Gestamp Automotive Plant

The

® LaneKENTUCKY’S BUSINESS NEWS SOURCE Report FOR 27 YEARS MAY 2012 $4.50

REWIRING THE JOB MARKET Faster and cheaper than a degree, certificate program credential numbers up 473% in Kentucky since 2001-02 Page 24 lanereport.com

LANE ONE-ON-ONE: MITCH MCCONNELL U.S. Senator, Kentucky

MAY_CoverJM.indd 1 5/9/12 1:22 PM Judges: Bill Schutters, Kentucky Highlands Investment Corp. Guest Speakers: Joel Adams, Entrepreneur Kelley Sloane, Sloane Marketing Michael Hartman, Frogdice, Inc. Robert G. “Bobby” Clark, Sustainable Steven A. Spalding, Point A Consulting Jenny Corbin, TNG Pharmaceuticals Business Ventures Richard Stump, eTechVentures.com Emcee: James Fugitte, Wind Energy Corporation Margaret van Gilse, bioLOGIC Kris Kimel, Kentucky Science and Lou Kelmanson, Kelmanson Holdings Lynn Wangerin, Stoll Keenon Ogden Congratulations Technology Corporation Charles LeBoeuf, Mountjoy Chilton Medley Steve Whitman, Consultant to the Idea State U Class of 2012! Ann Randolph, Commonwealth of Kentucky Chuck Woods, OPM Entrepreneurial Services

Judged by some of Kentucky’s most respected leaders from the business community, winning teams earned prizes and awards totaling $100,000 for their innovative business concepts and business plans. By placing an emphasis on a student’s readiness to compete in the marketplace, Idea State U is helping to create real companies, providing You’re looking at some of Kentucky’s best up-and-coming entrepreneurs. More than real jobs for Kentuckians. 70 graduate and undergraduate students from our state’s public universities formed Sponsored and managed by the Kentucky Cabinet for Economic 24 teams to participate in the Fifth Annual Idea State U Competition. The intense, Development, Idea State U is one of the nation’s top state-sponsored two-day event, held April 20-21, 2012, in Lexington, is designed to identify and business plan competitions. Details on the competition and winning entries are available at www.IdeaStateU.com. support the next generation of Kentucky innovators and entrepreneurs. Cabinet for Economic Development www.ThinkKentucky.com IDEA STATE U: WHERE KENTUCKY’S FUTURE ENTREPRENEURS COMPETE LEARN MORE AT WWW.IDEASTATEU.COM

2012MAY_CoverJM.indd Idea State Winners 2 Ad_LaneReport.indd 1-2 5/9/12 1:22 PM 4/30/12 4:51:07 PM Judges: Bill Schutters, Kentucky Highlands Investment Corp. Guest Speakers: Joel Adams, Entrepreneur Kelley Sloane, Sloane Marketing Michael Hartman, Frogdice, Inc. Robert G. “Bobby” Clark, Sustainable Steven A. Spalding, Point A Consulting Jenny Corbin, TNG Pharmaceuticals Business Ventures Richard Stump, eTechVentures.com Emcee: James Fugitte, Wind Energy Corporation Margaret van Gilse, bioLOGIC Kris Kimel, Kentucky Science and Lou Kelmanson, Kelmanson Holdings Lynn Wangerin, Stoll Keenon Ogden Congratulations Technology Corporation Charles LeBoeuf, Mountjoy Chilton Medley Steve Whitman, Consultant to the Idea State U Class of 2012! Ann Randolph, Commonwealth of Kentucky Chuck Woods, OPM Entrepreneurial Services

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2012 Idea State Winners Ad_LaneReport.indd 1-2 May Lane 1-22.indd 1 4/30/125/9/12 4:51:07 1:32 PM MAY LThe ane Report 2012 Kentucky’s Business News Source For 27 Years Volume 27 Number 5

24 COVER STORY REWIRING THE JOB MARKET Faster and cheaper than a degree, certificate program credential numbers up 473% in Kentucky since 2001-02 28 ABUSING THE BOTTOM LINE State’s drug and alcohol misuse rates highlight the need for and value of good workplace policies 30 REDEVELOPMENT PIONEERS Jim and Donna Salyers have taken a fabulously novel approach to downtown redevelopment 34 GOOD WATER, GOOD SCIENCE, GOOD PR Louisville pure tap® marketing campaign continues to turn bottled water trend in utility’s favor 36 KENTUCKY’S BLUE CHIP 25 The commonwealth’s largest publicly held companies

Departments 4 Perspective 23 Healthcare and Wellness 6 Fast Lane 36 The Lane List 14 Interstate Lane 38 Spotlight on the Arts 15 Kentucky Intelligencer 39 Opinion 16 Corporate Moves 40 Exploring Kentucky 17 On the Boards 42 Passing Lane

18 Lane One-on-One: 44 Kentucky People Mitch McConnell U.S. Senator (R-Ky.)

lanereport.com On the Cover Kentucky Business News Online Participants climb utility poles in Read current and archived copies of The Lane Report, Somerset Community College’s lineman Market Review, BG – A way of life, Next – Your Future After High School in Kentucky, Health Kentucky, Prep Magazine, training program, which was launched special reports, white papers and community profiles. in 2008 at the request of Kentucky electric companies. Those earning SCC’s lineman Faster Lane skills certificate have a job placement rate Email news bulletin exceeding 95 percent. Kentucky colleges Three or more times a week, the editors of The Lane and universities now award more post-sec- Report publish the Faster Lane email bulletin of fast ondary certificates than four-year degrees. breaking and important business and economic news Somerset Community College/ from across Kentucky. Visit lanereport.com to sign-up for Dean Rhodes photo this free, must-have, at-your-fingertips news service.

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May Lane 1-22.indd 3 5/9/12 1:32 PM The PERSPECTIVE Lane Report ® Kentucky’s Business News Source for 27 Years

EDITORIAL DIRECTOR Mark Green session, but a number of other issues ASSOCIATE EDITORS 2012 SESSION Karen Baird will have to wait until next year. Lorie Hailey FELL SHORT In addition to bills passed, another way to measure any legislative session is CREATIVE DIRECTOR Progress slow and Jessica Merriman to note whether any anti-job business difficult in Frankfort legislation is enacted. Fortunately, a num- CORRESPONDENTS ber of such measures that were opposed Amanda Arnold; Rena Baer; Katherine Tandy Brown; Patrice Bucciarelli; BY DAVE ADKISSON by the Kentucky Chamber of Commerce Shannon Leonard Clinton; were defeated, including legislation that Anne Charles Doolin; Debra Gibson; would have increased health and legal Susan Gosselin; Robert Hadley; HE 2012 regular session of the costs for businesses. Anne Sabatino Hardy; Feoshia Henderson; Kentucky General Assembly and Despite a number of compromise Kara Keeton; Meredith Lane; Abby Laub; Tthe subsequent special session proposals, lawmakers left town without Nancy Miller; Greg Paeth; Eddie Sheridan; illustrate that progress and compromise passing legislation to prevent 16-year- Mariam Williams; Gary Wollenhaupt on key issues remain difficult to olds from dropping out of high school. SYNDICATED COLUMNS achieve. After spending much of the They also failed to enact charter school Creators Syndicate session trying to craft new legislative legislation to address persistently low- DESIGN districts, the legislature made substan- performing schools and rejected several Stone Advisory tial progress on many issues; however, a Senate measures to improve the quality

PRINTING, OUTPUT & PRE-PRESS SERVICES number of priorities fell short. of teachers in the classroom. Publishers Printing Co. The good news is the legislature Lawmakers also failed to address one ■ passed a two-year budget on time that of the most persistent problems faced by

PUBLISHER was, by nearly all accounts, a fiscally our signature Thoroughbred industry. Ed Lane responsible plan to fund government For years, other states have been out- services without higher taxes. The legis- competing Kentucky and threatening ASSOCIATE PUBLISHERS Dick Kelly lature implemented a number of Ken- our position as Horse Capital of the Donna Hodsdon tucky Chamber recommendations by World. Expanded gaming in nearly every reducing the state’s debt level and elim- other horse-racing state has resulted in CHIEF FINANCIAL OFFICER Steve Rohlfing, CPA inated a substantial portion of the struc- significant job losses for Kentucky – a tural imbalance by relying on fewer trend that will continue as long as our COMPTROLLER Alma Kajtazovic accounting gimmicks and the use of industry is denied a level playing field. one-time monies for recurring expenses The General Assembly also had CIRCULATION – a practice common in recent sessions. opportunities to improve the health of P&B Services The top priority for business was leg- Kentuckians that did not pass. A mea- WEB MARKETING & PUBLISHING islation to address the interest on the sure to limit smoking in public places, a WebMedley debt the state owes to the federal govern- proposal to provide incentives for well- IT SERVICES ment for unemployment insurance. ness plans in the workplace and a mea- NetGain Technologies Without a mechanism to repay this inter- sure to limit frivolous lawsuits that raise Lane Communications Group est, Kentucky employers would have healthcare costs all fell short. is a member of faced a disastrous $420-per-employee tax Kentucky faces persistent challenges penalty for a total cost to business of that demand our attention. The public more than $600 million. Legislators pension and Medicaid systems pose the addressed this problem in a bipartisan greatest fiscal challenges to our prosper- way that provides for the interest pay- ity. Our tax code, which is being evalu- The Lane Report is published monthly by: ment and opportunities for future tax Lane Communications Group ated by a gubernatorial commission 201 East Main Street 14th Floor relief. Legislators also passed a career- right now, needs reform to make Ken- Lexington, KY 40507-2003 based education initiative and legislation tucky more competitive. We must also [email protected] to simplify local business tax filings. ensure our labor policies are not a hin-

For more information and Progress was made on addressing con- drance to job growth as we see neighbor- advertising rates contact: cerns with the public pension system. ing right-to-work states out-compete us. PHONE: 859-244-3500 Lawmakers crafted incentives for auto Finally, we must ensure our legal climate manufacturing jobs and a law to improve is not one that allows frivolous claims to The annual subscription rate is $29. the regulatory process. They also passed become impediments to job creation. (Kentucky residents add $1.74 sales tax.) a reasonable compromise that addresses The legislative process is designed to be Newsstand price is $4.50. the proliferation of meth labs. deliberate; however, these and many Send check or money order to: In the waning hours of the regular other issues require swift action to make Circulation Manager The Lane Report session, an impasse over road funding the progress necessary to create a com- 201 East Main Street 14th Floor turned what would have been a success- petitive workforce and enact the policies Lexington, Kentucky 40507-2003 ful conclusion into a disappointing end that will foster job creation and prosper- The Lane Report corrects all significant errors that with a contentious blame game and a ity in Kentucky. ■ are brought to the editors’ attention. special session. The transportation bud- © 2012 Lane Communications Group get and prescription-drug-abuse legisla- All editorial material is fully protected and must not be tion failed in the regular session, so Dave Adkisson is president and CEO reproduced in any manner without prior permission. Gov. Beshear called lawmakers back to of the Kentucky Chamber of Commerce address these issues. Both were successfully addressed in the five-day special

4 MAY 2012 LANEREPORT.COM • THE LANE REPORT

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May Lane 1-22.indd 5 5/9/12 1:32 PM FAST LANE A compilation of economic news from across Kentucky

STATE: INDEX RANKS KENTUCKY AMONG THE TOP TEN LOUISVILLE: CAFEPRESS TO STATES IN THE U.S. FOR ENTREPRENEURIAL ACTIVITY ADD 592 NEW JOBS, WILL MOVE HQ TO LOUISVILLE ENTUCKY was among the top states 2011 Kauffman Index of in the nation in terms of new start-up Entrepreneurial Activity by State , an e-commerce companies formed in 2011, according AFEPRESS K company that specializes in cus- to the results of the annual ENTREPRENEURS PER Kauffman STATE 100,000 PEOPLE tomized items such as T-shirts, report. C Index of Entrepreneurial Activity 1. Arizona 520 posters, mugs and gift items, plans to The commonwealth tied for the 2. Texas 440 move its global headquarters from San eighth-highest number of start-ups in California 440 Mateo, Calif., to Louisville, where it 2011, a result of a more than 27 percent 3. Colorado 420 already operates a 140,000-s.f. fulfill- increase in entrepreneurial activity since 4. Alaska 410 5. Missouri 400 ment center in southwest Jefferson 2010. Kentucky’s rate of growth in entre- 6. Nevada 390 County that employs some 300 workers. preneurship from 2001 to 2010 was the 6. Vermont 390 CafePress is investing $16.5 million to fifth highest among all 50 states. 7. Idaho 380 add another 185,00 s.f. to its existing oper- Kentucky’s rise is particularly encour- Florida 380 ation to accommodate the expansion. The aging considering that entrepreneurial 8. New York 370 project is expected to create 592 new full- activity decreased overall nationwide from Kentucky 370 time jobs over the next 10 years. 2010 to 2011 and in all regions of the 9. Maine 360 10. Georgia 350 To encourage the expansion and head- country except the Northeast, which quarters relocation in Louisville, the Ken- experienced a slight increase in rates. In tucky Economic Development Finance the South, entrepreneurship rates in 2011 decreased overall by more than 8 percent. Authority has preliminarily approved Cafe- Although the nationwide rate of new business creation dipped during 2011, Press for tax incentives of up to $10 million entrepreneurship nationwide remained above pre-recession levels. “The Great Recession has pushed many individuals into business ownership due to high unemployment rates,” said Robert Litan, vice president of research and policy at the Kauffman Foundation. “However, economic uncertainty likely has made them more cautious, and they prefer to start sole proprietorships rather than more costly employer firms. This ‘jobless entrepreneurship’ trend negatively affects job creation and the larger economic recovery.” LOUISVILLE: HEAVEN HILL’S ‘BOURBON EXPERIENCE’ WILL JOIN WHISKEY ROW IN DOWNTOWN LOUISVILLE IN 2014 Heaven Hill photo EAVEN Hill Distilleries is investing $9.5 million to develop an artisanal distillery, tourism CafePress Inc. and the State of Kentucky and retail attraction in downtown Louisville. H announced on April 30 an agreement that will cre- The Evan Williams Bourbon Experience will be ate 592 new full-time jobs over the next 10 years located along what is historically known as “Whiskey and will make the Louisville production facility the Row” on Main Street, in a five-story facility that is company’s new global headquarters. more than a century old. The attraction will offer guided tours, a fully functioning artisanal pot still through the Kentucky Business Investment distillery, tasting rooms and a dioramic video wall program. The performance-based incen- that depicts the progression of distillery operations tive allows a company to keep a portion of dating back to distiller Evan Williams in the late its investment over the term of the agree- 1700s in Louisville. ment through corporate income tax cred- Headquartered in Bardstown, Heaven Hill is one its and wage assessments by meeting job of the country’s oldest and largest distillers. Founded and investment targets. in 1934 after the end of Prohibition, Heaven Hill has Founded in 1999, CafePress Inc. has since produced more than 6 million barrels of Ken- grown to encompass a portfolio of e-com- tucky bourbon, with a current aging inventory that merce websites that includes CafePress. accounts for nearly 23 percent of the world’s supply com, CanvasOnDemand.com, Great- of bourbon. BigCanvas.com, Imagekind.com, Invi- In announcing the new attraction, Heaven Hill tationBox.com and Logosportswear. Executive Vice President Harry J. Shapira noted that com. The company has had a presence in the Evan Williams Bourbon Experience “brings Louisville since 2005, when CEO Bob together important economic development, tourism, Marino joined the local team and helped and historical forces: an important new manufactur- build the flagship plant. ing and distillation facility, a major Louisville and While a number of companies such as Kentucky-themed attraction, and the history of Whis- Zappos and Best Buy have fulfillment The new Evan Williams Bourbon key Row and Evan Williams as an important Louis- centers in Louisville, CafePress is the first to Experience will be designed to ville figure and early distiller.” move its headquarters to the city. The com- immerse guests in the bourbon- The attraction is expected to open in September pany expects to eventually have 25 to 45 making process. 2013 and will employ a staff of 14 full-time workers. employees at its Louisville headquarters.

