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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.

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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. was laid bare as the largest generational Cheryl Avioli Our new governor, a pension fund man- cohort in history entered retirement ager before entering politics, is directing (often early) and accelerated liabilities. CIRCULATION/IT Josiah White all state spending for the remainder of It all brings us to now, when Gov. the 2014-16 biennium be cut 4.5 percent. Bevin has proposed a budget that FOUNDER Then, rather than grow with the slowly strongly and correctly urges the legisla- Ed Lane expanding economy, everyone in state ture to greatly increase pension fund- government should plan to cut 9 percent ing – by an additional $1.1 billion. SYNDICATED COLUMNS Creators Syndicate from spending for 2016-18. Producing such a big number for pen- Pain usually is our body telling us sions means more true cuts in funding PRINTING & CIRCULATION SERVICES Publishers Printing Co. something bad is happening. But the levels for many important public ser- political world is often a hall of mirrors, vices programs, and with that the politi- WEB MARKETING & PUBLISHING Software Masters and in this context of the next biennium cal pain circuit is activated. budget, complaints of pain in the body Voices from various segments of Ken- IT SERVICES NetGain Technologies politic probably reflect healthy change. tucky’s public services communities With an improving economy, cutbacks lament that the proposed cuts are too INTERNET SERVICES QX.net are not what Kentucky’s public sector great, that they will be too damaging. Lane Communications Group administrators had in mind for the next They intone that some schools and courts is a member of two years (Consensus Forecasting Group could have to close and cease providing estimates are $327 million in revenue any of their essential public services. growth in Fiscal 2017). They looked for- Suggestions that the proposed budget ward rather to recovering from funding cuts, deep as they are, would provoke an The Lane Report is published monthly by: losses extracted in nine separate mid- end of operations are not a productive Lane Communications Group 201 East Main Street 14th Floor biennium budget-balancing cuts the Bes- political tactic. They do not reflect well on Lexington, KY 40507-2003 hear administration had to undertake as the administrative and problem solving [email protected] For more information and the commonwealth worked its way skills of our services managers. advertising rates contact: through difficult financial times. The pension policies past Kentucky PHONE: 859-244-3500 The Great Recession had begun in General Assemblies enacted created real The annual subscription rate is $29. 2007, and by late 2008 the United States responsibilities and legal obligations. (Kentucky residents add $1.74 sales tax.) Newsstand price is $4.50. was staring down financial panic. Ken- Meeting them is going to mean pain, of tucky public policy leaders, with input the political sort. The choice is less service Send check or money order to: Circulation Manager from the private sector, spent much of or … increasing revenue. Talk of pain in The Lane Report the difficult previous eight years focused the 2016-18 biennium is encouraging; it 201 East Main Street 14th Floor on averting an even worse economic col- indicates healthy things are being seri- Lexington, Kentucky 40507-2003 or go to lanereport.com/subscribe lapse and then on job creation. It’s diffi- ously considered, if not yet happening. ■ cult to fault the strategy, as each of the The Lane Report corrects all significant errors that tens of thousands of jobs lost to a reces- are brought to the editors’ attention. sionary undertow not of the common- Mark Green is executive editor © 2016 Lane Communications Group of The Lane Report. He can be All editorial material is fully protected and must not be wealth’s making affected a real-life reproduced in any manner without prior permission. Kentucky family. Other states and their reached at [email protected]. leaderships faced similar situations and

6 MARCH 2016 LANEREPORT.COM • THE LANE REPORT

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March Lane 1-22.indd 7 3/6/16 1:16 PM FAST LANE A compilation of economic news from across Kentucky

STATE: UK COLLEGE OF MEDICINE EXPANDS CLASS SIZE VERSAILLES: INDIANA BAKING 30% BY ENLARGING MOREHEAD, ADDING BOWLING GREEN COMPANY TO HIRE 300 FOR NEW WOODFORD CO. PLANT N an effort to address the shortage of physicians across the commonwealth, the University of Kentucky ORe Than a Bakery LLC has ICollege of Medicine announced in February that it is announced plans to build a $57.1 planning to develop a satellite program in Bowling Green Mmillion facility in Versailles that for four-year medical education and will expand its Rural will employ more than 300 people. Physician Leadership program in Morehead to a three- The company – an extension of a year medical education program. (Currently, students century-old family business based in participating in the program complete their third and Richmond, Ind. – plans to begin fourth years of medical training with rural-centered clini- construction on a 250,000- to 300,000- cal experiences primarily at St. Claire Regional Medi- s.f. building this summer, with cal Center in Morehead). operations slated to begin by the end of The new initiative – which involves partnering with 2017. The facility will produce cookies, Morehead State University, Western Kentucky Univer- crackers and other items by contract for sity, St. Claire Regional Medical Center, King’s major food brands and retailers and will Daughters Medical Center (Ashland) and The Medical be built on more than 100 acres to allow By expanding its medical program Center at Bowling Green – will begin as early as 2018. for future expansion. through satellite locations, the UK officials said the UK College of Medicine has “The company has needed this kind University of Kentucky College reached its capacity at the Lexington campus and while of Medicine plans to increase of additional space for some time now,” there is a deep applicant pool for medical students, the said Bill Quigg, president and member its class size by approximately college can’t expand enrollment without the help of 30 percent. of the fourth generation of family own- regional partners. ership. “The Richmond plant is bursting

Currently, the UK College of Medicine enrolls 521 students, including 139 in the most Richmond Baking Co. photo recent class. With the new program, UK plans to increase its class size by approximately 30 percent through expansion to the satellite locations. Connie Smith, chief executive officer of The Medical Center at Bowling Green, said the public/private partnership being formed between the hospital and UK “is an extraordinary means to address one of the most pressing challenges in healthcare today – the physician shortage. It is an amazing opportunity for area students wishing to pursue a career in medicine, and the entire commonwealth will ultimately benefit from having greater access to well-trained physicians.

LOUISVILLE: PASSPORT HEALTH TEAMS WITH EVOLENT ON $42M MEDICAID CENTER, CREATING UP TO 650 NEW JOBS

ASSPORT Health, a Louisville-based company that administers Medicaid More Than a Bakery’s new plant in Woodford County benefits to more than 280,000 Kentuckians, has formed an alliance with will produce a variety of cookies and crackers. PVirginia-based Evolent Health to create a Medicaid Center of Excellence in Louisville that will create up to 650 new jobs. Evolent Health currently part- at the seams and isn’t easily adapted for ners with leading health systems to current production methods, and the advance value-based care. The (Alma) Georgia facility has had 200 per- company plans to invest nearly $42 cent growth in two years. We want this million in the new Center of new facility and our new employees to Excellence, which will combine Passport’s help us create a unique culture that will expertise in Medicaid managed care with help everyone succeed both personally Evolent’s technology and operations to and professionally.” provide centralized services for provider- The company dates back to 1902, led Medicaid health plans nationwide. when the Quigg family purchased a Evolent will initially hire 200 workers neighborhood bakery in Richmond, in the first year and plans to add up to 300 additional workers by year three. Docu- Ind., that produced cookies, breads ments filed with the state indicate a total of 647 jobs created within 10 years. The and cakes. Since then, the company Kentucky Economic Development Finance Authority has issued preliminary has gained expertise in breading sys- approval for $10 million in tax incentives for Evolent, contingent on the company tems, dessert crumbs, ice cream inclu- meeting those hiring targets. sions, contract baking and packaging Passport, a nonprofit provider-sponsored managed care organization that has services. Richmond Baking’s custom- been administering Medicaid benefits in Kentucky since 1997, currently has ers include Fortune 100 food brands, approximately 500 employees will Louisville. The company will assign some 350 of grocery and convenience store chains, those workers to operations at the new Center of Excellence. school cafeterias and national food- “The Medicaid Center of Excellence will help us bring the Passport model to service companies. states beyond Kentucky,” said Mark B. Carter, CEO of Passport Health Plan.

8 MARCH 2016 LANEREPORT.COM • THE LANE REPORT

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BUSINESS BRIEFS WALTON: AEROSPACE MANUFACTURER LAUNCHES $100M EXPANSION PROJECT ALBANY ■ Thoroughbred Houseboats has ESSIER-Bugatti- acquired a building in neighboring Wayne Dowty, a company County formerly owned by Fantasy Yachts Mthat produces and has closed its Clinton County plant in aircraft wheel and brake order to consolidate operations in the new components, is investing Monticello location. Though the houseboat more than $100 million to building industry has taken a hit in recent expand its plant in Walton. years due to a slow economy, Thoroughbred President Shawn Heinen told the Clinton The planned expansion Wikimedia/Julian Herzog photo County News that his company has recently received a significant number will increase the plant’s of orders for very large boats in recent months, thus prompting the production capacity to Messier-Bugatti-Dowty first introduced decision to relocate. Thoroughbred opened its doors in 1996 and currently meet expected airline carbon brakes on commercial aircraft in employs approximately 40 workers. The company plans to add at least 15 demand for wheels and to 20 new employees within the next few months. 1986. Carbon brakes offer a higher carbon brakes. energy absorption capacity along with ALBANY/BOWLING GREEN Messier-Bugatti-Dowty reduced operating costs. ■ Bowling Green-based Commonwealth Health Corp. has assumed first introduced carbon management of the Clinton County Hospital, a 42-bed not-for-profit brakes on commercial aircraft 1986. Carbon brakes have now acute-care hospital in Albany that has a staff of 125. With the acquisition, become the benchmark in high-performance braking, offering CHC now operates six acute-care hospitals in south-central Kentucky, energy absorption capacity two-to-three times greater than steel including The Medical Centers in Bowling Green, Caverna, Franklin and brakes along with reduced operating costs, delivering Scottsville and Commonwealth Regional Specialty Hospital in technological, economic and environmental advantages to Bowling Green. Once the financial transaction closes this month, the airlines. The company is a partner to 30 commercial, military, Clinton County Hospital will operate as The Medical Center at Albany. business and regional aircraft manufacturers. The Walton plant’s BOWLING GREEN client list includes Delta, Spirit and Air Canada, among ■ Precision Strip Inc., a company that processes metals for various numerous other North American airlines. industries, is building an 80,000-s.f. facility in Scotty’s Industrial Park in Once the two-year construction project in Walton is northern Warren County to help better serve its customers in south- complete in 2018, the company plans to add approximately central Kentucky. The company hopes to mirror the growth of its 80 employees to support the expansion. existing Kentucky location in nearby Woodburn, which has expanded three times in the last 20 years and currently employs 112 people in a 308,000-s.f. facility. Precision Strip plans to add 15 more jobs as result of LEXINGTON: $10M EXPANSION, 40 MORE the latest expansion. JOBS PLANNED FOR COLDSTREAM LABS CAMPBELLSVILLE ■ The Campbellsville University board of trustees has approved a IRAMAL Pharma resolution to offer certificate-completion programs and four degree Solutions, an programs at a new education center in Harrodsburg. The Harrodsburg PIndia-based location will offer cosmetology and allied health offerings as well as a company that purchased professional master of business administration, a master of theology, an Coldstream Labs last early childhood education P-5 degree and a master of science in information technology management. year, has announced plans to invest $10 ERLANGER million to expand the ■ St. Elizabeth Healthcare and SUN (Solving Unmet Needs) broke Coldstream Labs’ ground in February on a new 197-bed behavioral health hospital in manufacturing facility in Erlanger. The new facility, which will employ 400 people (including 270 Piramal Pharma Solutions plans to expand its Lexington. new positions), is being built to address the region’s need for inpatient Piramal Pharma behavioral health services and chemical dependency resources. The Coldstream Labs facility in Lexington. The hospital is expected to open in the second half of 2017. company is aiming to become a significant Solutions executives said player in the field of injectable pharmaceuticals. the project, which will HEBRON create 40 new jobs, will ■ Delta Air Lines is laying off 120 cargo employees at the Cincinnati/ help the Lexington facility grow into a significant player in the Northern Kentucky International Airport (CVG) and reducing the contract manufacturing market for injectable pharmaceuticals. work schedules of 185 other employees as it works to bring its Coldstream Labs started in 1991 as the Center for employment there in line with operational needs. Despite the Delta Pharmaceutical Science & Technology, a unit of the University changes, the airport itself is currently in growth mode. In February, the airport held a hiring event for 26 CVG employers who have of Kentucky College of Pharmacy. It completed more than approximately 350 positions to fill. Those jobs range from airframe and 200 development projects that led to clinical trials. In 2007, the power-plant licensed mechanics to retail sales, hospitality, car rental college spun off Coldstream Labs as a private company owned by and ticket agents. the University of Kentucky Research Foundation. As a separate independent business, Coldstream Labs HENDERSON gained the ability and technical expertise to manufacture ■ Custom Resins is investing up to $12 million to double the size of liquid and freeze-dried injectable products. In January 2015, its plant in Henderson, where it has been producing specialty nylon resins for nearly 60 years. Construction is slated to begin later this year the Research Foundation sold Coldstream Labs to Piramal on a 100,000-s.f. addition that will house up to eight compounding Pharma Solutions, a global leader in pharmaceutical contract extruders and peripheral equipment. The expansion will create 40 new services, and the flagship division of the Mumbai, India-based jobs and will enable the company to make new resins from sustainable, Piramal Group. The acquisition gives Coldstream Labs access bio-based raw materials. The company’s products are used in to the financial resources needed to expand its facilities and automotive components, nylon carpeting, wire and cable sheathing, meet its customers’ needs. packaging, and lawn and garden power tools.

10 MARCH 2016 LANEREPORT.COM • THE LANE REPORT

March Lane 1-22.indd 10 3/6/16 1:16 PM March Lane 1-22.indd 11 3/6/16 1:16 PM FAST LANE

BUSINESS BRIEFS LOUISVILLE: NEW TRAINING CENTER FOR 3-D PRINTING OPENS ON UofL CAMPUS HICKORY ■ LSK Inc., an air-compressor parts manufacturer, is investing more HE University of than $1 million to build a new 10,800-s.f. facility in Hickory to Louisville has photo accommodate future growth. The company began 13 years ago and Tpartnered with UL, a now supplies parts for assembly lines of Fortune 50 companies and global safety science power plants that provide energy internationally. The expansion will organization, to open a new add 10 new jobs. 3-D printing training center

LARUE COUNTY on the UofL campus. Jonathan Juursema ■ Konsei USA, a company that specializes in machining steel compo- Developed for nents for the automotive industry, has purchased the former Clayton established additive Homes building and 27 acres in the LaRue County Industrial Park for manufacturing technical $2.9 million, according to a report by the LaRue County Herald. Konsei and business professionals, The University of Louisville and UL are has been leasing space in the building, along with Cumberland Prod- the collaborating with the 3-D printing and UL Additive additive manufacturing industry to advance ucts and Karbec. According to the report, Konsei plans to honor the Manufacturing existing lease with the other two companies. education and training. Competency Center LETCHER COUNTY (AMCC) will serve as a hub ■ The U.S. Bureau of Prisons plans to utilize $444 million in federal for advancing additive manufacturing knowledge and workforce funding to construct a federal prison on 700-acres in the Roxana expertise. The UL AMCC provides hands-on training in additive community of Letcher County. U.S. Attorney General Loretta Lynch manufacturing for metals and curriculum covering design setup, said the new prison will help address the issues of overcrowding, safety design corrections, machine setup, part production, post- of correctional officers, and violence and disease among inmates. The processing and parts inspection, testing and validation. The new prison will create an estimated 300 full-time jobs. training will allow professionals to understand how to produce LEXINGTON metal parts and emerging materials through additive ■ Lexington-based Rood & manufacturing, and establish safety systems, identify hazards Riddle Equine Hospital has from materials and machines and manufacture parts with safety expanded its footprint with the built into designs. purchase of an equine hospital Over the next few years, hundreds of workers from across the and adjacent property in country will be training at the new center, UofL officials said. Wellington, Fla., its second The UL AMCC joins the University of Louisville’s global clinical venture outside of Kentucky. (The hospital advanced manufacturing campus, the Institute for Product established a practice in Saratoga, Realization (IPR), and will collaborate and share knowledge N.Y. in 2013.) Rood & Riddle with other corporate residents, including GE and Local acquired the Wellington hospital in response to an increase in the Motors’ FirstBuild. number of Kentucky clients showing and racing in Florida. “The UL AMCC is a first-of-its-kind facility with the technical and educational expertise to not only progress additive ■ Louisville-based 21c Museum Hotels has opened a new hotel in manufacturing but also contribute to the future of Lexington, the company’s fifth location. The 88-room 21c Lexington is an adaptive reuse of the 100-year-old Fayette National Bank Building in manufacturing transformation,” said David Adams, CEO of the downtown Lexington and features a 7,000-s.f. contemporary art IPR. “We see the intersection of industry information, UL’s museum that is open to the public free of charge. training, certification and safety knowledge and the university’s additive manufacturing expertise and academic research ■ Cabela’s, a popular retailer of creating a manufacturing environment unlike anything else.” hunting, fishing and outdoor gear, will open its third Kentucky location this month in Lexington. LOUISVILLE: TOP 10 GLOBAL LAW FIRM TO The 72,000-.s.f. store, located in the Hamburg Place development BRING 250-JOB SERVICES CENTER TO KY near I-75, will create 160 new OGAN Lovells, a leading international law firm, is jobs. The retailer’s other establishing a second global business services center in Kentucky stores are located in Louisville and Bowling Green. HLouisville that will create 250 jobs. The center will be the company’s first such facility in the United States; its other LOUISVILLE business services center is located in South Africa. ■ American Airlines has announced new nonstop jet service from Louis- Hogan Lovells is one of the world’s top 10 law firms, with a ville to New York’s LaGuardia Airport. Beginning June 2, the airline will staff of 5,000 operating from 49 offices in 25 counties. The offer one daily flight using 50-seat Canadair regional jet aircraft. Louisville firm recorded annual revenues in 2015 of $1.82 billion, with International Airport Executive Director Skip Miller said the business the Americas representing approximately 50 percent of the community had been requesting more seats to New York for some time. firm’s total billings. ■ Construction work is officially underway for the Hogan Lovells’ Americas regional managing partner, Cole new 612-room Omni Hotel being built in downtown Finegan, said one of the reasons the firm chose Louisville for Louisville. Located at Liberty and 2nd Street, the its new business services center was that the area offers an 30-story hotel will have the distinction of being the excellent supply of talented people. city’s tallest hotel and will serve as the cornerstone “It is (also) well placed in terms of time zones and offers of Louisville’s entertainment, retail and office good opportunities for cost savings when compared to district. The $289 million public/private project will also include 225 luxury apartments, 70,000-s.f. of Washington D.C. and a number of our other existing office flexible meeting and event space, and a market that locations,” he added. will serve hotel guests as well as local residents. The center is expected to be operational by late summer, Once completed, the hotel will employ 320 people. with an initial staff of 50 in the first year.

