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Central Bank Central 201 E. Main St. Ste. 1402, Lexington KY 40507

PRST STD

President/CEO ELECTRONIC SERVICE REQUESTED U.S. POSTAGE

LUTHER DEATON LUTHER PAIDPermit #327 ONE-ON-ONE: E N LA Lebanon Junction KY 40150

lanereport.com

Page 24 Page

change markets but –

prices current at viable commercially aren’t

resources hydrocarbon Commonwealth’s

AND GAS ACTION GAS AND

OIL KENTUCKY

BOOM HUSHES HUSHES BOOM

FRACKING U.S.

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Calvin Fulkerson JULY LThe ane Report 2017 Kentucky’s Business News Source For 32 Years Volume 32 Number 7

22 A LIVING LESSON IN ECONOMICS Biz Town bridges the gap between classroom learning and the real world

24 GENSCAPE CREATED GLOBAL ENERGY MARKET ANALYTICS Louisville entrepreneurs created tools to monitor production and flow of electric power, then oil, NGL, solar and more

27 RIGHT-TO-WORK MIGHT BE WORKING It’s definitely cited for bringing a $1.3 billion aluminum mill to Eastern Kentucky

30 COVER STORY FRACKING BOOM HUSHES KY. OIL AND GAS ACTION Commonwealth’s hydrocarbon resources aren’t commercially viable at current prices – but markets change

34 PLAYING CATCH UP WITH INFRASTRUCTURE NEEDS With gas tax revenue decelerating, Kentucky joins search for a strategy to fund roads, bridges and more

Departments 4 Perspective 36 Emerging Lane 6 Fast Lane 38 Lane List 14 Interstate Lane 39 Spotlight on the Arts 15 Kentucky Intelligencer 40 Exploring Kentucky 16 Corporate Moves 42 Passing Lane 17 On the Boards 44 Kentucky People 18 Lane One-on-One: Luther Deaton President and CEO, Central Bank

On the Cover lanereport.com With the price of natural gas at around $3 Kentucky Business News Online per million BTU and crude oil at $45 a Read up-to-the-minute Kentucky business news stories, barrel, both less than a third of market current and archived copies of The Lane Report, Market Review, BG – A way of life, Next – Your Future After highs less than 10 years ago, Kentucky High School in Kentucky, Health Kentucky, Research Kentucky drilling permits are at a record low. special reports, white papers and community profiles. Faster Lane Email news bulletin Three or more times a week, the editors of The Lane Report publish Faster Lane – email bulletins of fast breaking and important Kentucky business and economic news. Visit lanereport.com to sign-up for this free, must-have, at-your-fingertips news service.

July Lane 1-20.indd 2 6/30/17 5:04 PM ”CENTRAL BANK LOOKS AT CUSTOMER SERVICE EXACTLY LIKE WE DO. IT’S BEEN A KEY TO OUR SUCCESS.“ Alison Meyer – Two Chicks and Company, Lexington

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July Lane 1-20.indd 5 6/30/17 3:22 PM LThe ane Report PERSPECTIVE Kentucky’s Business News Source for 32 Years EXECUTIVE EDITOR/VICE PRESIDENT governor especially. Papers large and Mark Green POLITICAL COURAGE small, from the Panhandle to Key West, ASSOCIATE EDITOR OFTEN RUNS SHORT published ongoing series of editorials. Karen Baird It began with the sunset in July. The DIGITAL EDITOR Ky. will win big fiscally if leaders heavy flak had largely died down and Jonathan Miller stand behind smart decisions acceptance was setting in two months CREATIVE DIRECTOR later when the governor flipped and Jessica Merriman BY MARK GREEN said he wanted to reverse the services CREATIVE SERVICES tax. Democratic legislative leaders Stone Advisory quickly followed suit, foreseeing the Paul Blodgett prospect of ongoing political clubbing CORRESPONDENTS ENTUCKY, like the rest of the by the governor, backed by renewed Michael Agin; Katherine Tandy Brown; nation and the world, is experienc- editorial page fusillades. Russ Brown; Chris Clair; Shannon Clinton; Kevin Gibson; Susan Gosselin; Robert Hadley; ing major change, good and bad. It was costly not just to Florida but to KChange is a reliable if not always welcome the rest of the laboratories of democ- Lorie Hailey; Debra Gibson Isaacs; Kara Keeton; Abby Laub; Tim Mandell; Esther Marr; part of life, so why not lean bravely into racy, as former Supreme Court Justice Greg Paeth; Robin Roenker; Josh Shepherd; the curves rather than let the inevitable Louis Brandeis called state govern- Sean Slone; Katheran Wasson; forces throw us from the cart? ments. Florida instead raised its general Gary Wollenhaupt; Dawn Yankeelov Our commonwealth is blessed with a sales tax another penny and anti-tax PUBLISHER/CEO central location providing one-day’s zealots across the nation were embold- Dick Kelly delivery access to most of the world’s ened to threaten public officials. Politi- ASSOCIATE PUBLISHER greatest economic market and econ- cal scientists in other state capitals have Donna Hodsdon omy. Leaning in, state officials have been afraid to tax services for the past Melissa McGarry embraced a logistics sector that is 30 years lest the experiment blow up in DIRECTOR OF BUSINESS OPERATIONS booming and attracting investment by their faces. Nicole Conyers White the biggest players in today’s world. Kentucky today faces a very serious MARKETING CONSULTANT Now, though, the state needs to need to modernize its tax system to fit Curtiss Smith invest in itself. The governor remains today’s economic priorities and to gen- CIRCULATION/IT committed to taking on tax and pen- erate the revenue required for a com- Josiah White sion system reform to put our state’s petitive education system while also fiscal house in order, specifically men- paying down massive unfunded liabili- FOUNDER tioning higher revenues. He is to be ties for public pension systems. Busi- Ed Lane commended. Stay strong, governor. ness wants lower income tax rates, I was a newspaper reporter in Florida which requires expanding sales taxes to SYNDICATED COLUMNS in 1987 when that no-income-tax state a variety of services. Many Kentucky Creators Syndicate enacted a tax on services to broaden its business leaders say they are willing to PRINTING & CIRCULATION SERVICES sales tax base. It was an innovative and pay more for better education, the Publishers Printing Co. reasonable move, expected then, 30 foundation of workforce development, WEB MARKETING & PUBLISHING years ago, to increase state revenue by because workforce skill is where we Able Engine $1 billion a year and an additional $2.3 compete with our neighbors and the IT SERVICES billion in less than a decade. rest of the world for jobs, income and NetGain Technologies Florida had a reputation for progres- wealth generation. INTERNET SERVICES sive, smart governance then after the Today’s business budgets are tight. QX.net administrations of Reubin Askew and Abrupt adjustment to a new sales tax Lane Communications Group Bob Graham, each savvy two-term gover- on their services will be difficult and is a member of nors. Tallahassee officials spent time nerve-racking for any operation with planning expansion of the sales tax base slim margins. Business owners and and effected it passive-aggressively by managers face either raising prices to The Lane Report is published monthly by: sunsetting the exemption on services. cost-conscious customers or lowering Lane Communications Group But political leaders there lost their bottom lines. 201 East Main Street 14th Floor Lexington, KY 40507-2003 nerve and gave in at the last second, A phase-in over two or more years [email protected] snatching away defeat from the nearly would soften the blow but be tricky to For more information and closed jaws of fiscal victory. administer. It is doable, though. The advertising rates contact: PHONE: 859-244-3500 There was complaining, of course, entire job that Gov. Matt Bevin, House The annual subscription rate is $29. the loudest coming from the then-still- Speaker Jeff Hoover, Senate President (Kentucky residents add $1.74 sales tax.) significant newspaper and advertising Robert Stivers and the rest of the Gen- Newsstand price is $4.50. industry. A few national advertisers said eral Assembly face is doable – if they Send check or money order to: they would boycott, but that made no have the courage to make decisions Circulation Manager financial sense in the fast-growing, for the good of the state and stand The Lane Report 201 East Main Street 14th Floor third-largest market in the nation. Anti- by them. ■ Lexington, Kentucky 40507-2003 tax groups knocked the new Republi- or go to lanereport.com/subscribe can governor, Bob Martinez. But it was The Lane Report corrects all significant errors that the newspaper editorial pages that are brought to the editors’ attention. tipped the political scales. Mark Green is executive editor © 2017 Lane Communications Group Newspaper companies, then in their of The Lane Report. He can be All editorial material is fully protected and must not be reached at [email protected]. reproduced in any manner without prior permission. pre-Internet heyday, mounted a cam- paign attacking the services tax and the

4 JULY 2017 LANEREPORT.COM • THE LANE REPORT

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July Lane 1-20.indd 3 6/30/17 3:22 PM FAST LANE A compilation of economic news from across Kentucky

LOUISVILLE: FORD’S KENTUCKY TRUCK PLANT GETTING BOWLING GREEN: UK HOLDS $900 MILLION INVESTMENT FOR NEW SUV PRODUCTION GROUNDBREAKING FOR NEW MEDICAL COLLEGE CAMPUS ORD Motor Co. is investing $900 million plant upgrades at the groundbreaking ceremony was Kentucky Truck Plant to build held on June 6 at The Medical Fthe all-new Ford Expedition and Lin- Center at Bowling Green for the , which begin arriving Anew coln Navigator University of Kentucky College in dealerships this fall. Both full-size of Medicine-Bowling Green campus. SUVs will be exported to more than 55 The four-year, regional campus medical markets globally, including China. school is the first of its kind in Kentucky Ford is a top auto exporter in the U.S. and is a partnership between The Medi- The investment secures 1,000 jobs cal Center, the University of Kentucky hourly jobs at the Louisville plant – and Western Kentucky University. which currently employs a total of The UK College of Medicine-Bowling nearly 7,600 full-time hourly workers – Green Campus will be a fully functioning Ford’s new Expedition model has a towing capability of and is in addition to a $1.3 billion campus, utilizing the exact same curricu- 9,300 pounds and has a trailer back-up assist feature that makes it easier for drivers of all skill levels to back investment and 2,000 jobs announced lum and assessments as UK’s Lexington up a large trailer. in late 2015 to build the company’s campus. On-site faculty will have UK Col- popular Super Duty trucks. lege of Medicine appointments and teach “Large SUVs are attracting a new generation around the world,” said Joe Hinrichs, Ford executive vice president and president, Global Operations, “and we’re finding new ways to deliver the capability, versatility and technology that customers around the world really want with our all-new Ford Expedition and Lincoln Navigator.”

LOUISVILLE: CHURCHILL EXPANSION BRINGS TWINSPIRES HQ BACK TO KY; ADDS NEW GAMING FACILITY, JOBS

HURCHILL Downs Construction on UK’s new College of Medicine Inc. has been on a fast facility in Bowling Green is expected to be complete track when it comes to by summer 2018. Cmaking news. In the span of three weeks, the company first in small groups and provide simulation/ announced it would be relo- standardized patient experiences with lec- cating the headquarter opera- tures delivered on-site from Lexington uti- tions of its mobile betting lizing educational technology. Clinical partner, TwinSpires, from experiences will also occur at The Medical California to Louisville and Center at Bowling Green and surrounding then released plans to build a Churchill Down’s newest facility will be built on the site that community practices. $60 million gaming facility in previously housed Churchill Downs’ former Trackside (also known as Basic science and early didactic train- Louisville. Both bring the the former Sports Spectrum). ing will be taught in conjunction with promise of new jobs. faculty at WKU through both onsite TwinSpires, a wholly owned division of CDI, is the official mobile betting partner of classes and distance education methods Churchill Downs Race Track, the Kentucky Derby and Breeders Cup, and is a in accordance with UK College of Medi- leading platform for wagering on Thoroughbred, harness and quarter-horse races in cine curricular protocols. Kentucky and around the world. In 2016, $1.1 billion in handle (or 10 percent of total “This partnership helps ensure our wagering on U.S. races) was wagered through TwinSpires. state will remain competitive as the land- CDI has invested $2.2 million to build out the TwinSpires headquarters at its scape of healthcare changes,” said Dr. existing Louisville offices, adding approximately 15,000 s.f. in new office space. Robert DiPaola, dean of the UK College Relocating the TwinSpires headquarter oper- of Medicine. “It also signals a new begin- ations will add 70 high-tech jobs – with sala- ning in the efforts to train more physi- ries ranging between $75,000 and $110,000 cians in Kentucky, for Kentucky, and – to the current Kentucky TwinSpires staff, especially a new beginning for our which numbers more than 200. future students as they embark on this The new 85,000-s.f. gaming facility will be built at Churchill Downs’ former journey and career in medicine.” Trackside site (also known as Sports Spectrum) and will house two quick-service, Longtime UK faculty member and walk-up food venues, as well as a bar with seating for 50 and large-format televisions administrator Dr. Todd Cheever will for guests to take in sporting action year-round. The gaming area will open with 600 serve as the first associate dean for the historical racing machines and a player’s club reward center offering special perks Bowling Green campus. Dr. Don Brown, and benefits, including an exclusive parking area for loyal guests. a vascular surgeon and Bowling Green The company says the facility will create 450 new jobs, including 250 construc- physician, who also serves as director of tion jobs. An estimated 200 new full- and part-time jobs will be created to operate medical education at The Medical Cen- and manage the facility. ter, has been named assistant dean.

6 JULY 2017 LANEREPORT.COM • THE LANE REPORT

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BUSINESS BRIEFS STATE: KY EARNS GOLD SHOVEL AWARD FOR ECONOMIC DEVELOPMENT IN 2016 ANNVILLE ENTUCKY has been awarded the Gold Shovel award from ■ Phillips Diversified Manufacturing has created a new apprentice- ship program to help cultivate more skilled labor in Eastern Kentucky. Area Development magazine, an award that recognizes Founded in the 1993, Phillips is a contract manufacturer for printed the commonwealth’s success in 2016 in attracting corpo- circuit board assembly, appliance control panels, metal fabrication and Krate investments that create jobs and grow the economy. electromechanical and electronic assemblies. The company employs The honor, a first for Kentucky, follows the recent more than 220 people in Clay, Jackson and Laurel counties. announcement that in only five months of 2017, the state shattered its all-time, full-year record for corporate invest- BOWLING GREEN ment. This year’s corporate investments in Kentucky – at ■ The Jewish Hospital Trager Transplant Center, part of KentuckyOne Health, has opened a new outreach clinic in Bowling Green to help patients nearly $5.8 billion – have already topped the 2015 record of in need of transplant evaluations. The new location will offer evaluations for $5.1 billion. Those investments also put Kentucky on pace kidney, liver and pancreas transplantations, and hepatobiliary and pancre- this year to create the most new jobs in a decade. To date in atic surgeries. The main location of the Jewish Hospital Trager Transplant 2017, more than 9,500 new jobs have been announced. Center is located in Louisville on the Jewish Hospital Medical Campus. 2016 Gold Shovel Projects CAMPBELLSVILLE COMPANY NEW/ JOBS INVESTMENT INDUSTRY ■ Campbellsville University has announced plans to offer a Ph.D. (COUNTY) EXPANDING (MILLIONS) program in management beginning this fall, the first Ph.D. program General Motors E 620 $290 Automotive the school has offered. Students will be able to select specializations (Warren) within the program that include leadership/management, human FedEx Ground E 62 $199.30 Distribution resource management and cybertechnology management. Package Systems & Logistics (Boone) COX’S CREEK Safran Landing E 84 $150.30 Aerospace ■ Four Roses Distillery held a grand open- Systems (Boone) ing on June 27 for its newly renovated 60,000- Thai Summit N 216 $110.10 Automotive s.f. bottling facility in Cox’s Creek. The new Kentucky Corp. facility, part of the company’s ongoing $54 (Nelson) million expansion project, houses two bottling Computershare Inc. E 850 $19.90 Financial lines, bottling support areas and office space. (Jefferson) Services Alorica Inc. (Daviess) N 830 $6.40 Financial DANVILLE Services ■ The U.S. Department of Commerce’s Eco- Clinical Trial Ser- N 500 $36.40 Biotech nomic Development Administration is award- vices Inc. (Kenton) ing a $980,000 grant to the city of Danville to More Than a Bakery N 310 $57.10 Food & make water infrastructure improvements (Woodford) Beverage needed to support local businesses. According Toyotetsu America E 100 $63 Automotive to grantee estimates, the investment will create Inc. (Pulaski) 127 new jobs, retain 188 jobs, and attract over Lakeshore Learning N 262 $47.40 Distribution $30 million in private investment. The Danville water infrastructure Materials (Woodford) & Logistics improvements will serve the Corporate Drive Industrial area and indus- tries located in the vicinity of Kentucky Highway 34, improving reliabil- ity of water supply and increasing pressure to support business growth “This Gold Shovel award brings additional national attention and expansion. to the fact Kentucky is a serious economic development con- tender, both in our recent achievements and for what we have in FORT CAMPBELL the pipeline,” Gov. Matt Bevin said. “We’re making changes to ■ The Kentucky Energy and Environment Cabinet has completed a improve Kentucky’s business climate by cutting red tape, revolu- five-megawatt solar array project at Fort Campbell, making it the larg- tionizing our workforce development and building our reputa- est non-utility solar array in the state. The project has enough to power the equivalent of 463 homes and provide more than 10 percent of Fort tion internationally as a top choice for engineering and Campbell’s power requirements in the form of renewable energy. The manufacturing projects, tech investment and service-related solar project covers approximately 20 acres and is located on an aban- businesses. We’re honored to receive this award and are moving doned landfill on Fort Campbell, allowing the Army to apply lessons forward with focus and urgency to bring investment and new jobs learned to other large-scale, landfill-based solar projects that could to communities across Kentucky.” benefit sites in Kentucky as well as nationwide. Area Development, a leading trade publication, invited each of the 50 states to submit information about its top-10 job creation FORT KNOX and investment projects initiated in 2016. Based on the number ■ Sullivan University Fort Knox is now offering a Ph.D. in manage- ment that will begin this fall. The online program will offer concentra- of high-value-added jobs per capita, amount of investment, num- tions in conflict management, human resources, information ber of new facilities and industry diversity of the 10 submitted technology and strategic management. projects, Kentucky qualified for the Gold Shovel award among states with populations between 3 million and 5 million. FORT MITCHELL ■ The Christ Hospital Health Network, headquartered in Cincinnati, has received approval for its certificate of need (CON) application to move forward with construction of an ambulatory surgery center on the site of the former Drawbridge Inn in Fort Mitchell. The project will include a free- standing emergency department, outpatient surgical services and a diagnos- If you have news to share with Kentucky’s business tic center. The ambulatory surgery center will anchor the Fort Mitchell community, please forward your press releases and Gateway Project, a mixed-use project developed by Northern Kentucky- photos/logos/graphics to [email protected]. based Brandicorp that will include a hotel, restaurants, retail businesses In order to reproduce well, images must be large enough and multi-family units. Edgewood-based St. Elizabeth Healthcare, one of to publish in high resolution (300 dpi). the largest medical providers in the Northern Kentucky region, has opposed the CON and has indicated it plans to appeal the decision.