6 MAY 2012 LANEREPORT.COM • THE LANE REPORT

May Lane 1-22.indd 6 5/9/12 1:32 PM LEXINGTON: 21C TO CREATE NEW HOTEL BUSINESS BRIEFS IN HISTORIC FAYETTE NATIONAL BANK BOWLING GREEN 1c Museum Hotels has announced plans to develop a ■ The Bowling Green Daily News reports new combination boutique hotel, contemporary art that the Warren County Fiscal Court has 2museum and restaurant in downtown Lexington. granted final approval to rezone property The Louisville-based company plans to renovate the his- near the National Corvette Museum that will allow for the construction of a toric Fayette National Bank Building and an adjacent three-

motorsports park for high-performance National Corvette Museum photo story building on Main Street for its newest location, which driving and testing. According to the will be its third historic restoration project and fourth project report, museum officials hope to finalize fundraising this year and break overall. The company opened its first location in Louisville in ground on the project next April. The first phase of the project is expected 2006 and currently has hotels to cost approximately $20 million and will include a three-mile road course, under construction in Benton- an autocross area and a skid pad training area.

ville, Ark., and Cincinnati, Ohio. Christian Care Communities photo ■ 21c co-founder and CEO Steve Christian Care Com- munities has broken Wilson said that similar to the com- ground for a $12 million pany’s Louisville property, the Lex- expansion of its Village ington site will be woven into the Manor community in fabric of downtown, welcoming Bowling Green that will both visitors and area residents to bring a wide range of new experience its rotating exhibits – the services for seniors, including assisted living, memory museum will be open to the public care and short-term reha- free of charge – and participate in bilitation care. The expan- Steve Wilson, CEO of 21c cultural events. Wilson said the sion will create up to 55 professional and service jobs. The project is Museum Hotels, introduced property’s restaurant will support slated for completion in the summer 2013. The Louisville-based com- the blue penguin that will be sustainable agriculture and show- pany also operates senior living communities and programs in Corbin, a visual symbol at the Lexing- case locally grown and produced Grayson, Hopkinsville, Lexington, Louisville, Owensboro and Taylors- ton 21c hotel, similar to the ville and employs more than 600 people throughout the state. red penguin at the original ingredients. Louisville 21c. Lexington Mayor Jim Gray said BURLINGTON many who are familiar with the 21c ■ Heritage Bank, a Burlington-based community bank that has 10 loca- model call it a “game-changer” for downtown. tions across the Northern Kentucky area, has completed its acquisition of “It connects the dots among many of the investments Farmers National Bank, another Northern Kentucky bank that has five we’ve been making in our downtown,” Gray said. branches in the region. The acquisition adds around $84 million in assets Renovation of the 100-year-old building is expected to to Heritage, bringing the bank’s total assets to approximately $485 million. begin within the next 12 months, with the opening projected CAMPBELLSVILLE for 2014. Company officials estimate hiring approximately ■ Serco, a travel and hospitality company headquartered in the United 150 employees for the Lexington location. Kingdom, is expanding its reach within the industry by creating 125 jobs at its Campbellsville customer call center. Serco, which acquired STATE: BLUE CHIPPERS PARTNERSHIP TO Intelenet Global Services last year, offers operational, management and consulting expertise across a broad variety of business sectors. The SUPPORT KENTUCKY ENTREPRENEURS company has more than 100,000 employees who deliver services to government and private clients in more than 30 countries. new statewide initiative that focuses on Kentucky’s entrepreneurial system was launched last month with the goal CARROLL COUNTY of connecting entrepreneurs across the commonwealth ■ DRC Industries is investing $2 million to acquire a 126,000-s.f. facil- A ity and add 25 jobs in Carroll County. Established in 2003, DRC Indus- with resources and opportunities to grow their business. tries has grown from distributing and warehousing packaging supplies Startup Kentucky is part of a the Startup America Partner- to expanding its manufacturing capabilities. The project’s expansion ship, a private organization that has assembled more than $1 will complement the company’s existing 80,000-s.f. facility in Carroll billion in commitments from dozens of corporate partners to County and provide more storage and warehousing space as well as support the growth of startup companies and accelerate job more room for additional personnel. growth. Startup America partners include high-profile names such as , , , DANVILLE American Express Dun & Bradstreet Ernst & Young ■ , , , , , and . Ferm Solutions Inc., a Danville research and development company Facebook FedEx Google HP IBM Intel Microsoft dedicated to the fuel ethanol industry, is investing $1 million to open a new Startup Kentucky will bring together a coalition of men- 3,750-s.f. technology center, according to a report by The (Danville) Advocate- tors, entrepreneurial resources, funders, major corporations Messenger. In addition to providing more space for R&D, the new facility – and service providers to create a statewide network of strate- which is expected to open this summer – will also give the company more gic resources dedicated to enabling entrepreneurs to scale room to offer training for companies that produce fuel ethanol. their companies and achieve success. A steering committee made up of entrepreneurs and lead- EDMONSON COUNTY ■ ers from the state will provide direction and Startup Ken- Taggart Solar LLC is leasing a 10,000-s.f. building in Park City’s Edmonson County Industrial Park to house a new manufacturing tucky is looking for entrepreneurs who have first-hand operation that will create 30 new full-time jobs. Taggart Solar pro- knowledge of launching, financing and growing innovative duces solar panels for industrial and residential use. The two-mega- companies to lead events to nurture young companies. watt Edmonson County facility is expected to be operational this Membership in Startup Kentucky is free. More informa- month and will assemble photovoltaic (sunlight into electricity) tion is available at startupkentucky.com. modules for distribution across the United States and Canada.

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BUSINESS BRIEFS STATE: LAW ON KY UNEMPLOYMENT FUND LOAN PAYBACK AVERTS $600M TAX HIKE FLORENCE ■ HealthWarehouse.com new bill signed by Gov. Steve Beshear last month will Inc., a Florence-based retail prevent a $609 million tax increase on Kentucky mail-order pharmacy, has Aemployers by creating a permanent mechanism to pay added pet medications to its back the interest the state owes the federal government for offerings, capitalizing on a growing trend that saw Americans spend more than $50 billion on their pets last year, up from $10.1 billion only unemployment insurance (UI). four years ago. HealthWarehouse.com is offering more than 200 over- Since January 2009, Kentucky has borrowed more than the- counter and prescription pet medications with discounts ranging $960 million from the federal government to continue pay- from 30 percent to 90 percent off retail prices. ing UI benefits to eligible Kentuckians. If House Bill 495 had not been enacted and Kentucky could not make the interest FRANKLIN payment due Sept. 30, 2012, employers would lose all of the ■ Vermont Thread Gage has launched its second major expansion in federal tax credit, and the UI tax payable by employers would the past five years, investing more than $1.7 million to add 35,000 s.f. to its manufacturing plant in Franklin. Formed in 2000, Vermont Thread rise. The total estimated cost to Kentucky employers would Gage manufactures thread gages sold through its parent company, have been approximately $600 million. Vermont Precision Tools Inc. By 2007, the company had outgrown HB 495 creates a financing mechanism to generate the the original 11,000-s.f. facility it built in Franklin in 2001 and began funds necessary to pay interest on the federal loan in the short construction on a 32,000-s.f. plant on an adjacent site in the Franklin term, and a state level surcharge in the longer term to pay both Industrial Park. The latest expansion will add 15 new jobs to the exist- the interest on the federal loan as well as any associated financing 100-member staff. ing charges. The federal government waived the interest on HEBRON the federal loan for the first year, and as 30 states have bor- ■ Low-cost carrier Vision Air- rowed funds to support their unemployment insurance pro- lines plans to offer flights grams, the president has asked Congress to consider from the Cincinnati/North- additional relief for businesses in the struggling economy. ern Kentucky International The bill was the result of collaborative work by numerous Airport to Myrtle Beach, S.C., Kentucky employer groups and received unanimous biparti- beginning May 31. The flights san support from both legislative chambers. will operate through October 31, with round-trip fares Dave Adkisson, president and CEO of the Kentucky beginning at $109. Chamber of Commerce, called HB 495 the most consequen- tial piece of business legislation passed during the 2012 session. HIGHLAND HEIGHTS “It took a lot of work, but in the end, we averted a substantial ■ General Cable Corp., a Highland Heights-based company that spe- tax crisis for employers,” said Adkisson. cializes in wire and cable products, has acquired Delphia Produtos Eletricos Ltda., a Brazilian company that is a leading manufacturer of STATE: CPE APPROVES TUITION HIKES automotive ignition wire harnesses in the Brazilian market. Roger BUT COLLEGES STILL FACE DEFICITS Roundhouse, senior vice president and general manager of specialty HE Kentucky Council on Postsec- wire harnesses for General Cable, said the acquisition is a key enabler in ondary Education has approved the company’s ability to support the global needs of its multinational Ttuition increases at the state’s pub- customers. Delphi reported revenues of approximately $20 million lic colleges and universities for the (USD) in 2011. 2012-13, but it won’t be enough to put LEBANON schools in the black, according to data ■ A Japanese automotive supplier has opened a new $38 million facility released by the CPE. in Lebanon that will result in 100 new jobs. Last month, Fuel Total The council set tuition and man- Systems California Corp. officially opened its new 120,000-s.f. facility datory fee ceilings for in-state, on 18 acres in Marion County, where it will manufacture automotive undergraduate students for the fuel tank systems and related components. 2012-13 academic year at 4 percent A 6 percent tuition in- for the crease means University ■ AAR Precision Systems has informed the state that it plans to close Kentucky Community and its facility in Lebanon, where it provides design and manufacturing ser- Technical College System of Kentucky undergradu- vices for highly engineered, tolerance-critical machined metal alloy assem- (KCTCS), 5 percent for the compre- ates will pay $9,676 for blies. The plant closure will result in the loss of 61 jobs. hensive universities and 6 percent the 2012-13 academic for the state’s research institutions. year, up from this year’s LEXINGTON The council also approved the 2012- tuition of $9,128. ■ Lexington-based Valvoline, a commercial unit of Ashland Inc., 13 floor for nonresident, undergrad- has signed an agreement for TNK-BP – Russia’s third-largest oil com- uate tuition and mandatory fees at two times the resident pany – to distribute Valvoline motor oil to the passenger car market in Russia. “With its pas- undergraduate rate. senger car lubricants market being the largest Yet even with the estimated $45.1 million that will be gen- in Europe – and still growing year on year – erated with the new tuition and fee revenue, campuses will Russia represents a significant growth opportu- be faced with a net operating deficit of $79.6 million for nity for passenger car motor oils, particularly FY13, according to the CPE. The deficit stems from a $62.6 with the increasing popularity of Western cars,” million cut in state general funds to public postsecondary said Sam Mitchell, president of Ashland Con- education in the 2012 Budget Bill (HB 265) and an esti- sumer Markets. Mitchell said that with access to 15,000 retail stores across Russia, TNK-BP offers “unparalleled oppor- mated $62.1 million increase in institutional fixed costs. The tunities” to introduce Russian to Valvoline products and said he shortfall does not include the $38.3 million in unfunded anticipates being able to achieve “significant volume growth in Rus- maintenance and operation costs that the institutions have sia” as a result of the agreement. absorbed since 2008 or are expected to incur in 2012-13.

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BUSINESS BRIEFS LEXINGTON: ICONIC CALUMET FARM SOLD TO INVESTMENT GROUP FOR $36 MILLION LEXINGTON ■ A newly formed software company has announced plans to locate its ALUMET Farm, a his- operations in Lexington, creating 10 new technology jobs. CirrusMio, toric Thoroughbred a subsidiary of Virginia-based Metaformers Inc., will focus on the Cfarm that has pro- development of cloud-based software solutions for public-sector clients. duced nine Kentucky Derby winners over the years, has ■ Xerox has announced that it is hiring more than 300 full-time employees at its call center in Lexington. Company officials said the been sold for approximately additional positions are needed to support new client growth and will $36 million to an investment include customer service representatives, quality assurance analysts, group that says it will con- technical analysts and service center managers. tinue the legendary farm’s

Thoroughbred operations. James Archambeault/Lexington CVB LIBERTY ■ Kentucky has awarded a $1 million community development block Calumet Investment plans to lease the 799- Calumet’s rolling pastures and grant to help the Liberty/Casey County Economic Development Group red-trimmed barns represent Authority purchase new equipment that will be leased to Bluegrass acre farm to Brad Kelley, who decades of Thoroughbred tradition. Shavings LLC, a Liberty company that produces kiln-dried wood shav- owns Hurricane Hall, a breed- ings and sawdust for horse, poultry and cattle bedding. In addition to ing farm in Lexington, and Bluegrass Hall, which is the racing the $1 million grant, Bluegrass Shavings is investing $2.4 million to arm of the farm. A native of Franklin, Ky., who now lives in Nash- expand its operations and plans to add 50 full-time jobs to support the ville, Kelley was the founder of the Commonwealth Brands expansion. The expansion follows a devastating fire in 2010 that tobacco company, which he sold for a reported $1 billion in 2001. destroyed the young company’s equipment and building. Calumet Investment Group bought the farm from the heirs LOUISVILLE of Henryk de Kwiatkowski, who rescued Calumet from bank- ■ Advanced Cancer Therapeu- ruptcy when he purchased it at auction in 1992 for $17 million. tics (ACT) has been granted a pat- According to a spokesman for the de Kwiatkowski family, ent for a new treatment to inhibit the sale includes the farm, barns, improvements, name and cancer cell proliferation and possibly silks, but not horses. tumor growth. “This granted patent is one step in our ongoing comprehensive strategy to develop a patent portfolio of novel inhibitors around this key molecular target in cancer metabolism,” said Randall B. Riggs, BOWLING GREEN: PUREPOWER OPENS president and CEO of ACT. “A clinical candidate has been identified and we intend to file an investigational new drug (IND) application in 2012 for RESEARCH FACILITY AT WKU CENTER a dose escalation Phase I human clinical study in cancer patients.” urePOWER Technologies has opened a new 13,000- ■ , a Louisville-based company that is one of North Steel Technologies sf. facility at Western Kentucky University’s Center America’s leading steel processors, has secured land in Celaya, Mexico, for Research and Development that will give the diesel where it plans to build a 125,000-s.f. flat-rolled steel processing facility. P The Celaya operations will further expand Steel Technologies’ pres- and emissions control systems company room to grow and ence in Mexico, where the company is currently building a 100,000-s.f. create additional jobs in the Bowling Green area. steel processing plant in the Bajio region of central Mexico and a The new facility will house 25 engineers and technicians 300,000-s.f. steel processing and pickling operation in Monterrey. and will serve as the design and development center for

Thorntons photo PPT’s emissions control devices, valves and actuators, accord- ■ Louisville-based gas and convenience ing to Jon Bigley, PPT’s director of engineering. store chain Thorntons Inc. has announced plans to expand into the PPT’s emissions control devices started at Holley Perfor- Tampa-St. Petersburg-Clearwater, Fla., mance in Bowling Green and was purchased by Navistar in market, a move that represents the com- early 2010. The South Carolina-based company moved its pany’s first foray into a new metro/state Bowling Green operations into the WKU Business Accelerator market since it moved into the Nash- but quickly expanded and found itself outgrowing its space. ville, Tenn., market in 2007. The first With the need for more space came the corporate discus- Florida location is set to open in Clear- sion of moving the operation out of Kentucky, according to water next spring. The company currently has 165 locations across Kentucky, Doug Rohrer, associate vice president for Research and Illinois, Indiana, Ohio and Tennessee. Development at WKU. “We met with management and showed them we could ■ Northwestern Mutual-Louisville Inc. has announced plans to add provide a first-class facility here,” said Rohrer, noting that 28 financial representatives and 60 financial representative interns in PPT that the “perfect type of company to keep in the com- 2012. The expansion is part of a nationwide effort by Northwestern monwealth” because of their need for a high-tech workforce. Mutual to recruit PPT’s Bigley said WKU’s center has provided a “wonder- more than 2,000 financial representa- ful and productive environment for research and develop- tives and approxi- ment of our product and technologies because of its mately 3,000 financial essential laboratories and high-tech resources. With the representative interns in 2012. To accommodate the growth in Louis- technical resources at WKU and the Center for Research ville, the company’s Kentucky and Southern Indiana Group has added and Development, we are positioned well to meet our prod- two new offices in Louisville over the past five years, bringing its total uct objectives over the next few years.” number of locations in the area to three. In addition to its Bowling Green facility, PPT operates a research and development center in Columbia, S.C.; a man- ■ PPG Porter Paints plans to close one of its three Louisville plants later this year, resulting in the layoff of 52 workers, according to papers ufacturing plant in Blythewood, S.C.; and casting foundries the company filed with the state. The company plans to move 90 admin- in Wisconsin and Indiana. With a recent Eaton after-treat- istrative jobs from the plant at Muhammad Ali Boulevard and 13th ment technology deal, PurePOWER now also operates a Street to its other Louisville locations. research and development facility in Santa Clara, Calif.

10 MAY 2012 LANEREPORT.COM • THE LANE REPORT

May Lane 1-22.indd 10 5/9/12 1:32 PM CADIZ: TRANSCRAFT’S $3M INVESTMENT BUSINESS BRIEFS WILL REQUIRE 80 JOBS FOR EXPANSION LOUISVILLE RANSCRAFT Corp. is investing nearly $3 million to ■ University of Louisville researcher Dr. Roberto Bolli expand its operations in Cadiz, where it produces plat- has been awarded a seven-year, $3.4 million grant from form trailers for the commercial vehicle and construc- the National Heart, Lung and Blood Institute to estab- T lish one of seven regional centers in the tion industries. Cardiac Cell Roberto Bolli Therapy Research Network. The network conducts The expansion includes construction of a new 12,000-s.f. early clinical trials of adult stem cell therapies in patients with heart disease. painting facility and the purchase of new equipment. The com- During his 18-year tenure with UofL, Bolli has generated more than $100 pany anticipates adding 80 new jobs to support the expansion. million in grants for basic research from the National Institutes of Health. Headquartered in Cadiz, Transcraft is a wholly owned subsidiary of Wabash National Corp. and is one of the lead- ■ A new study projects that the construction of two new Ohio River ing manufacturers of platform trailers in North America. bridges will increase employment by about 18,000 jobs in the Louis- Established in 1962, the company offers a wide range of flat- ville-South Indiana area over the next three decades, according to a report in The (Louisville) Courier-Journal. bed, drop deck and truck bodies sold under the Transcraft Eagle and Benson brand names. According to local reports, ■ Neace Lukens has completed the acquisition of the company is one of the area’s largest expanding industries Matrix Benefits and Consulting Group, a Fort and has created more than 300 jobs. Wayne, Ind.-based consulting firm that focuses on “Transcraft is excited to embark on the next step of dynamic employee benefits. The transaction is Neace Luken’s growth in Cadiz,” said Rick Klein, general manager of Trans- fourth acquisition this year. craft Corp. “Even with a state-of-the-art manufacturing facility PIKEVILLE and a dedicated workforce ready to meet current demand, it is ■ Pikeville Medical Center has announced plans to purchase property on necessary to increase capacity by adding new equipment and the South Mayo Trail in Pikeville that includes the Landmark Inn and the expanding our team to capitalize on a bright future.” building known as the Mark II. Medical Center President and CEO Walter E. According to Americas Commercial Transportation May said the acquisition is necessary to accommodate growth that has out- Research Co. (ACT Research), sustained high demand for paced expectations. “Even with the new Medical Office Building and parking platform trailers is forecasted for the next five years. garage set to open next year, our hospital is growing so fast it can be difficult To encourage Transcraft’s investment and job growth, the to keep up,” said May. “We’re adding physicians and specialties very quickly, and it is in the best interest of our patients to ensure we have adequate space Kentucky Economic Development Finance Authority has available when we need it.” The Landmark Inn will continue to operate as a approved tax incentives of up to $2 million. hotel and restaurant under the current management.