12 MARCH 2016 LANEREPORT.COM • THE LANE REPORT

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Four. lection of minds are better than one. Therefore, full disclosure, discretionary investment man- in diversification,We believe regular in investing rebalancing early and andmod -often to allow inconsistent andall investment less than strategies desirable are outcomes established andthinking, agers in you’ll the country. find While our otherpricing firms is verymake itcom ifying- your plan based on the phases of your for clients. Atoverseen Unified by ourTrust, Trust Investmentwe believe Committee. a col- petitive.difficult We toare discern also onehow ofthey the are firstpaid andfee-based, how life andcompounding potential prolonged to work adverse for economic you. We also believe lection of minds are better than one. Therefore, full feesdisclosure, are assessed, discretionary we have always investment practiced full man climates.- in diversification,As a fiduciary, our regularfocus is onrebalancing manag- and mod- This committee is comprised of senior leaders ing downside risk in client portfolios and thus all investmentand strategies highly credentialed are established investment professionand agers- disclosure in the country. of our fees. While That isother why firmsyou will remake- it ifying your plan based on the phases of your ceive a quarterly invoice simply for the purpose we recognizelife and there potential could be prolonged times, albeit adverse few economic overseen by ourals acrossTrust all Investment company divisions. Committee. The commitdifficult- to discern how they are paid and howand far between, when our Trust Investment tee is responsible for evaluating macroeconom- of making sure you are aware of the fees you climates. As a fiduciary, our focus is on manag- This committee is comprised of senior leaders fees areare paying. assessed, we have always practiced fullCommittee may recommend an overall reduc- ic factors and market conditions that influencedisclosure of our fees. That is why you will retion- ining portfolio downside risk based risk on in the client Committee’s portfolios and thus and highly credentialedour strategic investmentinvestment decisions. profession You can- rest 8. What are the total costs and fees economicwe andrecognize stock market there outlook. could be times, albeit few als across all easycompany knowing divisions. your portfolio The is beingcommit managed- ceive for a quarterlytypical stock invoice and simply bond forfunds the youpurpose 13. Howand often far between, do you evaluate when our my Trustsit- Investment tee is responsibleby experts for evaluating according macroeconomto prudent investment- of makingwould sure recommend? you are awareAs a fiduciary,of the fees we you standards. are paying.always have your best interest in mind. Our uationCommittee and provide may an recommendup-to-date fore an -overall reduc- ic factors and market conditions that influence cast? We provide all clients with a quarterly 2. What is your educational back- advisors don’t receive any incentives for rec- tion in portfolio risk based on the Committee’s our strategic investment decisions. You can rest 8. What are the total costs and feesinvestment report showing the progress of our ground? ommending one type of fund over another and economic and stock market outlook. At Unified Trust, your investments fiduciary oversight and meet with them regu- easy knowingare your managed portfolio by a team is being of experts managed dedicated tofor wetypical disclose stockour fees toand you bondin a quarterly funds re -you by experts according to prudent investment wouldport. Any recommend? compensation we As receive a fiduciary, as a result larlywe to13. discuss How their often ongoing do plan. you Our evaluate Trust my sit- helping you achieve your goals. Our Fiduciary Investment Committee also evaluates invest- standards. Investment Advisors all hold either the Certialways- of transactions,have your known best interestas revenue in sharing, mind. is Our uation and provide an up-to-date fore- ® credited to your account to help offset costs. ments and asset allocations monthly. fied Financial Planner (CFP ) or Chartered Fiadvisors- don’t receive any incentives for rec- cast? We provide all clients with a quarterly 2. What is your educational® back- 14. Does your retirement forecasting nancial Analyst (CFA ) designation but manyommending 9. What oneallocation type of guidelines fund over anotherdo you and investment report showing the progress of our ground? also hold additional degrees and certifications. use? For a person of my age and what include discrete financial events like a At Unified Trust, your investments fiduciary oversight and meet with them regu- are managed Theyby a teamare subject of experts to continuing dedicated education to stanwe- discloseyou observe our feesabout to theyou thingsin a quarterly I have rereal-estate- purchase or sale, death of a spouselarly and to subsequent discuss their survivor ongoing ben plan.- Our Trust helping you achievedards within your their goals. fields. Our Fiduciary port.told Any you, compensation what rough wepercent receive of asequi a result- ties (stocks and real estate) would you efits or other large financial events? 3. How long have you been an adviser?of transactions, known as revenue sharing, is Investment Committee also evaluates invest- Investment Advisors all hold either the Certi- allocate in a portfolio? To build a per- Yes, at Unified Trust, we work closely with cli- Our advisors have ®on average at least 12 yearscredited to your account to help offset costs. ments and asset allocations monthly. fied Financial Planner (CFP ) or Chartered Fi- ents to set goals for all the milestones in their of wealth management experience implement- sonalized financial strategy, we must first get nancial Analyst (CFA®) designation but many 9. Whata complete allocation picture of your guidelines financial situation. do you lives and14. then Does create yourlong-term retirement prudent strate - forecasting ing high level financial planning, trust and in- gies to realistically achieve those goals. To reach also hold additionalvestment degreessolutions andfor clients. certifications. All have experi use?- After For you a answerperson our ofrisk mytolerance age question and what- include discrete financial events like a naire we can determine your asset allocation your goalsreal-estate you need to purchase have a long-term or sale, plan death of a They are subjectenced to the continuing ups and more education importantly, stan downs- ofyou observe about the things I havein place and continue to adjust and modify it the markets of the past decade plus. and develop a personalized long-term plan. As spouse and subsequent survivor ben- dards within their fields. toldyour you, circumstances what rough change, percent we will help of you equi as- time goes on. That’s the way we work and 4. Do you accept fiduciary responsi-tiesmodify (stocks your andplan. real estate) would youthat’s theefits reason ouror clients other have large had so much financial events? 3. How longbility? have Yes, you we been are one an of adviser?only a handful of success. allocate10. What in are a portfolio?the important To economic build a per- Yes, at Unified Trust, we work closely with cli- Our advisors nationalhave on independent average at trust least companies 12 years in the risks you think we need to be con- 15. Doents you to think set goals you wouldfor all bethe a milestonesgood in their country today. This allows us to offer fiduciarysonalized financial strategy, we must first get of wealth management experience implement- cerned about, and do you suggest adviser to me? Why? Our mission is to discretion. We put our clients first and we musta complete picture of your financial situation. lives and then create long-term prudent strate- ing high level financial planning, trust and in- some investments that might alleviate help peoplegies to achieve realistically successful achieve financial those out goals.- To reach always use a “prudent expert” standard of care.After you answer our risk tolerance questioncomes.- In a sense we’re guardians of their vestment solutions for clients. All have experi- these? There are many risks you need to be your goals you need to have a long-term plan enced the ups5. and Describe more importantly, your firm. downsOur company of naire prepared we can for, determine including inflation your assetand taxes allocation but dreams and it’s a responsibility we don’t take lightly.in As place a fiduciary and continueand discretionary to adjust trustee, and modify it the markets ofserves the individualpast decade investors plus. through our Wealthand alsodevelop healthcare a personalized and longevity. long-term Our approach plan. to As Management Services business and retirementyour a circumstancespersonalized financial change, plan weaccounts will forhelp in- youwe areas bound time by goes law to on. always That’s act in theyour bestway we work and 4. Do you plan accept participants fiduciary through our responsi Retirement- Planmodify flation, your taxes plan. and strategic diversification. We interestthat’s and use the a “prudentreason ourexpert” clients standard have of had so much bility? Yes, Consultingwe are one Group. of only We manage a handful accounts of across also offer a comprehensive retirement income care. Oursuccess. loyalty and transparency set us apart the U.S., however most of our client base is in10. solution,What arecalled the the Unifiedimportant IncomePlan®, economic de- in the industry and that is evident in the an- national independent trust companies in the Central Kentucky. Including both lines of busirisks- signed you to providethink you we reliable need income to forbe life. con swers- we’ve15. Do provided you here. think If this you is the would kind of be a good country today.ness, This we manageallows moreus to than offer $4 billion fiduciary in assets service you want, let’s start building your per- cernedIn the eventabout, of personaland financialdo you challenges, suggest adviser to me? Why? Our mission is to discretion. Weand put employ our clientsabout 100 first people. and we must you have a team of experts with you every step sonalized financial plan. some investments that might alleviate help people achieve successful financial out- always use a “prudent6. What investmentexpert” standard firms of docare. you use of the way. comes. In a sense we’re® guardians® of their in your practice? We use an open archithese?- There are many risks you need to be KEVIN AVENT, CFP , AIF 5. Describe your firm. 11. What kind of investments do you tecture platform which Our allows company access to overprepared recommend? for, including Our investmentinflation andportfolios taxes but dreamsWealth and it’sManagement a responsibility Director we don’t take serves individual20,000 investors investment through options. our This Wealth gives ouralso consisthealthcare of individual and longevity. stocks and Ourbonds, approach mutual to lightly. UnifiedAs a fiduciary Trust Company and discretionary trustee, 859-514-6161 ManagementTrust Services Investment business Committee and retirement the breadth toa personalizedfunds, and exchange financial traded plan funds. accounts In addition, for in- we are bound by law to always act in your best select investments and investment managers [email protected] plan participants through our Retirement Plan flation,our Unified taxes andFiduciary strategic Monitoring diversification. Index® pro- We interest and use a “prudent expert” standard of whose philosophies and values align best with vides a unique and time-tested way to evaluate Consulting Group.your goals. We manage accounts across also offer a comprehensive retirement income care. Our loyalty and transparency set us apart the U.S., however most of our client base is in solution, called the Unified IncomePlan®, de- in the industry and that is evident in the an- NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE Central Kentucky. Including both lines of busi- signed to provide you reliable income for life. swers we’ve provided here. If this is the kind of ness, we manage more than $4 billion in assets In the event of personal financial challenges, service you want, let’s start building your per- and employMarch Laneabout 1-22.indd 100 13 people. you have a team of experts with you every step sonalized financial plan. 3/6/16 1:16 PM 6. What investment firms do you use of the way. ® ® in your practice? We use an open archi- 11. What kind of investments do you KEVIN AVENT, CFP , AIF tecture platform which allows access to over recommend? Our investment portfolios Wealth Management Director 20,000 investment options. This gives our consist of individual stocks and bonds, mutual Unified Trust Company 859-514-6161 Trust Investment Committee the breadth to funds, and exchange traded funds. In addition, [email protected] select investments and investment managers our Unified Fiduciary Monitoring Index® pro- whose philosophies and values align best with vides a unique and time-tested way to evaluate your goals.

NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE FAST LANE

BUSINESS BRIEFS LEXINGTON: BLUE GRASS STOCKYARDS TO REBUILD AT I-75 AND IRONWORKS PIKE LOUISVILLE ■ Eurofins Microbiology, a global laboratory services and product- LUE Grass testing company, has opened a new 65,800-s.f. microbiology lab in Stockyards, Louisville that will employ up to 110 people, including chemists, Bwhich lost its biologists and techs, as 70-year-old facility well as administrative and near downtown IT positions. The facility Lexington in a dev- will offer testing services astating fire in Janu- needed to quantify, detect or identify pathogenic, spoilage and probiotic microorganisms. ary, has announced Eurofins said Louisville’s proximity to more than 60 percent of U.S. cit- plans to build a new ies and the presence of UPS’ Worldport hub will reduce the turn- $11.9 million facility around time of results by up to eight hours over competing labs. in northern Fayette Farm Bureau photo Thornberry/Ky. Tim County near I-75. ■ Louisville-based Kindred Healthcare has expanded its presence in “Lexington has South Carolina by acquiring licenses from the South Carolina Depart- been our home for ment of Health and Environmental Control to provide home health services in all 46 South Carolina counties. As part of the $18 million 70 years,” said Jim Blue Grass Stockyards’ facility near downtown agreement, Kindred will add 72 employees and 650 patients. Since the Akers, chief oper- Lexington was completely destroyed in January in a beginning of the year, the Fortune 500 healthcare company has also ating officer. “It’s massive fire. expanded in Ohio, where it has opened a second inpatient rehab facil- part of our culture; ity (IRF) in Cleveland and acquired HopeBridge Hospice; opened a our roots are here. And its central location, near the inter- new 160-bed transitional care center (TCC) in Las Vegas; opened a 120- states, is convenient for our farmers.” bed TCC in Phoenix and broken ground on an IRF just outside of Lexington Mayor Jim Gray said the business is extremely Phoenix; and opened a sub-acute skilled nursing unit with Kindred Hospital South Florida-Hollywood, near Miami. important to Lexington. “Blue Grass Stockyards is to cattle what Keeneland is to ■ Louisville-based Yum! Brands – the parent company of KFC, Pizza Thoroughbreds,” Gray said. “It is the biggest cattle market Hut and Taco Bell – is relocating its top executives to Plano, Texas, group east of the Mississippi River. Because of its sales volume, home to the company’s Pizza Hut and KFC global divisions. Those it effectively sets the cattle price structure for the entire being relocated include Chief Executive Officer Greg Creed as well as Eastern United States.” the chief financial officer, chief people officer, chief legal officer and Noting that the state has one cow for every four residents, chief public affairs and global nutrition officer. Louisville remains the company’s global headquarters. Kentucky Agriculture Commissioner Ryan Quarles said the announcement is a big step toward restoring an important MAYFIELD market for livestock producers in Kentucky and throughout ■ America SednAir Compressor Systems Inc. has completed a new $1 the eastern United States. million headquarters facility in Mayfield. The new facility will enable the Last year, approximately 106,000 animals were sold at the company – which imports, exports, maintains, repairs and retails parts for Lexington market, plus another 50,000 sold on-line out of the industrial air compressor systems – to begin producing air coolers that chill Stockyards offices in Lexington. Farmers were paid compressed air for large-scale compressors. The company plans to add 11 new jobs as a result of the additional operations. approximately $200 million for that livestock. Altogether, at its seven locations in Kentucky and through online sales, the MONTICELLO market buys about $600 million in cattle each year. ■ Employees of the Belden manufacturing plant in Monticello have been told the STATE: HUNDREDS MORE COAL JOBS ARE facility will close by the end of 2017. The St. Louis-based cable CUT ACROSS EASTERN, WESTERN KY. manufacturer plans to move the Monticello operations to its facilities in Richmond, Ind., and Nogales, Mexico. The closing will affect 230 full- ENTUCKY is losing more coal jobs with layoff time employees in Monticello. announcements coming in recent weeks from both KAlliance Resource Partners and Pine Branch Mining. NORTHERN KENTUCKY Pine Branch Mining, owned by Lexington-based ■ Twenty-seven companies announced new investments in Northern Blackhawk Mining, is laying off more than 150 employees Kentucky in 2015, a 105 percent increase over 2014. The investments from three Eastern Kentucky sites in April. Two of the generated more than 2,400 direct new jobs in the region and have a projected impact of another 2,000 indirect jobs. affected mines are in Perry County, with the other located in Leslie County. The Pine Branch complex primarily utilizes PIKEVILLE surface mining methods and sells thermal coal to ■ Pikeville Medical Center has received approval from the state to international utility customers and a variety of customers in add 39 more beds, bringing the hospital’s total to 300. PMC officials say the southeast U.S. the hospital has been forced to turn away critically ill patients because it Meanwhile, Alliance Resource Partners has eliminated 75 did not have enough available beds, forcing patients to travel for at least jobs at its River View coal mine in Union County and the an hour and half to receive critical-care services. company has also filed federal papers indicating its plans to SIMPSONVILLE cut more than 400 jobs at its Hopkins County Coal and ■ Crosley is expanding its presence in Simpsonville, leasing a 225,000- Warrior Coal operations in Madisonville. s.f. building adjacent to its existing Kingsbrook Commerce Park In a statement announcing the River View job cuts, distribution and warehouse facility in order to gain more space. The General Manager Ken Ford cited ““weak power demand, company has two divisions – Crosley Radio and Crosley Furniture – persistently low natural gas prices, an oversupplied coal and also handles product fulfillment for retailers such as JCPenney, market and the presidential administration’s excessive and Wayfair, Urban Outfitters and Barnes & Noble. Company officials say they hope to have the new facility operational by November. costly regulations.”

14 MARCH 2016 LANEREPORT.COM • THE LANE REPORT

March Lane 1-22.indd 14 3/6/16 1:16 PM FRANKLIN: TMM’S FIRST U.S. STAMPING BUSINESS BRIEFS PLANT BRINGS NEW JOBS TO FRANKLIN WALLINGFORD MM USA Inc., a subsidiary of Toyo Tire & Rubber Co., ■ GreenTree Forest Products Inc., an Appalachians hardwoods plans to lease 45,000 s.f. in the newly expanded Toyo producer, is investing $2.2 million to upgrade equipment at its facility in TAutomotive Parts USA Inc. factory in Franklin, an Fleming County. The plant currently produces 8 million feet of Appalachian arrangement that is expected to save both time and expense. hardwood annually and expects the investment to increase production by Toyo Automotive Parts’ Franklin facility produces 30 percent. GreenTree currently employs a staff of 45 and anticipates antivibration components, including engine mounts, bush- adding 10 full-time jobs to help meet increased demand for its products. ings and strut mounts. By locating TMM in-house, Toyo Auto- WILDER motive executives say they expect to save on metal and raw ■ TMK IPSCO Tubulars Inc. is laying off 83 workers this month at its materials as well as on shipping and storage. Currently, Toyo plant in Wilder, where it produces steel piping for oil and natural gas purchases more than 50 percent of those materials from out- transit. The company cited a decline in oil and gas drilling in the side suppliers. United States and “the continued foreign imports of unfairly traded A well-recognized name in stamping and welding in its steel pipe” as the primary factors in the decision. Prior to the layoffs, native Japan, the Franklin location marks TMM’s first U.S. the Wilder plant employed 124 people. facility. The new operation represents an investment of $5.6 STATE million and will create 42 new jobs. ■ Kentucky auto manufacturers

produced more than photo Toyota 1.3 million passenger vehicles in 2015, a 2.4 Submissions Welcome percent increase over To submit news and photographs for publication in Fast 2014, according to Lane, please send via e-mail to [email protected] or new data from the mail information to: The Lane Report, 201 East Main Street, Kentucky Automotive 14th Floor, Lexington, KY 40507-2003. Industry Association. Color photographs are preferred, either in standard form or The number digital. For digital photographs, a resolution of 300 dpi is required, maintains Kentucky’s status as the nation’s third-largest producer of formatted in either jpeg or tif. cars and light trucks. Industry employment numbers increased as well, rising to nearly 90,000 statewide, up from 85,552 in 2014.

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March Lane 1-22.indd 15 3/6/16 1:16 PM INTERSTATE LANE Business news from Indiana, Ohio, Tennessee and West Virginia

BUSINESS BRIEFS INDIANA: RECYCLING COMPANY ADDS 465+ NEW CUSTOMER RESOURCE JOBS INDIANA ■ Alcoa is permanently closing its Warrick EPUBLIC Services Operations smelter in Evansville, Ind., by the Inc., a leading U.S. end of March, eliminating 600 jobs. The Rrecycling company, has facility’s rolling mill and power plant, which announced plans to establish employ some 1,235 workers, will remain in a shared services center near operation. In announcing the closure, the Indianapolis that will create company said the Warrick plant was no longer competitive and cited “challenging market conditions,” noting that the up to 469 jobs by 2025. price of aluminum in 2015 alone dropped approximately 30 percent. Republic, a Fortune 500 company headquartered in ■ Allied Solutions, a distributor of insurance, lending and marketing Phoenix, Ariz., is investing products to financial institutions, has announced plans to expand its $13.6 million in the new Republic Services operates recycling headquarters in Carmel, Ind., creating more than 600 new jobs by 2025. facility, which will be one of and nonhazardous waste disposal The company currently employs more than 980 associates in 17 three customer resource services across 39 states. regional offices across the country, including 420 in Indiana. centers to be established throughout the country to enhance ■ Omen USA, an Israeli manufacturer of aluminum parts for the support for the company’s 31,000 employees – 1,500 of automotive industry, has announced plans to locate its first North whom are located in Indiana – and 15 million customers American production facility in Richmond, Ind., creating up to 100 across 39 states. new jobs by 2019. The company is investing $16 million to renovate and The 68,000-s.f. corporate office space in Fishers, Ind., is equip a 76,000-s.f. facility and plans to begin operations by the end of expected to be operational by September. the year. Omen’s Indiana plant will produce aluminum parts for drivelines, steering components and oil pumps for American and German automotive manufacturers. TENNESSEE: TOLEDO MOLDING & DIE TO OHIO HIRE 250 FOR NEW AUTO PARTS PLANT ■ Glacier Restaurant Group, a Montana restaurant company, has acquired the Max & Erma’s restaurant chain, a Columbus, Ohio-based OLEDO Molding & Die Inc. is investing $20 million to casual dining chain that has 51 locations in 10 states. Glacier said it build a new manufacturing facility in Fayetteville, plans to renew and update the Max & Erma’s concept. TTenn., that will create 250 new jobs. Headquartered in Toledo, Ohio, TMD is a full-service ■ Whirlpool Corp. is investing more than $40 supplier of interior and air and fluid management systems million to expand its plant for the automotive industry. in Findlay, Ohio, where the TMD President and Chief Executive Officer Steve Ciucci company produces said the company selected Tennessee for its expansion dishwashers. The 86,400-s.f. project “because of its proximity to our customers, the expansion project will create availability and quality of the workforce, the high quality of approximately 50 new jobs. life Tennessee offers our employees and the pro-business ■ IGS Energy has acquired DPL Energy Resources, a Dayton, Ohio, environment in the state.” utility company that serves more than 515,000 customers in the Miami Construction on the new 126,000-s.f. plant is already Valley region. IGS, headquartered in Dublin, Ohio, is one of the underway. The facility is expected to be operational by the nation’s largest independent energy suppliers, with more than 1 million fourth quarter of this year. residential, commercial and industrial customers across the country.

