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March 2016 $4.50 The ® LaneKENTUCKY’S BUSINESS NEWS SOURCE Report FOR 31 YEARS MARCH 2016 $4.50 IT TOOK YEARS TO TURN RUPP FROM DREAM TO LANDMARK ‘Gamechanger, The Lexington Center Story’ documentary captures the struggle and passion behind bringing an economic engine to life Page 24 lanereport.com KY 40150 KY Lebanon Junction Lebanon Permit #327 #327 Permit PAID LANE ONE-ON-ONE: LYNN ALLEN ELECTRONIC SERVICE REQUESTED SERVICE ELECTRONIC U.S. POSTAGE U.S. PRST STD PRST President & CEO, 201 E. Main St. Ste. 1402, Lexington KY 40507 KY Lexington 1402, Ste. St. Main E. 201 Bluegrass International Fund TLR_March2016cover_Final.indd 1 3/6/16 1:50 PM Projects that help the environment and keep your rates among the lowest in the nation. At LG&E and KU, we’re proud to serve the communities we call home. To keep pace with continually changing regulations and to meet increasing energy demands, we’re in the largest construction phase in our company’s history. But as we grow, one thing is the same – our commitment to keep bringing you safe, reliable energy at rates among the lowest in the nation. Visit lge-ku.com/investments to learn more about how our energies go to serving you. TLR_March2016cover_Final.indd89012_LGEku_EnEdu_8_125x10_875c.indd 2 1 12/23/153/6/16 10:181:50 PM AM March Lane 1-22.indd 1 3/6/16 1:16 PM May 22 – 25, 2016 Experience the what’s-what and who’s-who of innovation. One moment. One game-changing idea. One chance to encounter one-of-a-kind thinkers who can shake up the way you think not just about your business, but about your potential as an agent of change. That’s what you’ll find at the ONE Ideas Conference. It’s a three-day celebration of inspiration, ideation and relentless innovation. Hear thought leaders from across industries and across the globe, and interact with like-minded on may 22nd, entrepreneurs. Every organization needs a visionary. Will you be the ONE? some of the STEVE WOZNIAK JOHN CALIPARI JIM STENGEL Co-founder, Apple Computer, Inc. Head Coach of 2012 NCAA Author of “Grow: How Ideals and Chief Scientist, Primary Data National Basketball Champions, the Power Growth & Profit at the world’s most University of Kentucky Wildcats World’s Greatest Companies” innovative minds DR. PEARSE LYONS ALAN MULALLY SETH SIEGEL President and Founder President and Chief Executive Officer, Businessman, Writer, of Alltech The Ford Motor Company Activist, Bestselling Author will be thinking (2006-2014) and Dynamic Speaker Want to get to the top? Get to Lexington May 22-25. Space is limited, so reserve your place for as one. the ONE Ideas Conference now. Register at one.alltech.com or call 1-855-255-2647. Lexington Convention Center // Lexington, KY // one.alltech.com Brought to you by The ONE place to be in 2016. March Lane 1-22.indd 2 3/6/16 1:16 PM ALL-01563-Lane(16.25X10.875).indd 1 2/22/16 3:50 PM May 22 – 25, 2016 Experience the what’s-what and who’s-who of innovation. One moment. One game-changing idea. One chance to encounter one-of-a-kind thinkers who can shake up the way you think not just about your business, but about your potential as an agent of change. That’s what you’ll find at the ONE Ideas Conference. It’s a three-day celebration of inspiration, ideation and relentless innovation. Hear thought leaders from across industries and across the globe, and interact with like-minded on may 22nd, entrepreneurs. Every organization needs a visionary. Will you be the ONE? some of the STEVE WOZNIAK JOHN CALIPARI JIM STENGEL Co-founder, Apple Computer, Inc. Head Coach of 2012 NCAA Author of “Grow: How Ideals and Chief Scientist, Primary Data National Basketball Champions, the Power Growth & Profit at the world’s most University of Kentucky Wildcats World’s Greatest Companies” innovative minds DR. PEARSE LYONS ALAN MULALLY SETH SIEGEL President and Founder President and Chief Executive Officer, Businessman, Writer, of Alltech The Ford Motor Company Activist, Bestselling Author will be thinking (2006-2014) and Dynamic Speaker Want to get to the top? Get to Lexington May 22-25. Space is limited, so reserve your place for as one. the ONE Ideas Conference now. Register at one.alltech.com or call 1-855-255-2647. Lexington Convention Center // Lexington, KY // one.alltech.com Brought to you by The ONE place to be in 2016. March Lane 1-22.indd 3 3/6/16 1:16 PM ALL-01563-Lane(16.25X10.875).indd 1 2/22/16 3:50 PM MARCH LThe ane Report 2016 Kentucky’s Business News Source For 31 Years Volume 31 Number 3 24 COVER STORY TURNING RUPP ARENA FROM A DREAM TO A LANDMARK ‘Gamechanger, The Lexington Center Story’ captures the struggle and passion behind bringing