Nov Lane Covers.qk:Layout 1 11/7/10 9:04 AM Page 991 The LaneReport ® ’S BUSINESS NEWS SOURCE FOR 25 YEARS NOVEMBER 2010 $4.50

LOUISVILLE ARENA BOARD CREATES KENTUCKY’S NEW ECONOMIC ENGINE KFC Yum! Center moves from the drawing board to reality. Page 26

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NOVEMBER The 2010 Lane Report ® Kentucky’s Business News Source For 25 Years Volume 25 Number 11

FEATURES 26 COVER STORY: LOUISVILLE ARENA BOARD CREATES STATE’S NEW ECONOMIC ENGINE KFC Yum! Center moves from the drawing board to reality 33 FROTHY SALES, STOUT PROFITS Kentucky brewers, brew bars and restaurants 33 tap into growing interest in craft beers 36 UNIVERSITY RESEARCH UPDATE 42 THE PEOPLE OF THE WORLD GAMES Half million WEG attendees experience the hospitality of Kentucky

42 DEPARTMENTS 4 Perspective 6 Fast Lane 14 Interstate Lane 16 Kentucky Intelligencer 18 Corporate Moves 19 On the Boards 20 Lane One-on-One: Jim Host Chairman of the Louisville Arena Authority 36 University Research 38 Going Green 26 39 Economic Commentary 48 Spotlight on the Arts ON THE COVER The Louisville Arena Authority, shown here with top staff, shepherded the 49 The Lane List project since early 2006 from an idea with some momentum through design, financing, contracting and construction to its opening in October. 50 Exploring Kentucky In the photo, left to right, are Ed Glasscock, LAA legal counsel; Larry Bisig; James Patterson; Ulysses “Junior” Bridgeman; Tim Corrigan; Dan Ulmer; 52 Kentucky People Larry Hayes; Laura Chandler, executive advisor, Kentucky State Fair Board; Tom Owen; Elaine “Cissy” Musselman; Reba Doutrick; Robert Woolery; Alice ; William Summers V; Jim Host, chairman; Eric Gunderson; Harold Workman, executive director, Kentucky State Fair Board. Not pictured, Todd Blue and Lindy Street. KENTUCKY BUSINESS NEWS Ralph Homan photo AVAILABLE ONLINE

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The PERSPECTIVE Lane Report ® Kentucky’s Business News Source for 25 Years EDITORIAL DIRECTOR and Controlled Substances Act, a data- Mark Green THE IMPORTANCE based review of Kentucky’s corrections ASSOCIATE EDITOR OF MOMENTUM policies and practices created by the Karen Baird 2010 General Assembly. CREATIVE DIRECTOR Kentucky can’t afford to In addition, we are hopeful that the Jessica Merriman stick with the status quo Medicaid Cost Containment Task Force CORRESPONDENTS will address the unsustainable growth of Amanda Arnold; Rena Baer; Katherine Tandy Brown; Patrice Bucciarelli; BY DAVE ADKISSON that program. The chamber’s primary Shannon Leonard Clinton; emphasis in its focus on government mod- Anne Charles Doolin; Debra Gibson; ernization has been to curtail the skyrock- Susan Gosselin; Robert Hadley; Carl Heltzel; ES, we are still working hard to come eting spending increases in Medicaid, Feoshia Henderson; Kara Keeton; out of a recession. And yes, next year’s corrections and public employee health Meredith Lane; Nancy Miller; governor’s race will cast a political benefits to allow greater investments in Robin Roenker; Robyn Sekula; Eddie Sheridan; Yshadow on the upcoming General Assem- education and other important programs. Don Ray Smith; Gary Wollenhaupt bly. But let’s don’t use a sluggish economy SYNDICATED COLUMNS Creators Syndicate and politics as excuses to sit still. W e can – Health and must – move Kentucky forward. During the upcoming session and DESIGN Stone Advisory beyond, the Chamber will monitor the impact of the new federal healthcare PRINTING, OUTPUT & PRE-PRESS SERVICES Dave Adkisson is law on Kentucky employers. Publishers Printing Co. president/CEO of the Ken- The chamber will also: ■ tucky Chamber of • Promote wellness education programs Commerce and a PUBLISHER • Support policies to increase the num- Ed G. Lane member of the ber of health professionals in underserved Governor’s Task Force on ASSOCIATE PUBLISHERS areas and to reduce smoking, obesity and Dick Kelly Unemployment Insurance Donna Hodsdon other poor health choices.

CHIEF FINANCIAL OFFICER Steve Rohlfing, CPA Every summer, the Kentucky Cham- Global Competition ber of Commerce convenes policy coun- A skilled workforce and competitive tax CIRCULATION P&B Services cils made up of Kentucky business policies must be priorities if Kentucky is people who analyze issues important to succeed in the global marketplace. Also COMPTROLLER Alma Kajtazovic the state’s business community. These high on the chamber’s agenda: groups include chamber members and • Supporting our signature equine Lane Communications Group other Kentuckians who share an interest and distilling industries is a member of in helping our state move ahead in edu- • Revising the state’s prevailing wage law cation, health, global competition, gov- • Increasing the export of Kentucky- ernment efficiency and energy. made or grown products What follows is a quick • Developing, maintain- The Lane Report is published monthly by: overview of where we will ing and expanding trans- Lane Communications Group focus our lobbying efforts in portation, telecom and 201 East Main Street 14th Floor broadband infrastructure Lexington, KY 40507-2003 2011. The full version of [email protected] our agenda is available at Energy For more information and kychamber.com/agenda. advertising rates contact: Kentucky has been a recog- PHONE: 859-244-3500 Education nized energy leader for FAX: 859-244-3555 Continuing the chamber’s decades. It has long been The annual subscription rate is $29. emphasis on improving the the chamber’s position that (Kentucky residents add $1.74 sales tax.) Newsstand price is $4.50. education attainment of Ken- economic growth, energy tuckians, we will support independence and environ- Send check or money order to: Circulation Manager efforts to: mental protection are compatible and THE LANE REPORT • Raise the compulsory school atten- complementary goals. 201 East Main Street 14th Floor dance age to 18 Our support for coal is fundamental. Lexington, Kentucky 40507-2003 • Require school councils and super- We also support the development of alter- THE LANE REPORT corrects all significant errors that are brought to the editors’ attention. intendents to collaborate on hiring native energy sources and capital invest- school principals ments in the state’s energy infrastructure. © 2010 Lane Communications Group • Invest in early childhood education In addition, we believe lifting Kentucky’s All editorial material is fully protected and must not be reproduced in any manner without prior permission. and development moratorium on the development of • Streamline career and technical nuclear power plants could help bring programs cost-effective and environmentally friendly • Enhance workforce development energy efforts to the state while having a Network provider: positive economic impact. Modernizing government This is a full agenda – particularly for The chamber is very encouraged by the a “short session” year. But standing still work of the Task Force on Penal Code simply isn’t an option. ■

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FAST LANE A compilation of economic news from across Kentucky

LOUISVILLE: ADDITION OF $194M REFRIGERATION LINE STATE: BESHEAR TRAVELS WILL BRING 300 NEW JOBS TO LOUISVILLE GE PLANT TO TO DEVELOP TRADE OPPORTUNITIES ENERAL Electric is investing $194 million to establish a “center of excellence” at its N an effort to increase both trade and Louisville-based Appliance Park campus GE photo Gthat will produce bottom-freezer refrigerators. investment opportunities between The addition of the bottom-freezer refrigerator Kentucky and one of the world’s fastest Igrowing economies, Gov. models marks the third new platform announced for the Louisville plant within the last year – following traveled to India last month on seven- the GeoSpring hybrid water heater and a new front- day economic development trip. The load washer and dryer – and will create 300 new jobs. trip was the first to India by a sitting Ken- The Louisville plant is one of four GE Appliance and tucky governor and planned with the Lighting facilities to be designated by the company as U.S. intention of showcasing the opportuni- Centers of Excellence for Design and Manufacture. The ties Kentucky offers to Indian investors other facilities are located in Bloomington, Ind.; Decatur , and to connect with key Indian and U.S. Ala.; and Selmer, Tenn. The company is investing a total of business organizations. The GE appliance plant in Beshear and $432 million to establish the centers and will add a total of Louisville is adding bottom- Economic Develop- 500 new “green” jobs by 2014, bringing the company’s total freezer refrigerators to its U.S. investment announced since 2009 to more than $1 bil- product line. ment Secretary lion and the creation of 1,300 new jobs. Larry Hayes met “This type of investment would have been impossible without the tremendous with key govern- work underway at these plants to drive down costs and improve productivity and effi- ment officials, ciency,” said James P. Campbell, president and CEO of Louisville-based GE Appli- including former ances & Lighting. “With the new center of excellence model, the adoption of lean India President Dr. manufacturing and agreements by employees and unions to freeze current wages A.P.J. Abdul Kalam and adopt competitive wage rates for new employees, these facilities are evidence of and major business a growing American manufacturing renewal.” organizations Gov. Steve Beshear including the Fed- eration of Indian Chambers of Commerce LOUISVILLE: PUBLIC-PRIVATE PARTNERSHIP FORMS TO and Industry and the National Association BOOST CITY’S COMPETITIVENESS THROUGH EDUCATION of Software and Service Companies.

UofL photo The governor also participated in a DUCATION, business and civic leaders in roundtable discussion with several U.S. Louisville have announced the formation of companies currently operating in India, as a new public-private partnership that will well as meeting individually with compa- Efocus on dramatically increasing the number of nies actively considering future invest- people in Louisville with college degrees by 2020. ments in the United States. Beshear took The partnership’s name is that same as its goal the opportunity to tout Kentucky’s history – 55,000 Degrees. Specifically, the group will work as a primary destination for international to increase the number of people with bachelor’s investment: Nearly 400 international com- degrees by 40,000 and associate’s degrees by panies, representing 30 countries and 15,000 to help improve the community’s standing more than 72,000 employees, have opera- among competitor cities for jobs and companies. tions in the state. Six of those companies “Education is the key that opens new doors are Indian-owned, representing more than for our residents and our community,” Louisville 1,500 employees. Louisville Mayor says the Mayor Jerry Abramson said. “With 55,000 more “I believe we can develop the same city’s new education initiative will result college degrees, our skilled workforce will in more engaged citizens, resources for new kind of mutually beneficial relationship initiatives and improved quality of life. attract more good-paying jobs and companies to with India’s business community as the Louisville.” one we have built with Japan over the More than $1 million has been raised so far from local foundations to fund 55,000 last few decades,” Beshear said. Degrees over the start-up three years – including support from the James Graham India today represents one of the Brown Foundation, the Humana Foundation, the C.E. & S Foundation, the Com- fastest growing economies in the world munity Foundation of Louisville and the JPMorgan Chase Foundation. and is a leading trade and economic part- In addition, one partner, Greater Louisville Inc., recently received an $800,000 grant ner for the United States. The countr y’s from the -based Lumina Foundation to address one of the key objectives of gross domestic product grew by 112 per - the partnership – businesses helping working-age adults finish their degrees. cent between 2003 and 2008 and U.S. Mary Gwen Wheeler, the mayor’s senior advisor on education, has been named to lead exports to India reached $16.4 billion in the organization as interim director. Wheeler is a life-long-education professional who 2009, an increase of more than 169 per - began her career teaching English to students in Hong Kong and doing workforce train- cent since 2004. Kentucky’s exports to ing in ’s Chinatown. She worked for more than a decade at the National India grew more than 252 percent to $96.5 Center for Family Literacy in Louisville before joining the Abramson administration. million over the same period.

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LEXINGTON: NEW UK AG CENTER DESIGNED BUSINESS BRIEFS TO SUPPORT FARMERS, ENTREPRENEURS

Brian Bohannon photo Brian HE College CALVERT CITY of Agriculture has formed a new ■ Gerdau Ameristeel is investing $25 million to install a new “innovation center” designed to reheat furnace at its plant in Calvert City that will provide a Tprovide support to Kentucky farmers 20 to 30 percent increase in productivity and a 20 percent and ag-related entrepreneurs. reduction in gas consumption. The project is slated to be “There’s a lot that goes into com- complete by the end of 2012. mercializing any food product,” said Tim Woods, UK agricultural econom- COVINGTON ■ UK’s new “innovation ics professor and one of the center’s Bexion Pharmaceuticals, a Covington company that focuses center” will help primary investigators. “There are a lot on the development and commercialization of innovative Kentucky farmers and of quality assurance issues that folks cures for cancer, has been awarded a $1.5 million Phase II agriculture entrepre- need to attend to. Either because Small Business Innovation Research (SBIR) grant by the neurs navigate the path- they’re new or because they’re small, National Cancer Institute. Dr. Ray Takigiku, Bexion’s co- ways involved in developing and market- they may have limited access to founder and CEO, said the award will expedite the company’s ing their products. resources such as product testing, shelf goal of developing a new molecular entity that will target and life studies, and the various quality eliminate glioblastoma multiforme, a deadly and invasive assurance kinds of tests that a larger-scale food processor brain tumor that currently has no effective treatment. would normally run in their own labs.” The Food Systems Innovation Center offers validation studies ELIZABETHTOWN on processed, vacuum-sealed and ready-to-eat items to assess ■ Remington Arms Co. is investing $1.5 million to locate part their safety; accurate nutritional analyses and labeling informa- of its firearms research and development at its Elizabethtown tion; taste tests using trained sensory panelists, and technical sup- facility. The expansion will create 15 new jobs, 13 of which are port to analyze shelf life. In addition, UK agricultural economists high-tech/technical support positions with an average salary will conduct consumer studies as well as economic impact and of $59,500. Earlier this year, the company announced plans feasibility studies. The center also offers Hazard Analysis Critical to invest $5 million to expand its operations in Hickor y, Ky., Control Points and food security/defense training. where it plans to add 100 new jobs over the next three years. Angela Anandappa, the center’s coordinator, believes entrepreneurs would be wise to take advantage of all the cen- ■ Fischbach USA is investing nearly $8.7 million in its Elizabeth- ter has to offer them. Working out technical and marketing town plant, where it produces plastic packaging for sealant and problems through the center first “absolutely will save them adhesive clients. The expansion will enable the company improve a lot of money in the long run,” she said. plant efficiency and add a new food-packaging product. Fis- chbach has been located in Elizabethtown since 1992 and cur - LEXINGTON: $200K SBA GRANT CREATES rently employs 76 people. SMALL-BUSINESS ASSISTANCE PROGRAM ERLANGER ■ Convergys Corp. has added OMMERCE Lexington has received a $200,000 grant 250 jobs at its call center in from the Small Business Administration that will help Erlanger to provide support create a new small-business assistance program. for two of its clients. The CThe first initiative that will receive assistance is the Blue- -based company, grass Veteran and Minority Owned Contractor Incubation which specializes in customer management services, has Program, which will create a “one-stop” incubator to build added 150 permanent full- and part-time positions to provide veteran, minority, women, disabled/disadvantaged-owned technical support to a telecommunications client. The other business capacity in the construction sector across Kentucky. 100 positions, which include both full-time and part-time jobs, In addition to providing office space and equipment, the proj- will provide customer service support for a client in the ect will provide participant contractors with ongoing needs assess- healthcare industry. ments, no-cost financial management expertise, legal ser vices, sales and public relations services, green building services/LEED ■ In response to customer demand for public warehouse training, human resource management, jobsite safety and access space for refrigerated and frozen storage, United Dairy Farm- to discounted insurance and workers’ compensation. ers is expanding its Cold Chain Integrity facility, a public The grant is also expected to help address economic refrigerated warehouse located in Erlanger. The company is inclusion, furthering the development of the bio-tech clus- adding 100,000 s.f. to the existing facility, which will bring the ter, and workforce development. The program will be total square footage to more than 350,000. The expanded administered by the Associated General Contractors of Ken- facility will feature a separate, highly specialized, ultra-low tucky (AGC of Kentucky), a non-profit trade association rep- temperature room with redundant power and refrigeration resenting 700 prime contractors, subcontractors and that is being built for a long-term, pharmaceutical industr y industry associates statewide. Initially, three individual firms tenant. The expansion will add 40 new jobs to the current will be selected by the advisor y committee to participate in workforce of more than 2,100. the program. The program will run in two-year cycles.

