Tag Archives: PayPal

The Silicon Trail

March 28, 2017 by

When United Airlines’ first daily nonstop service flight from Eppley Airfield to San Francisco International Airport eased away from the gate in September 2016, Randy Thelen made certain he had a seat.

The senior vice president for economic development at the Omaha Chamber of Commerce saw the importance of that 7 a.m. flight—believed to be the first regular nonstop service between the two cities in a quarter century. Shortly after 9 a.m., he was on the West Coast, in the fertile Silicon Valley, ready for business.

Despite Omaha’s firm footing in the Silicon Prairie—with tech giants like PayPal, Google, LinkedIn, and Yahoo all maintaining a significant presence in the metro—Omaha long struggled with a serious shortcoming when it came time to recruit more. The same shortcoming didn’t help local technology startups secure financial backing from the apparent over-abundance of thick wallet in the Bay area.

Getting from Silicon Valley to Omaha’s corner of the Silicon Prairie was more than a hassle. It usually required at least one connecting flight, stretching a three-hour nonstop flight into nearly a full day of airplanes and airports … and that’s the delay-free version.

“As much as we don’t want location to be a barrier, there’s a very real situation where Silicon Valley investors won’t fly somewhere if they have to switch planes,” says Dusty Davidson, the CEO and co-founder of Flywheel, an Omaha-based startup that builds and hosts WordPress websites. Davidson is also known for his role in creating Silicon Prairie News and one of the largest entrepreneurial tech conferences in the region, Big Omaha.

“It’s not the connection, it’s the time,” he adds.

The required connecting flights cast a pall over Omaha’s distinct advantage as a low-cost jewel compared to the Silicon Valley. Omaha’s lower cost of living and more affordable housing helps save companies on their largest expense: wages. Add in the various business incentives available from the state, along with a strong talent pool and sound infrastructure, and Omaha makes an attractive option for startup and established tech companies, with that notable exception.

“We came up short on the connectivity or on the flights in and out of Silicon Valley,” Thelen says.

Then United Airlines made San Francisco’s International Airport the nation’s 25th airport with regular nonstop flight services to and from Omaha. This spring, a 26th regular nonstop Omaha route will open between here and Houston via Southwest Airlines.

“Now, we’ve taken away that competitive disadvantage, and we’ve been able to promote it as an advantage,” Thelen says. “It really has changed the conversation as we try to continue to build that pipeline between here and Silicon Valley.”

“The ability to have direct service does have an impact on the businesses that choose to do business here,” says Nancy Miller, vice president of operations at Travel and Transport, a national travel booking company based in Omaha. “I think it helps Omaha businesses.”

That an airline would add a regular nonstop flight to San Francisco lends credence to claims of Omaha’s growth as a potential hub in the Silicon Prairie.

“The Omaha economy really seems to have been doing well over the last couple of years,” says Dave Roth, deputy executive director of the Omaha Airport Authority. “It’s just a really positive combination of Omaha and the airlines for those additional flights.”

Omaha has popped up on several national lists as a new hot spot for tech startups. SmartAsset named Omaha the best city in the nation to work in tech in 2015, and Nebraska has been No. 3 on Forbes’ list of Best States for Business for two years running.

Thelen used his first flight to the Silicon Valley to meet with a dozen tech companies, some who already have outposts in town, and few others he’d like see set up shop.

“For the cost of one hotel stay and a pretty simple flight in and out, you can get two full business days of work without the hassle of changing planes and the risk of getting delayed,” Thelen says. “The convenience of business travel just went up exponentially, and you can expect that connectivity to continue to grow.”

Executives headquartered in San Francisco can more easily visit and engage with their Midwestern operations. Or, employees based in Omaha can more efficiently meet with leadership in Silicon Valley. Officials at PayPal and LinkedIn—which employ about 2,800 and 300 people, respectively, in the Omaha area—say there is frequent travel between the Silicon Valley and their operations in Omaha, but exact figures were unavailable.

“To have firms like that, that now have much, much easier access back and forth, frankly it makes our location all that more integral to the operation because it’s a simpler connect now,” Thelen says.

He added: “That simple flight makes a big, big difference.”

And even homegrown startups can take advantage. They can get twice as much done on recruiting trips from the valley, whether they are looking for talent or financing.