THE LANE REPORT • LANEREPORT.COM MAY 2012 11

May Lane 1-22.indd 11 5/9/12 1:32 PM FAST LANE

BUSINESS BRIEFS BOWLING GREEN: NEW WKU GREENHOUSE NOW PART OF NATIONAL RESEARCH LAB

PIKEVILLE Clinton Lewis/WKU photo ■ The Appalachian News-Express reports that ACS Commercial Solu- tions is closing its Pikeville call center in early June, resulting in the loss of 130 jobs. The call center handles technical support calls for Sprint.

PINEVILLE ■ The City of Pineville has signed a memorandum of understanding with Wasioto Hotel and Resort LLC to construct a $14.3 million resort hotel in Pineville, a deal that Pineville Mayor Sherwin Rader said has been in the works for more than three years. Plans call for the four- star facility to include 102 guest rooms, a 350-seat conference center, and a 100-seat restaurant. The hotel would create more than 80 full- and part-time positions in addition to some 167 construction jobs required during the building stage, which would take 18 to 24 months. The project is contingent on the approval of a restaurant tax and the sale of revenue bonds by the city. Western Kentucky University President Gary Ransdell (right) toured WKU’s STANFORD new greenhouse/headhouse facility last month with Dr. Karamat Sistani, ■ Lincoln Manufacturing USA has added 22 new jobs as part of an research leader with the U.S. Department of Agriculture’s Agricultural expansion to help meet increased product demand. LML – which Research Service (USDA-ARS). WKU held a ribbon-cutting ceremony on April received $280,000 in funding through a community development block 24 for the new 4,079-s.f. facility, which will be part of a national laboratory/ grant awarded to the Stanford-Lincoln County Industrial Authority to office complex housing the USDA-ARS Animal Waste Management Unit. support the expansion – is a metal stamping facility that has the ability Sistani said the new facility will enhance the research currently under way to produce a wide range of parts, from simple stampings to close toler- at the USDA-ARS unit. “To be a university that is not a historic land-grant ance critical parts, and the capability to weld, machine and deburr parts university, work like this puts us on par with many land-grant universities,” for the automotive industry. Ransdell said. “Work like this with the USDA and our Department of Agriculture is as high a priority as any we have.” WEST LIBERTY ■ The Appalachian Regional Commission has committed $100,000 in funding to help rebuild the city of West Liberty and Morgan STATE: WHITESBURG, HENDERSON MINES County, which suffered extensive damage after devastating storms and tornados moved through the area in March and damaged or destroyed TO CLOSE; 500-PLUS COAL JOBS LOST every city, county and state facility in the area. The funds will be used to hire an architect to develop a conceptual plan for the professional ITING a warmer than usual winter that resulted in rebuilding of the city of West Liberty and Morgan County, including decreased demand, two coal companies are laying off designs for streets, traffic flow, land use, cultural aspects and tourism. Ca total of more than 300 employees at Kentucky mines in Whitesburg and Henderson County. WINCHESTER ■ Sapphire Coal Co. has announced plans to close its Clark Regional Medical Advantage mine in Whitesburg by mid-June, resulting in the Center held a grand opening ceremony on March 16 for its layoff of 163 workers. On the other end of the state, Patriot new $60 million, 79-bed facil- Coal Corp. is closing its Freedom mine in Henderson ity in Winchester. Designed by County, leaving 156 workers without a job. According to a Louisville-based Stengel Hill local report by The (Henderson) Gleaner, seven employees at , the 131,000-s.f. Architecture the Bluegrass mining complex office in Henderson may hospital features enhanced also be laid off and up to 37 healthcare information technology capabilities, including people may be let go from electronic medical record sys- the Grand Eagle coal prep tems with bedside computer chartering at all patient care locations, and plant in Henderson, bringing is the first hospital in the state with a 100 percent geothermal heating the total number of Hender- and cooling system. A three-story, 45,000-s.f. medical office building is son-area jobs lost to 200. also being constructed on site and is expected to be open by August. “Thermal coal markets STATE remain weak as a result of the mild winter, coupled with low natural gas prices and reduced ■ The Regional Leadership Coalition, bi-state, non-partisan organization of regional leaders, has rebranded itself as the Kentucky Indiana demand for electricity related to the economic downturn,” Exchange to better reflect the organization’s regional scope and pur- said Patriot Executive Vice President & Chief Operating Offi- pose. Established in the late ’90s, the organization has championed cer Bennett K. Hatfield. “We are taking this step to align regional initiatives such as the Ohio River Bridges Project, Tuition Reci- production with committed sales.” procity and greater collaboration among area chambers of commerce. Hatfield noted that the company had already idled three smaller thermal coal mines in the first quarter and that counting the Henderson County closing, the company has Submissions Welcome reduced annual thermal production by more than 4 million tons compared with 2011. As a result, Patriot is not produc- To submit news and photographs for publication in Fast Lane, please send via e-mail to [email protected] or mail ing any thermal coal this year that has not already been sold. information to: The Lane Report, 201 East Main Street, 14th Floor, Bill Bissett, president of the Kentucky Coal Association, Lexington, KY 40507-2003. told The Lexington Herald-Leader that a number of factors have Color photographs are preferred, either in standard form or digi- contributed to the industry’s woes. Bissett cited lower tal. For digital photographs, a resolution of 300 dpi is required, for- demand from manufacturers, who have been struggling matted in either jpeg or tif. through the economic downturn, and stronger federal regulation of coal-fired power plants.

12 MAY 2012 LANEREPORT.COM • THE LANE REPORT

May Lane 1-22.indd 12 5/9/12 1:32 PM THE LANE REPORT • LANEREPORT.COM MAY 2012 13

May Lane 1-22.indd 13 5/9/12 1:32 PM INTERSTATE LANE Business news from Indiana, Ohio, Tennessee and West Virginia

BUSINESS BRIEFS WEST VIRGINIA: SOUTH CHARLESTON SITE WILL BE GESTAMP AUTOMOTIVE PLANT

INDIANA ESTAMP, a Spanish automotive company, has ■ Whirlpool Corp. has agreed to announced plans to invest a minimum of $100 mil- pay the State of Indiana Glion to reopen a stamping plant in South Charleston, $800,000 to resolve all tax cred- bringing hundreds of jobs to the area. its and incentives associated with West Virginia Secretary of Commerce Keith Burdette told the loss of employment in the The Charleston Gazette that the company “will employ about company’s Evansville facility. Fol- 175 people within 12 to 16 months and 400 to 500 within lowing a significant layoff of three to five years.” As of April 19, nearly 1,700 people had manufacturing jobs in 2009, Whirlpool agreed to preserve applied for jobs. 260 full-time positions in Evansville in order to retain previ- The company expects to have some staff working in the ously awarded tax credits. But as part of its organizational plant by late summer or early fall. efficiency efforts, Whirlpool recently relocated most North Gestamp is an international group that specializes in the America procurement positions, including some from Evans- design, development and manufacture of metal components ville, to the company’s global headquarters in Michigan. The and structural systems for the automotive industry. The com- company’s refrigeration research, engineering and design pany is a supplier for nearly all of the major automotive functions remain in Evansville, where the company has companies and has some 120 locations worldwide. approximately 230 employees. The South Charleston plant, which has been vacant since 2006 according to local reports, contains more than 1 million OHIO s.f. and is situated on a 30-acre site. The facility has been owned ■ Multi-Color Corp., a Cincinnati-based company that pro- by Ray Park since 1969 and over the years has been leased by duces labels for a broad range of industries, has acquired a , , , Scottish company for approximately $26 million. American Motors Corp. Chrysler Volkswagen Checker Labelgraph- Motors Corp., Mayflower and Union Stamping & Assembly. ics, headquartered in Glasgow, Scotland, primarily produces The last tenant, Union Assembly, closed in 2006 after declaring labels for the United Kingdom spirit and wine markets. bankruptcy. Park subsequently invested some $20 million to renovate the plant, with the state putting another $15 million ■ Cincinnati’s low costs for facility leasing, transportation toward the renovation. and property taxes contributed significantly to its ranking as the least-costly location to do business in the United States among the 27 largest metro areas (all with popula- INDIANA: CUMMINS SEYMOUR EXPANSION tions exceeding 2 million), according to a study by KPMG LLP. Atlanta was the second most cost-competitive location TO INVEST $219M, ADD 290 AUTO JOBS in the large-cities category, followed by Orlando, Tampa and Dallas-Fort Worth. UMMINS is investing $219 million to expand its campus in Seymour, Ind., where it will add new ware- ■ Bridgestone Ameri- Chouses, additional engineering and production test cas Inc. has opened a cells and a cylinder-block line. new $100,000 mil- The Columbus, Ind.-based engine company will also con- lion technical center in Akron, one of only three technical struct a new office building that will house up to 500 employ- centers for the company worldwide. The center houses some ees and a new manufacturing facility for after-treatment 450 employees who develop advanced tire technologies for components for high-horsepower engines. the Nashville, Tenn.-based company. Cummins currently employs 525 associates at its Seymour engine plant TENNESSEE and more than 7,800 employees ■ Memphis-based Pinnacle Airlines Corp. and its subsidiaries across the state. The Seymour expan- filed for Chapter 11 bankruptcy last month as the company sion will result in the addition of up struggles to address operational and financial difficulties in to 290 new jobs by 2015. The project the cutthroat airline industry. Airline officials said they plan represents the third major expansion to continue operating as the company works to reduce costs in Seymour in the last two years. In by restructuring operating agreements and achieving cost sav- that time, Cummins has added new ings from its workforce. Pinnacle has already furloughed 450 engineering and production test cells, constructed a new of its 2,860 pilots. shipping and receiving dock, enlarged the energy center and begun work on the QSK95 and the QSK120, two of the ■ Opry Mills, a regional shopping mall in Nashville and one of most powerful high-speed diesel engines being produced in the largest retail centers in the state, has reopened after being the world. closed for nearly two years. One of Tennessee’s top tourist Cummins, which ranks as the world’s largest independent attractions, the mall suffered serious damage after an historic producer of diesel engines, saw record earnings in 2011 and flood ravaged the Nashville area in May 2010. expects continued strong growth this year. Much of the future growth is likely to be in international markets: 70 per- WEST VIRGINIA cent of the QSK95 and the QSK120 engines produced in ■ Simonton Windows is adding 160 full-time positions at its Seymour are expected to be exported. plant in Ritchie County. The expansion will support the com- The company has a network of 600 distributor facilities pany’s launch of its Asure line of energy-efficient replacement and more than 6,500 dealer locations in over 190 countries windows and patio doors. and territories.

14 MAY 2012 LANEREPORT.COM • THE LANE REPORT

May Lane 1-22.indd 14 5/9/12 1:32 PM KENTUCKY INTELLIGENCER® A sampling of economic development data

$80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0

THE LANE REPORT • LANEREPORT.COM MAY 2012 15

May Lane 1-22.indd 15 5/9/12 1:32 PM CORPORATE MOVES New leadership for Kentucky businesses

ARTS ■ Bill Thom- ■ Meredith McDonough has been named ason has DEPARTURES associate artistic director for Actors Theatre of been named ■ Chris Sternberg, senior vice president Louisville. president and of corporate communications and general chief execu- counsel for Papa John’s International Inc., BANKING tive officer of has resigned from his post to return to pri- ■ Forcht Bank has named Keeneland vate law practice. Jason E. Stuecker as mar- Association. Bill Nick ket president for the Louis- Thomason Thomason Nicholson ville market. succeeds ■ Bill Robinson has been named editor of Nick Nicholson, who has announced plans to The Richmond Register. ■ Peoples retire in September. Exchange UTILITIES Bank and FOOD/HOSPITALITY ■ Charlie Boland has been Insurance Jason E. ■ has been named president of named major accounts/exter- Stuecker Rick Carucci has named Louisville-based Yum! Brands Inc. Patrick nal affairs specialist for Ken- Les Jarvis as president of Grismer, chief planning and control officer, tucky American Water. the Scott County market. has been named to succeed Carucci as chief financial officer. OTHER Les ■ has ■ has joined Jarvis Jeannine M. Petell Jay McCants Charlie joined Community Trust GOVERNMENT The Kentucky Retail Federa- Boland Bank in Lexington as vice president. Ricky ■ Sean Burgess has been tion as director of association Peterson has been promoted to market assis- named state apiarist for the services. tant vice pres- Commonwealth of Kentucky. ident and will ■ Charah, be the new HEALTHCARE Inc., a Louis- branch man- ■ Norton Healthcare has ville-based ager of the named Charlotte Ipsan pres- Sean provider of Community ident of Norton Women’s Burgess coal combus- Trust Bank Hospital/Kosair Children’s tion product Danville Hospital – St. Matthews. management Manor office. Jeannine Ricky and power Jason Brian M. Petell Peterson ■ has been named director of plant support Heidi Wilhelm Sharpe Himes ■ Dana Long has joined Peo- development for Flaget Memorial Hospital services for ples Exchange Bank in Foundation in Bardstown. the coal-fired Georgetown as market opera- electric utility tions manager. industry, has named EDUCATION Jason ■ Marcia A. Hawkins, Sharpe a s Ph.D., has been named as vice presi- Dana the new president of Union dent of oper- Long College in Barbourville. ations. Nathan Scott Brian Boone Sewell Thomas D. H. Trigg Nicole Sergent Himes has ■ Denise M. Cumberland Flanigan Mitchell Biddle been named business development manager. has joined Spalding Univer- Nathan Boone has been promoted to senior sity in Louisville as director of LEGAL vice president of business development. Scott the Master of Business Com- ■ Thomas Sewell has been promoted to senior vice pres- munication program. D. Flanigan ident of operations. has joined the ■ Deb Weis has been named firm of ■ Casey Adams has been director of the Innovation McBrayer, named executive director of Denise M. Network for Entrepreneurial McGinnis, Masonic Homes of Kentucky’s Thinking (iNet) at the Uni- Cumberland Leslie & Kirk- Cecil F. Jason Miralea Independent Living versity of Kentucky. land as a part- Community in Louisville. Dunn Morgan ner. H. Trigg ■ Geoffrey S. Mearns has Mitchell and Nicole Sergent Biddle have ■ Donald Lassere has been been selected as the new presi- joined the firm as senior associates. Cecil F. named president and chief Casey dent of Northern Kentucky Dunn has joined the firm as of counsel. Jason executive officer of The Adams University. Morgan has joined the firm as an associate. Muhammad Ali Center in Louisville. ■ Dr. Marlene M. Helm has ■ Whitney Calvert has been appointed vice presi- joined the Lexington office ■ Laura dent for academic affairs at of Dinsmore as a partner in Leve has Midway College, a newly cre- Geoffrey the corporate department joined Lex- ated position that is the col- S. Mearns and a member of the mergers ington-based lege’s top academic post. and acquisitions and natural CLARK Mate- resources practice groups. rial Handling ■ Robert Lakes has been named director of Whitney Co. as nation- Midway College’s McKee campus in Jackson MEDIA al accounts Calvert Laura Mike County. ■ has been administra- Wesley Jackson Leve Crawford named publisher of The (Louisville) Courier-Journal. tor. Mike EQUINE Pam Platt has been named editorial director. Crawford has joined the company as the ■ Craig Wiley has been named executive direc- quality engineer. tor of the Race Track Chaplaincy of America. ■ Lorie Hailey has been named associate editor of The Lane Report.

16 MAY 2012 LANEREPORT.COM • THE LANE REPORT

May Lane 1-22.indd 16 5/9/12 1:32 PM ON THE BOARDS Kentuckians named to organizational leadership roles

EASTERN KENTUCKY health policy through grant making, research & Trust. Mulloy is chairman and chief executive EXPOSITION CENTER CORP. and education. Hunter is a licensed occupa- officer of Elmcroft Senior Living. ■ Timothy S. McNamee, Charles J. Baird tional therapist and serves as director of and Danny T. VanHoose have been named research at Cardinal Hill Rehabilitation Hospi- STATE HIGHER EDUCATION to serve on the board of directors of the East- tal in Lexington. EXECUTIVE OFFICERS ern Kentucky Exposition Center Corp. McNa- ■ Bob King, president of the mee, of Forest Hills, is the owner of Hurley JEWISH HOSPITAL Kentucky Council on Postsec- Drug Co. Inc. Baird, of Pikeville, is an attor- HEALTHCARE SERVICES ondary Education, has been ney. VanHoose, of Tutor Key, is the director ■ Attorney Louis I. Waterman has been elected to the executive com- of marketing for Appalachian Wireless. named chairman for the Jewish Hospital mittee of the State Higher HealthCare Services board of trustees. Education Executive Officers, EDUCATION a nonprofit nationwide asso- FINANCE COUNCIL KENTUCKY COUNCIL ciation of the chief executive Bob ■ , executive director OF BUSINESS SCHOOL DEANS officers governing boards of Edward Cunningham King and chief executive officer of Kentucky Higher ■ Dr. Tim Todd, dean of the postsecondary education. Education Assistance Authority and Kentucky Arthur J. Bauernfeind College Higher Education Student Loan Corporation, of Business at Murray State SPECIAL OLYMPICS KENTUCKY has been elected chair of the board of direc- University, has been named ■ Byron Largen, a partner at Mountjoy Chil- tors for the Education Finance Council. Based chair of the Kentucky Council ton Medley, has joined the Special Olympics in Washington D.C., EFC is a national associa- of Business School Deans. Kentucky board of directors. tion of nonprofit and state agency student finance organizations dedicated to making PADUCAH AREA UNIVERSITY OF KENTUCKY college more affordable. CHAMBER OF Tim ATHLETICS COMMITTEE COMMERCE Todd ■ The University of Kentucky has announced FOUNDATION FOR A ■ Leon Owens, of Swift & the appointment of an eight-person athletics HEALTHY KENTUCKY Staley Mechanical Contrac- committee that will provide advice to the pres- ■ Beth Hunter, Ph.D., has tors, has been elected as an ident on the athletics department’s budget as been named to serve on the officer for the Paducah Area well as programs and initiatives regarding the community advisory commit- Chamber of Commerce. academic and athletic progress of the univer- tee of The Foundation for a sity’s 500 student athletes. Those named to the Healthy Kentucky, a non- REPUBLIC BANK committee include: C.B. Akins, Terry Mob- profit philanthropic organiza- ■ has been elected , , , Beth Pat Mulloy Pat ley Frank Shoop Keith Gannon Sheila tion that invests in to the board of directors for , , Hunter Mulloy Brothers Paula Hanson Davis Marksbury communities and informs Louisville-based Republic Bank and Vickie Bell.