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BUSINESS BRIEFS LOUISVILLE: CHURCHILL DOWNS DECIDES TO DISSOLVE ENTERTAINMENT DIVISION

FLORENCE PR Newswire photo Photo Service HURCHILL Downs ■ ZF Steering Systems is investing nearly $96 million to expand Inc. has dissolved its its operations in Florence. The project will include the construc- Churchill Downs Enter- tion of two new buildings totaling 175,000 s.f. and the addition of Ctainment Group, which was 374 new full-time positions. The company manufactures steer - formed in 2009 with the goal ing components for passenger cars and SUVs, and is adding of developing large-scale, live capacity to meet demand for its new electric steering gear. Con- entertainment events that struction will begin this month and is expected to be complete could be conducted at both by summer 2011. CDI and non-CDI venues. “It has become clear that FORT MITCHELL launching new, upscale ■ The Paul Hemmer Co., a Fort Mitchell real estate develop- entertainment events in the ment and construction company, has joined with Cincinnati- current economy, particu- based commercial construction company Messer Inc. to form larly with the persistently a new property high levels of unemploy- Bon Jovi headlined this past summer management ven- ment, is extremely difficult,” at HullabaLOU, a three-day music ture. Building Man- festival that featured more than 65 said CDI President and Chief agement Partners artists and bands. Executive Officer Robert L. is a 50-50 venture Evans. “While we received exceptionally high marks from the between Hemmer nearly 80,000 people who attended our CDE events, we fell and Messer Financial Services, a division of Messer Inc., and short of the attendance levels necessary to operate these will provide a variety of services ranging from building main- events profitably.” tenance and grounds services to contract management and CDE’s inaugural HullabaLOU Music Festival, a three-day facilities planning. The new business is headquartered in Flo- event that featured more than 65 artists and bands, was held this rence, Ky., and will initially focus on the Northern Kentucky, past July at the Churchill Downs Racetrack and the company Cincinnati and Dayton, Ohio, markets. also staged food and wine festivals this fall at both Churchill Downs and the Arlington Park Race Course near . FRANKFORT The company has said that while the HullabaLOU festi- ■ Mountain Valley Recycling (MVR) has opened a new man- val won’t be conducted in 2011, there remains the possibility ufacturing facility in the former Bendix facility in Frankfort. that it may be revived in future years “once the economy and MVR makes plastic resin for consumer goods manufacturers live-music business in the U.S. have fully recovered.” using plastic waste as raw material. The products are ulti- mately sold to the retailers that generate the plastic waste. The company announced in May its plans to invest more LEXINGTON: BIOTECH FIRM RELOCATES HQ than $9.2 million in a new Frankfort operation and hire 360 TO UK COLDSTREAM RESEARCH CAMPUS employees within two years. RTHOPEUTICS L.P./Intralink Spine Inc., a biotech- FRANKLIN nology company that is working on nonsurgical treat- ■ QuadGraphics’ ment of degenerative disc disease and related lower expansion in Franklin Oback pain, has relocated from to the University of Ken- is expected to be com- tucky Coldstream Research Campus. plete by early Decem- Three employees, including the chief executive officer ber, according to a report by The Franklin Favorite. and the chief scientific officer, who will hold a joint UK fac- QuadGraphics, a global printing company that acquired ulty appointment in engineering and medicine, have moved World Color Press Inc. earlier this year, is in the process of to Lexington. It is anticipated that additional high-tech posi- closing five other U.S. plants, a move that will bring more tions will be created when the company begins manufactur- work to the Franklin facility. The company’s expansion in ing the reagent and the medical device. Franklin will add 108,000 s.f. – giving it a total of nearly Tom Hedman, who founded Orthopeutics/Intralink 570,00 s.f. – and create 180 new jobs. The company currently Spine and serves as the chief scientific officer, said it was the employs approximately 425 people in Franklin. “eagerness of UK’s faculty and leadership team to collabo- rate in the research and development of this potentially ■ MAHLE has announced plans to close its piston ring man- game-changing technology that convinced me to make the ufacturing plant in Franklin by the end of 2011 as the com- University of Kentucky my academic home.” Hedman is an pany restructures its North American piston ring MIT-trained and NIH-funded research associate professor manufacturing business. The 100,000-s.f. Franklin plant has who comes to UK by way of Texas A&M University. produced piston rings and sealing rings for the auto industry The company’s research has the potential to affect millions of since 1972, previously under the Dana Corp. and Sealed patients throughout the country who suffer from lower back Power names, and at one point employed as many as 300 peo- pain. According to statistics released by UK, 85 percent of Amer- ple. The plant currently has 93 employees. The Franklin ican adults experience lower back pain during their lifetime and plant’s operations will be transferred to MAHLE facilities in lower back pain is the second most common reason for seeing a Mexico and , both of which are larger plants. physician and the third most common reason for surgery.

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BUSINESS BRIEFS LOUISVILLE: SIGNATURE HEALTHCARE OPENS NATIONAL HQ IN LOUISVILLE GLASGOW OV. Steve Beshear and ■ Integrated Pharmaceutical Packaging, a subsidiary of Ten- Louisville Mayor Jerry Abram- nessee-based PrePak Holdings Inc., has announced plans to son joined officials from Signa- move into the former Carhartt facility in Glasgow. The com- Gture HealthCare last month to pany plans to hire 100 employees for new location and has celebrate the official opening of the been awarded a $1.1 million Community Development Block company’s national headquarters in Grant to assist in the purchase of new equipment for the facil- Louisville. The company announced its ity, where it will take bulk prescription and over -the-counter move from Palm Beach Gardens, Fla., medication and repackage it into dose-sized packaging. Inte- to Louisville this past March. grated will work directly with Amneal Pharmaceuticals, which The headquarters operation, which just announced an expansion in Glasgow in May. The Amneal represents a $6.5 million investment, will Joe Steier, Signature expansion resulted in 48 new jobs and a more than $6.6 mil- initially create 96 new jobs in the com- president/CEO lion investment. monwealth, growing to more than 120 HIGHLAND HEIGHTS new jobs with an average annual wage exceeding $75,000, exclu- sive of benefits. The company’s new 65,630-s.f. facility will serve ■ General Cable Corp. as its national headquarters and will include corporate manage- has formed a joint venture ment and facility operational support functions. with International Cable Signature has also partnered with Nucleus, the University of Industries LLC, a limited liability company organized in Oman. Louisville’s driving force behind a life sciences hub in downtown General Cable will have a majority interest in the joint venture, Louisville, to create the International Center for Long-Term which will distribute a wide variety of wire and cable products for Care Innovation. As the countr y’s first long-term care innova- the energy, electrical infrastructure and construction markets in tion center, the center houses and assists in the development of Oman and other Gulf Cooperation Council (GCC) countries. early-stage health technology and services companies seeking to General Cable expects the demand for wire and cable products bring new ideas to the aging care industry. in Oman and the GCC region to grow due to increasing invest- State and local officials said Signature’s presence helps to ment in infrastructure and power generation projects as coun- further enhance Louisville’s economic development strategy tries throughout the region continue to invest in large-scale to develop an aging-care industry cluster in the region. transport, construction, oil and gas, power generation, transmis- Louisville is currently home to more than 4,000 industry pro- sion and distribution infrastructure. fessionals producing over $28 billion in revenue. Ten of the Central Baptist Hospital photo LEXINGTON top 25 largest employers in the Louisville metro area are health-related businesses. ■ Central Baptist Hospital broke ground last month on an expansion project that hospital LEXINGTON: ’S NEW FORMAT officials say will provide the ENERGIZES SEPTEMBER YEARLING SALE most immediate solution to meet the needs of a growing Keeneland/Coady Photography photo EENELAND officials say patient population. The expan- a new format for its Sep- sion will include a seven-story tember Yearling Sale structure that will house a state- Kgenerated active trade from a of-the-art cancer center, new broad mix of buyers, resulted women’s center, 44 private medical/surgical rooms, 40 ICU in across-the-board increases beds and in-patient imaging services. Also included in the and brought some much- project is a five-floor parking structure with two additional needed stability and continuity floors of medical office space. Construction is expected to be to a recently volatile Thor- complete within 30 to 36 months. oughbred market. Keeneland’s September Yearling Sale This year’s auction opened ■ MacLellan Services Inc., a Lexington-based industrial serv- attracted buyers from nearly every with two evening sessions ices company, has sold its paint-finishing subsidiary in India, state and 39 countries. designed to create excitement Haden International Group India, to Eisenmann AG for an that would carry forward into the following days of the sale. And, undisclosed sum. “This is really a fulfillment of our 2006 in an effort to spread the quality consistently throughout the first pledge to rejuvenate the Haden business that we made at the week, Keeneland presented yearlings alphabetically by dam time we acquired it,” said MacLellan Chairman Jeff Betzoldt. rather than ranked by pedigree and conformation. “The business is now stable and Eisenmann is well positioned “One of our goals with the format change was to get more to grow the company in the future.” MacLellan is a privately buyers to market, and we succeeded,” said Keeneland Direc- held company specializing in plant and building facilities tor of Sales Geoffrey Russell. “We saw a great mix of old and management and maintenance, industrial critical-process new faces, both domestic and foreign, and they stayed longer cleaning, wastewater treatment, and other industrial logistic into the sale. Trading was very evenly spread among a num- and support services. The company maintains headquarters ber of buyers. That is a very healthy sign.” in Lexington and , India, and employs approximately Receipts for the 14-day auction, held Sept. 12-26, totaled 5,500 people worldwide. $198,257,900, up from $191,859,200 in 2009.

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BUSINESS BRIEFS LOUISVILLE: TO OFFER PH.D DEGREE IN MANAGEMENT LEXINGTON/LOUISVILLE ULLIVAN University has received approval from the ■ Fifth Third Bank has combined its Louisville and Lexington Commission on Colleges of the Southern Association operations to form one entity known as Fifth Third Kentucky . of Colleges and Schools to offer a Doctor of Philoso- The Lexington operations will continue to be headed by Mike Sphy (Ph.D) in Management. Ash (who was recently appointed to the position following the The program will offer three concentration options: death of Fifth Third Central Kentucky President Sam Barnes) Strategic Management, Information Technology Manage- and will report to Tom Partridge, who was head of the company’s ment, and Conflict Management. Louisville operations and will now lead Fifth Third Kentucky. The “For nearly 13 years, company said there are no anticipated changes in its financial we’ve offered MBAs and centers or retail structure as a result of the merger. other graduate level pro- LOUISVILLE grams. Now with this newest doctoral degree, ■ For the second consecutive year, we’re providing a program that is designed to help business the 21c Museum Hotel in Louisville professionals reach an even higher level of marketability, has been selected as the No. 1 hotel which is of utmost importance in today’s economy,” Sullivan in the United States and No. 6 in University President Glenn Sullivan said. the world in the Condé Nast Traveler The degree can be completed online, and there is an Readers’ Choice Awards. This year option of taking classes both online and at the Louisville nearly 26,000 individuals partici- campus. (Sullivan has campuses in Louisville, Lexington, pated in the voting, evaluating more and on post at Fort Knox.) than 10,000 properties and destina- The program features an accelerated curriculum, which tions worldwide. 21c is the only U.S. hotel to be ranked as one enables students to complete their Ph.D. degree in three years. of the world’s top 10 hotels in the 2010 poll, beating out lux- The program is Sullivan’s second doctoral program. The ury brands such as Mandarin Oriental and Ritz Carlton. The university offers a doctoral degree in pharmacy at its main rankings are based on the quality of rooms, service, food and campus in Louisville. dining, location and overall design.

■ Low-fare carrier Vision Airlines has announced plans to SHELBYVILLE: UofL DEDICATES NEW $44M begin offering nonstop flight service between Louisville Inter- REGIONAL BIOSAFETY RESEARCH LAB national Airport and ’s Hartsfield-Jackson Interna- tional Airport beginning Dec. 13. The airline will operate two UofL photo HE University of daily departures, using the 32-seat Dornier 328 aircraft. Louisville and National Insti- ■ GSI Commerce Inc., a provider of e-commerce and interactive Ttutes of Health officials marketing services, has opened an 87,000-s.f. facility in Louisville gathered last month to where it will handle customized apparel such as jerseys, T -shirts dedicate UofL’s Center and fleece apparel for clients that include the NFL, NASCAR for Predictive Medi- and the NBA. The new operations will create some 800 seasonal cine, a $44 million jobs in the Louisville area during the coming holiday season. The regional biosafety company is also expanding its seasonal employment by more The University of Louisville received a research lab designed than 1,900 people at its three other Kentucky facilities, which are $22 million grant from the National Insti- to better protect Amer- located in Louisville, Richwood and Shepherdsville. tutes of Health for the Center for Predictive icans from emerging Medicine and provided a $12.6 million biological threats. match to design and build the structure. ■ Technology solutions company Neustar has opened a new Researchers at the customer support center in Louisville that will handle e-mail 50,000-s.f. facility on UofL’s Shelby Campus, now being and phone inquiries for the company. The center is expected developed as ShelbyHurst Research and Office Park, will use to create 150 jobs within the next three years. state-of-the-art equipment to develop vaccines, treatments and cures for some of today’s worst infectious diseases. MURRAY The lab, one of only 13 like it in the country, will allow sci- ■ Murray State University’s board of regents has approved the entists from Kentucky and surrounding states to study Level creation of a doctor of nursing practice program in the school 3 biological agents, or those that can cause diseases that are of nursing. University officials said transitioning from bache- potentially fatal but curable. The lab will not handle Level 4 lor’s or master’s degrees to doc- agents – those that can cause incurable diseases. toral-level training will open up “This facility was designed and built according to the avenues of employment for strictest safety standards,” said UofL President James Ram- nurses, not only in the health- sey. “Not only will it create more high-tech jobs and help us care field, but also in the area of attract more federal research dollars, but new drugs, tests nursing faculty shortages. The anticipated start date for the and vaccines will create licensing opportunities and spur cre- new doctoral program is August 2012. A national search for a ation of new, locally-based technology companies.” dean of the school of nursing is now under way. Dr. Michael Construction of the lab began in 2007, and it is expected Perlow is currently serving as interim dean. to be operating by the end of this year.

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LOUISVILLE: VENTAS ACQUIRES ATRIA BUSINESS BRIEFS REAL ESTATE PORTFOLIO IN $3B DEAL RUSSELL SPRINGS Atria photo Atria OUISVILLE-based Atria ■ Bruss North America, a company that specializes in the Senior Living Group has manufacturing of sealing systems for transmissions and signed a definitive agree- engines, is investing $10 million to expand its corporate head- Lment to merge its real estate quarters in Russell Springs. The expansion will add 71,400-s.f. with Ventas Inc. in exchange for of manufacturing space and 54,000-s.f. of warehousing space. an estimated $3.1 billion, includ- The German-owned company is currently in the process of ing $1.35 billion in Ventas stock, hiring 100 new employees as part of the expansion. $150 million in cash and $1.6 billion in debt either to be WARSAW The Atria Springdale commu- assumed or repaid. ■ Dorman Products, a supplier of automotive replacement nity in Louisville is one of 120 Atria operates more than 120 parts and products, is investing nearly $9.3 million to expand senior communities the com- communities in 27 states that pro- its distribution center in Warsaw. The expansion will result in pany operates. vide independent living, assisted the creation of 80 new full-time jobs, bringing the company’s living and memory care services, and employs a workforce of total employment in Gallatin County to 260. Construction on more than 8,000 employees. Chicago-based Ventas is a leading the project is already under way and is expected to be com- healthcare real estate investment trust with nearly 600 assets in plete by April 2011. 44 states and two Canadian provinces. “This new relationship with Ventas will combine Atria’s STATE senior housing management and operations expertise with ■ Affiliated Computer Services Inc., a the strength of an S&P 500 company known for making high Xerox Company, is adding 325 new jobs in quality, long-term real estate investments,” said Atria CEO Kentucky to handle an increase in business. John A. Moore. “This puts us in a position to keep our resi- ACS, which specializes in call center out- dents, employees and commitment to quality as our utmost sourcing and currently employs some 4,000 priorities. Ventas’ commitment to make a long-term invest- people in Kentucky, will add 250 jobs in Lexington and 75 ment in our real estate will serve as the basis for the contin- positions, including 25 part-time spots, at its Pikeville facility. ued growth of the Atria platform.” The new positions will include customer care and technical The agreement calls for Atria to continue to manage the support agents as well as supervisors. portfolio of communities and will remain an independent, privately owned management company, with its current man- ■ Kentucky’s seasonally adjusted preliminary unemployment agement team continuing to run the company and Atria rate rose to 10.1 percent in September 2010 from a revised 10 Chairman Matthew J. Lustig assuming a seat on the V entas percent in August 2010, according to the Office of Employment board of directors. In addition, Atria’s existing owners – pri- and Training (OET). The September 2010 jobless rate is .7 per- vate equity funds managed by Lazard Real Estate Partners – centage points lower than the 10.8 percent rate recorded in Sep- will continue to own the majority interest in the company. tember 2009 for the state and is the highest since May 2010 when Ventas Chairman, President and CEO Debra A. Cafaro the rate was 10.4 percent. The U.S. seasonally adjusted jobless said the Atria acquisition positions Ventas as the largest rate stayed at 9.6 percent from August 2010 to September 2010, owner of senior living communities in the United States. according to the U.S. Department of Labor. November Lane 1-24.qk:Layout 1 11/7/10 9:01 AM Page 14

