Amazon Fulfills Kentucky's Goal to Be World's Logistics

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President, University of Kentucky of University President, 201 E. Main St. Ste. 1402, Lexington KY 40507

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gravity of center industry’s retail shift could CVG at hub

Fulfillment kingpi ’s decision to build $1.5 billion Prime Air Prime billion $1.5 build to decision ’s kingpi Fulfillment

TO BE WORLD’S LOGISTICS LEADER LOGISTICS WORLD’S BE TO AMAZON FULFILLS KENTUCKY’S GOAL KENTUCKY’S FULFILLS AMAZON Our energies go to: offering more solar options for customers.

Opportunities are growing for customers who are interested in solar energy – from helping businesses install solar at their facilities to offering a subscription-based Solar Share program. Recognized as a top utility leader in the U.S. for economic development, LG&E and KU are committed to providing customers with a variety of energy options. Our energies go to serving you. lge-ku.com/solar

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201 East Main Street, Suite 900 Lexington, Kentucky 40507 (859) 231-8780 | www.mmlk.com 4/3/17 9:37AM DISRUPT THE DISRUPTORS

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e [dis-'r pt-she n] noun : a radical change in an industry, business strategy, etc., especially involving the introduction of George Lisa Peter Dr. Pearse a new product or service that Blankenship Bodell Diamandis Lyons Former Executive at Tesla Founder and CEO, futurethink Founder and Executive Founder and President, Alltech Motors, Apple Computer Chairman, XPRIZE Foundation creates a new market. and GAP Inc. and Singularity University

©2016 Random House Dictionary Boundless Potential Why Simple Wins A World of Abundance Realize Your Dreams In a world of constant What are the key rules In an age of finite Through Disruption change and fluctuation, of simplicity? Come resources, come learn Nothing will feed your what are the principles hear how you can how our most valuable hunger for making a and the practical steps escape complexity resource, human difference more than that will make the traps and focus on the innovation, has brought pursuing your dreams. difference between work that matters. us to where we are What can you do today your business being today and where it to go after your dreams? disrupted and your might take us tomorrow. business being the disruptor?

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April Lane 1-23.indd 2 4/3/17 9:37 AM DISRUPT THE DISRUPTORS

Disruptive ideas are coming from every direction. Welcome to ONE: The Alltech Ideas

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April Lane 1-23.indd 3 4/3/17 9:37 AM APRIL LThe ane Report 2017 Kentucky’s Business News Source For 32 Years Volume 32 Number 4

24 COVER STORY AMAZON FULFILLS KENTUCKY’S GOAL TO BE WORLD’S LOGISTICS LEADER Fulfillment kingpin’s decision to put $1.5 billion Prime Air hub at CVG could shift retail industry’s center of gravity

29 WOMEN WEAR HARD HATS TOO Construction remains mostly male, but female worker and manager ranks are a rising trend

32 CONSTRUCTION KEEPS VISITOR CASH FLOW STRONG Louisville and Lexington CVBs in midst of major facilities expansion; Northern Kentucky is laying its plans

36 LAKE CUMBERLAND TOURISM AT FULL POOL Region expects another high water mark for visitor numbers and spending in 2017

40 HOME SALES ARE BREAKING NEW GROUND With residential real estate finally back above pre-recession levels, demand for new construction builds

Departments 6 Perspective 44 Emerging Lane 8 Fast Lane 46 Spotlight on the Arts 16 Interstate Lane 47 Lane List 17 Kentucky Intelligencer 48 Exploring Kentucky 18 Corporate Moves 50 Passing Lane 19 On the Boards 52 Kentucky People 20 Lane One-on-One: Dr. Eli Capilouto President, University of Kentucky

On the Cover lanereport.com When Amazon, the world’s largest retail chan- Kentucky Business News Online nel, locates its first Air Prime hub at Cincinnati- Read up-to-the-minute Kentucky business news stories, Northern Kentucky International Airport, that current and archived copies of The Lane Report, $1.5 billion facility will be Kentucky’s third global Market Review, BG – A way of life, Next – Your Future After shipping hub, joining the UPS’s massive World- High School in Kentucky, Health Kentucky, Research Kentucky port in Louisville and the DHL Express Americas special reports, white papers and community profiles. Hub at CVG. Photo illustration by Faster Lane Paul Blodgett/pjb-marketing Email news bulletin Three or more times a week, the editors of The Lane Report publish Faster Lane – email bulletins of fast breaking and important Kentucky business and economic news. Visit lanereport.com to sign-up for this free, must-have, at-your-fingertips news service.

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April Lane 1-23.indd 5 4/3/17 9:37 AM LThe ane Report PERSPECTIVE Kentucky’s Business News Source for 32 Years EXECUTIVE EDITOR/VICE PRESIDENT lobbyists found guilty of bribery and Mark Green FREE PRESS SHOULD fraud in the wake of the “Boptrot” ASSOCIATE EDITOR NOT TAKE SIDES investigation. One of those ultimately Karen Baird Politicizing reporting will sully convicted was the speaker of the Ken- DIGITAL EDITOR tucky House of Representatives. Jonathan Miller history of dedicated journalists I was in my seat on the floor of the CREATIVE DIRECTOR House of Representatives on March 31, Jessica Merriman BY PAT FREIBERT 1992, when FBI agents with subpoenas in CREATIVE SERVICES hand started peeling off certain legisla- Stone Advisory tors and escorting them to adjacent Paul Blodgett offices for interviews. That was not a CORRESPONDENTS UR country’s founders recog- proud day for Kentucky, but it brought Michael Agin; Katherine Tandy Brown; nized the value of a “free press” about the birth of a strict Code of Ethics Russ Brown; Chris Clair; Shannon Clinton; and memorialized it with consti- for legislators, overseen by the Kentucky Kevin Gibson; Susan Gosselin; Robert Hadley; Otutional protection – and hurrah for Legislative Ethics Commission. The Task Lorie Hailey; Debra Gibson Isaacs; Kara Keeton; Abby Laub; Tim Mandell; Esther Marr; that. That guarantee carries with it an Force that recommended and developed Greg Paeth; Robin Roenker; Josh Shepherd; expectation that a free press, both print this code did so without the approval of Sean Slone; Katheran Wasson; and electronic, report responsibly by legislative leadership, some of whom Gary Wollenhaupt; Dawn Yankeelov informing citizens rather than propa- were targets of the investigation. Today PUBLISHER/CEO gandizing. In some cases, today’s media Kentucky’s ethics laws serve as the model Dick Kelly yields to the temptation to “take sides” for many other states that have followed ASSOCIATE PUBLISHER in political matters. A recent example Kentucky’s example. Donna Hodsdon was a three-day period in mid-March Melissa McGarry when nearly every mainstream network DIRECTOR OF BUSINESS OPERATIONS was dominated by reports that Presi- Nicole Conyers White dent Trump “abruptly” dismissed 46 MARKETING CONSULTANT federal U.S. attorneys. Curtiss Smith Federal attorneys are appointed by the CIRCULATION/IT currently serving president through his/ Josiah White her attorney general. Releasing those U.S. attorneys could hardly be considered FOUNDER “abrupt” since it occurred 53 days into the Ed Lane new presidency. The attorneys released had been appointed by the previous presi- SYNDICATED COLUMNS dent and, since they are not appointed Creators Syndicate for lifetime positions but rather serve at Do you remember the days when PRINTING & CIRCULATION SERVICES the pleasure of the current president, Americans considered “news reporting” Publishers Printing Co. their service concluded when the presi- publications in places like South Ameri- WEB MARKETING & PUBLISHING dent who appointed them was no longer can countries and Russia as propa- Able Engine in office. ganda organs? Our hope is that our IT SERVICES When a new administration takes media in the United States never dete- NetGain Technologies office, federal attorneys – like ambassa- riorates to the level that it “take sides” INTERNET SERVICES dors and many other presidential in political reporting. Media needs to QX.net appointees – have traditionally submit- inform, not manipulate, misrepresent Lane Communications Group ted their resignations as a matter of or “take sides” in its political coverage. is a member of procedure. If they do not submit their Many journalists of an earlier era, resignations, the president may release like Ernie Pyle and Edward R. Murrow, them and appoint his/her choices as were considered patriots and straight The Lane Report is published monthly by: replacements. Only one U.S. attorney shooters. They consistently reported to Lane Communications Group failed to resign, so he was released. Americans hard-nosed, fact-based news 201 East Main Street 14th Floor Reporters surely must know the proce- Lexington, KY 40507-2003 and not personal opinions. Personal [email protected] dure that presidential appointments opinions belong in editorials, but not For more information and end when a president is no longer in reported as news. Any attempts to mis- advertising rates contact: PHONE: 859-244-3500 office. Yet, the event was depicted as represent information do not bring some sort of wild departure from his- credit to the noble field of journalism. The annual subscription rate is $29. (Kentucky residents add $1.74 sales tax.) toric protocol by President Trump. Politicizing reporting will sully the his- Newsstand price is $4.50. In the early ’90s, President Clinton’s tory of so many dedicated journalists, Send check or money order to: clean sweep of federal prosecutors some of whom lost their lives reporting Circulation Manager resulted in releasing more than 90 from warfronts and untold disasters. The Lane Report 201 East Main Street 14th Floor attorneys – nearly twice the number Keep the good names sacred of those Lexington, Kentucky 40507-2003 released by President Trump in March. who practiced their craft with dedica- or go to lanereport.com/subscribe There was little attention or criticism tion and with honor. ■ The Lane Report corrects all significant errors that from most of the media at that time. are brought to the editors’ attention. One of the federal attorneys “fired” by © 2017 Lane Communications Group the Clinton Administration was Ken- Pat Freibert is a former Kentucky state All editorial material is fully protected and must not be representative from Lexington. She can reproduced in any manner without prior permission. tucky’s own fearless U.S. Attorney Karen Caldwell, who was wrapping up be reached at [email protected]. her prosecution of 21 legislators and

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April Lane 1-23.indd 7 4/3/17 9:37 AM FAST LANE A compilation of economic news from across Kentucky

ERLANGER: TOYOTA DONATES 183,000-S.F. LAB FOR USE AS STATE: KY PLACES 2ND IN BOONE PUBLIC SCHOOLS ADVANCED SKILLS INSTITUTE NATIONAL RANKINGS FOR

Toyota photo ECONOMIC DEVELOPMENT OYOTA is donating its 183,000-s.f. quality and production engineering laboratory in Erlanger ENTUCKY placed second nation- to the Boone County School System, which ally in economic development Tplans to develop a STEAM (science, technology, edu- projects per capita last year and cation, arts and math)-focused education center to Kfirst in the South-Central region in Site serve the Northern Kentucky/Greater Cincinnati Selection magazine’s annual Governor’s region. The new school, scheduled to be ready for Cup awards. students in the fall of 2019, will be called the Ignite It is the third consecutive year in Institute at Roebling Innovation Center. which Kentucky has placed first or sec- The name of the new Ignite Institute The public school will be managed by the Boone ond in the per-capita competition. at Roebling Innovation Center is County School System and will initially be open for Numerous Kentucky metropolitan and inspired by John A. Roebling, an grades 9 through 12, with a capacity to serve 1,000 stu- micropolitan regions also placed on top- internationally known engineer and dents. The district will own and operate the building, 10 lists for their economic development businessman who designed the the grounds and all facilities. achievements, including: the Northern distinctive suspension bridge that The school will be funded with both public school Kentucky/Cincinnati region, which spans the nearby Ohio River. dollars and, it is hoped, private support in order to serve ranked fifth among areas with popula- students from a diverse range of socioeconomic, demographic and geographic areas. tions exceeding 1 million; Lexington, Admission will be based on a student’s desire to learn in an environment where the which ranked fourth for communities unique skill sets required for 21st-century employment opportunities are the focus. with populations between 200,000 and 1 The facility will support other activities and is envisioned to be a collaborative million; and Bowling Green, Owensboro space for educators, a center for business engagement, a potential national hub for and Elizabethtown, which placed sec- STEAM teacher training, and an early childhood education center. ond, seventh and ninth, respectively, Toyota is in the process of transitioning its North American headquarters from among metropolitan areas with fewer Erlanger to Texas. The company’s final team member groups are scheduled to move than 200,000 people. from the lab building by the end of 2017. Site Selection, an Atlanta-based publi- cation, has awarded the Governor’s STATE: NEW APPRENTICESHIP PROGRAM PUTS KENTUCKY Cup annually since 1988 to the U.S. state with the most new and expanded INMATES ON THE PATH TO LEARNING A SKILLED TRADE corporate facilities as tracked by the HE Kentucky Labor Cabinet and the Conway Projects Database. Corporate Kentucky Justice and Public Safety real estate analysts regard the rankings Cabinet have collaborated on a new as an industry scoreboard. The maga- Tapprenticeship pilot project that works to match zine’s circulation reaches 48,000 corpo- prison inmates and juvenile offenders with rate site-selection executives. skilled jobs as they re-enter society. For inclusion in the magazine’s data- The Justice to Journeyman program will base, qualifying projects must meet one place inmates on track to earn a nationally recog- or more of the following criteria: a mini- nized journeyman credential in a skilled trade, The new Justice to Journeyman program mum capital investment of $1 million; starting with training they receive inside Kentucky will give Kentucky inmates the opportunity 20 or more new jobs created; and 20,000 to learn a skilled trade such as welding, so prisons. The pilot project will initially offer appren- or more square feet of new space. that they have a marketable skill when they Last year, Kentucky announced more ticeship opportunities in three adult prisons and are released from prison. four juvenile justice facilities, with current pro- than 310 new location and expansion grams including: an electrical program, welding, carpentry, telecommunications, projects that are expected to create masonry and building maintenance, depending on the facility. To receive a journeyman more than 16,000 jobs and over $3.1 bil- certificate, inmates and youth must complete 2,000 to 8,000 hours of on-the-job training lion in investment. and 144 annual classroom hours of instruction, dependent on the type of trade. The program will also network inmates with employers in the private sector who have agreed to consider former felons when hiring for jobs. So far, three organizations have agreed to participate in the initiative, including Amteck, an electrical contracting firm headquartered in Lexington; the United Association of Plumbers, Pipe- We want to know what’s going on (Local 502) in Louisville; and the fitters & Service Technicians Associated If you have news Chapter of Indiana/Kentucky. at your company! Builders & Contractors to share with Kentucky’s business Although the Kentucky Department of Corrections and the Kentucky Depart- ment of Juvenile Justice have provided skills training for years, Justice to Journey- community, please forward your man offers a more tailored career pathway for inmates and juvenile offenders while press releases and photos/logos/ also addressing the need for skilled labor. graphics to editorial@lanereport. Studies show that steady employment remains a key factor in helping felons com. In order to reproduce well, avoid new crimes and transition back into the community. A 2008 study from the images must be large enough to Safer Foundation, a national not-for-profit that specializes in reentry, found that one publish in high resolution (300 dpi). year of employment decreases the three-year recidivism rate to 16 percent, far lower than the 52 percent rate for all inmates in the study.

8 APRIL 2017 LANEREPORT.COM • THE LANE REPORT

April Lane 1-23.indd 8 4/3/17 9:37 AM STATE: TEACHERS WILL LEARN TO LINK BUSINESS BRIEFS CLASSWORK TO MANUFACTURING SKILLS CYNTHIANA new pilot program is being rolled out that offers teach- ■ Harrison Memorial Hospital has become the first hospital in the state to ers throughout Kentucky the opportunity to learn how completely implement Purgenix technology in all areas of its facility. Pur- to connect classroom learning to what takes place in a genix is a Kentucky-based company that specializes in technology to disin- Amodern manufacturing environment. fect the air, which significantly reduces the risk of airborne hospital-acquired The statewide pilot program infections. The Purgenix technology installment is part of a multi-million developed by Lightweight Inno- dollar expansion and renovation at HMH that also included the addition of (LIFT) a new 20-bed medical/surgical floor featuring private patient rooms and vations for Tomorrow bathrooms and a new specialty clinic area. and the Kentucky Federation for Advanced Manufacturing ERLANGER Education (KY FAME) will provide externships that link up to ■ The Cincinnati/ 135 teachers and instructors with local manufacturers, giving Northern Kentucky them with the opportunity to learn how technical and academic International Airport course content is used in a real-world manufacturing setting. The (CVG) has been teacher teams – consisting of both technical and academic named as the World’s Best Airport Serving instructors – spend up to five days in partnership with an area 5-10 Million Passen- manufacturing business, learning about job and career opportu- gers and as the Best nities and requirements; how classroom learning is applied in the Regional Airport in workplace; and how to apply the manufacturing experience back North America in the into the classroom. The business partners then assist teachers in World Airport Awards. understanding how to connect manufacturing practices to the The World Airport content standards they are required to teach students in their Awards are determined by customers voting in the industry’s largest annual global airport customer satisfaction survey. The Skytrax World respective courses. Airport Survey is produced independent of any airport control or “Connecting educators to industry is essential to our input, thereby producing an impartial benchmark of quality. efforts to ensure the workforce has the skills and abilities to work on the advanced lightweighting technologies and pro- FLORENCE cesses in use today,” said LIFT Education and Workforce ■ Cincinnati-based Kroger Inc. has purchased Park 536, a speculative Development Director Emily DeRocco. “KYFAME, its partners industrial building in Florence, for $34 million and plans to invest and the University of Kentucky Department of Education another $26 million to develop the 674,000-s.f. space into an ambient distribution center. The new center, which is slated to open later this have the necessary tools and broad reach across the state to year, will primarily be used as a replenishment center servicing Kroger’s help us engage teachers and touch as many students as possi- direct-to-store distribution centers across the eastern half of the coun- ble, who become better prepared to pursue a career in try. The facility will create nearly 100 new jobs. advanced manufacturing.” FRANKFORT ■ Kentucky State University and the University of Louisville have COVINGTON: WORK STARTS IN MAY THAT collaborated on a new degree program that allows KSU undergraduates majoring in math to study seven semesters at KSU and three semesters WILL REOPEN RIVERFRONT TO PUBLIC at UofL, earning a bachelor of arts or bachelor of science (BA/BS) in math at KSU and a master of science (MS) in biostatistics from UofL. HE City of Covington has Students benefit by completing six years of study in five years. “The approved an order awarding degree collaborative helps to fulfill the need of quantitatively trained the Riverfront Commons professionals who are always in demand in the pharmaceutical, bio- TProject construction bid to medical and insurance industries, as well as in government and aca- Sune- sis Construction. demia,” said Craig Blakely, dean of the UofL School of Public Health The bid awards $1,280,480 to and Information Sciences. “We plan to connect these students to state industries via practicum and internship opportunities.” Ohio-based Sunesis to begin the construction of pieces of the River- Artist rendering of Northern HEBRON Kentucky’s Riverfront front Commons project in the ■ NetRush, a Washington-based digital retail agency that manages over 30 Commons Project. Northern Kentucky river cities of brands on the Amazon marketplace, is moving its processing facility to a Ludlow, Newport and Covington. 70,000-s.f. location in Hebron. The new space will give the company five Covington’s current plan for Riverfront Commons is times the floor space of its current location in Erlanger, allowing the com- divided into two phases. Phase 1 includes the construction of pany to significantly increase the volume and rate of processing goods. the West Walk, an 8-foot-wide multimodel path located along HIGHLAND HEIGHTS the river side of the levee. Phase 2 will feature the plaza por- ■ General Cable Corp., a Highland Heights-based company that is one tion of the Riverfront Commons project and will allow conve- of the world’s largest wire and cable manufacturers, has expanded its High- nient riverfront access to the public. land Heights Technology Center with a new fiber-optic cable-testing The city worked with Human Nature and Woolpert Inc. to lab. With the expansion, the develop a variety of amenity enhancements for the project that center now has the capability to will attract visitors to the Riverfront and create a regional hub for test cables from each of the company’s core businesses, civic gatherings. Potential enhancements include recreational which include industrial, con- amenities, water features, zip lines, river access for water sports struction and specialty, utility and communications. The Highland Heights and activities, event and gathering areas, and artistic features. center, one of General Cable’s four research and development labs in the Construction is expected to start as early as May and be United States, also features an analytical lab used for product support, completed within the year. including chemical analysis and microscopy.

