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021754Lexington3QSMB8125x10875.indd 1 7/16/2018 1:15:54 PM Meet the new KICC. A 943,450 square foot shot of adrenaline for the Kentucky economy.

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KICC-02097-Adrenaline2(8.125X10.875).indd 1 9/13/18 11:39 AM OCTOBER LaneThe Report 2018 Kentucky’s Business News Source For 33 Years Volume 33 Number 10

22 GENOMICS IMPROVES KENTUCKY CANCER CARE Informatics tools making treatment of nation’s worst concentration of malignancy personal

26 TARIFFS TILTING PROJECT FINANCES Steel, aluminum price hikes complicate construction bidding for designers and builders

30 COVER STORY BEING AN ARCHITECT IS ‘A FUN JOB’ AGAIN Busy Kentucky design firms are growing with the rebounding state and national construction market

33 GETTING COZY WITH THE CLOUD Kentucky businesses shift more services and IT operations away from legacy systems

Departments 4 Perspective 36 Emerging Lane 6 Fast Lane 38 The Lane List 14 Interstate Lane 39 Spotlight on the Arts 15 Kentucky Intelligencer 40 Exploring Kentucky 16 Corporate Moves 42 Passing Lane 17 On the Boards 44 Kentucky People 18 Lane One-on-One: William “Bill” Butler Chairman/CEO, Corporex Companies LLC

On the Cover lanereport.com Pent up construction demand that Kentucky Business News Online accumulated during and after the Great Read up-to-the-minute Kentucky business news stories, Recession now has Kentucky architects current and archived copies of The Lane Report, in the midst of what for many is the Market Reviews, Health Kentucky, Research Kentucky busiest times they’ve ever had. special reports and community profiles.

Faster Lane Email news bulletin Three or more times a week, the editors of The Lane Report publish Faster Lane – email bulletins of fast breaking and important Kentucky business and economic news. Visit lanereport.com to sign-up for this free, must-have, at-your-fingertips news service. MEET THE GUY WHO PUT THE PRO IN PRO BUSINESS.

Governor

For a state to have a pro-business climate, it must have a pro-business governor. Arkansas’ Asa Hutchinson is actively involved in attracting and keeping business in our state. He’s developed a pro-business culture that is ready to act quickly and decisively on corporate interests. Learn more about how a business-friendly state ArkansasEDC.com/probusiness can work for you at ArkansasEDC.com/probusiness. 1-800-ARKANSAS LaneThe Report Kentucky’s Business News Source for 33 Years PERSPECTIVE EXECUTIVE EDITOR Mark Green

ASSOCIATE EDITOR Karen Baird NEW CARS, declined by 65 percent since 1980, DIGITAL EDITOR emissions by Russia and China during Jonathan Miller CLEANER AIR the same period have risen by nearly twice as much as ours have dropped. CREATIVE DIRECTOR Changes in EPA, Transportation Market forces, not burdensome and Jessica Merriman tactics will make travel safer, too DIGITAL REPORTER expensive federal regulations, are Matt Wickstrom credited with producing much of CREATIVE SERVICES BY PAT FREIBERT America’s decreased emissions of Stone Advisory greenhouse gases. Fracking has lowered Paul Blodgett the price of natural gas so that it is

CORRESPONDENTS cheaper than coal, dramatically cutting Michael Agin; Katherine Tandy Brown; HAT do the president’s carbon emissions. The private sector’s Russ Brown; Chris Clair; Clary Estes; proposed changes in federal “can do” approach along with certain Kevin Gibson; Susan Gosselin; Robert Hadley; WCAFE (Corporate Average Fuel federal requirements are both necessary Lorie Hailey; Debra Gibson Isaacs; Abby Laub; Economy) standards have to do with the to continue the effort to lower carbon Esther Marr; Greg Paeth; Robin Roenker; Josh average American? And how has the U.S. Shepherd; Sean Slone; Katheran Wasson; emissions into the atmosphere. Gary Wollenhaupt; Dawn Yankeelov been able to reduce its carbon emissions Former Vice President Al Gore, a by 65 percent since the year 2000. PUBLISHERS Nobel Peace Prize winner, and other Brett Lane In an effort to reduce such emissions left-wing spokesmen and women have Meredith Lane Ferguson into the atmosphere, CAFE standards continued to preach sermons in an

SENIOR ASSOCIATE PUBLISHER were dramatically increased by the effort to force Americans out of their Donna Hodsdon Obama administration. Some of those cars. Remember Gore’s refrain, “the

ASSOCIATE PUBLISHERS CAFE standards produced a significant combustible engine is one of the worst Hal Moss hidden tax on American drivers and a inventions of all time.” Stephen Moore, Kristina Dahl drag on the economy. If left economist and adviser to presidents, CHIEF OPERATIONS OFFICER unchanged, these standards can result reminds us what the combustible Nicole Conyers White in CAFE requirements mandating a rise engine replaced: the horse, “one of the CONSULTANT in fuel efficiency from its present 35 most prodigious polluters of all time. Dick Kelly miles per gallon to 54 mpg in 2025. The average 1,000-pound horse dumps MARKETING CONSULTANT That would raise the cost of many new 30 pounds of feces and 2 gallons of Curtiss Smith cars by $3,000. urine a day. Can anyone imagine what CIRCULATION/IT To address these and other negative Washington, D.C., or Pittsburgh or New Josiah White results from the draconian Orleans smelled like on a hot, requirements scheduled in existing FOUNDER sweltering summer day or what all that Ed Lane regulations, the U.S. Secretary of feces did to our water supply. Oh, and 1985-2015 Transportation Elaine Chao and watch where you step!” Environmental Protection Agency Horses need to be on beautiful Blue SYNDICATED COLUMNS Administrator Andrew Wheeler have Grass farms or race tracks, not Creators Syndicate developed a new rule “that can save transporting goods and people across PRINTING & CIRCULATION SERVICES lives, reduce pollution, grow the the country. Henry Ford’s mass Publishers Printing Co. economy and let people buy the cars production of automobiles gave our WEB MARKETING & PUBLISHING they want.” horses a rest. eLink Design The Department of Transportation By the way, Secretary Chao tells us IT SERVICES finds that the best way to achieve cleaner that the Department of Transportation NetGain Technologies air is when families can afford to buy new is also carefully studying implications of INTERNET SERVICES cars, getting older and higher polluting driverless cars. For those fearful of such QX.net ones off the road. According to the automobiles, consider the positive side Lane Communications Group Competitive Enterprise Institute, the new of driverless cars such as no more is a member of standards are expected to save about drivers applying makeup while driving, 1,000 lives yearly. In the effort to save on drivers focusing their attention on their oil, existing CAFE standards have iPhones, sending texts, receiving texts, tolerated standards that encourage car The Lane Report is published monthly by: talking on their cell phones, combing Lane Communications Group manufacturers to build ever lighter cars to their hair, disciplining their children or 601 West Short St meet the mandatory fuel standards. But blasting their sound systems to Lexington, KY 40508 [email protected] lighter cars built with plastics rather than entertain those in other cars nearby. For more information and steel provide less safety for the occupants Thank you, Secretary of advertising rates contact: PHONE: 859-244-3500 of the automobiles, trading better fuel Transportation and Environmental efficiency and less safety for occupants. Protection Agency Administrator, for The annual subscription rate is $29. (Kentucky residents add $1.74 sales tax.) Even with the proposed Trump changes, listening to Americans and trying to Newsstand price is $4.50. the mileage requirements would still rise work out the proposed changes in Send check or money order to: to 42 mpg by 2025. CAFE standards. ■ Circulation Manager, The Lane Report It is a fact that the U.S. has been 601 West Short St., Lexington KY 40508 or go to lanereport.com/subscribe steadily and dramatically reducing its carbon emissions, largely due to market Pat Freibert is a former Kentucky state The Lane Report corrects all significant errors that representative from Lexington. She can are brought to the editors’ attention. forces and not federal regulations. On the other hand, while the U.S. be reached at [email protected]. emissions of greenhouse gases have

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BALLARD COUNTY LOUISVILLE PAPER PRODUCTS MANUFACTURER INVESTING $150M TO RESCARE REBRANDS REOPEN FORMER VERSO PLANT, CREATING 500 NEW JOBS AS BRIGHTSPRING

LOBAL Win Wickliffe HEALTH SERVICES LLC, a Chinese-owned Gpaper products ESCARE, a Louisville-based manufacturer, has announced company that provides home and plans to reopen the former Rcommunity-based health services, has rebranded itself as Verso Corp. mill in Ballard BrightSpring County. Health Services. The company is investing One of the nation’s largest providers $150 million in the project, of diversified home and community- which will bring 500 full-time based health services to complex, high- jobs to the Western Kentucky cost populations, the company provides community. nonclinical habilitative services and/or Global Win Wickliffe clinical rehabilitative services for people executives signed a purchase of all ages and skill levels, including agreement in August to buy the behavioral health, home health care, Verso facility for $16 million and hospice, neuro therapy, pharmacy, and plan to refurbish the mill with telecare as new equipment and updated Global Win Wickliffe’s plant in Ballard County will produce well as job pulp and brown-paper packaging materials. technology. The facility will placement produce pulp and brown-paper and vocational packaging and will be the company’s first plant in the United States. training. Since Ohio-based Verso idled the facility and furloughed 310 employees in November its inception 2015 in response to decreased demand for the mill’s coated-paper products. The 44 years ago, company closed the mill in July 2016. the company has grown significantly and “Since the facility’s closure two years ago, our economic development team has now employs more than 45,000 worked tirelessly alongside Verso to find the right match for the region’s workforce,” employees in over 40 states. said Gov. Matt Bevin, “and we are confident we have found that in the buyer.” The company’s CEO, Jon Rousseau, Global Win Wickliffe anticipates reopening the mill by the end of the year. said the company has seen a number of changes over the past several years as the health-care industry has evolved and SHEPHERDSVILLE that the rebranding is a reflection of that. Rousseau said the name WALMART HIRING 400 TO OPERATE NEW $41 MILLION BrightSpring was selected because it E-COMMERCE FULFILLMENT FACILITY IN BULLITT COUNTY reflects optimism, compassion, innovative thinking and hope. ALMART is investing $41 million to “As health-care needs are changing open a new e-commerce fulfillment and new solutions are developing, we’re Wcenter in Shepherdsville that will be continuing to enhance our capabilities dedicated to fulfilling online orders from and the value of our services with a focus Walmart.com and its recently acquired on providing comprehensive and high- subsidiary, Jet.com. quality care in the most appropriate and The Arkansas-based company is leasing a preferred environments,” said Rousseau. 720,000-s.f. building in the Velocity 65 trade “BrightSpring’s unique offerings will center off of I-65 in Shepherdsville. In drive quality, person-centric service and addition to 400 full-time permanent workers care where and when people need it.” that will be hired for the new facility, Brightspring’s new “house of brands” Walmart will eventually employ several includes: ResCare HomeCare; hundred more temporary workers, including ResCare Community Living; ResCare seasonal employees, which could push the Workforce Services; SpringHealth employment numbers as high as 900. Behavioral Health and Integrated The expansion is part of Walmart’s move to further expand into the e-commerce Care; Rehab Without Walls; Pharmacy realm as it competes with online giant Amazon. Alternatives; Rest Assured; Adoration “This is a major new venture for the company that will bring significant Home Health and Hospice; and investment and hundreds of jobs to the region,” said Gov. Matt Bevin. “It is further Gateway Pediatric Therapy. Several of confirmation that Kentucky is the established leader for logistics and distribution in these brands will also see name changes the United States.” in the months ahead. According to state data released earlier this year, Kentucky is currently home to In addition to changing its name, the 524 logistics and distribution facilities that employ a total of 67,315 people. company will be moving into a newly Walmart currently operates two other fulfillment centers in Kentucky (London developed headquarters building and Hopkinsville), both of which employ more than 800 workers. The company located off North Whittington Parkway plans to open the Shepherdsville fulfillment center in October. in Louisville in November.

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BUSINESS BRIEFS LEXINGTON METRONET NETWORK MOVES LEXINGTON ASHLAND CLOSER TO CITYWIDE GIGABIT STATUS ■ Charleston, W. Va.-based City Holding Co. has acquired Poage Bankshares, the parent company of Town Square Bank, in a EXINGTON Mayor Jim transaction valued at $93.5 million. Poage operates nine branches Gray joined MetroNet across northeastern Kentucky, in addition to a loan production office. Lexecutives and team As of March, 31, 2018, Poage had $450 million in total assets, $375 members on Aug. 28 to million in deposits and $333 million in gross loans. celebrate the official activation BOWLING GREEN of the company’s 100 percent ■ Thirty students make up the inaugural class of the University of fiber optic internet, TV and Kentucky College of Medicine – Bowling Green, which officially got phone services in Lexington. underway in August. UK is collaborating with Western Kentucky “This is a first step to MetroNet executives were joined by University and Med Center Health on the new medical school making Lexington the nation’s Lexington civic leaders on Aug. 28 to program, with the goal of increasing the number of physicians serving largest gigabit city, with some in community settings across the state. celebrate the company’s new fiber-optic of the fastest internet speeds in internet service, which will ultimately CENTRAL KENTUCKY the world,” Gray said. “With be citywide. Pictured here, left to right, ■ The Kentucky Public Service Commission has ordered MetroNet’s $70 million are: MetroNet Executive Vice Kentucky American Water to reduce its rates for investment in a fiber-optic President and General Manager Kevin residential customers to reflect the decrease in federal network, Lexington will be Stelmach; Lexington-Fayette County corporate income tax rates that went into effect earlier one of only two cities in the Councilwoman Jennifer Mossotti; this year. For residential customers, the cost per 1,000 country with state-of-the-art MetroNet President John Cinelli; gallons drops from approximately $6.02 to $5.06. KAWC Lexington Mayor Jim Gray; and will return the savings accrued since the first of the year infrastructure across the city.” MetroNet founder Al Cinelli. to customers, as well as those realized each month going forward. Gigabit speed moves data KAWC has some 131,000 customers in 10 central Kentucky counties. at 1,000 megabits per second. According to studies cited by the Lexington Herald-Leader, Lexington’s average internet COVINGTON speed is 16.2 megabits per second. ■ The Covington City Commission has approved an ordinance allowing In November 2017, Indiana-based MetroNet responded to street-legal golf carts to operate throughout the city’s downtown area. Gray’s initiative to make Lexington the largest gigabit city in the The services will be offered free of charge by private companies that generate their revenue via advertisements on the vehicles. The carts will be country. The company began construction in January 2018 and limited to area streets with speed limits of 25 miles per hour. the August celebration included opening a new retail storefront to serve as the command center for customer service and sales. CYNTHIANA As of late August, more than 360 customers in four ■ Bullard, a 120-year-old Cynthiana southeast Lexington areas were receiving service and the company that specializes in personal company said more are being added daily. The goal is for the protective equipment and systems for fiber-optic network to cover the entire city. emergency responders and the industrial health and safety market, has opened a new According to the MetroNet website, gigabit internet service is facility in Lexington. The Lexington location priced at $59.95 per month. A gigabit internet, TV, sports, DVR will focus on research and development, new and phone package is priced at $96.95 per month. product development, marketing and global shared resources.

■ City Holding Co., a West Virginia bank holding company, has STATE acquired Cynthiana-based Farmers Deposit Bancorp Inc. in a $24.9 million transaction. Farmers Deposit Bank was founded as a full-service ENERGY INITIATIVE REAPS $66M SAVINGS bank in 1866 and currently operates three branches in the Central Kentucky market. As of March 31, 2018, Farmers Deposit had $122 in FOR KY’S COMMUNITY COLLEGE SYSTEM total assets, $98 million in deposits and $60 million in gross loans. HE Kentucky Community FRANKFORT and Technical College ■ Castle & Key Distillery has officially opened TSystem reports that it will to the public following extensive renovations to gain $66 million in energy savings the historic property, which dates back to 1887. over a 10-year span thanks to New owners Will Arvin and Wes Murry had a vision of creating an “immersive distillery energy-savings performance experience” and have restored the 113-acre contracts and its participation in property’s structures, which include a European- the Commonwealth Energy inspired castle, peristyle springhouse and Management Control System. sunken garden. The distillery’s Restoration “This is important not only because the system is saving Release Gin and Restoration Release Vodka money, but also because it saves our students money,” said are currently for sale in Kentucky and Tennessee. KCTCS President Jay Box. “Over the last several years, we have HAZARD looked for a number of ways to cut costs. Energy savings ■ The City of Hazard has been given preliminary approval for a $900,000 performance contracts are paying off in a big way for us, and we grant through the 2017 Abandoned Mine Lands Pilot program that will be continuously seek additional savings in all areas of our system.” used to bring a natural-gas pipeline from a wellhead in the central Perry Currently, seven KCTCS colleges are participating in a County area to the Coalfields Regional Industrial Park. The addition second round of energy savings performance contracting and of natural gas to the industrial park will enhance the area’s ability to attract are guaranteed savings exceeding $38.8 million over the life jobs to the region. The 236-acre industrial park is built on former surface- of the contracts. The first round of energy savings mine land and offers highway access and other infrastructure resources. The pipeline project is expected to cost $2.98 million, of which $32,000 is performance contracting resulted in savings exceeding $28 coming from the City of Hazard and $2 million from other federal funds. million for the 16 KCTCS colleges.