TENNESSEE OHIO: FORD INVESTING $145M TO MEET ■ Memphis-based Hunter Fan Co. has launched a new division that will focus on the company’s entry into the industrial and commercial HIGH DEMAND FOR ECOBOOST ENGINES

market. The debut product from Hunter Industrial is the Titan indus- Ford photo trial fan, a high-volume, low-speed fan that comes in five sizes ranging ORD Motor Co. is invest- from a 14- to 24-foot blade span. ing $145 million to Fupgrade its Cleveland ■ Olympus, a Japan-based medical device and precision technology Engine Plant to support company, is investing $12 million to build an East Coast national service demand for its EcoBoost and distribution center in Bartlett, Tenn., northeast of Memphis. The engine family for the 2017 expansion will create 280 new jobs. Ford F-150 line-up. ■ General Motors is investing $148 million to The Cleveland plant pro- repurpose flexible machining and assembly Ford has seen an increased demand duces the current version of equipment at its Spring Hill, Tenn., manufacturing for its EcoBoost engine, which the 3.5-liter EcoBoost plant to build V8 engines. The investment will provides customers with both power engine, which powers the and fuel economy. enable Spring Hill to quickly add capacity to build 2016 Ford F-150, Explorer, the Small Block 6.2L V8 engine for the popular , , and models. truck and SUV segment. Expedition Transit Flex Taurus EcoBoost engines, introduced in 2009, use smaller overall ■ Cracker Barrel, a Tennessee-based restaurant chain, is set to open a engine size combined with turbocharging, gasoline direct new restaurant concept that will feature Southern food with a twist, injection and variable valve timing to provide both power according to The (Nashville) Tennessean. Holler & Dash, a “fast-casual and fuel economy. biscuit house,” is slated to open this spring in Homewood, Ala., near The Cleveland plant opened in 1951 and currently Birmingham. employs more than 1,500 people.

16 MARCH 2016 LANEREPORT.COM • THE LANE REPORT

March Lane 1-22.indd 16 3/6/16 1:16 PM KENTUCKY INTELLIGENCER® A sampling of business and economic data

THE LANE REPORT • LANEREPORT.COM MARCH 2016 17

March Lane 1-22.indd 17 3/6/16 1:16 PM CORPORATE MOVES New leadership for Kentucky businesses

DEPARTURES ACCOUNTING Louis – vice president of strategy and ■ W.B. Rogers Beasley has announced ■ Flora Djojo has rejoined continuous improvement; Steve Bailey – that he will retire as Keeneland’s vice Dean Dorton Allen Ford PLLC senior director of franchise sales; and Tisha president of racing effective June 30. as director of tax services. Bartlett – director of field marketing. Djojo is based out of the ■ Scot Walters has retired as program company’s Lexington office. ■ Julie-Ann Reid has been manager of the Kentucky Heritage Council/ named director of brand State Historic Preservation Office. ARCHITECTURE Flora marketing for Louisville- ■ Kevin Locke has been Djojo based Long John Silver’s. promoted to shareholder and ■ Vera Hall has been named senior associate in the ■ Chris Jacobsen has been senior vice president and Lexington firm of promoted to chief marketing chief nursing executive for RossTarrant Architects. officer of Louisville-based Julie-Ann Edgewood-based St. Elizabeth Texas Roadhouse Inc. Reid Healthcare. ARTS ■ Todd Finley has been GOVERNMENT ■ Dr. Phillip K. Chang has named executive director of ■ Marc A. Guilfoil has been named executive been selected chief medical Vera the Kentucky Artisan Center Kevin director of the Kentucky Horse Racing officer for UK HealthCare. Hall at Berea. Finley succeeds Locke Commission. Victoria Faoro, who is INSURANCE retiring after 15 years as the ■ Tim Feeley has been appointed deputy ■ Justin Lash has been named assistant vice first director of the center. secretary of the Kentucky Cabinet for Health president, branch production leader for CNA and Family Services. Financial Corp. Lash is responsible for leading BANKING the company’s Kentucky branch. ■ John J. Deans has been ■ Greg Thomas has been appointed deputy promoted to chief credit officer secretary of the Kentucky Transportation LEGAL for Lexington-based Bank of Cabinet. ■ Michael P. Abate has been appointed chair the Bluegrass & Trust Co. John of Dinsmore & Shohl’s Appellate Group. Deans ■ Tim Hughes has been appointed deputy ■ Your Community Bank has executive director of the Kentucky Department ■ Douglas Barr has been elected managing named Ken Dozer as market of Agriculture’s Office of Agricultural Marketing partner of Stoll Keenon Ogden. Barr succeeds president for Hardin County. and Product Promotion. Bill Lear, who is continuing his law practice at SKO and assumes the title of chairman emeritus. ■ Laura Boison has joined ■ John Holiday has been appointed BB&T as senior vice president executive director of the Kentucky Office of ■ David Saffer has been named office and business services officer. Homeland Security. executive member for Stites & Harbison’s Boison is based in Lexington. Ken Louisville office. Saffer succeeds Marjorie ■ Dozer Stephen P. Miller has been named Farris, who has been elected to the firm’s ■ Michael Noftsger has commissioner of the Kentucky Department of management committee. been promoted to executive vice president of Medicaid. bank administration for Forcht Bank. ■ Jared A. Cox, James R. Irving, Alexis B. ■ Rodney Ballard has been appointed Kasacavage and William J. Kishman have COMMUNICATIONS commissioner of the Kentucky Department of been elected partners of Bingham ■ Katie McDaniel has joined Wiser Strategies Corrections. He succeeds LaDonna Greenebaum Doll. as marketing and public relations coordinator. Thompson, who retired effective March 1. MEDIA EDUCATION HEALTHCARE ■ Jeff Young has joined The Ohio River ■ Lars Willnat has joined ■ Dr. Stephanie Mayfield Network, a regional journalism collaboration, the University of Kentucky Gibson has been appointed as managing editor. The new three-state College of Communication vice president of population newsroom includes seven public media and Information as director health for the KentuckyOne stations in Kentucky, Ohio and West Virginia. of the School of Journalism Health system and chief and Telecommunications. medical officer for TECHNOLOGY Lars KentuckyOne Health Partners, Stephanie ■ NetGain Technologies has named Reggie ■ John R. Farris has been Willnat the Medicare-approved Mayfield Gresham president of sales for the Louisville named interim vice president accountable care organization Gibson market. for investments and chief financial officer at formed by KentuckyOne Centre College. Health. ■ Robert “Shannon” Morgan has joined Bowling Green-based Connected Nation ■ Larry Snyder has been named dean of the ■ Sherrie Mays has been Exchange as vice president of external affairs Potter College of Arts & Letters at Western named vice president and and general counsel. Kentucky University. chief nursing officer for Baptist Health Corbin. UTILITIES FOOD/SPIRITS/ ■ Gina Money has been named director of HOSPITALITY ■ Frank A. Pigula has joined Sherrie financial analysis and decision support for ■ Sean Muldoon has been the University of Louisville Mays Kentucky American Water’s central division. promoted to chief ingredient School of Medicine Justin Sensabaugh has been promoted to officer for Louisville-based Department of manager of operations-production. Papa John’s International Inc. Cardiovascular and Thoracic Surgery as chief of the ■ Greg Meiman has been named vice ■ Fazoli’s, a Lexington-based Sean Division of Pediatric Cardiac president of human resources for LG&E/KU. Surgery at Kosair Children’s fast-casual Italian restaurant Muldoon Meiman succeeds Paula Pottinger, who has chain, has announced the Hospital and co-director of retired. the Kosair Children’s following appointments: Donna Josephson Frank – chief marketing officer; – vice Hospital Heart Center. Tom Pleiman Pigula president of company operations; Scott Sir

18 MARCH 2016 LANEREPORT.COM • THE LANE REPORT

March Lane 1-22.indd 18 3/6/16 1:16 PM ON THE BOARDS Kentuckians named to organizational leadership roles

AVIATION MUSEUM OF KENTUCKY DINSMORE & SHOHL – Rob Samuels, Beam Suntory/Maker’s Mark; ■ William Andrews, Vince Helm and Kent ■ Barbara B. Edelman has Directors – Rick Robinson, Wild Turkey; Pau- Whitworth have been named to the board of been elected to the board of line Rooney, Diageo North America; Larry trustees of the Aviation Museum of Kentucky in directors of the law firm of Kass, Heaven Hill; Joseph Magliocco, Mich- Lexington. Those already serving as trustees Dinsmore & Shohl. Edelman ter’s Distillery; and Eric Gregory, Kentucky Dis- include: Ronnie Bastin, Lewis Bosworth, is a partner in the firm’s Lex- tillers’ Association. Gary Campbell, Rocky Fazzalaro, George ington office. LEXINGTON-FAYETTE URBAN Gumbert, Jerry Landreth, Gary Lowe, Mike Barbara , , , FEDERAL RESERVE COUNTY AIRPORT BOARD Malone Bill McKinney Betty Murphy Ed Edelman Murphy, Margie Riggs, Robert Riggs, Ali BANK OF CLEVELAND ■ Russ Hensley and Don Mosier have been Robinson, Marty Schadler, Ron Spriggs, ■ Tucker Ballinger, president and chief exec- named to the Lexington-Fayette Urban Doug Steele, Roger Storch and Gerry van utive officer of Lexington-based Forcht Bank, County Airport Board. Hensley is a council der Meer. has been appointed to the board of directors member with Lexington’s Urban County of the Federal Reserve Bank of Cleveland – Council and is CEO of Shatterbox, a multidis- BAPTIST HEALTH Cincinnati Branch. ciplinary design firm based in Lexington and ■ Brent Cooper, Terry Lester, Glenn Louisville. Mosier is chief operating officer Leveridge and Aaron Thompson have been FEDERAL RESERVE BANK and executive vice president of East Kentucky named to the board of directors of Louisville- OF ST. LOUIS Power Cooperative Inc. based Baptist Health. Cooper is president of ■ Ben Reno-Weber has been named to the C-Forward Information in Covington. Lester board of directors of the Federal Reserve Bank LEXINGTON-FAYETTE recently retired as pastor of First Baptist of St. Louis – Louisville Branch. Reno-Weber is URBAN COUNTY Church in London. Leveridge is market presi- CEO of the Kentucky YMCA Youth Association HUMAN RIGHTS COMMISSION dent for Central Bank in Winchester. Thomp- in Frankfort and project director of the Greater ■ The following individuals have been elected son is executive vice president and chief Louisville Project. Also serving on the board are: as officers of the Lexington-Fayette Urban academic officer for the Kentucky Council on Malcolm Bryant, Owensboro; David P. County Human Rights Commission: Chair – Postsecondary Education. Heintzman, Louisville; Alice K. Houston, Lou- Letonia Jones; Vice Chair – Bob Orbach; isville; Mary K. Moseley, Louisville; and Randy Secretary – Theresa Parks; and Treasurer – BAPTIST HEALTH FOUNDATION Schumaker, Russellville. Michael Ades. LEXINGTON ■ Baptist Health Foundation Lexington has FOUNDATION FOR NCAA HONORS COMMITTEE announced its 2016 board of directors: Chair A HEALTHY KENTUCKY ■ Eastern Kentucky Univer- – Betty Simms, Baptist Health Lexington; ■ Carlos Marin and Vivian Lasley-Bibbs sity President Michael Ben- Vice Chair – Geneva Donaldson, community have been appointed to the board of directors son has been elected chair of volunteer; Treasurer – John Franke, Baptist of Foundation for a Healthy Kentucky. Marin, the nine-person NCAA Health; Secretary Lindsey Dablow, Baptist of Lexington, is the program director for the (National Collegiate Athletics Health Foundation Lexington; Board mem- University of Kentucky Area Health Education Association) Honors Commit- bers – Cyndi Allen, Realtor; Dave Baker, Centers. Lasley-Bibbs, also of Lexington, is act- tee, a committee that reviews nominations and selects WKYT; C. Joseph Beavin, Stoll Keenon ing branch manager and epidemiologist for Michael recipients for five categories Ogden PLLC; Sue Brandstetter, Baptist the Kentucky Department of Public Health Benson Health Lexington Auxiliary; Jeff Fraley, Office of Health Equity. Matt Minier, Melissa of NCAA awards. United States Achievement Academy and Slone, Michael Keck and Randy Gooch SouthEast Printing and Mailing Service; Doug have been named as new members of the orga- NORTHERN KENTUCKY UNIVERSITY Hacker, Congleton-Hacker Co.; Marta S. nization’s community advisory committee, one RESEARCH FOUNDATION Hayne, Baptist Health Lexington; Terri A. of the foundation’s two guiding bodies. ■ Six new members have been named to the Jones, Central Bank & Trust Co.; Kathy board of the Northern Kentucky University Kioussopoulos, Baptist Health Lexington; KENTUCKY BANK Research Foundation Inc.: William R. Allen, James E. Miller, Transylvania University; ■ Wes Omohundro has Thompson Hine LLP; Rodney D’Souza, Patricia Mohrhusen, community volunteer; been named to the board of Northern Kentucky University; Michael Preston P. Nunnelley; Donald Secrest, Bap- directors of both Kentucky Hales, Northern Kentucky University; Dov tist Health Lexington; John P. Shasky, Fifth Bank and Kentucky Banc- Rosenberg, Allos Ventures; Jordan Vogel, Third Bank; William G. Sisson, Baptist shares Inc. Omohundro, of Cintrifuse; and Larry D. Williams, Wood Her- Health Lexington, and Patricia E. Takacs, Lexington, is controller for ron & Evans LLP. Beaumont Family Dentistry. The Allen Co. Inc. Wes Omohundro SEWANEE: BEREA COLLEGE KENTUCKY CENTER THE UNIVERSITY ■ Nana Lampton has been FOR AFRICAN-AMERICAN HERITAGE OF THE SOUTH elected to the Berea College ■ Alicestyne Turley has been appointed to ■ Buck Hinkle Jr. has been board of trustees. Lampton is the governing board of the Kentucky Center elected to the board of chairman and chief executive for African-American Heritage in Louisville. regents of Sewanee: The Uni- officer of American Life and Turley, director of Berea College’s Carter G. versity of the South. Hinkle, Accident Insurance Co. of Woodson Center and assistant professor of who earned his bachelor’s Buck Kentucky. Nana African and African-American studies, has also degree from Sewanee, is an Hinkle Lampton been appointed to the executive board of the attorney in the Lexington CENTRE COLLEGE Association for the Study of African American office of Stites & Harbison PLLC. ■ Jess Corell, Tao Le and Brian Mefford Life and History in Washington, D.C. have been elected to serve on the board of UNIVERSITY OF LOUISVILLE trustees for Centre College. Corell, of Stan- KENTUCKY ■ William E. Summers IV has been ford, is the founder of First Southern Bancorp DISTILLERS appointed to the board of trustees of the Uni- Inc. Le is an allergist with Central Allergy and ASSOCIATION versity of Louisville. Summers, who is retired, Asthma in Elizabethtown. Mefford, of Alvaton, ■ The Kentucky Distillers Asso- most recently served as deputy mayor and is the founder, CEO and chair of Bowling ciation has announced its chief administrative officer for Louisville Green-based Connected Nation Exchange. board of directors for 2016: Metro Government from 2003-2012. Chair – Chris Morris, Brown- Forman; Vice Chairman – Chris John Rhea, Four Roses Distillery; Secretary-Treasurer Morris

THE LANE REPORT • LANEREPORT.COM MARCH 2016 19

March Lane 1-22.indd 19 3/6/16 1:16 PM LANE ONE-ON-ONE Kentucky’s leaders express their opinions

Why? Because they can invest at the Lynn Allen minimum, $500,000 amount and still Lynn Allen, president and CEO of Blue- create 10 jobs and get their green card. grass International Fund, has devoted her They’re making the investment to secure career to raising capital to create jobs and expand educational opportunities in the a green card for themselves, their spouse United States and overseas. In 2003, she and their children and not to get a return formed Capital Innovations, a strategic necessarily. Their primary concern is, advisory firm that works with public/private “How many jobs am I going to create?” stakeholders to raise capital for private In an overseas conference center, often equity funds that invest in high-growth- the first question you’ll get from potential companies. Prior to that, Allen prospective investors is, “How did you was director of institutional marketing at AEGON USA and director of international calculate your job projections?” That’s corporate initiatives for CARE USA. A because if they don’t create the 10 new native of Vine Grove, Ky., Allen is a board jobs, they don’t get the green card. Their member of the Kentucky Association of second priority is security: They want to Economic Development, Purdue Universi- make sure they’re going to get their ty’s Emerging Innovations Fund and the money, their principal, returned in five to Building Committee of the EB-5 industry’s seven years. Their third concern is the national association, IIUSA. Allen holds a Master in International Management from return on their money, and they’re not Denver University and a Bachelor of Sci- looking at that as a priority; we loan their ence from the University of Kentucky. investment to project sponsors and developers at a competitive rate.