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BUSINESS BRIEFS LOUISVILLE: CITY-SPONSORED PROGRAM TO HELP COMPANIES TRAIN, RETAIN TALENT JACKSON OUISVILLE has launched a program that is working ■ The Appalachian Regional Commission has awarded $1.5 million grant to Hazard Community and Technical College that will be used directly with the city’s companies and organizations to to construct a 14,700-s.f. intergenerational training center at HCTC’s encourage their employees to return to college and com- Lees College Campus in Jackson. The facility will provide job training Lplete a degree. and credentialing courses focused around four emerging regional “With today’s low unemployment rates, companies are career clusters: information technology, telemedicine and health sci- in a fierce battle to attract and retain talented employees,” ences, mechatronics, and eco-tourism/small business development. said Louisville Mayor Greg Fischer. “Degrees Work offers Eastern Kentucky Concentrated Employment Inc. and the Ken- tucky Career Center will promote and market the program to out-of- those companies an affordable way school youth and displaced and underemployed workers impacted by to help more of their employees the decline in the coal industry. The project will serve a seven-county go back to college to earn two-year area in southeastern Kentucky, and will train 295 dislocated workers and four-year degrees – increasing and credential 228 students over the life of the award. retention and employee engagement while adding skills to their LAGRANGE teams.” ■ Cedar Lake Inc., one of the region’s largest nonprofit care providers for adults with intellec- The Degrees Work program tual and development disabilities, has opened brings “college coaches” to an two homes in LaGrange that offer high-intensity employer’s workplace. The coaches medical care in a neighborhood setting. The provide one-to-one support for new homes, located in LaGrange’s Sycamore employees, helping them find and enroll in a flexible degree Run neighborhood, are the first of their kind in program that matches their lifestyle, finances and career Kentucky. Each home houses four adults and goals; find ways to pay for college; and ensure they receive provides 24-hour nursing care, therapeutic services, and behavior and psychological support in a home environment credit for prior learning, including credit transfers. rather than an institutional setting. The program has a formal partnership with seven area colleges and universities: Bellarmine University, Indiana Uni- LEXINGTON versity Southeast, Ivy Tech Community College, ■ KentuckyOne Health Cancer Care at Saint Joseph Hospital in Jefferson Community & Technical College, Spalding Lexington has invested $3 million in radiation oncology technology to University, Sullivan University and the University of shorten cancer treatment time, improve patient comfort and reduce side . Each of the schools have assigned a staff member effects. The centerpiece of the investment is a Versa HD accelerator, which Louisville provides increased flexibility to treat a broad spectrum of tumors through- to work with Degrees Work clients to make sure the return- out the body and enables the treatment of highly complex cases that ing-to-college process is as smooth as possible, including pri- require extreme precision to protect other critical organs and tissue. The ority admission and waived application fees. result is faster treatments and potentially shorter treatment schedules. “Companies in today’s increasingly competitive global

Neil Sulier/Ron Morrow photo marketplace are looking for higher-skilled and educated ■ A new event venue has workers as never before,” said Michael Gritton, executive opened in the Venues of director of KentuckianaWorks, the workforce development The Grand Reserve, located in Lexington’s his- board for the Louisville area. “There’s no better way to com- toric downtown Distillery pete than to take an existing employee who knows your com- District. Distillery Square pany and give them the knowledge and confidence boost that offers 15,000 s.f. of space comes with moving up educationally.” that can accommodate groups of 200 on up to 1,600 guests. The space – OUR LADY OF PEACE OPENS which has a rustic feel, with LOUISVILLE: an abundance of exposed CLINIC TO ADDRESS OPIOID ADDICTION brick, oak wood and corrugated metal – is also home to the Distillery Market, an indoor market warehouse held the third Friday of every UR Lady of Peace, part of the KentuckyOne Health month. The Venues of The Grand Reserve also has four other event system, has opened a new clinic aimed at addressing spaces designed to hold groups of varying sizes. the growing number of people dealing with opioid Oaddiction. LEXINGTON/LOUISVILLE The clinic will dispense Vivitrol (naltrexone) to those ■ Malone Workforce Solutions, a recruiting company headquartered in Louisville, has acquired OmniSource Staffing of Lexington for an addicted to heroin, other opioid drugs and alcohol. Vivitrol undisclosed sum. With the addition of OmniSource, Malone will have blocks the pleasurable effects of alcohol and opioids, reduces 47 offices throughout 14 states, servicing clients in more than 40 states. cravings and eliminates the ability to get drunk or high rather According to Tim Malone, co-owner of Malone Solutions, the acquisi- than only alleviating withdrawing symptoms. The treatment tion will grow Malone’s estimated annual revenue to over $170 million. can help prevent relapse to opioid dependence, allowing

Creation Gardens photo patients to focus on counseling. LOUISVILLE The injection clinic will also help patients who suffer from ■ Creation Gardens Inc., a Louisville-based food distributor, has expanded its operations in Ohio schizoaffective disorders who are not compliant with their with the acquisition of Lasita & Sons Produce, a medication therapy. Cincinnati company that has been in operation for According to KentuckyOne Health, the Our Lady of nearly a century. The acquisition provides Creation Peace clinic is the first licensed retail pharmacy located in a Gardens with a distribution hub in Ohio and behavioral health care institute. The clinic is intended to expands its footprint there. Creation Gardens serves integrate pharmacy practice with behavioral health special- more than 2,500 restaurants, hotels and other food- service companies throughout Kentucky, Ohio, ists, and will be staffed with two pharmacists and a medica- Indiana and Tennessee. tion access coordinator.

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BUSINESS BRIEFS MURRAY: INNOVATIVE PROGRAM HELPS MSU MEET DEMAND FOR STEM GRADS LOUISVILLE Grindmaster-Cecilware photo ■ Appliance manufacturer Electrolux has acquired URRAY State Grindmaster-Cecilware, a Louisville-based com- University is see- pany that is a leading manufacturer of hot, cold and ing a tremendous frozen-beverage dispensing equipment sold under Mresponse to an innovative the brands of Grindmaster, Cecilware, Crathco and engineering program American Metal Ware. The acquisition of Grind- that brings together the master-Cecilware, which reported net 2016 sales of university’s engineer- more than $65 million, broadens Electrolux’s offering, engineering technol- Murray State University is celebrating ing in its food service business and will increase the success of its innovative Institute of access to the U.S. market for Sweden-based Electro- ogy, engineering graphics and design, physics Engineering, which was launched as a lux. Grindmaster-Cecilware currently has approxi- pilot project in 2014. The announcement mately 200 employees between its two manufacturing facilities in and telecommunications comes just as a new $35 million, Louisville and Rayong, Thailand. The cash consideration for the trans- programs into a single 85,000-s.f. facility to house the Institute action totaled approximately $108 million. academic unit. of Engineering nears completion. Launched as a pilot ■ Arvato, a Germany-based business-process outsourcing company, has expanded its presence in Louisville with the opening of a new 650,000- project in 2014, MSU’s Institute of Engineering is the first s.f. distribution center. The new facility is expected to have approxi- in the commonwealth to offer such a broad spectrum of engi- mately 225 employees in its first year. Arvato currently employs neering and related STEM (science, technology, engineering approximately 150 at its 160,000-s.f. multi-industry distribution center and math) programs under a cooperative umbrella. near the I-65/I-265 interchange on Louisville’s south side. Over the three-year pilot period, the total enrollments for programs in the Institute of Engineering have increased by 24 ■ The University of Louisville, Indiana University and Missouri Uni- percent. Engineering enrollment has grown by an impressive versity of Science and Technology have been awarded $225,000 from the National Science Foundation for a pilot program aimed at helping 65 percent, with engineering technology enrollments increas- women and minority innovators improve their success in securing money ing by 27 percent. Engineering graphics and design has to commercialize their inventions. Roy Keynton, UofL’s director of increased by 29 percent, while the statewide Program of Dis- research initiatives, will serve as lead investigator of the program, called tinction in telecommunication systems management has AWARE: ACCESS: Building Innovation Capacity through Diversity. Accord- shown strong student subscription as well. ing to the U.S. Small Business Administration, woman- and minority- The growth of these high-demand STEM programs comes owned small businesses receive less than 16 percent of federal grants just as a new $35 million, 85,000-s.f. facility to house the Insti- (SBIR/STTR) to move their research and technology to the marketplace. tute of Engineering nears completion. Classes will begin in ■ Louisville-based Yum! Brands, the parent the new facility this summer. company of KFC, Pizza Hut and Taco Bell, New initiatives planned to begin as early as this fall include has announced an expanded parental time- a new track in aerospace engineering, expansion of opportu- off policy that gives birth mothers 18 weeks of nities in civil, construction, electromechanical and manufac- fully paid time away from work as well as six turing engineering technology, enhanced partnerships with weeks of fully paid “baby bonding” time away the university’s business and agriculture programs, sum- from work to fathers, partners, adoptive and foster parents. Yum! Chief Transformation mer engineering academies, dual-credit partnerships with and People Officer Tracey Skeans said the regional high schools, dedicated study abroad opportunities new policy builds on the company’s legacy of for STEM, streamlined transfer agreements with community investing in its people to help them be their best at work and at home. In colleges and targeted web-based course delivery. addition to the expanded parental time-off, Yum! recently started offering increased flexibility to corporate employees, with year-round half-day Fri- days and a minimum of four weeks paid vacation. SEBREE: SPECIALTY CONCRETE COMPANY EXPANDING PRODUCT LINE, WORKFORCE ■ Louisville-based PharMerica Corp., a national provider of institutional and specialty pharmacy services, has acquired CareMed Spe- ARCOLE Products, a Henderson-based producer of cialty Pharmacy for an undisclosed amount. CareMed, headquartered specialty concrete additives, has purchased a 42,500-s.f. in New Hyde Park, N.Y., provides comprehensive specialty pharmacy spec building in the South Sebree Industrial Park that services nationally and is licensed in all 50 states. PharMerica CEO Greg Dwill give the company the space it needs to expand into new Weishar said the acquisition further bolsters the company’s position in the rapidly growing specialty pharmacy market. product lines, upgrade equipment, streamline production and increase its workforce over the next several years. ■ The Belle of Louis- The new space will also include a laboratory that will allow ville, a historic steamer DarCole to conduct its own in-house research and develop- that offers sightseeing ment. Since its founding in 1983, the company has focused on and meal excursions innovation, developing more than 30 specialty concrete addi- along the Ohio River, has agreed to pay $750,000 to tives. One such innovation is stand-alone floating concrete, acquire The Georgia which is used in the construction of concrete boat docks, elimi- Queen, a three-deck ves- nating the need for Styrofoam or other flotation aids. sel with traditional river- The company historically has concentrated on providing con- boat styling that will crete additives used by customers to work with mobile concrete replace the Spirit of Jef- mixers that produce concrete at a job site as opposed to hauling ferson. The Spirit of Jefferson, a 260-passenger vessel, is need of major in concrete from a stationary ready-mix plant. While DarCole will restorative repairs that could cost significantly more than the boat’s appraised value. The Georgia Queen can host 565 passengers for casual continue to serve mobile-mix customers, the company plans to gatherings or cocktail parties or 260 passengers for a seated lunch or expand into new markets, such as providing additives for the dinner service. The Spirit of Jefferson will be sold after The Georgia larger ready-mix market and creating a line of pre-cast concrete Queen acquisition is complete. products like parking bumpers and retaining wall blocks.

12 APRIL 2017 LANEREPORT.COM • THE LANE REPORT

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BUSINESS BRIEFS LOUISVILLE: BAPTIST HEALTH CUTS 288 JOBS, CHANGES ITS TOP MANAGEMENT MAYSVILLE N the heels of operating losses for the last five quarters, ■ Maysville Community and Technical College has been awarded a $1.3 million grant from the Appalachian Regional Commission that Baptist Health announced on March 15 that it was lay- will be used to develop a drone technology project. MCTC will part- ing off 288 employees across its healthcare system. Of the ner with Southern West Virginia Community and Technical College to O288 affected employees, 149 are at the system’s corporate head- deliver comprehensive training courses in small-air drone operation to quarters in Louisville and are primarily administrative roles. a seven-county area in southern West Virginia and a 13-county area in The cuts represent approximately 1 percent of the company’s northeastern Kentucky. The training activities will enable graduates to total workforce. According to a company spokesperson, none of operate drones and drone sensors to provide in-demand commercial services such as the close-up inspection of fixed structures like power the affected jobs are bedside positions at hospitals. lines, utility poles and cell phone towers. In a statement from Baptist Health announcing the lay- offs, company officials said, “This continues to be a time of MERCER COUNTY both transformation and great uncertainty in the healthcare ■ Louisville Gas and Electric Co. (LG&E) and Kentucky Utilities Co. industry. Baptist Health is realigning its structure to best meet (KU) have launched a new energy storage research and demonstrate site at the needs of our patients and communities within a challeng- their E.W. Brown Generating Station near Harrodsburg. The project, which ing financial environment.” was developed in collaboration with the Electric Power Research Institute, became operational in January and will allow the utilities to develop, test Affected employees will be offered sever- and evaluate the potential benefits of utility-scale battery technologies, and ance and outplacement job assistance if they investigate operating needs and associated costs. are unable to fill other jobs with the system. In another significant development, the PRESTONSBURG company announced on March 21 that Chief ■ Big Sandy Community and Technical College is one of seven Executive Officer Steve Hanson was leaving the schools to participate in an entrepreneurial education grant awarded by organization, effective immediately. Hanson the Appalachian Regional Commission’s Partnerships for Opportunity and Workforce and Economic Revitalization (POWER) program. BSCTC will was appointed CEO in March 2013. Steve Hanson receive $12,000 annually through 2019 to deliver comprehensive entrepre- The Baptist Health board of neurship training to secondary schools in Pike, Martin and Magoffin coun- directors has appointed Janet Nor- ties. This is the second POWER grant BSCTC has been awarded this year. ton and Steve Oglesby as co- In January, the college was the recipient of a $3.5 million POWER grant to interim leaders. Norton, a 29-year deliver rapidly deployed, employer-led training. employee, is vice president and chief legal and regulatory affairs RUSSELL SPRINGS ■ officer. Oglesby, a 24-year The French Valley Industrial Park in Russell Springs has been certi- Janet Norton Steve Oglesby fied as a shovel-ready site for food- and beverage-processing facilities. employee, was named chief finan- “When Fruit of the Loom closed, we felt the impact on a number of cial officer in September 2016. levels,” Russell County Industrial Development Authority Executive A nationwide search for a successor is now underway. Director Bennie Garland said, noting that the county was left with excess water and wastewater capacity that was built specifically for Fruit of the Loom and now needs to be utilized. “Recruiting the appropriate STATE: NEARLY 50% OF COUNTIES HAVE industry to our county will hopefully keep us from continuing to pass along utility costs to consumers by raising rates.” ONLY ONE HEALTH INSURANCE CARRIER Bulleit Bourbon photo SHELBYVILLE Marketplace Health Insurers ENTUCKIANS in ■ Bulleit Distilling Co. held an official rib- 59 counties who bon-cutting ceremony on March 14 for its new NO. OF NO. OF STATE INSURERS INSURERS were looking for Shelbyville distillery, part of a $130 million-plus 2016 2017 Kcoverage through the investment that will create approximately 30 Kentucky 7 3 health insurance mar- full-time jobs. The 300-acre campus includes Arkansas 5 4 ketplace during the four barrel houses (each capable of holding Illinois 9 5 55,000 barrels), a 52-foot still crafted by Ven- recent open enrollment Missouri 7 4 dome Copper and Brass Works in Louisville period could choose and the first industrial solar array in Shelby Ohio 16 11 plans from only one County, which will collect enough energy to Tennessee 4 3 company, according to run all on-site mobile equipment. Virginia 11 11 a report released by the West Virginia 2 2 WHITESBURG Foundation for a ■ Whitesburg has received a $500,000 grant from the Healthy Kentucky. Appalachian The rest of the state fared little better; 52 counties had only two Regional Commission that will be used to make repairs to the historic Daniel Boone Hotel, which is a central component of the city’s economic companies’ plans from which to choose, leaving just nine of the revitalization plans. The hotel was built around 1920 and was a vital part of state’s 120 counties with the option to select between three health the community until it closed in 1970. It was later used for office space until insurance companies. the early 1980s and has been permanently closed since that time. Once the “One of the concerns about the uncertainty surrounding structure is stabilized and renovated, city officials hope to see the hotel serve the Affordable Care Act is that the number of insurers offer- as a regional destination and economic driver. Once complete, the project is expected to attract an estimated 9,900 annual visitors to the area. ing plans is dwindling in many markets, and that’s exactly what happened in Kentucky,” said Ben Chandler, president STATE and CEO of the Foundation for a Healthy Kentucky. “And the ■ Emphasizing that the state intends “to take care of those who take choices were most limited in the lower-income, less-healthy care of us,” Gov. Matt Bevin announced a 20 percent pay raise for entry- areas of the commonwealth. Fewer carriers leads to higher level youth workers at the Department of Juvenile Justice. A grade premiums, less competition to exceed minimum coverage increase for other positions has also been implemented in order to requirements, and higher costs to taxpayers for tax credits to provide a career ladder for employees within the department and stem staff turnover. The increases go into effect this month. buy those premiums down.”

14 APRIL 2017 LANEREPORT.COM • THE LANE REPORT

April Lane 1-23.indd 14 4/3/17 9:37 AM FRANKLIN: PURACAP EXPANSION CREATES BUSINESS BRIEFS GLOBAL PACKAGING/DISTRIBUTION HUB STATE is URACAP Laboratories ■ Sales at the 31st annual Kentucky investing $2.5 million to Farm Bureau Beef Expo in March expand its operations in exceeded $1 million for the sixth con- PFranklin, transforming the facility secutive year. “At a time when beef cat- into the company’s global pharma- tle prices are well below their peak of ceutical packaging and distribution recent years, these numbers say some- hub and creating 30 full-time jobs. thing about the Beef Expo’s position as an elite beef cattle show and sale,” The project comes nearly a year Agriculture Commissioner Ryan Quar- after PuraCap purchased Blu les said. “This event continues to prove that Kentucky has earned a Pharmaceuticals, a privately held national reputation for top-quality beef cattle genetics.” PuraCap Laboratories’ generic pharmaceutical company Franklin plant repackages and that located in Franklin in 2007. ■ State officials reported in early March that the transition from distributes pharmaceutical Since the acquisition, PuraCap has kynect, the state-operated healthcare enrollment system, to the federal products produced by added packaging operations, health insurance marketplace was successful, with enrollment figures PuraCap manufacturers in for 2017 on par with coverage obtained via kynect. Once the transition Puerto Rico, New Jersey and increased distribution capacities, is fully complete, state officials anticipate saving more than $10 million New York. purchased new equipment and annually by not operating a separate healthcare exchange. nearly doubled employment. The Franklin site currently consists of two packaging lines with ■ The Kentucky Public Services Commission is revamping the state pro- three pouching lines expected be operational in the coming gram that provides assistance to low-income telephone customers and weeks. As part of the expansion project, the company plans to refocusing it on meeting the needs of the mostly elderly and rural custom- add two more packaging suites to support new and existing ers who rely on landline phones. The PSC initiated a review of the program last year, when it became clear that the business and expand the warehouse into the existing 180,000- Kentucky Universal Service Fund, the source of the Lifeline subsidies, was on the verge of running out s.f. facility. of funds due to an increased number of wireless customers qualifying for PuraCap Laboratories’ Franklin operation repackages and the Lifeline subsidy. The PSC said removing the state subsidy for wireless distributes products from PuraCap manufacturers in Puerto Lifeline service should have little effect on those wireless customers, as there Rico, New Jersey and New York. Products include non-con- is intense competition in the wireless market, which will tend to keep rates trolled prescription drugs, over-the-counter drugs and a low. Competition in the landline market, however, is nearly nonexistent, medical device. particularly in rural areas, according to the PSC.

April Lane 1-23.indd 15 4/3/17 9:37 AM INTERSTATE LANE Business news from Indiana, Ohio, Tennessee and West Virginia

BUSINESS BRIEFS TENNESSEE: NEW LG APPLIANCE PLANT BRINGING 600 JOBS TO CLARKSVILLE INDIANA ■ Faurecia Clean Mobility, a global manufacturer of automotive emissions G Electronics Inc. plans to build a new home appli- control systems, is investing $4 million to establish and equip a new 137,500- ance manufacturing facility in Clarksville, Tenn., that s.f. facility in Fort Wayne, Ind., that will create 144 new jobs by 2018. FCM will create at least 600 new jobs. currently employs more than 1,800 people at three locations in Columbus, LThe company is investing $250 million in the new plant, Ind., which serves as the company’s North American headquarters. which will be the company’s first washing machine manufacturing operation in the United States. Dan Song, president OHIO of the LG Home Appliance and Air Solutions Co., said the ■ Fifth Third Insurance Agency, a wholly owned sub- company had studied eight states over the course of six years sidiary of Cincinnati-based before selecting the Clarksville site. Song cited Tennessee’s Fifth Third Bancorp, has “excellent business climate, quality workforce and central expanded its insurance capa- location for distribution bilities with the acquisition of the R. G. McGraw Insurance Agency, to our U.S. customers” as another Cincinnati company that has been in business since 1955. McGraw the primary drivers serves a broad mix of public and private companies, nonprofit institutions and high-net-worth individuals. Its key service areas include property and behind the company’s casualty insurance, and risk management analysis for both personal lines decision. and commercial lines across a range of industries. A statement announcing the new plant said the ■ LGSTX Services Inc. has notified Ohio state officials that it is closing its new Tennessee facility “is air cargo operations at the Wilmington Air Park effective April 30, a move expected to be the that will eliminate 335 jobs. The closure is tied to the recent decision by world’s most advanced to develop a $1.5 billion air services hub at the Amazon Cincinnati/North- production plant for ern Kentucky International Airport. LGSTX has been handling air cargo operations for Amazon at the Wilmington Air Park. washing machines.” The plant will initially pro- LG’s new plant in Clarksville will produce both front- ■ Cintas Corp., a Cincinnati-based company that provides specialized duce both front- and top- load and top-load washing machines. business services to companies, has acquired G&K Services Inc. in a load washing machines. $2.2 billion deal. G&K, a uniform rental and facility products company Construction on the 829,000-s.f. facility will begin later headquartered in Minnesota, has 8,000 employees across 160 facilities in this year and is expected to be operational by 2019. The North America. The combined company is expected to have annual revenues of more than $6 billion and will service over 1 million customers. plant will be built on a 310-acre site that offers the potential to expand for production of other home appliances. TENNESSEE Under agreements with the State of Tennessee and Mont- ■ Captain D’s, a Nashville-based gomery County, LG will receive support for construction, fast casual seafood restaurant chain, infrastructure improvements, job training and veteran has signed agreements to expand recruitment. The project also includes incentives from the its presence in Illinois, Texas, Vir- Tennessee Valley Authority. ginia, North Carolina and Ken- tucky. The expansion is propelled The announcement of the new home appliance factory in by Captain D’s recent success, with Tennessee comes on the heels of the start of construction of six consecutive years of same-store the LG North American headquarters in Englewood Cliffs, sales increases. N.J., where LG broke ground in February.