8 OCTOBER 2018 LANEREPORT.COM • THE LANE REPORT LOUISVILLE BUSINESS BRIEFS JCTC LAUNCHES PROGRAM TO TRAIN AUTOMOTIVE TECHS FOR MERCEDES HENDERSON ■ SKAPS Industries, a producer of rolled fiberglass products, is EFFERSON Community investing $5 million to update and equip its recently acquired and Technical College Henderson facility, which previously housed Matrix Composites Inc. Jhas formed a new The project will provide more production capacity for the facility and apprenticeship program with will create 20 new jobs. The Georgia-based company is major fabricator of geosynthetic and nonwoven drainage products used in a broad range Mercedes-Benz USA of industries. (MBUSA) to address a national demand for HIGHLAND HEIGHTS automotive technicians. ■ Northern Kentucky University has expanded its early-enrollment “The need for educational programs like these are program at Salmon P. Chase College of Law to reach more students in important as we face an acute shortage of qualified Kentucky. The Chase 3+3 Accelerated Law Program, which combines a technicians,” said Christian Treiber, vice president of final year of undergraduate study with a first year of law school, is now customer service for MBUSA. “The shortage largely comes available to undergraduate students at Eastern Kentucky University as well as those at , from the outdated image of mechanics and increase in Northern Kentucky University Thomas More College and Mount St. Joseph University (Cincinnati). demand. Today’s mechanics must now have a completely different skillset; they are technologists that cater to HORSE CAVE Sister Schubert’s photo increasingly complex vehicles. Training programs like the ■ Sister Schubert’s Homemade ones at JCTC are critical to help close this technician gap.” Rolls Inc. is investing $50 million to The Mercedes-JCTC program, the first of its kind in expand its manufacturing operation in Kentucky, will prepare students to become a Level 1 Horse Cave. The project will add 120,000 s.f. to the existing plant and Mercedes-Benz Certified Systems Technician over the course includes the installation of a new of three semesters. Students will train on Mercedes-Benz baking line to support future growth. vehicles, intern at a Mercedes-Benz dealership in the area, The new lines are expected to be and have the opportunity to gain full-time employment after operational by 2020 and will create 72 completing the program. new full-time jobs. The expanded The first class of 16 students started in August and will operation will begin with one 10-hour graduate in August 2019. The program is also designed as an shift and grow to two shifts thereafter, based on product demand. entry point to an associate’s degree program.

SULLIVAN IS DOING THE UNHEARD OF, PASSING OUR SAVINGS ON TO YOU WITH A TUITION REDUCTION!

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BUSINESS BRIEFS LEXINGTON UK MARKEY CENTER EARNS RENEWAL LETCHER COUNTY OF NATIONAL CANCER CENTER STATUS ■

Letcher County has been awarded a $4.5 million Abandoned Mine UK photo Lands Pilot Grant for a water expansion project that will serve a planned HE National Cancer federal correctional facility in Roxana as well as 100 households. The Institute has renewed funding will be used to install approximately 9.5 miles of water Tthe University of transmission lines, along with elevated storage tanks and booster pump stations, and a waste-water treatment plant to support the 800-acre Kentucky Markey Cancer penitentiary. The penitentiary will house more than 1,200 inmates and Center’s national cancer employ approximately 300 full-time staff. center designation for the next five years. LEXINGTON The designation gives ■ Blue Grass Airport has opened a new 12,000-s.f. Markey the distinction of facility for private aviation aircraft owners. Staff at The Markey Cancer Center’s being one of only 70 NCI the facility will provide aircraft fueling services and centers in the country and towing assistance to and from hangars. Amenities designation as a national cancer include a lounge, flight-planning area and center by the National Cancer Institute the only one in Kentucky. conference room. has a broad impact on medical Markey’s renewal as an research at the University of Kentucky. NCI-designated cancer center ■ Grogan’s Inc., a Lexington distributor of medical and surgical includes a five-year grant projected at $10.8 million to supplies and equipment, has been sold to Philadelphia-based support research, recruitment of faculty, education and Democrasales Inc. for an undisclosed amount. The combined clinical trials. The previous five-year grant from NCI helped company will be one of the nation’s largest independent health-care Markey recruit dozens of new researchers and clinicians, pilot distributors focusing primarily on the non-acute market. Grogan’s Inc. CEO Alan Grogan will remain with the company as executive vice new research projects targeted at Kentucky issues, and launch president of the combined business. precision-medicine initiatives that are changing the standard of cancer care in the state. ■ The Transit Authority of Lexington (LexTran) has been awarded a Total research funding to Markey has increased 48 percent $2.3 million grant from the U.S. Department of Transportation to in the past five years, while NCI research funding during that purchase new battery electric buses. The buses will add to LexTran’s same time has increased 24 percent. More than $2 million of existing electric fleet, which has replaced older vehicles at the end of that NCI funding comes from grants that are only available to their useful life with more efficient models. The award is part of the U.S. DOT’s Low- or No-Emission Grant Program. As part of the program, NCI-designated cancer centers. LexTran will partner with a nonprofit research organization to assess the National Cancer Institute designation grants are awarded operational benefits of electric buses. for five-year periods. Markey will have the opportunity to renew its status and simultaneously apply for Comprehensive ■ Alltech’s Town Branch Distillery in Cancer Center designation, the highest level of NCI Lexington will soon be using non-GMO corn designation, in 2022. grown on the Nicholasville farm of Alltech co-founder Deirdre Lyons. Alltech’s crop science division is cultivating the plants using its LEXINGTON own organic solutions to optimize yield and ensure a healthy harvest destined for use in AUTO SUPPLIER WEBASTO ADDING 183 bourbon and rye whiskeys. To be classified as JOBS TO SUPPORT NEW PRODUCT LINES straight bourbon, whiskey must be distilled using a mixture of grains that is at least 51 UTOMOTIVE supplier percent corn. Town Branch Bourbon is 72 percent corn, requiring an average of 550 pounds of corn per one barrel of finished bourbon. Webasto Roof ASystems is investing

■ Just four months after opening its hemp-oil extraction operation in $15.2 million to add a new photo Webasto Lexington, Zelios is investing $2.1 million to double its production capacity. production line at one of its The company’s extraction method yields purified full-spectrum CBD crude two Lexington facilities that oil that contain fats, waxes and terpenes from the original hemp raw material will create 183 new jobs. that can be used in balms and lotions and serve as the base for further The new production line refinement for additional CBD-rich products. The new refinement processes will allow the company to create higher-content CBD oil that can be used in will manufacture high-tech, all Webasto’s new production will various consumer products as well as a base for CBD isolate production. The glass, electronically tintable produce panorama roof systems expansion will create 44 new full-time jobs. panorama room systems for for luxury vehicles. luxury vehicles. The roof LOUISVILLE systems will include optional tilt-slide sunroofs. ■ Air Hydro Power Inc., a Louisville-based industrial distributor that Plant Manager John Wilder said the company will launch specializes in hydraulics and pneumatics, has acquired Alabama Bolt three completely new sunroofs with two different customers and Supply Inc. of Montgomery, Ala. It is the third acquisition Air Hydro Power has made in Alabama over the last 20 months. AHP now by the end of this year and will continue into next year with has a total of more than 200 employees in 14 locations. increased volumes. Webasto’s 572-employee Kentucky campus in Lexington is ■ LCSystems Inc., a family-owned Louisville company that produces part of Michigan-based Webasto Roof Systems and a supply and exhaust air equipment for professional kitchens, has been subsidiary of Webasto Group, a global automotive supply acquired by Halton Group in a transaction valued at nearly $4 million. company headquartered in Germany. The company’s core The two companies have a long history of working together, dating back business focuses on the development and production of to the 1990s. Founded in Finland in 1969, Halton Group develops and provides solutions for commercial and public premises, health-care sunroofs, panorama roofs and convertible roofs as well as institutions and laboratories, professional kitchens and restaurants as thermo systems for all drive types. The company is also well as energy production environments. The company employs nearly expanding its product portfolio for electromobility with 1,500 people in over 30 countries. battery and charging systems.

10 OCTOBER 2018 LANEREPORT.COM • THE LANE REPORT HENDERSON BUSINESS BRIEFS BIG RIVERS ELECTRIC CORP. TO EXIT AS HENDERSON POWER PLANT OPERATOR LOUISVILLE ■ Louisville-based Material HE Kentucky Public Service Commission has deemed Handling Systems Inc. the city of Henderson’s Station Two power plant “no has acquired OCM, a OCM photo Tlonger economically viable” and relieved Big Rivers European company headquartered in Italy that Electric Corp. (BREC) of any continuing obligation to operate the coal-fired power plant. provides sortation system technologies to BREC has operated the international courier and plant, which has a combined warehouse and distribution capacity of 312 megawatts, logistics companies. under a series of contracts Financial details of the dating back to 1970. acquisition have not been released. MHS currently operates seven facilities The output from the plant is sold into the wholesale in the U.S. and Canada. market of the Midcontinent Independent System ■ Norton Healthcare has announced an agreement with Walgreens to Operator (MISO), the transmission grid operator of which begin operating and providing all clinical services at eight retail health BREC is a member. Two analyses, one conducted by BREC clinics located in Walgreens drug stores across the Greater Louisville area. and the other by an independent consultant working for The eight existing clinics are planned to transition to Norton Healthcare in BREC, found that the cost of producing power at Station early 2019, at which time they will become an extension of Norton Two in the future is likely to exceed the revenue it would Healthcare and will operate as Norton Prompt Care at Walgreens. generate in the MISO market while yet another study found ■ that virtually any other combination of available sources of The University of Louisville has launched an online franchise management certificate, a graduate-level program offered through the electricity would be less expensive than continuing to College of Business. The program is targeted to current and future operate Station Two. The contracts allow BREC to terminate franchise owners and covers areas including franchise team them upon a determination that Station Two is no longer management, franchise law, human resources management, finance, able to reliably produce electricity at an economically strategic planning and more. Offered through five-week terms, students competitive price. can complete the six-course program one class at a time in just over six BREC will continue operating Station Two through May months. The certificate is the first in a series of specialized online 2019 to allow Henderson to either make other operating certificate programs designed to support growth in key industries specific to Louisville. arrangements or to find alternative sources of power.

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BUSINESS BRIEFS NEWPORT ECONOMIC DEVELOPMENT PROJECTS WILL MSU photo MURRAY GENERATE $7M FOR NEWPORT SCHOOLS ■ Murray State University’s College of Business Small Business Development HE Newport Independent Center has launched a new program to Board of Education has voted guide college students on their path to Tin support of the city using becoming entrepreneurs. The Books to industrial revenue bonds to help Business program give students to access no-cost, confidential consulting services and finance the construction of The guidance on business-plan development, SkyWheel planned for the Newport

start-up steps, financing source locations, riverfront and the purchase of the Koch Development photo cash-flow management and more. Newport on the Levee entertainment complex by Cincinnati-based North PIKEVILLE . The projects ■ American Properties The City of Pikeville has received a $6 million Abandoned Mine are expected to generate $6.75 million Lands Pilot Grant to help Enerblu construct a 1 million s.f. battery manufacturing facility at the Kentucky Enterprise Industrial Park in for the Newport Independent Schools The 230-foot tall Newport Pikeville. When complete, the plant will produce lithium titanate over the next 30 years. batteries, battery packs and modules, battery systems, hybrid generator- Under Kentucky law, industrial SkyWheel is expected to open storage units, micro-grid systems, and electric bus and truck revenue bonds can be issued by a local next year and will help assembly. Not including construction activities, the project is expected generate millions of dollars for government to help finance major Newport Independent Schools. to create over 900 jobs within a three-year period. construction projects. Typically, the project is exempt from paying local property taxes during the RICHMOND ■ Active-duty service members duration of the bond issue. But through the three agreements on federal orders for at least reached by the Newport Board of Education, the City of Newport 180 days are now eligible for and the developers, the schools will be paid $225,000 a year for 30 Eastern Kentucky years – the length of the bond issues – for a total of $6.75 million University’s Military Reduced through what are known as Payment In Lieu of Taxes (PILOT). Tuition, which is $250 per credit “It’s great that the city and school board were able to hour for undergraduate courses partner and come to an agreement that is beneficial for and $325 per credit hour for graduate courses. (Regular everyone,” said Newport School Board member Matt Scott. tuition for online programs “We’ve experienced declining enrollment due to other ranges from $409 to $460 per credit hour for undergraduate programs projects in the city, which decreases our state funding. The and $510 to $675 for graduate programs.) In addition, students will revenue that will be generated from these projects will help remain eligible to qualify for federal financial aid and have the us to continue funding programs for our students without opportunity use their GI Bill benefits to cover any remaining costs. EKU risking the financial wellness of our school district.” Online offers more than 40 degree and certificate options that can be The 230-foot tall Newport SkyWheel is being developed by completed from home or while stationed abroad. Koch Development of St. Louis and will be mounted on a WILLIAMSBURG pier extending toward the Ohio River between the Newport ■ The University of the Cumberlands has announced that it plans to Aquarium and Mitchell’s Fish Market restaurant on the reduce tuition by 57 percent, beginning in the 2019-2020 academic plaza at Newport on the Levee. Work could begin on the year. The reduction will lower the annual tuition from $23,000 to project later this year, with a scheduled opening in 2019. $9,875. Scholarships for academics, athletics and extracurricular awards will continue to be offered on top of the tuition cut. The tuition reduction is a component of the university’s mission to serve students STATE throughout the Appalachian region. Currently, 82 percent of 3 KY HOSPITALS AMONG NATION’S TOP Cumberlands students come from Appalachia. 100 FOR EARNING PATIENT LOYALTY WOODFORD COUNTY ■ Woodford County has formed a tax agreement with Airbnb that APTIST Health Lexington, Norton Hospital in authorizes the company to collect the county’s transient room tax on behalf Louisville and St. Elizabeth Healthcare in Edgewood, of local hosts and remit the revenue directly to the county. In 2017, Airbnb BKy., have been recognized with the 2017/2018 announced an agreement with the Kentucky Department of Revenue to Consumer Loyalty Award from patient-experience firm collect state sales taxes on all bookings throughout the state. Airbnb also has National Research Corporation Health. agreements with Lexington and Louisville Metro to collect their respective occupancy taxes. The Woodford home-sharing market has grown The award recognizes hospitals across the country that quickly: Nearly 1,000 Airbnb guests have booked a stay there in the past garner extraordinary loyalty from their patients. Winners year, representing a 100 percent year-over-year growth. were selected based on results from NRC Health’s Market

Wikidata photo Insights survey, the largest database of healthcare consumer STATE responses in the country. NRC Health surveys over 310,000 ■ Kentucky is investing some $700 million households in the contiguous United States, measuring their over the next six years to replace or rehabilitate more than 1,000 bridges across engagement with healthcare brands in their communities. the state. The list of structures includes Baptist Health Lexington ranked highest of the three state, county and municipal bridges that Kentucky hospitals to make the Top 100 list. Norton Hospital have fallen into disrepair and are rated in ranked 72, and St. Elizabeth Healthcare ranked 90. poor condition, including more than 60 of Organizations that win the Consumer Loyalty Award score which are currently closed to traffic. A team exceedingly well on seven different measures of patient loyalty: of engineers and professionals has been image and branding, engagement, ability to meet needs, assembled to evaluate and prioritize improvements. The BridgingKentucky.com website provides an overview of the program accessibility, motivation of preference, service experience and and the list of bridges that will be addressed in the first two years. whether a consumer would recommend the facility.

12 OCTOBER 2018 LANEREPORT.COM • THE LANE REPORT STATE BUSINESS BRIEFS KY SCHOLARSHIP PROGRAM EXPANDS TO SUPPORT WORKFORCE DEVELOPMENT STATE ■ The Kentucky Community and Technical College System is HE Work Ready Kentucky offering a new scholarship to help students complete their associate degrees Scholarship program, in two years or less. The 15 to Finish scholarship will pay $500 to students Twhich was formed in 2016 to who successfully complete 15 credit hours in a semester and enroll for an help train more workers for high- additional 15 hours the next semester. demand fields, has been expanded ■ The plans to purchase 11 to 13 help equip even more Kentuckians U.S. Department of Agriculture million gallons of milk from U.S. dairy farmers for $50 million to for jobs in those areas. distribute to food banks across the nation. Kentucky Agriculture Prior to the expansion, WRKS Commissioner Ryan Quarles called the purchase “a much-needed shot in provided tuition assistance for up the arm for the dairy industry” and said that in addition to providing milk to to only 32 credit hours and was aimed at providing career families in need, the arrangement will also “provide a cushion for dairy farm certifications. The program now includes students enrolled families as we work together to address major structural changes in the dairy in certificate, diploma and associate of applied science degree industry and chart a course going forward.” programs as well as high school students who are enrolled in ■ Customers of Columbia Gas of Kentucky will see their costs for dual-credit career and technical education courses in one of natural gas drop in the next several months. The company’s new gas- the five high-demand sectors: advanced manufacturing, supply cost, which went into effect Aug. 31, reflects a decrease of 23.5 business and information technology, construction trades, percent. The new gas supply cost will remain in effect until the next health care, and transportation and logistics. scheduled gas cost adjustment in December 2018. Kentucky’s Dual Credit Scholarship Program covers the ■ cost of two dual-credit courses for high school students, in The Kentucky Public Service Commission has rejected a proposal by the Kentucky Utilities Co. and Louisville Gas & Electric Co. to which they earn both high school and college credit with one deploy advanced “smart” meters and associated technology throughout course. Now students will have the opportunity to earn up to their systems, stating that there was not sufficient evidence to support 30 credit hours of dual credit with tuition and fees covered by the cost of the new meters. Because the meters are read remotely, the state scholarship programs. utilities contended that the meters would reduce the cost of meter The scholarship can also be utilized by adults without a reading. The utilities also stated that the meters would improve system high school diploma who wish to pursue their career reliability and reduce losses from system malfunctions and theft of certification or associate of applied science degree in tandem service. The PSC did say KU and LG&E could expand existing pilot programs that offer smart meters to customers on a voluntary basis. with obtaining a GED.

