April Lane CoversJM.qk:Layout 1 4/2/10 4:13 PM Page 991
TOURISM & AUTO MANUFACTURING The LaneReport ® KENTUCKY’S BUSINESS NEWS SOURCE FOR 25 YEARS APRIL 2010 $4.50
KENTUCKY BRIDGES, NATIONAL IMPACT Enhanced Ohio River crossings will alleviate U.S. transportation and commerce chokepoints Page 24 lanereport.com
LANE ONE-ON-ONE: MARCHETA SPARROW Secretary of Tourism, Arts, and Heritage Cabinet April Lane CoversJM.qk:Layout 1 4/2/10 3:04 PM Page 992 April Lane 1-23JM.qk:Layout 1 4/2/10 2:23 PM Page 1 April Lane 1-23JM.qk:Layout 1 4/2/10 2:24 PM Page 2
APRIL The 2010 Lane Report ® Kentucky’s Business News Source For 25 Years Volume 25 Number 4
FEATURES 24 COVER STORY: KENTUCKY BRIDGES, NATIONAL IMPACT Enhanced Ohio River crossings will alleviate U.S. transportation and commerce chokepoints 28 PUTTING RECALLS IN 28 THE REARVIEW MIRROR Toyota gives its top Kentucky executive St. Angelo key quality control oversight role for company 32 LUXURY & SOPHISTICATION Six Kentucky hotels rate one of AAA’s highest stamps of approval for service with style
34 VISITORS STILL MAKING WAVES 34 Out-of-state rivals’ claims of Lake Cumberland’s demise are greatly exaggerated DEPARTMENTS 4 Perspective 6 Fast Lane 16 Interstate Lane 17 Kentucky Intelligencer 18 Corporate Moves 19 On the Boards 20 Lane One-on-One: Marcheta Sparrow Secretary of the Tourism, Arts and Heritage Cabinet 36 Marketing 37 Economic Commentary 38 Spotlight on the Arts 39 The Lane List 40 Exploring Kentucky 24 42 Passing Lane 44 Kentucky People ON THE COVER The sun rises March 30 on the Clark Memorial Bridge between Louisville and New Albany, Ind. The Ohio River Bridges Project now moving forward will add 12 new traffic lanes across the river in and near downtown Louisville. The project will relieve congestion for Louisville and Southern Indiana, and improve commerce from Gary, Ind., to Mobile, Ala. Ralph Homan photo KENTUCKY BUSINESS NEWS AVAILABLE ONLINE
2 FEBRUARY 2010 KYBIZ.COM • THE LANE REPORT April Lane 1-23JM.qk:Layout 1 4/2/10 2:24 PM Page 3 April Lane 1-23JM.qk:Layout 1 4/2/10 2:24 PM Page 4
The PERSPECTIVE Lane Report ® Kentucky’s Business News Source for 25 Years EDITORIAL DIRECTOR SUPPORTING THE colleagues for their support of the infa- Mark Green mous “Greed Bill,” which granted ASSOCIATE EDITOR LAWS OF THE LAND extraordinary retirement income ben- Karen Baird efits to special groups of state legisla- CREATIVE DIRECTOR Nation needs leaders who are tors. While it did not set well with his Jessica Merriman willing to risk power for principles colleagues, he knew it was the proper CORRESPONDENTS position and his integrity commanded Amanda Arnold; Rena Baer; him to stand up for principle and Shannon Leonard Boone; BY PAT FREIBERT Katherine Tandy Brown; Patrice Bucciarelli; against the elitist self-interests. Anne Charles Doolin; Debra Gibson; Congress and the administration must Susan Gosselin; Carl Heltzel; Feoshia Henderson; HILE the word “integrity” is a grow some backbone in facing up to their Kara Keeton; Meredith Lane; Nancy Miller; bit difficult to define, we all folly and fantasy of explosive spending Dennis O’Connor; Robin Roenker; know what it means when we without any ability to pay for it. It demon- Robyn Sekula; Eddie Sheridan; Wsee it. And we saw it recently when Ken- strates a complete lack of integrity and Don Ray Smith; Gary Wollenhaupt tucky U.S. Sen. Jim Bunning stood plain good sense to continue this agenda SYNDICATED COLUMNS alone on the Senate floor to object to of dependency and profligate expansion Creators Syndicate what he knew was an illegitimate of government. Croesus himself could not DESIGN afford the outrageous spending and gov- Stone Advisory ernment expansion presently occurring in PRINTING, OUTPUT & PRE-PRESS SERVICES Pat Freibert Washington. Publishers Printing Co. (patfreibert@ There is no need for all things to ■ lanereport.com) come from government or for all things PUBLISHER is a former Kentucky to come under the control and power of Ed G. Lane state representative government. In fact, government has a ASSOCIATE PUBLISHERS from Lexington way of strangling good community ini- Dick Kelly tiatives with layers of rules and regula- Robin Lachapelle Donna Hodsdon tions. America is a great country, not Lisa Turner attempt to pass a new spending bill with- only because of the genius of its founders in developing our Constitu- BUSINESS MANAGER out providing the money to pay for it. Jim Curry He and the entire Senate knew that the tion but also because of the helping spirit of our country’s civic volunteers. CHIEF FINANCIAL OFFICER measure containing extended unem- Steve Rohlfing, CPA ployment benefits and transportation History is replete with legions of pri- vate citizens who have built and CIRCULATION projects would pass, but that was not the P&B Services question at hand. strengthened communities for genera- tions. Some are unknown outside their COMPTROLLER The question at hand was whether Alma Kajtazovic the Senate would obey the law and pro- own communities, yet their footprints vide the money to fund the legislation, loom large as they have guided, lifted Lane Communications Group is a member of as is required by a very recent mandate and uplifted the civic lives of others signed into law by the president. The around them. requirement, known as “Pay Go,” pro- Businesses, corporations and individu- vides that any future spending legisla- als performing acts of civic kindness and The Lane Report is published monthly by: tion must be accompanied by necessary charity impact how all of us live and work Lane Communications Group funds to pay for implementation. In every day. They leave a legacy of volun- 201 East Main Street 14th Floor other words, new spending shall no teerism and fulfillment of social responsi- Lexington, KY 40507-2003 longer be placed on the nation’s credit bility to their communities in Kentucky [email protected] card to burden future generations. and America. No government commands For more information and Apparently Sen. Bunning takes his these things and no government can repli- advertising rates contact: PHONE: 859-244-3500 oath of office seriously when it comes cate them. In a culture that emphasizes FAX: 859-244-3555 to supporting the Constitution and the living for the moment, they affirm an The annual subscription rate is $29. laws of the land. Too many in public older and more lasting set of priorities. As (Kentucky residents add $1.74 sales tax.) office today demonstrate a more cava- citizens, we need to stand with these peo- Newsstand price is $4.50. lier attitude about the Constitution ple and these values. They are the founda- Send check or money order to: and the laws of the land, especially tion of our free society. Circulation Manager THE LANE REPORT when presented with opportunities to Integrity commands that budgets be 201 East Main Street 14th Floor pass out favors to special constituencies balanced, whether for families or gov- Lexington, Kentucky 40507-2003 without regard to where the money will ernments. And it commands that prom- THE LANE REPORT corrects all significant errors that come from. Bunning, former Major ises be kept and that oaths be taken are brought to the editors’ attention. League baseball pitcher, member of seriously. It commands forthrightness, © 2010 Lane Communications Group the U.S. House of Representatives and fairness and personal responsibility. A All editorial material is fully protected and must not be country cannot endure unsustainable reproduced in any manner without prior permission. state legislator, has a history of being unafraid to stand for what is right – debt and uncontrolled spending for- irrespective of political consequences. ever, and Americans must choose their Years ago in the Kentucky State Sen- political leaders from among those who ate, he stood on the floor to chastise understand this axiom. ■
4 APRIL 2010 KYBIZ.COM • THE LANE REPORT April Lane 1-23JM.qk:Layout 1 4/2/10 2:24 PM Page 5 April Lane 1-23JM.qk:Layout 1 4/2/10 2:24 PM Page 6
FAST LANE A compilation of economic news from across Kentucky
LOUISVILLE: SIGNATURE HEALTHCARE ANNOUNCES PLANS LOUISVILLE: 500 JOBS TO BE TO ESTABLISH NATIONAL HEADQUARTERS IN LOUISVILLE ELIMINATED AT JEWISH & Signature HealthCare photos Signature IGNATURE HealthCARE, a long-term health- ST. MARY’S HEALTHCARE care facility operator based in Palm Beach Gar- dens, Fla., has announced that the company is ITING the strain of lower patient Smoving its national headquarters to Louisville. volumes combined with an increase The move will initially create 96 new jobs in the in uninsured patients, Jewish Hos- Cpital & St. Mar y’s HealthCare is eliminat- commonwealth and is expected to grow to more than 120 jobs with an average annual wage of more ing 500 positions, according to a report by than $75,000, excluding benefits. The (Louisville) Courier-Journal. Four Courts at Cherokee Park in Signature currently The job cuts represent approxi- Louisville is one of the 66 long-ter m mately 6 percent of the company’s total healthcare facilities operated by employs nearly 11, 000 and Signature HealthCARE. operates 66 long-term health- 8,100-member workforce. care facilities in seven South- Company officials said that of the 500 eastern states, 17 of which are located in Kentucky. positions being eliminated, some 250 jobs In announcing the company’s decision to relocate, Signature will be eliminated through attrition and President and CEO E. Joseph Steier III noted that Louisville pro- productivity improvements. vides a central location, rich university partnerships and a strong Janice James, transitional CEO of the talent pool to fuel aggressive company growth. hospital system, told The Courier-Journal Signature has partnered with Nucleus, the University of that the cuts are part of a companywide Louisville’s driving force behind a life sciences hub in down- Joe Steier, president plan to save more than $55 million. town Louisville, to create the International Center for Long and CEO of Signature Although the recently announced Term Care Innovation. The center, which will be the first of its HealthCARE cuts will affect all areas of the company, kind in the nation, will house and assist in the development of those employees who work most closely early-stage health technology and services companies that are working to bring new with patients will be affected to a lesser ideas to the aging care industry. extent, James said. Signature is also planning to start a think tank at its corporate headquarters, The Jewish Hospital & St. Mary’s which will use faculty from UofL to produce white papers and best practices on deal- HealthCare system encompasses 71 ing with geriatric and aging adults. healthcare facilities, including hospitals, behavioral health, assisted living, home health care, outpatient care, nursing HEBRON: DELTA’S CONSOLIDATION OF OPERATIONS AT home care, occupational health and CVG RESULTS IN LOSS OF 840 JOBS FOR SUBSIDIARY rehab medicine. “Our volumes are down, and as far as ELTA Air Lines’ recent announcement that it we can tell that is a trend across the will consolidate its flight operations at the country,” James said. “We are not in this Cincinnati/Northern Kentucky International alone. But it’s still a difficult manage- DAirport (CVG) into a single concourse will result in the ment decision to have to go through.” carrier no longer requiring the ser vices of Regional Last year, the company implemented Elite Airline Services, a Delta subsidiary that has been a cost-cutting plan that included con- providing ground handling and customer service func- trolling employee overtime hours and tions for Delta at CVG. closing a unit at Frazier Rehab Institute. Northern CVB photo Kentucky With the consolidation, Delta employees will Results of a recent survey conducted assume full handling responsibilities of all Delta and for the Foundation for a Healthy Kentucky Delta Connection flight activity at CVG as of May 1 and reveal that one third of adult citizens in 840 Regional Elite jobs at CVG will be eliminated. Kentucky do not have health insurance. However, Gil West, senior vice president of airport As part of the company’s effort to customer service for Delta, noted that with Delta return its operations at the assuming all handling operations at CVG, the Atlanta- Cincinnati/Northern Kentucky SUBMISSIONS WELCOME International Airport to profitabil- based carrier will be increasing its staffing and said ity, Delta Air Lines will be leaving To submit news and photographs for Regional Elite employees would be given preferential its gates on Concourse A in May publication in Fast Lane, please mail consideration the new positions. and consolidating all of its opera- information to: The Lane Report, 201 West said the consolidation does not change the tions at Concourse B. East Main Street, 14th Floor, Lexing- total number of departures Delta offers out of CVG ton, KY 40507-2003 or send via e- but does “eliminate the large peaks and valleys associated with today’s structure” and mail to [email protected]. will improve Delta flights schedules to the major East Coast business markets. Color photographs are preferred, “This change is not a negative reflection on the Regional Elite Ser vices team in either in standard form or digital. For CVG, but yet another step in a series of changes we have made to optimize the net- digital photographs, a resolution of work and work to return the CVG hub to profitability,” West said. “In addition, Delta 300 dpi is required, formatted in has made a commitment to do everything possible to avoid involuntary furloughs of either jpeg or tif. mainline frontline employees and we continue to honor that commitment.”
6 APRIL 2010 KYBIZ.COM • THE LANE REPORT April Lane 1-23JM.qk:Layout 1 4/2/10 2:24 PM Page 7
STATE: UNIVERSITIES RECEIVE FUNDING BUSINESS BRIEFS TO COMMERCIALIZE NEW TECHNOLOGIES
HE University of Kentucky, University of Louisville and BENTON Kentucky State University have been awarded $556,137 ■ The Benton Tribune-Courier reports that construction work on from the Kentucky Science and Technology Corp.’s Ken- a 1,200-foot lock on the Tennessee River will bring some 462 jobs Ttucky Commercialization Fund to help them commercialize to the area, with wages of up to $23 per hour. The work is being promising emerging technologies in the commonwealth. handled by Thalle Construction Co., of North Carolina, which The funding will allow UK to develop and test a new prod- has said it will attempt to hire locally and work with local suppliers uct made from high-strength carbon fiber strips to and subcontractors. The project is estimated to take approxi- strengthen and upgrade existing reinforced concrete and mately 27 months to complete. steel bridges and buildings. UofL will use the funds for a number of different proj- BOWLING GREEN ects, including the design completion and optimization of a ■ Owl’s Head Alloys, a secondary aluminum recycling facil- reactor for producing metal oxide nanowires at commercial ity that receives and ships metal across the United States, is scale; development of computer and marketing program- adding 12,000 s.f. to its existing 48,000-s.f. operation in Bowl- ming to prevent relapse among addicted persons in early ing Green. The $3 million expansion will accommodate an recovery; development of a wireless device that monitors a additional smelting furnace and result in 30 new jobs. sudden increase in body temperatures beyond a predeter- mined threshold in children due to medical conditions; and ■ Metalworks Recycle-Reload, a new company established for development of a urine-based test to diagnose obstructive the processing, packaging, shipping, receiving and purchas- sleep apnea in snoring individuals either as a clinical diag- ing of all types of non-ferrous metals, is leasing a 30,000-s.f. nostic test or a home test kit for rapid screening. facility in Bowling Green’s South Central Industrial Park. The The award to KSU will help the researchers to develop startup project will create 20 new jobs and represents a capital and commercialize a specialized sensor-based wireless tech- investment of more than $2.1 million. nology to remotely monitor and detect loss of fluid and changes in other physical parameters in difficult-to-monitor ■ The American Howa Kentucky individual containers. plant in Bowling Green will be adding employees as a result of its sister company, Howa USA Inc., photo Toyota SEBREE: STATE APPROVES $15 MILLION moving its operations from Rich- FOR RIO TINTO ALCAN IMPROVEMENTS mond, Ind., to Bowling Green. The Kentucky plant currently has HE state has approved up 30 employees and 15 temporary to $15 million in state tax workers and is expected to add incentives for Rio Tinto another 20 employees by the end TAlcan to encourage the global of July, according to The (Bowling Green) Daily News. The com- supplier of aluminum to make pany produces dash insulators, headliners and interior trim prod- long-term investments at its ucts for the automotive industry.
Fordphoto smelting facility in Sebree. Rio Tinto Alcan is evaluat- CECILIA ing the installation of equip- ■ The Cecilian Bank has purchased two banking offices of Inte- gra Bank, located in Hardinsburg and Leitchfield, Ky. As part of Aluminum usage in automobiles ment to increase potline has increased dramatically in amperage, which would enable the acquisition, Cecilian has assumed approximately $45 million recent years, and is now only the plant to be more efficient in deposit liabilities related to the two branches and $15 million in behind iron and steel in average in aluminum production. The branch loans. Cecilian has also agreed to acquire a pool of com- vehicle content. Kentucky is cur- plant is also considering the mercial real estate loans from Integra, valued at $27 million. With rently ranked third among the construction of a new bake fur- the acquisition, The Cecilian Bank will have 11 banking centers states in light vehicle production with eight locations in Hardin County, two locations in Grayson and is home to nearly 450 motor nace that would be more envi- vehicle-related suppliers. ronmentally friendly and County and one location in Breckinridge County . The transac- efficient in baking anodes that tion will place The Cecilian Bank with total assets of approxi- are utilized in potlines. Rio Tinto Alcan currently employs mately $450 million and deposits of approximately $370 million. 500 Kentuckians and is one of the largest employers in the Henderson County community. COVINGTON Kentucky is home to more than 120 aluminum-related ■ Regent Communications Inc. has filed for Chapter 11 bank- facilities and is one of the top aluminum producing states in ruptcy and reached an agreement in principal with its lenders the nation, employing more than 13,500 and generating for a consensual financial restructuring that will eliminate $100 million in state and local tax revenue each year . The approximately $87 million of the company’ s debt. The Cov- average annual wage for a primary metals job in Kentucky is ington-based company, which owns and operates 62 radio sta- more than $52,000. In 2005, more than $4.3 billion of pri- tions in 13 markets, will continue its day-to-day operations as mary aluminum products were shipped outside the state. usual and will not have any changes in its senior leadership.