8 JULY 2017 LANEREPORT.COM • THE LANE REPORT

July Lane 1-20.indd 8 6/30/17 3:22 PM WHITLEY CITY: MULCH COMPANY TO OPEN BUSINESS BRIEFS WHITLEY CITY MANUFACTURING PLANT Southwest photo HEBRON of IMS Bark Co. ■ Southwest Airlines offi- Georgia, a provider cially launched its new service of mulch, soil and out of the Cincinnati/North- Srock products and other ern Kentucky International landscaping material, has Airport (CVG) on June 4. announced plans to The carrier is offering five locate a new manufactur- daily nonstop flights between CVG and Chicago’s and three between CVG and ing operation in Whitley Midway Airport Bal- timore/Washington International Airport. City. The company is pur- ■ Allegiant has announced plans to begin flying a new route between the chasing a 125,000-s.f. Cincinnati/Northern Kentucky International Airport (CVG) and industrial building on Providence, R.I., beginning Nov. 17 with twice-weekly service. United Air- approximately 65 acres in lines has also added a new daily nonstop route between CVG and San Corbin and plans to begin renovating the facility later this Francisco. United has been one of the fastest growing carriers at CVG over the last two years, growing their capacity by more than 35 percent. year. The project includes the purchase and setup of equip- ment for materials processing and bagging. HIGHLAND HEIGHTS Founded in 1974, the family-owned company currently ■ Northern Kentucky University has launched an online graduate certifi- operates two manufacturing plants in Alabama and one each cate program in Total Worker Health to help human resource professionals in Georgia, Mississippi and South Carolina. The company and those in management improve the overall health and well being of their processes raw materials, such as bark from sawmills, for use in employees. As a Total Worker Health affiliate of the National Institute for mulch and soil and produces more than 150,000 bags of Occupational Safety and Health, NKU’s Total Worker Health certificate emphasizes applying scientific findings to workplace settings to improve product daily. employee and organizational health. The online program includes six The company’s products are distributed throughout the courses offered consecutively year-round and can be completed in one year. Southeast to customers that include Walmart, Lowes, The Home Depot and Ace Hardware. JEFFERSONTOWN The Kentucky operation will create 21 new jobs. ■ Medical equipment manufac- ture Isopure Corp. is relocating its operations from Simpsonville to a larger facility in Jefferson- LOUISVILLE: NORTON PLAN $38M CANCER town’s Bluegrass Commerce CENTER FOR NE JEFFERSON COUNTY Park to accommodate the com- pany’s growth. Isopure, which designs, assembles and markets water-purification and concentrate mixing ORTON devices needed for kidney dialysis, has purchased a 66,800-s.f. building that Health- previously housed Kenmark Optical Inc. Kenmark relocated its operations care i s earlier this year to another building in Bluegrass Commerce Park. Company Ninvesting $38 officials said being closer to UPS’ Worldport hub in Louisville would help million to build reduce both transportation costs and time. Isopure currently has 38 employ- a new compre- ees, and expects that number to grow. hensive cancer center in north- ■ 3rd Turn Brewery has tripled its presence in Jeffersontown with the eastern Jeffer- acquisition of two buildings in the Gaslight Square District. The com- pany is still in the process of developing plans for the two properties, son County. which previously housed the Michael Thomas Dance Center and the The Norton Louisville Coffee Co. 3rd Turn is currently finishing its second opera- Cancer Insti- tion, a brewery, tap room and four-acre farm that is set to open soon in tute – Browns- The new Norton Cancer Institute – Brownsboro will Oldham County. boro will be a bring all of Norton’s oncology subspecialties and services freestanding, under one roof for the first time. LEXINGTON ■ three-story struc- The University of Kentucky has opened a Sports Medicine , launched in part by a $4.2 million grant from the ture located across from . Research Institute Norton Brownsboro Hospital U.S. Department of Defense to study performance optimization and The new facility will join other treatment locations, includ- injury reduction for the tactical athletes of the U.S. Military. The ing Norton Cancer Institute on Broadway, which offers radia- 10,000-s.f. facility is outfitted with sophisticated biomechanical, physio- tion therapy and multidisciplinary clinics; a radiation center logical, musculoskeletal, and neurocognitive equipment, including a on the Norton Healthcare St. Matthews campus; nine “concussion room” and a biomechanics laboratory with technology like oncology practices throughout Louisville, Southern Indiana, that used for video game development. Equipment shaped like a horse Shelbyville and Shepherdsville; and numerous other services can simulate movement for jockeys and other equestrians. The lab will study important contributors to strength, endurance, operational per- in Louisville and Southern Indiana. The new facility will bring formance and injury risk for both civilian and military athletes. all the oncology subspecialties and services covered by the institute together for the first time in one location and will ■ The University of Kentucky board of trustees has approved a poten- also house Norton Cancer Institute’s newest Prompt Care tially transformative town-gown real estate deal with Core Spaces, a Chi- Clinic, which provides urgent care for oncology patients to cago-based real estate company, that will preserve a key entryway into the help them avoid emergency department visits outside of regu- city and campus while also leading to a major downtown retail develop- lar office hours or between regularly scheduled cancer care ment. The development could potentially create hundreds of construction jobs and economic development in the heart of the city, moves that would appointments. significantly advance efforts by UK and Lexington in their joint efforts to The 48,591-s.f. building is being designed by TEG Archi- build a long-term plan to create and promote more commercial develop- tects and is slated to be complete by October 2018. ment along corridors near the UK campus.

THE LANE REPORT • LANEREPORT.COM JULY 2017 9

July Lane 1-20.indd 9 6/30/17 3:22 PM FAST LANE

BUSINESS BRIEFS ASHLAND: KY POWER GRANTS HELP FUND EASTERN KY ECONOMIC DEVELOPMENT LEXINGTON WELVE Eastern Ken- ■ The Kentucky Horse Park Commission and the United States Equestrian Federation Inc. have signed a 40-year ground lease on tucky projects have three acres of land, with an option to extend the lease for an additional been selected to share 40 years at the conclusion of the initial term. The organization plans to T$400,700 in economic build a 35,000-s.f. building on the property. The Kentucky Horse Park is development grants from home to more than 30 national, regional and state equine organiza- Ashland-based Kentucky tions, most of which fall under the jurisdiction of US Equestrian. Power as part of the Ken- LOUISVILLE tucky Power Economic ■ Falls City Brewing Co.’s plans for a new brew- Development Growth ery have shifted to a new location after a deal to Kentucky Power’s Brad Hall, left, and Grants (K-PEGG) and the acquire ownership of a building in Louisville’s Jacob Colley, right, present $50,000 to John Kentucky Power Economic Portland neighborhood did not pan out. The Tackett with the Eastern Kentucky Advancement Program company is now working on building a new brew- Advanced Manufacturing Institute. Tackett will be an instructor at the education center (KEAP). ery facility in the NuLu neighborhood that will The K-PEGG is funded include a taproom, outdoor beer garden, banquet that will retrain out-of-work coal miners. hall/event space as well as space for production through the Kentucky and a canning line. The new facility is expected to Economic Development Surcharge approved by the Kentucky be operational by late fall. Public Service Commission in 2015. For every 15 cents col- lected monthly from customers, company stockholders match ■ The University of Louisville has launched an official crowdfunding the customer contributions dollar for dollar to generate more platform that gives the community an opportunity to support university than $600,000 annually for investment at the local and projects that are meaningful to them. Examples of projects that were regional levels. The program is available in all 20 counties featured in May include causes such as holistic autism treatment, Par- kinson’s disease and service learning trips. Donations go directly to the served by Kentucky Power. project chosen and are tax deductible to the extent permitted by law. The KEAP program, created in 2014, will provide $1 million in economic development assistance to customers over five years. ■ Faculty members at the University of Louisville School of Medi- KEAP is specific to Boyd, Carter, Elliott, Lawrence, Johnson, Mar- cine have begun developing a national training program to instruct tin and Morgan counties and must be used for programs and educators at universities across the United States in teaching interpro- projects such as job retention; expansion surveys; wage and ben- fessional palliative care to those who care for cancer patients. Funded efit surveys; and retaining and attracting new industries. by a $1.4 million award over five years from the National Cancer Insti- Among the projects receiving funding are an effort to help tute, the UofL training curriculum will build on a successful interpro- fessional program in education for palliative care in cancer that has companies in the region develop the quality control certifica- been in place at UofL since 2010. tion needed to become a military/government contractor; an education center to retrain out-of-work coal miners for ■ Citing a resurgence in advanced manufacturing jobs; development of a helicopter the auto industry, Forbes painting facility at the Big Sandy Regional Airport; and equip- magazine has named Lou- ment for a fiber-optics training program. isville the No. 1 city in the U.S. where manufactur- ing is thriving. Since 2011, manufacturing COVINGTON: UPTECH RANKED AMONG employment in the Lou- NATION’S TOP ACCELERATOR PROGRAMS isville-area has grown 30.2 percent, bringing the , an accelerator for data-driven employment total to PTECH 83,300 jobs, representing startup companies, has been named one 12.41 percent of jobs in of the top accelerators in the country by Uthe Seed Accelerator Ranking Project (SARP), the local economy. Louisville’s diverse manufacturing economy includes such major manufacturers as Ford, GE Appliances, Clariant Corp., a joint effort by the Massachusetts Institute Faurecia and Raytheon. Louisville also is home to FirstBuild, an inno- of Technology and Rice University. vative makerspace dedicated to designing, engineering, building and sell- Now in its fifth year, SARP ranks every accelerator in the coun- ing the next generation of home appliances. try based on valuation, qualified exits, qualified fundraising, sur- vival, and founder satisfaction. The rankings are meant to ■ Two Louisville design firms – Mindsalt and Jet A Studio – have merged to create a new company. Relay Design Co. specializes in “creating, brands, provide guidance for entrepreneurs who are considering going digital interactions and physical spaces that shape how people experience through an accelerator, and who are wondering how they differ companies.” The firm’s Louisville-based clients include 21c Museum on performance across various categories. Hotels, Humana and Waterfront Botanical Gardens. The agency also UpTech is an intense, six-month accelerator program that retains clients in Nashville, Cincinnati, Dayton and Maryland. Relay plans to works to create investor-ready startups by providing founders expand both its local and regional client base in the coming year. with startup education, one-on-one weekly advising, free co- working space, dedicated legal and accounting counsel, and ■ Louisville Forward, the city’s economic development organization, and Greater Louisville Inc. (GLI), the city’s chamber of commerce, early investor feedback through our investor relationships. have been jointly recognized as Top U.S. Economic Development Participants also have access to staff resources for aid Groups for 2016 by Site Selection magazine. The recognition is based in graphic design, an entrepreneur speaker series with more on total projects, total investment associated with those projects and than 30 speakers, access to more than 200 mentors, a univer- total jobs associated with those projects, with those same three numbers sity student intern grant, and gigabit internet. calculated per capita for the metro area. Working together in 2016 with UpTech is in the process of putting together its sixth partners in two states and 15 counties, the two groups have helped the Greater Louisville region welcome 70 projects, representing nearly $1.4 cohort, which will consist of 10 companies that will receive up billion in investment and more than 8,500 jobs. to $50,000 each.

10 JULY 2017 LANEREPORT.COM • THE LANE REPORT

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BUSINESS BRIEFS STATE: NEW TASK FORCE CHARGED WITH HELPING DISABLED FIND EMPLOYMENT LOUISVILLE OV. Matt Bevin has formed ■ Payment Alliance International, a Louisville-based company that is the nation’s largest privately-held provider of ATMs, has moved its a 23-member task force headquarter operations into a new 30,000-s.f. building located in the charged with addressing Old Henry Crossings Business Park. PAI centers in three other states Gbarriers to employment among have already relocated to expanded facilities earlier this year to accom- people with disabilities, foster modate the company’s growth. children and individuals with sub- stance abuse or criminal records. MOREHEAD The task force will bring ■ The National Science Foundation’s Robert Noyce Teacher Scholar- ship program has awarded Morehead State University a $1.2 million together every department of grant, which will provide 34 scholarships of up to $10,000 for up to two state government that is involved years for junior and senior MSUTeach students. As a condition of the in workforce development with members of the private sector. acceptance of the scholarship, MSU Noyce Scholars agree to serve as a “There is dignity that comes from work, and there is a STEM teacher in a high-need local educational agency for two years. MSU sense of satisfaction and respect – for oneself and for others will collaborate with Carter, Fleming, and Rowan County School Districts in – that comes from being an engaged part of the community,” Kentucky and in the Bronx, N.Y. New World High School said Bevin. “And there’s nothing more integral than the dig- MUNFORDVILLE nity associated with being part of the fabric of that commu- ■ Munfordville has been designated as Kentucky’s 17th Trail Town. The nity through work.” Kentucky Trail Town program is a tourism-based development program that Deputy Assistant Secretary Jennifer Sheehy of the U.S. provides a plan for communities to capitalize on outdoor recreation and Department of Labor Office of Disability Employment Policy adventure tourism. Activities in the Munfordville area include the Green commended Kentucky, which is the first state in the nation to River, Big Buffalo Crossing Canoe & Kayak, camping and hiking at initiate such a task force. “We realize that the real change and the Green River Park & Arboretum, the Mammoth Cave Loop of the Trans- America Cycling Route and several other locally designated cycling routes. real work does not happen at the federal level,” said Sheehy. “We need to look at what federal policies do work, but also what is OWENSBORO happening in states that works – and then support that.” ■ Brescia University has received a $1 million Current statistics show Kentucky’s labor participation at 54.7 gift to establish the Charles Albert Reid School percent, well below the national average of 62.9 percent. In addi- of Business. The gift is from the family of the tion, 15.7 percent of the commonwealth’s population is classified late Charles Albert Reid, founder of Indepen- as “disabled,” compared to only 10.4 percent nationally. dence Bank and a graduate of Brescia. Ground will be broken on the project in early 2018. The Kentucky Work Matters Task Force will work closely with the U.S. Department of Labor Office of Disability PAINTSVILLE Employment Policy and their State Exchange on Employ- ■ American Metal Works has teamed with Big Sandy Community ment & Disability. SEED is a collaborative effort with state and Technical College to create a new CNC (computer numerical intermediary organizations to help state leaders effectively control) programming apprenticeship program in Paintsville. The pro- address policy barriers that may hinder the employment of gram will enable apprentices to begin a four-year CMC program at people with disabilities. American Metal Works that involves 2,000 on-the-job training hours and 144 classroom hours per year. American Metal Works was started in A complete listing of the members assigned to serve on 2016 by James Glass and Dennis Rohrer and is a small business manu- the task force is listed on page 17. facturer of parts for the aerospace, automotive, biomedical, defense and manufacturing industries. AVIATION COMPANY WILL SOMERSET MARTIN COUNTY: ■ The Business & Community Training Center, in partnership with OPEN NEW MAINTENANCE OPERATION ExecuTrain of Kentucky, has been conducting a new series of profes- sional, soft-skills training courses at The Center for Rural Development HOROUGHBRED Aviation Maintenance Inc. has in Somerset in response to employers who say they are constantly looking announced plans to open a 15-employee operation at for job applicants who can communicate clearly, take initiative, problem- Big Sandy Regional Airport in Martin County that will solve and get along with coworkers. The courses, which wrap up later this Tservice its current clients and help attract new business to month, include Business Etiquette, Better Business Writing, Excellence in Eastern Kentucky, southeast Ohio, Virginia and West Virginia. Supervision, Customer Service, Effective Communication Skills, Time Management, and Conflict Management, among others. Thoroughbred, which is headquartered in Georgetown, provides aircraft maintenance, avionics, painting and struc- WINCHESTER tural repair, along with overhauling and refurbishment. The ■ Clark Regional Medical company has purchased a hangar in Martin County to house Center has partnered with the new operation. to Wound Care Advantage Thoroughbred was founded in 1988 as Thoroughbred Heli- open a new outpatient wound and in 2005 was sold to the care and hyperbaric center. copters RJ Corman Railroad During hyperbaric therapy, Group, which renamed it RJ Corman Aircraft Maintenance. patients are given 100 percent Last year, the company was bought by Todd Case and Joe Otte, oxygen in a pressurized envi- who reinstated the Thoroughbred name. In addition to its ronment. The combination of Georgetown headquarters, the company has locations in Dan- pressure and oxygen increases ville, Somerset and Richmond. Clients include private and cor- oxygen in the bloodstream, porate general-aviation fixed wing and helicopter customers, which in turn speeds up the primarily in Kentucky, Tennessee and Ohio. Thoroughbred also healing process. The new facil- ity will have four rooms to treat patients with chronic wounds associated maintains contracts with flight schools, federal government with diabetes, venous insufficiency, osteomyelitis, immobility and agencies and law enforcement departments in Kentucky, Ohio, delayed effects from radiation, and two hyperbaric chambers. Tennessee, Indiana, Arkansas and Illinois.

12 JULY 2017 LANEREPORT.COM • THE LANE REPORT

July Lane 1-20.indd 12 6/30/17 5:05 PM LEXINGTON: BIOTECH COMPANY EXPANDS BUSINESS BRIEFS TO FIGHT MOSQUITO-BORNE DISEASES WOODFORD COUNTY , a OSQUITOMATE INC. ■ A study conducted by the University of Kentucky found that agri- Lexington biotech com- culture is responsible for one of three jobs and $565 million in annual pany, is expanding its revenue. The study looked at not only production agriculture, but also Moperations to meet demands of businesses that produce agricultural inputs, wholesale and retail busi- mosquito-borne disease and pest nesses, and service-based businesses such as veterinary, finance, recre- control in the United States. ation and transportation. The study also examined stud fees for the The company, a spinout of the Thoroughbred industry in Woodford County, home to 11 of the top 20 Thoroughbreds covering mares in the country. The sales tax imposed , is The Asian tiger mosquito is known University of Kentucky on those services gets turned around into breeders’ incentive funds. to carry infectious diseases like the expanding its facilities to produce Zika virus. sterile male mosquitoes that will STATE serve as a nontoxic, non-GMO ■ The latest State of Small Business and Entrepreneurship report from pesticide. Unlike female mosquitoes, male mosquitoes do not the Kentucky Small Business Development Center reveals that bite. Since female mosquitoes tend to be monogamous, once a small businesses make up 99.3 percent of Kentucky employers and sterile male mates with a female, her eggs will not hatch, eliminat- account for 45 percent of the private-sector workforce. According to the report, small-business owners and entrepreneurs ranked access to ing the next generation of mosquitoes. At capacity, the new facil- capital as the major concern for startups and expansion in 2016. ity will be able to produce in excess of 50 million eggs per week and three million sterile males per week. Poised for Environ- ■ Kentucky is one of 17 states in which AT&T plans to offer its Fixed mental Protection Agency approval, the company will be able Wireless Internet for rural and underserved areas. The Fixed Wireless to sell the sterile male mosquitoes to combat pest control issues. Internet delivers a home internet connection with download speeds of The new 6,000-s.f. mosquito production facility will be the at least 10Mbps and comes from a wireless tower to a fixed antenna on first of its kind to produce and distribute non-GMO ZAP male customers’ homes or businesses, offering a cost-effective way to deliver high-speed internet to customers in rural areas. mosquitoes as a biopesticide against the Asian tiger mosquito, an invasive mosquito commonly known to carry infectious ■ Hopebridge, an Indiana company that provides personalized thera- diseases like Zika virus, dengue, chikungunya and pet animal pies for children with autism and other communication and sensory heartworm. The facility will serve as a model for future facili- challenges, is expanding into Kentucky with offices opening this sum- ties throughout the country and internationally. mer in Louisville, Bowling Green and Lexington. The company plans The company is creating 12 new jobs in addition to the 10 to ultimately employ more than 160 full- and part-time employees existing positions at its research and development facility. in Kentucky.