Davidson, the CEO at Flywheel, says the increased connectivity will indeed make a big difference for local companies raising money. There still remains a lot of work to put Omaha “on the map” with more sources of local capital and slowing the export of the state’s top technology talent, to name a few.

“I don’t know that you’re able to look at [direct flights to San Francisco] and say, ‘Hey, look, we solved the problem,’” he says. “I think there’s 50 things that are contributing, and what you really want to do is, just one at a time, start whittling away.”

Visit omahachamber.org for more information.

This article was printed in the Spring 2017 edition of B2B.

Tracking the Controversy

June 23, 2016 by and
Illustration by Jimm Wagner

America’s culture war has entered the most private of public spaces. Enactment of North Carolina’s so-called bathroom bill—House Bill 2 (HB2), aka the Public Facilities Privacy and Security Act—corresponded to a rash of similar proposals across the U.S.

The controversy is tangled in the history of federal anti-discrimination laws, Title IX, and local city ordinances. Supporters of gender-restrictive bathroom mandates have cited defense of women (especially girls in school locker rooms) as justification. Opponents of HB2 (and similar proposals) see a government-sanctioned affront to those who do not identify with their gender assigned at birth; they argue that transgender individuals have a right to use the restroom most closely aligned with their gender identity.

Omaha Public Schools told Omaha Magazine that the local school district remains determined to keep their schools safe for all students, including students of different genders. “Although this has come up on a national level, it certainly is not new to our schools. Our district has been responsive to our students for many years,” says Sharif Liwaru, director of OPS Office of Equity and Diversity.

TIMELINE

1964: The federal Civil Rights Act is implemented to stop workplace discrimination based on sex, religion, race, color, or national origin.

1972: Title IX—part of the U.S. Education Amendment of 1972—extends federal anti-discrimination requirements to public education and federally assisted programs

October 2010: Omaha fails to pass an anti-discrimination ordinance that would add “sexual orientation” and “gender identity” to a list of protected classes.

March 13, 2012: Omaha City Council approves (by vote of 4-3) a controversial ordinance introduced by Councilman Ben Gray that makes it illegal to discriminate in the workplace based on sexual orientation or gender identity.

April 29, 2014: The U.S. Department of Education publishes a 53-page guidance for complying to Title IX. The document states: “Title IX’s sex discrimination prohibition extends to claims of discrimination based on gender identity or failure to conform to stereotypical notions of masculinity or femininity” and “the actual or perceived sexual orientation or gender identity of the parties does not change a school’s obligations.”

November 3, 2015: Charlotte elects a new mayor, Jennifer Roberts, who supports LGBTQ-inclusive changes to local anti-discrimination ordinances.

Feb. 22: Charlotte City Council adds LGBTQ protections to the city’s non-discrimination ordinance.

Feb. 23: North Carolina House Speaker Tim Moore calls for legislative action in response to the “bathroom piece” of Charlotte’s non-discrimination ordinance.

March 23: The North Carolina General Assembly passes HB2 (“the bathroom bill”). Gov. Pat McCrory signs the bill into law. HB2 restricts usage of public restroom facilities to people based on the gender listed on their birth certificates and prevents local anti-discrimination ordinances from protecting individuals on the basis of sexual orientation or gender identity.

March 28: The ACLU files a federal lawsuit to overturn HB2 because of its unconstitutionality (failure to uphold the Equal Protection Clause of the 14th Amendment) and its violation of Title IX.

April 8: Bruce Springsteen cancels his concert in Greensboro, North Carolina. Springsteen’s protest against HB2 is mirrored in several other entertainers canceling North Carolina events to protest HB2.

April 12: Responding to criticism of HB2, Gov. McCrory signs an executive order preventing state employees from being disciplined or fired for being gay or transgender.

April 19: The U.S. Court of Appeals for the Fourth Circuit, which also presides over North Carolina, rules in favor of Virginia high school student Gavin Grimm. The transgender student—who was born female—sued the Gloucester County School Board for violating his Title IX right to use the boys’ bathroom facilities.

April 21: NBA Commissioner Adam Silver says North Carolina must change HB2 for the league to hold its 2017 all-star game in Charlotte as scheduled.

April 27: NCAA Board of Governors adopts a new anti-discrimination process for all sites hosting, or bidding to host, NCAA events in order to “provide an environment that is safe, healthy, and free of discrimination.”

May 9: Gov. McCrory files a lawsuit asking federal courts to declare that HB2 is not discriminatory.