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THE LANE REPORT • LANEREPORT.COM OCTOBER 2018 13 INTERSTATE LANE Business news from Indiana, Ohio, Tennessee and West Virginia

BUSINESS BRIEFS INDIANA 6 INDIANA SPORTS ORGANIZATIONS TEAM INDIANA UP TO FORM SPORTS-TECH ACCELERATOR ■ Berry Global Group Inc., an Evansville company that produces a wide variety of films and packaging for the consumer and industrial IX of Indiana’s markets, has competed its acquisition of Laddawn Inc., a manufacturer largest sports of blown polyethylene bags and films. The acquisition of Laddawn adds Sorganizations have 380 employees at five U.S. manufacturing centers to Berry’s 24,000 teamed up to launch a employees across 130 locations. For the fiscal year ending July 31, 2018, Laddawn generated more than $145 million in net sales for the year. new sports technology initiative in Indianapolis. ■ U.S. Steel Corp. is investing a minimum of $750 million in its Gary The organizations Works facility over five years to install new production equipment and participating in the machinery and modernize the plant’s technology. Located on the south formation of the Techstars shore of Lake Michigan, Gary Works has been in operation in northwest SportsTech Accelerator Indiana since 1908 and now ranks as the Pittsburgh-based company’s include the largest manufacturing plant and the largest integrated steel mill in North Next Level America. The Gary plant employs more than 3,800 full-time workers. Fund, a charitable trust established by the Indiana The Indianapolis Colts are one of six OHIO Finance Authority; the central Indiana sports organizations that ■ RhinoSystems Inc. is expanding its Indiana Sports Corp, a are backing the new Techstars SportsTech operations in Brooklyn Heights, Ohio, nonprofit that focuses on Accelerator. where it produces Navage Nasal Care, attracting premier sporting a device that provides relieve from events to Indiana; the allergies and sinus congestion. The National Collegiate Athletics company is leasing a 65,000-s.f. Association (NCAA); the Pacers Sports & Entertainment, a building on the former American sports and entertainment company that includes the Indiana Greetings campus and plans to hire an Pacers, Indiana Fever, Fort Wayne Mad Ants, Pacers additional 117 employees to support Gaming, and the Pacers Foundation Inc.; Hulman the expansion. Motorsports, the parent company of the Indianapolis Motor ; and the . ■ Speedway Indianapolis Colts ProLogis is developing a $33 million e-commerce center in Monroe, Through the Techstars SportsTech Accelerator, 10 startups Ohio, for home retailer Bed, Bath & Beyond that will create the equivalent of 900 full-time positions. Construction on the 827,000-s.f. will be selected each of the next three years to relocate to facility is expected to be complete by early 2019. Indianapolis for three months for mentorship with experienced entrepreneurs and industry experts. The Techstars Indy team will ■ Ohio National Financial Services has announced plans to exit the recruit, select and accelerate the most talented companies in the annuity and retirement business as part of its strategy to focus following potential areas: fan participation, player/driver safety, exclusively on life and disability income insurance. The announcement ticketing, merchandising, athlete performance management cited a “continuously changing regulatory landscape, the sustained low and athlete wellness, among others. The accelerator, which will interest rate environment, and the increasing cost of doing business” as the primary factors involved in the decision. The move will eliminate launch at the May 2019 Indianapolis 500 race, will provide approximately 300 positions at the Cincinnati-based company. startup founders with the chance to pitch to angel investors and venture capitalists at the culmination of the 13 weeks. TENNESSEE Techstars is a worldwide network that focuses on helping ■ MTD, a leading manufacturer of outdoor power equipment, is entrepreneurs succeed. The company’s accelerator portfolio investing $10 million to expand its operations in Martin, Tenn., and is currently includes more than 1,400 companies with a market adding 200 new jobs to support the increased production. MTD, which cap of $15 billion. sells products under the Cub Cadet and Troy-Bilt brands, has had a presence in the west Tennessee community for more than 30 years and currently employs more than 900 people in the area. The company is OHIO the largest private employer in Weakley County. KROGER ANNOUNCES PLAN TO PHASE ■ Oshkosh Corp. has announced OUT SINGLE-USE PLASTIC BAGS BY 2025 plans to establish a manufacturing facility in Jefferson City, Tenn., creating INCINNATI-based Kroger, more than 300 new jobs over the next one of the nation’s leading three years. The Wisconsin-based supermarket chains, has company is a leading designer and C manufacturer of specialty vehicles such announced that the company will as scissor lifts, military tactical vehicles, phase out single-use plastic bags and fire and rescue apparatus, snow blowers transition to reusable bags by 2025. and plow trucks, front loaders and The decision is part of the company’s more. In Jefferson City, Oshkosh plans Zero Hunger /Zero Waste initiative to renovate and occupy a 500,000-s.f. that was launched in 2017. facility that was previously a John Kroger’s Seattle-based QFC will Deere plant. The space will house welding and fabrication operations to support multiple segments. The company expects the plant to be be the company’s first retail division to phase out the single- operational in 2019. use plastic bags. The company expects QFC’s transition to be completed in 2019. ■ Faurecia Interior Systems plans to open a new facility in Spring According to information released by Kroger, estimates Hill, Tenn., that will provide door panel assemblies for the automotive suggest that 100 billion single-use plastic bags are thrown market. The company is investing more than $30 million in the project, away in the U.S. every year and that fewer than 5 percent of which will create 143 new jobs. plastic bags are recycled annually in America.

14 OCTOBER 2018 LANEREPORT.COM • THE LANE REPORT KENTUCKY INTELLIGENCER® A sampling of business and economic data

SMALL-BUSINESS OPTIMISM CONTINUES TO RISE Small-business owners are more optimistic now than at any point in the last 15 years, according to the latest Wells Fargo/Gallup Small Business Index. The biggest improvements cited by the 600-plus small-business owners across the U.S. who were surveyed were their current financial situation; cash flow over the last year; their cash-flow expectations for the next 12 months; and credit availability. In terms of challenges, the most often cited were government policies and regulations, and hiring concerns.

Index 150 114 106 107 118 100 108 71 106 83 64 95 47 80 66 69 48 23 25 54 12 9 24 10 0

-4 -18 -4 -11 -21 -28 -60 ‘10‘09‘08‘07‘06‘05‘04‘03 ‘11 ‘18‘17‘16‘15‘14‘13‘12

Source: Wells Fargo/Gallup

CUSTOMER FEEDBACK WHAT DO YOU LOOK FOR WHEN Customer experience has always been a major factor in consumer HIRING NEW EMPLOYEES decisions between different brands or service providers. Now, American school systems have long emphasized the with social media and aggregators such as Yelp, customer importance of grades in determining success, but a recent experiences – good or bad – can reverberate far beyond the study of more than 200 C-suite staff reveals that only 12 customers themselves and can turn tens or even hundreds of percent view grades as an important aspect when hiring a other customers away. A recent study looked at how people share new employee. So, what do they find most important when a very good or very bad customer experience. it comes to bringing a new staff member on board?

More Likely to Vent Than to Recommend % of U.S. consumers who did the following after a very good/bad customer experience lately

44.0% Told friends about it 46.7%

20.2% Sent feedback directly to the company 25.7%

14.8% Wrote something on Facebook 17.1%

10.7% Commented on/rated the company on review website 11.1%

6.5% Wrote somthing on Twitter 8.0%

34.0% Didn’t tell anyone about the experience 27.0%

0 10 20 30 40 50

After a very good experience After a very bad experience

Source: Temkin Group/Statista Source: Kingsley Leadership Academy

THE LANE REPORT • LANEREPORT.COM OCTOBER 2018 15 CORPORATE MOVES New leadership for Kentucky businesses DEPARTURES ■ Asbury University ARCHITECTURE Dennis Tindle has been named vice president Sandra C. Gray has ■ Lynsey Jordan has joined and mortgage loan specialist for CVNB in announced that she will Lexington architecture firm Pulaski and surrounding counties. transition out of the Alt32 Architecture/Design as president’s position at the marketing director and office CONSTRUCTION end of the academic year. ■ administrator. Mark Hill has been Sandra ■ has promoted to vice president Scott Terrell Gray BANKING/FINANCE and Lexington region leader announced that the Lynsey ■ has joined in charge of construction coming 2018-2019 season will be his last as Eric White Jordan Nicholasville-based Spectrum operations and performance music director and conductor of the Financial Alliance as director for Messer Construction Co.’s Lexington Philharmonic Orchestra. of acquisitions and enterprise Lexington office. Mark ■ development. Hill Rufus Friday, president and publisher of FOOD/SPIRITS/ the Lexington Herald-Leader, has resigned ■ Laura Martin has been HOSPITALITY from the position. With that change, which promoted to assistant vice ■ Sarah Robbins has been named chief was effective in September, Editor Peter president – financial center operating officer for Louisville-based 21c Baniak has assumed an expanded role as manager, deposit production Laura Museum Hotels. editor and general manager. and treasury management for Martin Bank of the Bluegrass in EDUCATION Lexington. ■ Brian Buford has been named director of INSURANCE employee development and success at the ■ Heather Rosato has been named chief ■ Nathan T. Wright Jr. has University of Louisville, effective Dec. 3. marketing officer for DPL Financial Partners, joined Community Trust and a Louisville-based insurance network for Investment Co. as a vice ■ Brian Wilcox has been named associate vice registered investment advisors. president, compliance officer president of capital construction and facilities in the company’s Lexington services at Eastern Kentucky University. LEGAL office. Nathan ■ James “Jamie” Wright ■ Nancy Lang has been McKiernan III has joined the ■ Selina Shepherd has named associate director of litigation team of McBrayer, joined Community Trust and the Northern Kentucky McGinnis, Leslie & Kirkland’s Investment Co.’s wealth and University Center for Louisville office. trust management team in Economic Education. Lexington as assistant vice MANUFACTURING president, relationship officer ■ Larry Ferguson has been ■ Sylvia Buxton has been Jamie named president of Ashland for private wealth services. Nancy named president and chief McKiernan Selina Community and Technical executive officer of Perfetti ■ Lang Tom Bannon has joined Shepherd College. Van Melle North America, a Louisville-based Eclipse Bank confectionary company based as senior vice president and ■ Lynn in Erlanger. commercial banking team Godsey has leader. been named ■ Antonio Boadas has been campus appointed chief ■ Guy A. Huguelet III has director for communications officer for been named vice president of Bluegrass Louisville-based GE Antonio sales for Lexington-based Community Appliances. Boadas Dupree Financial Group. Guy and Technical Lynn Tiffany Huguelet College’s ■ Ashland-based Braidy Industries and its Godsey Drury ■ Jim Heider Georgetown- subsidiary, Veloxint, have announced the has joined Scott County campus. Tiffany Drury has been following appointments: Julio Ramirez – chief Paducah named campus director for BCTC’s financial officer, Braidy Industries; Kevin Bank’s Lawrenceburg campus. McNeely – chief operations officer, Veloxint; Louisville Phoebe Kwan – chief commercial officer, office as vice GOVERNMENT Veloxint; Judson “Jud” Marte – vice president, ■ Brad Montell has been named director of president of product development, Veloxint; senior government relations for the Kentucky and John Gaspervich, executive vice commercial Jim Felisha Department of Education. president of manufacturing, Veloxint. relationship Heider Dowdy manager. Felisha Dowdy has joined the ■ The Kentucky Cabinet for Health and Family MARKETING Louisville office as assistant vice president, Services has announced the following ■ Melanie Berry and Catie Wilson have been senior community banking and treasury appointments within the Department for named marketing managers for Write Now management relationship manager. Medicaid Services: Commissioner – Carol H. Marketing’s Louisville market. Steckel; Senior Deputy Commissioner – Jill ■ Cumberland Valley National Bank has Hunter; and Director of Provider Relations – TOURISM announced the following appointments in David Gray. Kathleen Hines has been ■ Tim Pinion has been named chief of the their Central appointed executive advisor within the Office of science and resource management division at Kentucky Health Data and Analytics to serve as chief Mammoth Cave National Park. market: privacy officer for the Cabinet. Within the Jeremy Department for Public Health, Kelly Alexander OTHER Rigney has has been appointed as executive advisor to serve ■ Geralyn Isler has been named president of joined the as a liaison with stakeholders and the public Business Benefits Inc., a Fort Mitchell bank’s health community. Devon McFadden has been company that counsels employers in the Madison appointed director of the division of prevention development of employee benefit packages. County Jeremy Dennis and quality improvement. In the Office of market as vice Rigney Tindle Autism, Jonathan “Tal” Curry has been president and commercial lender. appointed executive director.

16 OCTOBER 2018 LANEREPORT.COM • THE LANE REPORT ON THE BOARDS Kentuckians named to organizational leadership roles

ASSOCIATION OF ARTS Louisville, is a business investor. Brown, of LOUISVILLE SPORTS COMMISSION ADMINISTRATION Louisville, is a health-care executive and ■ The Louisville Sports Commission has EDUCATORS pastor. Vinson, of Murray, is retired. announced its new officers for the coming year: ■ Yuha Jung has been elected Chair – John Willmoth, Poplar Ventures; Vice to the board of directors of the KENTUCKY HORSE Chair – Lannette VanderToll, KentuckyOne Association of Arts PARK FOUNDATION Health; Secretary – Daniel Cameron, Frost Administration Educators. ■ Andy Jacobs has been Brown Todd; Treasurer – Phil Poindexter, Stock elected vice chair of the Jung is an assistant professor of Yuha Yards Bank & Trust; Immediate Past Chair – arts administration at the Kentucky Horse Park , US Bank. New board Jung David Wombwell University of Kentucky. Foundation board of members include: Jai Bokey, V-Soft Consulting directors. Jacobs is an Group Inc.; Allison Brown, Wyatt Tarrant & BLACKACRE CONSERVANCY attorney with Stites & Combs LLC; , GE Appliances; Andy Kim Cleary Tom ■ and have been Harbison in Lexington. , Kentucky Lottery; Marisa E. Main Scott Keen Jacobs Delacenserie Garett elected to the board of directors for Blackacre Jackson, Kindred Healthcare; and Michael Conservancy, an organization dedicated to the KENTUCKY OIL AND Miller, Humana. Elected to serve a one-year term preservation of the history nature preserve GAS ASSOCIATION on the executive committee were: Lee Ann and historic homestead in Jefferson County. ■ The Kentucky Oil and Gas Association has Barney, Trilogy Health Services; Cleo Battle, Main is an attorney in Dinsmore & Shohl’s announced its new executive committee for 2018- Louisville Convention & Visitors Bureau; Daniel litigation department. Keen is employed by 2020: President – Mark Hughes, Hughes Land Cameron, Frost Brown Todd; Travis Doster, Limestone Bank, where he works in the LLC; President-Elect – Maverick Bentley, EQT Texas Roadhouse; Brett Hale, Beam Suntory; compliance department. Corp.; Immediate Past President – Maurice Steve Hester, Norton Healthcare; Phil Royster, EQT Corp.; Treasurer – John Poindexter, Stock Yards Bank & Trust; Michael CENTERSTONE Henderson, Stoll Keenon Ogden. The Class of Poynter, Kentucky Venues; Marty Storch, ■ Peter Garrison has been named secretary for 2019 board of directors includes: Wes Cate, Eco- Louisville Metro; Lannette VanderToll, the board of directors of Centerstone, a national Energy; Stacee Dover, CountryMark Refining and KentuckyOne Health; John Willmoth, Poplar not-for-profit health-care organization that Logistics; Nan Hamilton, Stand Energy Ventures; and David Wombwell, US Bank. supports individuals with mental health and Corp.; Doug Hyden, Clean Gas substance abuse issues. Garrison, of Louisville, is Processing; Bryan Reynolds, Sullivan, METRO UNITED WAY the client managing director at Equian. Mountjoy, Stainback & Miller; Maurice Royster, ■ Louis R. Straub II and EQT Corp.; Mark Sanders, EnerBlu; Rudy Rudy Spencer have been FAYETTE COUNTY Vogt, Cumberland Valley Resources; and Jed named campaign chair and BAR ASSOCIATION Weinberg, Core Appalachia Operating. The co-chair, respectively, of the ■ Marshall Hixson has been Class of 2020 board of directors includes: Jason Metro (Louisville) United Way elected president of the Fayette Bentley, MMLK Government Solutions; Mike 2018 community campaign. County Bar Association. Gibbons, CountryMark Energy Louis Hixson is counsel with Stites & Resources; Karen Greenwell, Wyatt, Tarrant & PREVENT CHILD Straub Harbison, working in the torts Combs; Jerry Howard, Boss Cementing; Mark ABUSE KENTUCKY and insurance practice service Hughes, Hughes Land; Mark Pierce, Nytis ■ Prevent Child Abuse Kentucky has group of the firm’s Lexington Marshall Exploration Co.; Bobby Short, United announced the following officers for the Hixson office. American Energy; Mike Wallen, WMD; and coming year: President – Dr. Jaime Pittenger, J. Kevin West, Steptoe & Johnson. The Class of UK Children’s Hospital; Vice President – FOUNDATION FOR 2021 board of directors includes: Bill Barr, Carrie D. Wiese, City of Somerset; Secretary/ A HEALTHY KENTUCKY BlackRidge Resource Partners; Maverick Treasurer – Jordan Parker, Traditional Bank. ■ Lawrence Prybil has been named to the Bentley, EQT Production Co.; Will Graham, New board members include: Dawn Harlow, board of directors of the Foundation for a Core Appalachia Operating; Jessica Kentucky League of Cities; Bryan McFarland, Healthy Kentucky. Prybil is the former Greathouse, Core Appalachia Operating; John Kentucky Public Radio; Renee Sartin, associate dean of the University of Kentucky Henderson, Stoll Keenon Ogden; Zachary Campbellsville University; Elizabeth Starr, College of Public Health and currently serves Hughes, Hughes Land; Virginia (GiGi) WellCare Health Plans of Kentucky; and Ashli as a community professor in the UK College of Lazenby, Bretagne; George Mason, George Watts, Kentucky Chamber of Commerce. Public Health. Mason Law Firm; and Matt Sheppard, Chesapeake Energy. SOUTHERN ASSOCIATION OF STATE KENTUCKY EQUINE DEPARTMENTS OF AGRICULTURE EDUCATION PROJECT KENTUCKY STATE ■ The Southern Association of ■ The Kentucky Equine Education Project CORRECTIONS COMMISSION State Departments of (KEEP) has announced the following ■ Leon Heaton, Susan Grey Smith and Agriculture has elected appointments to its board of directors: Chair – Jason Dean Crockett have been appointed Kentucky Commissioner of Doug Cauthen, Doug Cauthen Thoroughbred as members of the Kentucky State Corrections Agriculture Ryan Quarles to Management LLC; Vice Chair – Ken Jackson, Commission. Heaton, of Frenchburg, is the serve as vice president for Kentuckiana Farms and Lexington Selected Sales director of outpatient services for Addiction 2018-2019. Co.; and Legislative Committee Chair – Corey Recovery Care. Smith, of Lexington, is a Johnsen. Newly appointed board members licensed marriage and family therapist. STATE BOARD OF Ryan include: Kiki Courtelis, Town & Country Farms; Crockett, of West Paducah, works for EMBALMERS AND Quarles David Ingordo, Ingordo Bloodstock Services; Stratemeyer Media. FUNERAL DIRECTORS Dan Real, Caesar’s Entertainment; and Adrian ■ James O. “Hap” Strunk, of Stearns, has Wallace, Coolmore America at Ashford Stud. KENTUCKIANS FOR been appointed as a member of the State BETTER TRANSPORTATION Board of Embalmers and Funeral Directors. KENTUCKY HIGHER EDUCATION ■ Kentuckians for Better Transportation has ASSISTANCE AUTHORITY/ announced its new leadership for 2018-2019: STOCK YARDS BANCORP KENTUCKY HIGHER EDUCATION Chair – Phil Annis, former president of ■ John L. Schutte has joined the board of STUDENT LOAN CORP. Mountain Enterprises; First Vice President – directors of Louisville-based Stock Yards ■ Gerald J. Plappert Jr., Rene Brown, and Rod England, Scotty’s Contracting and Stone; Bancorp Inc. and Stock Yards Bank & Trust Charles B. Vinson have been appointed as Second Vice President – Mark Day, Blue Grass Co. Schutte is chief executive officer of members of the Kentucky Higher Education Airport; Treasurer – Grant Gabbard, The Louisville-based GeriMed Inc., a nationwide Assistance Authority board of directors and Allen Co.; Board Member at Large – Randy group-purchasing organization specializing in the Kentucky Higher Education Student Loan Palmer, Palmer Engineering; and Immediate long-term care pharmacy services. Corp. board of directors. Plappert, of Past Chair – Crissy Fiscus, ARGI.