■ Orthodontics company SmileDirectClub is investing $4.5 million to expand two locations in Nashville, a move that will create some 440 new jobs over the next five years. The company is adding office and cus- INDIANA: AUTO PARTS SUPPLIER NTK TO tomer service personnel in its new downtown Nashville headquarters HIRE 200 FOR NEW ANDERSON PLANT and is also adding jobs at a new manufacturing and distribution center in nearby Antioch. Founded in 2014, SmileDirectClub specializes tele- dentistry, using cloud-based technology to connect patients with a net- TK Precision Axle Corp., a global automotive sup- work of state-licensed dental professionals who provide ongoing, plier, has announced plans to establish a new manu- remote orthodontic treatment. SmileDirectClub works with an orth- facturing facility in Anderson, Ind., that will create odontic lab to custom-make a series of clear plastic aligners that gradu- Nnearly 200 new jobs over the next five years. ally shift patients’ teeth into the desired position without in-office visits. The Japan-based company, which manufactures wheel

La-Z-Boy photo hubs and constant velocity joint (CVJ) axles for both two- ■ Furniture manufacturer La-Z-Boy is expanding its operations in Dayton, wheel and four-wheel-drive vehicles, plans to invest more Tenn., where it has operated a plant than $100 million to build and equip a new 300,000-s.f. since 1973. The facility, which cur- manufacturing plant in Anderson. Construction is expected rently employs approximately 1,400 to get underway this spring and the company hopes to people, is already the company’s larg- launch production in Anderson in October 2018. est plant and will be expanding to add NTK is a subsidiary of Japan-based NTN Corp., a global a new innovation center and logistics manufacturer of mechanical parts and equipment that facility. The $26 million expansion will create 115 new jobs. employs more than 4,500 people in the U.S., including nearly 2,000 Indiana employees. NKT also operates a manu- ■ Forrester Research Inc. plans to locate its newest office in Nashville, facturing facility in Frankfort, Ind. With the additional plant where it will add 120 new jobs over the next three years. The research and in Anderson, NTK expects to produce 130,000 products per advisory firm is investing $2.8 million in the expansion to grow its inside month in 2018, increasing production to 1 million products sales and support team, using Nashville as a strategic hub. per month in 2021.

16 APRIL 2017 LANEREPORT.COM • THE LANE REPORT

April Lane 1-23.indd 16 4/3/17 9:37 AM KENTUCKY INTELLIGENCER® A sampling of business and economic data

THE LANE REPORT • LANEREPORT.COM APRIL 2017 17

April Lane 1-23.indd 17 4/3/17 9:38 AM CORPORATE MOVES New leadership for Kentucky businesses

BANKING/FINANCE EDUCATION ■ Frankfort-based United ■ Joseph A. (Jay) Morgan DEPARTURES Bank & Capital Trust Co. – the has been named as the 14th ■ Skip Miller, executive director of the new bank resulting from the president of Morehead State Louisville Regional Airport Authority, has consolidation of the Farmers University. Morgan succeeds announced that he will retire by March 31, Bank & Capital Trust Co., Wayne D. Andrews, who is 2018. United Bank& Trust Co., First retiring effective June 30. ■ has left Baptist Health- Citizens Bank and Citizens David Jay Steve Hanson Bank of Northern Kentucky – ■ care, where he has served as chief execu- Smith M. Christopher Brown Morgan has announced its senior man- has been named president of tive officer since March 2013. agement team: Chairman and Kentucky State University. CEO – Lloyd C. Hillard Jr.; President – J. David Smith; ■ Rusty Watkins has been opment Department; John S. Lueken, Estate Executive Vice President, Chief named dean of student Planning Department; John K. Bush and Financial Officer – Mark A. services at Campbellsville James M. Hinshaw, Litigation Department; Hampton; Executive Vice Pres- University. Mark A. Loyd, Tax and Employee Benefits ident, Chief Credit Officer – Department; Christopher W. D. Jones, Pri- James Barsotti; Executive Marilyn ■ Gina Rittinger has been Rusty vate Equity/Mergers and Acquisitions Practice Vice President, Chief Opera- Ford named assistant vice presi- Watkins Group; Brian W. Chellgren, Intellectual Prop- tions Officer – Allison R. dent for marketing and com- erty Practice Group; John E. Rhine, Mineral Burkholder; Executive Vice munications at Northern Kentucky University. Practice Group; Daniel E. Fisher, Healthcare President, Chief Retail Bank- Practice Group; D. Bryan Weese, Real Estate ing Officer and Heartland FOOD/SPIRITS/HOSPITALITY Practice Group; James R. Irving, Bank- Region Market President – ■ Louisville- ruptcy/Restructure Practice Group; Melissa Marilyn B. Ford; Executive based Long Norman Bork and Briana Clark, Business Vice President, Chief Commer- John Silver’s Litigation Practice Group; Andrew Gruber, cial Banking Officer – James has announced Labor and Employment Practice Group; Rickey J. L. Grubbs; Executive Vice the following Mark Grundy and Gregory A. Neibarger, Harp President, Chief Risk Officer – promotions: Fiduciary Litigation Practice Group; and J. Kaye Bentley Hall; Executive Brian Unger – Richard Kiefer and K. Michael Gaerte, Vice President, Chief Trust president, LJS White Collar Practice Group. Timothy W. Officer and Bourbon Region Operating Co. Brian Toni has been named the office managing Unger Bianco Dunn Market President – Rickey D. and senior vice partner for the firm’s Lexington office. Ben Harp; Executive Vice Presi- president of Johnson II has been named the office manag- dent, Chief Market Lender U.S. franchis- ing partner for the Louisville office. and Riverfront Region Market ing and devel- President – Michael G. Hill; Michael opment; Toni ■ Jonathan Miller has been Executive Vice President, Chief Hill Bianco – chief named member-in-charge of Market Lender and Bluegrass operating offi- Frost Brown Todd’s Lexing- Region Market President – cer, LJS U.S. ton office. He succeeds Michael E. Schornick Jr.; and interna- Krista Katie Edward Receski, who has Senior Vice President, Chief tional; Krista Foster Rooprai led the Lexington team since Investment Officer – Fontaine Foster – vice 2011 and continues to be a ; Senior Vice Presi- president, human resources; and leader of the firm’s energy Banks III Katie Rooprai Jonathan dent, Controller – – vice president, brand marketing. practice. Lawrence Miller H. (Hobbs) Cheek; Senior Vice President, Retail Delivery, Michael ■ Kevin Hochman has been MANUFACTURING Remote Banking – Elizabeth Schornick named president and chief ■ Chris Girdler has been Hardy; Senior Vice President, concept officer of KFC U.S. named executive vice presi- Director of Accounting – Tina M. Johnston; Hochman succeeds Jason dent of Monticello-based Tri- Senior Vice President, Chief People Officer – Marker, who has resigned fecta Houseboats. Carla Miles; and Senior Vice President, Chief from the company to pursue Marketing Officer – Janelda R. Mitchell. other opportunities. MEDIA ■ has been Kevin Pat Higgins Chris ■ GOVERNMENT named vice president of sales Jeffery Hochman Girdler Zinger has ■ Dr. Jonathan Ballard has for Buckner-based Fastlane joined the been appointed as Kentucky’s public health Media Group. Lexington epidemiologist and director of the Division of office of Epidemiology and Health Planning in the REAL ESTATE WealthSouth Department for Public Health. ■ Doug Peabody has been as senior vice promoted to president of president, ■ has been appointed Jeffery Gordon Robert G. Johnson Louisville-based Horizon lending man- court of appeals judge for Kentucky’s 5th Commercial Realty. Zinger Mullis ager, growth Appellate District, Division 1. Pat markets. Gordon Mullis has joined the office TECHNOLOGY Higgins as vice president, trust officer. LEGAL ■ Jason Bowra has been ■ Kerry B. Harvey has joined the Lexington named vice president of oper- CONSTRUCTION office of Dickinson Wright as a member of ations of Lexington-based ■ Michael Patterson has the firm. NetGain Technologies. been named vice president of South Carolina operations ■ Bingham Greenebaum Doll has announced for Denham-Blythe Co., a the following new department and group Lexington-based construc- chairs and co-chairs: William J. Kaiser Jr. Jason tion and design company. Michael and Jeffrey A. McKenzie, Corporate Service Department; , Economic Devel- Bowra Patterson Philip Sicuso

18 APRIL 2017 LANEREPORT.COM • THE LANE REPORT

April Lane 1-23.indd 18 4/3/17 9:38 AM ON THE BOARDS Kentuckians named to organizational leadership roles

KENTUCKY ADVISORY KENTUCKY COMMISSION ON cal Education personnel board. Ross, of Frank- COUNCIL FOR GIFTED THE DEAF AND HARD OF HEARING fort, is an executive advisor for the Kentucky AND TALENTED EDUCATION ■ Thomas Charles Evans has been appointed Department of Education. Shannon, of Lou- ■ Carol Christian, Brandy Carol Daniels and to the Kentucky Commission on the Deaf and isa, is a CTE instructor at Floyd County Area Dianne Burns Mackey have been appointed to Hard of Hearing. Evans, of Union, is a clinical Technology Center. the Kentucky Advisory Council for Gifted and audiologist with the division of audiology at Cin- Talented Education. Christian, of Lexington, is cinnati Children’s Hospital Medical Center. KENTUCKY TOURISM the director of Morehead State University’s Craft FINANCE AUTHORITY Academy for Excellence in Science and Math. KENTUCKY HERITAGE COUNCIL ■ John Anthony Mocker Jr. has been Daniels, of Somerset, is a member of the Pulaski ■ Christine Doughty Johnson and Maynard appointed to the Kentucky Tourism Finance County Board of Education. Mackey, of Utica, is A. Crossland have been appointed to the Ken- Authority. Mocker, of Union, is vice president self-employed. tucky Heritage Council. Johnson, of Louisville, is and partner of LB Industries. retired. Crossland, of Lexington, is president and KENTUCKY BOARD OF chief executive officer of Shaker Village. UNITED BANK VETERINARY EXAMINERS ■ United Bank & Capital Trust ■ Amanda Holmes Rowland, a Danville vet- KENTUCKY LAW Co. – the new bank resulting erinarian, has been appointed to the Kentucky ENFORCEMENT COUNCIL from the consolidation of the Board of Veterinary Examiners. ■ Glasgow Mayor Don Richard Doty has Farmers Bank & Capital Trust been named to the Kentucky Law Enforce- Co., United Bank& Trust Co., KENTUCKY CANCERLINK ment Council. First Citizens Bank and Citizens ■ Kentucky Bank of Northern Kentucky – CancerLink KENTUCKY PERSONNEL BOARD has announced its inaugural Lloyd has an- ■ has been appointed board of directors: Catherine J. Monteiro James E. Hillard nounced its to the Kentucky Personnel Board. Clouse, Michael J. Crawford, 2017 board of Dr. Evan K. Dicken, Rickey D. Harp, Lloyd C. directors: Presi- KENTUCKY STATE UNIVERSITY Hillard, Jr. (chairman), Richard A. Miles, dent – Missy ■ Ronald T. Banks has been appointed to the Thomas J. Munninghoff, Dr. William C. Nash, Jolliff; Secre- Kentucky State University board of regents. David R. O’Bryan, Terry N. Patterson, Ford B. Missy Bryan tary – Lois Banks, of Franklin County, is the former direc- Phares, David Smith Jr., Marvin E. Strong Jr., Davis; Trea- Jolliff Willett tor of career counseling, placement and coop- Kenneth M. Sturgill and Michael W. Sweeney. surer – Sneha S. Kalyan; Charity Barnes; Doris erative education for KSU. Rosenbaum; Elisha Burkhart; Bryan Willett; VETERANS’ PROGRAM TRUST FUND Peggy Wheeler; Cindy Geveden Praska; KENTUCKY TECHNICAL EDUCATION ■ Michael S. Ferguson, of Versailles, has Peggy Lacy Moore; Poanya Rice; Peggy Hen- ■ Matthew T. Ross and Jeffery M. Shannon been appointed to the Veterans’ Program derson; and Jacky Samaan-Space. have been appointed to the Kentucky Techni- Trust Fund board of directors.

April Lane 1-23.indd 19 4/3/17 9:38 AM LANE ONE-ON-ONE Kentucky’s leaders express their opinions

ing high-paying jobs. We have over $800 Dr. Eli Capilouto million in state appropriations, and Dr. Eli Capilouto was named as the 12th pres- tuition and fees; $267 million of that is a ident of the University of Kentucky in 2011. state appropriation that has declined Under his leadership, the $3.5 billion flag- ship and land grant research university has steadily. About $80 million of that $267 gained significant momentum in carrying million heads out to 120 counties in out its multi-faceted mission of teaching, programs that, for instance, support our research, service and healthcare. Capilouto Cooperative Extension Service offices. has led the university in a substantial physical People say $3.5 billion should give you transformation of its academic, research, extreme flexibility to do whatever you residential and healthcare spaces. By devel- want. But you can’t use a research grant to oping partnerships, increasing philanthropy and implementing effective financial man- hire mentors or award scholarships for agement, UK is self-financing the vast major- freshman students. You can’t use a Medic- ity of the $2 billion-plus infrastructure aid dollar collected for delivering services development. Prior to coming to UK, Capi- other than for healthcare and teaching louto served as provost of the University of healthcare. So those are some of the con- Alabama-Birmingham and as dean of the straints that do come with what certainly is UAB School of Public Health. He holds sev- a big budget. eral undergraduate and graduate degrees from schools within the University of Ala- bama system and a doctorate in health policy MG: Universities use an increasing level and management from Harvard University. of public-private partnership funding. When and how did P3 become important to modern university operations? BILLIONS IN CONSTRUCTION AT UK LEADING EC: Five years ago at UK, through strategic planning discussions with our board of TO IMPROVED EDUCATION OUTCOMES trustees, we recognized we needed to modernize our campus and do so quickly. Only President Eli Capilouto touts school’s rising graduation 600 of our 6,000 beds were sort of “mod- rates; says degrees remain a good investment for students ern.” Through a public-private partnership, we were able to accelerate the construction of 14 halls that will contain BY MARK GREEN 7,000 beds. But there are probably 200 learning spaces in these facilities; we’re able to create academic programs based in Mark Green: As we conduct this inter- the Big Blue Nation fan support and a residence hall. We put out a competitive view, first-round games of the NCAA bas- those committed athletes who make bid and found a publicly traded company, ketball tournament are underway. UK’s people so proud of how we perform on (Memphis-based) EdR, that could build basketball team is one of the most suc- the field and off the field. these things faster, of better quality and cessful in history, which also makes it a lower cost than if we did them ourselves. target for criticism. How do you view the MG: Has any other university athletics More importantly, they provided the equity role of major college athletics at UK? department provided funding for to construct these facilities. We think it’s a Eli Capilouto: I’m very pleased with the academics at that level? fair and good agreement. They do an athletic program at the University of Ken- EC: I’m unaware of a commitment at that excellent job maintaining these facilities. tucky. The tournaments are a time when level. Certainly we’ve created some envy We also saw another opportunity everybody drops their differences and amongst college administrators. I like to because when you have over 30,000 stu- comes together. That is an emotional and tell people that when you support athletics dents, up to 7,000 living on campus and cultural phenomenon in Kentucky. But at UK, you’re not just supporting our abil- the other 23,000 visiting daily, we wanted what brings me satisfaction first are the ity to recruit the best student athletes; them to have attractive dining spaces. We student athletes, some 500 who receive when you walk into that new Academic want to be a community, a family, and one grant-in-aid enabling them to go to col- Science Building and other facilities on of the most sacred things communities lege. We have wonderful academic sup- campus, you’ve got to realize that athletics and families do is break bread together. port for our athletes. Inside Higher made possible those facilities, and you are We needed more venues to do this. We Education published who would win the then recruiting the best scientists, students went to the market, again attracted a pri- academic competition among all the who enter the STEM fields. Again, it is a vate partner, Aramark, who came in and teams in the NCAA tournament using way to build community. built dozens of dining facilities. One, The their indicators of academic success, and 90, is a 1,000-seat dining hall with some Kentucky was in the finals with Bucknell. MG: What is the annual budget for the retail spots on the outside, but on the sec- We’re one of the few self-sustaining university, and what major revenue ond floor it’s academic space. When we athletic programs in the country. No streams support it? went to remodel our 1903-vintage Patter- state funds, no tuition dollars go to any EC: The University of Kentucky has a son Hall, which was the first residence hall of this. Even more unique, funds come $3.5 billion budget; $1.5 billion of that for women, $10 million of that $15 million from athletics to support our academic is the hospital and clinical services. project was provided by our dining part- enterprise. A display panel in our new Probably another $500 million is in our ner because they were so anxious to land $112 million Jacobs Academic Science College of Medicine. We also have $300 the business at UK. You would think meal Building recognizes the $65 million million of external research, for which prices went up after this, but in fact we contribution to that project made by we compete against the very best; we have five meal plans and they all went UK Athletics. It’s really acknowledging bring those dollars into the state, creat- down in price.

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April Lane 1-23.indd 20 4/3/17 10:20 AM MG: Public-private partners pay for MG: University tuition and college costs MG: Are universities concerned about hav- construction of facilities the university have risen faster than the rate of infla- ing a conflict of interest in the role they then owns and in turn collect revenue tion for several decades. What in your play in rising student debt, which tops $1 from students for their room and board. view is the cause of ongoing higher edu- trillion and is even discussed as a head- Is the residence hall and dining facility cation cost increases? wind in today’s sluggish economy? construction and operation money EC: There is that sticker price, but we EC: Our board of trustees heavily scruti- within the $3.5 billion budget? also have had a growth in financial aid nizes any recommendation we make for EC: EdR put $450 million in capital for students. The out-of-pocket cost of tuition and fee increases when we into the housing construction. Aramark tuition for students has gone up consid- develop our budget. Having said that, put in $75 million. They built those erably less. Over a 10-year period, it’s 85 percent of all the students who come facilities on campus, and they’re ours something like $400. I would ask folks to UK get some form of grant or schol- now. It is outside the university budget. to look at this through that lens as well. arship that they don’t have to pay back We have some original residence halls Yes, costs have gone up at universities. – 50 percent of students who graduate that we still maintain, and those are in We believe infrastructure and talent are from UK have no debt. Of those who the budget. What also is attractive about important in providing a quality educa- have debt, the average is around these arrangements, which is atypical tion, to making discoveries that are use- $27,000 – a lot of money, but depending when you look at other universities, is ful to those we serve. The facilities in on your career and the degree, it may that the private partner is assuming a which you do those, and the regulations be a wise choice to have made that risk. If they don’t sell the meal plans, which we all must respect, have gotten investment and should be something they internalize that cost. If you don’t certainly more costly. In the form of one can manage. So our students will fill the beds, the company internalizes faculty, at UK we’ve been fortunate in have financial well-being while they’re that. At other universities, there are the past four years to have a salary plan; here and post-graduation, we’ve intro- occupancy requirements (in the con- we want to keep this talent. Other states duced heavy financial literacy into our tract) of 95 percent; if they don’t hit are beginning to invest more heavily in curricular and extracurricular activities. them, then the schools have to pay a education. We do not want to lose our We are revamping our financial aid penalty. In the case of our dining, it is most precious resource, our talent. program; we still want those best and we who have performance indicators: Even so, we lag behind some of our brightest to come to Kentucky. But we quality service assessments. We do these peers when it comes to compensation recognize that students from families who through surveys and other means. And benchmarks. We are very cognizant of have more children, less income, who if they don’t hit certain benchmarks, the cost to students and families, and may need additional acknowledgement there’s a financial consequence, too. So we are further restructuring our schol- on the scholarship side, are wise for us to we work to build accountability into arship program in recognition of that undertake, because it’s going to lead to these arrangements. financial need. more students with degrees. So we’ll be