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July Lane 1-20.indd 13 6/30/17 3:22 PM INTERSTATE LANE Business news from Indiana, Ohio, Tennessee and West Virginia

BUSINESS BRIEFS INDIANA: NEW UPS PROCESSING HUB TO DELIVER 575 NEW JOBS NEAR INDY OHIO ■ Worthington Industries, a Columbus, PS plans to open a new $260 Ohio-based diversified metals manufactur- million package processing ing company, has acquired Amtrol for facility on a 91-acre site in approximately $283 million. The purchase UPlainfield, Ind., west of Indianapolis. of Amtrol, a leading manufacturer of pres- Together with improvements to sure cylinders and water system tanks, strengthens Worthington’s indus- existing buildings, UPS expects to trial gas and consumer products businesses and complements its refrigerant cylinder manufacturing capabilities. The acquisition also add more than 575 full-time equiva- adds water and well tank product lines to Worthington’s wholesale and lent positions over the next five years. retail consumer products portfolio. UPS currently employs more than 9,500 people across Indiana. ■ Anthem Blue Cross and Blue Shield is withdrawing from the indi- A portion of the 893,000-s.f. hub vidual health care marketplace offerings in Ohio and will offer only one will open this fall for trailer pro- UPS’ new Plainfield, Ind., off-exchange medical plan in the state. In a statement announcing the cessing with a delivery operation to package-processing facility withdrawal, Anthem said, “The Ohio Individual market remains volatile is expected to be completed and the lack of certainty of funding for cost-sharing reduction subsi- dispatch UPS trucks in time for the in late 2019. dies, the restoration of taxes on fully insured coverage and an increas- busy holiday season. ing lack of overall predictability simply does not provide a sustainable The Plainfield facility build-out will be completed in late path forward to provide affordable plan choices for consumers.” The 2019. Company officials say advanced package scanning and decision does not affect plans that are grandfathered, employer-based sortation equipment will allow flexibility to make changes as plans or Medicare Advantage plans. volume is routed through complex systems of conveyors and belts in the building or directed in transit to other area facilities. ■ UnitedHealth Group plans to add 700 customer service positions in Dublin, Ohio, to support care providers and individuals nationwide UPS is also evaluating infrastructure availability for alter- who are enrolled in the company’s health care plans. UnitedHealth native fuels at the new building. Indiana was one of the first currently has more than 3,500 employees in Ohio, including 1,500 who Midwest locations when UPS expanded natural gas for its are with Optum, the company’s health services business. tractor-trailer fueling in 2013. Since then, the company already has surpassed its then-stated sustainability goal for OHIO/TENNESSEE the UPS alternative fuel and advanced technology fleet to ■ Citing a change in its snack sales and distribution model, Kellogg travel 1 billion miles by the end of this year. Co. is closing its Cincinnati and Memphis distribution centers in late July. The closings will result in the permanent layoff of 248 employees in Cincinnati and 172 employees in Memphis. TENNESSEE: DISTILLERS GUILD UNVEILS TENNESSEE 30-STOP TENNESSEE WHISKEY TRAIL ■ IKEA, a Swedish home fur- nishings retailer, has HE Tennessee Dis- announced plans to open a has cre- 341,000-s.f. store on 34 acres in tillers Guild Antioch, Tenn., approximately ated a distillery tour Tacross the state to showcase 13 miles southeast of downtown Nashville. The store will be the the art of distilling and the company’s second in Tennessee history and culture of whis- – the Memphis location opened key making. in December 2016 – and is The Tennessee expected to open by mid-2020, consists of 30 distilleries ranging from bou- creating more than 500 construction jobs and approximately 250 IKEA Whiskey Trail staff positions. tique-sized distilleries to large internationally recognized operations that span the state. Along the trail, visitors can ■ PathGroup, one of the nation’s largest private providers of pathology get a taste of the history and tradition of Tennessee whiskey. and clinical lab services, is investing $18 million to expand its operations in “The Tennessee Whiskey Trail is a joint effort by all of Nashville. The expansion will include adding more than 200 jobs. our guild members to feature Tennessee whiskey and moon- shine, as well as the craftsmen and women that make them,” ■ China-based automotive parts manufacturer said Kris Tatum, president of the Tennessee Distillers Guild. Minth Group Ltd. is investing more than $13 million over the next five years to establish a “On the trail, visitors can learn about the art of distilling and manufacturing facility in Lewisburg, Tenn., that about the history and the culture of whiskey-making that is will create 200 new jobs. Minth is a leading legendary in our state.” designer and manufacturer of structural body, Neighboring state Kentucky launched the Kentucky Bour- trim and decorative parts for the auto industry. The Lewisburg facility bon Trail in 1999 and has seen bourbon-related tourism will have full manufacturing capabilities and will also act as a distribu- explode in the years since. The Kentucky Bourbon Trail has tion warehouse for parts manufactured at Minth facilities abroad. become internationally known and hosted more than 1 million visits in 2016. The attraction has grown 300 percent in the last 10 ■ HomeServe USA, a company that provides home repair plans, is constructing a new $5.5 years and spawned the Kentucky Bourbon Trail Craft Tour million, 46,000-s.f. facility in Chattanooga to in 2012, which features the state’s thriving micro distilleries. house its customer service operations in the Similar to Kentucky’s set-up, the Tennessee Whiskey Trail area. The expansion will create nearly 200 will feature free passport booklets that encourage visitors to new jobs over the next five years. HomeServe collect stamps at each of distillery on the trail. Those who has operated in Chattanooga since 2010 and currently employs a staff collect all of the stamps will receive a commemorative gift to of 320. mark their achievement.

14 JULY 2017 LANEREPORT.COM • THE LANE REPORT

July Lane 1-20.indd 14 6/30/17 3:22 PM KENTUCKY INTELLIGENCER® A sampling of business and economic data

THE LANE REPORT • LANEREPORT.COM JULY 2017 15

July Lane 1-20.indd 15 6/30/17 3:22 PM CORPORATE MOVES New leadership for Kentucky businesses DEPARTURES ■ David Reeder has resigned as president and chief executive officer of ACCOUNTING ■ Brandon Neal has joined the Bowling Lexington-based Lex- ■ David Sorrell has joined Dean Dorton as an Green office of WealthSouth as vice president, mark International. associate director in accounting and financial wealth management advisor. James Fereday outsourcing, with an equine accounting focus. has joined the Lexington office of Wealth- ■ Trey Grayson has David Sorrell comes to the position South as senior vice president, chief invest- stepped down as president Reeder from Three Chimneys Farm, ment officer. Clint Long has joined the and CEO of the Northern where he served as chief Lexington office as vice president, institu- Kentucky Chamber of Commerce. financial officer. tional investment consultant.

ARCHITECTURE dred Executive Vice President and Chief Strat- ■ Jessica Harris has been egy Officer William Altman will take on the promoted to director – archi- additional responsibility of chief of staff to Kin- tecture at TEG Architects in Jessica dred President and CEO Benjamin A. Breier. Louisville. Harris ■ Chris Chirumbolo has been named president BANKING/FINANCE and chief executive officer of Carespring, a ■ Chris Jackson has joined Citizens Union Brandon James Clint Northern Kentucky company that specializes in Bank in Shelbyville as vice president-senior Neal Fereday Long rehabilitation and long-term health care services. SBA lender. ■ Gail Burke Tway Bride ■ Passport Health Plan has promoted Carl ■ Community Trust Bank has announced the has joined Hilliard Lyons Felix to the position of vice president and following appointments: Debbie Baber – mar- Trust Co.’s Louisville office as chief operating officer. ket assistant vice president; Michele Branham senior vice president and – assistant vice president; Delena Clevinger – portfolio manager. LEGAL assistant vice president; Will G. Davis – assistant ■ Calvin Fulkerson, Bill vice president, relationship officer for retire- EDUCATION George, Amber Knouff, ment/institutional services; Shirie Hawkins – ■ Laura Damron has been Gail Burke Kyle Virgin, Chad Thomp- commercial loan officer and assistant vice named director of public Tway Bride son and Kathryn Eckert president; Jessica Kendrick – market assistant affairs at the University of have joined the McBrayer, vice president, Danville; Michael J. Kenney – Pikeville. McGinnis, Leslie & Kirkland vice president; – vice president; law firm in Lexington. Tammy Kidd Bill – market assistant vice president; ■ has been named provost and Ethel Sparks Mark Arant George Dominique Vandenberg – market assistant vice vice president for academic affairs at Murray ■ Nancy A. Spivey has been president, State University. named marketing director for DBL Law, a full- Richmond; service firm with offices in Crestview Hills, Ashley FOOD/SPIRITS/HOSPITALITY Louisville and Cincinnati. White – assis- ■ Mary Gratzer has been named as the first- tant vice presi- ever director of the Kentucky Bourbon Affair. ■ Andrew L. Sparks has joined Dickinson dent; and Wright’s Lexington office. Jimmy ■ Brandon Rhoten has been named global Workman – chief marketing officer for Louisville-based NONPROFIT assistant vice Michele Delena Papa John’s International. ■ Jerquil Campbell has president. Branham Clevinger joined the Boys and Girls GOVERNMENT Clubs of Kentuckiana as vice ■ Daniel S. Dumas has been president of development appointed to oversee Ken- and communications. tucky’s adoption and foster care system. REAL ESTATE Jerquil ■ James Mueller has joined Campbell ■ Ronald “Brian” Wright Hagan Properties Inc. in Lou- has been named common- Daniel isville as chief operating officer. Will Shirie Jessica wealth’s attorney for the 29th Dumas Davis Hawkins Kendrick judicial circuit of Kentucky, UTILITIES representing Adair and Casey counties. ■ L. Allyson Honaker has been named general ■ Timothy Ray “Tim” Coleman has been counsel of the Kentucky Gas named circuit judge for the 38th judicial cir- Association. cuit, division 1, representing Butler, Edmon- son, Hancock and Ohio counties. OTHER ■ Bill Laramee has been Allyson named of counsel for Trek ■ Frederick Smock has been named by Gov. Honaker Michael Tammy Ethel Matt Bevin as Kentucky’s poet laureate for Advancement, a Lexington Kenney Kidd Sparks 2017-2018. Smock is a Louisville poet, author philanthropy consulting firm specializing in and teacher. higher education and nonprofit fundraising.

■ Blake Ross Chambers has been named ■ Barney Estes has been named general commonwealth’s attorney for the 38th judicial manager of Newport on the Levee. circuit of Kentucky. ■ Sarah Pickerel has been named executive HEALTH CARE director of the Republican Party of Kentucky. ■ Dominique Ashley Jimmy Kindred Healthcare has named Brian as president of Kindred Innovations, ■ has joined Lexington-based Vandenberg White Workman Holzer Jan Craigmiles where he will be responsible for furthering the Associations International as vice president of company’s portfolio of innovative post-acute care people and communications. products and services on a national level. Kin-

16 JULY 2017 LANEREPORT.COM • THE LANE REPORT

July Lane 1-20.indd 16 6/30/17 5:45 PM ON THE BOARDS Kentuckians named to organizational leadership roles

AMERICAN serve on Kentucky’s Charter Schools Advisory and Independent Living; Katie Shepherd, IMMIGRATION Council: Brandon Kyle Wilson, Cunningham; Kentucky Supreme Court designee; Mike LAWYERS Holly Iaccarino, Versailles; Wayne Lewis, Ver- Michalak, citizen at-large (Shelbyville); Katie ASSOCIATION sailles; Martha Fitts Clark, Owensboro; Aaron Wold Whaley, citizen at-large (Lexington); ■ Matthew P. Gunn has been Thompson Jr., Richmond; Milton Seymore, Beth Davisson, citizen at-large (Louisville; elected chapter chair for the Louisville; Ben Lovell Cundiff, Cadiz; Gary and Tim McGurk, citizen at-large (Prospect). Mid-South Chapter of the Wayne Houchens, Bowling Green; and Valerie , Fisherville. LEAGUE OF WOMEN VOTERS American Immigration Lawyers Matthew O’Rear Association. Gunn is an attor- ■ The League of Women Voters of Lexington Gunn ney with Dinsmore & Shohl. KENTUCKY INSTITUTE ON AGING has elected its officers and directors for the ■ Bari Ann Lewis and Brett Bachmann have 2017-2018 year: President – Tammy Fagley; CENTRAL KENTUCKY been appointed to the Kentucky Institute for First Vice President – Cindy Heine, Treasurer RIDING FOR HOPE Aging. Lewis, of Louisville, is director of edu- – Steve Senft; and Second Vice President – ■ Adam cation and advocacy at the Alzheimer’s Associ- Donna Blue; Directors – Richard Heine, Bowden and ation. Bachmann, also of Louisville, is CEO of Judy Johnson, Carol O’Reilly, Barbara Vicky Myers the Heuser Hearing Institute. Sterrett, Lauren Wallace, Lynne Flynn, have joined Jennifer Jackson and Shayla Johnson. the board of KENTUCKY RETIREMENT SYSTEMS directors of ■ Patrick Kelly Downard has been appointed NORTH AMERICAN INTERNATIONAL Central Ken- to the board of trustees of the Kentucky Retire- LIVESTOCK EXPOSITION tucky Riding ment Systems. Downard is retired from the ■ Carrie Tilghman Derossett and Rebecca Adam Vicky for Hope, an Louisville Metro Council. Nash Rowe have been appointed to the exec- organization Bowden Myers utive committee of the North American Inter- that offers a variety of equine-assisted activities KENTUCKY STATE FAIR national Livestock Exposition, which oversees and therapies. Bowden is part-owner of Diamond ■ The following individuals have been the largest all-breed, purebred livestock show Creek Farms. Myers is chief development officer appointed to the Kentucky State Fair board: in the world. Derossett, of Glasgow, is the of UK HealthCare at the University of Kentucky. Dr. Mark E. Lynn, Louisville; Michael Logan County 4-H development agent for edu- Edward Poynter, Stanford; and Andrew cation at the University of Kentucky Coopera- KENTUCKY ADVISORY COUNCIL Marshall Coyle, Owingsville. tive Extension. Rowe, of Campbellsville, is a FOR MEDICAL ASSISTANCE family and consumer sciences extension agent ■ Sheila Marshall Currans, Susan Scott KENTUCKY TEACHERS at the University of Kentucky. Steward, Dr. Ashima Gupta and Dr. Steven RETIREMENT SYSTEM Compton have been appointed to the Kentucky ■ Frank E. Collecchia and John Valentine SPALDING UNIVERSITY Advisory Council for Medical Assistance. Cur- Boardman III have been appointed to the ■ Andrew Trager-Kusman and Craig rans, of Cynthiana, is a registered nurse and board of trustees of the Kentucky Teachers’ Mackin have been named to the Spalding CEO of Harrison Memorial Hospital. Steward, of Retirement System. Collecchia, of Louisville, is University board of trustees. Hazard, is system director of home services at an adjunct professor of finance at the Univer- Appalachian Regional Healthcare. Gupta, of sity of Louisville. Boardman, of Lexington, is a SOUTHEAST KENTUCKY Louisville, is a physician at Kumar Eye Institute. financial planner. ECONOMIC DEVELOPMENT CORP. Compton, of Franklin, is a physician at Compton ■ Carol Wright, president & Compton Eye Care. KINDRED HEALTHCARE and chief executive officer of ■ The following individuals have been named Jackson Energy Cooperative, KENTUCKY ASSISTIVE to the board of directors for Louisville-based has been elected to the board TECHNOLOGY SERVICE (KATS) Kindred Healthcare: Joel Ackerman, of directors of the Southeast NETWORK ADVISORY COUNCIL Jonathan D. Blum, Benjamin A. Breier, Kentucky Economic Develop- ■ Tina Gail Jackson, Debra Bauder, Karen Paul J. Diaz, Heyward R. Donigan, Richard ment Corp. Coulter, Tishana Terry-Ann Wokocha, Duke Goodman, Christopher T. Hjelm, Frederick Petit and David Wayne Dennis have been J. Kleisner, Dr. Sharad Mansukani, UNION COLLEGE Carol appointed to the Kentucky Assistive Technology Dr. Lynn Simon and Phyllis R. Yale. ■ Terry Smallwood has Wright Service (KATS) Network Advisory Council. Jack- joined the board of trustees son, of Louisa, is a community builder. Bauder, KENTUCKY WORK MATTERS of Union College in Barbourville. Smallwood, of Louisville, is an associate professor at the Uni- ■ Gov. Matt Bevin has appointed the following a graduate of Union, is first vice president versity of Louisville. Coulter, of Murray, is an individuals to the newly formed Kentucky investment officer for Wells Fargo Advisors. assistant professor at Murray State University. Work Matters Task Force, which has been Wokocha, of Paducah, is an occupational thera- charged with helping disabled and disadvan- WORLD TRADE CENTER KENTUCKY pist. Petit, of Lexington, is a disability accommo- taged individuals find employment: Gover- ■ Robert Helton and Chip McGaughey have dations consultant at the University of Kentucky. nor’s Deputy Chief of Staff Adam Meier; been appointed to the board of directors of Dennis, of Lawrenceburg, is an accountant. Executive Cabinet Secretary Scott Brinkman; the World Trade Center Kentucky. Helton is Bolton, of Bowling Green, is a motivational Cabinet for Health and Family Services Secre- executive director of the Morehead-Rowan speaker. Hicks, of Waddy, works at the Common- tary Vickie Yates Brown Glisson; Justice and County Economic Development Council. wealth Council for Developmental Disabilities. Public Safety Cabinet Secretary John Tilley; McGaughey is a sales associate with Keeneland Boggess, of Owensboro, is a retired teacher. The Labor Cabinet Secretary Derrick Ramsey; Association Inc. Kentucky Assistive Technology Service (KATS) Education and Workforce Development Secre- Network Advisory Council helps to implement tary Hal Heiner; Personnel Cabinet Secretary statewide capacity building and advocacy initia- Tom Stephens; Transportation Cabinet Sec- Announcements for the Corporate tives regarding the availability of assistive tech- retary Greg Thomas; Cabinet for Economic Moves and On the Boards sections of nology for individuals with disabilities. Development Executive Officer Vivek Sarin; The Lane Report can be submitted to Division of Income Support Deputy Commis- [email protected]. Due to space KENTUCKY BOARD OF EDUCATION sioner Bryan Hubbard; Department of Work- restrictions, announcements for the ■ Tracey Cusick, Kathy Gornik, Wayne force Investment Commissioner Beth Kuhn; Corporate Moves section are generally Lewis and Joe Papalia have been appointed Department of Education Commissioner Ste- limited to upper management positions. to serve on the Kentucky Board of Education. phen Pruitt; Council on Postsecondary Educa- Photos to accompany announcements tion President Bob King; State Sen. John are welcome. High-resolution images KENTUCKY CHARTER Schickel; State Sen. Robin Webb; State Rep. (minimum 300 dpi) are required in order SCHOOLS ADVISORY COUNCIL Jim DeCesare; State Rep. Arnold Simpson; to reproduce well. ■ The following individuals have been named to Buddy Hoskinson, Department for Aging

THE LANE REPORT • LANEREPORT.COM JULY 2017 17

July Lane 1-20.indd 17 6/30/17 3:22 PM LANE ONE-ON-ONE Kentucky’s leaders express their opinions

especially for millennials. Mobile deposit Luther Deaton is especially interesting due to the conve- Central Bank & Trust Co. Chairman, Pres- nience it provides. We’ve recently devel- ident and CEO Luther Deaton began oped round-the-clock service for credit work at Central Bank in 1978 as a teller and debit cards, because that’s where and that year became vice president of most customers have questions. We would equine lending. He became executive vice never have done that a few years ago. The president of the Commercial & Retail Banking Group in 1991, COO and a fact that our population is so active and so board member in 1994, and in 1996 was connected to their mobile phones makes named president and CEO. He added the customer support a critical service for us. title of chairman in 2002. Deaton is a graduate of Louisiana State University’s MG: The impacts of evolving technology Graduate School of Banking of the South, on banking are diverse. Direct deposit and the National Commercial Lending and online banking have reduced the School at the University of Oklahoma. He has led the Kentucky Chamber of number of face-to-face interactions. Do Commerce board, been chairman of the banks need fewer physical locations? Do Kentucky Bankers Association and served you foresee this changing appreciably in on the American Bankers Association the next five to 10 years? board among many civic and community LD: Most customers still prefer to estab- activities. He is a native of Breathitt lish new relationships in a branch, even County and lives in Lexington. if they use mobile banking for transac- tions. Frankly, a lot depends on whether the customer sees the bank as a place to ‘IT TAKES A DEDICATED SERVICE ATTITUDE do transactions or as a place they go to for advice and assistance with more com- TO MAKE A BANKING RELATIONSHIP WORK’ plex financial questions. Many aspects of Central Bank President/CEO Luther Deaton discusses banking require discussion and advice to ensure the relationship is structured to Kentucky business, tax reform and pension system fixes meet all of the customer’s needs. We’re involved in insurance, investments and BY MARK GREEN wealth management in addition to bank- ing. Most people still prefer to have those types of discussions face-to-face.