MG: What is the significance of BiF BRINGING THE FOREIGN INVESTOR being a certified EB-5 Regional Center? CLASS, AND CAPITAL, TO KENTUCKY LA: A regional center may pool a large number of investor commitments into a EB-5 program can create jobs, finance development and market state fund and loan to large-scale economic development projects, thereby creating globally, says Bluegrass International Fund CEO Lynn Allen a large number of jobs. After the EB-5 program was established in 1990, BY MARK GREEN Congress authorized regional centers in 1992. Before that, the investor had to invest directly in a project; they had to Mark Green: Bluegrass International ers, taxable or tax-exempt bonds, private be part of the management of the Fund, founded in late 2013, invests in equity, finance the rest. commercial enterprise, monitor the job economic development projects on behalf When the EB-5 program exploded in creation themselves. A regional center of overseas investors who seek permanent 2008-2009, when bank credit got tight, a can do all that for the investor. green-card status under the Department of lot of EB-5 capital took senior positions The program hummed along, Homeland Security’s EB-5 Regional Center at that time, because the banks were out essentially, until 2007-2008, and at that Program. Investors must put a minimum of the market. But today where you time it exploded in growth. When I first $1 million into a project creating at least 10 usually find EB-5 capital is in the started consulting to the EB-5 market, jobs, or $500,000 if the project is in a rural subordinate position. We’re usually before we founded Bluegrass, there area or an area where the unemployment coming in in lieu of private equity or in were about 150 regional centers across rate is designated at least 150 percent of lieu of mezzanine capital or behind a the United States. Most were the U.S. average. What portion of BiF’s tax-exempt or taxable bond issue. concentrated on the East and West participants are EB-5 investors? Coasts. Today there are nearly 700 Lynn Allen: 100 percent. All of the MG: How much loan participation does regional centers across the country. investments that we attract to economic BiF have currently, and what is the total We operate a lot like a private equity development projects in Kentucky under value of those projects? fund. We manage the investment, report the EB-5 Regional Center Program have LA: We have a very robust pipeline, but we back to the investors, monitor the job to come from foreign investors. are just getting ready to go to market with creation, do all the due diligence. The our first project in a targeted employment difference is, instead of raising the money MG: No local participants are investing area. The total value of the project is about per an investment strategy, we source money into these projects? What about $38 million, and our loan participation projects that we think will appeal to BiF’s executives or or administrators? will be just about $10 million. That’s the investors, and then we go raise the money LA: Well, let’s look at that two ways. First, minimum size loan that we do. overseas. We go market the project there’s a group of individuals from overseas. It’s a lot like a private equity Louisville and Lexington, business MG: How does BiF fund and assess fund, except we market the projects leaders from both communities, who projects to bring to EB-5 investors? individually and we raise money for the founded the Bluegrass International LA: We look at two things. One is the projects individually. Fund. We are investors in launching and purpose of the program, and the second operating the overall fund. But when BiF thing is what the investors want. Those MG: What is BiF’s geographic area of finances a project, when our foreign two considerations align. So first we want operation? investors invest, they only make up 25-30 to invest in targeted employment areas. LA: In applying for U.S. Citizenship and percent of the capital stack of that proj- That’s because 98.8 percent of investors Immigration Services (USCIS) authoriza- ect. Other sources, including senior lend- invest in targeted employment areas. tion to operate as a regional center, you

20 MARCH 2016 LANEREPORT.COM • THE LANE REPORT

March Lane 1-22.indd 20 3/6/16 1:16 PM apply for certain geography. Our geogra- now. However, who would not want to closing that we have money available even phy aligns with the 22 counties of the bet on the United States? If you were a though we may still be raising money for Bluegrass Economic Advancement Move- wealthy Chinese or a wealthy Mexican the project, we leverage a bridge lender. ment (BEAM): Jefferson, Fayette, all the and you were concerned about local The bridge loan comes in lieu of our loan counties around Jefferson and Fayette; it politics, why wouldn’t you want to bet at closing, and when all of our investors follows the I-64 corridor and then jumps on the United States? Right now, the are approved, then the bridge lender is over the Ohio River to Floyd and Clark in demand in China for EB-5 visas exceeds paid off. There are a lot of regional Indiana. We’re really committed to Ken- the supply, and that’s a challenge our centers, and there’s an established set of tucky and Southern Indiana. Having said federal legislature will have to deal with. bridge lenders – in places like New York that, we will expand our territory through- and so forth – that EB-5 regional centers out Kentucky when projects are identified. MG: The EB-5 program has a cap of use. They’re expensive. For a best-effort For example, if there was a project at Bowl- 10,000 annually, but the demand approach to fundraising, we piggybacked ing Green or Northern Kentucky, if that exceeds that? onto Cleveland (Ohio) International expansion is project-driven, the USCIS will LA: Yes. Fund, and a track record that shows generally approve. they’ve always raised all their money all the We have every intention of working MG: Is this demand primarily from China? time and all their investors have been hand-in-hand with the folks that represent LA: Yes. About 85 percent of investors approved. Still, a lot of bridge lenders are BEAM. This is just one piece of that come from China, Taiwan and South hesitant. We have brought in a local puzzle, to generate increased investment Korea. Brazil and Mexico are also bridge lender because when we founded from overseas in Kentucky, but it’s an producers of EB-5 capital. Bluegrass International Fund, we made a important piece. Not only are we creating commitment that not only were we going a significant number of new full-time jobs, MG: What is a typical timeframe for an to invest in large, job-generating projects we’re also attracting talented and value- EB-5 project and investment? You but we were going to cycle our capital and added investments into the regions. It’s mentioned that investors hope to get their our opportunities back into the Kentucky really a win-win for our region and for the principal back within five or six years. economy. One of the first significant ways foreign investor. LA: The investment is at risk for the we’ve done that is working with a local investor. It’s an equity investment. The syndicate to secure bridge lending for our MG: How is the participation of out-of- program requires that it be an at-risk projects, which is big, because it’s putting state, or in this case foreign investors, investment, so you cannot guarantee a money back into the economy. Bridge important to Kentucky’s business return of the investment and you cannot financing that might just last a year or a community? guarantee a return on the investment. We year and a half, lowers the overall costs. LA: It’s extremely important in that to pool those investments into a fund and But by sourcing this local bridge lender, be a city or an area that competes loan it to the project sponsor or the we’re pumping that capital back into the globally today to a large extent depends developer. When we loan it to them, they local economy. on whether you can attract outside pay us interest only for five to six or seven investment, whether that’s domestic or years. The reason that loan term is at least MG: How did the partnership between international. We play a critical role in five years is, that’s generally how long it BiF and Cleveland International Fund attracting foreign direct investment into takes, from start to finish, to process the come about? What are the key aspects Kentucky. Through that, we develop investors and have them screened by the of this partnership? relationships with foreign nationals who Department of Homeland Security, to LA: When Mike Mountjoy and Barrett are the creative class of their countries. illustrate that permanent jobs have been Nichols came to me and said they They’re wealthy; they have built their created, and then to secure the permanent wanted to do this, I had had experience own businesses. Their primary reason green card. The investor doesn’t receive in EB-5 regional centers; not a lot, but for obtaining a green card, the No. 1 the permanent green card until they’ve enough to know it was going to be a big reason cited by these investors, is they illustrated that they’ve created at least 10 challenge for Kentucky and Southern want to send their children to U.S. new full-time, permanent jobs that lasted Indiana to market themselves among all universities. These children are very cre- at least two years. the regional centers that already had a ative and ambitious, too. So it’s good in brand-name, already had access to the the short term to attract foreign invest- MG: Do EB-5 investors participate in best immigration attorneys, the best ment to Kentucky, but it’s also good in specific projects, rather than investing economists – many of whom were not the long term because it diversifies our in BiF in general? taking any new clients because of this population and includes many well-edu- LA: That’s exactly right. They are a explosive growth. We also wanted to cated foreign nationals. limited partner. We have this loan fund; make sure we were going to do things they’re the limited partners, and we’re right. Out of 700 regional centers, MG: So there’s anticipation that this the managing partner. about 15 percent have been very suc- would create ongoing, long-lasting cessful, have deployed millions of dol- relationships locally with this foreign MG: Who performs and certifies the lars in their local economies. We wanted investor business class? compliance? Is that something BiF does to make sure we were one of those. LA: Yes. In the BEAM report that just or the federal government? On the local front, we recruited a came out, the Brookings Institution LA: With each project we file an group of individuals from Louisville and talks about how important these foreign application for approval with USCIS. Lexington who each had expertise and investors are if you want to become a Once participants make their investment, had networks and relationships that would global city, if you want to attract foreign it sits in escrow until USCIS screens them be important. One piece of EB-5, to be investment. Cities that are growing the – the money cannot have been loaned to successful, is having access to quality most are cities that can attract foreign them; it cannot be terrorist money. It takes projects locally. The other piece that’s interests. A lot of growth and wealth is USCIS from six months to a year or more really important is to have access to the happening in other parts of the world to screen investors. To make sure at overseas broker networks, to be able to sell

THE LANE REPORT • LANEREPORT.COM MARCH 2016 21

March Lane 1-22.indd 21 3/6/16 1:16 PM LANE ONE-ON-ONE

BiF Board of Directors your product to them. These broker MG: Will EB-5 investors in BiF projects • Bradford L. Cowgill, president of Pixar networks, this infrastructure in China become residents of Kentucky when Financial Services and of SmartClaim, former state budget director where most of the money comes from, is they get a green card? • Steven R. Graves, owner/principal of very sophisticated – think of maybe the LA: Even though they invest in a Ken- Graves Architects & Planners and of Hilliard Lyons of Shanghai. They have tucky project, they can live anywhere in Murphy + Graves + Trimble relationships with wealthy people; they the United States. Having said that, • J. Robert Owens, president of help them immigrate through the pro- sometimes the investors will come over Programs Division of Risk Placement cess. And they are the ones who sell your and want to see the project themselves, Services, a subsidiary of Arthur J. product, your project. Many regional cen- or they’ll develop an interest in the area Galagher & Co. wholesale insurance broker, president of Kentucky Premium ters already had an established track in which they’ve invested. So there is Finance Association record with them. If we were going to start this ancillary or secondary benefit of • W. Barrett Nichols, founder BSG fresh, we knew we needed to plug into one attracting interest in our region and Financial Group of those quality regional centers, such as securing further investment after their • Lynn Allen, founder of Capitol Cleveland International Fund, piggyback green card. If they’re pleased with their Innovations, Kentucky Association of on their track record – which investment through the regional center Economic Development board member, demonstrates that 100 percent of their program, there’s always good opportu- former director of Institutional Marketing at AEGON USA investors have been approved and they’ve nity to attract additional investment • Franklin Farris, Louisville office raised $250 million in the Cleveland from them. managing partner of KPMG economy alone – and be able to access international CPA firm their broker networks overseas. MG: Would projects such as the foreign • Rongxiu Wu, education PhD candidate owned auto-supplier developments in and vice president of the University of MG: Did you have an existing relationship Kentucky the past few years be Kentucky Global Education Association, with some of the individuals with the candidates for BiF financing? former student union president at Shanghai University Cleveland International Fund? You were LA: Absolutely. One of the segments in • Bradford T. Ray, owner of BTR able to talk with them, and they agreed to which we’re focused is manufacturing. We Advisory Services, board member of provide expertise? have four primary market segments in ISCO Manufacturing, Global Brass & LA: Yes. I had worked with a couple of which we’re investing. The first is Copper, Porter Bankcorp Inc. and regional centers, and I learned pretty healthcare: hospitals, large clinics, senior Liberty Steel Co., former CEO of Steel quickly the ones that were doing things living facilities. The second segment is Technologies Inc. right and the ones that were doing things university research and education: That • Michael Mountjoy, founder and chairman of Mountjoy Chilton Medley wrong. I wanted to make sure that if I was includes technology centers, healthcare • Michael J. Grisanti, entrepreneur and going to stay in this industry, I was working facilities on campus, campus development private investor in the restaurant, medical with folks who did things right. generally. The third is advanced device, energy and digital sectors manufacturing. And the fourth one is • Vincent J. Tyra, president of ISCO MG: How formally established is the mixed-use development. Industries, operating partner at Southfield referral network by which foreign There is sweeping legislation in Capital Advisors, director of BioPharm investors find out about EB-5 projects Congress right now – we were working Communications, Industrial Services of American and Al J. Schneider Co. to participate in? with our leadership in the Senate and in LA: It’s different in each country. China Congress – to add three new categories produces a lot of investors because of the for the $500,000 minimum EB-5 coal country, for example. We had dis- enormous wealth, because of the political investment. Right now it’s a “targeted cussions with the prior administration, situation, but also because they have a employment area” that has an and expect to have discussions with the built-in infrastructure of these broker net- unemployment rate of 150 percent of the new administration soon. works that are approved by their govern- national average. This legislation says the ment to do this. But if you go to Central or investor could invest in any MG: Are there other important issues South America, many of the investors are manufacturing facility anywhere. Not only for foreign nationals looking to referred by immigration attorneys. It varies in that, but also in public infrastructure – participate in an EB-5 program? by country how the investors are recruited roads, bridges, that sort of thing. And the LA: I didn’t fully answer earlier, and I’d or secured. The market is still changing, third one is closed military bases. like to. First they look for security. The but for now China is the only one that has second thing is, they want to know that a very well-heeled or well-greased infra- MG: Does BiF have any such new the project has community support. structure. A lot of investors come from the category projects on its radar? They like to see either federal, state or United Kingdom; Vietnam is increasingly a LA: We’re also enthusiastically inter- local participation. That can be in the producer of EB-5 investors, but a lot of ested in financing projects in rural Ken- form of a historic tax credit or a new those come through immigration attor- tucky. Vermont has leveraged EB-5 to market tax credit or a local loan fund or neys and family offices. create significant jobs in rural areas by a TIF district. When they see that, they We’ve leveraged the Cleveland building year-round ski and golf resorts know the community supports the International Fund’s networks. We dis- – and an airport to shuttle people to project. Third, they want to see tribute our projects through their dis- and from the resorts. Kentucky has experience – developer experience – tribution networks, through their beautiful state parks but is losing a lot of and they want to see that the developer broker networks. Having said that, we money on them every year. We could has some skin in the game. And finally, also have our own relationships that we play a role in turning some of those they want to make sure there are plenty leverage to sell our product, and we parks around, working with private of jobs. We build in a cushion of intend to build on those networks that developers, working with the common- between 13 and 15 jobs, generally, just we currently use with Cleveland to wealth to privatize those parks, and fol- to overcompensate and raise their com- expand out to other networks through low in the footsteps of Vermont to fort level that they’re going to create at our own relationships. generate new jobs that have been lost in least the 10 jobs. ■

22 MARCH 2016 LANEREPORT.COM • THE LANE REPORT

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March Lane 23-52.indd 23 3/6/16 2:28 PM COVER STORY Turning Rupp Arena from a Dream to a Landmark Jim Host, center, addresses and Lexington Center board meeting in the early 1970s as they discuss a preliminary design for Rupp Arena and the Lexington Convention Center complex.

“The Lexington Center has been a true workhorse for our community and a mainstay of our tourism industry since its inception,” said Mary Quinn Ramer, president of VisitLex. “Through conventions, athletics, concerts and more, the Lexington Center has contributed significantly to the positive growth of our visitor economy.” An October 2015 report on an analysis by Convention Sports & Lei- sure, a leading convention financial consultant, measured the annual economic impact from only conventions at $42 mil- Mary Quinn lion, said Bill Owen, pres- Ramer, ident and CEO of President, Lexington Center Corp. VisitLex “I would think the economic activity from Rupp Arena, while not measured in the study, is a similar number – maybe not quite as high – so combined I ‘Gamechanger, The Lexington Center Story’ captures the strug- would think $75 million Bill Owen, annually is a good num- President/ gle and passion behind bringing an economic engine to life ber,” Owen said. CEO, Rupp accounts for Lexington 850,000 of the 1.2 million Center Corp. BY ESTHER ZUNKER annual attendance for all events at all of Lexington Center’s facilities, he said. UPP Arena has long been people attend entertainment, civic, busi- The undertaking to bring it into exis- an iconic facility, revered ness and community events. tence truly was a “gamechanger.” across the commonwealth To commemorate the 40th anniver- “Navigating the turbulent waters of and a fixture on many U.S. sary of Rupp Arena and Lexington urban change in the 1960s and ’70s, a sports enthusiasts’ bucket Center opening their doors in Novem- group of civic-minded individuals pur- Rlist – as well as an economic linchpin of ber 1976, a documentary titled sued their dreams and, in the process, Lexington and Central Kentucky today. “Gamechanger, The Lexington Center created a beacon of culture and an eco- For years in the early 1970s, however, it Story” was created to tell the fascinat- nomic engine in what was then a dying existed only in the dreams of a clutch of ing story of how the project came to city core,” the familiar voice of the nar- passionate local instigators. fruition. And yes, it includes the rator, University of Kentucky Wildcats Because they wouldn’t give up – almost-obligatory scrawling out of the broadcaster Ralph Hacker, intones as though doubted by many and facing plans on cocktail napkins over dinner the documentary opens. numerous obstacles – Lexington now has with the project’s future developer. Airing multiple times in December and not only a basketball palace but a conven- But it is no exaggeration four January on KET, the one-hour program by tion center and a historic performance decades later to call Rupp Arena and award-winning filmmaker Arthur Rouse site, the Lexington Opera House, that Lexington Convention Center the heart captures recollections of the 16 individuals together generate about $75 million in of a vibrant downtown scene, as well as a instrumental in the creation and develop- annual economic impact as 1.2 million major economic engine for the city. ment of Lexington Center, Rupp Arena

24 MARCH 2016 LANEREPORT.COM • THE LANE REPORT

March Lane 23-52.indd 24 3/6/16 2:28 PM Local students were invited to participate in the groundbreaking for Rupp Arena and Lexington Convention Center on June 21, 1974.

and the revival of a crumbling Lexington Opera House then facing demolition. More than a retelling of history, it is a tribute to the dedication and tenacity of the men and women who conceived, designed, opened and operated those landmark facilities.

Early momentum Before Rupp Arena existed, the UK men’s However, a group of diverse done. I wouldn’t take anything for basketball team had played their games individuals – later dubbed “The Alley- being involved. It was when we were put since 1950 at Memorial Coliseum. Located cats” – with a collective passion for Ken- together (that we made a difference).” on the Avenue of Champions near the tucky basketball began discussing the A small but tenacious group, the university, the 10,000-seat facility was far possibility and feasibility of a new, large Alleycats worked tirelessly to collect too small to host near the number of fans arena in downtown Lexington. information to support their ideas, and who wished to attend UK games. “I had a passion for the project and then presented their proposal to UK’s “The situation with tickets got so bad the community itself,” said DeWitt then-President Otis Singletary. that they didn’t even have a waiting list Hisle, one of the original Alleycats and a “It was a very difficult, tumultuous because it would have been so long,” Lexington Center board member for meeting (with Dr. Singletary),” said Jim said Joe B. Hall, UK’s men’s head more than 20 years. “It was fantastic – Host, who would serve as the first execu- basketball coach from 1972-1985. “The the amount of people devoted to the tive director of the Lexington Center university just gave up.” cause and the time they put in to get it Corp. board, which was formed in 1972. “It almost came to an end a couple of times … but we ended up developing a plan out of that meeting that worked. “Dr. Singletary made it clear to me that he would not ever agree to an arena being built or UK playing in it unless we were able to guarantee him the same amount of money that was coming in from the basketball team playing at Memorial Coliseum. At that point, he never believed we would ever fill it, and he never believed that fans would support it at a (downtown) location.”

The Lexington Opera House interior had to be completely rebuilt when it was saved from final demolition.