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April Lane 1-23.indd 21 4/3/17 9:38 AM LANE ONE-ON-ONE

shifting the dollars to allocate more ties through our Extension offices. Arts ate and the governor’s office, worked on towards needs-based than previously. and Sciences has over 400 faculty; Engi- this plan. It’s not perfect, but we all agreed The cost of our education is below the neering and Education, respectively, to it. We think it’s in alignment with our national average. The incomes our stu- have 139 and 112 faculty. strategic plan, which centers around students are able to earn when they get a dent success. It acknowledges important degree from UK is above the average. The MG: There has been a tremendous factors as it weights degrees and weights default rate on loans, meaning you don’t amount of construction and infrastruc- teaching according to how successful you have the means through employment to ture upgrades on the campus during are with lower-income students, because pay your student debt, is much lower than your administration. What are the high we’re looking for income mobility from a the average of the country and much points of the various projects and why college education, and with underrepre- lower than the average in the state. did you feel it was a priority to do this? sented minorities, where success rates have EC: All our facilities are really a means to been lower than we’d like. We see priori- MG: What is the four- and six-year grad- an end. We’re building so we can better ties in the STEM fields and health fields, uation rate at UK, and how does that deliver programs, make discoveries that with higher weight given for efforts and compare with peer institutions? attack scourges that plague Kentucky, and successes in those areas. It’s well-inten- EC: Our four-year graduation rate is 44 we need facilities to do that. In the last five tioned and you want to know the rules percent. Our six-year graduation rate is years, we’ve had about $2.2 billion of con- you’re going to play by for several years about 64 percent. This is the first-time, struction on campus amounting to over 6 because you can better plan. This gives us first-semester graduation rate measure million s.f. We have our residence halls the opportunities. There’s still no new the federal government uses. So if some- with some 7,000 beds. We have a new aca- (state) money in higher education. We body transfers in and graduates, that’s demic science building where 4,000-5,000 hope in time there will be new money, not counted. Five years ago we were at 60 students a day are educated. Several thou- which will give extra incentive to your per- percent. Sixty-four percent is at a healthy sand students a day are educated in the formance within these models. level above the national average and Gatton College of Business – that building we’re the highest in Kentucky; but that’s funding was raised entirely through phi- MG: How many students are in-state, not good enough for us. Our goal is to lanthropy, some $65 million. We’ll be how many are out-of-state, how many get to 70 percent in the next few years; coming soon to our board of trustees with are foreign, and what are the top coun- that’ll put us in the top 150 universities plans for a complete remodeling of the tries of origin? out of nearly 3,500 to 4,000 in this coun- law school, which is in bad need of renova- EC: We have an enrollment of nearly try. So that would be, I think, a strong tion and expansion. In tackling the health 31,000. Two-thirds of those are state res- indicator of the kind of value we add for a disparities that we suffer in Kentucky, we idents. You see a higher percentage of student experience at UK. have a new, $270 million research building nonresidents in graduate programs, and under construction; half is funded by the you see that across the country. We have MG: How many colleges, departments, state, and the other half we’ll make a com- just over 1,700 students who come from programs and/or majors does UK have mitment to fund. abroad to UK; the top five countries are nowadays? One of the most extraordinary success China, India, Oman, South Korea and EC: We have 18 colleges; our newest is stories in the country in terms of aca- Iran. China and India dominate, with the Lewis Honors College, made possi- demic medical centers has been UK 600 and 165 students respectively. ble by a $23 million contribution by Healthcare. Ten years ago there were Tom and Jan Lewis. We have 130 depart- 19,000 annual admissions to our hospital, MG: Kentucky lags some of our key ments – and we have a few of those today some 39,000. We’ve built an entirely peer states in the number of engineers. endowed in name this year – 115 pro- modern hospital. Much of its space was Are there plans to grow UK’s College of grams and over 700 majors. Arts and shelved when we opened around six years Engineering? Sciences has nearly 6,000 students and ago; that’s not the case now. A demand EC: First let’s recognize the remarkable over 400 faculty. That’s to be expected, for those high-touch, highly-complex growth of our College of Engineering because the Arts and Sciences curricu- cases has continued to grow, and we’ve over the past seven or eight years. In lum supports many of those other col- had to build facilities to be able to deliver 2010, we had 2,500 students in our Col- leges; English is a required course these valuable services. lege of Engineering; today we have across every college, but that’s provided One I want to see completed within nearly 4,000. The degrees conferred in Arts and Sciences. Engineering the year is going to be a spectacular stu- have gone up by a similar number. And comes in second, with almost 4,000 student center. It is going to be the hub for we certainly have plans to grow that dents, followed by Business and Eco- students, faculty and surrounding com- enrollment, because you’re correct: In nomics, with 3,500 students. munity life. Again, Mr. Bill Gatton’s an essential field for your economic Agriculture, Food and Environment has remarkable generosity helped us launch growth, the number of engineers per 3,000. And rounding off the top five that building without introducing capita in Kentucky is well below the would be our College of Education, another special student fee, which you national average. You need them for a with nearly 2,700 students. typically find across universities. What modern economy. It can continue; The largest faculty is at our College we’d like to concentrate on now is we’re going to have to make additional of Medicine: nearly 800 faculty. While repurposing, renovating some of our investments in infrastructure and talent. the enrollments may be smaller there, older facilities in the heart of campus. the responsibilities in delivering care at MG: How much interaction does the UK our hospital and clinics is such that you MG: State government is moving to per- administration have with the private sec- have that large number of faculty. And formance-based funding linked to stu- tor about meeting workforce skill needs they teach in all those roles as well. The dent success. What is this and how will it and demands in the state? College of Agriculture, Food and Envi- affect UK? EC: We work at an administrative level ronment has 245 faculty, but there are EC: We, along with the other universities in here in central office, but even more of many positions embedded in communi- the state, members of the House and Sen- that goes on at the college level. Engi-

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April Lane 1-23.indd 22 4/3/17 10:20 AM neers are closely aligned with their grad- face require that you be an expert in pen- for those without a college degree went uates and people in the field to further sions, education, Medicaid, you name it. from about 5 percent to 10 percent; those develop their curricula so that someone And I think they do a good job getting with a college degree went from 2.5 per- who graduates from UK is going to be their hands around those. I do hope that cent to a little over 4 percent. If you have a ready to move quickly into that job as our economy bounces back, the gover- well-educated workforce, you’re going to force. Our College of Education has a nor’s commitment to take a look at taxes in attract and keep businesses, especially P-20 lab that examines best practices to Kentucky will offer the opportunity to those new businesses on the frontier. ■ lead and manage school districts, for grow the investment in education, both at instance. They’re on the front line in the K-12 level and the community college learning, and that’s incorporated into and university level. We learned from the Mark Green is executive editor of The Lane Report. He can be our classroom teaching. You can see last recession that the greatest antibodies reached at [email protected]. examples across all of our colleges. came from an inoculation that you get with an education. The unemployment rates MG: All areas of society and the economy have experienced large impacts from tremendous technology advances. How digital is today’s academic process, and how rapidly is it changing? EC: It’s changing rapidly. If you visit our modern academic buildings, in particular the Gatton College of Business and the Jacobs Academic Science Building, you will see the latest. To make a large classroom intimate, to make it almost conversa- tional between the faculty member and the students and also student to student, this can be achieved through the design of the space. Compare a Gatton College of Business classroom to one built 30 years ago: First of all, the desks and chairs are in a semicircle so people can face one New Faces, Great Spaces. . . another. If, during class, you need to break into a small group, the design of the tables and all of Paducah’s Creative Places! is such that you can spin the chairs and what was a desk is now a small conference Paducah-McCracken County Convention & Expo Center table. You can immediately drop down the technology you need, all plugged in, and work on your laptop to develop a spread- With over 90,000 square feet of flexible meeting sheet or response to a particular challenge space under one roof and a globally celebrated that the instructor may give. You’re able to creative culture, Paducah’s amenities make it a modernize the teaching in those facilities. memorable destination for meetings and your We have hybrid learning, too, able to next convention or trade show. incorporate, through technology, learning experiences from around the globe into Become one of our coming attractions. that classroom. Book Paducah today! MG: How much of UK’s academic offer- ings are available online? EC: We have 21 programs fully online, Chuck Tate, Director of Operations across several colleges, and we have 11 Paducah-McCracken County Convention & Expo Center hybrid programs that consist of online [email protected] and face-to-face coursework. One that you hear advertised frequently is our joint MBA program with the University Michelle Campbell, Director of Sales & Marketing of Louisville. That is executive training, Paducah-McCracken County Convention & Expo Center on-site, certain weekends throughout [email protected] the semester, but there’s learning made available through technology as well. Becky Straley, Director of Convention Sales MG: Kentucky elected officials have set Paducah Convention & Visitors Bureau a public goal of state tax reform for this [email protected] year. Are there any specific changes that you or the university presidents collectively hope to see happen? EC: I’ll leave that up to the legislators. I do find that my respect for them grows every www.paducah.travel/meetings | 800.PADUCAH time I visit Frankfort. The challenges they

THE LANE REPORT • LANEREPORT.COM APRIL 2017 23 PaducahCONV-LR02-17.indd 1 2/1/17 4:07 PM

April Lane 1-23.indd 23 4/3/17 9:38 AM COVER STORY Amazon Fulfills Kentucky’s Goal to Be World’s Logistics Leader

Image from a current Amazon fulfillment center. Amazon currently has 11 fulfillment, distribution and return facilities in Kentucky that employ more than 10,000. Its planned first ever Prime Air hub at Cincinnati-Northern Kentucky International Airport will add up to 2,700 more jobs and prepare Amazon to expand into new services.

tics-distribution giant, last year added a 303,000-s.f. center in Louisville. Some perspective on Seattle-based Amazon: For just the fourth quarter 2016 the company reported revenues of $43.7 billion, which is more than double Ken- tucky state government’s $21.5 billion budget for the biennium running through June 30, 2018; full-year 2016 sales were $136 billon, an increase of 28 percent over 2015. The world’s largest online retailer said it ended 2016 with 180,000 employees, a six-fold increase over 2011, and that it would create 100,000 more full-time U.S. jobs by mid-2018. Amazon is the third most valuable brand in U.S business, only fractionally behind Google and Apple, according to a March 30 news release from Brand Fulfillment kingpin’s decision to put $1.5 billion Prime Air Finance, a British brand-worth rating operation. hub at CVG could shift retail industry’s center of gravity “As it continues to both reshape the retail market and to capture an ever larger share of it,” Brand Finance said, BY GREG PAETH “Amazon could easily become the most valuable brand in the U.S. and the rest of the world in 2018.” The company in January revealed its N the iconic, now 50-year-old film hub project at Cincinnati-Northern intention to establish a hub that will “The Graduate,” Dustin Hoff- Kentucky International Airport that employ up to 2,700 people in a 3 mil- man’s Benjamin Braddock charac- Amazon announced in January, deeply lion-s.f. building. However, knowledge- ter gets one word of seemingly delighting the business community and able people who get paid to scrutinize profound career advice from a public officials, might actually turn out the company say Amazon may build a Iwell-meaning family friend in a man-to- to be far more than what the company facility in Hebron that goes far beyond man poolside chat: “Plastics.” describes as its first “centralized air hub that – and could have far-reaching, Today, that thoughtful, potentially to support its growing fleet of Prime Air long-term and global significance not life-altering guidance from Mr. McGuire cargo planes.” only for the company but the package- probably would be a term that didn’t Amazon’s project cements Ken- delivery industry and retailing itself. exist in 1967: “E-commerce.” tucky’s status as THE center of distribu- One theory is Amazon intends to use Especially in Kentucky. Especially in tion-delivery logistics for North CVG as the launch point for its own full- 2017. Especially when that E-commerce America, the world’s most important scale package-delivery operations that is being driven by Amazon.com, the economic market. The Prime Air hub could rival FedEx and UPS, to whom it explosively growing online retail behe- will join the massive UPS Worldport now subcontracts much of that business. moth that seems capable of delivering package sorting and air-freight opera- Another theory is that the Hebron airport anything to the front door before your tion adjoining Louisville International will become the core of international ship- PayPal deduction clears. Airport and the DHL Americas Hub for ping operations for the company. And especially when there’s a wealth air freight already at CVG. Memphis- When Amazon made its big Kentucky of speculation the $1.5 billion Prime Air based FedEx, the other major U.S. logis- project announcement Jan. 31, the pre-

24 APRIL 2017 LANEREPORT.COM • THE LANE REPORT

April Lane 24-52.indd 24 4/3/17 9:53 AM sumption was Prime Air hub functions couldn’t begin until its massive building is completed. But sources familiar with company plans said Amazon will begin flying Prime Air craft at CVG in weeks rather than years, perhaps before there’s even a groundbreaking. Amazon will start operations in May, said well-positioned business insiders, through an agreement with DHL, the Bonn, Germany-based shipping and logistics company that operates one of its three world hubs literally across the street from Amazon’s new CVG site. “DHL can confirm that it has been contracted to provide a range of services to Amazon at the DHL Cincinnati Hub, including sorting operations and ground handling for the Amazon air network. We look forward to providing further support to this global customer,” area that were not owned by UPS; they Amazon revealed its first Prime Air 767-300ER said Bea Garcia, DHL media relations wanted to leverage their (UPS’) invest- jet at a Boeing hangar in Seattle in August 2016. director for the Americas, who declined ment. It created tens of millions in payroll further comment. taxes, $300 million in payroll and some- Amazon, which is often tight-lipped where north of 13,000 jobs for Louisville.” about its business plans, said it would The state’s central U.S. not provide any details beyond those in location provides a “… the January press release. It has not unique combination of Also citing the 27-year- announced a start date or construction infrastructure assets that old Delta deal as the timetable for the $1.5 billion project. quite honestly probably will region’s largest previous never be replicated,” Gill project, Northern Ken- Shot heard round the world said. “Just as you can only tucky Chamber of Com- Nevertheless, leaders of key Northern imagine that there will be Terry Gill, merce President/CEO Kentucky institutions are thrilled about just one Silicon Valley, Secretary, Trey Grayson said, “This is Kentucky Trey Grayson, the company’s decision. The worldwide there will ever only be one bigger than Toyota’s initial President/ business community is paying close atten- Cabinet for (1985) investment in Ken- concentration of global Economic CEO, Northern tion also. logistics competitors that Development tucky. It’s by far the biggest Kentucky Terry Gill, secretary of the Kentucky have chosen one state… So investment we’ve had in a Chamber Cabinet for Economic Development, said that’s a pretty remarkable advantage that single project.” of Commerce Japanese business leaders had plenty of we have to be cognizant of.” Amazon’s decision – questions and comments about the Ama- Kentucky Economic Development Grayson calls it a “trophy” economic zon project in March when he spent a Finance Authority approved tax incentives development project – takes some of week in Japan on a trade mission. up to $40 million through the Kentucky the sting out of Toyota’s 2014 decision Gill is enthused about the Amazon Business Investment program if Amazon to move 1,300 engineering and manu- project, which will be the company’s 12th meets job and investment targets. CVG’s facturing headquarters jobs from North- operation in the commonwealth. board approved a 50-year lease for up to ern Kentucky, shifting most of them to “This is on par with UPS’s worldwide 900 acres and committed to invest $5 mil- Plano, Texas; a few hundred to George- operations at Worldport (its global air hub lion in supporting infrastructure that will town, Ky.; and others to Michigan. in Louisville),” Gill said. “In that instance benefit the airport as a whole. “One of the toughest parts of Toyota’s it created at least 170 companies that “It is certainly the larg- departure was losing the ‘trophy,’” Gray- moved into that Louisville metropolitan est project in Northern son said. “Now we’ll be able to say for Kentucky Tri-ED’s 30-year Amazon Prime logistics, we’re their hub.” history in terms of total DHL’s hub, which capital investment opened in June 2013, announced with $1.49 bil- handles about 50 interna- lion and second largest in tional flights nightly, terms of total new employ- Dan Tobergte, according to Candace S. President/CEO, McGraw, the airport ees announced at 2,700 Northern employees,” said Dan Kentucky CEO. Those planes move Candace S. Tobergte, president and Tri-ED cargo among sites in CEO, and Kate Ferrer, North and South Amer- McGraw, director of marketing and projects for Tri- ica and the Caribbean. CEO, DHL is nearing comple- Cincinnati- ED, which worked on the inducement Northern packages. “The second largest project tion of a $108 million Kentucky would have been the Delta Air Lines expansion of its Americas International announcement for its CVG hub expansion Hub, which the company Airport An aircraft is loaded at the DHL Express Americas in 1990 with $375 million in capital said represents a $280 mil- Hub at CVG in Erlanger, Ky. improvements and 2,800 employees.” lion investment at CVG since 2009.

THE LANE REPORT • LANEREPORT.COM APRIL 2017 25

April Lane 24-52.indd 25 4/3/17 9:53 AM COVER STORY

An interior view of the DHL Express Americas Hub facilities at CVG that the Bonn, Germany-based company will begin sharing with Amazon Prime Air in May. Amazon will build its own 3 million-s.f. facilities across the street.

The logistics industry emerged in recent years as the second largest employment category in Kentucky with more than 59,000 jobs. Only automotive-related jobs, where there are about 90,000 workers, rank ahead of logistics, which is broadly defined as moving, distributing and delivering goods and materials. By contrast, some 6,400 people had coal mining jobs in Kentucky at the end of 2016. For decades one of the state’s signature industries, coal mining last year lost more than 2,000 jobs, about a fourth of its Jim Mayer, workforce, according to a Louisville January report from the Public Relations “In the interim, while they’re (Ama- “We are not sure of the magnitude of state’s Energy and Environ- Manager, UPS zon) building that hub, they’re going to these businesses in comparison to World- ment Cabinet. hire DHL to start work now,” said one port in Louisville,” he said. “Every industry To help land Amazon’s hub operation, source, who declined to be quoted by is increasingly reliant on just-in-time deliv- KEDFA in January preliminarily approved name in deference to Amazon and DHL’s ery, and our location has now become a financial incentive package worth up to reluctance to speak. “In May they’re going exponentially more competitive and $40 million in tax abatements over a to have (Amazon Prime) jets here, and attractive for businesses that need heavy- 10-year period if the company hits and they’re going to be using the DHL facility duty, global logistics partners.” maintains investment and hiring targets. during the daytime… DHL will still do “Amazon’s Prime Air Additionally, the General Assembly passed their night-time work, but Amazon will use hub promises to revolution- legislation providing tax credits that kick that (facility) during the daytime ize the fulfillment industry in after a company’s jet fuel sales and use “That’s why DHL is having a big hir- worldwide, and Kentucky is taxes top $1 million in a year. ing surge right now for a daytime shift,” excited to partner with About three weeks before the Amazon the source said. them as they embark on announcement, Bevin and the new With 2,400 employees at the airport this disruptive, transforma- Republican-majority state legislature made already, DHL earlier this year tive and exciting venture,” Matt Bevin, the commonwealth even more alluring for Governor, announced it is hiring another 900 – Gov. Matt Bevin said when Commonwealth business when the governor signed right- because of DHL’s own growth as well as the announcement was of Kentucky to-work legislation that eliminates manda- the work for Amazon, a source familiar made. “Kentucky’s ideal tory union dues payments by employees with the operation said. location, proven workforce and an already who don’t want to support a union in their extensive shipping and logistics industry workplace, a move Republicans and most Hubs beget a virtuous cycle? have been the backbone of our relation- economic development officials have Public officials envision a strengthening ship with Amazon for nearly 20 years.” advocated for years. virtuous cycle. Although precise employment figures “It clearly signals to businesses that “What we’re trying to do now is use the for Amazon in Kentucky are elusive and we have a welcoming climate in the state fact that UPS made their decision years vary seasonally, the company says it already and I think that helped,” Gill said. ago, Amazon made their decision in Janu- has 10,000-plus employees at 11 fulfill- ary 2017, DHL made their decision in the ment, distribution and returns operations Fulfilling Amazon’s ambitions past few years, and they made those deci- in the state, including four near CVG. Analysts who follow the company say the sions for a reason,” Gill said. “It wasn’t ran- The Cabinet for Economic Develop- Hebron project could become ground dom. It wasn’t serendipity. They looked at ment ranks Amazon fifth in the state zero for Amazon’s full-throttle foray into all of their available options, and this is with 7,232 full-time jobs in its list of Ken- the package delivery business, slicing cur- what makes the most sense in terms of tucky’s largest manufacturing, service rent ties to FedEx, UPS, DHL and the U.S. leveraging each state’s infrastructure.” and technology firms, but omits several Postal Service, which haven’t demon- There’s an expectation these economic Amazon locations that did not provide strated they have the capacity to keep pace large planets create a gravity that will the state with information. with the company’s spectacular growth, attract many others into the region’s orbit. The cabinet list is led by UPS, which especially during the holiday season in “I think with DHL and Amazon here has nearly 13,000 full-time employees. November and December. together in a right-to-work state, we can Including part-time workers, UPS has Another theory, tangential to specu- anticipate additional new businesses to 26,800 employees in Kentucky, accord- lation about the package delivery busi- locate here,” said Tobergte, whose agency ing to Jim Mayer, UPS public relations ness, is that the hub will become the focuses on economic development in manager in Louisville. He said 49 per- company’s primary U.S. terminal for Boone, Campbell and Kenton counties. cent of the employees are full-time. shipments destined to and from mar-