INTERSTATE LANE Business news from , Ohio, Tennessee and West Virginia

BUSINESS BRIEFS TENNESSEE: CHAMBER STUDY PREDICTS EMPLOYEE SHORTAGE FOR NASHVILLE INDIANA ■ Children’s furniture distributor Munire Furniture Inc. has HE Nashville region can expect to experience a worker announced plans to establish its U.S. manufacturing head- shortage by mid-decade, according to a new study con- quarters in Gas City, Ind., adding up to100 new jobs by the ducted by the Nashville Area Chamber of Commerce, end of the year and up to 350 new jobs by 2013. The New Jer- Tin partnership with the region’s three Workforce Investment sey-based distributor of baby cribs, dressers and other house- Boards and the Tennessee Department of Labor & Work- hold furniture also announced the launch of its Echelon force Development. Furniture division, which will be headquartered in Gas City . The study, “Leveraging the Labor Force for Economic The company will invest $5 million to purchase and equip the Growth,” provides a detailed snapshot of the region’ s current 200,000-s.f. former Amcast building for production. workforce and the supply and demand trends over the next decade by occupation and industry. ■ Beckman Coulter, a manufacturer of biomedical test instru- According to the study, the worker shortage will be caused ments and supplies, is investing more than $18 million to by a high number of retiring baby boomers, a smaller group expand its Indianapolis operations and expects to create up of workers to replacement them, and continued job growth. to 95 new jobs by 2013. Since 2007, the company has grown by Key findings of the study include: over 350 percent, adding 390 new jobs in Indianapolis. • Relative to many other regions, Nashville has not expe- rienced as much economic hardship during the recession, ■ Nexus RVs, a startup manufacturer of recreational vehicles, due to a robust economy that owes its growth to a diverse has announced plans to establish its production operations in mix of industries. Elkhart, Ind., creating up to 90 new jobs by 2013. The com- • Overall, more workers are employed today than in 2004, pany will invest more than $2.8 million to lease and equip an despite the setbacks of the past two years. existing 109,000-s.f. manufacturing facility. • Like many prosperous metropolitan regions, the Nashville area attracts net in-migration to take advantage of OHIO economic opportunities. However, the region will also need ■ GE Lighting has invested more than $60 mil- to attract a significantly increasing number of next-genera - lion in new equipment at its Bucyrus, Ohio, man- tion workers and retain many more recent graduates from ufacturing plant, where it produces area colleges and universities. energy-efficient linear fluorescent light bulbs. • Self-employment plays a very important role in the Employment at the plant is expected to nearly double, with Nashville region and will continue to do so. The proportion more than 130 jobs added over the next few years as the of the Middle Tennessee workforce that is self-employed has Bucyrus plant ramps up production. increased from 18.3 percent in 1998 to 22.7 percent in 2008. The study projects that by 2019, there will be 23,688 more TENNESSEE jobs in the Nashville area than workers to fill them. ■ Loews Hotels has opened a 40,000-s.f. business services cen- ter in downtown Nashville that will provide accounting, pay- OHIO: CINCINNATI OFFICIALS TRAVEL roll, purchasing and reservations services for 19 Loews hotels in North America. The new center will employ more than 200 TO CHINA FOR WORLD CHOIR GAMES people when it is fully staffed.

■ General Mills is investing $100 mil- lion to expand its production facility in Murfreesboro, Tenn., which man- ufactures projects for the company’s Yoplait brand. The expansion will add approximately 80 jobs.

■ Global supply chain management company OHL is expanding its headquarters in Brentwood, Tenn., and plans to add approximately 200 new jobs over the next two to three years. Company officials said the expansion is the result of sig- nificant growth in both domestic and international markets. The Cincinnati USA Convention & Visitors Bureau led a contingent of gov- WEST VIRGINIA ernment, business and convention/tourism professionals from the Cincinnati ■ IVS Hydro Inc. has announced expansion plans that USA region to the 2010 World Choir Games in Shaoxing, China. The visit was planned in conjunction with INTERKULTUR, the German-based organ- include the addition of 80 to 90 jobs over the next two years izer of the World Choir Games. Cincinnati will be the first-ever U.S. host of and a $10 million capital investment over the next five years. the games in 2012, and the region is expecting more than 200,000 competitors Based in West Virginia for 38 years, and with corporate offices and spectators from more than 70 countries to attend. Key delegates pictured in Institute, IVS Hydro is a multidivision, multimillion dollar include: Cincinnati CVB President and CEO Dan Lincoln (third from left), national specialty service contractor. Cincinnati Mayor Mark Mallory (fifth from left) and INTERKULTURE Pres- ident Günter Titsch (sixth from left in front).

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KENTUCKY INTELLIGENCER®

A sampling of economic development data

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CORPORATE MOVES New leadership for Kentucky businesses

ACCOUNTING EQUINE MEDIA ■ Chuck Bolton ■ Liz Harris has been named vice presi- ■ Becky Manley Killian has been pro- has joined the dent and executive director of the moted to managing editor of The Corbin Louisville-based Churchill Downs Foundation. Times-Tribune. accounting firm of Jones, Nale & Mat- FOOD SERVICE/HOSPITALITY ■ Marla Bickel has been appointed tingly as a partner ■ Graham Weber has joined The publisher and CEO of Blood-Horse in the firm. Bolton Louisville Marriott Downtown as its new Publications. specializes in executive chef. healthcare, with REAL ESTATE particular expertise Chuck Bolton HEALTHCARE ■ Janie Wilson has been named execu- in long-term care ■ Dr. Wendy F. Hansen has been named tive vice president for the Northern consulting, including Medicare and Medi- chairman of the Department of Obstet- Kentucky Association of Realtors. caid reimbursement. rics and Gynecology at the University of Kentucky College of Medicine. TELECOMMUNICATIONS ADVERTISING ■ Verizon Wireless has named John ■ David Vawter has joined Doe-Ander- ■ Rachel FitzGer- Granby president of the company’s Ken- son in Louisville as executive vice presi- ald has been tucky, Indiana and Michigan markets. dent and chief creative officer. named director of the UK Center for UTILITIES BANKING Rural Health and ■ American Electric Power has named ■ Lytle Thomas REACH Faculty Gregory G. Pauley as president and chief has been elected Liaison for the operating officer of Kentucky Power. president of Her- Danville Region. itage Bank, which ■ Don Mosier has been named chief has 10 locations in ■ Jeffrey P. Win- operating officer of East Kentucky the northern Ken- ter has been Rachel FitzGerald Power Cooperative. tucky region. appointed execu- tive vice president for Louisville-based OTHER ■ Heyward Harri- Kindred Healthcare Inc. Winter will also ■ Nari Kannan has joined V-Soft Con- son and Rob King Lytle Thomas serve as president of the company’s hos- sulting Group in Louisville as chief have joined Wells pital division, succeeding Benjamin A. delivery officer. Fargo’s Louisville commercial banking Breier, who has been named Kindred’s office as senior vice president and rela- chief operating officer. ■ Jonathan “Jon” Steiner has joined the tionship manager. Tom Jones has been Kentucky League of Cities as the orga- named assistant vice president and rela- ■ Julie Buchanan has been named exec- nization’s new executive director. tionship manager. Kari Weiter has utive director of the Ephraim McDowell joined the company as assistant vice Health Care Foundation. ■ George Ward has been named as the president and senior credit analyst. new executive director of the Univer- LEGAL sity of Kentucky Coldstream Research EDUCATION ■ Deanna M. Campus. ■ Louisville Mayor Tucker, Carol S. Jerry Abramson, Petitt and James ■ John Harris has been appointed as who is scheduled to R. Chadward the new executive director of The leave office in Janu- Kessinger were Clifton Center, a nonprofit conference ary, will join Bel- recently named and performance venue serving the larmine University partners in the Louisville metro region. as an executive-in- Louisville firm of residence. Schiller Osbourn ■ Coby DeVary has been named chief Barnes & Maloney operating officer for Lexington-based ■ Dr. Barry Bleidt Jerry Abramson PLLC. Deanna M. Tucker Global Fitness Holdings LLC dba Urban has been named Active Fitness. dean of the Midway College School of Pharmacy. ■ Paul Rooke has been named presi- dent CEO of Lexmark International. ■ Kathryn Costello has joined Western Rooke succeeds Lexmark Chairman Kentucky University as vice president and CEO Paul Curlander, who plans to for development and alumni relations. retire in spring 2011. Costello replaces Tom Hiles, who left WKU this summer to become vice presi- ■ Rob Samuels has been named chief dent for institutional advancement at operating officer for Loretto distiller Bowling Green State University in Ohio. Carol S. Petitt James R. C. Kessinger Maker’s Mark.

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ON THE BOARDS New leadership for Kentucky organizations

KEENELAND Johnson Inc.; Kevin Flanery, president Julie Janson, Duke Energy Corp. – Ken- ■ Antony Beck and Bill Farish have been of Churchill Downs Inc.; James O’Mal- tucky and Ohio; Elizabeth McCoy, elected to Keeneland’s board of directors. ley, director of corporate affairs for Planters Bank; and Mike Owsley, Eng- Beck is president of Gainesway Farm in Brown-Forman; and Michael Howerton, lish, Lucas, Priest and Owsley. Lexington. Farish is general manager of vice president and general manager of Lane’s End Farm in Versailles. the Louisville Marriott Downtown. NATIONAL ORGANIC BOARD

Keeneland/Z photos ■ Mac Stone, executive director of the KENTUCKY CHAMBER Kentucky Department of Agriculture’s OF COMMERCE marketing office, has been named to ■ Deb Moessner, president of Anthem the National Organic Standards Board. Blue Cross and Blue Shield in Kentucky, The 15-member board is responsible for has been elected chair of the 2011 Ken- making recommendations regarding tucky Chamber of Commerce board of organic food production and handling. directors. Moessner succeeds 2010 Chair- man Bill Jones, community division man- SOCIETY FOR MARKETING ager for U.S. Bank. Chair-elect for 2012 PROFESSIONAL SERVICES ■ Anthony Beck Bill Farish is Luther Deaton, chairman, president The Kentucky Chapter of the Society and CEO of Central Bank and Trust. for Marketing Professional Services has Serving on the 2011 executive committee elected the following individuals to their GREATER LOUISVILLE are: Treasurer Mary Jean Riley, North 2010-2011 board of directors: President CONVENTION AND VISITORS American Stainless; Chris Herman, – Carol Blevins-Ormay, CMTA Inc.; BUREAU COMMISSION LG&E/Kentucky Utilities; James Booth, President-elect – Stacey McChord, ■ Louisville Mayor Jerry Abramson has Booth Energy; Nick Rowe, Kentucky RossTarrant Architects; Past President – appointed the following people to the American Water; Mary Pat Regan, AT&T Brooke Shepherd, EA Partners; Treas- Greater Louisville Convention and Visi- Kentucky; Dr. Keith Gannon, Boneal urer – Sarah Young, EOP Architects; tors Bureau Commission: Lynn Houston Inc.; Dan Bork, Lexmark International; Secretary – Jamie Draper, ECSI Engi- Moore, logistics engineer for Houston- Jeffrey Bringardner, Humana-Kentucky; neering Consulting Services; November Lane 1-24.qk:Layout 1 11/7/10 9:01 AM Page 20

LANE ONE-ON-ONE Kentucky’s leaders express their opinions

THE CHAIRMAN WRAPS UP TWO superbly, especially in relationships with other equestrian associations around the MORE MAJOR KENTUCKY PROJECTS world and with Princess Haya Bint Al Hussein, president of the Fédération Jim Host discusses his leading role in organizing the Alltech FEI Equestre Internationale. World Equestrian Games and building the KFC Yum! Arena

BY ED LANE

Ed Lane: Our last One-on-One interview From an attendance as well as a spon- with you – “I Can’t Sleep Fast Enough” – sorship point of view, I think Pearse Lyons was published in June 2006 and was an is the total reason that the world games overview of your career in business, civic were successful: 507,000 people attended and government entities prior to your compared to earlier estimates of 350,000 decision to step down as the secretary of people two to three months before the John Long Jamie Link the Kentucky Commerce Cabinet. In that games. The success was all because of interview, you indicated you would con- what Pearse did; how he stepped up and EL: Jamie Link, CEO of World Games tinue to assist on the Louisville Arena and invested his money. The Commonwealth 2010 Foundation the Alltech FEI World Equestrian Games. Club alone generated more than $3 mil- JH: Jamie Link was the right person at the right time. He was a stabilizer, a facili- Jim Host tator and conciliator. He was able to bring Since beginning his career as a sports broad- people together. He had a great manner caster in 1957, Jim Host has played an active role about him and turned out to be just fine in Kentucky business and government. His work in the job he did. in broadcast communications and experience in owning his own real estate, building and insur - EL: John Nicholson, executive director of ance companies led to his appointment in 1967 the as Kentucky’s commissioner of the department JH: John is very passionate about the of public information and department of parks park and had it in pristine condition for under Gov. Louie B. Nunn. In 1972, Host the games. We couldn’t have had a bet- founded Jim Host & Associates (later renamed ter person than him in this position. Host Communications), a sports broadcasting company that has since expanded to include sports marketing and is now part of IMG, an international sports marketing company. In 2003, Host was named Kentucky’s secretary of commerce under Gov. , a position he held until choosing to step down in Oct. 2005. Host is currently serving as chairman of the Louisville Arena Authority and is the founding chairman of the Alltech FEI World Equestrian Games, which recently concluded in Lexington. John Nicholson Marcheta Sparrow What is your assessment of the World lion in revenue that the games didn’t have Games 2010 Foundation’s performance before Pearse created the idea. EL: Marcheta Sparrow, secretary of the prior to and during the 16 days the FEI Pearse may have promised a lot, but Kentucky Tourism, Arts and Heritage games were operational? he over-delivered. Without him, these Cabinet JH: Extraordinarily good. From a logis- games would not have happened. He JH: I don’t know anybody who could have tics point of view, it was far better than I was superb and poured his heart, soul been more supportive. Marcheta was in expected. The competition events, and company into the world games. my old job, and she and I talked a lot which are the reason you conduct the through this process. She went over and games, were flawless. The international EL: Could you comment on some of the above. The Kentucky Experience alone, competitors kept talking about how other key people involved in the FEI which was her initiative, was superbly great the footing was. In Aachen in World Games? done. I was so proud of the way our state 2006, the stadium had grass. After a was projected through the Kentucky Expe- rain, it was so slipper y that the footing John Long, CEO of United States rience. Visitors from all over the world got was not very good. The footing at the Equestrian Federation a positive picture of Kentucky. Kentucky Horse Park was spectacular. JH: John took my place as chairman of From an operational point of view, the World Games 2010 Foundation Board games came off superbly. when I stepped down. He performed Continued on page 22

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LANE ONE-ON-ONE

Continued from page 20 the funds set aside to finish the Rolex enjoy the world games, and it turned out Stadium. Gov. Steve Beshear, when he to be a smashing success (175,000 came into office, immediately knew attended Spotlight Lexington over 18 where the funds were. Gov. Beshear days). So much so that Lexington should gave a lot of credit in the opening cere- think about doing Spotlight more often, mony to Gov. Fletcher for the role he because the city has the ability to bring and his administration played in bring- people together downtown. ing the games to Kentucky. It was similar to the smooth transition EL: Putting the Louisville Arena deal at the Louisville Arena Authority. The two together during a recession and a melt- efforts are classic examples of how Ken- down on Wall Street was a real chal- tuckians should work in harmonious rela- lenge. Perhaps you could comment on Alston Kerr Cabby Boone tionships for things that are good for the some of the issues that faced the state. We didn’t miss a beat, and the state Louisville Arena Authority. The arena EL: Alston Kerr and Cabby Boone, benefited as a result of it. board: You have consistently said the Kentucky Horse Park Board & Founda- board members were vital and key com- tion chairs, respectively, and First Lady EL: What will the long-term benefits of ponents to the successful completion of Jane Beshear the world games be to Kentucky, Central the arena project. JH: Alston and Cabby and, of course, Kentucky, the equine industry and the JH: The arena board’s ability to help me First Lady Jane Beshear are close, and horse park? in strategic moves on an ongoing basis was it’s hard to tell how many hours they JH: First of all, Kentucky established itself probably the reason why the arena turned worked in terms of making sure the as a center of horses for the world with the out to be so successful. A good example world games were a success. They FEI world games. We also established the was our construction committee, which worked tirelessly. state as the center for equestrian sport in was chaired by Dan Ulmer. None of us Jane Beshear the United States. The Alltech Arena has knew anything about the construction put her heart and already booked 33 events that have never firms that were submitting (RFQ soul in it. Jane been here before, so the long-term eco- responses) and so we inter viewed five or worked harder on nomic benefit will be significantly greater six and narrowed it to two. During the making the games than that created by the 16 days of the scoring process, we all sat three chairs successful than any- world games. apart because I wanted that process to be body I’ve ever seen The new facilities were designed to done where everyone would score (sepa- in public office. accommodate the long-range needs of the rately) and wouldn’t talk to anybody else. She was there every horse park. Most indoor events will attract Well, we had no clue about Morenson day. She was super Jane Beshear 2,000 to 5,000 people. The Alltech Arena (Construction of Minneapolis); we had helpful in every- was planned for these size events. The never heard of them. thing she did. I even wrote her a personal Rolex Stadium has 8,500 permanent seats I’d start the meetings by saying “you note to tell her how much she meant to and with temporary seats it can accommo- have an hour.” Everybody’s going to the games and the state. date up to 30,000 spectators. have the same time. We told them the questions we wanted answered in EL: The initiative to recruit the world EL: Any other comment on the world advance. I asked the firms to save 20 games was thr ough Gov. Ernie games you would like to add? minutes for follow-up questions and Fletcher’s administration while you were JH: The 6,000 volunteers of the games. answers. Morenson was so impressive serving as secretary of commerce. The There were a number of horse enthusiasts in terms of their presentation. They management of the games was then who came from all over the United States presented a building information-man- transferred to Gov. Steve Beshear’s to volunteer, but the vast majority were agement system utilizing 3-D model- administration. How was the transition local residents. Rotary Clubs furnished all ing. 3-D modeling was the winning between administrations? the concession help and did it all as a vol- edge because nobody else presented JH: The transition was seamless. Gov. unteer effort to raise money for PolioPlus. that technology. Because of that tech- Fletcher started the initiative; he sent If I heard one comment – and I was there nology, when we had the one accident me to get it done. Without his commit- every day – I heard it a hundred times on the back of the project Morenson ment, the horse park wouldn’t have had every day about how friendly the volun- was able through modeling to immedi- the bond issue for the Alltech Arena or teers were, how well trained they were, ately transfer the workforce up front so what a great job they did with ever ything that we didn’t lose any time and fin- from traffic to parking to ticket taking to ished a month early. It probably saved concessions to the basic events. It takes a the Arena Authority $7-8 million by huge number of volunteers to make an having 3-D modeling compared to not event like this work, and I was so proud of having it. our community and our state for that. Early on when Mayor Jim Newberr y EL: Design talked about doing a separate event in JH: Again the authority went through the downtown Lexington, I was not necessar- same kind of selection process. We put an ily enraptured by the idea. But it was a RFQ (request for qualifications) out and very strategic move. It gave people in we got a response from a number of Gov. Ernie Fletcher Gov. Steve Beshear Kentucky a place to come for free to national architectural firms. We narrowed