THE LANE REPORT • LANEREPORT.COM OCTOBER 2018 17 LANE ONE-ON-ONE Kentucky’s leaders express their opinions

William “Bill” Butler initially was to be funded in 2010 by William “Bill” Butler is chairman and CEO of “shovel-ready money” from the federal Corporex Companies LLC, which began in government. Then the project got 1965 as the one-man W.P. Butler Construction bigger, including Route 9, and the Co. After the acquisition, development, recession got longer. construction and financing of major real estate Now, almost 10 years later, the road is properties for 50 years, Corporex has more than completed, but the market has changed. $1 billion in assets and is a diversified, vertically- People do not want townhomes; they integrated firm comprising Corporex Development and Construction Management, want smaller flats. Condominiums are not Commonwealth Hotels, Five Seasons Sports in vogue; apartments are the current Clubs, Corporex Realty and Investment, and need. Office building opportunities are Corporex Capital. Butler was chairman of Eagle limited at best. Traditional retail centers Hospitality Properties Trust from its 2004 and stores are not expanding. So what is inception through its 2007 sale. He founded to be? We are focused on a variety of The Butler Foundation and Life Learning entertainment opportunities connected Center serving Greater Cincinnati and is founding chairman of the Horizon with retail services as the fuel for the Tax Community Fund for Northern Kentucky. He is Increment Financing district that is on the boards of United Way of Greater necessary to activate the infrastructure Cincinnati, Lindner Center of HOPE, Dan and parking podium. Beard Council of the Boy Scouts of America, However, Corporex is again intensely and The Butler Foundation. Butler is a graduate focused on this development, wanting of the University of Cincinnati. to make it happen for this Northern Kentucky community – or bust. We REMAKING A COMPANY, REGION OR STATE hope to begin work in the spring of 2019, or even sooner should some TAKES UNITY, CLEAR GOALS, THEN THE PLAN opportunity come our way. As we speak, Northern Kentucky developer Bill Butler is reinventing Corporex for we are redoing the master plan to align with the current marketplace. the next 50 years and urging community to push for higher-paying jobs I view the Ovation development as one of the most important and defining BY MARK GREEN undertakings that will affect the Northern Kentucky community and its economy for the next 100 years or more. It must be designed just right to Mark Green: Butler Construction Co. BB: Each development project is unique. present a skyline in which the whole and Covington-based Corporex have Accordingly, how one goes about it may community, including Cincinnati, can been successful in commercial real be different. There is a general take pride for generations. estate development for 53 years. Is consistency of steps that must be taken. there anything unique you have done to We develop an action agenda for each MG: How did the Great Recession achieve this longevity? project that sets forth the steps, hurdles restructure the real estate market? Bill Butler: Our success in business over and dates for accomplishment. BB: In 10 years, a lot has changed. the past 52 years encompasses major Development of buildings is like People want smaller residences. They economic corrections that amounted to manufacturing, but without a roof want more electronics, digital systems. nearly 19 years. We successfully navigated overhead and an assembly line for There will be less need for parking four most difficult, sometimes severe repetition; it is a building process. Being structures given that more people will periods because we adhered to strict and in the construction business was good use Uber and Lyft, rent cars for short sound principles in everything we training for development. We talk about periods, and live in the urban centers undertook. Our projects were of the the need to build on a strong foundation more. The demand for office buildings highest quality we could afford; the people and to go step by step through the is moving back to the urban centers, as we did business with, both in construction agenda. But unlike with manufacturing, younger people want to live in the and tenants in our buildings, were high- there is not a customer pulling the urban areas and work there, too. They quality firms; we did not overfinance; and product through the process; it is all do not want a long drive to work. So we never used lines of credit to finance about push from the top. The job of a corporations will be forced to return to our businesses or projects. Finally, we were developer is to light the fires constantly, urban areas to attract the more highly flexible to change. We remade ourselves every day. There are not a lot of people skilled workers they need. multiple times along the way in response put together that way. With each recession, a number of to the changes in trends and financial developers and builders drop out of the markets that followed each recession. MG: What is the current status of the market for various reasons. This recent Success is something one must seek out. Ovation multiuse project in Newport recession was no exception. It’s survival of At Corporex, we are always seeking the and what will its scope be? the fittest – and Corporex has never been opportunity to fill an unmet need. BB: We had to be patient. First, there more fit to move forward than it is today. was the eight-year Great Recession. MG: Development projects are so Then there was the roadway system that MG: Are there any real estate complex. Is there a typical sequence of the Kentucky Department of development best practices Corporex is steps for undertaking a project? What Transportation was putting through the trying to bring to its home community comes first: financing, land, specific property. We redesigned the master from Denver, where it has been very idea, plans? plan to allow for this road, which active for years?

18 OCTOBER 2018 LANEREPORT.COM • THE LANE REPORT BB: Not really. We wish we could bring this will be a huge benefit and that MG: Some people advocate focusing the level of activity and the economics Amazon will be a strong community more on occupational taxes from job of the Denver market home. Rents partner as well. growth for local revenue streams, rather there are 50-70 percent higher than It’s logistics, but it’s global logistics, than property tax. here, which is better for developers and and it’s huge, and it’s going to be BB: Well, that and consumption taxes, building owners, and the population automated to a great degree. It is better sales taxes, where you create business continues to grow at a pace three times viewed as a high-tech kind of installation and create additional retail revenues. In what we experience here. Denver has than it is a warehouse distribution my view, those are the most fair taxes. great business energy. If anything, what center. It’s going to create lots of jobs. I bring home is the determination that We did a study on what happened at MG: You entered the banking sector a we Kentuckians, and Cincinnatians, UPS in Louisville. Some people would few years ago. Why? Is there adequate should take a stand for change. claim there are 160 different businesses financing available to business today There just is not a good reason why in the Louisville area that are there and are there changes you suggest? our geographical areas should not have because of UPS. The same kind of thing BB: This was not a decision to enter a higher growth rate – and we should must happen here. It’s going to take banking. However, the Corporex of the demand more of both our politicians time to unfold. future will definitely become a diversified and ourselves to reject the complacency financial or capital investing entity, of the past and get on with building a MG: Many business community potentially with interests or investments in dynamic environment, demand action. members as well as public officials say that sector. I acquired the ownership of a We can do better. Kentucky needs a Kentucky needs further tax reform. bank as a solution to a problem that arose vision of its future. What do you advocate to improve from the recession. I was a 15 percent Kentucky’s tax structure? investor in American Founders Bank, and MG: How do you currently view the BB: Nothing. I feel that what has been it needed capitalization. Northern Kentucky market? What will done is already helpful and that Kentucky I was able to remove OREO assets be the impact of Amazon Prime’s is competitive. What is needed now is a (‘other real estate owned’ property not decision to locate its first hub operation unified effort of the entire state, the related to a bank’s operation, typically at CVG in Northern Kentucky? business community and government collateral acquired in defaults) that BB: Northern Kentucky is currently acting in concert to paint a picture of what were keeping it from moving forward experiencing much demand for logistics Kentucky could be in 10 or 20 years, and following the recession. But the bank is infrastructure. Our market is a prime go for it. We need new and lofty goals for solid now, and the headquarters have location for distribution centers. However, our state that are reduced to a form that moved to Louisville, where there is distribution centers do not employ many business, the population, and the elected more business opportunity. It is today people, and those they employ occupy can understand and support daily in their more a business-focused bank than a relatively low-paying positions; they do not work and lives. We as a state still struggle real-estate-focused entity. generate much tax revenue; and they with perceptions of the past. Why not There are, indeed, adequate chew up lots of land. remake ourselves as Kentuckians, as financial sources today to service the The Amazon Prime installation, in corporations do in response to changing real estate industry. Competition among my view, does not fit that mold. It is a environments? Develop a strategic vision, lenders is strong, some would say tough. higher-level, very sophisticated logistics a blueprint to execute it, and do it. I do not see that changing soon, as the center that will generate lots of jobs Growth is what we need, faster and world is awash in money in circulation. both on-site and for employers and smart. Target high-paying job growth, vendors, consultants and others who position ourselves in that respect, and MG: What economic metrics do you will service the operations. Basing Prime tax revenues will expand. There then follow closely? Air here is also a big plus for the airport, will be more resources to support BB: Money supply is something I have and what is good for the airport is good improvements in education and quality- studied since 1977. As money moves, so for the community at large. I of-life amenities. Business and elected does the economy, and interest rates are understand this to be a global logistics officials in Northern Kentucky are in direct relation. However, money supply focus, thus generating international engaged together like never before to is less weighty since the United States has interaction, which is another plus. The address these very quests for our become a part of a greater world economy Amazon investment will take time to region’s future. It is an exciting time as rather than self-determinant. So there are unfold and impact, but I am optimistic we speak. lots of factors today that one must look at

THE LANE REPORT • LANEREPORT.COM OCTOBER 2018 19 LANE ONE-ON-ONE

to develop a forecast in which one can be last year with the mission “to unite there is a cohesiveness developing somewhat confident. That is the change resources to raise the quality of life for between elected officials, businesses of the past 10-plus years. I do not believe all Northern Kentuckians.” What is your and the executives of the state as well, we are nearing a recession based on the strategy for approaching this in an such as I have not witnessed in my underlying fundamentals, and I reject the impactful manner? previous 50 years of involvement. idea that a correction must happen every BB: This community work is the source of The possibility of our being truly so many years. However, we could create a my energy these days. Throughout our “OneNKY” in all respects is no longer just recession as a result of the infighting in corporate career, we held to a standard in our dreams. It is moving to reality. Washington, the solid growth that we would not wait to give back, but environment notwithstanding. rather we would give along the way both MG: How is Northern Kentucky doing financially and of ourselves, with personal overall now? What does it need to do MG: Does Corporex have a succession time devoted to the community. Now I am more of economically, business-wise or plan? What is it? more free to give both time and money. in areas that attach to that? BB: The challenge of getting Corporex As we monetize assets, we put some of that BB: In Northern Kentucky we don’t to continue for another 50 years is my money in the bank, but we also put a separate the economic and community. stated purpose and mission. For a chunk into a charitable vehicle. In If the community is vibrant and on the commercial developer, succession is addition to the four hotels we sold, we move and has a direction, knows where always difficult. Private developers are gave a fifth to a charitable trust; a it’s going as a community, the economic usually dependent on the unique significant amount was set aside for a things will follow. makeup of the founder. This is why we variety of community purposes. I am The big issue in Northern Kentucky is are reinventing ourselves once again. building an organization devoted solely to unity. We have too many governments, too The internal plan is called TRE, which advancing the community agendas, with many municipalities. But there is, for really stands for The Reconstituted Entity. We staff devoted solely to causing change and the first time in my 50-year career here, adopted the term early in the recession accelerating various plans that are already what appears to be a very strong period with an eye to succession. We are in play in the community. commitment by most of the top leadership, intensely focused on perfecting our We are encouraging projects that both governmental and business, and by portfolio of $1.4 billion in assets by fully unite the various elements of our the not-for-profit organizations as well that leasing property and exploring community’s leadership. Projects are are impactful on the community. There alternative strategies – with an eye to the way to bring people together. For appears to be a common consensus that we monetizing at least 50 percent before example, we are working on a new want to do something about the 2020. We just sold four hotels, building to be called “OneNKY” where fragmentation so that we can get to the representing an approximate $100 five agencies involved in growth will point of acting as one. million transaction. We have 16 more relocate and share facilities. It will be a just like those and several bigger hotel striking building in architecture, and it MG: We hear, as you say, that there is properties in Denver, plus office will symbolize progressiveness and paint more cohesion among all the buildings both here and in Denver. We a new picture, a perspective of a united municipalities and governmental sold an office building in Denver, and community on the move. We have entities in Northern Kentucky. Is there another will be bought by its tenant in formed a not-for-profit development something in particular that’s pulling February, for approximately $74 million entity to do high-quality infill housing the area together? for the two. in the urban sector. We are seeking a BB: Well, there’s a new organization called Once repositioned with all that cash, CEO to run that business, and we hope the Northern Kentucky Regional Alliance. we will be seeking opportunities in to stimulate the inner city by building It’s a collection of 15 or 16 initial members alternative fields. Those could well include houses, which frankly will sell at a loss, who are all CEOs of their respective financial services, manufacturing to buyers who will add value by their entities. They have come together in the investments, entertainment or simply entry into our community. past year and hired Karen Finan as the lending. In any event, Corporex will be Horizon Community Funds of CEO, a dynamic personality. And the more traditionally positioned, and that Northern Kentucky, our new public mission of this organization is to give rise will facilitate handing off the reins to charity, is off to a great start. We were able to change, to advance the community in individuals who are more oriented more to engage a roster of high-level trustees to every way. And they are meeting, as an toward finance than toward real estate lead this undertaking, many of whom organization, with the three (Boone, development. were not previously participating in such Campbell and Kenton) county judge- My resolve is that Corporex will be efforts. The fund is approaching $20 executives on a monthly basis. here 50 years from now and will million under management after only 14 continue the philosophy of contribution months. The charter of HCF is not MG: You’re one of the CEOs in the as a core element of its purpose. limited to serving the less hopeful Regional Alliance? population; it also will engage as a partner BB: Yes. MG: Who are Corporex’s peer entities with multiple organizations and with in this region? Is anybody else trying to government on projects that move our MG: Is there a single goal that you’re do projects along the scale you are? community forward. aiming for? BB: Nobody. There are no peers. I There is no end to the opportunities, BB: The alliance, being only a year old, would welcome other risk-takers. nor only one way engagement is is still building its platform and accomplished. What we all want for the identifying the priorities and the MG: You have shifted a lot of your time Northern Kentucky metro of the future methodologies for moving the and energy in recent years beyond your cannot be achieved unless all the community forward. The meetings with business toward philanthropy and leadership and all the people who can the three county judge-executives have community impact activities. You help are in lockstep and committed. been very fruitful and collaborative and launched Horizon Community Funds And I am happy – no, excited – to say give rise to much optimism and energy.

20 OCTOBER 2018 LANEREPORT.COM • THE LANE REPORT MG: What does the Alliance hope to We know that you have to begin at the with them, particularly when we get an accomplish? More economic preschool levels and that it would involve economic development opportunity or a development, more housing mentoring programs and scholarship prospect in the city. They’re the greatest construction, more infrastructure programs and internship programs and team we’ve ever seen out of that office. construction, all of the above? tutoring of people from one end to the BB: Working together, we intend to be other. Solutions to workforce development MG: How can the process for upgrading working on every aspect of the community. are not going to be short-term in any the Brent Spence Bridge and resolving When I speak of the community, I speak of community, in any part of the country, the traffic bottleneck there be pushed the three-county area that comprises because it’s a common problem forward? nearly 400,000 people. That’s not a small throughout the country. So we want to BB: I feel like the federal government place anymore. address it in a total way. owns that bridge. They built the There are currently about 20 interstate systems. They have the MG: How’s the education system doing in organizations trying to address different responsibility to build this bridge. meeting the needs of the private sector, aspects of it, and the initiative of the providing a good and appropriate Chamber of Commerce is to bring all 20 MG: Does the region have enough workforce? of them together. We think we can do that. available land? BB: One of the first areas the Regional BB: We have the land. We need to quit Alliance is addressing is, in fact, the MG: How would you characterize the covering it with warehouses. I started in workforce development methodology. region’s relationship with Frankfort and its that business, but we need white-collar The Northern Kentucky Chamber of engagement with the rest of Kentucky? jobs. We need high-pay jobs. If you want to Commerce just started an initiative BB: There has never been a better grow taxes, you don’t have to add called Growing Regional Outcomes working relationship or a more supportive infrastructure; you have to go for a higher- through Workforce, and the Regional executive branch of state government in paying job, where you just generate four Alliance members provided the initial respect to helping us. There’s never been times as much revenue from the same funding for GROW. We recognize that a closer working relationship. For eight activity level. ■ workforce development is a paramount years under the previous administration, need, and we are endeavoring to Northern Kentucky got nothing, and it develop a streamlined system was all lost time. This governor has Mark Green is executive editor beginning at preschool ages all the way boundless energy. He’s very personable, of The Lane Report. He can be reached at [email protected]. through to either skilled or collegiate and the people he has surrounded himself levels. with are strong. It’s a lot of fun to work

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After genomic testing to find the various gene mutations that gave rise to their specific cancer, Kentucky patients get recommendations for individually customized treatments from the Molecular Tumor Board at the University of Kentucky Markey Cancer Center. Dr. Rachel Miller, left, and Dr. Jill Kolesar are codirectors of the MTB.