26 APRIL 2017 LANEREPORT.COM • THE LANE REPORT

April Lane 24-52.indd 26 4/3/17 9:53 AM kets in Europe, Asia and beyond as the “near term” – is “really geared toward the DHL-Amazon proximity in Cincinnati Amazon continues to expand outside of its own business.” might lead to some cooperation on inter- the United States. The agreement with “They have run up national shipments. He could not be DHL in Hebron lends some support to against capacity con- reached for further comment. the international shipping theory. straints among the ship- Even when Amazon completes its The company’s most widely publicized pers like FedEx and UPS Prime Air hub and moves out of the service meltdown occurred just before … so Amazon has done a DHL facility, it will be impossible for the Christmas 2013, when UPS and FedEx lot of different things to two shippers to ignore one another at proved to be incapable of on-time delivery open up capacity. They the airport. of millions of last-minute Amazon orders. have their own delivery Colin “They will literally be across the Sebastian, At the time, the two U.S. shipping com- last-mile drivers, and of Equity Analyst, street from one another,” said McGraw, panies and the U.S. Postal Service handled course now they’re build- Robert W. referring to Wendell Ford Boulevard, most or all of the company’s deliveries, ing air cargo (facilities) Baird & Co. which will be all that separates DHL according to Marc Wulfraat, president and as well. But I think over from the 400-acre tract where Amazon founder of MWPVL International, a sup- the long term what’s likely to happen is will build its hub. ply chain, logistics and distribution con- that Amazon will gain a lot of compe- sulting firm in Montreal. tency, a lot of knowledge and expertise Lots of logistics projects at CVG “That’s the part of the in shipping and transportation, and The Amazon hub, for which a total of supply chain they don’t when Amazon gains that kind of knowl- 900 acres have been leased, is not the control because there’s a edge they tend to start offering that as a only recent logistics project at or near third party involved, and service. Given how fast Amazon is grow- the 70-year-old airport, McGraw said. that’s the part of the sup- ing, they probably need all the capacity CVG has a $4.4 billion impact on the ply chain that can break they can build for their own business.” Greater Cincinnati economy, according just like in 2013 at Christ- Marc It might be three to five years before to a January report by the Center for mas when a whole bunch Wulfraat, Amazon could compete in the $400 bil- Economic Analysis and Development at of stuff didn’t get to cus- President, lion U.S. logistics industry against UPS Northern Kentucky University. Fulfill- tomers… (They) didn’t MWPVL and FedEx and other package delivery ment and delivery are growing rapidly. International fulfill their promises,” companies, he said. Aeroterm, owned by Realterm Airport said Wulfraat, who stresses that he has One question industry watchers Logistics Properties of Annapolis, Md., is no business relationship with Amazon. consider is whether CVG might building a 132,000-s.f. multitenant ware- “Since then, I believe there’s been a become Amazon’s primary terminal for house for which FedEx will be the primary declaration internally that we (at Amazon) overseas shipping. tenant, McGraw said. A few miles south- want absolute control over our transporta- “The hub that they’re setting up in east, FedEx Ground is moving ahead with tion outbound, and the way we’re going to Cincinnati will ultimately be connected a 355,000-s.f. building on 80 acres, and do it is to set up a network that allows us to to other airport hubs around the world that site is adjacent to its existing sorting control the movement of goods and that’s that Amazon will control eventually,” center in Independence that employs 500, what’s been transpiring since about 2013,” Wulfraat said. “The next step is to con- according to Jack Mazurak, communica- Wulfraat said. nect the U.S. to Europe, China, India” tions director for the economic develop- “They are scared that if they rely on a and elsewhere. Five years down the road ment cabinet. The FedEx Ground project third party to handle that (delivery), “they can connect it all into a small vil- is budgeted at $200 million and expected disasters will happen and they don’t lage … make the world a small village.” to create 62 full-time jobs. want that,” he said. Brian Clancy, managing director of Wayfair, the Boston-based online A prescient story on the Wired maga- Logistics Capital & Strategy in Washing- retailer of home furnishings and décor zine website five days after that Christ- ton, D.C., was quoted by Reuters as saying items, recently opened a 900,000-s.f. distri- mas pileup suggested Amazon seemed to be positioning itself to compete in the package delivery business. “In the long term, it’s not hard to see the company … with its own shipping and logistics, eventually creating its very own alternative to UPS and FedEx,” the article predicted.

If Amazon delivers, when would it be? Colin Sebastian, an equity analyst who focuses on internet companies, including Amazon, in the San Francisco office of Robert W. Baird & Co., said he believes the Northern Kentucky hub – at least for

An Amazon Prime Air delivery drone was on display to the public for the first time March 12 at the SXSW Conference in Austin, Texas. The logistics industry press speculates that once laws and regulations are in place Amazon drones could achieve 30-minute deliveries in areas near regional centers.

THE LANE REPORT • LANEREPORT.COM APRIL 2017 27

April Lane 24-52.indd 27 4/3/17 9:53 AM COVER STORY

U.S. Customs and Border Protections officers inspect a shipment from China at the DHL Americas Hub in Erlanger, Ky.

bution center on 52 acres of airport property. Dermody Properties, headquartered in Reno, Nev., built that facility. A second warehouse with 264,000 s.f. is under construction and should be completed in May, according to Dermody. Van Trust Real Estate LLC of Kansas City is building a 511,000-s.f. warehouse and distribution center on 41 acres of airport land, McGraw said. CVG officials do not yet know who will occupy the Dermody and Van Trust buildings. McGraw, Wulfraat and Randy Woods, editor of New York-based Air Cargo World, which tracks the air cargo industry, all said the Amazon operation at the Cincinnati- Northern Kentucky airport will be a hub- and-spoke operation that duplicates what UPS, FedEx and DHL do in Louisville, The January announcement dwarfs Whether apple or orange, it’s big Memphis and Cincinnati, respectively. the entire total for new business devel- It’s tricky to compare a $1.5 billion Once an Amazon item has been opment and existing business expan- investment in 2017 to one that was “picked, packed and shipped” at a ful- sions that were reported for all of 2016 made some 30 years ago, but it’s safe to fillment center, Wulfraat said, several by Bevin’s Cabinet for Economic Devel- say that the Amazon project ranks as things can happen depending on the opment. Last year, 33 companies said one of the single largest business invest- distance between the customer and the they planned to invest nearly $542 mil- ments in Kentucky history. fulfillment center. Customers within a lion in the state and created 1,850 new By comparison, when five-hour drive can be handled through full-time jobs, according to a mid-Febru- Toyota announced in a local “sortation” or delivery center. ary report from the cabinet. 1986 that it would build In the future, however, when custom- About 90 percent of that total – Camrys at an assembly ers order products housed in distant fulfill- roughly $488 million – was companies plant in Georgetown, the ment centers, the package will be loaded that are in the warehousing, order ful- company said it would on a plane and shipped to CVG for sorting fillment or distribution business, the spend $800 million and to as many as 40 U.S. regional destina- state said. create 3,000 jobs, accord- Rick tions, Wulfraat said. After planes return to The Amazon announcement bolsters ing to Rick Hesterberg, a Hesterberg, a region sortation center, he said, pack- Bevin’s contention that Kentucky is a spokesman for the auto- Spokesman, ages would go on trucks for “last mile” major player in moving products across maker. Toyota delivery to a customer. the country and around the world. Today, after multiple In a year-end report, Air Cargo World Evidence of that status can be found expansions, Toyota’s 7.5 million-s.f. plant called 2016 the “Year of Amazon” for a at the UPS Worldport in Louisville, makes the Camry, Avalon and Lexus and variety of reasons, including the com- which the company describes as “its only has about 8,000 full-time employees, Hes- pany’s air transport business experi- all-points hub: Packages can come from terberg said. ment in March 2016 in Wilmington, anywhere and go to anywhere.” World- Toyota’s investment in the George- Ohio, where it leased 20 Boeing 767 port handles 300 flights each day, said town plant – including expansions, cargo planes from Air Transport Ser- UPS spokesman Mayer. retooling and technology updates – vices Group. When it unveiled that fleet Since 1999, the company has invested comes in at $5.9 billion, he said. in August, Amazon announced it had $2.4 billion in its Louisville facilities, which In its “Global Powers of Retailing” contracted for another 20 planes and include the 5.2 million-s.f. Worldport, the report for this year, the consulting firm planned to operate a hub-and-spoke separate Worldport Freight Facility and its Deloitte ranked Amazon as the tenth operation from Wilmington, less than Louisville Centennial ground hub. The largest retailer in the world based on 50 miles from Cincinnati and roughly company announced in August 2016 it revenues reported for the 2015 fiscal 65 miles from the Hebron airport. would spend $300 million to nearly triple year, when Amazon reported sales of the size of its ground hub to about 840,000 $79.2 billion. Deloitte’s report, which Kentucky amassing logistics assets s.f. and add 300 jobs. ranks the 250 largest retailers in the Amazon’s January announcement Amazon at least partially drives that world, said Amazon ranked 186th when became the second instance of Wilm- growth. it was first listed in the “Global Powers” ington losing a big tenant to CVG. In “Amazon continues to be an important report in 2000. ■ 2008 and 2009 in a strikingly similar and valued UPS customer. They, like many move, DHL moved its package and sort- other UPS customers, are controlling Greg Paeth is a correspondent for The Lane Report. ing operations from Wilmington to cre- some portion of their logistics network,” He can be reached at [email protected] ate its Americas Hub in Hebron. Mayer said.

28 APRIL 2017 LANEREPORT.COM • THE LANE REPORT

April Lane 24-52.indd 28 4/3/17 9:53 AM CONSTRUCTION Women Wear Hard Hats Too Tommy Hatcher, Scott, Murphy & Daniel photo Sarah Murphy Ford, vice president of Hartz Contracting, discusses plans with Lee Edwards, superintendent and his construction crew onsite at a Logan Aluminum project.

National Association of Women in Construction Women working in construction can find camaraderie, learning and networking opportunities in the National Association of Women in Construction. There are chapters in Lexington, Louisville and Cincinnati. Learn more at nawic.org.

gram itself has only grown about 25 percent in that same timeframe, Arias said. “I’ve been in construction for 25 years,” he said. “Women were very few and far between when I first started in construction. In the decade that I have been at EKU, there has been a big change. What I have noticed recently is that I have employers call me and Construction remains mostly male, but female request female students specifically. These are major companies, billion-dol- worker and manager ranks are a rising trend lar organizations that call me and their first question is: Can you send me a list of your high-performing students, and BY LORIE HAILEY our first preference is high-performing female students. The industry has real- ized the benefit of having that diversity.” HEN we envision con- according to program Chad LaRue, execu- struction workers, we coordinator Scott Arias. tive director of the Ken- picture men in hard EKU’s program was the tucky Association of hats, operating heavy first accredited in Ken- Highway Contractors, equipment or perhaps tucky (in 1977) and one of said there has always directingW traffic. In recent years, the oldest in the country. been a female presence however, more and more of the The largest such program Scott Arias, in highway construction, Kentuckians in those iconic hats are in the Kentucky-Tennes- Construction but it continues to grow. Chad LaRue, women, tackling various construction see-Ohio region, it has Management “You see it everywhere Executive roles from CEO to laborer. produced 19 CEOs and Program from flaggers on the field Director, It still is a male-dominated field: In had nine semesters of 100 Coordinator, on a highway construction Kentucky Association 2014, about 9 percent of U.S. construc- percent job placement, Eastern job to equipment opera- Kentucky of Highway tion jobs were held by women, accord- Arias said. tors and up to administra- Contractors ing to the U.S. Bureau of Labor Western Kentucky University tive and management jobs Statistics, but there seems to have been University and Northern in the companies as well,” he said. “I can a paradigm shift in the attitudes about Kentucky University also think of several companies off the top of women’s roles in the industry. While have construction man- my head that are owned and operated by state figures are not available, those agement programs. women that are construction related.” working directly in construction in This semester, there Kentucky say there are increasingly are 127 students enrolled Blazing – and paving – trails more women in construction careers, in EKU’s program. Of Diana Hagan, Messer Construction project manager and the industry has not only embraced those, 20 are women. In Project Hagan, the former lone female in EKU’s them but benefitted from the diversity 2007, there was only one: Manager, program, at age 32 is president of the Lex- they bring. Diana Hagan, now a proj- Messer ington chapter of the National Association One measure of this is at the educa- ect manager at Messer Construction of Women in Construction, an adjunct tional level: Enrollment by females in East- Construction Co. Co. professor at Bluegrass Community and ern Kentucky University’s construction While women are still underrepre- Technical School, and a wife and mother. management degree program has sented, the increase in enrollment is She started out studying architecture increased dramatically the past decade, remarkable, especially considering the pro- and interior design, where there were

THE LANE REPORT • LANEREPORT.COM APRIL 2017 29

April Lane 24-52.indd 29 4/3/17 9:53 AM CONSTRUCTION

The 2014-15 graduates of the Kentucky Small Business Development Center’s Lexington Minority and Women Contractor Training Program celebrate the completion of the 10-week course, which covers topics such as business planning, contract law, bonding, accounting and financial statements, bidding, scheduling, cost management, project cash flow analysis, safety, administration and marketing.

other female students, but construction is

what she really loved. After an EKU associ- KSBDC photo ate’s degree in architecture, Hagan enrolled in construction management. versity of Kentucky, Ford returned Hagan said, but her gender presented Being the only woman in her classes home to Bowling Green to temporarily less of a challenge than the basic matter didn’t bother her because she knew con- help her father’s business. of being someone starting out in the struction was the right field for her. “At that time, the business had just industry. A new employee must work to “I was always interested in how things grown exponentially, and there were gain the respect of their coworkers worked,” she said. “When I was younger, things that my dad wanted me to come regardless of their gender, she said. I always loved being outside.” home and do. We had just planned on a “It wasn’t hard for me to find some Hagan was not just an average stu- short period of time,” she said. “But it camaraderie with not only the women dent, and not because of her gender. In ended up that I just fell in love with it and but the men out in the field,” Hagan 2011, she became the first EKU student appreciated it so much that I stuck with it. said. It is imperative to be able to “com- to win a prestigious Association of Gen- So I’ve been doing this now for 12 years.” municate and handle different person- eral Contractors national scholarship. Ford’s father started her out as a alities. That’s No. 1 on the list of being a “Diana is a great credit upon females laborer. Early on, she started moving good project manager, just being able to in the industry,” Arias said. “Messer around the company and “held every deal with different personalities.” absolutely loves her. She really opened role possible,” she said. The biggest challenge, Ford said, is the door for future students of ours to “When I first got home, I immediately finding a work-life balance. As a mom to go work there. She is a good mentor for thought with a business degree that I’d get two young children, it is important to our younger students, too.” started in the office, but my dad had me not only “be a good business person, Also paving the way out as a laborer for that first couple weeks but also try to be a No. 1 mom. Children for other young women is and I kept moving to each position. I am so are only little for a short time.” 34-year-old Sarah Murphy glad that I did, because now I truly know To help keep priorities in line, she Ford, vice president of what it’s like in every field, and I have the has had to set boundaries. She turns her Hartz Contracting in utmost respect for every individual who phone off at a certain time each night Owensboro. works for our company,” Ford said. until her son and daughter are asleep, Ford literally grew up in Five years ago, Scott, Murphy & Daniel and when necessary she brings her chil- the construction business, Sarah Murphy acquired Hartz Contracting. The owners dren to the office. Ford, Vice but never dreamed she President, were retiring and wanted the Bowling Construction’s seasonal nature with would follow in her father Hartz Green-based company to interview their occasional extra-long work days can and mother’s footsteps. Yet Contracting employees, some of whom had spent their make work-life balance extra difficult, that’s exactly what she did. entire careers at Hartz, Ford said. Hagan said. Her father is Mike Murphy, one of “Once we started interviewing, it was the founders of Scott, Murphy & Daniel, kind of a match made in heaven. These What women bring to the table a large construction company in Bowl- guys were incredible, just like our Women are really good at multitasking, ing Green. Her mother is Mickeye Mur- employees,” she said. “So, we just found Hagan said. phy, owner of Mick-Murf Construction, this opportunity to keep their name and “That is a definite benefit in the con- a highway construction subcontractor. a lot of their employees.” struction industry because as a project After studying marketing and Hartz became a division of SMD, manager, you are juggling multiple sub- finance and graduating from the Uni- with Ford at the helm as its vice presi- contractors and in and out of meetings dent. Both companies specialize in con- and scheduling … you have a lot going crete construction, grading and on,” she said. “I think women are better excavation, industrial concrete, design at that in some ways than men.” and build, general contracting, and con- Women also can bring a fresh per- struction management, she said. spective to a construction project. “Women see things differently,” she Fewer challenges than expected said. “If you have a diverse group of peo- Being a woman in construction hasn’t ple, it helps your team do a good job on presented significant challenges, your construction project.” according to Hagan and Ford, but Good communication skills are not a Hagan occasionally met with skepticism gender-specific trait, but Arias said some when interviewing for jobs after college. of the best managers he has ever worked “I got some looks like, ‘What are you with have been women who are excel- EKU Construction Management program doing here?’” she said. “I will say that lent at communicating. coordinator Scott Arias teaches a class on bidding Messer was not like that, though.” “The best project manager I ever had during the Kentucky Small Business Development Center’s Lexington Minority and Women Connecting with the older genera- was a woman,” he said. “The reason she Contractor Training Program. tion of workers did require more effort, was the best is that her way of communica-

30 APRIL 2017 LANEREPORT.COM • THE LANE REPORT

April Lane 24-52.indd 30 4/3/17 9:54 AM tion was far more effective. That’s a key Department of Transportation explains helped women and minority contrac- strength, knowing how to negotiate and on its transportation.gov website. tors hone management skills so they knowing how to deal with The Kentucky Transportation Cabi- can better compete in the construction situations and not letting net’s Small Business Development industry. ego get involved.” Branch certifies firms that are least 51 Classes are small and are usually half Becky Naugle, state percent owned and controlled by women and half other minorities, Nau- director of the Kentucky socially and economically disadvan- gle said. The 10-week Lexington Minor- Small Business Develop- taged individuals, which includes ity and Women Contractor Training ment Center, says women women and other minorities. DBE cer- Program covers topics such as business who have participated in Becky Naugle, tification gives disadvantaged busi- planning, contract law, bonding, KSBDC’s contractor train- State Director, nesses the opportunity to participate in accounting and financial statements, ing program “are very Kentucky Small contracts and subcontracts financed bidding, scheduling, cost management, good at asking for the help Business with any federal funds. project cash flow analysis, safety, admin- they need, and that is a Development During the recently completed Ohio istration and marketing. It also helps trait that serves them well.” Center River Bridges Project, Kentucky estab- them learn how to become subcontrac- lished a $1.9 million program called tors and connects them with other busi- Opportunities for women Bridges to Opportunities (B2O) to ness owners. While women remain underrepresented attract women and minority construc- The issues women construction work- in construction, there are many pro- tion workers. B2O helped place skilled ers and business owners encounter are not grams to level the playing field, provide workers in jobs, and others entering the much different from those faced by their instruction and help women who are industry get apprenticeships or get into male counterparts, Naugle said. interested in construction careers. The a program or school to train them for “A lot of them (female participants) national Disadvantaged Business Enter- future construction work. know their technical skills really well, prises program helps women and B2O has trained many women to but (in the training program) what they minorities compete for federally funded become welders, program director Gill want to work on are those management transportation projects. Finley said. It has produced female labor- skills. Managing cash flow, getting All federally funded transportation ers, flaggers and a small number of car- employees when they need them … projects must meet DBE goals to “remedy penters and heavy equipment operators. those are universal issues across gen- ongoing discrimination and the continu- On a smaller scale, the Kentucky der,” she said. ■ ing effects of past discrimination” in high- Small Business Development Center’s way, transit, airport and highway contractor training program, which Lorie Hailey is a correspondent for The Lane Report. safety contracting markets, the U.S. just wrapped up its eighth year, has She can be reached at [email protected]

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AprilKY StatePark Lane 24-52.indd Golf LaneReport 31 April2017.indd 1 3/17/20174/3/17 12:59:57 9:54 PM AM CONVENTION FACILITIES

An artist’s rendering of the Kentucky International Convention Center in downtown Louisville, which is undergoing a $180 million renovation and expansion expected to be completed in 2018. It will add 50,000 s.f. of exhibition space, bringing the total to 200,000 s.f.

