MARTIN INTERVIEWED
-Martin America will not be open to the public. As a private business and residential park all visitors will need a pre-set invitation and go through security to gain access. Many of our buyers are international whose cultures are not necessarily at ease with our informal lifestyle. They demand a stable, predictable and controlled environment.
-Word association? Sure, I’ll play. Privacy, peace of mind, business capability, and convenience – everything is at your fingertips, hospitality, lifestyle, and excellence.
-That is another area where our ideas are counter to conventional wisdom. Operate the property on a “not-for-profit” basis and transfer all assets to the condo owners’ group. In contrast, almost every other condominium developer will own key assets, charge you for their use, then aggregate utilities while billing individually and keeping the difference.
-Of course we are interested in sustainability and being green. My personal view is driven more by the financial benefits of over the long haul, but I also believe in stewardship of resources. For instance, the centralized power plant is highly efficient and with tri-generation everyone wins.
-You can’t deny that the global slowdown helps our efforts. The availability of both materials and labor has increased while the relative costs have decreased. Lead times for premium materials and luxury items are down drastically from a few years ago.
-If you look big picture you will notice an intricate balance of amenities, business capabilities and private home life.
-As you may know, the Sikorsky can be used during a medical emergency to transport the injured to area hospitals.
-Typically it would be used for advertisement shoots, instructional video creation or live broadcast. The 3-camera studio and soundstage is an important amenity on Martin America. This affords all condominium owners access to these world-class capabilities on site for cost. Spread across the entire owners association it is favorable when compared to paying for these services at the going rate.
-Martin America is a small city. Operational excellence is the order of the day. Without a solid operational model the experience of working and living here will be greatly degraded. Building Martin America is one thing, maintaining its excellence quite another.
-This is related to growth in the size of Martin America during the development phase. At one time “The Campus” referred to the entire project. Now, Martin America has two main areas: the residences called “The Estate”, and all commercial or business aspects called “The Campus”.
-The Multiplex is located near the access control point and is on the Southwestern portion of Martin America. As its name implies, it performs a multitude of functions. It will contain the centralized power plant, the depot for the pod system, parking for service vehicles, visitors, handicapped and Martin America employees. It will also house security and visitor processing. I’m sure to be missing some things, but those are the main functions of the Multiplex.
-Martin America will be the most secure office and residential location on earth. You can’t have privacy without security. Privacy and peace of mind are key ingredients to the success of Martin America. Our global lead partner SIEMENS is instrumental helping us to deliver on this commitment to our buyers.
-US Government continues to sell debt to other countries. This is normal. That debt is money these foreign interests can spend, and because it is denominated in US Dollars it is easy to spend here. Another driving factor is that many holders of this debt are concerned about the continuing collapse of the Dollar, thus pressuring them to spend now. It is similar to what we saw in the 80’s with Japan and Japanese firms buying iconic US buildings and companies. Many of our prospective owners are extending their presence here and want a luxurious location to conduct their affairs - and they want to be left alone.
-PRT is an acronym for Personal Rapid Transit. PRT is a great example of re-purposing. Here we have a system that was designed for mass transit, and we’ve applied it to Martin America in a unique way. We saw an opportunity to use the PRT to enhance security by giving all visitors access to the pod system, which limits their mobility on site. Visitors can only travel to the building in which they have their meeting and only return to their car. The pod system will not allow them to travel elsewhere on site.
-Yes, I can. This project is unique and we have found great success taking off-the-shelf or leading-edge technologies and using them to extend or enhance important aspects such as security or the Martin America experience. Another example with the pod system, or PRT, is for people with mobility-related disabilities. They will have access to the pod system as well. This is a win for everyone. All disabled-person parking is centralized; they can move much more freely about Martin America, and the 14 parking structures are freed from needing handicapped parking spaces.
-In my experience a bureaucracy stifles genuine creativity, simple as that. Even a hierarchical organizational structure can quickly take on the inefficiencies, indecisiveness and lack of accountability common to an entrenched bureaucracy. This is why Martin Aviation Group - and now Martin America - will be operated on a “not business as usual” basis.
-No. Why bring in a property management company to run Martin America using a proprietary model they “perfected” for some other property? The uniqueness of Martin America will render that approach a failure. Our view is to have the same minds that created Martin America develop the property management model. We are not going to put a round peg in a square hole.
-Business is easy; just sell something for a little bit more than you paid for it. Oh, and don’t forget the few million other details that have to be perfect.
-“Design build” and “design assist” mean different things to different people. Bottom line, we have a team approach and are not going to turn the construction efforts over to an out-sized general contractor and watch them drive out value. For example, let’s have world-class partners in each area and have them specify in their own area of expertise, interacting one with the other. This works much better for everyone compared to the typical bid process.
-No, from day one I have emphasized and demonstrated an unusual dedication to local St. Louis-based businessmen rather than leverage relationships and bring in out-of-town resources.