Mark Green: What sets the most suc- really good due to the demand for MG: Where do we stand in the business cessful bankers apart from their peers? homes and favorable interest rates. cycle? Still expanding? Stuck in low gear? Skill, hard work (more due diligence), LD: It all depends on where you are. luck, the ability to assess character? MG: Are home buyers having problems Lexington is just emerging from the Luther Deaton: Hard work, integrity qualifying for mortgages? recession, and growth is just beginning and service are the keys I stress to our LD: It’s more a question of how long it to ramp up. We’ve seen much more team of Central Bankers. There is no takes to meet all the requirements to business expansion in our markets in way to short-cut success. It takes time, satisfy the regulators. I think it’s harder Northern Kentucky and Louisville. They dedication, long hours and a service for first-time borrowers because the pro- seem to be ahead of us in that regard. mentality. cess has become so cumbersome and difficult to understand. MG: What are your expectations regard- MG: What’s your best advice to those ing Federal Reserve interest rate policy who manage banks large and small? MG: What is the rate of non-performing this year and next? What will the impact LD: Our greatest asset is our human loans today versus in the past, and are of rising interest rates be for business capital. We can’t accomplish anything there any surprises here? and individuals in the long run? without a great team of smart, dedi- LD: Our non-performing assets have LD: The Fed is concerned about infla- cated, service-oriented people. That’s declined to the lowest point in years, tion and is monitoring rates very closely. where it all starts. just 1.3 percent of assets. This has been They are poised to raise rates if they a steady improvement as the recovery detect any signs the economy is heating MG: What are Kentucky banking’s big- has progressed. We’re finding that more up. I think we need to be really careful gest challenges today? borrowers have regained confidence in with that. Higher rates could really LD: Finding the right people who want the economy and are planning for affect the mortgage industry and expan- to build a banking career. We need tal- growth in the future. sion by small business. ented people and will need even more of them in the years to come. We can MG: We hear sometimes that today’s MG: The appearance seems to be that deal with all the other issues if we have “digital native” young adults have dif- fewer banks are domiciled in Kentucky folks who can develop creative solutions ferent expectations about banking rela- but more banks are competing for busi- to customer needs. tionships versus those of previous ness, especially in the larger markets. Is generations. Do you see that? this, in fact, true? If so, why? MG: What is the most common form of LD: You bet they do. They want service, LD: Banking in our markets is strong. We lending in Kentucky? now! They want it wherever they are, and have 97 bank charters with $37 billion in LD: Commercial lending is our largest they want it round the clock. Mobile deposits in our markets. In Lexington, category. Our mortgage business is banking is our fastest-growing product, we have 38 bank charters and $8 billion

18 JULY 2017 LANEREPORT.COM • THE LANE REPORT

July Lane 1-20.indd 18 6/30/17 5:05 PM in deposits. And we now have 137 bank- takes that. We’ve got six or seven banks to take care of a customer. Before, you ing offices in Fayette County. Other that we work with and we trust each didn’t have to do a lot of those things. banks are opening offices here because other; we do the analysis of the credits, On a mortgage loan, we used to close Lexington is such an attractive market, and we all buy in, and we participate it one in 15-30 days; now it’s 45-60 days. really the most attractive in Kentucky. out to the other banks. So this bank has And it means nothing to the customer, never had a problem handling any type who just wants to know how much is my MG: What are the key issues for busi- of credit. We’ve always been able to payment and what’s my interest rate? nesses looking to establish a good rela- accommodate the customer. That’s what they’re worried about. tionship with a bank? As far as bigger banks go, I guess And we didn’t get into this subprime LD: They want several things. Will this they’re OK. But we’ve just never looked at lending stuff (that caused the 2008 bank be here to serve me when I need it that way. We look at business in terms of financial crisis, prompting Dodd-Frank’s them? Are they large enough to have what can we do with our local banks that’s passage). Banks in Kentucky didn’t get the resources to meet my technology home-grown here in Kentucky. into any of that. Mortgage lending in needs, my borrowing needs and other our small towns, in small community services such as insurance, investments MG: How often are participation lend- banks, that’s our bread and butter. But and wealth management? Do they know ing projects done? Is that common? now they have no comparable sales about my business, and are they willing LD: That happens pretty regularly. And (information to use in qualifying the to learn more? It takes a dedicated ser- the good part about that is that if we loan); people won’t appraise their prop- vice attitude to make a banking relation- participate in some bank, and they are erties, so they have a hard time with this. ship work. Our bank was founded on over their line on one of their credits, It didn’t help the consumer. It’s hurt the that concept and it’s even more true they call us and ask, “Will you partici- consumer. And it didn’t do anything to today, 71 years later. pate in that credit with us?” And we par- fix Wall Street, either. ticipate in that. So we go back and forth MG: What are today’s top community on different credits and different banks, MG: Should the more-difficult mort- banking lines of business? Which are and we reciprocate to them, they do for gage qualification regulations be rolled generating the most business and reve- us as well. back? nue for banks today? LD: Yes; they have to do that. I don’t LD: Obviously, commercial lending and MG: Does it make it more complicated blame the regulators. I blame Congress. commercial real estate lending are very to finance a project if you’re doing par- Congress passed the law, and the regula- important, because those relationships ticipation financing? tors have to do the regulation within the can uncover other needs such as cash LD: No. law. They can’t change what Congress management, insurance, retirement said, so the regulations that are inter- plans, investments, etc. Mortgage is a MG: Does a lead bank handle all of the preted and put into effect have to match good area for us, and we stress it in all qualification? up with what Congress says you have to our markets. Insurance is one of our LD: We lead it. But the other banks have do. I don’t blame the regulators at all. A fastest growing areas that fits our high- to do their own enquiries. They have to lot of banks blame them. I do not. service business model. do their own credit analysis and all that, They’re doing their jobs. too. Because the regulators, when they MG: How big today, to both banks come in, ask, “Did you take theirs, or MG: Has Dodd-Frank produced any and bank customers, is the threat of did you do yours?” And so they have to benefits to the industry? cyberattack? do theirs, too. LD: None. LD: The risk is there because customers want convenience and ease of use with- MG: So you are actually backing MG: You are on the state’s pension sys- out it being slowed by safeguards. We each other up with double, triple due tem review and advisory board. Any are continuously adding more systems diligence? repair or fix for Kentucky’s now worst- to protect the bank and our customers. LD: Right. in-the-nation unfunded pension liability We are constantly risk assessing our sys- is going to be costly and painful. Is there tems and our customers’ use of them. MG: The banking community has been any least worst way to begin to take on We monitor our website constantly for asking for repeal or revision of the 2010 this problem? any hint of a cyberattack. We are using Dodd-Frank Wall Street Reform and LD: The first thing they need to do is tax social media to help educate our cus- Consumer Protection Act since 2011. reform: How much money can we come tomers on what they can do to protect Do you support repeal or reform of up with that can go toward the pension themselves and their money. Still, it’s Dodd-Frank, or specific parts of it? obligations, if any? It’s going to be a hard always a worry. LD: I don’t think they should repeal it. I fix. Everybody says that has to be paid for think they should fix it. It’s far too com- before anybody else can be paid a pen- MG: Does Kentucky business have plicated and has provided very little sion, which I guess it’s true. Who’s going enough access to capital, or might the benefit for consumers. Congress has to be able to write the checks if they don’t state need bigger banks to finance proj- attempted to control the large banks have the money? The state employees’ ects? Is syndicated financing adequate? while restricting how community banks pension fund is spending more money LD: We’ve got some syndication, what serve the needs of their customers. than they’re taking in. we call participation loans. We put the There is no question it has become So No. 1, they’ve got to find out how loans together, just in Kentucky, to give more challenging for community banks much money they need to fix this pen- you an example, of $75 million to $100 to operate and to meet the needs of sion. I think what they have to do is they million. Our lending limit is almost $40 their markets. They have made it so dif- need to freeze it. I think they’ve got to million; then we get banks out there ficult on the consumer. do it like a 401k, and then they’ve got to that have a pretty good-sized lending Is credit hard to get? Yes, because fund it. I’m not putting the blame on limit and bring them into the credit, if it you have to do so many things in order anybody. Gov. Matt Bevin has a tough

THE LANE REPORT • LANEREPORT.COM JULY 2017 19

July Lane 1-20.indd 19 6/30/17 5:06 PM LANE ONE-ON-ONE

road ahead of him. He didn’t create LD: Our income tax is a big portion of somewhere down the line, it’s going to this, but he owns it. He’s governor, and our budget. I don’t have the numbers, but come down to the people to pay for this he’s going to have to take a stand to fix if they try to eliminate income taxes to do pension. It’s gonna happen; I don’t care it. If I were him, I would do tax reform that right now the sales tax would go out what they say, how they slice the cake. first, see how much money I could come the roof. I think it’s almost impossible. But how do we do it so that it’s fair, and up with, and then I would say, OK legis- how do we do it to make sure it’s a win- lature, we don’t have enough money so MG: The phrase “business-friendly tax win for everybody? here’s my proposal to fix the pension. code” has been used for years to describe That’s why I do it. Very few nights do I will tell you I think there has to be a the most desirable outcome. What is the I get home early, but I love what I do. I tax increase. There’s gotta be. You’ve business community’s preference for a love taking a person who’s got a dream, got the Medicaid expansion healthcare tax base structure that best supports eco- who’s got a great plan, and helping thing they say is going to take $500 mil- nomic growth, job growth and personal fund that person and watching that lion in the next year or so to fund. income growth in Kentucky? person grow. We’ve done so many of You’ve got this pension thing that LD: I think any good, well-run business those. I could tell you story after story. they’ve already put a billion-some dol- would be willing to accept a tax increase And that’s where I get my satisfaction. lars toward, plus they’re putting more if it would fund the right things: educa- in. And it’s not helping; they don’t have tion, number one. The business com- MG: Do you do any mentoring? What enough money. So they’ve got to come munity has proven that it wants to fund best practices you can share? up with more revenue. education. And education has been LD: Well, it starts with – and I tell every- Now, can we grow jobs fast enough to neglected. There are some kids right body I try to mentor, whether it’s inter- increase existing tax revenue? No, I now who cannot go to school because of nal or external – I say, honesty and don’t think we can. What they need to the tuition. The state has to come up integrity means everything. We’re not look at, once they do the tax reform – with something to fund education; it all perfect. We all make mistakes. Admit and they need more revenue – I think has to happen. If that means a tax your mistakes. If you’ve got those two they’ve got to look at an increase in increase, it means a tax increase. qualities, which creates character, just sales tax of 1 or 2 percent and say this is But the problem we have in this state stay focused. When you think you’re going toward the pensions. Once we get and in this country is you’ve got the Tea right, take a stand. But if somebody says, them stabilized where they’re supposed Party and you’ve got the liberal Demo- hey, let’s talk about this, I think you’re to be, then that sunsets and that tax crats, and they’re so far apart. They’re wrong, be able to admit that you’re comes off. I don’t believe anybody who so far apart that they can’t come in the wrong on an issue and say, I’m wrong, says they can fix this pension without middle and sit at the table and say, look, and I agree with you. I’ve seen so many tax reform and without a tax increase. I let’s do what’s best for our state, for our people, during the time I’ve been in think it has to happen. kids, our industry, and see what we can this business – not in banking, in every do that’s both fair, whether it’s raising business – who think they can do no MG: The governor is aiming to reform taxes or lowering taxes or whatever it wrong; and they think it’s my way or the the state tax system and fund the pen- might be. But make the right decision highway. You can’t have that attitude. sion shortfall later this year. Is there any for the people of the commonwealth. I In this recession that we just went kind of low-hanging fruit to go after? don’t see that happening. through, one worst word says it all: It LD: Gov. Brereton Jones had a tax Last year they elected twenty-some was greed. Greed put us where we’re at. reform commission, and Gov. Steve Bes- new Republicans to the state House of They forgot what makes this country hear did as well. And I sat on the one Representatives, and they now control and this state better, which is small busi- for Gov. Beshear, and I went to all the the House. I would hope the people nesspersons helping their businesses, meetings. There is some low-hanging who came in there say, I’m willing to creating jobs and educating our kids. fruit. A cigarette tax; they could do that. look at what’s best for this state and not They could put a tax on dry cleaners or what’s best for me as a Republican or MG: Do you have a closing comment? whatever – not food or drugs, but other Democrat or Independent. I want to do LD: I’d like to say something more things – and see how much they could what’s right for the state; I want to do about education. Last week we learned come up with. What they need to do is what’s right for our people. I want to that UK only receives about 15 percent take those two tax reform commissions’ educate our kids, create jobs for our of its budget in state funding while recommendations and look at them. kids, so they don’t have to leave home. other comparable universities in more Take the good and leave out the bad. But I don’t think that’s possible. I prosperous states get 40 percent of That’s one place where they could start. hope I’m wrong. their funding that way. We can’t hope But (state Budget Director) John to grow our economy and our state if Chilton is a pretty smart guy. I think he’s MG: How do you make time and what we can’t afford to educate our youth got the right guy doing the budget, and methods do you use to stay informed and create jobs that will offer a success- the right guy looking at tax reform, and about what’s happening in the fields ful future. That’s a benefit of tax the right guy looking at pension reform. that you have to keep up with? reform that should be placed near the I think he’s a guy who understands the LD: Well, it’s a passion I have. This bank top of the list. We’re talking about a numbers, and I think they’ve got to lis- has grown with small businesses; we’ve better future for our children and ten to him. provided the capital for them to grow, grandchildren to enjoy this wonderful and we’ve grown. That’s where I get sat- place we call Kentucky. ■ MG: What will be the obstacles to over- isfaction. I’m very involved with the come if Kentucky attempts to shift from Kentucky Bankers Association. I’m on an income-based tax revenue to con- the board of the American Bankers Mark Green is executive editor sumption-based revenue, such as Ten- Association. I go to all the conventions, of The Lane Report. He can be nessee’s, which is sometimes cited as a all the seminars. I get involved in the reached at [email protected]. successful model? state, like the pension shortfall issue –

20 JULY 2017 LANEREPORT.COM • THE LANE REPORT

July Lane 1-20.indd 20 6/30/17 5:46 PM Powering Kentucky

Putting Kentucky to Work

6,000 jobs. Nearly $2 billion in investment.

Since 2015, our co-ops have been hard at work putting Kentucky to work. And we’re getting results.

We promote economic development because it improves the quality of life in the communities we serve.

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July Lane 21-44.indd 21 6/30/17 3:39 PM WORKFORCE DEVELOPMENT

After preparing in their classrooms for a day in the simulated town, Biz Town students get to work soon after arriving at Junior Achievement of the Bluegrass. The fifth-graders launch businesses, discuss loans and banking, deposit checks, and work at their assigned jobs. At left, these students are “employees” for the day of Forcht Bank, one of 14 companies that sponsor storefronts in JA’s simulated town.

“The lessons center around financial literacy, how a community economy works, workforce habits and being a team member, how you run a business, entrepreneurship,” Wigglesworth said. The curriculum correlates with Ken-

Bill Strauss Photography photos tucky’s Core Content for Asssessment in math, social studies, and practical living while focusing on 21st-century job skills, including soft skills such as being a team player, communicating with others, problem solving, and thinking critically. “Unfortunately, we hear time and again that many students are lacking the basic skills to successfully engage in the workforce and economic community,” said Lynn Hudgins, president of JA of the Bluegrass. One of the biggest challenges Ken- tucky employers face is finding qualified A Living Lesson workers with the right skills for the jobs they have available. Less than 10 per- cent of Kentucky employers believe the overall workforce has good skills, according to a 2015 survey by the Ken- in Economics tucky Chamber of Commerce. More than a quarter of those employers said Biz Town bridges the gap between they have trouble finding jobseekers with good soft skills. classroom learning and the real world “This is both a crisis and an opportu- nity for Central Kentucky,” said David Royse, chairman of the JA of the Blue- BY LORIE HAILEY grass board of directors. Junior Achievement, founded in 1919, is the world’s largest organization T first glance, it looks like manager at JA of the Bluegrass. “This is dedicated to educating students about elementary students hav- a culminating event. This is where the work readiness, entrepreneurship and ing fun on a field trip with kids actually get to put into practice financial literacy through experiential, their classmates. But a trip what they have been learning.” hands-on programs. The Bluegrass to Biz Town at Junior The simulated town, which resem- chapter, founded in 1963, reaches more AchievementA of the Bluegrass is so bles a small shopping mall, opened its than 20,000 students per year with its much more than that. doors in January, and has already served classroom curriculum and volunteer JA Biz Town serves fifth-grade class- more than 2,500 students. It is located programs, which show them “how to rooms with a series of in-class lessons on inside the old Linlee Elementary School generate wealth and effectively manage entrepreneurial and personal finance building on Spurr Road in Lexington, it, how to create jobs which make their skills that culminate in a day-long visit to where JA of the Bluegrass is leasing communities more robust, and how to a fully interactive, simulated town. nearly 13,000 s.f. from Fayette County apply entrepreneurial thinking to the There, they put their new business Schools to operate their programs. workplace,” according to the JA website. knowledge to the test, launching and Biz Town is designed for fifth-grade The addition of Biz Town to the working in businesses, opening bank students, but the program also can be uti- Bluegrass chapter’s lineup has created a accounts, paying their employees, vot- lized by fourth- and sixth-grade classes. unique opportunity to introduce key ing in an election, and learning about Participating classrooms are provided life skills to young students. the importance of philanthropy. with curriculum and supplemental mate- “Young people who have been “If they call it a field trip, I am usu- rials, including a 250-page teacher guide- exposed to the various Junior Achieve- ally pretty quick to point out to them book, a classroom kit with games and ment classroom programs and the ‘real- that Biz Town is not a field trip,” said posters, and student workbooks. Each stu- life’ experiential learning experience at Ron Wigglesworth, a former high school dent also receives a checkbook, debit card JA Biz Town gain an early understand- principal who serves as senior education and health card, Wigglesworth said. ing of the concepts and values that are

22 JULY 2017 LANEREPORT.COM • THE LANE REPORT

July Lane 21-44.indd 22 6/30/17 5:08 PM Fifth-grade students participate in a town meeting at the beginning of their day in Biz Town, where they learn the rules and elect a mayor.

crucial to attaining career success and fulfillment in a rapidly changing world,” Royse said.