THE LANE REPORT • KYBIZ.COM APRIL 2010 7 April Lane 1-23JM.qk:Layout 1 4/2/10 2:24 PM Page 8
FAST LANE
BUSINESS BRIEFS STATE: NINE SMALL HIGH-TECH FIRMS TO SHARE $2.2 MILLION IN STATE FUNDING FRANKLIN INE Kentucky high-tech companies will share nearly ■ G3 Shieldings Technology, a ballistic research company that $2.2 million in state funds as part of a Kentucky initia- produces recyclable shooting targets, has relocated its opera- tive to attract and support technology-based small tions from northern Virginia to the former Petroferm build- Nbusinesses. Through the state’s SBIR-STTR Matching Funds ing in Franklin, Ky. G3 will initially utilitze 18,000 s.f. of the program, Kentucky matches federal SBIR-STTR awards plant’s available 33,000 s.f. The company expects to hire received by Kentucky companies or those willing to relocate around 40 employees by the end of the year.
■ The Franklin Favorite reports that Perdue Grain and Oil Seeds The nine Kentucky companies receiving SBIR-STTR LLC, a division of Mar yland-based poultry giant Perdue Farms, state funding include: has acquired Kentucky-Tennessee Grain Co., one of the largest • Four Tigers (Paris): blackberry-based cosmetics, food grain elevators in the area. Kentucky-Tennessee Grain owner and medical products Wayne Larson told the newspaper that while the name has • NaugaNeedles (Louisville): nano-scale probes and changed – the company will now operate as Perdue Grain-Franklin electrodes for use in mechanical, electrical, and elec- Elevator – the business and staff will essentially remain unchanged. trochemical sensing and manipulation at cellular and molecular levels HEBRON • SCR (Louisville): medical devices to treat heart fail- ■ Coating Excellence International plans to open a manufac- ure patients. turing facility in Hebron, where it will produce bag liners for • Topasol (Lexington): development of nanoparticles the pet food and animal feed industr y. The Wisconsin-based for use in new coatings and composites company plans to lease a 120,000-s.f. facility for the plant and • Transposagen (Lexington): development of geneti- warehouse and expects to have approximately 70 employees cally modified laboratory rats for medical research. there within three years. • ApoImmune (Louisville): vaccines to treat cancer and prevent infectious diseases HIGHLAND HEIGHTS • NuForm Materials (Georgetown): ceramic materials ■ Highland Heights-based Gen- for use in automotive and aerospace composites eral Cable Corp. has acquired • PGxl Laboratories (Louisville): research on how Beru SAS, a wholly-owned sub- genetics affect patients reactions to medicines sidiary of BorgWarner France SAS, located in La Ferte Mace, • 3H Company (Lexington): clean coal and carbon France. The business will operate as General Cable Automotive sequestration technology Europe (GCAE). GCAE produces ignition wire harnesses sold into the European automotive original equipment manufactur- to Kentucky. Kentucky is the first and only state to match ing (OEM) market as well as the aftermarket. The company both phases of the federal program: up to $100,000 for expects GCAE to report more than $20 million in revenues in the Phase 1 federal awards and up to $500,000 per year (for up first year of operations. to two years) for Phase 2 federal awards. To date, the state’s LAUREL COUNTY Small Business Innovation Research (SBIR) and Small Busi- ness Technology Transfer (SBTT) matching program has ■ Somerset Community College has opened a new $13.8 mil- helped bring eight new high-tech businesses to the common- lion Allied Health and Technical Education building in Lau- wealth to benefit from the matching funds. rel County. The state-of-the-art facility currently houses administrative offices as well as classrooms for medical pro- grams. SCC is planning to launch a pharmacy tech program LOUISVILLE: UofL CLAIMS FIRST PRIZE this fall and a registered nursing program in Spring 2011, IN McGINNIS VENTURE COMPETITION
both of which will be housed in the new facility. UofL photo
LEBANON ■ Spring View Hospital has broken ground on an $8 million expansion that will include 8,000 s.f. of new space and the renovation of 5,000 s.f. in the existing facility. The project is expected to be complete by the end of the year.
LEXINGTON ■ The Urban League of Lexington-Fayette County will receive $1.1 million in federal stimulus funds to support broadband Internet training in Lexington neighborhoods. Lexington is one A team of five UofL MBA students claimed first prize in the life science categor y of of seven communities nationwide to receive funding through the the 2010 McGinnis Venture Competition at Carnegie Mellon University March 11- federal Broadband Technology Opportunity Program. Mayor Jim 13, a contest involving 25 teams. Their plan to cr eate NanoMark Therapeutics, a Newberry said Connect Your Community will work hand-in-hand company producing a new cancer drug targeting cancer cells but not healthy tissue, with the expanded wireless network the city is establishing in large won a $20,000 cash prize. The team now advances to Global Moot Corp., the parts of downtown to enhance public safety, spur economic devel- $100,000 “Super Bowl” of business competitions, in May. The Nanomark team is comprised of (left to right) Sham Kakar, Cohin Kakar, Viji Sundar, David Noack opment and increase residents’ Internet access. and Gary Degen.
8 APRIL 2010 KYBIZ.COM • THE LANE REPORT April Lane 1-23JM.qk:Layout 1 4/2/10 2:24 PM Page 9 April Lane 1-23JM.qk:Layout 1 4/2/10 2:24 PM Page 10
FAST LANE
BUSINESS BRIEFS STATE: KENTUCKY AWARDS FUNDING FOR ALTERNATIVE ENERGY TECHNOLOGY LEXINGTON WO Kentucky companies have been awarded a com- ■ Lexington-based ParaTechs Corp. has received $120,000 bined $530,000 in funding from the Kentucky New from Kentucky’s High-Tech Investment Pool, which is used to Energy Ventures Fund, a program that provides public build technology-based and research-intensive companies and Tfunds to promising early-stage Kentucky companies that are projects. The biotechnology company, which is a client of the developing and commercializing alternative fuels and renew- Lexington Innovation and Commercialization Center, creates able energy technologies. products used for protein production for use in vaccines and Wellhead Energy Systems , therapeutics. The company also markets a non-surgical located in Somerset, has been embryo transfer device for researchers who use laborator y approved for an investment up to rodents in a wide range of medical research, including can- $500,000 to develop generator sys- cer, Alzheimer’s and diabetes studies. ParaTechs anticipates tems that can be placed near natu- creating seven new high-tech jobs paying an average annual ral gas wells to produce electricity salary of at least $55,000.
Ralph King photo/NGAS for rural communities. Wellhead LOUISVILLE Energy Systems’ technology can take natural gas from isolated wells ■ Mitsui & Co., the parent company of Louisville-based Steel that are not close to transport Technologies, has announced plans to make Steel Technologies pipelines and feed it into a self-con- part of a new joint venture it is forming in conjunction with tained, on-site generator system. Nucor Corp. The NGAS President/CEO The natural gas-powered genera- new company, NuMit, William Daugherty with one of his company's tors convert the gas into electricity will combine Mitsui’s global steel market experience and Nucor’s hundreds of gas wellheads for use by local utilities, rural resi- focus on manufacturing and technology. Mitsui, which has in Eastern Kentucky. dents and industrial locations. owned Steel Technologies since 2007, operates 23 service center David Weddle, president and facilities throughout the U.S., Canada and Mexico. CEO of Wellhead, said the company plans to use an existing local manufacturer to produce the generator units, which ■ The Louisville-Jefferson County Metro Government has will help keep and create jobs in the Somerset area. created four new small-business incentive programs to help Southeast Biofuels, in Mt. Sterling, has been approved for spur economic development and create green jobs. The pro- a grant of up to $30,000 to develop a portable system that grams include the POWER (Providing Opportunities with can produce ethanol using sorghum as a feedstock. The Emissions Reduction) Loan, a $2 million revolving loan fund modular fermentation system will produce the liquid fuel at for the retrofit of off-road diesel equipment; the Green Jobs sites where the sorghum feed stock is grown and har vested. Revolving Loan Fund, a $1.4 million revolving loan fund for Sweet sorghum is similar to corn and grows well in Kentucky, companies with new green products or jobs; the nonprofit even on marginal lands. The stalks and leaves can be energy audit grant, a $200,000 grant pool for nonprofit processed in ways similar to sugar cane, with the juice organizations wanting to make their facilities more efficient; pressed out so it can be fermented into ethanol. and the Go Green Loan, a revolving loan fund that provides incentives for manufacturing companies wanting to improve their energy efficiencies through monitoring their power equipment. The programs are being funded by a combina- SHELBYVILLE: BEKAERT CORP. INVESTS tion of federal Department of Energy Efficiency Conservation $2M TO EXPAND STEEL WIRE FACILITY Block Grant, federal stimulus funds and city dollars. EKAERT Corp. is ■ Construction has begun on two new parking garages in investing more than $2 downtown Louisville that are being built to complement and million to expand its help spur new investments, including a new hotel and condo Boperations in Shelbyville, development and the new corporate headquarters for where it manufactures drawn ZirMed, a fast-growing healthcare company. Louisville Mayor steel wire products. Jerry Abramson said the two garages, which represent an Bekaert plans to add a hot- investment of $15 million, will create hundreds of construc- dip galvanizing line, a process tion jobs. The two structures will add 757 parking spaces in that provides corrosion protec- the center of the city. The projects are expected to be com- tion for wire used in exposed plete by November. environments. Bekaert’s wire According Bekaert statistics, one in products are used in a variety every four tires in the world runs ■ Kentuckiana Curb has announced plans to expand its man- of applications such as staples, on Bekaert steel cord. ufacturing operations in Louisville, where it produces a vari- paper clips, nails, spiral note- ety of products through metal fabrication processes and book wire, concrete and automotive uses. specializes in metal roof components. The $2.5 million expan- The expansion at the 26,000-s.f. plant is expected to add sion will add 20,000 s.f. to the existing 90,000-s.f. facility for 10 jobs to the existing 101-member workforce in Shelbyville, the production of high-efficiency commercial HVAC systems. where it has been in operation since 1990. The Belgium- The expansion is expected to add 50 new full-time jobs to the based company has some 23,000 employees worldwide and company’s 70-member workforce. serves customers in 120 countries.
10 APRIL 2010 KYBIZ.COM • THE LANE REPORT April Lane 1-23JM.qk:Layout 1 4/2/10 2:24 PM Page 11 April Lane 1-23JM.qk:Layout 1 4/2/10 2:24 PM Page 12
FAST LANE
BUSINESS BRIEFS NICHOLASVILLE: JACKSON PLASTICS TO CLOSE THIS MONTH, 96 JOBS AFFECTED LOUISVILLE ACKSON Plastics ■ Caldwell Tanks is investing $3.9 million to expand its opera- is closing its man- tions in Louisville, where the company manufactures customized ufacturing plant water tanks, industrial field-erected tanks and vertical concrete Jin Nicholasville, where photo Toyota storage structures. The company plans to add 33,000 s.f. to its it produces plastic existing 180,000-s.f. facility. Caldwell currently employs 206 and trim parts for the auto- is planning to add 15 new jobs as a result of the expansion project. motive industry. MIDWAY Founded in 1994 by Henry Jackson, the ■ Midway College has received $100,000 in funding from the company manufac- U.S. Department of Education to expand its nursing pro- tures parts for Toyota gram. Midway President Dr. William B. Drake Jr. said the and also lists the Lear funds will help the college double the size of its associate Corp. and McKechnie degree in nursing program to graduate more nurses by 2012. Vehicle Components among its clients. Jackson Plastics has been producing plas- NORTHERN KENTUCKY tic trim parts for the automotive industr y The company is ■ St. Elizabeth Healthcare has entered into a definitive agree- since 1994. slated to close by the ment to sell its ambulance company, TransCare of Kentucky end of April, leaving some 96 people without a job. Inc., to Rural/Metro Corp. TransCare provides 24-hour life According to the company’s Web site, Jackson Plastics has support ambulance transportation to move patients to and two plants in Nicholasville: a 36,000-s.f. facility on one acre from hospitals, medical testing or treatment facilities through- that houses 18 molding presses that range up to 600 tons and out Northern Kentucky. Rural/Metro has been in business for another 60,000-s.f. plant on 6.5 acres that has five molding more than 50 years and is one of the nation’s leading presses that range from 500 to 1,500 tons. providers of emergency and non-emergency medical trans- In an interview with The Jessamine Journal, Nicholasville portation services and fire protection ser vices, serving more Mayor Russ Meyer said, “Henr y Jackson and his family and than 400 communities throughout the United States. all of their employees have been a great community partner for many years, and they’ll be missed by the city government ■ The Northern Kentucky Convention & Visitors Bureau reports and the county government. I know our economic develop- that it saw a 12 percent increase in group business bookings in ment authority is very optimistic about potential economic 2009 vs. 2008 bookings, representing a boost of nearly 12,000 development clients coming into this building because of hotel guest nights. “We focused on group markets like sports and the set-up with the crane in the building. It’s a unique set-up religious organizations that offered the highest sales opportuni- out there, and I feel good about somebody else coming in.” ties, especially with the new Bank of Kentucky Center fully oper- ational for the entire year in 2009,” said Bureau President & CEO Tom Caradonio. For 2009, corporate travelers remained the LOUISVILLE: LIGHTYEAR GOES PUBLIC largest market segment in Northern Kentucky, comprising 41 VIA DEAL WITH LIBRA ALLIANCE CORP. percent, followed by leisure (36 percent), meetings/conventions (20 percent), and government (2.5 percent). Total economic OUISVILLE-based Lightyear Network Solutions is now a impact of visitor spending during 2009 in Boone, Campbell and publicly held company as the result of a securities Kenton Counties was $262 million, down 14.5 percent from $306 exchange transaction with Libra Alliance Corp., a million in 2008. LNevada company that previously operated as an Internet service provider. With the securities exchange transaction, OLDHAM COUNTY ■ Lightyear is now Libra’s principal operating company. The Oldham Count Chamber of Commer ce and the Old- Lightyear CEO J. Sherman Henderson has been named as ham County Economic Development Authority have merged chairman and CEO of the public company, which trades on their organizations to form the Oldham Chamber and Eco- the OTC Bulletin Board under the symbol “LBAL.” nomic Development Agency. Bill Howard, CEO of Fastline “The main focus for Lightyear will be continuing to serv- Publications in Buckner, has been elected to ser ve as chair- ice the telecommunications needs of our approximately man of the new organization. 60,000 business and residential customers utilizing our inde- pendent national sales force of Lightyear Agent Partners,” OWENSBORO ■ Henderson said. “With Lightyear’s debt and interest obliga- Kentucky Bioprocessing tions to its parent being extinguished via the exchange trans- has been awarded $17.9 action, we believe that we are well positioned to initiate our million from the U.S. organic and acquisition growth strategies.” Department of Defense to Henderson added that the company is “actively seeking develop a proof-of-concept to acquire multiple small to mid-sized competitors in strate- platform capable of yield- gic locations throughout the U.S., where we anticipate sig- ing a purified vaccine nificant demand for Lightyear’s service offerings.” using a whole plant-based process. Kentucky Bioprocessing Lightyear currently has about 84 full-time employees and was one of more than 25 companies to bid on the project. generated approximately $44 million in revenue for the nine The work is expected to be completed by March 2011. months ending Sept. 30, 2009.