May 9: U.S. Attorney General Loretta Lynch announces that the Department of Justice is filing a civil rights complaint against North Carolina because of anti-LGBTQ language in HB2.

May 13: The Obama Administration and U.S. Department of Education issue guidelines insisting that public schools allow transgender students to use restrooms and locker rooms corresponding with their gender identity.

May 15: Delegates to the Nebraska Republican Convention adopt a resolution calling for a Nebraska bathroom law akin to North Carolina’s HB2.

May 17: Nebraska Attorney General Doug Peterson objects to the Obama Administration’s (May 13) bathroom guidelines. In his letter, Peterson promises that his office will do “everything in its power to resist any attempt to unconstitutionally expand Title IX requirements.”

May 18: More than 200 corporations sign an open letter condemning HB2. North Carolina loses 400 potential future jobs when one signatory, Paypal, withdraws its plans to open a new global operations center in Charlotte.

*Update after press deadline

June 21: Charlotte-Mecklenburg Schools revised its policy to protect transgender students in the classroom and comply with Title IX, in defiance of the state law, HB2.

* * * * *

Against Transphobia

Facts and Figures of Marginalization

RISK FOR SUICIDE

Trans people suffer from an elevated risk of bullying, homelessness, and attempted suicide. According to a 2014 report by the American Foundation for Suicide Prevention and the Williams Institute, 41 percent of trans people have tried to kill themselves at some point in their lives—compared to 4.6 percent of the total adult U.S. population.

SEX OR GENDER?

According to the World Health Organization, “Sex refers to the biological and physiological characteristics that define men and women. Gender refers to the socially constructed roles, behaviors, activities, and attributes that a given society considers appropriate for men and women.”

INTERSEX INFANTS

Most newborns receive gender assignments at birth. But not all. Newborns with ambiguous genitalia are deemed “intersex.” Sometimes intersex conditions do not become apparent until later in life, often around the time of puberty. According to the American Psychological Association, “experts estimate that as many as 1 in every 1,500 babies is born with genitals that cannot easily be classified as male or female.”

* * * * *

To read more about the spectrum of gender identity in Omaha, see the current issue of Omaha Magazine: http://omahamagazine.com/2016/06/engendering-identity/. The author of the article, Dr. Jay Irwin, was profiled in the January/February issue of Omaha Magazine: http://omahamagazine.com/2016/01/trans-logic/

Bathroom_cover

Sarpy, Sarpy, Sarpy!

March 15, 2016 by
Photography by Bill Sitzmann

In 1999, an online-banking company with a nonsensical name built a sprawling operation center next to the I-80 corridor on the edge of Papillion. Baffled passing commuters wondered how long a company named “PayPal” could possibly survive.

Six years later—to the delight of the region’s outdoor enthusiasts—Cabela’s opened a 128,000-square-foot sportsmen’s paradise that transformed the Cornhusker Street exit along I-80 into a bustling retail hotspot.

As the companies moved into the area, so did the employees, and the shoppers. Once boasting only sleepy rural charms, quaint main streets, and Offutt Air Force Base mystique, Nebraska’s smallest county by land mass is now also its fastest growing.

Indeed, while the rest of the state lost 3% of its population (or 55,000 people) between 2010 and 2014, Sarpy County added 13,000 people—an 8% increase.

How did it happen? Is there something to be learned by Nebraska’s other 92 counties?

Sarpy’s formula was a mix of nature and nurture: Aggressive leaders with vision and a willingness to deal. The good fortune of having open land next to a major metropolitan area and one of the nation’s major east-west corridors. Lots of nearby suburbanites with cash. Also, an educated work force within driving distance.

Baseball-Field

It was a perfect economic storm that even pulled off the outrageous and unthinkable: Dragging the Omaha Royals into the suburban Sarpy playground of the Omaha Stormchasers.

And now, in 2016, it’s all about synergy. Momentum. Winning begets more winning.

Ernie Goss, a Creighton University professor of economics, says that when county leaders are successful in building a concentration of development like the one in Sarpy County, it becomes a catalyst for more growth.

“There’s the impact of what we call clustering, Goss says.

The perpetual motion machine is paying off for the county and state. PayPal alone generated $736,930.00 in tax revenue in 2014, more than any other commercial business in the region.

