It is a recipe that the $10.6 billion financial services company hopes to use to purchase other agencies in its key markets within South Carolina, North Carolina and Florida.

“Through our relationship with Gardner Associates of Columbia, South Carolina, we’ve learned that the most important ingredient in our acquisition strategy is the continued autonomy of the agency,” says Wade Shugart, executive vice president of the Financial Services Division of TSFG. “We wanted an agency with a successful, established presence in its market as well as seasoned professionals who would continue running the agency. We found both those ingredients in Gardner Associates, and we will look for this same winning combination in future acquisitions.”

Barr Gardner, president of the Gardner agency, says the same criteria applied to his search for a banking partner. “It was a very good fit, both in terms of geography and marketing strategy,” he says. “TSFG is a locally domiciled banking company whose headquarters are in our specific marketing area. Moreover, they match our marketing focus as a middle market commercial lines agency.

“Because of the excellent synergy between commercial lending and our production teams, we have been able to greatly increase our client base,” Gardner says. “We work closely with the bank to offer services to their clients.” Gardner Associates was formed by Barr Gardner in 1988 and currently has 20 employees. Gardner Associates’ staffing model is changing dramatically to keep up with the current growth presented by this opportunity.

Partnership agreements are accelerating

In South Carolina and throughout the Southeast, more and more banks and insurance agencies are becoming partners, either through acquisition or some kind of a joint venture-type agreement, Gardner says. “In our state, the trend of mergers continues to accelerate. We wanted to choose our partner and have that partner help develop our perpetuation plan.”

Overall, TSFG’s determination to acquire insurance agencies is one that is shared by a growing number of banks and bank holding companies throughout the United States. It is a strategy that is dramatically boosting non-interest income for banks.

For example, the American Bankers Insurance Association released a study last fall that showed that, since 1999, bank insurance sales have grown steadily, amounting to a whopping $69.5 billion in 2002. Interestingly, while personal lines and life/annuities still command the lion’s share of sales, the study showed that commercial lines are the fastest growing category of sales, now accounting for nearly 17% of all sales.

This holds true for TSFG. Since acquiring Gardner Associates 18 months ago and Allied Insurance in November 2003, TSFG has boosted its non-interest income substantially. In 2003, insurance income was $3.6 million and it is expected that amount will double for 2004.

Overall, TSFG, like other banking companies in its geographic area of South Carolina, North Carolina and Florida, is in a growth mode. TSFG, formed in 1986, is the bank holding company and operates as Carolina First Bank in North and South Carolina and as Mercantile Bank in Florida. TSFG has acquired four banking entities in the Carolinas and Florida over the past two years. Currently, TSFG operates 134 bank branches throughout the three-state area and was scheduled to acquire two additional Florida banks in July of 2004.

Success through trial and error

TSFG’s success with a bank/insurance strategy didn’t come easy or on the first try. The current strategy was developed through trial and error over a seven-year period.

According to Shugart, the initial drivers for seeking out an insurance partner were threefold:

1. All of its commercial and retail banking clients are purchasers of insurance products.

2. The bank wanted to diversify its revenue stream to become less of an interest margin-dependent organization.

3. A competitor had been successful with an insurance strategy.

Initially, TSFG entered into a joint venture with an insurance agency that did a great job, but at the end of the day there was not enough reward for the effort. “We then took a step back and used an Atlanta-based consulting firm, Reagan & Associates, to examine our existing insurance (personal lines) operation. We were determined to either exit the insurance business or to do what it takes to make it a more successful line of business for our company,” Shugart states.

In the final analysis, TSFG decided to move forward based on the information provided by Reagan & Associates. Since then, management has developed an aggressive acquisition strategy that seeks to establish an agency presence in each of its major markets over the next three years.

In March, TSFG hired Tom Fields to head a newly formed Insurance Division and to implement the insurance agency acquisition strategy. Fields, executive vice president and director of insurance, says that TSFG has a very clear vision of what kind of agencies it is looking to buy. “We’re looking for high-quality agencies that are healthy and well managed with revenues of between $1.5 million and $15 million.” Fields came to TSFG having spent 12 years with BB&T, a bank that is a leader in acquiring insurance agencies.

“What we don’t want is an agency that has problems or one that lacks the quality people to be successful as an independent agency or to be part of our expanding team,” he says.

What does TSFG bring to the table in an acquisition scenario? Shugart says it mainly provides additional financial resources. “We can provide capital to grow the business, bring in additional producers and expand the marketing reach of the agency. The relationship would also potentially give the agencies better access to insurance markets and higher contingency levels than they may get individually. By partnering with our bank, the owners can realize the market value of their business and realize a clear continuation for their associates and clients.”

Asked what the biggest surprise was in getting into the insurance business, Shugart mentions the myriad regulations; but mostly, he says, it is the variety of technical standards and interfaces. “Building technical support has been the most challenging aspect for us. We have many talented banking people in the technology area; however, in insurance agencies, it is the insurance markets that drive the technology, at least the interfaces for upload and download. All insurance companies are different with their own proprietary systems, and agencies are required to take a more reactive role.”

Barr Gardner agrees. “The technology piece has been the most difficult issue for us as well. The bank has a technical team that has taken on that role for the agency.”

What advice would Gardner give other agencies thinking about a bank/agency partnership? “Pick your partners wisely. Most importantly, look for a banking partner with a similar marketing strategy.”

TSFG believes that a solid recipe for a successful partnership between banking and insurance is always about the people. “The critical element is the character of those who run the agency,” says Shugart. “We’ll look for that every time. The rest is numbers and business issues which are made easier when working together with a professional team.”

He repeats that retaining the agency’s autonomy is a critical element. “Gardner Associates has totally retained its identity. The agency has its own client base and does its own prospecting, though we do make personal introductions to our best bank clients. Our strategy is to look for synergies, help where we can, then get out of the way.”

MAKING IT WORK

There is more than one way to form a bank-insurance agency alliance, and over the past 15 years or so, many different ways have been tried – some proving more successful than others.

Some banks have developed agencies from scratch; others have formed joint ventures or alliances with an existing agency or, like TSFG, have bought an agency outright. Still other banks have hired an agent with his or her own book of business to come work for the bank as a salaried employee. Regardless of the type of alliance that is formed, there are several ideas that agents can use to help ease the transition:

S.C. Unit Is Among Fastest Blue Cross Claims Processors.(Blue Cross and Blue Shield of South Carolina)

COLUMBIA, S.C. — Blue Cross and Blue Shield of South Carolina is one of the fastest claims processors within the national organization, ac cording to a recent report by Blue Cross and Blue Shield Association. It says the South Carolina unit processed 9.1% of all claims within 30 days of receipt during the second half of 2000. “This is an important measurement because the speed with which we pay claims affects doctors, hospitals and other medical professionals across the state,” says Thomas Faulds, president and chief operating officer of the South Carolina