12 APRIL 2010 KYBIZ.COM • THE LANE REPORT April Lane 1-23JM.qk:Layout 1 4/2/10 2:24 PM Page 13
LOUISVILLE: UofL IS LEADING NATIONAL BUSINESS BRIEFS EFFORT TO DEVELOP CRISIS RESPONSE OWENSBORO HE University of Louisville is leading a federally ■ First Security Bank of Owensboro Inc., a wholly owned sub- funded effort to develop computer software that would sidiary of First Security Inc., has agreed to purchase eight banking allow health and emergency professionals to allocate offices of Integra Bank. The banking offices include five located Tand reallocate their resources - people and equipment - in in Bowling Green and Franklin, Ky., and single offices located in response to the shifting conditions that would follow a pan- Paoli, Mitchell and Bedford, Ind. As part of the transaction, First demic attack or natural disaster. Security will assume approximately $188.2 million of deposit lia- The project will bilities and acquire $74.8 million of branch-related loans, as well focus on develop- as $38.4 million of additional commercial real estate, $2 million of ing a “real-time” decision-support system that could provide other commercial and $56.9 million of indirect consumer loans. medical care where needed even when responders and Total assets for First Security will approximate $430 million upon health providers themselves are affected by a pandemic or completion of the merger. The acquisition gives First Security a flu outbreak. University of Louisville industrial engineering total of four offices in Indiana and seven in Kentucky. professor Sunderesh Heragu, who is leading the research group, said some studies show that up to 40 percent of the PADUCAH population could be stricken, and that could affect staffing ■ The board of directors of Computer by doctors, emergency responders, nurses and support serv- Services Inc. has approved a two-for- ice providers during the “medical surge” that could result. one stock split, payable April 30, 2010 The researchers also will factor in the medical logistics of get- to shareholders of record as of March ting supplies, hospital beds and caregivers where they are most 29, 2010. The Paducah-based com- needed. Other priorities will be meeting the mental health needs pany is traded on the OTCQX under the symbol CSVI. of health care and emergency workers strained by a disaster; secur- ing medical information in a public health situation; and protect- ■ Paducah & Louisville Railway is investing more than $4.2 ing healthcare workers with necessary personal equipment. million to construct a new 20,000-s.f. headquarters facility in The three-year project will be funded by the U.S. Depart- Paducah to accommodate the company’s growing staff. Padu- ment of Homeland Security through the Somerset, Ky.-based cah & Louisville serves more than 90 industries and manages National Institute for Hometown Security. approximately 200,000 car loads annually. April Lane 1-23JM.qk:Layout 1 4/2/10 2:24 PM Page 14
FAST LANE
BUSINESS BRIEFS PRINCETON: BREMNER FOOD’S EXPANSION WILL CREATE 111 NEW FULL-TIME JOBS PADUCAH REMNER Food Group is investing more than $62 mil- ■ EntrePaducah has received the Southern Growth Policy lion to expand its food production plant in Princeton, Board’s Innovator Award for its work with small businesses where it produces private-label cookies and crackers. facing challenges from the economic downturn. The organi- BThe expansion will add 111 new full-time jobs to the zation’s purpose is to connect entrepreneurs with the people, plant’s current 600-member workforce. agencies and networks needed to launch their endeavors. Bremner has acquired 32 acres of land to accommodate the PIKEVILLE expansion, which will involve adding approximately 200,000 s.f. to the company’s existing 700,000-s.f. facility. The company ■ Pikeville Medical Center has plans to install new production lines, relocate production lines launched an $8.9 million ren- from other facilities and increase its warehouse space. ovation of its emergency The Kentucky Economic Development Finance Author- department that will add ity has preliminarily approved Bremner Food Group for tax 23,000 s.f. and create more benefits up to $5 million under the Kentucky Business than 50 jobs. The project, which expands the emergency depart- Investment program. The incentive can be earned over a 10- ment to 27 beds (including two trauma bays), will position the year period through corporate income tax credits and wage hospital to apply for designation as a Level II trauma center. The assessments. The maximum annual approved amount to be project is expected to be complete by early summer. earned by Bremner is $500,000. SHELBYVILLE Bremner is a subsidiary of Ralcorp Holdings. ■ Ledco Inc., a Shelbyville door manufacturer, has been LOUISVILLE: HILLIARD LYONS EXPANDS acquired by Florida-based WITH ASSET PURCHASE OF BCATALYST Masonite Inc., a global manu- facturer of residential and ILLIARD Lyons, a Louisville- commercial doors. Financial based financial services firm, has details of the transaction were acquired middle-market invest- not disclosed. An announce- Hment banking team bCatalyst through ment issued by Masonite said an asset purchase agreement. Ledco’s senior management Terms of the transaction were not will remain with the company. announced. Ledco was founded in 1964 bCatalyst, also based in Louisville, and currently has approximately 140 employees at its 130,000- will continue its regional focus on mid- s.f. plant in Shelbyville. dle-market mergers and acquisitions, business valuation and other financial James R. Allen, CEO SOMERSET advisory services addressing the needs of Hilliard Lyons ■ Somerset-based Southern Petroleum has signed a distribu- of business owners and enterprises val- tion agreement with Gulf Oil and will convert nine Chevron ued in the $2 million to $200 million range. Andy McKay , gasoline stations to the Gulf brand. The rebranding repre- the current CEO of bCatalyst, will become a senior vice pres- sents the first time in 20 years that a Gulf Oil branded gas sta- ident and director of investment banking at Hilliard Lyons. tion has operated in Kentucky. Earlier this year, Gulf Oil “We believe that combining Andy McKay and his bCata- acquired all title and interests to the Gulf brand from lyst team with the brand and resources of Hilliard Lyons will Chevron U.S.A. Inc. Southern Petroleum supplies more than be very powerful,” said Hilliard Lyons CEO James R. Allen. 150 gas stations in Kentucky, Indiana and Tennessee. “The bCatalyst team has built a strong reputation and has established outstanding relationships in the region that can WILMORE be further developed.” ■ Asbury College has officially changed its name to Asbury Founded in 2000 by a group of Louisville entrepreneurs, University to more accurately reflect its program offerings private equity investors and dealmakers, bCatalyst has played and mission. Information about the name change released by an active role over the last decade in business incubation, angel Asbury noted that master’s level programs have been offered investing, venture capital, private equity, valuation and M&A there since 2000. in the Louisville market and beyond. Recent bCatalyst engage- ments include advising Koch Filter Corp. in its sale to Tomkins STATE plc; Stonestreet One Bluetooth Software in its management ■ AT&T has unveiled its Kentucky wireless net- buyout; and Whip Mix in its purchase of Best-Bite. work investment plans for 2010, which include David A. Jones, Jr., chairman of Chrysalis Ventures, said, the addition of more than 40 new cell sites and “The partnership with Hilliard Lyons represents the next the upgrade of nearly 300 additional cell sites step in the company’s success. bCatalyst started as an incu- to 3G throughout the state. The announce- bator of tech companies. For Chrysalis and other founders, ment builds on AT&T’s 2009 wireless invest- this represents the culmination of a vision of helping ment, during which it added 50 new cell sites regional businesses grow and succeed.” in Kentucky and upgraded more than 80 exist- Hilliard Lyons is a member of the New York, American and ing sites to 3G. Chicago stock exchanges and operates 70 branches in 13 states.
14 APRIL 2010 KYBIZ.COM • THE LANE REPORT April Lane 1-23JM.qk:Layout 1 4/2/10 2:24 PM Page 15
STATE: STATE AND ARRA PROVIDE $200K BUSINESS BRIEFS FOR SWITCHGRASS ENERGY RESEARCH STATE HE Kentucky Agricultural Development Board has ■ The Kentucky Council on Postsecondary Education has approved the Kentucky Forage & Grassland Council for approved three new degree programs for the state. Western $100,000 in Agricultural Development Funds and Kentucky University will offer a bachelor of science in mili- T$100,000 in American Recovery & Reinvestment Act (ARRA) tary leadership and a master of science in instructional funds for the expansion of research related to switchgrass as design. Murray State University will offer a master of science a renewable energy source. degree in chemical manufacturing management. According to information released by the state, the proj- ect will demonstrate that Kentucky farmers can produce ■ The Kentucky Office of Rate Interven- biomass crops on a large scale that can provide an added tion has reached a preliminary settle- income stream, as well as generate “green” energy for Ken- ment agreement with Atmos Energy tucky consumers. The project will also show the value of Corp. that limits the company’s general using a public-private partnership to produce and utilize rate increase to $5.9 million. The company had originally biomass crops and demonstrate the wide range of benefits requested an increase of approximately $9.5 million. The Public sustainable energy production has across the local econ- Service Commission, which must approve the settlement, has omy and environment. scheduled a hearing on the matter for May 11. Atmos ser ves “Farming and energy are two keystones of Kentucky more than 180,000 customers in 38 counties. industry and its future, which can have a mutually beneficial relationship,” said Gov. Steve Beshear. “With the help of the ■ Kentucky’s annual unemployment rate surged to 10.5 per- Kentucky Agricultural Development Fund, we are position- cent in 2009 from 6.6 percent in 2008, making it the highest ing agriculture to be a leader in the development of alterna- annual rate in Kentucky since 1983 when it was 11.3 percent. tive energy sources, such as switchgrass.” The U.S. annual unemployment rate climbed to 9.3 percent This project is the first award through the Multi-County in 2009 from 5.8 percent in 2008, making it the highest Energy Initiative Program, which encourages regional col- annual U.S. unemployment rate since 1983 when it was 9.6 laboration by providing a 1:1 match with ARRA funds and percent. Kentucky’s unemployment rate for January 2010, the state Agricultural Development Funds for agriculturally most recent figures available, was up to 10.7 percent, up from related renewable energy projects. 10.6 percent in December 2009.
THE LANE REPORT • KYBIZ.COM APRIL 2010 15 April Lane 1-23JM.qk:Layout 1 4/2/10 2:24 PM Page 16
INTERSTATE LANE Business news from Indiana, Ohio, Tennessee and West Virginia
BUSINESS BRIEFS INDIANA: DOW AGROSCIENCES EXPANSION TO CREATE UP TO 577 NEW JOBS IN INDY INDIANA ■ Lear Corp. is expanding its operations in Hammond, Ind., OW AgroSciences creating more than 285 new jobs by the end of the year. The has announced a Michigan-based company, which designs and manufactures significant expan- complete seating systems and components for automotive Dsion of its global head- manufacturers, will invest more than $2.2 million to upgrade quarters in Indianapolis and adjust equipment at its 110,000-s.f. facility to manufac- that will create up to 577 ture seating for the Ford Explorer. Lear currently employs new jobs by 2015. Dow AgroSciences photo more than 160 workers in Hammond. The agriculture-based firm is investing more than ■ s2f worldwide LLC, a startup provider of supply chain and $340 million to construct logistics services, has announced that it will establish its head- additions of its headquar- Dow AgroSciences is in the process quarters and distribution operations in Plainfield, Ind., cre- ters over the next five of implementing an aggressive ating 250 new jobs by 2013. The company will invest $10.8 years, with the first phase expansion plan at its headquarters million to lease and equip a 200,000-s.f. distribution center being a 14,000-s.f. green- in Indianapolis. and office building near the Indianapolis International Air- house and a 175,000-s.f. port that will serve customers in the automotive, life sciences, research and development facility at its corporate campus on the telecommunications and retail markets, among others. city’s northwest side. The company expects the greenhouse con- struction to be complete by the end of this year while the R&D OHIO facility is expected to open in early 2012, with other building proj- ■ Explorys Inc., a technology company that specializes in the ects coming according to a multi-year timeline. healthcare industry, has been awarded a 75 percent job cre- Dow AgroSciences’ decision to expand its headquarters ation tax credit for a 10-year term in connection with an $11 follows two additional company expansions in 2009. In July, million project in Cleveland, Ohio, that is expected to create the company announced it would lease an 80,000-s.f. 330 positions. Explorys was formed in 2009 in partnership research facility adjacent to its global headquarters, allowing with the Cleveland Clinic to develop an independent nation- for expansion and adding 100 new biotechnology scientists wide network aggregating research statistics and patient data to its ranks. In September, the company announced that it through real-time comparative analytics. The system bridges would expand its Indiana research operations to Purdue the gap between researchers, life sciences, and those deliver- Research Park in West Lafayette, creating up to 30 new jobs ing care. The value of the tax credit is estimated at $17.6 mil- by 2014. lion over the term, and the company would be required to maintain operations at the project site for 13 years. TENNESSEE: CLEARFUELS PARTNERS WITH HUGHES TO DEVELOP NEW BIOREFINERY TENNESSEE ■ Bongards’ Creameries, a Minnesota-based cheese producer, LEARFUELS Technology Inc. and Hughes Hardwood has purchased a 114,000-s.f. facility in Humboldt, Tenn., have partnered to develop a biorefinery that will con- where it plans to establish a new production facility. The vert 1,000 dry tons of wood product per day to renew- Humboldt property was previously owned by ACH food com- Cable diesel or jet fuel. Hawaii-based ClearFuels will site the panies and was used to produce loaf and shred imitation facility at the Hughes Hardwood wood component products cheeses. Bongards expects to have the capacity to produce manufacturing facility in Collinwood, Tenn. natural and processed shredded cheeses by the middle of the The Collinwood facility will represent an investment of summer and is scheduled to begin production of loaf- roughly $200 million by ClearFuels and the creation of 50 processed cheese by the end of the third quarter .The com- direct new jobs, with additional jobs to be created in relation pany expects to have approximately 89 employees at the to the collection and transportation of feedstock. Humboldt plant within three years. At standard capacity, the biorefinery will be capable of producing 16 million gallons of diesel and 4 million gallons VIRGINIA ■ of the gasoline feedstock naphtha each year, along with six to Massey Energy Company has signed a eight megawatts of excess electricity. definitive agreement to purchase Cumber- ClearFuels is slated to break ground on the biorefinery in land Resources Corp. and its affiliated late 2011, and the facility will reach commercial operation companies for $960 million in a combined by late 2013 to early 2014. cash and stock transaction. Based in “The concept of biomass harvesting will revolutionize the Abingdon, Va., Cumberland is one of the logging industry in the South,” said Mike Yeager, land man- nation’s largest privately held coal producers and operates pri- ager, Hughes Hardwood. “Landowners who prefer biomass marily underground coal mines in southwestern Virginia and contractors over a conventional harvest will see both eco- eastern Kentucky. Its assets include an estimated 416 million nomic advantages and a more attractive post-har vest site. tons of contiguous coal reser ves, a preparation plant in Ken- Every landowner Hughes Hardwood has assisted has had an tucky served by the CSX railroad and a preparation plant in Vir- issue with disposing of the remaining residual fiber . Now I ginia served by the Norfolk Southern railroad. can offer a profitable solution to that problem.”
16 APRIL 2010 KYBIZ.COM • THE LANE REPORT April Lane 1-23JM.qk:Layout 1 4/2/10 2:24 PM Page 17
KENTUCKY INTELLIGENCER®
A sampling of economic development data
THE LANE REPORT • KYBIZ.COM APRIL 2010 17 April Lane 1-23JM.qk:Layout 1 4/2/10 2:24 PM Page 18
CORPORATE MOVES New leadership for Kentucky businesses
BANKING CONSTRUCTION ident of marketing communications for ■ Stephanie Renner has joined American ■ Thomas M. Keckeis has been named Preston-Osborne. Apple will work out of Founders Bank as vice president and head board chair, president and chief exec- the company’s Louisville office. of compliance and utive officer of Messer Construction. CRA. Sarah Lever- Paul Hitter has been elected senior ■ Jason Clark has age has been pro- vice president and chief financial offi- been promoted to moted to assistant cer for the company. Rick Hensley has president/ cre- vice president, been named corporate vice president ative director of internal auditor. and chief information officer. Dave VIA Studio in Keith Brewer has Miller has been named corporate vice Louisville. been promoted to president and will partner with Mark assistant vice presi- Gillming in leading the company’s TECHNOLOGY dent, loan review Louisville region. ■ Michael Davis officer. has been pro- Stephanie Renner EDUCATION moted to chief Jason Clark ■ Robert C. Mock Jr. has been named executive officer vice president of student affairs for the of Louisville-based Appriss. University of Kentucky. TRANSPORTATION GOVERNMENT ■ Joe Crabtree has been named director ■ The Kentucky Department of Parks of the Kentucky Transportation Center. has named Monica Conrad, Kerry Lamb and Stefanie Gaither as regional man- ■ Andrew Aiello has been named gen- agers for the Kentucky state park system. eral manager of the Transit Authority of Diane Bonfert has been named as the Northern Kentucky (TANK). Sarah Leverage Keith Brewer department’s director of recreation. Chris Kellogg is the department’s new OTHER ■ Bob Cline has communications director. ■ Jason Nuetzman has joined Commu- joined Republic nity Ventures Corp. as executive vice Bank as vice presi- INSURANCE president-Bowling Green. dent/special assets ■ Roy Goldman has been named vice manager for its president and chief actuar y for ■ John H. Clark IV has joined The commercial lend- Louisville-based Humana Inc. Clark Group as a board member and ing department. principal stockholder. LEGAL ■ Melissa Lamont ■ Jeremiah A. ■ Dana B. Cox has been named execu- has been pro- Byrne has been tive director of the Kentucky Historical moted to assistant Bob Cline elected a partner Society Foundation. vice president of in the law firm of operation for First Citizens Bank in Eliz- Frost Brown Todd. ■ Stephanie Nelson has joined the Ken- abethtown. Brian Lippert has joined the Gregory S. Shu- tucky Association of Manufacturers as bank as vice president and credit admin- mate has joined director of membership services. istration officer. the firm as a part- ner in the Flo- ■ Meredith Apple Gault has been rence office. Jeremiah A. Byrne appointed executive director of the Kentuckiana Chapter of Juvenile Dia- ■ James L. Fisher has joined betes Research Foundation Interna- Greenebaum Doll & McDonald as chief tional. operating officer. ■ Kevin McKim has been promoted to ■ Chauncey S.R. president of RecoverCare, a Louisville- Curtz has been based distributor of wound care and named managing bariatric equipment. Ryan Schmidt has Melissa Lamont Brian Lippert partner for Dins- been appointed chief operating officer more & Shohl of the company. LLP’s Lexington ■ Joey Mills has been named senior vice offices. ■ Ted Nicholson has been named gen- president and senior credit officer for the eral manager of the Louisville Arena, Woodford County market of United Bank. MARKETING the new multipurpose arena that is ■ Stephanie Apple slated to open later this year. has been pro- Chauncey S.R. Curtz moted to vice pres-
18 APRIL 2010 KYBIZ.COM • THE LANE REPORT April Lane 1-23JM.qk:Layout 1 4/2/10 2:24 PM Page 19
ON THE BOARDS New leadership for Kentucky organizations
KENTUCKY ARTS COUNCIL the Kentucky Lottery Corp. Scheben, of SOCIETY FOR MARKETING ■ Henrietta Kemp, Josephine Richardson Union, is senior vice president of Her- PROFESSIONAL SERVICES and Andrea Rudloff have been appointed itage Bank. ■ The Kentucky Chapter of the Society to the board of directors for the Kentucky for Marketing Professional Services has Arts Council. Kemp is a retired educator LEADERSHIP KENTUCKY announced its officers for 2010: Presi- from Hopkinsville. Richardson owns the ■ Regina Jackson has been named to dent – Brooke Shepherd, EA Partners Courthouse Café and Cozy Corner in the executive committee of the board of PLC, Lexington; President-Elect – Carol Whitesburg. Rudloff is an arts administra- directors of Leadership Kentucky. Jack- Blevins-Ormay, CMTA Engineers, tor from Bowling Green. son is a partner in the Bowling Green Louisville; Past President – Ashley law firm of English Lucas Priest & Bruggeman, Bentley Prince Street, Lex- KENTUCKY DISTILLERS Owsley LLP. ington; Co-Treasurers – Sarah Young, ASSOCIATION EOP Architects, Lexington, and Mary ■ The following individuals have been LEXINGTON-FAYETTE URBAN Beth Wright, Messer Construction, Lex- named to the board of directors for The COUNTY AIRPORT BOARD ington; Secretary – Cory Sharrard, KTA Kentucky Distillers Association: Chair- ■ Kelley Sloane Consulting Engineers, Lexington; Pub- man – Chris Morris, Brown-Forman has been lic Relations – John Oliva, Builders Corp.; Vice Chairman – John Rhea, appointed to a Exchange, Louisville; Program Coordi- Four Roses Distillery; Secretary-Treas- four-year term on nators – Jamie Draper, Engineering urer – Jeff Conder, Beam Global Spirits the Lexington- Consulting Services, Lexington, and and Wine; Andrea Wilson, Diageo Fayette Urban Allison T. Pullen, Qk4 Architecture North America; David Hobbs, Heaven County Airport Engineering Planning, Louisville; Spon- Hill Distilleries Inc.; and Tom Krekeler, Board. Sloane is sorship Coordinators – Brent Collins, Wild Turkey Distillery. director of enter- Luckett & Farley, Louisville, and Janet prise software Heberle, TEG, Louisville; and Member- KENTUCKY LOTTERY CORP. marketing for Kelley Sloane ship Coordinator – Stacey McChord, ■ William Lee Scheben has been Hewlett-Packard Ross Tarrant Architects, Lexington. appointed to the board of directors for in Lexington.