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it to three and interviewed HOK (Sport), time people compared to 90 if we were aside $750,000 a year out of its operat - Ellerbe Becket, and Rosser International having to operate as a standalone. Two, ing budget to compensate Freedom Inc. HOK brought in their A team. None the Fair Board had the ability to run Hall if it has a revenue shortfall due to of us knew them; there were no personal more efficiently. Plus the Fair Board and competition from the new arena. relationships with any of the firms. The the Arena Authority would not prosti- construction committee scored them all, tute each other if some group says the EL: Construction picked HOK (the firm recently changed arena’s cost is too much and they want JH: A construction manager at-risk is its name to Populus), and we picked the to go to . the best way to build a major project in best one. They are the best in the world. The Arena Authority has an agree- my opinion. With a construction man- ment with the Fair Board that bench- ager at-risk, the Arena Authority had a EL: Public art in the arena marks 2009 revenue for Freedom Hall. guaranteed price and a 15 percent con- JH: The Arena Authority provided fund- The Arena Authority is going to set tingency. The CM was required to com- ing for a beautiful stainless steel sculpture on the first level that will be installed next week. The artist was selected through a competitive process administered by the Kentucky Arts Council. Yum contributed a beautiful piece of art outlining Yum’s graphics. The James Graham Brown Founda- tion made a huge contribution to the plaza because of the extensiveness of the plaza’s . It’s the largest plaza ever build on any public arena in the U.S. and it has connectivity to down- town. There is a huge fountain in the plaza and a natural amphitheatre that creates an outside entertainment venue. Norton Healthcare has put an imme- diate-care facility in the plaza to service the 60,000 people downtown.

EL: Naming rights JH: Over a period of time the board talked to a dozen entities. We got serious in con- versations with three but hoped it could be a local company. I had begun conversa- tions with Jonathan Blum and David Novak of Yum five years ago; David, in fact, expressed an interest then. Gov. Fletcher wanted to appoint David Novak to the task force. David made a comment that he might be interested in the naming rights and didn’t want to be on the task force because of a potential conflict. We could never get together on a price, so Yum went away for a period of time. I instinctively felt and knew that Yum had an interest. Our hope was that the Arena Authority would get $40 million over the 30 years for the naming rights; we got $13.5 million over 10 years.

EL: The management of the arena JH: To begin with, the board interviewed management firms from all over the coun- try. In the public forums, it became obvi- ous to the authority and its committee that the Kentucky Fair Board was the most qualified for a couple of reasons. One, the Fair Board (with offices in Louisville) could supply talent to help run the arena that wouldn’t be full-time, so the arena ended with about 50 full-

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LANE ONE-ON-ONE

petitively bid all the contractors. Moren- that touch Louisville) was 60 percent (of hockey stick. I-High, by the end of son had to present the three best pro- the work); we achieved 63 percent. The October, will have about 750,000 posals to me, how they scored them and goal for Kentucky/Southern Indiana- monthly unique visitors with an aver- why they recommended them. based work was 75 percent; we did 84 per- age stickiness of six minutes per visita- The thing I was looking at more than cent. The goal for minority hiring was 20 tion. The site has the ability to provide even the price was do the contractors percent; we did 23 percent. The goal for broadband capability to high schools adhere to the minority hiring goals. women-owned business was 5 percent, we and teen audiences and to do live and Each contractor and subcontractor was did 5 percent. archived streaming videos of sports required to sign a contract that said they We also hired unskilled, underem- events. It’s very unique and nobody understood the minority goals. PC ployed and unemployed workers. This is else has it. I-High is patenting a thing Sports was the owner’s rep and main- a classic example of where we utilized called “ad trigger,” which is the ability tained data on minority hiring goals. federal funds that the governor had dis- to insert a commercial in the middle of cretion to spend, put these funds in this a game. EL: Site selection Pipeline Project (minority worker train- I-High is a web-based company, a JH: The governor’s site selection task ing), administered it through Kentuck- video company, and a student place- force went through an extensive process iana Works and confirmed that 138 ment or profile company – all based of evaluating all of the sites that were workers have been employed who previ- around the teen experience. We are suggested and selected. ously had little chance. Some of them endorsed by the National Association of The first time I looked over the prop- had criminal records, but the point was College Directors of Athletics. They erty needed for the arena site, I was with they were all given equal opportunity to have never endorsed anybody before. Vic Staffieri (CEO of E.ON US) in his work, and some of them became My first day on the job will be tomorrow office (Note: It overlooks the site of the apprentice workers, carpenters. Why at 8 a.m., and I’m committed to be 24/7 new arena and was occupied by a major hasn’t there ever been a program like on it. That’s what I’m going to do. ■ substation). He told me I was crazy. But that in place before? he said if this is something that can help Editors Note: The Lane Report’s June Louisville and the state, then E.ON is on EL: I’m sure you still have some loose 2006, One-on-One interview is available at board and all we ask is that we get dollar- ends remaining on the arena project, lanereport.com for readers who may want to for-dollar replacement value. All I said is, but you must have promised to take gain more insight on Jim Host’s early career, “We’ll do that as long as E.ON has an your wife, Pat, to some exotic place. which started as a WVLK AM radio spor ts outside engineering firm that can certify What are your “fun” plans once the broadcaster with Hal Rogers (before he was a the cost, and the Arena Board can hire a wraps on the arena project are done? U.S. Congressman) in the 1950s. firm that certifies what they certified.” JH: We were going to , but I have He said E.ON is not interested in mak- a company I cranked back up and ing money; all it’s interested in is being started and it’s going to be hugely suc- Ed Lane (edlane reimbursed so ratepayers don’t have to cessful. Two months ago I agreed to be @lanereport.com) pay this expense. The site acquisition the CEO of it again and so I’m consci- is chief executive of cost was $63 million. entious about making sure it works. Lane Consultants, It’s the fastest growing company in Inc. and publisher of EL: Kentucky vs. out-of-state contractors the high school segment in the dot- The Lane Report. JH: The goal the Arena Board set for local com space. (A chart of) its ramp-up in business in the MSA (that’s all the counties the last six months is (shaped) like a

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COVER STORY

Visitors enter the KFC Yum! Center the evening of Oct. 19 for open house tours of the new downtown Louisville arena. Four days of free but ticketed guided tours for area residents quickly “sold out.” Ralph Homan photo

Louisville Arena Board Creates State’s New Economic Engine

burg’s new Consol Center. “It’s nicer than KFC Yum! Center moves from most NBA facilities in terms of technology.” the drawing board to reality Perhaps most impressively, the Louisville arena, whose silver rolled- edge roofline is inspired by the nearby BY MARK GREEN Falls of the Ohio River, was completed on budget and on time. OUISVILLE has a gleaming courses provide; for inviting lounges. And it immediately began bringing new, high-octane economic Additionally, there’s praise for making crowds downtown: The Eagles filled the engine freshly installed sure local companies, including those house Oct. 15, and University of Louisville downtown: the KFC Yum! owned by minorities and women, got basketball fans sold out the 22,090-seat Center. After a few decades lots of subcontracts; for creating a suc- arena for the annual Red-White scrim- Latop local leaders’ wish list, last month cessful, effective minority worker train- mage Oct. 24. The Cards’ 22-game exhibi- beaming officials cut the ribbon, held a ing program; even for traffic tion and regular-season home schedule celebratory evening gala and put on its management measures. began Oct. 31 with a visit from Northern first public event, a concert by rock “It’s the best college (sports) facility in Kentucky University. superstars The Eagles. the country, by far,” said Paula Yancey, lead Now that it’s finished, the $238 mil- project manager with PC Sports, the Hous- lion facility is attracting superlatives for ton firm that served as owner’s representa- its unique, graceful, modern design; tive during design and construction. There’s no measure yet of spinoff eco- for its integration into the heart of Some suggest the KFC Yum! Center nomic activity, but arena crowds are downtown; for great sight lines inside is the best arena of any sort in the expected to generate plenty of fresh the arena and the stunning river and nation, but there is argument in Pitts- spending downtown at the many restau- skyscraper views its glass-walled con- burg, which christened a $321 million rants, bars and hotels nearby – a contrast NHL facility in August, and in Orlando, from 54-year-old Freedom Hall at the rela- See it built which opened a $480 million NBA tively more remote Kentucky Fairgrounds. To see images of the arena site, palace on Oct. 1. And that spending means not only private including a time-lapse presentation “It’s state of the art,” says Mike Clay , a profits but public tax dollars, which arena of its construction, visit oxblue.com/ principal and project leader for sports organizers point out flows from Louisville pro/open/ksfb/louisvillearena architect , chief designer of to every corner of Kentucky. Only 60 cents Louisville’s arena – Populous also did Pitts- of each state tax dollar generated in

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KFC Yum! Center Facts

Groundbreaking: Nov. 28, 2006 6,100 s.f.; President’s Room, 4,600 Official opening: 1 p.m. Sunday, s.f.; Spirit Room,12,000 s.f. Jefferson County returns there, local and Oct. 10, 2010 Restrooms: 22 men’s (171 facilities), 22 state officials report. Meanwhile, the arena Cost: $238 million women’s (235 facilities), 17 family already has stimulated some $55-60 mil- Location: On the Ohio River in Other features: 1½ acre entry plaza; lion in downtown entertainment and hos- downtown Louisville, bordered by 760-car underground parking; pitality industry investment, with an Second, Main and Third streets administrative offices (7,500 s.f.); additional $200 million-plus proposed. and River Road. 2 first aid stations; 6 passenger Rising tax revenues generated by Size: 721,762 s.f. elevators; 9 escalators; full-size growing activity in a 6-square-mile Levels: 7 (event floor, lobby, main basketball practice court; press district around the arena, in fact, will concourse, suite mezzanine, suite, lounge, workroom, interview help pay off bonds for the arena project. upper concourse, catwalk) room; 4 loading docks; trash dock Financing plans call for at least $ 6.8 mil- Seating: 22,090 maximum for Anchor tenant: UofL Basketball lion a year in tax-increment-financing basketball – 9,100 lower; 590 suite Owner: Louisville Arena Authority (TIF) payments toward bonds. mezzanine; 1,850 suite; 10,550 Operator: Kentucky State Fair Board Taking the facility from drawing upper (71 suites on two levels) Owner’s representative: PC Sport board to reality required feats of vision, (212 wheelchair seats with 212 Construction managers: Mortenson leadership, management, hard work, companion seats) Construction Co., Minneapolis; determination, dedication, coordina- Locker rooms: home men’s, home Mathis & Sons, Louisville tion, cajoling and cooperation over the women’s, visitor’s, officials men’s, Architect: Populous, Kansas City, Mo. course of five and a half years. There officials women’s, employee (formerly HOK Sport) was high-finance drama as well. men’s, employee women’s, 5 aux- Associate architects: Louis and Significant credit goes to the iliary, 5 star dressing rooms, Henry Group, Louisville; C.L. Louisville Arena Authority (LAA) “green” room Anderson Architecture, board, a 17-member body populated Restaurants/lounges: Burnett’s V Louisville; Jill Lewis Smith with 10 appointees by former Gov. Ernie Lounge, 3,900 s.f.; Evan Williams Architects, Louisville Fletcher, five by Louisville Metro Mayor Bourbon Bar, 3,900 s.f.; Kentucky Graphic design: Swope Design Jerry Abramson, and two ex-officio Ale Taproom, 2,300 s.f.; Group, Louisville members who represent the Louisville Woodfoord Reserve Club, 8,750 Civil engineer: Qk4, Louisville; Clas- Metro Council and the Kentucky State s.f.; Premium Box Lounge, 5,800 sickle, Louisville Fair Board, which is now operator of the s.f.; Terrace Club, 5,900 s.f. Landscaping: Vivian Llambi & arena. They had the skills and gravitas Concessions: 27 permanent, 24 Associates, Louisville to pull it off and avoid political pitfalls portable, 2 novelty Food service: Centerplate, that ensnared previous efforts. Meeting rooms: Legends Room, Stamford, Conn. “As Louisville goes, so goes the com- 6,400 s.f.; Hickman/Camp Room Naming rights partner: Yum! Brands monwealth,” Fletcher said. It is Ken- tucky’s economic leader and generates the most tax revenue, with 40 cents of Maximizing economic activity was the Host, who also had led the effort a each dollar in state taxes paid in Jeffer - winning argument for positioning the generation ago to build in son County flowing out to and benefit- arena on the river front downtown rather Lexington, was given chairman’s duties ting the other 119 counties. than at the Kentucky State Fairgrounds for the subsequently created LAA site where Freedom Hall was built 54 years board, which then had to shoulder the ago or on the UofL campus, both of which heavy lifting, beginning in January had their strong proponents. 2006. Fletcher and Abramson collabo- An analysis conducted by an outside rated closely on picks for the board to firm “clearly pointed to downtown,” craft a team with expertise in business, Fletcher said, “and that wasn’t unexpected sport, finance, political insight and because you have a much better ability to community knowledge. And they Staff photo attract folks who will come in and do much loaded the board with people who, as a more than just go to the game and leave, result of their careers and lives, com- which they would have at the fairgrounds. mand respect. They will come in, maybe spend the night, Weighty decisions included choosing visit the restaurants and Fourth Street Live among three sites and hiring key project and a lot of other activities down there.” coordinators such as an architect, a con- Fletcher launched the project in 2005. struction manager, and a firm to negoti- He formed a task force chaired by his Lt. ate and manage contracts and costs. Gov. Steve Pence and co-chaired by his And then there was the twin task of Commerce Secretary Jim Host and includ- coming up with a budget and financing. ing public and private sector notables such As architect, the board chose Popu- as U.S. Sen. Mitch McConnell, Abramson, lous (formerly HOK Sport), a global University of Louisville Athletics Director sports facility specialist based in Kansas Tom Jurich and Papa John’s Pizza founder City with nearly 1,000 projects under its John Schnatter. With the task force having belt. Populous took on Louis and Henry studied and blessed the project, Fletcher Group, C.L. Anderson Architecture and The arena floor being set up Oct 14 for the KFC persuaded the 2006 General Assembly to Jill Lewis Smith Architects, all of Yum! Center Gala taking place that evening. put up $75 million. Louisville, as associates for the project.