“The ability to see just a little piece of the future for each patient will allow physicians to make more educated decisions about screenings and tailor care to the individual patient,” Flora said. In terms of future cancer care, some patients might have the opportunity to take steps to prevent it from developing in the first place rather than waiting for a tumor to occur and grow to a detectable level. “That is a goal, but we’re not anywhere near there yet,” said Dr. Jill Kolesar, a clinical pharmacologist at the University of Kentucky. Kolesar is co-director of the Precision Medicine Dr. Jill Kolesar, Co-director, Clinic at the UK Markey Precision Cancer Center, which has Medicine a network of 20 affiliated Clinic, hospitals in the state, and University a co-chair of the of Kentucky Genomics Improves Molecular Tumor Board. Markey Cancer She has been directly Center involved with genomic research for two decades as it has Kentucky Cancer Care evolved from pure research into the realm of patient care. “It’s only been within the last five years Informatics tools making treatment of nation’s that genomic sequencing has even moved into the clinical setting,” she said. worst concentration of malignancy personal Kolesar worked with two medical oncologists to establish precision medicine services at University of BY JOSH SHEPHERD Wisconsin’s Carbone Cancer Center while she was on faculty there. After joining UK’s Markey Cancer Center Editor’s note: This is the second in a two- because the Kentucky Cancer Registry faculty, she worked with Dr. Rachel part look at efforts to change Kentucky’s recently began a first-of-its-kind project Miller, a gynecological oncologist, and worst-in-the-nation cancer mortality rate. to collect and compile genomic trends Dr. Susanne Arnold, a medical for the state’s hard-hit oncologist, to found the first Molecular IFTEEN years down the road geographies. Tumor Board in Kentucky and organize from the first sequencing of It’s hard to say when, the UK Precision Medicine Clinic, the human genome, genomic but parents may soon be which launched in February 2018. medicine is yielding big steps able to consider genetic forward in treating cancer and screens for their Most genomic benefits yet to come Fother diseases, say several Kentucky children, said Dr. Before discussing the functions of those researchers and oncologists. Because Douglas Flora, medical Dr. Douglas entities, Kolesar explained that the term the state has the nation’s worst rate of director of the St. Flora, Medical “precision” or “targeted” medicine cancer occurrence and mortality, Elizabeth Healthcare Director, actually describes a broad range of cancer- St. Elizabeth fighting services, some of which hospitals genomic medicine could have its Cancer Center. As part of Healthcare greatest positive impact in Kentucky. a child’s annual physical Cancer Center have been engaged in for decades. Within a decade or so, healthy adults checkup, physicians Weapon number one remains screenings. could opt to have their complete could use genomics to longitudinally Triggered either due to a patient’s age or genetic profile assessed to determine track risks and suggest modified because they have a family history of their future risk for disease. And for behaviors and treatments to prevent or cancer or heart disease, doctors order Kentucky populations, such data is get ahead of the possible development colonoscopies, mammograms, prostate expected to yield deeper insights of disease. exams or stress tests.

22 OCTOBER 2018 LANEREPORT.COM • THE LANE REPORT “We know that genetics plays a role in a throughout the commonwealth on May 2018, (TCGA) had identified over patient’s risk for developing cancer,” treatment of patients suffering from 300 gene mutations. Those numbers will Kolesar said. “We try to mitigate that risk. advanced-stage cancer. continue to climb as research continues. But it’s important to remember that The volunteer board meets every genetics only indicates a risk – not a State’s first Molecular Tumor Board first and third Tuesday of the month to guarantee (that a tendency will occur). UK Molecular Tumor Board services are review case reports. Kolesar and fellow Physical exercise, a healthy diet and free and available to all surgical and board co-chair Dr. Rachel Miller are cutting out smoking significantly reduces medical oncologists in Kentucky, Kolesar among those who regularly attend. It’s a cancer risk, even for those who have a said. The board is a multidisciplinary significant comment on the family history of disease.” group of cancer specialists, including commitment of the cancer specialists Genomic science is still pathologists, medical oncologists, surgical who participate, she said, that they give comparatively new, she and her oncologists, radiologists, genetics their time to help colleagues find colleagues emphasize. While genetic counselors, pharmacologists and basic alternative or investigational treatments insight offers exciting possibilities for scientists. The MTB works to uncover for their patients. the future of patient care, the news that possible alternative treatment options for The MTB is not recommended for has received the most public attention is patients who are not responding to all cases, Kolesar said. In fact, gene a bit more hype than fact. traditional therapies. sequencing is not an automatic first step In terms of cancer treatment, “where The treating oncologist submits his for most early cancer diagnoses. the science is today is breaking down or her case to the MTB online with a “We don’t recommend using this the genetic sequence of cancer tumors request for a review. Usually, a tumor type of precision medicine therapy to identify known mutations, then sample already has been subject to gene unless the track is proven to be better matching those mutations to the most sequencing with an accompanying than standard approaches to the effective drug therapy available,” report identifying the known mutations. disease,” she said. Kolesar said. The mutations contained in MTB There are exceptions. While that summary may sound simple, request reports are cross-referenced with a For example, because Kentucky it represents a substantial breakthrough in national database such as The Cancer leads the nation in lung cancer, the medicine’s understanding of cancer cells. Genome Atlas (TCGA), which is state’s oncologists already know a great Before genetic sequencing, cancer maintained by the National Institutes of deal about the types of mutations treatment “pathways” were much the same Health, to identify the chemotherapeutic involved. While not yet a standard of from patient to patient, but outcomes drugs known to be most effective against care, gene sequencing of lung biopsies often differed. them. The options found are compiled is an increasingly common practice Some patients respond well to basic into a final report for the board. today in the commonwealth. treatment, and their cancer is stabilized, If there are no proven drugs, Kolesar The MTB’s work is yielding good shrinks or becomes undetectable. But said, there might be a clinical drug trial outcomes, but a great deal of research for others, tumors persist and become that the patient can join or some patients and discovery remains to be done. Some metastatic despite the various may qualify for an investigational drug of this will come from cancer interventions oncologists have at hand. trial available only through the Precision informatics specialist Dr. Eric Durbin, In the last decade, however, patients Medicine Clinic at UK. director of the Kentucky Cancer who don’t respond to standard When the MTB was established two Registry (KCR), who regularly sits in on chemotherapy or radiation treatment years ago, gene sequencing could the twice-monthly MTB meetings to have improving opportunities for survival compare tumor samples against an supply research and population-based thanks to medicine’s increasing estimated 196 known gene mutations. By data for physicians to consider. understanding of genetic sequencing, Kolesar said. Genetics has shown researchers that literally no two cancers are alike. The molecular composition of tumors is as individually unique as any other living organism. Meanwhile, researchers have learned there are common mutation forms among tumors that oncologists know are vulnerable to specific treatments or drugs. This growing base of knowledge and understanding about the genetic mutations common to various human cancers led UK health care officials to assemble a unique type of cancer review board in 2016. The Molecular Tumor Board allows UK researchers to collaborate with oncologists

Molecular Tumor Board Codirectors Dr. Rachel Miller, left, and Dr. Jill Kolesar, right, confer with Siva Theru Arumagam, director of the Oncogenomics Shared Resource Facility at UK Markey Cancer Center as well as director of UK HealthCare Genomics Center and of Clinical Molecular Pathology.

THE LANE REPORT • LANEREPORT.COM OCTOBER 2018 23 HEALTH CARE

Age-Standardized Mortality Rate from Neoplasms, Both Sexes, 2014 This graphic from the Journal of the American Medical Association depicts cancer mortality rates by county, showing that the worst cancer concentration in the United States occurs in Eastern Kentucky.

Greater understanding of the science will lead also to better analytic methods to process this information. In addition to a catalog of the genetic mutations that may be particular to Kentucky, the raw data will allow oncologists to re-analyze those files against what will be learned in the future. “Who knows what insights we’ll discover? It’s exciting to think about,” Durbin said.

Immunotherapy ‘miraculous’ for some Up until this point, the discussion of sequencing genetic tumors has focused on identifying specific gene mutations in cancer cells as if patients only suffered from one or two. But the disease is rarely that simple, Kolesar A population-based mutations registry possible to identify matched patients in said. There are patients whose cancers The TCGA database is a high-value a population-based registry who share a have a “high mutation burden.” resource for the MTB and advanced similar molecular profile? If the registry One of the little- genomic research in general. Even so, identifies similar cases in the registry, known functions of the Durbin realized the large data would it be able to inform physicians body’s immune system is warehouses don’t provide an important about treatments that result in longer- to track down cell information set to the commonwealth’s term survival, better quality of life and mutations and engulf cancer treatment decision makers. As a better outcomes? them as they would an result, he launched an ambitious effort Durbin believes it will. With the invading virus. But to assemble the nation’s first support of oncologists and researchers cancer is smart, said Dr. Dr. Mark population-based registry of known from UK and the University of Mark Evers, director of Evers, Director, cancer mutations; its data will be Louisville, as well as several tertiary-care the Markey Cancer University hospitals in the state, the KCR is already of Kentucky specific to Kentucky’s population and Center. Forms of the Markey Cancer demographics. in the process of collecting genomic test disease have evolved a Center “National databases data to answer those questions. survival mechanism to collect data from patients The KCR already collects population- mask its presence. It tricks the body into everywhere in the country. based data on cancer incidence, thinking it’s a normal cell and, The data doesn’t represent treatment and a host of other measures. therefore, the body’s immune system any (localized) underlying Creating a population-based set of doesn’t activate. population. It’s like basing tumor mutation data in the Immunotherapy uses drugs to boost your conclusions about commonwealth is one natural step for and reactivate the immune system, Kentucky’s cancer Dr. Eric the registry and “could give insights and Evers said. problem by reviewing all Durbin, better predictions about which patients The treatment is very much a type of the cases from the Mayo Director, would best respond to specific precision medicine. It’s a specialized Clinic,” Durbin said. Kentucky treatments because there will be type of treatment that works only for Cancer A state-specific, Registry information in the registry on patients certain individuals, Kolesar said. localized mutation (in the local population) who have tried Immunotherapy treatment can pose too registry is wanted because Kentucky those agents,” Durbin said. much risk for other patients. has the worst cancer problem in the Complying with patient privacy and “The procedure basically takes the nation; its rates of occurrence and confidentiality standards, the KCR is brakes off the body’s immune system,” mortality lead all states, and that is due negotiating agreements with health- she said, and an immune system going to a concentration in a cluster of care systems and genomic testing out of control can pose as serious a counties in Eastern Kentucky. Durbin laboratories to share basic information. threat as the cancer. conceived of the idea to embark on “We’re the first state cancer registry However, immunotherapy has KCR’s ambitious new project while to build such a database. We’ll depend a proven quite effective on patients with participating in MTB sessions during great deal on mutual cooperation with melanoma. Less than a decade ago, the past few months. health systems and laboratories to Evers said, there wasn’t much to offer Is it possible, he wondered, to gather this data. It’s a huge undertaking, patients with metastatic melanoma predict better courses of treatment or but the end result could have a except for some toxic therapies that, outcomes if there was data on the significant impact on improving survival frankly, didn’t do much. historical experience of patients who and other positive outcomes for cancer “We’ve seen miraculous effects from shared similar demographics? Is it care,” Durbin said. immunotherapy drugs. For some

24 OCTOBER 2018 LANEREPORT.COM • THE LANE REPORT patients, those drugs are really helping,” he said.

Genetics counseling Growth in genomics-based services has spurred the creation of new health professions. One new profession to emerge in recent years is genetics counseling, which helps patients interpret and understand the results of a genetics laboratory report. In recent years, researchers have started identifying and documenting genetic mutations that can indicate a genetic propensity to certain cancers. For example, the presence of some form of the “BRCA” mutation could indicate a predisposition to breast cancer. Its presence, combined with a host of other variables, could mean a patient has a 50 to 80 percent chance of developing the disease. Knowing this information, there are ways in which patients can organize their lifestyles to If there is a serious concern, a patient in the Lexington area. Advances in reduce those risks. can be referred to a specialist – a precision genomic medicine have been a leap Some patients have chosen to medicine expert in pharmacy, oncology, forward in cancer care, he said, but he undergo surgical procedures as a cardiology, or even psychiatry – to develop also argues the field is still not advanced precaution against breast cancer, which a personal treatment regimen. to the point where every patient needs has attracted media attention. Using Baptist Health offers a similar service. to undergo some molecular study. genomic reports as a means to be Patients may have to travel to a laboratory “There is popular media that makes proactive in cancer control does not to submit blood or tissue for analysis, but genetic testing seem like the perfect mean that people should take such the meeting with genetics counselors screening tool. But unless there is an radical steps, Flora said. usually occurs at home. extensive family history or other serious The St. Elizabeth Health System in “Baptist uses telehealth services so concern, the results may not be worth Northern Kentucky, like many others in patients can consult with a genetics the cost,” Pierce said. Kentucky, offers some form of a counselor from their home hospital. A few Other oncologists and researchers hereditary cancer program in its menu of my patients at Baptist Health La Grange agree. Evers emphasizes that there are of patient-care services. For a nominal do this,” said Dr. John Huber, director of ongoing national discussions regarding fee, a blood test is submitted to an cancer care services for the Baptist Health ethical concerns as the clinical accredited commercial genetics Medical Group. “A genetics visit is not applications of genomics expand in laboratory for analysis, and the report is difficult to get, and our counselors will cancer care and other clinical applications. reviewed by a clinical medical director help patients understand if there is a “There is a need for more data and and pharmacologist, who in turn advise concern. Most of the time, there is not.” more research. But these concerns the patient on what the results mean. Even though genomic services in shouldn’t dissuade us from moving down “In the near future, we plan to health care is becoming increasingly the path. As we gain more knowledge and expand this service to ‘the worried well’ popular, there are some valid criticisms understanding, our ability to predict who – people who are concerned that they that the field is still too new and may be will benefit most from genomics will may be at risk for heart disease or hyped more than it should at this point. improve,” Durbin said. ■ cancer but never had a meaningful way Dr. Scott Pierce is a medical to address those concerns until now,” oncologist with KentuckyOne Health Josh Shepherd is a correspondent for The Lane Report. Flora said. with over 25 years of practice experience He can be reached at [email protected].

THE LANE REPORT • LANEREPORT.COM OCTOBER 2018 25 DESIGN & ENGINEERING

“It’s not fun right now,” Watkins said. “From week to week, costs are increasing.” Most construction industry insiders throughout the state echoed Watkins in Tariffs Tilting her assessment about rising prices and how contractors and their suppliers have to roll the dice when they’re estimating costs and sometimes submitting binding bids on projects Project Finances with multimillion-dollar price tags. Cost increases and invoice Steel, aluminum price hikes complicate uncertainty don’t reflect precisely when the Trump tariffs took effect. The tariff construction bidding for designers and builders on imported steel (25 percent) and aluminum (10 percent) went into effect BY GREG PAETH in the latter part of March for many countries and was broadened to include products from the European Union, Canada and Mexico on June 1. Duties OMPANIES that want to build Because no one seems capable of on lumber from Canada, the subject of an office, warehouse, retail predicting where costs might be in a year, a long-running dispute between the two space or manufacturing plant the only certainty in commercial countries, hit 20 percent late last year. have learned a lesson that construction seems to be uncertainty, President Trump pledged whacks them squarely on the especially when estimating throughout his campaign to rip up Cbottom line: The project should have a project cost and, in some agreements he blames for massive trade been completed a couple of years ago. cases, submitting a bid imbalances that he considers a major Bidding construction projects and that locks in a price for a impediment to his effort to “Make managing costs is getting more month or longer. America Great Again.” complicated today. “It is extremely hard Comments from Kentucky Trump administration tariffs to design for a budget contractors seemed to mirror, for the imposed earlier this year on steel, with these wacky tariffs,” Darenda most part, what has been happening at aluminum and lumber have driven up said Darenda Watkins, a Watkins, the national level, where the Association the cost of domestic as well as foreign principal in CMW, an Principal, of General Contractors of America, a CMW building materials and created a architecture, trade group that says it represents quandary for businesses that want to engineering and design firm in 26,000 firms, seems to track every eight- have a new roof overhead. Lexington. “You’ve also got project penny nail that’s been used by a builder. On one hand are businesses that may owners and contractors who want their have been priced out of a new building by subs (subcontractors) to hold their bid Price hikes will continue rising costs even though the economy prices for 90 days, and then they bid “Although price changes for construction appears to be booming. On the other are more to cover the cost of what might materials in July were mixed, contractors far more businesses that see an urgent happen in the future.” are likely to be hit with additional cost need to build immediately before In the past bid prices on materials increases as new tariffs take hold and increasing prices snowball further. typically expired after 30 days. stocks of items purchased before the

26 OCTOBER 2018 LANEREPORT.COM • THE LANE REPORT tariffs are used up,” the association’s chief costs, and that’ll have an impact on economist, Ken Simonson, said in August bidding,” said Bill Pickering, an from the association’s office outside of architect with CMW. Washington, D.C. Overall project costs – following broad, “Despite the pause in general guidelines – typically breaks down cost increases in July, to 60 percent for labor and 40 percent for prices for goods and materials, he said. services used in “Supply-and-demand construction rose over will be what people use to the past year at more justify why they raised the than double the rate that price, but if the foreign contractors have raised Ken Simonson, product was coming in at Chief their bid prices to put up Economist, a lower price than new buildings,” domestic (products and) Association Bill Pickering, Simonson said. of General now it’s jumped up AGC notes the higher, then the domestic Architect, Contractors CMW producer price index for of America supplier can now raise construction “inputs” – a their price. Now that the foreign price is weighted average of all goods and services higher, they can creep up and get just used in building – is up 8.1 percent since underneath the foreign price. The The City Center Lexington project topped out steel July 2017. “In contrast, an index that bottom line is: the entire market sees an construction on the office in April 2018, which put its measures what contractors say they would increase,” Pickering said. acquisition ahead of steel tariff announcements by the charge to erect five types of nonresidential Like every contractor Trump administration. Doug Wilburn, cofounder of buildings rose just 3.3 percent over the interviewed for this City Center general contractor D.W. Wilburn, said steel year, indicating contractors were report, Mark Hill, vice prices are up substantially since tariff announcements began last spring and contractors should try to lock in absorbing more of the costs than they president and Lexington prices with vendors as quickly as they can. Tariffs were passing on to owners. region leader for Messer apply to foreign steel, but domestic product prices have Most Kentucky contractors The Lane Construction, said increased, too. Report spoke with said prices began to there’s no question that increase well in advance of the tariffs material prices are rising. Mark Hill, being levied as manufacturers and other With just one exception, Vice President percent of that is in the last year, so it’s suppliers anticipated rising costs for contractors and building and Lexington definitely affecting things,” said Hill, imports. professionals agreed that Region Leader, whose Cincinnati-based firm operates in Messer five states and had revenues of more Additionally, tariffs or the threat of estimating costs and Construction them cleared the way for some domestic bidding on a job are than $1.1 billion last year. suppliers to bump up their prices, many trickier now. contractors said. “Here in Lexington, overall in terms Making bids is a challenge “What I’ve been hearing in reports of bid prices across the whole project, “Right now we’re projecting that overall from some of the trade organizations is we’ve seen about a 3.5 percent increase construction prices – the escalation that materials such as aluminum, … and that’s probably in the last 12 we’re telling people to use – is about 5 copper and especially steel, and then months. As far as steel itself, it’s to 6 percent over the next 12 months. A wood, have been jumping anywhere probably increased about 15 percent lot of that is due to the steel prices,” Hill from 10 to 20 to 25 percent in material across the last two years and about 9.5 said.