THE LANE REPORT • KYBIZ.COM APRIL 2010 19 April Lane 1-23JM.qk:Layout 1 4/2/10 2:24 PM Page 20
LANE ONE-ON-ONE Kentucky’s leaders express their opinions
‘OUR RESOURCES ARE LEAN, AND WE There may be three budgets out there today for consideration by the Kentucky ARE TRYING TO DO MORE WITH LESS’ General Assembly; we don’t know for sure. There’s the governor’s recommended Ky Secretary of Tourism, Arts and Heritage Marcheta Sparrow budget that calls for a 2 percent cut. discusses overseeing 15 state agencies, preparing for WEG There’s also the House budget. The Sen- ate’s budget is not expected until next week. At this time, we have no way of BY ED LANE knowing what to anticipate. (Editor’s note: This interview was conducted and sent to the printer prior to approval of the state’s Ed Lane: The U.S. economy has been in crafts and arts were fairly strong. It was a final budget by the General Assembly) decline for over a year. Economists say the very good show this year; well attended; recession is over. What is your perspective large items sold well and the vendors EL: How many agencies of state govern- on the economy as it r elates to state gov- were pleased. ment are managed by the Tourism, Arts ernment in general, and specifically to and Heritage Cabinet? tourism and the arts in Kentucky? EL: Is this a good time for people to buy MS: Fifteen. This cabinet manages a Marcheta Sparrow: Kentucky’s economy, art? Are prices competitive? very eclectic group of agencies. They all on the whole, is a bit behind the national MS: Handmade items, this year, are a work together very well and have much curve, and it may at this point be experi- very good buy. People are buying well- of the same mission. encing what other states were feeling this made, hand-crafted items. Maybe peo- EL: How many employees now work for Marcheta Sparrow the cabinet compared to the number Marcheta Sparrow was appointed as Secretary of employed in FY09? the Tourism, Arts and Heritage Cabinet by Gov . MS: Our work force is pretty much even Steve Beshear in December 2007. She oversees 15 with FY09. Initially, the cabinet’s work- agencies of state government. She previously was force was 2,444; it’s now 2,007 persons. president and CEO of the Kentucky Tourism We now have around 395 fewer employ- Council, a 600-member statewide association rep- ees in our agencies. resenting every sector of the travel industr y. Her We haven’t filled positions as people work included acting as an industr y advocate in leave. We’ve redistributed the workload the area of legislative and governmental relations, and, in most cases, have been able to as well as coordinating statewide conferences to manage doing what we have done all provide continuing education programs and mar- along with fewer employees. keting opportunities across the state. Prior to join- ing the Tourism Council, Sparrow was marketing EL: Hotels collect transient rent taxes. and public relations director for Shaker Village of How does that work? Pleasant Hill for nine years. Her career also MS: Actually there are different tax levels. includes positions as director of tourism for the Most communities – some counties and Louisville Convention and Visitors Bureau, execu- many cities – have a local transient rent tax. tive director of the Frankfort Tourist Commission, That’s a local option that allows local gov- and communications director for the Kentucky ernments to charge a 3 percent and up tax Derby Festival. She began her work in tourism on hotel room rentals. Jefferson County with the Kentucky Department of Public Informa- has the highest rent tax in the state, some- tion as a tour guide at the State Capitol. where in the range of 5 to 6 percent. The state Revenue Cabinet collects a 1 percent statewide lodging tax, and that’s a bit differ- time last year. We see some improvements ple aren’t buying as much, but they are ent; it is a tax on all hotel rooms, but it is in hotel occupancy levels. The tourism buying the better quality items. It’s a statewide and benefits ever y county industry is beginning to gradually pull out very good time to shop for Kentucky whether they have hotels or not. of this bad economy. Actually, hotel occu- crafts; the state-operated artist center in The cabinet allocates hotel rent tax dol- pancy rates – while they have declined in Berea is doing very well. lars to each of the state’s nine tourist Kentucky – did not decline as much as the regions. Last year, collections were $8.6 national average. EL: How much has the budget for the million. This year, we project revenues will The state parks’ occupancy rates Tourism, Arts and Heritage Cabinet decline to $8.2 million. Of that, $5.5 mil- declined less than the state’s overall been reduced? lion is placed in the cabinet’s tourism and hotel occupancy average. MS: Since the FY2008 budget went into marketing incentive program. It was Obviously, the economy and tourism effect, the cabinet has taken five budget known as the tourism matching funds pro- levels also affect the arts – our crafts- cuts. As a whole, the budget cut is 28 gram and matches local marketing funds men, artists and small businesses. Ken- percent. The cabinet still continues to to encourage tourism marketing. This tucky Crafts – the Market was recently provide the highest level of ser vice we fund is allocated on a county and regional held in Louisville and sales of Kentucky can under the circumstances. basis. A convention and visitors bureau
20 APRIL 2010 KYBIZ.COM • THE LANE REPORT April Lane 1-23JM.qk:Layout 1 4/2/10 2:24 PM Page 21
participating in a cooperating advertising Any person who holds a ticket to the Kentucky is a great deal in terms of program with the Department of Travel World Equestrian Games can go to the value for your tourism dollars. Out in the and Tourism could receive a match from Kentucky Experience at no extra charge. state, our attractions continue to hold their the state in an amount up to 90 percent of The pavilion is probably the most impres- own and in some cases generate some the ad costs being invested. sive that Kentucky has ever undertaken. I slight increases. Kentuckians are not travel- know that years ago Kentucky had a pres- ing as much and are staying closer to home EL: How is that money allocated? ence at the (1982) Knoxville World’s Fair and visiting our state’s museums and attrac- MS: There’s a formula. It’s based on and the (1996) Olympics in Atlanta, but tions. Where we’ve really seen the decline is population, collections and the eco- this is the largest undertaking of its kind with the business traveler. Businesses con- nomic impact of tourism within the that Kentucky Tourism has undertaken. tinue to book conventions, but the conven- region. The remainder of those funds It’s going to be really grand, and Kentucky tions don’t seem to have as many delegates. are used by the Department of Travel entertainers will present live performances and Tourism for its marketing budget. there as well. EL: Mike Cooper, commissioner of EL: Has the cabinet diverted marketing EL: How would you evaluate travel to the Department of dollars from the nine Kentucky tourism Kentucky during fiscal year 2009, and Travel, is a veteran regions to support the Alltech FEI 2010 what are trends for this fiscal year? in this cabinet. Has World Games (WEG)? MS: Kentucky’s statewide occupancy is he had to focus a MS: The cabinet will have a pavilion at the down 2.8 percent from last year, and lot of his time on WEG called The Kentucky Experience, revenue per available room is down 6.7 the Alltech 2010 and all nine regions of the state will be percent. Kentucky is faring much bet- FEI World Eques- participating. The Kentucky Department ter in comparison to national occu- trian Games? of Agriculture will be featuring Kentucky pancy levels. MS: Mike worked Mike Cooper Proud products. Our artisans and crafts- The revenue per available room as the assistant men will be there, and they will have Ken- nationally is down 16.7 percent. It’s a director of marketing for the Depart- tucky-made artwork. The Bourbon buyer’s market out there. Everybody is ment of Travel from the mid-’80s until industry and distillers will conduct Bour- looking for a deal, and everybody is plan- 2004 and came back with the Beshear bon tastings in that pavilion. ning their travel at the ver y last minute. administration as commissioner.
THE LANE REPORT • KYBIZ.COM APRIL 2010 21 April Lane 1-23JM.qk:Layout 1 4/2/10 2:24 PM Page 22
LANE ONE-ON-ONE
Staff photo Staff MS: Right now the huge park system. I still believe that good department is focusing government has a responsibility to provide on our homegrown mar- a park system for its citizens. The $30 mil- ket. With regional adver- lion general fund appropriations for parks tising, we’re marketing each year equates to around $7 for ever y closer to home. Our man, woman and child to have one of the resources are lean, and finest state park systems in the country. we are trying to do more The state parks also have significant eco- with less. nomic impact on the communities in which they are located. EL: Do you mainly sup- port regional marketing EL: What would you think about having with TV and social media? a small fee to visit a park; per haps $2 MS: Media is doing a mix for out-of-state visitors and $1 for Ken- – some television, radio tucky residents? and an all-new Web site MS: We’ve discussed that, and people’s that will go active within opinions differ. That’s one of the options the next four to six weeks. we’ve evaluated. First of all, traditionally The indoor arena at the Kentucky Horse Park Tourism marketing is changing rapidly. Kentucky state parks have been free to its was built for the World Equestrian Games but Social media are going to be the most citizens, so it would has already hosted and is booked for other events. important new media in tourism market- be difficult to make ing we’ve seen since electronic media. a change. Secondly, The World Games Foundation is really many of our parks taking the lead on the FEI World Games. EL: Gerry van der Meer, a respected have four or five The cabinet has a team coordinating the veteran in the hospitality industry, was ways you can enter. Kentucky Experience, and Mike has done recruited to the Department of Parks Knowing Kentuck- a lot of work on that. Mike’s really out from the Campbell House in Lexing- ians the way I do, there – all over the state. ton. How has his experience been help- we’ll always find a Hank Phillips is ful to Kentucky’s Parks? way to get in free. the new deputy com- MS: Superb. Gerry If we changed Lindy Casebier, missioner in travel. is one of the best to paid admission, deputy secretary Hank was the CEO respected hoteliers we’d have to build of the Tourism, Arts for the National in Kentucky. He entrance gates and and Heritage Council Tourism Association has added a level of hire people to staff them. By the time we (NTA) for 20 years professionalism did that we would have eliminated much in Lexington. We are and respect to the of any financial benefits from an admis- really pleased to parks department. sion fee. Also, the goodwill Kentucky parks have Hank on board I can’t say enough has created for 85 years could be lost. Hank Phillips because this is a about Gerry; he’s So these are the issues we have to con- huge task. Gerry van der Meer the hardest-work- sider. Our staff is looking at changing the We hope the Travel Department will be ing guy I know. model on how we do business. I really have re-named. The bill to do so is on the (legis- every faith that we’ll make our parks sound, lature’s) consent calendar. If approved, EL: Is your biggest issue that some of and my goal when I leave is for the parks this agency will be known as the Depart- the state parks’ hotels have a small num- system to be ready for the 21st century. ment of Travel and Tourism. Cheryl ber of units, which makes it virtually Hatcher also is in the department and impossible to cover operating overhead Agencies of the Kentucky director of sales. Actually, her primary and make a profit? Tourism, Arts & Heritage Cabinet focus right now is MS: Absolutely. People ask me all the • Department of Parks WEG, but she also time, “When will these parks turn a • Department of Travel works on group profit?” I want people to understand. Ken- • Fish & Wildlife Resources sales with our tucky has 52 state parks. Seventeen are • Frankfort Convention Complex tourism partners resorts: They have hotels, golf courses or • Governor’s School for the Arts all over the state. are on lakes. Thirty-five are historic sites • Kentucky Artisans Center at Berea Elizabeth and recreation parks; some have camp- • Kentucky Arts Council Chewning is the ground accommodations, many don’t. • Kentucky Center for the cabinet’s new mar- All of these parks are free to the pub- Performing Arts keting director. lic. Of the 7 million people who visit state • Kentucky Heritage Council She was a tourism parks every year, the majority only use that • Kentucky Historical Society Liz Chewning professional in which is free. It is not reasonable to expect • Kentucky Horse Park West Virginia. that 17 resort parks can support a system • Kentucky State Fair Board of parks that is widespread. • Creative Services EL: Has the Department of Travel initi- The cabinet has 45,000 acres of land to • Kentucky Humanities Council ated any new marketing efforts to boost watch over, 1,600 buildings to maintain • The Kentucky Sports Authority tourism in Kentucky? and around 2,000 employees. This is a
22 APRIL 2010 KYBIZ.COM • THE LANE REPORT April Lane 1-23JM.qk:Layout 1 4/2/10 2:24 PM Page 23
EL: Do our parks have preventative ticket is good for a whole day of activities. I nation of that event. I am ver y interested maintenance issues? suppose my biggest concern is marketing in making sure we do the communication MS: Yes. If there’s an area where park the event. There are special event tickets, that we need to get the word out to people funding is inadequate, it’s in preventive but otherwise you can go anywhere in the so that they will come. ■ maintenance. Often park facilities have park. There’s an equine exhibition there extensive deferred maintenance, and that will feature all the breeds of horses when funding is made available we and a trade show, “The Kentucky Experi- Ed Lane (edlane make a lot of improvements and just ence.” There will be a lot of things going @lanereport.com) “love the building to death.” Commis- on. It will be a day well worth the money . is chief executive of sioner Van Der Meer and I both agree I’m very impressed with the team at the Lane Consultants, that parks has to develop an ongoing 2010 World Games Foundation, and I am Inc. and publisher of annual system of preventive mainte- confident we will be ready for the event. The Lane Report. nance because it’s not always affordable I’m not concerned at all about the coordi- or feasible to go in and renovate ever y- thing at one time.
EL: The big event in 2010 will be the World Equestrian Games at the Kentucky Horse Park. How is this event progressing? MS: I’m on the executive committee of the World Games Foundation, and it’s coming along quite nicely. We’ve sold a little shy of 170,000 tickets at this point, and general admission tickets haven’t gone on sale yet. This is an exciting challenge for Kentucky, being that this is the first time the World Games have been in the United States. We think we know what to expect, but we don’t really know for sure. We are confident that the capital investments for the World Eques- trian Games will benefit Kentucky for years to come.
EL: Will room sales in cities like Louisville and Cincinnati be significant? MS: These cities will get their share of business from the World Games. Obvi- ously, Fayette and surrounding counties are going to do very well.
EL: Delta Air Lines recently announced restructuring of its domestic and inter- national service because of its merger with Northwest Airlines. Delta is also eliminating the Gr eater Cincin- nati/Northern Kentucky Airport as a hub and reducing flight accordingly. MS: The cabinet is disappointed to hear about what is going on at the Cincinnati International Airport. On a positive note, the cabinet, the World Games and Blue Grass Airport have been advised that Delta will be putting on additional flights into Lexington. Delta has already seen an increase in bookings and will add additional flights, most of which will likely be coming from Atlanta.
EL: What is your greatest concern regarding the 2010 World Games? MS: Making sure that everyone has an opportunity to come to the World Games and understands that a general admission April Lane 24-44JM.qk:Layout 1 4/2/10 2:57 PM Page 24
COVER STORY
This rendering envisions a planned new six-lane I-65 bridge, center foreground, that will twin with the existing Kennedy Bridge. This bridge, another several miles upriver at I-265 and a r ebuild of the I-65-75-71 Spaghetti Junction that is par t of the Ohio River Bridges Project will relieve a national transportation bottleneck between Gary, Ind., and Mobile, Ala.