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COVER STORY

The construction manager was daily at his Lexington home, read several gan, a lawyer and political science Mortenson Construction of Minneapo- newspapers and was on the road in time adjunct professor, exhibited under- lis. A high-tech 3D image modeling sys- to be in Louisville by 6 a.m. Those days standing of information technology tem Mortenson uses was a key to it often lasted into the night. He used issues, Host added an IT Committee winning the contract, Host said. He esti- no office, requiring only a spot to use his and made Corrigan its chair. mates efficiencies the imaging system cell phone and to park his inches-thick The Chairman said “quite a bit” of brought to coordinating construction binder of paperwork. his role was to be a cheerleader and saved $7-8 million. Resisting advice to get an apartment motivator-in-chief for the group. The LAA hired Houston-based PC Sports in Louisville, Host said he preferred most difficult challenge of the entire as its owner representative. As project returning to his own home at night, plus project, he said, came on July 22, 2008, manager, PC Sports negotiated and the time driving alone was when he got the eve of a planned bond sale to put managed design, consultant and con- a lot of thinking accomplished. the comprehensive financing in place. struction contracts, tracked project “He is very detail oriented and As he was arriving back in Lexington, costs, provided plan review and value involved in everything from minute Host received a call that the company analysis, and more. details to global issues,” Yancey said. “He insuring LAA’s $300 million-plus in vari- LAA board members provided input on was extremely involved, more so than able-rate bonds had just been placed on design elements for the arena project after any client I’ve had.” credit watch by the Moody’s bond rating making site visits to various new sports facil- Clay agreed. agency – the interest rate and LAA’s ities in the region and cherry-picking their “Jim Host made it happen,” he said. repayment cost suddenly were beyond best characteristics. However, Host points “I admire the guy. I’d work for him the bounds of its budget out, board members made these visits on again in a heartbeat.” “At which point,” Host recounted, Staff photo “they said, ‘What’re you going to do?’ and I said, ‘I may have a bourbon and water, maybe two, then I’m going to go to bed. And tomorrow morning, like I’ve been doing, I’ll get up at 4 o’clock, I’ll leave the house at quarter to 5 and be in Louisville by 6 to 6:10, and we’ll figure it out.’ And we did.” A revised, fixed-rate bond issue financing the arena closed Aug. 25. Renegotiation with building contrac- tors and the bond insurer cutting $15 million and $12 million in direct expense, respectively, translated to $60 million less in bonding requirement. Key to completing the deal was Louisville-based investment firm Hilliard Lyons agreeing to take a final, subordinate and uninsured segment of taxable bonds. Additionally, with the world financial system lurching toward a Fall 2008 crisis that shut down all deals, LAA pushed its The spacious front lobby of the arena offers The Chairman, as he came to be called sale through during U.S. bond market stunning views of neighboring downtown buildings. during the project, said he did not outline makers’ traditional vacation period. As a list of specific steps and goals at the out- a result, Host said, the $349 million in set. He did, however, have decades of expe- bonds drew more than $1 billion in pur- their own dime and received no expense rience directing projects and campaigns, chasing interest, driving their yield compensation. And none accepted even a and creating and building organizations. down and saving another roughly $10 free meal from a project vendor. Host, 71, had joined the Cabinet of Gov. million. “The chairman (Host) wanted a build- Louie Nunn at age 29 after having created Finding and hitting that window of ing that was state-of-the-art technology,” a Kentucky sports radio broadcasting net- opportunity to sell the bonds was the Clay said. Yum! Center has Internet proto- work for which he did play-by-play. Host arena project’s toughest challenge, col data and communications, its video Communications, a company he formed in Mayor Abramson said. screens and scoreboards are high-defini- the 1970s, became one of the nation’s top Multiple revenue streams will pay off tion, its TV studio is HD, and visitors sports marketing operations before he sold the bonds over 30 years. UofL basketball is should find a 3G cell service signal from all it more than a decade ago. locked in as top tenant. All but two or carriers throughout the structure. After the LAA took shape, Host cre- three of the 70-plus suites were sold by Host steadfastly deflects all suggestions ated committees and assigned chairs mid-October. Sponsorships for arena that he deserves more credit than any and duties sometimes based on obvious products, services and advertising totaled other LAA board member. He does admit, backgrounds and other times reacting $48.8 million, foremost being Y um! though, that during the five-plus years of to ideas and issues that surfaced at meet- Brands’ naming rights deal: $13 million overseeing the project he was up by 4 a.m. ings. When board member Tim Corri- for the first 10 years. TIF revenue ranging

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KFC Yum! Center is on the downtown Louisville riverfront within a few feet of both the Clark Memorial Bridge and River Road.

from $6.5 million to $10.8 million yearly is the most significant stream. Now that the KFC Yum! Center is com- plete, one aspect of the project that LAA members are especially pleased with is its Pipeline Project. The initiative recruited, trained and hired minorities and women for construction work and looks likely to Ralph Homan photo have an ongoing, legacy impact. It helped curriculum covering such topics as math, “This group meant more to me than the arena project surpass its aggressive industry awareness, blueprint reading, all the rest of the project,” Host said, goals for women and minority business construction tool use, safety, first aid, adding that achieving WMBE goals “did- enterprise (WMBE) participation. resume writing, interview techniques, n’t happen by accident” and required Approximately 2,000 workers put in communication and teambuilding. close monitoring and verification “of 1.55 million hours, and $217.8 million The National Urban League every number along the way.” in contracts for work were let. The LAA expressed strong interest in the Pipeline An associated result was improved set goals of having 20 percent minority Project, said Juanita Sands, director of community relations. and 5 percent women workers, and the Center for Workforce Development. “There is a newfound trust because achieved 23 percent and 5 percent, “I think this program is really going to this is a project that did what it said it respectively. Subcontracting goals were take wing across the countr y,” Sands said. was going to do,” said LAA board mem- 27.5 percent WMBE participation, and At a wrap-up meeting of the LAA ber William Summers V, who chaired 30 percent ($65 million) was achieved. Affirmative Action and Labor Commit- the committee. “Now we have a new The Pipeline Project, a collaboration tee, Host said he hopes Pipeline efforts business as usual.” with the Louisville Urban League and a continue for the Museum Plaza project Beyond WMBE, the project also set council of 15 construction trade unions when it resumes and that he wants to overall community participation goals administered by KentuckianaWorks, pro- see it become a template used on proj- for keeping hiring and contracts within duced a training program with a 120-hour ects all over Kentucky. the region: that 60 percent of workers November Lane 25-52.qk:Layout 1 11/7/10 8:56 AM Page 30

COVER STORY

would be Louisville Standard Metropol- itan Statistic Area residents and 75 per- cent would be Kentuckiana residents. Final overall participation was 64 per- cent and 84 percent, respectively. Arena project leaders are unanimous that it also improved relations between Louisville and the rest of the state as well as bridging political partisan boundaries. The Louisville and Lexing- ton chambers of commerce have begun taking joint fact-find trips, Host cited as an example of closer ties. Former Gov. Fletcher said his enthusi- The Affirmative Action and Labor Committee of the Louisville Arena Authority holds its final meeting asm for initiating the project “was a vision, Oct. 14. The arena project met or exceeded all its goals for contracting and hiring women, minorities if you will, that I ‘caught’ from Louisville.” and local companies and residents. The state’s financial and political help with the project improved the Louisville busi- Louisville Arena Authority Board ness sector’s outlook, Abramson said. “It has enhanced our relationship,” ERE is a look at the 17 mem- mayor and secretary of the Louisville the mayor said. “You always hear folks in bers of the Louisville Arena Finance and Administration Cabinet. the community say we pay a dollar in HAuthority and the roles each First president of what is now Greater taxes to Frankfort and we only get 48 has played in guiding the KFC Yum! Louisville Inc. Owned Midwest Con- cents back, especially business folks. Center project to completion: struction Inc., Secretary of the Execu- This is a real shot in the arm.” tive Cabinet and state budget director And there is growing understanding Jim Host, for Gov. . Execu- outside Jefferson County about the Chairman tive assistant to state Senate President financial role the commonwealth’s Secretary of Com- Joe Prather for six years. largest city plays. merce for Gov. Hayes brought key financial expert- “I learned that Louisville is a great Ernie Fletcher, ise as well as local and state political city,” Host said when asked what he’d founding chair of knowledge to the LAA. He was Chair- learned during the arena project. “I the Alltech 2010 man Host’s confidant early on. learned that as Louisville goes, so goes FEI World Eques- Kentucky. I learned that the people of trian Games. Larry Bisig Kentucky don’t have a clue about what Appointed at age A Louisville native Louisville means to Kentucky.” 29 to Gov. Louie Nunn’s Cabinet to and UK graduate. Host, an alumnus of the University of head Department of Public Informa- Founder of what Kentucky, said he received questions “from tion, then Department of Parks. Repub- is now Bisig my Big Blue brethren” as to why he was lican nominee for lieutenant governor Impact Group building an arena for UofL. His answer, he in 1971. UK and pro baseball player. marketing firms said, was that he was doing it not for UofL Created and did play-by-play for a UK with expertise in but for the commonwealth. sports radio network. Founded Jim Host sports radio and “We’ve got to do a better job of under- & Associates sports and tourism market- music festivals. standing that the strong of this state, the ing company. Led project that built Founding vice-chair of the Greater Louisvilles and Lexingtons, have got to be Rupp Arena. Widely honored. Louisville Sports Commission. continually developed and pushed Host was tapped to lead the LAA Bisig brought important marketing because it helps the rest of the state. because of decades of success directing and business to LAA. His company cre- large projects, extensive business and polit- ated and donated the LAA logo and Louisville Arena Task Force ical experience, understanding of sports provided other support. (predecessor to LAA) and marketing, and willingness to work Lt. Gov. Steve Pence (non-voting, tirelessly. The lobby of KFC Yum! Center is Ulysses “Junior” chairman); U.S. Sen. Mitch named Host Hall, the only piece of the Bridgeman McConnell; U.S. Rep. Anne M. project done without his knowledge. Former UofL and Northup; Mayor Jerry Abramson; 12-year NBA bas- UofL Athletic Director Tom Jurich; Larry Hayes ketball player. Commerce Secretary Jim Host Secretary of the Owner/president (vice chairman); state Sen. Dan Seum; Cabinet for Eco- of Bridgeman state Rep. Larry Clark; Councilman nomic Develop- Foods Inc. with Kelly Downard; John Hindman; James ment and former 156 Wendy’s Patterson; Alice Houston; Eddy Secretary of Gov- restaurants. For- Roberts; Cissy Musselman; John ernor’s Executive mer UofL Board of Trustees chairman. Schnatter; Clestine Lanier; Bill Cabinet for Gov. Serves on the boards of Fifth Third Samuels; Ron Carmicle Steve Beshear. Bank and the Louisville Convention Vis- Former deputy itors Bureau.

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Bridgeman is a highly respected leader Eric Gunderson who brought sports knowledge, strong President of Gun- Committee Chairs business expertise and important ties to derson Market- Affirmative Action & Labor: UofL and the minority community to the ing; entrepreneur William E. Summers V; LAA. He helped push the Pipeline Project. and community Construction: Daniel C. Ulmer Jr.; leader, including Executive: W. James Host; Finance Todd L. Blue president of and Budget: Larry Hayes; Co-founder and Young Profession- Insurance: Robert L. Woolery II; CEO of the Cobalt als Association of IT: Tim Corrigan; Media and Public Ventures involved Louisville. Former Relations: Lindy B. Street; Nominat- in downtown marketing director for Tradecast Securi- ing: Junior Bridgeman; Parking and Louisville revitaliza- ties in Houston. Transportation: Eric Gunderson tion. Oversaw met- als trading at his family’s Louisville Scrap Material Co. Active in young executives and economic development organizations. Member of Louisville’s NBA Pursuit Team 2000-2002 that sought a downtown arena. One of the youngest LAA members, Blue brought experience in downtown redevelopment and ties to UofL to the LAA. His deep knowledge of demolition issues was key as the project moved forward.

Tim Corrigan Lobbyist, civil/ environmental engineer and attorney, founder of The Rotunda Group lobbyist. Former engineer and attorney for the U.S. Army Corps of Engineers. Adjunct professor of political science at UofL. Corrigan brought legal and technical expertise to LAA along with ties to UofL. Host created an IT committee and named him chairman when his knowledge of IT issues became apparent.

Reba Doutrick Longtime director of community relations in the cable TV industry, now for Insight Communications. Resident of Valley Station with exten- sive civic and com- munity organization involvement, including the Louisville-Jefferson County Redevelopment Authority. Doutrick was a strong liaison with the state legislature and provided guidance in LAA dealings with state government and the Metro Council. She brought strong knowl- edge of technology and was instrumental in a deal LAA struck with Insight to provide arena communication infrastructure. November Lane 25-52.qk:Layout 1 11/7/10 8:56 AM Page 32

COVER STORY

Gunderson provided marketing skills Musselman, a member of one of grandfather’s sta- and links to the young professional Louisville’s best-known families, brought tion was in the community. He took on one of the expertise in business and community rela- Kentucky Central toughest jobs, heading the Parking and tions to LAA. She gave voice to community Radio Network Transportation Committee, whose work concerns and insight into addressing them. founded by Host led to smooth opening events. in the 1950s. Civic James A. activist. Ronald Carmicle, Patterson Summers Ex Officio Founder of Long brought a connec- Chairman of and John Silver’s, Chi- tion to the young previous Finance Chi’s Mexican professional community. He worked Committee chief for Restaurants and extensively with Host in developing the the Kentucky State Rally’s Hamburg- Pipeline Project and ensuring LAA Fair Board, which ers. Major fran- goals on minority and women’s business now operates the chisee of Wendy’s. involvement were met. KFC Yum! Center; Diverse business longtime president interests. A national 2002 Horatio Alger Daniel C. Ulmer Jr. of River City Development Corp., chairman Award recipient. Active in civic and edu- After a 40-year of Central Bank of Jefferson County, chair, cation issues. A UofL grad. career, retired in Construction Training Institute; a Western Patterson brought extensive business 1994 as chair - Kentucky University graduate. expertise and entrepreneurial vitality to man/CEO of PNC Carmicle is a successful businessman LAA. Intelligent and highly respected, he Bank, Kentucky. with strong expertise in finance and was a carryover from the original task force. Former chair of construction. He brought an under- Patterson has a passion for UofL and an UofL Board of standing of the synergies possible insider’s understanding of concerns. Trustees. Former between existing facilities at the Fair- member of UK grounds and the new arena. Carmicle Tom Owen, Board of Trustees. Former chair of the had a large role in shaping the budget Ex Officio Kentucky State Fair Board. Chair and an and finances of the arena project. Current Metro owner of Louisville Baseball franchise, Council president; owner-investor in several small businesses. Alice Houston UofL history pro- Former Board of Trustees chair for Minor Past president and fessor; former League Baseball. Active in many civic, char- CEO of family busi- Methodist minister. ity and arts groups. Past Louisville man of nesses Johnson- Owen’s council the year by multiple organizations. Houston Inc., role brought him Ulmer brought extensive business and Active Transporta- to LAA. He repre- finance expertise, community knowledge, tion Co. and Auto- sented Metro Council concerns and pro- passion for Louisville and understanding motive Carrier moted making the arena green; it is of sports facility operations. Ulmer was Services Co. Former Energy Star certified. Host’s peer and backup on the LAA, chair of Greater copied on all of the chairman’s emails. He Louisville Inc. Former National Urban Lindy B. Street was Host’s sounding board for strategy and League board member. Wife and mother Marketing and ideas; they met or spoke daily. of UofL assistant basketball coach Wade public affairs Houston and NBA star Allan Houston. executive with Robert L. Woolery Houston brought passion for Louisville, healthcare and Former president strong business expertise and a sports back- financial institu- with McKenzie, ground to the LAA. She acted as a com- tions. Former sen- Woolery and Webb munity conscience and uniter. She helped ior VP with PSC law firm. ensure LAA goals on minority and Columbia/HCA Former assistant women’s business involvement were met. Healthcare. county attorney in Active with civic and charitable boards. Boyd County. A UK Elaine (Cissy) Spirit of Louisville Foundation Bell Fellow. Former Musselman Award recipient. Former Junior League president of Ash- Vice chair of of Louisville president. land Beer Distributors and Big Sandy Risk Management Street brought public affairs expert- River Trucking. Services Corp. ise to LAA along with long civic leader - Woolery brought legal and insurance Former chair of ship. She was the conscience of the industry expertise to LAA. From Host’s Greater Louisville authority. She also influenced the inte- hometown of Ashland, he has known the Inc. board. For- rior design of the arena. chairman for decades. He a voice for Ken- mer president of tucky residents outside Louisville. ■ Harris & Co. William E. Summers V insurance. Long involved in civic and Vice president of Central Bank’ s Mark Green is editorial director sports activities. Member of Louisville Louisville Private Banking Division. His of The Lane Report. He can be Regional Airport Authority. father was a Louisville vice mayor. His reached at [email protected].