THE LANE REPORT • LANEREPORT.COM MAY 2012 17

May Lane 1-22.indd 17 5/9/12 1:32 PM LANE ONE-ON-ONE Kentucky’s leaders express their opinions

crises in Europe, Republicans in Congress, Mitch McConnell rich people, Wall Street and the U.S. Mitch McConnell has served as the U.S. sena- Supreme Court. It’s anybody but him. The tor from Kentucky since 1984, making him the longest-serving U.S. senator in Kentucky American people cannot be fooled into history. Prior to his election to the Senate, thinking that this election is anything McConnell served as judge-executive of Jef- other than a referendum on the presi- ferson County for six years. McConnell dent’s performance. The president has received his bachelor’s degree from the Uni- been in office for four years. How good versity of Louisville before going on to earn was his job performance, and does it war- his law degree from the University of Ken- rant the president being re-elected for tucky. During his final semester of law school, McConnell worked as an intern for Senator another four years? John Sherman Cooper and later served as chief legislative assistant to Senator Marlow EL: Will the Patient Protection & Afford- Cook and as deputy assistant attorney general ability Act be implemented or stopped? to President Gerald Ford. In addition to MM: Americans have one intervening being the Republican leader of the Senate, event between now and the election – McConnell currently serves as a senior mem- the Supreme Court’s decision on the ber of the Appropriations, Agriculture and Rules Committees. McConnell is married to constitutionality of Obamacare. The Elaine Chao, former U.S. secretary of labor court had three days of oral arguments; under President George W. Bush and former it’s been 40 years since the court has president of the United Way. given that much time to a case. That’s the definition of a big case. The argument is pretty easy to ‘AMERICA IS AT A CROSSROADS’ understand. Can the federal government, under the commerce laws, Mitch McConnell, Kentucky’s senior senator and Republican leader require you to buy health insurance of the U.S. Senate, discusses big government and America’s future because your failure to do so would adversely affect the healthcare cost of someone else? The plaintiffs are argu- BY ED LANE ing, if the federal government may order you to eat carrots, could it also order you to quit smoking or lose Ed Lane: Senator McConnell, this year the recession the quicker the bounce- weight? In other words, the plaintiffs may be the most significant political back – until now. are arguing that there are no commerce year in many. Issues that will or could be The country is in serious trouble. I laws that allow the federal government decided include future nominations to don’t see any evidence that President to order you to do this. I don’t know the U.S. Supreme Court, implementa- Obama is going to have an epiphany what the Supreme Court will decide. tion of the Patient Protection and and go in a different direction based on If the individual mandate violates Affordable Care Act (Obamacare), con- the six months of discussions I, along the commerce laws, then the Supreme trol of both houses of the U.S. Congress with the Speaker (of the House John Court’s second decision is: Does it strike and the 2012 U.S. presidential race. Boehner), had with him last year about down the whole law or just part of it? Assuming that former Gov. Mitt Rom- the issue of deficit budgets and escalat- We’ll have some understanding of ney (R) and President Barack Obama ing debt. So, it is extremely important where that issue is headed after the (D) are the standard bearers for their that the country change direction. Supreme Court speaks. parties, who do you believe would be The November 2010 election was a Let’s assume the court says Obam- their most likely running mates? national restraining order. The American acare is constitutional; it’s perfectly Mitch McConnell: The reason I’d rather people took a look at all the things that alright for the federal government to do not comment is because, in the end, it happened when the Democrats owned this. Obamacare is still a huge mistake. almost never makes any difference who the government, and they didn’t like it. In the past, there have been plenty of the running mate is. But let me say, and I The voters didn’t like the fact that Con- decisions that are not unconstitutional confess to having said on several occasions gress passed an almost trillion-dollar stim- but were still the wrong thing to do. in the past, that this year’s election will be ulus bill and Obamacare. And they didn’t Obamacare is extremely unpopular – the biggest ever. America is at a crossroads; like the 43 percent increase in the U.S. more unpopular today than it was when its debt is now the size of our annual econ- debt. The voters took a look at all of that it was passed. It will be a major issue in omy (GDP). That alone makes our econ- and said, “Stop it.” the fall campaign, outranked, in my omy look a lot like Greece’s. The Obama The voters are going to make a major opinion, by joblessness, the sorry state administration has basically, with 150,000 decision this November. Which way do of the U.S. economy and a rash of regu- new federal employees, taken over regulat- they want America to go: to become a latory activity. Remember what former ing the entire American economy. Not just Western European country and continue Speaker of the House Nancy Pelosi (D) in healthcare and financial services with in the direction of Greece, or do they want said about Obamacare: “We need to their newly passed bills, Obamacare and America to be an “opportunity society” pass the healthcare law so we find out Dodd-Frank (Wall Street Reform and Con- that encourages business and applauds what’s in it.” sumer Protection Act) – but everywhere. rather than condemns success? The regulators are busy all across the As a result, our economy has experi- If you look at President Obama’s cam- board, but they’ve been particularly enced the slowest recovery from a deep paign so far, it can be summed up by say- vehement in healthcare and financial recession in American history. Previ- ing, “It’s not my fault.” The president has services where there are two new laws, ously, the case has been that the deeper blamed the tsunami in Japan, the debt Obamacare and Dodd-Frank.

18 MAY 2012 LANEREPORT.COM • THE LANE REPORT

May Lane 1-22.indd 18 5/9/12 1:32 PM The Independent Payment Advisory the place to do business, we’ve got a Board (IPAB) is the panel that will problem. That’s happening already. In decide, in a sense, who “makes it” and my extra job as the Republican leader, who doesn’t by rationing healthcare. I move around the country quite a bit IPAB doesn’t answer to anybody. and interact with people employed in There’s a similar agency under Dodd- the private sector. I always ask and Frank called the Consumer Protection request for a show of hands, “Is Amer- Financial Bureau (CPFB) that also ica still the best place to do business?” answers to no one and gets to deter- No longer do I get a unanimous mine whether a business is too big to response. That’s a tell-tale sign. In the fail or not. When CPFB thinks a busi- global economy, every job doesn’t have ness is too big to fail, the taxpayers have to be in the U.S.; America is no longer another bailout. the only secure and business-friendly There has been an explosion of gov- place in the world to invest money. ernment far beyond anything America Kentucky U.S. Senators Rand Paul and has done in the past. Federal spending EL: Could you comment on the U.S. Mitch McConnell are pictured at a joint is up to 24.5 percent of the U.S. gross energy policy? appearance in Washington D.C. domestic product. MM: It’s non-existent. The Obama administration’s energy policy is to play duction. The facts are that on land EL: Do you feel corporate managers, venture capitalist with our tax money controlled by the federal government, small-business owners and entrepre- by investing it in companies like Solyn- production is down 14 percent. The neurs are not expanding their busi - tra (which went bankrupt in 2011) that increase in U.S. oil production has nesses because of uncer tainty in the are not commercially viable. The fed- been on state-controlled and private future economic and regulatory envi- eral government lost more money in land and is all related to new technol- ronment? Are they being fiscally conser- that one company than Kentucky ogy, hydraulic fracking and horizontal vative and holding cash r eserves rather received for roads and bridges in the drilling the president had absolutely than investing their capital? trillion-dollar stimulus. nothing to do with. MM: Regulations. Litigation. America Gasoline is $3.75 to $4 per gallon, Further evidence is the president’s is becoming not very business-friendly. and the president has been running delay of the Keystone XL Pipeline, the Just as soon as America becomes a around trying to make it look like he’s single biggest private-sector construc- place that people no longer think of as in favor of additional American pro- tion project in America, that would have

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put 20,000 people to work almost immediately and bring oil and gas from our friendly neighbor Canada instead of from Venezuela and Saudi Arabia. This administration has no energy policy other than to promote highly expensive electric cars that people don’t want to buy and to give our tax money to high- risk green energy companies that are not that commercially viable.

EL: The General Services Administra- tion and the Secret Service have both received criticism from Republicans and Democrats alike for alleged waste, fraud, mismanagement and in some situations, immorality. How widespread are these problems in U.S. government and who should be responsible? MM: Both are now being investigated. A larger problem is the U.S. government is way too big. It has too many federal employees and is spending way too much money. In addition to that, you’ve seen the statistics that indicate the average public-sector worker makes more than the average private-sector worker. When you and I were younger, the feel- ing was that if you went into the public sector you were making a financial sacri- fice, and you were going to live on less than somebody who went into the private sector. The GSA and Secret Service incidences need to be investigated, and people need to be fired who were responsible for it. The larger question is why is the government so big? Why is it now more profitable to work for the taxpayers than it is to work in the private sector? Government compensation is all out of kilter. That infection has gone from the federal level to the state and local sectors, too. State government (Ken- tucky) and the mayor of Lexington (Jim Gray) are wrestling with pension problems. Government is so excessively gen- close, one way or the other. Either the problems we couldn’t resolve last year in erous with public employees, not only Democrats are going to have a narrow the endless discussions related to deficit in terms of what they are making now edge to be the majority party or Repub- spending and debt that the speaker and I but also what they may receive in terms licans will. It would take 67 Senators to had with the president. Generally, it takes of retirement packages. If you look at be veto-proof. Most votes in the Senate some kind of precipitous action or crisis to the unfunded liabilities of state and require 60 yeas. The Democrats had 60 get a solution. We thought the president’s local governments across the America, votes when they passed Obamacare, request for Congress to raise the debt ceil- they have huge problems, too. ran up the debt and did all the things ing would provide that opportunity. We There’s a missing person in every they did in the previous Congress. But were not able to get the kind of deal that negotiation. You have the elected offi- neither party is likely to have that kind made a real significant difference. At the cial and the union leader. The missing of blowout election and the 67 votes end of this year, the Bush tax rates are person is the taxpayer. It’s pretty easy needed to override a presidential veto. expiring, and whoever the president is, for the current officeholder to promise this one or the next one is going to have to things that are going to be given down EL: The so-called “Bush tax cuts” may raise the debt ceiling again. It takes the the road because he or she won’t be be eliminated, Social Security withhold- perception of a crisis situation to actually around to have to deal with it. ings are slated to be increased, and a pull Congress back together. How the number of other tax rates will rise at the election comes out will have a big impact EL: What is the likelihood one par ty in end of this year. What should taxpayers on how these issues are resolved. This is a the U.S. Senate will have a veto-pr oof expect on Jan. 1, 2013? big election. majority after the fall elections? MM: It may surprise you, but it may actu- MM: Zero. At the end of the election, ally be an opportunity for Congress to get the U.S. Senate is going to be really back at the table and solve some of the Continued on page 22

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May Lane 1-22.indd 21 5/9/12 1:32 PM LANE ONE-ON-ONE

22 10.4 21 10.0 20 9.6 19 9.2 18 8.8 17 8.4 16 8.0

Continued from page 20 oners in effect, whom the government it going the way of the buggy whip and pays very little, and would have the Polaroid camera? EL: A recent vote on the “Buffett Rule” destroyed 100 private-sector jobs. MM: That is a very good question, and to increase the minimum U.S. income The larger questions are also relevant. the Postal Reform Bill is on the Senate tax rate for individuals earning over $1 Kentuckians are also a part of America, floor as we speak. It’s a tough problem. I million in ordinary and capital gains and we’re suffering from an even higher don’t know in the end how it’s going to income recently failed in the U.S. Sen- unemployment rate than the U.S. come out, but people are very concerned ate. Can you explain the vote? national average. An improved economy about losing rural post offices and Satur- MM: The Buffett Rule vote was to raise would greatly benefit all Kentuckians. day delivery. The post office is in trouble, taxes on investment income, and the and Congress is going to have to decide Congressional Budget Office said that it EL: How effective has Rand Paul been how to save it. Its biggest competition is would produce about $5 billion a year during his first year as Kentucky’s junior the Internet. More and more people are in additional (federal) income. Just to senator? simply paying their bills online, and that’s put that into perspective, it would take MM: Quite effective. He’s very passion- a trend we anticipate continuing. 250 years for that revenue to cover this ate about spending and debt, very ener- year’s deficit. In other words, it wasn’t a getic, offers a lot of amendments, is easy EL: Do you have a comment on Rick serious proposal. Almost all of my mem- to be around and has a great sense of Pitino and the UofL Car dinals, and bers voted against it. The president sold humor. He’s well liked by his colleagues, John Calipari and the UK Wildcats? it in terms of deficit reduction, but it and in a business like ours that’s so peo- MM: It was just one exciting year to have was a political gimmick. ple intensive, personality is important. two Kentucky basketball teams in the Congress needs to pass a tax reform He’s helped focus attention on debt NCAA Final Four. Both coaches did a bill. Let me give you a couple of statis- and deficit. Rand is a very constructive great job. Rick took a team that didn’t tics. Under the current tax code, the part of the U.S. Senate. have a single player who made first-, top 10 percent of taxpayers already pro- second- or third-team All-Big East (Con- vide 70 percent of the revenue for the EL: What impact will EPA regulations ference teams) into the Final Four. federal government; 45 to 50 percent have on the cost of electric utilities and What Coach Cal did was equally remark- pay no income taxes at all. The U.S. the coal industry in Kentucky? able because it was always said you already has the most progressive tax MM: There’s a guy who runs a utility couldn’t win with “one and done” kind code in the world. Having said that, the company in Cleveland who was in the of players, and he did. tax code is a mess. It is time to do com- office the other week. He shut down Coach Cal has a lot of pride in his prehensive tax reform again like the four power plants and laid off hundreds players. He was in my office one day, and one (President Ronald) Reagan and of people in the wake of new EPA regu- I was kidding him about making million- (Speaker of the House Tip) O’Neal did. lations. You’ve seen what the EPA has aires. When asked about making million- The new tax code ought to be largely already done to utility rates in Kentucky. aires by Sports Illustrated, the coach was revenue neutral. The idea is not to raise The Kentucky Public Service Commis- quoted saying, “Mitch McConnell asked taxes but to try to get the code into a sion had to approve significant increases me, ‘How many will leave this team, do more competitive form. in utility rates to cover new EPA man- you think?’ I said, ‘Seven – five starters dates. One of Kentucky’s aces in the and two seniors. If we play well, they’ll all EL: What are the key initiatives and hole was having the lowest utility rates have opportunities.’ The senator said, issues you are working on that ar e of in the country. The EPA is running ‘You are creating more millionaires than special significance to Kentucky? amok, but it does not have new legisla- a Wall Street firm.’ ” MM: I’ll give you an example of some- tion or an excuse as is the case of health- The coach is very proud of his player’s thing we were able to do that made a care and financial services. With the success, and should be. Most of the young- difference to about 100 people. The EPA, it’s just additional activity by new sters he has made quite wealthy come from organization called Prison Industries regulators with a new attitude. There’s very difficult circumstances, and he has decided they were going to start making no question the EPA wants to put the helped them find their way to much more jackets for the Air Force, which would coal industry out of business. comfortable lifestyles, not only for them- have put out of business a company in selves but for their families. ■ Olive Hill; it had 100 hardworking peo- EL: The U.S. Postal Ser vice is being ple making jackets for the Air Force and squeezed between the high efficiency of another camouflage-type apparel for worldwide package shippers and the Ed Lane ([email protected]) the Army. I raised hell about it, and free and immediate electronic transmis- is chief executive of Lane Consultants, miraculously enough they stopped. sion of documents over the Inter net. Inc. and publisher of The Lane Report. That work was going to be stolen by pris- What is the future of the post office; is

22 MAY 2012 LANEREPORT.COM • THE LANE REPORT

May Lane 1-22.indd 22 5/9/12 1:32 PM HEALTHCARE & WELLNESS

chronic condition, accounting for three-quarters of healthcare costs. “This is not sustainable in our society,” Frieden said. The CDC has identified seven areas where improvements can be made: • Tobacco use • Nutrition, obesity, food safety and physical activity • Healthcare-associated infections • Teen pregnancy • HIV/AIDS • Motor vehicle injuries and • Heart disease and stroke. Employers can play a significant role in prevention and save a lot of money, the CDC chief said. “Businesses have a real stake in prevention,” Frieden said. “If you just look at how much someone with obesity, smoking and diabetes costs per year, businesses can play a big role in how they design health benefits – if they pay for health benefits. They can say, ‘Alright, we’re going to make sure that prevention is no cost-sharing, because it’s going to save us money in the long run.’ ” Employers also can make sure onsite THE ENEMY WE KNOW food is healthy and safe, preventing food-borne illnesses. They also should CDC Chief: Prevention, intervention ‘best buys’ for America’s health make their workplaces tobacco free. “And they can do a lot to help smok- BY LORIE HAILEY ers quit because that’s going to save them money. Plus, people not going out for a smoking break is going to increase EALTHCARE’S best spent dollars Research, which is housed at the Uni- their productivity as well,” Frieden said. are in prevention and interven- versity of Kentucky College of Public Businesses have been slow to imple- Htion, according to Dr. Thomas R. Health and funded by the Robert Wood ment such suggestions because the Frieden, director of the Centers for Dis- Johnson Foundation. investment return is not immediate and ease Control. Chronic diseases are the leading obvious, he said. “The biggest challenge for health cause of death in the United States, but “Prevention is kind of like the dog research, for public health and for clinical much of that loss of life is preventable not barking in the night: When it medicine moving forward is how to be as with current technologies, Frieden said. doesn’t happen, you don’t see it,” Frie- one program, focused on improving More than 700,000 deaths in 2010 were den said. “That’s why monitoring is so health status,” he said, “from the public caused by heart disease and stroke. Cancer important, so we can identify what’s health department, from the university, killed 574,000 Americans, and uninten- working and do more of it.” ■ from the clinical provider, from the com- tional injuries claimed 118,000 victims, munity health center, from the pharmacy, according to preliminary data from the Lorie Hailey is associate editor of The Lane Report. from the school, from the workplace.” National Vital Statistics Report that Frie- She can be reached at [email protected]. Employers can play an important den presented. role with wellness programs connected Americans are more likely to die before to their health insurance plans. age 75 from conditions that are prevent- Improving health is the biggest chal- able by healthcare, and the United States lenge facing the nation, Frieden empha- is making slower progress in preventing sized during his “Saving Lives and these conditions than other countries. Saving Money: Best Buys in Health” pre- “Over the past 15 years, the world sentation to several hundred healthcare has left us in the dust,” Frieden said. providers from around the nation who Other countries “have significantly gathered at April’s Keeneland Confer- reduced conditions that are preventable ence at the Lexington Convention Cen- through healthcare, (and reduced) ter. The annual conference is billed as a deaths due to conditions preventable premier national meeting focused on through healthcare, and we have not.” advancing the science, policies and The result, he said, is that chronic dis- delivery of programs and services to eases are the leading cause of U.S. death Dr. Thomas R. Frieden, director of the Centers protect and improve Americans’ health. and disability, with 1.7 million people for Disease Control, discusses healthcare It is sponsored by the National Coor- dying of chronic diseases each year. challenges with one of the participants of dinating Center for Public Health and Half of all Americans – about 133 the annual Keeneland Conference, a national Public Health Systems and Services million people – have one or more healthcare meeting conducted in Lexington.