The Bridges Coalition images Kentucky Bridges, National Impact
Enhanced Ohio River crossings will alleviate reconfigured Spaghetti Junction inter- change where Interstates 64, 65 and 71 U.S. transportation and commerce chokepoints collide near downtown. “That’s a project that is of national significance,” said Stan Lampe, presi- BY SEAN SLONE dent of Kentuckians for Better Trans- portation, a 32-year-old transportation advocacy organization based in EW Ohio River bridges with 12 additional lanes Louisville. “I-65 runs from Gar y, Ind., are expected to cost $4.1 billion and reshape the all the way down to Mobile, Ala., and future not only of Louisville and Southern Indi- that chokepoint, that congestion over Stan Lampe, president ana but a huge swath of the rest of the country, the Ohio River, doesn’t just affect peo- of Kentuckians for relieving a major chokepoint in one of the ple in Southern Indiana and Better Transportation Nnation’s key north-south corridors. Louisville-Jefferson County, Ky. It affects people who live in The Ohio River Bridges Project now being carried forward Gary. It affects people who live in Mobile. And that’s some- by a task force of Kentucky and Indiana officials will include a thing that a lot of people really don’t quite appreciate.” new bridge adjacent to the John F. Kennedy Bridge in down- And, of course, it affects Kentuckians. town Louisville that carries I-65 over the river, an East End I- “You don’t restrict the flow of commerce without affecting 265 bridge that will connect Prospect, Ky., to Utica, Ind., and a the health of the state,” said Kentucky Chamber of Commerce
24 APRIL 2010 KYBIZ.COM • THE LANE REPORT April Lane 24-44JM.qk:Layout 1 4/2/10 2:57 PM Page 25
President/CEO Dave Adkisson. “An analogy might be the restricted flow of blood through the heart. That restricted flow has consequences and no doubt Kentucky has been held back while that issue has been growing.” A chief chokepoint cause is that the Kennedy Bridge, built in the early ’60s, was designed for a daily traffic count of 85,000 vehicles but now sees closer to 140,000 vehicles, some 65 percent more than designed. Already well over capacity seven years ago when the bridges project was launched, the forecast is for Kennedy traffic to increase another 42 percent by 2025. To accommodate its growing traffic load, the Kennedy’s shoulder areas were converted to traffic lanes during the last decade, which made emer- gency access more difficult. The bridge as currently configured This rendering depicts the planned six-lane I-265 bridge acr oss the Ohio River does not meet safety standards, and the Federal Highway at Prospect, Ky., and Utica, Ind. Administration considers it structurally deficient – meaning it required maintenance and repair to stay in ser vice, which is Louisville Inc.-The Metro Chamber of Commerce. “We do not fairly common. want to have the infrastructure we have carry the burden going “The right people and structure are now in place to move forward of a growing area… We are a regional economy that quickly on the Ohio River Bridges Project,” said David W. Nick- needs to be connected across this river very effectively. It’s the lies, president of Nicklies Development of Louisville and chair- only way that we can continue to be a logistics hub for the man of the Bridges Coalition, a non-profit organization world… Second, there are over 56,000 jobs that will be created drawing from Kentucky’s and Indiana’s public and private sec- over the life of the project when we’re tors that advocates for the project. “Then we are on our way to able to move forward.” creating 56,000 new jobs through the construction phase Reagan believes the chokepoint has had alone. When the project is completed, our bridge and high- an impact on the ability of the Louisville way network can move goods and people safely and efficiently, area to attract new businesses and jobs. which is vital for future job growth in the Louisville region and “But more importantly the companies throughout Kentucky.” we (already) have are telling us it’s time to Ohio River Bridges Project plans are to convert the fix this,” he said. “Companies that are here Kennedy to six lanes for southbound traffic once a new six- have said ‘for us to stay here and to grow , lane downtown bridge is built to carr y northbound I-65 traf- we’ve got to have a great intermodal mobil- fic. The new East End bridge, also six lanes, will provide ity within the region and to other parts of Joe Reagan, president another cross-river link, connecting I-265’s Kentucky and Indi- the country and the world.’” and CEO of Greater ana segments for the first time, and diverting traffic and con- Reagan is a member of the Louisville- Louisville Inc. gestion away from downtown. Southern Indiana Bridges Authority, a 14- member panel appointed by Gov. Steve Beshear, Indiana Gov. Better logistics, more jobs Mitch Daniels and Louisville Mayor Jerry Abramson that began “We have not done anything to improve the cross river mobil- meeting in February to create the plan for financing, building ity in 45 years,” said Joe Reagan, president and CEO of Greater and operating the new bridge system.
Superstructure replacement and widening of the 81-year-old Milton (Ky.)-Madison (Ind.) Bridge across the Ohio River will begin this year and cost $131 million. The new bridge will open in 2012.
THE LANE REPORT • KYBIZ.COM APRIL 2010 25 April Lane 24-44JM.qk:Layout 1 4/2/10 2:57 PM Page 26
COVER STORY
Kentucky’s share of the project’s cost is estimated at $2.9 ana is of course no stranger to transportation public-private billion and Indiana’s share at $1.1 billion. Originally state and partnerships, having leased its Indiana Toll Road to the Aus- federal tax revenue were set to be used to fund the bridges. tralian/Spanish infrastructure firm Macquarie-Cintra for $3.8 But an escalating price tag and multiple delays prompted the billion in 2006. two states to consider other funding alternatives. In early The Bridges Authority hopes to complete its financing plan March, Indiana’s General Assembly authorized the possible for the project by the end of the year . Current plans call for use of a public-private partnership and tolling to fund the proj- the East End bridge to be open by 2013, the new downtown ect. Kentucky’s General Assembly last year deferred a decision bridge by 2019, and the reconfigured Spaghetti Junction by on the use of a private partner to the bi-state authority . Indi- 2024. But there remains hope that if new sources of revenue or private partners can be found, those timetables could be sped up and considerable construction costs could be saved. Kentucky’s Ohio River Bridges From west to east Other major Kentucky bridge crossings Outside the important I-65 corridor, there are other mega- BRIDGE NAME CITY/COUNTY project bridges around the state that transportation officials ROAD BUILT MOST RECENT REPAIR say need to be built and re-built in the coming years to further Cairo Wickliffe/Ballard facilitate mobility and commerce. Those projects are moving U.S. 51 1937 2008 forward, too. Irvin Cobb Paducah/McCracken “This is the most bridge building we’ve done since the U.S. 45 1929 2007 Earl Clements Morganfield/Union 1930s. We’re going to spend a lot of money on bridgebuild- KY 56 1956 2005 ing,” said Keith Todd, Kentucky Transportation Cabinet Dis- Bi-State Vietnam Gold Star Henderson/Henderson trict One & Two public information officer. U.S. 41 S 1966 2007 Lampe offered up a list of some of these crucial bridge Bi-State Vietnam Gold Star Henderson/Henderson crossings that are currently being redesigned to meet Ken- U.S. 41 N 1932 2007 tucky’s – and indeed the nation’s – future needs. Among them: Glover Cary Owensboro/Daviess • The Milton-Madison Bridge – Built in 1929, the bridge, U.S. 60 1940 1988 which connects Milton, Ky., to Madison, Ohio along U.S. 421 is William Natcher Owensboro/Daviess set to be replaced. In Februar y, Gov. Beshear announced the U.S. 231 2002 N/A project was awarded a $20 million federal Transportation George Rogers Clark Memorial Louisville/Jefferson Investment Generating Economic Recovery (TIGER) grant as I-65 1929 1993 part of the American Recover y and Reinvestment Act. In its John F. Kennedy Louisville/Jefferson current condition, the bridge is too narrow for present-day I-65 1964 2008 traffic needs and frequently needs repairs. Superstructure Milton Madison Milton/Trimble replacement cost is estimated at $131 million, to be split evenly U.S. 421 1929 2009 between Kentucky and Indiana. Beshear’s 2010-2016 Highway Carroll Cropper Burlington/Boone Plan provides $89.4 million for the project, more than enough I-275 1977 2001 for Kentucky’s share of the funding. The project is expected Brent Spence Covington/Kenton to create or preserve more than 1,400 jobs. Construction is I-75 1963 1991 expected to begin this summer with the new bridge open to Clay Wade Bailey Covington/Kenton U.S. 25 1974 2000 traffic in 2012. John Roebling Covington/Kenton • U.S. 68 Bridges across Kentucky Lake and Lake Barkley – KY 17 1867 2009 Both built in 1932 before Lake Barkley and Kentucky Lake Taylor Southgate Newport/Campbell even had been dammed, these bridges also are set for replace- U.S. 27 1995 1995 ment. Construction is slated to begin in 2011 at a cost of $350 Dan Beard Newport/Campbell million. “Those (current) bridges have 10-foot-wide lanes so I-471 S 1976 2004 commercial trucks can’t pass in opposite directions because Dan Beard Newport/Campbell their mirrors will hit,” Lampe said. “When you get that done, I-471 N 1976 2004 you’ll have four lanes from Mayfield and beyond on to Bowling Combs Hehl Brent/Campbell Green. [There will be] some major improvements to moving I-275 W 1979 2010 goods and services as a result of that.” Both bridges will take Combs Hehl Brent/Campbell about two years to complete. I-275 E 1979 2010 • George Rogers Clark Memorial (Ledbetter) Bridge – William Harsha Maysville/Mason Originally built in Paducah in 1931 (and not to be confused U.S. 62 2000 N/A with a similarly named bridge in Louisville), it’s now too nar- Simon Kenton Maysville/Mason row for the 8,500 vehicles that cross the Tennessee River each U.S. 62 1930 2002 day between Livingston and McCracken counties on U.S. 60. A Carl Perkins Portsmouth/Greenup new bridge being constructed upstream will be finished this KY 8 1987 N/A year at an estimated cost of $80 million. Ben Williamson Ashland/Boyd • Brent Spence Bridge – Due to capacity , sight distance and U.S. 235 1930 2008 Ashland 13th St. Ashland/Boyd safety concerns associated with its current configuration, this U.S. 23 1985 2005 Northern Kentucky bridge built in 1963 is considered functionally obsolete. At an estimated cost of $3 billion, its replacement – Source: Kentucky Transportation Cabinet sought but not funded – is on the order of cost of the Ohio River Bridges Project, although it is only a single bridge. That one
26 APRIL 2010 KYBIZ.COM • THE LANE REPORT April Lane 24-44JM.qk:Layout 1 4/2/10 2:57 PM Page 27
This rendering shows the design of the replacement bridge across Lake Barkley at U.S. 68. An identical bridge will cross Kentucky Lake. The pair of bridges will cost $350 million and replace the narrow current structures built in 1932. Construction for both is to begin in 2011 and take two years.
bridge, however, carries both Interstates 71 and 75 across the Owensboro’s east side. When completed, this will work with Ohio River between Northern Kentucky and Cincinnati. Origi- the new U.S. 231 north of the Natcher Bridge to create a new, nally designed for 80,000 to 85,000 vehicles a day, the bridge today 100-mile four-lane highway between I-64 in southern Indiana regularly sees twice that number. “It was designed to be three and I-65 near Bowling Green. We believe this new interstate lanes wide and have shoulders on both sides,” Lampe said. “They corridor connector will bring new growth to the region with took out the shoulders and made it a four-lane bridge, so there’s increased traffic and related opportunity.” traffic that goes through with no shoulders.” Kentucky Chamber of Commerce President Adkisson agreed. As Owensboro mayor from 1987 to 1995, he was instru- New bridges bring economic development mental in pushing for the bridge. To see what a new bridge can do for a region, consider the “The project is still unfolding,” he said. “There are indus- experiences of two communities in Kentucky – Maysville and tries that have located because they knew the bridge was going Owensboro – that have each seen recent construction of one to open in 2002. AK Steel located in southern Indiana across of these bridge megaprojects and that are now beginning to from Owensboro with a promise by Indiana to build a four - reap the rewards. lane road to the new bridge.” The William Harsha Bridge, which opened in 2001, con- The Owensboro-Henderson area is also expected to benefit nects Maysville with Aberdeen, Ohio, across the Ohio River from the construction of I-69, a seven-state, 2,600-mile corri- along U.S. 62. It’s just a few miles downstream from the his- dor sometimes called the NAFTA Superhighway due to its toric Simon Kenton Bridge, which was constructed in 1931. potential to assist in trade with Canada and Mexico. Named The construction of the new bridge allowed for the temporary one of six “Corridors of the Future” by the U.S. Department closure of the Kenton Bridge in 2003-2004 as a $5.7 million of Transportation in 2007, it will require a new Ohio River rehabilitation was completed. Now with both bridges open, bridge two miles east of Henderson that is expected to cost trucks can avoid a circuitous route through downtown $1.4 billion. Although preliminary environmental work ceased Maysville and take the wider, more truck-friendly Harsha in 2004 due to a lack of funding, Kentucky last year started Bridge across the river. updating portions of the Pennyrile, Western Kentucky and “Right now most of the heavy traffic goes to the new bridge, Purchase parkways to become part of the new interstate. Indi- and we’re hoping that our old bridge will last another 75 to ana is expected to complete 65 new miles of I-69 between 100 years,” said Maysville Mayor David Cartmell. Evansville and Indianapolis in the next two years. With the new bridge has come economic development as “We believe the progress being made in both Kentucky and well, according to the mayor. Indiana will build momentum for the I-69 bridge to be built “Where the bridge is located within probably two miles sooner than later,” Wassmer said via e-mail from Washington, from there, we have an industrial park and we’ve had two D.C., where he was lobbying on behalf of the project and other major plant expansions there since the bridge has been built,” infrastructure spending in March. he said. Despite all the success that bridge mega-projects promise, ana- The William H. Natcher Bridge, opened in 2002, connects lysts point out that ever y bridge is important to someone, espe- Owensboro with Rockport, Ind., along U.S. 231. It’s part of a cially if they use it to get to work or to get home on a daily basis. much larger project that will include a new 22-mile, four-lane Every bridge is also important to the overall transportation system. stretch of 231 from the bridge north to I-64. That 22-mile sec- “In the United States, we tend to focus on megaprojects in tion, built by the state of Indiana, is opening this fall, 10 years major urban areas,” Lampe said. “But there are bridge needs later than originally planned. in every county and they’re all going to improve commerce “That will be a major economic driver for western Kentucky and improve public health and safety.” ■ in the future,” said Jody Wassmer, president of the Owensboro Chamber of Commerce. “At the same time, work has begun Sean Slone is a transportation policy analyst at on a new 2.2-mile extension of the U.S. 60 bypass around the Council of State Governments in Lexington.
THE LANE REPORT • KYBIZ.COM APRIL 2010 27 April Lane 24-44JM.qk:Layout 1 4/2/10 2:57 PM Page 28
AUTO MANUFACTURING
Toyota team members assemble a vehicle March 18 in Georgetown at Toyota Motor Manufacturing Kentucky. The worker inside the vehicle is sitting on a device Kentucky team members suggested for easier access to their task.
enable us to respond faster here in North America to any concerns about our vehicles,” St. Angelo said via a news release March 25 announcing the North American Quality Task Force. “In keep- ing with (Toyota CEO) Akio Toyoda’s mandate, North America will have greater autonomy and play a critical role in decision making on recalls and other safety issues. “We are making fundamental Mark Green photos Mark changes in the way our company oper- ates in order to ensure that Toyota sets an even higher standard for vehicle safety and reliability, responsiveness to customers, and transparency with regu- lators,” St. Angelo said. Meanwhile, aggressive 0 percent financing and subsidized lease incentives Toyota launched in March were well Putting Recalls in received in the marketplace. Sales jumped 41 percent. Automotive News reported that Edmunds.com forecasts U.S. light vehicle sales for all makes for March will be the Rearview Mirror up 31 percent from a year ago. Toyota’s incentives lead the Toyota gives its top Kentucky executive St. Angelo way and its vehicles are selling strong, key quality control oversight role for company according to Carl Swope in Elizabeth- BY MARK GREEN town and T racy Farmer in Steve St. Angelo, Louisville, each of president whom sell a variety Toyota Motor OYOTA’S top Kentucky execu- Center in Hebron, investing a total of of lines of vehicles Manufacturing Kentucky tive has been assigned a central $5.5 billion in the commonwealth. Toy- at multiple Ken- role in putting the world’s lead- ota’s decision to locate in Kentucky led tucky dealerships. (See related story, Page 30) ing auto manufacturer’ s to a significant addition of jobs for sup- Barring another major safety-related image-denting recall woes in pliers and support businesses – some recall in the near future, Toyota appears Tthe rearview mirror. Steve St. Angelo, presi- 65,000 Kentuckians now work in sup- to be putting the organization-testing dent of Toyota Motor Manufacturing Ken- port of the auto industry. difficulties behind it. tucky and executive vice president of Toyota “In 2008, Toyota’s employment impact Motor Engineering & Manufacturing North on Kentucky’s economy, either directly or Distress in the Bluegrass America, is now also chief quality control indirectly, was an estimated 37,100 jobs, The 6,000-plus Toyota team members in officer for North America. generating approximately 2 percent of Georgetown were upset about cars they Kentucky’s business and government Kentucky’s total employment.” produced being among those recalled in sectors alike wish St. Angelo well – Toyota Beyond the private sector billions, January because of reported uncontrolled has a $3.9 billion annual impact on state Toyota’s presence generates large accelerations. Television news crews sud- GDP, according to Gov. Steve Beshear. amounts of occupational and property denly became regular visitors, and they “Toyota’s presence in Kentucky has a tax revenue for state and local govern- were not focusing their cameras on the 10 tremendous impact on the state’s econ- ments. Suffice it say, the last thing the J.D. Power and Associates Initial Quality omy,” said Beshear. “Since opening its state needs in a “jobless” economic recov- Study award banners hanging at TMMK, Georgetown manufacturing facility in ery is big trouble for the largest member the most of any car production site in the 1988, Toyota has also located its North of its automaker sector. United States. American manufacturing headquarters “The new organization will open the Among vehicles recalled in connec- in Erlanger and North American Parts lines of communication globally and tion with customer-frightening acceler-
28 APRIL 2010 KYBIZ.COM • THE LANE REPORT April Lane 24-44JM.qk:Layout 1 4/2/10 2:57 PM Page 29
Toyota Production in Kentucky ation complaints were 2007-2010 Cam- rys and 2005-2010 Avalons built on YEAR LINE 1 LINE 2 AVALON CAMRY1 SOLARA VENZA CAMRY2 TOTAL TMMK’s Line 1. There are two produc- 2006 254,483 249,405 100,014 358,545 41,077 4,252 503,888 tion lines in Georgetown; Camry, Camry 2007 261,737 252,853 76,186 358,078 28,479 51,847 514,590 Hybrid and Venza vehicles made on 2008 228,141 228,151 51,318 334,067 17,578 6,521 46,808 456,292 Line 2 were not recalled. 2009 163,104 185,133 27,513 225,524 0 75,896 19,304 348,237 1 Gas 2 Hybrid With media reports growing more and Source: Toyota Motor Manufacturing Kentucky more sensational and questions expand- ing to virtually all Toyota products, the company halted all production and sales zation, whether due to sheer size, cul- mation flow will play a significant role of its vehicles for a week as engineers, tural differences or that age-old fear for the new Toyota entities of which St. administrators and executives looked for about the fate of the messenger. Infor- Angelo is now a member. the root cause and extent of the fix. TMMK employees approached St. Angelo on the factory floor, expressing concern and asking what they could do, said Rick Hesterberg, the Georgetown- based assistant manager for external affairs for TEMA. “Our team members took this recall very personally,” Hesterberg said. Worry among workers and manage- ment who build the Camr y, Camry Hybrid, Avalon and Venza in Scott County rippled from the massive production facil- ity to much of Kentucky, the nation’s No. 3 auto manufacturing state. More than 90 of the state’s nearly 450 vehicle parts mak- ers count Toyota as a key customer. Toyota’s overall President Akio Toy- oda came to Kentucky Feb. 25, visiting with St. Angelo and the company’s team members in Georgetown a day after tes- tifying before Congress in Washington. He created the Special Committee for Global Quality the next week. Toyota officials took further steps in late March to improve information flow to key decision makers within their world- wide operation. Hesterberg said Toyoda himself said the organization was slow to see the problem it was having, and that made it slow to react Bad news can be a reluctant traveler up the chain of command of an organi-
Toyota Motor Manufacturing Kentucky in Georgetown.