Goss says the presence of PayPal and Cabela’s, among others, has undoubtedly propelled more development. After all, people want to be where the jobs and rooftops are.

There’s a lot to be said for clustering and that’s what we’re seeing out there,” he says.

Embassy Suites Conference Center in La Vista, developed in 2004, has brought in tourism dollars from conventions and weddings. Those tourism dollars also mean more people viewing the city, which builds awareness of the hotel and convention center, which, of course, increases chances that people will spread the word to other shoppers and convention organizers.

Goss says the boom will continue as long as the benefits of providing essential services—such as sewers and roads—in support of new development exceeds the marginal costs. Once those infrastructure elements are in place, he says, the marginal costs tend to decrease and that, in turn, spurs more development.

“It’s the initial development that’s very costly in providing things like fire and police services and other government services.”

Typically, he says, providing services becomes cheaper as the area grows more densely populated. That’s what’s happening in Sarpy County, where a growing resident and business tax base is helping make development cost effective.

The area also benefits from ready access to interstate highways that feed into the Omaha-Lincoln metroplex. Goss says Sarpy is situated just enough outside the urban congestion sprawl to give it a semi-country, away-from-it-all appeal while being near enough to still share in the big city orbit.

Holy-Family-Shrine

“It has a lot to do with interstate access,” he says.

And convenience.

“A lot of folks out west of Omaha find it easier driving to a conference at the Embassy Suites in La Vista than having to drive to the Embassy Suites in the Old Market,” Goss says. “That’s certainly part of it.”

All this growth, too, has come amid a national economy that has generally lagged. But, as the economy sputters, interest rates remain low. In the environment of the last decade, the cost and major development has remained lower as interest rates continue to hover around 4%.

The surge is not slowing.

La Vista anticipates yet another spike once the Nebraska Multisport Complex is built on 184 acres to encompass a natatorium with Olympic regulation pools, an indoor-outdoor tennis center, and soccer fields with field turf and lighting. The facilities will be available to local teams, clubs, schools, and nonprofits. Hosting regional-national tournaments is a massive money generator as families follow players for long weekends of play. Projections estimate the complex would generate $17.8 million in new economic impact and attracting 1.2 million visitors annually.

The win streak extended down the road to the edge of Gretna, where the massive Nebraska Crossing Outlets defied the doubters by doing $140 million in sales in its first year of operation. Within a year of its 2013 opening, the $112 million, 335,000-square-foot mall featuring buzz-worthy brand name stores was planning a major expansion. A new $15 million complex of stores is scheduled to open by Christmas.

Karen Gibler, president of the Sarpy County Chamber of Commerce, says there soon will be announcements about coming neighborhoods and businesses spurred by the new Highway 34 bridge, 84th Street developments, new I-80 exits, and planned sewer and transportation projects.

Gibler cites many reasons why investors and residents choose to work and live there:

“Quality of education and life keeps residents looking to move into our area,” she says. “This growth has opened the eyes of developers. Our leadership in the cities and county are a contributing factor. Land availability and easy access to good highways and the interstate make it easy to access from around the area.” Smart planning helps, as do plentiful jobs and affordable home prices. And people feel safe.”

That success has brought recognition. Papillion now ranks second on Money Magazine’s Best Places to Live for its high median income ($75,000), job growth (10%), thriving cultural life, and great access to the big-city amenities of Omaha.

National awards show up in national magazines and websites. People and companies looking for good homes read about this happenin’ place called Sarpy County in Nebraska.

And so, the wheels of progress keep on turning.

Once you can get it going, Goss says, “one activity draws another activity or one company draws another company.

“They have it all going in the right direction right now,” Goss says.

Sumtur-copy

PlayPal?

June 23, 2015 by
Photography by Bill Sitzmann

This article was printed in the May/June 2015 edition of Omaha Magazine.

PayPal’s offices are distinctly visible to passersby on nearby Interstate I-80. Volleyball and basketball courts for employees rest beside a small lake—the PayPal Pond. The La Vista campus is PayPal’s largest site outside of corporate headquarters in San Jose.

Employees enter the sleek, low-lying glass office buildings to find a casual workplace, a fitness center, free video game console stations, and arcade games. Walls of artwork produced by employees’ children cover the corridors and cubicle walls that separate cavernous, open office spaces. A vast ceiling stretches above the well-lit, bright scene.