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May Lane 23-44.indd 23 5/9/12 1:27 PM COVER STORY

Participants climb utility poles in Somerset Community College’s lineman training program

Rewiring the Job Market

ented curriculum, at KCTCS’ 16 Faster and cheaper than a degree, certificate program institutions across the state. credential numbers up 473% in Kentucky since 2001-02 “We offer all kinds of (skills) certificates, from as little as six credit BY ABBY LAUB hours all the way up to 30 hours,” KCTCS Chancellor Dr. Jay Box ITH U.S. student-loan couple of years later in 2010-11, more said. “All of these certifi- debt this year eclips- than 60 percent of KCTCS’ 27,813 pro- cates were developed Dr. Jay Box, ing $1 trillion and gram completions were for certificate for the purpose of meet- Chancellor, escalating tuition costs credentials rather than associate’s or ing the needs of busi- KCTCS for the job market’s bachelor’s degrees. nesses and industry, and the lengths traditionalW gold-standard four-year col- In fact, beginning in 2009-10, cer- are determined by the level of job that lege degree showing little sign of slow- tificates surpassed bachelor’s degrees the skills require.” ing, skills training certificate programs awarded by Kentucky’s public colleges Certificate earners often get jobs are proving their worth. and universities. As recently as 2001- quickly. Among students who left Kentucky Community and Technical 02, four-year baccalaureate degrees KCTCS in 2009-10 with a fresh certifi- College System enrollment has outnumbered certificates more than cate, Middleton said, more than 62 increased steadily in recent years, 3-to-1. percent were employed within six KCTCS Public Relations Manager Kristi Commonwealth residents earn the months – and that doesn’t include the Middleton said, most notably in 2009 as vast majority of certificates, which con- self-employed and those who work out recessionary unemployment climbed. A firm completion of a specific skills-ori- of state.

24 MAY 2012 LANEREPORT.COM • THE LANE REPORT

May Lane 23-44.indd 24 5/9/12 1:27 PM KCTCS’s lineman certificate program was developed at the request of Kentucky electric companies.

Lineman grads have high placement rate Some who earned certificates went to work as apprentices and later became journeymen with Jackson Energy Cooperative, for example. The company’s heavy recruitment from the lineman training program at KCTCS’s Somerset Community College is testa- ment to the viability of certificates as immediate job creators without the cost of a four-year degree. The lineman program was developed at the request of electric companies in Kentucky. SCC partnered with local, state and national entities to create a state-of-the-art facility to training unemployed applicants for the lineman trade. The first eight-week course began in 2008, and the program is now in its 19th consecutive class. It boasts a 96 percent placement rate, having placed 245 into careers with RECCs, municipal power companies and major line-construction companies. In a state and national economy with unemployment numbers consistently above 8 percent since 2009, such numbers are not to be ignored, especially considering the basic program can be completed in only eight weeks. Carol Wright, chief operations officer at Jack- son Energy Cooperative, said the skills taught begin with learning the tools associated with the industry and such basics Carol Wright, as how to climb a pole. man, whether it be an electric utility, All the apprentices Jackson Energy COO, “The hands-on train- telephone, cable or fiber(-optic line) has hired since 2008 are graduates of Jackson Energy ing introduces the stu- company. So all of the training trans- the lineman training program, she Cooperative dents to all the tools fers to any utility as they all employ said, with starting pay at the appren- and physical hardware lineman. A majority of the training tice level ranging from $13 to $18 per associated with line work, including the deals with construction of overhead hour. operation of large bucket and digger and underground electrical facilities, “As the apprentice continues to trucks,” Wright said. “All of these skills but this type of training is very useful to learn the skills necessary to become a are necessary for any type of utility line- any lineman in any utility.” journeyman, which usually takes four

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May Lane 23-44.indd 25 5/9/12 1:27 PM COVER STORY

years of on-the-job training, they have the potential to earn $60,000 to $100,000 per year as an annual salary depending on the location of the utility,” Wright said. Such a journeyman lineman does not need a two- or four-year degree, but she said a degree would be a valuable asset for advancement into supervisory and management positions. “Attending college is important,” Wright said. “However, the ultimate goal of attending any college is to find a career that meets your passion in life and one that will support yourself and your family financially. “Tuition at four-year colleges continues to increase annually, and upon grad- uation, it takes years for many students to pay off their student loans. Commu- nity colleges have lower tuition rates and can prepare a student for an excellent career in two years or less. And workforce-development training programs like the Lineman Training Pro- gram can help young adults reach a lifelong career in the same manner.” At Northern Ken- tucky-based Gateway Community College (also a member of KCTCS),

Dr. Angie Taylor, vice Henderson Community College photo president of Workforce Solutions and Innova- “People say, ‘I don’t have time to get John Nalley is a student in the industrial mainte- Dr. Angie tions, helps students, job a degree,’ and I believe it’s because of nance program at Henderson Community College. Taylor, Vice seekers and employers that life-work balance. They’re inun- President of assemble the pieces of dated,” Taylor said. “When you say it’s a Workforce successful careers – typi- certificate, that seems doable. And Solutions and cally utilizing non-tradi- what’s really nice about it is that it Innovations, tional methods. applies to directly to their work, and much of a deterrent as is the simple fact Gateway Com- “Community colleges they start to see improvements in their that finding a job after earning a four-year munity College are big on certificates, job. Their employers are impressed.” degree is not as easy as it once was. diplomas and degrees, but Taylor said about 5,000 students are “What drives the popularity of our I do a lot of work with career pathways, and regularly enrolled at Gateway, and the certificates is the jobs that comes with for me what’s important is to create cre- Workforce Solutions Division trains it,” he said. “Employers are looking for a dentials that get people workforce ready,” another 3,000 incumbent workers on certain skill set, and so we matched up Taylor said. It is important also, she said, top of that. There is a 50 percent matric- our certificates with these skill sets. ... In for students to keep a possible future ulation from completion of a certificate Kentucky in particular, manufacturing degree track in mind with their certificates. into a degree program. certificates are in high demand, mainly “That is one hot number,” she said. because of the abundance of the auto Better pay for some, big savings for others “We invite them to finish the degree, manufacturing (sector) in our state.” But certificates work well also for the but half of them will take advantage of unemployed, underemployed or work- that immediately.” Manufacturing builds tech program growth ers needing a boost in salary. To entice the traditional college-aged And the push for more manufactur- “Certificates are really critical because crowd, Taylor said, her department is ing jobs in Kentucky is increasing. That many people have gotten a certificate, working to provide a list to high school is partly thanks to the city government and they get a raise,” Taylor said. seniors of all of the employers in the state administrations of Louisville and Lex- The best news for working adults or that pay for educational programs. ington starting work on a regional eco- other non-traditional students, she said, “I think we underestimate the power nomic development initiative, the is that because certificates are often cus- of employer tuition stipends,” she said. Bluegrass Economic Advancement tomized to fit daily work, many employ- The growing student-loan debt load – Movement, whose aim is to leverage ers pay for certificates and other increasingly being referred to the both cities’ already existing competitive- job-enhancement training. Many large nation’s the next financial crisis – and ness in advanced manufacturing. A plan employers like the Cincinnati/North- the daunting task 18-year-olds face pay- to build on this strength is slated to be ern Kentucky International Airport and ing for education after high school do ready later this year. Citicorp Credit Services even employ influence decisions. While a manufacturing emphasis is onsite academic advisors to make work However, Box thinks the cost of tuition “nothing new” for KCTCS, Box said, and education more seamless. at a traditional four-year school is not as there is more and more work in the

26 MAY 2012 LANEREPORT.COM • THE LANE REPORT

May Lane 23-44.indd 26 5/9/12 1:27 PM classroom on the robotics piece of man- The New Graduates ufacturing, particularly teaching stu- The number of certificates awarded by Kentucky public colleges dents to troubleshoot robotics. For and universities now exceeds the number of four-year degrees example, an instructor will program a failure in the system and students must 2001-02 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 figure out solutions. This and other spe- Certificates 3,838 11,815 12,291 14,151 13,913 15,755 17,714 cialized mechatronics-based jobs are a Baccalaureate 12,483 14,423 14,742 15,036 15,134 15,534 15,887 28,505 42,496 43,918 45,904 46,053 48,526 52,384 big focus for Kentucky’s schools today. Total Degrees Awarded About half of KCTCS students are Source: Kentucky Council on Postsecondary Education Comprehensive Database majoring in some sort of technical program, Box said. And completing a technical program, or any other at a school like KCTCS, will likely pay the bills. pared to a four-year university. When “We created a partnership with Citi “Our current statistics in Kentucky you consider that an entry level certifi- and made a new certificate called opera- show that our associate’s degree students cate would be a six-hour investment, tions management with four courses,” in our career and technical programs are that’s very reasonable.” Taylor explained. “If you take eight making an income that is very close to a Kentucky focuses on five top job sec- weeks to do a course, that’s fast; then bachelor’s degree,” Box said. “In Kentucky tors for training and employment, Box you’re probably going to complete that right now, there’s not a tremendous gap said. They are: certificate in nine months. But the via- between an associate’s degree and a bach- • Manufacturing bility of operations management makes elor’s degree as an average. • Healthcare you better at your job at Citi, and it’s “Presently our (KCTCS system) • Energy also a transferable credit.” tuition is $135 a semester credit hour,” • Transportation and logistics Such certificate programs do not he added. “It’s a good investment and a • Information technology. lock employees or students into spe- good bargain for higher education com- With 600 credit program options, cific jobs or career tracks. Gateway also KCTCS prepares students for all five arranges for students to shadow sectors. That includes associate degrees, employees and designs specific career diplomas and certificates. maps based on their interests and the While the specialized, technical pro- amount of time they can invest. The grams are obviously beneficial, Taylor said career maps also help students get a she also enjoys seeing students pursue picture of how much money they paths that can cross multiple industries, could make in the future with their like operations management, supervisory new job skills. leadership and financial perspectives. If a Whether it is an 18-year-old high student does not have a specific career school graduate looking at higher edu- path selected, she said, many courses avail- cation options, a working parent seek- able within certificate or degree tracks are ing to get a raise or an ambitious transferable. And if a prospective student employee looking for a next step, cer- is already employed, completing a few tificate programs are an educational classes could equate a raise. force with which to be reckoned. ■ Participants in skills training certificate programs, The operations management certifi- such as the lineman program shown above, often cate program that Gateway has in part- Abby Laub is a correspondent for The Lane Report. quickly get jobs, according to KCTCS. nership with Citi is a prime example. She can be reached at [email protected].

THE LANE REPORT • LANEREPORT.COM MAY 2012 27

May Lane 23-44.indd 27 5/9/12 1:27 PM HUMAN RESOURCES Abusing the Bottom Line

Workplace accident statistics appear to validate Moberly’s observation. Of all workplace fatalities in the United States, 37 percent are traced back to the use or abuse of alcohol and drugs, according to the Labor Department. Substance abusers are 3.6 times more likely to be involved in a workplace accident, and are five times more likely to injure themselves or another worker in an accident. “Abusers are 10 times more likely to miss work and five times more likely to file a workers’ comp claim,” Moberly said. Kentucky workers’ compensation claim costs are well above the national average, according to Dave Adkisson, president and CEO of the Kentucky Chamber of Commerce. He testified during a special session of the General Assem- bly, which was debating Dave Adkisson, HB1, a measure that President/ allows only doctors to CEO, Kentucky Chamber State’s drug and alcohol misuse rates highlight operate pain manage- of Commerce ment clinics and the need for and value of good workplace policies requires physicians to use the state’s electronic prescription drug monitoring system, among other BY LORIE HAILEY requirements. HB1 failed to gain passage in the 2012 regular and special legislative sessions. “A major cost driver to the Kentucky RESCRIPTION drug abuse formula designed to workers’ compensation system contin- continues to plague Kentucky, quantify alcohol and ues to be prescription drug costs,” with business and employers drug “abuse.” Adkisson said. “Physician in-house dis- paying the price in higher “They are on some- pensing has more than doubled in Ken- workers’ compensation and body’s payroll. That tells tucky over the last four years in workers’ Phealth insurance costs, reduced produc- me that they’re doing a compensation cases.” tivity and heightened risks to non-abus- pretty good job of hiding Gary Moberly, Three of the top five prescription ing employees. it,” said Gary Moberly of Ex-Director of drugs in Kentucky in dollars terms, Employers whose workers misuse Versailles, retired direc- Labor Manage- Adkisson said, are controlled sub- prescribed drugs also have a greater risk tor of Labor Manage- ment and Rela- stances. Injured workers are not being of being sued. ment and Relations and tions, Kentucky rehabilitated and returning to work, he As many as 70 percent of drug and Mediation in the Ken- Labor Cabinet said, but “our workforce is becoming alcohol abusers in America are gainfully tucky Labor Cabinet. more and more dependent on prescrip- employed, according to the U.S. Depart- “People who are abusing drugs or alco- tion drugs to manage pain.” ment of Labor and U.S. Department of hol don’t stop what they’re doing Employees who return to work Mental Health Services, which uses a because they’re going to work.” impaired become a workplace and occu-

SUBSTANCE ABUSE BY THE NUMBERS SOURCE: U.S. Dept. of Labor and U.S. Dept. of Mental Health Services percentage of drug percentage of direct health- times substance and alcohol abusers workplace accidents care costs of abusers are more in America who are 37 tracked back to the $70 U.S. prescription 1.5 likely to miss work 70 gainfully employed use of alcohol or drugs BILLION drug abuse than non-abusers