tions, as well. Combine that with the expansion of the local restaurant scene and new downtown Ohio River bridges and you could say Louisville has developed a “virtuous circle” of businesses that can drive business to each other. “When it’s all done, we will double downtown’s hotel room space from 3,000 to 6,000, and that will be a game changer for us,” said Jason Rittenberry, president and CEO of Kentucky Jason Ventures, the organiza- Rittenberry, tion that oversees the President/CEO, Louisville Convention Kentucky Ventures Center and the Kentucky Exposition Center at the Fairgrounds. “Thankfully, the mayor’s office and the Convention and Visitors Bureau took a comprehensive point of view of these expansions. You couldn’t expand Construction Will Keep the convention center without also expanding downtown hotel rooms, and vice versa. It’s an economic ecosystem, and you have to develop it all together Visitor Cash Flow Strong for it to work,” Rittenberry said. “We’re going to see it all come together in Lou- Louisville and Lexington CVBs in midst of major isville in spring/summer 2018.” The main player in the expansion, of facilities expansions; Northern Kentucky laying its plans course, is the Kentucky International Convention Center, which is undergoing a $180 million expansion that will be BY SUSAN GOSSELIN completed in 2018. It will add a minimum of 50,000 s.f. of exhibit space, which will bring its total exhibit space up to EADS in hotel beds, crowds Summe said, noting that “300 to 400 peo- 200,000 s.f. A new 40,000 s.f. ballroom in shops and restaurants, ple coming and staying for a week in your will be created, without expanding the lines at tourist destinations, town can spend up to $500,000. Tourism is walls of the building. On the whole, offi- and jobs, jobs, jobs. Such is the third-largest employer in this state. cials predict the new improvements will the currency of the conven- And to stay competitive, you have to stay increase the economic impact of the con- Htion trade. And with business on the grow, current. It’s a matter of growth, of course, vention center dramatically. key convention centers in Kentucky are but it’s also a matter of not falling behind.” According to Rittenbery, the new expanding to grow with it. expansion will allow the convention In the past five years, Louisville’s 2018 transformation center to bid for events of up to 10,000 convention centers in Downtown Louisville is packed with people – enabling it to compete directly Louisville and Lexington construction projects, and many of with Louisville’s larger rivals, such as have announced expan- them have to do with supporting the Nashville, Indianapolis and Columbus, sion projects worth over convention industry. The Omni Hotel, a Ohio, all of which have state-of-the-art $430 million. And the new 612-room luxury hotel set to open convention and meeting facilities. growth doesn’t appear to Eric Summe, in 2018, will bring 70,000 s.f. of meeting “The space will have all the upscale be slowing. Eric Summe, President/ space plus a speakeasy, bowling alley, amenities event planners are looking for, president and CEO of CEO, meetNKY spa, rooftop swimming pool and a like internet broadcast abilities and Wi-Fi, meetNKY, said it is considering a similar 20,000-s.f. fresh market and grocery. digital monitors and wayfinding, larger expansion of its Northern Kentucky The downtown Marriott and Hyatt lobby size, and pre/post-event reception Convention Center in Covington. Regency hotels, long-time bastions of spaces, which keeps them from having to “Convention groups translate to visitor the local convention hotel scene, have move conference social events off site. It expenditures. It’s just that simple,” just finished multimillion-dollar renova- will be beautiful, modern and an invest-

32 APRIL 2017 LANEREPORT.COM • THE LANE REPORT

April Lane 24-52.indd 32 4/3/17 9:54 AM THE LANE REPORT • LANEREPORT.COM APRIL 2017 33

April Lane 24-52.indd 33 4/3/17 9:54 AM CONVENTION FACILITIES

Northern Kentucky Convention Center occupies a desirable location just off the Ohio River with a view of the Cincinnati skyline but meetNKY officials feel an urgent need to expand and are exploring options to do so, especially since 5,300 s.f. of Ballroom A is being converted to training space for CTI Clinical Trial and Consulting Services, which is moving its headquarters to Covington. leaders at the center say that its current size is cramping their opportunities. “We’re in a position now that if we don’t find a way to expand, we will start sliding backwards,” said Summe, who directs the recently rebranded meetNKY organization. “We have regular, repeat clients who are telling us that they can’t come back because we no longer have the space and facilities they need.” The site is currently 204,000 total s.f., with 110,000 s.f. of meeting, exhibition and social function space. They don’t hope to have the assets necessary to compete with larger venues like Indianapolis or Las Vegas, Summe said. But to regularly win business against com- petitor cities such as Kansas City and Rich- mond, Va., they need more space. They ment that can take us through for years to events that need the outdoor, flexible tried before in 2004 when a consultant come,” Rittenbury said. space, like sports shows, outdoor farm helped create a plan for expansion of the The $180 million investment for the machinery shows and the like,” he said. current facility. That effort failed due to facility comes from a bond issue, he Between the two centers, Louisville being hemmed in by other large develop- said, which will be paid back by increas- can now compete on the vast majority of ments that couldn’t be annexed. But ing the Louisville-area room tax. event request for proposals (RFPs) Summe said he is feeling better about The downtown Kentucky International being circulated. their prospects this time around. Convention Center, however, is only part “Louisville is a hot city. Bourbon is In September 2016, the Internal Rev- of the convention picture in Louisville. fueling that, our restaurant scene, and enue Service announced it will downsize The Kentucky Fair and Exposition Center horse racing, of course,” Rittenbury said. and close an 1,800-employee operation boasts 1.2 million s.f. of convention space, “The Convention and Visitor’s Bureau in a sprawling building that borders the and a large outdoor presence for events has done a phenomenal job of market- current Convention Center. It puts a and parking. It, too, is being targeted for ing our city, driving business to us and highly desirable 23-acre site into play improvement. An effort is underway to keeping us full. I can’t wait to see what sometime in 2019. find a developer to bring in an on-site they’ll be able to do once all our new “That changes the conversation, hotel with at least 500 rooms, so people at resources are available to us,” he said. because it opens up acres of land we could Kentucky Fair and Exposition Center possibly utilize,” Summe said. Officials at events won’t have far to travel to get to Northern Kentucky eyes expansion the center are working to secure approval their accommodations, Rittenbury said. The Northern Kentucky Convention of a new 1 percentage-point tax hike that “The Kentucky Fair and Exposition Center currently holds an enviable loca- could start a building fund. Center is a very different event market tion on the banks of the Ohio River in “Fortunately, our current room tax is than the one we have for the downtown Covington, Ky., within sight of Cincin- just 11.3 percent, much lower than Lex- convention center, but they are both nati’s visually energetic skyline. While ington at 16 percent and Louisville, at equally important. The Fair and Exposi- that puts it in position to benefit from over 17 percent. So we have room to tion Center tends to attract large-scale the amenities of their entire region, raise it,” he said. Barbecue, Bourbon Bluegrass Owensboro, Kentucky & May 12 - 13 www.BBQfest.com

April Lane 24-52.indd 34 4/3/17 9:54 AM Lexington Convention Center, which turned 40 years old in 2016, is beginning a $250 million remodeling and expansion that will replace its 66,000-s.f. exhibition space with a new 100,000-s.f. exhibition hall and add a 22,500-s.f. ballroom and 30,000 s.f. of new meeting space.

If approval is achieved, Summe estimates a study and facility design would take around a year; if that goes well, construction would take a minimum of another two years. “We have a wonderful, heritage destination here with lots of activities available. All we have to do is stay competitive and keep current,” he said.

Lexington getting expansion underway In 2014, an ambitious plan to expand the Lexington Center was put on hold, but in 2016 needed government approvals were Construction is set to begin on the Even with the expansion, he said, mid- finally granted for a remodeling and project this spring, with construction sized events will continue to be Lexing- expansion of the center that will double stretching until 2021. ton’s sweet spot. But events that come to Lexington’s meeting capacity. The $250 “It was a pretty simple decision, Lexington will enjoy a certain exclusivity million expansion will include a new con- really,” Owen said. “Lexington Center and personal attention they wouldn’t get tiguous 100,000-s.f. exhibit hall, a new currently has an economic impact in in more crowded convention cities. 22,500-s.f. ballroom and an additional our region of $40 million a year. If we He predicted Kentucky’s unique cul- 30,000 s.f. of meeting space. The expan- make the renovations and expand our ture and business amenities will con- sion also will include a new catwalk to space, then the economic impact of this tinue to make it a prime destination for Rupp Arena, making it a seamless venue facility would be near $60 million. If we convention goers. addition for convention business, as well. do nothing, and leave the facility the “Lexington, and indeed, Kentucky in The project was made way it is, that economic impact would general, is the sort of place that people possible by a combination erode to $30 million. That’s a $30 mil- like to come to,” Owen said. “Eighty per- of city and state tax-backed lion spread, year after year. You can’t cent of the country lives within a one- bonds for $250 million, ignore that. It’s simply what you have to day drive of here. Lexington has more and a hotel tax increase of do to stay competitive.” direct flights, 19, than any other city of 2.5 percentage points, The making of the decision, how- its size. We have the (Kentucky) Bour- making Lexington’s rate ever, had been a long time coming. bon Trail and so many things to do. Lex- 9.5 percent. Bill Owen, Bill Owen, Owen noted that a major study in 1986 ington’s downtown is safe, walkable and president and CEO of Lex- President/ as well as one done by PriceWater- boasts a Hyatt, Hilton and 21C. Drive 15 ington Center Corp., CEO, houseCooper in 1997 both predicted minutes in any direction, and you’ll noted that the center is city Lexington Lexington would need 100,000 s.f. of have a world-class landscape to enjoy. owned. Consequently, Center Corp. meeting space to remain marketable. It’s a favorable destination, and a favor- because the state is putting “Right now, Lexington Center can able impression of our state that we can up $60 million for the project, it will only respond to 65 percent of the avail- leave. Now, we just have to get the word receive proceeds from 0.5 percent of the able (event) RFPs,” Owen said. “Once out to meeting planners to include Ken- hotel tax until the commonwealth is we finish this expansion, we’ll be able to tucky as a new destination possibility.” ■ repaid. The bulk of the rest of the tax rev- respond to 85 percent of them. It gives enue will go to the city to pay off the $190- us a much bigger pool of event planners Susan Gosselin is a correspondent for The Lane $200 million in bonds they offered. to work with.” Report. She can be reached at [email protected]

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April Lane 24-52.indd 35 4/3/17 9:54 AM TOURISM

Lake Cumberland region tourism sector members say increasing annual business since 2009 Lake Cumberland has been growing exponentially the past few years. munity down here. We are a very steady community (year-round) and in the summer I defy anyone to find a place Tourism at Full Pool with a more robust economy than Pulaski County.” A low tax rate and friendly business Region expects another high water mark and social environment contribute to a desirable area for people to live and for visitor numbers and spending in 2017 retire, according to Clue. Many businesses in the county have connections BY KATHIE STAMPS to tourism and Lake Cumberland, “a lot of people do generate a good percentage of their revenues attached to tourism in one shape, fashion or TRESS relief is big business in The Kentucky Depart- form,” he said. “Tourism south-central Kentucky, thanks ment of Travel and Tour- breeds tourism.” to hiking, horseback riding, ism has nine named Many tourists have golfing, swimming and other regions across the com- come back to live in Monti- outdoor activities – especially monwealth, and Lake cello after retirement, con- Sboating – in and around 160,000-acre Cumberland is hub of the tributing again to the local Lake Cumberland. “Southern Shorelines” economy, said Charles Bobby Clue, Peters, a former city coun- The massive water and recreation region, an area comprising Executive Charles Peters, resource is owned and managed by the 10 counties, five of which Director, cilman and retired post- President, U.S. Army Corps of Engineers, Nashville surround the lake: Clin- Somerset- master who is the Monticello- District, which conducted a $600 mil- ton, McCreary, Pulaski, Pulaski volunteer president of the Wayne County Chamber Monticello-Wayne County Chamber of lion repair on 256-foot-tall Wolf Creek Russell and Wayne. Commerce Dam from 2007 through 2013, when “We’re white hot. of Commerce Chamber of Commerce. water levels were kept some 40 feet Somerset is doing quite below normal. well these days,” said Bobby Clue, execu- Tourist stays crest again in 2017? Back at its usual 710-foot summer pool, tive director of the Somerset-Pulaski Wayne County has seen an increase in bustling Lake Cumberland offers resi- Chamber of Commerce. “We’ve been tourism expenditures each year since dents and tourists year-round entertain- growing exponentially over the last five 2008. “That includes the time that the ment and getaways plus seasonal festivals and a half years. Lake Cumberland is dam was being worked on,” Peters said. and events during the warmer months. paramount to the success of our com- “Lake Cumberland has an impact on

36 APRIL 2017 LANEREPORT.COM • THE LANE REPORT

April Lane 24-52.indd 36 4/3/17 9:54 AM At the urging of local officials in Pulaski and Wayne counties, Gov. Matt Bevin renamed the U.S. 90 bridge crossing Lake Cumberland the Houseboat Capital of the World Bridge to recognize a regional construction sector specialty.

Lake Cumberland by the numbers • $224,767,324 tourism expenditures* • 6,560 tourism industry employment* • 63,000 surface acres of the lake • 1,255 miles of meandering shoreline • 101 miles, length of Lake Cumberland • 9 commercial marinas • 9 golf courses • 2 state parks * For the five counties surrounding Lake Cumberland A business surge is being felt across the manager for Safe Harbor Marinas, which Source: 2015 Kentucky Tourism, Arts & Heritage Southern Shorelines region. operates three major marinas as well as a Cabinet economic impact study “Tourism around Lake Cumberland, hotel, restaurant and bar, and rents cabins, specifically Jamestown and Russell houseboats, pontoon boats and personal Springs, is fantastic and definitely up watercraft. “We weathered the storm.” employment, occupational taxes and from previous years,” said Janette Mar- Lake Cumberland State Resort Park insurance fees generated from boat son, director of tourism for the Lake recently renovated all the lodge rooms owners. Others benefiting are gas sta- Cumberland Tourist Commission. “We and cabins. Lure Lodge Restaurant got tions, restaurants, grocery and supply have more people staying in Russell a complete makeover and more recently stores, boat storage units, boat repair County this year than since we began so did its miniature golf course. businesses, and contractors performing tracking it in 1985.” “The economic impact of our very various maintenance needs on boats The six-year drawdown “affected the popular Kentucky State Park is huge for and houseboats.” whole region,” said Layne Wilson, district our county,” Marson said.

THE LANE REPORT • LANEREPORT.COM APRIL 2017 37

April Lane 24-52.indd 37 4/3/17 9:54 AM TOURISM

Camping is one of the many popular outdoor recreation activities that attract more than 1 million people to the Lake Cumberland region. General Burnside Island State Park and Lake Cumberland State Resort Park operate full-service campgrounds as do many private providers in the five counties adjoining the 63,000-acre lake.

“This year, we will have a white sand beach for our visitors to enjoy,” said Caro- lyn Mounce, now in her 12th year as executive director of the Somerset-Pulaski County CVB. In response to many visitor requests, a Pulaski County Chamber Leadership class took on creating the beach as a special project. Lake Cumberland is the main draw for visi- Janette tors, Mounce said, but Marson, “we have loads of other Director of things for our visitors to Tourism, Lake Cumberland There are four major commercial ing,” Marson said. “The waters have do,” she said, citing Tourist marinas in Russell County, including been up for three or four years now; events such as the Crap- Commission Lake Cumberland State Dock, with a that’s not even an issue. It was a PR pie USA and FLW Bass fifth in the works. nightmare, though, as people had the tournaments, both in April, the annual “We are especially proud to note that impression there was not enough water, Master Musicians Festival in July, and there are more rental houseboats here and that was not the case.” Somernites Cruise, a monthly car cruise in Russell County, Ky., than anywhere Near the water, amenities are on the and block party held April through else in the nation and we just keep grow- rise also. October.

38 APRIL 2017 LANEREPORT.COM • THE LANE REPORT HA-1132 Lane eport 1-4Ad-Apr2017 inal.indd 1 1/27/17 1:31 M

April Lane 24-52.indd 38 4/3/17 9:54 AM Still the houseboat capital tive vice president at Trifecta Houseboats, “At the boat and travel which formed in 2014 when Stardust shows we attended in Jan- Cruisers, Sumerset Houseboats and Thor- uary and February, peo- oughbred Houseboats merged. The three ple were buying boats at custom houseboat brand identities the shows, people were remain, but all are now manufactured in buying campers,” one facility in Monticello. Carolyn Mounce said. “They Mounce, While a state senator, Girdler cham- wanted to talk about Executive pioned another tourism-related issue: what’s happening in and Director, pushing back the school year start date. around Lake Cumber- Somerset- “I anticipate the gov- land. I believe this sum- Pulaski County ernor signing this legisla- mer will be another CVB tion into law soon,” he banner year and better said in late March. “This than last year. And last year we were will be a tremendous step thrilled.” in the right direction for Somerset native Chris Girdler, whose tourism and our overall grandfather, Jim Sharpe, is credited economy in Kentucky, as Chris Girdler, with building the industry’s first house- the early August school Executive Vice boat in 1953, spearheaded recognition dates were costing us President, for the region when he served in the 6,000 jobs, $27 million in Trifecta Houseboats state Senate from 2012 to 2016. lost tax revenue and over In 2014, Gov. Steve Beshear signed a $432 million in economic activity.” Lake Cumberland State Dock in Jamestown is one resolution designating Kentucky the The region’s custom houseboat con- of multiple sites for recreation rentals ranging from Houseboat Capital of the World, and in struction sector “suffered tremendously personal watercraft to luxury houseboats. 2016, Gov. Matt Bevin renamed the U.S. during the latest economic recession, 90 bridge across the lake connecting where we saw the cost of raw materials Wayne and Pulaski counties as the continuing to climb while the demand for grown a lot in the last year and most Houseboat Capital of the World Bridge. the houseboats declined dramatically,” recently began to really increase.” ■ Girdler worked in his family’s Sharpe Girdler said. “We envision many better Houseboats business before his political years ahead. The amount of interest and Kathie Stamps is a correspondent for The Lane Report. career and in March 2017 became execu- the uptick in our production and sales has She can be reached at [email protected].

Lake Cumberland Lake info 1-800-642-6287 365 lctourism.com Always in season WINTER a SPRING a SUMMER a FALL No matter the time of year, there is always something for you on Lake Cumberland in Somerset-Pulaski County. Watersports, fishing, car shows, music, history, fine dining and nightlife — you name it! Come have fun with us in and out of the water.

#LC365 SOMERSET-PULASKI COUNTY CVB LAKE CUMBERLAND TOURISM

THE LANE REPORT • LANEREPORT.COM APRIL 2017 39

April Lane 24-52.indd 39 4/3/17 9:54 AM REAL ESTATE

Kentucky homes sales topped $9 billion for the first time in 2016 and are expected to be better in 2017. Median prices are rising and average days on the market are falling.

for the first time ever. In an indication of overall housing market momentum, November was the best month in terms of sales compared to a year earlier, with homes sold up 26.9 percent over November 2015. As strong as 2016 sales numbers were, housing experts predict 2017 to get better. And so far they are right. For the first time ever, January home sales were above 3,000 units, and the median price was up 2.5 percent to $116,946 statewide. Commonwealth Realtors and bro- kers saw brisk, increasingly rapid sales continue, especially in March. “I’m very optimistic about 2017,” said Steve Stevens, CEO of the Ken- tucky Association Real- tors. “I think we will break another record. Our population is going up. Our unemployment rate is Steve Stevens, going down. There’s been CEO, Kentucky Home Sales Are a little inflation on price Association but not too much. And of Realtors demand is so high, we have officially moved into a sellers’ market. If we can Breaking New Ground continue to expand inventory, we’ll be on track for a great year.” With residential real estate finally back above pre-recession Brian Miller, executive VP for the Home Builders levels, demand for new construction builds Association of Northern Kentucky, concurs, but points to several structural BY SUSAN GOSSELIN issues that need to be solved before the market can meet its full potential. Brian Miller, “We’re seeing a lot of Executive Vice demand out there for President, HOUGH it came neither fast in turn pump dollars into industries Home Builders nor easy, Kentucky’s residen- such as construction, materials, sup- new housing. Millennials Association tial real estate sector has plies, retail are coming on strong for of Northern recovered from the steep Following the bust of the Great home ownership, and Kentucky losses of the Great Reces- Recession, Kentucky’s real estate indus- there are not enough Tsion, and the past two years is breaking try had nowhere to go but up. With a existing homes being sold to fill the new ground for sales, according to weak recovery, reluctant developers and need,” Miller said. “But financing is still recent numbers by the Kentucky Asso- federal banking reforms that made it really tight for new homebuilders, new ciation of Realtors. tougher to qualify borrowers, the climb lots are scarce, and regulatory burdens After a record-breaking 2015, 2016 back was slow. Over the five-year period are high. Don’t forget, during the reces- achieved the distinction of the highest of 2012 to 2016, though, KAR reports sion we had a lot of (home builders) number of total home sales ever home sales compared to a year earlier who just quit or retired. The demand is recorded in the state, at 52,123. Prices increased in 53 of those 60 months. up, but the industry is still trying to find are rising and days on the market are The total volume spend in 2016 on its equilibrium,” he said. shrinking as inventory decreases. homes sold in Kentucky broke the $9 It’s good news for Kentucky’s econ- billion mark for the first time, at $9.17 Kentucky tracks national trends omy because residential real estate billion, nearly a billion more than the Though it may yet have challenges demand is an engine that drives major $8.21 billion sold in 2015. June is always ahead, Kentucky is, overall, keeping industries and services – white collar, the top month for sales, and last June pace or even outstripping the national blue collar, wholesale and retail – which sales topped $1 billion for the month growth in home sales. According to fig-

40 APRIL 2017 LANEREPORT.COM • THE LANE REPORT

April Lane 24-52.indd 40 4/3/17 9:54 AM ures released at the 2016 Realtors Con- ference, existing home sales ended the year at 5.4 million units sold across the U.S., a small increase from 2015, and the organization’s economists predict sales should grow to 5.5 million units in 2017, and 5.7 million in 2018. That puts Kentucky’s recent record- breaking sales above national norms. With rising sales come rising home prices; however, they remain modest ones. The KAR reports home prices in the state increased to a median of $122,125 for the year, the highest annual median price recorded in the state, exceeding the record of $120,460 for 2015 by 1.4 percent. But even with these record-breaking price highs, homes in Kentucky are still astonishingly affordable compared to national standards, which show a national median home price of $221,500 for 2016. In spite of these record-breaking numbers, Kentucky’s low inventory is more houses on the mar- Low inventory is becoming an issue in Kentucky’s hot residential real estate market. The Kentucky hobbling the expansion of the real ket than ever. More peo- Association of Realtors reports inventory decreased estate markets. The Kentucky Associa- ple are selling, and they 25 percent in 2016. Builders have had more tion of Realtors reports housing inven- are selling much faster.” difficulty getting financing for spec homes than in tory across Kentucky was down 25 The pressure on past cycles. percent from 2015, with 4.6 months of inventory in new con- inventory on hand to close out 2016, struction is particularly compared to 6.1 months in 2015. Days acute nationally. Given Dave Parks, current population and President-Elect, on market, which is used by the industry Greater the biggest builders, like Drees (Homes) as a marker for consumer demand, fell economic growth trends, Louisville and Fischer (Homes). Before the reces- 5.7 percent to 131.9 days in 2016. Ken- the National Association Association sion, our small builders were each build- tucky’s larger cities like Lexington and of Realtors estimates new of Realtors ing 15 to 20 homes a year. Today, they are Louisville are experiencing even tighter housing starts should be lucky to build five or six or seven.” demand, with days on market down into in the range of 1.5 million to 1.6 million Financing is often the the range of two to three months. completions. Yet starts are currently biggest reason small Though inventory is low, it’s impor- stuck at near recessionary levels, at builders struggle, said tant to remember that statistics can be about half what it should be. And Steve Cline, 2018 presi- deceiving, said Dave Parks, president nationally, total housing inventory was dent-elect for the Ken- elect of the Greater Louisville Associa- at the lowest level since the NAR began tucky Association of tion of Realtors and owner of Berkshire tracking supply 18 years ago. Realtors and a realtor for Hathaway Home Services/Parks & Weis- Berkshire Hathaway Steve Cline, berg Realtors. The struggle to build inventory HomeServices Partners President-Elect, “Inventory is low, that’s for certain. Market demand has rebounded well Realty in Bowling Green. Kentucky But it’s low because the market is since the recession, Miller said. But the “Even the best, most Association of Realtors cycling through houses much faster,” recession’s effects, even after eight years creditworthy small build- Parks said. “It could be that on any of expansion, are still felt acutely by ers are still experiencing financing given month, or day, inventory is histori- Kentucky homebuilders. issues,” Cline said. “The banks require cally low. But the overall number of “Right now, in our (Northern Ken- them to have contracts on the homes houses sold is high, which says we have tucky) area, 65 percent of permits are for before they break ground. Or if they do

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AprilHOF2017-LaneReportApril.indd Lane 24-52.indd 41 1 3/29/174/3/17 11:48 9:54 AMAM REAL ESTATE

hemming builders into building bigger, more profitable homes on those lots to make up for the extra up-front expenses, Parks said.

