Nov Lane Covers.qk:Layout 1 11/7/10 9:04 AM Page 991 The LaneReport ® KENTUCKY’S BUSINESS NEWS SOURCE FOR 25 YEARS NOVEMBER 2010 $4.50 LOUISVILLE ARENA BOARD CREATES KENTUCKY’S NEW ECONOMIC ENGINE KFC Yum! Center moves from the drawing board to reality. Page 26 SPECIAL REPORT lanereport.com Nov Lane Covers.qk:Layout 1 11/7/10 9:04 AM Page 992 November Lane 1-24.qk:Layout 1 11/7/10 9:01 AM Page 1 November Lane 1-24.qk:Layout 1 11/7/10 10:21 AM Page 2 NOVEMBER The 2010 Lane Report ® Kentucky’s Business News Source For 25 Years Volume 25 Number 11 FEATURES 26 COVER STORY: LOUISVILLE ARENA BOARD CREATES STATE’S NEW ECONOMIC ENGINE KFC Yum! Center moves from the drawing board to reality 33 FROTHY SALES, STOUT PROFITS Kentucky brewers, brew bars and restaurants 33 tap into growing interest in craft beers 36 UNIVERSITY RESEARCH UPDATE 42 THE PEOPLE OF THE WORLD GAMES Half million WEG attendees experience the hospitality of Kentucky 42 DEPARTMENTS 4 Perspective 6 Fast Lane 14 Interstate Lane 16 Kentucky Intelligencer 18 Corporate Moves 19 On the Boards 20 Lane One-on-One: Jim Host Chairman of the Louisville Arena Authority 36 University Research 38 Going Green 26 39 Economic Commentary 48 Spotlight on the Arts ON THE COVER The Louisville Arena Authority, shown here with top staff, shepherded the 49 The Lane List project since early 2006 from an idea with some momentum through design, financing, contracting and construction to its opening in October. 50 Exploring Kentucky In the photo, left to right, are Ed Glasscock, LAA legal counsel; Larry Bisig; James Patterson; Ulysses “Junior” Bridgeman; Tim Corrigan; Dan Ulmer; 52 Kentucky People Larry Hayes; Laura Chandler, executive advisor, Kentucky State Fair Board; Tom Owen; Elaine “Cissy” Musselman; Reba Doutrick; Robert Woolery; Alice Houston; William Summers V; Jim Host, chairman; Eric Gunderson; Harold Workman, executive director, Kentucky State Fair Board. Not pictured, Todd Blue and Lindy Street. KENTUCKY BUSINESS NEWS Ralph Homan photo AVAILABLE ONLINE 2 NOVEMBER 2010 KYBIZ.COM • THE LANE REPORT November Lane 1-24.qk:Layout 1 11/7/10 9:01 AM Page 3 November Lane 1-24.qk:Layout 1 11/7/10 9:01 AM Page 4 The PERSPECTIVE Lane Report ® Kentucky’s Business News Source for 25 Years EDITORIAL DIRECTOR and Controlled Substances Act, a data- Mark Green THE IMPORTANCE based review of Kentucky’s corrections ASSOCIATE EDITOR OF MOMENTUM policies and practices created by the Karen Baird 2010 General Assembly. CREATIVE DIRECTOR Kentucky can’t afford to In addition, we are hopeful that the Jessica Merriman stick with the status quo Medicaid Cost Containment Task Force CORRESPONDENTS will address the unsustainable growth of Amanda Arnold; Rena Baer; Katherine Tandy Brown; Patrice Bucciarelli; BY DAVE ADKISSON that program. The chamber’s primary Shannon Leonard Clinton; emphasis in its focus on government mod- Anne Charles Doolin; Debra Gibson; ernization has been to curtail the skyrock- Susan Gosselin; Robert Hadley; Carl Heltzel; ES, we are still working hard to come eting spending increases in Medicaid, Feoshia Henderson; Kara Keeton; out of a recession. And yes, next year’s corrections and public employee health Meredith Lane; Nancy Miller; governor’s race will cast a political benefits to allow greater investments in Robin Roenker; Robyn Sekula; Eddie Sheridan; Yshadow on the upcoming General Assem- education and other important programs. Don Ray Smith; Gary Wollenhaupt bly. But let’s don’t use a sluggish economy SYNDICATED COLUMNS Creators Syndicate and politics as excuses to sit still. W e can – Health and must – move Kentucky forward. During the upcoming session and DESIGN Stone Advisory beyond, the Chamber will monitor the impact of the new federal healthcare PRINTING, OUTPUT & PRE-PRESS SERVICES Dave Adkisson is law on Kentucky employers. Publishers Printing Co. president/CEO of the Ken- The chamber will also: ■ tucky Chamber of • Promote wellness education programs Commerce and a PUBLISHER • Support policies to increase the num- Ed G. Lane member of the ber of health professionals in underserved Governor’s Task Force on ASSOCIATE PUBLISHERS areas and to reduce smoking, obesity and Dick Kelly Unemployment Insurance Donna Hodsdon other poor health choices. CHIEF FINANCIAL OFFICER Steve Rohlfing, CPA Every summer, the Kentucky Cham- Global Competition ber of Commerce convenes policy coun- A skilled workforce and competitive tax CIRCULATION P&B Services cils made up of Kentucky business policies must be priorities if Kentucky is people who analyze issues important to succeed in the global marketplace. Also COMPTROLLER Alma Kajtazovic the state’s business community. These high on the chamber’s agenda: groups include chamber members and • Supporting our signature equine Lane Communications Group other Kentuckians who share an interest and distilling industries is a member of in helping our state move ahead in edu- • Revising the state’s prevailing wage law cation, health, global competition, gov- • Increasing the export of Kentucky- ernment