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THE LANE REPORT • LANEREPORT.COM MARCH 2016 25

March Lane 23-52.indd 25 3/6/16 2:28 PM COVER STORY

After providing Singletary with a guarantee, the newly formed Lexington Cen- ter Corp. board mapped out the details of the project. They would strive to build a complex with a mix of public and private funds – the first major public complex in the nation to combine such financing. And it wouldn’t just be a sports arena, but also a complete entertainment and convention facility. The board faced another major hur- dle when trying to find a developer/ architect team that would agree to take on the project on a design/build/invest Paul Hooper/Rupp Arena photo Paul Hooper/Rupp basis to ensure proper funding was available. The first two major building firms as people picketing then-Mayor Foster Pet- Rupp Arena and Lexington Center today, viewed that presented proposals wouldn’t agree tit’s home. Once people were offered full from High Street. to such an arrangement and said the value for their homes, however, the uproar project should be completed on a tradi- eventually died down. tional architectural fee basis. Host, who was worried the third firm Lexington Opera House restoration would have the same stipulations, It was not part of the original plan, but the back memories of the theater in my approached the group before they pre- restoration of the Lexington Opera House hometown where I had sung that got sented their proposal. was added to the massive downtown initia- torn down,” Carey said. “I said, ‘We just had two great pre- tive, largely due to the effort of Linda Helping restore the Opera House sentations, and we’re looking forward to Carey, one of the Lexington Center became a way for Carey to relive the yours, but you must really sharpen your Corp.’s original board members. wonderful memories of her past in pencils and make a knockout presenta- A former singer/actress from Paducah, Paducah while providing a better arts tion,’” Host remembered with a Ky., Carey had a passion for the arts and and culture scene for future chuckle. was first turned on to the Opera House generations. Chicago architect Oscar The architect/general contractor when she saw a notice in the newspaper Cobb designed the extensive Opera team, Ellerbe Becket and Huber, Hunt that the building had been condemned by House renovations, which included & Nichols, did just that, providing a the city’s fire marshal. Built in 1886 on the removing a false ceiling, reopening its guarantee of the construction costs and corner of Main and Broadway, the Opera two balconies and restoring theater revenue flow and including hotel onsite. House had hosted live performances until boxes. The stage was rebuilt and “It turned out being a better pro- the early 1920s, when it fell on hard eco- updated to house modern equipment. posal than we thought we would get and nomic times and was converted into a Rededicated in 1976, the year Rupp was literally a dream come true for all of movie theater. Nearly 50 years later, the Arena and Lexington Center opened, us that had worked so hard on it,” Host building was in disrepair and considered the restored theater has less than 1,000 said. “They didn’t know the first two an eyesore to the city. seats, but it hosts 85,000 patrons annually firms didn’t give us an offer at all.” “It became an exciting project, and is one of the smallest theaters in the The next major challenge of the proj- because we found that we could buy country to host touring Broadway shows. ect was acquiring the acres of land needed the Opera House with the city’s help Its 19th-century atmosphere creates a for parking on East High Street. The board for less money than (the cost of an unique aesthetic and remains a premier set out to purchase adjacent residential additional) room in the Lexington cultural and historical destination in properties to create an adequate parking Center,” Carey said. downtown Lexington. lot, but they were soon faced with consider- The city purchased the Opera House “(The reconstruction of the Opera able opposition from local residents. The on behalf of the Lexington Center Corp. House) was a very emotional thing for situation became a public debate and led Carey, her husband George Carey III and me,” Carey said. “When we re-opened to various lawsuits against the board, as well philanthropist William T. Young founded it, there was a lump in my throat the the Opera House Fund Inc. in 1974 to whole week. channel financial assistance toward its “I took my daughter to the first show I potential restoration. Carey helped thought she would enjoy, and at lunch launched private campaigns to educate beforehand I started crying and she asked the public as well as community political me why. I said, ‘This is just so special.’ ” and financial leaders about the historic Carey remains on the board of the structure’s interesting heritage. Opera House Fund, today a nonprofit A decisive moment came in 1973 when dedicated to assisting Lexington Center’s high winds demolished the roof of the support of the Opera House. The fund existing building. As a result, building financially backstops the presentation of inspectors determined the building was professional tours booked for the essentially sound, and urban planners Broadway Live and Variety Live series and found it would be cheaper to renovate the subsidizes local performing arts groups. It structure ($2.5 million) than build a new has provided more than $11 million in one ($7 million). funds for local arts. “I became very passionate about it “When I go to the Opera House now An interior photo of Rupp Arena after its opening because when I saw the arches and for a show, it’s very special to hear people in 1976. plaster that was restored, it brought around me say, ‘Wow, isn’t this beautiful?’

26 MARCH 2016 LANEREPORT.COM • THE LANE REPORT

March Lane 23-52.indd 26 3/6/16 2:29 PM Or, ‘When was this built?’ ” Carey said. “It’s Good things can happen when you get very satisfying because my husband was great volunteer citizens involved who also involved, and he passed away in 1996. are there not for their own good, but He was a tall man and liked to sit up in a for the public good.” box, while I liked to sit in the first balcony. Added Hisle: “It’s still an economic Every time I go, I look up there and it’s engine for not just downtown, but for like he’s still there.” Central Kentucky. I think that will continue. (The building of Rupp/ The finished products Lexington Center) turned downtown When disaster Construction of the huge downtown arena from what it was into what it is today. We was completed in 1976, and the facility had to have the funds and the will to do strikes, will your hosted its first performer, Lawrence Welk, it…it was accomplished because of the before a crowd of 20,000. Built primarily outstanding people working on it and to be the new home for UK basketball, the supporting it.” critical data survive? arena was named for the program’s retired coach Adolph Rupp, whose reign from Present and future improvements 1930 to 1972 created the demand that Owen, Lexington Center president/ launched the project. The arena that CEO the past 16 years, has seen the What sets us apart? eventually came to pass is part of a larger facilities go through several changes Well for one thing, we mixed-use development that includes the and improvements. Most recently, Rupp 70,000-s.f. Lexington Convention Center, Arena completed the first phase of a are 130 feet underground, a three-level shopping mall, the 350-room $15 million technology upgrade that Hyatt Regency Hotel and, a block away, includes new LED ribbon advertising where we secure your data the Opera House. boards encircling the lower seating level and LED screens to replace four static in a vault with 10-inch thick, corner screens. Other improvements at poured concrete walls Rupp Arena in coming years will include a new center-hung scoreboard, and ceiling. improved wireless Internet for fans, and stronger roofing infrastructure so the arena can attract more concerts and major events. “When Rupp was first built, We offer: performances usually consisted of just one entertainer with a guitar,” Owen • Multi-layer security with said. “But now you’ve sometimes got 170,000 pounds of production motion sensors and surveillance equipment hanging from the ceiling cameras (for a particular performer). That’s a lot of the technology we’re upgrading • Fully redundant HVAC system right now. Being able to keep Rupp Troubadour Series music performances at the relevant with the dramatically changing • Fire Suppression FE25 Lexington Opera House are among its regular requirements of the sports industry events today. and concert and entertainment • Battery and diesel generator industry has been a challenge, but it’s backup also been very fulfilling.” Owen explained how the Opera • Built-in facility-wide surge With 23,500 seats, Rupp Arena is the House underwent a significant lobby largest facility in the country specifically renovation in 2001, as well as a stage- suppression built for basketball and ranks second for house renovation that improved the • High-speed redundant internet top average annual attendance. This is the ability for artists, actors and other final year of use for its specially designed, performers to use the facility effectively. access 12,000-pound sound system, “Big Bertha,” Also, just a few years ago, with the help which will be replaced by a multimillion- of Triangle Foundation, the Lexington • Shared or independent dollar, high-tech video display. Center Corp. rebuilt Triangle Park. rack space Over the years, Rupp has hosted “During my 16 years, the way we’ve hundreds of major music entertainers been able to address the aging facilities • Shared or independent cages plus circuses, tractor pulls, Monster and make it continue to support Jams and hockey games. activities and the community has been a for your rack(s) “The collaboration and the goodwill real privilege to be involved with,” that exists between UK and the commu- Owen said. nity really started as a result of the build- Note: The documentary “Gamechanger: ing of Rupp Arena and Lexington The Lexington Center Story” is available for Center, and I think that still exists purchase ($10) at the Lexington Center today,” Host said. “There never was and (859) 233-4567. ■ www.kentuckyunderground.com never will be again a board that was as strong or worked harder on behalf of Esther Zunker is a correspondent for The Lane Report. [email protected] the community with no pay or expenses. She can be reached at [email protected]. (859) 858-4988

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said Bob White, executive director of the Kentucky Assisted Living Facilities Association. “It depends on the age of it, and the pricing.” ‘Like a Cruise Kentucky has not generally been considered one of the major markets for senior living facility construction. The biggest markets for the estimated $350 billion-plus industry are Texas, Ship on Land’ the Southwest, the Northwest, North- eastern cities like Boston and Philadel- phia, and Chicago. Kentucky’s senior living communities are But the commonwealth’s demographic trends are undeniable. expanding and getting nicer – but pricier Between 2000 and 2010, the median age of Kentuckians increased from 35.9 to 38.1, and the number of people over BY CHRIS CLAIR age 80 – the average age at which seniors move into senior living facilities – increased by more than 20,000 to HE nation’s 76 million Baby ships, incorporating bars, sit-down res- 147,521, according to figures from the Boomers and their aging taurants, classrooms, movie theaters, Kentucky State Data Center at the Uni- parents are changing the commercial teaching kitchens, music versity of Louisville. In the past five face of the senior care rooms, indoor-outdoor spaces with fire years, the over-80 population in Ken- industry in Kentucky and pits and lots of seating and gardens tucky was projected to have increased Tacross the country, particularly when it with walking paths. The only limit to by another 12,000. comes to senior living communities. what you can get is what you can pay. By 2025, about when the first Baby They are demanding more units, more The new communities being devel- Boomers will become octogenarians, amenities and more community. oped today reflect the demands of a the over-80 population in Kentucky is The dozens of new developments growing market of active seniors who projected to be nearly 200,000, an set to come on line in the coming years aren’t interested in giving up their increase of 33 percent. By 2045, when in the Bluegrass State won’t be your homes to move somewhere just to grow most boomers will be over 80, Ken- grandparents’ old-folks home. The old. tucky’s 80-plus population is projected senior living communities being built Some of the fanciest new facilities to be more than 339,000 and its median today are more like hotels or cruise “are kind of like a cruise ship on land,” age will be over 40.

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March Lane 23-52.indd 28 3/6/16 2:29 PM Facility numbers rising steadily year growth rate was Home health expanding also There is evidence in Kentucky of senior nearly 8,200 units, or Increasingly, they don’t have to. The living development ramping up to about 4 percent; 15 per- senior home healthcare industry is meet demand. According to the cent over five years and expanding along with the aging popula- Department for Aging and Indepen- 26 percent over 10 years. tion just like the number of senior living dent Living, which is part of the Cabi- Mace said NIC didn’t developments. Importantly, Medicare net for Health and Family Services and have figures going back covers in-home healthcare for seniors, Beth Burnham which certifies assisted living facilities 10 years for Louisville. Mace, Chief provided they meet certain conditions in the state, four assisted living facilities Certainly not all of Economist, such as being under the care of a doc- opened in 2015. Two months into Kentucky’s over-80 National tor, being home-bound 2016, a CHFS spokesperson said nine seniors will be living in Investment or dependent on using a new facilities are already pending. senior living communi- Center for wheelchair or walker to The state has 113 open assisted living ties. Ralph Bellande, Seniors leave, and the agency facilities, 17 of which provide memory chief executive and presi- Housing providing the care is care. With an average development size, dent of Renaissance and Care Medicare-certified. Medi- according to White, of about 40 units Senior Communities in Louisville, said care does not cover the per facility, that equals 4,500 assisted liv- the vast majority of seniors live in costs of assisted living. Ralph ing units in the commonwealth. homes, condominiums or apartments. Bellande said the Bellande, Beth Burnham Mace, chief econo- Only between 6 percent and 7 percent growth of the in-home President/ CEO, mist at the National Investment Center live in assisted living facilities. The rea- care industry is one factor Renaissance for Seniors Housing and Care in son is simple: “People want to stay at that could affect demand Senior Annapolis, Md., said in 2015 the Louis- home,” he said. for space in assisted living Communities ville metro area saw 10 percent growth Anyone who’s ever had a conversation facilities in the future. in the number of new assisted living with an older parent about moving out of Another is the health of the real estate units. NIC uses a larger average facility a longtime residence and into an assisted market. Since Medicare does not cover size – 100 units – so that’s 200 units, or living facility knows the issue isn’t as sim- the cost of assisted living, seniors quite the equivalent of two properties by ple as the parent being physically unable often have to sell their homes in order to NIC’s calculation. Louisville’s five-year to live alone. The perceived loss of inde- have the $2,200 to $6,000 a month growth rate was 32 percent, or 513 pendence can be a major obstacle. Often, needed to live in a senior community. units. Nationally, in the 31 largest pri- seniors have lived in their homes for Mace said while in-home care ser- mary markets tracked by NIC, the one- decades and can’t imagine moving. vices could be seen as a competitor to

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March Lane 23-52.indd 29 3/6/16 2:29 PM HEALTHCARE

Atria Stony Brook in Louisville offers a choice of senior apartments and levels of care that include assisted living, independent living and Alzheimer’s and memory care in its Life Guidance neighborhood.

tors in growing markets are busy working on other residential and commercial projects. The change in facility designs to accommodate new amenities doesn’t have nearly the effect on the budget as labor costs.

Highest demand 10 years off Despite the concerns about overbuild- ing, higher construction costs and the fact that the real bulge in demand won’t appear for another 10 years, construction is happening and financing for new senior living developments is assisted living facilities, a number of players, with five communities in Michi- relatively easy to get. companies that offer assisted living also gan, Kentucky and Louisiana. However, KALFA’s White said it costs between offer in-home care services as an exten- small players like Arcadia dominate the $75,000 and $80,000 per unit to build sion of their properties. senior living industry. senior developments. “Lots of bankers Sometimes disabled seniors can According to the U.S. Small Business out there specialize in senior housing, become isolated and depressed in their Administration, as recently as five years and provide financing or refinancing,” homes as they increasingly lose their inde- ago the top four senior living firms – White said. pendence, said Brian Durbin, president of Brookdale Senior Living Inc., Sunrise It takes 12 to 18 months following the independent and assisted living provider Senior Living Inc., Emeritus Corp. and completion of a project to achieve 95 per- Arcadia Communities. The challenge for Atria Senior Living Group – controlled cent occupancy, he said, and his best guess their children, he said, is just 13 percent of the market share. The is that Kentucky’s vacancy rate is around 8 convincing them that they SBA said all that competition is fostered by percent. Think about it this way: Right cannot do the things they low barriers to entry for the industry, now, according to the Kentucky State Data used to do, but that there which leads to tight profit margins. Center, there are roughly 147,500 Ken- are options available. At Arcadia, however, is expanding. Some tuckians over the age of 80. If Bellande is that point, moving into a of the newest ideas it is looking at include right and roughly 6 percent of them could senior living community an art theater combined with a baking make up the market for senior living facili- with a variety of amenities Brian Durbin, kitchen, a music room and an indoor/ ties, that’s nearly 8,900 people. With designed to promote social President, outdoor dining concept with fire pits and roughly 4,500 units, Kentucky has about engagement can be like a Arcadia rose gardens connected by walking paths. half the number of units it needs to satisfy re-set for their systems. Communities “Many of our residents grew up loving potential demand today. Even adding “People come into our communities art and cooking,” Durbin said. “We’re try- another nine facilities – or about 3,600 and they eat better, get more exercise, ing to create some lifestyle amenities units – won’t eat in to demand too much. talk to people who’ve been through the where they can continue to do that.” Price and the ability to sell one’s home same things recently,” Durbin said. The amenities in today’s senior com- are two key factors that can keep people Arcadia’s Elizabethtown location, munities are designed to promote interac- out of senior communities. When it comes RobinBrooke Senior Living, boasts a com- tion and wellness, Mace said, with an to finding a facility, price equals amenities. munity baking kitchen and art studio, a emphasis on getting people out and At the lower end of the price range, White fitness center, a library and Internet socially engaged. She calls it the “wow fac- said, $2,500 a month buys a room and lounge, a theater room, a happy-hour tor,” and she says it’s geared to appeal to minimal amenities. At the $6,000-a-month lounge, a poker parlor, a restaurant with adult women, who are most often the chil- end of the scale, a senior patio home or indoor and outdoor seating, and gardens dren working with their parents on the apartment comes with evening happy with walking paths. decision to move to a senior development. hours in the bar, a theater, a concierge – “From a design standpoint, there’s Other trends in construction include basically all the new trendy things. been a battle to see what are the next locating facilities close to dense urban “It never ceases to amaze me what great things we can bring to these com- areas for easier access to entertainment people will pay,” White said. munities,” Durbin said. “Right now and activities and devoting more space Another trend Mace said she has Boomers are making the decisions for to wellness programs and rehabilitation seen is some developers building facili- their parents. The facility designs are and exercise areas. ties with, say, a bathroom shared flexible so when they (the Boomers) are Nationally, Mace said, some concerns between two independent rooms as a ready it will appeal to them.” have begun to surface about overbuild- way to reduce costs. With many more ing in certain markets like Texas, which people in different income brackets Competition means more amenities has some of the lowest barriers to entry about to need senior facilities, develop- Durbin said while RobinBrooke is cur- of any state when it comes to building ers, it seems, are trying to build some- rently his company’s only Kentucky devel- and running senior living facilities. thing for everyone. ■ opment, Arcadia is in the process of Mace said overall construction costs acquiring property for two more facilities have been on the rise mostly due to Chris Clair is a correspondent for The Lane Report. in the state. The firm is one of the smaller higher labor costs because subcontrac- He can be reached at [email protected].

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March Lane 23-52.indd 30 3/6/16 2:29 PM WORKFORCE DEVELOPMENT The Art of Workforce Development Louisville became home to the VEX Robotics World Championships in 2015 and attracted top teams from more than 1,000 local and regional VEX Robotics competitions. The 2016 championships are April 20-23 in Louisville.

It’s no secret that Appalachia represents some of the poorest counties in America today, Thomas said. “Dollars, resources and expertise will be foundational in moving the needle in STEAM initiatives,” he said. “Companies like Toyota and Qk4 (engineering) in Louisville are already on board, but we’ve only gotten started.” Kentucky legislators and other state government officials are getting actively engaged. In September 2015, educators from 22 Eastern Kentucky school districts joined U.S. Rep. Hal Rogers and former Gov. Steve Beshear, co-chairs of SOAR, at Clay County High School to launch an initiative aimed at building a STEM-skilled workforce by creating new opportunities for teachers through National Board Certification. Project STEAM injection into curricula and training programs Lead The Way curriculum, which will be builds innovative thinking into math and science skills brought to schools in the SOAR region, is endorsed nationwide, Thomas said, as a premier approach to STEM education BY DAWN MARIE YANKEELOV that will support new manufacturing, biomedical and technology careers. It’s one of a number of programs from the workforce and education populations Editor’s Note: Part 2 of a two-part look of science-based disciplines. STEAM in Kentucky to take initial innovative steps at the incorporation of STEAM (Science, more overtly promotes creativity in to transform learning mechanisms. Technology, Engineering, Arts and Math) school curricula, the thinking being into education curricula and workforce that this will stimulate innovation as the Robotics for kids builds buzz training in Kentucky. STEM skills play out in the working The real issues of achieving progress, world, to the benefit of us all. according to Jason Morella, president of ENTUCKY employers This outreach also encompasses after- the REC (Robotics Education & Compe- increasingly are aligning school programs, specialty internships, tition) Foundation, go to project scope, with educators who field trips, nonprofit and club-based training the trainers and scaling, which understand workforce maker spaces, in-classroom year-long proj- are matters of persistence and effective development trends and ects, and field work for companies where rollout. Khow economic development occurs. As mentoring is possible. Meanwhile, Louisville in 2015 a result, they are becoming champions STEAM concepts are gain- became the home of the VEX Robotics of innovative learning strategies in the ing traction in diverse set- Worlds Championships. VEX is a lead- commonwealth’s most rural and tings. ing provider of educational and com- economically challenged settings. It’s woven into many petitive robotics products to schools, Rather than rote memorization and of the Shaping Our Appa- universities and robotics teams. With quizzes, career paths are being charted lacian Region (SOAR) grants and other support from NASA, around hands-on undertakings: building initiatives. Brad Thomas, Jefferson County Public Schools will roll robots and 3-D printers; planning a Many of the plans Associate out the VEX Robotics program to edu- satellite payload; constructing a building, SOAR is pursuing, said Manager cators and students at 30 schools each wiring a circuit board; designing and Brad Thomas, associate of Economic year, reaching all 135 of its schools by Development, crafting skateboards. manager of economic East Kentucky 2019. NASA is providing the robotics This educational approach is known development for East Ken- Power kits, teacher training workshops and as STEAM, which stands for Science, tucky Power Cooperative, Cooperative technical assistance. Technology, Engineering, Art and Math. were born over an evening The 2016 VEX championships set for The term STEM – sans art – is better out in a bar discussing the re-creation of April 20-23 will feature top teams from known; some argue that art and education approaches for today’s work- over 1,000 VEX Robotics tournaments creativity already are inherent elements force needs. around the world. Kentucky has 237

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This year it begins a partnership with Lexington-based Newton’s Attic, a nonprofit also offering STEAM curriculum through Central Kentucky school districts, UK, Berea College, Carter G. Woodson Academy and the Christian Appalachian project.