THE LANE REPORT • KYBIZ.COM APRIL 2010 29 April Lane 24-44JM.qk:Layout 1 4/2/10 2:57 PM Page 30
AUTO MANUFACTURING
He will guide the implementation of Communication was key during the “They have to make a profit. We have regional improvements in concert with early days of the Toyota crisis. TMMK to make a profit,” Hesterberg the Special Committee for Global Quality and other company production facili- explained. “Obviously suppliers have to led by Toyoda. As chief quality officer for ties stay in close contact with suppliers, have success, too, or we can’t succeed.” North America, St. Angelo will serve with Hesterberg explained. Toyota execu- Ultimately, the acceleration problem counterparts from the other regions on tive, engineers and workers trade visits with the Georgetown-produced Toyotas Toyoda’s committee, which met for the with suppliers and share best practices was pinned down to a pedal being sup- first time on March 30 in Japan. to help keep costs down and improve plied to TMMK Line 1 by CTS Corp. in Each regional task force is specifically productivity. Open channels of com- Elkhart, Ind. Line 2 uses a pedal from charged with executing a six-point action munication had long been in exis- another supplier. plan outlined back on Feb. 5 by T oyoda. tence, headed by TMMK’s purchasing “It was a mechanical issue with that Its elements include improved quality department. part,” Hesterberg said. “It had nothing assurance; enhanced customer research; “We kept open lines of communication. to do with how a team member was strengthened quality management train- They were concerned,” Hesterberg said. assembling that part.” ■ ing; incorporation of best practices As with the company’s workers, Toy- through outside professionals; closer ota seeks a long-term relationship with Mark Green is editorial director cooperation with regulatory authorities; suppliers in which the benefits, financial of The Lane Report. and improved regional autonomy. and otherwise, flow both ways, he said. ([email protected])
March Car Sales Approach Pre-Recession Levels
AR sales are regaining momentum according to the The improvement has been less dra- trio of major Kentucky dealers The Lane Report matic for Paducah Ford Lincoln Mercury Cchecked with in late last month. In fact, March num- Mazda, according to Owner/President bers could rival those of “clunker” month last August. Larry Stovesand. But that’s because his “This month will speak volumes when the numbers come 27-year-old operation did not experience out,” said Carl Swope, who along with his brother Bob leads a significant falloff in sales during the the Swope Family of Dealerships, based in Elizabethtown. depth of the recession. “The preliminary reports are very encouraging.” “It was never that bad for me,” said Together, the Swopes’ father Bill and uncle Sam began Stovesand, who took over ownership of selling cars in 1952. Today the Swope Family of Dealerships his Paducah dealership in 1983 and and affiliated Sam Swope Group have 25 dealerships with 28 opened another in Nashville four years Larry Stovesand franchises in Hardin, Jefferson, Fayette and Madison coun- ago. Overall annual sales were up year President/Owner ties in Kentucky and Southern Indiana. over year in 2007, 2008 and 2009. Paducah Ford Lincoln Mercury Mazda “I join the majority who who expect steady improvement Why? “Who knows,” he said, “but I through the year,” Swope said. “March has been a pretty don’t look a gift horse in the mouth.” exciting month for us.” Farmer agreed with Swope’s assessment that March sales January and February are traditionally slower months, will rival those of last August when the federal Cash for especially so this year with extra harsh winter weather. Addi- Clunkers program revved up a moribund market. The tionally, Swope said he believes the media storm regarding clunker program, which provided Toyota recalls affected other brands, too – and he would vouchers of up to $4,500 when cus- know since the various Swopes sell Chr ysler, Dodge, Jeep, tomers traded in a wide range of older, Nissan, Toyota, Ford, Mitsubishi, Hyundai, Cadillac, Buick, low-gas-mileage vehicles on new cars, GMC, Infinity, Lexus, Honda, Acura, Toyota, BMW and was akin to the Christmas sales season Volvo. for retailers, Swope said. “Most dealers “I think the whole industry was in a funk last month (Feb- made their money in clunker month.” ruary) because of the Toyota situation,” he said. A major reason for the current sales Tracy Farmer owns the Oxmoor boost is the “serious set of incentives” Automotive Group of seven dealer- Toyota introduced in March to reinvig- ships centered on Shelbyville Road in orate its sales, prompting other makers Carl Swope to follow suit or be left behind. Buyers Louisville. They sell Toyota, Scion, President Ford, Lincoln, Mercur y, Isuzu, Swope Family obviously feel “Toyota still makes safe Hyundai and Mazda. of Dealerships cars despite all the media hysteria,” “We’re nearly back to where we were Swope said. before,” said Farmer. That means prior Toyota’s sales have been strong the past month, and it has to the financial crisis that hit in fall 2008, plenty of product available, Farmer said, suggesting other crippling credit operations and slam- vehicle producers “cut back perhaps too much.” Stovesand also said he is experiencing inventory difficul- Tracy Farmer, Owner ming the brakes on the economy and Oxmoor Automotive credit-sensitive car sales all over the ties with some vehicles. “I am short of big SUVs,” he said, Group United States. “and probably will be for the rest of the year.”— Mark Green
30 APRIL 2010 KYBIZ.COM • THE LANE REPORT April Lane 24-44JM.qk:Layout 1 4/2/10 2:57 PM Page 31 April Lane 24-44JM.qk:Layout 1 4/2/10 2:57 PM Page 32
HOTELS
Open since 2006, 21c Museum Hotel in Louisville Built in 1923, The Brown Hotel in Louisville combines The Seelbach Hilton in Louisville was built in 1905. is a 90-room hotel that features contemporary art old-world charm and contemporary luxury. One of the The historic hotel inspired author F. Scott Fitzgerald from living artists exhibited throughout its guest hotel’s restaurants, J. Graham’s Café, is said to be the to use The Seelbach as a backdrop for Tom and rooms, galleries and public space. originator of the legendary “Hot Brown.” Daisy Buchanan's wedding in The Great Gatsby. Luxury & Sophistication
The 90-room boutique hotel in down- Six Kentucky hotels rate one of AAA’s town Louisville features an art museum highest stamps of approval for service with style and award-winning restaurant Proof on Main. The art doesn’t stop in the museum – works are scattered through- BY FEOSHIA HENDERSON out the hotel and in the rooms. 21c is the only American museum dedicated exclusively to 21st-century art. IX of Kentucky’s hotels have great experience,” said Jon McFarland, Besides the unique accommoda- garnered the prestigious AAA general manager of The Seelbach. tions, the 21c approach to ser vice also Four Diamond Award 2010 for The ratings are based on member sets it apart. outstanding service, amenities feedback and the work of professional The hotel didn’t take too much of a and attention to detail. evaluators who assess hotels on a 27-point hit during the economic downtown, SThe award winners are: The Cincinnati system. And every rated hotel must meet Evans said, and has found a balance Marriott at RiverCenter (Covington), basic quality standards related to comfort, among varied travelers that keeps busi- Griffin Gate Marriott Resort (Lexing- hospitality and cleanliness. ness brisk. ton), 21c Museum Hotel (Louisville), The Though the hotel industry has faced “With our strong focus on art and Brown Hotel (Louisville), The Seelbach a slump like most other sectors of the the museum, we’re very fortunate to Hilton (Louisville) and the Marriott economy, these hotels have weathered have a mix of corporate and leisure trav- Louisville Downtown. the economic storm. And general man- elers,” Evans said. “What is so wonder- These hotels are among the finest in agers of the Four Diamond hotels said ful with art is that it’s drawing people as the country as measured by the AAA Dia- things are looking up this year. a destination in itself.” mond Rating Process, the premier hotel “We believe 2010 shows a lot of prom- The Brown Hotel (brownhotel.com) rating program in North America. It’s a ise with upcoming events like the is one of Louisville’s historic hotels, well-respected rating system of the mem- Breeder’s Cup. We look forward to see styled in classic English Renaissance ber-driven AAA (formerly the American many new faces as well as the return of architecture marked by a two-story lobby Automobile Association) travel, dining many loyal guests,” said Guy Genoud, with a hand-painted ceiling, marble and insurance company. The Diamond assistant general manager of The Brown. floors and carved mahogany furnishings. Ratings help members decide the type of 21c General Manager Clare Evans The Brown is often the landing place for lodging experience that best fits their agreed: “We’ve already witnessed a much people after a night at the adjacent travel needs, and 32,000 hotels through- bigger pickup as of last quarter. We ended Brown Theatre or Palace Theatre. out the United States, Canada, Mexico last year ahead of ‘08, and we are predict- The Brown continually looks to and the Caribbean have been rated in the ing growth this year over last.” improve service, a key to Four Diamond five-tiered AAA system. Now, take a closer look at the award success, said assistant General Manager “It gives the customer a level of con- winners: Genoud. fidence that you have a high service 21c Museum Hotel (21chotel.com) “Although we pride ourselves on level, and that you are going to get a is an innovative mix of lodging and art. having the very best accommodations
32 APRIL 2010 KYBIZ.COM • THE LANE REPORT April Lane 24-44JM.qk:Layout 1 4/2/10 2:57 PM Page 33
The Louisville Marriott features 616 hotel rooms The Cincinnati Marriott at RiverCenter is located Located near the Kentucky Horse Park, the Mar riott and suites and 50,000-s.f. of meeting space near next to the Northern Kentucky Convention Center Griffin Gate in Lexington has 409 guest r ooms, which Fourth Street Live, Slugger Field and Waterfront along the Ohio River in Covington, Ky., and overlook the rolling hills of the Bluegrass Region and Park in the heart of downtown Louisville. boasts great skyline views of downtown Cincinnati. the golf course that surrounds the hotel.
and amenities, we continue to work & Spa all are Marriots, each hotel has its tirelessly to improve them. We try to distinct service and style that sets it apart AAA Hotel Gemology anticipate the needs of our guests and from other hotels. strive to exceed their expectations,” The 591-room Louisville Marriott Here’s how the five-tiered rating sys- he said. Downtown (marriott.com/hotels/travel/ tem works, according to AAA: The Seelbach Hilton is a study in sdflm-louisville-marriott-downtown), has One Diamond: Typically appeal to contrasts (seelbachhilton.com), 25 suites and 20 meeting rooms. The hotel the budget-minded traveler. They describing itself as a place “where has two restaurants, Italian and American, provide essential, no-frills accom- European Charm Meets Southern Hos- and a Starbucks coffeehouse. It’s near modations. pitality” and which houses “Historical Churchill Downs, picturesque Waterfront Elegance with Today’s Modern Neces- Park and Fourth Street Live. The hotel has Two Diamond: Appeal to travelers sities.” The hotel, built in 1905, is two floors of concierge rooms, with a seeking more than the basic accom- home to a Five Diamond restaurant, lounge and VIP services. modations. There are modest The Oakroom. Recently, this historic The Louisville Marriott was the 2005 enhancements to overall physical hotel (on the National Register of His- winner of Marriott’s Full-Service Hotel attributes, design elements and toric Places) underwent a $12 million Opening of the Year, and that set the amenities. renovation, adding new furnishings, bar for excellent service, said General Three Diamond: Properties are multi- lighting and carpeting along with 37- Manager Michael Howerton. faceted with a distinguished style, inch high definition televisions and “The motto of hotel was identified including marked upgrades in the high-speed Internet access. as ‘Keep ’em Smiling,’ and it is really amenities and comfort level provided. “There was not a single upgrade the focus for everyone to walk out with Four Diamond: Upscale in all areas. made to The Seelbach Hilton without a memorable experience and remem- Accommodations are progressively painstaking attention to detail and the ber why they were in the hotel,” How- more refined and stylish. The physi- highest respect for the hotel’s historic erton said. cal attributes reflect an obvious integrity,” Jon McFarland, general man- The Cincinnati Marriott at River- enhanced quality throughout. ager, said of the renovation. “We knew Center (marriott.com/hotels/travel/ we were going to polish the building’ s cvgdr-cincinnati-marriott-at-rivercenter) Five Diamond: The ultimate in lux- façade but were not sure what to do is actually along the riverfront in Coving- ury and sophistication. Accommo- about the weather-worn original win- ton. The newly renovated hotel boasts dations are first class. dows. We consulted with local historical great skyline views of downtown Cincin- boards and were easily convinced that nati, and is just minutes from the Reds restoring the windows, rather than and Bengals professional sports stadiums. ington brings a bit of luxury and leisure to replacing them was best.” It also connects to the Northern Ken- horse country. The Griffin Gate, which has The hotel’s improvements coincide tucky Convention Center by skywalk and also been newly renovated, has a full-ser v- with an improvement in the hotel’s busi- is known as a premier destination spot for ice spa including facial and massage ser v- ness, and McFarland sees a bright 2010. business and corporate events in the ices and a steam room. The seven-floor “We have seen an uptick in the indi- Greater Cincinnati area. The 10 West hotel has 388 rooms, 21 suites and five vidual travel bookings, but we’re also restaurant, café and lounge offer foods, concierge levels. There’s a Rees Jones- designed 18-hole golf course, and babysit- seeing the group business coming back. drinks and coffee. The 14-floor hotel has ■ It appears at this point we are going to 321 rooms, two concierge levels and 29 ting services as well. have a better year in 2010,” he said. meeting rooms. Though Louisville Marriott Down- The Griffin Gate Marriott Resort & Spa Feoshia Henderson is a correspondent eached town, Cincinnati Marriott at River- hotel (marriott.com/hotels/travel/lexky- for The Lane Report. She can be r at [email protected]. Center and Griffin Gate Marriott Resort griffin-gate-marriott-resort-and-spa) in Lex-
THE LANE REPORT • KYBIZ.COM APRIL 2010 33 April Lane 24-44JM.qk:Layout 1 4/2/10 2:57 PM Page 34
RECREATION
tucky Tourism, Arts and Heritage Cabi- net officials estimated annual revenue at $153 million for the four-county Lake Cumberland Region prior to the drawdown. Three years into the project (expected to be complete in late 2012), damage to the local economy has been much less than feared but quite difficult for a few. Everyone seems to agree the biggest damage came from negative press, with rival out-of-state venues fan- ning the flames. Tourism eco- nomic figures for some individual counties were down from 2007 to At the state dock in 2008 but on the Jamestown, houseboat whole were up for rentals are down but the 10-county all other business is up during the past year. Southern Lakes and Rivers Region, said Gil Lawson, Gil Lawson, spokesman spokesman for the for the Tourism, Arts & Tourism, Arts & Heritage Cabinet Heritage Cabinet. “It’s a complicated formula that includes payroll, food, fuel, lodging, a Visitors Still number of factors,” Lawson said. “The total economic impact of tourism in those counties in 2008 was $253.8 mil- lion, up from $247.4 million in 2007.” Bill Jasper, president of Lake Cum- Making Waves berland State Dock in Jamestown, said his houseboat rental business has declined, but every other aspect had Out-of-state rivals’ claims of Lake Cumberland’s been growing. demise are greatly exaggerated “Our biggest problem wasn’t the drawdown. It was the negative press,” he said. “It was so widespread.” BY ANNE CHARLES DOOLIN Some surprising results “The reality is dif- ferent from the AROLYN Mounce, execu- line is 1,255 miles, nearly the 1,293-mile perception, ” said tive director of the Somer- length of the U.S. Pacific shore and far J.D. Hamilton, set-Pulaski Convention and longer than Florida’s 770 miles (exclud- president of Lee’s Visitors Bureau, said she is ing islands). Ford Marina asked sometimes if Lake The lake and Resort in Nancy, CCumberland, largest water impound- its recreation “but it’s hard to ment in the eastern United States since assets are a major recover from the early 1950s, is still dry. economic driver news that was car- Misinformation has run rampant for the entire ried on the BBC, J.D. Hamilton, since the water level was lowered in Jan- region, so lower- CBS News, and in president of Lee’s Ford uary 2007 for repair work on the W olf ing the lake for The New Y ork Marina in Nancy Creek Dam, she said. “We spent a lot of several years to Times. We almost money trying to negate the adverse 680 feet – typical need a rebranding since our image was advertising and information out there.” summer-winter severely damaged. Lake Cumberland, often called the pool range is 723- Carolyn Mounce, “Lake Cumberland is a huge eco- Houseboat Capital of the World, is the 690 feet – was a executive director nomic engine,” Hamilton said. “The largest U.S. lake by volume east of the serious concern of the Somerset-Pulaski Grand Canyon has four million visitors a Mississippi. At maximum fill 760 feet for everyone in Convention and year; Yellowstone Park 3.5 million. above sea level, its meandering shore- the area. Ken- Visitors Bureau Before the drawdown, Lake Cumber-
34 APRIL 2010 KYBIZ.COM • THE LANE REPORT April Lane 24-44JM.qk:Layout 1 4/2/10 2:57 PM Page 35