Next generation of buyers Fortunately for the real estate industry, interest rates are likely to stay relatively low. The March meeting of the Federal Reserve produced a quarter-point rate hike, from 0.75 percent to 1 percent. Further increases are expected later this year, but rates remain far, far below historic norms. According to the economists at the National Association of Realtors, rates are likely to stay reason- able. They forecast mortgage rates to rise in 2017 to 4.1 percent, then rising to 4.5 percent soon after, which is still in historically low territory. The difference they are seeing in buyers today, however, is that many of them don’t want to repeat the mistakes that led up to the Great Recession, namely, buying too large a home, financing without a significant down- Luxury homes are being built in the “It’s hard for a developer to find payment, and using home equity loans Spring Farm subdivision in Prospect, land that’s affordable, and when you Ky., in eastern Jefferson County. to pay for other needs. do have the lots, everything costs more; “There’s a market for every category, the materials cost more, and labor is of course,” Stevens said. “But in general, hard to find and costs more. It makes it buyers just aren’t that interested in buy- very, very hard for builders to create a ing or building those large, 5,000-s.f. competitively priced home for the first- homes anymore. The market is softer build spec homes, they give them time buyer.” for homes over $500,000. That said, financing for just two; then when they Parks concurred, noting that many we’re seeing a big interest in entry level are finished and sold, they give them cities, like Louisville, have infrastructure homes in the $150-250,000 range for financing for the next two. When you issues that are creating barriers to first-time home buyers, and we’re seeing consider that it takes three months to expansion. Developers not only have to a big interest in those ‘move-up’ homes build a house, that means they can only find land that is flat and properly zoned, in the $250,000 to $400,000 range.” get a handful of houses built every year.” he said, but has the sewer and roadway Homebuilders in Northern Ken- Miller said the high cost of develop- capacity to handle a new development. tucky, Miller said, are seeing the most able land is another structural barrier to Once development costs are factored sales among homes in the $300,000 to more building, especially for first-time in, a builder’s lot could run $45,000 … $400,000 range. However, he has hope buyers who may want a new home. or much, much more. Land costs are some of the structural issues making it

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April Lane 24-52.indd 42 4/3/17 9:54 AM Kentucky realtors increasingly report that homes in desirable locations that are priced in the $150,000 to $250,000 “entry” level and the $250,000 to $400,000 “move-up” level are selling very quickly and often at above asking price.

difficult for builders to build entry-level homes will be lessened under Republi- can political leadership. “Right-to-work legislation and prevail- ing wage laws make it easier for our industry to manage our labor. But it will also be a boon to development for the region as a whole as more companies see millennials, who comprised 35 percent of like Crescent Hill and Germantown in how affordable it is to do business here all buyers – beating out Generation X, at Louisville. (in Kentucky). We’re already starting to 26 percent; Boomers, at 31 percent; and “But, really, we’re expecting demand see the expansions planned at Toyota the silent generation, at 9 percent. This to increase in the whole area, because and Amazon in our area, and we expect generation, which has been billed as these new (Ohio River) bridges are a to see a lot more,” Miller said. “If bank- serial renters who want to stay in the city, really big deal. We have more commer- ing regulations are relaxed in the future is showing in NAR surveys that a majority cial land, pad ready, than any place in that means financing will be easier to get want to own a home and are willing to the country. We’re poised for amazing for our builders, and it will be easier for consider suburban areas. things,” Parks said. them to build more properties. We think And the smaller homes millennials In his position at the KAR, Stevens has there is a better equilibrium ahead, are looking for are often the same kind his hand on Kentucky’s real estate statistics between consumer protection and ease of homes that downsizing boomers and every day. He says he feels great about of financing. So even though there are Gen Xers are looking for, as well. where the future is headed in the state. headwinds in our industry, we’re hope- “People today in every demographic “Overall, it’s a great market in Ken- ful about our future.” are looking for a smaller footprint for tucky, especially in our major cities, and their houses, and nicer, high-end finishes,” the next tier cities down. In smaller Multiple offers above asking price Parks said. “You’re seeing a lot more peo- towns in Eastern and Western Kentucky, All the realtors contacted for this story ple interested in neighborhoods like Nor- it’s not quite the boom it is in other agreed that homes in a desirable loca- ton Commons here in Louisville, where places. But I think there’s one impor- tion and priced for those two bottom the community takes care of the mowing, tant indicator that really sums it up: tiers are not only selling quickly but and you can walk to restaurants, and There were 1,100 new people signing often getting multiple offers at or above there’s a YMCA and doctor’s offices right up to be realtors statewide last year, and their asking price. in the neighborhood. over 10,000 who have made the effort to According to the National Association “And because inventory is down be in our association. That says to me of Realtors, a big part of the boost in overall, we’re seeing a lot more people that people see an opportunity in real home sales is due to the millennial gen- who are interested in taking an old estate in Kentucky. I do, too.” ■ eration getting old enough to settle into house, gutting it and making it like new home buying. For the third straight year, again. That’s given rise to the popularity Susan Gosselin is a correspondent for The Lane the largest group of recent buyers were of old, centrally located neighborhoods Report. She can be reached at [email protected]

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April Lane 24-52.indd 43 4/3/17 9:54 AM EMERGING LANE Kentucky’s young professionals and creatives

worked for the Commonwealth of Ken- tucky’s training and development branch, then moved to the state’s EEO and Diversity Office. Elridge is comfortable in a one-on-one setting or in front of a crowd of hundreds or thousands, but her work is much more than good conversation skills. “Coaching is not just talking to people,” she said. “If you just think it’s talking to people, you’re probably not going to have as successful a business.” Still, she encourages young professionals to go into coaching if they are Colene Elridge is a certified drawn to it. mediator and better known “It’s a great time to start a service by her clients as Coach Colene. organization,” she said. “People will pay anything to make their lives easier or improve their quality of life. I think now is a great time to be in the service industry, from cleaning ser- Success Culture Is Buildable vices to training and everywhere in between. The key is how you distin- Coach Colene empowers individuals and organizations guish yourself.” Elridge recommends networking as a HO brings out the best in you? If inclusion, and everything in between.” major part of growing a new service ori- you’re an actor, it is a director Employee engagement improves a ented business. and for musicians, a producer. company’s bottom line, because “Make sure you’re really good at WAthletes rely on a coach. Individuals and employees who feel valued, respected building relationships. Most of my busi- corporations who are ready to up their and supported are more productive. ness has been built on the relationships game also turn to a coach. With her HR background, she offers I’ve built, and some by marketing Colene Elridge, known as Coach consulting on policies and procedures efforts,” she said. “If you can grow your Colene, is the owner of Be More Con- and how to keep great talent in-house. business while working your day job, sulting. A certified mediator, Elridge “I’ve done organizational surveys that’s even better.” had eight years experience facilitating that can correlate organizational inclu- This spring, Elridge is launching a meetings when she started her com- sion with turnover, employee happiness new program for women’s leadership pany in 2014 to help people “realize with the bottom line, and other metrics called EmpowHer. their full potential through creating that can improve productivity and per- “I’ve coached so many amazing experiences that engage, inspire and formance,” Elridge said. “Internal PR women who literally could not see their produce results,” she said. can save you a lot of money.” own potential,” she said. “There is so Based in Georgetown, Ky., Elridge Before stepping into human much research that supports that when meets with nonprofit and for-profit cli- resources, Elridge was Transylvania Uni- women are in leadership, organizations ents around the United States and the versity’s first anthropology major in 2005. thrive. It’s not a lack of competence world in person or online. “I love anthropology,” she said. “I that stops women, it’s a lack of confi- “I love to work with organizations was studying cultures, and I could see dence. EmpowHer creates a supportive who are ready to see next-level results how it applied in so many other ways. I environment for women to develop and have the courage to try something think that’s how I got really interested practical, hands-on leadership skills, new,” she said. “We look at everything in workplace cultures.” and create the mindset of a leader.” from hiring processes to employee She earned an MBA with an empha- For more information, visit coach- engagement, to creating cultures of sis in HR from Sullivan University and colene.com.— Kathie Stamps

Holsopple Brewing Opens with Single-Hop Flavor Project

Louisville’s latest brewery, Holsop- Essentially, it’s a long-running for MillerCoors and Kristy still ple Brewing Co., opened in Febru- experiment to see what flavor pro- employed as a scientist for Brown ary with a big crowd and an files he can come up with while Forman. That their beers were well interesting project. focusing on a wide range of hop received at Holsopple’s opening Brewer Sam Gambill, who owns varieties. Eventually, he will get to (“Holsopple” is Kristy’s maiden the brewery with wife Kristy, kicks off Alpha “Z,” at which point he will name) is no surprise. with a project that will have him cre- start over, likely blending a pair of “She is the quality manager,” ating no fewer than 26 different sin- hops during each brew to experi- Sam said of Kristy, “and she hasn’t gle-hop IPAs over the course of the ment further. rejected anything yet. I think year. The first one, dubbed Project “We’d like to create an that’s a good sign.”—Kevin Gibson Alpha “A” IPA, gave way to “B,” then extraordinary IPA,” he said. “C,” and so on, each being available The Gambills are both veterans Louisville’s latest brewery, Holsopple for a limited time and hopped with of the beverage industry, with Sam Brewing Co., is owned by Sam and a single variety. spending a number of years working Kristy Gambill.

April Lane 24-52.indd 44 4/3/17 9:54 AM Paperboy PR Talks About Doing Infrared Sauna Harnesses the Benefits Public Relations the Right Way of Light Exposure

ACHEL Bledsoe Albritton founded tive by launching a campaign introducing Sunlight gets a bad reputation for giving us sun- Paperboy PR last year after working themselves under variations of their name burns and skin cancer, but the reality is that at several public relations firms. – MailShrimp, KaleLimp and JailBlimp most Americans are starved of natural light, which among other things stimulates the skin to RBased in Louisville, Paper- for example. The quirky ads and videos produce Vitamin D that humans need for opti- boy PR is a strategic pub- are refreshing in a world where compa- mal health. lic relations, public affairs nies usually take themselves too seri- “Everything has an appropriate dose,” and communications firm ously. MailChimp even partnered with explained Jim Laird, owner of Lexington- that specializes in con- Buzzfeed for an article about MaleCrimp. based Gym Laird Strength & Conditioning. sumer-facing PR and It’s genius. “You can overdose on water, exercise, sun, but serves clients in six states. we’re designed to be outdoors and in the sun; TLR: Brands use social media to reach and people are so scared of the sun. Getting We asked Bledsoe Albrit- Rachel Bledsoe new clients, and many individuals also use adequate light, especially in the winter is so ton a few questions about Albritton it to develop their “personal brand.” What important for Vitamin D. Most people don’t today’s PR culture. is the value of personal branding? get that moderate exposure every day.”

There’s a huge value in using social TLR: Public Relations can be strange RBA: and complicated these days with infor- media to create a personal brand. For mation being passed so rapidly. Have most, social media platforms offer people you ever seen it go terribly wrong? mediums to perfect their message and reach audiences outside of traditional RBA: Yes, many times. A great example social circles. It allows them to interact was in 2014 when the pizza brand with others who share similar passions. DiGiorno failed to research the mean- Every now and then, individuals become ing of a trending Twitter hashtag experts at creating a personal brand, before posting a tweet that and it can be monetized. Lifestyle included it. The hashtag bloggers on Instagram are a #WhyIStayed was aimed at great example of this. This rela- shedding light on the issue of tively small group of people, domestic violence and its vic- known as “influencers,” are tims. Clearly a very sensitive often paid to model products, topic. The DiGiorno tweet, showcase brands and even take which was deleted 10 seconds lavish vacations. later, still made its way into headlines, inciting tremendous backlash and ulti- TLR: How can people or companies mately leading to a formal apology on determine if they’re just creating extra the company’s part. One benefit of noise and causing information overload? social media platforms is that they give RBA: This really comes down to companies the opportunity to work engagement. If you’re posting some- Infrared sauna is a new health trend focused on their messages into a larger, trending thing of value, and people are inspired light exposure and relaxation. dialogue. Even when time is short, com- by it, they will engage with you through panies must do their due diligence so a Like, a Follow or a Comment. Addi- they don’t end up in hot water. tionally, irrelevance in your posts can Sun exposure is ideal, but there are also tools like Infrared Sauna that busy profession- Have you seen it work really well? create noise. Small businesses that first TLR: start distributing information on social als can especially benefit from after spending RBA: One of the most effective ways com- media often make the mistake of not so much time indoors. panies can become and stay relevant is by Infrared Sauna harnesses the power of light building their posts into a larger, inten- to promote health. It helps the body sweat out learning and embracing who they are as a tional narrative. brand. Taco Bell is an example of a com- toxins; improves cardiovascular health; pro- TLR: What are some of the most cut- motes pain relief, better sleep, weight loss and pany that has excelled at this. By remov- relaxation. But Laird is most excited about the ing their kid’s menu and adopting the ting-edge ways that you see companies driving sales? Infrared Sauna at his gym because it’s simply “Fourth Meal” tagline, the company took another way relax. an unabashed marketing angle that said, RBA: More and more I am seeing brands “It’s just another tool to allow people to “We know exactly who we are.” They cre- opt out of content-heavy platforms like chill out, basically,” he said. “We’ve got the ated a narrative on social media, in tradi- websites and print advertising and instead float tank that certain people like, but the tional media and in advertisements that choosing social media to reach their audi- sauna price point is a little lower and it’s another way to disconnect. We’re all so wired spoke to their target demographic – ences. In many ways, what a traditional up. They can get in the sauna with the bright millennials looking for a late-night bite. online presence looks like has shifted. lights and get some vitamin D, and it helps Additionally, MailChimp demon- Many bloggers in particular are entirely them check out and sweat.” strated how in-tune they are with their on Instagram. Retailers are taking this Infrared Saunas are increasing in popular- customer experience when they launched approach, too, using social media to ity, and Laird recommends sitting under the a recent PR and advertising campaign hyper-target in ways that are more bud- sauna’s bright lights once a week or twice a poking fun at its hard-to-remember get-friendly and effective. Similarly, plat- month. If you don’t have access to one, consider getting a “Happy Light” at your desk or name. The email distribution service capi- forms like Etsy have revolutionized the walking outside during lunch breaks for expo- talized on what could be seen as a nega- cottage industry. sure to light. —Abby Laub

THE LANE REPORT • LANEREPORT.COM APRIL 2017 45

April Lane 24-52.indd 45 4/3/17 9:54 AM SPOTLIGHT ON THE ARTS

Left: Cecy Thompson (left) and Susan Grant, of Louisville-based Fleece & Flax, are among the dozens of artists who will be exhibiting their work at Kentucky Crafted: The Market.

Above: Chris Cathers (left), who has produced Kentucky Crafted: The Market for the past 10 years, discusses this year’s upcoming event with Arts Council Executive Director Lydia Bailey Brown.

creating such a high-quality, tourist-worthy, hometown-feeling experience.

LBB: Tell us about the first day of Mar- ket, April 21, the “trade day” for wholesale and corporate buyers. CC: Trade day is a wholesale buying day Kentucky Crafted: The Market exclusively designed for retail buyers, corporate buyers, interior designers, and architects, to name a few. With their is Artful Business complimentary entrance and the immersive creative environment, it’s a ENTUCKY Crafted: ness-folk build a network of retail cus- very relaxed atmosphere for the buyer, The Market, April tomers and forge long-term corporate which gives them a chance to speak to K21-23 at the Lexing- relationships. the artists one on one. Buyers get to see ton Convention Center, is work showcased in artful ways and learn the largest celebration of LBB: How has The Market changed for how that fits into their corporate buying Kentucky arts each year. the creative exhibitor since its begin- or public art initiatives. This is a great Lydia Bailey Brown, Ken- nings 35 years ago? opportunity to investigate new design tucky Arts Council execu- CC: The caliber of participating artists has concepts. It gives them a sense of how to tive director, sat down significantly increased over the years. A utilize art in workspaces. with The Market’s pro- number of artists came into the juried For the first-time corporate buyer, ducer and one of the Kentucky Crafted program as hobbyists or the trade day is a comfortable opportu- agency’s senior leaders, Chris Cathers, for enthusiasts and over the years have nity to dip their toe in, whether they are a discussion about The Market’s distinct evolved into savvy entrepreneurs, develop- in charge of corporate gifts or retail position in Kentucky business. ing a business around their art. Some use shops. For someone who wants to make it as a launching pad to expand their a mark on their prospective clients with Lydia Bailey Brown: Why should Ken- careers. Others use this opportunity to something uniquely Kentucky, this is tucky’s business community participate build stable relationships with wholesalers. the place to find it! in and support The Market? Chris Cathers: There’s a lot of talk LBB: We know that The Market has LBB: How would a new corporate or about supporting small businesses, buy- become a travel destination for many. wholesale buyer arrange to attend and ing local, and here’s an opportunity to What is The Market’s reputation outside look at the opportunities? visit more than 150 small businesses that Kentucky? CC: We encourage them to preregister sell handmade Kentucky art and craft, CC: Our reach has gone beyond the on our website at artscouncil.ky.gov/ all under one roof for an entire week- typical art and craft show, and people KAC/Showcasing/2017Market-Buyers. end. It’s an opportunity to support the recognize our name throughout the htm but we also provide onsite registra- local economy and sustain entrepre- Southeast. Lots of other shows have tion by just showing up on Friday, April neurs and small businesses throughout come and gone; there are not that many 21. We need to verify shoppers’ status as the commonwealth. that can say they’ve been around 35 a business buyer, so they need to pro- years. We’ve expanded the show to offer vide that documentation. Companies LBB: For the first-time visitor to Kentucky performances and highlight culinary are encouraged to come to The Market Crafted: The Market, describe the event. arts, literary arts and even educational and see how Kentucky products can CC: The Market is an opportunity for us activities in our hands-on area. Really, enhance their business. On Saturday to showcase the best work of the arts we produce an arts festival. In fact, the and Sunday, April 22-23, The Market is council’s Kentucky Crafted artists. It’s Southeast Tourism Society named Ken- open to the general public. ■ an opportunity for corporate buyers tucky Crafted: The Market in their Top and the general public to find amazing 20 List of Festivals and Events. works from many small-business owners Folks from other states come to visit, Lydia Bailey Brown is executive in the arts who may not sell through not simply to experience and purchase the director of the Kentucky Arts Council. wholesale or retail space throughout the art pieces, but to learn about our process year. From the event, these arts busi- for jurying artists into the selection and