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SALES TREND

The Beer Trappe in Lexington stocks more than 450 craft beers from across the United States and around the world.

tion’s Chefs Survey pegged locally pro- duced beers as No. 5 on its 20 top food and beverage trends for 2010. “We offer beer dinner nights with food pairings like mussels and lobster and even beer trips to destinations in Belgium and France,” Ribenboim said. “Beer bars that serve craft beer as the mainstays like mine have made the big dogs in beer wary. We are cutting into their profit margins.” He’s referring to Budweiser brand, Mark Green photo Mark which has given up some market share to the craft beer. Anheuser-Busch InBev ADR (NYSE: BUD) controls about 22 percent of the global market. That makes it the world’s biggest brewer. The brand Budweiser, however, had its mar- ket share fall to 9.3 percent, tanking nearly 10 percent in 2008, according to Beer Marketer’s Insights. Frothy Sales, “The success of craft beer has nothing to do with the general economy on a local or national level. People are just reaching for new tastes,” Ribenboim said. Stout Profits “Exposure to new beers is growing Kentucky brewers, brew bars and restaurants and converting the educated. This is tap into growing interest in craft brews not like wine – you don’t order a fine BY DAWN MARIE YANKEELOV bottle to impress your date. The new bottles we have are RAFT beer sales are the Strictly defined, craft breweries are displayed on the Sergio Ribenboim, owner new sweet spot in local those that produce less than 2 million bar- bar and listed on of Sergio’s World of Beers economies, with sales up 35 rels of beer a year, are at least 75 locally our website. It is percent this year, according owned and do at least 50 percent of their about educating people on what is out to the Beer House, a business in all-malt beers. Much of the there, and everyone’s strategy is different Cregional craft beer distributor. Heading recent craft upswing has focused on com- in the restaurant and bar industry.” out to find a craft beer, your options have plex British and Belgian/French-style Players in the state seeing growth grown considerably the past five years. brews, often on the darker-hued end of the include Alltech’s Lexington Brewing Many local brewers, beer bars, hotels and spectrum, such as ales, stouts and porters. Co. in Lexington, Red Ear Brewing in restaurants now give you a choice on tap Most are stronger than traditional Newport, and Bluegrass Brewing Co., and in the bottle that you seek. American beer – some with two or three Browning’s and Cumberland Brews in Sergio’s World of Beers (sergiosworld- times as much alcohol – and they are Louisville. Also part of the Louisville beers.com) in Louisville, carrying 1,307- pricier, too. From one to many dollars scene is New Albanian Brewing Co. in plus beers on a regular basis with a more per bottle or glass. New Albany, Ind. changing lineup of 42 on tap, is nestled in The Brewer’s Association reports Early September saw the second a location on Story Avenue without a sign, craft beer dollar sales grew 12 percent annual Lexington Fest of Ales. This but since it opened a year ago, beer afi- in the first six months of 2010 versus 9 year’s Louisville Craft Beer Week was in cionados have come from all over the percent growth the same period of the late September, and other events world to experiment and compare their previous year even though the overall around this new trend are bringing in favorite brews. Rate Beer (ratebeer.com) U.S. beer market was declining. That is crowds and fundraising profits, includ- and Beer Advocate (beeradvocate.com) good news for restaurants looking for ing the Louisville Independent Busi- online communities have listed his beer ways to increase sales during the ness Alliance (LIBA) Brewfest July 2, bar as one of the top 10 destinations for national economic slowdown, according and the Kentucky Restaurant Associa- craft beer in the world, according to owner to craftbeerrestaurant.com. The website tion’s Crafted in Kentuckiana Beer Fes- Sergio Ribenboim. reports a National Restaurant Associa- tival Oct. 16.

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SALES TREND Mark Green photo Mark Bluegrass Brewing Co. has picked up its brewing capacity in Louisville to meet demand with the recent purchase of a new fermenter. “When we bought the business in 2005, it had revenues around $200,000. But we have experienced year-in and year-out growth, and we are now top- ping $1.5 million in revenues at about 6,000 barrels, making us the largest brewer in the state,” said Scott Roussell, managing director of BBC Beer Co., part of FTL LLC. The company now distributes in Ohio, Tennessee, Indiana, Virginia and Kentucky. Next on deck are the Maryland, and , D.C., corridor as well as . Regula- Scott Roussell, managing tions on moving director of BBC Beer Co. Craft beers often carry exotic and ornate designs, restaurants such Malone’s Steakhouse beer across state reflecting the complex, full-bodied product inside. in Lexington; Impellizzeri’ s in lines and the need to have a distributor Alcohol content can be double or triple typical beer, Louisville, which added 14 taps at its often slow down the distribution growth and so can he price. new stadium loca- cycle, amongst other factors. tion; and Drake’s “The craft beer segment is on a ride. in Lexington, We continue to pound the street, and Don Burch, a member of LIBA – the which is planning we are optimistic that there is still people behind Keep Louisville Weird cam- to open two more growth out there, untapped,” Roussell paign – and the Frankfort Avenue Busi- locations, one in added. BBC operations have experi- ness Association’s board, confirmed that Louisville and enced about a 20 percent growth in the 2010 Brewfest topped its inaugural one in Nashville. sales this year – 75 percent of that is in effort by raising nearly $30,000 and will be “I live and bottled beer. Roussell is expecting to a regular event going forward. breathe beer,” have new investment dollars soon from Will Kentuckians continue to Bullen said, “and his own financing and from others that embrace this new trend? I have seen more Brett Behr, owner, will fuel expansion. Ed Bullen, owner of Drinkswell Serv- people drink beer The Beer Trappe “A year ago, we thought we were hit- ices in Versailles, which provides draft because of the ting a true recession that would affect beer system design, maintenance and craft category.” He estimates 5 to 7 per- beer, but people are buying and spend- consulting, believes it continues to be a cent growth in his business. “The tap- ing their dollars more wisely on what rising wave. room and sports bar taphouse concept they want,” he added. “The average restaurant is going from is even experiencing new growth, even Consumers are spending extra bucks four taps to 10 taps for craft beer, and this though it can be more expensive to for a BBC craft brew for the experience, is typical for hotels as well,” Bullen said. execute without a brewery onsite.” he said, whether it’s for Amber Ale or “It’s been especially strong for growth of Another new category on the rise, American Pale Ale at Walmart year-round this sort in the last two years.” ecobeers, embraces the “green” or for the seasonal favorite, Queen’s He pointed to examples of success approach in the workplace and the Knickers Old Style Ale, at Christmas. with The Beer Store, a beer bar on East brewing process. Fort Collins, Colo.- Ribenboim, of Sergio’s World of Beers, Market Street in Louisville that is soon based New Belgium, which operates on added that while the consumer may only to open another location on Bardstown wind power and encourages its workers be paying a few more bucks, it depends on Road. “Their sales of craft beer rival the to commute by bike, is expected to the distance the beer is travelling and the Liquor Barn. People are out there tr y- enter the Kentucky market in 2011, complexity of importing as to whether he ing new beers and liking what they according to Bullen. New Belgium beers is making money on the brew – and even taste,” Bullen said. and the popular Sierra Nevada brews then not at the level of a typical restaurant Other examples include The Beer both have strong green programs. selling a standard American commercial Trappe, Lexington’s first craft beer However, interest is usually the high- beer on tap. store, which opened this summer with est in breweries located in home mar- “Profits of craft beer per bottle are in more than 400 beers. (The Behr family kets or nearby. On average, a beer the 15 percent to 50 percent range gener- also operates Pazzo’s pizza, which travels no more than 1,000 miles from ally, where a standard (domestic) could be maintains 40 beers on tap.) Craft beers the brewery to your liver, according to marked up as much as 100 to 400 percent have been added to the menus of local Blue Ridge Outdoors magazine. at retail,” Ribenboim added. He is looking

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at a partnership and opening another ing’s in downtown Louisville. Twenty-two Louisville beer bar location within the percent of Browning’s total sales are from Tequila Factory on Bardstown Road. “Why craft beer, with 20 percent of total distri- not a brewery? I serve the best beers in the bution going to a distributor. world here. Why attempt to match it?” “We are distributing 550 barrels a He named several up-and-comers year or 17,000 gallons,” Reymiller said. involved in homebrews to watch. “People are holding onto their money a Among them is Alan Kerr, a Louisville- little tighter for big purchases, but they based medical student who became a self- treat themselves. I would say we’ve seen described beer snob and began home a 12 percent increase in total produc- brewing in the last year. “I like the good tion growth this year, trending alongside Belgian beers, IPAs, triples and quadru- national numbers.” ples, but I also have had fun with doing a Young breweries are encouraged, half dozen batches of my own,” Kerr said. including Red Ear Brewing in Fort Leah Dienes has seen increasing Thomas, Ky. interest in the last two years in home- “We started about a year and half ago brewing as the president of the after I took a brewing class and started Louisville Area Grain and Extract in my parents’ kitchen at Vito’s Café,” Research Society (loggersclub.com). It said brewer and owner Matt Wehmeyer. meets every third Monday of the month “We now have four ales, including an To be sure, craft beer sales are still a at the BBC Taproom on Clay and Main American pale ale, a brown ale, a red ale small percentage of overall beer sales, rep- in downtown Louisville and gathers as and a chocolate oatmeal stout, which resenting just 6.9 percent of the total dol- many as 70 people together. underscores that mainstream brew lars spent on beer nationally, but national “It’s legal, and you can buy the sup- houses have put an emphasis on bigger, sales of craft beer grew 10.3 percent and plies at My Old Kentucky HomeBrew, bolder flavors. that growth is expected to be matched in Winemaker’s Supply and Liquor Barn to “We do this seven barrels at a time, Kentucky in the next few years. ■ begin,” Dienes said. every two weeks,” said Wehmeyer. “I got “Business is crazy with the craft beer sit- into the market for the sheer love of it. Dawn Marie Yankeelov is a correspondent uation. Everyone wants it on draft,” said It took me awhile to find my life’s work, for The Lane Report. She can be reached Brian Reymiller, master brewer at Brown- but now at 47 I know what it is!” at [email protected]. November Lane 25-52.qk:Layout 1 11/7/10 8:56 AM Page 36

UNIVERSITY RESEARCH

UK Breaks Ground on First UK Scores Big LEED-Certified Renewable Energy Lab with ARRA Funding The University of Kentucky has received HE Center for Applied Energy CAER won a competitive grant last $102.2 million in competitive federal Research broke ground in Octo- year from the U.S. Department of Com- grant funding through the American Tber on what will become the Uni- merce’s National Institute of Standards Recovery and Reinvestment Act of 2009 versity of Kentucky’s first Leadership in and Technology (NIST) under the Amer- (ARRA). UK has received 167 of these Energy and Environmental Design ican Reinvestment and Recovery Act’s highly competitive awards. To illustrate (LEED)-certified laboratory. The $19.8 NIST Construction Grant Program that the level of competition: the NIST Con- million renewable energy laboratory will is paying for the facility. The $11.8 mil- struction Grant Program received 167 allow CAER to greatly expand its lion in federal grant funds was matched applications, and CAER’s new lab was research capabilities devoted to Ken- with $3.5 million provided by the state one of only 12 projects funded. tucky’s growing renewable energy indus- and $1 million from UK. The Depart- tries, including biomass and biofuels, ment of Energy Development and Inde- electrochemical power sources (such as pendence provided another $3.5 million Argonne Battery Manufacturing capacitors and batteries) and distrib- in state ARRA funds to achieve LEED Research and Development Center, uted solar energy technologies. certification and ensure this new labora- which will be located adjacent to the tory is a model for energy efficiency and facility. An agreement is in place with renewable energy technologies. the state for shared use of the new facil- “The NIST funding will make a ity, with portions purposely designed tremendous difference in the energy and specially equipped to accommodate research capabilities of CAER,” said Direc- capacitor- and battery-manufacturing tor Rodney Andrews. “It is allowing a research and development. major expansion of research space for the CAER’s lab and the Kentucky-Argonne center, which has been a critical need, and Battery Center together will help increase could not have come at a better time, as the amount of federal and private our renewable-energy and energy-storage research dollars coming to Kentucky and programs have continued to expand over lead to additional high-paying, high-tech the last couple of years.” jobs. The opportunities for collaboration The $19.8 million 43,000-s.f., LEED-certified Researchers at CAER’s new labora- between the Argonne facility and the uni- Center for Applied Energy Research facility will tory will create important collaborations versity will provide an economic engine conduct renewable energy research. with the recently announced Kentucky- that will benefit Kentuckians. Markey Cancer Center Creates Cadre of Scientists, Nanotech Center INCE B. Mark Evers became direc- Last October, the National Institutes tor of the University of Kentucky’s of Health, thanks to ARRA, awarded SMarkey Cancer Center in spring the center a two-year, $1.4 million P30 2009, the center has greatly expanded grant to recruit two junior tenure-track its research force to battle cancer, par- faculty members to conduct transla- ticularly gastrointestinal (GI) cancers. tional research on GI cancer. GI cancers include tumors of the liver, “Our goal is to develop a cadre of colon, rectum, esophagus, stomach and future GI cancer investigators who can pancreas and are the second leading participate at the intersection of molec- cause of cancer death nationwide. ular biology, drug discovery and clini- In August, the National Cancer Insti- cal care,” Evers said. tute awarded the Markey Cancer Center In September, Evers’ collaborative a Specialized Programs of Research approach to cancer research was bol- Excellence (SPORE) grant in GI cancer, stered by a five-year grant from the one of only six GI SPOREs in the nation. National Cancer Institute to establish This three-year, $1.5 million grant the UK Cancer Nanotechnology Train- B. Mark Evers is a gastrointestinal surgeon and a cancer researcher who has led the UK Markey enables laboratory discoveries to reach ing Center. (Again, UK was one of only Cancer Center since April 2009. patients much more quickly than tradi- six U.S. institutions to receive this tional scientific programs. A multidisci- award.) plinary team of specialists – including “This is a truly exciting, multidiscipli- the Department of Chemistry) in different surgeons, medical oncologists, radiation nary project,” said Evers, who is co-princi- nanotechnology training projects.” oncologists, interventional radiologists, pal investigator on the grant, along with Multidisciplinary team projects will pathologists, basic researchers and Brad Anderson from the UK College of train future researchers in four areas: early genetic counselors – collaborate to Pharmacy. “It will involve 35 investigators detection and diagnosis of lung, colon and deliver innovative treatments designed (from the Markey Cancer Center and Col- ovarian cancer; treatment of gastrointesti- to improve patient outcomes and pre- lege of Medicine, as well as the College of nal tumors and metastases; lung cancer serve quality of life. Pharmacy, the College of Engineering, and treatment; and brain cancer therapy.

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Officials Dedicate UofL Researcher: Center for On-Time Shots Predictive Medicine Safe for Babies NIVERSITY of Louisville and National Institutes of Health offi- HERE is no benefit to delay- Ucials dedicated UofL’s $44 million ing immunizations during Center for Predictive Medicine regional Tthe first year of a baby’s life, a biosafety research lab in October. University of Louisville researcher Researchers at the 50,000-s.f. state-of- has found. the-art facility on UofL’s Shelby Campus The study, led by UofL infectious will develop vaccines, treatments and diseases specialist Michael Smith, is cures for some of today’s worst infectious the first to evaluate the long-term diseases to better protect Americans from effects of giving infants multiple vac- emerging biological threats. cines in their first seven months of life. UofL received a $22 million competi- Smith’s team examined the health tive NIH grant for the lab in 2005 and records of more than 1,000 children provided a $12.6 million match to design between the ages of 7 and 10, com- and build the structure. Earlier this year, paring the cognitive function of those the university received another $9.8 mil- who received vaccines in their first Colleen Jonsson, director of UofL’s Center for lion through the American Recovery and Predictive Medicine, working inside our Level 3 year with those who did not. His team Reinvestment Act to expand its study of biosafety lab. found that the children whose vac- viruses there. cines were delayed did not gain any advantage in brain development. The lab, one of only 13 like it around the In fact, children who received country, will allow scientists from Kentucky and each dose of each vaccine on time surrounding states to study diseases such as flu, performed better on two of 42 neu- glanders and plague in a secure environment. rological tests, and those who missed Researchers there will study Level 3 biological or were late on one or more doses of agents, or those that can cause diseases that are vaccine did not perform better on potentially fatal but curable. any test. University officials expect to gain LEED cer- Although some parents have tification for the lab building. expressed concern at having their children vaccinated while they are babies, no study has yet produced University of Louisville President James Ramsey speaks evidence that the practice is unsafe. at the Oct. 18 dedication of the $44 million Center for “We hope this study will reassure Predictive Medicine on UofL’s Shelby Campus. parents that vaccinating their chil- dren is not only safe but the right thing to do to protect their children UofL Researcher Develops against potentially deadly diseases,” Simple New Sleep Apnea Test Smith said.

new sleep apnea test developed which a partly blocked airway causes a per- by a University of Louisville sci- son to snore as they struggle to breathe. It Aentist is expected to reduce the is often associated with learning and need to detect the condition through behavior problems as well as hyperten- overnight studies. sion, cardiac disease and obesity. UofL chemist Saeed Jortani found So far, an overnight sleep study has that the urine of children with sleep been the only way to distinguish habit- apnea contains different levels of stress- ual snoring from snoring caused by related proteins than those without the sleep apnea. Sleep studies are time-con- condition. He is using a $150,000 award suming, relatively expensive and not from the Kentucky Science and Tech- widely available because they must be nology Corp. to help commercialize a conducted in special sleep labs. urine test based on the discovery. “An inexpensive screening test would “I believe it’s possible to develop a help patients with harmless snoring save diagnostic test so simple that someday it time and money by avoiding unneces- could be available for use in the home, sary testing,” said Fidaa Shaib, a UofL like a home pregnancy test,” he said. sleep medicine specialist who collabo- Sleep apnea is a common condition in rated on the study.