A day at Biz Town Biz Town is intricately designed to teach students about what it means to own and operate a business on a day-to-day basis. Local companies – including Chick-fil-A, Forcht Bank, Kentucky Utilities, UPS, iHeart Media, Keeneland, Scanlon Family Philanthropy Center, Toyota, UK Health- care, Kentucky Society of Certified Public Accountants, the University of Kentucky, LEX 18, and Lexington Herald-Leader – sponsored and decorated storefronts in other activities. It is a full day of lifetime in which they can truly make where the students “work.” There is also learning and fun, but is also a lot of adult decisions and actually learn first- Biz Town City Hall and one open store- work, Wigglesworth said. hand how an economy works.” front, for which JA is still seeking a com- At the end of the day, when asked munity partner/donor. how they feel, students often say they Five years in the making “Our storefront partners have made a are tired, he said. “We say that’s how Biz Town opened Jan. 10 after a five- significant investment in our young peo- your parents feel, too, at the end of a year fundraising and planning cam- ple because they recognize the impor- long day,” Wigglesworth said. paign. Many businesses got on board tance of introducing students to the ‘real Experiencing Biz Town often opens right away, Hudgins said, and others world’ of work, business and personal doors for students and helps them real- needed to see the JA of Kentuckiana’s finance, early and often,” Royse ize their potential, Hudgins said. The Biz Town in Louisville before making a said. “Additionally, we are hopeful that program helps students connect the commitment. The Lexington Biz Town those organizations will benefit from their dots between what they learn in school is modeled after Sam Swope Biz Town, exposure to the students, parents, teach- and the real world, and sometimes it as the Louisville program is officially ers and volunteers who come to ‘live and opens up career options they had never named. It opened in 2004. work’ in Biz Town for a day.” before considered. JA of Kentuckiana, founded in 1949, After attending orientation, students “JA Biz Town/JA Finance Park is a also operates a JA Finance Park program, elect a mayor, launch their businesses, very focused experience that we believe where middle school students are discuss business loans and banking, par- will be a ‘game changer’ for our stu- immersed in a reality-based, decision-mak- ticipate in job training, conduct staff dents and the entire Central Kentucky ing process that addresses individual and meetings and make marketing plans, community,” said Melissa Bacon, board family budget considerations such as hous- deposit their paychecks, go to lunch, chair for Fayette County Public Schools. ing, transportation, food, utilities, health shop at the businesses, and participate “Our kids will enjoy an opportunity of care, investments, philanthropy and bank- ing, according to JA. They learn about the implications of financial decisions, con- sider the options available, and construct and live within a budget. Since the two programs began, more than 250,000 students have participated in JA of Kentuckiana’s Biz Town and Finance Park programs. JA of the Bluegrass is currently plan- ning its own Finance Park program. It will be housed in the same structure as Biz Town, but the curriculum will change to accommodate middle school students during certain weeks of the year. Finance Park will open to students in December of 2017, Hudgins said. Junior Achievement has a host of other programs designed to prepare young peo- ple to succeed in the global economy. To learn more about how your business can donate to or volunteer, visit juniorachieve- ment.org/web/ja-bluegrass or junior- achievement.org/web/ja-kentuckiana. ■

Soon after learning their job assignments, these Kentucky Utilities “employees” receive on-the-job training and prefer for their workday. Lorie Hailey is a correspondent for The Lane Report. She can be reached at [email protected].

THE LANE REPORT • LANEREPORT.COM JULY 2017 23

July Lane 21-44.indd 23 6/30/17 3:39 PM ENERGY & ENTREPRENEURSHIP

Genscape provides highly accurate storage level measurements using aerial photography. Genscape’s ARA Refined Product and Crude Storage Reports use data from highly calibrated infrared cameras, aerial diagnostics, and other proprietary technologies to measure gasoline, gasoline components, naphtha, jet fuel, gasoil, and crude oil storage levels tank-by-tank in the Amsterdam-Rotterdam-Antwerp region, the most critical component of the European oil supply chain.

Co-founders Sean O’Leary and Ster- ling Lapinski received an Ernst & Young Entrepreneur of the Year award in 2003 for their early success, even before Gen- scape’s expansion into other countries and other energy markets. O’Leary has a Univer- sity of Michigan bache- lor’s in finance and economics and a Univer- sity of Louisville MBA in entrepreneurship. Lapin- Genscape Created ski has a bachelor’s in finance from the Whar- Sean O’Leary, ton School of Business at Co-founder, Genscape the University of Pennsyl- vania, and has extensive Global Energy experience in energy trading. As Genscape’s chief development offi- cer, Sterling created and managed the technology Market Analytics and intellectual property Sterling core of the business. Lapinski, Louisville entrepreneurs created tools to monitor production “There are three Co-founder, things that dictate price Genscape and flow of electric power, then oil, NGL, solar and more in the energy markets: supply, basically how much you have; demand, or now much is needed; and BY SUSAN GOSSELIN transport, which is how it’s delivered,” said Dierdre Alphenaar, chief research and development officer at Genscape headquarters in Louisville. “Our found- HERE do traders in the When Genscape puts together the ers back in 1999 were in the business of energy industry go to results of all that monitoring, it can pro- trading electric power. And as volatile as find global power mar- vide thousands of subscribers high-qual- that market was, they realized that they ket forecasts for electri- ity, real-time access to that data. That were basically making educated guesses cal, wind and solar? means traders can make better trades, and operating in the blind. WKentucky. the markets can set better pricing for “Prices moved up and down, and Where do shipping magnates go to commodities based on real-time data, they had no visibility as to why. They find real-time maps, showing how many and utility companies can make per- supertankers are currently carrying fectly pitched investments in their busi- crude oil on the world’s oceans? nesses based on real-world business Kentucky. models. Genscape brings a transparency Where do bidders for crude go to to the global energy market where none find out background on the oil supply existed before. chain, like transportation delays, refin- Company founders created a busi- ery outages and oversupply? ness and a demand for this data, essen- Kentucky, again. tially building their own market. And Why? Because Kentucky is the home they did it all here, with their headquar- of Genscape, a nimble and innovative ters in the Old Louisville section of Lou- company that boasts the world’s largest isville, Ky., employing around 100, with monitoring network for the entire an additional 350 employees in offices energy spectrum, from electrical power across the globe, including Boston, SAC Design worked with Genscape to create a to oil, natural gas, petrochemicals and Houston, Amsterdam, San Francisco, client-facing app to host reports, alerts and news NGL, agriculture, biofuels and mari- New Jersey, Hamburg, Calgary, London, and present information in a clean, edgy, easy-to- time crude freighters. Singapore and many others. digest way.

24 JULY 2017 LANEREPORT.COM • THE LANE REPORT

July Lane 21-44.indd 24 6/30/17 3:39 PM Genscape cultivates a culture of entrepreneurship among its employees, many of whom hold advanced degrees.

asked themselves, what would it take to get the hard information we needed to buy and sell?” Alphenaar said. “They realized they had to have visibility across all supply, demand and transport for that to happen. And Genscape was born out of that.”

Creating better power industry data Genscape started by devel- oping the tech to monitor the flow of electricity throughout the grid, according to Alphenaar. This presented certain problems, as it would be difficult to get permissions Dierdre Over the years, Genscape has track not just the refineries themselves from every power plant to Alphenaar, deployed this technology to monitor but the pipelines that carry the product. Chief Research 1,000 power plants across the globe. Its install monitoring devices. And But in this case, Alphenaar said, the Instead, the team patented Development clients pay for that information as part original proprietary tech helps because a remote monitoring Officer, of a subscription service. The present the remote power-flow-sensing monitors device that could be set Genscape client base includes the majority of the track energy current to the motors that outside the plants, nearby top global commodity and energy trad- pump gas through pipelines. to the central power lines that exited ing hedge funds, banks, producers and “We can take that data and extrapo- the plants. These small, inexpensive marketers, as well as numerous govern- late it, so we can calculate how fast devices served as remote sensing meters, ment entities, including the U.S. crude is being pumped through the measuring the magnetic field coming off Department of Energy and the Federal pipelines,” she said. those lines. Energy Regulatory Commission. Genscape monitors more than 130 “Those sensors beam back informa- And it’s not just the big players who key U.S. and European oil refining and tion every five minutes,” she said, “and we are signing on. The company says it has processing facilities. Its subscribers can can apply math to take the magnetic field picked up numerous small and get reports on the status of the ethanol value and translate that to the megawatt medium-sized clients that find having supply chain and global biodiesel power flow. We combine that with our the right information pays them divi- imports as well. satellites, which allow us to read thermal dends that justify their investment. But it doesn’t stop there. After all, imagery on the power plants, showing us they may be able to tell how much crude if they are running, or closed, or broken Tracking oil, gas and shipping is being produced, but that information down. Put that all together, and we have a Genscape’s market intelligence began means little if the crude doesn’t get to true visibility to the market. If the market but doesn’t end with the monitoring of its destination. To address that question, needs to make pricing decisions based on electricity. It’s applied much of its Genscape also tracks the movement of the supply of power, they have all the expertise to tracking the oil and gas crude oil over the open seas. information they need to make those industry as well. In many respects it’s a All ships above a certain size calls, in real time.” much harder job, as the company has to engaged in sea transport are required to have a collision control beacon that transmits information such as the ship’s manifest data, the country where it is chartered, its destination and the like, Alphenaar said. Genscape’s technology follows roughly 144,000 commercial ships daily, aggregating the beacon data all ships use. Additionally, Genscape’s Vesseltracker technology monitors activity in ports. “Who’s coming in? Who’s waiting to offload? Where have there been ship-

In May 2016, Genscape’s CAISO analysts presented their expectations for the energy demand market for the coming summer for renewable power generation versus thermal.

THE LANE REPORT • LANEREPORT.COM JULY 2017 25

July Lane 21-44.indd 25 6/30/17 5:09 PM ENERGY & ENTREPRENEURSHIP

Mark Deverill and Amanda Lake, GENSCAPE - Vessel Tracker, discuss their product, which monitors commercial shipping by aggregating the collision avoidance system beacon data every ship produces, at the SHIPPINGInsight 2015 conference in Stamford, Conn.

ping accidents? Whose shipments are delayed due to weather? All these things are very, very important to know, not just to oil and gas, but to traders, ship- ping companies, insurers and a broad spectrum of industries,” Alphenaar said. Clients using the system are able to access an interactive global map that shows the exact location of all the ships on the seas, and allows them to run reports based on type of cargo, point of origin, destination and more. Genscape has continued to keep cli- ents coming back by continuing to dive deeper into all the data and all the factors surrounding an industry. For instance, the company recently developed a product has found a way to monitor this new after Garvin Place Properties LLC they call Digital H2O, which collects data flow of energy, too. In fact, by its esti- invested $3 million in renovating the regarding the use and flow of wastewater mates, the global production of solar property. The location is large enough in the oil and gas industry. grew by 53 percent in 2016 alone. to allow the company to increase its “That may seem like a small detail, Genscape acquired Locus Energy, a workforce significantly. when you first look at it,” Alphenaar solar monitoring company, to help it “Genscape has made a said, “but you have to have water if you quickly get its arms around the global commitment to preserving want to drill a well for oil or gas. And trade in solar power. Using remote sens- Louisville’s infrastructure you have to have a way to dispose of that ing technology similar to that for tradi- by moving into Old Louis- water after it has played its part in the tional power plants, Locus has deployed ville. They have truly made drilling process. If you’re going to run a more than 150,000 sensors worldwide, it a modern-day office envi- drilling project, you have to answer the resulting in more than 80 billion data ronment,” said Deana question: What is the load on the local points collected, with most of that com- Epperly-Karem, vice presi- Deana Epperly- wastewater disposal wells? Can I open a ing from the U.S. dent of economic develop- Karem, Vice well in another county and have access The information can come from sen- ment at Greater Louisville President of to the water I need? Who else is using sors embedded in the panels them- Inc. “Their leadership Economic the wastewater system in this area? If I selves, or through sensors monitoring knows how to engage Development, Greater use water, where will I have to dispose of the output on the lines. Even with but employees, and their office Louisville Inc. my wastewater?” 13.5 percent of U.S. solar capacity cov- space reflects that, with a ered through Locus, the information creative modern space offering employees generated is invaluable to larger utili- opportunities to work together, relax, play ties, capital providers, equipment manu- and be their most productive. They are a Genscape started by developing facturers and asset managers. leader in recruiting the best and the brightest to our region. We’re proud to the tech to monitor the flow of Born in Louisville, staying in Louisville have them here,” she said. electricity throughout the grid. Though Genscape’s business is focused As a native of Ireland and Cam- on tracking the energy industry, it theo- bridge, England, Alphenaar can person- retically can follow any supply chain for ally attest to the city’s ability to attract any industry. The company has already the right candidates. Through Genscape’s system, clients branched into following soybean pro- “So many of the people we employ are able to aggregate the public domain cessing, and U.S. fertilizer production are Ph.Ds, and highly educated people. water management documents to get a and transportation. We hold open houses here for business total picture of what everyone around And in the future? Expect to see owners who are considering a move to them is doing with their water – how it’s Genscape offer tracking on supplies of Kentucky pretty often. And they always sourced, where it’s disposed, and how lithium ion or any other feed stock ask us, do you have the talent pool you much is being used. They add in big data going into the supply of batteries and need here? And we say ‘yes’ every time, to aggregate the information, slice it into solar panels. because we got our start here, and we’ve manageable reports, and add in analytics. Whatever the company does, it can grown here,” she said. “The people be counted on to keep its commitment we’ve attracted here are happy, and like Tracking the growing solar industry to staying headquartered in Louisville. to stay. We’re looking forward to what Think it’s impossible to monitor the In fact, the company recently relocated the future will hold for us here.” ■ flow of electricity being generated by all to 1140 Garvin Place, the former site of the solar panels in solar farms and on a dairy operation in Old Louisville. Susan Gosselin is a correspondent for The Lane rooftops? Not surprisingly, Genscape The company signed a 10-year lease Report. She can be reached at [email protected].

26 JULY 2017 LANEREPORT.COM • THE LANE REPORT

July Lane 21-44.indd 26 6/30/17 3:39 PM ECONOMIC DEVELOPMENT

Employees of companies that have unions are no longer required to join the union and pay dues since the Kentucky General Assembly passed and Gov. Matt Bevin signed right-to-work legislation in January 2017.

Commonwealth of Kentucky until the law was enacted. As a point of fact, we would not have chosen any site in Ken- tucky without its passage.” That mirrors what he said in late April when the project was announced and sup- ports comments by Gov. Matt Bevin, who had made right-to-work legislation a top legislative priority once his Republican Party controlled the governor’s mansion, the House and the Senate. Last Novem- ber’s elections delivered the House to the GOP for the first time since 1921. While some pieces of legislation get shuffled around longer than a bus ride from Paducah to Pikeville, House Bill 1 rock- eted through both cham- bers of the legislature and Bevin signed it on a Satur- Matt Bevin, Governor, day, Jan. 7, with its effective Commonwealth date only two days later. of Kentucky Kentucky became the 27th state to pass right-to-work legisla- tion, which allows employees to work in a union shop without becoming a union member or paying union dues. Previ- Right-To-Work ously, employers with union shops were required to make employees join the union and pay its dues to get and retain a job. Throughout the country, the legisla- tion has been considered anti-union and Might Be Working part of a strategy to diminish their power by shrinking their bank accounts. In late May, Louisville-based Team- sters Local 89 and the Kentucky AFL- It’s definitely cited for bringing a $1.3 billion CIO sued the state, the governor and aluminum mill to Eastern Kentucky the Labor Cabinet in Franklin Circuit Court in an effort to overturn the right- to-work legislation, claiming the new BY GREG PAETH law was an “arbitrary exercise of power” that is “a pretext for anti-union discrimi- nation and political gains.” The suit contends the HERE’S debate about how site for the project unless the state had law violates the state con- critical “right-to-work” status adopted right-to-work legislation. stitution by taking the is when a state tries to con- “Braidy Industries sup- union’s right to represent vince a company – especially ports right-to-work,” CEO workers and collect dues a major employer – to build Craig Bouchard said in – union property, it argues Ta plant inside its borders. an email from Europe, – without providing any There was nothing ambiguous, how- where he was meeting compensation for that Irwin H. ever, in one recent case near Ashland in with prospective custom- property. Dues-paying Cutler Jr., Greenup County when Braidy Industries ers of the mill, which will members are subsidizing Attorney, decided to invest $1.3 billion in an alumi- supply auto body sheet Craig “free riders” who don’t Representing AFL-CIO num rolling mill in South Shore, where aluminum, plate and Bouchard, pay because the union is CEO, Braidy the population was -- at last count -- 1,122. ultra-high-strength alloys Aluminum required by federal law to represent all of Braidy Industries said at the time of for the aerospace indus- the employees who do similar work even the April 26 announcement and contin- try. “Our board of directors consid- if they don’t pay dues, said Louisville ues to say today that it would not have ered 24 towns and municipalities. attorney Irwin H. Cutler Jr., who repre- given Kentucky any consideration as a We did not begin a dialogue with the sents the AFL-CIO in the lawsuit.

THE LANE REPORT • LANEREPORT.COM JULY 2017 27

July Lane 21-44.indd 27 6/30/17 3:39 PM ECONOMIC DEVELOPMENT

Gov. Matt Bevin, left, and Braidy Industries Chairman Craig Bouchard talk with reporters April 26 in Greenup County about a proposed $1.3 billion aluminum mill in northeastern Kentucky. Bevin and Bouchard said Kentucky would not have gotten the project without having passed right-to-work legislation in January.

“However, Gov. Bevin, our cabinet’s leadership and other state officials knew (from site-selection consultants, who work on behalf of companies looking to expand) that Kentucky had previously been eliminated from consideration for other, unrelated economic development projects due to not being right-to-work. It’s

Kentucky Today/Tammie Brown photo likely there have been many other projects from which we were initially eliminated but, in that regard, we don’t know what we don’t know. Now we have a seat at the table. We’re in the ballgame and on the field, so to speak,” Mazurak said.

Leveling the project playing field There is no simple formula that deter- mines what factors are most important to a company searching for a plant site, according to Mazurak and others famil- “Right-to-work is way down on the list nomic development to Eastern Kentucky” iar with the process. And right-to-work (of factors that influence site selec- a little more than 53 years after President isn’t always a key factor in a corporate tion),” said Cutler, who doubts that the Lyndon B. Johnson declared the country’s decision. “…Each project is different legislation was, in fact, pivotal to War on Poverty in Appalachia. and each company’s lineup of factors is Braidy’s decision. The opening page of the Economic different,” Mazurak said. In his email from Europe, Bouchard Development Cabinet’s website shows a Hal B. Goode, presi- – the Braidy Industries CEO – made it photo of Bevin signing the right-to-work dent and CEO of the clear that he disagrees strongly about legislation next to a headline that says “KY Kentucky Association for mandatory union dues. IS NOW RIGHT TO WORK.” Three high- Economic Development “Regarding right-to-work, there is lighted project announcements beneath a for the last five years and much confusion on this topic and many photo of the governor focus on the alumi- a 28-year veteran of the people miss the key point. Any individ- num mill, the $1.5 billion Amazon.com economic development ual has the right to choose how to spend shipping hub at the Cincinnati-Northern profession, said his orga- Hal B. Goode, nization has pushed President/CEO, his or her income. No one is empow- Kentucky International Airport, and Toyo- Kentucky ered to take away this right,” he wrote. ta’s decision to invest another $1.3 billion right-to-work legislation Association for Bevin and his Cabinet for Economic in its sprawling plant in Georgetown. for many years. Economic Development have trumpeted the long- “Kentucky’s right-to-work status mat- “We want to make sure Development term impact of the aluminum mill, the ters tremendously in getting us that ini- that everything is on a first greenfield U.S. aluminum mill in tial seat at the table. The volume of level playing field when companies 30-plus years, which is expected to cre- inquiries and leads we’ve been getting come in,” Goode said. “They’re coming ate 1,000 construction jobs and 550 since January certainly supports this,” advanced manufacturing jobs once the according to an email from Jack project is completed in 2020. Mazurak, a spokesman for the cabinet. When the project was announced, By late May, Mazurak pointed out, Bevin said it had “…the potential to be the state had already “shattered the as significant as any economic deal ever state’s all-time, full-year (business) made in the history of Kentucky. … This investment record,” which provides $1.3 billion investment will create enor- “more supporting evidence of the mous opportunity for people in the importance of right-to-work.” region, and would not have been possi- Braidy Industries played no role in ble without our recently passed right-to- pushing right-to-work legislation work legislation. ... The ripple effect of through the House and the Senate, this investment will be significant and Mazurak said. will produce positive change in the “Chronologically, it was not an if- region for generations to come.” then situation. The General Assembly passed right-to-work legislation in early Kentucky’s repeal of “prevailing wage” rules in Record year for projects … by June January. Mr. Bouchard was first con- January means contracts using state and local The state’s news release said the Braidy nected with our cabinet and the Gover- government funding no longer must pay contractor deal, which will break ground next spring, nor’s Office in early February,” workers at least as much as the local union wage is “marks a turning point in bringing eco- according to Mazurak. for their job title.