28 MAY 2012 LANEREPORT.COM • THE LANE REPORT

May Lane 23-44.indd 28 5/9/12 2:05 PM pational hazard, according to Adkisson, and how to recognize it in others or in A substance abuse policy protects particularly in environments such as themselves. Different types of drugs and employer and employee alike, and gives coalmines, warehousing industries and the varying symptoms of their use also supervisors guidelines. manufacturers. are discussed, Trusty said. The manager must “document, doc- “We format it (the training) accord- ument, document” the situation, Wirth Productivity loss is $42 billion ing to a particular business’s workplace said, using their own observations and Healthcare costs also are climbing. The policies,” she said. the claims of other workers. direct healthcare costs of prescription Certified workplaces must encourage “Don’t just rely on one source,” drug abuse exceed $70 billion a year, workers to seek help if they think they Wirth said. “Back up claims with credi- according to the U.S. Centers for Disease have a substance abuse problem, ble sources.” Control. Workers who abuse substances Moberly said, and an employee assis- Look for bloodshot eyes and note if have healthcare costs that are three times tance program must be offered. the employee has an odor. Notice a as high as non-abusers, according to the Trusty, who works out of Prestonsburg, change in the worker’s demeanor, and government’s formula. And they are 33 frequently deals with coal mining compa- listen for slurred speech. Take note of percent less productive, according to the nies that are trying to lower their risk for the employee’s orientation and ability labor department estimates. accidents as well as their operating costs. to walk or complete tasks. “Substance abuse Employing workers who abuse drugs “If you have a combination of these affects the motivation of is especially risky for companies whose items, it is a more reasonable suspicion the worker,” said Debbie work requires the use of heavy machin- (that there is an abuse issue),” Wirth Trusty, education director ery, she said. said. Managers should never rely on for Operation UNITE A lot of businesses have zero-toler- only one warning sign. “With bloodshot (Unlawful Narcotics ance substance abuse policies but will eyes, the employee could have aller- Investigations, Treatment give an employee time off to seek treat- gies,” he explained. and Education), which Debbie Trusty, ment if they are forthcoming about Sometimes, drug abuse is well cam- has three offices in Ken- Education their addiction, she said. ouflaged and difficult to notice. Manag- tucky. “Those folks tend Director, Aside from workers’ compensation ers must get to know their employees so to miss more work than Operation insurance savings, it is difficult to quan- they can spot trouble more easily. UNITE other workers, and they tify the benefits of taking part in the “Look for inconsistent behavior,” average more sick days program, Moberly said. Wirth said. than the typical employee.” “It’s not perfect, but at least some- If a formerly model employee begins In fact, workers who abuse sub- body is doing something about the calling in sick every Monday, for exam- stances are 1.5 times more likely to miss problem,” he said. “Some bad situations ple, or a worker who always was on time work, according to UNITE, and the toll have been avoided.” develops a problem with tardiness, it in lost productivity is $42 billion. For example, one of the cities he may be a red flag. Additional hidden costs, according to assists received a complaint that a dump Substance abuse is a complex prob- the agency, take the form of personnel truck driver was driving erratically on a lem, but employers should use common turnover, poor decisions, damage to county road, Moberly said. A woman sense when dealing with it. equipment, friction among workers, dam- told city officials the driver almost col- “Don’t over- or underreact,” he said. age to a company’s public image, and lided with her. “Act with a sense of urgency, but diverted supervisory and managerial time. Because of the training and policies in remember to never go on only one While state and national leaders look place, the driver was drug tested and observation.” for new ways to keep drugs out of abus- found to be under the influence of meth- ers’ hands, business owners can aid the amphetamine, Moberly said. The city Chamber offers advice fight against drugs in their workplace employee was removed from the job, The Kentucky Chamber of Commerce is and save money by taking advantage of “If you prevent one death or one planning workshops in May and June a state drug-free workplace program accident,” he said, “then, my goodness, that will offer answers to business own- that can save them at least 5 percent on there is no question in my mind that ers and human resources managers their workers’ compensation costs. this is a good program.” about substance abuse in the workplace, UNITE offers drug-free workplace among other issues. training, as well as informational sessions How to spot a problem The 24th Annual Kentucky Human for community members. Moberly, a con- Employers and human resource manag- Resources Update, which has a confer- sultant who assists companies in becoming ers who suspect an employee is abusing ence planned in Louisville and Lexing- certified Drug-Free Workplaces in Ken- drugs or intoxicated on the job must ton on separate dates, includes a session tucky, also offers certification training and take action quickly, said Damian Wirth, titled “Kentucky Workers’ Compensa- maintenance. He contracts with the Ken- human resource manager at Franklin tion Law – Everything You Wanted to tucky League of Cities to assist all of its cli- (Ky.) Bank and Trust Co. Know but Were Afraid to Ask.” ents who buy KLC’s workers’ When supervisors have “reasonable It also will provide updates on compensation insurance in becoming cer- suspicion” an employee is intoxicated, healthcare reform, significant legal tified Drug-Free Workplaces. they should make investigating the situ- decisions and other issues. To become certified and receive the ation a priority, said Wirth, who serves A workers’ compensation confer- insurance discount, employers must as public relations director for the Ken- ence set for June 19-20 will help human host special training sessions, adopt a tucky chapter of the Society for Human resources managers learn more about drug-free workplace policy, conduct Resource Management. problem areas associated with workers’ regular drug and alcohol testing, and First, he said, consult the company’s comp claims, including substance provide continuing education for policy on drugs and alcohol. abuse. Visit kychamber.com. ■ employees and supervisors. “You’ve got to be proactive in writing The training sessions teach workers policies and having your labor attorney Lorie Hailey is associate editor of The Lane Report. and their supervisors about addiction review them,” Wirth said. She can be reached at [email protected].

THE LANE REPORT • LANEREPORT.COM MAY 2012 29

May Lane 23-44.indd 29 5/9/12 1:28 PM ECONOMIC DEVELOPMENT Redevelopment Pioneers Jim and Donna Salyers have taken a fabulously novel approach to downtown redevelopment

BY GREG PAETH

IKE many older cities throughout the country, Cov- ington’s downtown business district slid downhill as suburban malls became the des- Ltination of choice for shoppers searching for everything from apparel to dry goods to appliances and everything in between. While city histories claim the early decades of the 20th century as their heyday, the serious retail exodus from downtown Covington is easy to pinpoint. That began in 1976, when Florence Mall opened 10 miles south of Northern Ken- tucky’s largest city, transforming the then- breathe new life into a business district One of The Salyers Group’s biggest endeavors is sleepy little town into what quickly became that has an abundance of first-class Vic- The Wedding Mall on Madison Avenue. It offers the retail hub of the region. torian-era storefronts and a paucity of about a dozen shops and offices to help couples Florence retailing continues to first-class retail tenants. plan their big day, from choosing the dress to expand 35-plus years later, and Coving- There is a heartbeat, however, and planning the honeymoon. ton is immersed in another of a series of the patient remains under care. revitalization efforts designed to Two key people in the effort to resus- spaces from those that have slumbered citate downtown are Jim and Donna since the early 1980s. Salyers, who repeatedly gambled on The Madison Avenue Wedding Mall downtown real estate at a time when is an example. It can look nearly aban- scores of others either packed for the doned until rousing to activity a couple suburbs or went out of business. And of Wednesday evenings each month while commercial real estate Business when about a dozen shops and offices Theory 101 calls for owners to buy a open for business. Bridal parties are building and then find dependable ten- wined and dined by the Salyers and ants, the Salyers wound up taking their tenants, which include a wedding another approach: buying buildings photographer, a DJ, florist, hair salon, and then – sometimes by necessity – also bridal shop, travel agency, tux rental creating the businesses to fill them. shop and the Courtyard Marriott, which The resulting enterprises have an offers shuttle service between The Madi- unusual presence in Covington. Pre- son Event Center at 700 Madison Ave- mall downtown bustled roughly 9 a.m. nue and the riverfront hotel. to 5 p.m. six days a week, but the Saly- This unusual presence downtown ers’ present-day properties operate off extends to the Salyers’ Pike Place Bingo the standard business week schedule. building in what had been a JC Penney They hum primarily when staffers are in store. It’s shuttered during the day but the process of helping brides and alive at night when the games begin. grooms to get married, putting those events together, and then hosting them Filling some of Covington’s vacancies in what has become the Salyers’ own A recent survey conducted by the Cov- wedding district – which offers soup to ington Business Council, a nonprofit nuts service, literally and figuratively. association of 175 businesses working to Jim and Donna Salyers have breathed new life into First-floor storefronts are closed or improve local economic vitality, drove downtown Covington by purchasing vacant build- quite sleepy most days, which can make home the point that the organization ings and creating a business to fill them. it difficult to distinguish occupied and the city still have plenty of work to

30 MAY 2012 LANEREPORT.COM • THE LANE REPORT

May Lane 23-44.indd 30 5/9/12 1:28 PM do. The CBC found 37 of the 81 store- owners such as the Salyers will be asked town Covington on a daily basis. That fronts in the heart of the business dis- to pay an assessment to cover costs for plan, though, hinges on funding from trict – 45 percent – are unoccupied. special services and improvements the cash-strapped state. And of those that are rented, some inside the district. Jim Salyers said his commercial real have tenants that aren’t first choices for “They have their footprint all over estate investments in Covington were pat- economic development officials. The downtown Covington, and their con- terned after things he learned in the apart- Salyers’ signature downtown Covington cept has been to establish cross-selling ment rental business in Cincinnati, where property, The Madison Event Center, opportunities with their buildings,” he had been a firefighter for 14 years. abuts a tattoo shop, which is a couple of Frew said. “You work for two days and you’re off doors from a pawn business. A couple of Besides the BID proposal, which could for five (as a fireman), so what are you vacant storefronts are just across Madi- be finalized in a few months, the city is going to do with the other five?” Salyers son Avenue. offering a variety of incentives to business said during a recent interview in a con- Several city and business sources said owners willing to invest downtown. ference room at one of his Salyers downtown certainly would be far more Gateway Community and Technical Group properties, the former Wad- appealing with a few more investors like College, now operating in a former ele- sworth Electric building on 11th Street, the Salyers, whose properties are valued mentary school building a couple of where the company manufactured elec- at about $5.4 million, according to Ken- blocks from the business district’s heart, trical wiring components from 1923 ton County tax records. also has a bold $60 million-plus initia- until the business was liquidated in Since 1987, they have acquired seven tive to expand its urban campus and 1990. Today it’s the home of Donna key pieces of property, buildings that attract thousands of students to down- Salyers’ Fabulous-Furs. (See sidebar.) once housed some of Covington’s best- known business anchors – Penney’s, Woolworth’s, Tillman’s Furniture, two bank buildings, a Goldsmith’s department store and the former Wadsworth Electric building four blocks from the heart of the central business district. “Their impact has been almost immeasurable,” said Covington City Manager Larry Klein, whose City Hall office is just across Seventh Street from The Madison Event Center, which was a Woolworth’s when downtown Coving- ton buzzed with activity. “They were early pioneers, and they had a vision and a confidence about what Covington could be.” Jim Salyers said 99 percent of his property is rented and that The Madi- son Event Center and The Madison South – rental facilities that bookend the east side of one key block in the business district – handle about 500 weddings a year. When the buildings are booked up on a weekend, 2,000 people flock downtown, Salyers said. Klein, for one, doesn’t think that’s hyperbole. “It is real; I see it. A lot of nights I leave City Hall after 6, and I can see the activity in the buildings. I can see the people. What they bring in (through weddings and special events) on the weekends is fantastic,” Klein said. “I think they are model entrepreneurs. They bring in people, and they bring in new jobs.”

Business Improvement District proposed Pat Frew, executive director of the Cov- ington Business Council, said the Saly- ers have been extremely generous in their contributions to his organization. They also are supportive of plans to form a downtown Business Improve- ment District patterned after a similar district in Louisville, he said. If the BID Donna Salyers’ Fabulous Bridal, with four floors of retail, opened in downtown Covington in 2005. It plan clears all the hurdles, property specializes in designer gowns, bridesmaid apparel, flower girl dresses, social occasion dresses and accessories.

THE LANE REPORT • LANEREPORT.COM MAY 2012 31

May Lane 23-44.indd 31 5/9/12 1:28 PM ECONOMIC DEVELOPMENT

Salyers said his purchase of the Wool- worth’s building in 1987 represented Sewing Columnist, TV Show Host his first acquisition in Kentucky and his first venture into commercial real Finds Pattern for Success in Faux Fur estate. A Realtor friend contacted him about the availability of the iconic Nearly 25 years ago, Donna Salyers had American dimestore’s property in Cov- squirreled away $5,000 she intended to ington, Salyers said. spend on a full-length mink. A newspaper sewing columnist and host “I was always on the lookout for a of a cable TV sewing show – both called good investment, and they had a ridicu- “Sewing, Etc.” – admitted her goal was sim- lous lease that supported the mortgage. ple: keeping up with the other TV hosts she I thought it was just an interesting saw on a regular basis in New York City, investment,” Salyers recalled. where all the shows were taped and all the women seemed to own full-length furs. Becoming your own tenant Then came a moment of what Salyers now describes as divine intervention. At the time of the purchase, Wool- “I was on my way to the fur salon in worth’s was one of a handful of retailers 1988, and I had the $5,000 that I had still surviving in the business district. socked away. Then I heard Paul Harvey Not that long after the acquisition, how- (the syndicated radio commentator) ever, Salyers remembers getting a describing kittens being skinned alive and phone call from a Woolworth’s execu- being passed off as mink teddy bears,” tive who prefaced the conversation by Salyers said. “I was horrified. I (thought) I can’t do that; that is just stupid – I’m not asking Salyers if he was sitting down. going to buy a fur coat. Maybe I should The news was not good: Woolworth’s, start a business. I’ll bet there are people which would cease operations through- who feel just as I do.” out the country in 1997, had decided to Salyers’ instincts proved correct. As close the Covington store. Harvey’s monologue reflected, there was “They moved out and then we’re growing and passionate interest in animal thinking, ‘Well, now, what are we going welfare and public revulsion toward anything that could be labeled animal cruelty. to do with this big of an eyesore?’ ” Saly- “It was just one of those crazy things,” ers said. she said. “At the time, I was writing my Because there wasn’t much parking column, so it wasn’t a reach to think I available during the week, Salyers said could start selling fake fur coat kits. It’s he and other family members decided just fabric and a pattern. It wasn’t a big that a banquet hall, something that operation. I could do it out of my base- could operate on weekends, might be a ment. “I’ll just give it a try. It probably won’t viable use for the building. last but a year,” Salyers thought. “It really Fortunately, the 40,000-s.f. vacancy in took off right from the start.” the Woolworth building dovetailed Her first year of operation, 1989, she nicely with the explosive growth of Donna Salyers grew an idea to sell fake fur coat had to hire neighbors and relatives to cut Donna Salyers’ faux fur business, then kits into a booming retail and catalog business, fabric to meet the burgeoning demand for Fabulous Furs. operating in Ohio. her one product: a full-length faux fox fur Jim Salyers said his wife’s business coat kit. That year’s sales of about $300,000 were no fluke. It proved to be the rock-solid foundation for Salyers’ Fabulous-Furs, was outgrowing its location in subur- which quickly blossomed in the basement of her suburban Cincinnati home. ban Cincinnati, which prompted them Salyers, in jeans and one of her vests when she sat down for an interview in April, was coy to move her office to the Woolworth’s about whether she’s the primary designer. building’s downstairs. The Salyers “If you like it, yes. If you don’t, I didn’t do it,” she said with a broad smile. moved into a sprawling 4,000-s.f. loft To a degree, the growth of her business has been fueled by important and unsolicited apartment that they created upstairs. A endorsements that date 1997. Her first celebrity fan was Loretta Swit, “Hot Lips” Houlihan short time later, the Salyers bought the in TV’s “M*A*S*H” and a dedicated animal rights activist who liked the look of faux fur but couldn’t sew. Salyers recalls staying up late one night in her kitchen to make a coat for Swit. former Goldsmith’s Department Store From there, celebrity endorsements and positive publicity seemed to snowball as promi- building, which became the manufac- nent people and well regarded publications began to identify Donna Salyers Fabulous-Furs turing center for Fabulous-Furs, and a as the go-to source for garments and accessories that looked high-end and luxurious but nearby bank building, where Donna wouldn’t infuriate animal rights activists. Celebrities who have been Fabulous-Furs customers Salyers opened a retail outlet. or photographed in Salyers’ creations include models Kate Moss and Brooklyn Decker, About the same time Jim Salyers was Aretha Franklin, Paula Dean, Ice-T, Kellie Pickler, Patti LaBelle, Olympian Lindsey Vonn and navigating through downtown real author and editor Helen Gurley Brown. Today, Fabulous-Furs has a year-round payroll of about 50 and ramps up by another 50 in estate, Covington hired former Cincin- the fall and winter when demand peaks for its coats, jackets, hats, vests and throws. While the nati fire chief Tom Steidel as an assis- faux fur fabrics are produced in Asia, Salyers said 60 percent of the product manufacturing tant city manager. The two former is done in the historic Wadsworth Electric building about four blocks from the heart of Cov- Cincinnati firefighters became friends. ington’s downtown business district. “Tom would call me up and say, Besides her showroom in Covington, Fabulous-Furs are available at some of the country’s ‘Jim, there’s a vacant building here. most high-end stores such as Saks Fifth Avenue and Neiman Marcus. Later this year home You ought to buy it,’ ” Salyers said. And furnishings retailer Lillian August will sell faux-fur throws. The privately held business – primarily a catalog operation – had sales of about $14 mil- he took Steidel’s advice several times, lion last year, Salyers. gradually expanding his real estate “In the catalog business that’s tiny,” she said, “but to me it’s a small fortune.” holdings and trying to fill storefronts with “wedding district” businesses that

32 MAY 2012 LANEREPORT.COM • THE LANE REPORT

May Lane 23-44.indd 32 5/9/12 1:28 PM would tie in with The Madison Event Center, where most of the events were weddings. But after a number of wedding- related businesses tried and failed, the Salyers realized they would have to fill some of the retail space themselves. “He (Jim) set out to create a vibrant neighborhood and he would need an anchor store, and that would be Fabu- lous-Bridal,” Donna Salyers said. “He contacted everyone he had ever heard of – chains, individuals, independents. No one would even consider opening a store in Covington, so, by default, we became the bridal store.” Donna Salyers’ Fabulous-Bridal, four floors of retail that opened in 2005, has had “a huge impact on the bridal business in Cincinnati,” she said. It has been involved in more than 1,000 area weddings.

The Salyers Group turned the historic Woolworth’s building into The Madison Event Center, which has four ballrooms.

Although he has a good relationship with Steidel, Jim Salyers said the city hasn’t been as supportive of the wedding district as he would prefer. It opted instead to support an arts district plan that never blossomed. “I’m not sure how downtown would be had we not gotten involved. I really don’t know,” said Jim Salyers, who seems reluctant to claim much credit for his accomplishments or those of his wife. “We’ve got so damn many buildings and we’ve got them full, and there are still empty buildings down there galore. Cleaning it up now is a starting point. All I can say is that when you bring in 2,000 people to downtown Covington, it’s remarkable.” ■

Greg Paeth is a correspondent for The Lane Report. He can be reached at [email protected].