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THE LANE REPORT • LANEREPORT.COM OCTOBER 2018 27 DESIGN & ENGINEERING

company has a thick portfolio of completed projects in the industrial, medical and institutional categories. “In 2018, we have experienced an approximate increase of 20 percent in steel prices on our projects, which would include structural steel, metal wall panels, metal roofing, metal frames, reinforcing steel for concrete, etc.,” Murphy said. Tariffs have “raised the ‘playing field’ of (all) steel prices and allowed the market values (prices) to increase.” Like other contractors who specialize in commercial construction, Murphy’s company doesn’t use much lumber, which has also increased in price. “My project managers and warehouse managers tell me that lumber products have increased 12 to 20 percent this year and that is because a great deal of the wood construction products come from Canada, and with their prices increasing due to the tariffs that market has also seen increases,” he said.

“Instability and uncertainty is never good” While most contractors seemed convinced tariffs on imports paved the way for domestic producers He provided a concrete example on construction firm to raise prices, J. Todd the increase in steel prices. headquartered in Glasgow. Ball, president of Bristol Reinforcing steel used inside Gumm believes steel Group in Lexington, a concrete walls, columns and prices are up at least 10 design, engineering and J. Todd Ball, foundations was $780 per ton last fall, percent and his company construction firm, raised President, providers advised, when Messer is anticipating further a more fundamental Bristol Group submitted the winning bid to build increases. But because question. Eastern Kentucky University’s $40 Thomas steel is just one component Gumm, “They (the Trump administration) say million Student Recreation and of a building, he said, the Founder/CEO, that they’re doing this because of national Wellness Center in Richmond. “net effect is a 2 to 3 Alliance Corp. security, but I don’t know what the “This summer we just recently bid a percent increase” on the national security threat is. It seems like real similar project and that price was total cost of a project. they’re doing it for no good reason,” Ball $980 a ton,” Hill said. “It jumped up said. “Creating instability and uncertainty $200 (a ton) in about nine months.” Customers know hikes coming in the market is never good.” Hill said there’s no question that “What I’m hearing overall is that things While contractors are dealing with pricing a project, especially a are so good that people are not getting relatively modest increases in the cost of government project that requires a firm too upset about the 2 to 3 percent buildings, Ball said auto manufacturers bid, is far more of a gamble today. increase,” said Gumm, whose projects and auto parts manufacturers have seen “A lot of times owners (of the include the Augenstein Alumni Center dramatic increases in the cost of doing project) will put in the bid (document) in Bowling Green, Glasgow High School business. Steel prices and tariffs on that our bid has to be good for 60 days and the Hardin County Government imported parts could add hundreds of … so we’re sitting there in a tough Center. dollars to the price of a car, said Ball, who situation because you’ve got G. Michael Murphy, was told by auto manufacturers that the subcontractors telling you that their bid CEO of Scott, Murphy & average monthly payment for new cars is only good for 20 days. It does make it Daniel in Bowling Green, might be bumped up by $60 to $100. tough (and some) subs may want to bill said customers, for the Paul Hemmer Jr., for stored materials. It’s a challenge, so most part, know prices president of the Paul what we’re trying to do is get the are heading higher. He Hemmer Co. in Fort contracts awarded real quick,” Hill said. said the price tag for one Mitchell, said his project Thomas Gumm acknowledged some of his buildings has G. Michael prices have edged up 2 to people in the market for a new building increased 3 to 5 percent Murphy, 3 percent, and volatile might be skeptical about a contractor’s this year. CEO, Scott, prices make estimating a advice to build now rather than a year in “People who have Murphy job more complicated. Paul Hemmer & Daniels the future. considered building in “When we put a price Jr., President, “I know it might sound like a sales the past will go ahead now and pull the together there are a lot of Paul Hemmer Co. pitch, but it’s the real world we’re in right trigger to avoid further increases. They components in a project now,” said Gumm, the founder and CEO will go ahead even earlier than they had and it takes time to put the bid together. of Alliance Corp., a $75 million-a-year expected,” said Murphy, whose Then the customer needs time to evaluate

28 OCTOBER 2018 LANEREPORT.COM • THE LANE REPORT In addition to foreign steel and aluminum, U.S. tariffs of 10 percent to 25 percent are being levied against all Chinese imports. China is imposing equal tariffs on U.S. products, but in the previous 12 months through July 2018, China sent $529 billion in exports to the U.S. versus $135 billion in U.S. exports to China.

it, and that’s difficult to do when you have a steel price that’s good for 10 to 30 days,” said Hemmer, whose company has annual revenues of about $90 million. If there’s a risk that material prices might change, Hemmer said, it’s not uncommon for his company to “qualify” a bid with an expiration date. But he also pointed out that submitting a “Absolutely, steel prices are isn’t all that perilous as long as prices “qualified” bid isn’t always possible for jumping. If you’ve got a new project are guaranteed by his suppliers. public projects. planned you better get a vendor and Wilburn said his company locked in Even though his company has been lock your steel prices immediately. I steel prices on the Capital Plaza project busy erecting steel in Lexington for the can’t quote how much (of an increase) in March and probably would have had City Center project and in Frankfort for since those tariffs were announced, but to pay an additional 10 to 15 percent the Capital Plaza redevelopment it’s substantial,” said Wilburn, adding more for that same steel today. project, whose centerpiece is a 390,000- that he has heard about “a 30 percent “I don’t care if it’s the structural steel s.f. office building for the state, Doug increase (for steel) coming out of the for a building or the chain link fence Wilburn, one of two founders of D.W. mills” in the last few months. “They’ve that goes around the building, you’ve Wilburn, thinks the construction (prices) been moving ever since they just got to lock that stuff in so you don’t market is “soft” in Kentucky right now, (tariffs) were announced,” said get on the wrong side of the price not nearly as bustling as his colleagues/ Wilburn, whose Lexington-based fluctuation,” he said. ■ competitors said. company has been in operation since He does agree that prices – especially 1986. Greg Paeth is a correspondent for The Lane Report. for steel – are climbing. He said submitting bids on projects He can be reached at [email protected].

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projects has continued rising in 2018, according to the Dodge Index, which tracks the numbers. July figures, the most recently available, were on track for around $817 billion in U.S. construction. That is up by 70 percent from the numbers seen in 2011 and 2012. “Ten years ago it was ‘What can we do to survive this?’ Billings today are back to the levels of allowing us to grow the firm and reward our employees,” said Estopinal. Hospitals especially get “so much wear and tear” and require more maintenance than most categories of building, said Brad Stengel, a co-senior principal and owner with Charles Brad Stengel, “Chip” Hill of Stengel Co-Senior Hill Architecture. The Principal/ Owner, 22-year-old Louisville Stengel Hill firm also specializes in Architecture health care, which kept it in steady work through the recession. Ever-changing medical technology keeps bringing work to Stengel Hill and its 45 employees because each new generation of imaging or radiation Being an Architect equipment or new surgical strategy often means construction to support it. The growth of behavioral health care the past 10 years is also generating construction, such as the 77,000-s.f. Is ‘A Fun Job’ Again Southcoast Behavioral Health psychiatric hospital Stengel Hill recently designed in Dartmouth, Mass. “The current business environment Busy Kentucky design firms are growing with and foreseeable horizon is probably the the rebounding state and national construction market best Stengel Hill has ever seen,” Stengel said.

BY MARK GREEN Business efficiency is building demand The Great Recession and its financial crisis a decade ago brought most construction to a halt for a couple of ENTUCKY architects are Estopinal spoke by years. A slow-growth recovery kept having some of their best phone in early September business offices concerned and capital years ever as they work to from Louisiana on a day he budgets tight. It was a difficult period meet clients’ pent-up post- had meetings with two for architects, whose unemployment recession need for new clients in the health-care rate climbed to around 30 percent. Kconstruction, expansions and updates sector in different parts of However, management efforts that to business, government and nonprofit that state. TEG specializes Wayne ramped up then to make business facilities. Firms’ growing staffs and in health care and has Estopinal, operations in all sectors more efficient are billings are topping pre-recession levels. “about 60 employees” Founder, TEG part of what is driving increased levels of A shortage of skilled construction today, nearly double the 32 Architects construction today, according to architects labor nationally is slowing the cycle on it had in 2008. interviewed for this article. seeing some jobs through to Kentucky had 724 registered resident Corporate clients have become completion, Kentucky architects said, architects as of mid-2017 and another actively interested in human well being, but beyond that, it’s a good time to be a 1,906 registered under reciprocal said Eric Zabilka, vice president and a professional designer of construction agreements, according to the National principal at Omni Architects of projects. Council of Architectural Registration Lexington. “It’s a fun job,” said Wayne Estopinal, Boards. NCARB reported 113,554 Employees in settings that support founder of Louisville-based TEG architects nationally in 2017, a 3 percent their well being have fewer sick days and Architects. “What we do every day jump from 2016 and about 10 percent are more productive and the business (create and build new facilities) most of more than a decade earlier. where they work “has a better bottom our clients do once or twice in a career.” The number of active U.S. construction line,” he said.

30 OCTOBER 2018 LANEREPORT.COM • THE LANE REPORT The structures Omni than they consume and are net Technical College. A fourth is about to go crafts today “use evidence- contributors to the energy grid.” out to bid that will create a new level of based design. We use ideas partnership in Louisville between that have been researched Omni designs a new category Jefferson Community Technical College and investigated,” said Now it its 43rd year, Omni has handled and Ford Motor Co. Mike Jacobs, president and numerous higher education projects, such NBC News came to Gateway to principal. “Natural as the University of Louisville student report about the first one, and other Mike Jacobs, daylight is important to President/ recreation building, Eastern Kentucky states have followed Kentucky’s lead in job satisfaction and even Principal, University’s new science building, creating advanced manufacturing well being. We have an Omni Northern Kentucky University’s campus training education programs. Omni’s unstated policy that we Architects recreation center and student union, and Jacobs has been invited to speak around are not going to put the University of Kentucky’s $200 million, the country on this new niche category. somebody in a windowless box.” 378,000-s.f. Gatton Student Center that “Kentucky is a market Today’s desire calls for individual opened Aug. 31. leader on that building work stations with nearby common Omni also has plenty of health-care type,” Zabilka said. “This areas for collaboration and meetings. projects, and its list of civic-sector jobs is a highly specialized “Sustainable building includes what is currently the largest active type of project.” design is very important construction project in the state, the $230 Omni is the leader in and is becoming the million expansion and renovation of the designing them because it norm,” said Richard Polk, Lexington Convention Center and Rupp more or less had to invent Eric Zabilka, a senior partner with Arena that will transform the iconic facility them. When the firm took Vice President/ EOP. “Clients now expect into a glitzy, glass-skinned anchor of on the first assignment at Principal, Omni architects to design downtown Lexington. Gateway, it researched for Architects highly efficient, healthy Richard Polk, Omni has also developed a reputation a precedent facility as a buildings as standard Senior Partner, for creating advanced manufacturing reference point and found none, Zabilka practice. Sustainable EOP Architects training facilities. Since doing its first one and Jacobs said. goals are being elevated to include net- 10 years ago at Gateway Community zero energy buildings that consume no Technical College in Edgewood, others Kentucky is very cost sensitive more energy than they produce. The have followed at Toyota Motor “One factor that the design professionals next frontier includes positive-energy Manufacturing Kentucky in Georgetown in Kentucky must be particularly sensitive buildings that produce more energy and in Maysville at Rowan Community to is cost of construction,” said

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THE LANE REPORT • LANEREPORT.COM OCTOBER 2018 31 COVER STORY

Rick Ekhoff, co-founder renovation projects,” said Bob Haffermann, EOP Architects. “This allows portions of and design partner of EOP principal with K. Norman Berry. the work to be prefabricated off-site in Architects. “Our developer CMW Architects & controlled workshops to save time, reduce clients cannot expect the Engineers in Lexington “is cost, reduce waste and improve quality. same rental or sales prices fortunate to have recently Many hotels and high-density residential that developers can ask for been awarded two major projects now bring in fully completed in the larger cites, so we shopping center bathroom modules that are set in place as Rick Ekhoff, must create design Cofounder/ renovations/expansions finished units. This is also occurring in excellence on a much Design Partner, and several new shopping other repetitive building types such as tighter budget.” EOP Architects centers,” said Darenda Darenda hospitals, offices and retail.” Lexington-based EOP Watkins, principal. “Office Watkins, There also is increasing modularization also finds that health care “is still a very space seems to be in high- Principal, in health-care projects, Estopinal said. strong market, as is higher ed,” Ekhoff demand, as we have also CMW The skilled trades workers shortage Architects said. “We are seeing some resurgence in been awarded several new & Engineers is driving the modular construction the retail market.” office buildings. A new trend as well. A ductwork installer who K. Norman Berry Associates Architects market for CMW that has really taken off can fabricate 100 linear feet a day did the design work for the recently in the past two years is the hotel business.” working overhead on a ladder at a completed $32 million renovation of the Detention centers are a strong construction site might do 180 linear former Fayette County Courthouse into a market for CMW, Watkins said, because feet a day if that work is taking place on mixed-use office and event space and the most of Kentucky’s facilities are a warehouse floor, Estopinal said. renovation of 10,000 s.f. of overcrowded and have failing The efficiency movement is space in the 700 block of infrastructure. Sports parks and prompting some experimentation, too. West Main Street in complexes are another bright spot. “I’m not sure it’s a trend,” Watkins Louisville into new offices “Manufacturing and warehouse said, “but we are currently designing a for Leadership Louisville projects are exploding, and health care new coffee shop prototype out of Center. remains strong,” Watkins said. shipping containers. It’s certainly been “The past few years have The general drive toward more an interesting project, but not one that Bob seen expansion in Haffermann, efficiency is affecting design trends so that we think is going to take off in this area corporate office and higher Principal, K. builders can be more productive also. for a while.” ■ education sectors, with Norman Berry “Modular construction is growing in sustained involvement in Associates both residential and commercial markets, Mark Green is executive editor of The Lane Report. historic restoration and Architects said Richard Polk Jr., senior partner at He can be reached at [email protected].

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providers for the server space, storage and networking they traditionally would have in their data center. • Software as a Service (SaaS), where cloud providers offer continuously updated subscription-based software. • Platform as a Service (PaaS), where a third-party provider offers hardware and software tools that make it possible for companies to build and test their own applications in a cloud-based environment. “Every company we work with has a high interest in cloud computing, and the trend points toward broad adoption,” said Greg Rhoades, chief technology officer for Greg Rhoades, SIS, a Lexington-based Chief Technology company that provides Officer, SIS consulting services for companies looking to transition to the cloud. “It’s easy to be overwhelmed by all the available options. We see clients taking on everything from Microsoft Office 365 to Google G-Suite, to Amazon Web Services, to more complex platform services that give them a virtualization platform for development. There are so many benefits to using cloud services that most companies can’t afford not to at least consider it.”

Less cost, more security Companies taking the plunge with Getting Cozy cloud services often experience big savings from investing in the cloud, sources say. Instead of having to purchase software annually, or develop and maintain software themselves, with the Cloud companies can purchase what they need on a subscription basis, moving costs Kentucky businesses shift more services from capital expenses to the operating and IT operations away from legacy systems cost side of the ledger. With cloud-based IT, there’s no more down time that comes from switching out upgrades of BY SUSAN GOSSELIN software, according to sources. Updates happen in the cloud, continuously. “What could have been a $10 million HEN it comes to their services, and new companies building software installation can IT capabilities and with a “cloud first” platform philosophy. now be something you services – for Worldwide, public cloud services are buy on demand, on a employees and projected to grow 21.4 percent in 2018 monthly basis. You’re customers – more to a total of $186.4 billion, up from paying per user and per companies than ever are looking to the $153.5 billion in 2015, according to a touch point, for just Erik W Dunnigan, cloud. Cloud computing, that is, which recent forecast from Gartner Inc. By what you need,” said allows companies to replace their legacy 2020, Forrester estimates the market for Erik Dunnigan, Managing Director, software and data centers in favor of public cloud computing services will managing director of Coastal Cloud subscription-based platforms, software- reach $260.3 billion. Coastal Cloud, which as-a-service and storage solutions that While thousands of cloud-based IT operates its Midwest Solutions Center are offered by outside providers. services are available to companies, they in Louisville. “We had a client recently, Cloud computing has become generally fall into three primary types: a manufacturing company, that had mainstream, with large companies • Infrastructure as a Service (IaaS), more than 30 legacy systems running, working to transition to cloud-based where companies contract with cloud many of them that were duplicating

THE LANE REPORT • LANEREPORT.COM OCTOBER 2018 33 INFORMATION TECHNOLOGY

A dashboard for the Sage Intacct financial cloud-based enterprise resource planning (ERP) solution that combines integration, automation and visibility. Products such as Sage Intacct, which Dean Dorton Allen Ford offers, provide both real-time dashboards and systems of record. data and effort. We were able to eliminate a lot of inefficiencies and expense by getting rid of those, and getting them just the streamlined cloud services that they needed.” Marshall Butler, president of Volta, an IT consulting firm based in Louisville, concurs. “Use cases vary widely for the cloud,” Butler said. “But in general, if you’re properly implementing a cloud strategy, you can expect to save between 20 to 25 percent.” And the benefits go far beyond just cost. Companies get scalability from cloud-based services – services that can take over key functions like email, “We do a great deal of financial or Expensify. Our clients have total two- intranets and even accounting. Jason software systems integration and way access to their financial data, so they Miller, director of consulting services accounting consulting for our clients,” don’t have to wait for weekly or monthly for Dean Dorton Allen Ford PLLC in Miller said. “In 2015, we switched to cloud- reports. And we don’t have to wade Lexington, said the consulting business based tools for our consulting team, and it through 10 versions of Quicken to look at is growing faster than ever, thanks to his has revolutionized our business. Now, all historical data. It has kept our clients truly company’s migration to cloud-based our clients’ accounting work can be done engaged and involved, and seeing results accounting software. on a shared cloud platform like Bill.com as they happen,” he said. Sources interviewed for this article “IT departments need to understand “Just because a program or platform also cite security as being one of the key their objectives going in when they are or storage solution is offered in the advantages of working with cloud-based considering cloud computing. They need cloud, it doesn’t make it bulletproof. services, citing the security protocols at to have a conversation around the But with the right development and major providers like Google, Salesforce complexities of adding cloud services governance, it can truly help you or Amazon as being more rigorous and alongside their legacy systems,” Rhoades streamline your company, and marry consistently updated than most said. “And they need to have a lot in place your legacy systems with the promise of corporate-level security systems. And the to make it work, including security the cloud,” he said. ■ ability to have corporate IT functions guidelines, best-practices architecture guidelines, a formal process for spread out over several cloud providers Susan Gosselin is a correspondent for The Lane actually enhances security in the event implementation, and a model for Report. She can be reached at [email protected]. of outages or company-level tech compliance with their systems. failures, as data is stored in more than one place and platform, they said.