28 JULY 2017 LANEREPORT.COM • THE LANE REPORT

July Lane 21-44.indd 28 6/30/17 3:39 PM Teamsters Local 89 and the Kentucky AFL-CIO sued in May to overturn the state’s right-to-work law on the grounds that it constitutes a taking of union property – dues – without compensation.

in looking for reasons to eliminate you, and that (an absence of right-to-work legislation) was one of the things that would come up to eliminate Kentucky.” During meetings of Kentucky United, right-to-work legislation rou- tinely emerged as being vitally impor- tant to making Kentucky more competitive, Goode said. His association and Kentucky United, a public-private economic development organization, sometimes work together. The Kentucky Chamber pushed passage of right-to-work legislation for decades, said President and CEO Dave Adkisson and Ashli Watts, vice president of public affairs for the publicly could not pay construction work- Fort Mitchell in Northern organization. ers less than average union wages in the Kentucky, the right-to- “The Kentucky Chamber, represent- area where work was to be done. work legislation and a ing thousands of businesses across the Just six months after companion bill that state, has advocated right-to-work legis- the legislation was signed, repealed the state’s pre- lation for at least 30 years,” Adkisson prevailing wage repeal vailing wage law have said when the legislation was approved. has had no obvious found a fan in Jude Jude Hehman, “The Kentucky General Assembly made impact on highway con- Hehman, mayor of the Mayor, a bold and historic decision to pass a struction in the state, said upscale suburb in Kenton Fort Mitchell right-to-work law, to guarantee workers Chad LaRue, executive County. a choice about joining a union and to director of the Kentucky Chad LaRue, City administrator Sharmili Reddy tell the world that Kentucky is open for Association of Highway Executive confirmed that the city received bids to Director, repair three streets last December and business. We congratulate the General Contractors, which is Kentucky Assembly and Gov. Bevin for having the based in Frankfort. Association that Fort Mitchell was prepared to courage to pass this legislation and to However, he said the of Highway spend about $897,000 for the work. make Kentucky an even better place to overwhelming majority of Contractors After prevailing wage repeal legisla- do business. We are confident this will the more than $700 mil- tion passed in early January, the city lead to more jobs and more opportuni- lion in highway work done recently by the decided to seek bids again and one con- ties for Kentuckians.” Kentucky Department of Transportation tractor said his company would do the Studies show that private-sector includes federal funds, which require that work for $823,000. employment grew by more than 17 per- contractors pay “prevailing wages.” “This legislation not only saved us cent in right-to-work states in recent “Our industry is supportive of paying a $75,000 on a road project which we years, the chamber said. That was just living wage and regardless of the changes have invested back in our infrastructure, over double the growth rate for states in the law, we have not seen the wages but will also save taxpayer dollars for that had not passed similar legislation. dip,” said LaRue, whose membership is future public projects by putting them overwhelmingly non-union. KAHC did on a level playing field with private proj- Barbecue, Bourbon ■ Prevailing wage law repealed as well not take a stance on the issue. ects,” Hehman said. Accompanying right-to-work was repeal of While it’s far from the driving force Kentucky’s “prevailing wage” requirement, behind a billion-dollar project and it Greg Paeth is a correspondent for The Lane Report. Bluegrass which mandated that projects funded won’t create a single job for the City of He can be reached at [email protected]. Fun. Free. Friends.

FridayAfter5.comTHE LANE REPORT • LANEREPORT.COM Owensboro,JULY 2017 29 Ky.

July Lane 21-44.indd 29 6/30/17 3:39 PM COVER STORY

Well operators position pump trucks around the well bore prior to “fracking” the BlackRidge 3Ds #1-HOR well in Lawrence County. The red storage tanks hold the water used in hydraulic fracturing process.

Quick facts • There are 11 natural gas pipelines that cross through Kentucky. They flow in one direction, so gas extracted in Ken- tucky is piped to the northeastern states. • No new oil or gas refineries have opened in the United States since the 1970s, except for a small “boutique” refinery in North Dakota. A refinery in

BlackRidge Resource Partners photo Somerset, Ky., Continental Refining Co., was restored and reopened in 2012 after being closed for many years. Kentucky has one other refinery, Catlettsburg Refining LLC, which is part of the Marathon Petroleum Corp. • The first commercial well in Kentucky was drilled in 1818 in McCreary County. It was drilled for brine but pro- duced oil. • The Exxon No. 1 Duncan in Webster County holds the record as the deepest well in Kentucky. It was drilled in 1977 and was 15,200 feet deep.

Fracking Boom Hushes “Kentucky has been so focused on coal,” he said. “A lot of people have no idea that we have commercial (oil) wells that date all the way back to the 1800s.” Ky. Oil and Gas Action The footprint of oil and gas activity in Kentucky is small compared to coal, Commonwealth’s hydrocarbon resources aren’t agreed David Harris, head of the energy and minerals commercially viable at current prices – but markets change section at KGS, but more than half of Kentucky’s 120 counties produced either David Harris, BY LORIE HAILEY oil or gas, or both, in 2016. Energy and Minerals The activity, occurring Section Head, mostly in eastern and west- Kentucky ern Kentucky, can be easy Geological ENTUCKY’S oil and gas data, the latest available. But the oil and to overlook, though. Survey industry has had a rough gas industry is overshadowed by its “After the rig is gone, several years. Activity has behemoth cousin, coal, for which – there is a very little evidence of an oil and been trending downward for along with horse racing gas well,” Harris said. “There may be a over a quarter of a century, and bourbon – Kentucky small pipe sticking out of the ground, a Kalthough promising new drilling targets is synonymous. (The few tanks sitting on the location to collect were discovered just a few short years commonwealth is the the oil, but other than that, there’s not big ago and hopes were high. That all came nation’s fifth largest pro- evidence of the wells there. It is a bit hard crashing down in late 2014, when the ducer of coal.) to tell sometimes.” prices of oil and gas plummeted. The fact that Ken- The industry may be Experience shows the market shifts, tucky has an oil and gas Brandon small, but it is still impor- but for now, with oil prices sitting at about industry at all comes as a Nuttall, tant to Kentucky’s econ- $45 a barrel and projected to drop even surprise to many people, Geologist, omy, said Bill Barr, lower, and natural gas prices at about $3 said Brandon Nuttall, a Kentucky managing partner at Geological per million BTU, Kentucky permits for oil geologist in the energy Survey, BlackRidge Resource and gas drilling are at a record low and and minerals section at Partners and member of University Bill Barr, are likely to stay that way for some time. the Kentucky Geological of Kentucky the Kentucky Oil and Gas Managing Kentucky ranks 20th in the nation Survey (KGS) at the Uni- Association (KOGA) Partner, for crude oil production, and 18th for versity of Kentucky. It is much smaller board of directors. It pays BlackRidge natural gas, according to 2012 U.S. than the coal industry, and doesn’t get millions in state taxes, Resource Energy Information Administration nearly as much press. employs thousands of Partners

30 JULY 2017 LANEREPORT.COM • THE LANE REPORT

July Lane 21-44.indd 30 6/30/17 3:39 PM workers, and for every dollar produced, Last year, there it pays 12.5 cents of that to royalty land- were 16,074 natural owners, he said. In 2015, that amounted gas wells, a 6 percent to about $40 million. increase over 2015, In 2014, the industry directly employed but the amount of gas more than 3,000 workers and paid them retrieved from those an average annual salary of $75,000, wells was down 15 per- according to KOGA. That number is likely cent. The total value of to be lower now, though, because drilling the gas produced in activity has all but stalled. 2016 – $107.3 million Although it is resilient, and things – was down a whop- could turn around quickly if oil and gas ping 53 percent. prices increase or the geopolitical cli- In 2015, the industry paid $16.3 mil- Sixty-three counties produced oil or gas, or both, in mate changes, the Kentucky oil and gas lion in taxes. That amount dropped to 2016. The top Kentucky counties for oil production industry is “very stressed at the $9.1 million in 2016. are: Lawrence, Henderson, Union, Lee and Webster. moment,” Nuttall said. “Drilling activity is down, and here’s These five counties produced 42 percent of the state why,” Barr said. “We’re no different from total in 2016. The top counties for natural gas production are: Floyd, Pike, Clay, Knott and Letcher. Just how bad is it? any other business. We are market-com- “The oil and gas situation is not good,” modity-price driven. If oil is at $100 a bar- Harris said. rel, you’re going to spend more capital Drilling permits issued by the Ken- because you are going to have a better, oil prices,” Harris said. “That little tucky Division of Oil and Gas have been quicker return on your investment. If oil is bump has now started to decline again. steadily declining since 2008 when oil at $30 or $40, you’re going to have a We’re back on our downward trend, peaked at over $130 a barrel, but the past slower return, you’re going to be more unfortunately, because nobody can few years have been particularly low. cautious, and your bank is going to require make money at current prices.” So far this year, only 59 permits for oil you to spend less money.” No new horizontal wells at the Berea and gas drilling have been issued. KGS sandstone have been permitted in 2017, predicts the total number of permits for A short-lived boom Barr said, but there has been some drill- 2017 will be 50 percent less than the num- Kentucky oil production has been ing this year for wells that received per- ber issued in 2016, making it the third declining steadily for the past 30 years, mits in 2016. His company plans to drill year in a row permitting will have declined with a few small spikes here and there. up to four wells there later this year. by 50 percent or more. Things seemed to be looking up in Natural gas had a similar boost in “The production numbers will typi- 2013, however, when new drilling tech- production that began in 2008, which cally lag behind the permitting num- niques were used to access natural gas “was really the beginning of a big shale bers,” Harris said. “As soon as and oil stores in the Devonian Berea gas boom,” Harris said. It lasted until permitting goes down, you’re almost sandstone in Lawrence County. 2014, when growing U.S. natural gas always guaranteed to see a decline in The Berea had been vertically drilled supplies pushed prices below the profit- production. It’s been a pretty devastat- extensively since the 1920s, primarily for ability floor for Devonian drilling. Pro- ing change for the oil and gas industry.” gas, but it had “nuisance oil” associated duction has steadily declined ever since. There are 250 to 300 small produc- with it. The oil was considered a nuisance Gas production involves much more ers in Kentucky. In 2016, 2.59 million because it didn’t produce enough to be than drilling, and isn’t economical at barrels of oil were produced statewide, a commercially drilled. Horizontal drilling such a low price. The gas produced at 9 percent drop from 2015, Nuttall said. and hydraulic fracturing changed that, in the well often is a mixture of methane, The total value of oil produced in 2016 a big way. Oil production numbers went ethane, propane, butane and other was $96.8 million, a 28 percent drop up to 4.1 million barrels in 2014 from 2.9 gases, Nuttall said. from 2015’s $136.3 million. There was, million in 2013. however, a slight increase in the number “This little ‘play’ in Lawrence of wells in 2016, up to 12,425 from County actually turned around our pro- 12,019 in 2015. duction numbers, and we saw a signifi- cant increase in oil production in 2013 and 2014, which got a lot of people really excited,” Harris said. “It was a small boom there in northeastern Ken- tucky and the industry was feeling pretty good about it.” BlackRidge Resource Partners photo A play is group of hydrocarbon fields or prospects in the same region that are controlled by the same set of geological circumstances. Almost as quickly as it started, the boom was over. In 2013 and part of 2014 oil prices were nearly $100 a barrel. Not long after the oil play in Lawrence County began, prices dropped to $48 a barrel. “Unfortunately, (drilling) that play is not economic at those prices, and so Wellhead equipment is used to connect the pump we’ve seen essentially all drilling in that trucks and sand blending equipment to a well area come to a halt because of the low during a hydraulic fracturing well stimulation.

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July Lane 21-44.indd 31 6/30/17 5:47 PM COVER STORY

“These other gases will increase the heating value of the natural gas. What you have to do is remove that because it interferes with transportation. The gas is too ‘hot’ for use in a lot of equip- ment,” he said. “Because of processing fees to take the raw natural gas to a (refined) product that can actually be sold into the pipeline and used, and then the transportation costs, you can actually lose money producing a natural gas well in certain parts of Kentucky.”

Improved technology leads to controversy, new targets and regulations Both booms were the result of drilling reservoirs using two controversial tech- niques: horizontal drilling and hydrau- lic fracturing, or “fracking” as it has come to be known. “The combination of those, drilling a hole horizontally into a formation rather boosting domestic production and driving And Kentucky’s “fracks” are small than vertically and then using hydraulic down gas prices. compared to those used in larger oil fracturing to release the oil and gas from “Hydraulic fracturing started off with and gas production areas. A huge slick the rock, have really been the game- low volumes of water,” KOGA’s Barr water frack in Kentucky would be 1 to changer in the U.S.,” Harris said. said. “We learned that you could add 1.2 million gallons. In the Utica and Conventional drilling involves insert- surfactant, which is nothing other than Marcellus shales in Pennsylvania, a 12 ing a vertical pipe into the ground to dish soap, or similar items, to slicken million-gallon frack is considered small, extract hydrocarbon liquids flowing the water. It allows it to go into the rock Barr said. between rock formations underground. easier. Over the years, we’ve added more The use of fracking has prompted The natural underground pressure is all chemicals, although it is still less than a environmental concerns across the it takes to pump the oil from the well to couple of percent chemical, and the rest country. An organization based in the surface. These formations have high is water and sand. We’ve learned to add Berea, Ky., called Frack Free Foothills, permeability, meaning the fluids move nitrogen to the water and foam it to formed in 2014 to protest fracking in easily through the rock. allow it to carry sand. For others, we use Madison and its surrounding counties. Hydraulic fracturing was developed by only nitrogen because of how the shake “Fracking produces large amounts Halliburton in the mid-1900s to extract oil reacts to water. The formation dictates of wastewater polluted with brine, toxic and gas from geological formations with the formula, and the magic is in knowing chemicals, hydrocarbons (oil and gas low permeability. Fracking involves inject- what recipe is right for each formation.” byproducts), and even radioactivity that ing a high volume of water, chemicals and That “recipe” was developed over the has been known to pollute drinking fine sands to “fracture” a deep rock forma- years, primarily in Texas, and those water wells, streams and land,” accord- tion to enhance the flow of oil and natural techniques have moved across the coun- ing to the organization’s website. “Our gas produced from a horizontal well, try. In Kentucky, he said, most natural water treatment facilities cannot handle according to KOGA literature. Tens of gas wells have been fracked with nitro- this type of waste.” thousands of wells have been hydraulically gen, an inert gas that has zero impact In addition, Frack Free Kentucky fractured in the U.S. in the last decade, on the environment. claims being near fracking wells can reduce the value of property and that the process itself is linked to earth- quakes. The group’s efforts to fight fracking in Madison County helped encourage the state legislature to review and update Kentucky’s oil and gas drilling laws, which had not been updated since the 1960s, Nuttall said. “A lot of the issues related to hydrau-

BlackRidge Resource Partners photo lic fracturing and horizontal drilling in Kentucky’s regulations have been updated,” he said. “We now require pre- treatment and post-treatment monitor- ing of water wells. We now require there to be reclamation plans in place, and we require public disclosure of all of the chemicals used in hydraulic fracturing.”

A “pumpjack” is used to mechanically lift oil to the surface of this BlackRidge Resource Partners’ well.

32 JULY 2017 LANEREPORT.COM • THE LANE REPORT

July Lane 21-44.indd 32 6/30/17 5:14 PM Where do we go from here? Barr said. “The Rogers- There are some potential new, uncon- ville could be a major ventional oil and gas drilling targets example of that.” being explored now, including the Rog- Other factors could ersville shale, a very deep formation in help boost the U.S. oil Eastern Kentucky. Those new targets and gas industry, said “could turn into significant increases in Scott R. Smith, senior Scott R. Smith, production in the state,” Harris said. Senior consultant with Smith “But it’s too early to tell.” Consultant, Management Group, The Rogersville shale, located in Smith which specializes in Lawrence and Johnson counties, is Management energy project develop- attracting much interest, but little is Group ment and environmental publicly known about the exploratory permitting. A number of wells that have been drilled there, power plants are coming online that will Nuttall said. Economic viability of the be fueled by natural gas instead of coal, Rogersville shale will depend on the he said, and that will impact demand. production rates established there, “A lot of people don’t realize how along with higher commodity prices. much gas those facilities are going to “There have been a couple of hun- consume,” he said. “They may have

dred thousand acres leased, and the underestimated that demand.” BlackRidge Resource Partners photo players that leased it were major compa- The Trump administration has made Workers from BlackRidge Resource Partners rig up a nies like Continental, Cimarex, EQT approval of natural gas exports a signifi- drill on the #1-HOR well located in Lawrence County and some other larger companies,” Barr cant part of its energy strategy. New U.S. said. “It is an expensive play. The wells Secretary of Energy Rick Perry said he are 12- to 14,000-feet deep, and the wants to make the U.S. a “dominant stakes are high.” energy force” by exporting oil, gas and If it is successful, he said, it will be coal to markets around the world. In Barr remains optimistic about Ken- transformative for that part of north- April, Perry approved the first permit to tucky’s future oil and gas prospects, eastern Kentucky, in terms of royalties export liquefied natural gas overseas. even as the industry waits for prices to paid to landowners, severance taxes The first shipment was delivered to climb and demand to grow. paid to county and state governments, Poland in June. “So how do we continue on?” He job creation and wealth creation. Natural gas is the backbone of the pet- asked. “The industry has to be selective “If you do the math, for every 1,000 rochemicals industry, Smith said. Because as we look at our new prospects, we have barrels, 125 go to the landowners. At Kentucky’s natural gas is not pure meth- to embrace new technology, and we $50 a barrel, that’s $6,000 a day. That’s ane, the other gases have to be processed have to do things better and smarter.” $180,000 a month,” Barr said. “That has out and transported to the petrochemicals “I still think there is a room for happened in the Marcellus and Utica industry in other parts of the country. The robust oil and gas fossil fuel industry in (shales) in Pennsylvania, northern West commonwealth could benefit greatly by the state,” Barr said. “There are thou- Virginia and eastern Ohio.” working to establish its own petrochemi- sands of wells that have produced and To survive, Kentucky’s oil and gas cals industry here, he said. Kentucky will produce for decades to come.” ■ industry must be ever-evolving, he said. already has at least one company, a PVC “We’ve got to be flexible, look for manufacturing facility in Calvert City Lorie Hailey is a correspondent for The Lane Report. evolving play and apply technology,” called Westlake Chemical Corp. She can be reached at [email protected].