land had five million a year. Now it’s some marina operators. Many took a more like four million.” financial hit when their boats slips Some of the impacts on visitor num- became high and dry, and a few had to bers are not what one would expect, relocate entire operations. said Mike Wilson, deputy for project “We had to move every single slip management with the U.S. Army Corps [870 at Lee’s Ford],” said Hamilton. of Engineers, Nashville Division. “They all have sewer, water, electric, like “The first year, a small city.” the number (of Ed Slusser, who purchased Alligator visitors) actually Dock One in Russell Springs just six grew because folks months before the announcement, had were curious. It to move miles away from his original declined the year location. after that, but “We were 100 percent full at the since then we’ve time, but we’re at the head of the creek, seen some and the drawdown left half our deck on Although its level is lower for dam r epair, Lake increases,” he the bottom. It’s been an uphill battle, Cumberland continues to attract fleets of visitors. New shoreline beach areas are proving to be said. “There are a and the Corps has offered no monetary popular, and fishing has not been af fected. Mike Wilson, deputy number of vari- for project management help at all,” Slusser said. with the U.S. Army ables at play as “We had a slip there when I was speedboat race, received a great Corps of Engineers, well. growing up, and when I sold my busi- response and coverage. “ESPN2 filmed Nashville Division “Gas prices ness I bought the marina,” he said. “I it, and it’s been shown over and over. It shot up to $4 a couldn’t walk away. I had my whole life certainly showed the world we have gallon in 2007 and 2008, and then the savings invested.” Renamed Cave plenty of water,” said Mounce. The economy nosedived,” he said. “We’ve Springs, Slusser said his marina still has event returns June 4-6 this year. found that those factors tend to parts under construction. Another upside is that businesses increase visitors at projects near a major The Lake Cumberland Tourism/ Eco- and individuals have joined forces as populace, but show a bit of decrease at nomic Development Advisory Commit- groups to promote the region. areas that are more remote.” tee, formed a few months ago, is working “We have people on the local, state The drawdown did not affect fishing. with local, state and federal agencies to and federal levels all working It did create a shoreline beach in some improve tourism and economic develop- together,” said Hamilton. “We still have places. ment. The committee includes the U.S. a lot of work to do, but ever ybody has “The shoreline has turned out to be Army Corps of Engineers officials, Gov. come together.” a tremendous asset,” said Mounce of the Steve Beshear, and U.S. Reps. Harold “The Tourism Cabinet for the state Somerset-Pulaski CVB. “Hal” Rogers and Ed Whitfield. Their has been a tremendous asset in pro- “A lot of our customers will tell you plan makes recommendations for mar- moting our area,” said Mounce. “And they actually prefer it this way,” said keting, maintaining visitation levels, the corps has worked tirelessly to make Jasper in Jamestown. parking and other issues. the best of a situation that could have “The shoreline is more open to been horrible.” exploration now,” said Wilson. “And it’s New initiatives, new cooperation “It’s all about the lake,” said Jasper. given (corps personnel) the opportu- Marina operators and tourism organiza- “There’s nothing within 1,000 miles that nity to pick up additional debris. In tions are trying new marketing ideas can compete with this lake, in its cur- some ways, the lake is even more pris- and events as well. Many now have rent condition. It’s a gift, and people no tine than before.” “dock cams” on their Web sites, are host- longer take it for granted.” ■ ing parties and promoting their dining, Marina moved operation or are offering discounts on slip rental. Anne Charles Doolin is a correspondent On the other hand, the lower water The first Lake Cumberland Grand Prix for The Lane Report. She can be reached level created a serious problem for last May, an Offshore Super Series at [email protected]. April Lane 24-44JM.qk:Layout 1 4/2/10 2:57 PM Page 36
MARKETING
‘A FAILURE TO COMMUNICATE?’ nicate with them. If your audiences are consistently updated about your com- Six steps to taking your company to the next level pany, they help you spread your busi- ness message – and become your advocates. BY JOE LILLY • Showcase your successes – In a down economy, a successful business becomes a news story. Take opportuni- NE of my favorite movie lines else. With the economy suffering, I ties to tell the news media – and your comes from the classic “Cool need to make money to keep people other audiences – about new business, Hand Luke”: “What we’ve got employed. I don’t have time to stop contracts, a successful program, etc. Ohere is a failure to communicate.” what I’m doing to let others know • Create simple business messages – If Business owners and managers often what’s going on. I don’t have money to you had only 20 seconds to sell your com- make the mistake of failing to commu- market the company.” pany’s products or services to the country’s nicate, or they communicate the wrong It’s time to break through that tun- top CEO, what would you say? What makes messages. This is a mistake that will nel vision and position yourself for the you different or unique from your com- almost always costs you money. expected economic recovery. Here are petitors? You have to create those mes- Why? Good communication is good six steps you can take to improve com- sages. Then, you have to ensure they are marketing. Poor communication – or munications within your company: prominent on your marketing materials, none at all – leaves customers, employ- • Identify all of your audiences – It’s your Web site and in the minds of your ees, vendors and others in the dark a mistake to focus only on your cus- audiences. You have to be able to say you about you. That can hurt not only your tomers. Other important audiences are better than your competitor – and reputation but also your bottom line. include employees, investors, board back it up with your performance. The constant pressure of “staying in members, family and friends, vendors • Beef up your marketing plan – the black” can cause tunnel vision. You and suppliers, and local business and Admit it. When business slows down, make excuses: “It’s my company; I trade media. Make a list that spells out you normally cut the marketing budget know more about this than anyone each audience, plus how you commu- first. Then you’re surprised when busi- ness slows even further. Duh. To grow your business, invest in a comprehensive marketing program. It doesn’t have to break the bank, but it has to be targeted to your potential customers. • Pick low hanging fruit – Your existing customers should be a priority. Consider loyalty programs, special deals, perks and e-newsletters with coupons for customers who already know you. They’ll tell others about how great you are. • Recognize your limitations – You are an expert at running your company. How- ever, you are probably not a trained com- munications specialist. If you have a trained professional on staff, listen to him/her. If you don’t have someone on staff, contract with a professional to pro- vide recommendations. The present can be a time of business revival and recovery. You may have the best product or service, but if people don’t know about it, you won’t sell it. Don’t let others accuse your company of having “a failure to communicate.” ■
Joe Lilly is executive vice president of New West, a full-service marketing, public relations and advertising firm in Louisville.
36 APRIL 2010 KYBIZ.COM • THE LANE REPORT April Lane 24-44JM.qk:Layout 1 4/2/10 2:57 PM Page 37
ECONOMIC COMMENTARY
WASHINGTON JUST DOESN’T GET IT Politicians are delivering a fiscal product that no one wants
BY LAWRENCE KUDLOW
HE disconnect between Washington The so-called $85 billion jobs pro- and the rest of the country has never gram is not a jobs program at all. It is a been greater. Why can’t the political spending bill. Temporary tax credits to Tclass in the District of Columbia produce hire new workers have virtually no per- a fiscal product that voters, taxpayers and manent job-creating effect. In budget investors are willing to consume? terms, these kinds of temporary tax According to The Washington Post, vot- credits are scored as tax expenditures — ers want smaller government and fewer i.e., spending. Only a permanent reduc- government services by a large 58 percent tion in the marginal business tax rate to 38 percent margin. Pollster Scott Ras- has the incentive effect for long-run job mussen reveals that 61 percent of voters creation. Reducing the business tax rate believe tax cuts help the economy, that 59 makes firms more profitable after-tax. percent think tax cuts are a better job-cre- And it gives them more cash flow. Those ation tool than increased government incentives will work to expand invest- spending and that another 59 percent ment and jobs. believe higher deficits hurt the economy. And taxing capital is the worst idea of Rasmussen also reports that a full 83 all. That’s why the capital-gains tax must percent of Americans blame the deficit not be increased. Plus, raising the top two on the unwillingness of politicians to income tax brackets from 33 percent to 35 cut government spending. And get this: percent, and then from 35 percent to 40 In a whopper of a poll result, The New percent, thereby penalizing those who York Times reports that 75 percent of own about half of the small-business Americans dislike Congress. income, is a job-destroyer. This is why there’s a political revolt out Why Republicans are flirting with this there. Washington just doesn’t get it. terrible temporary small-business tax Inside the Beltway, Democrats are credit is beyond me. This is a moment for sending a profoundly pessimistic mes- the GOP to send a message that it is the sage that only government knows best. party of growth through across-the-board But out there in the heartland there is reductions in marginal tax rates –for every- an optimistic message that We the Peo- one. That includes large and small busi- ple know best. And that heartland opti- nesses, along with all individuals and mism will not be stopped. families. All producers and investors The future of the U.S. economy – should get lower tax rates. At a bare mini- including jobs, growth and the stock mum, Republicans should be fighting market – hangs in the balance. Govern- hard to extend the George W. Bush tax ment-controlled healthcare, with Senate cuts on the way to a longer -term goal of vote-purchasing and union special-inter- low-rate, flat-tax reform. est loopholes, is not the answer. Nor is a The time has come for our govern- $2 trillion tax hike on banks, multina- ment to get out of the way, allow the tional corporations, capital gains, inher- American people to prosper, create itance and successful upper-income wealth, build businesses and advance earners. Nor is a doubling of the pub- technology, and let the United States be licly held federal debt to $19 trillion, or the No. 1 country in the world from nearly 80 percent of gross domestic now until forever. ■ product. Nor is a federal spending ratio of 25 percent of the economy. Nor is a budget deficit at a 10 percent share of GDP for as far as the eye can see. Lawrence Kudlow is Politicians are delivering a fiscal CEO of Kudlow & product that no one in America wants. Co., an economic and It’s no wonder small businesses aren’t investment research hiring. Yes, there is a cyclical recover y firm in New York City. going on, but it is incomplete without the jobs. April Lane 24-44JM.qk:Layout 1 4/2/10 2:57 PM Page 38
SPOTLIGHT ON THE ARTS News briefs on cultural events around Kentucky compiled by Lori Meadows
Former Berea Movie Theater is New Venue Arts Events for Fine Art and Handcrafted Goods Around the State HE Folk Arts and Crafts Capital of Kentucky Kentucky Writers’ Day Celebration this month has a new galler y offering fine arts 10 a.m.-12 p.m., April 23 Tand crafts handcrafted by a number of talented The Capitol Rotunda, Frankfort and juried artists. A former Berea movie theater that artscouncil.ky.gov closed its doors in the 1980s is now reborn as The (502) 564-3757 Berea Center for the Arts (Berea-center-arts.com). Governor’s Derby Exhibition Gallery owner Sune Frederiksen bought the build- Visual arts on display in the Capitol ing two years ago and put it through a long renovation. 8 a.m.-12 p.m., April 26-May 10 It opened April 9. Frederiksen is also owner of the pop- Kentucky State Capitol, Frankfort ular Main Street Café restaurant on College Square in artscouncil.ky.gov Berea, which also features arts and crafts. (502) 564-3757 The newly renovated build- New Quilts from an Old Favorite: ing still contains the old Sunflower movie balcony, which has A sample of the ceramic art from the new Berea Center for the Arts. National Quilt Museum, Paducah become an intimate and func- 10 a.m.-5 p.m. Sunday-Tuesday tional space for performing 8 a.m.-6 p.m. Wednesday-Saturday arts, classes, workshops and seminars. Future plans including a April 15-May 25 pottery shop in the former coal cellar. quiltmuseum.org Berea Center of the Arts is located on Berea’s busiest street (270) 442-8856 next door to the public library, a short walk to either Old Town or College Square. Skilled local labor worded on the renova- Earth Day Celebrated tion. It is open Wednesday to Saturday; private showings are Natural Materials Jewelry by Marlon Obando Solano Sune Frederiksen available other days. Kentucky Artisan Center at Berea 10:30 a.m.-3:30 p.m., April 22 kentuckyartisancenter.ky.gov Kentucky Arts Council Awards Professional (859) 985-5448 Red River: The Narrative Works Development Grants to 10 State Artists of Edgar Tolson, Carl McKenzie, Earnest Patton, and Donny Tolson HE Kentucky Arts Council has awarded a total of $4,385 in Individual Artist Kentucky Folk Art Center, Morehead Professional Development grants to 10 Kentucky artists for the fourth quarter 9 a.m.-5 p.m. Monday-Saturday of fiscal year 2010. through June 1 T kentuckycenter.org The competitive matching grants of up to $500 have been awarded to: Nancy Allen, (502) 562-0100 writer, Knott County; Stacey Chinn, sculptor, Fayette County; Judy Kushner, fiber artist, Scott County; John Haywood, painter and musician, Knott County; Debra Lott, painter , Anne Frank: The Diary Jefferson County; Hunter Stamps, ceramicist, Fayette County; Jason Howard, writer, Madi- of a Young Girl son County; Lorinda Jones, musician, Hardin County; Gerald Tolson, musician, Jefferson The Historic State Theater, Elizabethtown County; and James Southard, photographer, Jefferson County. 8 p.m., April 16-17 The grants awarded include funding support for W eb site design, promotional 3 p.m., April 18 materials, production of audio and video work samples, travel to national confer- hardincountyplayhouse.com ences, exhibit preparation, and field work and research expenses. (270) 351-0577 Want to know more? For details about art and cultural Southern Arts Federation events and activities taking place in Kentucky, visit the Kentucky Arts Changes Its Name to South Arts Council Web site at artscouncil.ky.gov.
HE Southern Arts Federation (southarts.org) has changed its name to South Arts. The new name and logo reflect the exciting changes and new direc- tions detailed in the 2010-2016 strategic plan, Crafting the Future of the Arts in T Lori Meadows is the South. With this plan, the organization will expand its service to regions beyond executive director its current reach. South Arts’ contact information, including e-mail and web site of the Kentucky domains, will remain unchanged. Arts Council. South Arts is supported in part by the National Endowment for the Arts and the state arts agencies of its partner states: Alabama, Florida, Georgia, Kentucky, Louisiana, Mississippi, North Carolina, South Carolina and Tennessee.
38 APRIL 2010 KYBIZ.COM • THE LANE REPORT April Lane 24-44JM.qk:Layout 1 4/2/10 2:58 PM Page 39
THE LANE LIST
TOP TOURIST DESTINATIONS IN KENTUCKY Ranked by number of visitors in 2009 ATTRACTION WEB SITE VISITORS IN 2008 ADDRESS PHONE NUMBER Land Between The Lakes lbl.org 1,544,090 100 Van Morgan Drive, Golden Pond, KY 42211 (270) 924-2000 Cumberland Gap National Historical Park nps.gov/cuga 883,663 P.O. Box 1848, Middlesboro, KY 40965 (606) 248-2817 Kentucky Horse Park kyhorsepark.com 870,000 4089 Iron Works Parkway, Lexington, KY 40511 (859) 233-4303 Louisville Zoo louisvillezoo.com 835,807 1100 Trevilian Way, Louisville, KY 40213 (502) 459-2181 Keeneland Race Track Cumberland Falls State Resort Park parks.ky.gov 650,000+ 7351 Ky. Hwy. 90, Corbin, KY 40701 (800) 325-0063 Louisville Bats Baseball batsbaseball.com 612,525 401 E. Main St., Louisville, KY 40202 (502) 212-2287 Natural Bridge State Resort Park parks.ky.gov 600,000+ 2135 Natural Bridge Road, Slade, KY 40376 (800) 325-1710 Fort Boonesborough State Park parks.ky.gov 500,000+ 4375 Boonesborough Road, Richmond, KY 40475 (859) 527-3131 Kentucky Center for the Performing Arts kentuckycenter.org 473,709 501 W. Main St., Louisville, KY 40202 (502) 562-0100 Lake Barkley State Resort Park parks.ky.gov 450,000+ 3500 State Park Road, Cadiz, KY 42211 (800) 325-1708 Keeneland Race Track keeneland.com 439,966 4201 Versailles Road, Lexington, KY 40510 (800) 456-3412 Louisville Zoo Barren River Lake State Resort Park parks.ky.gov 411,000+ 1149 State Park Road, Lucas, KY 42156 (270) 646-2151 Lexington Legends Baseball lexingtonlegends.com 409,580 207 Legends Lane, Lexington, KY 40505 (859) 252-4487 Mammoth Cave National Park nps.gov/maca 403,095 1 Mammoth Cave Parkway (P.O. Box 7), Mammoth Cave, KY 42259 (270) 758-2180 The Creation Museum creationmuseum.org 307,000 2800 Bullittsburg Church Road, Petersburg, KY 41080 (888) 582-4253 Kentucky Derby Museum* derbymuseum.org 210,128 704 Central Ave., Louisville, KY 40208 (502) 637-1111 Louisville Slugger Museum & Factory sluggermuseum.com 207,703 800 W. Main St., Louisville, KY 40202 (877) 775-8443 My Old Kentucky Home State Park parks.ky.gov 100,000+ 501 E. Stephen Foster Ave., Bardstown, KY 40004 (502)348-3502 Cumberland Falls State Resort Park Churchill Downs churchilldowns.com 700 Central Ave., Louisville, KY 40208 (502) 636-4400 Louisville Science Center louisvillescience.org 727 W. Main St., Louisville, KY 40202 (800) 591-2203 Newport Aquarium newportaquarium.com One Aquarium Way, Newport, KY 41071 (859) 261-7444
* Number is for 2008; facility was closed the majority of 2009 due to flooding. + Estimate because visitors participating in hiking, boating, etc., are unable to be tracked.