Newton’s Attic pressing out into the state Newton’s Attic, a nonprofit operating since 1998, served over 1,300 students in its after- school programs and summer camps this year, primarily in Fayette and Woodford counties. Bill Cloyd, “Schools stopped doing Co-Founder, Newton’s Attic project-based learning for One program employing STEAM curriculum into the middle school a number of years, and now educators are concepts is the Rad Science Skateboard Build at and high school popula- coming back to its value,” said Bill Cloyd, a Marwood Veneer in Jeffersonville, Ind., where tions,” Martin said. “It’s mechanical engineer and co-founder with participants use math, science, engineering and great to see how the stu- his wife, Dawn. “New federal standards in tool technology to build their own board from dents light up when they science will drive more hands-on project- design to completion. see how it can be done. driven science.” This keeps me interested Newton facilities now include two Jim Martin, buildings on five acres, courses such as teams through REC Foundation pro- in how we can find the President, grams, up from 60 teams in 2012. funding through TALK to Marwood bowmaking, and even girls-only Camp Robotics education has come to the continue more of these Veneer Katniss programs – derived from the state in many forms, which are referenced types of programs.” popular “Hunger Games” movies. Trans- in acronyms. Kentucky has nine FRC In partnership with the Louisville Free portation is always an issue for after- teams. FRC is FIRST Robotics Competi- Public library under federal grant dollars, school programs, the Cloyds said, so tion, and FIRST robotics is For Inspiration TALK will offer more RAD Science Skate- field trip groups are more frequent out- and Recognition of Science and Technol- board Builds within the library system dur- side the summer months. ogy. FIRST is a Manchester, N.H.-based ing spring break 2016. The tech council nonprofit founded in 1989. Corporations also is pursuing other foundation, philan- TechTown Global eyes Kentucky such as Xerox help the Kentucky teams, thropist and corporate support to plan for The UofL Foundation is exploring part- for example, providing the Central Blue- new STEAM outreach for opportunity nership with TechTown Global LLC, grass Region High School team with a youth, cancer children and scouting which launched in Chattanooga in June $7,500 check in the fall to support its activ- badge programs in Kentucky and Indiana. 2015, for a proposed on-campus Tech- ities Both Girl Scout and Boy Scout councils Town Louisville. TechTown Chatta- now have STEM-specific coordinators and nooga is a 23,000-s.f. technology and Tech partnership expands around STEAM maker spaces. entrepreneurial learning center offer- Jim Martin, president of Marwood Veneer UofL’s Speed School engineering ing year-round afterschool programs in Jeffersonville, Ind., came into STEAM garage was home to the first Rad Sci- and summer camps with a focus on program development as a volunteer com- ence Skateboard Build in August 2015 underserved children 7 to 17. mittee chair for TALK, the Technology during Louisville’s inaugural TechFest. Association of Louisville Kentucky. Speed School has had an active summer Competitiveness in math “The Rad Science Skateboard Build after-school program for years to build (and science) adds up project can bring all the facets of math, STEM outreach and feed the engineer- Interest in better math and science cur- science, engineering and tool technology ing education pipeline. ricula escalated in Kentucky under the

32 MARCH 2016 LANEREPORT.COM • THE LANE REPORT

March Lane 23-52.indd 32 3/6/16 2:29 PM 2008-09 National Math and Science Ini- “We want that talent to stay in our tiative competition. Today, AdvanceKen- state,” Lang said, noting that some tucky is a statewide math-science 90,000 students have been served under initiative dedicated to helping Ken- the initiative in Kentucky. (However, tucky’s students reach new heights in Lang added, there is some duplication rigorous academic achievement. It in that number as a student can earn encourages advanced placement (AP) more than one qualifying AP score.) coursework allowing for college credit It is a voluntary participation initiative in high school. in 101 public high schools in the state – a Begun in 2007, AdvanceKentucky is third of which are in the Appalachia designed to accelerate students through region, where the need is greatest. advanced placement in math, science and, AdvanceKentucky also participates in for communication skills, AP English. promoting National Computer Science (Computer science is being added to the Education Week in December and AP curriculum this year, with coursework helped orchestrate more than 500 including data analytics, how the Internet hours of code events in classrooms works and computer programming lan- across the state. guages.) It is a partnership among Ken- Since 1998 in Lexington, Newton’s Attic has given tucky Science and STEAM curricula a Kentucky profit-maker students creative, hands on insight into science, Technology Corp., the The state is beginning to see for-profit technology, engineering and math via methods such Kentucky Department of companies join the STEAM bandwagon as its G-Force, a bungee-powered ride that is the Education and the by designing specialty kits and curricu- facility’s most requested activity for STEM field National Math and Science lum, with several headquartered here in trips, birthday parties, summer day camps and Initiative with several spon- Kentucky. Weston Hagan, lab director after school programs. sors, like Exxon Mobil. of Louisville-based Durham Labs, talks Joanne Lang is executive Joanne Lang, excitedly about working with a middle mark International Inc. is a global cor- director and has raised a Executive school math teacher to complete a proj- poration that creates printing and $13 million match required Director, ect using his company’s Let’s Start Cod- imaging products, enterprise software, over five years for an initial Advance ing circuit boards and related parts. and related hardware solutions. With $13 million federal grant. Kentucky Another Louisville company, White- more than 1,500 engineers at its “We replicated the Texas model box Learning, is exporting curriculum research and development center, the focused on minorities and low-income nationwide to educators looking for the facility is only for its employees who students,” Lang said. “This was 180 next rung on the ladder. It has a com- need childcare. Most of those attending degrees different from 30 years ago plete standards-based STEM learning are infant age through pre-school, and when accelerated learning was for the system for engineering, science and after-school up to the fifth-grade level. talented kids only.” technology education classrooms for “We believe it gives the preschoolers After a national competition, grades six to 12. an advantage, making them school- AdvanceKentucky was one of six programs ready when they are jumping to kinder- NMSI initially selected to scale up. State- Never too young for STEAM garten,” said Amanda Stamper, a wide results of the program thus far find Some companies are investing at the company public relations specialist. ■ students are going to school at a higher child-care center level in true STEAM rate, have higher GPAs, persist into higher curriculum, including the Lexmark Dawn Marie Yankeelov is a correspondent education, and graduate from college at Center for Children, managed through for The Lane Report. She can be reached higher rates. Bright Horizons. Lexington-based Lex- at [email protected].

MOUNTAIN STAGE with Larry Groce presents... Sunday April 3, 2016 Singletary Center for the Arts 405 Rose Street, Lexington, KY 40506 Doors 6:30pm, Show 7pm. All Seats Reserved. All Ages.

Advance Tickets $25 (plus fees), Day of Show $30 Available online (wuky.org), by phone (859-257-4929) and at the Singletary Center box office. Mountain Stage is a production of West Virginia Public Broadcasting. THE LANE REPORT • LANEREPORT.COM MARCH 2016 33

March Lane 23-52.indd 33 3/6/16 2:29 PM WEALTH MANAGEMENT

picker’ rather than expecting all markets to rise smoothly.”

“An uneven global recovery is likely to keep equity markets on edge and volatility high as 2016 unfolds. Given the unsettling and confusing combination of market James R. Allen factors, investors need to Chairman and be patient and focused CEO, Hilliard on achieving their longer- Lyons term goals. As always, an emphasis on quality and income-producing equities should help to mitigate risk. The early 2016 equity market decline should be viewed as a buying opportunity. The Fed is likely on hold with regard to additional rate hikes during 2016. With the 10-year Treasury yield below 1.75 percent, bonds are not likely to provide much price appreciation potential.”

“We believe the U.S. economy will continue with slow to moderate economic growth and in the end, providing a strong backdrop for Andy D. owning U.S. equities. Change, Transition, Volatility, Waters However, the year will President/ have challenges as higher CEO, volatility and lower Community returns will persist Inconsistency in 2016 Trust and throughout 2016. Global Investment Co. markets need time to Slow-growing U.S. economy might offer opportunity, digest the changing landscape in interest rates, Chinese but wealth managers wary as landscape shifts GDP and the current oversupply of oil. The Fed will continue to raise interest rates but at a more gradual pace than ENTUCKY wealth “Following a year in previously conveyed. As an active management professionals which domestic markets manager of individual securities, CTIC expect the turbulence with were flat, emerging sees these periods of higher volatility as which 2016 began to markets suffered opportunities to pick up high-quality continue in varying degrees significant declines and assets at inexpensive valuations.” Kfor the rest of the year. While they global markets in general largely agree that the U.S. economy were lackluster to poor, Todd should see continued low to moderate Parker the role of the investment “The market headwinds growth this year, there is no uniformity Lowe manager is as crucial as have been turbulent for in what strategy this might suggest. The President, any time in recent some time. The market is volatility in equity markets likely offers Parthenon LLC memory. Many investors down year-to-date in a opportunity to the investor who have fatigue from classic tug of war just understands that quality stocks will be recently increased levels of volatility before a bull or bear available during market dips. A across markets with seemingly nowhere market breakout. The changing world economy, especially Ernest to hide from daily moves, up and down, Sampson convergence of market China’s shift from manufacturing to frequently in excess of 1 percent. After CEO, Private influences is a perfect consumer spending as its prime driver, some years of underperformance, Client Services storm for the market. will provide the ongoing uncertainty to alternative investments, such as hedge Domestically speaking we keep markets riding the waves. One funds, may have an opportunity to have a (one for the ages) presidential suggestion is that investors need to keep perform relatively well. Following the election, historical low interest rates and closer watch on their portfolio and rally for domestic stocks since the 2008 a Federal Reserve changing direction, rebalance more often to stay on course financial crisis, it appears for domestic wage stagnation and social issues for specific personal goals. investors to be a year of the ‘stock abounding. Internationally, we have

34 MARCH 2016 LANEREPORT.COM • THE LANE REPORT

March Lane 23-52.indd 34 3/6/16 2:29 PM ISIS and Middle East turmoil, massive uncertainty that markets don’t like. In creating valuation headwinds on almost migration from war-torn areas to turbulent times, we give clients the same all asset classes with the exception of real European countries, Chinese economic advice as always: Sit with your financial assets. We expect it to continue for the turmoil, and Russia, North Korea and advisor at least annually, determine your next few years as asset classes adjust to the Iranian issues. Without a significant needs, aspirations, time horizon and changing economic environment.” change in the variables listed above, it is risk tolerance, and develop the difficult to anticipate anything but a appropriate asset allocation. Rebalance down year for the market.” to that allocation regularly. This will “We believe 2016 will carry you through all situations.” represent a year of global transition. Many “We project continued economies both local and modest U.S. economy “We believe 2016 will be around the world will growth for 2016 and marked ‘Volatility wrestle with the transition slowing growth globally. Returns.’ Volatility returns from a manufacturing- Travis K. Labor markets will to more average levels, Musgrave based economy to a continue to improve, which unfortunately Managing consumer-driven Jim Elliott although not with higher means an increase from Director, economy. This transition paying jobs. The Federal the historically low will most likely create Senior Vice David Musgrave & President, Reserve would like to Harris Jr. volatility we enjoyed the Associates, higher levels of global Director normalize interest rates, Senior Partner, past three years. We Merrill Lynch, volatility around of Wealth but we foresee a next MCF Advisors expect the Federal Pierce, Fenner currencies, interest rates Management, increase delayed until Reserve to gradually & Smith Inc. and equities. Stubbornly Kentucky Bank later this year, and fewer increase/normalize interest rates based low interest rates and lower energy Wealth increases this year than upon stabilized employment and growing prices on top of an expanding and Management were expected last fall. inflation. Markets are in a transitioning growing economy will set the stage for Investment markets have period – from no inflation to low many terrific opportunities. There will gotten off to an ‘interesting’ start in inflation to moderate inflation and on to be clear winners and losers during this 2016. Falling oil prices, a slowing global average inflation. This creates significant transition, making security selection economy, slower growth in China and asset re-pricing activity, as each future increasingly important. Investments an unusual presidential primary dollar of cash flow gets discounted by with a focus on quality income and situation all contribute to a high level of each step-up in inflation, thereby long-term growth will be rewarded.” ■

THE LANE REPORT • LANEREPORT.COM MARCH 2016 35

March Lane 23-52.indd 35 3/6/16 2:29 PM EMERGING LANE Kentucky’s young professionals and creatives Making Lots of ‘Cents’ Hitcents is still proving that ‘experience’ is no factor in success

BY ABBY LAUB A Bowling Green product Something that usually works out really ALL it twin power or sheer will well, but not always, is the fact that the and determination, but Chris Mills brothers’ high-tech business is Cand Clinton Mills, 33, are now based in Bowling Green. Mills said nearly two decades into running a there is constant pressure to move the successful business – at an age when company and recruiting enough talent many of their peers are just starting to can be difficult. gather steam with ventures. “It comes up every time in almost “We were sophomores in high school every conversation,” Mills said. “The first and we were looking at doing something thing they ask is, ‘Do they have power for fun,” said Chris Mills, the president of there?!’ It comes up every time. We use hitcents. “It was never about making the argument (that) we’re geographically money or even about starting a business. located in the middle of the country. It’s It was just, here’s a new thing happening easy for us to get to California. Chris Mills with the Internet when it comes to “Our dad worked for General marketing, and we had the skill set to Motors in the Bowling Green plant. build a website to do it.” We’re a product of where we are.” They sat down to Mills said hitcents do a proof of has moved a lot of “There was never a grand scheme, concept and came people to Bowling and unfortunately there’s still not a up with their Green, but the grand scheme,” Mills said. “We enjoy Bowling Green- process is tough. what we do every day and we have goals based web design “It’s not like and things, but there’s not some overall firm hitcents almost being in San arching thing. For us, if we’re enjoying immediately. Not bad for twins who Francisco or Los Angeles where you what we are doing then those things fight hard. can get 25 overly qualified candidates aren’t that important.” “It only took us four days,” he for a position,” he said. “We have an Enjoying what he does is key, and it’s remembered. “There were a few office in Shanghai (China), and we will the advice he gives to young people technological gaps we had to make sure have 500 qualified applications there. searching for their golden ticket. we could bridge, but it happened very, Here we put out a job opening, and it’s “I feel like the answer may be what very quickly. Our name: We were, at the hard to get someone.” people hear over and over again, but time, before the dot-com crash, doing Hitcents has a total of 70 employees it’s so important to me that you have to cost-per-clicks marketing and getting around the world, with offices in Los do what you love,” he said. “Whatever paid per hit.” Angeles, San Francisco and Shanghai. your career path is; whether it’s It’s funny that people so at odds Mills said they have been spending a lot graduating and going through the with each other could accelerate of time in India also. education system, whatever it is, do together so quickly. Their firm specializes in web something you love to do, that every “We were the worst enemies, and we development, app development, day you’re happy to come to work. had totally different friends,” Mills gaming, marketing and branding. Money is not going to buy happiness, recalled. “We didn’t like each other While it looks like many other online and you’re going to spend 75 percent and fought all the time, even fist fights. companies, Mills said, “One of the of your life working.” This was a common ground for us, unique things we do is really focus on Both of the Mills brothers are programming. It brought us together.” partnerships with our clients. It’s not a married with young children. Being so He said his parents were excited traditional hire-us-to-do-things; we like successful so young has afforded Mills that they had something to bond over to have some sort of partnership with the chance to dream realistically of a together. In fact, the twins have been the builds we get into.” “second act” career. very close ever since and now consider “I have a lot of personal goals for an themselves best friends. Enjoyment equates to success act two,” he mused. “I think living in “If you can have a business with a He said they used to be more focused China and experiencing a different friend or family member, as long as you on following the money, but they culture [would be great]. I would love to don’t keep it personal or take it weren’t happy with the results and work on a project where we were using personal, it can work,” Mills said. “We’ll weren’t having successful projects. The technology to spread empathy across get in a big argument about a business change in approach paid off, however, culture and language. I think a lot of the decision, and it might create a and hitcents even recently partnered problems we face today are because we screaming match between us, but we’ll with Tom Hanks for a project called lack empathy of people around the get dinner later. We never take the Hanx Writer. world. I would love to use technology to arguments personal and realize we are The domestic and international work on that particular problem. each trying to do the best for the success has come with hard work and a Technology is getting to that point where company. It’s worked out really well.” bit of luck. we can do that and cross languages.”

36 MARCH 2016 LANEREPORT.COM • THE LANE REPORT

March Lane 23-52.indd 36 3/6/16 2:29 PM SuperChef Ferguson A Safe Haven of Horses Pushes Forward Ministry utilizes horse therapy After Fire for teens with depression Darnell Ferguson went from on top of the world to devastation and back again in just a few months. Last summer, Ferguson and his BY KIM KLIMEK business partner Rodney White opened the first-ever full-service, permanent Louisville EPRESSION and anxiety bled much of the color from Allie version of his concept that started as a Barnett’s teen years, but the friends, family and horses in breakfast diner only. which she found a safe haven helped return the vibrancy to And then in the wee hours of the morning on Sunday, Jan. 10, a D fire broke out in the kitchen that destroyed not only the thriving her life. Today, she and her husband, Jeremy, want to offer that SuperChefs, but the adjacent Chef Maria’s Greek Deli, both located in same refuge to other teens at their Safe Haven Equine Ministries. a strip commercial center at 106 Fairfax Ave. in St. Matthews. What Safe Haven combines a spiritually based curriculum with the appeared to be a terrible and complete loss, however, has since turned restorative friendship that can be found with a horse. Young into a story of inspiration. adults ages 12 to 18 battling with cognitive, emotional and The Louisville restaurant community rallied around Ferguson and behavioral issues are encouraged to apply. deli owner Maria Bell with moral support and fundraisers. “There are only around 10 therapeutic riding centers Representatives of Stout, Macaroni Grill and Down One Bourbon Bar all offered to provide employees with temporary jobs. Joella’s Hot across Kentucky, and we are the first program to focus on Chicken, J Harrods and Ten Tables all offered to help financially. middle school and high school students struggling to live Less than a month after the fire, Darnell realized a dream by healthy lives,” Allie said. appearing on “The Rachael Ray Show,” where he met his hero Jeremy brings to Safe Haven his experience as a youth pastor, Emeril Lagasse. Bell has already reopened in a new space located in and Allie contributes as a registered nurse who has worked in Derby City Antique Mall. adolescent mental health treatment. She holds a therapeutic “When I first got there and saw the fire … that was a lot,” Ferguson riding certification from PATH (Professional Association of told InsiderLouisville.com. “But I’ve been through the crying and stuff. Now I’ve got to get back to thinking about God and look for what Therapeutic Horsemanship) International. He’s got planned. Only thing I’ve got to worry about now is getting it built back up.” Healing with horses Ferguson said the goal is to re-open on July 9; one year after the Working with and earning a restaurant’s original opening date. horse’s love and trust is something that can be very healing. “A therapy horse doesn’t have to Dry Stack be of a standard breed, age, appear- Coffee Co. ance or training,” Allie said. “A good therapy horse is made of its intelli- Danville-based coffee startup gence and willingness to participate; Dry Stack Coffee Co. aims to he’s looking to make a connection give everyone access to the highest quality coffee in the with you.” world, freshly roasted. Allie and Jeremy currently have “I love drinking different six horses, many of which are res- coffees from around the world,” cues from the Kentucky Equine Humane Center. Float Your said founder Aaron Ranson. “I “Teens who feel broken can more easily identify with want people to have access to horses who have broken pasts,” she said. Worries Away the highest quality, freshly roasted coffees from all over the Source on High in downtown world no matter if they live in a No resource left behind Lexington is home to the big city or a small town.” Equine-assisted exercises work in tandem with other outdoor region’s first float tanks – a zero- Offering free delivery for activities, such as gardening and construction projects, to provide gravity, sensory deprivation Danville residents, Dry Stack a balanced approach to remediating mental health issues. This therapy that is rapidly gaining believes coffee is at its best includes lessons on minimalism and recycling resources by using popularity in the United States. when it’s consumed as close to Source on High owner Corinne rain barrels, composting and more. roasting as possible. Also, it’s The message of sustainability pervades Safe Haven’s LaReau likened the experience roasting unique flavors from to being “cradled” by water. around the world, giving the program, and to lead by example Allie and Jeremy live in what Float tanks are a fiberglass taste buds a journey to crops has become known as a “tiny house.” Just big enough to fit the pod filled with about 200 that so many farmers worked so necessities and one to two people, tiny houses are generally no gallons of water and 1,200 hard to produce. larger than a flatbed trailer or shipping container. pounds of medical grade Visit drystackcoffee.com for Likewise the couple have let no resource go to waste in epsom salt. It is like floating in more information. the Dead Sea, but the water is learning to run their first business and nonprofit organization. skin temperature and floaters “Surround yourself with people who not only share your have the option of total passion and encourage you, but who also point out the holes darkness and no sound. in your plans,” Allie said. “You might not enjoy the criticism, “Everyone’s been very excited but you need these people.” to see these get here,” LaReau When the gates to Safe Haven Equine Ministries open this added. “It’s something that is so spring, a chapter of Allie’s life will come full circle. She and cutting edge that I think a lot of people are looking for something Jeremy look forward to sharing with teens the healing that new, something very different.” Allie once found in horses. Visit sourceonhigh.com for For more information about Safe Haven Equine Minis- more information. tries, visit safehavenequineministries.com.