KENTUCKY Implementation considerations Miller warned that while COUNCIL cloud computing has wide The Kentucky Arts Council proudly presents the use cases, no cloud computing system or service can be one-size-fits- all. Companies that operate in very narrow, niche markets may find that they Jason Miller, Director of need the kind of custom Consulting design that can only come Services, Dean from developing programs Dorton Allen in-house. And Miller said Ford PLLC it’s never a good idea to leap into cloud computing before doing the proper due diligence. “Companies considering migrating to the cloud should take the time to evaluate their IT processes, and ask the hard questions. Does this vendor have the proper security protocols to work with our systems? Is it stable? If I want to change cloud service providers, can my data be    easily migrated back out? Do they provide Dance Music Storytellers Theater the proper reports and systems compliance? Do they offer the ability for Planning your office holiday party or other business gathering? Plan your third parties to assess their service? You live entertainment using the Kentucky Arts Council’s Performing Artists really shouldn’t consider proceeding until Directory. These high-quality performing acts have been specially chosen and you’ve got the answers to those questions,” represent the best performers in Kentucky. Contact us today to get started! Miller said. Craig Meadows, sales operations manager at Volta, agreed, saying that instead of automatically choosing a public cloud product some companies might be better served developing a private cloud. Craig Stirfry Musette Meadows, “With a private cloud, Sales companies can use cloud Operations services without having to Manager, Volta share a public platform to do it. They can simply use the cloud to provision just the service or platform space they need, making it scalable and affordable to handle peaks and valleys of usage,” Meadows said. Companies wanting to get into cloud computing should approach adding new cloud services like they would adding any other kind of software – with Chattering Magpies extensive vetting, processes and Cheryl Pan procedures, according to Rhoades. Kentucky Arts Council http://artscouncil.ky.gov 1025 Capital Center Drive [email protected] Frankfort, KY 40601 502-564-3757 EMERGING LANE Kentucky’s young professionals and creatives

Former college classmates Lauren Montgomery, left, and Tera Davis opened Couture Closet in 2007 in La Grange with a variety of clothes and shoes for brides, their mothers and girls attending proms. Today the business focuses exclusively on bridal gowns.

on the bride, we can say it was the best decision we have made,” Davis said. “It feels great to specialize in one thing, to give our full attention to the bride.” Montgomery and Davis most often work with brides whose personalities match their own: fun and easy-going people who love simple, dreamy, beautiful things. Couture Closet brides tend to want Modern Romantic, a ‘boho’ look or a bit of whimsy in their wedding gowns. In October 2017, the owners debuted a “curvy plus size” collection of hand-selected gowns. “We’ve had incredible response, and word is quickly spreading,” Davis said. “We have committed to offering samples ranging from size 18 to 30.” “Body image positivity is our main message this year and continuing forward,” Montgomery said. Meanwhile, two industry changes in particular have helped Couture Closet’s business. Over the past few years, bridal customers have shifted from a designer brand mindset to wanting a gown in a style Style, Fit, Success and fit that suits them, regardless of who made it. From an economic standpoint, the economy crash in 2008 brought about Narrowing their bridal shop to a niche lower prices from high-end designers. has broadened Couture Closet’s business “When we first opened there were pretty much two price ranges for bridal, either very low-end or very high-end. The ERA Davis and Lauren gazebo sat in the center of the shop, $1,500 to $3,000 price range was pretty Montgomery were college ideal for the bride to come out and much non-existent,” Montgomery said. Tclassmates in 2004 at Sullivan show off the dresses she was trying on.” “We love both of these changes in the University in the school’s travel, For the first five years, Davis worked industry and have used both to our tourism and hospitality program. a second job as a front desk agent at advantage over the years.” “I always knew I’d work for myself,” the Hyatt Regency Louisville. The owners have a lot in common Montgomery said. “My family has an “I was able to gain valuable lessons with each other, especially in terms of entrepreneur attitude, and I could never that I learned there and still use today. being creative and working one-on-one picture myself working for a company.” One of them is, ‘I always want to exceed with brides. Behind the scenes, their She and Davis talked about starting a expectations,’ ” she said. individual strengths are at play, as Davis business together, maybe something During those early years, the owners is more systems-oriented and gravitates involving event planning. After school, focused on customer service and creating toward numbers and reports, while they got jobs and husbands – Davis was an memorable experiences for brides – skills Montgomery writes most of the assistant events manager at the Speed Art that are second-nature to them today – company’s blogs and manages IT and Museum – and they stayed in touch. After but they tried to make their bridal social media. a couple of years of bandying around boutique be all things to all people, as Montgomery appreciates the small- ideas, they actually did create a business new-to-business people often do. They business culture in the Louisville area together, one centered around their offered dresses and headpieces for and considers herself fortunate to be a shared love of retail, fashion, creativity, bridesmaids and mothers of the bride, woman entrepreneur and small- positivity and weddings. along with prom dresses and shoes. business owner of a “successful business They opened Couture Closet in And then, slowly but surely, they that makes other women beautiful and January 2007 in a storefront building started homing in on their ideal empowers them – I can’t get over how owned by Montgomery’s uncle on Main customer. They dropped one ancillary lucky I am to be a part of that.” Street in downtown La Grange. thing at a time until 2016, when the Davis echoed her business partner’s “The space was just perfect for a owners changed the Couture Closet sentiments, adding, “We have been asked bridal shop,” Montgomery said. business model to concentrate on one to move multiple times, and we don’t “Hardwood floors, open, big windows item for one customer: gowns for brides. plan on going anywhere. Kentucky has to display the dresses, and an awesome “After a solid two years of focusing been good to us.”— Kathie Stamps

36 OCTOBER 2018 LANEREPORT.COM • THE LANE REPORT named Work-Life-School Balance Leonidas – warrior king of WKU student revving up a business Sparta 2,500 years ago – by while living his lessons as he learns them replacing the HEN Atlanta born and raised wouldn’t be able to offer a discounted grille, Robert Bowden III was in high rate and free shipping.” bumpers, Wschool looking around the Sharing his passion with other off-road wheels and country for a college with a major in enthusiasts was the easy part. For learning other features entrepreneurship, the only one he found some of the ins and outs of the business with was Western Kentucky University. An itself, Bowden has two strong forces in his aftermarket image of the pretty campus on Instagram corner: his family and WKU. parts from caught his eye, and an in-person visit Bowden and his dad, Robert “Bert” Addictive sealed the deal. He started his freshman Bowden II, are equal partners in the Desert Designs, year in 2017 in the entrepreneurship business. His dad lives in Atlanta and is AMP Research, program in the Gordon Ford College of the CFO of Spartan 4x4. BDS, Method Business at WKU. On campus in his first year, Bowden Race Wheels “I fell in love with the town,” he said found the WKU Small Business and other of Bowling Green. Accelerator and got involved. off-road companies. Bowden is supposed to graduate in “We have quadrupled in size in the Robert Bowden III 2021, but it might take him an extra year last eight months,” Bowden said, The Spartan to earn that bachelor of science in crediting the accelerator with much of staff and entrepreneurship as he juggles credit his business acumen and allowing him Leonidas have attended a couple of auto hours and business hours. to scale Spartan 4x4 by taking action on shows in Tennessee and are ready to Not many people would turn buying his research. make a showing in Las Vegas on Oct. 30 a Jeep at age 17 into a financial “The business model did a 180, we at the Specialty Equipment Market opportunity, but Bowden managed it. pivoted aggressively, going into 2018,” Association Show, an annual event put on “I wanted to modify it but didn’t have he said. “We restructured our business; by SEMA. enough money,” he said. Instead, he that was an extremely good idea.” But don’t think all this fun and started an Instagram page named Spartan 4x4 became an off-road excitement is tempting Bowden to drop Overkill Off-Road to promote vehicle lifestyle brand. “We have our own line out of school and run with his business. aftermarket products, and merchants of apparel,” he said. He knows what he’s doing. across the country gave him free parts in T-shirts, hoodies and hats, along with “I want to be in school for several return so he could customize his Jeep. Spartan-branded headlights and taillights, reasons,” he said. “Education is very In the fall of 2015, while still a high light bars and brackets, foot pegs and important, so I can treat my employees school junior, Bowden incorporated and tailgate tables are all available on a the best way possible. I’m self-taught, but began putting other companies’ products redesigned website, Spartan4x4.com. as we scale and get bigger, I want to have a online as a reseller. By November 2017, The company is still reselling certain good understanding of everything.” during his first year at WKU, he had automotive products with some of the He’s well aware of the importance of scaled his own business, Spartan 4x4, to smaller manufacturers. Bowden and his a work-life-school balance to prevent an online store reselling 10,000 products staff of two employees, fellow WKU burnout. In addition to an education, from 30 companies. And his education students, also offer consulting for college provides a social component. began in earnest. customers who want to work on their “Being as young as I am, I work a “After doing research, I found that own Jeeps. They’re in the process of ridiculous amount of hours,” Bowden (resellers) market was saturated,” he opening an installation center this fall said. “This part of my life only comes said. “There were so many companies in Bowling Green for parts. once.” that were way bigger and able to stock And they’re building their own He’s enjoying every minute of it.— inventory in physical warehouses, I Spartan beast, a Dodge Ram truck they’ve Kathie Stamps Laura Ruth Edge Recognized by Leadership Owensboro ECENTLY Leadership Owensboro L. Ruth Interior Designs has worked with a wide array of unveiled its latest 40 Under 40, which clients. including those in the restaurant industry, traditional Rincluded Laura Ruth Edge, owner of L. and medical offices, health-care facilities and a variety of Ruth Interior Designs. The young entrepreneur residential buildings. The staff works to understand each founded the company in 2008 to help clients to client’s business and operational flow to create a commercial improve, develop and personalize their interior design that reflects its business needs and workspaces atmosphere. Laura Ruth Edge Since then she has expanded her staff to Services provided by the firm include consultation, site- seven after a decade of business. measurement and project assessment; working with Raised in Owensboro, Edge attended and graduated from contractors and subcontractors; space planning and concept the University of Alabama with a bachelor of science in design; creative concepts for specific needs; kitchen and bath interior design. Prior to starting her own business, she design; custom window treatments; procurement, completed an internship with Lexington-based Hubbuch & implementation and installation. Co. in 2006. For more information visit lruth.com.

THE LANE REPORT • LANEREPORT.COM OCTOBER 2018 37 THE LANE LIST

KENTUCKY’S TOP 20 BANKS BY DEPOSIT HOLDINGS HERE is no change in the rankings of the top 20 banks operating in Kentucky in the latest annual FDIC Deposit Market Share Report figures. Banks sometimes vary in their strategy for carrying amounts of deposits and loans on their books, but Tgenerally look to grow. PNC increased its Kentucky deposits by $380 million from a year earlier and is nearing 10 percent of the market, further cementing its position as the commonwealth’s largest deposit holder. Second-place JP Morgan Chase had a $196 million decrease in its Kentucky deposits. Third-ranked Fifth Third grew its commonwealth deposits by $457 million, and fourth-ranked BB&T increased by $451 million.

NAME STATE STATE/FEDERAL NON-KY. DEPOSITS KY. DEPOSITS MARKET (HQ) CHARTER OFFICES ($ MILLION) OFFICES ($ MILLION) SHARE

PNC Bank DE Federal 2,390 254.12 91 8,051.15 9.84% JPMorgan Chase Bank OH Federal 5,087 1,267.70 57 6,387.79 7.81% Fifth Third Bank OH State 1,081 101.98 92 6,187.18 7.56% Branch Banking and Trust NC State 1,878 160.61 93 6,106.29 7.46% U.S. Bank OH Federal 3,005 316.62 126 4,330.59 5.29% Republic Bank & Trust KY State 13 0.57 32 3,005.27 3.67% Community Trust Bank KY State 10 0.43 70 2,898.59 3.54% Stock Yards Bank & Trust KY State 11 0.36 26 2,190.37 2.68% Central Bank & Trust Co. KY State 0 NPR0 26NEWS 2,055.72 2.51% NPR NEWSKY State 0 0 25 1,636.45 2.00% Independence Bank of Kentucky United Bank & Capital Trust KY State 0 0 34 1,360.70 1.66% KY State 0 +0 MUSIC14 1,219.47 = 1.49% Traditional Bank+ MUSIC = NPR NEWS Whitaker Bank KY State 0 0 35 1,044.65 1.28% South Central Bank KY State 0 0 NPR24 NEWS 996.57 1.22% Community Financial Services Bank KY State 0 +0 MUSIC6 972.15 = 1.19% Limestone Bank KY State 0 0 + MUSIC16 851.90 = 1.04% Forcht Bank KY Federal 0 0 25 850.64 1.04% Commonwealth Bank & Trust KY State 0 0 17 827.07 1.01% Kentucky Bank KY State 0 0 17 807.36 0.99% Old National Bank IN Federal 174 11.86 15 807.07 0.99% Source: FDIC.gov Deposit Market Share Report NPR NEWS + MUSIC =

NPR NEWS TheThe Total Total Package Package The Total Package + MUSIC = The Total Package

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www.wuky.org SPOTLIGHT ON THE ARTS

Berea’s place as a mecca of creativity is Public art helps define supported by its mayor, Steve Connelly. a sense of place. The Kentucky Quilt Trail is an example of public art that takes visitors on a journey and highlights our cultural heritage. It is not bolted to the ground in a single spot, but situated throughout the state. Visitors can take in as much or as little as they like along the Quilt Trail, and they stop in our cities and towns to eat and shop along the way. And because it is a trail, it connects Kentucky communities. How many have visited Chicago’s Millennium Park and taken a selfie at The Bean? That’s an example of interactive public art that attracts tourists and locals. And that kind of art could be anywhere. As long as it’s something that visitors leave town and talk about with their neighbors, or that locals tell to their out-of-town friends, it’s something that can positively impact local economic development. In the case of Chicago, its $500 million investment, which included both public and private funds, has generated about $1.4 billion in visitor spending and added $1.4 billion in value to the The Value of Public Art adjacent real estate from its opening to its 10-year anniversary in 2014. Communities are reaping the economic benefits of public art This is arguably a powerhouse in placemaking, providing real economic BY CHRIS CATHERS benefits via higher property values, higher occupancy rates, increased tourism and more jobs. Editor’s Note: This is a truncated version of statue of a local hero or heroine. But in Not everyone has $500 million to play a speech Kentucky Arts Council Interim America the first government-supported with, and it’s fair to ask if public art and Executive Director Chris Cathers gave to public art programs were in the DNA of creative placemaking as economic engines participants in the Kentucky Main Street Franklin Roosevelt’s New Deal, which are feasible for smaller communities. Program Conference Aug. 23 in Danville. created in 1934 the Treasury The answer is “yes.” Developing a Department’s Section of Painting and great place in your community can be UBLIC art is everywhere. It doesn’t Sculpture. The program commissioned achieved through temporary events, have to be as big as something like artists through competitions to create inexpensive treatments or even PMillennium Park in Chicago or even high-quality art for federal buildings like encouraging businesses to stay open the major metropolitan areas here in post offices. It had the benefit of longer for a monthly event – all of these Kentucky. Great examples of public art are identifying public art as essential and also options produce economic returns. all over our state. The Owensboro Health putting artists to work. We have seen this in Franklin campus features many works of art for its As has been witnessed throughout County’s Josephine Sculpture Park, patients, visitors and employees to enjoy. history, public art can be an essential former farmland that is now home to Downtown murals, often collaborative element when a municipality wishes to diverse examples of sculpture. It’s works by groups of local artists or students, progress economically and to be viable to estimated, based on a formula the state prominently grace the exterior walls of its current and prospective citizens. Data uses to determine economic impact, local businesses. The giant bat at the strongly indicates that cities with an active that the park’s 20,000 annual visitors Louisville Slugger Museum should be and dynamic cultural scene are more generate about $1.1 million in considered a piece of public art. attractive to individuals and business. additional local spending. Public art has been around for We know this is true because here in Josephine Sculpture Park opened in centuries across the globe. Egyptian Kentucky both the current county 2009, so I would remind you that these are pyramids and ancient temples in South judge-executive and former mayor of not the kind of numbers you’re going to America still stand as examples of art Owensboro/Daviess County, Al get overnight, but they are possible if you that had function. Europe is replete Mattingly and Ron Payne, have said that cultivate the notion now that public art with examples of great works that came businesses have chosen to locate there can pay off in the future. ■ out of the Renaissance, and the Asian based on amenities like the arts and nations have their unique style in art, public art available to their employees. music and architecture. And in Berea, where we took part in a Chris Cathers is interim executive Americans have always been a creative national arts conference earlier this director of the Kentucky Arts Council. bunch, and there is probably not a town month, art is integral to not just the square in the country that is missing a community’s economy, but its identity.