THE LANE REPORT • LANEREPORT.COM MAY 2012 33

May Lane 23-44.indd 33 5/9/12 2:08 PM MARKETING

Louisville Water Co. will hand out 500,000 compostable and biodegradable “corn cups” this year as part of its Louisville pure tap® program.

tests before it goes out,” Dearing-Smith said. “The EPA is always upgrading standards and items to test for.” According to Louisville Water Co. research, more than 70 percent of bottled water that is sold essentially comes from the tap somewhere. “It is bottled

Louisville Water Co. photos for convenience,” Dearing-Smith said. And for profit. Drinking the recommended eight 8-ounce glasses of water a day costs 50 cents a year from the tap in Louisville versus $1,500 for bottled water bought from the store. Louisville Water Co. estimates it invested more than $1.5 million over the first 15 years of the program and believes that it was money well spent, Dearing said. Good Water, Good “We survey customers monthly for our Customer Satisfaction Index. Sev- eral questions directly relate to pure tap,” she said. “When customers say Science, Good PR they’ve been exposed to the pure tap program, they have a much more favor- ® able view of the water company. We see Louisville pure tap marketing campaign continues a direct correlation.”

to turn bottled water trend in utility’s favor Keep pouring it on Last August, on the 15th anniversary of BY MARK GREEN Louisville pure tap®, the water utility launched a re-branded effort to promote the quality and value of its drinking water – with a focus on the tap. The OUISVILLE pure tap® began great science. We’ve got to take advan- Louisville pure tap® program includes a simply enough as a marketing tage of this bad publicity,” Dearing said. BPA-free 20-ounce bottle, coolers, com- device by Louisville Water Co. It grew into a very successful brand- postable cups and water pitchers. in 1996 to counteract and get ing exercise. some publicity mileage out of Multiple feel-good synergies emerged, Lthe then-growing bottled water trend. At and pure tap became a platform to launch schools and community events, Louisville several public relations initiatives. It is a residents were handed empty 16-ounce signature program today that creates thou- bottles with a smile and the advice: “If sands of positive interactions with individ- you want great tasting bottled water, go uals, customers, organizations and the home and fill it up for free.” community at large. They did and they liked it. And the Louisville Water Co. is 151 years old smart-alecky stunt has become a full- and last year was honored with the fledge program the water company’s American Society of Civil Engineers’ constituents continue to embrace. 2011 “Outstanding Civil Engineering “Bottled water was just becoming hip,” Achievement Award” for the company’s said Kelley Dearing, manager of strategic Riverbank Filtration Project, which col- communications for Louisville Water Co. lects groundwater from beneath bed- Perhaps not coincidentally, there also rock paralleling the Ohio River some were national news stories at the time 150 feet below the surface. questioning the safety of tap water. “There is nothing more tested than Officials in Louisville, however, knew what comes out of your tap. We do 200 their tap product met all the highest standards, plus it had been singled out by People magazine in the 1980s along with Seattle for having good taste. This year’s Kentucky Derby Festival minimarathon “Louisville Water Co. thought, and marathon included 245,000 compostable cups ‘We’ve got great tasting water. We’ve got filled with pure tap at water stops along the route.

34 MAY 2012 LANEREPORT.COM • THE LANE REPORT

May Lane 23-44.indd 34 5/9/12 1:28 PM The program also now includes a A customer fills a reusable bottle with Louisville popular new device, “Louisville pure pure tap® at a Waterfront Park fill station, units tap® TO GO,” which the utility’s engi- set up for special events and provides an ongoing neers developed to pull water straight supply of chilled water. from a distribution main. That water passes through a chilling device with a tap allowing the hot and thirsty to serve “This effort is really growing. We’re themselves, Dearing said. talking right now with several local busi- “We have used our pure tap budget nesses about expanding our water foun- as our community outreach,” she said. tain initiative.” ■ “The water company is very cautious about how it spends money. pure tap is Mark Green is editorial director of The Lane Report. our way to give back. We can’t donate He can be reached at [email protected]. $1,000 to events, but we can provide water.” For example, during the Derby Festi- val mini marathon and full marathon runs early this month, participants were given more than 100,000 gallons of water. Some 245,000 compostable cups were distributed and used at multiple

A camper fills up a pure tap bottle at a cooler during the Louisville Zoo summer camp program.

stops along the route of the 13- and 26-mile runs. It was the first year bottles were eliminated for what is always pure tap’s single biggest undertaking. In 2012, Louisville Water Co. expects to fill requests from 1,000 organizations to provide water for schools, churches, sporting events, community events and individual requests. The program will provide 20,000 BPA-free bottles, 300 water pitchers, 200 loan-out coolers and 500,000 compostable cups. The program renewed last August includes launching an effort to brand water fountains around the city, including at the Louisville Zoo, UofL campus, the KFC Yum! Center and 150 Jefferson County Public Schools, where a new federal law requires schools that receiving National School Lunch program money must provide “tap water” for free during lunch – and educate children on the health benefits of water.

THE LANE REPORT • LANEREPORT.COM MAY 2012 35

May Lane 23-44.indd 35 5/9/12 1:28 PM THE LANE LIST

KENTUCKY’S LARGEST PUBLICLY HELD COMPANIES Entities headquartered in Kentucky, ranked by revenue

WO companies made significant moves from No. 25. The company’s revenue nearly on the 2012 Kentucky Blue Chip 25, The tripled in 2011. TLane Report’s annual compilation of the The inclusion of institutional pharmacy largest publicly held companies based in the operator PharMerica (a Kindred spinoff a few commonwealth. Healthcare real estate invest- years ago) and coal producer Rhino Resources ment trust company Ventas of Louisville made to The Lane List pushed Winchester-based the biggest jump, moving up four spots to No. Delta Natural Gas off this year’s Top 25. 8. Its total revenue jumped from just over $1 Fortune 500 member Omnicare also came billion to $1.763 billion, and its market capital- off the list. The pharmaceutical care company ization nearly doubled, from $9 billion to moved in 2011 across the river to Cincinnati. $17.14 billion. More financial information about Ken- Investors Heritage Capital Corp. of Frank- tucky’s publicly held corporations is available fort also made a significant climb, to No. 20 at bloomberg.com.

COMPANY NAME (TICKER) CEO MARKET CAPITALIZATION TOTAL REVENUE LOCATION WEBSITE RANK NET INCOME COMMENTS

Humana is one of the nation’s largest Humana Inc. (HUM) Michael McCallister $13.93 billion $36,832,000,000 publicly traded health benefits Louisville Humana.com (3) $1,419,000,000 companies, with approximately 1 11.2 million members.

David Novak $33.94 billion $12,626,000,000 The parent company of KFC, Pizza Hut Yum! Brands (YUM) and Taco Bell ranks as the world’s largest 2 Louisville Yum.com (1) $1,319,000,000 restaurant company.

Since its inception in 1924 as a regional Ashland (ASH) James O’Brien $5.35 billion $6,502,000,000 petroleum refiner, Ashland has evolved Covington Ashland.com (6) $414,000,000 into a specialty chemical company with a 3 global reach.

General Cable develops, produces General Cable (BGC) Gregory Kenny $1.63 billion $5,866,700,000 and distributes wire and cable Highland Heights Generalcable.com (9) $84,100,000 products for the energy, industrial and 4 communications markets.

Kindred Kindred operates 121 hospitals, 5 Paul Diaz $505.25 million $5,521,763,000 inpatient rehabilitation facilities, 224 Healthcare (KND) Kindredhealthcare.com (13) ($53,481,000) nursing and rehab center and six 5 Louisville assisted living facilities.

Since entering the market in 1991 as a Lexmark Int’l (LXK) Paul Rooke $2.15 billion $4,173,000,000 spin-off of IBM, Lexmark has become an Lexington Lexmark.com (8) $320,900,000 international leader in computer printers 6 and peripherals.

Though Brown-Forman at one time Brown-Forman (BFB) Paul Varga $12.3 billion $3,404,000,000 owned product lines ranging from china Louisville Brown-forman.com (4) $572,000,000 to luggage, it is returning to its wine and 7 spirits industry roots.

Ventas is a leading healthcare real estate Ventas (VTR) Debra Cafaro $17.14 billion $1,763,774,000 investment trust company, with a portfolio Louisville Ventasreit.com (2) $363,261,000 that includes more than 500 healthcare 8 facilities.

Papa John’s Int’l John Schnatter $961.68 million $1,217,882,000 Papa John’s operates 3,883 restaurants (PZZA) Papajohns.com (12) $55,655,000 in 50 states and 32 countries. 9 Louisville

Tempur-Pedic Int’l Mark A. Sarvary $3.76 billion $1,147,398,000 Tempur-Pedic produces premium (TPX) mattresses and pillows using pressure- Tempurpedic.com (7) $219,608,000 relieving material developed by NASA. 10 Lexington

36 MAY 2012 LANEREPORT.COM • THE LANE REPORT

May Lane 23-44.indd 36 5/9/12 1:57 PM COMPANY NAME (TICKER) CEO MARKET CAPITALIZATION TOTAL REVENUE LOCATION WEBSITE RANK NET INCOME COMMENTS

Boardwalk Pipeline Stanley C. Horton $5.74 billion $1,138,800,000 Through its three subsidiaries, Boardwalk Partners (BWP) oversees the transport and storage of Boardwalkpipelines.com (5) $220,000,000 natural gas. 11 Owensboro

Texas Roadhouse Texas Roadhouse opened its first Kent Taylor $1.29 billion $1,109,226,000 restaurant in 1993 and now operates 294 (TXRH) Texasroadhouse.com (10) $63,964,000 restaurants, franchised and licensed an 12 Louisville additional 72 restaurants in 47 states.

Robert Evans Churchill Downs $990.12 million $696,854,000 Churchill Downs owns and operates (CHDN) Churchilldowns racetracks and simulcast operations in (11) $64,355,000 Kentucky, Illinois, Florida and Louisiana. 13 Louisville incorporated.com

Rhino Resources Rhino produces, processes and sells coal David G. Zatezalo $451.75 million $367,221,000 of various steam and metallurgical grades (RNO) rhinolp.com (17) $38,071,000 in the U.S. As of late 2010, it operated 10 14 Lexington mines in Kentucky, Ohio and West Virginia.

PharMerica operates 95 institutional PharMerica (PMC) Gregory S. Weishar $340.66 million $2,081,100,000 pharmacies in 44 states and provides Louisville Pharmerica.com (18) $23,400,000 pharmacy management services to 91 15 hospitals. It has 4,800 employees.

Founded as Caretenders in 1976, the Almost Family (AFAM) William Yarmuth $223.78 million $339,853,000 company changed its name in 2000 and Louisville Patientcare.com (20) $20,802,000 has expanded to include home health 16 operations in 11 states.

Sypris Solutions Jeffrey Gill $77.09 million $335,625,000 Sypris provides technology-based (SYPR) and specialty services, and is a major Sypris.com (22) $7,907,000 defense and government contractor. 17 Louisville

Republic Bancorp The bank holding company for Republic Steven Trager $485.25 million $314,739,000 Bank & Trust, which has locations in (RBCAA) Republicbank.com (16) $94,149,000 central Kentucky, southern Indiana and 18 Louisville central Florida.

Industrial Services Harry Kletter $36.37 million $276,870,000 Industrial Services of America is a of America (IDSA) leader in scrap recycling and waste Isa-inc.com (24) ($3,881,000) management. 19 Louisville

Headquartered in Pikeville, Community Community Trust operates 80 banking locations and Jean Hale $498.38 million $202,292,000 four trust offices in eastern and central Trust Bank (CTBI) Ctbi.com (14) $38,827,000 Kentucky, six banking offices in West 20 Pikeville Virginia, and four banking locations and a trust office in northern Tennessee.

U.S. Computer U.S. Computer Services Inc. provides Steven A. Powless $491.82 million $163,780,000 data and transaction processing, Services Inc. (CSVI) Csiweb.com (15) $24,020,000 eBusiness service and hardware to 21 Paducah financial firms.

Investors Heritage Capital sells and Investors Heritage Harry Waterfield II $21.89 million $158,444,000 administers insurance and annuity Capital Corp. products, credit insurance and mortgage Investorsheritage.com (25) $552,000 redemption products, commercial and 22 (IHRC.OB) Frankfort residential mortgage products.

S.Y. Bancorp is the holding company of S.Y. Bancorp (SYBT) David Heintzman $318.2 million $119,283,000 Stock Yards Bank & Trust, with locations Louisville Syb.com (19) $23,604,000 in Greater Louisville, Cincinnati and 23 Indianapolis.

Farmers Capital Bank is a financial Farmers Capital Lloyd D. Hillard Jr. $47.15 million $102,740,000 holding company, operating 36 bank Bank (FFKT) locations in 23 communities throughout Farmerscapital.com (23) $2,738,000 central and northern Kentucky and a data 24 Frankfort processing company.

Bank of Kentucky Robert W. Zapp $186.67 million $85,522,000 Bank of Kentucky is a holding company (BKYF) with 31 branch and 47 ATM locations in Bankofkyhb.com (21) $16,489,000 northern Kentucky. 25 Crestview Hills

THE LANE REPORT • LANEREPORT.COM MAY 2012 37

May Lane 23-44.indd 37 5/9/12 1:28 PM SPOTLIGHT ON THE ARTS

Council Helps Teachers Bring Kentucky Arts the Arts to the Classroom Council Receives HE Kentucky Arts Council awarded $11,340 in Teacher $734,900 Grant Initiated Program grants to support 21 weeks of short- Tterm artist residencies during the fall of 2012. These HE National Endowment for the grants give professional artists an opportunity to demonstrate Arts (NEA) has awarded the their art forms and provide students and teachers hands-on TKentucky Arts Council, the state experiences in making art. Artists also collaborate with teach- arts agency, a state partnership grant of ers to design innovative programs that incorporate art across $734,900. the curriculum after the residency is completed. Forty percent of NEA grant-making Residencies vary widely, depending on the teacher’s goals funds are designated for the nation’s state and the artist or artists hired for the residency. This group of arts agencies, regional arts organizations residencies includes explorations of cultural traditions, rela- and their national service organizations. tionships between art and business, media arts, storytelling and theatre. Through this grant the arts council “The Teacher Initiated Program has enhanced the learning experience for stu- will continue to implement a strategic dents in schools across the Commonwealth for many years. We are fortunate to be plan that positions the arts as an inte- able to continue this valuable arts education program,” said Lori Meadows, executive gral part of cultural tourism, commu- director of the Kentucky Arts Council. nity revitalization, education and The grant amounts are based on the length of the residencies, which can be for economic impact throughout the state. one to four weeks. The grant awards are $540, $1,080, $1,620 and $2,160. The “Although this is a significant reduc- schools select artists from the Kentucky Arts Council’s Teaching Artists Directory, tion from last year’s grant of $788,600, which is available at http://bit.ly/teachingartists. we are extremely pleased to receive federal funding,” said Lori Meadows, executive director of the Kentucky Arts Funds Help Students Get to Arts Venues Council. “With this funding we are able to lend support to nonprofit arts organi- HE Kentucky Arts council is helping students from across the state attend zations across the state, start cultural events and performances at Kentucky arts venues. Funding through the arts district initiatives and provide arts edu- Tcouncil’s newly established TranspARTation grant covers transportation costs. cation opportunities for Kentucky’s Arts venues were selected to participate after a rigorous review of their educational youth. The funding also enables us to arts programming and their ability to provide supplemental materials to teachers. continue arts marketing programs for TranspARTation grants were awarded to: visual, performing, architectural and • Farmington Elementary, Graves County; traveling to The Carson Center, teaching artists.” McCracken County • North Washington Elementary, Washington County; traveling to Explorium of Lexington, Fayette County Ashland Senior • Sedalia Elementary, Graves County; traveling to The Carson Center, McCracken County Takes Top Prize • Fulton Independent School, Fulton County; traveling to The Carson Center, McCracken County in Poetry Contest • Stinnett Elementary, Leslie County; traveling to Lexington Children’s Theatre performance at The Forum at Hal Rogers Center, Perry County • Garden Springs Elementary, Fayette County; traveling to Lexington Children’s Theatre, Fayette County • Our Lady of the Mountains School, Johnson County; traveling to Lexington Children’s Theatre, Fayette County.

The Drowsy Chaperone Arts Events The Kentucky Center, Louisville 8 p.m. May 18-27 Around the State kentuckycenter.org (800) 775-7777 About Face: Kentucky Artisan Works Inspired Riverfront Rendezvous by the Human Face River Park Center, Owensboro Curtlyn Kramer, a senior from Ashland, was Kentucky Artisan Center at Berea May 19 the winner of the seventh annual Poetry Out Loud 9 a.m.-6 p.m. through Aug. 26 riverparkcenter.com Recitation Contest. She and her chaperone will kentuckyartisancenter.ky.gov (270) 687-2770 ext. 225 receive $200 and an all expenses paid to Washing- (859) 985-5448 ton, D.C., to compete in the national finals. Riverdance The Exquisite Stitch: Southern Kentucky Performing Arts Center, 200 Years of Hand Quilting Bowling Green The National Quilt Museum, Paducah 7:30 p.m. May 22 June 15-Sept. 11 theskypac.com Lori Meadows is executive director quiltmuseum.org (270) 904-5000 of the Kentucky Arts Council. (270) 442-8856

38 MAY 2012 LANEREPORT.COM • THE LANE REPORT

May Lane 23-44.indd 38 5/9/12 1:28 PM OPINION

I know Tim Geithner personally, and GEITHNER GOES OVER THE EDGE I like him. But treasury secretaries are not supposed to be political partisans. Treasury secretary needs to put politics aside The Cabinet departments like defense, state and treasury are typically BY LAWRENCE KUDLOW managed in nonpartisan ways because the nation’s finances and security require bipartisan efforts. Policy dis- S the government’s chief financial council of economic advisors. He agreements? Yes. Name-calling? No. officer, Tim Geithner is spending a earned his Ph.D. in economics from Geithner’s going to have to negotiate Alot of time firing campaign barbs at Harvard. But Hubbard is advising Rom- another debt-ceiling bill at the end of various Republicans and their policies. ney, and before that he counseled Bush, the year, and he’s going to need Repub- Geithner has blasted Mitt Romney by so the very political Geithner blasted lican support to get it done. The same is name on several occasions. He fre- him as a hack. true for the coming tax cliff, where all quently attacks Rep. Paul Ryan and the All Hubbard did was calculate that the Bush-era tax cuts expire. Geithner GOP budget. And he recently fired a even after all of Obama’s proposed tax will need Republican support there, broadside at top Romney economist hikes on millionaires, investors and too. And on matters like the Interna- Glenn Hubbard, who is presently dean upper-end business people, revenues tional Monetary Fund, the World Bank, of the Columbia Business School. would rise by about $150 billion a year. the dollar and other international finan- Responding to a Hubbard op-ed in But Obama’s budget schedules spend- cial issues, there may be policy differ- The Wall Street Journal – which calculated ing to rise by $500 billion a year. So ences, but treasury secretaries are that the president’s spending plans Hubbard concluded that an across-the- supposed to work with both sides of the would require an 11 percent tax board tax hike of 11 percent for every- aisle. Let President Obama and his cam- increase on people earning less than body – including below-$200,000 paign team handle the politics. That’s $200,000 a year – Geithner said, “That’s earners – would be required. the way it works. ■ a completely made-up, remarkably You can disagree with Hubbard’s spe- hackish observation for an economist.” cific numbers, but the arithmetic gap Hubbard a hack? between spending and revenues per Lawrence Kudlow is CEO of Kudlow Besides running a highly respected year is unmistakable. And a condescend- & Co., an economic and investment Ivy League business school, he was the ing put down by Geithner is a political research firm in New York City. chairman of President George W. Bush’s statement.