efficiency and energy. made or grown products What follows is a quick • Developing, maintain- The Lane Report is published monthly by: overview of where we will ing and expanding trans- Lane Communications Group focus our lobbying efforts in portation, telecom and 201 East Main Street 14th Floor broadband infrastructure Lexington, KY 40507-2003 2011. The full version of [email protected] our agenda is available at Energy For more information and kychamber.com/agenda. advertising rates contact: Kentucky has been a recog- PHONE: 859-244-3500 Education nized energy leader for FAX: 859-244-3555 Continuing the chamber’s decades. It has long been The annual subscription rate is $29. emphasis on improving the the chamber’s position that (Kentucky residents add $1.74 sales tax.) Newsstand price is $4.50. education attainment of Ken- economic growth, energy tuckians, we will support independence and environ- Send check or money order to: Circulation Manager efforts to: mental protection are compatible and THE LANE REPORT • Raise the compulsory school atten- complementary goals. 201 East Main Street 14th Floor dance age to 18 Our support for coal is fundamental. Lexington, Kentucky 40507-2003 • Require school councils and super- We also support the development of alter- THE LANE REPORT corrects all significant errors that are brought to the editors’ attention. intendents to collaborate on hiring native energy sources and capital invest- school principals ments in the state’s energy infrastructure. © 2010 Lane Communications Group • Invest in early childhood education In addition, we believe lifting Kentucky’s All editorial material is fully protected and must not be reproduced in any manner without prior permission. and development moratorium on the development of • Streamline career and technical nuclear power plants could help bring programs cost-effective and environmentally friendly • Enhance workforce development energy efforts to the state while having a Network provider: positive economic impact. Modernizing government This is a full agenda – particularly for The chamber is very encouraged by the a “short session” year. But standing still work of the Task Force on Penal Code simply isn’t an option. ■ 4 NOVEMBER 2010 KYBIZ.COM • THE LANE REPORT November Lane 1-24.qk:Layout 1 11/7/10 9:01 AM Page 5 November Lane 1-24.qk:Layout 1 11/7/10 9:01 AM Page 6 FAST LANE A compilation of economic news from across Kentucky LOUISVILLE: ADDITION OF $194M REFRIGERATION LINE STATE: BESHEAR TRAVELS WILL BRING 300 NEW JOBS TO LOUISVILLE GE PLANT TO INDIA TO DEVELOP TRADE OPPORTUNITIES ENERAL Electric is investing $194 million to establish a “center of excellence” at its N an effort to increase both trade and Louisville-based Appliance Park campus GE photo Gthat will produce bottom-freezer refrigerators. investment opportunities between The addition of the bottom-freezer refrigerator Kentucky and one of the world’s fastest Igrowing economies, Gov. Steve Beshear models marks the third new platform announced for the Louisville plant within the last year – following traveled to India last month on seven- the GeoSpring hybrid water heater and a new front- day economic development trip. The load washer and dryer – and will create 300 new jobs. trip was the first to India by a sitting Ken- The Louisville plant is one of four GE Appliance and tucky governor and planned with the Lighting facilities to be designated by the company as U.S. intention of showcasing the opportuni- Centers of Excellence for Design and Manufacture. The ties Kentucky offers to Indian investors other facilities are located in Bloomington, Ind.; Decatur , and to connect with key Indian and U.S. Ala.; and Selmer, Tenn. The company is investing a total of business organizations. The GE appliance plant in Beshear and $432 million to establish the centers and will add a total of Louisville is adding bottom- Economic Develop- 500 new “green” jobs by 2014, bringing the company’s total freezer refrigerators to its U.S. investment announced since 2009 to more than $1 bil- product line. ment Secretary lion and the creation of 1,300 new jobs. Larry Hayes met “This type of investment would have been impossible without the tremendous with key govern- work underway at these plants to drive down costs and improve productivity and effi- ment officials, ciency,” said James P. Campbell, president and CEO of Louisville-based GE Appli- including former ances & Lighting. “With the new center of excellence model, the adoption of lean India President Dr. manufacturing and agreements by employees and unions to freeze current wages A.P.J. Abdul Kalam and adopt competitive wage rates for new employees, these facilities are evidence of and major business a growing American manufacturing renewal.” organizations Gov. Steve Beshear including the Fed- eration of Indian Chambers of Commerce LOUISVILLE: PUBLIC-PRIVATE PARTNERSHIP FORMS TO and Industry and the National Association BOOST CITY’S COMPETITIVENESS THROUGH EDUCATION of Software and Service Companies.