2PlayPal2

The PayPal campus consists of two buildings. The first (built in 2005) is one-story; the second (built in 2007) is two stories. Rooms and sections of the first building are named after countries and organized by continents. The second building is partitioned according to the names of superheroes and super-villains. A team of programmers might be troubleshooting with a client in “Batman” before catching up with colleagues in “Africa” for a conference call with San Jose.

2PlayPal1

 

The cafeteria features a cornucopia of food options, all of which can be ordered and paid—before the lunch break has even begun—via a PayPal mobile application.

2PlayPay3

Paypal

Photography by Bill Sitzmann

This article was printed in the May/June 2015 edition of Omaha Magazine.

Many job seekers from Omaha’s inner-city neighborhoods currently think La Vista might as well be Lincoln—or Egypt. That may not be the case much longer. Linda Dugan, vice president of Global Operations at PayPal, has spearheaded a plan to connect PayPal’s suburban office complex with new hires from North Omaha.

A cohort of 28 new customer service employees began using a pilot transportation program to travel to and from PayPal on May 4.

Dugan explains the program’s logic: “Our idea is that if transportation is a barrier, and we can provide a service from the North Omaha community out to our La Vista office and provide return transportation, then we’re going to help enable them to have a really rewarding career with PayPal; and at the same time bring talented and highly engaged team members into our organization.”

Dugan has pondered transportation accessibility for some time. During board meetings for the Sarpy County Economic Development Council, she listened to other La Vista area businesses lament how some potential hires are logistically incapable of considering job opportunities in Omaha’s outer suburbs.

“Not everyone has a car, not everyone can drive, but we do have the expectation of attendance,” Dugan says. “If their car might not make it 40 miles back and forth every day, they self-select themselves out of consideration. Hopefully by solving this (problem of accessibility), we will get some teammates who want to commit to us because we are willing to commit to them.”

Many people want to commit to PayPal because of their extensive benefits.

“I would put our benefits up against anyone in the community and believe that ours would still exceed,” she says, speaking from a conference room in the first of PayPal’s two adjacent offices, which house 2,500 employees (working in customer service, technical support, fraud prevention, corporate communications, and other capacities).

The company’s comprehensive benefits package begins on new employees’ first day and covers everything from family to pets. PayPal also offers tuition reimbursement, and Bellevue University teaches accelerated degree courses in undergraduate and graduate levels after regular business hours at the La Vista office.

No matter how good PayPal’s employment benefits might be, unreliable transportation could force job candidates out of the talent pool.

“I am so hopeful that our pilot can prove what I think it can, that by removing the barrier of transportation we can get really great talent that wants the career opportunities,” says Dugan.

The north Omaha transportation program resulted from a brainstorming session with her boss, John McCabe. “We were talking about opportunities and talent, and I proposed an idea of addressing possible barriers in the community for transportation,” Dugan says.

He liked the idea. McCabe agreed to fund a nine-month pilot program. Dugan’s next phone call was to David Brown, president of the Greater Omaha Chamber of Commerce. She explained how she hoped to incentivize talent acquisition from north Omaha with PayPal-funded complementary transportation.

“He was amazing!” Dugan says of Brown. More community outreach followed. Brown’s team helped PayPal network with agencies, keeping a pulse on the employment needs of Omaha’s inner-city community.

Representatives from Goodwill and the Urban League joined the discussion, followed two months later by Metro Transit, Omaha’s public transportation provider. The coalition eventually developed a blueprint for a transportation program that allows PayPal to leverage the Urban League and Goodwill’s talent pool while coordinating routes with Omaha’s existing busing infrastructure.

They organized two job fairs during March in north Omaha. Soon after, the company began extending job offers. PayPal’s buses would depart from the North Omaha Transit Center (near 30th and Ames), which is already connected to other bus lines throughout Omaha’s inner-city neighborhoods.

“Our hope is that this cohort demonstrates the same level of engagement that we have received from our talent from across the community, and that will help us see if we are on the right track,” says Dugan. “We are really hopeful that it will make a difference, that it will be great for our customers and great for the community.”

Dugan has deep family roots in the north Omaha community. Her grandmother was a member of Omaha North High School’s first graduating class. Dugan, her brother, and her parents also graduated from the school.

Now she’s able to give back to the Omaha neighborhood that nurtured her.

“It’s all about community,” she says. “Go Vikings!”

1PayPal