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GOING GREEN

GREENING YOUR LEASE lord cooperation and compliance. An environmental management plan may be Documenting sustainability standards in a commercial lease attached to a lease as a separate exhibit, or incorporated into the body of the lease as a separate article or section. BY JAMIE L. COX The plan should set both general and specific objectives as well as imple- mentation measures. The general objec- HETHER you own a LEED®- and expense of improvements, the tives should outline the applicable certified office building and cooperation of both parties will be nec- party’s intentions for operation of the want tenants to live up to its essary to obtain certification. If neither building and/or the leased premises. Wenvironmental standards or are a retail party seeks certification but one or both For example, general objectives may tenant implementing your own “green” desire to finish out leased premises with state that the party seeking to imple- policies, being knowledgeable about the sustainability in mind, they can still use ment the plan hopes to provide for LEED Green Building Rating Sys- the LEED® for Commercial Interiors reduced usage of energy and potable tem™’s impact in a leasehold relation- checklist as a guide. water. Specific objectives might include ship is crucial. Let’ s look at two Tenants may earn LEED® for Com- an average electricity and natural gas important aspects: tenant improvement mercial Interiors rating credits by leasing usage maximum, average water con- obligations and ongoing operational space within a certified building. Tenants, sumption maximum, and a minimum obligations. Regardless of which party is as a result, may target certified buildings, water diversion rate. driving the environmental responsibility increasing absorption and, in some cases, Objectives should be subject to initiative, cooperation is necessary. rents to levels higher than those of non- change, based upon imposition of LEED® certified competition. higher standards imposed or recom- LEED® for Commercial mended by applicable government Interiors credits may be authorities. And plans should address earned not just by implement- which party is entitled to any credits or ing typical water- and energy- incentives that are available as a result of saving technologies and use of meeting specific objectives. recycled and renewable mate- The implementation provisions of a rials, but in nearly every aspect plan should include directives for satisfy- of development and operation ing specific objectives. For example, the of leased premises. Credits use of “smart meters,” Energy Star-rated may be earned for lease terms appliances and rainwater collection may of at least 10 years, which be required to reduce electricity, natural reduces the frequency of ten- gas and water consumption. ant improvements and the Sustainability is still an emerging topic resource consumption in the leasing arena. However, an individ- entailed. The percentages of ualized environmental management plan existing shell used in tenant fit can be developed with the assistance of a up, and of construction waste LEED® Accredited Professional. A gener- diverted from a landfill can ous supply of additional information, earn credits. Tenants’ use of including the LEED® for Commercial Tenant improvements salvaged, refurbished or used furniture, Interiors checklist, guidelines and por- Construction issues are of paramount con- and selecting space in a non-smoking tions of the Green and cern to any green-conscious tenant or building may earn credits. Credits may Construction Reference Guide may be landlord. In a leasehold, concerns often result from implementing long-term air found at the U.S. Green Building Coun- arise with tenant improvements – made in quality management controls (eco-friendly cil’s website: usgbc.org. Information preparation for a specific tenant’s use and HVAC systems), short-term air quality regarding environmentally friendly clean- occupancy. Whether a landlord has con- management controls (“flushing out” the ing supplies may be found at structed or converted premises into a building prior to occupancy), and eco- greenseal.org, and information on green building, or is pursuing LEED friendly light sources and ventilating sys- energy-efficient appliances may be found (Leadership in Energy and Environmen- tems and controls (operable windows). at energystar.gov. ■ tal Design) certification, the landlord may require that tenant improvements either Ongoing operational obligations be certified under the LEED® 2009 Green A landlord desiring to enforce sustain- Jamie L. Cox, LEED Building Rating System for Commercial able operations upon tenants should cre- AP, is a real estate Interiors, or at least comply with certain ate a comprehensive environmental attorney with Stites & sustainability standards. A tenant may want management plan that addresses all Harbison PLLC in LEED for Commercial Interiors certifica- dimensions of applicable environmental Louisville. Contact her tion to meet its own environmental goals. and operational standards. A tenant at [email protected] . Although parties may negotiate allo- intent on reducing its carbon footprint cation of responsibility for construction may create a plan also and request land-

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ECONOMIC COMMENTARY

result of this policy is that this freshly created money gets into the hands of banks and other financial institutions, which might help spur job growth, update or build new facilities, etc. While many tend to focus on demand in an overheating economy as the primary driver of inflationary pres- sures, inflation and a corresponding currency devaluation also can be caused by a massive and rapid increase in the money supply that is not coupled with a large increase in the output of goods and services. This strategy – otherwise known as quantitative easing – has been utilized by the Fed previously, and is likely to be employed once again in the near future. A paper currency reset through infla- tion will, in effect, lower the relative value of U.S. government debts and promises, which would be a good thing from the Fed’s perspective. So, you may ask, “Why has this led to a ‘currency war’?” – a term that describes the current economic phe- nomenon of countries intervening in exchange markets with the aim of driv- ing their respective currencies to be the most cheaply valued. The unfortunate fact of the global currency system is that while the United States needs a much weaker dollar to bring growth back to our economy, the rest of the world, especially China, cannot easily handle the consequences of such an adjust- CURRENCY WARS ment to the dollar. The U.S. dollar is the reserve cur- How quantitative easing affects the economy rency throughout the world. As a result, all international commodities have one BY JOHN R. FARRIS thing in common – they are traded in dollars. If the U.S. were to decide every $100 bill is now worth an absolute value N September, the U.S. Congress over- tary Timothy Geithner appears to be in of $1,000, this would have an enormous whelmingly passed legislation defin- agreement with the bill’s rationale. (i.e. ten-fold) impact on the absolute ing “currency manipulation” as an But Congress’s approach seems to be value of oil, gold, wheat, coffee, etc. Iunfair trade practice. This opens up the a red-herring, designed really only to Therefore, it should come as no sur- possibility of thousands of petitions distract attention from the Fed’s direct prise that the countries actively inter- being filed by U.S. manufacturers, and process of its own currency manipula- vening in exchange markets to will eventually result in the U.S. Com- tion methods designed to drive infla- suppress their currencies relative to the merce Department imposing tariffs on tion. Without the necessary demand or dollar – China, Japan, Korea, Thailand, imports based on the U.S.’s calculation actual economic growth to help spur even Switzerland, to name a few – are of the degree of currency manipulation. inflation, “quantitative easing” (QE) is for the most part the same ones that The bill was primarily aimed at the Fed’s only real tool available for its have the biggest trade surpluses with China, which has been accused of inflation goal, which will benefit the the United States. undervaluing its currency by 20-40 per- many government debts and promises However, the rest of the countries in cent. The legislation is still a long way that have been made in paper currency. the world are essentially powerless if from becoming law and is likely to be By definition, QE is a form of mone- the U.S. Federal Reserve decides to inconsistent with global trade rules. tary policy used by the Federal Reser ve pursue an aggressive devaluation strat- More importantly, while the U.S. admin- to increase the supply of money in an egy through quantitative easing. So, istration has not taken a position to economy when the interest rates are even if other countries throughout the oppose this legislation, Treasury Secre- either at or close to zero. The intended world protest and object to this strat-

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egy, there is very little they could do about it in practice. All other countries in the world are playing in a game in which the United States makes the rules. In essence, we hold the ultimate trump card, as well as the rest of the cards in the deck. While dollar devaluation may help the U.S. government pay its debt to the Chinese (and others) with rubber nick- els, it also helps the absolute value of the U.S. stock market. In fact, nothing has been shown to have a stronger impact on the absolute value of equities than the value of the dollar. Over the last couple years, the corre- lation between the value of the U.S. dol- lar and the absolute value of the stock market is quite striking. During periods of dollar strength, the market has tended to move lower. Conversely, peri- ods during which we have experienced a weak dollar have corresponded with increases in the absolute value of the Dow and S&P. Think about it this way: A company’s relative share price, as well as the price of the goods and services it sells, is based on the relative value of the dollar. With a weaker dollar, overseas investors view the prices of U.S. goods, commodi- ties and companies as relatively cheaper, which therefore increases their demand for these U.S.-based companies, goods and services. But, while dollar devaluation is good for the absolute value of markets, it is the worst thing that can happen to holders of cash dollars (and U.S. Treas- uries). If the inflation rate is 6 percent, and you are holding cash earning 1 percent, you are losing 5 percent of your purchasing power. There are many hedging techniques, such as buying hard commodities and foreign currencies, which you can employ to help protect your portfolio against a declining dollar value. Investors should consider these and other hedging techniques to stay ahead of this dollar devaluation, which could last from the next few months to the next few years. ■

John R. Farris is the founder/president of Farris Capital and also serves as a professor of economics and finance at Centre College. November Lane 25-52.qk:Layout 1 11/7/10 8:57 AM Page 42

ALLTECH FEI WORLD EQUESTRIAN GAMES The People of the World Games Half million WEG attendees experience the hospitality of Kentucky

BY FEOSHIA HENDERSON

Vaulting event in the Alltech Arena

Driving event in the Rolex Stadium

HE Alltech FEI World Eques- tries represented in sales. Among the trian Games in Lexington top international tickets holders were weren’t a sellout, but the pres- Canadians, the Swiss and Brits, Aus- tigious international event tralians, Mexicans, Germans, South did attract more than a half- Africans and the French, who traversed Tmillion attendees, shining a bright light on thousands of miles to visit the Bluegrass. Kentucky and its signature horse industry. Event organizers said a total of 507,000 Anecdotally, the statewide economic attended the games, which featured the impact of the games appears mixed, world championships for eight equestrian with most of it concentrated in Central sports. That half-million number included Mark Contreras on horseback performing Kentucky, according to business, con- non-ticketed holders such as children with members of the Lexington Ballet during vention and economic development under 12, the media, volunteers and staff. the opening ceremonies of the FEI World Games officials across the state. In the Blue- A majority of the 6,000-plus volunteers grass region where the action was, were from out of state also. reviews were very positive. But ticket sales just tell part of what the Of the 600,000 tickets available for event meant for Kentucky. Though the the 16-day event held at the Kentucky economic opportunity of the equestrian Horse Park, slightly more than 411,000 games wasn’t a boon for ever yone, it did were sold. More than 70 percent of offer opportunities for increased business ticket holders came from outside of for the service and hospitality sectors. It Kentucky, with all 50 states and 63 coun- also offered economic development offi- Cross country event

Rolex Stadium Night shot of the Rolex Stadium November Lane 25-52.qk:Layout 1 11/7/10 8:57 AM Page 43

Maria Jones of the Kentucky Horse Park Foundation and Marilyn Platzer of the James Beard Foundation, representing their respective foundations at the John Y. Brown at the closing ceremony ‘cookin’ in the Bluegrass dinner on October 3. Table at the ‘cookin’ in the Bluegrass dinner

Bill Gombeski of UK Healthcare’s SaddleUp Safely Dawn Cloyd and Kathy Gornik of Thiel Audio with Ron and Susie Fridson of Pegasus Helmets. at Pearce’s Place in the Alltech Pavilion

Bob Quick, CEO of Commerce Lexington, Sisters Debra and Lindy Cogan of Philadelphia at the Chamber’s visitors desk were out-of-state volunteers for the world games. Rick and Cheryl Hatcher at the Approximately 6,000 persons volunteered. Kentucky Experience Pavilion

cials a chance to sell the state for future “What we saw when we looked at this events to an international audience. in my administration was that this was “The Alltech FEI World Equestrian an opportunity to take Kentucky and Games were the perfect venue to show- certainly the Horse Park to a new level. case Kentucky to economic develop- … It gave us a reason to improve the ment guests from around the world,” facilities,” Fletcher said. “What the said state Economic Development Cab- administration inet Secretary Larry Hayes. “Many of did out at the the Cabinet’s guests had no prior Horse Park, and knowledge of the equine disciplines what all of the showcased at the games, but all were other people out Terry Johnson, vice president of sales and amazed at the skill, talent and courage at the Horse Park marketing for the FEI world games, with Resa Browning, promotion manager displayed at the competitions. Our did, was to make guests also couldn’t have been more that horse park impressed by the enthusiasm and hos- the finest eques- pitality shown by the thousands of vol- trian facility in unteers who acted as true ambassadors the world.” Pearse Lyons is the CEO for the commonwealth.” of Alltech, the major A study com- State economic development offi- sponsor of the FEI World missioned before cials entertained “more than 40” Equestrian Games. the games esti- prospects during the games. mated at $167 Former Gov. Ernie Fletcher, whose million economic impact. Though no administration backed the games and one The Lane Report spoke to had hard committed to facility upgrades the Ken- economic impact figures following the tucky Horse Park as part of the winning games, Lexington looks to have been WEG bid, said attendance was about ground zero in reaping financial bene- what he expected. The numbers were fits from the influx of people. Many Dr. Bill Rood DVM and his wife Margaret at “remarkable” given the global economic restaurants, hotels and shops bustled Makers Mark Hospitality Center; Rood & Riddle downturn, he added. with activity during the games, said was a sponsor of the world games

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ALLTECH FEI WORLD EQUESTRIAN GAMES Kevin Duane photo

Above: Live downtown music events during Spotlight Lexington attracted thousands of attendees.

Left: Country Singer Laura Bell Bundy was a featured performer at Spotlight Lexington.

Right: Lexington’s mounted police on parade Kevin Duane photo Kevin Kevin Duane photo Gina Greathouse, senior vice president 58 shifts over 16 days was an experience for economic development with Com- in itself,” Greathouse said. merce Lexington. Lexington-Fayette local government “Lexington was buzzing with activity. created an 18-day entertainment festival Our core downtown was hopping, many to help make visitors’ experience more area restaurants were very pleased with interesting and to get local residents the overall experience,” she said. excited about WEG. “Spotlight Lexing- Commerce Lexington was able to ton” attracted an estimated 175,000 leverage the games into a wider market- downtown for concerts and street ven- ing opportunity, Greathouse added. dors, leading public officials to deem it “Commerce Lexington hosted the a success and create a panel to examine The Hilton displays the flags of equestrian concierge desk within the Makers Mark putting on such festivals in the future. teams lodging at the hotel Bourbon Pavilion. We marketed the Northern Kentucky and Louisville Bluegrass as a potential location for apparently saw less impact and opportu- businesses and networked with visiting nity for regional PR. Neither region had CEOs. There was a chalet behind the economic impact numbers. The Louisville venue that hosted international specta- Convention & Visitors Bureau mainly sup- tors. It was adjacent to the Rolex Chalet. ported the efforts of Lexington, and International guests that were part of worked to publicize the games to Louisvil- that chalet came through our area daily. lians and travelers, said Louisville CVB Twenty experienced volunteers were Vice President of Marketing and Commu- selected to help us with our efforts. The nications Stacey Yates.

Renee Jackson (L) and Kathryn Minton of the Downtown Lexington Corp. with an unidentified friend at the Cheapside pavilion

Carol Russell and David Lord, Lexington Convention and Visitors Bureau, at the ‘cookin’ Billy Frey, Alltech North American PR Manager, at Luther Deaton (L), with daughter Lisa Deaton and in the Bluegrass’ dinner the Alltech Pavilion at the world games son Steve Deaton at the UK Healthcare Pavilion

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Above: UK Coach John Calipari and basketball fan Corinne LaReau

Right: In attendance at governor’s day a the world games (from left) Govs. , Ernie Fletcher, Steve Beshear, Paul Patton, John Y. Brown, and Martha Layne Collins

Jack Kelly and his wife Cathy at the world games closing event Meg Jewett of LV Harkness & Co. displays a sam- pling of the unique handcrafted gifts available on her company’s website – lvharkness.com

Lexington Councilmember Jay McChord with his daughter Riley at the world games

Lexington Fire Chief Robert Hendricks and Debby Dillon at the world games

Fran Rohlfing from Georgetown is all smiles at the closing event

Kip Cornett , CEO of Cornett Integrated Market- ing Solutions, and attorney James LeMaster of Bill Embry at the hospitality center presents Stoll Keenon Ogden, PLLC at the Rolex Stadium Actor William Shatner at the opening event women’s upscale fashions and boutique furs

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ALLTECH FEI WORLD EQUESTRIAN GAMES

“We supported the efforts of the state and the Lexington CVB. W e hosted media; I personally took a writer from New York to the games. We had welcome walls at the airport and visitors guides to support the event,” Yates said. Northern Kentucky CVB President and CEO Tom Caradonio said it would be difficult to assess the games’ impact in the region because the Cincinnati Reds were in the middle of a Major League Baseball playoff run at the same time and drawing larger than normal crowds. Meanwhile, Northern Kentucky’s big selling point, the Cincinnati-Northern Kentucky Inter- national Airport (CVG), has been diminished as its main carrier Delta The Culver Black Horse Troop was the color guard for the opening ceremony. has drastically cut international flights, he added. “We really lost our opportunity for the international market when Delta cut our airport to only one European flight per day from a high of five. Without that lift factor, the visitors could get to Lex- ington without going through CVG,” Caradonio said. Mike Curd, president of the Blue- grass Hospitality Association, said the games did fall short of the high expec- tations, but Lexington bars and restau- Above: Chief of rants especially benefited financially Police Ronnie Bastin from them. Curd, who’s also general manager at Hilton Suites Lexington and members of the Bob Hewett, with daughter Heather and wife police department Donna at the media village Green, said hotels’ experiences varied. on duty at “It really will vary from hotel to hotel, Spotlight Lexington depending on their location and if they Left: Police officers were housing any of the competing del- on the roll during egations. In our case, we did not see a Spotlight Lexington lift in occupancy, due to this time of year (already) being a heavy demand period for the hotel, but did see a sub- stantial lift in average (room) rate,” Curd said. Central Kentucky will continue to benefit from major horse park improve- ments made ahead of the games, includ- Valvoline was one of the sponsors ing the $45-million, state-of-the-art of Spotlight Lexington indoor arena, Curd thinks. “The entire Lexington market and the Bluegrass region will continue to benefit economically from the Ken- tucky Horse Park improvements – more specifically the addition of com- peting venues – going forward,” he said. “Through hosting this event, we were able to strengthen a portion of our foundation to economic growth in Lexington.” ■

Feoshia Henderson is a correspondent for The Kentucky Theatre hosted the premiere of the Shelia Bayes displays her Rolex and fine jewelry The Lane Report. She can be reached movie Secretariat staring Diane Lane at the Maker’s Mark hospitality center at [email protected].