46 APRIL 2017 LANEREPORT.COM • THE LANE REPORT

April Lane 24-52.indd 46 4/3/17 9:54 AM THE LANE LIST

KENTUCKY’S 2017 MUSIC FESTIVALS

MAY • ROMP • Lower Town Arts June 21-24 in Owensboro & Music Festival Celebrating roots and May 19-20 in Paducah bluegrass music. Regional music, art, theater, food. Rompfest.com lowertownamf.com • Summer Motion lowertownartsandmusicfestival June 30-July 4 in Ashland @gmail.com Music, food & entertainment. Louisville’s Forecastle festival • Kentucky Reggae Festival Summermotion.com May 26-28 (Memorial Day Weekend) in Louisville JULY Kentuckyreggaefestival.com • Master Musicians Festival AUGUST July 7-8 in Somerset • Moontower Music Festival JUNE Bringing musical excellence Aug. 26 in Lexington • W.C. Handy Blues to rural Kentucky. Local & national musicians, & Barbeque Festival Mastermusiciansfestival.org craft beer, food trucks, artisans. June 14-17 in Henderson [email protected] Moontowermusicfestival.com Blues and zydeco from across the • Big O Music Fest U.S., barbecue, red beans & rice. July 8 at Reid’s Orchard SEPTEMBER handyblues.org in Owensboro • Red White & Boom [email protected] Country music big names. Sept. 1-3 in Lexington • Festival of the Bluegrass Bigomusicfest.com Top country music names & many June 8-10, Kentucky Horse Park [email protected] others celebrate the end of summer. in Lexington • Forecastle Wbul.iheart.com/features/ Bluegrass music, camping, July 14-16 at Waterfront Park red-white-boom-565 large meals. in Louisville • Kentucky Bluegrass Festivalofthebluegrass.com Who’s who of cutting edge and & Bourbon Experience [email protected] pop music, environmental activism, Sept. 2-3 at the Water Tower (859) 253-0806 outdoor recreation in Louisville • Great American forecastlefest.com Bluegrass, burgoo & bourbon. Brass Band Festival [email protected] Kentuckybluegrassfestival.com June 8-11 in Danville • Blues Brews & BBQ Preserving brass band music July 21-22 at the Water Tower OCTOBER through performance, food, in Louisville • Garvin Fate Blues Festival vendors. New Orleans & Memphis music, Oct. 13-14 in Louisville Gabbf.com local barbecue. Blues and the city’s largest street [email protected] Louisvillebluesandbbqfestival.com music festival. (859) 316-8426 Garvingatebluesfestival.com

Source: Kentucky Department of Tourism Discover Your Adventure

www.laurelkytourism.com 18003480095

THE LANE REPORT • LANEREPORT.COM APRIL 2017 47

April Lane 24-52.indd 47 4/3/17 9:54 AM EXPLORING KENTUCKY

Hindman Settlement School in Knott County in Southeastern Kentucky was launched in 1902 as a social reform effort. Today it includes an Appalachian artisan center and an adult learning center.

mer’s event – scheduled for July 24–29 – will be the state’s revered native son and former poet laureate, Wendell Berry. Another summer program, Appala- chian Family Folk Week offers pure fun, with mountain music, dance, crafts, storytelling, traditional instrument playing and special kids’ activities for all comers. This year’s event will be held June 5-10. Both aforementioned programs celebrate 40th anniversaries this year. For the occasion, HSS will release two new publications, a monograph representing the school’s literary heritage and a craft anthology by Writers’ Workshop faculty alums. December will bring the third annual Dumplin’s and Dancin’, a lively weekend of heritage food and frol- icking open to the public. Secondly, HHS launched a new, Appalachian Treasure school-based Appalachian Scholars’ Program last October for eighth and Hindman Settlement School preserves, celebrates mountain culture ninth graders in Knott and Letcher counties. Some 400 students in 26 class- BY KATHERINE TANDY BROWN rooms participate in a curriculum that teaches life skills and core values, builds healthy behaviors and connects youth to UCKED deep in the Appalachians the early 20th century to educate moun- their communities as potential leaders. of Knott County at the forks of tain children and to improve their isolated The third program started three TTroublesome Creek, Hindman Set- rural communities, and Hindman Settle- years ago. Funded in part through a tlement School continues to change lives ment School (HSS) was the first. grant from Berea College, the Grow for the better on a daily basis, just as it has Today, HSS wraps its arms around its Appalachia Program helps people since 1902, when Solomon “Uncle Sol” mission via five program areas. produce, prepare and preserve healthy Everidge asked May Stone and Katherine The first is its Cultural Heritage Pro- foods for their families by providing Pettit to start a school for his “grands and gram, made up of the Appalachian Writ- expertise, seeds and tools. greats.” They did, and the rest continues ers Workshop (AWW), Appalachian “People apply for different reasons,” to be history for this institution that takes Family Folk Week and workshops that says Brent Hutchinson, HSS executive seriously its charge to help meet local include writers’ retreats throughout the director. “Some can’t afford to plant on folks’ needs and to preserve the literary year. The AWW is Kentucky’s premier their own, while others can afford to do and cultural heritage of southeastern Ken- gathering of writers from across the nation it but don’t have the expertise. Grow tucky and the central Appalachians. who live in or write about the area and Appalachia levels the playing field.” Settlement schools are social reform attend to learn or teach in multi-genre The program has increased from 18 institutions begun in rural Appalachia in classes. The keynote speaker for this sum- families initially to its 2016 total of 55, who

Tourism works for Kentucky Tourist activity in Shelby County generated $63,698,22 in 2015 in direct KY DEPT. OF DEPT. KY tourist spending. :

ShelbyKY Tourism & CERTEC TRAVEL

www.VisitShelbyKY.com SOURCE 502.633.6388

48 APRIL 2017 LANEREPORT.COM • THE LANE REPORT

April Lane 24-52.indd 48 4/3/17 9:54 AM produced nearly 14,000 pounds of food and donated land and funding for a new have the opportunity to enhance peo- collectively, and has expanded to include Knott County high school in 1930. ple’s lives, to give them the things they Perry, Fletcher and Floyd counties. Though located in one of the state’s poor- need to thrive. For some people it’s edu- Since 1980, HSS has offered a est counties, that high school has one of cation. For others it’s pride in their heri- Dyslexia Program to provide informa- the highest graduation rates. tage. For still others it’s the opportunity tion, training and support for parents, Beloved Kentucky author James Still to take care of their families.” tutors and teachers of children who signed on as school librarian in 1933, seven Set on 200 forested acres, the school learn differently. It now conducts tutor- years before his award-winning novel, is currently raising funds for the new ing programs for children with dyslexia. “Mountain of Earth,” was published. Mike Mullins Heritage Center to house And finally, the Folk Arts Educa- In the late 1990s an HSS-led Commu- offices, large gatherings and a commu- tion in Public Schools Program nity Development Initiative resulted in a nity canning kitchen. The campus also includes an After School Music Program $20 million community renewal project includes a museum and craft shop in that teaches the next generation of for Hindman and Knott County. The Uncle Sol’s Cabin, and Chapel in the mountain children traditional music. results – including a new city hall and wel- Trees, an open-air spot for up to 50 peo- “Our goals have not changed from come center, and help in creating the Ken- ple. Ideal for a quiet meeting site or the mission set forth by our founders,” tucky Appalachian Artisan Center, the corporate retreat in the midst of nature, says Hutchinson. “It’s always been to Knott County Adult Learning Center and HSS can easily accommodate 60 to 80 meet significant community needs until the Kentucky School of Craft – garnered attendees overnight and several hun- the community is in a place that they HSS the Government Award of the 2004 dred for a daytime retreat, complete can do it for themselves or there’s Kentucky Governor’s Awards in the Arts. with luscious, healthy food from the another budgeting need that the school This remarkable institution also pro- property’s kitchen. Indigenous to Appa- can take care of.” vides farming and industrial education, lachian heritage, teambuilding options The settlement school’s history reflects helps provide medical assistance and include hiking trails and folk dance why the facility is often referred to as “the also partners with a number of organiza- instruction. best school in the mountains.” In 1910 it tions, like S.W.A.P. (Sharing with Appa- Find out more about HSS and its became Knott County’s first official high lachian People), which helps multitude of programs at hindmanset- school. Soon afterward, HSS trachoma low-income people with home repair. tlement.org or (606) 785-5475. ■ clinics led to a successful national cam- “Hindman Settlement School is in a paign to eradicate the disease. HSS unique position to address issues about Katherine Tandy Brown is a correspondent became a National Daughters of the quality of life. I like to call it ‘human for The Lane Report. She can be reached American Revolution-approved school, flourishing’,” Hutchinson says. “We at [email protected]. WHERE ART’S ALIVE A thriving artisan community is just the beginning of your Berea adventure. Explore scenic hiking and biking trails, along with southern-inspired cuisine and exceptional live music. Learn more at VisitBerea.com.

VisitBerea.com

Exit 77 or 76 off I-75

THE LANE REPORT • LANEREPORT.COM APRIL 2017 49 BT1037-3.43754.875-iitoruideAd.indd 1 3/13/17 1:49 M

April Lane 24-52.indd 49 4/3/17 9:54 AM PASSING LANE Commentary on Kentucky

Report: ACA Has Had Little Impact on ER Use

EARLY three years into imple- Emergency Department Visits in the Past Year mentation of the Affordable (by coverage type; non-elderly Kentuckians) NCare Act (ACA) in Kentucky, emergency room use has neither decreased nor increased substantially, despite predictions that the law might have a strong impact. About the same proportion of Ken- tuckians went to the ER in 2016 as before the ACA, although the total number of ER visits increased slightly. A new report recently released by the Foundation for a Healthy Kentucky also found that Ken- tucky children and adults up to age 64 who had public health insurance such as Medicaid and the Kentucky Children’s coverage, but then evidence that ED use to the ER is because they had a medical Health Insurance Program (KCHIP) stabilized or declined a few years later. emergency; another nearly three in 10 were significantly more likely to say they This appears to be related to newly said no other facilities were open at the had used an ER in the prior year than insured individuals beginning to find time they needed care. Slightly more those with private coverage; that held more-appropriate ambulatory care set- than 7 percent said their doctor true both before and after the ACA went tings for their usual source of care instead directed them to an ER. Only 3 percent into effect in Kentucky. of the ED. Tracking these measures over said they went because they didn’t have “One of the benefits supporters hoped time will allow Kentucky to determine a regular doctor. would result from the ACA was reduced whether ED use in the commonwealth The report also found that the propor- use of ERs, where treatment is a lot more stabilizes or declines in future years.” tion of ER visits that hospitals reported as expensive,” said Foundation CEO Ben The report found that one in four charity care or self-pay dropped from 23 Chandler. “What we found is that ER visits (25.5 percent) Kentuckians said in 2015 percent in 2012 to less than 6 percent by declined for several months after the ACA that they visited an ER in the past year, the third quarter of 2016. At the same first went into effect, but then they rose about the same proportion as before time, the share of ER visits covered by again. The explanations are multifaceted, the ACA. By examining data from Ken- Medicaid rose from almost one-third of but it turns out Kentuckians had some tucky hospitals, the report also found visits in 2012 to almost half in 2015 and very rational reasons for heading to the the total number of ER visits dropped the first three quarters of 2016. ER. The bottom line is that many of the the first three quarters of 2014 and then “Hospitals have benefited from the benefits of having insurance coverage for rose to a level in 2016 that was 4.5 per- ACA because they’re having to eat less of the first time in life will take a while to play cent higher than in 2012. The percent- the cost of caring for uninsured Kentucki- out, and that’s certainly the case with ER age of Kentuckians who use the ER is ans,” Chandler said. “That’s especially use.” significantly higher than for the United important for smaller, rural hospitals.” The report goes on to state, “...research States overall, where the rate is fewer The report, “Emergency Depart- in some other states has also shown than one in five (18.3 percent). ment Utilization in Kentucky,” is part of increased emergency department (ED) In 2016, nearly three in 10 non- the Foundation’s ongoing study of the use soon after gains in health insurance elderly adults said the reason they went impact of the ACA in Kentucky.

UK’s Career Closet Helps Students Dress for Success

S graduation dates near, thou- “After seeing other Southeastern Confer- sands of college students across ence student governments implementing Athe state are already out looking these programs, we felt our students for jobs, with hopes of putting their new deserved better resources than we were degrees to work. Yet for many, transi- previously offering.” tioning from college into the profes- Wildcat Wardrobe is open every sional workplace can present a financial Wednesday from 1 to 3 p.m. Each student burden: They don’t yet have a job but will be allotted up to one outfit per visit, or need to show up for an interview or an three articles of clothing. (Depending on internship dressed in professional attire inventory, visits may be limited.) that’s not typically found in the average To help fill Wildcat Wardrobe, fac- college student’s wardrobe. ulty, staff and members of the commu- To help alleviate the situation, the “Wildcat Wardrobe is aimed at alleviat- nity are being encouraged to donate University of Kentucky Student Govern- ing the financial burden placed on stu- clean, gently worn professional clothing ment Association (SGA) and the James dents to purchase professional clothing to the closet. W. Stuckert Career Center at UK have for job interviews, internships or even full- For more information on the pro- teamed up to create the Wildcat Ward- time job opportunities after graduation,” gram, contact uksgacommunications@ robe career closet. said Student Body President Rowan Reid. gmail.com.

50 APRIL 2017 LANEREPORT.COM • THE LANE REPORT

April Lane 24-52.indd 50 4/3/17 9:54 AM New ‘Corporate Games’ Event A New Twist on the Encourages Healthy Lifestyles Bourbon Craze: S part of Interactive Cocktails an effort to sup- HE fascination with all things A bourbon-related continues to port the impor- tance of a Tgrow, with the latest addition healthy and being a “premier tableside cocktail active lifestyle, experience,” introduced at the Jim the Louisville Beam Urban Stillhouse in downtown Sports Commis- Louisville. sion has created Featuring classic and contemporary a new health and drinks created by a “cocktail concierge,” wellness initiative the program marks an evolution of Jim designed to Beam’s downtown Urban Stillhouse and bring together celebrates one of the first Kentucky employees from bourbon distilleries to offer cocktails for Competition Events businesses and visitors. The tableside experience com- Participatory Events: Competitive Events: Good Sports Activities: organizations • Wellness walk • Softball home run • CEO selfie across the Louis- • Football throw derby • Sports equipment ville and South- • Field hockey shot • Mile run drive • Frisbee toss • Obstacle run • Food drive ern Indiana Jim Beam photo • Basketball shootout • Tug of war • Team t-shirt contest region for a day • Soccer kick • Tennis skills • Team tailgating of friendly com- • Cornhole toss • Dodge ball contest petition and • Parallel parking • 3x3 basketball • Hopscotch drawing employee cama- contest raderie. The Corpo- rate Games will be comprised of 15 events, some highly competitive and others geared toward participation to get people moving, along with activities that foster company spirit. “Many companies support active lifestyles through corporate wellness programs, and the Corporate Games provides local businesses another opportunity to encourage and celebrate their employees’ efforts,” said LSC President and CEO Karl Schmitt. “The Guests at Jim Beam’s Urban Stillhouse in Louisville Corporate Games delivers a positive environment that encourages employee health and can learn how to mix up specialty cocktails from fitness, builds a sense of company spirit, and fosters teamwork and fun through partici- Beam’s master mixologists. pation.” The inaugural Corporate Games will be held 8:30 a.m. to 2 p.m. on June 3 on Kentucky Country Day’s campus in Louisville. Participation is open to full and part- time employees – and their spouses – of companies located in Bullitt, Henry, Jeffer- son, Oldham, Shelby, Spencer and Trimble counties in Kentucky and Clark, Floyd, Harrison, Scott and Washington counties in Southern Indiana. Each company team will compete within one of four divisions based upon that bines select Jim Beam bourbons with a company’s total Louisville-area employment (full and part-time employees). Each trio of non-alcoholic mixers, garnishes company’s team roster can include as few as 15 participants or up to 100 partici- and glassware to help legal purchase- pants. age guests craft the perfect drink. Fea- In addition to the Participatory and Competitive events, there also will be an tured bourbon cocktails rotate monthly. Adult Fun Zone that includes a Warm-Up Pit and Pro Football Combine Simulator. “In addition to enjoying a cocktail in The Warm-Up Pit highlights “old school” exercises such as jumping jacks, windmills, a special location, we’re educating our knee bends and the one-legged cross. The Combine Simulator is comprised of a guests about how to enjoy our brands at 40-yard dash, bench press, vertical jump, standing broad jump, three-cone drill and home,” said Kim Bennett, senior direc- shuttle run. Additional opportunities to get active include yoga, Zumba, boot camp, tor of Kentucky Beam Bourbon Experi- hopscotch and jump rope. ences for Beam Suntory. “Whether Employees who are not able to compete can participate through volunteer stirring up a Jim Beam bourbon mint opportunities. Companies that provide at least five volunteers will receive points julep for your Derby party or mixing a toward their teams’ overall scores. While it is intended that volunteer recruitment be Knob Creek bourbon whiskey sour at focused on employees, family members are welcome to participate to support a com- your next barbeque, our cocktail team pany’s volunteer efforts. will teach you how to impress friends For companies interested in receiving additional recognition during the Corpo- and family with newly attained skills and rate Games, there are three sponsorship levels available. Each sponsorship includes knowledge.” team registration, as well additional benefits. The new guest offering is anticipated Companies interested in sponsorship opportunities or participation can contact to boost traffic and enhance Louisville’s Stephanie Chalko at (502) 736-3498 or [email protected]. Fourth Street experience while promot- ing responsible consumption.

THE LANE REPORT • LANEREPORT.COM APRIL 2017 51

April Lane 24-52.indd 51 4/3/17 9:54 AM KENTUCKY PEOPLE

FRANKFORT: MASONIC HOMES OF KENTUCKY HONORED FOR 150 YEARS OF SERVICE

Leaders from Masonic Homes of Kentucky and longtime Kentucky Masons traveled to Frankfort on Feb. 23 to take part in a Day at the Capitol with legislators, who honored the organization for their legacy of giving and charity. First established to care for families affected by the devastation of the Civil War, Masonic Homes has evolved to become an expert in modern aging care and other specialized services for people of all ages and operates campuses in Louisville, Shelbyville and Northern Kentucky. Pictured here at the award presentation are (left to right): Curtis Johnston, Jean West, John Sammons, Carroll Dorroh, Ron Caughron, Rick Nation, Tim Sanders, Lt. Governor Jenean Hampton, Masonic Homes of Kentucky President and CEO Gary Marsh, Bob Davenport, Wendell Littlefield, Harold Armstrong, Joe Conway, Geary Laird, Gary Rose and Masonic Homes of Kentucky COO J. Scott Judy.

PAINTSVILLE: AMERICAN METAL WORKS LEXINGTON: DONATIONS HELP EXPAND OPENS NEW SITE AT BIG SANDY CTC ST. JOSEPH EAST CANCER CARE CENTER

The Saint Joseph Hospital Foundation, part of KentuckyOne Health, has Big Sandy Community and Technical College and the Paintsville/Johnson received $40,000 in donations to help expand the KentuckyOne Health Cancer County Chamber of Commerce held a ribbon cutting on March 17 for American Care Center at Saint Joseph East Hospital in Lexington. The gifts were made in Metal Works’ new site on the Mayo campus of the college. Pictured at the event memory of Lesa Taylor, a former patient who passed away from breast cancer in are (left to right) James Glass, co-founder of American Metal Works; Kelli 2014. The Lexington Cancer Foundation, Traditional Bank, and family and Chaney, dean of career education and workforce development for BSCTC; friends of Lesa Taylor all contributed to help create a satellite pharmacy and a Dennis Rohrer, co-founder of American Metal Works; and Danny Tonkin, new consultation room named to honor Taylor. Pictured here at the ribbon director of business and industry at BSCTC. cutting are Taylor’s husband, Jamie, and sons Jimmy, Colby and Will.

52 APRIL 2017 LANEREPORT.COM • THE LANE REPORT

April Lane 24-52.indd 52 4/3/17 9:54 AM Introducing the new KET PBS KIDS Channel

Now kids and parents across Kentucky have 24/7 access to safe, proven educational children’s programming, available on-air and online.

Check it out now over-the- air and through select cable providers – including Spectrum.

More at KET.org/kids

BUILDING CRITICAL SKILLS FOR SUCCESS

In addition to the many programs KET provides for children, we also:

· Offer courses to help early childhood education caretakers and teachers earn credit toward state licensing requirements · Present workshops for childcare providers · Develop digital early childhood resources utilized in Kentucky and nationally through PBS LearningMedia

April Lane 24-52.indd 53 4/3/17 9:54 AM IN 2015, TOURISTS SPENT MORE THAN JUST TIME IN KENTUCKY. THEY SPENT $13.7 BILLION.

Tourism is the third largest revenue generator in our state, making it a vital part of Kentucky’s economy, culture and quality of life. Tourism also supports 186,204 jobs in Kentucky – up 6,241 good-paying jobs since 2014.

It’s clear – tourism works for Kentucky. kentuckytourism.com

94696_KDTT_ECOWmn_8_125x10_875c.inddApril Lane 24-52.indd 54 1 1/18/174/3/17 11:57 9:54 AMAM