THE LANE REPORT • LANEREPORT.COM MARCH 2016 37

March Lane 23-52.indd 37 3/6/16 2:29 PM BANKING OUTLOOK

“Contrary to the predic- tion of many “doom-and- gloomers,” we don’t see the usual red flags – high interest rates, inflation and energy prices – that would suggest a recession is on Mike Ash the horizon. Fifth Third Kentucky Regional Bank’s investment man- President, Fifth agement team expects Third Bank modest growth in the United States, between 2 and 3 percent, for the intermediate term. Granted, concerns over the energy sector and the slowdown in China are warranted. However, we feel a strong labor market and low gas prices have rejuvenated the U.S. consumer. These tailwinds, against the backdrop of accommodative monetary and fiscal policy, will be the engine of growth for the domestic economy.”

“The economic outlook for the Central Kentucky area is strong. That’s why City National Bank entered Metro Areas Faring the market last fall. The diversity of the Lexington regional economy and the William “Bill” growth the market is expe- Best in 2016 Craycraft riencing is stronger than Market many areas of the nation. President, City This allowed us to grow Kentucky bankers see modest growth overall, National Bank commercial loans in the market 15 percent over the but loss of coal jobs will hurt regionally past six months. Our bullishness over Cen- tral Kentucky includes the housing market. Home purchases are anticipated to ENTUCKY bankers have younger consumers continue to delay increase by 13 percent this year due in mixed views of this year’s home ownership. The soft economy is large measure to Millennials, who are economic prospects, due to making our banking environment reentering the market and comprise over different experiences extremely competitive as community one-third of home buyers.” expected regionally. Overall, banks seek to promote consumer and Kcontinued modest growth is expected for business opportunities.” “The optimism created by the state, but this is driven by strong labor a 25-basis-point Fed rate statistics in urban/metro areas as manu- “The Federal Reserve hike in December was facturing, especially of light vehicles, Board raised its Fed quickly replaced with mar- thrives while an ongoing loss of energy- Fund target a quarter ket uncertainty and tur- sector jobs means continued deterioration point late in 2015 based moil, due to declining in Eastern Kentucky. on indications of eco- energy prices, economic William nomic stability and “Bill” J. slowdown in China and “Kentucky’s economy will improvement. Equity other macro-economic fac- Dorsey Jones continue its slow recovery Hall markets, in conjunction Division tors. Because of these fac- in 2016. Modest growth is President/ with low oil prices, Manager tors, the role of the bank most likely to occur in the CEO, South responded somewhat Community for retail, small business, central and northern Central Bank erratically. This will stabi- Banking, merchant and institutional regions of the common- lize. In recent years, U.S. Bank customers in Kentucky wealth. Employment will there has been a structural problem remains more important Luther improve slowly, and versus a monetary/fiscal policy issue. than ever. We believe individuals, families Deaton Jr. Baby Boomers started retiring, stopped Chairman, unemployment will likely and businesses in Kentucky will find President/CEO, remain at its current level. buying and decreased participation in opportunities for growth in 2016. U.S. Central Consumer spending has the labor pool. Subsequent genera- Bank is focused on helping customers Bancshares Inc. not rebounded and isn’t tions have, as of yet, been insufficient convert back-of-the-envelope drawings likely to increase unless contributors to fill the void. However, into new businesses; directing commerce the economic climate improves. We are the Millennials are now some 11 mil- efficiently, conveniently and securely; aid- seeing modest housing growth, mostly lion persons stronger and maturing as ing large commercial enterprises in man- from sales of existing homes. Apartment consumers; demand should pick up, aging daily activities and expanding when construction has been very strong as and the economy will strengthen.” opportunities occur.”

38 MARCH 2016 LANEREPORT.COM • THE LANE REPORT

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March Lane 23-52.indd 39 3/6/16 2:29 PM BANKING OUTLOOK

“We consider ourselves cau- “As we enter 2016, the and residential mortgages. The wild card tiously optimistic as we global and national econo- is the success or failure of the proposed begin 2016. From a bank- mies are facing a great budget by Gov. Matt Bevin.” ing perspective, loan deal of uncertainty. The demand has been solid if early decline in the respec- “Bardstown-based Wilson not robust, with rates tive equity markets reflects & Muir Bank & Trust Co., remaining at historically that uncertainty. Eco- has locations across Cen- Steve Louis Trager low levels in spite of the Pritchard nomic forecasts for the tral Kentucky. The econo- Chairman Federal Reserve’s contrary President, U.S. economy are predict- mies in each of our & CEO, efforts. With the lack of Kentucky Bank ing a GDP growth of 2 per- markets are very strong Republic Bank construction over the last cent or less. The and the near future looks several years, there seems unemployment rate in Kentucky is likely Frank B. solid, driven by the success Wilson to be a lot of pent up demand in multiple to remain at around 5 percent, and in the of the bourbon and auto- President/CEO, categories, including single-family owner markets in which we operate we are antici- Wilson & Muir motive industries, two of occupied, multifamily apartments and pating a year much like 2015. Rates will Bank & Trust the largest employers. As hotels. We have access to more customers likely remain relatively low and a flat yield Co. the Bourbon Capital of the in more places through alternative delivery curve will continue. Lending will be on a World, Bardstown is the channels, including mobile/digital. This slight uptick but it will be erratic in terms trailhead to the Bourbon Trail, and bour- creates a lot of opportunities for financial of demand. Businesses and individual bon tourism’s incredible success has made institutions and customers alike. We look borrowers continue to be cautious. While a huge economic impact on contractors forward to pursuing these opportunities.” the coal industry will continue to suffer, and service providers. A strong regional healthcare-related businesses and automo- economy has Bardstown’s historic down- “Kentucky’s economy con- bile manufacturing in our markets should town enjoying a very vibrant retail econ- tinues to show signs of show growth in 2016.” omy that has few rivals across the state.” improvement but is still not back to pre-recession “Louisville’s economy will “The economic indicators levels. The metro markets grow more quickly than for Kentucky overall have are experiencing a higher the nation’s in 2016. The improved significantly, concentration of growth U.S. economy’s continued however, certain state Tucker and economic recovery, moderate growth will sup- regions are not experienc- Ballinger President/CEO, which Forcht Bank has port our area’s core eco- ing this. The eastern and seen through increased nomic drivers, as many of northeastern regions, con- Forcht Bank Charles P. Jean Hale lending requests out of Denny them respond strongly to Chairman, tinue to experience signifi- Lexington, Louisville and Northern Ken- Greater national trends. Growth President/CEO, cant loss of jobs in energy tucky. However, many of the rural mar- Louisville will include manufactur- Community and related fields such as kets continue to be challenged with and Tennessee ing, transportation, educa- Trust Bancorp steel production and rail- moderate unemployment rates and a Regional tion, healthcare, finance roads as well as suppliers. general lack of economic development. President, and professional services. During 2016, we expect conditions for The global economy has everyone taking PNC Bank Housing recoveries, stron- most of the state will remain basically the a deep breath, but we remain positive on ger consumer finances and same as 2015 except for the eastern and the outlook for Kentucky as we move rising auto sales will underpin solid per- northeastern regions, which are subject to into the rest of this year.” formances for manufacturers at Appli- continued deterioration. Improvements ance Park and for auto producers, parts in unemployment and business have been “Uncertainty is the buzz- suppliers, transportation and distribution positive for banking; we have seen word. Negative interest firms. The drop in gasoline prices will increases in loan demand and reductions rates in Europe, weaker boost consumers’ disposable income and in problem loans. However, we will con- output in China, falling reduce expenses for manufacturers.” tinue to experience pressure on our net commodity prices, and a interest margin as long as the Fed contin- strengthening dollar con- “The economic and busi- ues to hold interest rates low.” spire to increase eco- ness environment outlook Bill Alverson, nomic volatility. Though for 2016 is positive, “Lexington’s economy is CEO, the domestic economic although individual indica- on track for moderate eco- Traditional expansion is growing old, tors are mixed and some nomic growth in 2016 Bank continued improvement uncertainty remains. Real thanks to a diverse manu- in unemployment, hous- GDP growth for Kentucky facturing base and the ing, wages and consumer spending con- Lloyd C. is forecasted around 1.5 anchor provided by health- Hillard Jr. tribute to an upbeat outlook. The U.S. is President/CEO, percent, which is below the care and the University of one of the few, if not only, safe harbors. U.S. projection of 2 per- John Kentucky. As the national Farmers Gohmann Central Kentucky will benefit from con- Capital Bank cent. Kentucky’s unem- Lexington and labor market approaches tinued low interest rates; low commodity Corp. ployment rate has declined Central Ky. full employment and prices will fuel the housing market and to 5 percent and is around Regional income growth continues consumer spending. This bullish outlook 4 percent in Central Kentucky. Inflation is President, to pick up, 2016 will likely is tempered by recent stock market vola- ticking up, but we do not expect any fur- PNC Bank be an even better year for tility, and lower consumer sentiment ther interest rate hikes until the second auto sales. Although the would negatively impact spending. Anec- half of 2016. The Central Kentucky mar- overall outlook is sanguine, cuts to state dotal evidence from our business com- ket is improving, led by Lexington and spending and potential changes to Ken- munity is upbeat for 2016; activity Louisville. We are seeing better loan tucky’s Medicaid program are downside remains much improved over 2015.” opportunities in commercial real estate risks to the outlook.” ■

40 MARCH 2016 LANEREPORT.COM • THE LANE REPORT

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March Lane 23-52.indd 41 3/6/16 2:29 PM WEALTH MANAGEMENT

Ernest Sampson founded Private Client Services in 2001. Its platform provides support services such as research, secure IT, trade clearing, compliance and professional education to around 50 Louisville Firm independent wealth management branches across the United States.

The “wire house” firms have to fan their 60 percent split of revenues out Invests in Integrity across a lot of expense lines. Overhead includes not only physical office space Private Client Services is the back office for and associated costs from IT to utilities but also complex back-office operations independent wealth managers across the nation to execute trading, keep detailed individual records and conduct compliance BY MARK GREEN operations for multiple federal and sometimes state regulatory agencies – for their dozens or hundreds of locations. Independent firms are usually one S the wealth management “wire houses” that operate nationally to office and often one individual financial sector has evolved since be their own boss and keep much more agent. Many are niche operators to the jolting near economic of the revenue they generate, said Ernest some degree – they do not attempt or meltdown of 2008-09, a Sampson, founder and CEO. want to offer every financial product Louisville company that An employee agent for a national that exists, especially not the complex providesA back office support services to brand “wire house” firm such as Morgan exotic products. independent brokers is thriving. Pri- Stanley, Wells Fargo, Bank of America or Founded in 2001, Private Client Ser- vate Client Services is a broker-dealer Merrill Lynch typically will retain about vices is a registered investment advisor and registered investment advisory 40 percent of the gross revenue they with the federal Securities and (RIA) firm now closing trades, provid- generate in providing wealth manage- Exchange Commission, whose regula- ing compliance and other services to ment advice and service. The other 60 tory functions are conducted by the around 50 independent financial advi- percent goes to the firm for whom they Financial Services Regulatory Authority. sor branches across the nation from work, he said. It is a business to business broker dealer Seattle to Boston. “An (independent) individual advi- and RIA that works with independent It’s a specialty niche, but one that is sor on average will keep 85 percent,” hybrid financial advisor groups. growing as more of the individual Sampson said. “That is the big motiva- One of the latest to join the Private advisors at the nation’s 3,500-plus wealth tion to get a bigger share of the gross Client Services brokerage platform, management firms opt to leave the large revenue.” announced March 1, is The Russell Group

42 MARCH 2016 LANEREPORT.COM • THE LANE REPORT

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“The resounding thing is: Check out your financial service provider,” Bossier said. Kentuckians or those using a broker- dealer in the state can inquire online at kfi.ky.gov or call (800) 223-2579 to con- firm that they are registered to do business in the commonwealth and details of any regulatory action in which they’ve been involved, she said. There is a heightened sensitivity toward operations since 2008, said Don Mullineaux, emeritus professor of economics with the University of Kentucky Gatton Col- lege of Business and Don Economics. Mullineaux, A lower cost of entry Emeritus into the business is help- Economics Professor, ing encourage the trend University of brokers leaving large of Kentucky “wire house” firms to Ernest Sampson and senior PCS team in If a potential client has an allega- launch their own wealth management November 2015: from left, John Taylor-Jones, tion of fraud, bankruptcy, a compro- advisory operation. His own wealth chief compliance officer; Paul Ohlin, chief financial officer; Sampson; Mary Wescott, operations officer; mised debt, has ever forged a signature, manager, who oversees Mullineaux’s and Steve Higdon, chief development officer. been accused of lying about the pros- retirement funds, “did exactly that. It’s pects of a product, churned an account very common.” or has other such “dings” on their A former faculty colleague also record, PCS rejects their business. entered the wealth management busi- wealth management firm, which is part of “He or she can taint the firm and ness, he said. Atlas Brown Family Wealth Management blow us up,” Sampson said. “We have Schools also have of Louisville. Others are literally all across historically turned people away. We become more strict in the nation. Testimonials on the PCS web- turn away far more than we accept. their screening of poten- site are from Crystal Wealth Management There is a cleansing that has been tial faculty, said University of New York City, Private Client Wealth going on in the industry for a number of Louisville finance pro- Advisors of Denver, and Blue Ocean of years.” fessor David Dubofsky. Global Wealth in Rockville, Md. Especially since the 2008 financial “Money management David The largest firm with PCS has about panic – made possible by widespread is one of the most highly Dubofsky, 30 representatives, while the average is disregard for compliance standards in regulated industries in Finance three to five, said Steve Higdon, chief writing mortgage loans during the the country,” Dubofsky Professor, development officer. housing boom – even a slight ethical said, and appropriately University impropriety can sully the reputation so. “It’s so easy to be a of Louisville Large-firm tools for independents not just of an individual but their firm charlatan, and the whole The platform includes the tools, and parties to its business dealings. industry is tainted by these con men technology and research to operate within and women.” a range from lone practitioner to multi- More Kentuckians vetting advisors Private Client Services has reached office group. PCS has no proprietary Kentucky financial regu- its current size, approaching 50 products such as specific funds or latory officials do get branches on its platform, by guarding annuities – an imperative to push more inquiries from the its reputation. proprietary products often motivates public today than in the It receives referrals from the national agents to leave the wire houses, according past. custodian firms that hold investment to Sampson and Higdon. PCS does see to “We have seen an funds for registered investment advi- it that client partners maintain their increase in that,” said sors: Fidelity Institutional Wealth Ser- continuing education, various state- Shonita Bossier, director Shonita vices; Schwab Advisor Services; TD mandated insurance courses, professional of the Securities Division Bossier, Ameritrade Institutional; and Pershing, credentials, tax law changes and market within the Kentucky Director, Advisor Solutions, which is part of The Securities trends. It also secures data systems. Department of Financial Division, Bank Of New York Mellon. “The safeguarding of data is one of Institutions. “You have Kentucky Higdon calls the company one of Lou- the most important things we do every the public definitely tak- Department isville’s best kept secrets and believes it is day,” Higdon said. ing more of an active of Financial positioned especially well to grow. Meanwhile, an emphasis on ethical role in vetting any finan- Institutions “We have the opportunity to grow purity has been a key PCS business strat- cial service provider, very big,” Higdon said. ■ egy, according to Sampson. Fewer than which is great.” half the advisors who contact PCS about The Securities Division promotes Mark Green is executive editor of The Lane Report. joining its platform are eventually outreach to investors and conducts He can be reached at [email protected]. accepted and registered, he said. investor education programs.

44 MARCH 2016 LANEREPORT.COM • THE LANE REPORT

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March Lane 23-52.indd 45 3/6/16 2:29 PM SPOTLIGHT ON THE ARTS

the next week and the next month. I looked at it as a great way to supplement my income. Deep down what I like to do is play my own music. It’s a confession you make when you decide to entertain your passions and entertain your community. My plan was “I’m going to do it and figure out a way to keep doing it.” That enables me to keep honing my craft. Now, I probably spend more time on the business side. Not even sure I stop doing it. It’s probably at least three hours a day. I answer every phone call I get. That’s important. I think about the people who are hiring me, where I’ll be, what I’ll play. While I’m practicing, I think about how I’ll interact with the audience. You can’t get away from the business side.

KAC: What has your participation in the arts council’s Performing Artists Directory meant for your business? MW: It’s important to me to have support from the arts council. What I do is in Kentucky, and it’s good to know you have support from people around you at the arts council. That there are people you know and love that support you. Being in the directory holds you accountable for getting compensation for what you do; that you don’t give it away for free. Directory members do not do pro bono work. It’s an afterthought for some people to actually pay an artist.