July Lane 21-44.indd 33 6/30/17 3:40 PM TRANSPORTATION AND LOGISTICS

pen,” Barber said. “We still fell a(nother) year behind.” Transportation spending had Playing Catch Up with exceeded revenue by nearly $500 mil- lion for the 2014-16 biennium, Trans- portation Secretary Greg Thomas told legislators in testimony a year ago. Gas Infrastructure Needs tax rates are tied to the wholesale price of gasoline, which had steadily declined. Revenue in 2015 was $195 million less than 2014. With gas tax revenue decelerating, Kentucky joins the Wholesale gasoline prices run search for a strategy to fund roads, bridges and more roughly 20 cents a gallon below retail, according to the National Association for Convenience and Retail Fueling, BY MARK GREEN whose members sell about 80 percent of U.S. gasoline. The cost of retailing is 12 to 16 cents a gallon, and sellers make about 5 cents profit a gallon. TATE officials and members of executive director of Ken- Under Kentucky’s current formula, the private transportation infra- tuckians for Better Trans- gasoline taxes will not begin to rise structure sector are searching portation (KBT). “They off the 26 cents floor until wholesale for a strategy not only to catch had to right-size the ship. prices top $2.17 a gallon up to Kentucky’s needs but get This gave them a chance In late June, retail prices were bounc- Sahead of the curve. to know that they can pay ing around at levels at or below $2.17. As the June issue of The Lane Report the bills that they have Founded in 1978, KBT is a multi- Juva Barber, detailed in the cover story, gasoline tax before they do more.” Executive modal trade association with 303 mem- rates and collections that keep the state Allowing the road Director, bers across a variety of sectors, from Road Fund filled have fallen with prices fund to fall so low the Kentuckians contractors to construction engineers, in recent years. The General Assembly state couldn’t pay its for Better chambers of commerce, railroads, air- added a floor of 26 cents a gallon to the highway construction Transportation ports, some counties and cities, and tax formula last year and the Kentucky and maintenance bills even important system users like UPS Transportation Cabinet’s Pause 50 pro- would have started a chain-reaction of and Toyota, Barber said, “because they gram suspended new projects for a year problems for the entire sector. Avoiding can’t do what they do without a multi- so the road fund could rebuild to the it, though, caused the state to fall fur- modal transportation system.” $100 million minimum believed appro- ther behind in maintaining its multi- KBT advocates for a safe, sustainable priate to manage the financial Grand modal transportation infrastructure, transportation network, which means Central Station of payment traffic the including not only roads but bridges, there must be adequate long-term cabinet oversees. This month, the com- ports, railroad crossings and more. financial support to keep Kentucky monwealth will begin new project Pause 50 is considered a short-term competitive, she said. Roads and bridges spending for fiscal 2018 at $50 million, success. get most of the political attention, but less than a third of typical years recently. “That doesn’t take away the need. members want all of the elements main- “The Cabinet did the right thing in People need those projects to go for- tained and improved because all the enacting Pause 50,” said Juva Barber, ward. It just takes longer for it to hap- pieces impact each other. Do you find your intelligence shrinking? Get your daily boost at WUKY, 91.3 FM. Listen to WUKY and be enlightened, inspired and entertained!

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July Lane 21-44.indd 34 6/30/17 5:16 PM With Kentucky Transportation Cabinet officials having identified a need for an additional $205 million in revenue annually to keep up with maintenance of existing roads and bridges, and any new construction adding to the total, state House Speaker Jeff Hoover appointed a bipartisan Transportation Task Force in late June to examine options and make recommendations in December, ahead of the 2018 General Assembly session.

“It’s so Kentucky can maintain its competitive edge, which is where we are located in the country,” Barber said. for states and the federal government has look at all aspects of the The state has attracted the UPS World- been losing traction over the past decade, road fund, including port, a DHL air freight global hub and especially after the 2008-09 recession as planning and funding. soon the first-ever Amazon Prime hub Americans drove fewer miles, their vehi- Others on the task because their sites are within a day’s cles have grown more fuel efficient and a force are Marie Rader, drive of the majority of the U.S. market. small but growing number of electrics and R-McKee, who chairs the “But you have to actually be able to natural gas-powered cars and trucks use House Transportation no gasoline at all. Committee; Matt Castlen, Jeff Hoover, drive there. You have to have the infra- Speaker structure support” for the logistics sec- Gasoline taxes increased 4 cents a gal- R-Petrie; Jeff Greer, of the House, tor to function. lon in Tennessee on July 1 and will D-Brandenburg; Bart Commonwealth Beyond its roads and its bridges, she increase another 1 cent each of the follow- Rowland, R-Tompkins- of Kentucky said, about 70 of which are now closed ing two years, adding up to 6 cents total. ville; Phil Moffett, R-Lou- for safety reasons, Kentucky has some Tennessee’s tax on diesel fuel is going up isville; Chad McCoy, R-Bardstown; and 2,000 railroad crossings, eight public 10 cents over the next three years. Tennes- Attica Scott, D-Louisville. ports and public transit on its responsi- seans also are paying an extra $5 to regis- “Everything is on the table,” Santoro bility checklist. ter cars, but their sales tax on groceries said. “Don’t think we’re not going to All of it is part of an international sup- dropped from 5 percent to 4 percent. shake the bushes because we are.” ply chain for manufacturers, commerce Indiana’s gas tax increased 10 cents Barber encourages Kentucky’s busi- and consumers, raw product producers a gallon July 1 and its diesel tax 31 ness community to support making and users, including agriculture as well as cents. Registration fees increased $15 changes in funding for transportation public service systems such as education. for gas vehicles, $50 for hybrids and infrastructure. “It is a national and international pro- $150 for electrics. “They need to understand that trans- cess,” she said. “We don’t buy all the Cam- In Kentucky on June 28, House Speaker portation is important to all of us,” she rys we manufacture here in Kentucky.” Jeff Hoover appointed a bipartisan trans- said, not just to the road and bridge According to Barber, the Transporta- portation task force to examine state roads builders. “Manufacturing, mining, agri- tion Cabinet has identified a need for an and bridges needs and options. The task culture, service providers – it matters to additional $205 million a year just for road force will make recommendations by all of us. We need to be supportive of resurfacing and bridge maintenance. December, in advance of the 2018 General infrastructure, and be supportive of Additions to the system that are being Assembly that convenes in January. making changes to fund it.” ■ sought across the state add to the total. Rep. Sal Santoro, R-Florence, and There is no obvious answer. The gas tax Rep. John Simms, D-Flemingsburg will Mark Green is executive editor of The Lane Report. funding model that has been a mainstay co-chair the group. Santoro said it will He can be reached at [email protected].

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July Lane 21-44.indd 35 6/30/17 3:40 PM EMERGING LANE Kentucky’s young professionals and creatives

Tapping into a New Market Louisville event planner launches new business

HE high-profile Lou- “I believe we are only as good as our isville-based wedding last event,” Chitwood said. “We take that planner Lauren Chit- statement very seriously. We apply the Twood is launching a new same attention to detail and skill to every Thomas Photography photo Lang Celebrating the 150th anniversary of DDWilliamson, corporate entity to utilize event: large or small, social or corporate.” event planner Lauren Chitwood called it “the pencil her event-planning skills That attention to detail has set Lauren party” after creating centerpieces with thousands of in new ways. Lauren Chitwood Events apart, and continues to pencils. DDWilliamson manufactures caramel and “I am creative while Chitwood be a trademark of all her endeavors. other natural food colors. being a big-picture prob- “Corporate and social events share an lem solver; I thrive in the complex- important characteristic: They both seek “While I am the face and visionary event environment whether it’s on the to deliver an experience for their guest or behind these two companies, there is a social or corporate side,” Chitwood user. Whether it’s a bridal shower or a cor- robust team of highly qualified event pro- said. “Being an entrepreneur is a daily porate retreat, the guest experience fessionals alongside me,” Chitwood said. roller coaster with little consistency; should be impactful and memorable.” “Our business is strong because we do our high risk and high reward, I wouldn’t With this consistently in mind, Chit- piece of the puzzle well, and rely on the have it any other way.” wood saw the opportunity to grow her expertise of other professionals to com- This skillset has given Chitwood business and took it, noting that with plement our services,” she said. “For every incredible success in Louisville and Louisville’s addition of 1,500 hotel event, we leverage our relationships with beyond, and only grows with the recent rooms and a remodeled convention our premium vendor partners to deliver launch of Olio Event Group, which center nearly completed, corporate memorable experiences for our clients.” takes a focus on corporate events. business planning was a market with Despite the problem-prone nature Chitwood has a decade of experi- largely untapped potential. of event planning, her team has proven ence under her belt and plans 15-20 As the business grows, she is focus- to be agile in its ability to handle the weddings per year in the southeastern ing on the relational aspects of event unexpected, Chitwood said, adding United States. She’s been featured on planning, especially how her team and that she encourages others starting out outlets like Martha Stewart Weddings, her vendors can improve the efficiency to expect the same and to grow from Style Me Pretty and BRIDES.com. of her two events operations. each experience. —Allison Antram

Kentucky Heritage Council for redeveloping the plant and The Coke Plant preserving many of its original Art Deco features. The build- ing dates to 1939, when it was built by Coca-Cola bottler Refreshes Paducah Luther Carson. “What we wanted to do with the structure was find a way to Restored Art Deco jewel downtown bring in as many things that make Paducah Paducah,” Mussel- man said of the plant’s 21st-century iteration. He also wanted now bubbles with entrepreneurs to include something the city didn’t have yet: a craft brewery. In February 2015, Dry Ground Brewing became the Coke OR roughly five years now, people have looked at us as if Plant’s first occupant. In addition to owning the building and we’re crazy,” said Ed Musselman. “Now it’s a no-brainer.” the Dry Ground microbrewery and taproom, the Musselmans The crazy no-brainer scenario is the restoration of the are majority owners of Mellow Mushroom, a pizza franchise “FCoca-Cola bottling plant in downtown Paducah that’s now a based in Atlanta – and yes, they serve Coke products. vibrant hub for showcasing artists and musicians and bringing in The other businesses are tenants, including Pipers Tea & locals and tourists for coffee, beer and food. The building sat Coffee; Ice Cream Factory; True North Yoga; an art gallery vacant since 2005 before Ed and Meagan Musselman of Mussel- and gift shop called Ochre; and the Baptist Health Founders man Properties purchased the property in 2013. Room, a rentable community space. There also are areas for The 16,000-s.f. building needed digital marketers, video production and musicians. A technol- plenty of TLC. The Musselmans got ogy/maker incubator is in the works. the roof taken care of and windows “We are trying to foster entrepreneurial growth,” Mussel- secured. They also set about to get man said. “We have a list so long of the next projects.” the property listed on the National He has a degree in biology and worked for a chemical Register of Historic Places. In May of plant a few years before getting into the development busi- this year they were presented with a ness. Meagan Musselman has a master’s in education and a preservation project award from the Ph.D. in curriculum construction. She has been teaching for 15 years, nine as an assistant professor at Murray State. “It’s a great place to be a young professional,” Meagan Mussel- man said of Paducah. “There are lots of young professionals in the area, lots of people to collaborate and work with.” Meagan and Ed Musselman with two of their She and her husband are both managing members of Mus- children on closing day of the Coca-Cola selman Properties. bottling plant in downtown Paducah in 2013

36 JULY 2017 LANEREPORT.COM • THE LANE REPORT

July Lane 21-44.indd 36 6/30/17 3:40 PM A Leading Litigator Advice from Fayette’s top young attorney

N May, Matt Parsons of Stoll Keenon Ogden was named the Fayette County Bar Associa- tion’s 2017 Outstanding Young Lawyer. I The award recognizes an FCBA member who has practiced in Fayette County for less than 10 years, fulfilled an attorney’s duties to the court, clients and community, and shown Matt Sylvianna Herrin, third from right, and Nate Polly, to her right, recently opened dedication to the justice system through com- Parsons a new shop together selling macarons and coffee. munity involvement. “It was a complete surprise,” said Parsons, 37. “It was a very Strategic Partnership Drives great honor, and I was very grateful. I was nominated by Gene Vance, who’s been a great mentor for me at this firm, and I Local Macaron and Coffee Shop was certainly humbled.” Parsons focuses his practice on civil litigation, particularly in T’S hard to beat freshly roasted coffee and French macar- the areas of business litigation, products liability and warranty ons, but the combination of the two is surely one to please defense, insurance defense, and employee benefits litigation. palates all over Central Kentucky. Lexington coffee roaster INate’s Coffee and La Petite Délicat this summer joined forces Parsons is past president of the FCBA Young Lawyers Section and previously served on at their new paired location in Lexington’s hip, growing the boards of directors of the FBCA and Warehouse Block neighborhood. the Fayette County Bar Foundation. He is The partnership is an example of the inclination for team- a volunteer instructor with Junior work young professionals all over Lexington are displaying. Achievement and leads fundraising “Lexington is a city that strives to work together, and the efforts for God’s Pantry Food Bank and Warehouse block district is a great example of that,” said Nate other charities. Polly, owner of the five-year-old Nate’s Coffee business. “Mirror He is a graduate of the University of Ken- Twin (Brewery) and Rolling Oven (pizza), which is directly tucky College of Law and holds a computer across the street from us, is a great example; they work together information systems bachelor’s from the Kelley School of to bring the community around them together and share space Business at Indiana University. and the customers that seek out either the pizza or beer.” We asked the young attorney about his experience practic- Sylvianna Herrin, owner of La Petite Délicat, opened in 2015, ing law. said though her business sells a specialty product it’s been suc- cessful because of its uniqueness and high quality. TLR: Why did you choose this profession? “Very few shops make macarons because they are one of the more difficult baked goods to make,” she said. “We are It was an opportunity to go into a field that presents MP: the only specialty macaron shop in the city of Lexington.” challenging work and a continued opportunity for a lifetime Polly said Herrin approached him about a collaboration. of learning. There’re people who are very experienced in “Sylvi actually approached us about a partnership,” he said. this field who still say they are learning new things every day. “She wanted to expand from serving our Yo! Wake Up to offering Also it’s an opportunity to help people and businesses a full espresso bar in her new space. I love the new National Ave- solve problems. nue/North Ashland (Avenue) scene and jumped at the opportu- TLR: What do younger attorneys do differently than nity to establish a Nate’s Coffee brick-and-mortar there. Between the veterans? the great locally owned shops, restaurants, gyms and now Mirror MP: This is not unique to the legal profession, but technol- Twin, National Avenue is just an exciting place to do business.” ogy has changed the way that we practice, and I think that is The duo’s shop is situated in Warehouse Block, an area most acutely felt when you’re a younger attorney. We tend to known for its collaborative marketing efforts and sense of be more reliant on technology and use it more in our day-to- community. day practice. And coffee and macrons happen to go really well together. How have you set yourself apart in the legal world? “Both of us wanted to provide a place for people to enjoy TLR: what we do best, and with her knowledge of baking and mine MP: I think for one I actually was in IT for a career before I of coffee it only seemed right that we would join forces,” Polly went back to law school, and that has been really useful for said. “All of the businesses and people in the neighborhood me. And being civic minded and engaged in the community have been extremely welcoming, and their support has reaf- is something I’m passionate about. It’s really important to be firmed our idea that this area was the right places for us to be. well rounded and focus on both your professional obligations There are so many opportunities to see our great city con- and community obligations. tinue to grow. As long as people can come together and com- TLR: What advice would you give people considering law bine their loves, Lexington will be at the forefront of a school? collaborative future.” Since combining, Herrin said the pair have been able to MP: Look at it as a financial proposition. Understand the loans you’re going to take out and the debt you may get into, expand the shop’s offerings, adding new pastry items. and how that may compare to your current situation. And La Petite Délicat had a spot on South Ashland, but Herrin contact a career services office at whatever graduate school had to close it for a parking expansion at the nearby Euclid they’ll be at to find out their placement rates and salary Kroger store. The shop is now located at 722 National Ave. in ranges.—Abby Laub Lexington.—Abby Laub

THE LANE REPORT • LANEREPORT.COM JULY 2017 37

July Lane 21-44.indd 37 6/30/17 3:40 PM THE LANE LIST

KENTUCKY POWER PLANTS OR decades, Kentucky was the third-largest producer of coal in the United States. In 2016, Kentucky dropped to the fifth- largest, as coal-fired electricity generating plants that been customers of Kentucky mines were retired. Eighty-three percent of Kentucky’s net electricity generation in 2016 was coal-fired, but a record 10 percent was natural gas-fired, according to the FU.S. Energy Information Administration. Kentucky has two oil refineries – Continental Refining (Somerset) and Marathon Petroleum (Catlettsburg) – with a combined processing capacity in 2016 of about 278,500 barrels per calendar day.

NAME LOCATION TYPE Barkley Dam Cumberland River Hydroelectric Big Sandy Unit 1 Louisa Natural gas Bluegrass Station (EKPC) La Grange Natural gas Cane Run Generating Station (LG&E/KU) Louisville Natural gas Cannelton Hydroelectric Project Hawesville Hydroelectric D. B. Wilson Station (Big Rivers Electric) Centerville Coal-fired Dix Dam Hydro Plant (LG&E/KU) Dix River Hydroelectric Hydroelectric, coal-fired, solar, nat- Near Harrodsburg E.W. Brown Generating Station (LG&E/KU) ural gas/fuel oil turbines Ghent Generating Station (LG&E/KU) Carrollton Coal-fired Henderson Station (Big Rivers Electric) Henderson Coal-fired H. L. Spurlock Station (EKPC) Near Maysville Coal-fired Combustion turbines running Trapp J. K. Smith Station on natural gas or fuel oil John Sherman Cooper Station (EKPC) Near Somerset Coal-fired Kenneth C. Coleman Station (Big Rivers Electric) Hawesville Coal-fired 22 miles upstream from the confluence Hydroelectric Kentucky Dam (TVA) of the Tennessee River with the Ohio River Laurel River Dam Laurel River Lake Hydroelectric Mill Creek Generating Station (LG&E/KU) Southwest Jefferson County Coal-fired Mother Ann Lee Near Harrodsburg Hydroelectric Ohio Falls Hydro Station (LG&E/KU) On the river, near Louisville Hydroelectric Paradise Fossil Plant (TVA) Paradise Coal-fired Robert D. Green Station (Big Rivers Electric) Robards Coal-fired Robert A. Reid Station (Big Rivers Electric) Robards Coal-fired Shawnee Fossil Plant (TVA) Near Paducah Coal-fired Smithland Hydroelectric Project Smithland Hydroelectric Trimble County Generating Station (LG&E/KU) Milton Coal-fired Wolf Creek Dam Russell County Hydroelectric

KENTUCKY POWER GENERATING CAPACITY (figures for March 2017)

KENTUCKY TOTAL KENTUCKY SHARE OF U.S. Electric Power Industry Net Summer Capacity 20,120 MW 1.9% Total Net Electricity Generation 5.714 million MWh 1.8%

SOURCE OF KENTUCKY POWER GENERATION

SHARE WITHIN KENTUCKY SHARE OF U.S. TOTAL Petroleum-Fired 0.1% 0.3% Natural Gas-Fired 9.2% 29.1% Coal-Fired 81.5% 28.2% Nuclear 0% 20.5% Renewables 7.9% 21.1%

Source: U.S. Energy Information Administration

38 JULY 2017 LANEREPORT.COM • THE LANE REPORT

July Lane 21-44.indd 38 6/30/17 3:40 PM SPOTLIGHT ON THE ARTS

Vince Emmett, left, chats with Neil Kesterson June 23 at an NEA Technical Arts Roundtable in Lexington. Emmett is a Louisville-based composer who has written several soundtracks.

LBB: How does an artist define entre- preneurial business success the same or differently than another entrepreneur? VE: Sleeping indoors is a start. But seri- ously, I don't know an artist that doesn't consider it a blessing just to be able to do it daily. I always tell young artists, “This life is not a normal life; it is the utmost privilege.” I've lived a wonderful life and provided well for my family. That's bonus upon bonus.