an economic engine to life 28 ‘LIKE A CRUISE SHIP ON LAND’ Kentucky’s senior living communities are expanding and getting nicer – but pricier 31 THE ART OF WORKFORCE DEVELOPMENT STEAM injection into curricula and training programs builds innovative thinking into math and science skills 34 CHANGE, TRANSITION, VOLATILITY IN 2016 Slow-growing U.S. economy might offer opportunity, but wealth managers wary as landscape shifts 38 METRO AREAS FARING BEST IN 2016 Kentucky bankers see modest growth overall, but loss of coal jobs will hurt regionally 42 LOUISVILLE FIRM INVESTS IN INTEGRITY Private Client Services is the back office for independent wealth managers across the nation Departments 6 Perspective 36 Emerging Lane 8 Fast Lane 46 Spotlight on the Arts 16 Interstate Lane 48 Exploring Kentucky 17 Kentucky Intelligencer 50 Passing Lane 18 Corporate Moves 52 Kentucky People 19 On the Boards 20 Lane One-on-One: Lynn Allen Chief Executive Officer, Bluegrass International Fund lanereport.com Kentucky Business News Online On the Cover Read up-to-the-minute Kentucky business news stories, Today Rupp Arena, the Lexington Convention current and archived copies of The Lane Report, Center and Lexington Opera House attract Market Review, BG – A way of life, Next – Your Future After 1.2 million people annually to events that High School in Kentucky, Health Kentucky, Research Kentucky generate $75 million in economic impact, but special reports, white papers and community profiles. it took a group of committed individuals years to get the project off the ground. Faster Lane UK Athletics photo 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. March Lane 1-22.indd 4 3/6/16 2:27 PM Powering Kentucky P E K C 1 6 9 1 4 0 1 2 A N Y N R I V E R S A East Kentucky Power Cooperative Jobs and investment are critical to communities we serve. That’s why our co-ops are actively involved in promoting economic development. the power behind your local electric cooperative Big Sandy RECC Blue Grass Energy Clark Energy Cumberland Valley Electric Farmers RECC Fleming-Mason Energy Grayson RECC Inter-County Energy Jackson Energy Licking Valley RECC Nolin RECC Owen Electric Salt River Electric Shelby Energy South Kentucky RECC Taylor County RECC www.ekpc.coop/power March Lane 1-22.indd 5 3/6/16 1:16 PM LThe ane Report PERSPECTIVE Kentucky’s Business News Source for 31 Years EXECUTIVE EDITOR Mark Green made similar choices. The drama of 2008 ASSOCIATE EDITOR NO PAIN, Karen Baird and its aftermath were existential. Less dramatic but only marginally less DIGITAL EDITOR NO GAIN Robbie Clark Ky. pension liability fix will hurt important, however, was the slow-motion advance of our state’s unfunded pension CREATIVE DIRECTOR – and make the state stronger Jessica Merriman liability problem. The Lane Report’s February 2013 cover headline was, “Ken- CREATIVE SERVICES Stone Advisory BY MARK GREEN tucky pension shortfall a potential bank- Paul Blodgett ruptcy bomb.” Broad economic and CORRESPONDENTS demographic forces were conspiring to Katherine Tandy Brown; Chris Clair; undermine the pension funding deci- Shannon Clinton; Anne Charles Doolin; S is typical in even numbered sions in previous biennial budgets for Kevin Gibson; Frank Goad; Robert Hadley; years, General Assembly session years prior to the Great Recession. As Lorie Hailey; Debra Gibson Isaacs; Kara Keeton; Adiscussions center primarily our article reported, the Kentucky Meredith Lane; Abby Laub; Tim Mandell; around biennial budget writing. Untyp- Retirement System’s unfunded liability Esther Marr; Greg Paeth; Robin Roenker; ically several years into economic recov- bloomed from just under $1 billion in Josh Shepherd; Sean Slone; Katheran Wasson; ery, though, the talk is about who will 2000 to $17.4 billion by 2005 and then to Gary Wollenhaupt; Dawn Yankeelov NOT get what. The bill for Kentucky’s $31 billion by 2010. PUBLISHER/CEO public pension systems is coming due, The system’s previously ascending Dick Kelly and the invoice is $36 billion. asset values stalled when low or nega- ASSOCIATE PUBLISHER What is a state whose revenues run tive investment returns that were not Donna Hodsdon Melissa McGarry less than $10 billion a year to do? offset as they should have been by Hearings, policy papers and trial bal- higher state budget contributions. Pre- BUSINESS DIRECTOR Nicole Conyers loons floated the first half of the session vious incremental generosity and me- have focused on the “pain” that Gov. Matt too-ism in benefits and participation MARKETING CONSULTANTS Bill Marshall; Curtiss Smith; Bevin’s spending proposals will inflict.
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