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SPOTLIGHT ON THE ARTS News briefs on cultural events around Kentucky compiled by Lori Meadows

LaVon Williams Creates Sculptures for Arts Events Governor’s Awards in the Arts Recipients Around the State HE Kentucky Arts Council commissioned former University of Kentucky bas- ketball star and now full-time artist LaVon Van Williams Jr. to create poly- Junie B. Jones: Tchrome, low-relief woodcarvings as awards Gov. Steve Beshear presented to the Jingle Bells, Batman Smells recipients of the 2010 Governor’s Awards in the Arts. Lexington Children’s Theater Williams creates African-inspired sculptures that reinterpret the Gullah/Geechee Lexington Opera House traditions and artistic influences that have been passed on to him through five gen- 2 p.m. Sat., Nov. 27 erations of his family. lctonstage.org In 2009, the Kentucky Folk Art Center assembled a 30-year retrospective exhibit (859) 254-4546 of the Lexington artist’s work titled LaVon Williams: Rhythm in Relief. It has since toured extensively through Ohio and Kentucky and was displayed for the recent Made to Be Played: Traditional reopening celebration of the historic Lyric Theatre in Lexington, Oct. 28-31, 2010. Art of Kentucky Luthiers John Grant Crabbe Main Library’s Grand Reading Room Eastern Kentucky University, Richmond through Nov. 23 [email protected] (859) 622-1782

Marta Elam Dorton Demonstrates Pastel Painting Kentucky Artisan Center at Berea 10:30 a.m.-3:30 p.m. Sat., Nov. 20 kentuckyartisancenter.ky.gov Gov. Steve Beshear and First Lady Jane Beshear posed with recipients of the 2010 Kentucky Governor’s (859) 985-5448 Awards in the Arts at the awards presentation, which was held in Frankfort on Oct. 28. Pictured are (front row, from left) Lindy Casebier, deputy secretary of the Tourism, Arts & Heritage Council; Lori Meadows, ex- The Machine Age of Quilting: ecutive director of the Kentucky Arts Council; Keith Caudill, executive director of the Mountain Arts Center; Treadle to Computer Melanie Wood (Educational Award); Jim Allen, CEO of Hilliard Lyons (Business Award); Loyal Jones National Quilt Museum, Paducah (Folk Heritage Award), First Lady Jane Beshear; Gov. Steve Beshear; Stephen Rolfe Powell (Artist Award); 10 a.m.-5 p.m. Sun.-Tues. Dana Heath, executive director of the Mayfield/Graves Co. Art Guild (Community Arts Award); Rich Cop- ley ( Media Award); Al Shands ( Milner Award); and Marcheta Sparrow, secretary of the Tourism, Arts & 8 a.m.-6 p.m. Wed.-Sat. through Dec. 6 Heritage Council. On the back row are (from left) are Todd Lowe, chair of the Kentucky Arts Council board quiltmuseum.org of directors; and Robert Brock, artistic director of the Kentucky Repertory Theatre. (270) 442-8856

Christmas at the Cathedral Lyric Theatre and Cultural Arts Center Louisville Chorus Cathedral of the Assumption Reopens in Lexington after 47 Years 7:30 p.m. Sat., Dec. 11 LouisvilleChorus.org HE Lyric Theatre and Cultural Arts Center in Lexington has reopened after 47 (502) 968-6300 years. Many viewed the Lyric as the cultural anchor for East End neighbor - Thoods. It is an icon for African-Americans. Lonesome River & Third Tyme Out It opened in 1948 at Elm Tree Lane and Third Street and before it closed in 1963 , Ashland featured movies, fashion shows, vaudeville acts, local concerts and pageants. During 7 p.m. Sat., Dec. 4 the ’50s, jazz, soul and R&B music took center stage with big-name acts like Duke paramountartscenter.com Ellington, Ray Charles and Count Basie. (606) 324-3175 Beyond entertainment, numerous small black-owned businesses from clothing stores to ice cream shops were launched in and around the theater area. Before clos- For more Kentucky events, ing, the theater returned to its roots as a movie venue, featuring horror films and visit artscouncil.ky.gov black cowboy movies plus Saturday morning cartoons. “Our vision was to make this facility a culturally vibrant asset to this community,” said Juanita Betz Peterson, chair of the L yric Theater Task Force and a member of the Lyric Theater Board of Directors. “The L yric is uniquely positioned to be a cul- Lori Meadows is tural hub of activity for our city’s diverse population. executive director The renovation expanded the original Lyric into two buildings, the second hous- of the Kentucky ing a museum/gallery. The space also includes an outdoor courtyard. With its 540- Arts Council. seat theater and new dance and art exhibit space, community leaders hope the Lyric becomes an incubator for local performing art and a bridge for local cultural groups, while providing an economic lift to the East End neighborhood.

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THE LANE LIST

KENTUCKY UNIVERSITIES’ INTELLECTUAL PROPERTY AND TECHNOLOGY STARTUP LICENSES

LICENSES THROUGH THE tification device using near-infrared IMBA Business School team UNIVERSITY OF KENTUCKY spectroscopy Louisville Amchael Graphics nanomark-therapeutics.com Lexington i-Glyco Inc. Formed Nanomark Therapeutics, a [email protected] Mission Viejo, Calif. biotech firm focused on the R&D of tar- Developing a square tube, mirror-based Iglyko.com geted drugs and therapies for cancer. imaging system Developing glucose monitoring tech- nology RhinoCyte Inc. CoPlex Therapeutics LLC Louisville Lexington Secure Analytics rhinocyte.com/ Developing treatments for mild cogni- Stillwater, Okla. Development and commercialization of tive impairment, Alzheimer’s and other agamacorp.com/HomePage.aspx diagnostic tools and therapies for adult neurological disorders. Developing a patented data shuffling stem cell treatments procedure for masking data Equine Diagnostic Solutions LLC Tandem Technologies Inc. Lexington LICENSES THROUGH THE San Jose, Calif. equinediagnosticsolutions.com UNIVERSITY OF LOUISVILLE tandemdx.com Developing diagnostic tests for sarcocys- eBioscience, Inc Performs prenatal diagnostics by separat- tis neurona in horses San Diego, Calif. ing fetal DNA from the mother’s blood. ebioscience.com Escent Technologies LLC Specializes in antibody reagents are uti- Vivorte LLC Lexington lized by leading laboratories worldwide Louisville escenttech.com Developing and marketing a device Developing a portable substance iden- aimed at preventing hip fractures.

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EXPLORING KENTUCKY

Register of Historic Places Fine Arts Dis- trict and site of the award-winning artist relocation program, a national model for using the arts for economic develop- ment. Since 2001, more than 45 artists from around the world have relocated to its Queen Anne style homes and Ital- ianate mansions to ply their trades. Visitors today can stroll through any of 20 in-home galleries, watch artisans at work and, with advance reservations, even wield a paintbrush or throw a pot themselves. Former Paducah Mayor Gerry Mont- gomery sparked a project that has become a visitor favorite. Montgomer y recognized that the city had essentially sealed itself off from its river heritage by building a protective floodwall after the tragic 1937 disaster. Creating more openings in the wall, the city then com- missioned mural painter extraordinaire Robert Daffort to paint “Portraits of Paducah’s Past” all along the previously plain structure. “This project has allowed us to cele- The National Quilt Museum of the United States has contributed to Paducah’s revitalization brate the river, to see it and enjoy it,” Black explained. Only a few steps away from the flood- Main Street Revival wall, the internationally important Museum of the American Quilter’s Soci- Downtown Paducah is a shining example of revitalization ety was named the National Quilt Museum of the United States in 2008 BY KATHERINE TANDY BROWN and showcases contemporary, miniature and antique quilts. Come April, thou- sands of quilters and quilt lovers show IKE many of its sister Ohio River In the early ’80s, a regional mall up to ogle the best of the best at the towns, Paducah was inundated by erected on newly completed I-24 lured annual Quilt Show and Contest. Lfloodwaters in 1937. When rapidly businesses away from downtown, leaving Perched on the waterfront in the city’s rising waters stranded a cow named Bossie the historic town center virtually vacant only surviving antebellum structure, the on the second-story porch of a house in by the mid-’80s. River Discovery Center recalls maritime LowerTown, a full six blocks from those In 1989, with the help of the Ken- history through domed listening stations, riverbanks, her caretaker had to feed her tucky Heritage Council (KHC) and the well-presented displays and interactive by boat until the river receded. A National Kentucky Main Street Program, Padu- water-filled exhibits that include a working Geographic cover photo captured her cah began its own Main Street Program. lock dam. plight for posterity. The results have been dramatic, some- Part of the beauty of the city’s down- Not exactly the kind of scene you’d what unexpected and totally positive. town transformation is its visitor-friendli- expect to witness in a future recipient of “Downtown is not the retail center ness, for every mentioned attraction is National Historic Trust kudos. But in now,” said Paducah native and KHC within easy walking distance of the next. May 2010, the prestigious organization Chairman Chris Black. “But it is the cen- Costumed guides lead a variety of historic announced that the Paducah Renais- ter of culture, entertainment and restau- walking tours. Should your traveling toot- sance Alliance had garnered one of only rants. Rethinking yourself is part of the sies need a break, you can clip-clop along five national 2010 Great American Main challenge, and Paducah has done it the river on a horse drawn carriage ride or Street Awards. Its makeover story is thanks to an enormously vibrant and take a trolley tour. impressive. willing core of volunteers.” Plan a holiday visit during Christmas Founded in 1827 by Gen. William A shining example is the city’s new in Paducah at (800) 723-8224 or padu- Clark of the Lewis and Clark expedition, 1,800-seat, state-of-the-art performing cah.travel. ■ the Port of Paducah embraced all things arts venue, the Carson Center, home to marine and thrived through decades, as the Paducah Symphony Orchestra and Katherine Tandy Brown is a its major industries morphed from river a pops, classical and Broadway series. correspondent for The Lane Report. and rail, to atomic energy, and currently Another case in point is its Lower- She can be reached to medical and river transportation. Town Arts District, a 26-block National at [email protected].

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Upcoming Events across Kentucky Shaker Village photo Holiday Luncheons Parade in the Tri-state area. Started in at Woodford Reserve Distillery the Depression area to lift local spirits, 7855 McCracken Pike, Versailles this event – once selected as a T op 10 Wednesdays through Sundays, Event in Kentucky and one of South- Nov. 17-Dec. 23 and Dec. 28-30 east Tourism’s Top 20 Events – just gets (859) 879-1953 better each year. woodfordreserve.com Blessing of the Hounds Put on your Christmas bib for Woodford at Shaker Village Reserve’s annual holiday luncheon, where Shaker Village at Pleasant Hill you’ll enjoy a gourmet buffet using the 3501 Lexington Rd. finest Kentucky Proud products, all served Harrodsburg from a menu prepared by chef-in- November 27, 10 a.m. residence Ouita Michel. Take a distillery (800) 734-5611 tour while you’re here. Reser vations www.shakervillageky.org accepted beginning Nov. 1. $25 per person. Join Shaker Village and the Woodford The Simple Gifts of Christmas 74th Owensboro Christmas Parade Hounds fox hunters for their annual Shaker Village of Pleasant Hill 2nd Street, Owensboro Blessing of the Hounds. This traditional 3501 Lexington Road Nov. 20, 4:30-7:30 p.m. event, which takes place near the West- Harrodsburg (800) 489-1131 ern Lot Equestrian facility, features a Dec. 4 ChristmasParade.net blessing of the hounds, riders in formal (800) 734-5611 attire and the fox, and is followed by the shakervillageky.org Grab your Christmas cheer and ogle first hunt meet of the formal season. No the floats in the largest Christmas admission fee required. Come to Shaker Village of Pleasant Hill for a day of holiday cheer. From 10 a.m. until 4:30 p.m., shop for one-of-a-kind Christmas gifts in the Shaker tradition, and receive 10 percent off all purchases. The Pleasant Hill Singers will give holiday choral concerts at 1:30 and at 3:30. Afterwards, visitors can help decorate the tree with strings of pop- corn and handmade ornaments. At 7 p.m., bring a canned good for admission to Christmas caroling along a lantern-lit road, followed by light refreshments in the West Family Dwelling Cellar.

“Everything Eagles” Van Tour Land Between the Lakes National Recreation Area 100 Van Morgan Drive Golden Pond Dec. 12, 1-4:30 p.m. (270) 924-2000 lbl.org

Winter is peak eagle-viewing season at LBL, and you can spend the afternoon visiting some eagle “hot spots” during this staff-led tour. Learn how to spot eagles in the wild, and then zoom in with spotting scopes for a closer look. Registration required. Dress for the weather and bring binoculars. Moder- ate walking may be required. Begins at the Golden Pond Visitor Center. $5 chil- dren, $7 adults. November Lane 25-52.qk:Layout 1 11/7/10 8:58 AM Page 52

KENTUCKY PEOPLE

OWEN CO.: KENTUCKY AMERICAN WATER LOUISVILLE: CITY’S WATER COMPANY DEDICATES $164M TREATMENT PLANT CELEBRATES 150 YEARS OF SERVICE LWC photo KAW/Bill Straus photo

Kentucky American Water hosted a dedication and ribbon-cutting ceremony in Hundreds of Louisville Water Co. employees and residents gathered at the October for the opening of its new water treatment plant in Owen County. The Louisville Water Tower and Pumping Station in October to celebrate the com- $164 million facility includes a new treatment plant, a new booster pump sta- pany’s 150th anniversary. LWC is the state’s oldest public utility and the water tion in Franklin County and a 31-mile underground water transmission line to tower is the oldest structure of its kind still standing in the United States. Pic- Fayette County. Nearly 200 people attended the ribbon cutting, including Ken- tured here with a piece of the company’s original cast iron water main, which tucky American Water and American Water executives, water supply project was installed in 1858, are (left to right) LWC President and CEO Greg Heitz- leaders, contractor representatives, government officials, Kentucky American man, Board of Water Works Chair Gerald Martin, Local 1683 President Billy Water board members and Hardin family representatives. Meeks and Louisville Water Chief Engineer James Brammell.

SOMERSET: LONNIE LAWSON HONORED LEXINGTON: USDA ANNOUNCES NEW MICRO AT ANNUAL MARCH OF DIMES DINNER ENTREPRENEUR ASSISTANCE PROGRAM Center for Rural Development photo

On a recent visit to Lexington, USDA Deputy Secretary of Agriculture Kathleen Melinda Dalton (right), chairman of The March of Dimes board of directors, A. Merrigan announced that Lexington-based Community Ventures Corp. and presented 2010 March of Dimes honoree Lonnie Lawson with an award recog- -based Kentucky Highlands Investment Corp. will be part of new na- nizing his leadership and service to the region. Lawson, president and CEO of tional effort to support small businesses in rural communities. The partnership, The Center for Rural Development, was recognized at the Fourth Annual called Rural Microentrepreneur Assistance Program (RMAP), will provide March of Dimes Testimonial Dinner for his work in helping to improve the lives small, rural entrepreneurs and enterprises in northern, central and western of citizens in southern and eastern Kentucky. The Oct. 21 event raised more Kentucky with technical assistance and training, and a revolving loan fund to than $25,000 for the local chapter of the March of Dimes. make loans up to $50,000. Pictured here with Merrigan (center) are Commu- nity Ventures President Kevin R. Smith (left) and Kentucky USDA Director Tom Fern (right), along with some of the Community Ventures staff.

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