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North Florida Markets
Its Slow-Pace Appeal

The farther north one goes in Florida the more one realizes how diverse the state is, both in terrain and lifestyle. In this part of the state, there is more of a mid-South feel, a slower pace of life, more rural, noticeably less Latin influence, not as much of the cultural diversity that's found farther south.

Tallahassee is the seat of state government and the home of two major universities, Florida State University (FSU) and Florida A&M. Northern Florida is also the site of Gainesville, the home of the University of Florida (UF).

"Gainesville has a huge medical establishment because the university's medical school is there," says UF economist Lenze. "And Jacksonville is not a typical tourism/retirement community. There are a lot of regional offices for banking, financial and insurance companies. As long as the national economy hums, Jacksonville will do well."

Like its sister cities to the south, Jacksonville is working to diversify its economy. But its location makes it a natural site for distribution centers that serve the Southeast and the rest of Florida.

"It's been a big year for us," says John Haley, vice president for business recruitment for the Jacksonville Chamber of Commerce. "We've seen maybe a little slowdown from 1997-98. We're maybe seeing fewer deals, but the ones we are seeing are higher in impact, jobs and capital investment. We're in a very good market position in the Southeast. There are 35 million people in the Southeast, depending on how you define it, and 15 million are in Florida."

Jacksonville has a number of advantages in luring business. It is a shipping center, with two deep water ports (the Port of Jacksonville and the Port of Fernandina). The city is well served by three major railroads (CSX, Norfolk Southern and Florida East Coast), which provide an intermodal transporation system. And the area has three military bases that, according to Haley, discharge 6,000 people a year, 5,000 of which stay in the area.

Tallahassee is another significant city in the Florida Panhandle, and it has attracted some significant companies, often because their founders were already residents.

For instance, Advanced Systems Design is something of a high-tech temp agency. The company's employees help develop computer systems and solve related problems primarily for state governments on a contract basis, ranging from six months to four years. Founded in 1979, Advanced Systems now has 150 employees, some in offices in Charlotte and Louisville, and gross annual sales of $16 million.

"We became phenomenally successful in the last three or four years," says John Adams, the company's vice president for administration. "There was a time when we were doubling gross volume and employees every 12 months."

Adams says the company recruits employees from across the country. Of course, the company is less likely to attract young, single computer hotshots than young married couples who want a comfortable, stable community like Tallahassee to raise kids.

Another company that has prospered in Tallahassee is Datamaxx Applied Technologies, which primarily provides software to police agencies (including the U.S. Dept. of Justice) that's used to access various law enforcement data banks. Jobs at Datamaxx start at $50,000. It is another local, homegrown business. It employs 63 locally and 72 spread across five other states.

"It is hard to hire because there are a lot of us chasing highly qualified people," says Kay Stephenson, the company's CEO. "And Tallahassee doesn't attract the unmarried. They want to go to a metropolitan area. But after they get married, they want to move back here. This is an excellent place to relocate because of the modest cost of living."

There are also growing research facilities at FSU, which should help spur more growth in Tallahassee. And major building programs are under way at FSU and Florida A&M. FSU is in the process of adding a medical school, which should have a major impact on the community.

So, too, should the SouthWood development being built by the Jacksonville-based St. Joe Co. (through its Arvida subsidiary) on 3,186 acres (1,290 hectares) in south Tallahassee. Ground was broken in July on the project, a planned community that will have 4,250 homes, retail stores and office developments. With 1.1 million acres (445,500 hectares) in Florida -- which includes 40 miles (64.4 km.) of coveted Gulf Coast beachfront property -- St. Joe is the largest private landowner in the state. A big part of the company's development strategy is to help attract industry to Florida in order to market its housing and business developments.

Some think the SouthWood project will help transform Tallahassee and open up a section of town that to now has gone largely undeveloped.

"They (St. Joe) understand that you have to create jobs to build houses," says Wayne Harris, vice president for technology and development with the Economic Development Council of Tallahassee. "Our main businesses are home grown, and they're using information technology to drive their growth. The Internet is making it easier to translate that into viable companies.

"We have a lot of intellectual capital here. About 37 percent of the adults here have a college education or an advanced degree. That's very high. It makes us one of the most educated communities in the country. We've got an awful lot going on here. Tallahassee has been considered a sleepy state capitol. But we're starting to percolate."