LBB: What skills are required for an art- ist to be financially viable as an entre- preneur? VE: It's not news a young artist likes to hear, but you have to be a business minded, informed artist, otherwise the art will stop. My life consists of 60 per- cent new business pursuits, managing business partnerships and straightfor- The Artist as Entrepreneur ward day-to-day connecting the dots. Running into walls and sleeping indoors Then some music happens. Prepare yourself, eating requires the exchange of money for food. BY LYDIA BAILEY BROWN LBB: As an artist, are you working with the film industry in Kentucky? N June 23, I met with a select I now have employees but I still "wash VE: I am. I compose music for film group of entrepreneurial artists the bottles and all the rest of the dishes. and television, so I'm here. Owho are working in technical cre- The buck stops with me. We believe enough in Kentucky’s ative industries that support the perform- efforts and those heading the effort, ing and film arts. The Kentucky Arts LBB: Why don’t many folks think of art- that we are willing to put a considerable Council organized a roundtable, spon- ists as entrepreneurs? financial investment into the future sored by the National Endowment for the VE: Most people only know folks who do here. I have a 251-year-old log cabin Arts, to encourage thought leadership in music or paint as a hobby. Being an artist that was a recording studio for years the commonwealth. We invited our Tour- full-time is a bizarre concept for so many near Louisville. It is now our new post ism, Arts and Heritage Cabinet teammates who get up daily and work for a company. studio for my composing work. from the Kentucky Film Office to the I understand that. My parents were very I was honored to be invited to Los roundtable at the Kentucky Educational hard working people. I grew up with my Angeles with former Gov. (Steve) Bes- Television studio in Lexington. grandfather’s stories of building roads in hear and the First Lady as they made After the daylong sessions ended, I Adair County Kentucky. Back breaking the announcement that Kentucky was enjoyed a Q&A on the topic of arts busi- work, human breaking work. So, in just “Open for Business” to the film industry ness with composer, music producer and one generation I'm playing and writing a few years ago. And I’m encouraged by Kentucky native Vince Emmett. As a music for 30 years and making a living. the excellent work of the Tourism, Arts composer, he blends country music ele- That's quite a social, cultural shift in just and Heritage Cabinet and its agency ments uniquely with orchestral, experi- my family. leaders, including those leaders at the mental, ethereal and traditional scoring Kentucky Arts Council, who collaborate elements for feature films and episodic LBB: How has that perception of art not in the name of creative business. It's work. After his first feature film, Pha- being a business made your career path going to do well. raoh's Army (1995), staring Kris Kristof- difficult? ferson, Chris Cooper and Patricia VE: I've run into walls. I've stood in more LBB: Thank you, Vince. We love what Clarkson, he began to receive requests than one social situation being introduced we do! And we are proud of your art- for compositions and productions from as a composer and gotten giggles and awk- istry and your business. ■ major networks and film companies. ward comments. But mostly I've experi- Emmett’s current soundtrack release enced interest and the usual thousand For more information on Emmett, “The Song,” can be heard on Capitol questions. A working artist is just not visit vinceemmett.bandzoogle.com. Records and Lakeshore Records. someone you meet every day. At the same time, media – films, music, episodic works, Lydia Bailey Brown: Vince, are you an art of every imaginable bent – is integrated Lydia Bailey Brown is executive entrepreneur? in people's daily, hourly even minute-to- director of the Kentucky Arts Council. Vince Emmett: Entrepreneur, yes. I am minute experience, more than ever before CEO, musician and chief bottle washer. in history. Somebody has to make that.

THE LANE REPORT • LANEREPORT.COM JULY 2017 39

July Lane 21-44.indd 39 6/30/17 3:40 PM EXPLORING KENTUCKY

Baker-Bird Winery is set on 300 acres along the Ohio River near Augusta, which in the 1850s was the source of nearly half of all the wine consumed in the United States.

Bird also owns a second business that goes hand-in-hand with the other two. Perched on a hill 400 feet above the Ohio River, Hawk Wood Hall is a seven-bed- room, French Tudor home built as a bed and breakfast. With a property buyout, the B&B can easily host a corporate retreat only seven miles from the winery. As a meeting spot, the house can accom- modate up to 30 people in a spacious room and up to 100 on a large patio and porches that overlook the river. The B&B is surrounded by acres and acres of timberland and farms, and bed- rooms have luscious views of nature. “It’s wonderfully quiet,” says Bird. “Our most popular spot is the back porch with rockers overlooking the river. Our biggest problem is that no one wants to leave!” She adds that Hawk Wood will be right on the Northern Kentucky Bour- bon Trail, due to open in January 2018. The third business, also on the Ohio, Team Up and ‘Wined’ Down offers playtime for corporate types and groups of any age, heavenly spa services Explore Augusta’s riverfront charms for girlfriend getaways – and guys’ retreats – plus a “we-do-it-all” locale for weddings. BY KATHERINE TANDY BROWN Just a mile from the winery, Potato Hill Farm is an 1850s-era farmstead tucked in a private, 86-acre “holler.” Own- re you a meeting planner search- country’s third-largest grape and wine- ers Celine and Ron Quinn began restor- ing for an offsite venue with producing state. ing the property in 2005, creating a comfy Ainspiring gathering space, team- “Not a lot of people realize what an balance between old-fashioned and upcy- building activities and overnight accom- important role Kentucky played in the cled with modern amenities. Over 18 modations? A bride honing in on a country’s wine business historically,” says months, Ron and a few neighbors trans- perfect wedding spot? Or perhaps a owner Dinah Bird. “Our 1850s records formed the barn, retaining its hand-hewn vacationer looking to explore small- show that about half of the wine con- beams and vintage wood and metal, while town Kentucky, sip a bit of the common- sumed in America came from Augusta.” hauling creek rock for its floor and add- wealth’s fruit of the vine and relax at a These days, her winery boasts 12,000 ing a “donkey bar” (read on). The desti- B&B with a splendid river view? Amaz- s.f. of meeting space for up to 200 peo- nation opened for business in 2010 with ingly, three businesses near Augusta in ple, including Baker’s historic, hand- sustainability as its byword. Northern Kentucky have teamed up to dug wine cellar – great for multimedia fill all of those bills. presentations. The space also includes The first, Baker-Bird Winery, per- double parlors and breakout rooms in sonifies the state’s rich grape-growing and the 1850s house, and there’s the tasting wine-producing history. Set on 300 fertile room, for sampling award-winning acres along the Ohio River, it’s the oldest bourbon-barrel wines. commercial estate winery with its original Historic tours feature learning about land in America and one of only 22 winer- the winemaking process then and now, ies – of about 6,000 in the country – on viewing the estate’s original vineyards, the National Historic Register. rolling a barrel in the cellar and corking In 1797, the first commercial vineyard a bottle with your own message inside. in the U.S. was planted in Kentucky’s At Wine is Wonderful University, Bird Bluegrass Region. German immigrants teaches guests how to use all five senses from the great wine area of Baden flocked in drinking and appreciating wine and to the Ohio River Valley in the mid-1800s what character to look for while tasting. and established “America’s Rhineland,” She even rewards “students” with a com- The Potato Hill Farm corporate retreat, including the Abraham Baker wine cellar, pletion certificate. girlfriend getaway and wedding site includes which is now Baker-Bird Winery. By the Baker-Bird is open year round on a farmhouse spa and three donkeys for treks late 1800s Kentucky had become the Saturdays, Sundays and by appointment. around its 86-acre hollow.

40 JULY 2017 LANEREPORT.COM • THE LANE REPORT

July Lane 21-44.indd 40 6/30/17 3:40 PM Both Quinns bring experience from The historic, hand-dug wine cellar at Baker-Bird years of teaching to create customized Winery dates to the 1850s. team building. Games that focus on goals of cooperation through strategy and/or competition include Ron’s cus- tom-made box hockey and giant Jenga, i.e. wood stacked crosswise from which “I’m not a psychotherapist, the don- a participant must remove a piece with- keys are,” Celine affirms. “They’re ancient out tumbling the stack; tether ball; cro- souls that have carried everyone’s burdens quet; giant checkers; and balloon-tower over time. They understand. It’s so nice building. when they nuzzle you.” With views of hayfields, meadows and The clever, flop-eared animals can a creek, the gorgeous event barn can even ring a bell for a carrot treat. seat up to 75 for a corporate function If you can tear yourself away from (there’s wireless access throughout) or a this beautiful spot, the town of Augusta wedding, complete with catering, music, is but a short, three-mile bike ride or car changing rooms and a trolley to accom- jaunt away. Here you can hear about the modations. town’s part in the Civil War, stroll along As a retreat, Celine, herself a yoga the Ohio, grab a burger at the Corner practitioner, offers a “farmhouse spa.” Café, and hop aboard the Jenny Ann, Participants revel in relaxing massages, one of the river’s oldest operating fer- chill on the riverview porch, sip icy ries. Vehicles pay only $5 one way, while cucumber water, then nibble on a deli- pedestrians ride free. cious healthy salad and quiche made Check out your options at bakerbird- with farm-laid eggs. winery.com (859-620-4965), hawkwood- In addition, three donkeys reside in hall.com (937-108-1020), and the barn. All are available for treks, i.e. hik- potatohillfarm.com (513-833-6938). ■ ing with a donkey; picnics, accompanying a donkey to a creekside lunch on a table Katherine Tandy Brown is a correspondent with white linen, fine china, and live Irish for The Lane Report. She can be reached fiddle ditties; and donkey therapy. at [email protected].

Bluegrass Commerce Park

Solid Educational Foundation for businesses large or small... Get your message before the most significant Bluegrass Commerce Park is the largest diversified audience of Kentucky’s decision makers employment center in the Commonwealth of Kentucky available in the state. Get details by calling that employs more than 34,000 people in the Curtiss Smith at (502) 548-0434. Louisville Metro market. For more than 40 years, Jeffersontown has been setting the standard for regional business development.

Bill Dieruf, Mayor 10416 Watterson Trail . Jeffersontown, KY 40299 jeffersontownky.gov 502-261-9697

THE LANE REPORT • LANEREPORT.COM JULY 2017 41 2017 3.4375x4.875.indd 1 6/19/2017 1:06:28 PM Staycation Special Size.indd 1 6/30/17 12:13 PM

July Lane 21-44.indd 41 6/30/17 5:32 PM PASSING LANE Commentary on Kentucky

Explore Kentucky’s Most Notable Buildings

ARLIER this year, USA • Four Roses Distillery, TODAY Travel and the Lawrenceburg EAmerican Institute of • Humana Building, Architects (AIA) teamed up Louisville to develop a listing of the • Kaden Tower, Louisville best buildings in America. • Kentucky Artisan Center,

The list below features the Berea Wikipedia photo most architecturally signifi- • Kentucky State Capitol, St. Mary’s Cathedral Basilica of the Assumption cant structures in Kentucky Frankfort and makes for a great start- • Central Kentucky Thor- • Louisville Water Works Spindletop Hall, ing place to develop an oughbred Horse Farms, and Pump Station No. 1, Lexington interesting driving tour of Central Kentucky Louisville • St. Mary’s Cathedral the commonwealth: • Kentucky Vietnam Veter- • National Corvette Basilica of the Assump- • Muhammad Ali Center, an’s Memorial, Frankfort Museum, Bowling Green tion, Covington Louisville • Lake Barkley State Park • Northern Kentucky Uni- • Churchill Downs, • Bernheim Arboretum & Lodge, Cadiz versity Student Union, Louisville Research Forest Visitors • Louisville Palace Highland Heights • Keeneland Racecourse, Center, Clermont Theater, Louisville • Shaker Village at Pleas- Lexington • Blue Heron Mining • Louisville Free Public ant Hill, Harrodsburg • Wild Turkey Bourbon Community/Big South Library, Southwest • Speed Art Museum, Visitor Center, Fork Coal Camp, Stearns Regional Branch, Louisville Lawrenceburg • Conrad Caldwell House Louisville • 21c Museum Hotels, • Yew Dell Botanical Museum, Louisville Louisville, Lexington Gardens, Crestwood • Wikipedia photo Above: Shaker Village Right: Four Roses Distillery Left: Louisville Palace Theater Wikipedia photo

Hemp Workshop Showcases Material’s Versatility HE North Limestone Community (known as hemp hurd) are mixed with Development Corp. hosted a lime and water. The mixture is placed TBuilding With Hemp workshop into forms similar to the way concrete is in Lexington on June 9-10, providing placed and the forms are removed once participants with the opportunity to the hempcrete is dry and set up. The learn about how hemp can be used in end result is a solid, rigid, highly insula- construction. tive material (R-2.4 per inch) that is Those participating in the two-day hypoallergenic, fire- and insect-resis- workshop learned how to mix and place tant, has significant thermal mass, and hempcrete insulation in a new shotgun- is vapor-permeable. style house being built at 168 York The house will be the first in Ken-

Street in Lexington. tucky insulated with hemp and is being photo Technology Alternative Centre for Hempcrete is a process by which built with hemp grown and processed in Hempcrete is made from the stems of the hemp ground-up stems from the hemp plant Kentucky by Sunstrand. plant and produces a highly insulative material.

42 JULY 2017 LANEREPORT.COM • THE LANE REPORT

July Lane 21-44.indd 42 6/30/17 3:40 PM Scam Alert: Watch for Signs of Airport Installs Nursing Credit Card Skimmers at Pumps Suites for Moms on the Go

ENTUCKIANS are being advised to HE Cincinnati/Northern Kentucky be on the lookout for signs of tam- International Airport (CVG) has pering on motor fuel pumps during Tpartnered with Mamava to install K four nursing suites throughout the termi- the traffic-heavy summer travel season. Kentucky Department of Agriculture nal, concourses and administrative head- (KDA) inspectors have discovered four card quarters for nursing moms on the go. skimmers while inspecting more than 20,000 The nursing suites are ADA compliant and motor fuel pumps across the state so far this provide a clean, private space for moms to sit year, according to Kentucky Agriculture down, relax and pump or nurse when travel- Commissioner Ryan Quarles. ing. All suites are equipped with an AC and Jason Glass, assistant director of the department’s Division of USB power outlet to power breast pumps and Regulation and Inspection, said consumers can help themselves charge electronics. The suites are designed to by looking for signs that a pump has been tampered with, such as comfortably fit a mom, her luggage, addi- locks that appear to have been compromised or have a key bro- tional children, partner and stroller. ken off in the lock, doors that may have been pried open, and Suites can be found in Concourse A near Starbucks, Con- security tape that is broken or doesn’t adhere to the pump. course B between gates B13 and B15, and baggage claim level of To submit a report to the KDA, call (502) 573-0282 or the terminal, which is available for both travelers and visitors as it email [email protected] with the retailer’s name and location, is pre-security. The fourth suite is located at the administrative the pump number, and the fuel grade. headquarters building for employees and visitors. New Report Shows Potential for Major Appalachian Petrochemical Industry

N economic report released by the ware system, to estimate direct, indirect American Chemistry Council and payroll-induced job impacts, as well A(ACC) shows that the Appalachian as tax revenue impacts. region could become a second center of According to the report, the eco- U.S. petrochemical and plastic resin man- nomic benefits could be substantial. By ufacturing, similar to the Gulf Coast. ACC 2025, the quad-state region could see President and CEO Cal Dooley presented 100,000 permanent new jobs, including the findings at a Capitol Hill press event 25,700 new chemical and plastic prod-

with lawmakers including Senator Shelley ucts manufacturing jobs; 43,000 jobs in ACC photo Moore Capito (R-W.Va.), Senator Joe supplier industries; and 32,000 “payroll- Manchin (D-W.Va.) and Rep. David induced” jobs in communities where And a timely and efficient regulatory McKinley (R-W.Va.) workers spend their wages, according permitting process is essential.” “The Appalachian region has dis- the report. The new investment could ACC’s analysis projects a $32.4 invest- tinct benefits that could make it a also lead to $2.9 billion in new federal, ment in petrochemicals and derivatives major petrochemical and plastic resin- state and local tax revenue annually. and a $3.4 billion investment in plastic producing zone,” said Dooley. “Prox- “The right policies are critical to products, put toward the construction of imity to a world-class supply of raw realizing this opportunity,” Dooley said. five ethane crackers and two propane materials from the Marcellus/Utica “The Appalachian Ethane Storage Hub dehydrogenation (PDH) facilities. Three and Rogersville shale formations and Study Act of 2017 (S. 1075) is an impor- of the crackers would produce polyethyl- to the manufacturing markets of the tant step forward. It will help inform ene and two would supply downstream Midwest and East Coast has already led efforts to maximize America’s domestic petrochemical derivatives. Each PDH several companies to announce invest- energy and manufacturing potential.” facility would contain a polypropylene ment projects, and there is potential The bipartisan bill is sponsored by Sen. resin plant. These capital investments are for a great deal more.” Capito and co-sponsored by Sen. Man- underway and will likely continue ACC’s report presents a hypothetical chin and Sen. Portman. through the mid-2020s. scenario that includes the development “Uncertainty around financing is a In the United States, chemical com- of a storage hub for natural gas liquids key barrier to the development of panies use ethane and propane, NGLs (NGLs) and chemicals (e.g., ethylene, energy infrastructure in the Appala- derived from shale gas, as key feed- propylene), a 500-mile pipeline distri- chian region,” Dooley continued. “Poli- stocks. Plentiful and affordable supplies bution network and associated petro- cymakers can help by affirming that of natural gas and NGLs are enabling chemical, plastics and potentially other NGL storage and distribution projects companies from around the world to energy infrastructure and manufactur- are eligible for existing private-public build new U.S. facilities or expand pro- ing in a quad-state area consisting of financing programs. As Congress and duction capacity. Since 2010, 301 proj- West Virginia, Pennsylvania, Ohio and the administration consider infrastruc- ects cumulatively valued at $181 billion Kentucky. It uses the IMPLAN model, ture modernization legislation, the have been announced, with nearly half an economic impact assessment soft- Appalachian Hub should be a priority. completed or under construction.

THE LANE REPORT • LANEREPORT.COM JULY 2017 43

July Lane 21-44.indd 43 6/30/17 3:40 PM KENTUCKY PEOPLE

LEXINGTON: KY HOSPITAL ASSOCIATION FRANKFORT: BRUCKHEIMER HONORED FOR AWARDS KARPF WITH HIGHEST HONOR DEDICATION TO HISTORIC PRESERVATION

Dr. Michael Karpf (center), executive vice president for health affairs at the University of Kentucky, was recently presented with the Kentucky Hospital Association’s distinguished service award, the organization’s highest honor. Since coming to UK in 2003, Karpf has implemented a vision that has resulted in unprecedented growth and expansion, resulting in the investment of nearly $2 billion for faculty recruitment, program development, technology development and facility upgrades. Pictured here with Karpf are Susan Starling (left), chair Linda Bruckheimer (center) was recently honored by the Kentucky Heritage of the KHA board of trustees and CEO of Marcum and Wallace Memorial Council/State Historic Preservation Office and Ida Lee Willis Memorial Hospital in Irvine, and Michael T. Rust, president of KHA. Foundation with the Memorial Award for outstanding dedication to historic preservation in the commonwealth. Bruckheimer’s projects include the rehabilitation of an 1820 Greek Revival home and farm in Bloomfield as well BOWLING GREEN: UK, WKU CELEBRATE as eight downtown buildings. Pictured here presenting the award to NEW COLLEGE OF MEDICINE CAMPUS Bruckheimer are Tourism, Arts and Heritage Cabinet Secretary Don Parkinson (left) and Ida Lee Willis Memorial Foundation Chair Steve Collins.

MURRAY: RON CLARK ADDRESSES MURRAY STATE EDUCATION SUMMIT

A groundbreaking ceremony was held on June 6 for the University of Kentucky College of Medicine-Bowling Green Campus. The four-year, regional campus – a partnership between UK, Western Kentucky University and The Medical Center – is being built on the campus of The Medical Center in Bowling Green. Pictured here at the groundbreaking ceremony are, left to right, UK President Eli Capilouto, Medical Center Health President and CEO Connie Smith, and WKU President Gary A. Ransdell.

Nationally recognized educator Ron Clark was the key speaker at Murray State We’d love to feature photos of your event! To submit University’s College and Career Readiness Summit, addressing some 1,850 a photo for the Kentucky People section, please send educators who attended the June 13-14 event. Pictured here (left to right) are Robert Lyons, assistant dean of the College of Education and Human Services; details of the event and the names and titles of people David Whaley, dean of the College of Education and Human Services, Kem featured in the photo to [email protected], with Cothran, coordinator of the Teacher Quality Institute; and Ron Clark. In Kentucky People in the subject line. High-resolution addition to presentations from speakers such as Clark, the event included a total photos (minimum 300 dpi) are required to reproduce of 124 training sessions that focused on topics such as innovative classroom well in print. strategies for better student engagement, personalized learning techniques and new technologies for improved learning and increased efficiency.

44 JULY 2017 LANEREPORT.COM • THE LANE REPORT

July Lane 21-44.indd 44 6/30/17 3:40 PM TLR_July2017cover_Final.indd 3 6/30/17 3:25 PM Our energies go to: powering businesses and empowering growth.

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