Source: Individual attraction contacts, Web sites, Kentucky Department of Parks
My Old Kentucky Home State Park
THE LANE REPORT • KYBIZ.COM APRIL 2010 39 April Lane 24-44JM.qk:Layout 1 4/2/10 2:58 PM Page 40
EXPLORING KENTUCKY
the action up close and not from the nose- bleed section of a stadium. Two presenters sure to be crowd favorites are animal behaviorist Mark Peterson – featured on the Histor y Chan- nel’s Monster Quest – and his famous Dusty, who delights kids at numerous Ronald McDonald Houses across the country. For an hour daily, Dusty will do such tricks as flipping the lid on a toy box, choosing a toy and handing it to a child. In keeping with things all-equine, a portion of IEF’s proceeds will go to local, national and international charitable horse organizations. An international recipient is the Spanish Riding School in Vienna, where sturdy Lipizzaners have per- formed airs above the ground for 430 years. Recently, the Austrian government stopped funding the honored institution, which is now in need of financial support. For only the third time in histor y, these The Lexington Convention Center in downtown Lexington will ser ve as the host of the upcoming beloved horses will perform in the United International Equestrian Festival. States as a festival treat. The event’s producer, Horse Capital Productions, came about thanks to the All Thing Equine collaboration of Kimberly Eilers Brown, a former management consultant for Lexington prepares to host the International Equestrian Festival Price Waterhouse Coopers and competi- tive rider, and Anne Buchanan, an edu- BY KATHERINE TANDY BROWN cator and former field director of the Kentucky Equine Education Program (KEEP). A shared a passion for the horse S the Kentucky Horse Park gears Presentations range from entry-level industry has made a perfect skills combi- up for the FEI Alltech W orld information to clinician experts speaking nation, Brown says, and the festival holds AEquestrian Games (WEG) come about the highest levels of equine competi- true to Horse Capital Productions’ September, Lexington is busy rolling out tion. A focus on the local Thoroughbred model, which is to promote the horse the red carpet for all comers, whether industry includes talks on such topics as industry through large-scale education, horse aficionados, curious tourists or fun- “Behind the Scenes at the Kentucky entertainment and tourism. seeking locals. While plans are afoot for a Derby,” “The Life and Training of a “People are coming here for INTERNATIONAL raft of downtown happenings, the largest Young Thoroughbred” and “What EQUESTRIAN WEG,” said Brown, the com- activity takes place at the Lexington Con- It’s Like to Win the Derby.” FESTIVAL pany’s managing partner, “but vention Center from Sept. 25 through As part of the Kentucky Horse they also want to see, feel and Oct. 10 to parallel the 16-day WEG com- Council’s first-time owner seminar experience everything Kentucky petition schedule. series, horse trainer Julie Good- is famous for, from the Thor- Produced by Lexington-based Horse night, best-known for her award- oughbred industry to bourbon. Capital Productions LLC, the multi-mil- winning reality show, Horse Master, The festival provides access to a lion dollar International Equestrian Festi- appears daily for talks and demon- lot of those things and a terrific val (IEF) will fill a goodly portion of the strations. Named Equine Affaire’s Excep- shopping opportunity as well, all in a cli- structure’s 88,000 s.f. with a trade show fea- tional Equestrian Educator for 2008, mate-controlled venue.” turing 400 high-end equine-related ven- Goodnight has gleaned multidisciplinary “Our vision is the vision of a legacy,” dors, world-class educational seminars, expertise in dressage, racing, jumping, Brown said, “not just what happens for hands-on equine-related demonstrations, reining, driving and colt-starting during a two weeks in 2010.” live exhibits, and of course, food and shop- 25-year career in the horse industry. Look for updates as September ping. Private VIP parties and receptions A centerpiece for live interactive draws nigh at horsecapitalproduc- for events that fit IEF’s mission can take equine demonstrations, performances tions.com, horsecapitaltours.com or call advantage of 10,000 s.f. of dedicated hos- and exhibits is Polytrack Park, an arena (859) 223-2010. ■ pitality space. made from Polytrack, a high-performance, In order to accommodate WEG all-weather racetrack surface. In keeping Katherine Tandy Brown is a exhibitors, attendees and fans, the festi- with the festival motto of “Pet a horse, correspondent for The Lane Report. val runs from 1 until 9 p.m. daily , with touch a horse, watch a horse as it’s per- She can be reached wall-to-wall activities. forming a movement,” attendees get to see at [email protected].
40 APRIL 2010 KYBIZ.COM • THE LANE REPORT April Lane 24-44JM.qk:Layout 1 4/2/10 2:58 PM Page 41
Carrollton Upcoming Events across Kentucky May 7-8 goodies. Hours are 5 p.m.-midnight on (513) 300-1904 Friday, 8 a.m.-midnight on Saturday. kyscottishweekend.org
Big South Fork Scenic Railway General Butler State Resort Park’s Mother’s Day Ride annual Scottish weekend includes bag- 100 Henderson St. pipes and pipe bands, highland and Stearns country dancing, games, Celtic music, May 9 a British car show, Scottish vendors, (800) 462-5664 clans, border collies and more. bsfsry.com Mid-America Hound Show Moms ride half-price on the Big South Shaker Village of Pleasant Hill International Bar-B-Q Festival Fork Scenic Railway on this special day . 3501 Lexington Rd. Downtown Owensboro Ride the open-air rails into Big South Harrodsburg May 7-8 Fork National Park, with a layover in the May 8 (800) 489-1131 old mining town of Blue Heron, where (800) 734-5611 bbqfest.com visitors can learn about its past through shakervillageky.org oral histories and “ghost structures’ that Start salivating now in anticipation of the show where original buildings stood. More than 20 hunt clubs will show annual International Bar-B-Q Festival in Reservations are required for groups. some 200 dogs, primarily foxhounds, Owensboro, a town with a heritage of but also Bassett hounds, beagles and world-famous barbecue. In addition to Kentucky Scottish Weekend terriers. Judges will inspect the dogs, cook-offs, there’ll be entertainment, spe- General Butler State Resort Park and spectators can learn about the cial events and vendors with irresistible 1608 Hwy. 227 dogs being shown.
THE LANE REPORT • KYBIZ.COM APRIL 2010 41 April Lane 24-44JM.qk:Layout 1 4/2/10 2:58 PM Page 42
PASSING LANE Commentary on life in Kentucky
‘Peanuts’ Gaines is NSA Sheriff of Year
IFELONG Warren County resident Jerry “Peanuts” Gaines has been sheriff for 31 years. Prior to that, he was a Warren County magistrate, interim jailer and a Lmilitary policeman. Some public officials lose perspective over time and develop an attitude of ownership of the office they occupy , but to his great credit Gaines considers his position a sacred trust of the people. On June 28 in Anaheim, Calif., the 3,000-sheriff-strong National Sheriffs’ Associ- ation, dedicated to raising the level of professionalism among sheriffs, is recogniz- ing Gaines as the 2010 national Sheriff of the Year. “This honor goes to my department,” Gaines said. “W e have the best tax collection and 99.6 percent and we are a model county. This really is an honor not just for me, but for W arren County and Kentucky. It means we’re No. 1 in the United States!” Gaines is current president of the Kentucky Sheriffs’ Asso- ciation, which he also led in 1981-83, 1988 and 1994. He was NSA president in 2000-01, and has served in various executive and board roles with the state and national associations. In Warren County, he’s implemented youth education and “Peanuts” Gaines anti-drug programs that emphasize success over adversity. Among other accomplishments, he set an example of sound financial management that prompted legislation so it could be followed around the state. ‘Artistic Funk, Peanuts Gaines has achieved success by above all being ser vant of the people. Thank you for your service, sheriff. Gentlemanly Class’
O surprise to us, but Louisville Kentucky’s First Foray into Outer Space has been named to another national magazine’s list of the F you were watching NASA TV on March 27, N Best Places to Live in 2010. you saw a Terrier-Improved Malemute NASA Men’s Journal cited Louisville’s arts Irocket blast off from Wallops Flight Facility in scene, its coffee shops and stores – and Virginia carrying Frontier 1, a 4-pound spacecraft specifically touted Bardstown Road – designed and built by Kentucky Space. in its April issue, which hit newsstands It ejected from the launch vehicle successfully last month. Other cities named to the and went into space 167 miles above the Earth, its list include Minneapolis, Denver and planned trajectory soon bringing it back down to Nashville. burn up on re-entry into the atmosphere. However, “To some, it completed its mission of testing hardware and Louisville is just software systems to be flown on an orbital satellite Bourbon, base- called KentuckySat 1, scheduled to launch with the ball bats, and a NASA Glory Mission in November 2010. famous horse The March event was the first time Kentucky has race,” the article ever developed, built and successfully inserted a states. “To those free-flying craft into space. who know better, Kentucky Space is a nonprofit consortium involv- it’s artistic funk ing students and the resources of UK, Morehead State, and gentlemanly UofL, Western, Murray State, KCTCS, the Kentucky class. Packed with Space Grant Consortium and Belcan, with support Louisville Mayor eclectic coffee Jerry Abramson from the Kentucky Council on Postsecondary Educa- shops, thrift tion. Kentucky Science and Technology Corp. is man- stores, skate punks and bluegrass street aging partner. musicians, Bardstown Road is a slice of Students are involved in designing and develop- weirdness in the midst of an upscale ing educational, R&D and entrepreneurial space neighborhood. Bourbon’s reemer- platforms. Kentucky Space also recently formed a joint venture with NanoRacks LLC, gence as a sophisticated beverage a Houston-based aerospace company, to facilitate and undertake scientific research rather than redneck swill parallels the on the International Space Station. city’s cultural renaissance.” “This unique partnership among Kentucky’s higher education institutions, state gov- Mayor Jerry Abramson said ernment and private industry shows that the commonwealth is a bastion of high-tech, 21st- Louisville’s secret is out. century learning, as well as limitless economic opportunity,” said Gov. Steve Beshear. “Even Men’s Journal has discovered all Spread the word. Meanwhile, good luck in November! the possibilities in Louisville,” he said.
42 APRIL 2010 KYBIZ.COM • THE LANE REPORT April Lane 24-44JM.qk:Layout 1 4/2/10 4:14 PM Page 43
To the Editor Traffic Fatalities Fall E read with great interest your February 2010 arti- to 10-Year Low cle, “Into the Big Leagues.” Louisville businesses HE Kentucky Ware, indeed, fortunate to have a fine firm such as Office of Highway Fatalities Mountjoy Chilton Medley LLP resident in our city. My firm, Highway PricewaterhouseCoopers, recognizes the vital role account- T Year Fatalities Safety recently 2004 ...... 964 ing firms play in helping businesses large and small solve their released final statis- 1999 ...... 729 2005 ...... 985 problems. In today’s economy, more than ever, it is critical tics for 2009 show- 2000 ...... 823 2006 ...... 913 that businesses have a solid, steady advisor to turn to, and we ing 791 traffic 2001 ...... 843 2007 ...... 864 salute The Lane Report for showcasing the profession and fatalities last year, 35 2002 ...... 915 2008 ...... 826 for helping readers understand the critical nature of the fewer than in 2008 2003 ...... 931 2009 ...... 791 services the accounting profession provides. and the lowest total We do, however, take exception to one comment in the since 1999, when article implying that PwC has “retreated from many sec- the death toll was 729. Fatalities declined for the fourth consecu- ond-tier cities like Louisville.” With over 260 people serv- tive year. ing Kentucky-based clients from our Louisville, Lexington “The good news is that 35 fewer lives were lost,” Gov. Steve and Cincinnati offices, we have the breadth of resources Beshear said. “The bad news is that people are still needlessly needed to serve companies on the move. PwC has been dying on Kentucky highways. We will not rest until the number serving Kentucky businesses with distinction for over 80 is zero, because one fatality is one too many.” years. We audit over 70 percent of Kentucky’s Fortune Gov. Beshear’s Executive Committee on Highway Safety is 1000 public company revenues. We working to update and implement the state’s strategic highway have a legacy in Kentucky of commit- safety plan ted service and we intend to be there Of the 791 fatalities last year, 649 were in motor vehicles. Of for years to come. those, 61 percent were not buckled up and 20 percent involved alcohol. Motorcyclists accounted for 80 fatalities. More than Sincerely, 60 percent of those were not wearing helmets; 19 percent of Philip Gregory, Managing Partner fatal motorcycle crashes involved alcohol. PricewaterhouseCoopers LLC KOHS safety initiatives include an annual “Click It or Kentucky Practice Ticket” seat-belt campaign and “Over the Limit. Under Arrest” impaired driving campaign.
LexTran Reinstitutes CBD Trolley Service To Clarify AST month’s Lane List included a couple of typos Lwe’d like to fix. The presi- dent/CEO of Bank of Kentucky is Robert Zapp. The Kentucky Regional Manager/Lexington for Fifth Third Bank is Sam Barnes. Also, while our Largest Kentucky Banks list reports the market share and Kentucky deposits numbers that the FDIC compiles on a statewide basis, Fifth Third Bank operates sep- arate affiliates in Louisville and Lex- ington. Eastern, western and northern portions of the state are part of separate affiliates as well. Lastly, a photo illustration with last month’s Exploring Kentucky col- umn of a horse whose eye contained an image of the world actually belongs to this month’s Exploring Downtown passenger service known as the COLT returned to Lexington April 2 after a long absence. topic: the International Equestrian LexTran is operating two hybrid electric and thr ee diesel trolley vehicles on two routes – one along Main Festival at Lexington Center during and Vine streets from Thoroughbred to Triangle parks, and another along Upper and Limestone str eets the World Equestrian Games. connecting the University of Kentucky and Transylvania University.
THE LANE REPORT • KYBIZ.COM APRIL 2010 43 April Lane 24-44JM.qk:Layout 1 4/2/10 2:58 PM Page 44
KENTUCKY PEOPLE
CAMPBELLSVILLE: TAYLOR COUNTY BANK FRANKFORT: KY MORTGAGE REGULATOR HOLDS GRAND OPENING CELEBRATION ACHIEVES NATIONAL ACCREDITATION TaylorCounty Bank photo Kentucky State Government photo Kentucky State Government
State officials joined Gov. Steve Beshear to represent the Kentucky Department of Financial Institutions, which recently achieved national accreditation by the Conference of State Bank Supervisors (CSBS) and the American Association of Residential Mortgage Regulators (AARMR). Kentucky DFI is the thir d state The Taylor County Bank recently held grand opening festivities for a new mortgage regulator to achieve national accreditation. Attending the presenta- branch located in Campbellsville. Bank Chairman James C. Miller III and tion were (left to right) Public Protection Cabinet Secretary Robert D. Vance, President Henry E. Lee welcomed more than 100 guests, including business, President and CEO of CSBS Neil Milner, Gov. Steve Beshear and DFI civic and state leaders as well as bank customers. Commissioner Charles Vice.
LEXINGTON: ATTORNEY BILL LEAR IS LOUISVILLE: SEVEN NEW SHOPS NOW OPEN HONORED FOR COMMUNITY SERVICE AT LOUISVILLE INTERNATIONAL AIRPORT Paul Atkinson, Rockledge Photography & Design photo Photography& Design Paul Atkinson, Rockledge Louisville Airport photo Bill Lear (right), chairman of the board of directors for the law firm of Stoll Ribbon-cutting ceremonies were held last month for seven new shops at Keenon Ogden PLLC, was recently honored by Commerce Lexington for his Louisville International Airport. The new shops are operated by The Paradies impact in advancing the Lexington community. “Mr. Lear has known no Shops, the airport’s news and gift concessionaire, and include The New York boundaries in what he has given to this organization in ter ms of time, energy, Times Books and News, Louisville Slugger Shops, Chur chill Downs, CNBC resources and expertise over the last 25 years,” said Commer ce Lexington News Express, Heine Brothers To Go, Experience Kentucky, and Finish Line President Bob Quick (left). Over the years, Lear ser ved as chairman of all News. Attending the ribbon cutting were (left to right) Gregg Paradies, presi- three organizations that merged to form Commerce Lexington: The Greater dent/CEO of The Paradies Shops; Phil L ynch, chairman of the Louisville Lexington Chamber of Commerce, Lexington United and Lexington Regional Airport Authority Board; Louisville Mayor Jerry Abramson; and Partnership for Workforce Development. Kevin Flanery, president of Churchill Downs Racetrack.
44 APRIL 2010 KYBIZ.COM • THE LANE REPORT April Lane CoversJM.qk:Layout 1 4/2/10 3:04 PM Page 993 Business Law Government Access Healthcare Regulation Real Estate Litigation
in the healthcare business, you can’t afford slip-ups.
201 East Main Street, Suite 1000 Lexington, Kentucky 40507
(859) 231-8780 | www.mmlk.com THIS IS AN ADVERTISEMENT April Lane CoversJM.qk:Layout 1 4/2/10 3:04 PM Page 994 Page PM 3:04 4/2/10 1 CoversJM.qk:Layout Lane April