THE LANE REPORT • LANEREPORT.COM MAY 2012 39

May Lane 23-44.indd 39 5/9/12 1:28 PM EXPLORING KENTUCKY

The 2012 Francisco’s Farm Arts Festival will showcase more than 100 artists from 12 states.

printing techniques by Gray Zeitz of Larkspur Press are standing attractions. This year is designated as one of transi- tion for the festival, as artist participa- tion will be by invitation only, and the Lexington Art League, which produces the popular Woodland Arts Fair every August, will coordinate the art and crafts entries. The event is an opportunity to see and purchase art straight from its cre- ator, said Cynthia Bohn, owner, wine- maker, chief cook and public relations director for Equus Run. “When you buy original art, you’re getting the artist’s story as well,” she explained. “Having that personal con- nection is often as important as having the art itself.” Once you’ve ogled art, grooved on music and sipped wine during FFAF, you can head about three miles down the A Day in the Country pike to explore the state’s first town founded by a railroad A gorgeous setting provides the perfect backdrop for top-rated arts festival Originally called “Middleway,” Mid- way is halfway between Lexington and BY KATHERINE TANDY BROWN Frankfort, happily tucked among Blue- grass Thoroughbred farms. During its 1930s and ’40s rails heyday, up to 30 PENDING time outdoors in fresh row, including 2012. The festival’s for- trains a day rumbled through the center farm air, strolling past intriguing art, mer event coordinator, Marcie Chris- of a downtown that stretches two blocks Shumming to live music and peeking tiansen, believes its success has to do along the tracks. Several freight lines still into small-town shops can bring as much with the quality of art and crafts and use the active tracks running through pleasure as a dog must feel on a country with the fact that the show treats its Railroad Street, where beautifully drive with its head out a car window. Imag- exhibiting artists especially well. restored historic buildings now house ine such a glorious day, then pencil in Last year’s event featured 128 exhibi- boutiques, gift shops and antique shops. “Francisco’s Farm Arts Festival” on your tors from 15 states, with about half from Though the art fair features numer- calendar for June 23-24, set your GPS for Kentucky. Mediums include two-dimen- ous food vendors, consider saving your 1280 Moores Mill Road in Midway and get sional art, ceramics, fiber, glass, jewelry, appetite for one – or several – of tiny set for an artsy, relaxing road trip. mixed media, metal and wood. An array Midway’s seven terrific restaurants. If the address of eclectic live music, art projects for Built around 1845, the Holly Hill sounds familiar kids, and a demonstration of traditional Inn, winner of Wine Spectator’s Award of Get Artsy to wine lovers in Francisco’s Farm Arts Festival the Lexington (859) 873-5122 area, it should, franciscosfarm.org for there Equus Run Vineyards spreads across 35 acres and hosts a myriad of outdoor events for much of the year. Voted by CNN Travel as a “Must See Hidden Trea- sure of the U.S.,” the 14-year-old business has produced award-winning wine named Kentucky’s best by the readers of Kentucky Monthly for five years running. Not to be outdone, Francisco’s Farm Arts Festival (FFAF) has garnered kudos of its own. Begun in 1994, the event won the Kentucky League of Cities’ Enter- prise Cities Award in its first season, was named one of AmericanStyle’s Top 10 Art Fairs and Festivals (2007 to 2010), and has been chosen as a Southeast Tourism Francisco Farms Arts Festival is a Southeast Tourism Society Society Top 20 Event for four years in a Top 20 Event for the fourth consecutive year in 2012

40 MAY 2012 LANEREPORT.COM • THE LANE REPORT

May Lane 23-44.indd 40 5/9/12 1:28 PM Wallace Station Deli & Bakery boasts Wallace’s Big Burger, named by Food Other Events Around Kentucky Network’s Guy Fieri as one of the top five he’s eaten. • Glasgow Highland Games June 1-3, Lucas Heirloom Restaurant serves “eclectic (270) 651-3141 comtemporary cuisine” and natural food- [email protected] ies can feast on naturally-raised chicken and beef at Bistro LaBelle Market and • Great American Brass Band Festival Café. Folks hankering for old-fashioned June 7-10, Danville eats can hop on a stool at Railroad Drug (859) 319-8426 & Old Time Soda Fountain. gabbf.org Last year’s Francisco Farms Arts Festival featured 128 exhibitors from 15 state. Their mediums Put your feet up overnight at • W.C. Handy Blues & Barbecue Festival include two-dimensional art, ceramics, fiber, Scottwood Bed and Breakfast, a late-1700s June 9-16, Henderson glass, jewelry, mixed media, metal and wood. Federal country home, with original wings (270) 826-3128, restored by Jim Cogar, the first president handyblues.org Excellence each year since 2002, is and curator at colonial Williamsburg. And known for luscious, local, seasonal enjoy your country jaunt! ■ • Kentucky Shakespeare Festival ingredients prepared by Chef Ouita June 12, Louisville (502) 574-9900 Michel, four-time James Beard Founda- Katherine Tandy Brown is a correspondent for The Lane kyshakespeare.com tion Award nominee. Her casual eatery, Report. She can be reached at [email protected].

Birthplace of the Judds & Billy Ray Cyrus Ashland, Kentucky Located on US 23 Country Music Highway Send us your events - We will post them! www.visitasklandky.com (606) 329-1007 (800) 377-6249

THE LANE REPORT • LANEREPORT.COM MAY 2012 41

May Lane 23-44.indd 41 5/9/12 1:28 PM PASSING LANE Commentary on Kentucky

tage, though, the governors last year Ph.D.’s in Cooperation quickly managed to split the compli- cated infrastructure project in two: Ken- ELLARMINE Uni- media and society would tucky will manage and pay for the versity bestowed do well to emulate. Citi- downtown Louisville bridge and rework- Bhonorary doctor zens throughout both ing of the I-65, I-71 and I-64 “Spaghetti of law degrees upon states will gain much Junction.” Indiana will manage and pay Kentucky Gov. Steve Bes- from the increased coop- for the East End crossing bridge and its hear and Indiana Gov. eration between govern- approaches. Mitch Daniels at the uni- ments in Kentucky and Work is expected to begin late this Gov. Steve Indiana Gov. year or early in 2013. versity’s May 12 spring Beshear Mitch Daniels Indiana that these two gov- commencement to rec- ernors have demonstrated Civility in public discourse and bipar- ognize their regional together.” tisan cooperation made both governors partnership, civil public discourse and Beshear, a Democrat, and Daniels, a and both states big winners. bipartisan cooperation for the benefit Republican, have worked cooperatively “Gov. Daniels and Gov. Beshear of all citizens. on infrastructure and economic devel- embody the principles taught at Bellar- “Both governors have demonstrated opment issues, most notably a financing mine University, through our liberal arts a genuine commitment to civility in plan to cut costs and speed completion curriculum, by exhibiting great skill in public discourse, bipartisan cooperation of the Ohio River Bridges Project in critical thinking and problem solving and regionalism,” said Dr. Joseph J. Louisville and Southern Indiana. through effective dialogue,” said McGowan, Bellarmine’s president. “In It has become too rare today for poli- McGowan. doing so, they have set a standard for ticians to cooperate with members of Maybe the governors should jointly effective governance that all govern- the opposite party. Rather than haggle teach a course in political science when ment leaders and everyone in politics, over some perceived political advan- their terms end.

The Art of Job Creation 2.4 Cents for RTS marketing pro- Your Thoughts? grams and an arts and Acultural districts initia- HE U.S. government has tive developed by the Ken- found a way to lose money tucky Arts Council Kentucky Teven while making money. were cited on several occa- Specifically, it costs the Treasury 2.4 sions in the recent National cents to make a penny. (The metal Governors Association’s content, mostly zinc, accounts for report “New Engines of about half a cent of Growth: Five Roles for Arts, this.) And why does Culture, and Design.” it bother? For “We expect that the Cul- most people, tural District Certification pennies are Program will create benefits not worth the that extend far beyond the hassle of car- arts and cultural sector to rying them benefit the commonwealth as around; if a whole,” said Gov. Steve Bes- you drop hear. “The NGA report will attract national recognition one, the only 21c hotel in Louisville has been merging art, business reason to pick for the program, as well as and hospitality successfully for several years. it up is to avoid promote the use of Kentucky’s littering. Beggars existing assets and infrastruc- angrily toss them ture to generate economic activity, encourage business and job development, and away, and with “a facilitate community development.” penny for your thoughts” tan- The NGA Center for Best Practices will share info on what commonwealth arts tamount to an insult and “pennies development officials are doing with other states. from heaven” sounding like a Bibli- There is a national movement of state-certified cultural districts, the growing cal plague, is there any reason to importance of arts-based placemaking and economic development strategies among keep minting them? The Canadi- state arts agencies, according to Dr. Jonathan Katz, CEO of National Assembly of ans have decided that there isn’t, so State Arts Agencies, which serves as a clearinghouse for data and research about pub- they will cease production of pen- lic funding and the arts. He addressed Kentucky tourism, agriculture, arts and busi- nies next year. This is one worth- ness leaders early this month in Frankfort. while Canadian initiative. “Kentucky communities are working very hard to put the arts at the center of downtown revitalization efforts,” said Lori Meadows, executive director of the Ken- Source: National Review April 30, 2012 tucky Arts Council. “We are very proud to have this national recognition and serve as a model for other states’ economic and community development.”

42 MAY 2012 LANEREPORT.COM • THE LANE REPORT

May Lane 23-44.indd 42 5/9/12 1:28 PM Healthy, Wealthy and Wise Former UK President AY is Employee Health and Fit- Roselle Recognized ness Month to promote the ben- Mefits of workplace wellness to 144-bed University of Kentucky employers and employees. The best way residence hall first opened in for companies to emphasize the impor- A 2005 was christened David P. tance of healthy lifestyles is to establish an Roselle Hall last month to honor UK’s employee wellness program. It can con- ninth president. tribute to a company’s bottom line. During his July 1987 through It takes structure and employees’ par- December 1989 term, Roselle pushed ticipation, but these proactive programs wider access to information and compu- can prevent or reduce health issues and tation technology on campus. educate employees to overcome health Of his new memorialization, Roselle risks, including the two biggest: smoking said, “This honor confirms that my and obesity. An effective program equips respect and good wishes for the Univer- participants with knowledge and tips to sity of Kentucky are reciprocal, and that manage stress, eat well, lose weight, exer- is extremely important to me.” cise properly and more. According to the Harvard Business Review, a study by Drs. Richard Milani and Carl Lavie found 57 percent of participants were converted to “low-risk status” after only a six-month wellness program. “Wellness programs help employees understand that they are ultimately responsible for their individual health,” explains Maggie Thorison, Wellness Man- ager for TOPS Club Inc. (Take Off Pounds Sensibly), the nonprofit weight- loss support organization. “Many employees are literally changing their lives through wellness programs.” David P. Roselle, President, University of Kentucky, 1987-89 Chronic diseases, obesity and other preventable health concerns cost businesses from thousands to many millions of dollars each year. The website Healthcare.gov explains, “The indirect costs of poor health – including absenteeism, disability and reduced work output – may be several times higher than direct medical costs. Produc- Roselle departed UK to become the tivity losses related to personal and family health problems cost U.S. employers University of Delaware’s 25th president $1,685 per employee per year, or $225.8 billion annually.” from 1990 to 2007. Now director of The financial impact of employee wellness programs can vary, but according to a Winterthur Museum, Garden and February 2010 article in Health Affairs, company medical costs fall an average of $3.27 Library, last month he was named one for every dollar spent on wellness programs, and absenteeism costs decrease $2.73 for of Delaware’s 50 Most Influential Peo- each dollar used. Implementing an effective wellness program can help boost an ple by Delaware Today magazine and organization’s productivity and rein in their healthcare costs. called the “architect of the modern UD TOPS explains the impact of workplace wellness and offers lots of tips for a suc- (University of Delaware).” cessful program at tops.org/WellnessBlog. Maybe this Employee Health and Fitness Roselle Hall houses UK’s Fine Arts Res- Month can be the beginning of a healthier operation at your company. idential College for first-year students.

zine’s website,” Hailey said. “With top- Hailey Joins The Lane Report as Associate Editor notch writing, editing and photography, our readers and advertisers will soon real- ORIE Hailey has tal platform and product offerings, said ize that when it comes to up-to-the-minute joined The Lane Mark Green, editorial director for the Kentucky business news, lanereport.com is LReport as associate magazine and Lane Communications. the site you can depend on.” editor. In addition to writ- With nearly 16 years experience in Ken- The Lane Report’s website expanded ing and editing for the tucky community newspapers, most its presentation of daily news and now statewide-circulation mag- recently as editor of The Richmond (Ky.) Reg- includes photo galleries, which Hailey azine, Hailey is responsi- ister, Hailey has the knowledge, skills and and other staff member are filling with Lorie Hailey ble for expanding and talent to make lanereport.com Kentucky’s photos of key Kentucky events and peo- maintaining our growing best source for daily business news and ple. The galleries will feature fresh con- online product at lanereport.com. events from across the state, Green said. tent several times a week. The staff expansion is an outgrowth “We feel fortunate to be able to add "I'm pleased to join an excellent print of the well-received FasterLane email someone of Lorie’s talent level to our and digital news team," she said. blast The Lane Report launched in 2011 staff,” he said. Hailey lives in Lexington with her and positions Lexington-based Lane “I’m excited to bring the quality and husband, Steve, a stock broker at Nancy Communications Group to grow its digi- reputation of The Lane Report to the maga- Barron and Associates.

THE LANE REPORT • LANEREPORT.COM MAY 2012 43

May Lane 23-44.indd 43 5/9/12 1:28 PM KENTUCKY PEOPLE

LOUISVILLE: HYATT REGENCY HOTEL JENKINS: ARC BESTOWS GRANT TO CITY UNVEILS $5.8 MILLION RENOVATION FOR REGIONAL STRATEGIC PLANNING

The Appalachian Regional Commission recently awarded $10,000 to the City of The Hyatt Regency Louisville recently completed a $5.8 million renovation, de- Jenkins to help advance strategic planning efforts in the region. Attending the signed to help meet the new demands of business meeting and convention attend- presentation were (left to right) Sue Moreland, of the ARC Washington, D.C. of- ees. The renovation was the largest such project in the hotel’s 34-year history. In fice; Peggy Satterly, manager of the Kentucky ARC program; Jenkins Mayor G.C. attendance at the ribbon cutting were (pictured left to right) Hyatt Senior Vice Kincer; Lynn Littrell, executive director of the Office of the Governor, Depart- President of Field Operations David Phillips, Hyatt Regency General Manager ment for Local Government; and Lonnie Lawson, president and CEO of The Donna Marquez and Louisville Mayor Greg Fisher. Center for Rural Development.

PIKEVILLE: SBA HONORS COMMUNITY BOWLING GREEN: WKU AMD CHINA’S HEBEI TRUST BANK AS TOP LENDER IN 2011 UNIVERSITY FINALIZE 2+2 PARTNERSHIP

A delegation from Western Kentucky University traveled to China’s Hebei prov- ince in April to finalize a five-year agreement creating a “2+2” program between Hebei University and WKU. In the “2+2” program, Hebei University students Ralph Ross, left, district director for the U.S. Small Business Administration will complete two years of business courses and English language training in Ba- (SBA) in Kentucky, recently presented Community Trust Bank with the “Gold oding City. Those students will then travel to Bowling Green to complete the Lender Award” for being Kentucky’s top SBA 7a lender in 2011. Mark Gooch, final two years of their undergraduate degrees at WKU. Pictured here shaking right, president and chief executive officer of Community Trust Bank, and Terry hands after signing the agreement are Dr. Wang Fengming (left), vice president Spears, SBA Small Business Banking Officer for Community Trust, accepted the of Hebei University, and Dr. Brian Meredith, associate vice president for enroll- honor on behalf of the bank. It is the third consecutive year Community Trust ment management at WKU. Also attending the ceremony were (from left): Dr. has received the SBA award. Wang Jianghong, dean of Economic College; Dr. Xu Jianzhong, director of the Science Department; Dr. Sun Jianfu, dean of Management; Dr. Wei-Ping Pan, director of WKU’s Confucius Institute; Raza Tiwana, assistant director of Inter- national Admissions; Ryan Hall, English as a Second Language International director; Dr. Guo Fuliang, dean of International College; and Dr. Xu Jianmin, dean of Industry and Commercial College.

44 MAY 2012 LANEREPORT.COM • THE LANE REPORT

May Lane 23-44.indd 44 5/9/12 1:55 PM MAY_CoverJM.indd 3 5/9/12 1:22 PM MAY_CoverJM.indd 4 5/9/12 1:22 PM