-I understand, however, there are three logical derivatives. One is to build similar airport-based projects in the center of other continents. Two, our customers might want us to develop and build Martin America satellite locations in a few strategic locations in North America. And three, we are seeing large corporations taking pages from our playbook, and some of them are going to want us to help them develop and build a dedicated corporate campus for them on an airport by leveraging our experience and coalitions.
-The main reason is the business model would be fundamentally changed if we moved the venue. We would lose a key ingredient, the geographical centeredness.
-I am not sure where you are getting your information, and you clearly have not studied the website. With respect to "comps" or what is commonly referred to as real estate competition or comparables, there is nothing comparable. Period.
-No, we are not looking to empty downtown St. Louis office buildings. I don’t consider Martin America part of the St. Louis commercial real estate market. Our focus has been, and continues to be, non-US based companies needing executive offices.
-Not exactly, but yes. Some of these companies have only had a presence in North America in the last few years.
-By the middle of 2007 Martin Aviation Group had a well-developed set of guidelines for the Saint Louis effort. Take no government money, sell direct, do not rely on banks or traditional construction financing, keep it local and build a construction coalition.
-A large benefit many people seem to overlook is the “turnkey” aspect of this. Facility experts the world over are forever dealing with the following issues: land acquisition, municipal building codes, local labor pool, travel needs, security, food services. To name just a few. We have bundled world-class answers to these issues and given a top executive a simple choice: Have some of your best people spend years working on solutions to these problems, or purchase an office condominium at Martin America.
-Martin America wasn't always a “mega” campus. It grew in scale and grandeur, as we better understood our market. It didn't begin at $10 Billion and 14 million square feet under roof.
-BUYERS. The more exclusive, extravagant and larger the project became, the easier it was to sell. More people saw themselves here. In their minds eye they also began to see other companies buying as well. Those "neighbors" and the business community they represent became an additional draw for Martin America.
-That is a common question. Obviously there is variability due to the pre-sales nature of the project. That said, first occupancy is planned for the fall of 2012.
-We are using what I call our one-two punch. Our search engine optimization capabilities, commonly referred to as SEO, is our first punch and provides what I call "Reaching the Market". The second punch, "Telling the Story", is our CODEC, which allows for large high definition video files to play instantly over the web.
-Why St. Louis and the St. Louis Downtown Airport? For many reasons, starting with Bob McDaniel, the Director of the St. Louis Downtown Airport, whose tireless efforts were and remain key factors in the evolution of Martin America, as well as local business leaders such as Knute Metz, an executive with Upchurch Ready-Mix Concrete - all contributed to the development.
-We have found Southwest Illinois and the greater St Louis region to be a pro-business environment that welcomes growth and economic development.
-Sometimes life gives you what I call the "unexpected extra". There is no sales tax charged on construction materials for airport construction projects in the state of Illinois.
-Knute Metz, a local businessman, has been instrumental in coordinating resources and providing solutions. He is typical of the people you find in Southwest Illinois, warm, honest, hard working and willing to help anyone be successful.
-One of my favorites, I don’t hear it much anymore, is "let me think about it", or its corollary, "I've got to check with my team before I commit our resources". These usually come from people who refuse to act without first spreading accountability. Naturally this inhibits growth. Corporate bureaucracies are no different than government in that respect.
-In brief I would describe the Martin America management style in the following manner. First, executives are delegated complete control; operate a small but strong office and report directly to the principals. Second, the total number of people involved is 5-15% of what typical corporate examples would indicate, as our headcount is restricted in an almost vicious manner. Next, important decisions must be documented, but the objective is to minimize paperwork. Updates are daily, verbal and geared to prevent surprises. Information is on a need to know basis, which requires mutual trust, cooperation and daily interaction. For the inquiring mind these are loosely based on a gentleman by the name of Clarence Johnson.
-I've interviewed many executives wanting to be a part of this project. Some expected me to let them make multi-million dollar decisions with company money, while they were completely unwilling to risk their any of their treasure. Amazing. I believe everyone that stands to gain should have some skin in the game.
-This is not a bureaucracy. Our Executives decide and then move to the next item. Speaking for me personally, the best way to build consensus is look in the mirror. We will add personnel that are in keeping with this spirit. We will not just add people because they are willing to match our dress code, scored well on a personality test or have a piece of paper that says they spent a lot of time in certain institutions of higher learning.
I believe there are three things that make us special, our “magic dust” so to speak: web technology, creative thinking and boldness.
-Do you think this project was conceived by a group of cautious observers and accountants?
-Thinking. Thinking is hard work, which may explain why some people don't seem to engage in any of it. Henry Ford was a successful businessman, and this is one of his quotes. I personally agree with his observation.