THE LANE REPORT • LANEREPORT.COM OCTOBER 2018 39 EXPLORING KENTUCKY

The elegant interior of My Old Kentucky Dinner Train

He laughs. “And we don’t slouch on the food.” Not by a long shot. The three-course lunches and four-course dinners are gourmet meals that can include a Kentucky Hot Brown or prime rib. You can even add a chocolate choo-choo to your dessert. And all are served on tables set with white linen, china and crystal. The three steel-skirted railroad cars used were built in the late 1940s after Word War II and refurbished far beyond the original interior design. You’ll spend 2 ½ to 3 hours in total comfort and revel in a tasty meal while passing 37 miles of scenic countryside, including the 16,625-acre Bernheim Forest. You’ll view historic spots such as Limestone Springs Junction, an Old English-style depot where wealthy and famous passengers once overnighted Chow Down on the Choo Choo and where part of the 1981 Bill Murray/ John Candy movie “Stripes,” was filmed. Climb aboard My Old Kentucky Dinner Train for a special experience You’ll also see Samuels’ bourbon rickhouses, designed by T.W. Samuels BY KATHERINE TANDY BROWN bourbon founder Bill Samuels, who altered the roofs to allow better air flow and thus produce bourbon more efficiently. Heaven Hill now uses these NE of my fondest childhood experience a bit out of the norm for a rickhouses, the only ones of their design memories is taking the train each business meeting, corporate retreat, in Kentucky. Osummer with friends all the way committee luncheon, special occasion If the walls of the James Safe House from Nashville – 70 miles from my celebration, school outing or even an could talk, lots of legendary tales would hometown of Hopkinsville – to camp in “escape day” from your own same old emerge from this home purported to North Carolina. We’d board at night, routine. have often sheltered notorious bandits climb into our Pullman berths, fall asleep “People outside major cities rarely Frank and Jesse James. And you’ll chug to the soothing clickety-clack of the visit train stations and ride trains past the Jim Beam Distillery, founded by wheels and the next day, arise to wolf anymore,” says Barry Corman, the the German immigrant Beam family down breakfast in the dining car and attraction’s general manager. “The train and named for the member that marvel at America’s backyards speeding is so nostalgic. My grandfather could’ve revitalized the company after by before arriving at our destination. been riding this train to visit family in Prohibition. To this day, I believe there’s nothing Chicago in the ‘40s. And the décor is Speaking of spirits, the Dinner Train like a train ride. timeless. There’s nice woodwork inside. also offers bourbon-tasting runs. Onboard, If you’re up for a journey on the Essentially, it’s an upscale, sit-down one of Central Kentucky’s rock-star master rails, My Old Kentucky Dinner Train in restaurant, yet truly an out-of-the- distillers offers tastings of his distillery’s Bardstown can provide a memorable ordinary venue.” lower, medium and higher-tier bourbons,

Get your message before the most significant audience of Kentucky’s decision makers available in the state. Get details by calling Curtiss Smith at (502) 548-0434.

40 OCTOBER 2018 LANEREPORT.COM • THE LANE REPORT plus a signature cocktail. While you’re sipping and supping on your four courses, the distiller chats on the PA about their company and what exactly you’re drinking. Oct. 13 is the train’s next scheduled tasting. If the play’s the thing for you and you’re up for amateur sleuthing, a Murder Mystery Theatre might be your ticket. You can participate with the professional actors or just keep on slicing your steak. The next performance trains are on Oct. 20, and Nov. 10 and 24. Another possibility is to treat your sweetheart to an unforgettable New Year’s Eve, when you can add roses and chocolates to the gourmet rail-riding experience. Above: My Old Kentucky Dinner Train carries For a meeting, groups can reserve the passengers through 37 miles of scenic countryside. beautifully renovated 1860s Bardstown Depot, used for freight and passengers Right: The train’s four-course dinners include until 1953. The last remaining “dry-laid” offerings such as prime rib (right), honey-garlic shrimp and Italian stuffed chicken. limestone depot in the state, the structure is listed on the National Register of Historic Places and can comfortably accommodate 270. Attendees can meet depending upon the desired date. Groups here for, say, a training session – there’s a of 10 or more nab special pricing. 70-foot TV inside and complete A/V Come holiday time, the kids can be equipment – enjoy a catered lunch, your excuse for a ride on the train’s resume meeting in the afternoon and take Halloween Express on Oct. 27. Or opt the train for dinner that evening. Options for the North Pole Express, where you’ll include a total buyout of the train’s 136 join Santa and Mrs. Claus for a yummy seats, 64 in one car and 72 in the other, meal, crafts, singing carols and photos and/or scheduling a special extra run, with the jolly ol’ man himself. Check the Hurricane Katrina, for instance), track train’s website for a selection of material logistics, distribution centers, November and December dates. signal design and construction…and an Started in 1988, My Old Kentucky excursion dinner train. Dinner Train was the brainchild of “Everything else we do is Class I Nicholasville native and extraordinary railroads, big business,” says Barry, who’s entrepreneur R.J. “Rick” Corman. no relation to Rick. “The dinner train Corman began his company in 1973, right was something he wanted to bring back. out of high school, with a backhoe, a With Mr. Corman, if there was dump truck and a mission to become one something he wanted to do, he was of the nation’s leading railroad service going to find a way to do it.” providers – which he accomplished big- Now you can appreciate his legacy time. Now headquartered in his while dining on My Old Kentucky Dinner hometown, the R.J. Corman Railroad Train. Find your options at kydinnertrain. Group LLC has field locations in 22 states, com or call (502) 348-7300. ■ offering an array of services that include railroad construction, short-line railroad Katherine Tandy Brown is a correspondent Three-course lunch options include a Kentucky operations, dispatch, industrial switching for The Lane Report. She can be reached Hot Brown. operations, emergency response (in at [email protected].

THE LANE REPORT • LANEREPORT.COM OCTOBER 2018 41 PASSING LANE Commentary on Kentucky

Can Trees Make You Healthier? E all know that it’s good to include leafy greens in our diet, but could simply living around the leaves of Wtrees and shrubs help make us healthier as well? In a first-of-its-kind study, researchers from the University of Louisville Envirome Institute are working with a neighborhood in south Louisville to answer that question. The University of Louisville has been selected to receive a 700 community participants within the 16 clusters for the five-year, $3 million grant from the National Institute of study. The team will examine blood, urine and hair samples to Environmental Health Sciences of the National Institutes of assess cardiovascular health. Health to help fund The Green Heart Project. The university In eight of the clusters, the team and their partners will has also received a $2 million grant from The Nature plant as many as 8,000 native trees of all sizes. Shrubbery and Conservancy to support the endeavor. Aruni Bhatnagar, grasses will also be planted to further optimize the ability to director of the Envirome Institute and the Smith and Lucille filter pollutants from the air. Gibson Chair in Medicine, will lead the project. Two years later, the researchers again will collect samples “People appreciate trees and they’re aesthetically pleasing, from the volunteers and analyze the differences. They also will but whether they actually have specific quantifiable health- compare the results to those from the participants in the eight promoting effects by removing pollutants from air has never neighborhood clusters that did not live in the areas that had been rigorously tested,” said Bhatnagar. “Through The Green the plantings. Heart Project, we are changing that.” “We believe that the greening of the neighborhoods will According to the Envirome Institute, more than half the positively impact not only the air quality, but also the health of world’s population resides in urban areas, which have higher the people who live in those areas,” Bhatnagar said. “If we are than average levels of air pollution. Air pollution is a correct, we may be able to create new strategies for the significant contributor to cardiovascular disease and is linked prevention of cardiovascular disease. The results of this project to 7 million premature deaths worldwide annually, 200,000 in also will provide new insights into the effects of urban the United States alone. vegetation on community environment. These findings will be Bhatnagar and his team will include 16 low-vegetation relevant to the development of new public health polices and neighborhood clusters in Louisville to examine the impact of the optimization of ongoing planting efforts in cities around urban greenery on their health. The researchers are recruiting the world to enhance public health.” Closing the Deal over Dinner free, etc. Be sure to reply within 24 hours orders alcohol, and you don’t wish to with any dietary restrictions. drink, you simply order the beverage of Guest Duties – Observe the host for your preference without an explanation. cues. For example: place your napkin in “I’ll have an iced tea with lemon please” or your lap after the host; the host does so “Diet Coke please” and continue to first to signal the start of the meal. When browse the menu. You are under no excusing yourself between courses, the obligation to consume alcohol. napkin is placed on the chair seat, soiled Connections and Conversation – It’s side down. At meal’s end, place your the host’s job to keep conversation loosely folded napkin on the left of your going during the meal and guests must plate after the host does. Don’t refold it. contribute with courtesy. Just don’t Silverware and Service Signals – Once monopolize the conversation; rather, silverware is used, including handles, it ask questions and express interest. doesn’t touch the table again. Rest forks, Light topics include books, travel, knives and spoons on the side of your vacation, movies, and pets; avoid plate. Between bites, place your fork, with politics, sex and religion. If you need to tines up, near the top of your plate. To talk to the server, don’t interrupt the USINESS dinners are more than signal that you’re finished, place your fork flow of the conversation. Catch the eye just talking shop: How you handle a and knife across the center of the plate at of the server if you need assistance, or Bbusiness dinner can make or break the 5 o’clock position. Close your menu to slightly raise your hand. If they are busy, a deal. indicate you’re ready to order. If you are softly call their name or “server?” International business etiquette browsing an open menu, the server has Tipping – The host is the person who expert Sharon Schweitzer offers the the impression you aren’t ready. extended the invitation, and they are following advice to help you present What should you order? Ask the responsible for paying the bill. Consider both yourself and your company in the person who invited you (host/hostess) these U.S. tipping guidelines: bartender – best possible light: for suggestions on the menu. Listen 10-20 percent of bar bill; valet – $2-5; coat Invitations – The person extending the carefully because they will provide a top check – $1 per coat; server – 15-20 percent invitation is the host and is responsible for and bottom price range based on the of bill or 25 percent for extraordinary the bill. When receiving or extending entrées they recommend. Then select a service; sommelier – 15 percent of wine invitations, pay attention to special dietary moderately priced item or one of the bill. The tip should reflect the total price needs. The host may ask about food dishes they recommend. of the bill before any coupons, discounts allergies or sensitivities, kosher, gluten- To drink or not to drink? If the host or gift certificates.

42 OCTOBER 2018 LANEREPORT.COM • THE LANE REPORT 4 Kentuckians Named Among Teaching Students Most Influential in U.S. Health Care About the Joy UMANA CEO Bruce Broussard, Gov. Matt Bevin of Philanthropy and U.S. Sens. Mitch McConnell and Rand Paul Hhave been named to Modern Healthcare’s list of new center on the campus of the the “100 Most Influential People in Healthcare 2018.” University of Kentucky opened The program honors individuals in health care who are A on Sept. 7 with the goal of deemed by their peers and the senior editors of Modern spreading the joy of philanthropy Healthcare to be the most influential individuals in the throughout the campus and Bruce Gov. Matt industry in terms of leadership and impact. surrounding community. Broussard Bevin Broussard, who held a 12-way tie for No. 2 on the listing, The Center for Student Philanthropy was cited for his efforts to expand Humana’s reach. Modern is among the first of its kind in the Healthcare noted that the Louisville-based company’s United States and will serve as the basis acquisition of Curo Health Services and Kindred for teaching students the value of Healthcare has paved the way for the creation of the philanthropy – whether it is giving nation’s largest hospice operator, and a partnership with charitably, volunteering or helping to Walgreens will launch new retail clinics. organize philanthropic events. Sen. Mitch Sen. Rand As Senate majority leader, Sen. Mitch McConnell McConnell Paul (No. 43) has major sway over the nation’s health policy. The magazine notes that the most significant issue on McConnell’s agenda at this time is the nomination of Brett Kavanaugh to fill the vacant seat on the U.S. Supreme Court, which will see a number of health-care- related issues come before the high court in the years ahead. Sen. Rand Paul (No. 49), who is himself a physician, will be a crucial vote in the Kavanaugh nomination. Paul has also been a long-time advocate for association health plans as a way to address problems with the health-care system. Kentucky Gov. Matt Bevin (No. 50) has drawn attention for his efforts to implement work/volunteer requirements for Medicaid recipients who are physically able. “The essence of true giving – giving to those who may never know you, giving on behalf of a cause and mission Champion Ham Goes for a Hefty Price larger than one’s self, giving as a way of reflecting a lifetime of service to others LECTED officials and business – is reflected across the University of executives from across the Kentucky campus,” said President Eli Ecommonwealth joined Kentucky Capilouto during the ribbon cutting Farm Bureau members at the 2018 ceremony. “As Kentucky’s indispensable Kentucky State Fair for the KFB’s 55th institution, we hope to instill the spirit annual ham breakfast and auction. of philanthropy within our students – to The historically lively auction show them how shared vision and culminated in Central Bank Chairman, commitment can transform lives for the President and CEO Luther Deaton Jr. better, just as their lives have been and Dr. Mark and Cindy Lynn shaped by those who came before them. combining their bids of $1.4 million for This center is crucial to those efforts.” a record total of $2.8 million. Using the motto "Educate. Participate. The 18.77-pound ham was produced Celebrate.," the center is focused on An 18.77-pound ham auctioned off at Kentucky Farm by Broadbent B & B Foods of Kuttawa education and engagement, offering Bureau’s annual ham auction brought in a record and was auctioned by Leon Shirk. students information about fundraising $2.8 million. The money will be distributed to “We look forward to the ham Kentucky charities. and giving and opportunities to see the breakfast every year because it brings so benefits philanthropy can have on their many well-respected Kentuckians community and on their own lives. together for a great cause. The Kentucky Farm Bureau always hosts a great event that “UK Philanthropy often partners with highlights all that is good about our state,” said Deaton. students for philanthropic events, and we The University of Kentucky, the Gatton College of Business and Keeneland will have seen that they have a hunger to give receive the funds contributed by Deaton. back and to effect change in their “We came into this auction hoping we could make a difference in the community. We communities,” said Susannah Denomme, have been blessed and feel fortunate to be able to give back. The agriculture community associate vice president for philanthropy. is a cornerstone of Kentucky, and the 4-H and FFA play a vital role in creating the future “When we envisioned the center, we leaders for agriculture and this state. We know the funds from today’s auction will benefit wanted it to be student led and student those organizations, and we encourage any future donors to contribute to the great work driven to fully engage students in the they do,” said Mark Lynn. giving process and to show them the Since the first ham breakfast in 1964, Kentucky Farm Bureau has raised nearly impact they could make. We cannot wait $13 million for Kentucky charities. to see what these students accomplish.”

THE LANE REPORT • LANEREPORT.COM OCTOBER 2018 43 KENTUCKY PEOPLE

LOUISVILLE DANVILLE NORTON CHILDREN’S HOSPITAL RECEIVES NATIONAL WILDERNESS TRAIL’S RECOGNITION FOR TREATMENT OF CHILDHOOD DIABETES SHANE BAKER LEADS DISTILLERY TOURS

Wilderness Trail Distillery Master Distiller Shane Baker was on hand to share information and lead The Joint Commission, a national health-care accrediting organization, recently awarded the Wendy Novak distillery tours at the Danville distillery on Sept. 8. Diabetes Center at Norton Children’s Hospital in Louisville with a certificate of distinction for inpatient The tours coincided with the KY State BBQ diabetes care. The hospital, in partnership with the University of Louisville, is one of only three children’s Festival, which was held Sept. 7-9 on the distillery’s hospitals in the country to receive the designation. Pictured here (left to right) are Ashley Novak Butler, 44-acre campus in Danville. The event, which was executive director, Lift a Life Foundation; Emmett Ramser, chief administrative officer, Norton Children’s a fundraiser for the Heart of Kentucky United Way, Hospital; Oliver Thomas; Alex Barr; Quimby and Stella Chrisman; Timothy McCuen; Dr. Kupper featured food served up by seven celebrity Wintergerst, pediatric endocrinology chief, Norton Children’s & University of Louisville; and Toni Ganzel, pitmasters, vendors and live music by seven bands. dean, University of Louisville School of Medicine. ERLANGER LEXINGTON CVG AWARDED $7.1M FATHER JIM SICHKO UNVEILS NEW FOOD LABEL IN IN FEDERAL AIRPORT MEMORY OF MOTHER, PROCEEDS BENEFIT CHARITIES IMPROVEMENT GRANTS Father Jim Sichko, a preacher, evangelist and motivational speaker based in the Diocese of Lexington, has added a new dimension to his career with the launch his own food label: Miss Marie’s Spaghetti Sauce. The name is a tribute to Sichko’s mother, Marie, who passed away last year and was well known for her Italian cooking. Father Sichko is pictured here in a 2011 photo with (left to right) his sister, Thereze Ann Sichko, Marie Sichko and entertainer Harry Connick Jr., who met the Sichkos when making an appearance for a fundraiser in Richmond and always addressed Marie as “Miss Marie.” Proceeds from the sale of Miss Marie’s Spaghetti Sauce (available at missmariesspaghettisauce.net and in various stores across the state) will be divided equally between South East Texas Hospice (one of the first 20 hospices founded in the United States) and the Diocese of Lexington’s One in Christ Annual Appeal, which assists families in Eastern Kentucky.

LOUISVILLE 1,000 AREA BUSINESS AND CIVIC LEADERS GATHER FOR ANNUAL LEADERSHIP LOUISVILLE LUNCHEON The Leadership Louisville Center kicked off its 40th anniversary year by welcoming more than 1,000 business and civic leaders to a luncheon at the Omni Louisville Hotel on Aug. 22. The featured speakers at the event were Pete Buttigieg, mayor of South Bend, Ind., and Amy Liu, vice president United States Secretary of Transportation Elaine and director of the Metropolitan Policy Chao (left) was in Erlanger on Aug. 24 to Program at The Brookings Institution. announce that the Cincinnati/Northern Kentucky Pictured here (left to right) are Louisville International Airport (CVG) will receive $7.1 Mayor Greg Fischer, Pete Buttigieg, Ken million in airport improvement program grants. Selvaggi of WAVE 3 News, Paul Thompson The projects at CVG will include an additional de- of LG&E /KU Energy, Amy Liu and icing pad, a ramp rehabilitation project and a new Cynthia Knapek of the Leadership baggage carousel in Concourse A. Pictured here Louisville Center. with Chao is CVG CEO Candace McGraw.

44 OCTOBER 2018 LANEREPORT.COM • THE LANE REPORT GET THE NEW KET APP

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