A Musical Evolution KAC: What kind of continuing education Participation in arts council directory part of singer-songwriter’s success do you do as a business person to make that side more manageable? MW: Part of the education is actually HE Kentucky Arts Council’s people who played them. Those folks doing the performing. The other part Performing Artists Directory is inspired me to become someone who is from programs the arts council Tone avenue for Kentucky wrote songs that mattered. offers: things like what to put on your performers to help them improve their contract, what to insist on before the craft and business acumen. KAC: What made you want to make the work has begun, how to write your Singer-songwriter Marcus Wilkerson jump to professional musician? curriculum if you’re a teaching artist. has been in the Performing Artists MW: It wasn’t really a jump. It was Those are major ones. Directory since 2010, and he also something I thought I had to do. When Year by year you have a greater sense, maintains membership in the arts I think about the things I’m passionate you’re empowered more and more just council’s Teaching Artists Directory. He about, it was the only thing I wanted to by being among artists and knowing said being a part of both directories has do: write songs that mattered and that you’ve gotten through another year benefitted his career as an artist. perform them. I’d look for ways to do supporting yourself on your craft. That’s Wilkerson joined us for a question- that within my ability and reach. I was an education as well. You’re still alive. and-answer session recently. always inspired to become a In addition to the education the arts professional. What motivated me to council provides, I also have that KAC: How long have you been move on it was coming back to Performing Artists Directory credential performing? Lexington after living in Louisville. I that means something to organizations MW: Probably more than 20 years. My moved back to Lexington in 2008 and I looking for an artist. performance has evolved through the had a lot to write about at the time. I wouldn’t be exposed to these years. I play other instruments I didn’t play It seemed logical. I had an internal opportunities if not for my inclusion in before. I’m a singer-songwriter; that’s confidence. I didn’t really have that the directory. ■ something I’ve always done. I gravitate to conversation with myself; it just happened. acoustic guitar and African and Latin percussion. Those instruments are very KAC: How did you develop a business Lori Meadows is executive director intimate. I developed that relationship plan? of the Kentucky Arts Council. with those instruments before I even MW: I can’t say I had a business plan. You started playing. I held reverence for think about what you’re going to do in

46 MARCH 2016 LANEREPORT.COM • THE LANE REPORT

March Lane 23-52.indd 46 3/6/16 2:29 PM it’s time kentucky rebounded somewhere other than the basketball court.

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A winning attitude gets companies through whatever economic conditions come their way. And that confidence and persistence will power Kentucky’s economic resurgence. The Lane Report is an information tool that helps business leaders succeed in today’s resurgent economy. We hope you’re one of them!

HBMarch 493 Lane reboundLNad 23-52.indd (8.125x10.875).indd 47 1 2/14/113/6/16 2:293:30 PM EXPLORING KENTUCKY

A $60 million renovation of the Speed Museum Up to Speed doubled the size overall and tripled its gallery space. Kentucky’s largest art museum reopens following $60 million makeover

BY KATHERINE TANDY BROWN

“Because the Speed has been here for 90 years, we are part of the history of FTER an amazing, $60 million overall size and triples its gallery space Kentucky,” d’Humeries explained. “We transformation, the Speed is – is mind-boggling. can’t remain stagnant. If we don’t move Aback! There are gorgeous new North and ahead with the present generation, the For the past three years, Kentucky’s South buildings; a sculpture-filled Art museum will be a lost gift. As the most oldest and largest art museum has been Park and Piazza; an indoor/outdoor important art museum in the state, we have closed for an extensive makeover. cafe, Wiltshire at the Speed, created by a duty for our resources to be available not During the venerable institution’s Louisville restaurateur Susan just for Louisville, but for Lexington, hiatus, its drastically scaled down, Herschberg; facilities for collection care Bowling Green, the entire state.” 6,000-s.f. Local Speed has offered art and research; and a state-of-the-art, 142- As for programming, the Speed and educational programming in seat movie theater with the capability to offers creativity connections for kids NuLu, Derby City’s hip, growing East show 16 mm, 35 mm and digital films. and adults alike. Market District. An eclectic program of weekend runs For schoolchildren, Art Detectives “Closing the museum for three years includes American independent and allows art educators to take original art was a huge risk for us, but it paid off,” international art house films, into the school classroom. This wildly said Ghislain d’Humeries, who has partnerships with film festivals and popular program began in 2014 with served as Speed’s chief executive universities, films for children, outdoor 500 participants, grew to 4,600 in 2015 officer since 2013. “Local Speed has screenings and experimental cinema. and this year will touch around 7,000. been a fabulous opportunity to reach Pure movie buff nirvana. In an outreach called Wall Together, out to a community demographic that’s As for the art, the Speed’s collections the Speed connects disparate new for us. Right now, we’re focused cover 6,000 years of history and include community groups for five to eight on the new building, but in the future Flemish, Old French and English weeks, then displays their co-created we won’t say no to something in a Masters, Impressionists, Kentucky art artwork. One recent coupling paired different part of Louisville or even a and decorative arts, and Native American teen artists at Presentation Academy different part of Kentucky.” art. Upping the ante of gallery space, the and ethnically diverse elders at As of March 12, the Speed new Speed has added 10,000 s.f. for Kentucky Refugee Ministries. Their Museum’s doors adjacent to the contemporary art; another 10,000 for collaborative art will be the first such University of Louisville Belknap national and international traveling exhibit in the new museum. Campus are open once again, and the exhibits; and 5,600 s.f. dedicated solely to “It’s important to Ghislain that we metamorphosis – one that doubles its Kentucky works. encourage people of different ages and

48 MARCH 2016 LANEREPORT.COM • THE LANE REPORT

March Lane 23-52.indd 48 3/6/16 2:29 PM backgrounds to interact,” said Anne as a memorial to her husband, James Taylor Brittingham, chief engagement Breckinridge Speed, a prominent Get up to Speed! officer for the museum. “This project Louisville businessman and The Speed Art Museum models one way we’re doing that in the philanthropist, the J.B. Speed Museum, speedmuseum.org community and bringing it back into as it was known, opened in 1927. (502) 634-2700 the museum.” Funding for the not-for-profit museum Hours: The director added, “We want to comes entirely from donations, Tues.-Sat., 10 a.m.-5 p.m. make certain that everybody – especially endowments, grants, ticket sales and Sun., Noon-5 p.m. (free) underserved communities – have access memberships. A 1996 gift of more than Closed Monday to the Speed. To encourage that, during $50 million from J. B.’s granddaughter, our first year of re-opening, every Alice Speed Stoll, made it one of the top Free Highlights Tours: Sunday will be free to the public.” 25 endowed facilities in the country. 1 p.m., Tues.-Sat. Kids can take museum tours followed Though the Speed is not a part of Kentucky Online Arts Resource (KOAR): by art activities and can attend Speed’s the university, the visionary Hattie chose Online website access to 1,600 Kentucky annual summer camp. A youth the location so that students pursuing Collections works apprentice program offers high school higher education might gain access to students a chance to peek behind the art from around the world. The Artsy event space rental: scenes in the running of a museum. museum and the university now often (502) 634-2978 Art Sparks uses an interactive learn- partner to present concerts, lectures [email protected] ing space that was once for kids only, and other events. Look for more now redesigned for adults with or with- creative, cutting-edge exhibits and to Kentucky, to expose them to our out kids. Here, participants notice, cre- collaborations in the near future. treasures of art and to connect the ate and talk about art. And during “The new museum will be a hub of commonwealth to the rest of the world. Social Speed on the second Thursday of creativity. We will open the channels of We have a responsibility to the each month from 6 to 9 p.m., grownups creativity for those who visit and commonwealth to do that.” of any age can revel in hands-on artmak- participate in art programs and who go The new Speed is revved and rolling ing, tours of the collections, a cash bar back home and continue to create. We to meet that responsibility head on. ■ and live music. will provide a bridge between If the museum’s founder – Hattie generations. We want to be a place where Katherine Tandy Brown is a correspondent Bishop Speed – could see her creation grandparents bring their grandchildren. for The Lane Report. She can be reached now, she’d no doubt be pleased. Begun We want to bring the world to Louisville, at [email protected].

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THE LANE REPORT • LANEREPORT.COM MARCH 2016 49

March Lane 23-52.indd 49 3/6/16 2:29 PM PASSING LANE Commentary on Kentucky

Louisville Unveils Trash Bins that Function as Wi-Fi Hot Spots

WO trash bins in a west Louisville public transit routes, and each hot spot neighborhood now also function emits a radius of about 100 feet of Tas free Wi-Fi hot spots for coverage. Residents and businesses Internet users. within the coverage area also will have Louisville Mayor Greg Fischer access to the free Internet service. unveiled the units in the Russell The Big Belly Wi-Fi hot spots will neighborhood in February while operate between 8 a.m. and 6 p.m. launching Phase 2 of the West Louisville Those hours will lengthen during the Neighborhood Wi-Fi Project, which uses summer months. innovative technology to provide free In addition, the Big Bellies are solar- Internet to citizens. powered compaction units that Two Big Belly trash and recycling increase station waste capacity by five units in Russell have been transformed times that of conventional bins. Smart into 4G Wi-Fi hot spots units, the first sensors notify the city when the station Big Belly 4G hot spot units in the world. Louisville’s new Big Belly 4G hot-spot trash bins is getting full so that collections are And, they are solar powered. are the first of their kind in the world. done only on an as-needed basis, “For Louisville to successfully reducing waste collection costs by up to transition to a high-tech and advanced 70 percent per year. Additional manufacturing economy, everyone in getting our entire city wired into the environmental and social benefits every neighborhood must have access to 21st-century economy.” include reduced truck traffic and the Internet,” said Fischer. “Today’s The trash/recycling bins are located cleaner streets. announcement is one step toward along one of the city’s most popular

EKU Facility to Help Single Support Kentucky’s Equine Parents Overcome Obstacles Industry with Specialty Plate PublicDomainPictures.net photo top priority for any state is an F you’d like to support Kentucky’s equine industry, consider educated workforce. But for purchasing a specialty license plate that will benefit the A many students, a number of IKentucky Equine Education Project (KEEP). obstacles get in the way of obtaining The KEEP Foundation has been approved for a Kentucky the education necessary to chart a special license plate featuring a photo of Kentucky-bred Triple successful career path. To help Crown winner Seattle Slew, one of Thoroughbred racing’s Kentuckians overcome some of those greatest champions. In order to make the “Horses Work” hurdles, Eastern Kentucky University is Seattle Slew plate available, KEEP must collect 900 planning to open a $9.5 million applications. (As of mid-February, the foundation has collected Scholar House that will focus on more than 700 of providing the housing and services the 900 preorders needed to help single parents pursue a needed for the college education. Kentucky The Scholar House will feature 36 Department of two-bedroom apartments as well as an Transportation to on-site, certified child-development make the plate facility for up to 80 children. Residents will also receive free available in counseling services and life-skills workshops. The cost of courthouses housing and childcare will be income-based. across the state.) The project is primarily funded by the Kentucky Housing Once the Corp. (KHC) and will be managed by Kentucky River Foothills. license plate is EKU provided the land via a long-term lease and the City of available, applicants will receive a postcard confirming that Richmond has received a $1 million community development they have already paid $25 toward the plate’s $44 initial block grant for construction costs. Fahe, a Berea-based 501(c) cost. When the plate is renewed the following year, the fee will nonprofit, has steered the project since its inception. go down to $31. KHC Executive Director Kathy Peters said studies show that If the license plate is produced, the first $10 of the cost of families dependent on a single parent without education are each plate will go directly to the educational activities of The increasingly facing homelessness. “Parents who want to pursue KEEP Foundation and the Grassroots Funding Program, which college degrees will now have the support they need to work provides grants to nonprofit Kentucky equine organizations toward a better life for themselves and their families,” she said. throughout the commonwealth. The facility “takes a lot of stress off, so the students can focus To sign up for a KEEP plate, visit http://thekeepfoundation. on their studies,” said David McFaddin, executive director of org/license-plate/. EKU’s Office of Engagement and Regional Stewardship. “As a (If the goal of 900 is not met, the $25 application fee will be school of opportunity, there’s no better way for us to help single considered a tax-deductible contribution to The KEEP parents become productive and break the glass ceiling.” Foundation Inc.)

50 MARCH 2016 LANEREPORT.COM • THE LANE REPORT

March Lane 23-52.indd 50 3/6/16 2:29 PM Corvette Museum Adds Car Preservation to Tour Experience

F you’re a car enthusiast, you now have yet one more reason to visit the National Cor- Ivette Museum in Bowling Green. The museum is remodeling an area that will be dedicated to the care and maintenance of its car collection. Visitors will have the opportunity to watch work in progress and, in some cases, inter- Report: Coffers Hurt act and ask questions. The new Maintenance and Preservation area will also provide a location for by Early August seminars and training classes on car care, maintenance or just basic mechanics. School Starts A 1962 Corvette that was damaged in the In recent years the museum has received a 2014 sinkhole disaster that occurred at the number of Corvette donations, bringing the col- HE results of a recent study show National Corvette Museum is being lection to 72 cars owned, so last year a full-time that it’s not just school-kids who restored to its original condition. maintenance and preservation specialist was hired Twant their summer vacation to last a and tasked with the upkeep of the cars. little longer – Kentucky’s tourism industry “Some of the cars that were donated did not run when we received them, so we is rooting for it too. are excited that Daniel Decker was able to bring them all back to running condition,” The study, commissioned by the said Katie Frassinelli, marketing and communications manager for the museum. Kentucky Marina Association (KMA) and “Each of the cars is now on a maintenance rotation so we can stay on top of the the Kentucky Travel Industry Association proper upkeep of the cars.” (KTIA), found that the drop in tourism After the February 2014 sinkhole disaster that swallowed up eight classic Corvettes business between July 2014 and August on display at the museum, the question became: Who is going to fix the cars? General 2014 cost the Kentucky economy $432 Motors took the reins on the 2009 ZR1 Blue Devil and 1992 One Millionth Corvette, million – a decrease the tourism industry returning them to their former glory and putting them back on display in the Muse- is attributing to school systems across the um’s Skydome. The third and final Corvette to undergo repairs is the 1962 Black state starting their school year in early Corvette. August. (Readers of a certain age will “It’s going to be pretty awesome to work on the 1962, and it’s a real big honor to recall that back in the day, the school year be able to do the work, to bring it back to life from the sinkhole,” said Decker, who generally started in late August.) expects the entire restoration process of the car to take about a year. “We want to do The study – which used data from it right. The fiberglass really needs to set and cure so it doesn’t shrink later. We want calendar year 2014 – shows that nearly the car to look immaculate.” 6,000 tourism jobs ended in August and that more than $45 million in local and state tax revenue was lost due to the Dancing for a Cause decline in tourism business. Other findings from the study include: ANCEBLUE, the • There was a 27 percent drop in direct University of Ken- expenditures by tourists from July to Dtucky’s annual August. In comparison, a 1985 study 24-hour, no-sitting, no- found an 11 percent drop in expenditures sleeping dance marathon from July to August. to benefit the Kentucky • August school days cost Kentucky Children’s Hospital’s 5,943 jobs due to the lower spending in Pediatric Oncology August. Nearly three-fifths of lodging Clinic, drew nearly 800 properties and attractions lost employees student participants to in August. All the marinas surveyed the Feb. 27 event and indicated they lost employees. raised more than $1.6 • $96.8 million in lost wages resulted million. from the reduction in workforce in The dance marathon August. began in 2006, raising • $45.2 million were lost in state and $123,323.16. It has since become an annual event, with contributions increasing each local tax revenues between the two year. Counting this year’s total, DanceBlue has contributed $9.8 million to the clinic months. to help children with their cancer and their families. “Kentucky tourism drops immediately “DanceBlue has opened my eyes to a whole new way of serving my community,” and sharply upon the opening of schools,” Erica Shipley, 2016 overall chair, said. “It’s an amazing organization because it’s said KTIA President and CEO Hank mutually beneficial. DanceBlue allows students to be involved in something bigger Phillips. “What is a peak in July becomes a than themselves. Dancers get to partake in the celebration of life and watch the kids cliff in August. This study documents what at the marathon forget about the worries of cancer. All parties involved are impacted. we already know about that cliff. In doing Over the past 24 hours, we have been one campus united for one cause and it has so it also demonstrates how valuable tour- been awesome.” ism is to this state.”

THE LANE REPORT • LANEREPORT.COM MARCH 2016 51

March Lane 23-52.indd 51 3/6/16 2:29 PM KENTUCKY PEOPLE

ATLANTA: UK STUDENT ENTREPRENEUR TEAM TAKES LOUISVILLE: UofL MEDICAL FIRST PLACE AT INTERCOLLEGIATE COMPETITION SCHOOL DEAN HONORED FOR SUPPORT OF MILITARY

Dr. Toni Ganzel (left), dean of the University of Louisville School of Medicine, was recently presented with a U.S. Army Medical Recruiting Brigade Certificate of Appreciation for the support Ganzel and the medical school have shown the Brigade. Those efforts include education and training, discounted training supplies and training to uniformed personnel, access to medical school grounds for Brigade-sponsored deployable rapid assembly shelter (DRASH) exercises showing field medical operations and more. Presenting the certificate of appreciation was Lt. Commander J. Patrick Staley.

WASHINGTON, D.C.: UK DEAN A team of University of Kentucky students captured first place last month at the Georgia Bowl intercollegiate URGES SUPPORT OF entrepreneurship competition in Atlanta. UK’s Team Race Assured presented a service that provides a blood test that can potentially predict injuries in horses well before serious problems occur. The three-person team E-CIGARETTE LEGISLATION includes (left to right) Julia Fabiani, an undergraduate student in equine science and physiology; Stefanie Pagano, a graduate student in biomedical engineering; and Ben Martin, a graduate student in finance and agricultural economics. The UK squad bested six other teams representing five other major universities. Thanks to its first-place finish, Team Race Assured will receive a recommendation to be accepted into Rice University’s global competition, the largest competition for startups in the world.

CAMPBELLSVILLE: UNIVERSITY TEAM CELEBRATES AWARD FOR COMMITMENT TO WORKPLACE SAFETY

University of Kentucky College of Nursing Dean Janie Heath (right) joined nursing and public health professionals on Capitol Hill Feb. 4 to voice support for legislation protecting children from the dangers of e-cigarettes. Heath advocated on National Cancer Prevention Day on behalf of the Less Cancer Foundation, a national organization Campbellsville University was one of 14 Kentucky organizations to receive the Kentucky Employers’ Mutual with the mission of keeping prevention at the Insurance Destiny Award for their commitment and success in maintaining a safe workplace. Pictured here at forefront of the “cancer conversation.” Heath the award presentation are (left to right) Christiaan Volkert, Van Meter Insurance; Tim Judd, Campbellsville emphasized that the known dangers of e-cigarettes University associate vice president for finance and controller; Lisa Ferguson, Campbellsville University are not limited to nicotine exposure, but also director of purchasing; Otto Tennant, Campbellsville University vice president for finance and include the inhalation of carcinogens such as administration; Terry VanMeter, Campbellsville University director of personnel services; Eli Roberts, KEMI formaldehyde and the adverse effects of nicotine- loss education and safety representative; William Hubbard, KEMI claims relations manager; and Cheryl brain. Pictured here with Heath is philanthropist Hoffer, KEMI senior underwriter. and Less Cancer representative Margaret Cuomo.

52 MARCH 2016 LANEREPORT.COM • THE LANE REPORT

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COVERAGE

KENTUCKY TONIGHT Candidate discussions KET Mondays • 8/7 pm ELECTION 2016 March 21 3rd Congressional District Republicans Live results and analysis March 28 6th Congressional District Republicans KET Tuesday, May 17 • 8/7 pm and 5th Congressional District Republicans April 11 6th Congressional District Democrats COMMENT ON KENTUCKY April 18 1st Congressional District Democrats KET Fridays • 8/7 pm April 25 1st Congressional District Republicans KET Sundays • 12:30 pm/11:30 am May 2 U.S. Senate Republicans May 9 U.S. Senate Democrats

LIVE & ARCHIVED on KET.org

TLR_March2016cover_Final.indd 3 3/6/16 1:50 PM (800) 626-2250 • ThinkKentucky.com Think Small Business. The Kentucky Small Business Tax Credit (KSBTC) program is designed to encourage small business growth and job creation. Most for-profit businesses with 50 or fewer full-time employees are eligible. And now, the program has been expanded and simplified!

Tax credits range between $3,500 and $25,000 for small businesses that have: · Hired and sustained at least one new job in the past year · Purchased at least $5,000 of qualifying equipment or technology

How do I apply? Just visit KyTaxCredit.org. The Kentucky Office of Entrepreneurship has many programs to help grow small businesses in Kentucky.

Services, assistance, and activities are available to all without regard to race, color, gender or national origin.

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