-I have not come up with every single idea represented by this project. Nor is everything that I come up with a great idea. The real magic is discerning the good ideas from the bad and having the ability to implement them for benefit.
-It is one of the most elegant concepts at Martin America and people have taken notice. Why not turn every asset over to the condominium association?
-Of course we do. I would describe it as a fiduciary duty to the office condominium owners association. The association is the entity that owns the assets on Martin America and Martin Aviation Group is the responsible party with regards to property management.
-My role, as I've designed it, is to decide. I also create ideas, synthesize suggestions and articulate the vision. Some of the people here at the group refer to me as the “connector of dots” because I keep up on all details and that enables me to see the big picture, then make meaningful associations of unlikely elements.
-I know it's a generalization, but it's also unarguable. Companies seem to increasingly hire less qualified people, require less of them, pay them less and give them a thicker policy manual with which to comply. As in anything, if the responsibility level of individuals relaxes, a tighter or more controlling system is required for stasis. The inverse is also true. At one time our society did not require a ten-foot fence atop every observation overlook.
-In my opinion, casual Friday has taken a tremendous toll on American business. It has caused a relaxing of standards and a willingness to accept less.
-Casual days were meant to make people more comfortable in the workplace, a good thought in theory, but demonstrated not to be effective, in my opinion.
-I like to dress well and I expect everyone in my organization to dress well, whether in a suit or uniform. A groomed individual, wearing a tailored suit made from fine fabrics will have a professional and confident appearance.
-It's fine by me that our approach is viewed as unorthodox in some quarters. Our tagline is "not business as usual".
-A relaxing, if you will, of our standards, would jeopardize Martin America. If I were to accept less than excellence from our business partners, our executives, our employees, or myself, Martin America would fail.
-Operating Martin America, which in effect is a small city, requires well drawn plans executed with a surgeon's precision.
-Backup systems have been targeted as unnecessary and expensive. The power plant receives most of this scrutiny because it is large enough to power the entire campus, not just a few emergency systems. To me, the point is peace of mind. We may never need these redundant systems, but owners deserve this level of excellence. Besides, what is the down side to preparedness?
-The Martin Grand Hotel will be operated to the highest standards. As a unique property, with specialized clientele and needs, the hotel is not a fit with any of the common flags. For these reasons I elected to go against conventional wisdom and keep these accommodations in house. When I say “in house” I am referring to the concept retaining responsibility for the management of the hotel versus sourcing this function to a boutique or independent hotel property management firm. Our research has found that our customers trust us with this aspect of Martin America versus turning over the hotel operation to outsiders.
-Actually, it was easy to select Rolls Royce for VIP conveyance. As you know there are several vehicles that come readily to mind to serve our purpose of exclusive, elegant and stately transportation, Bentley and Rolls. Bentley is a fine company and their Arnage an exquisite automobile. I believe we were fortunate to partner with the Steve Foley dealerships located in the greater Chicago area of Illinois. The dealerships are family owned and operated and have been for a very long time. Although we have chosen to purchase fifteen (15) Rolls Royce Phantoms (which will be the largest fleet ever purchased from Rolls Royce), the Foley organization also offers Bentley and Cadillac. Our dealings have been directly with the Foley family and we have found them to operate their dealerships with only the highest standards and first class staff. I feel very comfortable not just from the purchase but for continued servicing of our Rolls Royce fleet.
-The decision to create The Martin Campus Bank was made after carefully evaluating potential banking relationships and the overall banking marketplace.
-Yes. The Martin Campus Bank will be chartered in Illinois and headquartered at Martin America, as will the Martin Grand Hotel.
-Its purpose is to best serve the interests and needs of the Martin America Condominium Owners Association and the thousands of people who will work here. In addition, the business model for the Martin Campus Bank is designed to meet the needs of serious businessmen during the next decade, not fashioned after the bank models of the last twenty years.
-Nothing. Martin America is not modeled after anything else. You won't find anything like it on the planet. Which I believe is a good thing.
-Although we will have our own first responders, it is important to involve and integrate with local police, fire and ambulance teams. This layered approach to emergency response serves to enhance the peace of mind of all Campus occupants.
-Go somewhere else. If what a given company is doing fits Martin America, it fits. If it doesn't, it doesn't.
-On some topics we are totally inflexible. In order to attract condominium owners we have to hold to certain high standards, and we will, even if people view it as being inflexible.
-The individual people who sign condominium agreements with Martin America are likely to control companies and have a discerning personality that pushes them, always creating or selecting the best.
-Another thing I've observed. The upper regions of any market abhor what I call bumps. They like to pay a single price, even if it is high, rather than an endless string of additional charges.
-Martin America will maintain a single point of control and authority regarding the operational aspects. Our internal affairs department will monitor all aspects and report directly to me.
-Martin America is serious business. It represents billions of dollars and impacts the lives of thousands of people. Serious people do not settle for less than the very best.
